Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — KPN — Q4 2014 Earnings Presentation
72 slides from Royal Kpn Nv's earnings presentation, Feb 4, 2015
Slide 1: Fourth Quarter and Annual Results 2014
Fourth Quarter and Annual Results 2014 4 February 2015
Slide 2: Safe harbor
Safe harbor Non-GAAP measures and management estimates This financial report contains a number of non-GAAP figures, such as EBITDA and Free Cash Flow (‘FCF’). These non- GAAP figures should not be viewed as a substitute for KPN’s GAAP figures. KPN defines EBITDA as operating result before depreciati
Slide 3: Contents
Contents 1 Chairman’s review Eelco Blok 2 Group financial review Jan Kees de Jager 3 Operating review The Netherlands Joost Farwerck 4 Group commercial review Eelco Blok 5 Concluding remarks Eelco Blok 3
Slide 4: Executive summary
Executive summary Good strategic progress in transformational year Strong customer base growth and all-time high customer satisfaction in The Netherlands Strong increase 4G coverage in Belgium Simplification program ahead of plan Financial performance stabilizing Significant increase fin
Slide 5: 2014 in review
2014 in review Good strategic progress in transformational year 1 January End Q1 1 October 5 November End Q4 End Q4 Launch Nationwide 4G Completion € 2bn bond ~50% households 786k multi play Simplification coverage E-Plus sale tender 100Mbps customers program 2014 2015 100% 4G for all BASE Main pens
Slide 6: Priorities 2015 and beyond
Priorities 2015 and beyond Continue building on strong fundamentals Strengthen capacity Continue to simplify Strong customer focus best-in-class networks and rationalize • Growth converged • ~85% households access • Simplify processes customer base to 100Mbps end-2016 • Rationalize networks & IT • E
Slide 7: Outlook 2015
Outlook 2015 • Adjusted EBITDA stabilized by end-2015 • Capex < € 1.4bn • Growing free cash flow (excl. TEFD dividend)1 • Additional cash flow via potential dividend from 20.5% stake in Telefónica Deutschland 1 Free cash flow outlook defined as cash flow from operating activities, plus proceeds from
Slide 8: Shareholder remuneration
Shareholder remuneration Dividend payments recommenced Excess cash • Intended DPS of € 0.07 in respect of 2014 • 20.5% stake Telefónica Deutschland − € 0.05 final dividend expected in April 20151 treated as financial investment − Cash upside via dividend payments • Intended DPS of € 0.08 in respect
Slide 9: Contents
Contents 1 Chairman’s review Eelco Blok 2 Group financial review Jan Kees de Jager 3 Operating review The Netherlands Joost Farwerck 4 Group commercial review Eelco Blok 5 Concluding remarks Eelco Blok 9
Slide 10: Group results Q4 '14 (continuing operations)
Group results Q4 ’14 (continuing operations) € m (continuing operations) Q4 ’14 Q3 ’14 Q4 ’13 y-on-y % Revenues 2,105 1,978 2,061 2.1% • Adjusted revenues flat y-on-y Adjusted revenues1 2,068 1,978 2,068 flat - Amended for tax settlement benefit (€ 44m) down 2.1% y-on-y (Q3 ’14: -4.9% y-on-y) Opex (
Slide 11: Group results FY '14 (continuing operations)
Group results FY ’14 (continuing operations) € m (continuing operations) FY ’14 FY ’13 % • Adjusted revenues down 5.0% y-on-y Revenues 8,083 8,472 -4.6% − Ongoing decline business market size Adjusted revenues1 8,024 8,442 -5.0% partly offset by positive impact base growth Operating expenses (excl.
