Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — Koninklijke Kpn — Q2 2025 Earnings Presentation
28 slides from Royal Kpn Nv's earnings presentation, Jul 23, 2025
Slide 1: Q2 & H1 results
Q2 & H1 results 23 July 2025 kpn. The network of the Netherlands 1 Presentatie titel Vertrouwelijk
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 (‘
Slide 3: Highlights: KPN delivers a strong quarter; full-year 2025 outlook raised
Highlights: KPN delivers a strong quarter; full-year 2025 outlook raised Continued Group service revenue growth (+3.7% y-on-y), driven by all segments Consumer service revenues increased 1.3% y-on-y Solid commercial momentum in Consumer broadband (+13k) and postpaid (+37k) Business service revenues
Slide 4: 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 Connect Activate Grow Strategic Connect with our customers to deliver on their needs Activate our best network, platforms, partners, & assets Grow KPN by mod
Slide 5: Connect, Activate & Grow
Connect, Activate & Grow Presentatie titel 54 Vertrouwelijk
Slide 6: Leading fiber footprint: covering two-thirds of the Netherlands
Leading fiber footprint: covering two-thirds of the Netherlands Continuously expanding fiber footprint Leading fiber footprint Homes passed (k) Homes passed as a % of Dutch households ~80% +137 +109 +100 +116 66% 5,049 5,186 5,295 5,395 5,510 525 552 613 641 695 35% 4,524 4,634 4,682 4,753 4,815 Q2
Slide 7: B2C: Service revenue growth driven by Fixed and Mobile
B2C: Service revenue growth driven by Fixed and Mobile Key take-aways Adj. Service Revenue trend • Consumer service revenues increased 1.3% y-on-y, driven by Fixed and Mobile +4.3% • Fixed service revenue growth supported by solid fiber broadband growth +2.7% • Solid broadband net adds (+13k1), driv
Slide 8: B2C: Solid commercial momentum in broadband and postpaid
B2C: Solid commercial momentum in broadband and postpaid Broadband net adds trend improved Fixed ARPU growing Fixed service revenue trend improved (k) (growth y-on-y) +46 +44 +42 € 54 +37 +37 +22 +3.1% +19 +15 +13 +14 +10 +13 +1.0% +1.3% +1.3% +0.7% +3 +3 +2 +1.2% y-on-y Fiber net adds Fiber net add
Slide 9: B2B: Continued strong service revenue growth
B2B: Continued strong service revenue growth Key take-aways Adj. Service Revenue trend • Business service revenues grew 5.7% y-on-y, driven by all divisions • Continued solid growth in SME, driven by Cloud & Workspace, broadband +6.0% +5.7% and sustained commercial momentum in Mobile +5.1% +4.5% • L
Slide 10: B2B: Growth driven by all divisions
B2B: Growth driven by all divisions SME +9.1% +7.1% +5.6% +6.3% Total adj. Business service revenues +4.8% LCE +6.0% +5.0% +5.7% +4.5% +5.1% +1.0% +1.6% +1.7% +3.2% -0.2% Tailored Solutions +18% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 +15% Growth y-on-y +5.8% +2.8% +1.4% Q2 2024 Q3 2024 Q4 2024 Q1 2
Slide 11: Wholesale: Service revenue trend further improved
Wholesale: Service revenue trend further improved Key take-aways Adj. Service Revenue trend • Service revenues increased 8.1% y-on-y, mainly driven by continued +8.1% +6.1% momentum in international sponsored roaming • Broadband service revenues grew 2.5% y-on-y, driven by higher fiber +0.8% +2.1% s
Slide 12: ESG fully embedded in strategy
ESG fully embedded in strategy Inclusive We provide services that are reliable We make it possible for everyone to and secure by design. We operate Security Diversity participate in, and benefit from, a with respect Reliability Social inclusion connected society Human rights Digital inclusion Energy
Slide 13: ESG dashboard: continued progress on ambitions
ESG dashboard: continued progress on ambitions In kTon CO2e Base year1 Scope 1 – Direct emissions 38 -87% LTM Q1 ’24 • Gross emissions, relating to fuel consumption car fleet, heating of buildings, Scope 1 7 -35% LTM Q1 ’25 consumption of coolants, fuel consumption of emergency power generators 5 •
Slide 14: Financial Performance
Financial Performance Presentatie CMD 2024 titel Vertrouwelijk
Slide 15: Summary: Q2 & H1 2025 results
