KPN Integrated Annual Report 2021
Contents
Report by the Board | Report by the | Financial | |
Contents | of Management | Supervisory Board | Statements |
Report by the Board of Management
Introduction by the CEO 4
Our purpose and the world around us 7
Strategy, key performances and value creation model 10
Our value for stakeholders
- Customer value 15
- Shareholder value 22
- Impact on society 26
Our performance
- Network infrastructure 30
- Focused innovation and digitalization 34
- Safeguarded privacy and security 38
- Sustainable employability 42
- Environmental performance and responsible 47 supply chain
Our valuable assets 53
Governance
Corporate governance 55
Tax and regulations 59
Compliance and risk 63
Composition of the Board of Management 71
Report by the Supervisory Board
Composition of the Supervisory Board 74
Supervisory Board Report 77
Remuneration Report 84
Financial Statements
Consolidated Financial Statements 96
Corporate Financial Statements 158
Other information 165
Appendices
Appendix 1: Alternative performance measures 174
Appendix 2: Connectivity of non-financial information 176
Appendix 3: Transparency, materiality and 179 stakeholder engagement
Appendix 4: List of top risks 194
Appendix 5: Social figures 202
Appendix 6: Environmental figures 204
Appendix 7: Supply chain 209
Appendix 8: Tax overview for continuing operations 211 per country
Appendix 9: GRI index 212
Appendix 10: SASB index 220
Appendix 11: Glossary 222
Statement - This copy of the Integrated Annual Report is the PDF/printed version of the KPN Integrated Annual Report 2021. This version has been prepared for ease of use, and does not contain ESEF information as specified in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815). The offi cial ESEF reporting package is available on our website at:https://annualreport2021.kpn/
Report by the Board | Report by the | Financial | ||
Contents | of Management | Governance | Supervisory Board | Statements |
Introduction by the CEO
Into the future, together
Our resilience was tested again in 2021, more than we had hoped. It was another year in which our digital services enabled people to work from home, to follow education online or to keep doing business while stores were closed.
Once again, online access was often the only door to the outside world and contact with others. The pandemic is accelerating the digitalization of our lives in countless areas and in unprecedented ways. The data usage on KPN's networks, which broke records again last year, mirrored the various high and low points we all experienced.
Robust progress on strategy
We succeeded in making strong progress with our Accelerate to Grow strategy last year, thereby concretely demonstrating our purpose: we go all out to connect everyone in the Netherlands to a sustainable future. Our ambition is to make the Netherlands the best-connected country in the world - a country where everyone is secure online, and can reap the benefits the digital world has to offer.
Our Accelerate to Grow strategy is beginning to be reflected in our results, too. The number of broadband customers we have, is moving in the right direction; we are seeing growth in mobile and our growth in wholesale continues. A key milestone for us last year was the positive development in the SME segment, which has grown service revenue even sooner than expected.
The quality of our networks is significantly boosting customer satisfaction. We have successfully accelerated our journey to sustainable growth and long-term value creation last year - and we are all set to continue.
After years of declining revenues, we achieved growth in the mass market segments in 2021. In financial terms, we closed the year in line with our ambitious goals, with growing EBITDA and free cash flow. We are offering shareholders a growing dividend and have completed the first tranche of share buybacks to return additional value to shareholders.
Competitive market
With a large number of providers and wide choice for consumers, the Dutch telecommunications market is promising and competitive. Moreover, there are many asset-light players that use our networks for their sharply-priced offerings. The high quality of the digital infrastructure makes the Netherlands an attractive market for launching new products and services. Gaming, e-sports and streaming services are increasingly popular - and customers expect a lot from their digital connections as a result.
We are well-positioned to continue to lead this market thanks to the targeted innovation of our networks, our attractive services and effective organization. The unsolicited takeover proposals we received last year are one of the clear signs that the telecommunications market itself is in demand. We considered these proposals carefully, taking into account the interests of all our stakeholders, and concluded that they did not provide tangible and material added value to our strategy.
Strong networks
The Netherlands builds a high-quality, future-proof digital infrastructure based on fiber and 5G, enabling a first class internet experience. With our strategy, we are playing a leading role in this. The power of these networks opens new avenues for economic growth, as well as digital opportunities in many areas.
Contents
Report by the Board of Management
Introduction by the CEO
Report by the Supervisory BoardFinancial Statements
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Koninklijke KPN NV published this content on 13 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2022 11:36:07 UTC.