Slide 12: Group cash flow Q4 '14 (continuing operations)
Group cash flow Q4 ’14 (continuing operations) € m (continuing operations) Q4 ’14 Q4 ’13 % EBITDA 691 581 19% • Free cash flow € 463m lower y-on-y, Interest paid/received -120 -70 71% mainly due to non-recurring items Tax paid/received 65 -35 n.m. − € 292m less cash from change in working Change in
Slide 13: Group cash flow FY '14 (continuing operations)
Group cash flow FY ’14 (continuing operations) € m (continuing operations) FY ’14 FY ’13 % EBITDA 3,015 2,883 4.6% • Free cash flow € 658m lower y-on-y, Interest paid/received -705 -654 7.8% mainly due to non-recurring items Tax paid/received 38 -253 n.m. − € 386m less cash from change in working Ch
Slide 14: FY '14 Free cash flow (continuing operations)
FY ’14 Free cash flow (continuing operations) FCF FY ’14 impacted by non-recurring items Cash flow potential • FCF outlook based on normalized FCF 405 €m 30 -30 FY ’14 50 47 • Short-term free cash flow supported by lower interest payments - Partly offset by expected higher cash out 242 related to FT
Slide 15: Group financial profile
Group financial profile Significant steps taken to reduce liabilities 1 Net debt reduced by € 2.5bn and gross debt by € 3.8bn in 2014 € bn 9.8 4.9 0.5 0.4 0.2 0.1 7.3 0.2 0.6 0.8 0.2 0.2 Net debt E-Plus sale Bond tender Reggefiber Reggefiber Reggefiber Pension Supplier Interim Other items Normalized
Slide 16: Group financial profile (cont'd)
Group financial profile (cont’d) € bn Net debt • Net debt reduced by € 3.0bn in Q4 ’14 13.4 11.8 9.8 10.3 9.6 • Still relatively high gross debt and cash position 7.3 3.6 1.5 2.3 • Pension fund agreements improving KPN’s Q4 ’13 Q3 ’14 Q4 ’14 financial risk profile Net debt1 Gross debt2 Net cash3 Net
Slide 17: Capex review
Capex review Capex at less elevated levels Continued network investments in 2014 KPN frontrunner in Capex cycle The Netherlands Capex-to-sales ratio development FY ’13 FY ’14 (€ 1,226m) 30% 26% 22% 155 258 14 20% 21% 18% 198 10% 601 Q4 ’11 Q4 ’12 Q4 ’13 Q4 ’14 Telco sector1 KPN NL incl. Reggefiber C
Slide 18: Contents
Contents 1 Chairman’s review Eelco Blok 2 Group financial review Jan Kees de Jager 3 Operating review The Netherlands Joost Farwerck 4 Group commercial review Eelco Blok 5 Concluding remarks Eelco Blok 18
Slide 19: The Netherlands: uniquely positioned as the integrated access provider
The Netherlands Uniquely positioned as the integrated access provider Changing customer demand requires high quality networks and differentiating services Petabytes Petabytes +230% 2011 2012 2013 2014 Q1 ’14 Q4 ’14 2011 2012 2013 2014 Mobile data usage Video usage (mobile network) Data storage (clou
Slide 20: Strong customer focus
Strong customer focus Unique position to offer differentiating services Increasing converged TV Everywhere Cloud opportunity customer base Cloud based interactivity Cloud services based on core enabling access to unique Telco services generating features new revenue streams 20
Slide 21: Capacity - fixed network
Capacity - fixed network ~85% households access to 100Mbps end-2016 FttC to increase significantly in 20151 FttH VDSL FttC VDSL & DSL Download speed ahead of demand ODF CO CO Download 2014 2015 2016 speed2 >40Mbps ~75% ~85% ~90% SC 100Mbps ~50% ~70% ~85% 200Mbps ~27% ~55% ~70% 500Mbps ~27% ~30% ~33%
Slide 22: Capacity - fixed network (cont'd)
Capacity - fixed network (cont’d) Technological developments driving higher future bandwidth Download Active in speeds network VDSL2 CO >40Mbps Vectoring SC 100Mbps Bonded vectoring SC 200Mbps Super vectoring / VPLUS SC 400Mbps NG.PON SC >1Gbps FttH ODF 1Gbps Fiber Copper 22
