Royal KPN NV · EURONEXT:KPN
Royal KPN NV — Q3 2009 Earnings Presentation
73 slides from Royal KPN NV's earnings presentation, Oct 27, 2009
Slide 1: Third Quarter Results 2009
Third Quarter Results 2009 27 October 2009
Slide 2: Safe harbor
Safe harbor Non-GAAP measures and management estimates This presentation contains a number of non-GAAP figures, such as ‘existing’ and ‘disposed’ revenues and other income, EBITDA and free cash flow. These non-GAAP figures should not be viewed as a substitute for KPN’s GAAP figures. KPN defines EBIT
Slide 3: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Carla Smits-Nusteling, CFO Operating review Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 3
Slide 4: Highlights Q3
Highlights Q3 • Focus on EBITDA, free cash flow and market shares continues to deliver • EBITDA growth in Dutch Telco business at lower revenues • Service revenues up at Mobile International with solid profitability • Group EBITDA up 4.4% y-on-y, free cash flow on track, market shares maintained • C
Slide 5: Financial highlights
Financial highlights • Financial performance Q3 ’09 – Revenues and other income from existing operations € 3,329 mn, down 5.1% y-on-y – EBITDA from existing operations of € 1,329 mn, up 4.4% y-on-y – Capex of € 360 mn, down 29% y-on-y – Free cash flow1 of € 827 mn, up 78% y-on-y – Earnings per share
Slide 6: Impact of economic downturn
Impact of economic downturn Still mainly apparent in business markets, not material in consumer markets Impact of economic downturn in Q3 Actions taken and results • Continued impact in business markets • Q3 ’09 results demonstrate focus on – No signs of recovery yet EBITDA, cash flow and market sha
Slide 7: Outlook
Outlook Confirming outlook for revenues, EBITDA and cash flow for 2009 and 2010 Reported1 Outlook Outlook 2008 2009 2010 • Confirming outlook for 2009 Revenues and In line with and 2010 for revenues, € 14.0 bn € 13.6-13.8 bn EBITDA and free cash flow other income1 2009 • Guiding for Capex of Meaning
Slide 8: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Carla Smits-Nusteling, CFO Operating review Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 8
Slide 9: Group results
Group results Q3 results reflect focus on profitability, EBITDA up 4.4% y-on-y € mn Q3 ’09 Q3 ’08 % YTD ’09 YTD ’08 % Revenues and other income (reported) 3,331 3,652 -8.8% 10,138 10,884 -6.9% – Getronics revenues (disposed) 2 145 - 22 526 - Revenues and other income (existing) 3,329 3,507 -5.1% 10,
Slide 10: Group cash flow Q3
Group cash flow Q3 Free cash flow of € 0.8 bn in Q3 ’09 € mn Q3 ’09 Q3 ’08 % • Free cash flow of € 827 mn in Operating result 752 701 7.3% Q3 ’09, up 78% y-on-y Depreciation and amortization1 577 578 -0.2% – Working capital improvement Interest paid/received -179 -106 69% from ~€ 150 mn VAT benefit
Slide 11: Group cash flow YTD
Group cash flow YTD On track to meet full-year guidance of ~€ 2.4 bn free cash flow for 2009 € mn YTD ’09 YTD ’08 % • Free cash flow of € 1.5 bn Operating result 2,126 2,005 6.0% YTD, down 6.4% y-on-y Depreciation and amortization1 1,759 1,772 -0.7% – € 110 mn increase in EBITDA Interest paid/receiv
Slide 12: Pension plans the Netherlands
