KPN InternationalWe help you to optimize your international network environment and achieve your business goals.
Contents • KPN & KPN International • KPN Company Profile • KPN Organizational Structure • KPN International Mission • International Network • Strategy • Wholesale Customers • Contacts • Wholesale Portfolio Overview • International Private Line • International Wavelength • International Dark Fibre • International Co-location • International IP-Transit
KPN Company Profile The leading Telecommunications and ICT service provider in the Netherlands 33.4 million wireless customers 4.7 million wireline voice customers 2.5 million broadband internet customers 1 million TV customers 33.148 FTE’s Annual Key Figures (€bn.) 2007 2008 2009 Operating revenues: EBITDA: Free Cash Flow 12.6 4.9 2.3 14.6 5.0 2.6 13.5 5.2 2.4 • Offering fixed and wireless telephony, internet and TV to consumers in the Netherlands. • End-to-End telecommunications and ICT services to business customers. • KPN’s subsidiary Getronics operates a global ICT services company with a market-leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. • In Germany and Belgium KPN pursues a multi-brand strategy in its mobile operations and holds number three market positions with E-Plus and BASE. • KPN provides wholesale network services to third parties and operates an efficient IP based infrastructure with global scale in international wholesale through KPN International and iBasis.
KPN Organizational Structure Strong Market and Customer focus by segment: consumer, business and IT service Board of Management The Netherlands Mobile International Other Rest of World Other Activities, Including IT Other activities Wholesale & Operations Consumer Business Getronics Germany Belgium Other activities • Wireline Services • Wireless Services • Voice Wireline Services • Wireless Services • Data Network Services • Workspace Management • Connectivity Services • Data Center • Consulting Services •International • Carrier Services • Access services • Real estate • iBasis • E-Plus Gruppe • KPN Group Belgium (formerly BASE) • KPN Belgium Business (to be sold) • KPN Belgium • IT NL • Spain • France • Ortel Mobile • Corporate Center • SNT (call centers in Germany)
KPN International Mission Our customers trust us to provide them with high-quality, reliable international services to help them achieve their business goals Customer-focused We are organized for quality customer engagement: dedicated account management, a hands-on attitude from senior executives, and an innovative approach to support all contribute. Reliable Your business depends on our reliability. This goes beyond our highly-resilient network architecture and is about employees, keeping promises and long-term relationships. Flexible As a business unit of KPN, we bring depth and breadth to every customer engagement. This is particularly important in the light of accelerated IT and telecommunications convergence. Innovative We are passionate about bringing the value of innovation to our customers. We are recognized, for example, as an early leader in Ethernet Services. International We are constantly extending our networks and partnership agreements. We simplify international contract management for our customers, providing connectivity wherever it’s needed.
The KPN International network … covering 85% of the world economy EuroRings network • Wholly-owned NGN covering 22 countries • Speeds up to 40 Gbit/s USA PoPs • 6 PoPs and 12,000 km of owned MPLS network • Direct Interconnect with Sprint Network worldwide • 120,000 km of land and sea cables • Over 60 NNls • Relationships with all major carriers, incumbents and PPTs Effective Partnerships • Sprint (USA) • Telefonica (Latin America) • SingTel (Asia) Simplicity • KPN International acts as a single-point-of- contact for all worldwide engagements
Strategy: to help our Customers KPN International is helping their customers to optimize their network environment and achieve their business goals Mission: Our customers trust us to provide them with high-quality, reliable international services to help them achieve their business goals, and to enrich their work. Achieve your business goal • A sustainable relationship/partnership must be ‘win-win’ - trust and openess are key Helping our customers • Sales and Consultancy team to advise you on simple and reliable solutions • Responsive Delivery and Project management team - realizing customer satisfaction close to 100% • Our Management Team is available for every Customer Optimize your Network environment • We listen to our customers and look: - beyond the requirements of the customer; - not only standard packages but also ‘out- of-the-box’ ideas (creativity, flexibility); - into new and simple ways of doing business, sharing networks, investments.