Slide 23: Capacity - mobile network
Capacity - mobile network 1800MHz and carrier aggregation to increase capacity Leading 4G quality and coverage1 Mobile network priorities 2015 and beyond ~98% ~92% ~57% 0% • Deploy 1800MHz and 2.6GHz to increase 4G capacity in high usage areas NPS network satisfaction 2014 • Carrier aggregation 800M
Slide 24: Simplification
Simplification 2014: good progress, portfolio rationalization & customer migration Portfolio rationalization & customer migration Leading to network & IT rationalization in 2015 • Enabling ~45% reduction • Leads to 50 GWh net ~85% ~65% ~20% hardware in technical energy reduction buildings end-2013 e
Slide 25: Simplification (cont'd)
Simplification (cont’d) 2015 and beyond: rationalize processes, networks and IT Rationalization Redesign client processes Shift from multiple product based identities to Phasing out legacy IT systems driving efficiency single customer based identity ~€ 35m ~€ 35m end-2014 end-2016 end-2014 end-2016
Slide 26: Contents
Contents 1 Chairman’s review Eelco Blok 2 Group financial review Jan Kees de Jager 3 Operating review The Netherlands Joost Farwerck 4 Group commercial review Eelco Blok 5 Concluding remarks Eelco Blok 26
Slide 27: Consumer Residential
Consumer Residential Commercial initiatives resulting in high net adds Financials Operational KPIs €m 22.9% 44 44 20.5% 20.2% 43 -2.4% 80 83 492 477 480 49 41 101 109 97 13 6 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Adjusted EBITDA margin Adjusted EBITDA Broadband net adds (k) ARPU per customer (€)
Slide 28: Consumer Mobile
Consumer Mobile Strong base growth driving service revenue improvement Financials Operational KPIs €m 13.3% 28 28 26 9.9% 11.1% -0.3% 84 57 353 354 352 9 Q4 ’13 Q3 ’14 Q4 ’14 47 -3.1% 35 39 -6.9% -13% Q4 ’13 Q3 ’14 Q4 ’14 Adjusted EBITDA margin Adjusted EBITDA Retail postpaid ARPU (€) Retail postpai
Slide 29: Business
Business Ongoing decline market size impacting financial performance Financials Operational KPIs €m 22.0% 22.4% 52 51 51 19.9% -4.5% 45 782 747 42 706 22 41 17 -1 172 158 149 -33 -31 -33 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Adjusted EBITDA margin Adjusted EBITDA Wireless net adds (k)1 Wireless
Slide 30: NetCo & iBasis
NetCo & iBasis Reggefiber consolidation supporting NetCo profitability Financials NetCo Financials iBasis €m 56.0% 54.6% 56.9% €m 2.6% 2.9% 2.4% -1.9% +6.9% 577 566 232 243 248 557 323 304 322 6 7 6 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Adjusted EBITDA margin Adjusted EBITDA Adjusted revenues 30
Slide 31: Consumer - convergence
Consumer - convergence Fixed-mobile bundles driving significant churn reduction Strong growth fixed-mobile bundles Fixed Mobile 17% 21% 14% 16% 6% 8% 485 701 369 519 173 245 315 357 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Fixed-mobile bundles (k) Retail postpaid customers in fixed-mobile bundles (
Slide 32: Consumer
Consumer 4G driving base growth and reducing churn Strong base growth since nationwide 4G coverage Nationwide coverage ~80% ~60% ~50% Driving churn reduction 2014: +220k ~30% 84 1x 57 ~0.65x 53 2013: +10k 26 Q4 ’13 Q4 ’14 7 7 9 Churn postpaid KPN & Hi brand -13 Q1 ’13 Q2 ’13 Q3 ’13 Q4 ’13 Q1 ’14 Q2
Slide 33: Consumer (cont'd)
Consumer (cont’d) Differentiating services and high quality networks increasing loyalty Unique services 2015 and beyond Increasing customer loyalty Driving customer base growth Differentiating on network quality TV Everywhere Upsell opportunities New data bundles facilitate carefree usage Ne
