Royal KPN NV · EURONEXT:KPN
Royal KPN NV — Q3 2008 Earnings Presentation
76 slides from Royal KPN NV's earnings presentation, Oct 22, 2008
Slide 1: Third Quarter Results 2008
Third Quarter Results 2008 22 October 2008
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 Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 4
Slide 5: Highlights Q3
Highlights Q3 • Solid third quarter results • The Netherlands comfortably delivering on upgraded EBITDA guidance for 2008 • Mobile International showing continued profitable growth • Confirming 2010 objectives as stated in ‘Back to Growth’ strategy • Solid liquidity profile after Q3 bond issue, anno
Slide 6: Economic impact
Economic impact • Solid third quarter results, no impact from economic downturn on ongoing operations – Early warning indicators are being tracked • KPN well prepared to deal with various economic scenarios • Economic downturn providing both risks and opportunities to KPN – Risk of customers saving
Slide 7: Financial highlights Q3
Financial highlights Q3 • Solid financial performance in Q3 ’08 – Revenues and other income of € 3.7 bn, up 20% – EBITDA of € 1.3 bn, up 4.8% – Capex of € 0.5 bn, up 34% • Free cash flow1 of € 0.5 bn in Q3, € 1.6 bn YTD – Confirming full-year FCF guidance of at least € 2.4 bn for 2008 • € 2 bn of sh
Slide 8: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 8
Slide 9: Group results
Group results Solid third quarter results € mn Q3 ’08 Q3 ’07 % YTD ’08 YTD ’07 % Revenues and other income 3,652 3,037 20% 10,884 8,973 21% – of which Revenues 3,626 3,007 21% 10,812 8,882 22% Operating expenses 2,951 2,357 25% 8,879 7,107 25% 1 – of which Depreciation 401 380 5.5% 1,217 1,235 -1.5%
Slide 10: Group cash flow
Group cash flow Confirming full-year FCF guidance of at least € 2.4 bn for 2008 € mn Q3 ’08 Q3 ’07 % • Free cash flow of € 0.5 bn in Q3 ’08 Operating result 701 680 3.1% – Increase in Capex, tax and interest Depreciation and amortization1 578 540 7.0% – Working capital outflow € 71 mn higher Interes
Slide 11: Group financial profile
Group financial profile Solid liquidity position following € 850 mn bond issue in September € bn Debt Financing policy 13.0 12.1 11.9 12.1 10.7 2.5x 10.1 9.7 11.7 11.3 2.3 2.3 2.3 2.4 2.0x 11.0 10.9 2.1 10.0 1.8 1.9 9.3 8.8 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q1 '07 Q2 '07 Q3 '07 Q4 '07
Slide 12: Pension plans
Pension plans Volatile financial markets impacting pension plans at most Dutch companies Q2 2008 Current situation • Solid pension position going forward • Volatile financial markets impacting defined – Based on independent audit benefit pension plans at Dutch companies – Lower obligations from phas
Slide 13: EBITDA trend improving in the Netherlands
EBITDA1 trend improving in the Netherlands On track to comfortably achieve the upgraded EBITDA guidance for 2008 € mn Underlying EBITDA the Netherlands1 • Further improvement in EBITDA trends for the Netherlands excluding 5 4 11 acquisitions 2 4 21 – EBITDA Q3 up € 53 mn or 6.6% y-on-y, of which abo
Slide 14: Performance vs. guidance
Performance vs. guidance Guiding for group level EBITDA of around € 5 bn for 2008 Guidance 2008 KPN Group Around € 5 bn of EBITDA, incl. ~€ 100 mn book gains on real estate Mobile High single digit growth International • Guiding for Group level EBITDA of ∼€ 5 bn for 2008 The Netherlands Comfortably
