Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — Koninklijke Kpn — Q2 2024 Earnings Presentation
27 slides from Royal Kpn Nv's earnings presentation, Jul 24, 2024
Slide 1: The network of the Netherlands
SURUUEe ae 24 July 2024 kpn. The network of the Netherlands | oh ane
Slide 2: Safe harbor
Safe harbor Alternative performance measures and management estimates. This financial report contains a number of alternative performance measures (non-GAAP figures) to provide readers with additional financial information that is regularly reviewed by management, such as EBITDA and Free Cash Flow C
Slide 3: KPN continues to deliver on strategic and financial objectives
KPN continues to deliver on strategic and financial objectives cOee0 Closed Youfone Signed solar PPA, Signed strategic Successfully issued Obtained attractive acquisition & delivering 50 GWh partnership with a € 500m Green spectrum in included figures from 2025 ABP to create new Hybrid Bond 3.5GHz s
Slide 4: Business highlights
Business highlights >> Continued Group service revenue growth (+3.7% y-on-y), driven by B2C and B2B b> Consumer service revenue growth (+7.7% y-on-y, or +4.3% corrected for Youfone) >> Ongoing momentum in Consumer postpaid (+540k, o/w 499k acquired from Youfone) >> Positive broadband net adds (+59k,
Slide 5: Strategy 2024-2027: a mission to Connect, Activate & Grow
Strategy 2024-2027: a mission to Connect, Activate & Grow Purpose We go all out to connect everyone in the Netherlands to a sustainable future e Connect Activate Grow St rateg ic Connect with our customers to Activate our best network, Grow KPN by modernizing . . deliver on their needs platforms, pa
Slide 6: ESG fully embedded in strategy
ESG fully embedded in strategy We provide services that are reliable and secure by design. We operate with respect We make it possible for everyone to participate in, and benefit from, a connected society We minimize our footprint, maximize our positive impact and respect the environment 17 UN Susta
Slide 7: Connect, Activate & Grow
&kpn Connect, Activate & Grow
Slide 8: Fiber engine at full speed
Fiber engine at full speed Continuously expanding fiber footprint - C3) (4130) [- ~~ 450% _ +130) ~ ca] 4,390 aml 4,260 4162 3,920 — | Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 B2C broadband customer base mix Q2 2023 Q3 2023, Q4 2023 Q12024 Q2 2024 lFiber | Copper 8 Q2 & H1 2024 Results ich Leading fi
Slide 9: B2C: Continued service revenue growth, driven by Fixed and Mobile
B2C: Continued service revenue growth, driven by Fixed and Mobile Key take-aways * Consumer service revenues grew 7.7% y-on-y, or 4.3% corrected for Youfone, driven by base growth and higher ARPU * Fixed service revenues supported by fiber broadband service revenue growth. Broadband net adds +59k, o
Slide 10: B2C: Base growth and higher ARPU driving service revenue growth
B2C: Base growth and higher ARPU driving service revenue growth Broadband net adds +22 +22 TTT +17 +17 43 —-----~ + ay +7 -S— + 5 43 vee Fiber net adds — —Fiber net adds (excl. Copper migrations) — Broadband net adds Continued momentum in postpaid "93 +41 +31 Ss +30 +22 Q2 2023 Q3 2023 Q4 2023 Q1 20
Slide 11: B2B: Service revenue growth, mainly driven by SME
B2B: Service revenue growth, mainly driven by SME Key take-aways Service revenue trend * Business service revenues grew by 3.7% y-on-y, or 4.4% corrected 14.7% +h% +4.5% 43.2% 43.7% for Youfone and divestments in LCE * Added 62k postpaid net adds (of which 42k related to Youfone) 426 432 aa 434 442
Slide 12: B2B: All segments contributing
B2B: All segments contributing SME! “49.6% +120% 10.2% 49.9% 49.1% 159 168 169 170 1 2.2023 Q3 2023 Q4 2023 12024 Q2 2024 LCE? +0.4% +0.7% +0.4% +0.4% (€ m) -23% 194 190 198 189 189 2.2023 Q3 2023 Q4 2023 12024 Q2.2024 ilored Solutions = 46.2% +68% +3.0% +2.9% +4.6% 7h 7h 80 3 7 2.2023 Q3 2023 Q4 20
Slide 13: Wholesale: Revenue decline due to Mobile and lower regulated tariffs
