Presentation given by Hans Dekker - Reggefiber during the INCA and NextGen 'Dutch Light' visit to the Netherlands - 7 and 8 March 2012

1. Reggefiber
General Overview
Visiting Fujitsu Telecom, CityFibre Holdings, INCA and
KCOM
Jan Davids
Directeur Corporate & Business Development 1 | 21

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3. Reggefiber’s headoffice marks start of Fiber roll out in NL
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4. Company Overview
• Reggefiber is the leading provider of Fiber-to-the-Home (“FttH”) in the
Netherlands and a Joint Venture between KPN and Reggeborgh. Its success
based rollout strategy has resulted in an uptake of around 60% in (nearly)
completed projects
• Reggefiber has successfully developed and introduced an open access
business model with a focus on delivering a passive (dark fiber) FttH
infrastructure to active operators. Reggefiber builds, owns and operates the
infrastructure
• Reggefiber is well positioned to benefit from the high broadband penetration in
the Netherlands and the increasing demand for (symmetrical) bandwidth, the
market trends towards single access, the company’s extensive FttH
experience, strong shareholders and the regulatory certainty
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5. Company Overview
Reggefiber: building and operating passive FttH networks in the Netherlands
• Reggefiber builds, owns and operates passive (dark fiber) FttH networks
• Reggefiber FttH Projects in more than 150 cities in the Netherlands
• 951,000 Homes Passed with 277,000 Homes Activated
per Q4 2011
• Reggefiber’s ambition is to realize a large scale success-based rollout
• Passive infrastructure delivered to active operators in an open access model, enabling:
• Active operators to deliver active networks to service providers as a wholesale service
• Service providers to deliver services (RTV / Internet / telephone) to consumers over active
networks
• Current active operators (customers) include Reggefiber Wholesale (part of Reggefiber), KPN
Wholesale & Operations, BBNed (Tele 2), Edutel and Solcon
• Tariffs and passive network access regulated by OPTA (published December 2008) and NMa
remedies
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6. Company Overview
About the Reggefiber joint venture and its shareholders
• KPN is the Dutch incumbent and provides high-quality telephone, internet and television services and
products and is an all-round provider of ICT services.
• KPN is market leader in the copper fixed line with more than 3.6 million customers
• KPN is market leader in broadband internet access with 2.5 million customers (Q3 ‘11)
• KPN is a successful challenger in TV with 1.3 million customers (Q3 ‘11)
• KPN is financially strong with an EBITDA of EUR 5.5 bn and revenues of EUR 13.4 bn (over ‘10)
• Reggeborgh is the private investment company of the Wessels family and is active in construction,
energy, real estate, and building and operating (fiber optical) communication networks
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7. Company Overview
Strategic rationale cooperation Reggefiber and KPN
The cooperation between Reggefiber and KPN is mutually exclusive in respect to the construction and
operation of passive FttH networks in the Netherlands
Strategic rationale for Reggefiber:
• Reggefiber has been successful in acquiring customers in competition with cable and KPN;
cooperation with KPN will further increase the penetration on Reggefiber’s network and lowers the
risks of rolling out
• Offers direct access to large installed customer base for migration to FttH
• KPN is a financially strong and committed co-shareholder
• Provides extensive experience and knowledge of the telecom sector
Strategic rationale for KPN:
• Taking part in Reggefiber is necessary in light of the trend towards single access and maintaining a
substantial share of the consumer market
• Reggefiber’s expertise and experience in building FttH networks and associated demand aggregation
in combination with successful existing projects provide KPN with a jumpstart in FttH
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8. Company Overview
Corporate Structure
Supervisory Board:
• Herman Hazewinkel – Chairman
(former CEO Volker Wessels Stevin)
• Dik Wessels (founder Reggeborgh)
• Eelco Blok (chairman executive board KPN)
Management Board
• Bert Nijboer – CEO
• Jan van Rooijen – CFO
• Jordi Nieuwenhuis – Director
• Jan Davids – Director Corporate Development
• Arian Lodder – Director Construction and
Operations
Entities and roles
• NEM subsidiaries – network owners
• Reggefiber ttH B.V. – project organization
• Reggefiber Operator B.V. – passive operator
• Reggefiber Wholesale B.V. – active operator (*)
(*) November 8, 2011 Reggefiber has reached an agreement with KPN to sell its non-
passive FttH activities, including Reggefiber Wholesale B.V. to KPN (subject to NMa
approval) 8 | 21

