Exhibit 99(a)(5)(xviii)
From: Rodenburg, J.J. (Jan) (KPNCC M&A Management)
Sent: Tuesday, June 02, 2009 2:37:17 PM
To: Manning, Matthew; Kadaba, Arvind (IBD)
Cc: Braat, D. (Daniel) (KPNCC M&A Management); House, M. (Matthew) (KPNCC M&A Management)
Subject: Celtic - Business Case
Attachments: 090602 Project Celtic - Business Case v_senttoMS_2.xls
Matt, Arvind,
Please find attached the updated version of the business case as discussed over the phone with Matthew.
Let me know should you have any questions.
Thanks and regards,
Jan
_______________________________________
Jan Rodenburg
KPN Royal Dutch Telecom
Mergers & Acquisitions
Maanplein 55
2516 CK The Hague
The Netherlands
Tel: +31 70 343 4861
Mob: +31 6 4714 2925
Email: HYPERLINK “mailto:jan.rodenburg@kpn.com”jan.rodenburg@kpn.com
JX 103 | |
| Confidential | KPN00080076 |
AUTOPATH Mergers and Acquisitions Project Celtic - Business Case Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Q1 2008 Revenue and margin drivers Minutes of Use (in bn) Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Total minutes of use Growth Q/Q Growth Y/Y Price per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate price per minute Growth Q/Q Growth Y/Y Cost per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate cost per minute Growth Q/Q Growth Y/Y Margin per minute Wholesale Margin Outsourced Margin Retail Margin Total Margin per minute Margin Strictly private and confidential Page 1 of 15 Print date: AUTODATE Confidential KPN00080077
AUTOPATH Mergers and Acquisitions P&L Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Q1 2008 Revenue Wholesale Outsourced Retail Total revenue Growth Y/Y Cost of sale Wholesale Outsourced Retail Total cost of sale Gross profit Wholesale Outsourced Retail Total gross profit Margin Operating expenses Research & Development % of revenue SG&A % of revenue Total Opex % of revenue Stock-based compensation EBITDA Margin D&A PPE % of revenue Amortization intangibles % of revenue Depreciation & Amortization % of revenue EBIT Margin Taxes on EBIT Tax rate Interest income Interest expense Taxes paid Implied tax rate Net income Cash flow Capex (Cumulative for year) Capex (Period) Strictly private and confidential Page 2 of 15 Print date: AUTODATE Confidential KPN00080078
AUTOPATH | Mergers and Acquisitions [kpn logo] | |||||||||||
| A | B | C | D | E | F | G | H | I | J | K | L | |
| 4 | �� | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | 2007 | Q1 2008 | |||||
| 119 | % of sales | 1.7% | ||||||||||
| 120 | ||||||||||||
| 121 | EBITDA less capex | 5.0 | ||||||||||
| Strictly private and confidential | Page 3 of 15 | Print date: AUTODATE |
| Confidential | KPN00080079 |
AUTOPATH Mergers and Acquisitions Project Celtic - Business Case Q2 2008 Q3 2008 Q4 2008 2008 Q1 2009 Q2 2009 Q3 2009 Revenue and margin drivers Minutes of Use (in bn) Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Total minutes of use Growth Q/Q Growth Y/Y Price per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate price per minute Growth Q/Q Growth Y/Y Cost per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate cost per minute Growth Q/Q Growth Y/Y Margin per minute Wholesale Margin Outsourced Margin Retail Margin Total Margin per minute Margin Strictly private and confidential Page 4 of 15 Print date: AUTODATE Confidential KPN00080080
