Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — Koninklijke Kpn — Q4 2024 Earnings Presentation
29 slides from Royal Kpn Nv's earnings presentation, Jan 30, 2025
Slide 1: Q4 & FY 2024 Results
eee | 30 January 2025 kpn. The network of the Netherlands il ot ae 7
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: Highlights: KPN delivered on FY 2024 outlook; on track towards mid-term ambitions
Highlights: KPN delivered on FY 2024 outlook; on track towards mid-term ambitions bm FY 2024 Group service revenues +3.4% y-on-y, EBITDA AL € 2,508m, FCF € 900m b> Continued Group service revenue growth in Q4 (+25% y-on-y, or +2.0% organic’) b> Consumer service revenue grew 4.4% y-on-y, or +1.0% org
Slide 4: Delivered on 2024 outlook
Delivered on 2024 outlook 4 Service revenues Adj. EBITDA AL Capex Free Cash Flow DPS Share buyback Q4 & FY 2024 Results Outlook FY 2024 ~3% ~€ 2500m ~€12bn >€ 890m € 17ct € 200m +3.4% € 2508m €1,255m € 900m € 17ct! € 200m @kpn
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 make it possible for everyone to participate in, and benefit from, a connected society We provide services that are reliable and secure by design. We operate with respect 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 running
Fiber engine running Continuously expanding fiber footprint Leading fiber footprint Homes passed (k)! homes passed as a % of Dutch households OOD ae: 63% 4721 4,880 5040 $186 35% Q42023 = Q12024 = 22024 += 32024 QK 2024 2020 Q4 2024 2026 HEKPN footprint I Glaspoort footprint HEKPN footprint fll Glas
Slide 9: B2C: Service revenue growth trend softened, due to Mobile
B2C: Service revenue growth trend softened, due to Mobile 9 Key take-aways . . Consumer service revenues grew 1.0% y-on-y organically, driven by Fixed and Mobile Fixed service revenues supported by continued strong fiber broadband service revenue growth Mobile service revenue trend softened, mainly
Slide 10: B2C: Ongoing net adds, partly offset by declining Mobile ARPU
B2C: Ongoing net adds, partly offset by declining Mobile ARPU Encouraging broadband net adds Fiber net adds ~— —Fiber net adds (excl. Copper migrations) — Broadband net adds Continued positive net adds in postpaid (orga +45 +41 430 +30 Q4 2023 Q12024 Q2 2024 Q3 2024 Q4 2024 10 = Q4 & FY 2024 Results
Slide 11: B2B: Service revenues continued to grow
B2B: Service revenues continued to grow Key take-aways Adj. Service Revenue trend * Business service revenues grew 3.1% y-on-y organically, driven by all segments. Growth rate temporarily softened, partly due to one-off Continued strong growth in SME, driven by all products * LCE service revenue gro
Slide 12: B2B: Organic growth across the board
B2B: Organic growth across the board SME 10.2% +9.9% 49.1% +6.8% 45.2% Total adj. Business service revenues LCE 45.9% +44% +07% 40.4% +0.4% +1.4% Tailored Solutions t+17% Q4 2023 12024 a2 2024 3 2024 4 2024 +3,0% 42.9% — +2.6% = Growth y-on-y, organic Q4 2023 12024 Q2 2024 Q3 2024 Q4 2024 Growth y-o
Slide 13: Wholesale: Service revenue growth driven by Mobile
Wholesale: Service revenue growth driven by Mobile Key take-aways * Service revenues increased 2.3% y-on-y organically, driven by Mobile * Broadband service revenues broadly stable y-on-y, with higher service sales to Glaspoort being offset by declining LTM base * Mobile service revenues increased 2
Slide 14: ESG dashboard: continued progress on ambitions
ESG dashboard: continued progress on ambitions Base year! Mii™ 2:23 ((Q0) “no Mitma22% fo pa n =p 30% Mii™ 2:23 Mim 0224 oa . . 87 Vd Circularity (R&R) 87 1 y 5 Mia 23 Women in sub top? Mos 24 o000 3 oe 2 Women at KPN n 14 Q4& FY 2024 Results Scope 1- Direct emissions * Gross emissions, relating to
Slide 15: Financial Performance
@kpn Financial Performance
Slide 16: Summary: Q4 & FY 2024 results
Summary: Q4 & FY 2024 results Adjusted revenues €1,445m €5,634m 41.7% +3,6% 42023 FY 2023 €142Im €5,448m Net profit €215m €847m +4.3% +0.6% 4.2023 FY 2023 €206n € 843m Capex €335m €1,255m 2.4% +0.6% 4.2023 FY 2023 €343m €1.248m 16 = Q4 & FY 2024 Results Adj. net indirect opex AL +€6m +€53m Liquidity