Slide 34: Business
Business Transforming organization to address market dynamics Transforming the organization Moderating decline traditional services 1 Business model is changing Growing multi play 12% 14% Declining traditional high margin 7% services 257 301 155 Growing demand new services (Cloud, M2M, Hosting,
Slide 35: Belgium
Belgium Strong focus to reduce spend Financial review Operational KPIs €m 33 31 30 24.3% 21.6% 21.3% 36 18 -1.7% 3 181 176 178 Q4 ’13 Q3 ’14 Q4 ’14 44 38 38 -1.3% -1.3% Q4 ’13 Q3 ’14 Q4 ’14 -9.7% Adjusted EBITDA margin Adjusted EBITDA Postpaid ARPU (€) Postpaid net adds (k) Adjusted revenues Underly
Slide 36: Belgium (cont'd)
Belgium (cont’d) Large data opportunity in Belgian mobile market BASE Company ready for data growth... >80% ~36% Data usage still low end-2013 end-2014 4G coverage ~300 ~150 …at attractively priced offers Q4 ’13 Q4 ’14 Postpaid ADPU (MB) 36
Slide 37: Contents
Contents 1 Chairman’s review Eelco Blok 2 Group financial review Jan Kees de Jager 3 Operating review The Netherlands Joost Farwerck 4 Group commercial review Eelco Blok 5 Concluding remarks Eelco Blok 37
Slide 38: Concluding remarks
Concluding remarks Strong customer focus, further growing converged base in The Netherlands Further strengthening best-in-class networks Simplification targets increased BASE Company to focus on data growth and spend reduction Adjusted EBITDA stabilized by end-2015 Cash flow potential dr
Slide 39: Q&A
Q&A 39
Slide 40: Annex
Annex Q4 2014 - Information Pack For further information please contact KPN Investor Relations +31 70 44 60986 [email protected] www.kpn.com/ir
Slide 41: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 41
Slide 42: KPN ADR program
KPN ADR program KPN has a sponsored Level 1 ADR program ADR program Bloomberg ticker KKPNY Trading platform Over-the-counter (OTC) CUSIP 780641205 Ratio 1 ADR : 1 Ordinary Share Depositary bank Deutsche Bank Trust Company Americas Depositary bank contact Begonia Roberts +1 212 250 9100 (New York) AD
Slide 43: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 43
Slide 44: Consumer Residential
Consumer Residential IPTV Broadband 26% 27% 41% 40% 40% 25% 80 83 41 49 13 6 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 TV market share1 IPTV net adds (k) Broadband market share1 Net adds (k) RGUs and ARPU per customer 2.19 2.24 2.26 43 44 44 Q4 ’13 Q3 ’14 Q4 ’14 RGUs per customer (#) ARPU per custom
Slide 45: Consumer Mobile
Consumer Mobile Postpaid net adds ARPU k 84 € 28 28 26 57 ~77% ~80% 9 2 7 ~75% -19 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Retail Wholesale Retail postpaid ARPU % committed retail postpaid ARPU Service revenues Committed ARPU breakdown €m 43% 42% 43% 6% 6% 6% 9% 7% 6% -4.3% 8% 8% 12% 323 323 309 7
Slide 46: Business
Business Wireless services Multi play 1,674 1,709 1,726 12% 14% 7% 45 301 42 257 41 155 ~54% ~61% ~61% Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Wireless single play ARPU (€)1 Wireless customers (k)2 Multi play seats (k) % committed wireless ARPU1 Mobile customers in multi play as % of mobile custom
Slide 47: Belgium
Belgium Net adds ARPU k € 3.4 3.3 3.3 33 31 30 75 16 36 3 9 8 9 18 -31 Q4 ’13 Q3 ’14 Q4 ’14 Q4 ’13 Q3 ’14 Q4 ’14 Customers (m) Prepaid net adds Postpaid net adds Postpaid Prepaid Service revenues €m ~21% ~21% ~21% 158 151 152 Q4 ’13 Q3 ’14 Q4 ’14 Service revenue market share Service revenues 47
Slide 48: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 48
Slide 49: Analysis of adjusted results
