1. EXECUTIVE SUMMARY
The report aims to guide potential investors and shareholders whether to invest in KPN or not. The detail of this report contains the financial situation of KPN. The methodologies such as financial statement analysis, compared with France Telecom, and ratio analyzing have been used in order to get to an logical accounting analysis. KPN's Annual Report follows a clear structure and is written according to the IFRS standards. The format of the report is similar to its peer group company, France Telecom. The annual report of KPN is more geared towards the investor that is looking to find the exact information with the least amount of effort
Our analysis shows us gradual growth in current years and a possible profitable future for KPN due to the acquisition policy of other companies, such as Getronics, proves the company's aim for a higher consumer base both locally and internationally. There was a decrease in operational profit margins; it has been offset in an increase in the utilization of assets.
However, there are points of concern due to KPN's change in financial strategy namely, a shift in gearing. As KPN tends to rely more on borrowings rather than issuing shares, the higher gearing level on one hand, could result in more return to the shareholder. On the other hand, this can also be regarded as a higher risk to the company's investor or shareholder. Moreover, KPN still has to carefully focus on short term working capital and cash budgeting. That can be seen in the liquidity analysis which represents the possible lack of short-term cash flow within the company, due to the current assets not quite covering the current liabilities.
KPN has a very high gearing, compared with its peer, which can be considered as a risky position. If KPN will continue to perform well in the future, the high gearing level will have a positive financial effect for their shareholders. On the other hand, this strategy can work out negatively when KPN performs worse in the future. When considering the stock price movement trend, even in time of recession, KPN's price movement achieved the higher position within the industry trend. This clue provides reassurance that both the market and investor have confidence in KPN.
"The 2008 financial numbers were received positive by analysts. The results were in line with SnS, Peter Cam, and Morgan Stanley. Analysts were very satisfied with the forecasts which KPN gave for 2009. Morgan Stanley mentioned that KPN was one of the best shares in the telecom sectors. According to Morgan Stanley, the share offers an attractive return on investments (KPN Satisfied Over 2008)." As a result we consider KPN has a good performance company and recommend investors to invest in.
2. INTRODUCTION
This case aims to provide an analysis of the Koninklijke KPN N.V. (KPN) business and discusses its income statement, balance sheet, and statement of cash flows. This case also aims to provide a potential investor with an analysis of KPN. We want to test if KPN is financially healthy and what the stock price performances are. When deciding to make an investment, an analysis of the provided annual financial report must be undertaken. The investor and shareholders must be certain that the information given in this report is a true and fair view so that once the analysis has been done; the investor will be able to make a confident decision. The case will also take into account the company's accounting policies and the relevance of information.
The following report has been divided into several chapters. First, in chapter three we will discuss KPN's history and the underlying financial information that give us an overview of the financial situation of the company. Then, chapter four will be a review of the various data given by KPN that should in the end, prove us if KPN is a financially healthy company. Then we will give a brief summary and conclusion in chapter five. Our methodology also includes a comparison with a peer in the telecom industry.
3. COMPANY OVERVIEW
3.1 Brief description
KPN is the leading telecom company in the Netherlands and is growing internationally. The company dates back to 1854 and separated from being a state owned business to an individual multimedia corporation distributing mobile, voice, internet, and television services in 1989. Since 1994, KPN has been listed on the Dutch stock market. The company reached a significant downturn in 2001 with a EUR23 billion debt. By hiring Ad Scheepbouwer as CEO, KPN wanted to change its future. Customer service research and the motivational 'Back to Growth' strategies are the foundations for his reconstruction of KPN by 2010 (KPN History). The company stays up to date with the consumer's needs thanks to customer service and research groups.
3.2 Products and Markets
Directing its attention to customer service, KPN's research groups (KIC and BIC) and its alliance with TNO (a research company) helps the company stay up to date with the consumer's needs (Duin, 2006).
The mission statement of KPN is to provide high quality and different services for their customers by offering information and entertainment via for example phones, computers and television. The portfolio of KPN includes a large variety of packaged brands to suit different groups of people but due to a loss in the wireless department in 2008 (see table one), KPN decided to simplify its packaging for 2009. The wireless service reacted positively with the customer base up by 4% from 2007.
