Sustainability Report 2007

Report by the CEO 2

1 Sustainable growth
New CSR policy
4

2 Who we are
Organising growth
8

3 Winning the hearts of customers

Customer satisfaction and loyalty
13

4 Setting a course for gains for society

Investors
19

5 Working in a new world

A changing relationship with employees
22

6 People connected
Focus in our contribution to society
28

7 Sustainable products and services

Better care, fun education
34

8 Like-minded partners
Working with sustainable suppliers
40

9 ‘Clean’ working
Towards a better environment
42

Assurance Report 49

Accountability in relation to GRI standards 51

Appendices 54

Wherever you see this icon in this report it

means you can find more information on the
website concerned.

KPN Sustainability Report 2007 Contents

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 Welcome to our 2007 Sustainability
Report. KPN is the market leader in ICT and
telecommunications services and wants
to strengthen its role in Corporate Social
Responsibility (CSR). We want to contribute
tangibly to solving issues facing society and
to rank among the best companies in society.
Our goal is to be valued by our investors,
employees and customers as a company that
is reliable, service-minded and profitable.
KPN is striving for sustainable operations and
accepts its responsibility for its products and
services. We want to demonstrate our social
commitment more emphatically.

Highlights in 2007
• New policy on Corporate Social Responsibility; built on
three pillars
• Super Contact Fund (Mooiste Contact Fonds); setting
up a fund to help bring disconnected people from their
social isolation
• My Child Online (Mijn Kind Online); developing new
initiatives to make children more ‘media wise’
• School Online; renewing the offering of free internet
access for three years for primary and secondary schools
• Teleworking; clearing the road towards a sustainable
society
• Setting up a Code of Conduct for suppliers
• Energy; taking initiatives and launching pilot projects
to reduce carbon dioxide (CO2) emissions

KPN Sustainability Report 2007 Highlights 

 Message from
the CEO

 KPN Sustainability Report 2007 Message from the CEO

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 Working sustainably and growing our business.
This is the challenge KPN faces.
We unveiled our ‘Back to growth’ strategy on February 5, 2008. To fulfil our growth ambition
we have short-term expansion plans for the services we provide to our customers. They include
broadband and television services in the consumer market and total ICT solutions for the
business segment. By focusing on IP-based services and rolling out our fibre optic network,
we are going to simplify business processes drastically. This will produce substantial cost
savings. The money this frees up will be invested in the further growth of our sales.

As the market leader in the Netherlands and a challenger in other countries, our activities form
part of the everyday lives of millions of people. This places responsibility on us. At KPN we
consider it a logical ambition to increase our contribution to society while pursuing growth.

People connected is the core activity of KPN. For 125 years now, we have been putting people
in touch with each other. But some people who are lagging behind are in danger of losing
contact with those around them because of the rapid advances in new media. As the premier
connector in the Netherlands, we want to reduce this digital gap and reconnect socially
isolated people with their friends, families and neighbours so that they can participate fully in
mainstream society and develop personally.

Through its products and services, KPN is also in a position to contribute to mobility in the
Netherlands, for example by reducing dependence on a fixed place of work. KPN additionally
wants to do its part to economise on the energy consumed when providing services. We are
doing this by offering new products that are simple to use and consume the least possible raw
materials and energy. The new fibre optic network of KPN, which will be put into service
gradually from 2008, requires less maintenance than traditional cabled networks, thus
reducing the energy needed to provide servicing.

We set out these objectives in 2007 in our new policy on Corporate Social Responsibility. In this
report, we want to highlight the valuable performance of KPN employees in the sustainability
field and explain what we still intend to do. Your comments are welcome. We are open to
suggestions about how to achieve our goal of combining growth with even more sustainable
working methods.

Ad Scheepbouwer
Chairman of the KPN Board of Management

KPN Sustainability Report 2007 Message from the CEO 

 Sustainable
growth
1 Over the next three years KPN plans to get back
to growth. We want to be the best in class among
telecommunications and ICT companies. That explains
why we also want to be a front runner when it comes
to Corporate Social Responsibility (CSR). To pursue
this objective KPN formulated a new CSR policy in
2007. We have already taken the first steps towards
implementing it. In the coming years we are going to
invest a lot in our endeavour also to be best in class
when it comes to Corporate Social Responsibility.

 KPN Sustainability Report 2007 Sustainable growth

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 New CSR policy
Back to growth
KPN has unveiled the next phase of its strategy: ‘Back to growth’. At KPN we have made a
number of strategic decisions aimed at increasing our sales and profits in the coming years.
In the consumer market segment, we intend to strengthen our leading position as a service
provider by working in an even more customer-focused way. We want to simplify our product
portfolio, enabling customers to choose from a clear range of products, services and brands,
including some new ones. Our servicing must be improved by adhering to the principle of first
time right, or dealing correctly with requests and complaints in one go. In the business market
segment, KPN’s ambition is to become the biggest provider of comprehensive solutions for ICT
services. We want to be the preferred supplier in the principal market segments, while at the
same time maintaining our strong market position for infrastructure services. Steps including
a large-scale switchover to IP-based services and the roll-out of a fibre optic network will
enable KPN to simplify its services and its organisation significantly. This will save costs and
allow us to invest more in growth and ongoing improvement of our profitability.

Towards a new CSR policy

KPN strives for responsible, sustainable growth. Growth creates scope for innovation, but it
also brings responsibility. With this in mind, we decided in 2007 to develop a new policy on
Corporate Social Responsibility to go alongside our growth strategy for 2008-2010. Research
conducted by Towers Perrin-ISR among KPN employees (see chapter 5, ‘Working in a new
world. A changing relationship with employees’) revealed that our workforce clearly felt the
need for KPN to have a social face.
KPN set down its strategic policy on CSR in 2007. Our policy is based in part on trend
analyses and the vision that we and our stakeholders have of KPN’s role in relevant issues in
society. Basic premises were that we wanted to focus on society’s essential needs insofar as
appropriate to KPN based on its history, core competences and core values (simple, personal,
trust). Through our CSR policy we also want to inject greater focus into our activities to foster
greater commitment among our employees, customers and partners.
In summer 2007, KPN established a steering group that was given the remit of drawing
up our new CSR policy. The goal was to name a number of clear spearheads appropriate to the
criteria we had defined earlier, such as alignment with relevant social issues and the core
competences of KPN. All parts of the KPN group are represented in the steering group to
ensure that the choices fit, closely with KPN’s core values. The steering group put forward a
detailed proposal for a new policy in 2007. It was approved by the KPN Board of Management
in November 2007.
The new CSR policy sets the direction for all the Dutch activities of KPN. The policy will be
translated into our international activities in 2008. The CSR steering group will also draw up an
action plan for 2008. This has already been done for our first spearhead, ‘People connected’.

KPN’s CSR policy is built on the following three pillars:

1. People connected
Contact with others is not as straightforward as it seems. In today’s new world, with the
internet, mobile phones and a rapidly growing knowledge-driven economy, there are some
people who are not connected. A large number of Dutch people are disconnected. They face
social isolation. For more than 125 years, KPN has been putting people in touch with each
other. As the premier connector in the Netherlands, we want to get people out of their
isolation and help them to reconnect with each other and the world.

2. Keeping the Netherlands on the move

Mobility in the Netherlands is under considerable pressure. Neither the economy nor the
environment benefits from the congestion on the roads in which millions of Dutch people get
stuck every day as they head to work. KPN is the ideal party to offer products, ideas and
services that will give people the room they need to restore the balance between their
personal and working lives. They can do this by using their time more flexibly by teleworking
and thereby avoiding the rush hour. As an employer, KPN enables its employees to work from
home and to telework. KPN also wants to stimulate and play a lead role in the debate in society
about mobility.

3. Responsible energy use

The telecommunications and ICT sector is an energy-intensive one. This is becoming an
increasingly important factor, particularly when we look at the growth expected in the
coming years. As market leader KPN wants to set the pace in energy efficiency. We welcome
the government’s energy targets and want to use a larger proportion of green, renewable
energy and increase the energy efficiency of our products and services.

KPN Sustainability Report 2007 Sustainable growth 

 Stakeholder dialogue
The formulation of policy dominated 2007 at KPN. In recent years, we have spoken to various
stakeholders and exchanged ideas with them. KPN took this input into account when choosing
the pillars of its policy. In 2008 and the years beyond, KPN intends to check its policy in
consultation with parties in the community at large. To flesh out the theme of ‘People
Connected’, KPN commissioned the BrandDoctors agency in 2007 to ask employees and
customers for their ideas.
KPN is a member of the European Telecommunications Network Operators Association
(ETNO). ETNO promotes sustainable working practices in the telecommunications sector. KPN
intends to join Green Grid, an organisation established in 2007 by companies including IBM,
Hewlett-Packard, Dell and Intel. Green Grid exchanges best practices in energy saving and
develops technologies that reduce energy consumption at data centres.

GRI and external verification

Criteria
This report is based on the guidelines of the Global Reporting Initiative (GRI), an international
organisation that provides global standards for reporting on sustainability. KPN believes its
report meets level C+ of GRI G-3 of 2006.
Reporting in accordance with GRI requires a clear approach undertaken in a number
of steps: from analyzing issues, and mapping out policy to elaborating and monitoring it. In
2007, KPN formulated its CSR policy and it was approved by the Board of Management. The
policy will be elaborated further and monitored in 2008. Our policy has injected greater focus
into this report.

Initial results of The Super Contact Fund entered into

‘People connected’
KPN established the ‘Super Contact Fund’
following a public campaign at year-end 2007
about ‘My Greatest Contact’ (Mijn Mooiste
Contact). This fund is going to reconnect
people for whom contact with their
environment is not straightforward. We are
working on this together with partners with
proven experience in this field.
a partnership with Ziezon, an organisation
that helps children affected by prolonged
illness to keep in touch with their classmates
by computer, webcam and other new media.
The fund also cooperates with the Nationaal
Fonds Ouderenhulp (National Fund for Help for
the Elderly). Along with employees of the fund
KPN volunteers are going to staff a bus that
will visit 160 locations to familiarise senior
citizens with new media. More information
about these activities can be found in chapter
6, ‘People connected. Focus on our
contribution to society’.
The Super Contacts Fund wants to
mobilise more than 1,000 current and more
than 100 former KPN employees as volunteers
for social projects. The governing board of
the fund, which was formed in 2007, consists
of KPN managers, including Baptiest
Coopmans, a member of the KPN Board of
Management and the Corporate Social
Responsibility portfolio owner.

 KPN Sustainability Report 2007 Sustainable growth

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 Scope
From the numerous themes for each chapter, KPN has made a selection based on relevance,
priority and its CSR policy. In each chapter we deal at length with two or three key issues.
Additional data can be found in the appendices. This year’s GRI table does not include the
additional indicators from the sector supplement for telecommunications.

Boundary
KPN is reporting in this report on the parent company and on subsidiaries in which KPN holds
a controlling interest of more than 50% (unless otherwise stated). These subsidiaries are
Digitenne, Intis Networks (KRAL), KCC Nederland (KPN Contact), Planet Internet, Telfort and
XS4ALL in the Netherlands. The ‘International’ activities cover BASE in Belgium and E-Plus in
Germany. The report excludes the activities of Getronics.

The following matters should be noted:

• in the area of human resources and community activities, we make a distinction between
the KPN NL Social Entity and the company’s Dutch participating interests. The KPN NL
Social Entity refers to all employees who are covered by the KPN Collective Labour
Agreement or who have a personal contract of employment with KPN.
• Chapter 6 does not include the activities of XS4ALL because it publishes its own
sustainability report.

Assurance
An independent external party, KPMG Sustainability, has reviewed our sustainability report.
KPMG’s Assurance Report can be found on page 49. Where possible KPN acts upon
recommendations made during these yearly assessments for adjustments to its reporting
(process).

Response?
KPN invites interested parties to enter into dialogue with us about our sustainability policy and
report. All reactions are welcome at the following e-mail address: duurzaamheid@kpn.com.

KPN Sustainability Report 2007 Sustainable growth 

 Who we are

2 KPN is the leading telecommunications and ICT service

provider in the Netherlands, offering fixed line and
wireless telephony, internet and TV to consumers and
end-to-end telecommunications and ICT services to
business customers. In Germany and Belgium, KPN
pursues a multi-brand strategy in its mobile operations
and holds third-place market positions through E-Plus
and BASE. KPN provides wholesale network services
to third parties and operates an efficient IP-based
infrastructure on a global scale by international
wholesale through iBasis.

 KPN Sustainability Report 2007 Who we are

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 Organising growth
Profile
Koninklijke (Royal) KPN N.V. was incorporated under the laws of The Netherlands on January 1,
1989. On June 28, 1998 our name was changed from Koninklijke PTT Nederland N.V. to
Koninklijke KPN N.V. We have our corporate seat in The Hague, The Netherlands. We are
registered under number 02045200 at the Commercial Register of the Chamber of Commerce,
The Hague, The Netherlands, and our executive offices are located at Maanplein 55, 2516 CK
The Hague, The Netherlands. Our telephone number is (+31) 70 4460986. Our main objectives
are described in article 4 of our Articles of Association.

New organisational structure 2007

In January 2007 KPN announced a new organisational structure in The Netherlands built
around customer segments rather than products, creating a customer centric organisation.
KPN’s former Fixed division (Fixed) and KPN Mobile The Netherlands (Mobile) were reorganised
into Consumer, Business and Wholesale & Operations Segments.
The organisational integration is a further evolution of KPN’s strategy to increase
customer focus in a telecommunications world in which distinctions between technologies
are fading rapidly and in which customers increasingly are looking for integrated propositions.
The new organisational structure in The Netherlands provides us with the opportunity for an
integrated customer approach. We can offer integrated services, both as a multimedia company
in the Consumer market (fixed, mobile, TV and internet) and as a managed ICT company in the
Business market. KPN is one of the first in the market with such an integrated approach.
The acquisition of Getronics strengthens KPN’s ICT strategy in the Business market.

Organisational structure
KPN’s new integrated organisation in The Netherlands consists of five segments: Consumer,
Business, Getronics, Wholesale & Operations and Other activities including IT Netherlands.
The Segments for Consumer, Business and Getronics operate with a strong market and
customer focus, whereas the Wholesale & Operations Segment provides network services
to both internal KPN segments and external wholesale customers with a strong emphasis on
operational excellence. Outside The Netherlands, the Mobile International division contains
the subsidiaries E-Plus in Germany, BASE and Tele2/Versatel in Belgium and, given the similar
nature of the business, our Dutch mobile wholesale activities. The overview below reflects our
organisational structure as of December 31, 2007.

Board of Management

The Netherlands Mobile International Other

activities

Consumer Business Wholesale & Other activities, Mobile Corporate Center

Getronics * Overige
market market operations including IT E-Plus BASE Wholesale (staff services)
activiteiten
NL

•Voice Fixed line •Voice Fixed line •Benelux •National •Germany •Belgium •Tele 2/Versatel
•Wireless Services •Corporate •The Americas wholesale •Simyo
•Internet Services Solutions •T he United services •Ay Yildiz
•Other, including: •Wireless Services Kingdom •International
–TV and Media; •Network Services •Rest of the world wholesale
–KPN Retail and •Application services,
KPN.com; Services
including iBasis
–Call centres •O ther, including
KPN Sales

* This report excludes the activities

of Getronics, because its
acquisition was not completed
until the fourth quarter of 2007.