Analysis of adjusted results Impact incidentals on revenues Revenues (€ m) Q4 ’14 Q4 ’13 FY ’14 FY ’13 Phase out SNOW Belgium 2 - 2 - Sale of fixed assets (hardware) Business - - 5 - Tax settlement related to 2013 Other 30 - 30 - Change in provision NetCo - -7 17 -13 Impact disposal of subsidiaries
Slide 50: Analysis of adjusted results (cont'd)
Analysis of adjusted results (cont’d) Impact incidentals on EBITDA EBITDA (€ m) Q4 ’14 Q4 ’13 FY ’14 FY ’13 Tax settlement related to 2013 Other 30 - 30 - Phase out SNOW Belgium -3 - -3 - Volume discount hardware Germany - - 8 - Change in provisions NetCo, Business, Other - -82 17 -78 Sale of fixed
Slide 51: Restructuring costs
Restructuring costs €m Q4 ’14 Q4 ’13 FY ’14 FY ’13 Germany (incl. discontinued operations) - -6 -12 - Belgium -1 - -4 - Other (incl. eliminations) -3 - -3 - Mobile International (incl. discontinued operations) -4 -6 -19 - Consumer Mobile - -2 -1 -7 Consumer Residential -1 -1 -8 -17 Business -8 -23 -
Slide 52: Impact regulation
Impact regulation €m Q4 ’14 FY ’14 Revenues EBITDA Revenues EBITDA Germany (incl. discontinued operations) - - -43 -35 Belgium -4 -4 -15 -12 Mobile International (incl. discontinued operations) -4 -4 -58 -47 Consumer Mobile -4 -2 -20 -6 Of which: Mobile Wholesale - - -3 -1 Business -2 -2 -17 -12 Net
Slide 53: Operating expenses
Operating expenses €m Q4 ’14 Q4 ’13 % Employee benefits 299 301 -0.7% Cost of materials 208 186 12% Work contracted out and other expenses 795 797 -0.3% Own work capitalized -27 -20 35% Other operating expenses1 139 216 -36% Depreciation2 324 328 -1.2% Amortization2 149 155 -3.9% Total operating exp
Slide 54: Operating expenses - analysis
Operating expenses - analysis Employee benefits & Cost of materials €m Employee benefits Y-on-Y decrease (Continuing operations) • Release of pension provisions 16.8% 16.1% 15.9%1 15.6% Partly offset by 15.2% 14.8% 14.6% 14.7% • Higher costs due to consolidation of Reggefiber 365 324 307 301 322 318
Slide 55: Operating expenses - analysis
Operating expenses - analysis Work contracted out & Other Y-on-Y decrease €m Work contracted out • Lower IT costs due to Simplification program at NetCo (Continuing operations) 40.6% 40.1% • Lower traffic costs at NetCo 38.7% 39.4% 39.2% 36.7% 38.0% 37.6% • Less external personnel Partly offset by •
Slide 56: Operating expenses - analysis
Operating expenses - analysis Depreciation & Amortization €m Y-on-Y decrease Depreciation1 • Lower depreciation due to phasing out of handset (Continuing operations) lease at all brands at Consumer Mobile 14.6% 15.3% 15.9% 15.3% 16.0% 14.9% 16.0% Partly offset by 13.8% • Higher depreciation due to c
Slide 57: The Netherlands - operating expenses
The Netherlands - operating expenses Breakdown operating expenses • Operating expenses (excl. D&A, restructuring costs and €m (excl. D&A and restructuring costs) impact phasing out handset lease) down 3.3% y-on-y -2.5%/ -3.3%1 • Employee benefit costs increased 1.5% y-on-y due to consolidation of Re
Slide 58: Dutch wireless disclosure
Dutch wireless disclosure Q4 ’14 Q4 ’13 % Service revenues (€ m) 521 556 -6.3% − Consumer retail 275 283 -2.8% − Business1 206 228 -9.6% − Other2 40 45 -11% SAC/SRC per subscriber (€) − Consumer retail3 210 197 6.6% − Business 211 214 -1.4% 1 Includes partial allocation of multi play revenues to mob
Slide 59: Tax
Tax P&L Cash flow Fiscal units (€ m) Q4 ’14 Q4 ’13 Q4 ’14 Q4 ’13 The Netherlands 80 12 661 -342 Germany - -52 -49 3 Belgium -4 1 - - Other -1 24 -1 -1 Total reported tax (incl. discontinued operations) 75 -15 16 -32 Of which discontinued operations - 52 49 -3 Reported tax continuing operations 75 37
