Royal KPN NV · EURONEXT:KPN
Royal KPN NV — H1 2006 Earnings Presentation
73 slides from Royal KPN NV's earnings presentation, Aug 1, 2006
Slide 1: Half Year Results 2006
Half Year Results 2006 1 August 2006
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 our operations, our and our joint ventures' share of new
Slide 3: Disclaimer
Disclaimer We define EBITDA as operating profit before depreciation and impairments of PP&E and amortization and impairments of intangible assets. The measure is used by financial institutions and credit-rating agencies as one of the key indicators of borrowing potential. Many analysts use EBITDA as
Slide 4: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Mobile Stan Miller, MD Mobile division Operating review Fixed Eelco Blok, MD Fixed division Concluding remarks Ad Scheepbouwer, Chairman and CEO 4
Slide 5: Highlights
Highlights • Strong performance in tough markets demonstrates success of strategy • Multibrand strategy delivering results • E-Plus delivering on service revenue and margin objectives – Successful turnaround sets E-Plus on profitable growth path • Challenges in Fixed considerable, but establishing a
Slide 6: Financial highlights Q2
Financial highlights Q2 Strong financial performance demonstrates success of strategy • Revenues and other income up 1.0% (YTD 2.4%, or 1.3% per guidance definition1) • EBITDA up 10.1% (YTD 10.1%, or 6.6% per guidance definition1) • Mobile EBITDA margin 38.9%, highest ever • Strong free cash flow of
Slide 7: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Mobile Stan Miller, MD Mobile division Operating review Fixed Eelco Blok, MD Fixed division Concluding remarks Ad Scheepbouwer, Chairman and CEO 7
Slide 8: Group results Q2
Group results Q2 € mn Q2 ’06 Q2 ’05 % • Revenues up 0.9% Revenues and other income 2,979 2,950 1.0% – Telfort consolidation – of which Revenues 2,968 2,942 0.9% – Partly offset by MTA, line loss and lower handset sales Operating expenses 2,309 2,394 -3.6% 1 – of which Depreciation 469 470 -0.2% – of
Slide 9: Group results YTD
Group results YTD € mn YTD ’06 YTD ’05 % • Revenues up 1.4% Revenues and other income 5,981 5,840 2.4% – Telfort consolidation – of which Revenues 5,891 5,811 1.4% – Growth in all three Mobile operators Operating expenses 4,699 4,768 -1.4% 1 – Contraction Fixed revenues – of which Depreciation 920 9
Slide 10: Group cash flow Q2
Group cash flow Q2 € mn Q2 ’06 Q2 ’05 % • Free cash flow4 of € 654 mn Operating result 670 556 20.5% Depreciation and amortization1 611 608 0.5% • Capex up 17.0% Interest paid/received -134 -122 9.8% – E-Plus investment in indoor Tax paid/received -5 -17 -70.6% coverage following allocation Other in
Slide 11: Group financial profile
Group financial profile € bn Debt Financing policy 10.9 2.5× 10.8 10.8 10.4 10.0 2.0× 1.7 1.7 1.9 1.7 1.8 8.9 8.8 8.2 7.9 8.2 Q2 ’05 Q3 ’05 Q4 ’05 Q1 ’06 Q2 ’06 Q2 ’05 Q3 ’05 Q4 ’05 Q1 ’06 Q2 ’06 Gross Debt Net Debt Net Debt / EBITDA1 Financial framework range € bn Redemption profile • Gross debt do
Slide 12: Balance sheet
Balance sheet Assets Equity and liabilities € bn € bn 23.5 23.4 22.7 23.8 22.6 23.5 23.4 22.7 23.8 22.6 4.1 4.0 4.6 5.2 5.0 5.5 4.6 4.6 5.1 4.8 Goodwill Group equity 3 4.3 4.2 4.4 1.9 1.9 1.7 1.7 1.7 4.5 4.4 1 Licenses Provisions 2 Other non- Non-current 10.8 10.5 10.5 11.6 10.0 9.9 9.8 11.6 current
Slide 13: Headcount reduction
Headcount reduction Ahead of schedule Personnel in the Netherlands Restructuring initiatives on track 21,265 • Headcount reduction in the Netherlands -2,0 since YE ’04 is more than 2,000 FTE 39 • Excluding acquisition effects, reduction 19,226 amounts to more than 3,000 FTE -3, 04 1,008 (-14%) of wh
Slide 14: Financial highlights Fixed
