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KPN Annual
Report 2018

The power of connection

The power of connection

KPN has been the Netherlands’ connectivity partner for more than a century. In that role, we will continue to innovate and invest in our strong network to create the future digital highway of the Netherlands. We want the country's households and businesses to be powered by KPN because we believe in the power of connection. Now and for decades to come.

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Introduction

Introduction by
CEO Maximo Ibarra

In everyday practice

Every new day heralds new technology, new possibilities. KPN shows in various places in the Netherlands how this can make life, freer, easier and more fun.

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Review of the year

KPN accelerates strategy to deliver organic sustainable growth

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Review of the year

KPN changed its management structure

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Review of the year

Boosted the internet speeds in rural designated areas

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Review of the year

KPN partnered in exploring the value of 5G in four different field labs

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Review of the year

KPN listed for the seventh consecutive year in the Dow Jones Sustainability World Index (DJSI)

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Review of the year

KPN passed the milestone of 2 million converged customers in Consumer in the third quarter

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Our main achievements

Delivering value through solid results

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EBITDA

In the year 2018 we achieved strong operating and financial results.

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Capital expenditure

The trend of previous years continued in 2018.

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Converged services

Increasingly, customers are purchasing several KPN products per household.

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Customer satisfaction

Having obtained a higher score than last year, we are well on the way to becoming the best service provider in the Netherlands.

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Our value creation model

Enabling people to be
connected anytime, anywhere

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KPN's themes

This is how we’re helping to develop the Netherlands

Introduction by CEO Maximo Ibarra

At the heart of the connected world

Every day, new technologies are bringing new opportunities. For KPN and the Netherlands. And this is just the beginning. For me, this year was also a new beginning since I assumed the CEO role in April 2018. I am proud to be part of this great company, with its strong reputation, solid financial position, skilled people and global leadership in sustainability.

We kickstarted several initiatives and activities to shape KPN's strategy for the period 2019-2021. We are positioning KPN as a future-proof, high-quality, lean telco with a strong premium Consumer and Business customer-relations offering. My main message is that we want to build the best converged smart infrastructure, focus on the best customer experience and profitable converged services, accelerate simplification and digitalization within the company. To introduce this new strategy to our employees, I visited all KPN locations in the Netherlands to gain ideas and receive feedback from our people. This is valuable because it’s our people who make the business, as well as the difference. Also, if our strategy is clear, everyone will focus on executing it, which is the best recipe for success.

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Network

First 5G test at full bandwidth

We will soon be able to send a thousand times more data with 5G. This offers huge opportunities. Take the Waalhaven in Rotterdam, where we tested 5G at full bandwidth (100 megahertz) in the Netherlands for the first time. Live images from a drone with a 360-degree camera were linked to an image processing center. In the near future, it will be possible to use this technology to inspect oil refineries, container storage and lots more.

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Innovation

Smart Mobility: automatically from A to B

Using technology, we can eliminate traffic jams and make all forms of mobility safer, more efficient and more sustainable. At KPN, we are therefore, together with partners, testing a variety of autonomous driving applications on the A270 between Helmond and Eindhoven: for example vehicles that communicate with one another and traffic signals that adapt to the traffic.

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Sustainability

How a smart potato can save the world

To continue meeting the growing demand for food, we have to cultivate more with less land, less water and fewer pesticides. Difficult? Not if you ask a couple of the smart potato growers in the north of the Netherlands. Together we are testing the precision agriculture of the future, with sensors and drones that transmit data on the health of the fields and the crops, so the farmer knows exactly where he needs to fertilize or water the land.

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Innovation

Amsterdam Zuidoost becoming a smart city

Together with the Municipality of Amsterdam, KPN is working on smart 5G applications in the area of the Johan Cruijff ArenA. We are testing technologies that make visitors to this area feel safer and more comfortable. Crowd control, for instance: thanks to artificial intelligence, which recognizes patterns on the basis of image, you can see where potential problems may arise at major events. And there are many more possibilities.

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Network

The eyes of a specialist always on hand

Imagine that an accident has happened on a country road. The ambulance gets there within five minutes and has exactly the right medical specialist on board to treat the injuries suffered. Impossible? Not if there is a way of allowing the specialist at the hospital to watch through the eyes of the paramedic. We are testing remote medical assistance with augmented reality and 5G, in collaboration with the Burn Centre at Martini Hospital and Ambulancezorg Nederland. This way, we can use expertise from a distance and the hospital knows even better what to prepare for.

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Security

Worry-free online

Winning the prestigious Global Cyberlympics in 2018 puts KPN’s ethical hackers at the top of the global tree and demonstrates that we satisfy the world’s most exacting security requirements. A connected society has enormous benefits but is also vulnerable. When digital systems do not work properly, the consequences are huge. Hundreds of KPN experts therefore monitor our online world on a permanent basis.

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Society

KPN Mooiste Contact Fonds celebrates first ten years

In 2018 we celebrated the tenth anniversary of the KPN Mooiste Contact Fonds. Throughout those ten years KPN volunteers have dedicated themselves to connecting people with one another. With initiatives such as KlasseContact, the Zilverlijn, Christmas dinners and museum visits we bring vulnerable groups such as sick children and the elderly into contact with the world around them. The heart-warming results are a wonderful incentive for the volunteers to continue their efforts.

Download the full report

Integrated Annual Report 2018 (Spread version) / 5 MB Download
Integrated Annual Report 2018 (Print version) / 6 MB Download
KPN Verkort Jaarverslag 2018 / 3 MB Download
Consolidated Financial Statements (XLSX) / 34 KB Download
Social figures / 36 KB Download
Environmental figures / 63 KB Download
GRI index / 103 KB Download