Table one, financial review of products (KPN website)
(In millions of EUR unless indicated otherwise)
2008
2007
- Voice wireline
823
1,037
- Wireless services
1,773
1,776
- Internet wireline
1,010
917
- Other (incl. intercompany revenues)
423
403
Revenues and other income
4,029
4,133
Operating expenses
3,551
3,673
- of which: depreciation, amortization and impairments
275
247
EBITDA
753
707
EBITDA margin
18.7%
17.1%
Below (see figure one) the graph demonstrates the variety of services used by the customers for the whole industry. As we can see, the use of mobile cellular phones increased progressively up until 2009.
Figure one, services used by customers in the industry (International Telecommunications Union p. 1)
KPN must aim to reach high revenues against though competition. With Vodafone leading the wireless sales, Imtech's competition within the ICT services, France Telecom's merge with Orange, T-Mobile and in particular Deutsch Telekom's success in Germany, KPN must have a strong organizational structure (BusinessWeek).
'Back to growth' is directed towards the reconstruction of KPN by 2010 with a revenue outlook of 15 Billion. Firstly, a new access network announced in 2005 will be in its last phase of production; secondly, KPN has put its foot in both America and Asia by merging with Ibasis and thirdly, the company aims to reduce operational costs which are already in effect (see table one).
KPN mainly operates through five segments; Consumer, Business, Wholesale and operations, E-plus, Getronics and Base. At the end of 2008, KPN has over 38 million customers in the Netherlands, Germany and Belgium. The amount of Full Time Equivalent (FTE) is 25,000 as well as 11,000 from Getronics. KPN had annual revenue of Euro. 14.6 billion in 2008 and a net profit of Euro. 2.6 billion (KPN - Facts).
KPN International makes up to 41% of the total revenue with its focus on Germany and Belgium through E-PLUS and BASE. The table and figure below and figure two) represents KPN's generated revenue (see table two) which is divided over the different countries where they operate (see figure two, KPN - 2008)
Table two, financial results of KPN
(in million Euro)
2008
2007
Revenues
14.6
12.6
EBITDA
5.05
4.9
Dividend per share
0.6
0.54
Profit per share
0.77
1.42
Figure two, total revenue for KPN nationally and internationally
4. DATA, INFORMATION AND ANALYSIS
4.1 Financial Statement Overview
The format of KPN and France Telecom's 2008 Annual Reports are very similar, as both companies use the International Financial Reporting Standards (IFRS). The International Financial Reporting Standards (IFRS) which is created by the International Accounting Standards Board (IASB) to allow high quality, and global standards for publicly accountable entities (Press release, KPN 'Invoering IFRS'). The annual reports of KPN are clear to read. When looking at KPN's 2008 annual report, KPN follows the IFRS standards. The annual reports are very direct and to the point. In KPN's Annual Report there are some non-IFRS figures like, EBITDA and Free Cash Flow. This is done to be clear for investors in countries where other accounting standards are used.
When looking at both KPN's and France Telecom's 2008 Annual Report, the largest difference a reader may see is the "user friendliness." While KPN follows the IFRS standards, France Telecom goes above and beyond what is generally required by giving more details to the reader of their report. Not only are the financial statements expanded but there are easy to read graphs, charts, and descriptions of products, markets, and items on the financial statements. Whereas KPN's Annual Report is more geared to the investor that is looking to find the exact information needed with the least amount of effort. The Annual Report is very direct and to the point, not adding all the extras that are seen on the France Telecom report. Both Annual Reports are comparable, but are also geared towards slightly different audiences.
4.2 Accounting policy and Financial Statement
The corporate financial statements of KPN, included in the Annual Report, are presented in abbreviated format and are prepared in accordance with Dutch guidelines (section 402, Book 2 of the Dutch Civil Code) (KPN - 2008 p. 80). The auditor's report in the Annual Report of KPN has confirmed that the financial position as presented is in accordance with IFRS standards. KPN and France Telecom both use the same IFRS standards, thus there is no significant difference on accounting policy of both companies.