Financial highlights Fixed Impact of competition visible € mn Q2 ’06 Q2 ’05 YTD ’06 YTD ’05 Revenues and other income 1,653 1,732 3,337 3,455 % change -4.6% -3.4% Operating expenses 1,280 1,367 2,568 2,678 – of which D&A 290 352 576 659 Operating result 373 365 769 777 EBITDA 663 717 1,345 1,436 % c
Slide 15: Acquisitions in 2006
Acquisitions in 2006 Strengthening our market position and building capabilities In country consolidation Activity Internet service provider on KPN infrastructure Internet service provider on alternative infrastructure Hotspot operator at Amsterdam Airport Closed network connecting health care provi
Slide 16: Financial highlights Mobile
Financial highlights Mobile Revenues and margin up in all three countries € mn Q2 ’06 Q2 ’05 YTD ’06 YTD ’05 Revenues and other income 1,601 1,422 3,100 2,729 % change 12.6% 13.6% – of which Service revenues1 1,530 1,317 2,938 2,515 % change 16.2% 16.8% Operating expenses 1,298 1,241 2,638 2,440 – o
Slide 17: Regulatory offensive
Regulatory offensive Achieving level playing field with cable operators • Proceedings against Dutch State regarding discriminatory Premise regulation • Complaint lodged against cable operators with NMa and OPTA • Demanding that the government immediately stops the unequal regulation of the cable sec
Slide 18: MTA in the Netherlands
MTA in the Netherlands Several issues under debate, no certainty on timing of new tariffs in 2006 OPTA’s draft directive as of 21 June € cents per minute Current 1 Jul ’06 1 Jul ’07 1 Jul ’08 KPN, Vodafone 11.00 9.17 7.33 5.50 Orange, T-Mobile 12.40 10.63 8.86 7.09 Asymmetry 1.40 1.46 1.53 1.59 • Fu
Slide 19: MTA in Belgium and Germany
MTA in Belgium and Germany Arguing for asymmetry Belgium • New official MTA tariffs communicated by BIPT on 7 July € cents per minute Current 1 Nov ’06 1 May ’07 1 Jan ’08 1 Jul ’08 Proximus 12.66 10.13 8.09 7.48 6.56 Mobistar 15.98 12.75 10.16 9.38 8.21 BASE 19.60 15.81 12.76 11.82 10.41 • Subject
Slide 20: Performance versus Guidance
Performance versus Guidance Item Outlook FY 2006 as given 7 February Q1 ’06 YTD ’06 Revenues and other income1 Low single digit increase 1.6% 1.3 % EBITDA1,2 Flat 3.7% 6.6 % Capex € 1.6 - € 1.8 bn € 0.3 bn € 0.7 bn Free cash flow3 > € 2 bn € 0.8 bn € 1.4 bn YTD ’06 reconciliation1 Revenues and other
Slide 21: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Mobile Stan Miller, MD Mobile division Operating review Fixed Eelco Blok, MD Fixed division Concluding remarks Ad Scheepbouwer, Chairman and CEO 21
Slide 22: E-Plus
E-Plus On 9 August 2005 we said we would change our strategy in Germany Current situation Germany Mobile One market Network Back Customer ownership office, Push From service & Marketing Sales and billing support operation and IT Envisaged situation Market segments Network Back Sales Pull Customer ow
Slide 23: E-Plus
E-Plus .... we said we would do things differently Customer • Handpick segments with tailored offerings targeting Proposition • Turn core services into great value Channels • Redesign pull & its economics Deployment • Focus regionally, maximizes impact of pull-actions Regulatory • Launch offensive t
Slide 24: E-Plus milestones to date
E-Plus milestones to date A redesigned E-Plus is now doing many things differently Customer • New brands: BASE, Simyo, Ay Yildiz and MVNOs with fast targeting awareness build-up – ~ 2.85 mn subscribers since launch, of which 1.8 mn in H1 ’06 • Propositions related to new brands offering MoU and ARPU
Slide 25: E-Plus: impact of new strategy
E-Plus: impact of new strategy Nearly 3 mn subscribers in new segments since launch New initiatives subscribers 2,850 2,602 2,323 2,046 1,693 1,289 1,079 655 535 415 283 186 98 Jun '05 Jul '05 Aug '05 Sep '05 Oct '05 Nov '05 Dec '05 Jan '06 Feb '06 Mar '06 Apr '06 May '06 Jun '06 New initiatives as
