Royal KPN N.V. — Earnings Release 2011

Apr 21, 2011

First Quarter Results 2011

21 April 2011

Safe harbor

Non-GAAP measures and management estimates

This financial report contains a number of non-GAAP figures, such as EBITDA and free cash flow. These non-GAAP figures should not be viewed as a substitute for KPN's GAAP figures.

KPN defines EBITDA as operating result before depreciation and impairments of PP&E and amortization and impairments of intangible assets. Note that KPN's definition of EBITDA deviates from the literal definition of earnings before interest, taxes, depreciation and amortization and should not be considered in isolation or as a substitute for analyses of the results as reported under IFRS. In the net debt/EBITDA ratio, KPN defines EBITDA as a 12 month rolling average excluding book gains, release of pension provisions and restructuring costs, when over EUR 20m. Free cash flow is defined as cash flow from operating activities plus proceeds from real estate, minus capital expenditures (Capex), being expenditures on PP&E and software and excluding tax recapture regarding E-Plus.

The term service revenues refers to wireless service revenues.

All market share information in this financial report is based on management estimates based on externally available information, unless indicated otherwise. For a full overview on KPN's non-financial information, reference is made to KPN's quarterly factsheets available on www.kpn.com/ir.

Forward-looking statements

Certain statements contained in this financial report constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the impact of regulatory initiatives on KPN's operations, KPN's and its joint ventures' share of new and existing markets, general industry and macro-economic trends and KPN's performance relative thereto and statements preceded by, followed by or including the words "believes", "expects", "anticipates" or similar expressions.

These forward-looking statements rely on a number of assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside KPN's control that could cause actual results to differ materially from such statements. A number of these factors are described (not exhaustively) in the Annual Report 2010.

Agenda

C h i 's i a r m a n r e e v w	E l B l k e c o o
G f i i l i r o u p n a n c a r e v e w	C l S i N l i t t a r a m s u s e n g -
i i G l t r o p o p e r a o n a r e e u v w	E l B l k e c o o
C l d i k o n c u n g r e m a r s	E l B l k e c o o

EBITDA outlook adjustment, free cash flow confirmed

Revenues in the Netherlands lower than expected, new strategy accelerated

• •Lower than expected revenues in the Netherlands
• • New strategy and related investment plans accelerated to strengthen the Dutch businesses
• •Germany firmly on track with profitable growth, despite MTA reductions
• • 2011 EBITDA outlook adjusted downwards, free cash flow outlook is confirmed partly due to cash contribution tax facility
• • KPN confirms dividend proposal of ≥ € 0.85 and € 1bn share repurchase program for 2011

Q1 trends affecting the Netherlands

Revenues in the Netherlands lower than expected

	T d r e n s	I t m p a c
C o n s u m e r k t m a r e	f H i h t t i t h l d i t g p e n e r a o n o s m a r p o n e s e a n g o • f 'a ' i i i i l n c r e a s n g u s a g e o n e w p p s n w r e e s s N 'a ' l i i l d b i i f t t t t t e w p p s r e s u n g n a c c e e r a e s u s u o n o • S M S d i b d t a n v o c e y a a C b d l i i d f l l i d t t t t t t u r r e n u n e s n o p o s o n e o u y m o n e z e a a • t h s a g e g r o u w	S M S d i d a n o c e r e e n e s o n v v u w • S i i f i t l l S M S g n c a n y e s s u s a g e – D d t i d b d l e c r e a s e o u s e u n e – l l i c a n g
B i u s n e s s k t m a r e	I i i i i i i k t t t n c r e a s n g p r c n g p r e s s u r e n c o m p e v e m a r e • C i d i l i i t t t o n n u e r a o n a z a o n • A l d i i i i h l t t t t c c e e r a e m g r a o n o n e w s e r v c e s w o w e r • i m a r g n	L i o e r s e r c e r e e n e s w v v u • f H i h i t d i t i l i d g m a r g n r a o n a x e • l i i i d t n e s e r v c e s m p a c e
C t o s d i t r e c o n s u	C d i i f f i i f f d l i i t t t t t o s r e u c o n s n s u c e n o o s e e c n e n • t f M T A i t r e v e n u e s o n o p o s e v e r e m p a c	L d i t t o w e r c o s r e u c o n s •

	S h t t i l t i i l t d i t d t i f b d l l d o r e r m c o m m e r c a a c o n s m p e m e n e n r o u c o n o n e w u n e s p a n n e • ,
K i t e y a c o n s	P t f l i d j t t i D t h T l i l o r o o a s m e n s n c e c o r e e s s u u w •
	M t d t t i t f l i i t h l o e o a a- c e n r c p o r o o n e o n g r n v u •

