KPN 2005

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Global Reports LLC
Sustainability Report 
This Sustainability Report has been printed in a limited edition only,
based on the online version. We made a conscious choice not to
produce a print version in order to save paper and print costs. You
can find our splendid online version of the report by surfing to kpn.
com. There you use the search term ‘Sustainability’. We would like to
invite you to read the Sustainability Report online.
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Global Reports LLC
Table of contents
Forword by the Chairman of the Board of Management and CEO * 
 KPN and corporate social responsibility * 
Vision of sustainable business 
Vision of commitment to society
Vision of ethics and integrity
Corporate social responsibility in the KPN organisation
Evaluation of the  Sustainability Report by means of stakeholder dialogues 
Evaluation
Stakeholders
Results
Justification of the data presented 
GRI guidelines 
Assessment by a third party 
Response? 
 The company 
Profile 
Mission statement 
Organisational structure 
Key financial figures * 
Corporate governance 
Compliance with the Dutch Corporate Governance Code
Other corporate governance requirements
Ongoing impact of the US Sarbanes-Oxley Act
Legal structure of the company 
Supervisory Board
Board of Management
Compliance 
Annual General Meeting of Shareholders 
The State of the Netherlands 
Continuity and availability of telecommunications services 
Ideas management 
Regulations 
 Our customers 
Ensuring future success through quality management 
Customer satisfaction survey *
Standards for service
Improvement actions in 
Safe Internet usage
Customer Operations Performance Centre
Advertising *
Handling of complaints 
 Our investors 
Shareholders 
Evaluating KPN’s sustainability 
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Global Reports LLC
 Our employees 
Sustainable personnel policy 
Collective labour agreement in accordance with market conditions
Performance-related pay
Trade unions and employee participation
Employee motivation *
Reorganisations and layoffs
Employee mobility *
Talent development and training/education
Health, safety and the environment 
Vitality programme
Safety Checklist for Contractors (VCA)
Labour Inspectorate *
Sick leave and workplace accidents *
In-company emergency services
Diversity and respect 
Complaints procedure and disciplinary policy 
 Commitment to society 
Social sponsorship * 
Education: Free broadband Internet access for schools
Healthcare
Use of new media
Disasters
Other sponsoring activities * 
Volunteer work 
BASE 
Art collection and commissioning * 
Loans
Cultural sponsorship
 Producten en diensten 
Sustainable design 
Teleworking
Target groups * 
Special products for young people
Special products and services for the elderly
Services for people with limitations
The deaf and hard-of-hearing
The blind and the visually impaired
Innovation 
Broadband services in healthcare
Broadband services in education
Broadband services for safety purposes
Communication in case of major problems
Respect for privacy * 
Radiowaves and health 
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Global Reports LLC
 Purchasing 
Suppliers 
Requirements for products and services intended for sale 
Collection of peripheral equipment
Phone cards
Chip cards
Mobile phone cards
Requirements for products and services for KPN’s own operations 
Vehicle fleet
Cable networks
Water
Paper
Catering
 KPN’s operations and the environment 

Summary of results in the Netherlands in  
Environmental performance in figures
Environmental protection in KPN’s operations 
Legal frameworks 
Licensing situation
International
Environmental checks
Covenants
Packaging Covenant
Energy 
Natural gas *
Fuel consumption of the vehicle fleet *
Electricity *
(Emergency) Power generators
District heating
Emissions into the air 
Greenhouse gas emissions due to energy consumption
Coolants
Replacement agents
Emissions into water 
International
Emissions into the soil 
Cables
Diesel storage in the Netherlands
Diesel storage abroad
Waste * 
Environmental lines
Developments in the waste streams
KPMG Assurance Report 