KPN Sustainability Report 2007 Who we are 

 Embedding of CSR in the organisation
KPN has entrusted the CSR steering group with implementing its policy on Corporate Social
Responsibility (CSR). The group includes representatives of all parts of KPN. The steering group
members make sure that the three pillars of our CSR policy produce a number of significant
initiatives at each part of the company. The leaders of the project groups report to the
overarching CSR steering group.
Since January 1, 2008, the steering group has been chaired by Baptiest Coopmans,
a member of the KPN Board of Management, and in that capacity the portfolio owner for
Corporate Social Responsibility. This ensures that the KPN Board of Management is kept
informed of the effects of the CSR policy and approves crucial proposals in the CSR field. The
steering group meets around six times a year to keep a watch on the progress and quality of
our CSR policy. We recognise that policy can only be successful if it is properly implemented.

Corporate Social Responsibility in the KPN organisation

CSR Steering Group

Member of KPN Board

of Management

CSR Management

Consumer Business Wholesale & Human Corporate

Market Market Operations Resources Communication

Project group Keeping

Governing board of Project group Project group People
The Netherlands
Mooiste Contact Fonds Responsible Energy Use Connected
on the Move

Risk Management
Risk management is a basic element of good governance and applies to the identification and
analysis of potential risks, which could influence the achievement of our strategic, operational,
financial, compliance and financial reporting objectives, as well as the adequate control of
these risks to an acceptable level.

The parts of our internal risk management and control system most relevant to this
sustainability report are:
1. Code of Conduct;
2. regulatory compliance measures.

Code of Conduct
We are conscious of our social and ethical responsibilities and we wish to ensure that work
practices across the Company are in strict compliance with the law and consistent with social
and ethical norms. To this end, we work in accordance with a Code of Conduct, which sets out
our key values: personal, trust and simplicity. We can be held accountable for our performance
in this regard by all of our stakeholders (customers, shareholders, employees, business
associates, competitors, environmental organisations, international business relations and
the community in the broadest sense).

 KPN Sustainability Report 2007 Who we are

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 To translate the Code of Conduct into practical terms for employees, we have introduced a
number of separate codes to clarify our internal rules. These separate codes are bundled into
four clusters: 1) integrity, 2) competition and telecommunications law, 3) insider trading and
4) information security. To complement the rules in the separate codes we have introduced
three general guidelines: the whistleblower policy, the fraud policy and the protocol on
integrity investigations.

Compliance
Compliance organisation
During 2007 we further strengthened our compliance organisation to reflect the importance
of compliance within our company. The compliance organisation consists of a central Group
Compliance Office, which is supported by Business Compliance Officers in relevant parts of the
business, Compliance Specialists with specific knowledge of certain compliance topics and a
Compliance Advisory Committee, consisting of senior members of relevant staff departments.
The Group Compliance Officer reports to the CEO and the Chairman of the Audit Committee.
The Group Compliance Office focuses on compliance with telecommunications legislation,
as well as competition and privacy legislation.

Training
In 2007, we continued to organise training sessions on competition and telecommunications
law for our employees. The objective of the training programme is to increase the awareness
and the knowledge of employees regarding competition and telecommunications law. The
training programme consists of workshops, in-house designed and tailor-made e-learning tools
and e-tests. In addition, several ‘tone at the top’ meetings have been held to discuss business
ethics. New employees can join this training programme.

‘Code of Conduct’ e-learning tool

An e-learning tool called ‘Code of Conduct’ was made available on the KPN intranet in
December 2007. The tool supports management in making our Code of Conduct and core
values a subject of discussion.

Integrity workshop
We held an integrity workshop in October for senior management, with a focus on setting
a good example. At the workshop, which was chaired by a member of the KPN Supervisory
Board, the Board of Management and managers who report directly to the Board of
Management discussed various dilemmas concerned with setting an example.

Integrity workshop: a
critical look in the mirror
‘Setting an example’ was one of the themes of
the annual integrity workshop held in October
with the senior managers of KPN. ‘The
workshop is a way of anchoring compliance
within our organisation,’ says Group
Compliance Officer Gera van Duijvenvoorde.
‘The Board of Management members and the
managers who report to them looked in the
mirror at the meeting and asked themselves
“Do I set an example for my employees?”.’
‘The senior managers discussed
propositions that really get you thinking,’ said
Van Duijvenvoorde. ‘They definitely agreed on
one thing: good conduct starts at the top. If a
company’s senior management acts ethically,
it will have a favourable effect on the conduct
of all employees’.
‘The top managers also revealed in an
anonymous survey who their own personal
example was. The conclusion was that people
who are transparent and open are the ones
considered honest and inspirational.’

KPN Sustainability Report 2007 Who we are 

 OPTA
On October 8, 2007, OPTA imposed a fine of EUR 2.88 million on KPN for infringement of the
Telecommunications Act. The infringements related to a breach of KPN’s duty to report under
the Telecommunications Act, its transparency obligation and its obligation to offer non-
discriminatory services.

For further details of current and completed procedures at OPTA, please see the KPN Annual
Report and Form 20-F 2007, under ‘Regulatory Developments’.

Compliance with the Dutch Corporate Governance Code

The Board of Management, to the best of its knowledge, believes that KPN complies with the
requirements of recommendation II.1.4 of the Dutch Corporate Governance Code and the
recommendations of the Corporate Governance Code Monitoring Committee on the
application thereof, by:
• the description of our strategic, industry, regulatory and compliance, operational and
financial risks. See ‘Risk factors’;
• the description of our internal risk management and control system; and
• management’s report on Internal Control over financial reporting to comply with the
requirements of Section 404 of the Sarbanes-Oxley Act.

For a more detailed description, please refer to the ‘Risk Management’ section in the KPN
Annual Report and Form 20-F 2007.

Corporate governance
Dutch Corporate Governance Code
We have pursued a consistent policy of compliance with the Dutch Corporate Governance Code
(the ‘Dutch Corporate Governance Code’) that was published by the Tabaksblat Committee on
December 9, 2003.
The Dutch Corporate Governance Code has its statutory basis in Book 2 of the Dutch Civil
Code and applies to companies with their registered office in The Netherlands whose shares
are listed on a stock exchange either domestically or abroad. The Dutch Corporate Governance
Code is based on the apply-or-explain principle and defines a company as a long-term form of
collaboration between the various parties involved. The Board of Management and the
Supervisory Board have overall responsibility for considering the interests, generally with a
view to ensuring the continuity of the enterprise. In doing so, the Company endeavours to
create long-term shareholder value and the Board of Management and Supervisory Board
should take account of the interests of the different stakeholders.
You will find more information about Corporate Governance in the KPN Annual Report
and Form 20-F 2007.

Governance structure
KPN has a two-tier management structure with a Board of Management and a Supervisory
Board. The Board of Management, supervised and advised by the Supervisory Board, manages
KPN’s strategic, financial and organisational matters and appoints senior managers.

Listings
We are listed on the New York Stock Exchange (‘NYSE’) and qualify as a foreign private issuer
under the NYSE stock exchange rules. As such we need to disclose significant differences
between NYSE’s corporate governance requirements for U.S. issuers and our corporate
governance practices in The Netherlands. An overview disclosing these differences is available
on our website, www.kpn.com, under the section Investor Relations, Corporate Governance
and Risk Management and Internal Control. In addition, on March 22, 2007, we affirmed to the
NYSE without qualification that we have an Audit Committee meeting the requirements of SEC
rule 10A-3 under the Securities Exchange Act of 1934, as amended.
We are also listed on Euronext Amsterdam, the London Stock Exchange and the Frankfurt
Stock Exchange.
On December 17, 2007, KPN announced its intention to delist its American Depositary
Receipts (‘ADRs’) from the NYSE and to delist its ordinary shares from the London Stock
Exchange and the Frankfurt Stock Exchange. KPN expects to complete the delistings in the
first quarter of 2008. KPN will also deregister under the U.S. Securities Exchange Act of 1934,
as amended.

 KPN Sustainability Report 2007 Who we are

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 Winning the
hearts of
3 customers
The battle for the customer’s favour is fierce. The
customer is continuously barraged with new
developments and competition is strong. We know that
you can only win the customer’s heart by working in an
even more customer-focused way and understanding
exactly what the customer wants.

KPN Sustainability Report 2007 Winning the hearts of customers 

 Customer satisfaction and loyalty
To remain number one in the market, KPN will need to strengthen its position as a customer-
focused and service-oriented brand. Simplicity is the key to success. Customers want
everything to be clearly and properly thought out and for KPN to make sure that everything
works properly. The task for us is to make existing and new products irresistibly simple for
our customers. We want to rank among the top companies by virtue of the services we
provide to our customers. To fulfil this ambition, we need to know precisely what customers
want and how they view KPN. That is why KPN regularly measures customer satisfaction and
customer loyalty.

Customer satisfaction and customer loyalty increase in 2007

In the Consumer market and Business market segments, customer satisfaction and customer
loyalty increased in 2007. The table below shows the overall average results for customers in
both segments in the Netherlands.

Customer satisfaction in the Netherlands1

2007
Consumer 74%
Business 78%

Customers are either satisfied, dissatisfied or have a neutral opinion of KPN. The percentage
of dissatisfied customers decreased in the Consumer Market segment and also in the Business
Market segment in 2007 from 7% to 5%. To raise customer satisfaction we are working across
both segments on improvement programmes focused on different aspects of delivering
services to customers, including employee training and coaching, easier accessibility and
enhanced products and services.

The customer satisfaction survey we use at KPN was adapted in two respects in 2007 to
developments in the market and within our own organisation:

• outcomes are now reported for the Consumer Market and Business Market segments,
instead of according to the distinction between the Fixed Line division and KPN Mobile;
• the surveys are entirely web-based instead of (in part) by telephone. This reflects the
changes in our market, where we see a shift from communication by phone to
communication via the internet. The outcomes in web-based surveying are between 5 and
10% lower than with telephone surveys.

A consequence of this situation is that the 2007 results cannot be compared with the results of
customer satisfaction surveys conducted in 2006 and earlier. However, the answers given by
customers now provide a better insight into how they rate KPN and its services and this makes
it easier for us to implement improvements.

Customer focus is central goal

Customer focus and customer retention were our central goals in 2007 for the Consumer
Market segment. Satisfaction with our new products InternetPlusBellen (IPB) and Digitenne
rose strongly in 2007. Based on experience after the introduction of IPB, we tightened up our
internal processes for new services.

In 2007 we launched programmes to:

• resolve customer complaints and requests on a first-time-right basis; the first-time-right

percentage in 2007 rose according to plan to approximately 75%; our ambition is to raise
the score to at least 80%;
• sort out gridlocked orders (which numbered a few tens of thousands for IPB) and take
measures to prevent recurrence;
• make sure customers need to call the helpdesk less frequently by simplifying the do-it-
yourself installation package for IPB. In 2007 this reduced the number of reported problems.

In December 2007, IPB received the ‘Red Dot design award’, an international design prize
presented by ‘Red Dot’.

1) Customer satisfaction scores for 2007 cannot

be compared with those of previous years
because of the introduction of the new
customer-focused Consumer Market and
Business Market segments and a different way
of performing the surveys.

 KPN Sustainability Report 2007 Winning the hearts of customers

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 Customer satisfaction in the Business Market segment rose from 76% to 82% in the fourth
quarter of 2007, with an average of 78%. The highly ambitious objective to achieve more than
80% satisfied customers was reached in the fourth quarter, but not over 2007 as a whole.
Customers in the small- and medium-sized enterprise sector experienced difficulty reaching
KPN in the first half of 2007. There were long waiting times as a result. That is why customer
satisfaction in this segment decreased temporarily.
The improved customer satisfaction in 2007 resulted from improvement programmes
that in some instances were carried out in 2006, such as the professionalisation of account
management for major customers.

KPN’s ambition is for business customers to actively recommend KPN on the strength of their
experience of the services we provide. To achieve this goal, KPN launched a series of
improvement programmes in 2007, including:

• improving KPN’s telephone accessibility;

• resolving customers’ questions on a first-time-right basis at call centres, thus reducing the
number of repeat calls;
• giving call centre employees individual feedback about the quality of their work, which has
reduced the number of contacts by phone;
• improving the services provided to small- and medium-sized enterprises, a segment in
which customers typically want more personalised advice and expect KPN to address and
solve their problems, among other things by making things simpler and standardising
payment terms applicable to different services and products, so that customers know where
they stand;
• improving the management of complaints; KPN wants every complaint made by a customer
to be resolved quickly; moreover, KPN wants to avoid customers having cause to complain.

The customer can rely on KPN to have its own house in order so as to keep service provision at
the required level. For this purpose we apply standards aligned to our customers’ wishes and to
the best practices in the telecommunications sector. KPN wants to perform at least at the level
prescribed by the standards. The critical customer processes of our Business Market segment
comply with the ISO 9001 quality standard. Our ISO 9001 certificate is valid until mid-2008.
Given KPN’s ambition we will obviously aim for renewal of the certificate in 2008.

We conduct internal audits from time to time to determine whether our processes satisfy
the standard. The audit results are used as a basis for measures to make improvements.
KPN’s security policy has been set down in the ‘KPN Corporate Security Policy’.
The policy applies to all employees, all parts of the KPN group, all products and all services.
An important aspect of safety is ensuring safe working practices in the work we perform
at customers’ premises. All engineers who require certification and perform work at customers’
premises have been trained and certificated according to the VCA standard (a safety checklist
for contractors).

KPN Sustainability Report 2007 Winning the hearts of customers 

 Respect for customers
As customers should expect of a reliable company, KPN applies important rules to ensure that it
treats its customers respectfully. Some of the rules are embedded in our Code of Conduct
which we require our employees to observe, supplemented by specific rules for individual KPN
departments.
The codes describe the conduct expected of KPN employees. Our rules ensure that KPN
employees do not approach customers unnecessarily, for example. Each year our employees
receive the information relevant to them and undergo regular training in adhering to our code.
KPN has put in place a company privacy policy to protect the privacy of its customers.
Customers may opt for limited disclosure of their telephone numbers, i.e. we will not publish
the telephone number in the telephone directory and/or divulge it through the directory
enquiries service 0900-0800 (ex-directory number), or prevention of their contact details from
being used for direct marketing or telemarketing or being passed on to third parties. Our
website www.kpn.com contains more information about KPN’s privacy policy.
KPN protects its customers against unethical behaviour by consumers and companies.
In cooperation with other internet providers, we apply codes of practice that we require
consumers to respect. These codes are laid down in the KPN general conditions and acceptable
use policy. If customers fail to abide by the codes, for example by sending out spam or making
hacking attempts, KPN can disconnect them temporarily or permanently from the KPN internet
network. Activities that KPN considers capable of harming third parties are treated as abuse.
This applies to such acts as spreading viruses, sending out threatening letters and making
available illegal content such as child pornography, discriminatory content and statements
inciting terrorism. KPN has established an Abuse Desk to combat unlawful use. The desk keeps
records and identifies cases of abuse. It also provides tips on how to use the internet safely
(also see the sidebar headed ‘Abuse Desk protects KPN customers against internet abuse’).

Advertising code
KPN treats advertising carefully. We are one of the largest advertisers in the Netherlands and in
principle we check our promotional devices beforehand for compliance with advertising law.
The Dutch Advertising Standards Committee (RCC) dealt with 21 complaints about KPN’s
advertising in 2007 (compared with 15 in 2006). The increase stemmed mainly from a larger
number of complaints about our advertising of Digitenne. Two complaints dating from 2007
were still under examination at the start of 2008. The RCC discarded six complaints following
a response by KPN. In seven cases the RCC ruled that KPN advertising breached the Dutch
Advertising Code. The complaints concerned mainly the price, content and origin of offered
products. Other complaints were received about the way our advertising described the
composition, properties or effectiveness of products.

Abuse Desk protects

KPN customers against
internet abuse

The day-to-day work of the KPN

Abuse Desk consists of responding
to complaints about spam,
privacy violation, copyright
infringement and other forms
of abuse on the internet.

