Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — KPN — FY2010 Earnings Presentation
76 slides from Royal Kpn Nv's earnings presentation, Jan 26, 2011
Slide 1: Annual Results 2010
Annual Results 2010 26 January 2011
Slide 2: Safe harbor
Safe harbor Non-GAAP measures and management estimates This financial report contains a number of non-GAAP figures, such as EBITDA and free cash flow. These non-GAAP figures should not be viewed as a substitute for KPN’s GAAP figures. KPN defines EBITDA as operating result before depreciation and im
Slide 3: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 3
Slide 4: Highlights 'Back to Growth' strategy 2008-2010
Highlights ‘Back to Growth’ strategy 2008-2010 • ‘Back to Growth’ strategy 2008-2010 delivered good results, despite economic headwinds and regulation • Significant improvement in profitability across the Group • Dutch Telco reached EBITDA inflection earlier than expected • Continued market outperfo
Slide 5: 'Back to Growth' strategy - achievements 2008-2010
‘Back to Growth’ strategy - achievements 2008-2010 Significant achievements resulting from strong execution Objectives ‘Back to Growth’ Achievements • Overall stable market shares with • Leading service provider and broadband slipping somewhat, TV growing The best-in-class operator • No revenue infl
Slide 6: 'Back to Growth' strategy - financial results 2008-2010
‘Back to Growth’ strategy - financial results 2008-2010 All 3-year strategy targets achieved, except for revenues Revenues1 Significant EBITDA1 growth € bn € bn + € 0.8bn + € 0.6bn 12.6 13.4 5.5 4.9 2007 2010 2007 2010 Growing earnings per share Growing FCF per share Growing dividend per share € € €
Slide 7: 'Back to Growth' strategy - performance 2008-2010
‘Back to Growth’ strategy - performance 2008-2010 KPN outperforming the market since execution ‘Back to Growth’ strategy Shareholder returns 2008-2010 Share price performance since 20083 • Continued track record of delivering € shareholder value 14 – Industry-leading shareholder returns • Delivered
Slide 8: Highlights 2010
Highlights 2010 • Good performance across the Group • Continued increase in profitability at Dutch Telco • Higher service revenue growth in Germany at strong margin • 2010 dividend per share of € 0.80, € 1bn share repurchase program completed in 2010 • Outlook 2011 confirmed, new € 1bn share repurch
Slide 9: Performance versus outlook 2010
Performance versus outlook 2010 Good performance across Group, balancing profitability with market shares Outlook Reported 2010 2010 In line with 2009 • Revenues flat y-on-y despite Revenues and € 13.4bn severe regulation and economic other income (€ 13.4bn1) headwinds EBITDA > € 5.5bn € 5.5bn • € 2
Slide 10: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 10
Slide 11: Group results
Group results Good financial performance across the Group €m Q4 ’10 Q4 ’09 % FY ’10 FY ’09 % Revenues and other income 3,389 3,371 0.5% 13,398 13,509 -0.8% Operating expenses 2,618 2,647 -1.1% 10,148 10,659 -4.8% 1 – of which Depreciation 357 383 -6.8% 1,409 1,550 -9.1% 1 – of which Amortization 231
Slide 12: Group cash flow
Group cash flow Achieved full-year guidance of more than € 2.4bn free cash flow €m FY ’10 FY ’09 % Operating profit 3,250 2,850 14% • Full-year free cash flow of € 2.4bn, in Depreciation and amortization1 2,226 2,342 -5.0% line with 2009 Interest paid/received -736 -612 20% Tax paid/received -589 -5
Slide 13: Capex
Capex Relatively stable Capex over the years €m Group Capex • Significantly higher volumes offset by lower equipment prices 1,925 1,767 1,809 1,688 653 555 645 • Stable Capex at Dutch Telco business 577 – Central Capex Board in the Netherlands – Additional investments in capacity for fixed 1,110 1,2
Slide 14: Group financial profile
Group financial profile Solid financial profile with Net debt / EBITDA comfortably within target range € bn Debt Financing policy 14.5 13.6 13.7 13.8 13.8 13.7 13.6 12.6 2.5x 12.1 12.2 2.3 2.3 2.3 2.1 2.2 2.3 2.3 2.2 2.0x 11.7 11.8 11.7 11.4 11.8 11.1 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10
Slide 15: Regulation
Regulation Significant MTA reductions implemented across the Group • KPN’s suspension request has been rejected, Court decision on annulment procedure pending € ct / min Until 7 July 7 July ’10 Sep ’10 Jan ’11 Sep ’11 Sep ’12 The KPN 7.00 5.60 5.60 4.20 2.70 1.20 Netherlands Vodafone 7.00 5.60 5.60
Slide 16: Outlook 2011