Slide 15: Financial review the Netherlands by segment
Financial review the Netherlands by segment Solid revenue and EBITDA trends in Consumer and Business • Wireline revenues supported by lower line loss and stable pricing 17.5% 19.0% 17.0% 19.8% 20.1% 19.0% 14.9% • Flat wireless revenues: MTA and Consumer 1,037 1,032 1,053 1,011 1,007 1,021 980 roamin
Slide 16: Financial review the Netherlands by segment (cont'd)
Financial review the Netherlands by segment (cont’d) Lower margins at Getronics due to integration costs, W&O resilient • Solid underlying trend in revenues 6.7% from core activities 4.7% 4.7% Getronics1 3.9% • Lower overall revenues as a result of 488 515 504 465 recent divestments • Lower margin d
Slide 17: Financial review Mobile International: E-Plus
Financial review Mobile International by segment E-Plus growth partly driven by acquisitions, BASE continuing growth path • 6.4% service revenue growth in Q3 39.8% 37.6% 37.6% 38.1% 40.0% 36.2% 36.6% • 9.2% revenue growth in Q3, of which 840 € 37 mn increase in revenues from 808 E-Plus 698 736 769 7
Slide 18: Financial review Mobile International (cont'd)
Financial review Mobile International by segment (cont’d) Further growth from mobile wholesale and recent acquisitions • Continued revenue increase from Mobile Wholesale NL growth in subscribers and traffic 41.2% 42.4% 40.2% 40.4% 36.4% 38.6% 33.7% • Negative impact from MTA reductions 83 85 88 88 8
Slide 19: Regulation the Netherlands
Regulation the Netherlands As of 2009, deregulation of retail voice and regulation for several other areas • KPN welcomes deregulation for fixed telephony – Opportunity to use broader range of pricing instruments to meet customer demands Fixed • Wholesale regulation (mainly) on tariffs for a 3-year
Slide 20: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 20
Slide 21: Consumer wireline voice
Consumer wireline voice Net line loss further down to 30k X 1,000 Net line loss1 • Net line loss of 30k in Q3 ’08 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 – ~45k loss in KPN retail subscribers and -30 ~15k change in Consumer WLR -40 -70 -100 -90 -110 • Decline in traditional telephony in Q2
Slide 22: Consumer broadband and TV
Consumer broadband and TV Steady growth in broadband, continued strong growth in TV mn Broadband subscribers1 • Sustaining market share at around 44% 45% 44% 44% 44% 44% 44% 41% – Market growth slowing down 5.2 5.3 5.4 5.5 5.6 5.7 5.8 – Churn decreasing 0.77 0.83 0.85 0.87 0.75 0.71 0.90 2.03 2.09 2
Slide 23: Consumer wireless
Consumer wireless Solid revenues and Post Paid net adds in Q3, further growth in wireless data mn Subscribers1 43% 44% 45% • Post Paid share further increased 41% 41% 41% 40% – Solid Post Paid net adds of 70k, through 5.9 5.9 6.1 6.2 6.0 6.1 6.1 targeted acquisition – Post Paid share of 45% in Q3 ’0
Slide 24: Business – wireline services
Business – wireline services Managed migration to IP-based services 1.8 1.8 1.7 1.7 1.6 • Gradual decline in PSTN/ISDN Voice & 112 • Replaced by IP-based voice and 78 101 Internet 45 62 internet services, e.g. VoIP, Business connections DSL, hosted IP-PBX Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 PSTN / IS