GRI reference table 
The topics marked with * were part of KPMG’s assurance audit.
The Assurance Report drawn up by KPMG has been attached to this Sustainability Report.
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Global Reports LLC
Foreword
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Global Reports LLC
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In this Sustainability Report we discuss our activities in the area of corporate social responsibility in 2005.
We explain what we do in an economic, social and ecological context in the Netherlands (KPN),
Germany (E-Plus) and Belgium (BASE).
The report is partly based on the results of 'stakeholder dialogues' conducted in 2005 in connection with
the previous Sustainability Report and our policy relating to corporate social responsibility. The report has
also been assessed by an independent third party (KPMG).
As in previous years, we have conformed to as many guidelines as possible for the relevant indicators of
the Global Reporting Initiative (GRI). GRI is a leading international institute that exists to promote the
standardisation of sustainability reporting. Our main focus is on achieving transparency and clarity. That
is why the report not only addresses our activities, but the results as well. It appears that we have made
substantial progress in various areas. For example, the electricity consumption in our network has been
decreased by as much as 10%. In addition, we have taken measures to limit the fuel consumption of
KPN's commercial vehicles.
By participating in international activities, KPN wants to promote sustainable business on a larger scale.
For that reason we have set up an energy taskforce as part of ETNO (the European Telecommunications
Network Operators Association). Together with other European operators we are looking for ways to
achieve further reductions in the energy consumption of our networks.
In 2004, we started offering free broadband Internet access to schools. We continued this initiative during
the year under review. By now around 8,000 schools in the Netherlands have fast Internet connections.
Meanwhile we have taken the next logical step by organising activities to promote responsible use of the
Internet and to inform schools about the possibilities of new media. We not only feel responsible for the
connections of these schools, but also for the way children use them. Therefore, we have created the
charitable foundation Mijn Kind Online ('My Child Online').
We are also contributing to innovation in healthcare. We have become more closely involved than ever
since the health secretary Hans Hoogervorst asked me to initiate a study into innovation in this sector.
The study, which started at the end of last year, is part of the Sneller Beter ('Faster Better') programme.
The Dutch Association of Hospitals, the Order of Medical Specialists and the Association of Nurses are
participating in the study. One of the things we do is advise on the use of electronic files regarding
medication and patients.
Finally, I would like to add that KPN has gained its reputation for corporate social responsibility primarily
through its products and services. They are perfectly in line with the sustainable development of our
economy and society envisaged by everyone. Working, learning, conferring and communicating – it is
becoming increasingly easy to perform these activities remotely, and with better results. Crossing long
distances at high speed without using any fuel: that truly is sustainable.
We are planning to continue all of the above activities during the years to come. Naturally we will report
on them again in 2006. I invite interested parties to enter into a dialogue with us about this Sustainability
Report. You can use the e-mail address [email protected] for this purpose.
Ad Scheepbouwer
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Global Reports LLC
 KPN and
corporate social responsibility
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 The company
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Global Reports LLC
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Our main objectives, as described in Article 4 of our Articles of Association are to participate in and to
manage other enterprises and companies, among such, companies that operate in the field of the
transmitting, storing and converting of information, as well as to manage and dispose of information and
to let our subsidiaries carry out the concessions or licenses that are granted by the government in the
field mentioned above.
Koninklijke KPN N.V. was incorporated under the laws of the Netherlands on 1 January 1989. On 28
June 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 for Haaglanden, The Hague, the Netherlands,
and our executive offices are located at Maanplein 55, 2516 CK The Hague, the Netherlands. Our
telephone number is +31 (0)70 446 09 86. Our agent for service of process in the United States is KPN
INS, Inc., 494 8th Avenue, 23rd floor, New York NY 10001.
A more extensive description of the company has been included in our Annual Report and Form 20-F for
2005.
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KPN provides telephone, Internet and television services to personal customers through its fixed network
in the Netherlands. For business customers, we provide a range of services, from voice, Internet and
data services to fully-managed outsourced ICT solutions, in the Netherlands and internationally. For both
private and business customers, we offer mobile services in the Netherlands, Germany, Belgium and
Western Europe.
As of 31 December 2005, we served 6.9 million fixed-line subscribers and 2.2 million Internet customers
in the Netherlands as well as 20.8 million mobile customers in Germany, the Netherlands and Belgium,
while we employed 29,286 individuals (26,598 FTEs).
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Our customers trust us to provide them with high-quality, reliable services to help them achieve their
business and personal goals, and to enrich their work and leisure time. We offer them a range of
innovative products which enable them to access information and entertainment, anytime, anywhere, and
let them choose how to do that, from, for example, a phone, a computer, a PDA or a television screen.
We also let them choose from a wide range of brands which we have designed to suit different needs
(and pockets) – from the reliable high-quality KPN brand to youth brands such as Hi, or no-frills brands
such as Het Net and Simyo.
We believe that the large number of satisfied customers this approach creates forms the basis for
profitable growth and, as a result, creates value for our shareholders. Equally, we believe that our
commitment to quality and customer satisfaction can be realised only if our employees are motivated to
provide the best possible services.
We are equally conscious of our responsibilities to the wider community: it is our policy to use our
knowledge and technology to contribute to the well-being of all our stakeholders, and take steps to
account to them for our environmental performance.
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On 1 April 2005, we completed the process of changing our organisational structure. The overview below
reflects our organisational structure as of 31 December 2005.
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Differences between this year's figures and the reported figures for previous years are the result of the
conversion to IFRS, while the figures for 2004 were reported in accordance with Dutch Generally
Accepted Accounting Principles (Dutch GAAP).
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Corporate governance deals with efficient supervision of the Board of Management and a balanced
the Dutch Corporate Governance Code that was published by the Tabaksblat Committee on 9 December
distribution of influence and power between the Board of Management, the Supervisory Board and the
2003.
General Meeting of Shareholders. Our aim is to achieve and maintain a culture of honesty and integrity.
The Dutch Corporate Governance Code has its statutory basis in Book 2 of the Dutch Civil Code and
applies to companies��
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exchange either domestically or abroad. The Dutch Corporate Governance Code is based on the apply-
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The Dutch Corporate Governance Code 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 ensure 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.
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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 US 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, Risk Management and Internal Control. In
addition, on 23 August 2005 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.
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Given our listing on the New York Stock Exchange, we have to comply with certain requirements of the
US Sarbanes-Oxley Act. During 2005, our compliance efforts focused on further improving our internal
controls regarding our financial reporting. In March 2005, the SEC extended the deadline for compliance
with the US Sarbanes-Oxley Act 404 by one year. As a consequence, KPN will have to comply with
Section 404 of the US Sarbanes-Oxley Act starting from the financial year 2006.
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Under Section 6, Part 4 of Book 2 of the Dutch Civil Code, the rules for large companies are mandatory
for us. As such, we have a two-tier management structure with a Board of Management and a
Supervisory Board. Among the powers vested in the Supervisory Board is the power to appoint and
remove members of the Board of Management. Some of the resolutions of our Board of Management are
also subject to the approval of the Supervisory Board. As a result of a change in Dutch company law per
1 October 2004, shareholders rights have increased while the rights of the Supervisory Board have
decreased. Under the new legislation, shareholders are entitled to approve decisions of the Board of
Management that have a company transforming effect, to approve the remuneration policy and share
(option) plans, to appoint members of the Supervisory Board upon proposal by the Supervisory Board,
and to dismiss the Supervisory Board. On 12 April 2005, our Annual General Meeting of Shareholders
approved the proposal to amend our Articles of Association, to reflect these changes.
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The Supervisory Board oversees strategic and organisational policymaking by the Board of Management
and the way in which it manages and directs our operations and affiliated/associated companies. It
oversees and supervises the Board of Management. Members of the Supervisory Board are appointed by
the Annual General Meeting of Shareholders upon binding nomination by the Supervisory Board. The
Central Works Council has an enhanced right of recommendation with respect to one third of the
Supervisory Board, meaning that the Supervisory Board must nominate those recommended unless it is
of the opinion that 1) any such person would be unsuitable to fulfil the duties of a Supervisory Board
member; or 2) such appointment would cause the Supervisory Board to be improperly constituted.
Members of the Supervisory Board resign according to a schedule set by the Supervisory Board. They
step down at the first General Meeting of Shareholders following their four-year term of office. Under the
by-laws of the Supervisory Board, they can be reappointed twice, leading to a maximum term of office of
twelve years. In 2005, the Supervisory Board, following consultation with the Annual General Meeting of
Shareholders and the Central Works Council, updated its profile, defining the basic principles for the
composition of the Supervisory Board. All nominees for the election to the Supervisory Board must fit
within this profile. According to this profile, the Supervisory Board must be composed in such a way that
members of the Supervisory Board are able to operate independently of each other and of the Board of
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Management. The by-laws contain, among other things, rules regarding the members' duties, powers,
twelve years. In 2005, the Supervisory Board, following consultation with the Annual General Meeting of
Shareholders and the Central Works Council, updated its profile, defining the basic principles for the
composition of the Supervisory Board. All nominees for the election to the Supervisory Board must fit
within this profile. According to this profile, the Supervisory Board must be composed in such a way that
members of the Supervisory Board are able to operate independently of each other and of the Board of
Management. The by-laws contain, among other things, rules regarding the members' duties, powers,
working methods, decision-making, approval of decisions by the Board of Management, training and
conflict handling. The by-laws of the Supervisory Board were reviewed and renewed during 2005.
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The Board of Management, supervised and advised by the Supervisory Board, manages our strategic,
financial and organisational matters and appoints senior managers. The Supervisory Board appoints and
discharges members of the Board of Management and establishes their individual remuneration within
the boundaries of the remuneration policies approved by the Annual General Meeting and the
recommendations by the Remuneration & Organization Development Committee. On the basis of the
Dutch Civil Code, our Articles Of Association and the by-laws of the Board of Management, certain
decisions of the Board of Management require the approval of the Supervisory Board. These decisions
include approval of the annual plan and budget, approval of resolutions that exceed certain thresholds,
expanding the business materially affecting the existing business, and the closing down of business if
this results in a material change for a considerable number of employees.
Management teams assist the responsible management of our divisions and they are responsible for
achieving targets defined for the divisions and for organising, managing and controlling business
processes within the divisions. The divisions are required to observe our Business Control Framework
governing such matters as financial accounting, investment decisions, cash management and internal
control.
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We expanded our compliance efforts in 2005. We introduced a new Code of Conduct in April 2005 that
sets out our standards and values. 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. Our key values are: 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 widest sense). The Code of Conduct is available on our website.
To translate the Code of Conduct into practical terms for employees, we have introduced in recent years
a number of subcodes to clarify our internal rules. These subcodes, which were updated in 2005, are
bundled into four clusters: 1) integrity, 2) competition and telecommunication law, 3) insider trading and
4) information security. To complement the rules in the subcodes we have introduced three general
guidelines: the whistleblower policy, the fraud policy and the protocol on integrity investigations. We have
communicated the updated Code of Conduct and the subcodes among our employees in 2005 in order to
further increase awareness of these rules.
In 2005, we introduced a mandatory training programme regarding competition and telecommunication
law for an important number of our employees in the Fixed division. The objective of the training
programme was to increase the awareness and the knowledge of employees regarding competition and
telecommunication law. The training programme consisted of workshops, an in-house designed and
tailor-made e-learning tool and an e-test. As the workshops gave the possibility to have more in-depth
discussions, they were focused on increasing knowledge of the relevant rules whereas the e-learning
tool focused especially on increasing awareness. We appointed a Group Compliance Officer in 2005 who
is responsible for increasing compliance awareness. We also installed a Compliance Board that is
responsible for coordinating the various compliance efforts we undertake. The Compliance Board is
chaired by the Group Compliance Officer.
We encourage our employees to actively report any (suspected) breach of the Code of Conduct or the
subcodes. Our internal Security department plays a key role in this by offering support via a helpdesk,
where employees can anonymously report such breaches and also obtain information regarding the
principles underlying the codes. In the event that a breach is reported, our Security department will
conduct an investigation on a strictly confidential basis. The outcome of the investigation is reported to
local management. We check employee awareness of the codes each year as part of the Annual
Employee Satisfaction Survey.
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Within six months of the end of a fiscal year, an Annual General Meeting of Shareholders is held at The
Hague, Amsterdam or Groningen, where the discussion of the Annual Report and approval of the
Financial Statements are put on the agenda. Other General Meetings of Shareholders are held as often
as the Supervisory Board or Board of Management deems necessary. One or more shareholders
together representing at least 10% of the subscribed capital stock may request the Board of Management
and the Supervisory Board, in writing, to convene a General Meeting of Shareholders. If the Boards fail
to organise such a meeting within six weeks, the District Court may authorise those shareholders to
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convene a General Meeting of Shareholders.
Hague, Amsterdam or Groningen, where the discussion of the Annual Report and approval of the
Financial Statements are put on the agenda. Other General Meetings of Shareholders are held as often
as the Supervisory Board or Board of Management deems necessary. One or more shareholders
together representing at least 10% of the subscribed capital stock may request the Board of Management
and the Supervisory Board, in writing, to convene a General Meeting of Shareholders. If the Boards fail
to organise such a meeting within six weeks, the District Court may authorise those shareholders to
convene a General Meeting of Shareholders.
The Board of Management and the Supervisory Board determine the agenda of the General Meeting of
Shareholders. Shareholders who individually or collectively represent at least 1% of the issued capital, or
alone or in the aggregate, at least a value of fifty million euros (EUR 50,000,000) according to the Official
Price List, have the right to propose items for the agenda. Such requests will be honoured on the
condition that grave interests of the company do not dictate otherwise. The request must be submitted in
writing at least 60 days prior to the date of the meeting. The Chairman of the Supervisory Board chairs
the meeting. Every shareholder has the right to attend a General Meeting of Shareholders, in person or
through written or electronic proxy, to address the meeting and to exercise voting rights.
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The State of the Netherlands, referred to hereinafter as 'the State', represented by the Ministry of
Finance, is a large shareholder in our company. On 7 December 2005, the State announced the sale of
105 million shares in a block trade to ABN AMRO Rothschild and 60 million shares to the company
thereby reducing its shareholding in the company to 7.8%. Following the sale of a large part of its
shareholding the State announced the disposal of the special share and on 16 December 2005, we
repurchased this special share for its nominal value of 48 eurocents, as provided for in the Articles Of
Association. At the same time the Heads of Agreement with the State, under which agreement the
relation with the State as shareholder in our company was coordinated, was terminated. At the Annual
General Meeting of Shareholders on 11 April 2006, we will propose an amendment to the Articles Of
Association to cancel the special share. In the meantime, KPN will not sell or otherwise use the special
share. The State has announced that it intends to sell the remainder of its KPN shares, subject to market
conditions. The State is a major customer and purchases our services on normal market terms and
conditions.
The State may further require us by law to provide certain services in connection with national security or
the investigation of criminal offences. These services include tapping telephone lines and providing and
maintaining a special secure network for emergencies.
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Reliable telecommunications links are essential to the proper functioning of the Dutch economy. In 2005,
KPN contributed as planned to the establishment of the National Consultation Platform on
Telecommunications Continuity (NCO T), a cooperation body consisting of representatives of
telecommunications operators and the national government. The aim for 2006 is to develop a system of
self regulation.
As agreed in the NCO T, operators must report large scale disruptions of their services to the Directorate
General for Energy and Telecom of the Ministry of Economic Affairs. KPN made three such reports in
2005. One disruption related to SMS traffic, which is not covered by the NCO T agreements. Because
many people use SMS services both privately and for business purposes, KPN still felt it was important
to report the disruption.
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KPN counts on its employees to become actively involved in the company's future by submitting ideas to
increase sales and reduce costs. KPN therefore encourages its staff to submit such ideas. Despite the
reduced workforce and the smaller number of ideas, in 2005 this approach produced significantly larger
financial gains than in previous years.
Ideas submitted by KPN employees in 2005 produced a net saving for the company of EUR 19.7 million.
This represents an increase of EUR 1.4 million (7.7%) compared to 2004 and an increase of almost
100% compared to 2003. As a reward for their contributions, employees submitting ideas received a net
total of more than EUR 300,000 in prizes in 2005 (up from approximately EUR 280,000 in 2004).
A total of 1,368 ideas were submitted in 2005, down from 2,441 ideas in 2004. A prize of EUR 2,000 or
more was awarded to 32 employees. Among them were 12 KPN employees who received the maximum
prize of EUR 10,000. In addition, employees working in the business market sent in no fewer than 13,874
suggestions to increase sales. These resulted in a total of EUR 20.5 million in extra sales.
Reinoud Voorbraak, software developer at IP Access Services, conceived of a way to simplify and speed
up the transition from ADSL to ADSL 2+. His idea will save KPN a great deal of time and money and
earned him the maximum prize of EUR 10,000. ��
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more was awarded to 32 employees. Among them were 12 KPN employees who received the maximum
prize of EUR 10,000. In addition, employees working in the business market sent in no fewer than 13,874
suggestions to increase sales. These resulted in a total of EUR 20.5 million in extra sales.
Reinoud Voorbraak, software developer at IP Access Services, conceived of a way to simplify and speed
up the transition from ADSL to ADSL 2+. His idea will save KPN a great deal of time and money and
earned him the maximum prize of EUR 10,000. ��
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As a large telecommunications company, KPN operates in a regulated environment. The
Telecommunications Act contains numerous provisions that KPN must comply with. The Dutch
telecommunications regulator OPTA, which monitors compliance with the law, also issues all manner of
instructions that KPN must abide by. This means that many actions undertaken by KPN are extensively
scrutinised by society at large. In 2005, KPN therefore implemented a compliance programme aimed at
raising awareness of the applicable laws and regulations among KPN employees involved in commercial
activities.
KPN supports effective supervision of the telecommunications sector. The market benefits from a
structure that does justice to the relations on that market. In the longer term, however, KPN is of the
opinion that industry specific regulation and supervision of the telecommunications market should be
abolished. In the short, term the supervisory authority should ensure a level playing field and equivalent
regulation for KPN's competitors. In that context, KPN regularly organises meetings on the future of the
telecommunications industry.
In 2005, OPTA imposed a fine of EUR 17 million on KPN. This was the outcome of an investigation into
discounts awarded by KPN to certain business customers in the market segment for fixed telephony and
leased lines. Furthermore, without admitting any liability and with the sole purpose of leaving the matter
behind, KPN offered EUR 18 million to competitors. OPTA took this offer into account in determining the
fine.
More detailed information on this subject can be found in our Annual Report and Form 20 F for 2005.
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 Our customers
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Global Reports LLC
 Commitment to society
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At KPN, commitment to society manifests itself in projects, sponsorship and donations. In 2004, we
developed a new policy for commitment to society and sponsoring activities. This policy was implemented
in 2005. The focus is on bridging gaps that make it difficult for people to participate in society. KPN
deploys financial resources, staff and business activities to achieve this goal. The company is mainly
involved in projects that are clearly linked to ICT or telecommunications. Our projects concern healthcare
and education and are particularly aimed at young people and the elderly. Apart from one exception they
take place in the Netherlands, and they are never of a political or religious nature.
During the year under review KPN took part in various social projects. In 2006, we will closely review our
social policy and improve it where necessary. At the same time we will promote its basic principles both
internally and outside KPN.
The amounts KPN invests in the projects concerned are not specified below, because we feel that the
main thing here is not money but investments in terms of manpower, knowledge, products and services.
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In 2004, around 8,000 schools accepted KPN's offer of free broadband Internet access. Since then we
have kept in touch with these schools, among other things via a digital newsletter, and have provided tips
for safe use of the Internet. In 2005, KPN supported a pilot project on communication and safety
organised by the Kids and Science foundation. Through this project, children learn in a playful way how
much fun technology and innovation can be.
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In December 2005, Hans Hoogervorst, the Minister of Health, Welfare and Sport, asked our Chairman of
the Board of Management, Ad Scheepbouwer, to initiate a study into innovation in healthcare. The study
is being undertaken in the context of the Sneller Beter ('Better Faster') programme, a joint effort of the
Dutch Association of Hospitals, the Order of Medical Specialists and the Association of Nurses. KPN's
task is to advise on how the healthcare sector can make better use of ICT, for instance to develop
electronic files on medication and patients.
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KPN attaches great importance to responsible use of new media. From comments made by panels of
school teachers and from a study by Blauw Research commissioned by KPN it appears that many
teachers and parents need information about safe use of the Internet. Teachers of both primary and
electronic files on medication and patients.
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KPN attaches great importance to responsible use of new media. From comments made by panels of
school teachers and from a study by Blauw Research commissioned by KPN it appears that many
teachers and parents need information about safe use of the Internet. Teachers of both primary and
secondary schools have indicated that they would like to know more about certain practical matters, such
as creating a website and editing photographs.
One of the initiatives KPN took in 2004 was the addition of two websites to Planet Internet:
www.mijnkindonline.nl, designed for parents, and www.mijnleerlingonline.nl, for teachers. In collaboration
with Ouders Online ('Parents Online'), Planet Internet organised informative meetings for parents in 2005
and gave presentations about safe use of the Internet. What's more, KPN is taking part in an information
campaign for young people concerning (sexual) abuse on the web and conducted a study into digital
bullying in 2005. Another project is the Digibewust ('Digi-Aware') initiative, intended to alert people to the
importance of responsible Internet use. In this project, we collaborate with the Ministry of Economic
Affairs, ECP.NL, Microsoft and TPG Post.
Remco Pijpers, young people and new media specialist at KPN Internet: ��
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KPN is aware of the distribution of 'adult content' via new media such as the Internet, i-mode and digital
TV. We have adopted specific guidelines for this purpose. Together with other mobile operators and
NICAM (the Netherlands Institute for the Classification of Audio-visual Media), KPN developed the
Kijkwijzer warning system for mobile Internet.
In September 2005, MSN was introduced on i-mode, where it soon became the most popular service.
Since then we have approached several hundreds of customers, particularly young people, to warn them
that their usage far exceeded their normal level and to advise them on a more suitable i-mode bundle.
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KPN offered support to the joint Dutch aid organisations (SHO) for their efforts in Asia following the
tsunami and the earthquake in Pakistan. We provided extra bandwidth to increase the capacity of the
SHO website (www.giro800800.nl) and made the SNT call centre available free of charge for the two
televised fundraising events.
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KPN sponsors the Johan Kooij Fellowship, which promotes the use of ICT by schools in developing
countries. The Fellowship supports the Global Teenager Project, for example. This project enables school
pupils from various countries to discuss their experiences and exchange knowledge via the Internet, e-
mail and chatting. SchoolNet Africa, the organisation supervising the project, started a campaign in 2004
to gather one million computers for African schools. In 2005, KPN was able to donate 10,000 computers
thanks to a large-scale replacement operation within the company. KPN and its employees also
supported the Ronald McDonald children's fund and the Dutch National Help the Aged fund last year by
donating their new year's gifts. In September 2005, the KPN staff decided with a majority vote to support
the Ronald McDonald children's fund during the coming two years. Our collaboration with the fund
started in January 2006.
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Since June 2004, KPN's staff association, PVKPN, has been supporting KPN employees who spend part
of their spare time working for a good cause. Their causes receive small financial contributions or
materials such as sports clothing. In 2005, 37 requests were submitted of which nearly 30 were granted.
Examples of causes supported are children from Chernobyl, victims of the earthquake in Pakistan and
orphanages in Sri Lanka and South Africa.
Furthermore, KPN employees are taking part in two volunteer projects involving coaching activities.
Marokkaans Talent ('Moroccan Talent') was set up in November 2005 for the purpose of offering
guidance and training to highly educated young people of Dutch-Moroccan origin in order to improve their
chances on the job market. We also participate in Business in the Community, a network of companies in
The Hague focusing on corporate social responsibility. The network supports Zaak & Co, a project for
students of intermediate vocational education in the The Hague region. KPN is supplying 21 coaches for
this project.
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In collaboration with two other mobile operators in Belgium, BASE supported SMS donations following
the two catastrophic natural disasters in Asia last year.
Another initiative in 2005 was the organisation of the first BASE summer camp. For an entire week, 50
children could forget about all their worries and enjoy the Flemish coast. BASE initiated the camp
together with the Flemish anti-cancer league. Siblings of critically ill cancer patients were allowed to join
the camp as well. A number of BASE employees were present to ensure that the organisation ran
smoothly.
As part of BASE's Corporate Employee Sponsoring Programme, resources are made available each year
for social projects. BASE employees put in a lot of effort for the programme. Each member of staff can
submit his or her project and make a bid for financial support. A precondition for this support is that
projects must be in line with the values and strategy of BASE.
BASE tries to find the right balance between sponsoring of popular and classical music. An important
factor in this is that both Flanders and Wallonia must get their share.
In respect of the popular arts, BASE sponsored a number of summer festivals, from Cactus Rock in
Bruges to the Dour Festival in Hainaut. The Dranouter Folk Festival in Ghent and the Walloon Festivities
in Namur were supported as well. BASE's main activity was facilitating public interaction via SMS.
In the area of classical music, BASE joined forces with the Flanders Festival in Ghent. In addition, KPN's
Belgian subsidiary initiated an SMS poetry competition. The 20 best poems were selected and published
in book form. In Wallonia, BASE organised various specific projects, such as the awards ceremony for
the 2005 Caïus art prizes.
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KPN has always used two methods to promote modern artistic expression. We commission artists for
applications in KPN buildings or products and possess our own prominent collection of modern art works
which are exhibited in the KPN offices. In addition, we are actively involved in bringing together the
cultural world and the business sector. In 2005, we used several different approaches for this.
We are involved with a number of museums and other cultural institutes. For example, KPN sits on the
board of the Dutch Association for Corporate Art Collections (VBCN). This organisation wants to
encourage the exchange of knowledge and promote Dutch art abroad. VBNC is also a partner of the
Zuidas project office which supervises the development of southern Amsterdam. A sculpture square will
be constructed in this area, partly at our initiative.
KPN has participated in a project for digitisation of cultural heritage. The aim of this project is to make
hidden artistic gems visible in an innovative manner by means of multimedia. Another activity of the
company has been advising the Ministry of Foreign Affairs in its national arts inventory. We provided
expertise for the project Straat van 1000 sculpturen ('Street of 1,000 sculptures') in south-east
Amsterdam. Finally, a KPN employee sits on the board of Art Table, an organisation that promotes the
professionalisation of (young) women in the visual arts.
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In 2005, KPN lent important works from its collection free of charge to several Dutch museums. To
promote Dutch art internationally, the residence of the Dutch cultural ambassador in New York has been
decorated with art works from the KPN collection.
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2005 was the first year when KPN was the main sponsor of the Amsterdam Museum Night. This event
combines art with multimedia innovation. In addition, we supported the Kunst & Zaken ('Arts & Business')
foundation, which is aimed at reinforcing management of cultural organisations by introducing cultural
executives to knowledge and experience in the business community.
In 2005, we also promoted the careers of young, promising artists. Tim Otto Roth developed an
interactive piece for a lighting wall at KPN's office in the Rotterdam Kop van Zuid area. Another project
was the video production of Julika Rudelius at KPN's office on La Guardiaweg in Amsterdam. Graphic
designer Marcel Wanders created a series of business gifts for the Board of Management using optical
fibre as his main material. The design duo Arie Versluis and Elly Uyttenbroek produced a panoramic wall
near the entry of one of KPN's offices in The Hague. KPN Art & Design facilitated publications of young
artists in the KPN collection, which ensured that their work received attention from a wide audience.