‘We act to protect our customers,’ says
Michel Zoetebier, Senior Abuse Officer.
‘If spam is circulated via a KPN account it is
usually without the customer’s knowledge.
But very occasionally it is sent out
intentionally or through negligence and
we disconnect a subscriber.’
Abuse has grown in step with the
growth of the internet and KPN. Five full-time
employees now keep a watch on possible
abuse. KPN acts proactively as well as in
response to complaints. ‘We make our
customers aware of certain risks,’ says
Zoetebier. ‘If you don’t have a firewall, for
instance, a malicious person can hijack your
PC remotely and use it to circulate spam.
Providing information is an important part
of our work.’
‘Over the past few years we have been
confronted by Nigerian gangs who try to
swindle people via the internet. KPN
cooperates closely with a number of
authorities to combat these serious forms
of abuse. Together with the authorities we
were able to tackle the Nigerian gangs firmly
in 2007.’

 KPN Sustainability Report 2007 Winning the hearts of customers

www.global-reports.com
KPN in the regions
For about four years now, KPN
has had five regional directors,
stationed at different places in
the Netherlands. They are
KPN’s face for the outside
world. One of their principal
activities is to establish and
maintain networks of relations
at governmental level. For that
purpose, they sit on all kinds of
boards, committees, steering
groups and consultative
platforms outside KPN.
They also make sure, as the
chairpersons of the regional
management teams, that the
best possible cooperation exists
within the supply chain. Their
field of work and horizon
stretches beyond the Business
and Consumer Market
segments. While they help us to
win orders, they also represent
KPN in mainstream society.
KPN Sustainability Report 2007
Christine van der Zalm-van Geen, The
Hague, Regional Director for Central
Netherlands
Together with other companies KPN is
sponsoring a project called ‘Young The Hague
At Work’ (Jong Den Haag Werkt). The project
provides work experience for pupils
preparing for intermediate vocational
education. The kick-off was a symposium
and the participating companies relayed
with each other.
For Retail, IT and Wholesale &
Operations we have direct contacts in this
region with the Mondriaan College. This
allows you to help improve local situations
through good contacts at administrative level.
I also lead brainstorming sessions at our
customers’ organisations about their core
business. We help them think through what
KPN can do for them. It generates new
business, because we obviously act on the
opportunities that this produces. Innovation
is our prime objective.
Talking of innovation, All-IP is a hot item
in the west of the country, with trials in the
Bezuidenhout quarter of The Hague and
Diemen and a pilot project in Zoeterwoude.
It is obviously very important to KPN.
Zoetermeer was named ICT municipality of
the year in 2007. KPN cooperates closely with
organisations that endeavour to move the
economy forward, such as the employers’
association VNO-NCW, the chambers of
commerce and MKB Nederland, the Dutch
federation of small- and medium-sized
enterprises.
On top of this, we are very active when
it comes to mobility. I am the deputy chair of
‘Connekt’, an organisation that seeks to create
the right conditions for innovative mobility
initiatives. I have been asked to join the
Mobility Management Taskforce, which was
established on the instructions of the Minister
of Transport, Public Works and Water
Management. KPN obviously sets a good
example in this field by creating possibilities
for teleworking. We provide some terrific
services, such as the ConferenceCard,
providing an easy way to set up a conference
call any time you want. We are pleased to
mention the Netherlands Railways Business
Card our company car drivers have been using
since last year. The card enables us to
eliminate a lot of car kilometres.
Winning the hearts of customers
Rob Timmermans, ’s-Hertogenbosch,
Regional Director for Southeast Netherlands
Having an optimum connection between the
education system and the business community
is crucially important to our future. The
proverbial cross-fertilisation benefits both
sides and helps bridge the gap between
supply and demand. KPN has recognised how
important this is and is literally and figuratively
investing in the future.
A frequently heard comment is that ‘the
qualifications the education system delivers
are incompatible with the needs of the
business community’. Something can be done
about that. We really are making a
contribution to bridging this gap. As a leading
employer in the fast-changing ICT field it is
crucial to make the alignment between
relevant developments to required
qualifications. As a regional director I have
been actively contributing to this objective for
many years. It has resulted in my participating
in KPN’s educational activities as member of
the ‘Innovation Arrangements in Vocational
Education’ committee. The committee,
chaired by Arie van der Zwan, examines and
subsidises innovation proposals. I am also
deputy chairman of the Supervisory Council
of The Hague University and a member of the
Business Administration Lustrumcommissie
(quinquennial anniversary committee) of the
University of Twente. This kind of approach
allows regional directors to contribute to the
company’s CSR activities. Another hot subject
is KPN’s fibre optic programme. A large part
of my work concerns bundling the numerous
initiatives in the Southeast region to expedite
a fast roll-out of this new, highly promising
infrastructure. Business parks in particular
are very interested in it, often because of
the camera surveillance. But we are also
helping to move forward initiatives based
on the ‘Our Network’ marketing format to
create broadband fibre optic connections
for consumers.

 Ton van der Gaag, Amsterdam, Regional
Director for Northwest Netherlands
Being well connected to what is happening
socially in your immediate environment is
of fundamental importance to KPN. In
Amsterdam, for example, it is important to
devote attention to young people who for
various reasons find themselves in an
environment where they lack good
opportunities to develop.
KPN is one of the cofounders of ‘Campus
Nieuw West’, an association that exists to
introduce young people in Amsterdam up to
age 16 to the business community. We
encourage them to continue their education
and to make them more aware of options to
find jobs that really interest them. Over 6,000
young people have taken part in the various
projects. Within this setting KPN was the
initiator of the ‘ICT KidZZ Academy’, which
coaches young people in using computers and
the internet. We are also participating in a
project called ‘Teamstages’, a training
initiative by Joop van den Ende and the
Amsterdam Regional Training Center. By
offering good work experience placements,
KPN is showing its commitment to good
education and increasing the opportunities
young people have in the labour market.
Mobility and renewable energy are
important themes for the coming years.
As a big organisation, we have taken measures
concerning sustainable energy consumption
and employee mobility. What’s more, our
products and services create substantial
opportunities for tackling these problems.
Last October, a trend-setting breakfast
meeting for entrepreneurs was held at KPN
under the banner of employers’ organisation
VNO/NCW West. The meeting was themed
around the mobility and congestion problems
in the Greater Amsterdam area, and was
attended by more than 200 businesspeople.
Ad Scheepbouwer explained KPN’s vision
and there were inspirational presentations
featuring all kinds of different solutions,
which were instrumental in the launch of
various initiatives.
To be visible to important groups and to
highlight innovative services, we were again
the main sponsor in 2007 of the Amsterdam
Museum Night. It’s also a night of mobile
communication, because 26,000 people
wander around the city, calling each other and
using KPN’s innovative Mobile Museum Guide
to help them choose where to go. We know
from market research that young people
greatly appreciate KPN’s commitment and
that use of the Mobile Museum Guide doubled
in 2007 compared with the year before.
 KPN Sustainability Report 2007
www.global-reports.com
Hein Visser, Zwolle, Regional Director for
Northeast Netherlands
In my region KPN was a partner in the ‘IJkdijk
Project’. A study was conducted to find out
how sensors in dykes can help prevent dyke
breaks. It has attracted interest from all over
the world. In the educational field we have
ties with the Hanze University of applied
sciences in Groningen. I’ve taken on the
chairmanship of the committee that examines
ICT-related graduation projects.
From our region we organised the
national conference of the Association of
Supervisory and Executive Directors (NCD) in
The Hague and thanks to our good relations
with the police chief we helped solve the
pyromaniac problem in that city.
But what has taken up most of our time
recently has been the construction of the new
fibre optic infrastructure. It was absolutely the
number one item on the agenda in our region,
because when it comes to fibre optics the east
of the Netherlands is clearly the front-runner.
There are numerous design processes for
companies and many cities have opted for
KPN in this field. Back in 2006 the province
of Groningen was one of the first to call for
tenders for ‘fibre optic rings’. The provinces
of Friesland, Overijssel and Drenthe followed
suit by putting out tenders for fibre optic rings.
I am proud that as KPN we won most of
the contracts. Friesland decided to let the
market do its work. We contributed to the
design of the formula the provincial
government is using to bundle the demand.
This ultimately brought in 200 contracts for
the construction of a VPN. The province of
Overijssel left it to market players to construct
the fibre optic connections for companies in
the Twente region and KPN emerged as
winner there as well. As regards fibre optics
for consumers, we have regained the fibre
optic project in Enschede after a very
intensive battle. We had previously lost it.
We’ve developed an entirely new format for
planning, building, delivering and selling.
This is unprecedented since the construction
of the copper-wire network.
Winning the hearts of customers
Geert de Groot, Rotterdam, Regional
Director for Southwest Netherlands
Socially relevant activities and business
overlap in numerous fields in this region.
We sponsor initiatives and we help come up
with solutions. Within the ‘MORE’ foundation
(a Dutch acronym for Corporate Social
Responsibility in Greater Rotterdam), which
is endeavouring to do something about the
position of underprivileged people in Greater
Rotterdam, we are brainstorming on possible
projects and KPN’s role in them.
By virtue of my position as regional
director, I know the care institutions in the
Southwest Netherlands and I can see that
their organisations have a great need for
telecommunications solutions and new
technologies that allow people to go on living
at home safely for longer. That is of course a
problem that we are examining. It also offers
business opportunities, because it brings
about business cooperation.
But business is not the only thing
that matters to us, because we also sponsor
the Dutch Photo Museum. The museum
is looking for ways of doing more with
telecommunications and digital technology.
We are helping them. KPN and the Albeda
College, with 40 schools for intermediate
vocational education, are looking behind
the scenes at each other’s organisation to
accelerate innovations. At the inHolland
University of applied sciences I am a
member of the advisory group for the
School of Economics.
We have been in talks for some time
now with the municipality of Rotterdam about
getting more broadband access into the city.
That, too, is an important subject. There is
ample ambition, because fibre optic
technology is important to businesses in
the port area. I also sit on the Supervisory
Council of EPN, the ICT platform that
advises politicians and civil servants in the
Netherlands on matters such as developments
in the fields of the internet, using ICT to
combat terrorism and developments in the
healthcare sector. So the job is very varied. It’s
what I believe makes this region so interesting.
 Heading for
social gains
4 In 2008, KPN intends to reinforce its position as a socially
responsible company. KPN is listed in the FTSE4Good
Index, one of the world’s key barometers for corporate
social responsibility. In the longer term, KPN wants to
occupy a leading CSR position among the AEX stocks
and the European telecommunications operators.

KPN Sustainability Report 2007 Heading for social gains 

 Our investors
The gradually increasing interest among investors for the performance of companies in
terms of sustainability and CSR is an international trend also in evidence in the Netherlands.
According to Eurosif, an organisation for sustainable investment, the European market for
sustainable investments grew by 200% between 2003 and 2005 to reach €1,200 billion. KPN
is aware of the opportunities this market offers. Building on the pillars of its new CSR policy,
KPN wants to achieve over the long haul a good position in the field of corporate sustainability.

KPN and sustainability indexes

KPN attaches importance to transparency and devotes a lot of time and effort to
communicating with its shareholders, credit providers, credit raters and analysts. We want to
keep our stakeholders informed of KPN’s strategy and results. KPN has contacts on CSR each
year, especially around the time of the general meeting of shareholders, with VEB (the Dutch
Investors’ Association) and VBDO (Dutch Association of Investors for Sustainable Development).
Based on its sustainability report, KPN informs these organisations on its CSR policy and its
sustainability scores.
KPN is also listed in some sustainability indexes that investors in corporate sustainability
use as tools for their investment decisions.

FTSE4Good Index
KPN is listed in the FTSE4Good Index. The principal criteria for inclusion in the index are
attention to environmental protection, promotion of a dialogue with stakeholders, respect
for human rights and compliance with safety, environmental and social policy standards.
The FTSE4Good Index does not rank companies according to sustainability.

Dow Jones Sustainability Index

KPN is not listed in the Dow Jones Sustainability Index (DJSI). This is an index of companies that
belong to the absolute top in their respective industries.
In 2007, KPN participated for the first time in the SAM benchmark with a view to entering
the DJSI. KPN’s performance on economic, social and environmental indicators was around
average. But our score was lower than the scores of the best-performing companies in the
telecommunications industry. KPN will request another SAM benchmark in 2008. Our ambition
as a company is to be listed in the DJSI in due course.

Dutch Sustainability Research

Dutch Sustainability Research (DSR), a research institution run by a number of leading Dutch
financial institutions, assessed all AEX stocks in 2006 according to their sustainability and
compared them with foreign companies in the same industry. DSR did not publish an update
of these rankings in 2007.
DSR is a partner in the SiRi Company (Sustainability Investment Research International).
Each year SiRi performs an analysis. In the SiRi survey KPN got a higher score in 2007 than
in 2006.

Carbon Disclosure Committee

KPN cooperates actively in the assessment of its sustainability by providing data to parties
including the Carbon Disclosure Committee. This committee rates companies that report on
their emissions of greenhouse gases.

Triodos
The Dutch Triodos Bank has included KPN bonds in its sustainable ‘investment universe’.
This indicates that KPN satisfies Triodos’s investment criteria. Triodos ranks KPN among the
best-performing companies in the telecommunications industry. The score fluctuates strongly
according to the theme concerned. According to Triodos, KPN gives particular attention to
corporate ethics, customers and the environment. However, Triodos has also noted that
KPN is involved in a number of controversies, such as gambling and antitrust penalties.
Triodos classifies this involvement as small. KPN responded to this matter adequately.

Benchmark by Ministry of Economic Affairs

In the benchmark organised by the Ministry of Economic Affairs, KPN received a lower score in
2007 than in 2006, mainly due to a revised benchmarking method. The supply chain approach
was given greater weight in 2007. From 2008, KPN will devote more attention to upstream and
downstream aspects, justifying the expectation that KPN will again achieve a higher score.

 KPN Sustainability Report 2007 Heading for social gains

www.global-reports.com
 Financial policy
KPN pursues a stable financial policy. Over the past years our policy has resulted in the payout
of dividends, the buyback of our own shares and the pursuit of a healthy net debt/EBITDA ratio.
A total of €2.5 billion was paid out in cash to our shareholders in 2007. Through the €1.5 billion
buyback of our own shares from the market and almost €1 billion disbursed in dividends, we
channelled back to our shareholders in 2007 more than our entire free cash flow. KPN has
announced that over 2008 it will pay out €1 billion in dividends and that it will buy back its own
shares for a total of €1 billion. KPN strives to offer its capital providers good creditworthiness.
Our objective is to maintain credit ratings of at least Baa2 (Moody’s) and BBB (S&P).

KPN returns on the stock market (cumulative figure since 2005 in brackets)*
2007 2006** 2005**
KPN 16% (78%) 27% (54%) 21%
AEX Index 4% (48%) 13% (42%) 26%
DJ Telecommunications Index 15% (32%) 17% (15%) -2%
* excluding dividend
** figures for 2006 and 2005 differ from those stated in previous years because of rounding off

1) EBITDA = operating profit + amortisation + amortisation and impairments

KPN Sustainability Report 2007 Heading for social gains 

 Working in
a new world
5 KPN continues to adapt to changing markets and
has confidently placed growth back at the top of its
agenda for the coming years. The dynamics in the
telecommunications world and ICT mean KPN is
undergoing radical processes of transformation.
This constantly confronts our employees with changes.
KPN is working on a new relationship with its employees,
one that will give them greater responsibility for their
own roles and positions.

 KPN Sustainability Report 2007 Working in a new world

www.global-reports.com
 A changing relationship with employees
KPN is going through a period where the number of jobs in some departments – especially
fixed telephony – is decreasing strongly, while in other, fast-growing parts of the group we
need more people. The consequence is that some KPN employees are moving to different jobs
within the group or are leaving the company, whereas paradoxically KPN is recruiting new
employees at the same time. KPN is taking initiatives to improve the employability of its
workforce in the labour market.

