Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — Koninklijke Kpn — Q1 2024 Earnings Presentation
24 slides from Royal Kpn Nv's earnings presentation, Apr 24, 2024
Slide 1: KPN Q1 2024 Results
SURUUEe ae 24 April 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: Highlights: KPN delivers solid start to the year
Highlights: KPN delivers solid start to the year >> Continued Group service revenue growth +3.6% y-on-y, driven by B2C and B2B PP Ongoing positive net adds in B2C postpaid +30k and broadband +13k Cincl. 8k M&A) bm Expanded fiber footprint with +130k HP in Q1 2024 (+159k incl. Glaspoort) bP Adj. EBIT
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 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 5: Connect, Activate & Grow
&kpn Connect, Activate & Grow
Slide 6: Fiber engine at full speed
Fiber engine at full speed Continuously expanding fiber footprint : ; am —~ 4260 wef ~~ 3920 3,79 — | 12023 © 22023. «32023 = 42023.» 2024 B2C broadband customer base mix Q12023 Q2 2023 Q3 2023 Fiver Q4 2023 Copper Q12024 6 Q1 2024 Results 48k M&A 27k in Q3 2: Leading fiber footprint r da i F 80% 59
Slide 7: B2C: Service revenues continued to improve, driven by Fixed and Mobile
B2C: Service revenues continued to improve, driven by Fixed and Mobile 7 Key take-aways * Fixed service revenue trend continued to improve, supported by accelerating fiber broadband service revenue growth * Continued strong growth in mobile service revenues, partly driven by the strong performance o
Slide 8: B2C: Base and ARPU growth drive solid performance
B2C: Base and ARPU growth drive solid performance Continued positive broadband net adds 4 v 4 Continued positive postpaid net adds +31 = +30 +22 +11 Q12023 Q2 2023 Q3 2023 Q4 2023 Q12024 8 Q12024 Results Growing fixed ARPU €54 +2.7% y-on-y Growing mobile ARPU €17 +5.2% y-on-y Improving fixed service
Slide 9: B2C: Youfone acquisition strengthens KPN's commercial proposition
B2C: Youfone acquisition strengthens KPN’s commercial proposition Youfone adds additional flanker brand ..Strengthening KPN’s positioning in Youfone contribution to KPN to KPN’s main brand... youngsters & price seekers segments oa i lanes ands ~90 M_ Fy Reventes' of which ~60m already reported at KP
Slide 10: B2B: Sustainable service revenue growth, driven by SME
B2B: Sustainable service revenue growth, driven by SME Key take-aways * Business service revenues grew by 3.2% year-on-year, or +4.4% corrected for divestments of CAM IT and KIS Continued strong growth in SME, driven by mobile, broadband and Cloud & Workspace base growth and positive ARPU developmen
Slide 11: B2B: Continued strong growth in SME
B2B: Continued strong growth in SME SME “1 7 99 +9.6% +120% +10.2% +9.9% 155 159 168 169 170 12023 Q2 2023 a3 2023 Q4 2023 12024 LCE +0.2% +0.4% +0.7% +0.4%! (€m) 23% 193 194 190 198 189 12023 Q2 2023 Q3 2023 Q4 2023 12024 Tailored Solutions 47.8% +62% 168% +3.0% +29% 72 74. 7h 80 75 12023 Q2 2023 Q
Slide 12: Wholesale: Growth trend levelled off due to lower regulated tariffs
Wholesale: Growth trend levelled off due to lower regulated tariffs 2 Key take-aways * Wholesale service revenue growth driven by Broadband and Mobile, partly offset by lower Other service revenues * Growing broadband service revenues due to higher base compared to last year * Ongoing mobile service
Slide 13: Financial Performance
&kpn Financial Performance
Slide 14: Summary: Q1 2024 results
Summary: Q1 2024 results Adjusted revenues €1,377m +3.3% Q12023 €1333m, Net profit €175m “11% Q12023 €196m Capex €302m +1.5% Q12023 € 298m, 14 ~~ Q12024 Results Adj. net indirect opex AL €+19m Liquidity position €2.3bn Cash & short-term investments: € 13bn Committed undrawn facilities: € 10bn Operat
Slide 15: Sustainable Group service revenue growth
Sustainable Group service revenue growth Continued Group service revenue growth 1277 1.296 1 a 1 2 iw —_ ra a : a 179 m2 7 12023 2.2023 Q3 2023 Q4 2023 a1 2024 Hii consumer Business | Wholesale Other 15 Q12024 Results Growth driven by Consumer and Business (€m) Q12023 1,227 Consumer || +29 Business
Slide 16: FCF generation impacted by intra-year phasing
FCF generation impacted by intra-year phasing Adj. EBITDA AL Q1 2024 Capex Operational FCF Cash restructuring Change in provisions Interest paid Taxes paid Change in WC Other movements FCF Q12024 16 Q12024 Results Contribution to 4 FCF y-on-y (€ m) +21 y-on-y mainly due to: —Phasing of Working Capit
Slide 17: Robust liquidity position, committed to investment-grade credit profile
Robust liquidity position, committed to investment-grade credit profile 129% 12x 23x 105x 10.6x 24x 24x 22% 23x 2.3x 6,710 515 6106, 0800 #20 6,384 , S559 , 5275 5,582 5,596 1,314 540 367 579 802 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 iicross debt — Interest cover ratio! Hnet debt — 2 Cash & short-
Slide 18: FY 2024 outlook raised for adjusted EBITDA AL and Free Cash Flow
FY 2024 outlook raised for adjusted EBITDA AL and Free Cash Flow Ambitions FY 2027! Service revenues Adj. EBITDA AL Capex Free Cash Flow 18 = Q12024 Results ~€12bn ~€ 880m New outlook FY 2024 ~3% ~€ 2500m ~€12bn >€ 890m ~3% CAGR ~3% CAGR <€ 1.0bn ~T% CAGR @kpn
Slide 19: Highlights: KPN delivers solid start to the year
Highlights: KPN delivers solid start to the year >> Continued Group service revenue growth +3.6% y-on-y, driven by B2C and B2B PP Ongoing positive net adds in B2C postpaid +30k and broadband +13k Cincl. 8k M&A) bm Expanded fiber footprint with +130k HP in Q1 2024 (+159k incl. Glaspoort) bP Adj. EBIT
Slide 20: Appendices
&kpn Appendices @ Tax @ Debt portfolio @ ESG Dashboard
Slide 21: I. Tax Q1 2024
I. Tax Q1 2024 a P&L Cash flow Regions (€ m) Q12023 Q12024 Q12023 Q12024 The Netherlands -57 46 -27 9 Other - 2 - e Total reported tax -57 -46 -277 9 Of which discontinued operations - = - = -57 -46 -27 9 Reported tax from continuing operations Effective tax rate continuing operations 22.3% 20.8% *
Slide 22: II. Debt portfolio
Il. Debt portfolio Nominal debt by type’ Nominal debt by currency! Fixed vs. floating interest! Debt redemption profile? O* 14% 14% "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 HB oans & other HB EUR hybrid Cist
Slide 23: III. ESG Dashboard
Ill. ESG Dashboard 23 Mry 22 “a Scope 1 es oO q (eee) Scope 2 Nn as Scope 3 ™ : . 87 iw) Circularity (R&R) 87 fp 29 ooo Women in sub top? 08 vt oo Women at KPN n Base year! Scope 1- Direct emissions * Gross emissions, relating to fuel consumption car fleet, heating of buildings, consumption of coola
Slide 24: KPN Investor Relations
kpn KPN Investor Relations @ ir-kpn.com 24 — 12024 Results &§ kpn