18 December 2018Reading time: 2 minutes

KPN is a Dutch telecommunications and information company. KPN provides mobile & fixed telephony services, fixed and mobile broadband Internet and television to retail consumers.

The company's operating fields is very diverse including Consumer; Business; Network, Operations & IT; Wholesale, and iBasis. The company also provide infrastructure and network related ICT solutions to business customers, including other telecommunications operators. KPN also provides wholesale network services to third parties and operates an Internet protocol (IP)-based infrastructure for international wholesale customers through its subsidiary, iBasis. The company's brands include KPN, Telfort, XS4ALL, Simyo, Yes Telecom, Ortel and iBasis. To Sum up the company philosophy, KPN makes life more free, easy and more fun by connecting people.

KPN’s strategic priorities are built around 3 pillars, which will enable sustainable organic growth for the firm.

First pillar is to build the best converged smart infrastructure allowing a best-in-class customer experience. This ensures a growing footprint for the company by acquiring new clients and retain existing ones.

The second pillar is to focus on profitable growth, the company has chosen to strengthen investment in particularly promising area. According to the management,KPN will leverage on its strong market position in a value over volume focus. Moreover, the digitalization of KPN’s operation model should reach a next level in the coming years allowing the company to lower costs. KPN wants to offer a simple and standardized product portfolio to clients, grow selectively in IT and grow in converged connectivity services. All these tasks should drive the stabilization of the Adjusted EBITDA by mid-2020.

The third pillar focus on further digitalization and simplification of KPN’s business. The simplification initiative has been launched in 2014 by the company and since them over 650 million has been saved by the company. This initiative will help to deleverage KPN and to stay committed to a solid investment grade profile.

These trends should result in sustainable Free Cash Flow growth implying a progressive regular dividend per share, however the future development remains to be seen.
The stock price of KPN’s share is now quoting at EUR 2.56 (December 14th 2018). 52-week high was at 2.95 EUR. The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

Important legal information:

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

Fordetailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: Additionally, the Base Prospectus, anysupplements to the Base Prospectus and the Final Terms are available inprinted form, free of charge, at the registered office of the issuer: Vontobel Europe AG, Bockenheimer Landstrasse 24, 60323
Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.
Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.


18/02/2020 16:17:54