Slide 25: Business – wireless services
Business – wireless services Customer growth driven by wireless data € mn Service revenues Voice subscribers x 1,000 Data subscribers >4% growth y-on-y 235 235 231 233 ~35% growth y-on-y 229 226 228 ~580 ~530 ~430 ~460 ~490 ~350 ~390 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 '07
Slide 26: Business – ICT Services
Business – ICT Services Pressure on IP-PABX business, substantial growth in new services € mn Revenues ICT Services • Revenues ICT Services down 2.3% y-on-y in Q3 • Continued pressure on IP-PABX business − Stable market share in competitive market − Slower than expected order intake in Q1 ’08 not 15
Slide 27: Business – Corporate Solutions
Business – Corporate Solutions Growth in integrated ICT services and outsourcing for large enterprises € mn Revenues Corporate Solutions • Revenues up 10% y-on-y – Major contracts starting to generate revenues – Cross- and upselling to existing customers 142 135 137 124 124 128 109 • Focused and int
Slide 28: Positioning KPN-Getronics
Positioning KPN-Getronics KPN and Getronics focusing on different segments following integration Focus Services Market leader in managed • Corporate clients (Top-500) workspace services • Workspace management services • Client-specific services • Integration / delivery based on standard • Datacenter
Slide 29: Getronics
Getronics Solid operational performance, restructuring and integration on track Operational performance Q3 ’08 Integration and restructuring • Solid operational performance from • € 15 mn integration and restructuring core Benelux operations costs in Q3 ’08 – Q3 impacted by normal seasonality – Rest
Slide 30: Getronics divestments
Getronics divestments Good progress in asset disposal programme € mn Revenues Getronics 2008 • Business Application Services (BAS) agreed to sell to Capgemini in July – Equity value of ~€ 255 mn ~100 ~300-350 • Divestments to date representing ~300 € 700-750 mn in annual revenues – Total transaction
Slide 31: All-IP achievements to date
All-IP achievements to date Substantial progress in establishing fiber rollout capability • Platforms for IP services operational and ready for scaling up Platforms – > 1 mn customers on VoIP (15% of Dutch households) Service platforms – >30k customers on IPTV, without advertising and promotion • Et
Slide 32: Key learnings All-IP
Key learnings All-IP Optimizing value creation through managed migration to IP • Several alternative DSL operators acquired by KPN, e.g. Tiscali Change in • KPN creating credible presence in TV market with ~10% market share competitive • Cable sector consolidating, creating two large players landsca
Slide 33: Fiber rollout
Fiber rollout Ramp-up as from 2009 following demonstrated commercial success Demonstrate commercial success Ramp-up and full-scale rollout Until H1 ’09 H2 ’09 and beyond • Demonstrate commercial success in 5 • Decision on rate of ramp-up based on Objective cities for FttC and FttH each evaluation in
Slide 34: Real estate proceeds of ~€150 mn expected in 2008