New labour relations

Collective bargaining agreements
The positions of members of the KPN workforce are regulated under collective bargaining
agreements. Besides a collective bargaining agreement for KPN, there are separate such
agreements for the call centres (KPN Contact and SNT). Negotiations with the unions on the
collective bargaining agreement for KPN were still in progress at year-end 2007.
KPN concluded two collective bargaining agreements for its call centres in 2007. The
agreements are designed to strengthen the competitiveness of our call centre operations.
Among other things the company will provide more variable remuneration, and the number
of vacation hours for new employees will be reduced from 292 to 200. Employees on the
payroll at the time the collective bargaining agreement was concluded will retain a personal
entitlement to 92 hours on top of the 200 hours. If desired they may swap this entitlement for
extra variable remuneration.
To improve the position of its employees in the labour market, KPN is working on a new
labour relationship between the company and its workforce. Under the new relationship,
employees will take responsibility for the quality of their contribution to KPN and their
employability in the labour market. KPN will stimulate employee development and training.
Starting in 2008, KPN has made a proposal in the collective bargaining agreement for KPN that
will provide all employees with an extra employability budget of €1,000 per year, enabling
them to pay for training and development.
A new publication called ‘Ik & KPN Magazine’ informs employees of the consequences
of joining, job-moving and leaving the company. In 2007, KPN organised four career days to
make employees aware of their value in the labour market. At the meetings employees attended
workshops, received career advice and were offered a CV scan. They were informed about the
possibility of obtaining, on the strength of their work experience, a recognised certificate under
a government scheme called Recognition of Acquired Competencies (‘EVC’). External employers
unveiled their vacancies at a job market visited by KPN employees. KPN further organised two
round-table conferences to allow employees to discuss the new labour relationship.
In 2007, KPN set out three new training and development processes (Academies) for the
IT, Finance and HR fields.

Employee commitment
Each year KPN surveys the satisfaction of its employees. International research conducted by
Towers Perrin-ISR shows that the commitment of employees is a far greater determinant of
corporate performance than satisfaction. In cooperation with the Towers Perrin-ISR research
agency, KPN therefore launched an employee commitment survey in 2007. In all 61% of our
employees (including managers) participated in the survey. Employees were asked questions
on 14 subjects, with the aim of obtaining an insight into their degree of commitment and the
matters that influence their commitment to KPN.
The survey addressed four dimensions of commitment: thinking, feeling, acting and
desire to stay with the company. The table below shows the results at KPN compared with the
national standard (Dutch standard) that Towers Perrin-ISR applies in the Netherlands and the
best-performing companies in this field (Dutch top). In a number of respects, KPN scores better
than the national standard, but trails the Dutch top. The survey further showed that employees
expect KPN to play its role in society even more emphatically than was the case to date.

KPN Sustainability Report 2007 Working in a new world 

 Results of employee commitment survey

KPN Difference Difference

answers compared with compared with
2007 (%) Dutch standard Dutch Top
Thinking I don’t agree at all with
KPN’s objectives 75 +10 -2
I completely support KPN’s
core values 83 +6 -3
Feeling I would recommend KPN as
a good company to work for 72 -5 -15
I’m proud to work at KPN 79 0 -10
Acting KPN encourages me to go
the extra mile 66 +7 Not surveyed
I am prepared to do more
than expected of me in my
job to make KPN successful 90 +8 -1
Staying Are you seriously
considering leaving KPN at
this time (no) 71 0 +1
A lot will have to happen
before I start looking for a
job at another organisation 57 -3 -11

The survey shows that three matters are the most decisive when it comes to an employee’s
commitment to KPN: leadership, image and career development & training. Something else
that emerged from the survey was that employees held the view that KPN was not yet giving
sufficient substance to Corporate Social Responsibility. Partly on the basis of these results, KPN
has added a volunteer programme to the activities of the Great Contacts Fund that is open to
KPN employees.

Performance-related pay
A few years ago KPN introduced performance-related pay under the collective bargaining
agreement based on the group’s targets. The standard performance-related pay for achievement
of predetermined targets equals 3.5% of gross annual salary. The percentage can rise to a
maximum of 5.5%. Each year the targets are determined based on the annual plans of the
operational managers.
The percentage awarded for performance-related pay was 3.4% in 2006. This represents
a slight decrease compared with 2005 (3.5%). Performance-related pay over 2007 will be
announced in March 2008, which is why this sustainability report provides figures for 2006.

Training of employees
Investing in the development of employees is the best way of improving their performance.
Besides business targets, the company now agrees with each employee a number of ‘SMART’1
development targets. The development targets focus on the three core values of KPN (personal,
simplicity and trust) and the core qualities introduced in 2007. The six core qualities (priority,
customer, team, influence, result and change) set a direction for the development of
competences and exist to better enable employees to contribute to fulfilment of KPN’s strategy
and ambitions.
Expenditure on training courses by the KPN NL Social Entity increased from €1,097 per
employee in 2006 to €1,341 in 2007. The trend of using e-learning modules is continuing to
grow (i.e. from 46,669 in 2006 to 63,127 in 2007).

Leadership development
The KPN leadership programme was attended in 2007 by 633 of our 1,019 managers. The
programme gives managers an insight into their management style, and the climate their style
creates at their department. Each participant agrees arrangements for defined development
activities. Through the leadership programme, KPN gives its managers fresh impetus to devote
attention to personal development. The leadership programme will be offered in 2008 to
managers who have not yet taken it.

1) S MART: specific, measurable,

achievable, relevant and
time-bound.

 KPN Sustainability Report 2007 Working in a new world

www.global-reports.com
Works Council: KPN is ‘Everybody knows that at the end of
the day KPN can only compete in the market
open about shedding jobs with fewer employees,’ says Siebren Vellema,
KPN finds itself in a period where secretary of the Works Council. ‘But that
it is necessary to shed jobs in doesn’t alter the fact that for an employee
who has been with the company for 25 years
some parts of the group but it is difficult to accept that there is no longer
take on new people with new a job for him or her. Our task is to make sure
competences in other parts. that supernumeraries leave the company with
due care and attention. KPN assumes that
employees accept their own responsibility
to make sure they can find work elsewhere
if necessary. The Central Works Council
‘KPN has always been transparent about plans considers this a reasonable starting point.
for shedding jobs,’ says Arnout van Schelven But there is a category of employees for
(photo), chairman of the Central Works whom this is very difficult. You have to train
Council. ‘All employees who want to know and supervise them properly. Fortunately,
about the plans can find out easily, perhaps attention is being devoted to this. In the
not at departmental level, but certainly at coming years we will work on improving still
KPN level.’ further the programmes for people who leave
the company to give them a good starting
position for finding a job elsewhere.’

Ideas management
KPN encourages employees to submit ideas for improving the company’s operations. The ideas
may concern subjects like cost reductions or ways of getting extra sales. For the latter goal KPN
has a project called ‘TopScorer’ that encourages employees to be alert to sales opportunities.
They can pass on tips to the Sales department about possibilities for winning orders. Based on
the value of an order, they receive a reward in points, which are exchangeable for gifts, cash
or a contribution to a good cause. Between its introduction in April 2006 and year-end 2007,
TopScorer yielded €31.8 million in contract value.
In 2007, a total of 892 ideas were examined that contributed to savings of €12.2 million.
A total of €9.2 million was saved in 2006 on a total of 1,041 examined ideas.

Treating employees responsibly

KPN achieved its job-shedding target in 2007. In all, 1,740 FTEs exited KPN. This compares with
1,562 in 2006, producing a total reduction over 2006 and 2007 of 3,302 FTEs. Although it is
impossible to predict the exact influence of the rapidly changing market on the KPN workforce,
it is clear that the number of employees will decrease by between 1,500 and 1,750 FTEs per
year up to the year 2010. As part of the ‘Back to growth’ strategy, another 2,000 FTEs will
disappear in the years up to 2011.

Employees joining, moving and leaving in 2007 in the Netherlands (in FTEs)

Position at year-end 2006 18,984

Reorganisations, downsizing and natural attrition -1,447
Outsourcing -293
Total reduction in 2007 -1,740
Insourcing 194
Acquisition 230
Position at year-end 2007 17,668

In 2007, KPN Perspectief – the job-finding organisation with which KPN cooperates – provided
assistance to 385 employees. Of these, KPN Perspectief helped 300 people to find new
employment outside KPN and 84 to transfer to a different job within KPN. The other employees
were still receiving assistance at the start of 2008.

KPN Sustainability Report 2007 Working in a new world 

 Code of Conduct
KPN treats its employees in accordance with ethical rules laid down in documents including
the Code of Conduct. Employees may lodge a complaint if they feel their rights have been
prejudiced. Other important factors in the well-being of employees are integrity and
prevention of discrimination. The KPN Code of Conduct and the complaints procedure exist
to deal with such matters.

Medical examination
KPN invited 466 managers to undergo a ‘vitality scan’ in 2007. It consisted of a psychological
test and a medical examination. One or more health days were organised in the third quarter
of 2007 at 14 KPN locations. Employees and managers were able to register for workshops,
short health training sessions and health checkups. A total of 1,931 KPN employees took part
in the workshops. In 2008, KPN will offer all employees a ‘lifestyle check’. This will consist
of a questionnaire about their lifestyle and a test to measure the fitness of employees.

Internal risk analysis and evaluation

In 2007, KPN embarked on an internal risk analysis and evaluation. Managers identified the
specific risks attached to all activities and positions. They took measures where necessary.
Before year-end 2008, all departments must have completed a new risk analysis and evaluation.
By the end of 2007, risk analyses had been made at 33 parts of the company, involving
approximately 4,500 employees.
KPN endeavours to avoid accidents at work by deploying accident prevention officers.
They train employees and give advice on safety. KPN keeps records of accidents involving its
own personnel and reports serious workplace accidents to the Labour Inspectorate. A total
of 255 notifications were made in 2007 under the Working Conditions Act. There were 66
notifications of accidents at work, a decrease compared with 2006, when there were 84.
None of the accidents was serious enough to require compulsory notification of the Labour
Inspectorate. However, after each reported accident an accident prevention officer conducted
an investigation to see whether measures were necessary.
In 2007, KPN employees reported 60 cases of aggression or harassment by customers.
The reports concerned the behaviour of customers towards employees of KPN call centres and
sales outlets.

Health and safety

KPN was again active across a wide front in 2007 to assure the safety of its employees and to
avoid illness and accidents. Among other things, KPN conducts an active certification policy
(VCA). Employees who hold positions with a high safety risk, such as those who work at great
heights or in special rooms, receive training according to the VCA system (a safety, health and
environmental checklist for contractors). The original plan was for all VCA certificates within
the Business Market segment to be combined in 2007 into a single certificate. Due to the
reorganisation of parts of the company, however, it was decided to postpone the certification
merger for one year.
Two operational parts of KPN were certificated under the VCA system in 2007 for a period
of three years. External examiners found that these departments satisfied the requirements.

Internal investigations
KPN values ethics and integrity greatly. Reports of internal theft, fraud and other violations of
the KPN Code of Conduct and sub-codes are dealt with carefully and, if necessary, they are
investigated. In all, 392 internal investigations were conducted in 2007. The investigations
resulted in 111 sanctions.

Sanctions resulting from internal integrity investigations

2007 2006
Type of sanction PP OP PP OP
Dismissal 30 44 25 17
Reprimand 1 2 8 4
Written warning 17 3 15 10
Suspension 10 0 0 0
Withholding of salary 2 0 1 0
Demotion 2 0 1 0
Other position 0 0 1 0
Total 62 49 51 31
PP = Payroll Personnel, OP = Other Personnel (i.e. personnel supplied by external suppliers)

 KPN Sustainability Report 2007 Working in a new world

www.global-reports.com
 Complaints procedure
KPN has established rules and procedures for dealing with complaints. Employees who
feel that their interests have been disproportionately prejudiced by a decision or act by the
company have the right to submit a complaint to the General Complaints Committee. A total
of 53 complaints were lodged in 2007. By year-end 2007, 49 of these complaints had been dealt
with. The committee was due to give a ruling on the other four complaints in January 2008.
As in 2006, most complaints concerned job performance appraisals of employees.
Fourteen complaints were upheld and one was upheld in part. The other complaints were ruled
unfounded or inadmissible. One complaint was withdrawn before a ruling was given. In almost
all cases, the general manager of the department concerned followed the committee’s advice.

KPN Sustainability Report 2007 Working in a new world 

 People
connected
6 KPN adopted a new CSR policy in 2007. We have
injected focus into our contribution to society by
choosing three pillars: people connected, keeping
the Netherlands on the move, and responsible energy
use. The new policy will result in 2008 in shifts in our
activities with regard to our commitment to society.

 KPN Sustainability Report 2007 People connected

www.global-reports.com
 Focusing our contribution to society
Besides giving money to social causes KPN provides technical
know-how and manpower. We focus on activities where we can
make a difference.

People connected
Contact is everything. But not everybody can connect in today’s new world of the internet,
mobile phones and a rapidly growing knowledge economy. Opinion leaders, scientists and
civil society organisations have noted that there is a group of people who have become
disconnected and have little if any access to education and means of communication. Some
people in this group are not connected by choice. But others are unable to connect because
they lack the means or do not know how to. KPN has set up a programme for these groups
that is scheduled to be rolled out over the coming years via the Mooiste Contact Fonds, the
Super Contact Fund.

Super Contact Fund

KPN believes that contact meets an emotional need of every individual and that contact
should be readily accessible to everybody. The Super Contact Fund works with partner
organisations with experience in preventing social isolation. Thanks to support from KPN,
these organisations are able to expand their activities.
Since January 2008 KPN has been working with Ziezon, a national network that enables
children with prolonged illness to keep in touch with their school and classmates. KPN also
set up a partnership with the Nationaal Fonds Ouderenhulp, a charitable organisation serving
the senior citizens’ community. KPN sponsors projects including the ‘ComputerPlusBus’, a bus
that will visit 160 locations in the Netherlands to inform senior citizens about the possibilities
of new media.
KPN does more than give money. Our employees and former employees make available
their time and expertise. They help Ziezon to enable children to keep up with the curriculum
and keep in touch with their classmates by means of computers and webcams. KPN employees
go out with the ComputerPlusBus to familiarise senior citizens with new media. KPN’s objective
is to involve more than 1,000 employees and more than 100 former employees in this
programme in 2008.

Children in a new world

Children make intensive use of new media. Many spend hours on the internet or using their
mobile phone to make calls or send text messages. KPN is committed to ensuring appropriate
use of new media. In 2006, we established a foundation called Mijn Kind Online (My Child
Online) (see sidebar ‘Mijn Kind Online makes children more media-wise’). The foundation
informs children, parents and teachers about how to use the internet safely. KPN will continue
its active support of Mijn Kind Online in 2008. In 2007, KPN supported the ‘BizWorld’ project,
which teaches children in a playful way what entrepreneurship means (see sidebar ‘KPN
stimulates entrepreneurship with BizWorld game’). Other social initiatives with which KPN
cooperated in 2007 were School Online (see sidebar ‘KPN makes education more fun’), a
project in which we offer schools free internet access, and Cinekid (see sidebar ‘KPN supports
critical young viewer’), focused among other things on encouraging critical use of media by
young people.
The Johan Kooij Fellowship, named after a former senior director of KPN, again received
a donation. The fellowship stimulates the use of ICT by children in developing countries
(see sidebar ‘KPN reduces digital gap’).
KPN supports the Ronald McDonald fund. Another donation was made in 2007, with part
of the amount being collected through activities undertaken by our employees. KPN employees
also made available their time and specialised knowledge. They helped the fund to build a new
website. In 2007, KPN also made financial contributions to the following organisations: The
Photo Museum in Rotterdam, ArtOlive, C-Mex foundation, KNRM (Royal Netherlands Sea
Rescue Institution), SIRE, Stichting Vrienden Museum Noordwijk (Foundation Friends of the
Noordwijk Museum), Fonds Slachtofferhulp (Fund for victim support), Stichting Eindexamen
projecten KABK (Foundation Final Examinations projects), Zaak & Co, Schouwburg Theatre
Almere and Model Village Madurodam.