In KPN's Annual Report there are some non-IFRS figures; EBITDA and Free Cash Flow. KPN defines EBITDA as operating profit plus depreciation, amortization and impairments. Free cash flow is defined as Net cash flow provided by operating activities minus investments in property, plant and equipment and software plus proceeds from real estate plus tax recapture at E-plus (KPN - 2008 p. 6).
Both KPN and France Telecom have two accounts in their statements that are very significant; goodwill plus amortization and property, plant, and equipment plus depreciation. These two accounts will be discussed due to the valuation issues attached with them.
According to Blommaert & Blommaert (2000), goodwill is the cost of acquisition over the fair value of the acquired company. Goodwill can be found in the IFRS standards under IAS 22 (International Accounting Standards Board). The Annual Report of KPN shows that goodwill is tested for impairment annually (KPN - 2008 p. 100). Goodwill is impaired if the recoverable amount of the cash generating unit, to which it is allocated, is lower than the book value of the cash generating unit concerned including goodwill. This works in accordance to the IAS 22 standards. France Telecom's 2008 Annual Report indicates that the amount of goodwill is reassessed annually; therefore this is in line with the method used by KPN and within IFRS guidelines (France Telecom p. 14).
Property, plant and equipment are recorded on the balance sheet and it is a result of cost (acquisition value) less accumulated depreciation (IFRS standards). Depreciation for the year is based on the depreciation terms, which are determined for each individual asset. Blommaert & Blommaert states (2000) that depreciation terms are based on the useful life of each individual asset, which is the period that the asset is expected to be used by the company (International Accounting Standards Board). In KPN's 2008 Annual Report it states that these guidelines are used properly by the company, since renewed depreciation terms results in accelerated depreciation (KPN - 2008 p. 94). In the France Telecom Annual Report it indicates that the estimated useful lives are reviewed annually and adjusted if current estimated useful lives are different from previous estimates.
In addition to the two critical accounts stated above, several other differences were found within the company including; deferred taxes, tax provisions, and provision for retirement benefit. These are discussed in the Annual Report for KPN. These accounts are also prepared within the IFRS standards that KPN follows (KPN - 2008 p. 81).
4.3 Analysis Financial Statements
In 2007, KPN's revenue was € 12,632 billion which increased (15.60%) to €14,602 billion in 2008 (KPN Annual report, 2008). This raise in revenue was mainly caused by the acquisition of Getronics; which itself grew from EUR 488 Million in 2007 to EUR 1,933 Million in 2008. Furthermore Mobile International grew (especially by E-plus and BASE) in total amount of EUR 419 Million, an 11% growth from 2007.
Table three, KPN's Revenues by Section (KPN, Annual report 2008) [1]
(In millions of EUR)
2008
2007
Δ
KPN Group
14,602
12,632
16%
- Consumer
4,029
4,133
-2.5%
- Business
3,255
3,293
-1.2%
- Getronics
1,933
488
> 100%
- Wholesale & Operations
3,904
3,841
1.6%
- Other (incl. intercompany revenues)
-2,621
-2,770
-5.4%
The Netherlands
10,500
8,985
17%
- E-Plus
3,218
2,963
8.6%
- BASE
647
613
5.5%
- Mobile Wholesale NL
348
344
1.2%
- Other (incl. intercompany revenues)
183
57
> 100%
Mobile International
4,396
3,977
11%
The operating profit margin ratio for KPN went down from 19.79 % in 2007 to 17.79% in 2008 (see table four). One of the main reasons is the increase employee benefits and other operating expenses as can be seen in the income statement (see appendix two). The average number of Full Time Equivalents (FTE) increased from 29,344 in 2007 to 40,116 in 2008 (KPN - 2008 p. 6). This is caused by the acquisition of Getronics in 2007 which created an increase in employees' benefits for these new employees. KPN has been initiated in a personal redundancy obligation which announced to increase the total FTEs reduction to 10,000 by 2010.This personal redundancy obligation is to reduce future overhead expenses, restructuring personal redundancy to EUR 238 Million in 2008 (KPN - 2008 p. 117). Finally, this restructuring has led to an increase in other operational expenses accounts.