Pension plans the Netherlands Coverage ratio above 105% per Q3 ’09 • Agreement with KPN pension funds signed in April, on how to reach Agreement 105% coverage ratio before 2013 with pension funds • Additional payments capped at € 390 mn over the years 2009-2012 • Average coverage ratio at 109% per Q
Slide 13: Dutch Telco business
Dutch Telco business EBITDA growth in Dutch Telco business at lower revenues € mn Revenues and other income • Revenues and other income down -4.9% 4.9% y-on-y in Q3 ’09 – € 38 mn negative impact from MTA reduction in July – ~€ 25 mn impact from lower 1,787 1,842 1,862 1,832 1,824 1,838 1,770 roaming
Slide 14: Dutch Telco business by segment
Financial review Dutch Telco business by segment Solid performance Consumer, Business impacted by economic downturn € mn 22.7% 22.7% 21.5% 23.7% 26.9% 26.0% • Revenues down 3.0%, EBITDA up Consumer 18.6% 17% y-on-y • Wireless revenues impacted by MTA 1,002 1,035 1,050 1,041 1,031 1,042 1,018 and roa
Slide 15: The Netherlands by segment: Getronics, iBasis
Financial review the Netherlands by segment EBITDA improving at Getronics, continued revenue pressure at iBasis € mn • Revenues down 9.2% y-on-y 7.3% − Impact of economic downturn Getronics (existing) 6.4% − Slowdown in enterprise services and 3.6% 3.6% consulting 1.7% 530 534 534 587 525 528 485 •
Slide 16: Mobile International by segment
Financial review Mobile International by segment Flat revenues and solid profitability at Mobile International € mn 37.6% 38.1% 40.0% 38.9% 41.6% 41.8% 42.4% • Revenues and other income down Germany 2.5% y-on-y • Service revenues flat, including 2.7% 755 808 840 815 774 797 819 impact from MTA reduc
Slide 17: Group financial profile
Group financial profile Maturity profile lengthened to 7.5 years following bond issues in September € bn Debt Financing policy 14.5 13.6 13.7 13.0 2.5x 11.9 12.1 12.1 2.3 2.3 2.4 2.3 2.3 2.3 2.0x 2.2 11.3 11.7 11.7 11.8 11.7 10.9 10.9 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q1 '08 Q2 '08 Q3
Slide 18: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Carla Smits-Nusteling, CFO Operating review Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 18
Slide 19: Consumer wireline
Consumer wireline Increase in profitability as a result of value and cost focus € 29 29 30 31 31 Customer 27 • Managing customer base for value value 26 25 26 25 25 25 with targeted propositions 7 4 6 6 7 8 • ARPUs stable in competitive market Q1 ’07 Q3 ’07 Q1 ’08 Q3 ’08 Q1 ’09 Q3 ’09 ARPU tradition
Slide 20: Consumer wireline (cont'd)
Consumer wireline (cont’d) Net line loss at relatively low level of 55k in Q3 X 1,000 Q1 ’07 Q3 ’07 Q1 ’08 Q3 ’08 Q1 ’09 Q3 ’09 • Small increase in PSTN/ISDN line PSTN/ISDN loss, but remaining at relatively low loss -112 -110 -103 -92 -77 -83 levels -190 -164 -247 • Outflow to cable stable at ~30k,
Slide 21: TV
TV Continued growth in TV, scaling up IPTV KPN TV customers TV strategy X 1,000 886 924 • On track to reach 1 mn TV subscribers 835 700 775 in 2010 636 497 553 • Digitenne price increase to € 8.50 per 337 414 month, limited additional churn 296 • Scale up of IPTV started on stable platform, currentl
Slide 22: Fiber
