Royal KPN NV · EURONEXT:KPN
Royal KPN NV — KPN — Merrill Lynch Global TMT Conference 2009
19 slides from Royal KPN NV's conference presentation, Jun 2, 2009
Slide 1: Merrill Lynch Global TMT Conference
Merrill Lynch Global TMT Conference Ad Scheepbouwer, Chairman and CEO London, 2 June 2009
Slide 2: Safe harbor
Safe harbor Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the impact of regulatory initiatives on KPN’s operations, its and its joint ventures' share of ne
Slide 3: Disclaimer
Disclaimer We define EBITDA as operating result before depreciation and impairments of PP&E and amortization and impairments of intangible assets. Note that our definition of EBITDA deviates from the literal definition of earnings before interest, taxes, depreciation and amortization and should not
Slide 4: Agenda
Agenda Highlights Q1 2009 Operating review the Netherlands Operating review Mobile International Concluding remarks 4
Slide 5: Highlights Q1 '09
Highlights Q1 ’09 • Solid first quarter results • Revenue and EBITDA growth for Dutch Telco business1 • Continued profitable growth at Mobile International • Lower EBITDA at near stable revenues at Getronics, pre-emptive measures taken to maintain profitability • Implemented measures to mitigate imp
Slide 6: Impact of economic downturn Q1 2009
Impact of economic downturn Q1 2009 Ability to adapt quickly to economic conditions with relatively flexible cost base • Limited impact from economic downturn in consumer markets, impact in business market now apparent – No material change in churn, bad debtors and trading down in consumer markets –
Slide 7: Outlook
Outlook Guidance for 2010 as part of ‘Back to Growth’ strategy Reported Outlook Outlook 2008 2009 2010 Slight Revenues and In line with € 14.0 bn increase to • Macro-economic conditions other income1 2008 2009 deteriorated since announcement ‘Back to Meaningful Growth’ strategy EBITDA1 € 5.0 bn step
Slide 8: Financial review Dutch Telco business by segment
Financial review Dutch Telco business by segment Solid revenue and profitability trends in Q1 ’09 € mn 22.7% 22.7% 21.5% 18.6% 23.7% • Again solid revenue and profitability Consumer trends, supported by low net line loss 1,002 1,035 1,050 1,041 1,031 • Continued upward trend in wireless • EBITDA mar
Slide 9: Financial review the Netherlands by segment
Financial review the Netherlands by segment Actions taken at Getronics to maintain profitability, focus on EBITDA at iBasis € mn • Revenues down 1.1% y-on-y in Q1 7.2% Getronics (existing) • EBITDA down € 35 mn y-on-y, to a 3.7% 3.2% large extent from one-offs − Q1 ’08 positively impacted by € 9 mn
Slide 10: Consumer
Consumer Strong improvement in Consumer segment, strategy delivering results ‘Back to Growth’ strategy Achievements Q1 ’09 Strengthen position as • Consumer strategy delivering results leading consumer − Growth in revenues and profitability service provider − Shift to customer value − Investments fo
Slide 11: Business
Business Leading managed ICT service provider, upside from Getronics integration ‘Back to Growth’ strategy Achievements Q1 ’09 • Solid revenue and profitability trends Leading managed ICT service provider • Stable market shares in most segments • Robust performance in wireline services, as a result
Slide 12: Getronics
Getronics Restructuring on track, actions taken to maintain profitability goals ‘Back to Growth’ strategy Achievements Q1 ’09 • Revenues down 1.1% y-on-y in Q1 • EBITDA down € 35 mn y-on-y, to a large Benelux market leader extent from one-off items • Impact economic downturn in most areas − Clients
Slide 13: Financial review Mobile International by segment
Financial review Mobile International by segment Continued profitable growth in Germany and Belgium € mn 37.6% 38.1% 40.0% 38.9% 41.6% • Revenues and other income up 2.5%, Germany with service revenue growth of 4.1% 755 808 840 815 774 • Continued strong EBITDA, growing by Q1 '08 Q2 '08 Q3 '08 Q4 '0
Slide 14: Mobile International market outperformance
Mobile International market outperformance Confident to continue market outperformance in Germany and Belgium Germany Belgium Service revenue growth (y-on-y) 8.1% 7.3% 7.4% 6.8% 5.4% 6.2% 6.4% 5.5% 4.1% -2.7% 1% 1% -2% -3% -2% -1% -1% -1% -4% -4% Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q1 '08 Q2 '08 Q3 '
Slide 15: Concluding remarks
Concluding remarks • Solid first quarter results • Revenue and EBITDA growth for Dutch Telco business • Continued profitable growth at Mobile International • Lower EBITDA at near stable revenues at Getronics, pre-emptive measures taken to maintain profitability • Implemented measures to mitigate imp
Slide 16: Q&A
Q&A For further information please contact KPN Investor Relations Tel: +31 70 44 60986 Fax: +31 70 44 60593 ir@kpn.com www.kpn.com/ir
Slide 17: Annex
Annex
Slide 18: Fiber
Fiber Focus on 5 cities with FttC and 5 cities with FttH, using new delivery process Propositions Delivery process • Simple product portfolio with three • Local marketing approach for fiber distinct propositions – Demonstrating fiber possibilities in • Focus on superior triple play offers ‘House of
Slide 19: Reggefiber
Reggefiber Further detail on JV structure Ownership structure • Reggeborgh contributed € 273 mn in net assets – Homes passed, homes activated and projects under construction Reggeborgh • KPN contributed € 190 mn in assets and cash – € 100 mn in cash in Q4 '08, € 74 mn in Q1 '09 41% Reggefiber 59% •