Slide 60: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 60
Slide 61: Debt summary
Debt summary € bn Q4 ’14 Q3 ’14 % Nominal debt 10.70 12.84 -17% Eurobonds 7.67 9.43 -19% Global bonds 0.76 0.76 - Hybrid bonds 2.03 2.03 - Financial leases and other loans 0.24 0.62 -61% 9.8% Adjustments to nominal debt -1.12 -1.02 9.8% Equity credit hybrid bonds -1.01 -1.01 - Cash collateral on der
Slide 62: Debt portfolio
Debt portfolio Breakdown of € 10.7bn nominal debt1 including hybrid bonds Breakdown nominal debt1 (total € 10.7bn) Nominal debt by currency Other 20% 68% Hybrid bonds 2% 19% 12% Global bonds 7% Eurobonds 72% 2 2 EUR USD GBP € bn Bond redemption profile Fixed vs. floating interest 1.1 1.2 1.0 1.0 0.9
Slide 63: Treatment of hybrid bonds
Treatment of hybrid bonds KPN & Credit rating agencies IFRS • Each tranche of the hybrid bonds is recognized as 50% • EUR tranche is a perpetual, accounted for as equity equity and 50% debt by the rating agencies − Coupon payments treated as equity distribution, hence not expensed through P&L, not i
Slide 64: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 64
Slide 65: Regulation: MTA rates across the Group
Regulation MTA rates across the Group • ACM decision to base MTA rates on ‘pure BULRIC’ of € 1.019 cent per minute as of 1 September 2013 is under appeal (Court announced prejudicial questions to European Court of Justice) • Dutch Court suspended ACM decision and mandated interim rates NL based on ‘
Slide 66: Unbundling tariffs
Unbundling tariffs Unbundling in copper network Category Monthly tariff Line sharing (LLU) € 0.11 / line MDF Node SDF Fully unbundled (LLU) € 7.79 / line colocation KPN / Telco MDF colocation € 946.98 footprint / year ~28,000 1,350 Street cabinets local exchanges € 5.32 / line shared Wholesale Broad
Slide 67: Spectrum in The Netherlands
Spectrum in The Netherlands 800MHz Tele2 VOD KPN 2*30 Paired 2*10 2*10 2*10 900MHz VOD KPN T-Mob 2*35 Paired 2*10 2*10 2*15 1.8GHz KPN VOD T-Mob 2*70 Paired 2*20 2*20 2*30 1.9GHz T-Mob KPN VOD T-Mob 1*35 Unpaired 10 5 5.4 14.6 Current status 2.1GHz VOD KPN T-Mob KPN VOD T-Mob 2*59.4 Paired 2*14.6 2*
Slide 68: Spectrum in Belgium
Spectrum in Belgium 800MHz BASE Proximus Mobistar 2*30 Paired 2*10 2*10 2*10 900MHz1 BASE Proximus Mobistar 2*34 Paired 2*10 2*12 2*12 1.8GHz2 BASE Proximus Mobistar 2*70.2 Paired 2*23.4 2*23.4 2*23.4 2.1GHz Proximus BASE Mobistar 2*44.6 Paired 2*15 2*14.8 2*14.8 Current status 2.1GHz B M B 1*15 Unp
Slide 69: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 69
Slide 70: Infrastructure: deploying mix of technologies going forward
Infrastructure Deploying mix of technologies going forward VDSL from CO1 VDSL pair bonding Vectored VDSL Pair bonded vectored (VDSL-CO) CO (VDSL-CO) from SC1 VDSL from SC FttH Wireless CO CO CO CO ODF1 SC SC up to 50 Mbps DS1 up to 100 Mbps DS up to 100 Mbps DS up to 200 Mbps DS up to 1 Gbps up to 2
Slide 71: Contents
Contents 1 KPN ADR program 2 Group KPI overview 3 Group results analysis 4 Debt overview 5 Regulation & Spectrum 6 Fixed infrastructure 7 Telefónica Deutschland stake 71
Slide 72: Telefónica Deutschland stake: Accounting treatment
Telefónica Deutschland stake Accounting treatment • Stake will be included as financial asset1 • Fair value of KPN’s stake will be based on Telefónica Deutschland’s share price and adjusted quarterly Balance sheet − Fair value movements will be recorded in other comprehensive income − Significant or