 Products and services
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Global Reports LLC
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In our product range, we make a distinction between consumers and the business market. For
consumers, KPN offers various products and services aimed at certain target groups, such as people
with physical limitations, young people and the elderly. The relationship with corporate social
responsibility lies in the sustainability of these products and services. People with physical limitations,
such as hearing difficulty or a visual impairment, are extra reliant upon specifically developed means of
communication. The fact that we take these people's interests into account has been set out in the
Company Code as well.
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With its suppliers, KPN assesses the consequences of products and services for the environment and the
possible ways of reducing them. Therefore, we changed the outer packaging of a number of products in
2005. It no longer has any prints and now consists of brown cardboard. This means that less printing ink
is required. In 2006, a study will be conducted to assess whether the share of plastics in the transport
packaging of certain products can be reduced.
Energy consumption is gaining importance in the selection of products, while equipment has more and
more functionalities thanks to technological developments (e.g. in the field of micro-electronics). When
developing new services, we have been taking into account the undesired shift in energy consumption
from KPN to the buyers of our products. More efficient KPN equipment will largely counterbalance this
effect.
For the fixed network, a pilot was carried out in the third quarter of 2005 to test the use of paperless
invoices. The phased implementation of this way of invoicing is set to start in 2006. Customers will now
receive their invoices via e-mail, something that was already introduced earlier at Het Net.
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Since 2000, we have applied two types of teleworking within KPN. Teleworking means saving on travel
kilometres and thus reducing CO 2 emissions as well as traffic congestion. Office employees work from
home on their PC and via e-mail. Field employees perform administrative duties at home. A positive
side-effect is the fact that KPN requires less office space if more people work from home. After an
internal pilot, the product has therefore also been introduced commercially. We have since started
marketing teleconferencing, videoconferencing and web conferencing as well, with the same principle in
mind.
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marketing teleconferencing, videoconferencing and web conferencing as well, with the same principle in
mind.
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KPN supports parents by offering products that make it easier to keep in contact with their children. We
have developed a specific product for this purpose. In mid-2005, KPN introduced i-Kids, a mobile phone
for children aged six to nine. With this handset it is easy for them to make calls, be called and receive
SMS messages. Parents can not only reach their children, but can also find out where their children are
via a designated location service.
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We offer various products and services for the elderly, designed to make them less isolated and involve
them in the knowledge economy. People of a certain age are intimidated by the complexity of mobile
telephony and the Internet. Because of this, they miss out on a great deal. For that reason, KPN and its
partners have developed a number of user-friendly products and services.
For example, we offer a subscription for the senior phone Mybell, manufactured by Yoonison, which is
easy to use and only has three keys. The company SimPC has developed a computer that enables easy
e-mail, Internet access, word processing, Internet banking and photo editing. KPN supplies the
corresponding ADSL connection. SeniorWeb wants to give all people who have not grown up around
computers the chance to experience the possibilities of the Internet. In 2005, we started a two-year
collaboration with this organisation.
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People with physical limitations are extra reliant upon telecommunications for their participation in
mainstream society. Therefore, we have developed a number of specific products and services for this
target group. Some of these are covered by health insurance companies or are tax-deductible.
It is also important to us that the KPN website is easily accessible. In 2001, we therefore committed to
Drempels Weg ('Get rid of thresholds'), an initiative of the Ministry of Economic Affairs. KPN tries to keep
its website in line with this statement of intent wherever possible.
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Since as early as 1984, the text telephone service has enabled deaf people to communicate with the
hearing world. In 2005, the text telephone service dealt with 140,000 calls. For the trial with a new –
mobile – text telephone service, we are collaborating with the knowledge organisation TNO and the
AnnieS foundation. AnnieS is a project of the Foundation for Information and Communication Networks
for the Deaf and Hard-of-Hearing. On 24 September 2005 (World Deaf Day), hundreds of deaf and hard-
of-hearing people could register for a free trial with the mobile text telephone service. South of the
border, KPN's mobile service provider BASE collaborates with a number of Belgian organisations for
people with hearing impairments.
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Together with the Council for the Chronically Ill and the Disabled, KPN offers a directory service for
people who cannot use normal phone books due to visual impairments. We have been doing so for many
years. In 2005, some 5,000 people benefited from this service.
In February 2006, we launched a special mobile phone for blind people and people with impaired
eyesight: the 'Mobile Guide Phone'. The introduction of this mobile phone was realised in collaboration
with the Dutch Association for the Blind and the Visually Impaired (NVBS), the website slechtziend.nl and
the Federation of Dutch Libraries for Blind People (FNB).
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With our partners, we are constantly looking to improve the areas of healthcare, education and safety by
means of broadband services. During trial periods, KPN supplies resources and knowledge. After that,
we evaluate whether the initiatives can be introduced commercially.
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The healthcare sector is dealing with increased pressure due to the ageing of our population, cost-cutting
and staff shortages. ICT can significantly increase the efficiency and effectiveness of healthcare. During
the past year, a new site was added to www.kpn.com which specifically addresses the healthcare sector.
All healthcare projects of KPN are listed on this site, and some of them are described below.
Koala (Dutch acronym for 'remote contact as a logical alternative') is an initiative of the care organisation