Summary: Q2 & H1 2025 results Adjusted revenues Adj. net indirect opex AL Adjusted EBITDA AL Q2 adjusted revenues +5.8% y-on-y Q2 2025 H1 2025 Q2 2025 H1 2025 Q2 2025 H1 2025 • Driven by growth in all segments € 1,472m +5.8% € 2,889m +4.4% € 421m +€ 1m € 840m -€ 3m € 670m +6.4% € 1,303m +5.6% • Non-
Slide 16: Adjusted revenue growth partly driven by other effects
Adjusted revenue growth partly driven by other effects Adjusted revenues (€ m) +5.8% +5 1,472 +28 +3.4% +47 1,438 -0 1,391 Q2 2024 Service Non-service Q2 2025 IPR Althio Q2 2025 Reported revenues revenues & Other Underlying Reported 16 Q2 & H1 2025 Results
Slide 17: Continued Group service revenue growth, supported by all segments
Continued Group service revenue growth, supported by all segments Consumer +4.3% +2.7% Total Group service revenues +1.0% +1.2% +1.3% Business +6.0% +5.7% +3.7% +4.5% +5.1% +3.3% +3.4% +3.2% +3.2% +2.0% Wholesale +8.1% +6.1% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 +2.1% +0.8% Growth y-on-y -2.9% Q2
Slide 18: Adjusted EBITDA AL growth mainly driven by higher revenues
Adjusted EBITDA AL growth mainly driven by higher revenues Adjusted EBITDA AL (€ m) +6.4% +4.0% +47 +6 670 +9 654 -20 -1 629 Q2 2024 Revenues Direct costs Indirect costs Q2 2025 IPR Althio Q2 2025 Reported Underlying Reported 18 Q2 & H1 2025 Results
Slide 19: Solid H1 Operational Free Cash Flow growth
Solid H1 Operational Free Cash Flow growth Operational Free Cash Flow (€ m) +20% +18% +6 +9 712 +50 702 -6 +57 595 H1 2024 EBITDA Capex H1 2025 IPR Althio IPv4 H1 2025 Reported growth decline Underlying Reported 19 Q2 & H1 2025 Results
Slide 20: H1 FCF mainly impacted by phasing of Working Capital
H1 FCF mainly impacted by phasing of Working Capital Contribution to Δ FCF y-on-y (€ m) H1 2025 FCF of € 309m, 15% lower y-on-y mainly Adj. EBITDA AL H1 2025 1,303 +69 due to: - Phasing of working capital Capex -592 +48 - Higher interest payments and cash taxes Operational FCF 712 +117 - Partly offs
Slide 21: Steadily improving Return on Capital
Steadily improving Return on Capital (€ m) 271 278 ROCE1 247 NOPLAT 14.4% 14.6% • Improving adjusted EBITDA AL 13.7% Q2 2023 Q2 2024 Q2 2025 (€ bn) 7.3 7.6 7.7 Capital Employed H1 2023 H1 2024 H1 2025 • Increasing due to network investments H1 2023 H1 2024 H1 2025 21 Q2 & H1 2025 Results 1. ROCE is
Slide 22: Robust liquidity position, committed to investment-grade credit profile
Robust liquidity position, committed to investment-grade credit profile 10.5x 10.5x 9.6x 9.6x Robust liquidity… 9.3x (€ m) 1,075 1,406 2.4x 2.5x 2.4x 2.4x 2.5x (€ m) 7,519 7,146 6,854 6,523 6,738 6,722 331 6,039 6,220 5,960 6,079 Cash & short RCF Total liquidity end Q2 2025 term investments 1,107 1,
Slide 23: FY 2025 outlook raised; mid-term ambitions reiterated
FY 2025 outlook raised; mid-term ambitions reiterated Old outlook New outlook Ambitions FY 2025 FY 2025 FY 20271 Service revenues ~3% ~3% ~3% CAGR Adj. EBITDA AL >€ 2,600m >€ 2,630m ~3% CAGR Capex ~€ 1.25bn ~€ 1.25bn <€ 1.0bn Free Cash Flow ~€ 920m >€ 940m ~7% CAGR 23 Q2 & H1 2025 Results 1. CAGR co
Slide 24: Highlights: KPN delivers a strong quarter; full-year 2025 outlook raised
Highlights: KPN delivers a strong quarter; full-year 2025 outlook raised Continued Group service revenue growth (+3.7% y-on-y), driven by all segments Consumer service revenues increased 1.3% y-on-y Solid commercial momentum in Consumer broadband (+13k) and postpaid (+37k) Business service revenues
Slide 25: Appendices
Appendices l Tax ll Debt portfolio Presentatie CMD 2024 titel Vertrouwelijk
Slide 26: I. Tax Q2 & H1 2025
I. Tax Q2 & H1 2025 P&L Cash flow P&L Cash flow Regions (€ m) Q2 2024 Q2 2025 Q2 2024 Q2 2025 H1 2024 H1 2025 H1 2024 H1 2025 The Netherlands -67 -64 -28 -41 -113 -115 -37 -67 Other Total reported tax -67 -64 -28 -41 -113 -115 -37 -67 Of which discontinued operations Reported tax from continuing ope
Slide 27: II. Debt portfolio
II. Debt portfolio Nominal debt by type1 Nominal debt by currency1 Fixed vs. floating interest1 Debt redemption profile2 1.1 8% 6% 1.0 14% 13% 0.8 0.8 14% 0.7 0.6 0.7 0.6 0.7 6% 0.3 72% 81% 86% ’25 ’26 ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’34 ’35 ’36 Eurobonds EUR Fixed EUR Global bonds GBP Floating GBP Hybr
Slide 28: KPN Investor Relations
KPN Investor Relations ir.kpn.com 28 Q2 & H1 2025 Results