Fiber Fiber operator gradually scaling up, evaluation of 2x5 cities by end of 2009 • Further progress in fiber rollout – >450k homes passed FttC per Q3, vs. target of ~450k by YE ’09 Status fiber – ~460k homes passed FttH per Q3, ahead of target of ~400k by YE ’09 rollout • Focus on converting homes
Slide 23: Consumer wireless
Consumer wireless1 Stable performance and focus on customer value € mn • Service revenues up 4.3% y-on-y Service 429 441 423 465 477 460 – ~8% impact of MTA and roaming 394 revenues – Service revenues down ~1% excluding Debitel acquisition Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 mn 6.8 6.8
Slide 24: Business wireline
Business wireline Impacted by economic downturn, especially in traffic volumes € mn • Revenues down 3.2% y-on-y in Q3 ’09 – Voice & internet down 5.3% y-on-y Revenues1 373 378 371 384 374 371 359 – Data network services up 1.9% y-on-y • Stable performance in challenging market circumstances Q1 '08 Q
Slide 25: Business wireless
Business wireless Resilient performance despite impact from regulation and economic downturn € mn 234 243 238 244 247 246 234 • Service revenues down 1.7% y-on-y • Headwind from regulation and Service economic downturn revenues – Decline in voice revenues, partly offset by growth in data revenues Q1
Slide 26: Getronics
Getronics Continued impact of economic downturn, strong improvement in EBITDA € mn Revenues down 9.2% • Top line pressure in the Netherlands -4.6% – Revenues down 4.6% y-on-y 530 534 534 587 525 528 – Slowdown mainly in enterprise services and 485 consulting • Continued contraction at International
Slide 27: W&O National
W&O National Revenue pressure mitigated by lower cost base € mn • Total revenues down by 7.0% y-on-y -18% 759 766 741 755 735 724 689 • Internal revenues down 3.5% y-on-y – Lower voice traffic volumes, mainly in Revenues 181 183 173 170 174 177 141 Business segment – Ongoing decline of installed bas
Slide 28: iBasis
iBasis1 Focus on margins, offer price in KPN’s cash tender offer for iBasis increased Margins 13.2% 13.1% • Focus on profitable contracts and 10.9% 12.1% margins 10.4% 10.3% 9.6% – Gross margin of 13.1% in Q3 ’09, vs. 9.6% in Q3 ’08 3.8% 4.4% 5.0% – Total minutes down 14% y-on-y, 3.4% 3.5% 3.0% 2.7%
Slide 29: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Carla Smits-Nusteling, CFO Operating review Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 29
Slide 30: Results Mobile International
Results Mobile International Service revenues up, solid profitability Wireless service € mn • Service revenues up 2.4% y-on-y, improving over Q2 ’09 revenues 853 935 952 952 902 943 975 • No material downturn impact • Expecting again to outperform the Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09
Slide 31: Strategic progress Belgium
Strategic progress Belgium Market outperformance as a result of initiatives taken in past quarters Actions taken Status Service revenue growth (y-on-y) 5.7% 5.4% 6.2% 7.7% • Successful relaunch and simplification Fixed-Mobile of BASE portfolio Substitution • Expanding position in SME/SoHo -2.7% -7.5
Slide 32: Strategic progress Germany
Strategic progress Germany Growth initiatives in implementation phase, results expected in coming quarters Actions taken Status Service revenue growth (y-on-y) • Selectively expanding addressable 8.4% 6.8% 6.4% 4.1% Fixed-Mobile market, e.g. SME/SoHo 2.9% -0.4% Substitution • Targeted propositions t