Real estate proceeds of ∼ € 150 mn expected in 2008 Focus on optimization of value rather than timing of proceeds Status disposals Real estate optimization • Expecting proceeds of ~€ 150 mn in • Real estate disposals largely 2008 from real estate disposals independent from network rollout – After di
Slide 35: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 35
Slide 36: Market trends Germany
Market trends Germany Challenger strategy continues to unlock value from German market German market E-Plus • Market growth flat over past two quarters • Consistent outperformance – Impact from regulatory tariff cuts of the market in service General – Rotational churn to lower prices revenue growth
Slide 37: Operating review E-Plus
Operating review E-Plus Continued strong performance with 6.4% service revenue growth Record net adds • Customer base exceeds 17 mn in Q3 ’08 16.2 17.0 14.8 15.4 – Strong net adds of 864k in Q3 ’08 13.6 14.1 13.1 – Growth mainly in wholesale Pre Paid 105 92 127 – Solid Post Paid net adds of 105k 88
Slide 38: Operating review BASE
Operating review BASE Solid service revenue growth of 5.4% in Q3 ’08 Net adds • Solid net adds of 147k in Q3 ’08 3.0 3.1 3.2 2.6 2.7 2.9 – Result of targeted offers, e.g. in youth 2.5 segment and Post Paid 4 6 18 15 23 6 15 • Second consecutive quarter with positive 94 100 137 115 131 87 132 service
Slide 39: Operating review Mobile Wholesale NL
Operating review Mobile Wholesale NL Further strengthening market leading position Net adds 1.9 • Continued underlying growth in maturing 1.8 1.8 1.9 1.6 1.6 1.7 MVNO market – Net adds of 62k in Q3 ’08, mainly in 21 15 Post Paid 36 49 70 33 75 48 – Strengthening market leading position in 25 36 41 2
Slide 40: International wholesale
International wholesale Further growth from international wholesale activities • Still in start-up phase MVNO Spain • Ongoing growth in customer base through own brands and partners • New wholesale partners added in Q3 – Introduction of ‘blau’, leveraging successful ‘no-frills’ brand • Intention to
Slide 41: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Ad Scheepbouwer, Chairman and CEO Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 41
Slide 42: Concluding remarks
Concluding remarks • Solid third quarter results • The Netherlands comfortably delivering on upgraded EBITDA guidance for 2008 • Mobile International showing continued profitable growth • Confirming 2010 objectives as stated in ‘Back to Growth’ strategy • Solid liquidity profile after Q3 bond issue,
Slide 43: Q&A
Q&A
Slide 44: Annex
Annex 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 45: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q3 ’08 Q3 ’07 YTD ’08 YTD ’07 Revenue effect MTA tariff reduction Group -45 -47 -124 -113 EBITDA effect MTA tariff reduction Group -22 -27 -65 -60 Book gain on sale of subsidiaries Other/W&O 2 8 4 Book gain on sale of real
Slide 46: MTA regulation
MTA regulation 15 Aug ’07 € cents per minute 1 July ’08 1 April ’09 1 July ’09 KPN 10.0 9.0 8.0 7.0 The Netherlands Vodafone 10.0 9.0 9.0 7.0 T-Mobile 11.4 10.4 10.4 8.1 Avg. asymmetry 1.4 1.4 2.4 1.1 • MTA tariffs valid from 1 December 2007 until 31 March 2009 Germany – T-Mobile / Vodafone lowered
Slide 47: Impact MTA reduction
