Fourth quarter and full-year 2019 results
Operational highlights Q4 2019
• Execution of strategy on track
• Consumer performance impacted by strategic actions and ongoing competition
? Record-high Consumer NPS of +19 (Q4 2018: +14)
? Convergence: -2k fixed-mobile households, +59k in 2019, 49% of broadband base (Q4 2018: 46%);
+9k fixed-mobile postpaid customers, +189k in 2019, 63% of postpaid base (Q4 2018: 57%)
? Fixed: -16k
1 broadband net adds, -56k
1
in 2019; ARPU increased 5.2% y-on-y to € 48
? Mobile: +28k KPN brand postpaid net adds, +80k in 2019; -14k postpaid customer base across all brands,
-23k in 2019; postpaid ARPU at € 17 sequentially and 6.9% lower y-on-y
• Good progress with customer migrations in Business
? 74% of SME and 53% of LE customers migrated from traditional fixed voice or legacy broadband services
? Business NPS of -4 (Q4 2018: -1)
• Continued solid progress on simplification and digitalization
? Net indirect opex savings of € 38m in Q4 2019, € 141m in 2019
? Sale of International Network Services and Argeweb completed, sale of KPN Consulting announced and
expected to close in Q1 2020
Key figures
Key figures for Q4 2018 and FY 2018 and y-on-y trend are not corrected for impact of closed divestments (NLDC,
International Network Services and Argeweb). For information purposes only, Q4 and FY 2018 corrected for
impact of divestments to be found on page 9.
Group financials (unaudited) Q4 2018 Q4 2019 ? y-on-y FY 2018 FY 2019 ? y-on-y
(in € m, unless stated otherwise)
Adjusted revenues 1,436 1,393 -3.0% 5,639 5,486 -2.7%
EBITDA 571 598 4.7% 2,353 2,578 9.6%
Adjusted EBITDA after leases 570 561 -1.6% 2,290 2,317 1.2%
As % of adjusted revenues 39.7% 40.3% 40.6% 42.2%
Operating profit (EBIT) 185 202 9.2% 820 1,041 27%
Net profit -47 84 n.m. 292 614 >100%
Capex 368 322 -13% 1,106 1,115 0.8%
Free cash flow (excluding TEFD dividend and book
profit from divestments)
220 284 29% 795 726 -8.6%
Financial highlights Q4 2019
• Adjusted revenues declined by 3.0% y-on-y
2
? Growth in bundled services in Consumer, and IT Services and Professional Services in Business, offset by
lower revenues from legacy services, continued pressure in mobile
? FY 2019 Adjusted revenues decreased by 2.7% y-on-y
• Adjusted EBITDA AL declined by 1.6% y-on-y
? € 38m net indirect opex savings offset by € 6m negative impact from divestments2
, intra-year phasing of
opex, and the effect of lower revenues
? FY 2019 Adjusted EBITDA AL increased by 1.2% y-on-y, including € 6m negative impact from divestments2
• Net profit of € 84m, € 131m higher y-on-y
? Results negatively impacted by € 95m finance expenses (pre-tax) related to a bond tender, € 48m positive
DTA revaluation and € 29m book profit from the sale of International Network Services and Argeweb in
Q4 2019, and a negative DTA revaluation of € 110m in Q4 2018
? Excluding these one-off effects, net profit would have increased with € 14m (+22% y-on-y)
• FCF (excl. TEFD dividend and book profit from divestments) of € 284m increased by 29% y-on-y
? Driven by positive change in working capital, lower Capex and lower interest paid, partly offset by higher
change in provisions, less cash taxes received and € 4m negative impact from divestments2
? FY 2019 FCF (excl. TEFD dividend and book profit from divestments) declined by 8.6% y-on-y to
€ 726m2
1 Corrected for migrations to, and new customers of, small business proposition (7k in Q4 2019 and 29k in 2019)
2 For information purposes only, Q4 and FY 2018 corrected for impact of divestments to be found on page 9