AUTOPATH Mergers and Acquisitions P&L Q2 2008 Q3 2008 Q4 2008 2008 Q1 2009 Q2 2009 Q3 2009 Revenue Wholesale Outsourced Retail Total revenue Growth Y/Y Cost of sale Wholesale Outsourced Retail Total Cost of sale Gross profit Wholesale Outsourced Retail Total gross profit Margin Operating expenses Research & Development % of revenue SG&A % of revenue Total Opex % of revenue Stock-based compensation EBITDA Margin D&A PPE % of revenue Amortization intangibles % of revenue Depreciation & Amortization % of revenue EBIT Margin Taxes on EBIT Tax rate Interest income Interest expense Taxes paid Implied tax rate Net income Cash flow Capex (Cumulative for year) Capex (Period) Strictly private and confidential Page 5 of 15 Print date: AUTODATE Confidential KPN00080081
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
| B | C | D | E | F | M | N | O | P | Q | R | S | |
| 4 | Q2 2008 | Q3 2008 | Q4 2008 | 2008 | Q1 2009 | Q2 2009 | Q3 2009 | |||||
| 119 | % of sales | 0.4% | 0.9% | 2.0% | 1.2% | 0.6% | 1.4% | 1.4% | ||||
| 120 | ||||||||||||
| 121 | EBITDA less capex | 10.6 | 6.6 | 1.6 | 23.8 | 7.5 | 5.5 | 6.3 |
| Strictly private and confidential | Page 6 of 15 | Print date: AUTODATE |
| Confidential | KPN00080082 |
AUTOPATH Mergers and Acquisitions Project Celtic - Business Case Q4 2009 2009 2010 2011 2012 2013 2014 Revenue and margin drivers Minutes of Use (in bn) Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Total minutes of use Growth Q/Q Growth Y/Y Price per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate price per minute Growth Q/Q Growth Y/Y Cost per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate cost per minute Growth Q/Q Growth Y/Y Margin per minute Wholesale Margin Outsourced Margin Retail Margin Total Margin per minute Margin Strictly private and confidential Page 7 of 15 Print date: AUTODATE Confidential KPN00080083
AUTOPATH Mergers and Acquisitions P&L Q4 2009 2009 2010 2011 2012 2013 2014 Revenue Wholesale Outsourced Retail Total revenue Growth Y/Y Cost of sale Wholesale Outsourced Retail Total cost of sale Gross profit Wholesale Outsourced Retail Total gross profit Margin Operating expenses Research & Development % of revenue SG&A % of revenue Total Opex % of revenue Stock-based compensation EBITDA Margin D&A PPE % of revenue Amortization intangibles % of revenue Depreciation & Amortization % of revenue EBIT Margin Taxes on EBIT Tax rate Interest income Interest expense Taxes paid Implied tax rate Net income Cash flow Capex (Cumulative for year) Capex (Period) Strictly private and confidential Page 8 of 15 Print date: AUTODATE Confidential KPN00080084
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
| B | C | D | E | F | T | U | V | W | X | Y | Z | |
| 4 | Q4 2009 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||
| 119 | % of sales | 1.4% | 1.2% | 1.2% | 1.2% | 1.2% | 1.2% | 1.2% | ||||
| 120 | ||||||||||||
| 121 | EBITDA less capex | 7.1 | 26.4 | 22.6 | 21.2 | 19.0 | 17.1 | 17.0 |
| Strictly private and confidential | Page 9 of 15 | Print date: AUTODATE |
| Confidential | KPN00080085 |
AUTOPATH Mergers and Acquisitions Project Celtic - Business Case 2015 2016 2017 2018 9-year CAGR Revenue and margin drivers Minutes of Use (in bn) Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Total minutes of use Growth Q/Q Growth Y/Y Price per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate price per minute Growth Q/Q Growth Y/Y Cost per minute Wholesale Growth Q/Q Growth Y/Y Outsourced Growth Q/Q Growth Y/Y Retail Growth Q/Q Growth Y/Y Aggregate cost per minute Growth Q/Q Growth Y/Y Margin per minute Wholesale Margin Outsourced Margin Retail Margin Total Margin per minute Margin Strictly private and confidential Page 10 of 15 Print date: AUTODATE Confidential KPN00080086
