Building the gigabit society

Eelco Blok

BoR (16) 199

KPN at a glance

NPS +10 for Consumer Mobile in Q2 2016

Revenue(1)

~7 Ebln

Brands

1) KPN Group, 2015

FTEs(1

)

~14 k

Mobile 4G network with 99% geographic and population coverage

World first nationwide LoRa network for Internet of Things

Fixed network with 72% of households with download speeds of 100 Mbps

Mobile

Retail, Wholesale, Business Market

Broadband

Retail, Wholesale, Business Market

Television

Retail

3.8 M

2.2 M

9.5 M customers

99%

72%

99%

2

The Netherlands scores well on Digital Society & Economy

-

0.2

0.4

0.6

0.8

1.0

NL BE LU DK UK

Fixed Broadband Mobile Broadband Speed Affordability

NL has the 2nd highest DESI score in Europe

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Connectivity Human Capital Use of Internet Integration of Digital Technology Digital Public Services

NL leads in connectivity Next Generation Access coverage NL vs EU1

0%

20%

40%

60%

80%

100%

NL EU

Total

Rural

1 2014 data, source: EC presentation on broadband market developments in the EU (June 2015)

1) OpenSignal; The state of LTE (February 2016)

Mainly due to strong connectivity

3

High investments led to best-in-class connectivityFuture connectivity secured by ongoing investment program

Capex /

Sales (%)

40

30

20

10

0

2016201520142013201220112010

Average peer groupKPN

KPN invested more than peers …and continues to build capacity

Investment program 2016

Future investment programs

Technology

FttC/FttH VPlus

Carrier aggregation

800/1800MHz Virtualization

Simplification program

~€ 450m savingsIT processes & networks

4

Staying ahead of demand for mobile data

1 Rebased to LTE 800 sites end 2014

2 Excluding small cells

5

Best fixed access provider

1 Independent market survey (Q4 2015)

6

Ready to upgrade if demand changes

7

Regulate for the future

Regulation should focus on:

• A level playing field regarding network access

• Faster access to and harmonisation of frequency allocation

• Same service, same rules for OTT and telco

8