KPN Sustainability Report 2007 People connected 

 Mijn Kind Online
Mijn Kind Online makes
children more media-wise
KPN and Mijn Kind Online
Mijn Kind Online is an independent centre that
provides knowledge and advice about young
people and (new) media. It was established
by KPN.
‘It is precisely because KPN is itself a
provider of mobile telephony, internet and
digital television that it was a good idea for
the company to set up a neutral organisation
to address the responsible use of such media,’
says Remco Pijpers, Chief Editor of www.
mijnkindonline.nl, and KPN’s youth and internet
specialist. ‘Mijn Kind Online is financed by KPN,
but when it comes to content it has complete
freedom. We are largely independent.’
The foundation cooperates with a raft
of expert partners, including Ouders Online
(Parents Online) and Digibewust, a
collaborative effort by the business
community and the government to
provide information about new media.
. Princess Máxima during the European Safer
Also see can order the book free of charge.
www.mijnkindonline.nl
 KPN Sustainability Report 2007
www.global-reports.com
KPN and Mijn Kind Online
KPN helps people get on to the internet
quickly and simply. For that reason, we feel
responsible for ensuring the proper and safe
use of new media, particularly when children
are concerned.
Together with Ouders Online, KPN
has established a foundation that shows
teachers, parents and children the possibilities
opened up by the internet, but also draws
their attention to the pitfalls. It is called
Mijn Kind Online.
Mijn Kind Online provides guidance
on how to use new media responsibly. The
foundation emphasises the positive sides of
the internet as a medium that allows children
to contact each other and enjoy themselves.
But the foundation also devotes attention
to problems such as online bullying and
unwanted sexual advances. Mijn Kind Online
puts the spotlight on how some websites
approach children commercially and attempt
to manipulate them.
In 2008, Mijn Kind Online, in cooperation
with Kidsweek magazine, published a free
newspaper called De Mediawijzer with dozens
of tips about fun websites, making your
own homepage and other online tips for
youngsters. The guidance campaign launched
by Mijn Kind Online in 2006 concerning sex on
the internet reached hundreds of thousands
of teenagers in 2007. This campaign, called
internet SOA (SOA being the acronym in
Dutch for sexually transmissible diseases),
was so successful that it attracted
international attention.
The campaign was adopted in 2008 by
the authorities in Sweden and Denmark. More
information about the campaign, including
the radio and television commercials, can be
found on www.internetsoa.nl.
People connected
Children in the new world: initiatives
by Mijn Kind Online
Timeslot
In August 2007, Mijn Kind Online unveiled
a free software application called TimeSlot,
which helps parents and children track and
control their web surfing behaviour. Almost
three-quarters of all young people in the
Netherlands (74%) say they sometimes find
it difficult to stop when they are online. Boys
(23%) particularly regard this as a problem.
These findings emerged from research
conducted by Mijn Kind Online on behalf of
KPN among 450 teenagers aged between 12
and 16. TimeSlot turns off the browser or
applications like MSN Messenger after a
preset time. This puts limits on
a child’s internet use. The application
can be downloaded free of charge from
www.kpn.com/timeslot.
Award winning website
In January 2008, Mijn Kind Online presented
its first Gouden Apenstaart (Golden @-sign)
award for the best Dutch website for children.
The award went to the website of KRO
Kindertijd (kro.kindertijd.nl). The award for
the best website made by children went to Els
de Wijhe for her site called Naar de brugklas
(Going to transitional class). The trophy was
presented by André Rouvoet, Minister for
Youth and Families.
Children’s helpline tips
A book entitled Kindertelefoontips van
Carry Slee was published in February 2007,
produced by Remco Pijpers and Justine
Pardoen of Mijn Kind Online. Carry Slee, a
popular author of children’s books, wrote an
introductory story and lent her name to the
tips. The book gives children tips and advice
on how to use websites, forums and MSN
effectively if they are experiencing problems.
The first copy of the book was presented to
Internet Day. Primary and secondary schools
Bizworld
KPN stimulates entrepreneurship
among youngsters with
Bizworld game
. KPN adopted eight primary schools.
Also see 12-year-old pupils all about the many aspects
www.bizworld-nederland.nl
School Online
KPN makes education more fun
. educational partners like Cédicu, Fronter,
Also see
www.kpn.com/schoolonline
KPN Sustainability Report 2007
KPN introduced pupils at eight primary
schools to entrepreneurship in 2007. We did
this by taking on an active role in the Bizworld
project. Bizworld is a simulation game that
teaches young people how to set up and run
their own business. They also learn, under the
supervision of people from the business
community, how a company issues shares,
develops and sells products, and how profit
or loss is calculated.
At these schools KPN employees told 11- and
entrepreneurship. Ad Scheepbouwer,
Back In 2004, KPN made the education system
in the Netherlands a generous offer: three
years of free internet access for all schools,
without any strings attached or obligations
whatsoever. More than 8,000 primary and
secondary schools took advantage of the
offer. The contracts of many schools expired
in May 2007. Therefore, KPN launched a new
offer for schools: School Online.
School Online again offers schools
three years of free internet access, up to and
including 2009. Additionally, School Online
provides digital teaching aids and online
solutions such as E-mail Online and Back-up
Online. For this purpose KPN cooperates with
KlasseTV, Microsoft, Three Ships and Waag
Society. KPN offers schools a possibility to
make free use of the digital teaching aids of
People connected
Chairman of the KPN Board of Management,
was one of the KPN teachers and supervised
small groups of pupils at the Carolusschool
in The Hague in the production of a business
plan. The winning team was allowed to visit
him at the KPN head office.
Participation in Bizworld is one of the
ways in which KPN is achieving its educational
objective. We want to make an active
contribution to strengthening education
in the Netherlands and refining the
educational programmes.
MonsterMedia and Klasse TV and all of the
digital content of Cédicu for two months. This
puts schools in a position to make optimum
use of the possibilities that the internet offers
and it makes education more fun.
Ad Scheepbouwer, chairman of the KPN
Board of Management, says: ‘School Online
allows schools to use the money they would
otherwise spend on internet access for other
purposes. Through the online solutions we
make it possible for schools to develop new
ways of learning. This benefits not just the
pupils, but also the teachers. And in the long
run the Dutch knowledge economy will
benefit as well.’

 Cinekid
KPN supports critical young
viewers
Children are bombarded with media every
day. They spend many hours at the computer
and watching television. But how do they
learn to form an opinion about the
programmes they watch? How do they
. recognise quality? KPN helps children develop
into critical viewers. We do this by supporting
Also see Cinekid.
www3.cinekid.nl/p/cinekidstudio Cinekid, organiser of the annual
Johan Kooij Fellowship
KPN reduces digital gap
KPN is helping to reduce the digital gap
between the rich North and the poor South.
Through the Johan Kooij Fellowship, we are
supporting the ‘Global Teenager Project’,
which offers schools in developing countries
a range of ICT services, enabling pupils from
different countries to exchange information
and get in touch with each other and with
the world.
More than 3,000 teachers and pupils at
schools in 29 countries are now using the
. Global Teenager Project. Each year pupils
from ten schools from different parts of the
Also see world form a ‘learning circle’ for six months.
www.iicd.org By chatting and via e-mail, the secondary
 KPN Sustainability Report 2007 People connected
www.global-reports.com
children’s film festival of the same name,
has developed with KPN’s support the Cinekid
Studio, a website where youngsters learn how
to make short films, video clips, animations
and news programmes. After all, the best way
of learning how to treat media critically is by
picking up a camera yourself or sitting at the
editing desk.
The Cinekid Studio is visited mostly
by young people from the senior classes
of primary schools and the junior classes
of secondary schools and they make their
own short films there.
The site has been available since
year-end 2006. New features were added
to the online studio in 2007, including a
possibility for teachers to use the Cinekid
Studio for lessons on the media, culture
and other subjects.
KPN is Cinekid’s main sponsor and also
supports other Cinekid activities.
school pupils work on a joint learning project.
The subjects vary from physics to migration
and even fashion. The objective is to gain
knowledge and cultivate understanding for
international cultural differences.
The Johan Kooij Fellowship also provides
training courses for ICT trainers from
developing countries. The Fellowship was
established in 2000 in honour of Johan Kooij,
a former senior director of KPN, and an
enthusiastic supporter of international
rapprochement by means of ICT. Through the
Johan Kooij Fellowship, KPN cooperates with
the International Institute for Communication
and Development (IICD).
 KPN subsidiaries
After approving the new CSR policy, KPN’s CSR steering committee
examined how subsidiaries could be involved in CSR activities.
Starting 2008 the subsidiaries will be represented on the steering
committee. Our subsidiaries Telfort, E-Plus and BASE supported
various good causes in the community in 2007.

E-Plus
Together with the German children’s charity Deutsche Kinderhilfswerk, E-Plus produced a
brochure entitled ‘Fit fürs Handy – Der Handy Guide für Kids und Eltern’, with information about
how to use a mobile phone responsibly.

El ele
The Ay Yildiz brand, which serves the Turkish community, began a project in 2006 to improve
the school results of children of Turkish descent. The programme, called ‘El ele’ (Turkish for
‘hand-in-hand’), was continued in 2007. Recent studies have shown that children with a Turkish
background perform below average at school. Approximately 20% of these children leave
school without qualifications. One of the causes is difficult communication between parents
and teachers. El ele provides mentors for schools with large numbers of Turkish pupils. The
mentors engage in dialogue between parents and teachers. They also help Turkish pupils
resolve problems with teachers and fellow pupils. A selection criterion for the mentors is that
they must be familiar with both Turkish and German cultures and have an excellent command
of both languages.

BASE
Our Belgian subsidiary BASE conducts a corporate social responsibility policy based on two
pillars: ‘children and health’ and ‘environment and sustainability’. BASE has entered into a
partnership with the Vlaamse Liga tegen Kanker, the Flemish League Against Cancer. Since 2005,
BASE has been organising summer vacations for 50 young cancer patients or their family
members on the Belgian coast (‘kids@ the coast’).
In the French-speaking Walloon region, BASE cooperates with ‘Les Restos du Cœur’, an
organisation that distributes food to the homeless and people living on the poverty line in the
city of Liege.
BASE is cooperating in financing telecommunications equipment for the Sint-Lucas
hospital, in particular for the neonatology department. This support allows research results
to be distributed and discussed in a professional way by researchers in Belgium and other
countries.
BASE has also concluded a partnership with one of Belgium’s largest hospitals,
Gasthuisberg Leuven, in the city of Louvain. BASE supports a taxi service that enables sick
children who need to be hospitalised on a frequent basis to go home regularly. Additionally,
BASE is supporting the hospital’s school so that sick children can continue receiving lessons
while in hospital.
BASE involves its personnel in activities in the community. Instead of an end-of-year gift,
employees had the option of giving a donation to a good cause.
BASE encourages customers to use online billing. For each customer who switches to
electronic bill payment, BASE makes a donation to an environmental organisation. Customers
may choose the organisation that receives the money.

Telfort
In September 2007, Telfort organised a sponsored event to raise money for two orphanages of
the ‘Spirit of Faith’ foundation in Kenya. The money was collected by 17 teams, consisting of
Telfort business relations, who ‘spun’ nine hours non-stop. The special cycles, use of the venue
and sporting oversight was sponsored entirely by Telfort business relations.

KPN Sustainability Report 2007 People connected 

 Sustainable
products
7 and services
KPN is an enabler. We strive to enrich people’s lives
and offer people greater possibilities to contact each
other. The products and services of KPN are aligned
with our corporate social responsibility (CSR) policy.

 KPN Sustainability Report 2007 Sustainable products and services

www.global-reports.com
 Better care, fun education
KPN provides products and services that enable people to improve the balance between
their personal life and their work. Products for conference calls and videoconferencing
allow people to telework more easily and thus communicate remotely. The quality of medical
care is improving thanks to KPN products that enable simple medical procedures to be
performed remotely.

Keeping the Netherlands on the move

KPN wants to help solve the mobility issue in the Netherlands. One way we can do this is
through our products that enable teleworking, such as our new services package called
Software Online, which provides access to a variety of software via the internet.
Similarly, mobile internet, hotspots, conference calls and videoconferencing eliminate
obstacles for people who want to work at different times and at different locations. KPN
intends to advise politicians more frequently about these and other technologies – like the
technology for road pricing – which are relevant to resolving the mobility issue. We want our
voice to be clearly heard in the mobility debate.
KPN offers its own employees facilities for working from home, such as high-speed wired
and wireless broadband access, plus the possibility to log in from home on to the KPN network.
We facilitate flexible working hours at the office and make it possible for our employees to
hold meetings at different locations by conference calls or videoconferencing so as to reduce
the number of car kilometres. Approximately 2,400 company car drivers of KPN have received a
Netherlands Railways Business Card, giving them the opportunity to travel by train if they think
it is more effective. We are going to increase this range of measures still further.

Esther van Zeggeren Teleworking is about more than using

KPN helps improve mobility mobile technology. It requires a change of
culture, a changing relationship between
in the Netherlands employer and employee. Managers will focus
far more on an employee’s results rather than
whether he or she put in an eight-hour working
day at the office, says Van Zeggeren. ‘This
places greater responsibility on the employees.
Provided that employers coach their people
properly and give them some latitude,
teleworking can have an enormously positive
effect on companies and their employees. It
stimulates efficiency and increases employees’
independence’.

Important role in debate

KPN helps improve mobility
in the Netherlands
‘KPN wants to tackle the traffic congestion
problem and keep the Netherlands on the
move. We have the products and ideas to do it,’
says Esther van Zeggeren, a director at the
Business Market segment and project leader
of the ‘Keeping the Netherlands on the Move’
project. KPN will put forward solutions to the
mobility problem in 2008. ‘Our top priority is
to introduce teleworking within KPN far more
widely than is presently the case,’ she says.
‘Externally, we want to play an important role
in the mobility debate.’
The plan is for all employees of KPN’s
sales and servicing departments to be
equipped by year-end 2008 with state-of-the
art mobile services, which will allow them to
work from home or at some other location.
Their mobile phones, PCs and laptops will need
to have a videoconferencing option. All KPN
company car drivers have Conference Cards
that allow them to make conference calls while
on the move. KPN Hotspots, at places including
filling stations, make it possible to transform a
car into a workstation and to check your e-mail
and hold a conference.
KPN wants to play an important role in the
mobility debate. ‘We believe we have a lot
to contribute when it comes to solving the
mobility problem,’ says Van Zeggeren.
‘We want to keep in dialogue with ministries
and interest organisations.’
KPN is consulting with employers’
organisations and industry association
Transport & Logistiek Nederland (TLN) about
joint proposals. With politicians and other
partners we have begun preparations for
participating in Spitsmijden (avoiding the
rush hour), an initiative that will encourage
employees to avoid using their cars during
the rush hour.
KPN wants to make people aware that
teleworking solutions are far simpler than often
thought. Mobile telephony, mobile e-mail,
conference calls, videoconferencing; they are
all available but they are still not always
associated with remote working. We want to
do something about that. Through campaigns
and by providing information, KPN will make
people aware of these possibilities. We also
want to make further improvements to the
technical capabilities and ease of use of
these products.

KPN Sustainability Report 2007 Sustainable products and services 

 E-Plus keeps Germany in touch by providing good nationwide network coverage. The standard
GSM network reaches 99% of the population. Using ‘Ultra High Sites’ (places at an altitude
higher than 1,000 meters), E-Plus was able to expand UMTS. Almost two-thirds of the German
population can now use UMTS.