Accelerate implementation new strategy

Acting on key trends through short term actions and accelerated investments

	K e y a r e a s	i K t e y a c o n s
S h t t r e n g e n b i u s n e s s	A l t i t t t c c e e r a e n e s m e n s o v • h D h T l b i t t t s r e n g e n u c e c o u s n e s s N 1 0 M I t t t e w s r a e g y o n a y n v e s o r • D a y	E h k i i C t t n a n c e m a r e p o s o n o n s u m e r • i l d B i i l i w r e e s s a n u s n e s s w r e n e I b d b d d T V k h t m p r o v e r o a a n a n m a r e s a r e • E d d i t i b t i b i l i t d x p a n s r u o n c a p a y a n • S d V D L t k p g r a e n e o r u w
L t o e r c o s w b a s e	F t h d t i i F T E r e r r e c o n n u u • S f f i l i i t i m p c a o n o p r o c e s s e s •	F T E d t i i 2 0 1 1 2 0 1 5 r e c o n p r o g r a m n u • - f f i d l t i t i d p e r o a r g e r p a r a o s o r c n g a n o v u u , h i s o r n g 4 0 0 0 0 0 0 F T E d 2 0 2 % f 5 5 a r o u n o • - - , , , h k f i h N h l d t t t e w o r o r c e n e e e r a n s M l t i- i t i t t t l i e a r r e o r g a n a o n c o s s o a n g u y z • € d 2 5 0 3 0 0 a r o n m u -

Outlook

EBITDA outlook adjusted, free cash flow confirmed

	P i l k 2 0 1 1 t r e o s o o o v u u	R i d l k t e s e o o o v u
E B I T D A	1 G t h r o w	2 € 3 5 b > n
C a p e x	€ 2 b < n	€ 2 b < n
F h r e e c a s 3 f l o w	4 G h t r o w	4 G h t r o w
D i i d d v e n p e r h s a r e	€ 0 8 A t l t 5 e a s	€ 0 8 A t l t 5 e a s

	R i d l k 2 0 1 1 t e v s e o u o o
	€ 3 b 5 > n
	G h t r o w

• •EBITDA outlook lowered to more than € 5.3bn
• •2011 free cash flow supported by cash contribution resulting from tax facilities

• •Confirm dividend proposal of at least € 0.85 and € 1bn share repurchase program for 2011

• 2 Excluding 2011 part of reorganisation costs

• 3 Free cash flow defined as cash flow from operating activities, plus proceeds from real estate, minus Capex and excluding tax recapture at E-Plus
• 4 "Growth" defined as growth compared to 2010 free cash flow, set on 26 January 2010 (free cash flow in 2010 was EUR 2,428m)

¹ "Growth" defined as growth compared to 2010 EBITDA, set on 26 January 2010 (EBITDA in 2010 was EUR 5,476m)

Agenda

C h i 's i a r m a n r e v e w	E l B l k e c o o
G f i i l i r o p n a n c a r e e u v w	C l S i N l i t t a r a m s s e n g u -
G i l i t r o p o p e r a o n a r e e u v w	E l B l k e c o o
C l d i k o n c u n g r e m a r s	E l B l k e c o o

Group results Q1 '11

€ m	Q 1 '1 1	Q 1 '1 0	%
R d h i t e v e n u e s a n o e r n c o m e	3, 2 3 5	3, 2 7 7	-1 3 %
O i t p e r a n g e x p e n s e s	2, 5 2 3	2, 4 8 4	1. 6 %
1 f h i h D i t i o c e p r e c a o n w –	3 4 7	3 4 8	-0 3 %
1 f h i h A t i t i o w c m o r z a o n –	2 1 0	1 8 2	1 % 5
i f i O t t p e r a n g p r o	7 1 2	7 9 3	-1 0 %
/ F i i l i n a n c a n c o m e e p e n s e x	-1 5 5	-1 9 2	-1 9 %
S h f f i f i t t a r e o p r o o a s s o c a e s	1	-1 0	n. m
P f i b f t t r o e o r e a x e s	5 5 8	5 9 1	6 % -5
T a x e s	3 3	-1 4 2	n. m
f i f P t t t r o a e r a x e s	5 9 1	4 4 9	3 2 %
3 E i h a r n n g s p e r s a r e	0. 3 9	0. 2 8	3 9 %
4 E B I T D A	1, 2 6 9	1, 3 2 3	-4 1 %