Wholesale Customers KPN International is targeting the different customer segments with a specific proposition Market Segment Requirements Solutions European and non-European carriers Build and expand own networks Network solutions for specialist customer areas Network solutions and connectivity for customer organizations and individuals Virtual Network Operators and System Integrators ISPs and Content Delivery Network providers Dark Fiber, Co-location, Wavelength, sea cable Wavelength, Private Line, NGN services Wavelength, Private Line, NGN services Wavelength, IP Transit Internet access, transport and backbone capacity
We help you to achieve your goals! Thomas Hofmann Account Director Wholesale Thomas.firstname.lastname@example.org T: +49 (69) 968 74 266 F: +49 (69) 968 74 279 M: +49 (178) 535 23 11 Tineke van Arkenbout Sales Support Wholesale tineke.arkenbout- email@example.com Jan van de Peppel Director Operations jan.vandepeppel @kpn.com Albert van Gent Director Wholesale albert.vangent @kpn.com Thomas Lund Project manager firstname.lastname@example.org Carolien Nijhuis Managing Director caroline.nijhuis @kpn.com Paul Huijgen Project leader email@example.com Werner Zuzarte Network Architect werner.zuzarte @kpn.com Henk van Veen Project manager henk.vanveen @kpn.com Vlatka Zitkovic IP Engineer firstname.lastname@example.org Wim Spaans Customer Operations Mgr Wim Spaans @kpn.com
Portfolio Overview Portfolio that helps you build your own network infrastructure or offer services off the shelf cost-effectively and reliably Transmission Services • Private Line • Wavelength • Dark Fiber Internet • IP Transit • Corporate Internet NGN Services • Next Generation VPN • MPLS VPN • Ethernet VPN • E-LAN • Managed Firewall Services • Secure Remote Access Solutions • White Label • NNI
International Private Line Point-to-point connectivity between business sites anywhere in the world. Particularly suited to organizations with high internal network traffic requirements, but who wish to avoid capital investment in network infrastructure. Key Facts Key Benefits Speeds: Service Level Guarantee: Network Management: Cost and billing: • - 2,048 Kbit/s, 34 Mbit/s, 45 Mbit/s • - 155 Mbit/s, 622 Mbit/s • End-to-End (99.8%) • PoP-to-PoP (99.99%) • Pro-active 24/7 • Customer care 24/7 • - One contact – one contract • Fully managed, end-to-end, dedicated circuit • Scalable capacity • Bi-directional, fixed transfer speeds • Stand-by capacity • Secure and reliable • Global connectivity • Service Level Agreements (SLAs) • Unified Network Control Center
International Wavelength Wholesale and corporate clients plug right into our optical fiber high-performance backbone, eliminating the need to manage multiple local contracts. This is a continually developing DWDM foundation on which to roll-out your own added-value services. Key Facts Key Benefits Speeds: ThroughputGuarantee: Network Management: Coverage: • 1Gbit/s, 2Gbit/s, 10Gbit/s, 40Gbit/s • Fiber channel, others on request • Up to 99.99% • - Pro-active 24/7 • Customer care 24/7 • Over 50 PoPs acress Europe and • extending into New York • The 2.5, 10 and 40 Gbit/s Wavelength offers ahigh-bandwidth backbone for carriers • Standardized, optical interfaces for transparent STM-16 or STM-64 • Standardized, interfaces for transparent GigE and 10 GigE • Design your own network and security (based on KPN intrastructure)
International Dark Fiber Our Dark Fiber enables you to design and roll out your own high-capacity network to reach all key European business centers. You retain control and manage your network by applying your own service protection mechanisms. KPN Dark Fiber is aggressively cost effective. Key Facts Key Benefits Speeds: ThroughputGuarantee: Network Management: Coverage: • Near no-limit – up to 8,000 Gbit/s • Up to 99.99% • Customer care 24/7 • Western Europe • High-quality, reliable fiber optic network • Full European coverage • Build your own network • Faster roll-out • Clear and regular reports • No license negotiation or fiber installation • Secure • Full control
International Co-location High-quality, flexible co-location services for carriers,ISPs and corporate users. A first class environment with optical latency ensures access to IT and communications facilities that are secure and rapidly scalable. Key Facts Key Benefits Offer: ThroughputGuarantee: Access: Coverage: • Footprint 60x60, 60x90 or 60x100 • 1kW • - Up to 99.99% • - 24/7 • - Western Europe • Connected to our high-quality European fiber optic network with almost unlimited capacity • Expansion on demand • Carrier-independent – interconnect with other carriers • Skilled personnel • Secure • Access 24/7 • Service desk 24/7
International IP Transit Delivering high bandwith IP Transit services to international carriers, ISPs, mobile operators and Content Distribution Networks. Capacity in multiples of 10 Gbit/s. Global footprint and extensive peering relationships with major global IP network providers for secure, fast and controlled IP traffic routing. Key Facts Key Benefits • High-performance, cost-effective connectivity to the global internet routing table for IPv4 and IPv6 over our AS286 backbone • Scalable bandwith guarantee and port ‘burst’ support • Flat rate or per-Mb fees • Extensive SLAs with pro-active support and rebates in case of SLA breach Speeds: ThroughputGuarantee: Networkmanagement: Coverage: - 1, 2, 10 and 40 Gbit/s Port channel - End-to-End (99.8%) - PoP-to-PoP (99.99%) - Pro-active 24/7 - Customer care 24/7 - Coverage across Europe and in the U.S.
Safe harbor Certain statements contained in this presentation 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, its 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 our control that could cause actual results to differ materially from such statements. A number of these factors are described (not exhaustively) in the KPN’s 2007 Annual Report. All figures in this presentation are unaudited and based on IFRS. This presentation 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. All market share information in this presentation is based on management estimates based on externally available information, unless indicated otherwise. Regarding iBasis, various remarks that we may make about future expectations, plans, and prospects for iBasis constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to statements regarding the amount and timing of achievement of transaction synergies, anticipated costs and our expectations regarding resumption of growth. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company’s Form 10-K for the year ended December 31, 2007, and other current and periodic reports on file with the SEC. Disclaimer We define EBITDA as operating result before depreciation and impairments of PP&E and amortization and impairments of intangible assets. Note that our 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 all cases, a reconciliation of EBITDA and the nearest GAAP measure (operating result) is provided. In the net debt/EBITDA ratio, we define EBITDA as a 12 month rolling average excluding book gains and restructuring costs, both over EUR 20m. For 2007, we define free cash flow as cash flow from operating activities plus proceeds from real estate, minus capital expenditures (Capex), being expenditures on PP&E and software. For 2008 and subsequent years, 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 at E-Plus. The unaudited pro-forma financial information for KPN Mobile The Netherlands and the Fixed division (including Other) for 2007 has been prepared based on the former organizational structure in place as at December 31, 2006 and on the transfer pricing, roaming and intercompany charges associated with that former structure. Although we believe that the pro-forma financial information has been prepared based on reasonable assumptions, this information is provided for illustrative purposes only and we cannot assure you that the pro-forma financial information based on the former organizational structure would be identical to the actual results which might have been reported had our organization structure not changed.