Royal KPN N.V. — Earnings Release 2014

Feb 4, 2015

KPN Analyst consensus Q4 2014

For further information please contact KPN Investor Relations Phone +31 70 44 60986

ir@kpn.com www.kpn.com/ir

Please note that this analyst consensus is subject to the disclaimer below:

The analyst consensus provided is based on forecasts provided by various leading equity analysts covering the KPN share. The analyst consensusfor the Q4 2014 period and the full fiscal years 2014‐2016 is based on the non‐weighted average of 20 analyst forecasts (vs. 19 in Q3 2014), whilst the full fiscal year 2017 consensusis based on the non‐weighted average of 14 analyst forecasts. The analyst forecasts were submitted to KPN in the period of 15 December 2014 to 6 January 2015.

The analyst consensus does not in any way represent KPN's financial expectations nor can this be considered to be a forward looking statement by KPN. The analyst consensusis provided for information purposes only, for the convenience of our investors. KPN is not responsible and cannot be held liable in any way for the accuracy, completeness or validity of the analyst consensus, nor for the figures, calculations or assumptionsthat have led thereto.

KPN divisional breakdown (EUR m)	Q4 '14	Q4 '14	Q4 '14	Q4 '14	FY '14	FY '14	FY '14	FY '14
Adjusted revenues1	Average Median		High	Low	Average Median		High	Low
Belgium	177	177	186	170	708	708	717	699
Other (incl. eliminations)	11	9	39	6	53	35	114	31
Mobile International	188	187	212	178	762	747	823	734
Consumer Mobile	344	343	354	337	1,399	1,398	1,409	1,392
Consumer Residential	484	483	494	476	1,920	1,919	1,937	1,912
Business	719	719	734	708	2,884	2,884	2,897	2,861
NetCo	559	553	605	533	2,246	2,243	2,284	2,218
Other (incl. eliminations)	-531	-530	-500	-552	-2,119	-2,119	-2,073	-2,141
The Netherlands	1,575	1,571	1,607	1,557	6,330	6,328	6,355	6,301
iBasis	230	229	250	209	930	929	950	909
Other activities	19	19	23	15	84	77	150	72
	-52	-55	-24	-64	-214	-229	-125	-238
Total adjusted revenues from continuing operations1	1,962	1,966	1,993	1,924	7,898	7,903	7,951	7,825
Incidentals from continuing operations	1	0	6	0	22	22	22	22
Total reported revenues from continuing operations	1,966	1,967	1,993	1,942	7,930	7,937	7,971	7,847
Intercompany revenues

¹⁾ Defined as revenues and other income adjusted for incidentals

KPN divisional breakdown (EUR m)	Q4 '14	Q4 '14	Q4 '14	Q4 '14	FY '14	FY '14	FY '14	FY '14
Adjusted EBITDA2	Average Median		High	Low	Average Median		High	Low
Belgium	39	40	45	34	156	156	162	152
Other (incl. eliminations)	-1	0	5	-6	-6	-5	0	-23
Mobile International	39	39	43	34	150	151	154	134
Consumer Mobile	43	42	54	34	195	195	207	187
Consumer Residential	101	101	106	91	414	415	421	406
Business	144	144	153	131	598	600	609	585
NetCo	314	315	329	296	1,222	1,223	1,241	1,202
Other (incl. eliminations)	-5	-6	3	-12	-34	-34	-28	-40
The Netherlands	595	599	623	552	2,396	2,398	2,426	2,355
iBasis	6	6	12	5	24	23	29	20
Other activities	-9	-8	8	-26	-39	-38	-15	-64
Total adjusted EBITDA from continuing operations2	630	633	658	598	2,533	2,541	2,561	2,502
Incidentals and (restructuring costs) from continuing operations	-4	0	10	-25	391	409	430	171
Total reported EBITDA from continuing operations	625	626	653	598	2,924	2,936	2,972	2,732

²⁾ Defined as EBITDA adjusted for restructuring costs and incidentals

KPN consolidated figures (EUR m) P&L items from continuing operations	Q4 '14 Average Median	Q4 '14	Q4 '14 High	Q4 '14 Low	FY '14 Average Median	FY '14	FY '14 High	FY '14 Low
Total operating profit	177	177	244	102	1,151	1,151	1,221	1,076
Total D&A	433	442	520	211	1,778	1,789	1,869	1,558
Depreciation	290	296	338	136	1,208	1,215	1,257	1,055
Amortization	135	140	148	74	562	567	576	502
Profit for the period	-43	-39	111	-212	248	267	387	64
Earnings per share from continuing operations (non-diluted) (in €)	-0.01	-0.01	0.04	-0.05	0.03	0.04	0.09	-0.13
Dividend per share (in €)	0.04	0.05	0.07	0.00	0.07	0.07	0.07	0.02

