Message from the CEO, Joost Farwerck 

“We have delivered on the main ambitions of our Accelerate to Grow strategy launched end-2020. Our top line has returned to sustainable growth across all segments and the fiber roll out has progressed according to plan, further accelerated by our JV Glaspoort. I am proud of our people and grateful for their commitment to realize these ambitions. In the coming years, we will finish what we started and realize a fiber footprint of about 80% of the Netherlands by end-2026. 

With our Connect, Activate & Grow strategy we go all out to connect everyone in the Netherlands to a sustainable future and create long-term value for all stakeholders. The initiatives to be a Responsible, Inclusive and Sustainable telco are fully embedded in our strategy and operating model. We have broadened the scope of our ESG approach. Our strategy leads to a telco that is delivering revenue growth, EBITDA growth, Free Cash Flow growth and an expanding return on capital.

We are aiming to maintain service revenue growth at a healthy level in the coming years. This will be supported by enhancing our leading positions in Consumer and Business, and continued growth in Wholesale. In Consumer, we will emphasize our focus on base management and customer loyalty through our Household 3.0 approach. In Business, we will leverage our platforms, portfolio and distribution channels to drive growth and increase our share of wallet. 

We will take significant steps to further modernize our operating model, leveraging the power of automation and AI, realizing exceptional service experience and driving substantial savings in indirect costs. We expect adjusted EBITDA after leases to accelerate from our current run rate and grow in line with service revenue growth. In the coming years, we will invest more than € 4.5bn in our networks and the digitalization of the Netherlands whilst delivering a growing return on capital employed. Capex will remain stable until 2026, after which we will see a significant step down, resulting in a material inflection of our Free Cash Flow. 

Our focus on creating value enables us to continue delivering attractive shareholder returns and we remain committed to our policy of returning all our Free Cash Flow to our shareholders. Effectively this means that we will distribute € 3.8bn to our shareholders over the next four years, with a higher portion of that coming from dividends.”