Shareholder remuneration

Financial policy

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. 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.

Dividend policy

KPN accommodates an attractive dividend policy. KPN paid a cash dividend of EUR 0.80 per share in respect of the year ending 31 December 2010, of which EUR 0.27 was paid out as an interim dividend in August 2010.

KPN intends to pay a dividend per share of at least EUR 0.85 over the fiscal year 2011, EUR 0.90 over the fiscal year 2012 and EUR 0.95 over the fiscal year 2013.

More information with regard to dividend history

Share repurchase program

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. Total shareholder remuneration will not exceed the total net income over the strategy period 2012-2015.

KPN repurchased EUR 1.0 billon in shares in 2010. The EUR 1.0 billion share repurchase program for 2011 runs until 1 October 2011, following an acceleration in May 2011. All shares repurchased will be cancelled.