Royal KPN N.V. — Management Reports 2018

Jul 26, 2018

Consensus Q2 '18

Analyst forecasts for the period ending 30 June 2018

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

The analyst consensus is based on forecasts provided by various leading equity analysts covering the KPN share. The analyst consensus for the Q2 2018 period and full fiscal years 2018-2020 is based on the non-weighted average of 18 analyst forecasts (vs. 14 in Q1 2018).

The analyst forecasts were submitted to KPN in the period of 19 June 2018 to 29 June 2018.

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 consensus is 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 assumptions that have led thereto.

KPN divisional breakdown (EUR m) Adjusted revenues from continuing operations1	Q2 '18 Average	Q2 '18 Median	Q2 '18 High	Q2 '18 Low	FY '18 Average	FY '18 Median	FY '18 High	FY '18 Low	FY '19 Average	FY '19 Median	FY '19 High	FY '19 Low	FY '20 Average	FY '20 Median	FY '20 High	FY '20 Low
Consumer	741	740	758	734	3,003	3,001	3,059	2,951	3,014	3,015	3,129	2,919	3,039	3,048	3,221	2,890
Business	527	526	537	521	2,142	2,141	2,164	2,118	2,110	2,121	2,154	2,067	2,096	2,103	2,176	2,027
Wholesale	151	151	157	145	601	600	634	571	574	568	630	514	559	556	632	476
Network, Operations & IT	6	6	9	5	25	25	36	20	25	24	36	20	26	25	36	20
Other (incl. eliminations)	-40	-40	-36	-45	-160	-159	-150	-170	-158	-158	-137	-170	-158	-158	-123	-170
The Netherlands	1,384	1,384	1,408	1,374	5,611	5,617	5,685	5,551	5,565	5,582	5,711	5,410	5,563	5,581	5,764	5,333
Other activities	0	0	2	-1	0	0	1	-1	0	0	1	-4	0	0	1	-4
Total adjusted revenues1	1,382	1,383	1,407	1,355	5,604	5,611	5,685	5,522	5,558	5,555	5,711	5,428	5,556	5,571	5,764	5,361
Incidentals	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total reported revenues	1,382	1,383	1,407	1,355	5,604	5,611	5,685	5,522	5,558	5,555	5,711	5,428	5,556	5,571	5,764	5,361

1) Defined as revenues and other income adjusted for incidentals

KPN divisional breakdown (EUR m) Adjusted EBITDA from continuing operations2	Q2 '18 Average	Q2 '18 Median	Q2 '18 High	Q2 '18 Low	FY '18 Average	FY '18 Median	FY '18 High	FY '18 Low	FY '19 Average	FY '19 Median	FY '19 High	FY '19 Low	FY '20 Average	FY '20 Median	FY '20 High	FY '20 Low
The Netherlands	566	567	570	557	2,294	2,293	2,309	2,277	2,322	2,318	2,369	2,274	2,360	2,358	2,444	2,290
Other activities	0	0	0	-2	-3	0	1	-8	-3	0	0	-8	-3	0	0	-8
Total adjusted EBITDA2	566	566	570	556	2,291	2,293	2,305	2,277	2,319	2,316	2,362	2,274	2,357	2,358	2,440	2,287
Incidentals and restructuring costs Total reported EBITDA	-20 545	-20 546	-8 558	-30 534	-84 2,209	-80 2,219	-59 2,242	-115 2,162	-65 2,255	-67 2,263	-50 2,308	-83 2,204	-53 2,307	-50 2,323	-10 2,373	-80 2,217

2) Defined as EBITDA adjusted for restructuring costs and incidentals

KPN consolidated figures (EUR m) P&L items from continuing operations	Q2 '18 Average	Q2 '18 Median	Q2 '18 High	Q2 '18 Low	FY '18 Average	FY '18 Median	FY '18 High	FY '18 Low	FY '19 Average	FY '19 Median	FY '19 High	FY '19 Low	FY '20 Average	FY '20 Median	FY '20 High	FY '20 Low
Total operating profit	202	201	223	184	838	827	949	758	905	901	1,032	812	977	974	1,143	822
Total D&A	342	341	355	298	1,381	1,382	1,424	1,344	1,355	1,347	1,428	1,285	1,334	1,320	1,440	1,219
Depreciation	243	241	250	234	971	968	1,005	938	958	947	1,009	888	948	923	1,042	838
Amortization	103	103	108	98	411	416	435	363	400	406	437	299	390	399	438	230
Profit for the period	138	138	184	73	433	442	526	347	503	490	658	410	581	558	776	468
Earnings per share (non-diluted) from continuing operations (in €)	0.03	0.03	0.04	0.02	0.10	0.10	0.12	0.08	0.12	0.12	0.16	0.10	0.14	0.14	0.18	0.10
Dividend per share (in EUR ct) - regular	4.0	4.0	4.0	4.0	12.1	12.0	12.7	12.0	13.3	13.0	14.6	12.0	14.3	14.2	16.0	12.0
Dividend per share (in EUR ct) - additional	1.5	1.5	1.6	1.3	1.5	1.5	1.7	1.3	1.3	1.5	1.9	0.0	1.3	1.5	2.1	0.0
Dividend per share (in EUR ct)	5.4	5.4	5.6	5.0	13.5	13.6	14.1	13.0	14.7	14.5	16.0	13.3	15.9	15.8	19.0	13.3

KPN consolidated figures (EUR m) Free cash flow from continuing operations	Q2 '18 Average	Q2 '18 Median	Q2 '18 High	Q2 '18 Low	FY '18 Average	FY '18 Median	FY '18 High	FY '18 Low	FY '19 Average	FY '19 Median	FY '19 High	FY '19 Low	FY '20 Average	FY '20 Median	FY '20 High	FY '20 Low
Net cash flow from operating activities3	458	465	578	336	1,886	1,887	1,941	1,832	1,936	1,941	2,018	1,877	2,002	1,999	2,105	1,888
Capex	-252	-250	-221	-281	-1,087	-1,087	-1,057	-1,120	-1,053	-1,050	-1,006	-1,096	-1,028	-1,024	-977	-1,092
Proceeds from real estate	0	0	0	0	2	4	5	0	0	0	0	0	0	0	1	0
Free cash flow4 , excl. TEFD dividend	202	215	313	91	797	798	830	754	877	876	941	826	970	967	1,079	868
Dividends received from Telefónica Deutschland	61	60	75	50	62	60	75	50	57	62	79	0	58	63	85	0
Free cash flow4 , incl. TEFD dividend	260	276	387	150	860	860	892	819	933	929	1,002	868	1,026	1,024	1,134	928

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