Outlook 2011 Current strategy continued Reported Outlook 2010 2011 EBITDA € 5,476m Growth • Outlook 2011 confirmed • New € 1bn share repurchase program for 2011 Capex € 1,809m < € 2bn Free cash flow1 € 2,428m Growth Dividend per At least € 0.80 share € 0.85 1 Free cash flow defined as cash flow from
Slide 17: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 17
Slide 18: 'Back to Growth' achievements - Mobile International
‘Back to Growth’ achievements - Mobile International Continued profitable growth, steps taken for further outperformance Strategic objective: Continued market outperformance and attractive margins Revenues and other income up € 562m1 Selective expansion in Europe € bn 5.3% CAGR 4.1 4.1 4.2 3.6 2007
Slide 19: 'Back to Growth' achievements - by segment
'Back to Growth’ achievements - by segment Profitable market outperformance in Germany and Belgium Strategic objectives: E-Plus outperforming competition in growing German market Re-igniting growth in Belgium with broader scope Service revenue growth Germany1 Service revenue growth Belgium1 6.7% 6.1
Slide 20: Financial review - Mobile International
Financial review - Mobile International Continued service revenue growth, margin impacted by commercial data launch Wireless service €m +4.5% • Q4 service revenues up 4.5% y-on-y revenues – Continued growth in Germany – Decline in Belgium due to severe MTA 943 975 956 987 1,025 999 impact 902 927 –
Slide 21: Financial review - Mobile International by segment
Financial review - Mobile International by segment Improving underlying performance, regulation has strong negative impact €m 40.3% • Q4 service revenues down 2.3% y-on-y due 35.4% to regulation 32.5% 33.3% 32.5% 34.8%2 30.9% 33.2% Belgium¹ 28.9% • Severe MTA impact of € 18m on service revenues, € 1
Slide 22: Operating review - Belgium
Operating review - Belgium1 Service revenues down due to regulation, underlying growth of 5.8% y-on-y Net adds • Growing customer base through good 3.7 3.7 3.5 3.5 3.6 3.6 3.6 3.6 performance of simplified BASE proposition • Commercial mobile data launch in key regions 39 53 38 24 44 – Supported by
Slide 23: Operating review - Germany
Operating review - Germany Increased underlying service revenue growth of 6.1% driven by strong postpaid Net adds • Very strong postpaid net adds (177k), total 19.0 19.3 19.6 19.9 20.4 customer base passing 20 million milestone 18.0 18.2 18.7 – Regional focus and strong captive channel performance 3
Slide 24: Mobile International - Challenger strategy
Mobile International - Challenger strategy Key building blocks in place for continued profitable growth Building Building blocks blocks Service Build ‘Mein BASE’ revenues further Intensify regionalization Regional high speed data launch Re-launch BASE brand Germany Exploit mobile data Commercial Re-
Slide 25: Branding & distribution
Branding & distribution Innovative brand strategy with focus on successful flagship brand - BASE ‘Mein BASE’ proposition Distribution & wholesale • Successful regional focus – Regional organization drives local strategy execution – Capturing remaining fixed to mobile substitution opportunity in regi
Slide 26: Network roll-out
Network roll-out Network quality in line with increasing customer demand for data Principles & building blocks Objectives ¾ Investment principles New HSPA+ sites per day # Timed investments Proven technology Increasing speed of 10 network roll-out due to Lower risk Lower cost multiple roll-out partn
Slide 27: German spectrum
German spectrum Device Spectrum Standard Use Opportunity availability E-Plus 900MHz Handsets 1 block 2x5 GSM voice • UMTS in white spots Paired Dongles 1.8GHz Handsets 4 blocks 2x5 GSM 1800 / • Preferred option to roll out LTE on coverage Worldwide Paired Dongles 1 blocks 2x7.4 Trials LTE using exis
Slide 28: Mobile data opportunity
Mobile data opportunity Extending successful Challenger strategy into mobile data Principles Regional high speed data launch Incumbent Consumer • Lowest cost to serve is key • High speed data available in 9 selected urban Challenger Demand enabler to offer low cost areas since November 2010 “Push” m
Slide 29: Mobile data opportunity (cont'd)
Mobile data opportunity (cont’d) Unique proposition to target ‘value for money’ data market segment Proposition Partnerships Mobile data opportunity Smartphone penetration to drive data uptake % Illust rative • Leverage wholesale partnerships to target mass • Transparent ‘value for money’ market (e.
