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kpn Press release 27 July 2021 KPN delivers mass - market service revenue growth in Q2 ; on track to reach full - year outlook • • • Executing strategy and delivering on commitments ahead of schedule by growing mass - market service revenues Return to mobile service revenue growth in Consumer for first time since Q1 2017 Consumer realizing + 23k broadband net adds , of which 22k related to Oxxio acquisition Sequential service revenue growth in SME , on track to stabilize by year end Passed the milestone of 3 million fiber households ; Glaspoort JV operational Recognized as best mobile network and fastest 5G in the Netherlands Adjusted EBITDA AL + 0.6 % y - on - y ; investments in customer support resulting in higher NPS Additional capital returns structural part of shareholder remuneration , € 200m SBB program in 2021 Message from the CEO , Joost Farwerck " We go all out to connect everyone in the Netherlands to a sustainable future and to create value for all stakeholders . We delivered growth in mass - market service revenues ; an important proof point of the success of our strategy and a first step towards sustainable top - line growth for the Group , which showed slight growth as well this quarter . We have further improved the quality of our mobile network , we have improved customer experience , and we're on track to reach our full - year outlook . We are building a fiber company and we're installing fiber at a record pace . During the quarter we've passed the milestone of three million fiber connections . Today , almost half of all Dutch households have a fiber connection ; the vast majority via KPN . Thanks to the Glaspoort JV , which is now operational , we will be able to further accelerate our ambition and commit to jointly covering approximately 80 % of the Netherlands with fiber by the end of 2026. Our mobile network has once again been recognized as the best in the Netherlands with best coverage and fastest 5G . Thanks to the efforts of all colleagues and our investments in the quality and reliability of our digital services , the customer experience and NPS are again improving . For the first time in four years we've seen growth in Consumer mobile service revenues , supported by the strong commercial performance of our Unlimited data proposition . Total mobile net adds in Consumer and Business continued to grow strongly . In SME , our service revenue trend is improving and is on track to stabilize in the second half this year . In Wholesale we see continued strong performance , backed by our open wholesale access policy and several renewed broadband and MVNO agreements . With ESG fully embedded in our strategy and operations , we are contributing to making the Netherlands a better place to live . While we keep investing to drive future growth and maintain room for value creating growth opportunities , we pay out a progressive dividend that is comfortably covered . The confidence in our strategic plan and successful execution gives us comfort around our multi - year cash generation perspective , enabling us to structurally return additional capital to our shareholders . As a first step , we intend to buy back shares worth 200 million euros this year . " Key figures Group financials ( unaudited ) Q2 2020 Q2 2021 A y - on - y H1 2020 H1 2021 A y - on - y ( in € m , unless stated otherwise ) Adjusted revenues Adjusted EBITDA AL 1,292 585 1,296 589 + 0.2 % 2,622 2,586 -1.4 % + 0.6 % 1,160 1,156 -0.3 % As % of adjusted revenues 45.3 % 45.5 % 44.3 % 44.7 % Operating profit ( EBIT ) 233 1,093 > 100 % 449 1,329 > 100 % Net profit 135 800 > 100 % 255 941 > 100 % Capex As % of adjusted revenues Operational Free Cash Flow 295 304 + 3.3 % 572 22.8 % 23.5 % 21.8 % 625 24.2 % + 9.2 % As % of adjusted revenues Free Cash Flow 291 22.5 % 177 As % of adjusted revenues 13.7 % 284 22.0 % 179 13.8 % -2.1 % + 1.2 % 588 22.4 % 257 9.8 % 531 20.5 % 301 11.7 % -9.6 % + 17 % Net debt 5,248 5,201 ROCE 9.8 % 10.3 % KPN Q2 2021 results 1