Lower revenues and other income

•

• –Regulatory impact of € 122m (3.7%)
• –Net positive incidentals of € 2m
• • EBITDA down € 54m; operating profit down 10%
• – Regulatory impact of € 51m (3.9% impact on EBITDA)
• –Net positive incidentals of € 15m²
• – Higher amortization of licenses and software (€ 28m)
• • Profit after taxes € 591m, up 32% y-on-y
• –Lower interest charges
• – Positive impact in Dutch tax position from fiscal facilities stimulating innovation (€ 150m)5

1 Including impairments, if any

• 2 Net incidentals include the impact of one-offs and the impact of disposed / acquired businesses netted by the Q1 '10 impact of these items
• 3 Defined as profit after taxes per ordinary share / ADS on a non-diluted basis (in €)
• 4 Defined as operating profit plus depreciation, amortization & impairments
• 5 Related to the period 2007 2010

Group cash flow Q1 '11

Free cash flow follows regular seasonal pattern

€ m	Q 1 '1 1	Q 1 '1 0	%
i f i O t t p e r a n g p r o	7 1 2	7 9 3	1 0 % -
1 D i t i d t i t i e p r e c a o n a n a m o r z a o n	5 5 7	5 3 0	5. 1 %
/ I t t i d i d n e r e s p a r e c e v e	2 5 6 -	2 5 9 -	1. 2 % -
/ T i d i d a x p a r e c e v e	1 1 5 -	5 5 4 -	-7 9 %
C h i i i a n g e n p r o v s o n s	1 2 0 -	8 4 -	4 3 %
2 C h i k i i l t a n g e n w o r n g c a p a	2 9 7 -	1 9 8 -	4 1 %
O h t t e r m o v e m e n s	3 4 -	1	n. m
N h f l f i t t e c a s o w r o m o p e r a n g i i i t t a c v e s	4 6 5	2 2 9	1 0 0 % >
3 C a p e x	3 8 2	3 3 5	1 4 %
f P d l t t r o c e e s r o m r e a e s a e	4 7	7	1 0 0 % >
T t E P l a x r e c a p u r e u s -	6 1	3 2 7	8 1 % -
4 F h f l r e e c a s o w	1 9 1	2 2 8	1 6 % -
D i i d d i d v e n p a	-	-	n. m
S h h a r e r e p u r c a s e s	1 7 8	1 0 1	6 % 7
C h h h l d t t a s r e u r n o s a r e o e r s	1 7 8	1 0 1	7 6 %

1 Including impairments, if any

2 Excluding changes in deferred taxes

3 Including Property, Plant & Equipment and software

4 Defined as net cash flow from operating activities, plus proceeds from real estate, minus Capex and excluding tax recapture E-Plus

• • Free cash flow of € 191m in Q1 '11, down 16% y-on-y
• € 54m lower EBITDA
• € 81m lower working capital improvements due to strong Q1 '10
• € 36m higher change in provisions
• € 47m higher Capex

partly offset by:

•

•

• € 173m lower tax payments due to monthly tax payments in 2011 while full year tax prepayment in Q1' 10
• € 178m shareholder returns
• 24% of share repurchase program completed to date
• Average coverage ratio of KPN pension funds at 109% end Q1 '11
• Q1 '11 recovery payment of € 11m
• Q2 '11 recovery payment of € 19m
• No additional recovery payments as long as coverage ratio above 105%

Group financial profile

Solid financial profile with Net debt / EBITDA well within target range

1 Based on 12 months rolling EBITDA excluding book gains/losses, release of pension provisions and restructuring costs, all over € 20m

C i i h 's a r m a n r e e v w	E l B l k e c o o
G f i i l i r o u p n a n c a r e v e w	C S l i N l i t t a r a m s u s e n g -
G i l i t r o p o p e r a o n a r e e u v w	E l B l k e c o o
	I i l t t n e r n a o n a
	T h N h l d t e e e r a n s
C i l d k o n c n g r e m a r s u	E l B l k e c o o

