Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — Koninklijke Kpn — Q3 2024 Earnings Presentation
23 slides from Royal Kpn Nv's earnings presentation, Oct 28, 2024
Slide 1: Q3 2024 results
Q3 2024 results 28 October 2024 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 Q3: Organic growth across all segments, guidance confirmed
Highlights Q3: Organic growth across all segments, guidance confirmed 1 Group service revenue growth (+3.7% y-on-y, or +3.4% organic) Consumer service revenue growth (+6.1% y-on-y, or +2.7% organic) Ongoing commercial momentum in Consumer postpaid; positive net adds broadband Continued Business serv
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: Fiber engine running
Fiber engine running Continuously expanding fiber footprint Leading fiber footprint KPN homes passed (k)1 homes passed as a % of Dutch households +110 ~80% +134 4,634 62% +130 4,524 +118 4,390 35% 4,260 4,142 2020 Q3 2024 2026 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 KPN footprint Glaspoort footprint
Slide 7: B2C: Continued service revenue growth
B2C: Continued service revenue growth Key take-aways Adj. Service Revenue trend • Consumer service revenues grew 2.7% y-on-y organically, driven by Fixed +4.5% +4.3% +4.3% and Mobile • Fixed service revenues supported by fiber broadband service revenue +3.0% +2.7% growth. Broadband net adds +3k1 in
Slide 8: B2C: Solid mobile and fiber base inflow driving service revenue growth
B2C: Solid mobile and fiber base inflow driving service revenue growth Broadband 1 net adds Broadly stable fixed ARPU Fixed service revenue growth moderated (k, organic) (growth y-on-y, organic) +42 +46 +40 +38 +37 +22 +17 +17 +5 +17 +5 +13 +3 +10 +3 € 54 +0.5% y-on-y +1.8% +2.4% +3.1% +3.1% +1.0% F
Slide 9: B2B: Service revenue growth came in strong once again
B2B: Service revenue growth came in strong once again Key take-aways Adj. Service Revenue trend • Business service revenues grew 5.9% y-on-y organically, driven by all +5.9% segments • Continued strong growth in SME, driven by Mobile, Broadband and +4.4% +4.5% +4.4% +4.4% Cloud & Workspace • LCE ser
Slide 10: B2B: All segments contributing
B2B: All segments contributing SME +12.0% +10.2% +9.9% +9.1% +6.7% Total adj. Business service revenues LCE +5.9% +4.4% +4.4% +4.5% +4.4% +4.4% +0.7% +0.4% +0.4% -2.3% Tailored Solutions +7.6% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 +6.8% +4.6% Growth y-on-y, organic +3.0% +2.9% Q3 2023 Q4 2023 Q1 2
Slide 11: Wholesale: Service revenues returned to growth
Wholesale: Service revenues returned to growth Key take-aways Adj. Service Revenue trend • Service revenues increased 1.1% y-on-y organically, driven by both Broadband and Mobile +4.8% • Broadband service revenues grew 4.4% y-on-y, mainly driven by higher +2.7% +0.8% +1.1% service sales to Glaspoort
Slide 12: Financial Performance
Financial Performance Presentatie CMD 2024 titel Vertrouwelijk
Slide 13: Summary: Q3 & YTD 2024 results
Summary: Q3 & YTD 2024 results Adjusted revenues Adj. net indirect opex AL Adjusted EBITDA AL Q3 adjusted revenues +4.2% y-on-y Q3 2024 YTD 2024 Q3 2024 YTD 2024 Q3 2024 YTD 2024 • Driven by growth in Consumer and € 1,420m € 4,189m +€ 19m +€ 47m € 643m € 1,878m Business and higher non-service revenu
Slide 14: Group service revenue growth, with all segments contributing
Group service revenue growth, with all segments contributing Group service revenue growth (€ m) +3.7% Consumer driven by strong Mobile +22 and Fiber service revenue growth 1,325 +40 -13 -2 1,277 Business with growth across the board Wholesale returned to organic growth, driven by both Broadband and
Slide 15: YTD FCF generation broadly stable y-on-y
YTD FCF generation broadly stable y-on-y Contribution to Δ FCF y-on-y (€ m) YTD 2024 FCF of € 542m, 1.7% lower y-on-y, as Adj. EBITDA AL YTD 2024 1,878 +69 higher EBITDA was offset by: − higher Capex Capex -920 -15 − timing interest payments Operational FCF 958 +54 − higher cash taxes Cash restructu
Slide 16: Robust liquidity position, committed to investment-grade credit profile
Robust liquidity position, committed to investment-grade credit profile 12.3x 10.5x 10.6x 10.5x Robust liquidity… 9.3x (€ m) 1,075 1,594 2.4x 2.4x 2.5x 2.3x 2.3x (€ m) 6,910 7,146 6,400 6,738 519 6,384 6,039 6,220 5,820 5,582 5,596 Cash & short term investments RCF Total liquidity end Q3 2024 1,314
Slide 17: FY 2024 outlook reiterated
FY 2024 outlook reiterated Achievements Outlook Ambitions YTD 2024 FY 2024 FY 20271 Service revenues +3.7% ~3% ~3% CAGR Adj. EBITDA AL € 1,878m ~€ 2,500m ~3% CAGR Capex € 920m ~€ 1.2bn <€ 1.0bn Free Cash Flow € 542m >€ 890m ~7% CAGR 17 Q3 2024 Results 1. CAGR compared to FY 2023
Slide 18: Highlights Q3: Organic growth across all segments, guidance confirmed
Highlights Q3: Organic growth across all segments, guidance confirmed 1 Group service revenue growth (+3.7% y-on-y, or +3.4% organic) Consumer service revenue growth (+6.1% y-on-y, or +2.7% organic) Ongoing commercial momentum in Consumer postpaid; positive net adds broadband Continued Business serv
Slide 19: Appendices
Appendices l Tax ll Debt portfolio llI ESG dashboard Presentatie CMD 2024 titel Vertrouwelijk
Slide 20: I. Tax Q3 2024
I. Tax Q3 2024 P&L Cash flow P&L Cash flow Regions (€ m) Q3 2023 Q3 2024 Q3 2023 Q3 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 The Netherlands -69 -70 -26 -62 -190 -183 -69 -99 Other - - - - - - - - Total reported tax -69 -70 -26 -62 -190 -183 -69 -99 Of which discontinued operations - - - - - - - - R
Slide 21: II. Debt portfolio
II. Debt portfolio Nominal debt by type1 Nominal debt by currency1 Fixed vs. floating interest1 Debt redemption profile2 1.1 6% 6% 1.0 15% 17% 13% 0.8 0.8 0.7 0.7 0.6 0.6 6% 0.5 0.3 71% 81% 85% ’25 ’26 ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’36 Eurobonds EUR Fixed EUR Global bonds GBP Floating GBP Hybrid bonds
Slide 22: III. ESG dashboard: continued progress on ambitions
III. ESG dashboard: continued progress on ambitions Scope 1 – Direct emissions In kTon CO2e Base year1 59 • Gross emissions, relating to fuel consumption car fleet, heating of buildings, consumption of -87% LTM Q2 ’23 Scope 1 10 -23% coolants, fuel consumption of emergency power generators 8 LTM Q2
Slide 23: KPN Investor Relations
KPN Investor Relations ir.kpn.com 23 Q3 2024 Results