Sensire/Thuiszorg Groningen, insurance company Menzis and KPN. In the near future, a foundation will
All healthcare projects of KPN are listed on this site, and some of them are described below.
Koala (Dutch acronym for 'remote contact as a logical alternative') is an initiative of the care organisation
Sensire/Thuiszorg Groningen, insurance company Menzis and KPN. In the near future, a foundation will
be established for this project. During the start-up phase, 1,500 care customers in the Groningen
province can contact nurses 24 hours a day, 7 days a week via a television set. For over a year now,
200 people in the Gelderland province have been using a product called Telesens, which served as a
basis for Koala.
We support the Computer Sciences Corporation (CSC) in installing an LSP, a national switch point, for
the medical world. CSC was commissioned for this project at the end of 2005. In the future, it will be up
to the LSP to enable the use of electronic patient files.
For some time now, KPN and a number of software partners have been working on various mobile
solutions for certain customer groups and specific areas of healthcare. A new product, introduced in
2005, was the Pharmaphone, which we put on the market in collaboration with MedEurope. The
Pharmaphone is intended for GPs, cardiologists, rheumatologists, ENT specialists, pneumologists and the
like.
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As a follow-up to the offering of free Internet access for schools, we are now providing new facilities for
learning and working together, with the help of Fronter and Microsoft. Pupils, teachers and parents can
use the applications not only in school but at home as well. And they can do this in a safe Internet
environment.
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An increasing number of entrepreneurs in urban areas are opting for cooperation, as joint security
reduces the number of criminal offences and makes people feel safer. The National Platform for Crime
Control has therefore developed a hallmark for safe business, designed for industrial estates and
shopping centres. In this context, KPN has now developed a technical security concept based on fibre-
optic connections and peripheral equipment for industrial estates.
Customers attach increasing importance to information security. With the aim of offering customers more
security – whether it concerns fixed, mobile or Internet connections – KPN took a decision near the end
of 2005 to set up an Information Security Management System. In 2006, we want to provide pointed
information on the degree of security of our services. We already have a Computer Emergency
Response Team (KPN CERT), which deals with both internal operational processes and services
provided to customers. The team acts as a warning service for major computer problems.
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In case of a major problem or disaster, all emergency services must be able to act immediately.
Communication is therefore of vital importance. KPN has extensive knowledge, expertise and experience
in the area of communication during emergency situations, for example through the management of the
nationwide emergency code 112 and the national emergency network. We support the emergency
services by means of several innovative services. One example is the victim follow-up service SVS. In
the event of a traffic accident, SVS will record the details of the victims via a barcode or RFID (Radio
Frequency Identity) chip. This way, relatives as well as healthcare professionals can be informed on their
condition and location as soon as possible. A pilot is currently being conducted with this system.
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We treat the personal data and information of our customers and suppliers confidentially. Their privacy is
assured under the Personal Data Protection Act and the Telecommunications Act.
With respect to the use of data for marketing purposes, KPN applies self-regulation standards which
have been laid down in (industry) codes of conduct. The Netherlands Advertising Code Committee sees
to it that these codes are implemented correctly. After industry consultation, a new code was drawn up in
2005 for unsolicited e-mail messages of a business nature. We will adopt this code in 2006.
In 2005, KPN took a critical stance against the European government's intention to oblige operators to
store their customers' traffic data for a longer period of time. The reasons for our negative response were
related to customer privacy as well as to the costs involved.
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In 2005, KPN took a critical stance against the European government's intention to oblige operators to
store their customers' traffic data for a longer period of time. The reasons for our negative response were
related to customer privacy as well as to the costs involved.
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KPN wants to accommodate the enormous growth in the possibilities for use of mobile telephones.
However, this is not possible with the current GSM technology. We will therefore switch to third-
generation mobile telephony via UMTS technology. By means of UMTS we will be able to provide many
new services that not only offer ease of use for consumers but also offer social solutions, for example in
the healthcare sector.
UMTS base stations use only a third of the electrical energy needed by GSM base stations for the same
traffic capacity. The quantity of radiowaves used is also just a third of the quantity used by GSM, again
for the same traffic capacity. The capacity (the number of people that can call at the same time),
however, is ten times as high with UMTS. This effect can be seen with many modern technologies.
Digital TV channels offer a considerably larger variety of programmes at a better quality while using
much less energy. The French telecom agency ANFR has taken thousands of measurements during the
past years, which showed a clear reduction in the exposure to radiowaves.
Nevertheless, new technologies always give rise to questions. Municipalities and citizens are watchful for
the consequences that radiowaves from mobile telecommunications base stations may have for people's
health.
We understand this fear for 'the unknown' and for new technologies. Mobile communication and
radiowaves form invisible and intangible concepts for many people. Yet, basically, UMTS is no different
from GSM and radiowaves have already been used for 170 years.
Hundreds of studies have meanwhile been completed into the possible relationship between mobile
communication and general health. Measurements by the Dutch Radiocommunications Agency show that
GSM and UMTS base stations never reach more than 5% of the international exposure limits. The
Committee on Electromagnetic Fields of the Netherlands Health Council has not found any evident health
effects of exposure to radiowaves.
Naturally, KPN accepts its responsibilities and adheres to all national and international standards and
guidelines. The agreements reached with the government have been laid down in the Antenna Covenant.
We keep a close eye on the developments and on international studies, and we continuously monitor and
improve the internal processes in order to comply with the regulations.
In addition, we actively provide information about this subject to local governments, housing corporations,
building owners and concerned citizens. In this, we collaborate with other mobile operators. Together we
have also organised a large number of informative meetings, for instance for local press representatives.
Furthermore, KPN takes part in the PATO foundation for post-academic technical education. Through
PATO, KPN organises a training course for local council staff and for employees and physicians of
municipal health services. This course, which is free of charge, will again be offered to interested parties
in 2006. Among other topics, it deals with the supposed health risks, the limits imposed and the practice
of realising radio networks.
KPN also encourages the government and independent parties to provide good, objective information. In
2005, we issued a brochure on the subject of radiowaves and a great number of articles appeared in
industry magazines to explain the use and necessity of UMTS.