Slide 26: Operating review E-Plus
Operating review E-Plus E-Plus continues to achieve above market growth Continued strong customer growth (21%) Service revenue share up 0.7%-point in Q2 Customers (mn) 11.9 (Post Paid %) 11.4 10.7 (49%) 9.8 10.1 (50%) 12.8% (52%) (51%) (52%) 176 12.4% 12.4% 316 12.1% 12.1% 12.5% 77 Net adds 518 11.8
Slide 27: E-Plus: further analysis
E-Plus: further analysis Gaining revenue market share combined with a step change in profitability Outperforming on service revenue growth • Decelerating growth in Germany 10.9% 9.8% – MTA reductions more than 15% 8.1% – Increased price deflation following 7.6% competitors response to E-Plus 4.3% •
Slide 28: E-Plus going forward
E-Plus going forward Much remains to be done however in the near term • Competitors are not standing still and there have been a flurry of new offers in the German market Relaunch • Following the success of the BASE brand in Germany need to re-launch E-Plus brand E-Plus with further differentiated o
Slide 29: Operating review KPN Mobile the Netherlands
Operating review KPN Mobile the Netherlands1 Strong focus on Post Paid drives above market service revenue growth Strong focus on Post Paid Outperformance on service revenue growth Customers (mn) 8.1 8.3 8.1 (Post Paid %) 46.3% 46.3% 46.7% (40%) (41%) (43%) 6.3 46.3% 46.4% 5.7 46.1% (38%) (44%) Net
Slide 30: KPN Mobile the Netherlands
KPN Mobile the Netherlands Further strengthening of market position • KPN growing faster than the market – > 5% service revenue growth in first half 2006 vs. < 3% market Focus on • Shifting focus to securing high value customers growth and – Proactively migrating high value Pre Paid to Post Paid val
Slide 31: Operating review BASE
Operating review BASE Strong profitability but competitors fighting back Net adds mix improving Continued increase in revenue market share Customers (mn) 2.0 2.0 2.1 1.9 1.8 >13% ~14% >14% ~13% >13% Net adds 6 5 81 57 31 76 28 33 15 11 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q2 ’05 Q3 ’05 Q4 ’05 Q1 ’06 Q
Slide 32: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Mobile Stan Miller, MD Mobile division Operating review Fixed Eelco Blok, MD Fixed division Concluding remarks Ad Scheepbouwer, Chairman and CEO 32
Slide 33: Highlights Fixed
Highlights Fixed • Increased net line loss driven by continued fierce competition puts pressure on consumer segment EBITDA • Broadband market share up further 7.3% points driven by both organic growth and acquisitions • Business segment results positively influenced by strong performance of new serv
Slide 34: Operating review by segment
Operating review by segment € mn Revenues and other income € mn EBITDA (margin)1 Consumer Consumer 602 583 589 572 573 16.3% 15.8% 13.8% 14.0% 12.0% 98 92 81 80 69 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Business Business 17.3% 16.2% 663 669 647 13.7% 14.1% 644 626 10.0
Slide 35: VoIP in perspective
VoIP in perspective Net line loss increased due to accelerating VoIP market growth X 1,000 Net line loss1 Observations Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 • Net line loss increased due to accelerating VoIP market growth • Competition increased following -67 -77 up-scaling by more competitors -117 -12
Slide 36: Consumer voice
Consumer voice Continued increase in market share in contracting traditional voice market Market share traditional voice minutes Developments 70% • Market share in traditional market continues to rise • CPS winback programs (CLM based) are successful, evidenced by declining market share CPS operator