Financial review - Mobile International

Service revenue growth and good profitability despite severe MTA impact

Financial review - Mobile International by segment

Continued underlying growth in all segments, severe regulatory impact

1 Including fixed Belgian B2B and Carrier business, including the fiber network; divested per 31 March 2010

2 Normalized EBITDA margin, excluding one-off release of € 11m

3 External revenues

Operating review - Germany

Underlying service revenue growth accelerating, 7.9% y-on-y in Q1

competitors

1 Management estimates, based on service revenues

2 Former part of SNT Germany

•	H i h b f i d d d ( 1 1 9 k ) t t g n u m e r o p o s p a n e a s R i l f d i h l t t e g o n a o c u s a n s r o n g c a p v e c a n n e – f p e r o r m a n c e 'M S f D i b i B A E ' r e n e n p e r o r m a n c e v y –
•	L h f h i h d d t i t i i t h a u n c o g s p e e a a p r o p o s o n s n a n o e r 1 2 b i t t l 2 1 b l i r a n a r e a s n o a r a n a r e a s e u ; u v T k f d t b d l i 3 8 % f 'M i a e- u p o a a u n e s e n c o u r a g n g, o e n ~ – S ' B A E d d t k d t b d l a s a e a a n e u
•	S % i t h 1. 0 e r c e r e e n e g r o -o n- v v u w y y , N t i l i t d b M T A ( € 5 3 ) d i e g a v e y m p a c e y m a n r o a m n g – 2 ( ( € 3 ), € 1 0 ) i t i l i t d b M l t i t m p o s e m p a c e c o n n e c m v y y u
•	f % U d l i i t h 7 9 n e r n g s e r c e r e e n e g r o o -o n- y v v u w y y
•	S l i h t k t h i t d g m a r e s a r e n c r e a s e e x p e c e y -o n- y 1 2 % t 5 o
	R l i l h i h i f l i d t t t t e a e g m p a c r o m r e g a o n c o m p a r e o v y u –

Operating review - Belgium1

Strong underlying growth of 8.1%, service revenues impacted by regulation

1 Wireless services only

2 Management estimates

Operating review - iBasis

Focus on balancing revenue growth with profitability

1 Excluding currency effect

C h i 's i a r m a n r e v e w	E l B l k e c o o
f G i i l i r o p n a n c a r e e u v w	C S l i N l i t t a r a m s s e n g u -
G i l i t r o u p o p e r a o n a r e v e w	E l B l k e c o o
	i I l t t n e r n a o n a
	T h N h l d t e e e r a n s
C l d i k o n c n g r e m a r s u	E l B l k e c o o

Financial review - Dutch Telco

• • Revenues and other income down 3.1% y-on-y
• Regulatory impact of € 44m (2.5%)
• € 22m net positive impact from incidentals
• Lower wireless service revenues from changing customer behavior
• Continued decline in traditional businesses
• Partly offset by higher hardware sales
• • EBITDA down 2.2% y-on-y
• Regulatory impact of € 9m (1.0%)
• € 13m net positive impact from incidentals
• Cost reductions not sufficient to fully offset impact from changing customer behavior

Financial review - Dutch Telco by segment

1 EBITDA margin excluding mobile towers sale; € 37m in Q3 '10 and € 33m in Q1 '11

Operating review - Consumer wireless1

Service revenues impacted by regulation and changing customer behavior

1 Excluding Mobile Wholesale NL

Operating review - Consumer wireless1 (cont'd)

Smartphones and new 'apps' leading to changing customer behavior

Changing industry trends Mitigating measures

• • High smartphone and data penetration
• 42% of postpaid customers2 have smartphone³
• 51% of postpaid customers2 have a data product
• • Smartphones and new 'apps' change customer behavior
• New 'apps' on smartphones driving SMS and voice to data substitution
• Early adopters show high smartphone penetration, strong data usage growth and substantially less SMS usage

• Changing customer behavior negatively impacting SMS and voice revenues

• Commercial actions put in place to mitigate service revenue impact
• −Personalized ARPU optimization programs
• −Adjusted SAC steering
• −Reduced discounts on data
• • Significant portfolio adjustments planned to monetize on data usage growth
• Optimize value per customer
• Introduce new forms of data pricing
• Integrated voice / SMS / data bundles
• Leading the market by expanding volume based data pricing
• • Move from a voice to a data centric portfolio
• − Quality of service and speed as differentiator

¹ Excluding Mobile Wholesale NL

² Consumer postpaid customers exclude SIM only. Q1 '11 based on January and February data only

³ Smartphone definition based on GfK

Operating review - Consumer wireline

1 Source: Telecompaper, total broadband market including fiber adjusted upwards in Q4 due to better insights

2 Source: Telecompaper, management estimates for Q1 '11

3 Quarterly delta in PSTN/ISDN access lines + delta Consumer VoIP, ADSL Only and delta Consumer Fiber

4 Q4 '10 line loss of 50k includes 15k clean up

Operating review - Consumer wireline (cont'd)

