Royal KPN N.V. — Earnings Release 2016

Jul 27, 2016

Second Quarter 2016 Results 27 July 2016

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 ('FCF'). These non-GAAP figures should not be viewed as a substitute for KPN's GAAP figures and numerical reconciliations are included in KPN's quarterly factsheets. KPN defines EBITDA as operating result before depreciation (including impairments) of PP&E and amortization (including 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 as adopted by the European Union. In the Net Debt / EBITDA ratio, KPN defines Net Debt as the nominal value of interest bearing financial liabilities excluding derivatives and related collateral, representing the net repayment obligations in Euro, taking into account 50% of the nominal value of the hybrid capital instruments, less net cash and short-term investments, and defines EBITDA as a 12 month rolling total excluding restructuring costs, incidentals and major changes in the composition of the Group (acquisitions and disposals). Free Cash Flow is defined as cash flow from continuing operating activities plus proceeds from real estate, minus capital expenditures (Capex), being expenditures on PP&E and software. Revenues are defined as the total of revenues and other income unless indicated otherwise. Adjusted revenues and adjusted EBITDA are derived from revenues (including other income) and EBITDA, respectively, and are adjusted for the impact of restructuring costs and incidentals. 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 ir.kpn.com

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", "will", "may", "could", "should", "intends", "estimate", "plan", "goal", "target", "aim" 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 and speak only as of the date they are made. A number of these factors are described (not exhaustively) in the Integrated Annual Report 2015.

• 1 Highlights and operational performance Eelco Blok
• 2Financial performance
• Jan Kees de Jager 3 Outlook and concluding remarks

Eelco Blok

Contents

KPN's strategy firmly on track

4

Driving sustainable shareholder value creation

Key priorities for the coming years

Operational

Highlights Q2 '16

Financial2 & Portfolio

Continued progress Simplification program: ~€ 350m run-rate savings realized3

• 1. Reported net adds of +1k were adjusted for a 22k one-off impact for KPN brand related to migration to new order management IT platform
• 1. All figures based on continuing operations, unless stated otherwise
• 1. End Q2 '16 vs. end Q4 '13

• Focus on excellent customer experience further enhancing customer loyalty in Consumer

• Further improving customer satisfaction across all segments
• Launched Managed Hybrid Cloud service in Business
• All KPN brand consumers migrated to new order management IT platform

• LoRa network reached nationwide coverage

• Adjusted revenues Q2 '16: € 1,676m, -4.3% y-on-y

• The Netherlands: -3.6% y-on-y
• Adjusted EBITDA Q2 '16: € 592m, -1.7% y-on-y
• The Netherlands: -2.0% y-on-y
• FCF H1 '16 (excl. TEFD dividend): € 104m vs. € 116m in H1 '15
• € 35.5ct per share returned to shareholders in Q2 '16
• € 5ct final dividend over 2015
• € 28ct capital repayment

• € 2.5ct pass through TEFD dividend

• High value base growth in Consumer

• Increasing penetration fixed-mobile bundles
  • •33% of broadband base
  • •38% of postpaid base
• +15k broadband net adds
• +33k IPTV net adds
• +23k1 postpaid net adds, driven entirely by KPN brand
• Building on leading position of ICT service provider
• Growth in multi play and IT related services
• Decline in traditional Telco services

Services & Innovation

1. As % of broadband customers

Increasing penetration of fixed-mobile bundles in Consumer Continued growth

Strong growth bundled services within residential households Increasing share of wallet drives growing ARPU per household

Value focus in Consumer mobile

Strong competitive position driven by high value KPN brand and fixed-mobile bundling

• 1. Reported net adds of +1k were adjusted for a 22k one-off impact for KPN brand related to migration to new order management IT platform
• 1. KPN brand
• 1. Bundle includes fixed-mobile bundles and multiple SIMs within a mobile-only household; management estimates

On track to deliver on key priorities in Business Simplifying portfolio and organization