Slide 37: Consumer broadband
Consumer broadband KPN is the leading broadband provider X 1,000 Broadband connections1 • Significant increase in retail market share (up 7.3% points to 39.6%) 4,000 • ‘InternetPlusBellen’ key driver behind 3,000 1,936 organic growth KPN ADSL 1,740 1,867 2,000 1,567 1,623 • Acquisition of Demon give
Slide 38: TV: Continued progress
TV Continued progress KPN TV (DVB-T) • Strong 23k increase in number of customers to 230k • Digitenne B.V. now 90% owned • ‘KPN TV’ will be branded to ‘Digitenne by KPN’ from October • Opportunity for Digitenne as analogue frequencies will be switched off (October 2006) • Nationwide coverage by 2007
Slide 39: Data in the business market
Data in the business market Strong performance continues X 1,000 Business DSL tripled Developments 39 32 • Above market growth in new services 24 13 16 such as IP-VPN, E-VPN and business DSL Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 • Churn to competition has further X 1,000 IP-VPN connections up 21% decre
Slide 40: Voice in the business market
Voice in the business market Defending market share with new pricing schemes Pricing schemes voice Market share traditional voice minutes Customer Corp. Voice specific International Existing proposition/remodeled New (price) proposition Corp. Voice 70% Graduated National discount Bus. WorldLine Voic
Slide 41: Creating a top five international wholesale voice carrier
Creating a top five international wholesale voice carrier • Access to state-of-the-art VoIP platform • Improved competitiveness due to increased scale • Complementary footprint KPN Global Carrier Services and iBasis Rationale • Combining strengths in VoIP and mobile, the fastest growing segments • A
Slide 42: All IP
All IP Good progress on all fronts • Development of wholesale and retail portfolio on track for pilot in Q4 Portfolio 2006 • Vendor selection in progress, so far amongst others Lucent, Atos Network Origin, Alcatel, Siemens and Huawei have been selected as partners • Roll out planning will be market
Slide 43: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Mobile Stan Miller, MD Mobile division Operating review Fixed Eelco Blok, MD Fixed division Concluding remarks Ad Scheepbouwer, Chairman and CEO 43
Slide 44: Revised outlook
Revised outlook Outlook FY 2006 As given 7 February August update Revenues and other income1 Low single digit increase Unchanged EBITDA1,2 Flat Low single digit increase Capex € 1.6 - € 1.8 bn € 1.7 - € 1.8 bn Free cash flow3 > € 2 bn > € 2.2 bn • Revenues and other income outlook confirmed at low-s
Slide 45: Concluding remarks
Concluding remarks • Strong financial performance in tough markets • E-Plus delivering on turnaround objectives • Fixed establishing a strong base for future growth • EBITDA and Free Cash Flow outlook for 2006 revised upward • Committed to deliver shareholder returns 45 p
Slide 46: Q&A
Q&A
Slide 47: 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
Slide 48: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q2 ’06 Q2 ’05 YTD ’06 YTD ’05 Revenue effect MTA tariff reduction Group -65 -67 -123 -129 EBITDA effect MTA tariff reduction Mobile -20 -31 -39 -60 Book gain on sale of subsidiaries Other 11 76 21 Book gain on sale of real
Slide 49: Impact MTA reduction
Impact MTA reduction1 € mn Q2 ’06 YTD ’06 2 2 Revenues EBITDA Revenues EBITDA KPN Mobile NL -23 -10 -47 -19 E-Plus -26 -10 -47 -20 Total Mobile -49 -20 -94 -39 Consumer -6 -12 Business -7 -13 Wholesale & Operations -31 -61 Total Fixed -44 -86 Intercompany 28 57 KPN Group -65 -20 -123 -39 MTA tariff
Slide 50: Restructuring charges
Restructuring charges € mn Q2 ’06 YTD ’06 E-Plus KPN Mobile NL BASE Total Mobile - - Consumer -1 Business 1 -1 Wholesale & Operations -3 -3 Total Fixed -2 -5 Other 2 -7 KPN Group 0 -12 50
