Second quarter results 2021

Joost Farwerck, CEO, on the results:

“We go all out to connect everyone in the Netherlands to a sustainable future and to create value for all stakeholders. We delivered growth in mass-market service revenues; an important proof point of the success of our strategy and a first step towards sustainable top-line growth for the Group, which showed slight growth as well this quarter. We have further improved the quality of our mobile network, we have improved customer experience, and we’re on track to reach our full-year outlook.

We are building a fiber company and we’re installing fiber at a record pace. During the quarter we’ve passed the milestone of three million fiber connections. Today, almost half of all Dutch households have a fiber connection; the vast majority via KPN. Thanks to the Glaspoort JV, which is now operational, we will be able to further accelerate our ambition and commit to jointly covering approximately 80% of the Netherlands with fiber by the end of 2026. Our mobile network has once again been recognized as the best in the Netherlands with best coverage and fastest 5G. Thanks to the efforts of all colleagues and our investments in the quality and reliability of our digital services, the customer experience and NPS are again improving.

For the first time in four years we’ve seen growth in Consumer mobile service revenues, supported by the strong commercial performance of our Unlimited data proposition. Total mobile net adds in Consumer and Business continued to grow strongly. In SME, our service revenue trend is improving and is on track to stabilize in the second half this year. In Wholesale we see continued strong performance, backed by our open wholesale access policy and several renewed broadband and MVNO agreements. With ESG fully embedded in our strategy and operations, we are contributing to making the Netherlands a better place to live.

While we keep investing to drive future growth and maintain room for value creating growth opportunities, we pay out a progressive dividend that is comfortably covered. The confidence in our strategic plan and successful execution gives us comfort around our multi-year cash generation perspective, enabling us to structurally return additional capital to our shareholders. As a first step, we intend to buy back shares worth 200 million euros this year.”

All documents on the results such as the factsheet and the presentation are available on ir.kpn.com