Facts

Facts about KPN

KPN is doing well. The parent company met all expectations in 2007. Revenues remained stable and net profit rose by 67 %. With a €1 billion share repurchase program for 2008, KPN will continue to deliver on its promise to pay out excess cash to its shareholders. We also gave an undertaking to pay out dividend totaling €1 billion over this year. We have developed a new strategy called ‘Back to Growth’ for the 2008-2010 period.

Solid in the Netherlands
The loss of wirelines in the Consumer Market in the Netherlands decreased last year, while the number of television customers doubled. Telfort was successfully integrated. The Business Market segment sustained its growth and accelerated the transition to new services. The roll-out of fiber-optic cabling was initiated. There was also continued growth at Mobile International. German subsidiary E-Plus in particular performed excellently in 2007.

Getronics and iBasis
The acquisition of Getronics elevated KPN to market leader in workstation management in the Benelux. KPN also obtained a majority interest in iBasis, a global VoIP player, and has embedded its wholesale activities at that company. This step has changed the global telecommunications landscape. iBasis is now one of the world’s three largest providers of international voice traffic.

Financial results

2005 2006 2007
Revenues* €11.9 €12.0 €12.6
EBITDA* €4.72 €4.83 €4.90
Free cash flow* €2.43 €2.47 €2.34
Investments* €1.39 €1.65 €1.68
Shareholder return* €2.6 €2.6 €2.5
Dividend per share (in euro) €0.45 €0.50 €0.54
Earnings per share (in euro) €0.66 €0.79 €1.42

* in billions of euro

Countries and brands

KPN operates across three countries through telecom companies that market various brands.

Principal office Brands Activities
Netherlands The Hague KPN Fixed and mobile telephony/TV
Hi Mobile telephony
Telfort Internet/mobile telephony
Simyo Mobile telephony
XS4ALL Internet/fixed telephony
Het Net Internet/fixed telephony/TV
Ay Yildiz Mobile telephony for Turkish community
Belgium Brussels BASE Mobile telephony
Ay Yildiz Mobile telephony for Turkish community
Germany Düsseldorf E-Plus Mobile telephony
Medion (Aldi) Mobile telephony
Simyo Mobile telephony
Blau Mobile telephony
Ay Yildiz Mobile telephony for Turkish community
and many others

Customer figures*

Wireline customers 27 million
Mobile customers 5.4 million
Internet customers 2.4 million
Television customers 0.5 million

* Figures at December 31, 2007

Market shares

The Netherlands Fixed telefonie 55-60%
Mobile telefonie ~47%
Broadband ~44%
Mobile international E-Plus ~14%
BASE ~16%
Total FTEs* 43,531

* Parent company inc. Getronics/iBasis at December 31, 2007