Wholesale: Revenue decline due to Mobile and lower regulated tariffs Key take-aways * Wholesale service revenues decreased 10% y-on-y, or 2.7% corrected for Youfone, due to lower Mobile and Other service revenues * Broadband base declined 6k (corrected for Youfone) * Added 8k postpaid subscriptions
Slide 14: ESG dashboard: continued progress towards Net Zero
ESG dashboard: continued progress towards Net Zero Base year Scope 1- Direct emissions * Gross emissions, relating to fuel consumption car fleet, heating of buildings, consumption of Bima 3 coolants, fuel consumption of emergency power generators Mum a1 24 * Ambition: 99% fossil fuel free cars added
Slide 15: Financial Performance
&kpn Financial Performance
Slide 16: Summary: Q2 and H1 2024 results
Summary: Q2 and H1 2024 results Adj. net indirect opex AL Adjusted EBITDA AL Adjusted revenues €1,391m €2,768m +€10m +€28m € 629m €1,235m +4.5% +3.9% +5.6% +4.6% Q2 2023 12023 Q2 2023 12023 €131m € 2,664 €59%m, €1,180m Q2 adjusted EBITDA AL +5.6% y-on-y Net profit ROCE Leverage ratio * Revenue growt
Slide 17: Continued Group service revenue growth
Continued Group service revenue growth Continued Group service revenue growth Growth driven by Consumer and Business (€m) 1245 277 7 1.29 iw 1292 Q2 2023 (124s a = 4 Q - 2 Wh 79 172 167 158 Consumer ma: Business | Wholesale 18 Other 4 Q2 2023 Q3 2023 Q4 2023 Q12024 Q2 2024 Q2.2024 hE 1,292 Hii consu
Slide 18: Adjusted EBITDA AL growth driven by higher revenues
Adjusted EBITDA AL growth driven by higher revenues Adjusted EBITDA AL +5.6% 4 — o TT +2 To a 629 9 4 2 59% Q2 2023 Service revenues Non-service Direct Personnel IT/TI expenses Other Lease Q2 2024 revenues costs expenses opex related exp. 18 ~=Q2.&H12024 Results @kpn
Slide 19: FCF generation driven by EBITDA growth
FCF generation driven by EBITDA growth Adj. EBITDA AL H1 2024 9 Capex Operational FCF Cash restructuring Change in provisions Interest paid Taxes paid Change in WC Other movements FCF H1 2024 Q2 & H1 2024 Results 1,235 Contribution to 4 FCF y-on-y (€ m) +55 -38 +1 D> 112024 FCF of € 364m, 3.0% highe
Slide 20: Steadily improving Return on Capital
Steadily improving Return on Capital em 21 ROCE' BI% 4.4% 120% Q22022 22023 §=Q22024 (€ bn) A . 76 Capital Employed H1 2022 H12023 H12024 12022, = H12023.—-H12024 20 Q2&H12024 Results 1, ROCE is calculated on a 4-quarter average rolling basis &§ kpn
Slide 21: Robust liquidity position, committed to investment-grade credit profile
Robust liquidity position, committed to investment-grade credit profile a 12x 12.3x 105x 10.6x 10.5x 24x 24x 23x 23x 2.4x 6910 746 6400 6,384 - $1065 739 5,820 5,582 5,596 605? S14 1107 407 579 802 Q2 2023 Q3 2023 Q4 2023 12024 02.2024 Hi Gross debt — Interest cover ratio! Hnet debt Cash & short-ter
Slide 22: FY 2024 outlook reiterated
FY 2024 outlook reiterated 22 Service revenues Adj. EBITDA AL Capex Free Cash Flow Q2 & H1 2024 Results € 640m € 364m Outlook FY 2024 ~3% ~€ 2500m ~€12bn >€ 890m Ambitions FY 2027! ~3% CAGR ~3% CAGR <€ 1.0bn ~T% CAGR @kpn
Slide 23: Business highlights
Business highlights >> Continued Group service revenue growth (+3.7% y-on-y), driven by B2C and B2B b> Consumer service revenue growth (+7.7% y-on-y, or +4.3% corrected for Youfone) >> Ongoing momentum in Consumer postpaid (+540k, o/w 499k acquired from Youfone) >> Positive broadband net adds (+59k,
Slide 24: Appendices
&kpn Appendices @ Tax @ Debt portfolio
Slide 25: Tax Q2 & H1 2024
I. Tax Q2 & H1 2024 P&L Cash flow P&L Cash flow Regions (€ m) Q2 2023 Q22024 Q2 2023 Q22024 H12023 H12024 H12023 H12024 The Netherlands -64 -67 -16 -28 -121 “113 “42 SW Other - = - = - = - = Total reported tax -64 -67 “16 -28 121 “113 “42 “37 Of which discontinued operations - - - - - - - - Reported
Slide 26: Debt portfolio
Il. Debt portfolio Nominal debt by type’ Nominal debt by currency* Fixed vs. floating interest! Debt redemption profile? & 14% 16% "24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '36 Hl Eurobonds Mlcur Fixed Mlcur Hl Global bonds Hicep Floating Micse Hybrid bonds USD USD Loans & other = HBBEUR hybrid Cist r
Slide 27: KPN Investor Relations
kpn KPN Investor Relations @ ir-kpn.com 27 Q2&H12024 Results &§ kpn