Slide 17: Continued Group service revenue growth, supported by all segments
Continued Group service revenue growth, supported by all segments Continued Group service revenue growth Growth driven by all segments C€m, organic) C€ m, organic) Avon (422) (see (ax (34%) (om Ay-on-y, organic 7 organic Ww 1768 1300 1303 Q4 2023 27 & : ee | +1.0% : 166 162 Consumer | 47 Business =
Slide 18: Adjusted EBITDA AL growth driven by higher revenues, partly offset by higher costs
Adjusted EBITDA AL growth driven by higher revenues, partly offset by higher costs 18 Adjusted EBITDA AL +15, +700 ee 45 242000 FY 2023 Service revenues Non-service Direct revenues costs Q4 & FY 2024 Results -27 Personnel expenses 2,508 16 8 Other Lease FY 2024 opex related exp. @kpn
Slide 19: Continued solid Operational FCF growth, despite higher spend
Continued solid Operational FCF growth, despite higher spend Operational Free Cash Flow +6.9% +15 — +700 | “500 53 7 1172 FY 2023, Service revenues Non-service Direct Indirect Capex FY 2024 revenues & Other costs costs 19 Q& & FY 2024 Results &§ kpn
Slide 20: FCF generation driven by solid operational performance
FCF generation driven by solid operational performance Adj. EBITDA AL 2024 Capex Operational FCF Cash restructuring Change in provisions Interest paid Taxes paid Change in WC Other movements FCF 2024 20 Q4 & FY 2024 Results 2,508 Contribution to 4 FCF y-on-y (€ m) +88 7 +81 +14 +0 +14 D> 2024 FCF of
Slide 21: Steadily improving Return on Capital
Steadily improving Return on Capital em 27% ROCE! 141% 4.4% 131% 2022 2023 2024 (€ bn) , 7 76 Capital Employed 2022 2023 2024 * Increasing due to ni 2022 2023 2024 21 Q4 & FY 2024 Results 1. ROCE is calculated on a 4-quarter average rolling basis &§ kpn
Slide 22: Robust liquidity position, committed to investment-grade credit profile
Robust liquidity position, committed to investment-grade credit profile 22 Cash & short-term investments Stable Gross debt; Net debt € 260m lower g-on-q at € 6.0bn due to FCF generation Leverage ratio 0.1x lower q-on-q at 2.4x — Leverage ratio? 10.5x 10.6x 10.5x 10.5x 23x 23x 24x 2.4x 6304 6910 Zio
Slide 23: Outlook 2025 and ambitions 2027
Outlook 2025 and ambitions 2027 B Service revenues Adj. EBITDA AL Capex Free Cash Flow Q4 & FY 2024 Results +3.4% €2508m €1,255m €900m Excluding the potential positive ¢ Outlook FY 2025! ~3% ~€ 2580m ~€ 1.25bn ~€E 910m Ambitions FY 20272 ~3% CAGR ~3% CAGR <€ 1.0bn ~7% CAGR @kpn
Slide 24: Growing DPS supplemented with share buybacks
Growing DPS supplemented with share buybacks Shareholder remuneration policy Committed to progressive dividend per share Free Cash Flow returned to shareholders over 2024-2027 period * 2024: payout of ~€ 860m * 2025: intention to payout ~€ 950m BS 43 150 Dividend step-up in 2024 (+13%) * 2025: DPS +
Slide 25: Highlights: KPN delivered on FY 2024 outlook; on track towards mid-term ambitions
Highlights: KPN delivered on FY 2024 outlook; on track towards mid-term ambitions bm FY 2024 Group service revenues +3.4% y-on-y, EBITDA AL € 2,508m, FCF € 900m b> Continued Group service revenue growth in Q4 (+25% y-on-y, or +2.0% organic’) b> Consumer service revenue grew 4.4% y-on-y, or +1.0% org
Slide 26: Appendices
&kpn Appendices @ Tax @ Debt portfolio
Slide 27: Tax Q4 & FY 2024
I. Tax Q4 & FY 2024 277 P&L Cash flow P&L Cash flow Regions (€ m) Q4 2023 Q42024 Q4 2023 Q42024 FY 2023 FY 2024 FY 2023 FY 2024 The Netherlands -55 -55 41 -48 -245 -238 -110 -147 Other - = - = Reported tax from continuing operations -55 -55 -41 -48 -245 -238 -110 -147 Effective tax rate continuing o
Slide 28: Debt portfolio
Il. Debt portfolio Nominal debt by type’ Nominal debt by currency! Fixed vs. floating interest! Debt redemption profile? O* 15% 7% "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 reset)
Slide 29: KPN Investor Relations
kpn KPN Investor Relations @ ir-kpn.com 29° Q4 & FY 2024 Results &§ kpn