New multi-year contract with large corporate client for hosting services on top of >10,000 workspaces

Agreement with city of Amsterdam for Managed Hybrid Cloud services

Leveraging strong market positions and distribution reach for growth in IT

Developing as best-in-class service provider

Further improving customer satisfaction across all segments

1. Source: TNS NIPO. Consumer residential (all brands), Consumer mobile (all brands), Business (KPN brand) 11

2. 1 Highlights and operational performance Eelco Blok

3. 2 Financial performance
4. Jan Kees de Jager
5. 3 Outlook and concluding remarks Eelco Blok

Financial performance reflects intrayear phasing 1

€ m	Q 2 '1 6	Q 2 '1 5	% -o n- y y
j d t d A s e r e e n e s u v u	6 6 1, 7	1, 7 5 1	% 4. 3 -
j d d A t E B I T D A u s e	9 2 5	6 0 2	% 1. 7 -
f i t t N e p r o	6 2 1	6 0 1	3 % 1.
C a p e x	3 2 1	3 0 6	% 2. 0
C F F	2 4 5	2 3 2	9. % 5

1. All figures based on continuing operations, unless stated otherwise 13

Revenue development Q2 '16

Strong focus on growing bundled service revenues

15

1. Excluding tax benefit in Q2 '15 and Q3 '15

Adjusted EBITDA1 trend improving vs. last quarter

Positive impact of cost savings not yet fully compensating declining revenues

• 1. All figures based on continuing operations, unless stated otherwise
• 1. The presented categories differ from the opex breakdown as presented in KPN's Integrated Annual Report 2015

The Netherlands2 (€ -12m) € mAdjusted EBITDA1 declined by 1.7% 356 2Adj. EBITDA Q2 '15 602Adj. EBITDA Q2 '16 592Other 2iBasis0Other operating expenses Revenues Cost of goods & services14Personnel expenses IT/TI 3512 3 4

Financial improvement expected in H2 2016

Positive impact Simplification, Business transformation and commercial progress

• Lower innovation spend following completion large projects
• Phase out of legacy
• Procurement management
• FTE reductions
• Portfolio rationalization
• Process automation
• FTE reductions
• Growing revenues in Consumer

Free cash flow1 influenced by usual intrayear phasing Strong growth in FCF expected in H2 '16

3 Frontloaded network investments in H1 '16

1. All figures based on continuing operations, unless stated otherwise

Solid financial position

Reduced gross debt resulting in lower cash interest payments

• 1. Gross debt defined as the nominal value of interest bearing financial liabilities, excluding derivatives and related collateral, representing the net repayment obligations in Euro, taking into account 50% of the nominal value of the hybrid capital instruments

• Fitch Ratings upgraded KPN to BBB, stable outlook

• Net debt € 1.4bn higher vs. Q1 '16
• € 1.2bn capital repayment in June 2016 related to proceeds BASE Company and 5% TEFD stake
• Payment € 5ct final dividend per share over 2015

Debt portfolio

• Renewal € 1.25bn revolving credit facility completed at improved terms
• Additional financial flexibility via 15.5% Telefónica Deutschland stake

Financial flexibility

• 1 Highlights and operational performance Eelco Blok
• 2 Financial performance Jan Kees de Jager
• 3 Outlook and concluding remarks Eelco Blok

On track for outlook 2016

• Adjusted EBITDA in line with 2015
• Capex ~€ 1.2bn
• Free cash flow > € 650m (excl. TEFD dividend)
• Additional cash flow via dividend from 15.5% stake in Telefónica Deutschland

Outlook 2016

• Intended DPS of € 10ct in respect of 2016
• € 3.3ct interim dividend in respect of 2016
• Ex-dividend date: 29 July 2016
• Payment date: 3 August 2016
• Intention to grow regular DPS in line with FCF growth profile
• Excess cash could be utilized for
• Operational / financial flexibility
• (Small) in-country M&A
• Shareholder remuneration