 Purchasing

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Global Reports LLC
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Global Reports LLC
 Operations and the environments

9 KPN's operations and the environment
KPN aims to minimise the harmful effects of its activities on the environment. In 2004, we therefore
defined an environmental policy which has since been adopted. For the longer term, we are pursuing a
leading position in relation to other telecommunications operators.
The figures for the Netherlands relate to KPN without taking into account participating interests such as
Telfort and SNT.
This chapter provides an overview of all of KPN's activities with regard to the environment.
The environmental aspects
9.1 Summary of results in the Netherlands in 2005

If compared to 2004, KPN's most important environmental results in the Netherlands in 2005 were as
follows:
the fuel consumption of the vehicle fleet decreased by around 9% (partly due to a reduction in
the number of staff and partly to better route planning);
the situation in the area of waste remained unchanged;
the electricity consumption in the Netherlands dropped by 10% thanks to improvement
measures and better registration;
the use of natural gas was reduced by over 16% through improvement measures and the
discarding of buildings;
as a member of ETNO we set up a task force to achieve energy reduction in networks;
together with other operators we are looking for the best available techniques;
KPN now has licenses under the Environmental Management Act for all its offices, technical
buildings and other installations.
6 ETNO = European Telecommunications Netweork Operators Association
9.1.1 Environmental performance in figures

The overview below lists the most relevant environmental aspects and KPN's performance in those
areas. The table includes two types of indicators: the indicators of the Global Reporting Initiative (GRI;
marked with environmental indices = EN indices) and other indicators of relative consumption. The
figures concern energy (gas and electricity), CO 2 emissions and waste.
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� Corrected natural gas consumption7

� Due to the cancellation of the subsidy scheme, the consumptions of green electricity dropped to 1.4%
� The reference year for the CO 2 index is 1999.
4 After adjustment and correction of incomplete records or calculations from the past, there values were
changed in comparison to the figures for 2004.
7 The natural gas consumption was corrected based on 'degree days', taking into account the effect of
the outdoor temperature over the years.
9.2 Environmental protection in KPN's operations

In 2005, KPN assessed its technical buildings for the possible environmental risks and drew up an action
plan and an implementation plan for improvement measures. For the part of the company that installs
telephone exchanges for business customers, we are preparing an environmental management system.
In 2006, we will be able to apply for an ISO 14001 certificate for this system.
KPN's business operations lead to types and means of communication which cancel the need for traffic
and transport movements that harm the environment. Yet the use of KPN's operational assets in itself
does have a damaging effect on the environment.
9.3 Legal frameworks

With regard to the environment, a license may be required for certain activities within the scope of the
Environmental Management Act or these activities may be covered by other orders in council. The
following orders in council are relevant to KPN:
shops (Retail Trade Decree);

offices (Offices and Accommodation (Facilities) Decree);
telecommunications buildings (some of which require an environmental license and many of
which come under the Facilities and Installations Decree);
buildings used for storage (Transport and Storage Companies Decree).

