Financial profile

KPN’s financial policy is based on the financing principles that secure a solid balance sheet with a sufficient equity level, a net debt/EBITDA ratio between 2.0 and 2.5x and a growing dividend per share. This financial policy allows KPN to continue with its policy of accommodating an attractive dividend policy, whilst maintaining flexibility to grow and invest in its business.

KPN has paid a total amount of dividend over the fiscal year 2011 of EUR 1.2 billion. KPN intends to pay a dividend per share of EUR 0.90 over the fiscal year 2012. Furthermore, KPN is committed to returning excess cash to shareholders. Since March 2004 up to Q4 2011, KPN has executed EUR 9.8 billion share repurchases. KPN’s shareholder remuneration policy is based on the financing principles that secure a solid balance sheet with a sufficient equity level, a net debt/EBITDA ratio between 2.0 and 2.5x and a growing dividend per share. KPN intends to return surplus cash to shareholders via share repurchases. Such repurchases will only be undertaken at a price, which enhances value for the remaining shareholders.

Per Q1 2012 KPN had a net debt outstanding of EUR 11.8 billion and EUR 1.3 billion of cash. KPN intends to maintain a positive free cash flow quarter on quarter.