Slide 33: Operating review Germany
Operating review Germany Flat service revenues, in line with Q2 ’09 Net adds • 477k net adds in Q3 ’09 18.0 18.2 18.7 16.2 17.0 17.8 – 15k Post Paid net adds 15.4 – Pre Paid net adds increasing, as a result of lower churn in low-value Pre Paid 688 759 616 528 • Service revenues flat y-on-y in Q3 ’09
Slide 34: Operating review BASE
Operating review BASE Service revenues up 7.7%, driven by renewed propositions and regionalization Net adds • 73k net adds in Q3 ’09 3.1 3.2 3.4 3.5 3.5 3.6 – Solid Post Paid net adds of 34k 3.0 – 39k in Pre Paid, including clean-up of 96k inactive Pre Paid customers in Q3 183 131 87 132 29 39 • Ser
Slide 35: Rest of World
Rest of World MVNOs in Spain and France on track, Ortel gradually improving Spain • Continued growth in value-for-money segment • Simyo and blau established as value-for-money brands • Maintaining stable ARPU despite current economic conditions France • Step-up in customer growth following recent ma
Slide 36: Spectrum Germany
Spectrum Germany Further clarity on auction process for German spectrum Spectrum allocation Germany1 • ~360 MHz of mobile spectrum to be auctioned in Germany in H1 ’10 Frequency Currently Auction band allocated H1 ’10 • E-Plus keen to obtain various frequencies – Interested in 800 MHz frequencies, b
Slide 37: Regulation
Regulation Reduction in regulated wholesale tariffs, no clarity yet on new MTA tariffs • Auction of 2.6 GHz in the Netherlands planned for Q1 ’10, consultation on digital Spectrum dividend (800 MHz) in progress in the Netherlands Netherlands/ • Part of Telfort spectrum returned to Dutch government i
Slide 38: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Carla Smits-Nusteling, CFO Operating review Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 38
Slide 39: Concluding remarks
Concluding remarks • Focus on EBITDA, free cash flow and market shares continues to deliver • EBITDA growth in Dutch Telco business at lower revenues • Service revenues up at Mobile International with solid profitability • Group EBITDA up 4.4% y-on-y, free cash flow on track, market shares maintaine
Slide 40: Q&A
Q&A
Slide 41: Annex
Annex For further information please contact KPN Investor Relations Tel: +31 70 44 60986 Fax: +31 70 44 60593 [email protected] www.kpn.com/ir
Slide 42: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q3 ’09 Q3 ’08 YTD ’09 YTD ’08 Revenue effect MTA tariff reduction Group -59 -45 -140 -124 EBITDA effect MTA tariff reduction Group -21 -22 -64 -65 Book gain on sale of subsidiaries Other/W&O 2 8 Book gain on sale of real e
Slide 43: MTA regulation
MTA regulation € cents per minute 1 July ’08 1 April ’09 1 July ’09 KPN 9.0 8.0 7.0 The Netherlands Vodafone 9.0 9.0 7.0 T-Mobile 10.4 10.4 8.1 Avg. asymmetry 1.4 2.4 1.1 • MTA tariffs valid from 1 April 2009 until 30 November 2010 Germany – T-Mobile / Vodafone lowered from € 7.92 to € 6.59 cents pe
Slide 44: Impact MTA reduction
Impact MTA reduction € mn Q3 ’09 YTD ’09 1 1 Revenues EBITDA Revenues EBITDA Germany -21 -11 -41 -21 Belgium - - -12 -9 Rest of World - - - - Mobile International -21 -11 -53 -30 Consumer -21 -9 -53 -28 Of which: Mobile Wholesale NL -3 -2 -9 -6 Business -11 -1 -25 -6 Wholesale & Operations -12 - -23