Shareholder remuneration

2
	1

Key financial priorities for coming years

Predictable cash generation the basis for attractive shareholder returns

Q2 2016 – Information Pack

For further information please contact

KPN Investor Relations +31 70 44 60986 ir@kpn.com ir.kpn.com

1 KPN ADR program

• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

KPN ADR program

KPN has a sponsored Level 1 ADR program

ADR program

l b i k B t o o m e r g c e r	K K P N Y
i f d l t T r a n g p a o r m	( ) O t h t O C T e r- e- c o n e r v u
C S U I P	8 0 6 4 2 0 7 1 5
i R t a o	O d i S h 1 A D R 1 : r n a r a r e y
i t b k D e p o s a r a n y	i t h k t C D B T A e s c e a n r s o m p a n m e r c a s u u y
i t b k t t D e p o s a r a n c o n a c y	t h t J M o n a a n o n a n a r o
i b k h l l A D R	( ) 2 2 2 0 9 0 0 k 1 1 5 1 N Y + e o r w
r o e r e p n e	( ) 4 4 2 0 4 6 0 0 d 7 5 7 5 L + o n o n
i l E- m a	@ d d b. a r c o m
b i A D R t e s e w	d d b. a r. c o m w w w
i t b k 's l l D e p o s a r y a n o c a d i t c s o a n u	t h k, t d D B A e s c e a n m s e r a m u

Depositary bank's local custodian

1 KPN ADR program CSR strategy Group results analysis Group KPI overview Debt overview Spectrum Fixed infrastructure Telefónica Deutschland stake

• Mooiste Contact Fonds (MCF) connects chronically ill children
• 723 children virtually present at school

• Collaboration with Nederlandse Hartstichting to put young people with a heart condition in touch with their peers

• Award winning Late Rembrandt campaign

• 2016 Corporate Engagement Award
• ESA Excellence Award 2015
• KPN is main sponsor of the Rijksmuseum
• Introduction of child friendly app Mybee
• Safe internet browsing for children of 2-6 years old

Corporate Social Responsible Strategy

1. Dutch people that believe their data is safe with KPN

Social and environmental achievements

• 1 KPN ADR program
• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

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

1. All figures based on continuing operations, unless stated otherwise 30

Group results Q2 '16 (continuing operations) 1

( ) € m	'1 6 Y T D	'1 Y T D 5	% -o n- y y
R e e n e s v u	3, 3 6 5	3, 4 9 9	% 3. 8 -
j d d A t s e r e e n e s u v u	3, 3 6 5	3, 0 9 5	% 4. 1 -
i ( ) O t l. D A & p e r a n g e x p e n s e s e x c	2, 2 2 7	2, 3 5 5	% 4 5. -
E B I T D A	3 8 1, 1	4 4 1, 1	% 0. 5 -
d j d A t E B I T D A s e u	6 0 1, 1	9 1, 1 7	% 3. 1 -
i i D t e p r e c a o n	0 3 5	4 5 7	8. 0 % -
i i t t A m o r a o n z	2 8 9	2 3 5	% 4 1
O i t p e r a n g e p e n s e s x	3, 0 9 1	3, 1 5 5	4. 3 % -
i f i O t t p e r a n g p r o	3 4 6	3 4 4	% 0. 6
f i t t N e n a n c e c o s s	2 7 -	2 4 1 -	% 4 2
f f i f i j i S h t t d t t a r e o p r o o a s s o c a e s a n o n v e n u r e s	1 -	-	n. m
f i b f P t t r o e o r e a e s x	2 3 7	2 2 0	% 2 4
I t n c o m e a x	6 3 -	3 7 -	% 7 0 -
f i f t t t P r o a e r a e s x	2 0 1	8 3 1	% 1 5

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1. All figures based on continuing operations, unless stated otherwise 31

Group results YTD '16 (continuing operations) 1

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

• 1. All figures based on continuing operations, unless stated otherwise
• 1. Excluding changes in deferred taxes 32

