KPN ESG
Webinar
2021
14 December 2021

ESG Webinar 2021
2
Highlights
ESG fully embedded in strategy and organization
Sustainable investments drive Dutch digitalization
Strong progress & ambitious targets on reducing carbon footprint
Integrated sustainability into core financing instruments
Continuously recognized by leading ESG benchmarks
Enabling sustainability through connectivity

3
ESG Webinar 2021
Strategic Framework: connect the Netherlands to a sustainable future
Purpose
We go all out to connect everyone in the 
Netherlands to a sustainable future
Vision
To make the Netherlands the most 
connected country in the world
Ambition
To be your preferred partner in digital life
Shareholder value
•
Sustainable growth in 
profitability and returns
Customer value
•
Secure, reliable and 
seamlessconnectivity services
Environmental impact
Secure, future-proof
connectivity
Social & digital inclusion
Value we create for 
stakeholders…
…with long-term 
impact on society
Employee value 
•
Employment and
employability for KPN
workforce

4
ESG Webinar 2021
ESG fully embedded in strategy and organization
Industry, innovation 
& infrastructure
Sustainable cities 
& communities
Responsible consumption 
& production
Energy 
efficiency 
& circularity
Social 
& digital 
inclusion
Secure 
future-proof 
infrastructure
17 UN Sustainable Development Goals (SDGs)

5
ESG Webinar 2021
ESG integral part of management remuneration

30% STI based on NPS and Employee Engagement (15% each) 

30% LTI based on Reputation and Circularity (15% each)
Organizational alignment: ESG integral part of management remuneration
ESG themes defined and approved by Board of 
Management, including ambitions
Dedicated cross functional teams, assigned by 
BoM on topics like innovation, energy 
sustainability and diversity & inclusion
Responsible for overall reporting, approach and 
cohesion
BoM
CSR  
Themes

6
ESG Webinar 2021
ESG milestones and ambitions: aiming for net zero emissions by 2040
Important milestones crossed…
…and an ambitious agenda
2011 
100% 
green energy
2040
Net zero 
CO₂e emissions 
in chain
Carbon neutral 
for own operations
2015 
2020 
>30% gender 
diversity at 
Board level
Climate neutral 
without offsets
2030
2025
~100% 
circular
>30% women
in senior 
management
2023
2030
-55% energy 
consumption vs. 
2010
All new cars 
use non-fossil 
fuel
2025
Management 
incentivized
2011 
ESG Webinar 2021
6

7
ESG Webinar 2021
Enhancing impact through collaboration and standardization

8
ESG Webinar 2021
Well ranked in most important sustainability ratings
Telco MSCI ratings:
KPN
AAA
Tele2
AAA
Telia
AAA
Telenor
AAA
BT
AA
Elisa
AA
Orange
AA
Swisscom
AA
Telefónica Deutschland
AA
Vodafone
AA
Cellnex
A
Inwit
A
Telefónica
A
Deutsche Telekom
BBB
OTE
BBB
Proximus
BBB
Telecom Italia
BBB
United Internet
BBB
Liberty Global
BB
10 years
in a row
Source: MSCI, latest available

9
ESG Webinar 2021
Innovation focus: enabling sustainability through connectivity
Safeguard privacy & security 
and foster innovation
Leverage and expand 
superior network

10
ESG Webinar 2021
Ambition to cover the Netherlands through fiber
homes passed as % of total NL households
Expand superior network: covering the Netherlands through fiber
Exponential data growth over the years 
Leader in digitalization of the Netherlands; fiber rollout 
accelerated
Fiber is fast, reliable and sustainable
Rolling out fiber creates opportunity to phase out significantly
less energy efficient legacy infrastructure
Network supports reduction greenhouse gas emissions as 
fiber allows people to travel less
3.1m homes passed per Q3 2021 
Secured contracting capacity
Scaling up roll out to ~10k per week
Aiming to reach ~80% FttH coverage by 2026
together with Glaspoort (JV with APG)
31%
34%
~80%
2026
2019
2020
YTD 2021
38%
KPN footprint
Glaspoort footprint

