Moving fast forward

We are strongly committed to connecting everyone in the Netherlands to a sustainable future, a responsibility we take very seriously. Our investments over the years have resulted in excellent networks and together with our services we help the country move forward in its digital transformation.

Transformation into a fiber company

With the roll-out of fiber and 5G, we are leading the way in the digitalization of the Netherlands. In 2022, for the first time, we had more retail customers using fiber services than copper. In 2023, we will pass the threshold where more than half of all households in the Netherlands will have access to a fiber connection of KPN or our joint venture Glaspoort. With this, we are working to set a new standard for internet quality in the country, helping consumers, businesses, and Dutch society move forward.

Our efforts around network infrastructure are contributing to the transformation of KPN into a modern fiber company. This enables us to deliver the fastest connectivity and to serve our customers in a more efficient way.

Long-term value creation in a competitive playing field

We have been successful in 2022, delivering on the promises in our Accelerate to Grow strategy. Through innovation, we improved our products and services for our customers, and achieved the planned growth in service revenues. The turnaround in the Business market – especially in the SME segment – was an important milestone in this regard. In the Consumer market, we switched many customers to our KPN Unlimited proposition and fiber with speeds of 1 gigabit per second, underscoring growing customer demand for unlimited data usage in mobile and higher speeds.

These efforts were also recognized externally. Consumers voted KPN as the best internet service provider on both fiber and copper, and our mobile network was recognized as the best in the Netherlands as well as globally. These are results to be proud of, and I’d like to thank all our colleagues and partners for their contribution in this success.

Solid financial performance 

We have achieved strong financial results, showed growth, and maintained our solid financial position due to our strategic progress. This enables us to take good care of all stakeholders. We invest heavily in an excellent customer experience, and in the quality of our fixed and mobile network. We also invest in our employees, which is reflected in a salary increase for 2023, training programs and a work from home allowance. At the same time, we have room for strategic projects, the purchase of 3.5 GHz spectrum licenses. And we offer our shareholders an attractive return. 

In the competitive market in which we operate, clear regulation is important. In 2022, the Netherlands Authority for Consumers and Markets (ACM) declared a proposal from KPN regarding wholesale access by other service providers to our fiber network as binding. This creates clarity and stability in the market for a period of about eight years. 

Cybersecurity 

In 2022, cybersecurity was once again on top of our agenda. We are able to turn our plans into action thanks to the expertise of our people, our professional organization, and our ability to cooperate decisively with business partners, science, and government parties. Through the work of our Chief Information Security Office (CISO) team, and active participation in the Cyber Security Council (CSR) and other working groups, we can mitigate risks together. Protecting the vital domains of the Dutch digital infrastructure is crucial, and a permanent focus within KPN. A report by the Dutch Authority for Digital Infrastructure on the safeguards in the lawful intercept wiretapping chain are providing feedback for us to continue to guarantee security at the highest level. The trust that customers and other stakeholders have in KPN is of paramount importance to us. 

Clear environmental targets

We continue to score highly on sustainability rankings such as the MSCI and CDP and we are committed towards ambitious environmental objectives, both in the short and long-term. In doing so, we link our ambitious targets directly to our green financing instruments.

We also set clear conditions for suppliers so that, for example, the hardware we supply to customers is sustainable and enables them to save on energy consumption. Partly due to COVID, we increased hybrid working, which makes us more efficient, due to the reduced footprint of our offices and less travel by our employees. 

Connected together

KPN is at the heart of society, and society is at the heart of our company. We want to be an organization that is there for everyone and that reflects society. We aim to stimulate social contact, a basic necessity of life and extremely important for the well-being of people. For people who feel lonely we organize various special projects and activations with our KPN Mooiste Contact Fonds which celebrated its 15th anniversary in 2022. Within KPN, we constantly pay attention to inclusion and diversity, through initiatives such as ‘KPN Pride’ and ‘Colorful KPN’ (‘Kleurrijk KPN’). This strengthens mutual connection, helps us to have relevant conversations and makes us a better company. 'We get postive feedback on this from independent organizations focussing on fostering diversity and inclusion in the workplace, like Taskforce Diversiteit & Inclusie (D&I) and SER Diversiteit in Bedrijf.

Proud of TEAM KPN 

Our gratitude goes to all employees who have helped KPN and its customers move forward this year. Employee engagement remains high, and colleagues continue to express their pride in working at KPN. We want to make KPN one of the greatest places to work in the Netherlands. 

We constantly invest in making teams and individuals stronger, so working towards a culture in which engagement and better performance go hand in hand. Modern facilities, good terms of employment, and room for talent development are essential to this. For our colleagues, we try to limit the impact of rising costs; in 2022, we twice paid employees a supplementary contribution. We also agreed on a salary increase for 2023 with the trade unions. 

Looking ahead to 2023 

2022 was a year of growth for KPN. Our strategy is paying off. Thanks to our investments, we are transforming the company step by step. In the coming year, we intend to continue on this course. Despite the challenging economic context, we will focus on service revenue growth and remain focused on costs. 

I am looking forward to 2023 with confidence, and thank all our employees, customers, shareholders, friends, and other stakeholders for their support. 

Joost Farwerck,
CEO and Chairman of the Board of Management of KPN