Group cash flow Q2 '16 (continuing operations) 1

( ) € m	'1 6 Y T D	'1 Y T D 5	% -o n- y y
E B I T D A	3 8 1, 1	4 4 1, 1	% 0. 5 -
i d / i d I t t n e r e s p a r e c e e v	2 6 3 -	3 0 1 -	3 %. 1 -
i i d / d T a x p a r e c e v e	4 4	2 1 -	n. m
2 i i i C h a n g e n p r o s o n s v	3 4 -	0 1 -	% 0 0 1 >
2 C h i k i i l t a n g e n o r n g c a p a w	4 1 5 -	6 9 -	0 0 % 1 >
O t h t e r m o v e m e n s	0 4 1	4 9 1	% 3 0 -
f f i i i i t h l t t t N e c a s o w r o m o p e r a n g a c v e s	8 4 4	9 0 1	% 6. 3 -
C a p e x	6 3 0 -	6 4 0 -	% 6 1. -
d f l P t t r o c e e s r o m r e a e s a e	-	1	0 0 % 1 -
f h l F r e e c a s o w	2 4 1	2 6 2	8 % 1 -
i C t l h b d o p o n o n p e r p e a r u u y	-	-	n. m

• 1. All figures based on continuing operations, unless stated otherwise
• 1. Excluding changes in deferred taxes 33

Group cash flow YTD '16 (continuing operations)

1

Financials by segment

The Netherlands

Adjusted revenues (€ m) Adjusted EBITDA (€ m) Adjusted EBITDA margin 34

Dutch wireless disclosure

1. Includes mobile-only (mainly SME) service revenues and partial allocation of multi play (mainly SME) and customized solutions (mainly

2. LE/Corporate) revenues to mobile service revenues

3. 1. Includes amongst other Wholesale mobile service revenues and visitor roaming
4. 1. Including handset subsidies, commissions and SIM costs

i ( ) S € e r c e r e e n e s m v v u	Q 2 '1 6	Q 2 '1 5	% y -o n- y
C o n s m e r u	2 9 0	2 9 6	2. 0 % -
1 i B s n e s s u	6 1 7	8 1 7	% 6. 2 -
2 O t h e r	3 9	4 2	% 7. 1 -
h t h l d K P N T N e e e r a n s	4 9 6	6 5 1	% 3. 9 -

/ i ( ) S C S C b b € A R p e r s s c r e r u	Q 2 '1 6	Q 2 '1 5	% -o n- y y
3 ( i ) C t d o n s u m e r p o s p a	2 2 5	2 3 1	% 6 5.
i ( i i ) b l l l S B M E s n e s s m o e o n m a n u y y –	2 4 0	2 8 1	% 0 1

Tax Q2 '16

The effective tax rate for Q2 '16 is influenced by mix of taxable results in various countries

Corrected for these non-deductible expenses, Q2 '16 effective tax rate would have been ~23%

• and by one-off items for tax purposes
• be ~22%

For the 2016-2017 period, the effective tax rate, excluding one-off effects1, is expected to

	P L &		f C h l a s o w
i ( ) € R e g o n s m	Q 2 '1 6	Q 2 '1 5	Q 2 '1 6	Q 2 '1 5
h t h l d T N e e e r a n s	4 9 -	2 5 -	5 -	1 -
i l B e g m u	-	1 -	-	-
O t h e r	2 -	3 -	1 -	1 -
t l t d t T o a r e p o r e a x	5 1 -	2 9 -	6 -	2 -
f i i i i O h h d t d t c s c o n n e o p e r a o n s w u	-	1 -	-	-
f i i i t d t t t R e p o r e a x r o m c o n n u n g o p e r a o n s	5 1 -	2 8 -	6 -	2 -
f f i i i i E t t t t t e c e a r a e c o n n n g o p e r a o n s v x u	2 3. % 7	4. 9 % 1

1. Excluding effects of, amongst others, settlements with tax authorities, impairments, revaluations

Tax YTD '16

The effective tax rate for H1 2016 was 23.0%. The effective tax rate in H1 2015 was 16.8%,

