Business Model

Value Creation

Investing in our customers is investing in our shareholders. They too benefit from our long-term focus on the highest level of customer satisfaction. In combination with sound financial management, a strong market position and growing profits, we are convinced this is the key to a sustainable dividend policy and satisfied shareholders. We intend to returning full Free Cash Flow to shareholders over the 2024 - 2027 period, through a balanced mix of increasing dividends and share buybacks, totaling ~€ 3.8bn.

Our 2024 – 2027 Connect, Activate & Grow strategy

KPN aims to connect everyone in the Netherlands to a sustainable future and to create long-term value for all stakeholders with its Connect, Activate & Grow strategy by creating loyal customers, engaging society & people, and delivering attractive, sustainable shareholder returns.

In essence, we will shape a future where KPN stands at the forefront of innovation, connectivity, and sustainability.

The three key strategic missions are:

  1. Connect with our customers to deliver on their needs
  2. Activate our best network, platforms, partners & assets
  3. Grow sustainably by modernizing and simplifying our business

With this strategy, KPN’s capital allocation policy aims to continue its long-term value creation through an attractive shareholder remuneration policy by returning all Free Cash Flow to its shareholders. KPN’s 2024-2027 financial ambitions are summarized as 3-3-7: Grow service revenues and EBITDA AL by ~3% CAGR and Free Cash Flow by ~7% CAGR over the 2024-2027 period. Furthermore, we’re aiming to grow ROCE to 15% by 2027.

Earning our customers' loyalty through converged services & solutions that are truly relevant to them.

In Consumer, KPN aims to become the market leader in terms of service revenue market share. This will be supported by the extensive fiber roll out and KPN’s increased focus on customer loyalty and base management. Through its Household 3.0 approach, customers will be able to access an unrivalled range of services, such as OTT packages, security and gaming, on top of the highest quality fiber and 5G connectivity. In Business, KPN is the clear market leader and will further develop its digital ecosystem. The converged portfolios in SME and LCE will be levered to increase share of wallet and drive further growth. Tailored Solutions is positioned as a strategic IT and integration partner, delivering value adding ICT solutions on top of the connectivity portfolio to the largest customers. Wholesale will remain the preferred connectivity partner for broadband and mobile services, and will deliver innovative services through new building blocks.

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Delivering the best digital experience to our customers over our world-leading, always-on networks.

KPN will continue to build the best secure networks and digital infrastructure of the Netherlands. In fixed, we are further optimizing the way we roll out, connect households and activate customers. We have streamlined the entire end-to-end fiber chain to ensure a seamless, hassle-free experience for all our customers; while continuing the decommissioning of the copper network in fiber areas. In mobile, KPN has been recognized as the best network in the world and it intends to keep a leading position. Furthermore, KPN will further digitize its customer facing processes to offer the best digital customer experience.

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Transforming our operating model with AI-powered automation and developing a future-ready workforce

There is scope to modernize the operating model of KPN. In the coming years, simplification and automation should drive significant quality improvements, efficiencies and indirect opex savings for the company. Through effective network management, modernization, and simplification, we will ensure the best digital experiences for our customers. This will result on sustainable growing returns linked to our financial ambitions 2024-2027.

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Company Overview

The Company Overview includes:

  • Company Profile
  • Management Board
  • Supervisory Board
  • Stock Fundamentals
  • Outstanding Shares Split
  • Financial Calendar

Here you can download the Company Overview of KPN

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