11
ESG Webinar 2021
Excellent 5G position
Leading 
5G ecosystem
Differentiated 
5G services
Leading in
Security
Track record in critical 
networks and innovation
Ookla awards
Best mobile network
and 
Fastest 5G 
in the Netherlands
Best mobile network and fastest 5G in the Netherlands
Source: Ookla Speedtest Intelligence® data over first six months of 2021
Best mobile network
Highest download speed
Highest upload speed
Best coverage
Fastest 5G

12
ESG Webinar 2021
Supporting businesses and Dutch society towards cyber resilience
Joining forces with Europol, FBI, Public
prosecution service and police
Part of CSR (Cyber Security Council) and 
CIP (Centre for Information Security 
and Privacy Protection) 
Educating governmental bodies, companies 
and students to make the Netherlands
more cyber resilient
Part of Tech against COVID-19; protecting 
governments, aid workers, care providers
and hospitals
Largest
Security provider in 
the Netherlands

13
ESG Webinar 2021
PiM app
App that enables people to 
provide proof of identity in a 
simple way, while personal 
data are optimally protected
Bringing innovation closer to the business
PIM
TAAF
Health Exchange
SaaS platform enabling 
secure data exchange  
between hospitals and other 
health institutions
Home Office
Hybrid working package 
offers same secure digital 
working experience at home 
as in the office to employer 
and employee

14
ESG Webinar 2021
Society focus: provide internet access for everyone and everything
Promote diversity & inclusion
Connecting the Netherlands

15
ESG Webinar 2021
Promote diversity & inclusion
Inclusion included in purpose: 
We go all out to connect everyone to a 
sustainable future
We do this with a diverse workforce where 
people are allowed to be themselves and where 
we embrace differences
WINQ
Diversity Award
For KPN’s long-term 
commitment to 
LGBTQIA+ community
Gender Diversity
• Achieved: Board of Management and Supervisory 
Board currently consist of 1/3 female members
• Ambition: >30% women at and above scale 12 by 2023
Cultural Diversity
• KPN joined Agora Network, Dutch non-profit 
foundation promoting cultural diversity
• Internal network Kleurrijk KPN
Digital inclusion & accessibility
• Connecting lonely people (KPN Mooiste Contact Fonds)
• Connecting chronically ill children (KPN Klasgenoot)

16
ESG Webinar 2021
KPN KlasseContact project
Connecting chronically ill children
KPN Klasgenoot
At the heart of society: connecting the Netherlands
Arts & Culture
Rijksmuseum
Royal Concertgebouw
Depot Boijmans van Beuningen

17
ESG Webinar 2021
Environmental focus: connecting the Netherlands to a sustainable future
Reduce energy consumption 
& carbon footprint
Advance circularity

18
ESG Webinar 2021
Recycling
Design
Collection
Code of Conduct
Consumption
Distribution
Production
How we do business: committed to a circular economy 
Code of Conduct
•
Suppliers need to comply 
with KPN Code of Conduct or 
have own equivalent
Consumption
Create recycling awareness with:
•
Customers/end-users
•
Suppliers/partners
•
Government bodies
Collection
Collaborating with:
•
Customers/end-users
•
Suppliers/partners
•
Government bodies
Recycling
•
New recycling technologies
•
Optimize reporting on waste
•
Standardization
•
Facilitate disassembly
Supplier engagement and 
external benchmarking
•
JAC (supplier risk mitigation)
•
Ecovadis Scorecard
Distribution
Improving logistics
•
Review line-haul from China
•
Use local transport
Production
•
Reducing sourcing risk
•
Renewable raw materials
•
Product lifecycle analysis
•
Efficient carbon/energy/waste
Design
•
Recycled plastic covers
•
Smaller design
•
Low carbon
•
Use handling disposal

19
ESG Webinar 2021
Example product circularity report: Fairphone 3
Fairphone consciously chooses 
to source Fairtrade Certified 
Gold to actively improve highly 
polluting and dangerous 
conditions under which it is 
mined. Sourcing from well-
established recycled gold market 
would save 
1.24kg CO2e per unit
Materiality Circularity 
Score:
50 %
73% materials used in 
Fairphone 3 can be recycled
Fairphone 3 designed for disassembly, 
considering refurbish program and 
high levels of product reuse and 
component recovery
54% copper used comes 
from a recycled source
Moving to 100% recycled 
polycarbonate yields 
another carbon footprint 
reduction of 
0.1kg CO2e per unit

Where do we 
go from here?