9. Business model Passive FttH network open
to all active operators and
their service providers
Business model – parties involved and value chain
Consumer broadband
CONSUMERS subscription packages
EUR 40 – 110 (triple play)
SP SP KPN SP SP SP
Service Providers
• Deliver services to consumers Wholesale
• Communicate to consumers agreements
Wholesale broadband access
EUR 35 – 42 (triple play)
Reggefiber 3rd party Active
Active Operators KPN W&O
Wholesale BV Operators
• Buy in capacity on Reggefiber’s
passive fiber network
• Deliver wholesale fiber services ODF Agreement
to service providers ODF Access
EUR 12 – 17.50 [*]
Passive Operator Reggefiber
Operator BV
• Builds, owns and operates the
passive fiber network
• Delivers open access to active Management Agreement Indicative monthly price
operators
ranges per active
NEMs connection
[*] excludes one-off fees, line rentals etc.
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10. Business model
Business model – parties involved and value chain
Service providers
• Deliver services over fiber to consumers
• Communicate to consumers on services over fiber
Active operators
• Buy in capacity from Reggefiber’s passive fiber network
• Deliver wholesale fiber services to service providers
Reggefiber (passive operator)
• Builder, owner and operator of the passive fiber network
• Delivers open access to active operators, including KPN
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11. Business model – network architecture
• As many homes as possible will be connected to a Fiber Termination Unit (FTU) in the metering
cupboard inside the home
• About 2.500 homes are connected to an Area-POP (AP) with two fibers. Here ODF access can be
obtained
• Max 8 AP’s are connected to a City PoP (CP) using a ring structure (city ring)
Network
Termina-
Reggefiber’s city ring tion Unit
FTU
Network
Active AP AP AP 2 fibers
Operator
AP
Backbone Equipment AP
CP Active 2.500 homes
Active Operator
Equipment Operator
Active
Operator AP
AP
AP
= Reggefiber’s passive network
= Equipment Active Operator 11 | 21

12. Business model – Demand based roll-out
Marketing
• Key for a successful rollout is creating momentum in local communities, among others through
‘local ambassadors’ (churches, sports clubs, neighbourhood councils etc.)
• Marketing to consumers:
• During roll-out the fibre network is marketed by Reggefiber
• Consumer services typically marketed by service providers
Information session
Edutel June 17th 2008
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13. Business model – Demand based roll-out
• With a target start penetration of 30% of the homes passed Reggefiber ensures a minimum
start penetration before starting the construction
• This is a sales formula formerly used in the Blue Projects in Ringfence 1 (excluding project
Deventer) and has been refreshed and sharpened by our new marketing communication
campaign
“Eindelijk Glasvezel”
(“At last FttH”)
• Also new ISP’s like Vodafone and XS4All participate in the demand based roll out
• Reggefiber has established a separate Sales & Marketing organization from the Construction
Organization since the end of 2010. Main role is creating awareness on FttH, coordinating the
demand based roll out process with ISP’s and consumers and thereby supporting the sales of
all ISP’s
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15. Business model – Roll-out
• Reggefiber’s ambition is to realize a large
scale success-based rollout:
• Realized in 2011: 293,000
• Planned in 2012: 400.000
• Planned in 2013: 500.000
• Existing FttH Projects:
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16. Business model – Innovations
Prefab PoP
Ducts
Universal FTU
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17. The market – Reggefiber
The Reggefiber experience: initial success for FttH in competitive Dutch broadband
market
• In market with decreasing prices per Mb/s delivered, evidence suggests that consumers do not trade down
to reduce costs but rather upgrade capacity – resulting in stable prices with increasing bandwidths
• Symmetrical connections arguably a different market than ‘regular’ broadband; once obtained consumers
not willing to trade back to asymmetrical lines with same download capacity
• Reggefiber experience from existing projects:
• Willingness among consumers to pay extra for (triple play) fiber, with uptake rates as high as 60 –
70%
• Churn very low (in conformity with evidence abroad): ca.4% on an annual basis for the service
providers currently active on Reggefiber networks
• An 60% of new subscriptions are consumers upgrading from ADSL lines, with and 40% coming from
cable
• Over 75% of consumers on Reggefiber operated FttH network have triple play
• FttH customers show much higher bandwidth usage than typical ADSL user
• FttH networks net uploaders to the Internet (caused a.o. by p2p applications)
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18. The market: Reggefiber footprint
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19. The Market – Reggefiber’s market share
Homes Passed Q4 2011
Reggefiber
SURFnet
CIF
OBR
951.000 Other
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20. Concluding remarks
• Reggefiber has proven it is able to roll out and operate large numbers of
Homes efficiently
• Reggefiber’s shareholders are fully committed to FttH. KPN has fully shown
this by acquiring Reggefiber’s non-passive activities and Reggeborgh’s
Service Providers
• New promising Service Providers are entering the FttH-market
• Looking at the large increase in HA in 2011, there definitely is a market for
FttH(-services) and Service Providers are capable of providing attractive
Services to end-users
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