KPN consolidated figures (EUR m) Free cash flow from continuing operations	Q4 '14 Average Median	Q4 '14	Q4 '14 High	Q4 '14 Low	FY '14 Average Median	FY '14	FY '14 High	FY '14 Low
Net cash flow from continuing operating activities3	289	272	557	58	1,247	1,250	1,516	1,017
Proceeds from real estate from continuing operations	0	0	2	0	1	1	3	0
Capex from continuing operations	-411	-403	-536	-335	-1,346	-1,337	-1,468	-1,265
Of which Belgium	-49	-47	-75	-24	-153	-151	-179	-128
Of which The Netherlands and other	-365	-375	-445	-306	-1,189	-1,191	-1,271	-1,132
Free cash flow from continuing operations4 , excl. TEFD dividend	-149	-131	9	-361	-116	-105	38	-331
Dividends received from Telefónica Deutschland	0	0	0	0	0	0	0	0
Free cash flow from continuing operations4 , incl. TEFD dividend	-149	-131	9	-361	-116	-105	38	-331
Net debt (in bn)	6.70	6.85	7.28	5.63	6.73	6.87	7.28	5.63

3) Net cash flow from operating activities is before deduction of Capex spent and proceeds from real estate

4) Free cash flow is defined as cash flow from operating activities, plus proceeds from real estate, minus Capex and excluding E-Plus tax recapture

KPN divisional breakdown (EUR m)	FY '15	FY '15	FY '15	FY '15	FY '16	FY '16	FY '16	FY '16	FY '17	FY '17	FY '17	FY '17
Adjusted revenues1	Average Median		High	Low	Average Median		High	Low	Average Median		High	Low
Belgium	704	703	730	678	709	711	742	664	709	715	750	658
Other (incl. eliminations)	37	35	72	30	37	35	72	29	37	36	44	30
Mobile International	741	737	800	713	746	747	800	705	746	746	785	699
Consumer Mobile	1,338	1,331	1,451	1,244	1,313	1,308	1,484	1,179	1,289	1,275	1,517	1,147
Consumer Residential	1,926	1,917	2,004	1,867	1,946	1,942	2,056	1,864	1,976	1,959	2,101	1,887
Business	2,745	2,748	2,800	2,644	2,691	2,704	2,788	2,471	2,657	2,667	2,802	2,460
NetCo	2,203	2,201	2,272	2,117	2,165	2,175	2,243	2,039	2,122	2,146	2,216	1,982
Other (incl. eliminations)	-2,077	-2,087	-1,966	-2,140	-2,061	-2,065	-1,945	-2,140	-2,037	-2,038	-1,918	-2,140
The Netherlands	6,135	6,134	6,275	6,053	6,054	6,041	6,290	5,874	6,007	5,983	6,327	5,828
iBasis	914	919	951	818	908	920	954	736	919	918	963	874
Other activities	79	77	144	64	79	76	142	64	78	77	141	60
Intercompany revenues	-207	-222	-115	-270	-206	-220	-114	-275	-193	-214	-113	-278
Total adjusted revenues from continuing operations1	7,669	7,663	7,800	7,534	7,587	7,617	7,838	7,276	7,557	7,550	7,900	7,298
Incidentals from continuing operations	0	0	0	0	0	0	0	0	0	0	0	0
Total reported revenues from continuing operations	7,669	7,663	7,800	7,534	7,587	7,617	7,838	7,276	7,557	7,550	7,900	7,298