Impact MTA reduction1 € mn Q3 ’08 YTD ’08 2 2 Revenues EBITDA Revenues EBITDA E-Plus -12 -7 -35 -20 BASE -6 -4 -20 -14 Mobile Wholesale NL -3 -2 -8 -6 Mobile International -21 -13 -63 -40 Consumer -15 -7 -41 -21 Business -8 -2 -20 -4 Wholesale & Operations -7 - -16 - The Netherlands -30 -9 -77 -25 I
Slide 48: Restructuring charges
Restructuring charges € mn Q3 ’08 YTD ’08 E-Plus BASE Mobile Wholesale NL -3 -3 Mobile International -3 -3 Consumer -6 -9 Business -1 -1 Getronics -3 -5 Wholesale & Operations -2 -12 The Netherlands -12 -27 Other -6 -221 KPN Group -21 -251 48
Slide 49: Revenues in the Netherlands
Revenues in the Netherlands Per guidance definition1 Revenues and other income Y-on-Y growth YTD ’08 Q3 ’08 Q2 ’08 Q1 ’08 YTD ’08 Q3 ’08 Q2 ’08 Q1 ’08 Reported 7,828 2,597 2,637 2,594 25% 23% 25% 26% Getronics 1,484 465 504 515 iBasis / KGCS 680 227 234 219 Other gains and losses, eliminations -178
Slide 50: EBITDA in the Netherlands
EBITDA in the Netherlands Per guidance definition1 EBITDA Y-on-Y growth YTD ’08 Q3 ’08 Q2 ’08 Q1 ’08 YTD ’08 Q3 ’08 Q2 ’08 Q1 ’08 Reported 2,667 890 900 877 2.4% 6.0% -0.7% 2.1% Getronics 76 18 34 24 iBasis / KGCS 20 7 7 6 Restructuring costs -13 n.a. -11 -2 Other gains and losses, eliminations 31 7
Slide 51: Operating expenses
Operating expenses € mn Q3 ’08 Q3 ’07 % Salaries and social security contributions 585 332 76.2% Cost of materials 259 227 14.1% Work contracted out and other expenses 1,332 1,126 18.3% Own work capitalized -30 -30 0.0% Other operating expenses 227 162 40.1% Depreciation1 401 380 5.5% Amortization1
Slide 52: Analysis operating expenses: Salaries & Cost of materials
Analysis operating expenses1 Salaries & Cost of materials € mn Salaries Y-on-Y increase 18.0% 16.4% 16.1% • Impact of acquisitions, partly offset by headcount 12.5% 12.0% reductions 11.0% 11.8% 11.6% 5.9% 222 260 219 Q-on-Q increase • Release of € 199 mn pension provision in Q2 252 • Partly offset b
Slide 53: Analysis operating expenses: Work contracted out & Other
Analysis operating expenses1 Work contracted out & Other € mn Work contracted out Y-on-Y increase 39.6% 38.4% 38.5% 38.0% • Higher wireless traffic volumes 37.4% 37.1% 35.7% 36.5% 36.7% • Partly offset by lower wireline volumes 103 126 115 115 Q-on-Q increase 1,126 1,224 1,145 1,209 1,217 • Higher w
Slide 54: Analysis operating expenses: Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y decrease • Lower asset base due to less CAPEX spending 12.6% 11.3% 11.6% 11.1% 11.1% in prior years • Accelerated depreciation of € 17 mn on the copper network in Q3 ’08 • Consolidation Getronics and iBasis 380 405 409
Slide 55: Personnel
Personnel Divestments at Getronics and continued underlying decline in the Netherlands • Personnel increase Y-on-Y of 14,029 FTE – 13,596 FTE increase from Getronics – 1,407 FTE reduction in the 43,531 43,409 42,976 Netherlands (excl. Getronics) 38,919 – Reduction of 1,458 FTE in the 8,838 8,377 8,2
Slide 56: Tax
Tax P&L Cash flow Fiscal units (€ mn) Q3 ’08 Q3 ’07 Q3 ’08 Q3 ’07 Dutch activities -88 -167 -137 -38 Getronics 6 - - - German Mobile activities -81 -6 -1 - Belgian Mobile activities -9 -9 - - Other activities - - - - Total -172 -182 -138 -38 • € 138 mn net corporate tax paid – Tax recapture on E-Plu