Slide 30: Rest of World
Rest of World Strong top line growth, Spain EBITDA & cash flow positive Spain & France Ortel Objectives • Scaling up brands, targeting selective segments, build partnerships • Acquisition of remaining 35%, • Ongoing cost reductions / process optimization current strategy continued • Spain cash flow
Slide 31: Operating review - iBasis
Operating review - iBasis Structurally higher revenues and improved market share €m Financial • Focus on balancing revenue growth with profitability 4.3% 4.1% 4.1%1 3.8% – Q4 revenues up 44% y-on-y to € 234m, of which 3.5% 3.4% 3.2% ~7% positive currency effect 3.0% – EBITDA margin of 3.0% 1.1% – FY
Slide 32: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 32
Slide 33: 'Back to Growth' objectives - Dutch Telco
‘Back to Growth’ objectives - Dutch Telco Leading service provider, reaching EBITDA inflection • Ramping up new services Dutch Telco • Radical simplification • Best-in-class operator • Cost reductions Consumer Business Wholesale & Operations • Strengthen position as • Leading infrastructure • Best-i
Slide 34: 'Back to Growth' strategies - Dutch Telco
‘Back to Growth’ strategies - Dutch Telco Manage for value Grow mobile data Targeting single access n io ut Br rib Value an st ds Di maximization Customer Lifecycle Management • Monetize mobile data growth • Multi-play, TV is key • Multi-brand, multi-proposition and national distribution network • F
Slide 35: 'Back to Growth' achievements - Dutch Telco
‘Back to Growth’ achievements - Dutch Telco Strong profitability growth € bn Revenues and other income1 “Target EBITDA floor of € 3.4bn for 2008, followed by growth in 2009 – 2010” -/- € 0.3bn • Focus has been on EBITDA, FCF and market shares 7.4 7.3 7.3 7.2 7.0 – Revenues declined due to economic d
Slide 36: 'Back to Growth' achievements (cont'd) - FTE reductions
‘Back to Growth’ achievements (cont’d) Substantial FTE1 reductions achieved Objectives Achievements Reduction permanent staff1 Reduction permanent staff1 • Target 2005-2010: ~10,000 FTE • Achieved 2005-2010: 9,385 FTE – Target 2008-2010: 4,500 FTE – Achieved 2008-2010: 3,973 FTE Reduction temporary
Slide 37: 'Back to Growth' achievements (cont'd) - cost reduction
‘Back to Growth’ achievements (cont’d) Cost reduction programs embedded in organization Cost scrutiny continues Quality focus leading to additional cost measures Various new cost reduction areas • Service quality improvement programs; First Time • Rationalization of billing systems landscape Right &
Slide 38: 'Back to Growth' achievements (cont'd)
‘Back to Growth’ achievements (cont’d) Employee engagement & customer satisfaction up, social responsibility improving Employee engagement rising Corporate social responsibility improving Score New way of working 80% • Facilitate people to improve work-life balance 74% 76% 71% – 10,000 KPN employees
Slide 39: 'Back to Growth' achievements - Consumer
‘Back to Growth’ achievements - Consumer Managing for value resulted in stable ARPUs & strongly improved profitability Strategic objective: Leading service provider with wireless growth and without line loss Achievements ‘Back to Growth’ strategy k 44% Broadband subs & share 44% m Mobile subscribers
Slide 40: 'Back to Growth' achievements - Business
‘Back to Growth’ achievements - Business Leading and preferred business market supplier, but pressure on revenues Strategic objective: Leading managed ICT service provider in the Netherlands Achievements ‘Back to Growth’ strategy Voice / internet connections Traditional voice / Mobile ARPU € 62 1.7
Slide 41: 'Back to Growth' achievements - Wholesale & Operations
