• Artikel

Discounts investigation completed 



Den Haag, 22-12-04

The investigation confirms the company’s initial assessment of the scope of services, market segment and financial amounts involved. KPN has instituted a tightening up of its compliance procedures, including the introduction of a programme to improve employees' awareness about the increasingly complex legal restrictions governing their commercial activities and new guidelines designed to avoid the risk of future regulatory breaches. Furthermore, a special committee will investigate whether additional measures will be necessary.

Mr Eelco Blok, the Board Member responsible for the Fixed Division, has notified the Supervisory Board of his decision to resign from the Board of Management. Mr Ad Scheepbouwer, KPN CEO, will take responsibility for the Fixed Division until further notice. Following his resignation, Mr Blok has been offered the senior staff position Corporate Strategy and Innovation, which he has accepted. Mr Blok’s expertise will be invaluable in this new role, which will accelerate KPN’s strategic transition to achieve leadership in the new telecommunications world.

The independent review has confirmed that the value of the discounts in question was approximately EUR 20 million paid in aggregate over the period 2003 to date, and was marginal in the three preceding years. The segment of the fixed business involved (voice services provided to the business market) represents annual revenues for KPN of approximately EUR 300 million, or 2.5% of the company’s total annual turnover. KPN does not believe there will be a need to restate the company’s consolidated financial statements for the period in question.

Further KPN awaits the outcome of the investigation conducted by OPTA, the Dutch Telecommunications Regulator.

Commenting, Ad Scheepbouwer said: "Whilst, as we thought, the sums involved are not material, we take this matter extremely seriously and are committed to maintaining the highest standards of governance. We consider integrity as an important corporate value and have taken prompt action to ensure that we, individually and collectively, adhere to the highest possible standards."

The company will resume its share repurchase programme tomorrow, December 23rd.