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KPN has set several specific objectives, expressed in financial and non-financial key performance indicators (KPIs).

Performance indicators

A number of KPIs forms the basis for the variable remuneration of the members of the Board of Management and the ExCo and of the other top managers. In 2011, we introduced customer satisfaction, reputation and electricity consumption as non-financial KPIs. These three KPIs give an indication as to whether we are on schedule with our strategic targets.

Customer satisfaction

We use the Net Promoter Score (NPS) to measure customer satisfaction. We regularly survey a representative customer group in the Netherlands to calculate this score. The key question asked is whether customers would recommend KPN to friends or family. A negative score means that customers who recommend KPN are in the minority.

Electricity consumption

We use RepTrak to monitor our reputation. RepTrak, run by the Reputation Institute, publishes an annual ranking based on a survey carried out among the population of the Netherlands. Along with other large Dutch companies KPN takes part in this survey. In 2012 we set a new long-term objective for reputation. As from 2013 our objective is to improve our RepTrak score, in stead of the objective to improve our position compared to other Dutch companies.

Energieverbruik

KPN is a large-scale user of electricity, accounting for 0.8% of total Dutch energy consumption. Consequently, we do everything possible to reduce our energy consumption and to use green energy. The sharply rise in data consumption makes this even more necessary. Moreover, we put our customers and suppliers in a position to reduce their own energy consumption through the use of ICT.

Financial KPIs

Healthy financial management of the business is critical to success. Indicators such as market shares, capital expenditures, EBITDA, profit per share and free cash flow give a clear picture of our financial performance.