‘Back to Growth’ achievements - Wholesale & Operations Strategic objective: Network transformation, higher bandwidth and radical cost reduction ‘Back to Growth’ strategy Achievements • Best-in-class mobile network in the Netherlands – Highest quality based on all metrics Best-in-class network operat
Slide 42: Financial review - Dutch Telco
Financial review - Dutch Telco Continued increase in profitability €m Revenues and other income • Revenues and other income down 2.4% y-on-y in Q4 ’10 -2.4% – Continued pressure on traditional businesses – Consumer revenue trend 1,824 1,838 improving 1,770 1,782 1,758 1,759 1,747 1,740 – ~1.7% impac
Slide 43: Financial review - Dutch Telco by segment
Financial review - Dutch Telco by segment All segments contributing to healthy profitability €m 26.9% 26.0% 26.9% 29.2% 28.1% 29.6% 24.0% 23.7% • Improving revenue trend due to Consumer wireless services, despite regulation 1,031 1,042 1,018 1,004 969 990 991 990 impact • Solid profitability, positi
Slide 44: Operating review - Consumer wireless
Operating review - Consumer wireless1 Market position supported by mobile data growth Positive developments in Q4 Successful focus on mobile data • Commercial efforts back to normal after • iPhone 4 launched end November ’10 marketing push in Q3 • Continued focus on tiered pricing – Moving from flat
Slide 45: Operating review - Consumer wireless (cont'd)
Operating review - Consumer wireless1 (cont’d) Continued focus on high value customers €m • Service revenues down 5.1% y-on-y -5.1% – ~3% impact from regulation – Lower customer base due to value focus Service 465 477 460 – Some price pressure at value for money revenues 453 434 448 443 430 segment
Slide 46: Operating review - Consumer wireline
Operating review - Consumer wireline IPTV growth continues, slight erosion broadband share with stable customer base Positive developments in Q4 Broadband customer base stable 14% 14% 15% 12% 12% 13% 11% 43% 43% 43% 42% 42% 42% 42% 41% 10% 245 302 147 193 76 106 50 62 2,565 2,568 2,578 2,575 2,584 2
Slide 47: Operating review - Consumer wireline (cont'd)
Operating review - Consumer wireline (cont’d) Net line loss remains at manageable level in Q4 X 1,000 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 PSTN/ISDN • PSTN/ISDN line loss stable loss • Outflow to cable remains in line with -92 -77 -83 -87 -87 -72 -73 -81 previous quarters • Succes
Slide 48: Fiber-to-the-Home
Fiber-to-the-Home FttH activations take time, ambition of 250k HA by 2012 Reggefiber JV activations in progress KPN active on larger part of JV base k 658 569 612 506 529 462 446 404 392 335 288 171 186 163 193 210 120 123 138 150 160 119 106 72 2 4 7 11 21 26 32 41 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '1
Slide 49: Operating review - Business wireless
Operating review - Business wireless Stable performance of wireless services corrected for regulation €m -4.5% 247 246 234 247 248 246 228 236 • Service revenues down 4.5% y-on-y Service – ~3.6% impact from regulation revenues • Continued mobile data growth in a competitive environment Q1 '09 Q2 '09
Slide 50: Operating review - Business wireline
Operating review - Business wireline Continued decline in revenues, good profitability €m -5.8% • Continued impact from competition, economy and decline in traditional Revenues1 374 371 359 361 376 business 342 333 340 • ~€ 10m net positive incidentals on revenue and EBITDA Q1 '09 Q2 '09 Q3 '09 Q4 '
Slide 51: Financial review - Dutch Telco
Financial review - Dutch Telco Continued increase in profitability €m Revenues and other income • Revenues and other income down 2.4% y-on-y in Q4 ’10 -2.4% – Continued pressure on traditional businesses – Consumer revenue trend 1,824 1,838 improving 1,770 1,782 1,758 1,759 1,747 1,740 – ~1.7% impac