KPN OpWeg
More than half (60%) of all motorists who use a navigation system still get lost, according to
research commissioned by KPN in 2007 among more than 450 motorists. People do not
understand the instructions or the map information is out of date. Almost 1 in 10 people get
lost because they simply forgot to take the address of their destination with them. In 2007, KPN
introduced KPN OpWeg, a navigation system for mobile phones and Blackberry devices. Thanks
to this service, a motorist always has at hand the latest map details and traffic information from
the ANWB (Royal Dutch Touring Club) plus a link to the telephone directory. A better navigation
system means fewer detours and, consequently, lower carbon dioxide emissions. The system
also makes it possible to avoid traffic congestion.

People connected
KPN’s telecommunications products and ICT solutions enable people to contact each other.
They help prevent people falling into social isolation. They also simplify the exchange of
knowledge. KPN’s ICT solutions are used in the healthcare and education sectors and
contribute to improving safety in the Netherlands.

New forms of healthcare

Good ICT facilities can relieve healthcare providers of a lot of work. The digitization of data is
one of the challenges facing the healthcare sector. Together with healthcare institutions and
partners, KPN makes it possible to develop ICT solutions that allow healthcare providers to
devote more time to patients and raise the quality of care.
In 2007, we again offered more services via ZorgConnect, the national fibre optic network
for healthcare institutions. ZorgConnect enables hospitals to communicate simply and securely
with GPs and pharmacists. From a conference room or operating room, medical specialists can
consult with colleagues on a screen regarding the best method of treatment. The chronically ill
prefer to receive treatment at home for as long as possible, but without feeling unsafe.
ZorgOpAfstand makes it possible to perform routine medical procedures remotely, such as
checking a person’s weight and blood pressure or the blood sugar level of diabetes patients.
KPN has developed applications for this service in cooperation with the Meavita Nederland
healthcare institution. Together, we examined applications that could be made part of
ZorgOpAfstand.
ZorgOpAfstand was tested in 2007 among 600 clients of Meavita and will be introduced in
2008. Meavita is the first ZorgOpAfstand customer and has concluded a five-year agreement for
the service. KPN also offers the service to other healthcare providers. The role of KPN is to offer
a service that enables healthcare institutions to communicate with their clients at home.
ZorgVrijWonen was developed to increase the self-sufficiency of clients in nursing and care
homes. It includes an alarm and detection system that fosters a feeling of safety and comfort.
ZorgVrijWonen is an application that KPN frequently offers in cooperation with other
parties, such as healthcare institutions, installation companies and housing associations. The
first adapted homes with the ZorgVrijWonen system were delivered in 2007.
KPN began a trial with ‘Multimedia at the bedside’ in 2007 at the Martini hospital in
Groningen. With multimedia at the bedside, patients are able to make phone calls, e-mail, surf
the internet, watch television and view hospital information. The service can further provide
video/music on demand, gaming on demand, audio books and other services.

 KPN Sustainability Report 2007 Sustainable products and services

www.global-reports.com
New telephone kiosk KPN introduced a new customer-friendly and
low-maintenance public telephone kiosk in
suitable for the disabled 2007, with a square shape and an illuminated
advertising panel on one side. The kiosk is
powered by a solar panel on its roof. This
kiosk is more customer-friendly than the
existing triangular kiosks because it has no
doors. This makes it more easily accessible to
the disabled. The kiosks also provide a greater
sense of safety thanks to their good lighting
and the positioning of the payphone in the
corner of the kiosk. This provides a better
picture of the immediate vicinity of the kiosk
while a person is making a call. Besides phone
calls the new kiosk offers a text messaging
(SMS) service. The new kiosk has made it
possible for KPN to continue providing public
payphones on the streets.

KPN makes learning more fun

KPN wants to be involved in education and since 2004 has been providing free internet access
via School Online to primary and secondary schools, as well as intermediate vocational schools.
School Online provides access to digital learning material. In 2007, KPN introduced two new
services delivered via School Online:

• Intranet Online: teachers, parents and pupils can share information efficiently. Intranet
Online includes a full e-mail programme, complete with applications like address books and
a diary;
• SMS Online: with this service schools can inform large groups of pupils or parents
simultaneously by text messaging (SMS).

KPN earlier began offering services called E-mail Online, Back-up Online and ELO Online.
Schools that use E-mail Online no longer need their own e-mail server. Back-up Online offers
an easy way of automatically saving copies of files in KPN CyberCenters. ELO Online provides
an electronic learning environment.

For School Online, KPN cooperates with educational partners like Cédicu, Fronter, OmniPix
and TeleTOP, KlasseTV, Microsoft, Three Ships and Waag Society. Together with these partners,
KPN develops teaching material, if required. This allows schools to take full advantage of the
possibilities opened up by the internet and makes learning more fun. The complete range of
offerings of School Online can be found at www.kpn.com/schoolonline.

KPN Sustainability Report 2007 Sustainable products and services 

 Making the Netherlands safer
Safety is high on the social agenda. KPN helps to ensure the safety of members of the public in
the Netherlands. We do so by providing a vital part of the social infrastructure, enabling the
police and other emergency services to do their work properly. In cooperation with the
authorities and the security industry, KPN is working on innovations in safety. In 2007, KPN
shared its knowledge of safety at the ‘Security Management’ conference. We were present in
2007 at the ‘Safety and Security’ fair.

Development of services
In 2007, KPN worked to further grow a number of initiatives started in 2006 to develop an IP
security portfolio. Based on market research we took steps to produce an integral vision and
strategy. This vision will become the guideline for the composition of our IP security portfolio
and it will determine the role that KPN will play as a provider of security products and services.

The following services became available in 2007:

• InBeeld: a remote camera surveillance service. It is intended for companies (particularly

small ones) and promotes the safety of companies and their employees. The service was
launched in May 2007.
• Alarmering over IP: in 2007, KPN succeeded in creating a reliable alarm system based on IP
technology in cooperation with the security industry. This solution provides an inexpensive
alternative to earlier generations of alarm systems. The IP technology makes it possible to
send images for alarm verification. This is important because from April 2008 the police will
respond only to verified alarm signals.

Antenna systems and health

KPN stepped up its public guidance campaign on the safety of UMTS antennas in 2006 through
a campaign called ‘Mobile communication, what are we actually talking about?’ We took the
initiative for this campaign and produced it in cooperation with MoNet, municipal health
departments, the Antenna Bureau and the police. Three Dutch mobile operators (KPN,
T-Mobile and Vodafone) cooperate in MoNet in various areas of public interest, such as
information about antenna systems used in mobile telephony (also see www.monet-info.nl).
The Antenna Bureau is the government information desk that provides guidance and advice
on antennas.
The KPN website www.kpn.com contains information about radio waves and UMTS plus
the most important studies available about the possible health consequences of mobile
communication.
All mobile phones sold by KPN satisfy the international standard EN50360. The standard
stipulates that radio waves produced by mobile phones may not exceed 2 Watts per kilogram,
expressed as a Specific Absorption Ratio (SAR). This limit value applies to adults and children.
The Netherlands Health Council conducted research to find out whether this standard needs to
be tightened for children. The council concluded ‘that there are no health grounds for limiting
the use of mobile phones by children above the age of two’.
E-Plus is participating in projects that are examining the effects of electromagnetic fields
on human health. Many young people would find it hard to imagine life without a mobile
phone. E-Plus is aware of its responsibility in this field. By signing the ‘Code of Practice for
Mobile Telecommunications Operators in Germany’, E-Plus has confirmed its commitment to
protecting children and teenagers from means of communication that may be harmful to their
development. The Code of Practice and the revised version of October 2007 contain standard
values that the mobile telecommunications industry applies to make sure that children and
teenagers do not have unrestricted access to harmful content. E-Plus has recruited a Youth
Protection Officer and is a member of Freiwillige Selbstkontrolle Multimedia (FSM). This
cooperative organisation of mobile operators is looking for ways of guaranteeing effective
protection of children and young people.

Blending in with the built-up environment

When KPN installs new antennas it has to observe health and safety and building regulations
on the one hand and spatial embedding requirements on the other. KPN is striving to minimise
the number of new antenna sites by installing as many antennas as possible at existing
locations. We also try not to impair the appearance of buildings.

Responsible energy use

KPN devotes considerable attention to the environmental aspects of its products and services.
Besides energy consumption, we examine the use of materials and possibilities for their re-use.

 KPN Sustainability Report 2007 Sustainable products and services

www.global-reports.com
 KPN hardware: using it longer
A shift occurred in 2007 from selling to renting end-user equipment, including ADSL modems
and KPN TV receivers. Articles returned by customers are KPN’s property and many have not yet
reached the end of their technical and economic life. They can be used again. By agreeing good
arrangements with suppliers, we have found that between 85 and 90% of the devices can be
re-used by consumers, depending on the type of hardware. This avoids premature scrapping
of the hardware, which would impose an even greater burden on the environment.

GSM recycling
E-Plus and medical aid organisation Malteser Hilfsdienst continued their cooperation in
collecting old mobile phones in 2007. To do this they worked with a company called Greener
Solutions. The collected handsets are re-used as telephones or recycled as waste. E-Plus and
the Malteser Hilfsdienst have linked environmental targets to social engagement: revenues
obtained from reusable handsets will go completely to the Lebensfreunde campaign of the
Malteser Hilfsdienst.

Integration of Telfort network

Midway through 2007, Telfort’s mobile voice and data traffic was transferred entirely to the
KPN network. To make this possible KPN installed extra transceiver modules. This means that
the Telfort network has now been taken out of service and can be dismantled. Moreover, the
KPN/Telfort amalgamation resulted in a reduction of the energy consumed by KPN’s GSM
network in 2007.

Packaging
The FLEX concept was introduced for InternetPlusBellen in 2007. It involves packing a number of
separately packed articles in a box that doubles as the transport box. This uses up less packaging.
The solution won the international ‘Red Dot’ award for products with a high-quality design.
KPN wants to reduce still further its use of packaging cardboard in 2008. We are
investigating various alternatives.

KPN Sustainability Report 2007 Sustainable products and services 

 Like-minded
partners
8 KPN prefers to work with suppliers who also support
a sustainable way of working. In 2007, we took a
close look at the criteria we apply for suppliers.
Among other things this resulted in the production
of a code of conduct for suppliers. This Supplier
Code of Conduct will be implemented in 2008.

 KPN Sustainability Report 2007 Like-minded partners

www.global-reports.com
 Working with sustainable suppliers
When selecting products and services KPN was already taking into
account the degree to which suppliers observed the standards laid down
for waste disposal, use of hazardous raw materials and packaging. In
2008, we will also examine whether suppliers respect requirements for
human rights and working conditions and whether they use means of
production that impact the environment as little as possible. This means
that we will devote greater attention to supply chain management.

Towards a Code of Conduct for Suppliers in 2008

KPN drew up its Supplier Code of Conduct in 2007 and will discuss the code in 2008 with a
number of suppliers. These talks may result in adjustments to the code. In 2008, KPN wants
to introduce the standards contained in the definitive code in its procurement procedures,
including the selection of suppliers.
KPN is going to inform its most important suppliers of the Code of Conduct and will ask
them to sign it. In our annual evaluation of our relationships with suppliers, we will expressly
keep a watch on sustainability aspects. From 2009 it will then be possible to keep track of
developments in our relationships with suppliers from year to year. Where possible, KPN will
only conclude or renew contracts with suppliers that endorse the KPN Code of Conduct.

Supply Chain Management

Good supply chain management and a reduction of the number of suppliers go hand-in-hand.
The purpose of supply chain management is to plan and control the entire process of supplying
raw materials and parts as efficiently as possible. A shorter supply chain enhances KPN’s
performance and will make KPN a more reliable customer for suppliers. Value-based
procurement and supply chain management reinforce each other. Global procurement has
mushroomed within KPN over the past two years. To support worldwide procurement KPN has
contracted a high-quality partner with more than 50 years experience in the Asia-Pacific
region. This company will support us in selecting and managing suppliers and developing our
Asian supplier base. Our new partner has a good reputation when it comes to corporate social
responsibility and KPN will adopt its high standards for selecting suppliers.

Assessing service providers on sustainability

KPN assesses its suppliers on their consumption of energy. In 2008, we will require suppliers
to state in their offers the energy consumption of the product they wish to sell to us and the
measures they have taken to reduce energy consumption during usage.
To be able to exert even greater influence over suppliers, KPN is drawing up
specifications together with its international colleagues (among others, those affiliated to
ETNO). The specifications will address such matters as building into telecommunications
equipment the low-power mode already used in almost all ICT hardware.

Less paper for invoices

KPN reduced its paper consumption in the Netherlands by 12% in 2007 compared with the
year before. Significant reductions occurred in the quantity of paper used for copying, invoicing
and leaflets.
Since November 2006 we have been printing all our invoices double-sided and in 2007
we increased the digitization of invoices still further. These developments have produced a 37%
reduction in the paper consumed for invoicing. In 2008, KPN will switch to FSC paper for its
various invoicing streams.

‘Tightening up the
Supplier Code of Conduct
step by step’
‘A good and credible sustainability policy
is possible only by keeping an eye on
the behaviour and performance of our
suppliers,’ says Willem van Oppen, Chief
Procurement Officer. ‘If the materials you
use are not sustainable, how can you supply
a product that is environmentally and
socially responsible?’
‘That is why we drew up our Supplier Code
of Conduct in 2007 to spell out important
criteria for responsible, sustainable
operations by suppliers. These criteria might
result in some suppliers being set aside as
a business partner. At the same time I want
a realistic approach. There is no point in
imposing requirements that are unattainable,
because it means you miss an opportunity
to guide suppliers step by step towards
greater sustainability.’
‘The Supplier Code of Conduct is a living
document,’ says van Oppen. ‘Over the coming
years, we will gradually tighten up the
requirements. We will critically examine the
sustainability performance of suppliers and
keep a watch on our own targets. For
example, KPN wants to increase its energy
efficiency, so we will appraise suppliers
rigorously on this aspect in the years ahead.
We want to cooperate as much as possible,
but the bar must be raised’.

KPN Sustainability Report 2007 Like-minded partners 

 ‘Clean’ working

9 Responsible energy use is one of the three pillars

of KPN’s new CSR policy. We want to use energy
efficiently and invest in innovations that will raise our
energy efficiency still further. At the same time, we
will continue to focus on waste reduction, good
management of cables and other matters that help
bring about a better environment.

 KPN Sustainability Report 2007 ‘Clean’ working

www.global-reports.com
 Towards a better environment
Responsible energy use
KPN wants to be a leader in the Netherlands when it comes to saving energy and reducing CO2
by ICT solutions. We want to help to save energy throughout the supply chain, by watching the
energy consumption throughout a product’s life cycle, all the way from development through
production, sale and usage, and, where relevant, disposal.
KPN is taking measures to make its network, hardware and datacenters (CyberCenters)
more energy efficient.
The total electricity consumption of KPN is increasing because of the growth in the
number and size of our CyberCenters. The reason for the growth is that ever more customers
are accommodating their ICT activities at KPN. Many transfer these activities from other service
providers or previously managed their own ICT services in-house. In other words, part of the
growth at KPN is the result of a relocation of electricity consumption in the Netherlands.
KPN’s objective is to increase the energy efficiency of the total supply chain still further in 2008,
both in the network and at customers’ premises. We are also striving to use more sources of
renewable energy.