Table four, KPN's Performance Ratio (see also appendix one)
Performance Ratio
KPN'08
KPN'07
Average KPN'08
France,08
France'07
Average France'08
1. ROCE (%)
14.31%
13.72%
14.28%
15.01%
14.75%
14.50%
2. Operational Profit Margin (%)
17.79%
19.79%
-
19.07%
20.22%
-
3. Assets Utilization Ratio (Times)
0.80
0.69
0.80%
0.79
0.73
0.76%
When compared to its competitor, France Telecom (see appendix three), both have experienced a decrease in operational profit margin, this because of the increase in costs. This has significantly affected market saturation within the local markets. In contrast, France Telecom seemed to have a greater gap of 19.07% in their operational profit margin compared to KPN's merely 17.79%.
The return on the long-term capital employed ratio (ROCE), (ROCE ratio, See table 2) measures the contribution of the return to suppliers of long-term finance before any deductions of interests, taxes, and dividends (Koetzier et al., 2004) (see appendix one). The ratio shows that France Telecom has a higher ROCE ratio, 15.01%; compared with 14.31% of KPN in 2008. These results can also been seen in the average, where KPN's ROCE is still slightly lower than the 14.50% of France Telecom. However KPN has improved its ROCE compared to 2007.
KPN can also work to improve how the assets are utilized within the company. The Assets Utilization Ratio increased from 0.69 times in 2007 to 0.80 times in 2008, which is almost the same as France Telecom. This indicated that KPN successfully compensated its lower profit margin by using their assets more efficient which increased their operational performance. As a result, KPN's operational profits in 2008 increased by EUR 97 million or about 3.88% compared to the 2007 fiscal year.
Though when looking at KPN's profit for the year it dramatically dropped from EUR 2,649 million in 2007 to 1,337 in 2008 , a huge 49% decreasing from the previous year. This decrease was due to KPN being moved into a tax-paying position as all tax-losses carried forward (from E-plus) were utilized against positive taxable income (KPN - 2008 p. 95). However, when considering the 2005 and 2006 fiscal years, yearly profits were EUR 1,454 million and 1,583 million respectively; this shows a stable growth trend of profit since 2005 (KPN - 2008 p. 123). Due to a benefit from Deferred Tax Assets in 2007 the year-end profit jumped EUR 1,066 million or 67.34% compared to the previous fiscal year. To avoid bias from a one time or exceptional item on the analysis of performance, profit before income taxes should be applied.
A conclusion of KPN's performance shows there has been an upward trend on both the revenue and operational profits. Though, there was a decrease in operational profit margin it had been offset by an increase in assets utilization. When comparing with its peer, France Telecom, KPN's ratios showed no significant difference and KPN performance harmonized with a competitor trend. The performance of KPN, thus, increases gradually. Comments Catherine Rau: missing Return On Sales (ROS), Return On Equity (ROE) and Return On Assets (ROA
Liquidity
Current Ratio and Acid Test Ratio have been applied to express KPN's liquidity position for the fiscal years 2007 and 2008. Table five shows us a comparison between KPN's and France Telecom's Liquidity Ratio's.
Table five, Liquidity Ratio
Liquidity
Ratio
(Times)
KPN'08
KPN'07
France Telecom'08
France Telecom'07
KPN Average'08
France Telecom
Average'08
1.Current Ratio
0.65
0.62
0.58
0.54
0.63
0.56
2. Acid Test Ratio
0.21
0.18
0.18
0.14
0.19
0.16
These two ratios show the company's ability to pay its short term financial obligations. The current ratio represents if the current assets can cover the current liabilities. The table shows that KPN's current ratio in 2008 was 0.65 times, a small increase from 0.62 times in 2007. On average, dependant on the organisation, a healthy current ratio number shows a number above 1. KPN can face some short-term liquidity problems in the future as their current ratio number is under this 1, which means that the current assets not quite cover the current liabilities. As you can see, KPN's current ratio is still higher than France Telecom's, whose current ratio was only 0.58 in 2008. The acid test ratio has been calculated for a better test of liquidity. To be relying on the prudence convention, cash and cash equivalents are applied as a numerator. These figures appeared to be very low; however, KPN's figure still is higher than France Telecom's.
