The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I've got 2, please. Firstly on roaming, could you indicate how much roaming costs you as a percentage of EBITDA or revenues or in
absolute terms, what the exposure here is? And if you are a net payer? So that was the first question.
The second question is just on potential for optimizing working capital. I mean this seems to have become more of a focus area for
you now. And certainly, I mean the work we've done suggest that your supplier payment terms are -- have scope for improvement
here. So is -- taking into account the potential headwinds from COVID, I mean is there a potential for you to do something on working
capital to improve the cash conversion run rate?
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APRIL 30, 2020 / 11:00AM, KPN.AS - Q1 2020 Koninklijke KPN NV Earnings Call
Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Sorry. And on the business segment, I mean, is there a risk of -- I mean some of your peers have indicated that international calling
traffic revenues have been significantly impacted.
Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Great. Just one follow-up on that. I mean you mentioned that in Q1, the FttH kind of headwind on working capital was around EUR
8 million. Could you give an indication, given the -- that you've indicated you're going to be spending EUR 300 million on FttH and
accrued CapEx, what the working capital kind of impact of that would be this year?
Question: Roman Arbuzov - JP Morgan Chase & Co, Research Division - Analyst
: I had 2, please. So the first one is just continuing the topic of customer losses, which you've already provided some very helpful color
on. So the question is, with COVID environment, perhaps the customer starts to become somewhat more price-sensitive. So is this
a concern for you at all? And also in this environment, presumably becomes harder for you to manage the Telfort broadband customer
base migration as well. And in this light, what are the tools that you have at your disposal to become more competitive at the lower
end of the market, especially if people are chasing basically attractive price deals? That's the first one.
The second one is just a clarification on CapEx. I think the industry discussion so far in the context of coronavirus has been that CapEx
is going to decline, mostly in the mobile side. I guess what we're hearing today is that you may actually increase CapEx, if I understood
you correctly. I mean you do see opportunities in the fiber side to deploy more capital. So can you just elaborate a little bit more on
that side? For example, do you mean to say that you will spend a bit less on mobile, increase your fiber spend, thereby, you'll keep
your EUR 1.1 billion envelope? Or is there upside risk to CapEx so that you can take advantage of the fiber opportunity this year?
Question: Roman Arbuzov - JP Morgan Chase & Co, Research Division - Analyst
: And sorry, and just a follow-up, where do these opportunities come from? Is it the fact that there is just more spare capacity in the
construction sector? Is that the kind of current bottleneck that will be less of a factor going forward? And also the third-party
partnerships in fiber, how big of an opportunity is that, please?
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