1) Defined as revenues and other income adjusted for incidentals

KPN divisional breakdown (EUR m)	FY '15	FY '15	FY '15	FY '15	FY '16	FY '16	FY '16	FY '16	FY '17	FY '17	FY '17	FY '17
Adjusted EBITDA2	Average Median		High	Low	Average Median		High	Low	Average Median		High	Low
Belgium	162	162	173	146	167	168	182	138	170	174	190	131
Other (incl. eliminations)	-3	-4	0	-8	-3	-3	1	-8	-1	0	2	-8
Mobile International	159	160	171	146	164	165	181	138	168	172	190	131
Consumer Mobile	193	190	241	165	193	189	245	145	194	183	237	146
Consumer Residential	419	417	441	399	428	422	468	399	442	438	473	397
Business	549	556	616	434	551	557	641	425	557	559	659	504
NetCo	1,275	1,279	1,308	1,194	1,264	1,264	1,348	1,170	1,232	1,241	1,291	1,158
Other (incl. eliminations)	-27	-27	-11	-48	-26	-24	-12	-48	-27	-25	-20	-48
The Netherlands	2,406	2,418	2,484	2,337	2,409	2,400	2,505	2,311	2,401	2,397	2,545	2,291
iBasis	24	23	32	18	26	25	37	17	26	25	39	17
Other activities	-44	-40	-19	-95	-44	-40	-20	-90	-44	-42	-20	-90
Total adjusted EBITDA from continuing operations2	2,547	2,564	2,601	2,392	2,552	2,556	2,658	2,443	2,550	2,560	2,663	2,438
Incidentals and (restructuring costs) from continuing operations	-26	0	70	-100	-11	0	8	-90	-14	0	0	-90
Total reported EBITDA from continuing operations	2,518	2,515	2,602	2,392	2,535	2,517	2,623	2,443	2,536	2,534	2,663	2,438

²⁾ Defined as EBITDA adjusted for restructuring costs and incidentals

KPN consolidated figures (EUR m) P&L items from continuing operations	FY '15 Average Median	FY '15	FY '15 High	FY '15 Low	FY '16 Average Median	FY '16	FY '16 High	FY '16 Low	FY '17 Average Median	FY '17	FY '17 High	FY '17 Low
Total operating profit	754	753	918	593	810	812	933	669	863	862	994	674
Total D&A	1,758	1,757	1,910	1,660	1,734	1,735	1,829	1,606	1,689	1,702	1,798	1,538
Depreciation	1,215	1,205	1,493	1,084	1,213	1,198	1,477	1,095	1,195	1,191	1,442	1,083
Amortization	550	555	589	417	531	547	589	345	510	535	591	348
Profit for the period	171	184	317	-11	280	280	478	47	365	360	550	226
Earnings per share from continuing operations (non-diluted) (in €)	0.04	0.04	0.07	0.00	0.07	0.07	0.11	0.01	0.09	0.09	0.13	0.06
Dividend per share (in €)	0.09	0.09	0.10	0.07	0.11	0.11	0.15	0.07	0.12	0.13	0.16	0.08

KPN consolidated figures (EUR m) Free cash flow from continuing operations	FY '15 Average Median	FY '15	FY '15 High	FY '15 Low	FY '16 Average Median	FY '16	FY '16 High	FY '16 Low	FY '17 Average Median	FY '17	FY '17 High	FY '17 Low
Net cash flow from continuing operating activities3	1,920	1,909	2,089	1,675	2,046	2,031	2,271	1,835	2,124	2,100	2,437	1,925
Proceeds from real estate from continuing operations	0	0	3	0	0	0	3	0	0	0	3	0
Capex from continuing operations	-1,388	-1,406	-1,486	-1,209	-1,351	-1,343	-1,476	-1,178	-1,317	-1,326	-1,440	-1,193
Of which Belgium	-127	-134	-150	-90	-120	-128	-140	-91	-111	-113	-134	-96
Of which The Netherlands and other	-1,274	-1,279	-1,365	-1,200	-1,248	-1,220	-1,371	-1,173	-1,221	-1,217	-1,325	-1,094
Free cash flow from continuing operations4 , excl. TEFD dividend	512	531	696	339	670	667	926	431	773	767	1,116	527
Dividends received from Telefónica Deutschland	148	144	180	143	150	144	180	143	158	158	183	144
Free cash flow from continuing operations4 , incl. TEFD dividend	655	676	839	483	830	826	1,084	582	924	909	1,290	685
Net debt (in bn)	6.44	6.56	7.01	5.17	6.11	6.13	6.94	4.59	5.82	5.76	7.36	4.45

3) Net cash flow from operating activities is before deduction of Capex spent and proceeds from real estate

4) Free cash flow is defined as cash flow from operating activities, plus proceeds from real estate, minus Capex and excluding E-Plus tax recapture