Financial Gearing
The financial gearing shows how KPN is financed in terms of borrowing and/or by the shareholders, which is called equity. A level of gearing is an important factor in evaluating risk as a business has borrowed money; once a business rented money, it made a commitment to pay interest periodically. No matter what the situation of incoming revenues is. Nevertheless, there is a dilemma between high risk and high return, as gearing can be used to increase the returns to the owners. This comes because interest expenses on borrowing are tax-deductible, the business has used the borrowing capital instead of receiving money by issuing stocks. This will eventually lead to having higher earnings per share because of the lower amount of shares.
Table six, KPN's Cash Movement in Share Repurchase and Borrowing (in millions of euro)
Movement Year
2008
2007
2006
2005
Share Repurchase
-1,103
-1,569
-1,615
-1,697
Proceed from borrowing
1,771
4,321
2,932
1,350
As shown from the cash movement in the table above (see table six), KPN continues to repurchase its shares and has relied more on borrowing since 2006 (KPN - 2007 p. 126). This shows that KPN is confident about their financial situation. This is also seen as a benefit to its shareholders by receiving higher earnings per share. As a result, shown on the balance sheet, the share capital and share premium has decreased slightly from year to year (because KPN repurchased their shares), and the figures of borrowings have been increasing gradually since 2006.
Table 7 shows a contradicted movement of share capital and borrowing in the balance sheet. These were presumably representative of a change in financing strategy or a changing in financial gearing.
Table 7, KPN's Trend of Share Capital and Borrowing (in million of euro)
Account Year
2008
2007
2006
Share Capital
411
443
463
Share Premium
9,650
11,120
12,100
Borrowing
10,876
9,454
8,426
(KPN - 2008, page 76-77) (KPN - 2007, page 124-125)
During 2008, KPN repurchased 98.2 million shares at an average price of EUR 11.20 for a total of EUR 1.1 billion. The number of outstanding shares as of December 31, 2008 amounting to 1,714.362,792; represents a 31.3% reduction of outstanding shares since the start of the program in March 2004 (KPN - 2008 p. 8).
Table eight, Financial Gearing Ratio (in million of euro)
Gearing Ratio
KPN'08
KPN'07
France Telecom'08
France Telecom'07
KPN Average'08
France Telecom
Average'08
1. Gearing Ratio (%)
79.09
75.20
54.42
52.84
77.14
53.60
2. Net debt to EBITDA(Times)
3.98
4.14
3.50
3.65
4.00
3.57
The gearing ratio reflects a shift in the financing of the company due to an increase in borrowings rather than issuing shares. KPN's gearing ratio increased to 79.09% in 2008, an almost 4% increase from 2007. This is a point of concern when comparing the ratio to France Telecom's, 24.67% lower than KPN. This may be due to KPN's higher risk taking.
In dealing with the financial risk, KPN used a non IFRS figure; EBITDA as a key indicator to manage its risk. The explanation of the ratio is how many times a company's debts will be covered by companies EBITDA. However the definition of KPN's net debt contains only borrowing in non-current asset account which is not covering other type of liabilities regarding as a debt. The prudence convention, thus applies to this analysis; the net debt to EBITDA defined as total liability to operating profit plus depreciation, amortization and impairment.
As a result, exhibited on table eight, KPN's net debt to EBITDA in 2008 was 3.98 times, significantly higher than 3.50 times that of France Telecom in the same fiscal year. In short, it can be stated that KPN has aggressively high gearing and, therefore, can be considered as it is moving into a more risky position. To be fair, if KPN will be performing well, it will contribute more to its shareholders with this high gearing level. On the other hand the opposite could hold true if KPN performs otherwise.