Slide 57: Net cash flow from operating activities
Net cash flow from operating activities € mn Q3 ’08 Q3 ’07 YTD ’08 YTD ’07 Operating Result 701 680 2,005 1,866 Depreciation, amortization and impairments 578 540 1,772 1,818 Interest paid -106 -95 -380 -348 Income tax paid -138 -38 -329 -80 Other income -24 -31 -47 -91 Share based compensation 14 2
Slide 58: Total cash flow
Total cash flow € mn Q3 ’08 Q3 ’07 YTD ’08 YTD ’07 Net cash flow from operating activities 876 962 2,701 2,678 1 Capex -505 -378 -1,312 -981 Acquisitions -9 -300 -171 -533 Disposals real estate 26 42 40 124 Disposals other 117 16 115 31 Other -5 1 -18 -7 Net cash flow from investing activities -376
Slide 59: Capex
Capex1 € mn Q3 ’08 Q3 ’07 % YTD ’08 YTD ’07 % Mobile International 188 132 42.4% 412 370 11.4% % Revenues Mobile International 16.6% 13.0% 12.6% 12.6% E-Plus 145 95 52.6% 332 286 16.1% % Revenues E-Plus 17.3% 12.4% 13.8% 13.0% BASE 33 36 -8.3% 58 81 -28.4% % Revenues BASE 20.5% 23.8% 12.0% 17.7% Mob
Slide 60: Balance sheet
Balance sheet Assets Equity and liabilities € bn € bn 20.7 24.8 24.5 24.2 24.4 20.7 24.8 24.5 24.2 24.4 4.5 4.6 4.0 3.5 5.8 5.8 5.7 5.7 1.4 3.3 1.6 1.5 1.4 4.7 4.2 4.2 4.1 4.0 1.4 Goodwill Group equity 4 3.9 13.0 Licenses 1 Provisions 12.1 12.0 12.8 2 11.5 10.7 10.4 10.7 10.6 Other non- Non-current
Slide 61: Share repurchase progress
Share repurchase progress Date1 Value (€ mn) mn shares Avg. share price (€) Q1 ’08 212.5 18.1 11.75 Q2 ’08 423.7 37.5 11.28 July 166.6 15.4 10.82 August 105.2 9.4 11.19 September 92.3 8.1 11.37 Q3 ’08 364.1 32.9 11.06 Total 1,000 88.5 11.30 • € 1 bn share repurchase program commenced on 22 February
Slide 62: Debt summary
Debt summary € bn Q3 ’08 Q2 ’08 Q3 ’07 Bonds 11.99 10.89 9.21 Eurobonds 9.99 9.13 7.29 Global bonds 2.00 1.76 1.92 Other debt 0.79 0.71 1.14 Other loans at Royal KPN1 0.12 0.06 1.06 Consolidated debt 0.67 0.65 0.08 Fair value financial instruments 0.26 0.50 0.31 Total debt 13.04 12.10 10.66 – of whi
Slide 63: Debt portfolio
Debt portfolio Breakdown of € 13.04 bn gross debt1 6% Financial 17% 77% Other instrum ents 6% 2% Global bonds 15% EUR USD2 GBP2 18% 82% Eurobonds 77% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fi
Slide 64: Consumer voice market
Consumer voice market1 mn Q3 ’08 Q2 ’08 Q3 ’07 KPN PSTN / ISDN 2.46 2.57 3.04 Wholesale Line Rental (WLR) 0.38 0.36 0.28 Total traditional voice 2.84 2.93 3.31 KPN VoIP 1.03 0.98 0.79 Cable VoIP 1.21 1.17 0.98 Alternative DSL VoIP 0.34 0.32 0.26 Total VoIP 2.58 2.47 2.03 Cable voice analogue 0.06 0.
Slide 65: Unbundling tariffs
Unbundling tariffs SLU and colocation set by OPTA, backhaul and WBA based on deal pricing Unbundling in current network Category Monthly tariffs Line sharing (LLU) € 0.19 / line LLU MDF colocation MDF backhaul (regulated) (regulated) (fiber, not regulated) Fully unbundled (LLU) € 7.83 / line MDF Nod
Slide 66: Service revenue growth Mobile International
Service revenue growth Mobile International Strong underlying growth outperforming the market Service revenue growth E-Plus Service revenue growth BASE 9.5% 8.6% 7.3% 5.4% 5.4% 3.2% 9.9% 8.7% 9.1% 8.5% 1.3% 8.1% 8.0% 6.8% 6.4% 4.2% -2.7% 2.9% -5.7% -7.5% Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q3 '07 Q4