Continued growth in TV market share, broadband customer base stable

• • Continued growth in IPTV
• IPTV adds of ~5k per week in Q1
• ~50% new subs are new broadband customers, ~75% take a triple play package
• • Relatively stable Digitenne base and ~58k IPTV net adds lead to increasing TV market share

1 Digitenne used as primary TV connection

2 Including FttH IPTV

Operating review - Business wireless

Lower voice revenues partly offset by data growth

1 Restated numbers due to inclusion of managed M2M subscribers; Business wireless figures do not include 'Yes Telecom'

Operating review - Business wireline

Continued pressure on traditional services

1 Revenues for Voice & Internet wireline and Data network services; restated due to transfer of 'Station to Station' and 'Narrowcasting' to 'Other revenues'

Operating review - Getronics

Relatively stable market position in challenging market

1 Management estimate

Agenda

C l d i k o n c n g r e m a r s u	E l B l k e c o o
G i l i t r o p o p e r a o n a r e e u v w	E l B l k e c o o
G f i i l i r o u p n a n c a r e v e w	C S l i N l i t t a r a m s u s e n g -
C i i h 's a r m a n r e e v w	E l B l k e c o o

Concluding remarks

• •Lower than expected revenues in the Netherlands
• • New strategy and related investment plans accelerated to strengthen the Dutch businesses
• • Germany firmly on track with profitable growth, despite MTA reductions
• • 2011 EBITDA outlook adjusted downwards, free cash flow outlook is confirmed partly due to cash contribution tax facility
• • KPN confirms dividend proposal of ^≥ € 0.85 and € 1bn share repurchase program for 2011

Q&A

Annex

For further information please contact KPN Investor Relations

Tel: +31 70 44 60986

Fax: +31 70 44 60593

ir@kpn.com

www.kpn.com/ir

Analysis of results

Key items worth mentioning in results interpretation

€ m		Q 1 '1 1	Q 1 '1 0
R f f t e v e n u e e e c
M T A i f f d i t t a r r e u c o n	G r o u p	-1 1 8	-5 5
R i t i f f d t i o a m n g a r r e u c o n	G r o u p	-4	-1 5
f f E B I T D A t e e c
M T A i f f d i t t a r r e u c o n	G r o u p	0 -5	-2 0
R i i f f d i t t o a m n g a r r e u c o n	G r o u p	-1	-1 3
R t t i h e s r u c u r n g c a r g e s	G r o u p	-9	-7
R l f i i e e a s e o p r o v s o n s	G r o u p	1 0	-
R & E B I T D A f f t e v e n u e e e c
B k i l f l t t o o g a n o n s a e o r e a e s a e	W & O	3 3	2
W h l l i o e s a e p r c e c a p	O W &	-	4
R l f d f d i f t e e a s e o e e r r e c o n n e c o n e e s	B i u s n e s s	-3	1 9
B k i l f b i o o g a n o n s a e o u s n e s s	G i t e r o n c s	5	-

Restructuring charges

€ m	Q 1 '1 1	Q 1 '1 0
G e r m a n y B l i e g u m R t f W l d e s o o r	- - -	- - -
M b i l I i l t t o e n e r n a o n a	-	-
C o n s u m e r	-	1 -
B i u s n e s s W h l l & O i t o e s a e p e r a o n s	- -	- 3 -
I T N L D h T l t	-	- 4
u c e c o	-	-
G t i e r o n c s	5 -	-
T h N h l d t e e e r a n s	5 -	4 -
O h t e r	4 -	3 -
K P N G r o p u	9 -	7 -

Regulation

MTA reductions and upcoming spectrum auctions

	€ m	2 0 1 0	2 0 1 1 E	2 0 1 2 E
M T A i G t m p a c o n r o p u	R e v e n u e s	1 8 0	5 0 0 ~	1 2 5 ~
& E B I T D A r e e n e s v u	E B I T D A	6 2	2 0 0 ~	5 0 ~

Impact MTA reduction

€ m	Q 1 '1 1 R E B I T D A e v e n u e s 5 3 2 7 - - 2 1 1 4 - - 7 4 4 1 - - 1 9 6 - -
G e r m a n y
B l i e g u m
M b i l I i l t t o e n e r n a o n a
C o n s u m e r O f h i h M b i l W h l l w c o e o e s a e : B i u s n e s s W h l l & O t i o e s a e p e r a o n s I t n e r c o m p a n y	- 1 7 - 1 2 - 4	- 2 - 1 - -
T h N h l d t e e e r a n s	4 4 -	9 -
K P N G r o u p	1 1 8 -	5 0 -

