Royal KPN NV · EURONEXT:KPN
Royal KPN NV — ESG Presentation (October 2017)
23 slides from Royal KPN NV's sustainability presentation, Oct 10, 2017
Slide 1: Sustainable Value at Royal KPN
Sustainable Value at Royal KPN a VBDO webinar 10 October 2017
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: Today's highlights
Today’s highlights Corporate sustainability agenda fully integrated in strategy KPN is a climate leader, recognized by leading benchmarks Signed manifest with suppliers to realize circular ambitions by 2025 KPN supporting sustainable value creation by customers Socially Responsible Investing Webcast
Slide 4: Contents
Contents 1. KPN at a glance 2. Vision: the green connector 3. Stakeholder engagement 4. Impact on society 5. Business cases 4
Slide 5: KPN at a glance
KPN at a glance Leading integrated ICT service provider in The Netherlands Market leading positions in Consumer and Business Best ICT service provider2 Nationwide 4G network and world’s first nationwide LoRa network for Internet of Things ~75% of households with access to download speeds of ≥1
Slide 6: Delivering value for all stakeholders
Delivering value for all stakeholders Environment Energy consumption2 Customers Society -6% NPS ≥100Mbps vs. 2013 coverage Dutch KPN NL1 households2 +7 ~75% vs. -10 end 2013 vs. 22% end 2013 Total Employee shareholder return3 engagement2 ~55% 77% since end 2013 vs. 63% in 2013 Shareholders Employees
Slide 7: Ambition to become circular by 2025
Ambition to become circular by 2025 Signed manifest with several key suppliers to realize ambition Reduce the use of virgin materials Extend the use of products Cycle: high-end second life of Virtualization Lifespan extension products and materials Dematerialization Rates of utilization Re
Slide 8: Contents
Contents 1. KPN at a glance 2. Vision: the green connector 3. Stakeholder engagement 4. Impact on society 5. Business cases 8
Slide 9: Sustainability embedded in culture
Sustainability embedded in culture Mission We make life more free, fun & easy by connecting Who we are We are the green connector Our ambition We connect everyone and everything in an innovative, simple, reliable and sustainable way With the best people, the best products, the best service and the b
Slide 10: Sustainability agenda centered around three main themes
Sustainability agenda centered around three main themes Innovation, reliability and sustainability Innovation Reliability Sustainability We use digital technologies to We ensure a secure digital We work together to preserve our create a human-centered future environment planet Ambition Ambitio
Slide 11: Contents
Contents 1. KPN at a glance 2. Vision: the green connector 3. Stakeholder engagement 4. Impact on society 5. Business cases 11
Slide 12: Key priorities KPN stakeholders
Key priorities KPN stakeholders Materiality assessment identified most important topics Customer Quality and reliability Innovation and Economic Privacy & loyalty of networks investments value security Environmental Impact of products Compliance & performance and services risk Remuneration Socially
Slide 13: Customer focused strategy driving improving satisfaction
Customer focused strategy driving improving satisfaction Involving customers and smart investments to improve user experience Higher loyalty driven by rising customer satisfaction Innovations to further improve customer experience NPS KPN NL1 Internet of Things Academy (Makerspace) Strong reductio
Slide 14: Continued investments to further improve customer experience
Continued investments to further improve customer experience Mobile, fixed and core network improvements Best mobile network Rising fiber penetration Upgraded core network, according to customers1 driving high speed access roll-out decentralized CDN on track 90% ~78% ZWOLLE ~30% AMSTERDAM 72% 70% 61
Slide 15: Growing free cash flow to drive value
Growing free cash flow to drive value Strong free cash flow potential Solid financial position Committed to investment grade credit profile 1 Grow revenues in Consumer, stabilize in Business 9.5% Telefónica Deutschland stake provides additional financial flexibility 2 Rigorous focus on driving d
Slide 16: Well on track to realize sustainability ambitions
Well on track to realize sustainability ambitions Involving suppliers and customers Less energy consumption despite rising data volumes and helping customers to reduce energy usage 100% 2011 green 4.25 ~790 electricity 4.03 3.84 3.69 3.52 3.49 3.38 100 Climate 2015 neutral 2010 2011 2012 2013 2014 2
Slide 17: Contents
Contents 1. KPN at a glance 2. Vision: the green connector 3. Stakeholder engagement 4. Impact on society 5. Business cases 17
Slide 18: KPN makes important contribution to UN Social Development Goals
KPN makes important contribution to UN Social Development Goals High fiber penetration, nationwide 4G Digital solutions for better healthcare, and world’s first nationwide LoRa such as KPN Health cloud network for Internet of Things KPN KlasseContact allows children with KPN delivers digital infrast
Slide 19: Contents
Contents 1. KPN at a glance 2. Vision: the green connector 3. Stakeholder engagement 4. Impact on society 5. Business cases 19
Slide 20: Case Innovation: Smart City solutions
Case Innovation Case Reliability Case Sustainability Smart City solutions Market for smart cities in The Netherlands KPN partner for smart city initiatives in Rotterdam Market size of ~€ 4bn expected in 20201 KPN helps to achieve sustainability goals of Rotterdam Addressable market for KPN of
Slide 21: Case Reliability: KPN reliable partner for Dutch healthcare
Case Innovation Case Reliability Case Sustainability KPN reliable partner for Dutch healthcare Dutch healthcare ICT market expected to grow1 KPN provides broad range of healthcare ICT services € bn End-to-end solutions for the health care sector 1.3 1.3 +1.8% 1.2 1.2 1.2 1.3 Online workspaces fo
Slide 22: Case Sustainability: Data centers and cloud solutions
Case Innovation Case Reliability Case Sustainability Data centers and cloud solutions enable New Way of Living and Working Sustainable Data Centers Significant savings from New Way of Living and Working KPN opened a Tier IV Data center in Eindhoven in 2015 99.995% reliability KPN employees KPN e
Slide 23: Leading in corporate social responsibility
Leading in corporate social responsibility Successful CSR strategy recognized by leading benchmarks #1 Industry 83.3 Leader ESG score Most sustainable out of 100 Telco in the world A 4.8 List constituent ESG score (Climate) out of 5 Socially Responsible Investing Webcast | Closing remarks | 23