Slide 52: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 52
Slide 53: 'Back to Growth' achievements - Getronics
‘Back to Growth’ achievements - Getronics Benelux leader in workspace management with improved margins Strategic objective: Strengthen ICT capabilities and increase profitability ‘Back to Growth’ strategy Achievements • Timely disposals at good prices – Focus on workspace management Benelux market l
Slide 54: Operating review - Getronics
Operating review - Getronics EBITDA margin strongly improved despite difficult market conditions €m Revenues and other income up 0.2% • Revenue trend improving during 2010, (Existing operations) target of 8% EBITDA margin in 2010 525 528 537 538 realized 485 474 478 476 • Revenues up 0.2% y-on-y in
Slide 55: Agenda
Agenda Chairman’s review Ad Scheepbouwer Group finance Carla Smits-Nusteling International Eelco Blok Dutch Telco Baptiest Coopmans Getronics Ad Scheepbouwer Concluding remarks Ad Scheepbouwer 55
Slide 56: Concluding remarks
Concluding remarks • Good performance across the Group • Continued increase in profitability at Dutch Telco • Higher service revenue growth in Germany at strong margin • 2010 dividend per share of € 0.80, € 1bn share repurchase program completed in 2010 • Outlook 2011 confirmed, € 1bn share repurcha
Slide 57: Q&A
Q&A
Slide 58: 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 59: Analysis of results
Analysis of results Key items worth mentioning in results interpretation €m Q4 ’10 Q4 ’09 FY ’10 FY ’09 Revenue effect MTA tariff reduction Group -68 -58 -180 -198 Roaming tariff reduction Group -5 -11 -44 -57 Wholesale Price Cap W&O - -10 4 -34 Sale of dark fiber Business 14 - 14 - Book gain on sal
Slide 60: Restructuring charges
Restructuring charges €m Q4 ’10 Q4 ’09 FY ’10 FY ’09 Germany -1 - -2 -1 Belgium - 1 - 1 Rest of World - - - - Mobile International -1 1 -2 0 Consumer 3 -2 1 -6 Business - 1 - 1 Wholesale & Operations -2 -5 1 -9 IT NL - -1 - -1 Dutch Telco 1 -7 2 -15 Getronics -5 -14 -4 -44 The Netherlands -4 -21 -2
Slide 61: Impact MTA reduction
Impact MTA reduction €m Q4 ’10 FY ’10 Revenues EBITDA Revenues EBITDA Germany -22 -11 -43 -21 Belgium -18 -13 -29 -21 Rest of World - - - - Mobile International -40 -24 --72 --42 Consumer -13 -4 -57 -16 Of which: Mobile Wholesale -1 - -3 -1 Business -9 -1 -35 -3 Wholesale & Operations -8 - -24 -1 In
Slide 62: Operating expenses
Operating expenses €m Q4 ’10 Q4 ’09 % Salaries and social security contributions 462 526 -12% Cost of materials 281 213 +32% Work contracted out and other expenses 1,140 1,136 +0.4% Own work capitalized -28 -28 - Other operating expenses 175 217 -19% Depreciation1 357 383 -6.8% Amortization1 231 200
Slide 63: Operating expenses - analysis
Operating expenses - analysis Salaries and social security contributions & Cost of materials €m Salaries and social security Y-on-Y decrease • Decrease own personnel 16.1% 15.9% 15.2% 15.7% 15.5% • Releases of employee benefit provisions 14.7% 14.1% 13.7% Q-on-Q decrease • Decrease own personnel 546
Slide 64: Analysis operating expenses - Work contracted out & Other
Analysis operating expenses Work contracted out & Other €m Work contracted out Y-on-Y increase • Different traffic mix at iBasis 36.3% 34.7% 34.4% 33.9% 34.1% 34.2% 34.8% 33.8% • Offset by decrease external personnel • Lower MTA cost 1,231 1,182 1,137 1,136 1,116 1,144 1,160 1,140 Q-on-Q decrease •
Slide 65: Analysis operating expenses - Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization €m Depreciation1 Y-on-Y decrease • Lifetime of mobile masts increased in Q1 ’10 11.6% 11.5% 11.6% 11.4% • Lower asset base across all segments 10.6% 10.5% 10.6% 10.6% 392 391 384 383 348 351 353 357 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3