4.4 Stock Price Performance
The most commonly used ratio's to estimate the returns on the investments for investors, according to Horngren et al. (2007) are: dividend payout, the dividend yield, earnings per share and the Price to Earnings ratio (P/E). These ratios help investors determine whether they should invest in KPN, to maximize their returns.
We have calculated these ratio's for KPN and France Telecom, see table 9, and these calculations allow us to compare the performance of both companies as well as eliminating the problem of scale between the two. For a good comparison, we calculated the ratios for the 2007 and 2008 fiscal years. This allows a potential investor to review the performance of the companies over the past two years; it will also provide a better understanding when comparing both companies.
Table 9, Investor Ratio's
KPN 2008
KPN 2007
France Telecom 2008
France Telecom 2007
Earnings Per Share
0.77
1.42
1.56
2.42
Dividends Per Share
0.60
0.54
1.40
1.30
Dividend Payout Ratio
76%
38%
110%
45%
P/E Ratio
14.83
8.45
10.11
-
To begin with the earnings per share of KPN in 2008 were reduced from 1.42 p in 2007 to 0.77 p. The ratio in 2007 may contain bias figures due to the earning figures that have been affected by an increasing income tax for the 2007 year. As previously mentioned, the earnings of 2007 contain the exceptional item, deferred tax income which may lead an investor to a wrong conclusion.
Looking at the dividend payout ratio, it is clear that in 2008 KPN paid a higher amount of dividends compared to 2007. KPN paid out more dividends in 2008 than in 2007, yet their profit for year was lower in 2008. France Telecom, whose dividend payout ratio was 110% in 2008, paid more dividends then their net profit over the year. Thus action is considered very imprudent by the company. France Telecom needed to take money from their retained reserves to pay their shareholders. This could become a problem for France Telecom in the foreseeable future if they continue this dividend paying trend as it could lead to problems paying their debts. Both companies should rely on their financial discipline.
"The 2008 financial numbers was received positive by analysts. The results were in line with SnS, Peter Cam, and Morgan Stanley. Analysts were very satisfied with the forecasts which KPN gave for 2009. Morgan Stanley mentioned that KPN was one of the best shares in the telecom sectors. According to Morgan Stanley the share offers attractive return on investments (KPN Satisfied Over 2008)."
Figure 3, Stock Price Movement 2005-2008 (KPN - 2008 p. 7)
KPN's P/E ratio's increase from 8.45 in 2007 to 14.83 in 2008(a 6.4 times change), would usually represent that the capital value of the share is 14.8 times higher than the level of earnings. Though bear in mind that there is an effect on the value of the shares from the exceptional item of the differed tax as mentioned earlier. However, when looking at the stock price movement, see figure 2, one can see that KPN's stock price performance is better within the industry compared to its competitors. This ratio also shows that it will take 14.8 years for the initial investment to be paid back as long as the earnings of KPN remain consistent. France Telecom's P/E ratio in 2008 was 10.11, which is about 4 years shorter than its competitor, KPN. The above price movement compared to the industry, shows that there is a confidence in KPN by its investors. However, investing in KPN could take a longer payback period than investing in France Telecom.
5. KPN IN THE NEWS
Why a tax credit in 2007 (news articles)?
How did the economy impact KPN (news articles)?
What did some of the press release say (news articles)?
6. Conclusion
Although KPN's profit for the year 2008 dramatically dropped with a huge 49% decrease from the previous year, KPN shows an upward trend on the revenue and operational profits. When comparing with France Telecom, KPN's ratios showed no significant difference and KPN performance harmonized with a competitor trend. Together when considering stock performance, KPN can maintain its return to shareholders and adhere to its policy of distributing its surplus of earning to those shareholders.
When evaluating the financial statement analysis and the ratio's we have calculated, compared with France Telecom, we can conclude that KPN performed well and its revenue is growing gradually over the past two years. The future of KPN may also benefit from its strategic decisions made, for example customer service, 'back to growth' and the purchase of Getronics. Those strategic decisions will help increase KPN's revenue by expanding its customers in local- and international markets.
