Royal KPN NV · EURONEXT:KPN
Royal KPN NV — KPN — Citi European & Emerging Markets Telecoms Conference 2009
17 slides from Royal KPN NV's conference presentation, Mar 24, 2009
Slide 1: Citi European & Emerging Markets Telecoms Conference
Citi European & Emerging Markets Telecoms Conference Marcel Smits, CFO London, 24 March 2009
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 KPN’s operations, its and its joint ventures' share of ne
Slide 3: Disclaimer
Disclaimer We define EBITDA as operating result before depreciation and impairments of PP&E and amortization and impairments of intangible assets. Note that our definition of EBITDA deviates from the literal definition of earnings before interest, taxes, depreciation and amortization and should not
Slide 4: Agenda
Agenda Highlights Operating review the Netherlands Operating review Mobile International Concluding remarks 4
Slide 5: Highlights 2008
Highlights 2008 • Solid FY 2008 results, guidance met on all metrics • EBITDA inflection in the Netherlands • Continued profitable growth at Mobile International • Getronics on track, iBasis goodwill impaired • 2010 outlook confirmed Financial highlights: • FCF of € 2.6 bn in 2008, ahead of guidance
Slide 6: Impact of economic downturn
Impact of economic downturn • Limited impact from economic downturn in 2008 – No significant impact on FY ’08 results, except for real estate disposals – Small increase in average interest paid on bonds during 2008 – Early warning indicators being tracked continuously, no material issues yet • Pre-e
Slide 7: Outlook
Outlook Confirming outlook for 2010, as announced with ‘Back to Growth’ strategy Reported Outlook Outlook 2009 2008 2010 Revenues and • Meaningful progress towards € 14.60 bn > € 15 bn EBITDA target for 2010 other income • Free cash flow of EBITDA € 5.06 bn > € 5.5 bn ~€ 2.4 bn in 2009 – Despite exp
Slide 8: Financial review the Netherlands by segment
Financial review the Netherlands by segment Revenue decline in Consumer stopped, solid trends in Business • Wireline revenues supported by limited and stabilizing net line loss 17.5% 19.0% 17.0% 19.8% 20.1% 19.0% 16.0% 14.9% • Wireless services back to growth in Consumer 1,037 1,032 1,053 1,011 1,00
Slide 9: Financial review the Netherlands by segment (cont'd)
Financial review the Netherlands by segment (cont’d) Getronics results impacted by restructuring costs, W&O resilient • Solid underlying trend in revenues 6.7% from core operations Getronics1 4.7% 4.7% • Lower overall revenues as a result of 3.9% 488 515 504 divestments during 2008 465 449 • Low EBI
Slide 10: Strategic progress Consumer
Strategic progress Consumer Strong improvement in Consumer segment, strategy delivering results ‘Back to Growth’ strategy Achievements 2008 Strengthen position as • Consumer strategy delivering results leading consumer − Revenue decline stopped per Q4 ’08 service provider − Shift to customer value −
Slide 11: Fiber
Fiber Focus on 5 cities with FttC and 5 cities with FttH Fiber approach Reggefiber JV Backbone KPN Reggefiber JV • Simple product portfolio with three • FttH rolled out through Reggefiber JV distinct propositions – KPN owning 41% of JV that constructs – Differentiation on bandwidth, value- and opera
Slide 12: Strategic progress Business
Strategic progress Business Leading managed ICT service provider, upside from Getronics integration ‘Back to Growth’ strategy Achievements 2008 Leading managed ICT service provider • Solid revenue and profitability trends • Stable market shares in most segments Preferred supplier for • Tapping growt
Slide 13: Strategic progress Getronics
Strategic progress Getronics Restructuring on track, overall solid profitability for ongoing business ‘Back to Growth’ strategy Achievements 2008 • Successful transition during 2008 Benelux market leader • Timely disposals at good prices − Focus on workspace management − Total consideration of dispo
Slide 14: Financial review Mobile International by segment
Financial review Mobile International by segment Profitable growth at both E-Plus and BASE • Service revenue growth of 5.5% in 39.8% 37.6% 40.0% 38.9% Q4 ’08 36.2% 36.6% 37.6% 38.1% 840 • Revenue growth of 7.2% in Q4 ’08, 808 815 E-Plus 698 736 769 760 755 partly driven by acquisitions • ‘Challenger
Slide 15: Market outperformance
Market outperformance Service revenue growth consistently higher than overall market growth E-Plus service revenue growth (y-on-y) 10.9% 9.8% 10.0% 7.6% 8.4% 8.1% • E-Plus ~8% ahead of 6.8% 6.4% 4.2% 5.5% market growth in past years 2.5% 2.9% 1% • Market contraction in 2007 0% 1% -1% -1% -1% mainly
Slide 16: Concluding remarks
Concluding remarks • Solid FY 2008 results, guidance met on all metrics, dividend up 11% • EBITDA inflection in the Netherlands • Continued profitable growth at Mobile International • Getronics on track, iBasis goodwill impaired • 2010 outlook confirmed 16
Slide 17: Q&A
Q&A 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
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