The effective tax rate is influenced by one-off effects and a change of the mix of profits and losses in the various countries. Without one-off effects, the effective tax rate would have been ~22% in H1 2016

For the 2016-2017 period, the effective tax rate, excluding one-off effects1, is expected to

• mainly due to reversals related to previous years in H1 2015
• be ~22%
• 1. Excluding effects of, amongst others, settlements with tax authorities, impairments, revaluations

	P	L &		f C h l a s o w
i ( ) € R e g o n s m	'1 6 Y T D	'1 Y T D 5	'1 6 Y T D	'1 Y T D 5
h t h l d T N e e e r a n s	9 5 -	3 4 -	4 5	0 1 -
i l B e g m u	3	2	-	1
O h t e r	4 -	3 -	1 -	2 -
l d T t t t o a r e p o r e a x	6 0 -	3 5 -	4 4	1 1 -
f i i i i O h h d t d t c s c o n n e o p e r a o n s w u	3	2	-	1
d f i i i R t t t t e p o r e a r o m c o n n n g o p e r a o n s x u	6 3 -	3 7 -	4 4	2 1 -
f f i i i i t t t t t E e c v e a x r a e c o n n u n g o p e r a o n s	% 2 3. 0	% 6. 8 1

• 1 KPN ADR program
• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

Consumer Fixed-Mobile KPI's

Consumer (cont'd) Residential KPI's

1. Source: Telecompaper

40

Consumer (cont'd) Mobile KPI's

1. Reported net adds of +1k were adjusted for a 22k one-off impact for KPN brand related to migration to new order management IT platform

2. Management estimates; market shares restated to include all operators

4 1

Business

• 1. Includes mobile-only (mainly SME) service revenues and partial allocation of multi play (mainly SME) and customized solutions (mainly LE/Corporate) revenues to mobile service revenues
• 1. Including migration of 201k RoutIT seats per Q2 '16, following acquisition remaining shares RoutIT

• 1 KPN ADR program

• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

Debt portfolio

Breakdown of € 8.8bn nominal debt1 including hybrid bonds

1. Based on the nominal value of interest bearing liabilities after swap to EUR, including EUR 1.1bn hybrid bond, GBP 400m hybrid bond and USD 600m hybrid bond

2. 1. Foreign currency amounts hedged into EUR ⁴⁴
3. 1. Excludes bank overdrafts

Treatment of hybrid bonds

1. EUR tranche had short first coupon payment (0.5 years was payable in September 2013), annual coupon payments in September thereafter; USD tranche has semi-annual coupon payments (March / September); GBP tranche has annual coupon payments in March

2. Cash flow item 'Paid coupon perpetual hybrid bonds'

KPN & Credit rating agencies

S I F R
i f t h t l, t d E U R r a n c e s a p e r p e a a c c o n e o r u u  i t a s e q u y i i i i C t t t d t d t b t o u p o n p a y m e n s r e a e a s e q u y s r u o n,  i i h d h h l d d t t P L, t & e n c e n o e p e n s e r o g n o n c e n x u u 1, 2 i f i i f F C F, b t h l n n a n c n g c a s o u w
G d S h h 6 0 t B P U D a n r a n c e a e e a r s v y  i f i i f d d t t t s p e c e m a u r y, a c c o u n e o r a s f i i i i i l l b l t n a n c a a y C d l b d t t t o p o n p a m e n s r e a e a s r e g a r o n u y u  i h d t h h P L, l d d & c o p o n, e n c e e p e n s e r o g n c e u x u u i C F F n