9.3.1 Licensing situation
Buildings and properties for which KPN holds an environmental license under the Environmental
Management Act are managed by the parts of the company they belong to. In 2005, the licensing
situation at KPN was as follows:
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During the year under review, there were no changes to the licensing situation of the KPN offices
concerned. The properties subject to the Transport and Storage Companies Decree all meet the
notification requirement.
The licenses for the technical buildings (such as telephone exchanges) were brought up to date in 2005.
We also requested and acquired environmental licenses for the expansions needed to transmit our digital
television service.
We continued making in order the environmental licenses for all telecommunications towers during 2005.
The towers contain third-party transmission equipment. Due to the auctioning of transmission frequencies
for TV and radio by the government, the environmental licenses for telecommunications towers needed to
be updated. We have achieved this for 23 out of 24 towers. For the tower in southern Amsterdam the
application procedure is still ongoing in 2006 due to the raising of this tower.
The Primafoon and Business Center sales outlets are subject to notification under the Retail Trade
Decree. Currently all sales outlets have the required license.
The satellite communication earth station is located at Burum. Since 2005, KPN has held an up-to-date
environmental license for the entire site of this station.
The government has not imposed a licensing obligation on the 4,269 GSM sites and 750 UMTS sites for
mobile telephony (the base stations). This is due to the limited transmitting power of each mast.
9.3.2 International
All E-Plus transmission sites have been approved by the Bundesnetzagentur (BNetzAr). E-Plus holds the
required licenses for all its buildings as well.
In total, BASE has 10,165 cells or antennas at around 2,200 sites. Of these, 54 are already suitable for
UMTS. An environmental license is required for 10 sites. In 2006, BASE will investigate whether it holds
up-to-date licenses for all sites.
9.3.3 Environmental checks

In 2005, 132 environmental checks took place at KPN's technical buildings. Apart from that, we
performed 39 checks ourselves. The irregularities found have now been corrected and repeat checks
have been carried out.
9.3.4 Covenants
In addition to the requirements deriving from laws and regulations, KPN participates in a number of
covenants to reduce the impact on the environment:
Packaging Covenant III contains agreements aimed at reducing the quantity of packaging
material on the Dutch market;
the White and Brown Goods (Disposal) Decree regulates the collection of handsets;
the Battery Foundation (STIBAT) regulates the collection of batteries;

the Antenna Covenant regulates the installation of and conditions for new antennas. For more
information, see Chapter 7: 'Radiowaves and health';
Industry Plan 26 of the National Waste Management Plan sets a minimum standard for the
processing of waste streams from the telecommunications industry. Further explanation on this
can be found in the section on 'Waste', under 'Dismantling projects'.
9.3.5 Packaging Covenant

KPN imports goods and thus introduces packaging waste on the Dutch market. The results of the past
few years are as follows:
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Between 2000 and 2004, the quantity of packaging waste was structurally reduced, but since 2004 it has
been rising again. This is a direct consequence of the addition of digital TV to KPN's range and of the
sale of receivers.
9.4 Energy
KPN consumes the following energy sources: electricity, natural gas, petrol, diesel and district heating.
We are continuously working on reducing our energy consumption and on increasing our efficiency in this
area. The enormous growth in the number of broadband connections clears the way for new cost-saving
services, such as remote provision of home care and medical consultations. Thanks to these services
less energy will be required for the performance of certain medical activities.
9.4.1 Natural gas *

A total of 389 technical buildings use natural gas in gas-fired central heating installations. Some of the
larger buildings serve combined purposes. They not only have equipment rooms but considerable office
facilities as well.
In 2005, the natural gas consumption in the office buildings decreased by around 23% to 2,764,000 m3.
This decrease was partly caused by the discarding of buildings, but also by the relatively mild weather in
winter.
In 2005, the surface area of KPN's sales outlets (Primafoon and Business Center) increased by more
than 1%. Their natural gas consumption rose by 2% to 721,000 m3.
The location for satellite connections in Burum has not changed significantly. As a result of improved
registration of the actual gas consumption, an increase of 8% has nevertheless been observed.

Figure 8. Overview of natural gas consumption
The corrected 8 natural gas consumption for the Netherlands decreased to 1,27 million cubic metres (i.e.
by more than 19%). This drop was caused by optimisation and reduction measures. The degree days in
Belgium and Germany are not known, so no correction has been applied to natural gas consumption in
those countries.
Improved settings and replacement

In the summer of 2004, we started optimising the heating behaviour of 320 central heating systems in the
technical buildings by improving the technical settings of equipment and lowering the set temperature
(5ºC). In addition, we replaced older types of central heating systems with new, more efficient ones. KPN
continued these measures in 2005. We often buy smaller systems with a lower capacity now. This way,
the company hopes to save around 1,450,000 m3 of gas per year.
8 The natural gas consumption was corrected based on 'degree days', taking into account the effect of
the outdoor temperature over the years.
9.4.2 Fuel consumption of the vehicle fleet *

In 2005, we achieved a considerable reduction in the fuel consumption. It decreased to 12.8 million litres,
which is a reduction of 9.1% compared to 2004. In 2005, the downward trend in the number of cars
owned by KPN continued. At the end of the year we had 5,834 vehicles. However, the average fuel
consumption per vehicle grew in 2005. More and more cars have air-conditioning systems, while the
national traffic volumes and the number of traffic jams are rising. The total number of kilometres covered
by company cars dropped from 197 to 174 million, a decrease of 11.5%.
In 2005, one of KPN's departments conducted a trial among technicians for the use of a new, more
economical driving style. By changing their behaviour on the road, drivers can save more than 10% in
fuel.
International
Abroad, the vehicle fleet was also reduced by 10% due to changes in the workforce. While the total fuel
consumption decreased (by 12%), the fuel used per kilometre rose.

9.4.3 Electricity *
Compared to 2004, the total electricity consumption by KPN in the Netherlands was reduced by 81 GWh
(gigawatt per hour) to 702 GWh. The majority of the electricity consumption is related to the fixed network
(79%). Offices are responsible for 10% and mobile networks for 9%.
Electricity consumption
We extended our telecommunications services for various operators in 2005, especially in the area of
ADSL. Yet the power consumption in technical buildings showed a slight reduction (4%) thanks to
successful energy savings projects.
According to current views, the new infrastructure of the KPN network will become more efficient with
respect to energy consumption. However, it is not always possible to directly disconnect and dismantle
existing equipment, such as telephone exchanges. This means that during the transition to 'All-IP', dual
system set-ups may be required. This causes a temporary increase in the energy consumption.
The electricity consumption in office buildings decreased by 8% to 68 GWh in 2005. This was related to
the discarding of buildings as well as to reduction measures undertaken during the year, such as
automatically switching off the lights after 6 p.m. in some buildings.
The sales outlets also achieved a reduction in the electricity used for lighting. In the case of satellite
connections, the discarding of certain technologies and the replacement by energy-efficient equipment
play an important role. In addition, we have consistently paid attention to the switching off of (superfluous)
lighting.
Electricity savings
In 2005, KPN started a number of initiatives to realise more efficient power consumption by making better
use of existing equipment and by discarding disused equipment. These initiatives have led to a reduction
of over 6 GWh. In 2004, we started switching off cooling units in technical buildings which were no
longer required. In 2005, 287 units were taken out of operation, which resulted in an estimated reduction
of nearly 6 GWh.
The use of geothermal heat in telecommunications buildings turned out not to be cost-effective, as it
does not provide sufficient heat.