Energy efficiency and consumption in the supply chain

There is a rapid growth in the use of KPN’s telecommunications and ICT services, like hosting
and housing. Thanks to the considerable attention devoted to energy efficiency, the growth of
electricity consumption in the Netherlands went up by only 1.7% in 2007.
KPN’s activities exert an influence not only on its own energy usage, but also on that of
customers and on their possibilities for saving energy. The use of services like teleconferencing
and broadband data communication makes it possible for customers to ‘telework’ and thus
help ease traffic congestion on the roads. When companies accommodate their ICT at a KPN
datacenter, they are saving energy in the supply chain if KPN’s datacenter uses energy more
efficiently than the datacenter they previously used.
To raise the energy efficiency of its datacenters still further, KPN intends to become a
member of ‘Green Grid’. Established in 2007 by companies including IBM, Hewlett-Packard, Dell
and Intel, Green Grid exchanges best practices in energy usage and performance indicators and
develops technologies in this field.
When selecting suppliers KPN pays particular attention in various cases to the energy
consumption of the hardware. For more details see chapter 8, ‘Like-minded partners. Working
with sustainable suppliers.’

Energy consumption (in tera-joules)

2007 2006 2005
Inter- Inter- Inter-
NL national Total NL national Total NL national Total
Indirect consumption
electricity * 2,639 1,253 3,892 2,594 1,191 3,785 2,505 1,139 3,644
Direct consumption
gas 183 32 215 262 30 292 212 31 243
automobile fuel 365 102 467 371 116 487 461 108 569
diesel for emergency
power supplies 5 59 64 7 47 54 5 33 38
Total 3,192 1,446 4,638 3,234 1,384 4,618 3,183 1,311 4,494
* electricity has been converted from KWh to Joules (1 KWh = 3.6 MJ)

Reducing carbon dioxide emissions

KPN’s indirect CO2 emissions (i.e. the quantity of CO2 released during production of the
electricity that KPN uses) decreased in the Netherlands between 2006 and 2007 by more than
67 kilotons (a 19% reduction) through the purchase of renewable energy and the use by our
energy suppliers of a better fuel mix. In 2008, KPN is going to investigate with Greenlab (a
cooperative venture between companies including Eneco and GreenChoice) how KPN can
generate renewable energy on a small scale at its sites.

CO2 emissions (in kilotons)

2007 2006 2005
Inter- Inter- Inter-
NL national Total NL national Total NL national Total
Indirect CO2 emissions
electricity 294.0 194.7 488.7 361.5 190.8 552.3 371.5 186.9 558.4
Direct CO2 emissions
gas 10.3* 1.8 12.1 14.7 1.7 16.4 11.9 1.7 13.6
automobile fuel 26.8 7.6 34.4 27.2 8.7 35.9 33.9 8.1 41.9
diesel for emergency
power supplies 0.4 4.4 4.8 0.5 3.5 4.0 0.4 2.5 2.9
Total 331.5 208.5 540.0 403.9 204.7 608.6 417.6 199.2 616.8
* Excluding Retail

KPN Sustainability Report 2007 ‘Clean’ working 

 Developments in sustainable cooling techniques
The energy consumed by ICT hardware is converted to a large extent into heat. Therefore, KPN
is constantly on the lookout for ways of cooling hardware in a sustainable way. This has resulted
in two new concepts: district cooling and ‘KyotoCooling®’. District cooling was developed in
2006 and used for the first time in 2007. KyotoCooling® was also first used in 2007 at a test site.

District cooling
We have started using district cooling at one of the largest KPN switching centres in
Amsterdam. This reduces energy consumption. It is a sustainable development that has
attracted international attention and was nominated for the ‘Green Award’ for datacenters
organised by ‘Datacenters Dynamics’. KPN is not yet using the maximum cooling capacity.
We are examining where else district cooling is feasible. For more information see the sidebar
‘KPN uses natural cooling water: less CO2 emissions’.

KPN uses natural cooling

water: less CO2 emissions KPN switching
centre

Production building

Nieuwe
Meer

Cold exchanger

Nieuwe Meer, just west of Amsterdam, is a
lake more than 30 meters deep that provides
an almost inexhaustible source of cold water.
Since August 2006, the NUON energy company
has been pumping water from the lake into
a network of pipes so as to cool offices and
homes. KPN was one of the first customers
of the system. The low-energy district cooling
keeps the KPN switching centre at Amsterdam
Zuid at the right temperature.
The system has drastically reduced
CO2 emissions. Cold would otherwise need
to be generated using energy-hungry
cooling machines.
The cold water from the Nieuwe Meer is
pumped to a cold exchanger. From there the
cold water is circulated across the south of
the city by means of thoroughly insulated
distribution network. At Amsterdam Zuidas,
the cold (5 to 6°C) from the distribution
network is delivered to the indoor climate
systems of customers.
After the cold has been supplied, the
heated water (approximately 16°C) goes back
to the cold station, where the added heat is
delivered to another water stream. This flows
back into the Nieuwe Meer. Through the
discharge of heat into the atmosphere the
water gradually cools down. Research has
shown that at its present size the system does
not disturb the lake’s natural balance.
International recognition
Use of district cooling at the KPN switching
centre in Amsterdam is helping to reduce
energy consumption. This sustainable
development has won international
recognition. The system was nominated for
the ‘Green Award’ for datacenters presented
by the Datacenters Dynamics organisation.
The technique reached the shortlist of four
European nominations.
In 2008, KPN is going to expand district
cooling to the ‘old’ part of the Amsterdam
switching centre. In the near future, we expect
this measure to result in a 2 GWh reduction
on an annual basis. KPN is examining the
possibility of using a similar system at the
KPN switching centre in Rotterdam.

 KPN Sustainability Report 2007 ‘Clean’ working

www.global-reports.com
 KyotoCooling®
KPN’s leading position in the environmentally responsible cooling of datacenters has been
underscored by the decision by the Ministry of Economic Affairs to use a KPN CyberCenter for
reasons including its sustainable cooling (also see ‘KyotoCooling®’).
District cooling and KyotoCooling® are applications for KPN switching centres that
consume a lot of energy. KPN is also actively developing sustainable innovative cooling
concepts for sites with lower energy consumption, like the junction boxes in the streets that
support the KPN network. Trials are currently underway with ‘soil cooling’ and the ‘Heat Pipe’.

KyotoCooling® KyotoCooling® for datacenters

Outside air
-10°C to +30°C

Exhaust air
31°C to 37°C

Make-up air
25°C

. through the warm air of the datacenter.
For more information see
www.kyotocooling.com
Datacenters operated by telecommunications
and ICT companies are crammed with servers
and storage equipment that produce a great
deal of heat, and therefore need cooling. At
newly-built CyberCenters, KPN has departed
from conventional air-conditioning and is now
cooling them by means of outside air.
It is possible in the Netherlands to cool
a datacenter by means of outside air all year
round except for a few days. This approach
yields a potential energy saving of 50%
compared with conventional cooling.
The air cooling system that KPN uses is
called KyotoCooling® and was developed by
Uptime Technology, a company with which
KPN cooperates closely. A large, slowly rotating
‘heat wheel’, consisting of aluminium strips,
travels half through outside air and half
Outside, the panels obtain the temperature of
the outside air. They then rotate indoors where
they absorb the heat of the server room. This is
how the wheel cools down the server area. The
advantage is that the outdoor air does not need
to be blown into the datacenter, which means
the air humidity inside is unaffected.
Usable year-round
KyotoCooling® can be used provided that it is
not hotter than 22°C outdoors. This situation
occurs 97% of the year in the Netherlands.
For the remaining time it is necessary to use a
conventional cooling system as a back-up. But
in this respect KyotoCooling® is no different to
other methods, because conventional cooling
systems also need a reserve system.
KyotoCooling® is a young technology.
It does have to be built straight into the
datacenter at the time of its construction.
It is difficult if not impossible to implement
the technology at existing datacenters.

KPN Sustainability Report 2007 ‘Clean’ working 

 Soil cooling
KPN is developing an alternative, low-energy cooling system for its mobile network. At the foot
of transmitter masts we have installed trial set-ups that use a system of underground pipes to
extract cold from the soil to keep the equipment at the right temperature. Water is the cooling
agent. The system will be evaluated in fall 2008. Based on experience with the trial, KPN will
decide whether to use the system on a larger scale.

Heat Pipe
The Heat Pipe is a closed system containing a coolant that emits heat to the surroundings by
alternating evaporation and condensation. It makes smart use of temperature differences. The
Heat Pipe works without the need for external energy. Throughout its life the system requires
no maintenance. The pipe was installed at a test site in 2007. The pilot will run until fall 2008.
KPN will then decide whether this method of cooling is usable on a larger scale.

KPN’s soil cooling saves KPN is developing a low-energy cooling
system for sites in its mobile network. At the
a lot of energy towns of Vroomshoop and Workum, we have
installed trial set-ups at the foot of transmitter
masts. By means of a system of steel pipes the
system extracts cold from the soil to keep the
ICT equipment at the right temperature.
The trial is one of the outcomes of the
KPN innovation program. Each transmitter
Above ground 0.5 m mast of the mobile network is connected to
ICT equipment housed in a junction box near
the mast. This hardware produces heat. To
Below ground 75.0 m ensure its correct operation the equipment
has to be cooled. Traditional cooling
consumes a relatively large amount of energy
and, what’s more, it uses a fan or compressor
Soil cooling: an underground system of that can cause noise nuisance.
pipes takes care of the cooling in KPN’s At the trial sites in Vroomshoop and
junction boxes Workum KPN started pumping water into the
ground in August 2007. The water goes down
through long pipes to a depth of 75 m where
it is cooled indirectly by groundwater with a
temperature of approximately 10°C. Through
a system of pipes the cold water flows back to
the cooling unit, which cools the equipment
by means of air. To circulate the cooling water
only one small pump is necessary, comparable
with a pump used in a central heating system.
Conventional cooling systems consume far
more electricity. KPN expects soil cooling to
produce a substantial saving. Soil cooling is
not only energy efficient, it requires very little
maintenance compared with other systems.
In September 2008, KPN will examine
the precise environmental gains. This will be
followed by a definitive decision regarding
use of this new system at all transmitter
mast locations.

Lower energy consumption The more the Netherlands communicates by Only a small fan is needed to blow
means of broadband technology, the more the hot air into the pipe to a depth of
thanks to Heat Pipe in KPN requirements we impose on the broadband approximately 1.5 metres. The cooled air
junction boxes network. To connect households to the fibre flows back into the box. The KPN Heat Pipe
optic network and ultra high-speed internet, consumes 50 Watts, less than traditional
KPN will install between 15,000 and 25,000 cooling methods.
Evaporator junction boxes all over the country in the The new method will be tested in
section coming years. Bunnik until October 2008. At year-end 2008
The hardware in the boxes produces the study will be completed and KPN will
heat. It is necessary to cool them. KPN wants decide whether it is possible to use this
to use a cooling method in the boxes that cooling concept nationwide.
uses three to four times less energy than
conventional cooling methods. We are going
to use a Heat Pipe: a closed pipe that takes
away heat by means of condensation. The
principle underlying the Heat Pipe has been
used in the past. What is new is that KPN will
install the pipe partly in the soil beneath the
junction box. This will allow us to use the cold
Condensator
stored in the earth. That is what makes this
section
cooling method exceptionally efficient.

 KPN Sustainability Report 2007 ‘Clean’ working

www.global-reports.com
 ETNO Task Team on Energy
European telecommunications operators are united in the European Telecommunications
Network Operators Association (ETNO). This industry association exists to promote sustainable
operations. To that end the members signed a charter in 2004. The charter requires members
to exchange knowledge and cooperate in the sustainability field. Members participate in
various working groups, one of which is the Sustainability working group. It was in that group
that KPN took the initiative in 2004 to tackle energy consumption among operators and
established the ‘Task Team on Energy Benchmarking & Savings’. KPN is the initiator and chair
of the team. Results so far include:

• an Energy Policy containing recommendations for further reductions that has been sent
to all member operators;
• a European Code of Conduct for suppliers of telecommunications equipment;
• sharing of knowledge by exchanging pilots and other projects aimed at saving energy.

The trials described earlier with the Heat Pipe and soil cooling (see boxes ‘Lower energy
consumption thanks to Heat Pipe in KPN boxes’ and ‘KPN’s soil cooling saves a lot of energy’)
are a direct result of the exchange of knowledge in the task team. The team has set itself the
goal of publishing its first annual report in 2008, providing an overview of results achieved so
far. The report will be published in summer 2008.

Turning off equipment

Some hardware is being rendered superfluous by the switchover from classical
telecommunications services to newer broadband services like ADSL, InternetPlusBellen and
digital TV. We were able to decommission a lot of equipment in 2007 as a result of the
integration of the Telfort and KPN Mobile networks. This saved a total of 42 GWh of energy,
representing approximately 7% of the KPN network’s total consumption in the Netherlands.
It reduced CO2 emissions by 20 kilotons.

CO2 reduction by our employees

Using ICT and telecommunications makes teleworking easier. Our sales employees and
servicing engineers, for example, are increasingly working from home. If they use a laptop
computer and broadband access, they no longer need to travel to an office to update their
schedules and records. This has reduced the number of kilometres they need to drive.
Service staff can also remotely order spare parts, which are delivered to their cars at night
by TNT Innight.
A survey conducted among KPN employees showed that 42% regularly work from home
and have been able to agree good home-working arrangements with their managers. Only
25% of the workforce said that teleworking was not an option for them.
KPN stimulates flexible working by providing teleworking facilities. One-third of our
employees can work on our corporate network remotely via a PC. Over the past years KPN has
measured the effects of its own use of teleconferencing. Approximately 2,400 company car
drivers received a ConferenceCard in 2006. Based on the use made of the cards and a survey
among users, we calculated that in 2007 this produced a saving of 2 kilotons of CO2. In 2007,
the same group of company car drivers received a Netherlands Railways Business Card. In the
first six months that the cards were available to them the employees covered no less than
370,000 km by train.

Waste
KPN treats waste and cables responsibly and complies with the rules for environmental
licences. The table below shows how much waste KPN has produced in the Netherlands over
the past years. An increase in disassembly projects enabled us to achieve a larger percentage
of re-use in 2007. This was possible because the released waste streams contained hardly any
residual waste.

Development of waste streams at KPN in the Netherlands (tonnes)

2007 2006* 2005
Waste stream
Industrial waste 6,122 6,033 5,526
Hazardous waste 48 77 41
Total 6,170 6,110 5,567
Waste trend (%) +1% +10% +1%
Re-use 47% 45% 42%
* The figures for 2006 have been adjusted because disassembly projects are now included as well.

KPN Sustainability Report 2007 ‘Clean’ working 

 One of KPN’s objectives is to reduce the volume of residual waste. In cooperation with waste
processing partners, KPN collects different types of waste separately. This results in less waste
ending up in the residual waste container. KPN has already taken measures for the separate
collection of paper, confidential data carriers, disposable cups, waste film and EPS (Styrofoam).
A matter still requiring attention at KPN is the separate collection of paper. We have placed
press containers for paper at different locations for this purpose.

Cable network and soil

The table below shows how the cable network has developed. Besides the cable network in the
Netherlands, KPN owns in other countries approximately 8,000 km of international land cables.
These are not included in the table.

Land cables (in numbers × 1,000 km)

2007 2006 2005
Copper cables 231.9 231.5* 230.6*
Fibre optic cables 47.3 45.4** 44.4**
Cable sheaths 32.8 32.9 32.8
Submarine cables 1.2 1.2 1.2
Total 313.2 311.0 309.0
* Changed in relation to earlier data because of inclusion of new type of cable.
** Changed in relation to earlier data because planned but not installed cables were also counted.

Prevention of digging incidents

KPN is one of the initiators behind the ‘Prevent Digging Damage’ campaign launched in 2005.
In this programme KPN is cooperating with other cable and pipe managers, the KLIC Foundation
(Cables and Pipes Information Centre), contractors and the Ministry of Economic Affairs. The
purpose of the initiative is to reduce the number of digging incidents in the Netherlands. In 2007
the number of cases of damage decreased by approximately 1% compared with 2006. The
reduction in 2006 was 8% compared with 2005. More than 1,000 ‘earth movers’ have now
signed up to the digging code that promotes damage-free digging.
In 2007, the North Holland provincial government brought proceedings against KPN on
the grounds of a breach of the Soil Protection Act. KPN had commissioned digging in polluted
earth without notifying the competent authority. We are critically re-examining our processes
to avoid any recurrence of such cases.