Slide 51: Operating expenses
Operating expenses € mn Q2 ’06 Q2 ’05 % Salaries and social security contributions 355 382 -7.1% Cost of materials 188 273 -31.1% Work contracted out and other expenses 1,046 1,005 4.1% Own work capitalized -31 -24 29.2% Other operating expenses 140 150 -6.7% Depreciation1 469 470 -0.2% Amortization
Slide 52: Analysis operating expenses
Analysis operating expenses Salaries & Cost of materials € mn Salaries Y-on-Y & Q-on-Q decrease 13.0% 12.7% 12.9% 12.0% • Lower FTE due to ongoing headcount reduction, predominantly at Fixed 9.2% • Lower pension charges due to new collective labor agreement as of Q1 ’06 382 372 284 377 355 Q2 ’05 Q3
Slide 53: Analysis operating expenses
Analysis operating expenses Work contracted out & other € mn Work contracted out Y-on-Y increase 34.2% 34.9% 34.3% 35.8% 35.2% • Telfort consolidation as of Q4 ’05 • Higher traffic volumes at Mobile • Higher acquisition costs at Fixed Consumer • In part offset by lower distribution fees at E-Plus, t
Slide 54: Analysis operating expenses
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y trend • Fixed depreciation is trending down due to lower 16.0% 15.7% 15.7% 15.8% 15.4% Capex spending in prior years • Partly offset by Telfort consolidation as of Q4 ’05 Q-on-Q increase • € 8 mn higher depreciation du
Slide 55: Personnel
Personnel Continuing decline, predominantly in the Netherlands • Personnel reduction Y-on-Y -867 about 900 FTE, of which nearly 1,000 FTE in the 26,900 Netherlands 26,316 26,598 26,176 26,033 6,704 6,752 6,684 6,734 6,807 • Increase in personnel abroad predominantly relates to E-Plus following -970
Slide 56: Tax
Tax € mn Q2 ’06 Q2 ’05 Payments (–) Payments (–) Fiscal units P&L charge P&L charge Receipts (+) Receipts (+) Fixed division & Other activities -93 -5 -96 -17 German Mobile activities - - - - Dutch Mobile activities -44 - -45 - – Mobile NV -45 - -45 - – Telfort BV 1 - - - Belgian Mobile activities 2
Slide 57: Net cash flow from operating activities
Net cash flow from operating activities € mn Q2 ’06 Q2 ’05 YTD ’06 YTD ’05 Operating Result 670 556 1,282 1,072 Depreciation, amortization and impairments 611 608 1,205 1,186 Interest paid -134 -122 -143 -131 Income tax paid -5 -17 214 -21 Other income -11 -8 -90 -29 Change in provisions -61 -83 -10
Slide 58: Total cash flow
Total cash flow € mn Q2 ’06 Q2 ’05 YTD ’06 YTD ’05 Net cash flow from operating activities 1,070 899 2,365 1,721 1 Capex -379 -324 -692 -556 Acquisitions -198 - -308 -10 Disposals 15 10 84 193 Other 10 37 14 14 Net cash flow from investing activities -552 -277 -902 -359 Dividends paid -661 -609 -661
Slide 59: Evaluation SNT acquisition
Evaluation SNT acquisition Clear value creation • Improve customer satisfaction for KPN’s high value contact services Rationale • Yield an attractive financial improvement for KPN as a group • Split ‘SNT Netherlands’ in in-house call center for strategic KPN Sale of services and ‘New SNT Netherlands
Slide 60: Capex
Capex1 € mn Q2 ’06 Q2 ’05 % YTD ’06 YTD ’05 % Mobile 190 161 18% 355 277 28% % Revenues Mobile 12% 11% 11% 10% E-Plus 126 104 21% 216 167 29% % Revenues E-Plus 17% 15% 16% 12% KPN Mobile NL 41 36 14% 78 67 16% % Revenues KPN Mobile NL 6% 6% 5% 6% BASE 24 21 14% 62 43 44% % Revenues BASE 15% 15% 21%
Slide 61: All IP selected suppliers
All IP selected suppliers General Overall Systems Integration Lucent Network DWDM Huawei IP Core Network & IP Edge Juniper via Lucent IP Aggregation Cisco Next Generation Ethernet Alcatel Next Generation DSLAM Alcatel & Huawei Emulated Voice Lucent VoIP Consumer & IPTV (Mine) Siemens VoIP Business I