In 2006, we expect to achieve a similar reduction as in 2005. For this purpose KPN will employ an
energy manager for the technical buildings, who will operate on a company-wide basis. Furthermore,
when new office buildings are designed or when they are relocated, we will check whether excessive
energy consumption can be expected.
During the transition to the new IP-based technology, KPN will make use of energy forecast models. This
gives us an indication of the development of the energy consumption during the coming years.
ETNO – Energy benchmark and taskforce

To the operators it applies that the fixed network is by far the main user of electricity. KPN has taken the
initiative to join forces with other operators in Europe in order to find possibilities for further energy
savings. We have done this within the context of ETNO (the European Telecommunications Network
Operators Association). A taskforce was set up, under KPN's supervision, which assembled twice in
2005. On the basis of a benchmark model, the taskforce investigates the best available techniques
among the participants, for example for the most energy-efficient set-up of equipment, cooling concepts
and alternative reduction components. The taskforce is also working on a recommended energy policy for
operators, aimed at further reduction. In addition, it is reviewing the possibilities for joint standards for the
purchasing of equipment.
The European energy taskforce develops initiatives for issuing energy consumption guidelines to
suppliers. If we have a proper insight into the most important energy-consuming elements in the network,
we can make every effort to have our equipment perform as efficiently as possible and ensure that the
energy consumption is reduced to a minimum.
At the end of 2005, KPN started a pilot project for energy monitoring with the aim of analysing the energy
consumption of buildings and calling attention to any deviations from the standard consumption.
International
Abroad, the electricity consumption rose from 224 GWh in 2004 to 299 GWh in 2005. This increase was
a direct consequence of the growing number of mobile transmission sites of E-Plus and BASE. The
replacement of emergency power generators by fixed connections has resulted in an increase as well.
9.4.4 Power generators

The emergency power generators have fuel storage tanks with a capacity of 500 to 30,000 litres of
diesel. The tanks have been installed in technical and office buildings. Compared to 2004, the number of
emergency power generators in the Netherlands dropped by 1% to 585. Abroad, 141 power generators
were being used, which represents a 30% reduction. This reduction was caused by connecting masts to
the public electricity grid, which made support by emergency power generators superfluous. In 2005, the
emergency power generators in the Netherlands and abroad used over a million litres of diesel in total.
9.4.5 District heating

KPN uses district heating in approximately 20 large office buildings in the Netherlands, including our head
office in The Hague. Here, the consumption remained more or less at the same level as in 2004 and was
74.900 Gj.
9.5 Emissions into the air
9.5.1 Greenhouse gas emissions due to energy consumption

The main type of emission into the air is the indirect emission of CO 2 caused by electricity generation in
the power plants from which KPN buys its electricity. Direct CO 2 emission is responsible for a small
share of emissions. This type is caused by the fuel consumption of KPN's cars, the use of emergency
power generators and the combustion of natural gas for heating purposes.

Figure 10. CO2 emissions per energy carrier
The Netherlands
Altogether, the various parts of KPN in the Netherlands emitted 509 ktons of CO 2 in 2005. This is a
reduction of 2% compared to 2004. It was caused by the discarding of buildings, efficiency improvements,
a reduction in the number of staff, a smaller vehicle fleet and an 11.5% reduction in the number of
kilometres covered. The reduction was partly offset by the limited quantity of green energy purchased.
International
The CO 2 emissions generated by our international participating interests grew to 213 kton of CO 2 , which
represents an increase of 29% compared to 2004. The main cause for this was the further expansion of
the UMTS and GSM networks in Germany.
9.5.2 Coolants
Areas that contain a lot of electronic equipment, such as data rooms and telephone exchanges, need
cooling installations to prevent equipment from being damaged. Despite the preventive maintenance work
carried out, coolants may be released as a result of leakage. Leaks sometimes also occur in air-
conditioning systems.
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The table shows that in 2005 the registration of coolant consumption was improved as planned. The
result was a higher figure for the quantity of coolants (30,249) due to better insight and a higher number
of installations in the Netherlands (1,470) due to better registration.
9.5.3 Replacement agents

The Decree on Substances Depleting the Ozone Layer regulates that companies must stop using
chlorine-containing coolants (CFCs and HCFCs). Agents such as R22 will be prohibited after 2015. KPN
is already anticipating this development for cooling units in technical buildings and when new buildings
are constructed or existing buildings are adjusted, we will therefore look for environment-friendly
alternatives. In 2004, KPN had already removed its fire extinguishers that used halon and replaced them
with extinguishing agents based on Ecofoam and CO 2 . In Belgium, argon is sometimes used.
9.6 Emissions into water

The quantity of waste water at KPN is nearly equal to the quantity of water used for in-company facilities.
Due to the reduction in the number of staff, the contamination load was 6% lower than in 2004 and
amounted to 4,224 pollution units (p.u.) in 2005. According to the Household Waste Water (Discharge)
Decree buildings must be connected to a sewage system. Sometimes this is not possible, for instance in
remote areas. KPN keeps track of which buildings are subject to the above-mentioned decree and which
measures are required.
9.6.1 International
In Belgium, the conversion factor used for offices is 0.33 p.u. per FTE. As there is no conversion factor in
Germany, we used the Dutch factor for E-Plus, i.e. 0.253. The contamination load of waste water
discharged at BASE and E-Plus totals 886 p.u.
9.7 Emissions into the soil
9.7.1 Cables
KPN owns cable infrastructures. The underground cables which constitute these infrastructures hardly
generate any emissions into the soil and our policy in this area is aimed at controlling the risk. We
regularly investigate the consequences of cables for the surrounding soil. The most recent study,
performed by KEMA in 2000, indicated that the underground cables are in good condition. It also
appeared that there was no evidence of lead being released from the cables into the surrounding soil.
Before 2010, a follow-up study will take place. See Chapter 8 for general information about KPN's cable
network.
The table below represents the development of the cable network.
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* concerns submarine cables in the Dutch part of the Continental Shelf within the territorial waters.
The reported numbers of copper cables, fibre-optic cables and cable sheaths are based on counts from
the network administration systems. The same source data were used as for the substantiation of
property, plant and equipment concerning the cables of the national network. To determine the lengths of
the cables, KPN performs measurements on 31 May. As a result, this report corresponds with the
numbers of that substantiation. This means that the national roads telecommunications network, the
national emergency network, the LF network and the coaxial carrier network have not been included.
Furthermore, KPN has approximately 8,000 km of international land cables outside the Netherlands. We
will not report on this aspect in more detail here. The numbers of cables of E-Plus and BASE have not
been taken into account either, as they are negligible compared to the number of national land cables.
For the sake of consistency with the multi-annual history of the substantiation of property, plant and

equipment, the number of fibre-optic cables and cable sheaths for the years 2003, 2002 and 2001 have
been adjusted in comparison with previous reports. This substantiation is checked and authorised each
year. The reserve copper cables and the copper cables have now been added together as well. For the
lengths of copper cables, we have not taken the indoor cables into account as these are not considered
underground cables. The cables in the Waddenzee, the IJsselmeer and the waters of the Zeeland
province have been included in the number of copper or fibre-optic cables.
If there is a suspicion that soil may be contaminated, a soil examination will be performed before the
activities will continue. Arrangements will be made for the removal of contaminated soil and the supply of
clean soil.
Cables that will no longer be used will be removed by KPN when the cable trenches concerned are
open. This will occur during the installation of new cables and during maintenance work. We will remove
the cables in accordance with the relevant guidelines for waste disposal.
Submarine cables of the older analogue systems, of which the last one was used until 1986, have
repeaters that contain a very limited amount of radioactive material. They are not harmful for the
environment because they are extremely resistant to external influences. KPN has an overview of these
repeaters and their locations (15 within the territorial waters, i.e. within the 12-mile zone). The repeaters
of all new types of submarine cables (modernised analogue systems and fibre-optic cables) are entirely
free of radioactive material.
Inconvenient locations of underground cables

According to the Rheinisch-Westfälisches Elektrizitätswerk Haarlemmermeergas (RWE) and Netbeheer
Haarlemmermeer (Netb), certain cable sheaths of KPN in the Haarlemmermeer area were located too
close to a gas pipeline. They felt that this could create a dangerous situation. RWE/Netb therefore
instituted legal proceedings against KPN and the court decided in their favour. Consequently, we
relocated the sheaths concerned in 2005 in accordance with the court's judgment.
Prevention of digging incidents

KPN was one of the initiators of the campaign to prevent digging damage which started in 2005. We
have been organising this campaign in collaboration with other cable and pipeline operators, the KLIC
foundation (an information centre for cables and pipelines), building contractors and the Ministry of
Economic Affairs. The purpose of the initiative is to reduce the number of digging incidents in the
Netherlands. In 2006, the effects of the campaign will be evaluated. KPN also sits on the board of KLIC,
a foundation that aims to prevent digging damage, and we are involved in the development of a new
information system for digging activities, called KLIC Online.
9.7.2 Diesel storage in the Netherlands

The total storage capacity of the emergency power generators is 3.2 million litres. The tanks are
inspected every year in accordance with the Storage in Underground Tanks Decree. In 2005, we
experienced one incident with a leaking tank. The site concerned has been decontaminated.
9.7.3 Diesel storage abroad