Slide 67: Dutch wireless services disclosure
Dutch wireless services disclosure Q3 ’08 Q2 ’08 Q3 ’07 Service revenues (€ mn) 764 756 764 − Consumer 441 429 445 − Business 228 233 231 − Other Dutch activities1 95 94 88 SAC / SRC (€) − Consumer 159 150 144 − Business 411 354 359 1 Indicates amongst others Mobile Wholesale NL, Simyo and visitor r
Slide 68: KPIs Consumer Voice
KPIs Consumer Voice Voice Q3 ’08 Q2 ’08 Q3 ’07 Market penetration1 – Broadband 79% 78% 75% – VoIP penetration 45% 44% 38% Market share – Voice2 >55% >55% ~60% – Traditional voice3 >75% ~75% >70% – VoIP 40% 40% 39% – Broadband4 44% 44% 44% – TV 10% 9% 6% Access lines (x 1,000) 3,491 3,554 3,823 – PST
Slide 69: KPIs Consumer Broadband, TV & Wireless
KPIs Consumer Broadband, TV & Wireless Broadband Q3 ’08 Q2 ’08 Q3 ’07 Broadband ISP customers (x 1,000) 2,500 2,471 2,382 – KPN (Direct & Planet) 1,111 1,108 1,107 – Het Net 680 672 629 – XS4ALL 288 286 294 – Other 421 405 352 Broadband ARPU (€) 30 29 29 TV Q3 ’08 Q2 ’08 Q3 ’07 – Subscribers (x 1,00
Slide 70: KPIs Business Infrastructure Services
KPIs Business Infrastructure Services Wireline Q3 ’08 Q2 ’08 Q3 ’07 Market share voice1 >50% >50% ~55% Access lines (x 1,000) 1,605 1,632 1,710 – PSTN 761 774 825 – ISDN 821 837 874 – VoIP 23 21 11 Traditional voice ARPU (€) 49 52 50 − Access 26 26 25 − Traffic 23 26 25 Network services (x 1,000) –
Slide 71: KPIs Business ICT Services & Corporate Solutions
KPIs Business ICT Services & Corporate Solutions ICT Services Q3 ’08 Q3 ’08 Q3 ’07 Applications online (x 1,000) − Customers 89 79 13 Housing & Hosting (x 1,000) − Housing services (# m2) 16.0 9.8 8.6 − Hosting services (# servers) 2.16 2.04 1.38 Corporate Solutions Q3 ’08 Q2 ’08 Q3 ’07 Managed work
Slide 72: KPIs Getronics
KPIs Getronics1 Getronics Q3 ’08 Q2 ’08 Q1 ’08 Revenue and other income (€ mn) 465 504 515 Service revenues (€ mn) 416 462 472 Margin – Gross profit2 21% 18% 19% – Service profit3 22% 19% 20% Number of FTEs 13,596 17,247 17,484 1 Consolidated as of 23 October 2007 2 Defined as total gross profit div
Slide 73: KPIs Wholesale & Operations
KPIs Wholesale & Operations Wholesale & Operations Q3 ’08 Q2 ’08 Q3 ’07 Retail voice (without ADSL) 4,043 4,182 4,736 Local loop (x 1,000) MDF access lines1 3,632 3,580 3,389 – of which line sharing2 1,670 1,726 1,932 Unbundling3 (mn) 1.0 1.0 0.9 – Shared unbundled lines 0.3 0.3 0.3 – Fully unbundle
Slide 74: KPIs E-Plus
KPIs E-Plus Q3 ’08 Q2 ’08 Q3 ’07 Market share1 Service revenue 15.3% 15.0% 14.0% Base 16.0% 15.5% 15.1% Customers (x 1,000) 17,027 16,163 14,112 – Of which new brands 10,451 9,387 6,706 – Post Paid 6,542 6,437 6,170 – Pre Paid 10,485 9,726 7,942 Service revenues (€ mn) 782 757 735 ARPU (€) 16 16 18
Slide 75: KPIs BASE
KPIs BASE Q3 ’08 Q2 ’08 Q3 ’07 Market share1 Revenue >16% >16% ~16% Base >24% ~24% ~23% Customers (x 1,000) 3,241 3,094 2,722 – Post Paid 548 533 494 – Pre Paid 2,693 2,561 2,228 Service revenues (€ mn) 155 162 147 ARPU (€) 16 18 18 – Post Paid 51 53 52 – Pre Paid 9 11 11 Non-voice as % of ARPU 15%
Slide 76: KPIs Mobile Wholesale NL
KPIs Mobile Wholesale NL Q3 ’08 Q2 ’08 Q3 ’07 Customers (x 1,000) 1,937 1,875 1,695 – Post Paid 608 560 449 – Pre Paid 1,329 1,315 1,246 Service revenues (€ mn) 87 85 88 76