04 February 2014 - The company

Annual Results 2013

Highlights

Improved operational performance

  • Triple play penetration at 44%, up 8%-points y-on-y
  • Quad play customers doubled in Q4 ’13 to 173k
  • Dutch 4G coverage at ~80%, nationwide coverage end Q1 ’14
  • Positive postpaid net adds, but market share lower in competitive Dutch mobile market
  • Successful postpaid and data strategy in Germany and Belgium
  • FTE reduction program completed, ~4,650 reductions realized

Group financial results reflect competitive markets and high investment levels

  • Lower Group revenues and EBITDA in 2013 due to pressure in Consumer Mobile and Business markets, partly offset by good performance Consumer Residential
  • Q4 ’13 EBITDA down 7.3% y-on-y, adjusted for incidentals and phasing out handset lease
  • Capex at EUR 1.6bn in 2013 (+2.6%) driven by investments in networks, products and customers

Strategy and Outlook

  • Building on strong fundamentals
  • Enhanced customer focus via best-in-class networks and products
  • Simplification leading to lean operating model
  • Financial performance stabilizing towards the end of 2014
  • Free cash flow growth expected in 2015
  • Recommence dividend payment in respect of 2014 (EUR 0.07), subject to closing E-Plus sale
  • Additional excess cash via potential dividend from 20.5% stake in Telefónica Deutschland

Key figures

All key figures presented are based on KPN’s continuing operations and do not include the financial results of E-Plus. E-Plus is classified as held for sale and discontinued operations. Some small operations in Germany will not be sold and remain reported in continuing operations. Comparative financial information has been restated in accordance with relevant IFRS standards.

Results2013

Message from the CEO, Eelco Blok

“In 2013, we continued our clear focus on improving operational performance driven by investments in networks, products and customers. We have now put in place strong fundamentals at KPN and expect stabilizing financial performance towards the end of the year 2014 and FCF to grow in 2015. We are confident to obtain regulatory clearance for the sale of E-Plus and intend to recommence paying a dividend in respect of 2014. KPN’s financial profile will be further improved following the sale of E-Plus. Furthermore, we will potentially benefit from additional excess cash by receiving dividends from the 20.5% stake in Telefónica Deutschland.”

Press release for download here: kpn.com/results