21
ESG Webinar 2021
Energy consumption (PJ) compared to data communication growth (%)
Energy consumption decreasing, data traffic increasing exponentially
Data usage increased 21-fold while 
energy consumption reduced 37% 
in 2020 compared to 2010
Contributors to further energy 
savings:
Network modernization and simplification
Copper switch off
Network functions virtualization 
Office space reduction
Fleet transformation program
Data communication growth (%) compared to base year 2010
Energy consumption (PJ)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
1,200%
0%
600%
200%
400%
800%
1,000%
1,400%
1,600%
1,800%
2,000%
2,200%
2020
2016
2012
2011
2010
2013 2014 2015
2017 2018 2019
Network
Data usage
Offices and shops
Cars

22
ESG Webinar 2021
in kTon
Scope 1 – Direct emissions 
•
Gross emissions, relating to fuel consumption car fleet and 
heating buildings
26
295
898
17
274
886
Scope 1
Scope 3
Scope 2
2019
2020
Scope 2 – Indirect emissions 
•
Location based emissions, relating to usage of electricity of 
fixed and mobile network, offices and shops
Scope 3 – Emissions in value chain 
•
Emissions during production phase (upstream)
•
Emissions during use phase (downstream)
Savings by ICT
•
Carbon emissions avoided through KPN customers using 
ICT solutions
Carbon footprint
in kTon
290
573
Savings by ICT

23
ESG Webinar 2021
. 
Target

Non-fossil fuel car fleet without compensation in 2030 (scope 1)

Long-term target to maintain yearly zero emissions until at least  
2050 for own operations (scope 1 & 2)
Scope 2 emissions (in kTon)
Scope 1 emissions (in kTon)
Key drivers to lower emissions (scope 1 & 2)
59
26
17
2020
2010
2019
-71%
347
295
274
2010
2019
2020
-21%
Scope 1 & 2 emissions <25% KPN total emissions
Climate-neutral for own operations since 2015 
How?

Updated HR policy regarding car fleet

Convert fleet to electric 

Prepare business cases for offices, retail, technical buildings

Energy innovation lab

Active participation in consortium of 10 Dutch companies
accelerating energy transition

24
ESG Webinar 2021
. 
Target

Reduce absolute scope 3 emissions by 20% by 2025, 30% by   
2030 and 50% by 2040 against a 2014 baseline
Roadmap scope 3 reduction (in kTon)
~65%
>50%
Key drivers to lower emissions (scope 3)
1,063
898
886
851
744
532
2030
2014
2019
2025
2020
2040
-17%
-20%
-30%
-50%
Scope 3 emissions ~75% KPN’s total emissions 
How?

Engaging with suppliers in value chain 

Selecting vendors based on sustainability criteria

Reducing impact of materials via circular economy principles

Introducing energy savings features using in-home equipment

Reviewing international and local transport modes

Engaging with key suppliers in collaboration with other telecom 
members of JAC

25
ESG Webinar 2021
Content
1. The world around us
2. KPN’s Strategy & Sustainability Approach
3. Environmental focus (SDG 12)
4. Innovation focus (SDG 9)
5. Society focus (SDG 11)
6. CSR & Financing
7. Summary
8. Appendix
CSR & 
Financing

26
ESG Webinar 2021
Sustainability-Linked 
Revolving Credit facility
Aug 2021, issue € 1bn revolving credit
Targets (SPTs)