Operating expenses

€ m	Q 1 '1 1	Q 1 '1 0	%
S l i d i l i t t i b t i a a r e s a n s o c a s e c u r y c o n r u o n s	4 7 7	5 0 6	% -5 7
C t f t i l o s o m a e r a s	2 5 8	2 0 5	2 6 %
W k t t d t d t h o r c o n r a c e o u a n o e r e x p e n s e s	1, 1 0 6	1, 1 1 6	0. 9 % -
O k i l i d t n o r c a p a e w w z	2 9 -	2 4 -	2 1 % -
O t h t i e r o p e r a n g e x p e n s e s	1 5 4	1 5 1	2 0 %
1 D i i t e p r e c a o n	3 4 7	3 4 8	0. 3 % -
1 A i i t t m o r a o n z	2 1 0	1 8 2	1 5 %
T l t o a	2, 5 2 3	2, 4 8 4	1. 6 %

1 Including impairments, if any

Operating expenses - analysis

Salaries and social security contributions & Cost of materials

Y-on-Y decrease

• •Reduction of own personnel at all segments
• •Release of pension provision at Getronics in Q1 '11

Q-on-Q increase

•Q4 '10 positively influenced by release of provisions

Y-on-Y increase

• Higher cost of goods sold due to increased smartphone sales

Q-on-Q decrease

• In Q4 '10 more sales related product costs at Getronics

Analysis operating expenses

Work contracted out & Other

Y-on-Y decrease

• • Higher traffic costs relating to higher external revenues at iBasis
• • Offset by
• Lower SAC related distribution costs in the Netherlands
• –Lower traffic costs due to regulatory tariff cuts

Q-on-Q decrease

• •Lower traffic costs due to regulatory tariff cuts
• • Lower SAC related distribution costs in the Netherlands

Y-on-Y increase

• •Higher restructuring costs
• • Partially offset by lower marketing spend Mobile International

Q-on-Q decrease

•Lower marketing spend Mobile International

Analysis operating expenses

Depreciation & Amortization

1 Including impairments, if any

Q-on-Q decrease

• Smaller asset base across all segments, lowering deprecation costs

Y-on-Y increase

• • Higher amortization due to new spectrum licenses in Germany and in the Netherlands
• •Amortization of software licenses

Q-on-Q decrease

• •Impairment IT platforms in Q4 '10
• • Lower amortization of software due to smaller asset base

Personnel

• • Decrease of 1,669 FTE y-on-y
• Reduction of 723 FTE in the Netherlands (excl. Getronics) from all segments
• Reduction of 953 FTE at Getronics, mainly from restructuring
• FTE at KPN abroad flat

•Decrease of 65 FTE q-on-q

• Decrease of 14 FTE in the Netherlands
• Reduction of 199 FTE at Getronics domestic
• Reduction offset by
• • Increase in FTE at Mobile International due to more shops
• •Increase at customer services for E-Plus

Tax

	P	& L	C a s	h f l o w
F i l i t s c a n s u ( € ) m	Q 1 '1 1	Q 1 '1 0	Q 1 '1 1	Q 1 '1 0
D h i i i t t t u c a c v e s	6 3	1 0 9 -	1 0 8 -	4 9 5 -
G t i e r o n c s	6	1	2 -	2 -
G M b i l t i i t i e r m a n o e a c e s v	2 9 -	2 3 -	4 -	1 -
B l i M b i l t i i t i e g a n o e a c v e s	7 -	9 -	-	-
O h t e r	-	2 -	1 -	2 -
T l t o a	3 3	1 4 2 -	5 1 1 -	5 5 4 -

• •Preliminary tax assessment 2010 fully prepaid in Q1 2010
• • Q1 2011 includes a one-off P&L gain due to 'Innovation-box' of € 150m
• Amounts are estimates, no final agreement with tax authorities yet
• • Effective tax rate, excluding one-off gain 'Innovation-box' is 20.9% in Q1 '11 (Q1 '10: 23.8%)
• Full year effective tax rate, including 'Innovation-box', expected to be around 21%

Share repurchase program progress

1 D t a e	( € ) V l a u e m	S ( ) h a r e s m	( € ) A h i v g s a r e p r c e
J a n u a r y	-	-	-
F b e r u a r y	3 0. 4	2. 6	1 1. 7 1
M h a r c	1 4 8. 0	1 2. 6	1 1. 7 1
Q '1 1 1	1 7 8. 4	5. 1 2	1 1. 7 1
A i l p r	5 8. 9	5. 0	1 1. 8 2
T l t o a	2 3 7. 3	2 0. 2	1 1. 7 4