KPN's international locations have a total of 143 storage tanks, all above ground. The total storage
capacity is 146,000 litres. Because more base stations have been connected to the electricity grid, less
emergency power generators were used abroad. This led to a reduction in the diesel consumption and in
the use of diesel tanks in the year under review.
9.8 Waste *
To determine the total quantity of waste that has been re-used or offered for other useful application,
KPN uses the processing categories of the Ministry of Housing, Spatial Planning and the Environment
(VROM). In 2005, 42% of waste was re-used. In addition, 57% of all waste was incinerated with recovery
of energy. These percentages do not include incidental waste streams and waste streams from
dismantling projects at telephone exchanges. Less than 1% of waste ended up on landfill sites. The table
below provides a complete overview of waste streams.
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of energy. These percentages do not include incidental waste streams and waste streams from
dismantling projects at telephone exchanges. Less than 1% of waste ended up on landfill sites. The table
below provides a complete overview of waste streams.
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* in 2005, a correction was made because now the amounts of dismantling projects have also been
included.
More information on the waste streams in Table 14 and Figure 11 can be found below.
Figure 11. Collected waste in the Netherlands
Facility waste is released by offices and some technical buildings. Compared to 2004, the total amount of
facility waste in the Netherlands decreased by 26% due to the lower number of employees as well as to
the disposal of offices.
Hazardous waste comprises batteries, (leaded) accumulators, scrapped electronics, gas discharge lamps
and small hazardous waste from offices. The quantity of hazardous waste was up by 60% in 2005. Due
to dismantling operations, asbestos-containing equipment was released. This equipment was removed
separately taking due account of all safety regulations.
Cable remnants and disused cables are delivered to selected waste processors that ensure that as much
waste as possible is re-used or recycled. Thanks to better registration, the quantity of collected materials
was higher in 2005 than in 2004. The reason for this was that the waste streams collected and
processed on behalf of KPN by third parties were included
 as well this year.
to dismantling operations, asbestos-containing equipment was released. This equipment was removed
separately taking due account of all safety regulations.
Cable remnants and disused cables are delivered to selected waste processors that ensure that as much
waste as possible is re-used or recycled. Thanks to better registration, the quantity of collected materials
was higher in 2005 than in 2004. The reason for this was that the waste streams collected and
processed on behalf of KPN by third parties were included as well this year.
We performed a dismantling project for disused telecom equipment in the network. In this project, the
main contractor was responsible for leak-free removal of technical in-company waste. This is the first
time we have included these numbers in the report. That explains the increase compared to 2004. During
the dismantling project we investigated how areas could be cleared and how disused equipment could be
removed in a responsible manner. Where possible, waste materials were re-used. Part of the waste was
processed in an environmentally responsible way via a licensed waste processing company (Mirec).
The so-called process waste includes wood, rubble, construction waste and demolition waste. Process
waste released can be re-used in its entirety. As a result of various projects, the amount of process
waste increased strongly compared to 2004 (by 400%).
The stream of commercial waste mainly comprises used handsets. In 2005, KPN discharged 26 tons,
which was a decrease of over 36% compared to 2004. We can distinguish two types of waste here, i.e. a
direct and an indirect stream. The direct stream of commercial waste consists of handsets which cannot
be returned to suppliers. The retail outlets send these handsets to the recycling company, Mirec. This
organisation also processes the indirect stream. These are the handsets from the regional transfer
stations. In addition, the sales outlets dispose of returned, defective and unsaleable products. If handsets
can be used again in any way, they will be sent to Shields Environmental in the U.K.
In 2005, the average recycling percentage was 93.5. For handsets it was 100.
9.8.1 Disposal streets

In 2004, we evaluated the results of a disposal street experiment at technical buildings. The trial was
conducted in one of the districts. In 2005, disposal street were introduced in the other districts as well.
9.8.2 Developments in the waste streams

As a result of innovations in our network, the volumes of certain waste streams will increase in the
coming years. This concerns the dismantling and removal of discarded equipment, for example. At KPN
we have documented our working methods for this purpose in the Waste Removal document. This
document only relates to technical buildings.


Global Reports LLC
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To the readers of the 2005 Koninklijke KPN N.V. sustainability report.
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The management of Koninklijke KPN N.V. has asked us to provide assurance on selected information in
the 2005 sustainability report (hereinafter: the report) of Koninklijke KPN N.V. The management of
Koninklijke KPN N.V. is responsible for the preparation of the report, including determining the issues to
be reported. It is our responsibility to provide an assurance report with the selected information.
��

The Koninklijke KPN N.V. report describes the efforts and achievements of Koninklijke KPN N.V. in the
area of corporate social responsibility. KPN have requested us to provide a reasonable degree of
assurance selected information. A * near the title denotes that assurance is guaranteed in a particular
area. This concerns the following information in relation to 2005:
In relation to all Koninklijke KPN N.V. activities:
Foreword by the Executive Board Chairman and CEO;

KPN and Corporate Social Responsibly (CSR) in chapter 1;
Financial key figures as stated in section 2.4.
In relation to all Koninklijke KPN N.V. activities:
The clients: customer satisfaction survey (subsection 3.1.1) and advertising (subsection 3.1.6);
Staff: number of employees, staff motivation (subsection 5.1.4) mobility (subsection 5.1.6),
Health and Safety Inspectorate (subsection 5.2.3) and absenteeism and incidental proceedings
(subsection 5.2.4);
Social involvement, social sponsoring, other sponsoring activities and art collection and
commissioned art (sections 6.1, 6.2 and 6.5);
Products and services: target group (section 7.2), respect for privacy (section 7.4);
Management and environment : natural gas (section 9.4.1), fuel consumption of the vehicle
fleet (section 9.5), electricity (section 9.4.1) and waste (section 9.6) in 2005;
The words "presented accurately" mean that the information in the report is properly based on the
underlying source of information, so that the report corresponds with the source of information.
��

We performed this engagement in accordance with the "International Standard for Assurance
Engagements ISAE 3000: ��
��" issued by the “International Auditing and Assurance Standards Board”. These standards
require, among other things, that:
the members of the assurance team have the specific knowledge, skills and professional
competence that are required to understand and assess the information contained in the
report, and that these members satisfy the requirements of the Ethical Code for Professional
Accountants set by the IFAC to guarantee their independence;
when providing limited assurance, which is less than reasonable assurance, the conclusion
should be presented in a negative formulation.
There are no generally accepted guidelines for reports in the field of CSR. For the selection of subjects
Koninklijke KPN N.V. bases its choice on Appendix Cof the GRI-code of recommended practice.
should be presented in a negative formulation.
There are no generally accepted guidelines for reports in the field of CSR. For the selection of subjects
Koninklijke KPN N.V. bases its choice on Appendix C of the GRI-code of recommended practice.
��

Generally, the accuracy of the non-financial information in the report is inherently restricted because of
the nature of this information and the methods used for measuring, calculating or estimating it.
To gain a thorough understanding of the financial results and the financial position of the Koninklijke KPN
N.V., the reader should refer to the audited 2005 financial statements.
��
For the information which was published in the report identified in 'Context and scope' above we have
carried out the following activities:
Conducting media and internet analysis of environmental, safety and social issues in relation to
KPN to increase our understanding of the relevant sustainability aspects and issues during the
period under review;
Conducting interviews with employees of KPN who are responsible for supplying information;
The assessment of the aim and operation of the systems and methods of collecting and
processing information, including the aggregation of details for information in the report;
The implementation of a statistical analysis for the 2005 details regarding energy and waste;
The gathering and reviewing of internal and external reports to ascertain whether the
information in the report is properly substantiated;
The verification of consistency with external information such as the 2004 and 2005 annual
reports.
During our review we discussed necessary changes in the draft report with Koninklijke KPN N.V. and
determined that these changes are properly incorporated in the final version.
��
Our activities do not show that the information specified under 'Context and scope' in the report, is
incorrectly presented.
��
Our review of the report has produced findings that do not affect the tenor of our assurance report, but
that are important for the further improvement of the report. A number of issues that deserve attention in
this context are:
��
Koninklijke KPN N.V. discloses in the report that operational aims are formulated on the basis of a vision
and mission. These aims and the related 2005 results are not fully explained in this report. Reference to
future aims is also omitted. One of the criteria of GRI is that aims must be reported (where possible) so
that the user has understanding of possible future developments. We recommend that aims be clearly
listed in future reports, and annual information be reported regarding the realisation of these aims.
��
Koninklijke KPN N.V states that its report is based on the general guidelines of the GRI, explained in
more detail in section 1.4.
In the report principles such as those stated in part B of the GRI guidelines are not explicitly an issue.

We advise future reports to pay explicit attention to these principles when compiling the report. We also
advise making further use of the GRI “Sector Supplement for Telecommunications”, to ensure that all
relevant subjects are, in accordance with GRI, covered in the report and some subjects (such as supply
chain) receive more attention than they do in the current report.
Amstelveen, 6 April 2006

KPMG
W. Bartels Director
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 KPN’s operations and the environment 

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