Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — KPN — BAML conference 2015
12 slides from Royal Kpn Nv's conference presentation, June 2015
Slide 1: Investor presentation June 2015
Investor presentation June 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 depreciatio
Slide 3: Differentiating through innovative products
Differentiating through innovative products Leading IPTV product supported by continuous innovation Strong innovation roadmap… Play. by KPN: addressing shift to on demand consumption TV Everywhere 2016 Live TV Pausing 2015 Play. by KPN OTT 2014 Start-over TV LIVE VOD Continued increase Growing TV ma
Slide 4: Consistent value creation in Consumer Mobile
Consistent value creation in Consumer Mobile New data bundles allow carefree usage and upsell opportunity Encourage data usage through innovation… …driving data usage growth ~1,040 ~660 ~310 4G ~260 4G 3G 3G Q1 ’14 Q1 ’15 Average Data Per User (MB)1 …leading to increased upsell +100% ~40% ~20% Feb -
Slide 5: KPN clear leader in convergence
KPN clear leader in convergence Fixed-mobile bundles based on value added rather than discounts Additional value for customers Value creation for KPN Increased revenue Double mobile data per household Limited Free calling in family incremental cost Free TV channels Reduced churn 5
Slide 6: Developing as best-in-class service provider
Developing as best-in-class service provider NPS continues to improve across all segments NPS Consumer Residential1 NPS Consumer Mobile1 NPS Business1 4 3 -11 +8 +8 +8 -4 -5 -19 Q1 ’14 Q1 ’15 Q1 ’14 Q1 ’15 Q1 ’14 Q1 ’15 1 Source: TNS NIPO. Consumer Residential (all brands), Consumer Mobile (all bran
Slide 7: Increasing fiber penetration within fixed network
Increasing fiber penetration within fixed network Copper speeds enhanced through FttC, vectoring and pair bonding Increasing FttH / FttC …driving coverage penetration… of 100Mbps SC FttC Copper FttH ~80% ~85% 55% 57% 45% 28% FttC 23% 23% FttH 22% 27% Q1 ’14 Q1 ’15 end Q1 ’14 Q1 ’15 end 2016 2016 Per
Slide 8: Expanding superior 4G network
Expanding superior 4G network Leverage full spectrum portfolio to further increase available speeds Best national 4G Increasing capacity and speed coverage in Europe Most time spent Triple carrier Fully modernized on LTE in Europe1 aggregation backhaul 90% 10MHz 24% 79% LTE 800 Modernized 73% microw
Slide 9: Building efficient and lean operating model
Building efficient and lean operating model Structurally lower spend through Simplification program Simplification program Rebranding Hi to KPN on track Run-rate FTE savings1 reductions2 >€ 400m 2,000-2,500 end 2016 Marketing cost Reduction reduction3 # of shops ~10% ~20% end Q1 ’15 ~€ 170m ~950 end
Slide 10: Transformation Business segment on track
Transformation Business segment on track Good progress made to address changing market dynamics Transformation Actions Targets Standardized Portfolio reduction1 Improve customer portfolio ~30% satisfaction (NPS) Bundled customer Process Improve propositions simplification First Time Right Simplified
Slide 11: Developing towards highly cash generative company
Developing towards highly cash generative company Strong FCF growth potential 1 Growing revenues per customer 2 Rigid focus on driving down opex 3 Capex levels trending down 4 Lower interest payments going forward 5 Limited cash taxes in The Netherlands 11
Slide 12: Q&A
Q&A 12