Slide 45: Restructuring charges
Restructuring charges € mn Q3 ’09 YTD ’09 Germany - -1 Belgium - - Rest of World - - Mobile International - -1 Consumer - -4 Business - - Getronics -1 -30 Wholesale & Operations 1 -4 The Netherlands - -38 Other - 4 KPN Group 0 -35 45
Slide 46: Operating expenses
Operating expenses € mn Q3 ’09 Q3 ’08 % Salaries and social security contributions 502 585 -14% Cost of materials 207 259 -20% Work contracted out and other expenses 1,137 1,332 -15% Own work capitalized -21 -30 -30% Other operating expenses 177 227 -22% Depreciation1 384 401 -4.2% Amortization1 193
Slide 47: Analysis operating expenses: Salaries & Cost of materials
Analysis operating expenses Salaries & Cost of materials € mn Salaries Y-on-Y and Q-on-Q decrease • Reduction in FTE due to disposals at Getronics and 18.0% restructuring 16.1% 15.5% 16.1% 15.9% 15.2% 12.0% 637 585 562 546 541 438 502 Q1 ’08 Q2 ’08 Q3 ’08 Q4 ’08 Q1 ’09 Q2 ’09 Q3 ’09 Salaries and soc
Slide 48: Analysis operating expenses: Work contracted out & Other
Analysis operating expenses Work contracted out & Other € mn Work contracted out Y-on-Y decrease • Lower traffic volumes national and iBasis 35.7% 36.5% 36.7% 37.0% 36.3% 34.7% 34.4% • Lower number of temporary staff and consultants • Higher distribution costs at E-Plus and Consumer in Q3 ’08 • Lowe
Slide 49: Analysis operating expenses: Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y decrease • Accelerated depreciation of € 17 mn copper network 11.6% 11.1% 11.1% 11.6% 11.5% 11.6% in Q3 ’08 11.0% 409 407 401 397 392 391 384 Q1 ’08 Q2 ’08 Q3 ’08 Q4 ’08 Q1 ’09 Q2 ’09 Q3 ’09 Depreciation % of Revenues
Slide 50: Personnel
Personnel1 • Decrease of 4,369 FTE y-on-y – Reduction of 446 FTE in the Netherlands (excl. Getronics and acquisitions) – Reduction of 3,598 FTE at Getronics, mainly from divestments and restructuring 43,409 42,976 – Reduction of 325 FTE at KPN abroad, 38,919 mainly in call centers and iBasis 8,372 8
Slide 51: Tax
Tax P&L Cash flow Fiscal units (€ mn) Q3 ’09 Q3 ’08 Q3 ’09 Q3 ’08 Dutch activities -99 -88 1 -137 Getronics -1 6 - - German Mobile activities -58 -81 -6 -1 Belgian Mobile activities -8 -9 - - Other -5 - -2 - Total -171 -172 -7 -138 • Higher tax expense in Germany in Q3 ’08 due to an increase in the
Slide 52: Net cash flow from operating activities
Net cash flow from operating activities € mn Q3 ’09 Q3 ’08 YTD ’09 YTD ’08 Operating Result 752 701 2,126 2,005 Depreciation, amortization and impairments 577 578 1,759 1,772 Interest paid -178 -106 -459 -380 Income tax paid -7 -138 -561 -329 Other income -25 -24 -32 -47 Share based compensation 14
Slide 53: Total cash flow
Total cash flow € mn Q3 ’09 Q3 ’08 YTD ’09 YTD ’08 Net cash flow from operating activities 1,174 876 2,353 2,701 1 Capex -360 -505 -1,202 -1,312 Acquisitions 4 -9 -96 -171 Disposals real estate 13 26 32 40 Disposals other 9 117 57 115 Other -7 -5 -10 -18 Net cash flow from investing activities -341
Slide 54: Capex