Environmental licenses
In 2007 KPN held valid environmental licences for all buildings and properties in the Netherlands
and Germany that are subject to licensing. In Belgium we carried out a check on compliance with
requirements in 2007. The large locations now hold an updated environmental licence. In 2008,
we will apply for licenses for the smaller locations, where there are batteries and/or cooling
systems with a capacity above the prevailing threshold values.

Environmental care at E-Plus

E-Plus has a proactive stance on its environmental responsibility to the community. With a view
to systematic working methods, E-Plus has introduced an environmental management system
that has been certificated by an independent environmental auditor according to the ISO 14001
standard and is inspected regularly.

 KPN Sustainability Report 2007 ‘Clean’ working

www.global-reports.com
 Assurance Report
To the readers of the Royal KPN Sustainability Report 2007.
We were engaged by the Board of Directors of Royal KPN N.V. (further KPN) to provide
assurance on the information in the Sustainability Report 2007 (further referred to as The
Report). The Report, including the identification of material issues, is the responsibility of the
company’s management. Our responsibility is to issue an assurance report on The Report.

What was included in the scope of our assurance engagement?

Our engagement was designed to provide the readers of The Report with limited assurance on
whether the information in The Report is fairly stated.

Procedures performed to obtain a limited level of assurance are aimed at determining the
plausibility of information and are less extensive than those for a reasonable level of assurance.
To obtain a thorough understanding of the financial results and financial position of KPN the
reader should consult the KPN audited financial statements in the “Annual Report and Form 20-F”
for the year ended 31 December 2007. We do not provide any assurance on the achievability of
the targets, expectations and ambitions of KPN.

Which reporting criteria did KPN use?

There are no generally accepted standards for reporting sustainability performance. KPN
applies its own sustainability performance reporting criteria, derived from the G3 Sustainability
Reporting Guidelines of the Global Reporting Initiative as detailed on page 51 of The Report.
We believe that these criteria are suitable in view of the purpose of our assurance engagement.

Which assurance standard did we use?

We carried out our engagement in accordance with Standard 3410N ‘Assurance engagements
relating to sustainability reports’ of the Royal Netherlands Institute of Register Accountants.
This Standard requires, amongst others, that the assurance team possesses the specific
knowledge, skills and professional competencies needed to understand and review the
information in The Report, and that they comply with the requirements of the IFAC Code of
Ethics for Professional Accountants to ensure their independence.

What did we do to reach our conclusions?

We carried out the following work:

• A media analysis and internet search to obtain information on relevant environmental,

safety and social issues for KPN in the reporting period.
• Interviews with relevant staff at corporate level responsible for the information in The Report.
• A review of the systems and processes for information collection and processing, including
the aggregation of the data.
• A review of internal and external documentation to determine whether the information in
the Report is supported by sufficient evidence;
• Checking the consistency of the reported information with external information such as the
Annual Report 2007.

During the assurance process we proposed changes in the various drafts of The Report to KPN
and reviewed the final version of The Report to ensure that it reflected our findings.

What is our conclusion?

Based on the above work we conclude that the information in The Report does not appear to
be unfairly stated.

KPN Sustainability Report 2007 Assurance Report 

 What else did we observe?
Without affecting the conclusions presented above, we would like to draw readers’ attention
to the following:

In 2007 KPN made progress by formalising its corporate social responsibility (CSR) policy.
We recommend KPN to build on this in 2008 through:

• further development of the process for identifying the material sustainability issues for KPN
(and The Report), including consideration of the results of dialogue with key stakeholder
groups, and to report on this process next year;
• implementation of the new CSR policy in the organisation in the context of the company
strategy 2008-2010 “Back to growth” including expansion of the CSR policy to the whole
KPN Group, translation of the goals into concrete actions and measurable targets, and to
report on this in the next Sustainability Report.

Amsterdam, 12 March 2008

KPMG Sustainability B.V.

Drs W.J. Bartels RA (director)

 KPN Sustainability Report 2007 Assurance Report

www.global-reports.com
 Accountability
in relation to GRI

Criteria
This report is based on the guidelines of the Global Reporting Initiative (GRI). The GRI provides
a global standard for reporting on sustainability. KPN reports in conformity with level C+ of GRI
G-3 of 2006

Scope
From the many themes in each chapter we made a selection based on relevance and priority
and on the spearheads of KPN’s policy on CSR. Each chapter deals at length with two or three
key issues. The appendices contain additional data. This year KPN has not included any
indicators from the supplement for the telecommunications sector.

Boundary
In this report KPN is reporting on the company itself and on its subsidiaries, unless otherwise
indicated, and provided that KPN owns more than a 50% interest in the companies. This
concerns Digitenne, Intis Networks (KRAL), KCC Nederland (KPN Contact), Planet Internet,
Telfort and XS4ALL in the Netherlands, BASE in Belgium and E-Plus in Germany (under the
‘International’ heading in the tables). The activities of Getronics have not been included in
this report because we did not acquire this part of the group until late in 2007.

The following points need to be borne in mind:

• in regards to human resources and community activities, we make a distinction between the
KPN NL Social Entity and the company’s Dutch participating interests. The KPN NL Social
Entity covers all employees under the KPN collective labour agreement or with a personal
contract of employment with KPN; and
• Chapter 6 does not include any activities of XS4All because that company publishes its own
sustainability report.

GRI G-3 requires a clear approach carried out in a number of steps: from analysing issues to
policy and then onwards to elaboration and monitoring. Our CSR policy was formulated and
approved by the KPN Board of Management in 2007. It will be elaborated and monitored in
2008. As a result of this policy we have injected greater focus into this report.

KPN Sustainability Report 2007 Accountability in relation to GRI 

 Indicator GRI Reporting Guidelines Page in Sustainability Report
Profile
1.1 Statement from the most senior decision maker of the organisation p. 3
about sustainability
1.2 Description of key impacts, risks, and opportunities P. 5; Annual Report and Form 20-F 2007,
section ‘Risk Management’
Organisational profile
2.1 Name of the organisation p. 9
2.2 Primary brands, products, and/or services p. 9; Annual Report and Form 20-F 2007
2.3 Operational structure of the organisation p. 9
2.4 Location of organisation’s headquarters p. 9
2.5 Number of countries where the organisation operates p. 9
2.6 Nature of ownership and legal form p. 9
2.7 Markets served Annual Report and Form 20-F 2007
2.8 Scale of the reporting organisation p. 25; 55;
Annual Report and Form 20-F 2007
2.9 Significant changes p. 9; 23
2.10 Awards received in the reporting period p. 14; 44
Report profile
3.1-3.4 Report profile p. 6-7
Report scope and boundary
3.5-3.8 Process for defining report content p. 6-7
GRI and Assurance
3.10-3.13 Table containing GRI content index p. 14; 21; 51-53; 56
Policy and current practice with regard to seeking external assurance p. 7
for the report
Governance structure and management systems
4.1-4.4 Governance structure p. 9; Annual Report and Form 20-F
Stakeholders
4.14-4.15 List and selection of stakeholder groups engaged by the organisation p. 6
(including topics)
Economic performance indicators
EC1-EC4 Economic performance p. 54; Annual Report and Form 20-F 2007
Environmental performance indicators
EN2 Percentage of materials used that are recycled input materials p. 39; 56
EN3-EN4 (In)direct energy consumption by primary source p. 43-47; 56
EN5 Energy saved due to conservation and efficiency improvements p. 43-47
EN6 Initiatives to provide energy-efficient or renewable energy based p. 44-47
products and services, and reductions in energy requirements as
a result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved p. 44-47
EN16 + EN18 Greenhouse gas emissions and initiatives to reduce these emissions p. 43-47
EN22 Total weight of waste by type and disposal method p. 47-48; 56
EN26- EN27 Products and services, including initiatives to mitigate environmental p. 39; 41
impacts and percentage of products sold that are reclaimed
EN28 Monetary value of significant fines and total number of non-monetary p. 48
sanctions for noncompliance with environmental laws and regulations.

 KPN Sustainability Report 2007 Accountability in relation to GRI

www.global-reports.com
Indicator GRI Reporting Guidelines Page in Sustainability Report
Social performance indicators: labour practices and decent work
LA1-LA2 Workforce information p. 25; 55
LA4 Percentage of employees covered by collective bargaining agreements p. 23
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and p. 26
number of work related fatalities by region
LA10- LA11 Training and education p. 23-24
LA13 Composition of governance bodies and breakdown of employees per p. 55
category according to gender, age group, minority group membership,
and other indicators of diversity
Social performance indicators: human rights
HR1-HR2 Agreements with and screening of suppliers and contractors p. 41
HR4 Total number of incidents of discrimination and actions taken p. 27
HR5 Operations identified in which the right to exercise freedom of association p. 23; 41
and collective bargaining may be at significant risk, and actions taken to
support these rights
Social performance indicators: society
SO1 Nature, scope, and effectiveness of any programmes and practices that assess p. 28-33
and manage the impacts of operations on communities
SO5 Public policy positions p. 35-36
SO7 Policy for preventing anti competitive behaviour p. 10-12
SO8 Significant fines and total number of non-monetary sanctions for non- p. 12
compliance with laws and regulations
Social performance indicators: product responsibility
PR1 Life-cycle stages in which health and safety impacts of products and services p. 38-39
are assessed for improvement, and percentage of significant products and
services categories subject to such procedures
PR2 Non compliance with regulations and voluntary codes concerning health and p. 26
safety impacts
PR3-PR5 Product information policy, including customer satisfaction p. 14-16
PR6-PR7 Codes of conduct related to marketing communications, including number of p. 16
incidents of non-compliance with regulations and voluntary codes

Some G-3 indicators do not apply to KPN as an ICT and telecommunications company. They are indicators for industrial processes, namely:
EN1; EN8 - 15; EN17; EN19 - 21; EN23 - 25.

KPN is not yet reporting on the following G-3 indicators: 3.9; 4.5 - 4.13; EC5 - 9; EN29 - 30; LA3; LA5 - 6; LA8 - 9; LA12; LA14; HR3; HR6 - 7;
SO2 - 4; SO6; PR8 - 9.

KPN Sustainability Report 2007 Accountability in relation to GRI 

 Key Financial Figures (Appendix to Section 2)

1. REVENUES
In millions of euro
2007 2006
Revenues 12,461 11,941
Other income 171 116
Total 12,632 12,057

2. OPERATING PROFIT
In millions of euro
2007 2006
Operating result 2,500 2,223

3. PROFIT BEFORE INCOME TAX
In millions of euro
2007 2006
Profit before taxes 1,941 1,710

4. PROFIT FOR THE YEAR
In millions of euro
2007 2006
Profit for the period 2,649 1,583

5. NET CASH FLOW
In millions of euro
2007 2006
Operating activities 3,890 4,071
Investing activities -3,154 -1,878
Financing activities -502 -2,024
Change in cash and cash equivalents 234 169
Free cash flow* 2,345 2,477

6. EQUITY
In millions of euro
2007 2006
Total assets 24,797 21,258
Group Equity 4,518 4,196
Net debt 10,953 9,177
Cash and cash equivalents 1,148 803
* Net cash flow provided by operating activities plus real estate proceeds minus capital expenditures

 KPN Sustainability Report 2007 Appendices

www.global-reports.com
 Workforce data (appendix to chapter 5)

The figures concern KPN Netherlands (NL Social Entity), companies in the Netherlands in which
KPN owns an interest (NL participating interest), and companies in other countries in which KPN
owns an interest (INT participating interest).

Employees at KPN (in FTEs and numbers)

NL NL INT
social participating participating
entity interests interests total NL total KPN
no. fte no. fte no. fte no. fte no. fte
2000 37,380
2001 30,647
2002 21,489
2003 19,542
2004 18,645
2005 17,595 16,701 4,386 3,214 7,305 6,683 21,981 19,915 29,286 26,598
2006 15,741 14,977 5,080 4,008 7,547 6,991 20,821 18,984 28,368 25,976
2007 14,698 13,986 4,632 3,682 8,500 7,832 19,330 17,668 27,829 25,499

Ages of KPN employees (in %)

NL Social NL participating INT participating
Entity interest interest
Age
16 – 24 3.5% 11.1% 12.1%
25 – 54 92.1% 76.1% 85.0%
55 – 65 4.4% 12.8% 2.9%

Workforce by gender and part-time work (Total 2007)

NL Social NL participating INT participating
Entity interest interest
Men 78.4% 46.6% 50.6%
Women 21.6% 53.4% 49.4%
Full-time 82.5% 38.9% 76.7%
Part-time 17.5% 61.1% 23.3%

KPN Sustainability Report 2007 Appendices 

 Key environmental figures of KPN Netherlands at 31-12-2007
Unit 2007 2006 2005
Use of materials (EN1, EN2)
Paper consumption (NL) tonnes 5,518 6,249 2,612
A4 per employee Number of incidents 5,498 5,802 4,999
Cables x 1,000 km 313.2 311.0 309.0
Re-use of
telecommunications equipment % 85% 85% 92%

Energy (EN3 – EN7)

Gas consumption **** m3 5,787,345* 8,276,599 6,685,006
Electricity GWh 733 721 696
Renewable electricity % 15.1% 1.4% 1.5%
Fuel for vehicle fleet x 1,000 litre 10,398 10,597 13,182
Diesel for generators x 1,000 litre 130 185 149

CO2 emissions *** Kilotons CO2 332* 404 418

Waste tons 6,170 6,110** 5,567
Re-use of waste % 47% 45% 42%
* excl. Retail
** adjusted for figures of disassembly projects
*** adjusted for changing fuel mix for electricity
**** adjusted because no further correction has been made for temperature days

Electricity in the Netherlands (in GWh)

2007 2006 2005
Non-renewable electricity
Offices 63 61 68
Technical buildings 527 561 556
Mobile network 23 79 55
Retail 9 9 7
Total non-renewable electricity 622 711 686
Total renewable electricity 111 10 10
Total electricity in the Netherlands 733 721 696

Fuel consumption of vehicle fleet in the Netherlands (× 1,000 litres)

2007 2006 2005
Leaded super 0 0 2
Unleaded super/normal 2,905 2,965 3,453
LPG 70 138 234
Diesel 7,423 7,494 9,494
Total fuel consumption 10,398 10,597 13,182

Fuel consumption of buildings and emergency power generators in the Netherlands

Unit 2007 2006 2005
Fuel consumption of buildings KPN NL
Gas consumption (offices + m3 5,787,345* 8,276,599 6,685,006
technical buildings)**
Oil consumption for emergency litres 114,000 185,000 149,000
power generators (offices + technical buildings)
Oil consumption for central heating litres 16,000
* excl. Retail
** adjusted because no further correction was made for temperature days

 KPN Sustainability Report 2007 Appendices

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Content and organisation
KPN N.V., Corporate Communications
KWA Business Consultants, Amersfoort

Text and editing

KPN N.V., Corporate Communications
KWA Business Consultants, Amersfoort
CitySavvy, Amsterdam
De TekstGroep, Delft

Translation
DBF Communicatie B.V., Alphen aan de Rijn

Design, production and website

Addison Corporate Marketing, London

The KPN Sustainability Report is published in Dutch and English.

The Dutch version will prevail in the event of interpretation differences.
 Koninklijke KPN N.V.
Maanplein 55
2516 CK Den Haag
The Netherlands

P.O. Box 30000

2500 GA THE HAGUE
The Netherlands
The Netherlands
T: +31 (0)70 343 43 43

www.kpn.com

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