Message from the CEO, Joost Farwerck
“We are on track with the execution of our strategy. We delivered on our financial guidance aspects for
2019, whilst intra-year phasing of opex and divestments negatively impacted our performance in the fourth
quarter. We are transforming the company to a flexible organization that is capable to have faster time-tomarket, and to bring innovation faster to our customers. Furthermore, we streamlined our organization
through the disposal of several non-core assets and through ongoing simplification and digitalization of our
company and processes. Our strong and disciplined cost control resulted in € 38 million net indirect opex
savings in the quarter, totaling € 141 million in 2019, positioning us well to deliver on our 2019 – 2021
savings program.
KPN is active in a highly competitive environment within an evolving landscape, which is reflected in lower
net adds in Consumer and some pressure in mobile. On the other hand, solid Wholesale performance
contributed to our strong position in the Netherlands.
We are accelerating roll out of fiber and added 50k households in Q4 2019, totaling 120k in 2019. It requires
us to step up construction capacity and ramp up projects to further accelerate the fiber roll out to reach our
ambition of 1 million additional households by the end of 2021. We position ourselves to become the
undisputed quality leader in the Netherlands, which is the foundation of our strategy focused on driving
organic sustainable growth.
In all, I am pleased with the overall progress made in 2019 and that we are recognized as one of the most
sustainable telecom operators worldwide by several leading benchmarks. Together with our skilled and
highly engaged employees we are committed to continue to execute and deliver on our strategy in 2020.”
Outlook
Outlook is based on composition of the Group as per 31 December 2019, also taking into account thecompletion of the sale of KPN Consulting, which is planned in Q1 2020.
Outlook is based on comparable basis corrected for divestments. The historical comparable basis figures are based on management estimates and are not audited.
Outlook 2020 2019 – 2021 ambitions
Adjusted EBITDA AL Stable to slightly growing
compared to 2019*
Organic growth
Capex € 1.1bn Stable at € 1.1bn annually
FCF
(excl. TEFD dividend)
At least mid-single digit percentage
growth compared to 2019**
Three-year mid-single digit CAGR***
Regular DPS € 13.0 cents Progressive dividend, supported by FCF
* FY 2019 Adjusted EBITDA AL of € 2,287m, corrected for divestments. This is € 30m lower compared to € 2,317m as reported for FY 2019
** FY 2019 FCF (excl. TEFD dividend) of € 718m, corrected for divestments. This is € 8m lower compared to € 726m as reported for FY 2019
*** Three-year CAGR calculated from the end of 2018 to the end of 2021, based on FY 2018 FCF of € 772m, corrected for divestments. This is € 23m lower
compared to € 795m as reported for FY 2018


Shareholder remuneration and financial profile
KPN intends to pay a regular dividend per share of € 12.5 cents in respect of 2019. The final regular dividend
of € 8.3 cents per share is subject to shareholder approval at the Annual General Meeting of Shareholders
on 15 April 2020. The provisional ex-dividend date is 17 April 2020 and the provisional payment date is 22 April 2020.
Today, KPN announces its intention to redeem the outstanding £ 400m hybrid bond with a 6.875% coupon at its first call date (14 March 2020) in accordance with the terms and conditions of this security. Theinstrument was already refinanced by the issuance of a new € 500m perpetual hybrid bond with a coupon of 2.0% in November 2019. Through this refinancing KPN will significantly lower the costs of its outstanding hybrid capital while maintaining a similar level of equity credit.
KPN remains committed to an investment grade credit profile and aims for a leverage ratio of <2.5x in the medium-term (Q4 2019: 2.2x). KPN has a credit rating of BBB with a stable outlook from Standard & Poor’s and Fitch Ratings, and Baa3 with a stable outlook from Moody’s.

see & read more on
https://ir.kpn.com/download/companies/koninkpnnv/Results/KPN_Q4_2019_Press_release.pdf

tijd 09.05
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