• € 1bn share repurchase program for 2011 started on 21 February 2011
• ~24% completed to date
• € 9.0bn in shares repurchased since start in 2004, average price of € 9.18 ~39% of outstanding shares cancelled since 2004
• • Number of outstanding shares amounting to 1,528,251,409 per 31 March 2011
• 44,358,475 shares cancelled in Q1 '11

1 Figures based on transaction date of share repurchases, some rounding changes may be applicable

Debt portfolio

Breakdown of € 12.8bn gross debt1

1 Book value of interest bearing financial liabilities plus the fair value of financial instruments (excluding Reggefiber) related to these financial liabilities

2 Foreign currency amounts hedged into Euro

Dutch wireless services disclosure

	Q 1 '1 1	Q 4 '1 0	Q 1 '1 0
S ic ( € ) e rv e re ve nu e s m Co ns um er − Bu in s es s − O he D h iv i ie 1 t tc t t r u ac s −	6 9 8 3 9 9 2 3 0 6 9	7 3 5 4 3 0 2 3 6 6 9	7 4 0 4 3 4 2 4 8 5 8
S A C / S R C ( € ) Co ns um er − Bu in 2 s es s −	1 4 6 2 2 5	1 6 8 2 3 4	1 8 3 2 5 5

Indicates amongst others Mobile Wholesale NL, Simyo and visitor roaming revenues within KPN the Netherlands

Restated numbers following recalculation, now also including all data SAC/SRC in addition to voice SAC/SRC

Infrastructure

Deploying mix of technologies going forward

1 Optical distribution frame

Unbundling tariffs

in in U bu d l k t n tw n n g c u rr e n e o r	C t a e g o r y	M h l i f f t t o n a r y
	1 ( ) L ine ha ing L L U s r	€ / 0. 1 0 l ine
M D F de K No S D F loc ion P N / Te lco t co a	1 ( ) Fu l ly bu d le d L L U un n	€ / 6. 5 3 l ine
	1 M D F loc t ion co a	€ 8 3 9. 6 0 / fo tp in t / y o r ea r
~2 8, 0 0 0 1, 3 5 0 loc l e ha a xc ng es	M D F ba k ha l c u	Co ia l p ic ing t r la te d m m er c r no eg u ,
les le Br d ba d Ac Co ke t a oa n ce ss ns um er m ar ( i f fs la d ) ta t r te r no u	W ho les le Br d ba d a oa n Ac ( W B A ) ce ss	€ 5. 3 2 ha d s re € 1 3. 0 0 ha d no n- s re
eg in in C U bu d l k F tw t t n n g n e o r	C t a e g o r y	M h l i f f t t o n a r y
	1 L ine ha ing ( S L U ) s r	€ 7. 5 8 / l ine
S D F No de M D F	1 Fu l ly bu d le d ( S L U ) un n	€ 7. 4 4 / l ine
loc t ion K P N / Te lco co a ~2 8, 0 0 0 ~2 0 0	1 S D F loc t ion co a	€ 1. 2 0 / l ine 5. 3 6 / p i t o r er u n O f f € / p 4 9 2. 7 4 i t ne -o er u n
	S D F ba k ha l c u	To be la te d re g u
le Br d ba d Ac Co ke ( W B A ) t oa n ce ss ns um er m ar ( ) i f fs la d ta t r te r no eg u	W ho les le Br d ba d a oa n Ac ( W B A ) ce ss	€ 5. 3 2 ha d s re € 1 3. 0 0 ha d no n- s re
U bu d l in in k F H tw t t n n g n e o r	C t a e g o r y	i f f M h l t t o n y a r
	Fu l ly bu d le d ( O D F F t t H ) un n	€ 1 2. 3 0 – € 1 7. 9 4
No de O D F C i Po P ty K P N / Te lco	O D F F t t H loc t ion co a	€ 1 2 / m h /p Ar Po 5 t ≤ on er ea p O f f € 3, 0 7 5 /p Ar Po ≤ ne -o er ea p
~3 5 0 0	O D F F t t H Ba k ha l c u	/ m 6 1 5 t h ≤ on
,	W ho les le Br d ba d a oa n Ac ( W B A ) F t t H ce ss	€ 2 5. 0 0 € 4 5. 0 0 ha d no n- s re -

To be regulated

ODF FttO

1) Tariffs refer to WPC 2009-2011 |(WPC 2A), changes in tariffs expected as from 1 July 2011