Capex1 € mn Q3 ’09 Q3 ’08 % YTD ’09 YTD ’08 % Germany 81 145 -44% 306 332 -7.8% % Revenues Germany 9.9% 17% 13% 14% Belgium 30 40 -25% 70 72 -2.8% % Revenues Belgium 15% 21% 12% 13% Rest of World 0 2 -100% 2 5 -60% % Revenues Rest of World 0.0% 9.5% 3.1% 12% Mobile International 111 187 -41% 378 409
Slide 55: Balance sheet
Balance sheet Assets Equity & liabilities € bn € bn 24.4 23.9 25.1 24.3 24.7 24.4 23.9 25.1 24.3 24.7 3.7 3.2 2.9 5.7 3.5 5.7 5.7 5.7 3.8 5.7 1.4 1.3 1.4 1.3 1.3 Goodwill Group equity 3 3.1 2.9 3.2 3.2 3.0 Licenses Provisions 7.7 1 13.0 14.4 13.8 15.5 7.6 13.0 7.7 7.7 7.7 PPE Non-current liabilities
Slide 56: Share repurchase progress
Share repurchase progress Date1 Value (€ mn) mn shares Avg. share price (€) Q4 ’08 101.9 9.7 10.54 Q1 ’09 315.5 30.9 10.23 Q2 ’09 198.7 21.2 9.36 July 65.5 6.6 9.93 August 59.4 5.6 10.57 September 91.1 8.2 11.09 Q3 ’09 216.1 20.4 10.57 October 68.7 5.8 11.82 Total 900.9 900.9 [xx] 88.0 [xx] 10.24 •
Slide 57: Debt summary
Debt summary € bn Q3 ’09 Q2 ’09 Q3 ’08 Bonds 13.16 12.73 11.99 Eurobonds 11.56 10.68 9.99 Global bonds 1.60 2.05 2.00 Other debt 0.94 0.69 0.79 Other loans at Royal KPN1 0.15 0.14 0.12 Consolidated debt 0.79 0.55 0.67 Fair value financial instruments 0.44 0.32 0.26 Total debt 14.54 13.74 13.04 – of
Slide 58: Debt portfolio
Debt portfolio Breakdown of € 14.5 bn gross debt1 12% 76% Financial instrum ents Other 12% 3% 7% Global bonds 11% EUR USD2 GBP2 7% Eurobonds 93% 79% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fin
Slide 59: Consumer voice market
Consumer voice market1 mn Q3 ’09 Q2 ’09 Q3 ’08 KPN PSTN / ISDN 2.11 2.19 2.46 Wholesale Line Rental (WLR) 0.42 0.43 0.38 Total traditional voice 2.53 2.62 2.84 KPN VoIP 1.17 1.14 1.03 Cable VoIP 1.37 1.35 1.21 Alternative DSL VoIP 0.40 0.37 0.34 Total VoIP 2.94 2.86 2.58 Cable voice analogue 0.04 0.
Slide 60: Unbundling tariffs
Unbundling tariffs SLU, ODF, colocation set by OPTA; backhaul and WBA based on deal pricing Unbundling in current network Category Monthly tariff Line sharing (LLU)1 € 0.19 / line MDF Node Fully unbundled (LLU)1 € 7.83 / line SDF colocation KPN / Telco MDF colocation1 € 874 / footprint / year ~28,00
Slide 61: Pricing: Triple-play packages FttH and FttC
Pricing Triple-play packages FttH and FttC Gold Silver Bronze Price per month € 110 € 80 € 65 Up to 100 Mb download 50 Mb download 30 Mb download Broadband 6 Mb upload 5 Mb upload 3 Mb upload >100 channels >70 channels >50 channels FttH TV (incl. football package) IPTV IPTV IPTV Unlimited calls to n
Slide 62: Spectrum Germany
Spectrum Germany in MHz Current allocation Auction 2010 Band T-Mobile Vodafone E-Plus O2 Total Blocks Total 800 MHz - - - - - 6 blocks 2 x 5 60 900 MHz 2 x 12.4 2 x 12.4 2x5 2x5 70 - - 1800 MHz 2x5 2x5 2 x 17.5 2 x 17.5 90 5 blocks 2 x 5 50 4 blocks 2 x 5 2.1 GHz 2 x 10 2 x 10 2 x 10 2 x 10 80 1 blo
Slide 63: Service revenue growth Mobile International
Service revenue growth Mobile International Service revenue growth Germany Service revenue growth Belgium (BASE) 12.2% 11.0% 9.5% 8.0% 7.4% 7.7% 7.7% 6.4% 6.8% 6.2% 6.2% 5.5% 5.4% 4.1% 4.1% 2.6% 3.1% 2.3% 0.0% -0.4% Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Reported Under
Slide 64: Dutch wireless services disclosure