However, there are still some points investors should put them in to consideration as KPN shifted its financial strategy to rely on borrowings rather than issuing equities. This could be considered as a smart moving strategy regarding the low cost of borrowing context but also could be regarded as a higher risk for the company and its investors. In addition, the current ratio tells us that KPN might face some problems in the future regarding their short term debts. Not only concerning of only quantitative numbers of debts, but also the quality of debts should be carefully monitored.
7. LITERATURE
Blommaert & Blommaert (2000), Bedrijfseconomische analyses, Bedrijfseconomie vanuit management persepctief, Stenfert Kroese, 4th edition
BusinessWeek. "Royal KPN NV." October 2009 <http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ric=KPN.AS>.
Duin, Patrick van der, 2006, Qualitative Futures Research for Innovation. Delft: Eburon Academic Publishers
France Telecom. France Telecom 2008 Annual Report. <http://www.orange.com/media/doc-finance/en/annual-reports/att00013448/annual-report2008_en.pdf>.
Horngren et al. (2007), Management and Cost Accounting, Pearson Education Limited, 4th edition
International Accounting Standards Board. "IFRS." International Accounting Standards Board. <http://www.iasb.org/IFRSs/IFRS.htm>.
"Who We Are and What We Do." July 2009. International Accounting Standards Board. 20 October 2009 <http://www.iasb.org/NR/rdonlyres/F9EC8205-E883-4A53-9972 AD95BD28E0B5/0/WhoWeAre13July2009.pdf>.
International Telecommunications Union. "International and Communication Technology Statistics." 26 October 2009 <http://www.itu.int/ITU-D/ict/material/Telecom09_flyer.pdf>.
Koetzier et al. (2004), Basisboek Bedrijfseconomie, Wolters-Noordhoff Groningen, 7th edition
KPN - 2007. "2007 Annual Report." Jaarverslag en Form 20F -2007. <http://www.kpn.com/corporate/nl-1/bedrijfsprofiel-2/Jaarverslag.htm>.
KPN - 2008. "Back To Growth, Annual Report 2008." 2009. 2008 Annual Report. <http://www.kpn.com/corporate/nl-1/bedrijfsprofiel-2/Jaarverslag.htm>.
KPN - Facts. 2009. 5 November 2009 <http://www.kpn.com/corporate/en/Company-profile-1/company-1/Facts.htm>.
KPN History. History. <http://www.kpn.com/corporate/en/Company-profile-1/company-1/History.htm>.
KPN. "KPN Annual Report 2008 - Financial Review." 2008. 12 10 2009
<http://www.kpn.com/reporting08/report08/kpn_group/financial_review.html>.
KPN Satisfied Over 2008. 27 January 2009. 5 November 2009 <www.beursgorilla.nl>.
APPENDIX ONE, RATIO FORMULA'S
Acid Test/Quick Ratio
Cash and Cash Equivalents
Current Liabilties
Asset Utilization Ratio (AUR)
Sales Revenue
Total Assets − Current Liabilities
Current Ratio
Current Assets
Current Liabilities
Dividend Payout (Ã-100)
Announced Dividend
Profit for the Year
Dividends per Share
Total Dividend Available
Number of Shares
Earnings per Share
Profit for the Year
Number of Ordinary Shares
Gearing (Ã-100)
Non − Current Liabilities
Assets − Current Liabilities
Operational Profit Margin (Ã-100)
Operational Profit
Sales Revenue
Price per Earnings (P/E)
Market Value per Share
Earnings per Share
Return on Capital Employed (ROCE)
Profit before Interest & Tax
Total Assets - Current Liabilities
APPENDIX TWO, FINANCIAL OVERVIEW KPN
KPN's Consolidated Income Statement
KPN's Consolidated Balance Sheet
KPN's Consolidated Cash Flow Statement
APPENDIX THREE, FINANCIAL OVERVIEW FRANCE TELECOM
France Telecom's Consolidated Income Statement
France Telecom's Consolidated Balance Sheet
France Telecom's Consolidated Cash Flow Statement