German spectrum auction

Good auction outcome, capacity and standardization are key

															T l t o a	E P l s u -
	O	O	V	V	T	T
8 0 0 M Hz Pa ire d	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5									6 0. 0 M H z	0 %
M Hz	E	O	T	V	T	V
9 0 0 Pa ire d	2x 5	2x 5	2x 5	2x 5	2x 7.4	2x 7.4									6 9. 6 M H z	1 4 %	Standardized
Hz Pa ire d 1. 8 G	T	T	T	T	E	O	O	O	V	E	E	E	E		1 4 0. 4 M H	3 9 %
	5 2x	5 2x	5 2x	5 2x	5 2x	5 2x	5 2x	2x 7.4	5.4 2x	5 2x	5 2x	5 2x	2x 7.4		z
2. 1 G Hz Pa ire d	V	V	V	E	E	E	E	O	O	O	T	T			1 2 0. 0 M H	3 3 %
	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5			z
ire 2. 1 G Hz U d a	E	T	V	O	O			1							3 2 4. M H	1 5 %	2
np	1x 5	1x 5	1x 5	1x 5	1x 14	.2									z
G Hz Pa ire d 2. 6	V	V	V	V	T	T	T	T	E	E	O	O	O	O	1 4 0. 0 M H	1 4 %
	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	2x 5	z
2. 6 G Hz U ire d a	E	E	V	V	V	V	V	T	O	O					0. 0 M H 5 z	2 0 %
np	5 1x	5 1x	5 1x	5 1x	5 1x	5 1x	5 1x	5 1x	5 1x	5 1x
															6 1 4. 2 M H z	2 3 %	3

• 14 connecting blocks, leading to highest capacity in most standard spectrum for data
• 2E-Plus has obtained and holds most spectrum in standardized bands
• 3E-Plus doubled capacity, now at 23% of total spectrum in the German mobile market

E: E-Plus, O: O2, T: T-Mobile, V: Vodafone, colors indicate acquired spectrum

Spectrum in Belgium

Currently fairly allocated, potential new entrant

C t u r r e n t t s a u s	9 0 0 M H z G H 1. 8 z G H 2. 1 z 2. 6 G H z	K P Ng B 2x 1 0. 8 K P 2x K P Ng 2x 1 5	Pr im ox us 2x 1 2 Ng B 2 2 B 1x 5	Mo b is ta r 2x 1 2 Pr im ox us 2x 1 5 Pr im ox us 2x 1 5		Mo b is ta r 2x 1 5	Pr ox 2x 5. 8	Mo b 2x 5. 8	Fr ee 2x 1 1. 4
							Mo b is Fr ta r ee
					1x 5	2x 1 5	1x 5		2x 1 4. 8	1x 5
					Fr	ee
			1 ire ire 1 4 0 M Hz d, 5 0 M Hz d p a u np a
		K P	Ng B	Pr ox	im us		Mo b is Fr ta r ee
	T l t o a	1 0 0.	M Hz	1 0 0. 6	M Hz		1 0 0. 6 M	Hz 2 4 7. 4 M Hz
U i p c o m n g i t a u c o n s	6 f 2 9 6 2 1 G f 6 t h, 2 0 1 1 2 A t i M H i H b d h d l d J u c o n o z n z a n s c e u e o r u n e • th A l l d f t t i l 4 t t r e s e r v e o r p o e n a e n r a n – th C f t t k t i h 4 t t d t b l l t r r e n o p e r a o r s c a n a s o r a c o n e n e n r a n o e s n o a s p e c r m u u w u y u – 9 0 0 1. 8 G 2 0 1 N t t b M H d H i 5, b t l d t h d i t i t h t e e n r a n c a n a n n o n n e r e c o n o n a w u y z z u y u – th 4 b f 2. 1 G H i i i t t t t e n r a n u y s p a r o z n c o m n g a u c o n A t i f 1 8 5 M H ( 1 4 0 i d 4 5 i d ) i 2 6 G H b d h d l d f + u c o n o z p a r e u n p a r e n z a n s c e u e o r • O 2 i d t b 2 0 1 1 m c o e r O t d t 4 0 M H ( 2 2 0 ) i i d p e r a o r s c a p p e a z x n p a r e – C G t 2 l i b t d d t i l l 2 0 2 1 r r e n c e n s e s c a n e e e n e u x •

2 On basis of BIPT information submitted March 14th, 2011

Service revenue growth Mobile International

1 Management estimates for market service revenue growth, based on equity research