Dutch wireless services disclosure Q3 ’09 Q2 ’09 Q3 ’08 Service revenues (€ mn) 757 783 764 − Consumer 460 477 441 − Business 234 246 238 − Other Dutch activities1 63 60 85 SAC / SRC (€) − Consumer 150 116 159 − Business2 287 323 304 1 Indicates amongst others Mobile Wholesale NL, Simyo and visitor
Slide 65: KPIs Consumer Wireline Voice
KPIs Consumer Wireline Voice Voice Q3 ’09 Q2 ’09 Q3 ’08 Market share1 – Voice2 ~55% ~55% >55% – Traditional voice3 ~80% >75% >75% – VoIP 39% 40% 40% Market penetration VoIP 51% 49% 45% Access lines (x 1,000) 3,273 3,331 3,491 – PSTN 1,894 1,971 2,214 – ISDN 212 218 247 – VoIP (packages broadband and
Slide 66: KPIs Consumer Broadband & TV
KPIs Consumer Broadband & TV Broadband Q3 ’09 Q2 ’09 Q3 ’08 Market penetration Broadband1 81% 80% 79% Broadband ISP customers (x 1,000) 2,550 2,549 2,500 – KPN 1,161 1,155 1,111 – Het Net 670 681 680 – XS4ALL 280 286 288 – Other 439 427 421 Broadband ARPU (€) 31 30 30 TV Q3 ’09 Q2 ’09 Q3 ’08 Market
Slide 67: KPIs Consumer Wireless & Mobile Wholesale NL
KPIs Consumer Wireless & Mobile Wholesale NL Wireless Q3 ’09 Q2 ’09 Q3 ’08 – Customers1 (x 1,000) 6,739 6,795 6,089 – Service revenues (€ mn) 460 477 441 – ARPU (€) 23 23 24 – MoU (originating, terminating) 105 110 110 – SAC/SRC2 (€) 150 116 159 Mobile Wholesale NL2 Q3 ’09 Q2 ’09 Q3 ’08 Customers (x
Slide 68: KPIs Business Infrastructure Services & Wireless
KPIs Business Infrastructure Services & Wireless Wireline Q3 ’09 Q2 ’09 Q3 ’08 Market share voice1 ~50% ~50% >50% Access lines (x 1,000) 1,501 1,533 1,605 – PSTN 706 719 761 – ISDN 767 786 821 – VoIP 28 28 23 Business DSL 133.7 130.3 112.3 Traditional voice ARPU (€) 49 51 49 − Access 27 27 26 − Traf
Slide 69: KPIs Getronics
KPIs Getronics Q3 ’09 Q2 ’09 Q3 ’08 Service revenues (€ mn) 437 492 454 Workspaces (in mn) – Serviced IT workspaces1 1.7 1.7 n.a. – Serviced Voice workspaces 0.6 0.6 0.5 ICT Services Q3 ’09 Q2 ’09 Q3 ’08 Housing & Hosting (x 1,000) − Housing services (# m2) 25.0 24.9 21.6 − Hosting services (# serve
Slide 70: KPIs Wholesale & Operations
KPIs Wholesale & Operations Wholesale & Operations Q3 ’09 Q2 ’09 Q3 ’08 Retail voice (without ADSL) 3,578 3,694 4,043 Local loop (x 1,000) MDF access lines1 3,751 3,760 3,632 – of which line sharing2 1,434 1,494 1,670 Unbundling3 (mn) 1.1 1.1 1.0 – Shared unbundled lines 0.2 0.2 0.3 – Fully unbundle
Slide 71: KPIs Germany
KPIs Germany Q3 ’09 Q2 ’09 Q3 ’08 Market share1 – Service revenue 15.8% 15.5% 15.3% – Base 17.1% 16.9% 16.0% Customers (x 1,000) 18,712 18,235 17,027 – Of which new brands 13,018 12,313 10,451 – Post Paid 6,800 6,785 6,542 – Pre Paid2 11,912 11,450 10,485 Service revenues (€ mn) 779 757 782 ARPU (€)
Slide 72: KPIs Belgium (Mobile)
KPIs Belgium (Mobile) Q3 ’09 Q2 ’09 Q3 ’08 Market share1 – Revenue >17% >17% >16% – Base >25% >25% >24% Customers (x 1,000) 3,560 3,487 3,241 – Post Paid 646 612 548 – Pre Paid2 2,914 2,875 2,693 Service revenues (€ mn) 167 167 155 ARPU (€) 16 16 16 – Post Paid 50 50 51 – Pre Paid 8 9 9 Non-voice as
Slide 73: Cash tender offer for iBasis
Cash tender offer for iBasis On July 28, 2009, KPN commenced a cash tender offer for all of the outstanding shares of common stock of iBasis not already owned by KPN, subject to the terms and conditions set forth in the Offer to Purchase dated as of July 28, 2009, as amended and supplemented (the “O