Slide 62: Share buyback progression
Share buyback progression • 55% of € 1 bn share repurchase program now executed – Commenced on 20 March following bond refinancing – Intermediary also executing closed period repurchases Date1 value (€ mn) mn shares avg. share price (€) Q1 37.1 4.0 9.27 April 112.6 12.1 9.27 May 176.0 19.3 9.11 June
Slide 63: Debt summary
Debt summary € bn Q2 ’06 Q1 ’06 Q2 ’05 Bonds 8.38 9.10 9.25 Subordinated convertible bonds - - 0.32 Eurobonds 6.28 6.85 5.67 Global bonds 2.10 2.25 3.26 Other debt 1.05 0.83 0.79 Other loans at Royal KPN 1.00 0.78 0.67 Consolidated debt 0.05 0.05 0.12 Fair value financial instruments 0.95 0.80 0.79
Slide 64: Debt portfolio
Debt portfolio 1 Gross debt at Q2 ’06: € 10.4 bn 6% Financial 66% instruments 28% 9% Other 10% Eurobonds 61% EUR USD 2 GBP2 36% Global bonds 20% 64% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fin
Slide 65: KPN Mobile the Netherlands
KPN Mobile the Netherlands Strengthening Hi brand in youth segment with the lowest MMS tariffs June ’04: Claiming SMS Now: Claiming MMS Messaging is key to Youth: Hi has claimed SMS, MSN and now also MMS 65
Slide 66: KPIs Fixed
KPIs Fixed Consumer Voice Q2 ’06 Q1 ’06 Q2 ’05 Market share traditional voice1 > 65% ~ 65% > 60% – Local ~ 70% > 65% ~ 65% – National > 60% > 60% > 55% – Fixed to Mobile > 65% > 65% > 60% – International > 40% > 40% ~ 40% Market share voice2 > 55% ~ 60% ~ 60% Lines (x 1,000) 4,552 4,805 5,221 – PSTN
Slide 67: KPIs Fixed
KPIs Fixed Consumer Internet & TV Q2 ’06 Q1 ’06 Q2 ’05 KPN ISP customers (x 1,000) 1.951 1,957 1,767 – Planet Internet 749 773 759 – Het Net 732 766 627 – XS4ALL 365 348 286 – Other1 105 70 95 Internet dial-up minutes (bn) 0.25 0.40 0.67 Broadband market share KPN (ISP) retail2 39.6% 37.9% 32.3% Bro
Slide 68: KPIs Fixed
KPIs Fixed Business Q2 ’06 Q1 ’06 Q2 ’05 Market share Business > 55% > 55% ~ 60% – Local ~ 60% ~ 60% > 60% – National > 55% > 55% > 55% – Fixed to Mobile > 55% > 55% > 55% – International ~ 45% ~ 45% > 45% Lines (x 1,000) 1,863 1,897 1,952 – PSTN 931 953 996 – ISDN 932 944 956 Minutes (bn) 2.08 2.32
Slide 69: KPIs Fixed
KPIs Fixed Wholesale & Operations Q2 ’06 Q1 ’06 Q2 ’05 Local loop (x 1,000) MDF access lines1 2,844 2,731 2,204 – of which line sharing1,2 2,325 2,407 2,118 ADSL coverage – ADSL 99% 99% 99% – ADSL 2+ 57% 57% - Minutes (bn) 10.11 10.57 10.39 – Terminating services 3.24 3.51 3.39 – Originating voice 2
Slide 70: KPIs Mobile
KPIs Mobile E-Plus Q2 ’06 Q1 ’06 Q2 ’05 Market share1 Service revenue 12.8% 12.1% 11.8% Revenue 12.5% 12.0% 12.4% Base 14.5% 14.1% 13.3% Customers (x 1,000) 11,852 11,442 9,797 – Post Paid 5,827 5,750 5,039 – Pre Paid 6,025 5,692 4,758 Service revenues (€ mn) 683 609 622 ARPU (€) 20 18 21 – Post Pai
Slide 71: KPIs Mobile
KPIs Mobile KPN Mobile NL Q2 ’06 Q1 ’06 Q2 ’05 Market share1 Service revenue 46.7% 46.3% 37.5% Revenue 46.4% 46.3% 37.1% Base 50.0% 49.9% 40.2% Customers (x 1,000) 8,264 8,123 6,313 – Post Paid 3,527 3,364 2,418 – Pre Paid 4,737 4,759 3,895 Service revenues (€ mn) 710 670 569 ARPU (€) 29 28 30 – Pos
Slide 72: KPIs Mobile
KPIs Mobile BASE Q2 ’06 Q1 ’06 Q2 ’05 Market share1 Revenue > 14% ~ 14% ~ 13% Base ~ 21% > 20% > 18% Customers (x 1,000) 2,104 2,040 1,848 – Post Paid 488 457 367 – Pre Paid 1,616 1,583 1,481 Service revenues (€ mn) 152 141 136 ARPU (€) 24 23 25 – Post Paid 58 58 63 – Pre Paid 15 14 15 Non-voice as
Slide 73: Other in Q2
Other in Q2 € mn Revenues and other income € mn EBITDA1 55 14 16 -4 Q2 ’06 Q2 ’05 Q2 ’06 Q2 ’05 • Deconsolidation effect Xantic – Revenues € 38 mn – EBITDA € 10 mn • € 3 mn book gain on Xantic following improved performance after closing • € 4 mn rebranding costs and € 2 mn restructuring costs 1 Def