Slide 66: Personnel
Personnel • Decrease of 2,549 FTE y-on-y – Reduction of 1,160 FTE in the Netherlands (excl. Getronics) from all segments 35,638 35,502 34,550 – Reduction of 1,030 FTE at Getronics, mainly 33,148 from divestments and restructuring 4,972 4,901 32,203 4,570 31,121 30,654 – Reduction of 359 FTE at KPN a
Slide 67: Tax
Tax P&L Cash flow Fiscal units (€ m) Q4 ’10 Q4 ’09 Q4 ’10 Q4 ’09 Dutch activities -92 -85 -18 59 Getronics -7 -3 -2 -1 German Mobile activities 23 654 -1 -2 Belgian Mobile activities -6 44 - - Other -1 -1 -4 - Total -83 609 -25 56 • Tax gain recorded in Germany of € 45m in Q4 ’10 and € 705m in Q4 ’0
Slide 68: Share repurchase progress
Share repurchase progress Date1 Value (€ m) Shares (m) Avg. share price (€) Q1 ’10 103.1 8.9 11.60 Q2 ’10 454.1 42.1 10.79 Q3 ’10 101.9 9.4 10.86 October 26.4 2.3 11.35 November 265.8 22.8 11.67 December 48.7 4.4 11.00 Q4 ’10 340.9 29.5 11.55 Total 1,000.0 89.9 11.12 • € 1bn share repurchase program
Slide 69: Debt portfolio
Debt portfolio Breakdown of € 12.6bn gross debt1 13% 80% Financial 7% Global bonds Other 7% 2% instrum ents 1% EUR USD2 GBP2 7% Eurobonds 93% 90% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these financ
Slide 70: Consumer voice market
Consumer voice market1 m Q4 ’10 Q3 ’10 Q4 ’09 KPN PSTN / ISDN 1.69 1.77 2.02 Wholesale Line Rental (WLR) 0.39 0.40 0.41 Total traditional voice 2.08 2.17 2.43 KPN VoIP 1.30 1.28 1.20 Cable VoIP 1.81 1.74 1.53 Alternative DSL VoIP 0.43 0.43 0.42 Total VoIP 3.54 3.45 3.11 Mobile-only 1.25 1.25 1.25 To
Slide 71: Dutch wireless services disclosure
Dutch wireless services disclosure Q4 ’10 Q3 ’10 Q4 ’09 Service revenues (€ m) 735 742 758 − Consumer 430 443 453 − Business 236 228 247 − Other Dutch activities1 69 71 58 SAC / SRC (€) − Consumer 168 162 183 − Business2 234 242 272 1 Indicates amongst others Mobile Wholesale NL, Simyo and visitor r
Slide 72: Infrastructure
Infrastructure Deploying mix of technologies going forward ADSL on copper VDSL from FttC FttH Wireless central office (VDSL-CO) Central office Central office (ADSL2+) (VDSL2) ODF1 Street Street Street cabinet cabinet cabinet up to 20 Mb/s down up to 40 Mb/s down 30-50 Mb/s down >100 Mb/s >14 Mb/s do
Slide 73: Unbundling tariffs
Unbundling tariffs Unbundling in current network Category Monthly tariff Line sharing (LLU)1 € 0.10 / line MDF Node SDF Fully unbundled (LLU)1 € 6.53 / line colocation KPN / Telco MDF colocation1 € 839.60 / footprint / year ~28,000 1,350 street cabinets local exchanges MDF backhaul Commercial pricin
Slide 74: German spectrum auction
German spectrum auction Good auction outcome, capacity and standardization are key Total E-Plus O O V V T T 800MHz Paired 2x5 2x5 2x5 2x5 2x5 2x5 60.0MHz 0% Standardized E O T V T V 900MHz Paired 2x5 2x5 2x5 2x5 2x7.4 2x7.4 69.6MHz 14% T T T T E O O O V E E E E 1.8GHz Paired 2x5 2x5 2x5 2x5 2x5 2x5
Slide 75: Spectrum in Belgium
Spectrum in Belgium Currently fairly allocated, potential new entrant KPNgB Proximus Mobistar 900MHz 2x10.8 2x12 2x12 KPNgB Proximus Mobistar Prox Mob Free 1.8GHz 2x5.8 2x5.8 2x22 2x15 2x15 2x11.4 Current KPNgB Proximus Mobistar Free 2.1GHz status 2x15 1x5 2x15 1x5 2x15 1x5 2x14.8 1x5 Free 2.6GHz 14
Slide 76: Service revenue growth Mobile International
Service revenue growth Mobile International Service revenue growth Germany Service revenue growth Belgium 9.7% 9.7% 9.0% 9.2% 7.1% 7.5% 7.5% 6.6% 6.6% 4.0%4.0% 4.0% 2.2% 2.0% 2.0% 1.5% 1.8% -0.7% -1.3% -2.3% Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Reported Underlying (e