• Each tranche of the hybrid bonds is recognized as 50% equity and 50% debt by the rating agencies
• Definition of KPN net debt includes: '[…], taking into account 50% of the nominal value of any hybrid capital instrument'
• Hybrid bonds are part of KPN's bond portfolio
• Independent of IFRS classification
• In line with treatment by credit rating agencies

h T r a n c	i l N o m n a	K P N t d b t n e e	i t t M a u r y	1 ( ) t d R a e s s a p p e w	i i S l I F R p r n c p a	S I F R c o u p o n
% b 6. 2 E U R 1. 1 1 5 n	€ 0 0 1, 1 m	€ 0 5 5 m	tu l ( P e r p e a n o n- l l ) 5. 5 c a	% 6. 2 1 5	i ty E q u	2 ( i i h f l t F n a n c n g c a s o n o w i l. i C ) F F n c n
G 0. 4 b 6. 8 % B P 7 5 n	€ 4 6 0 m	€ 2 3 0 m	( 6 0 y e a r s n o n- ) l l 7 c a	6. % 7 7 7	i b i l i L ty a	i I t t d n e r e s p a ( i i ) l. C F F n c n
% S 0. 6 b 0 0 0 U D 7. n	€ 4 6 5 m	€ 2 3 3 m	6 0 ( e a r s n o n- y l l 0 ) 1 c a	% 6. 3 4 4	i i i b l ty L a	i d I t t n e r e s p a ( i l. i C ) F F n c n
l T t o a	€ 2, 0 2 5 m	€ 0 3 1, 1 m

• 1 KPN ADR program
• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

Spectrum in The Netherlands

8 0 0 M H z ( i d ) P a r e	l 2 T e e 2 *1 0	O V D 2 *1 0	K P N 2 *1 0						2 *3 0
9 0 0 M H z ( i ) d P a r e	O V D 2 *1 0	K P N 2 *1 0	b T- M o 2 *1 5						2 *3 5
8 G 1. H z ( i d ) P a r e	K 2	P N *2 0	V 2	O D *2 0			b T- M o 2 *3 0		2 *7 0
9 G 1. H z ( i ) U d n p a r e	b T- M o 0 1	O K P N V D 4 5 5.	b T- M o 4. 6 1						*3 1 5
2. G 1 H z ( i ) d P a r e	V O D 2 *1 4. 6		K P N 2 *1 4. 8	T- M b o 2 *1 0	K P N 2 *5	V O D 2 *5	T- M b o 2 *1 0		2 *5 9. 4
2. 6 G H z ( i d ) U n p a r e		b T- M o 2 5			K P N 3 0		l 2 T e e 5		*6 0 1
2. 6 G H z ( i ) d P a r e	O V D 2 *1 0	i Z g 2	4 g o *2 0	b T- M o 2 *5	K P N 2 *1 0		l 2 T e e 2 *2 0		2 *6 5
t l T o a	K 1 7 4.	P N 6 M Hz	O V D 1 4 4. 6 M Hz		T- M 1 8 9.	b o 6 M Hz	l T e e 6 5 M	i 2 4 Z g g o Hz 4 0 M Hz	6 1 3. 8 M Hz

• 1 KPN ADR program
• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

Fixed infrastructure

• 1 KPN ADR program
• CSR strategy
• Group results analysis
• Group KPI overview
• Debt overview
• Spectrum
• Fixed infrastructure
• Telefónica Deutschland stake

Telefónica Deutschland stake

Accounting treatment

Balance sheet

Fair value of KPN's stake based on Telefónica Deutschland's share price and adjusted quarterly

• Stake included as financial asset1
• • Fair value movements recorded in other comprehensive income

Significant or prolonged value decreases booked as an impairment through the P&L within net finance costs

P&L

• subject to Dutch corporate income tax
• Deferred tax asset can be utilized to offset income related to KPN's stake
• 1. Defined under IFRS as available for sale financial asset

Upon sale of (part of) the stake, all related capital gains or losses recognized through the P&L as

• Dividends received reported as finance income within net finance costs
• financial income
• finance costs

Significant or prolonged value decreases booked as an impairment through the P&L within net

Cash flow

Dividends received part of operating cash flow and free cash flow as dividends received

Tax

Dividends received and/or capital gains realized (proceeds above tax book value) on KPN's stake

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