Accelerating digitalization of the 
Netherlands by rolling out fiber 

Reduce KPN’s energy consumption

Reduce carbon emissions in supply 
chain 
Penalty if targets are not met
Coupon step-up(s), coupon step-
down(s) and/or a higher repayment 
amount
Sustainability-Linked 
Finance Framework
Nov 2021, issue € 700m SLB
Coupon 0.875% p.a., maturity 2033
Targets (SPTs)
Reduction absolute scope 3 
emissions by 30% by 2030
1
Penalty if target is not met
Coupon step-up
Integrated sustainability into core financing instruments
KPN’s Sustainability-Linked Finance 
Framework aligned with
Decarbonization targets externally
validated by
Second Party Opinion by
Sustainability 
Linked Loan 
Principles
1. Against a 2014 baseline

Key 
Messages

ESG Webinar 2021
28
Key messages
ESG fully embedded in strategy and organization
Sustainable investments drive Dutch digitalization
Strong progress & ambitious targets on reducing carbon footprint
Integrated sustainability into core financing instruments
Continuously recognized by leading ESG benchmarks
Enabling sustainability through connectivity

ESG Webinar 2021
29
Safe harbor
Alternativeperformancemeasuresandmanagementestimates
This financial report contains a number of alternative performance measures (non-GAAP figures) to provide readers with additional financial information that is regularly reviewed by management, 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 are not uniformly defined by all companies including KPN’s peers. Numerical reconciliations
are included in KPN’s quarterly factsheets and in the Integrated Annual Report 2020. KPN’s management considers these non-GAAP figures, combined with GAAP performance measures and in conjunction with
each other, most appropriate to measure the performance of the Group and its segments. The non-GAAP figures are used by management for planning, reporting (internal and external) and incentive purposes.
KPN’s main alternative performance measures are listed below. The figures shown in this financial report are based on continuing operations and were rounded in accordance with standard business principles. As a
result, totals indicated may not be equal to the precise sum of the individual figures.
Financial information is based on KPN’s interpretation of IFRS as adopted by the European Union as disclosed in the Integrated Annual Report 2020 and do not take into account the impact of future IFRS
standards or interpretations. Note that certain definitions used by KPN in this report deviate from the literal definition thereof 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. KPN defines revenues as the total of revenues and other income. Adjusted revenues are derived from revenues (including other income) and are adjusted
for the impact of incidentals. KPN defines EBITDA as operating result before depreciation (including impairments) of PP&E and amortization (including impairments) of intangible assets. Adjusted EBITDA after
leases (‘adjusted EBITDA AL’) is derived from EBITDA and is adjusted for the impact of restructuring costs and incidentals (‘adjusted’) and for lease costs, including depreciation of right-of-use assets and interest
on lease liabilities (‘after leases’ or ‘AL’). KPN defines Gross Debt as the nominal value of interest-bearing financial liabilities representing the net repayment obligations in Euro, excluding derivatives, related
collateral, and leases, taking into account 50% of the nominal value of the hybrid capital instruments. In its Leverage Ratio, KPN defines Net Debt as Gross Debt less net cash and short-term investments, divided by
12 month rolling adjusted EBITDA AL excluding major changes in the composition of the Group (acquisitions and disposals). The Lease adjusted leverage ratio is calculated as Net Debt including lease liabilities
divided by 12 month rolling adjusted EBITDA excluding major changes in the composition of the Group (acquisitions and disposals). Operational Free Cash Flow is defined as adjusted EBITDA AL minus capital
expenditures (‘Capex’) being expenditures on PP&E and software. Free Cash Flow (‘FCF’) is defined as cash flow from continuing operating activities plus proceeds from real estate, minus Capex. Return on capital
employed (‘ROCE’) is calculated by the net operating profit less adjustments for taxes (‘NOPLAT’) divided by capital employed, on a 4-quarter rolling basis. Net operating profit is the adjusted EBITA (excluding
incidentals and amortization of other intangibles and including restructuring costs). KPN defines capital employed as the carrying amount of operating assets and liabilities, which excludes goodwill and the other
intangibles. 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-lookingstatements
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. A number of these factors are described (not exhaustively) in the Integrated Annual Report 2020. All forward-looking statements and ambitions stated in this financial report that refer to a
growth or decline, refer to such growth or decline relative to the situation per 31 December 2020, unless stated otherwise.
29

Thank you