AUTOPATH Mergers and Acquisitions P&L 2015 2016 2017 2018 9-year CAGR Revenue Wholesale Outsourced Retail Total revenue Growth Y/Y Cost of sale Wholesale Outsourced Retail Total cost of sale Gross profit Wholesale Outsourced Retail Total gross profit Margin Operating expenses Research & Development % of revenue SG&A % of revenue Total Opex % of revenue Stock-based compensation EBITDA Margin D&A PPE % of revenue Amortization intangibles % of revenue Depreciation & Amortization % of revenue EBIT Margin Taxes on EBIT Tax rate Interest income Interest expense Taxes paid Implied tax rate Net income Cash flow Capex (Cumulative for year) Capex (Period) Strictly private and confidential Page 11 of 15 Print date: AUTODATE Confidential KPN00080087
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
| B | C | D | E | F | AA | AB | AC | AD | AE | |
| 4 | 2015 | 2016 | 2017 | 2018 | 9-year CAGR | |||||
| 119 | % of sales | 1.2% | 1.2% | 1.2% | 1.2% | |||||
| 120 | ||||||||||
| 121 | EBITDA less capex | 17.2 | 17.5 | 17.8 | 18.1 |
| Strictly private and confidential | Page 12 of 15 | Print date: AUTODATE |
| Confidential | KPN00080088 |
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
Cell: L8
Comment: Jan Rodenburg:
IBAS press release (all Q’s)
Cell: L11
Comment: Jan Rodenburg:
IBAS press release (all Q’s)
Cell: L14
Comment: Jan Rodenburg:
IBAS press release (all Q’s)
Cell: G17
Comment: Jan Rodenburg:
Jefferies
Cell: G31
Comment: Jan Rodenburg:
Jefferies
Cell: Q31
Comment: Jan Rodenburg:
IBAS press release
Cell: Q45
Comment: Jan Rodenburg:
IBAS press release
Cell: G62
Comment: Jan Rodenburg:
Jefferies
Cell: L62
Comment: Jan Rodenburg:
Jefferies (all Q’s)
Cell: Q62
Comment: Jan Rodenburg:
IBAS press release
Cell: L63
Comment: Jan Rodenburg:
Jefferies (all Q’s)
Cell: Q63
Comment: Jan Rodenburg:
IBAS press release
Cell: L64
Comment: Jan Rodenburg:
Jefferies (all Q’s)
Cell: Q64
Comment: Jan Rodenburg:
IBAS press release
Cell: L69
Comment: Jan Rodenburg:
Jefferies (all Q’s)
Cell: L70
Comment: Jan Rodenburg:
Jefferies (all Q’s)
Cell: L71
Comment: Jan Rodenburg:
Jefferies (all Q’s)
| Strictly private and confidential | Page 13 of 15 | Print date: AUTODATE |
| Confidential | KPN00080089 |
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
Cell: Q75
Comment: Jan Rodenburg:
IBAS press release
Cell: Q76
Comment: Jan Rodenburg:
IBAS press release
Cell: Q77
Comment: Jan Rodenburg:
IBAS press release
Cell: L82
Comment: Jan Rodenburg:
Jefferies
Cell: M82
Comment: Jan Rodenburg:
Jefferies
Cell: N82
Comment: Jan Rodenburg:
Jefferies
Cell: O82
Comment: Jan Rodenburg:
Jefferies
Cell: L86
Comment: Jan Rodenburg:
Jefferies
Cell: M86
Comment: Jan Rodenburg:
Jefferies
Cell: N86
Comment: Jan Rodenburg:
Jefferies
Cell: O86
Comment: Jan Rodenburg:
Jefferies
Cell: V91
Comment: Jan Rodenburg:
Jefferies forecast
Cell: W91
Comment: Jan Rodenburg:
Jefferies forecast
Cell: X91
Comment: Jan Rodenburg:
Jefferies forecast
Cell: Y91
Comment: Jan Rodenburg:
Jefferies forecast
Cell: Z91
Comment: Jan Rodenburg:
Jefferies forecast
Cell: P97
Comment: Jan Rodenburg:
10K ’08 page 88
| Strictly private and confidential | Page 14 of 15 | Print date: AUTODATE |
| Confidential | KPN00080090 |
| AUTOPATH | Mergers and Acquisitions [kpn logo] |
Cell: U97
Comment: Jan Rodenburg:
Set equal to capex
Cell: U99
Comment: Jan Rodenburg:
10K ’08 page 89
Cell: V99
Comment: Jan Rodenburg:
10K ’08 page 89
Cell: W99
Comment: Jan Rodenburg:
10K ’08 page 89
Cell: X99
Comment: Jan Rodenburg:
10K ’08 page 89
Cell: Y99
Comment: Jan Rodenburg:
10K ’08 page 89
Cell: P101
Comment: Jan Rodenburg:
10K ’08 page 67
Cell: K111
Comment: Jan Rodenburg:
10K ’08 page 52
Cell: P111
Comment: Jan Rodenburg:
10K ’08 page 52
Cell: U118
Comment: Jan Rodenburg:
Company guidance
| Strictly private and confidential | Page 15 of 15 | Print date: AUTODATE |
| Confidential | KPN00080091 |