Roadshow presentation Q2 2013

1

Detailed segment results Consumer – slide 27

Enterprise – slide 34

SDE&W/S&S slide 40-41

BICS – slide 42 Other topics

Shareholder structure – slide 44

Shareholder remuneration – slide 45

Spectrum – slide 46

Pricing – slide 47

Regulation & Legal – slide 52

Macro –slide 56

Belgacom Presentation Q2 2013 results Roadshow September 2013

Financial highlights

Executive summary – slide 3

Revenue – slide 5

Direct margin – slide 6

Non-HR expenses - slide 7

HR expenses – slide 8

EBITDA – slide 9

Capex – slide 10

FCF/FIN POS – slide 11-12

Balance sheet – slide 13

P&L – slide 14

Operational highlights

Executive summary – slide 15

Mobile – slide 16

Fixed – slide 20

Convergence – slide 21

Network – slide 22

Cautionary Statement

Slide 2

“This communication might include some forward-looking statements, without limitation, regarding Belgacom’s financial or operational results, certain strategic plans or objectives, macro-economic trends, regulation, future market conditions and other risk factors. These forward-looking statements rely on a number of assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside Belgacom’s control. Therefore the actual future results may differ materially from those expressed in or implied by the statements.

Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.

Belgacom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.“

Executive summary- financials Q2 2013

Slide 3

- Group revenue: € 1,583m; -1.7%* YoY

- Group ebitda: € 430m, -1.9%* YoY

- Group capex: € 177m, +2.1% YoY

- Pressure on Mobile revenue fairly stable to Q1

- Successful mobile retention/acquisition actions

- Solid performance of Belgacom’s Fixed business

- Good cost containment

- Regulation impact on Group revenue estimated at €

-30m (-1.8%), EBITDA by € -20m (-4.6%), for larger

part within EBU due to data roaming price cap.

*Including a one-off accounting adjustment recorded in Q2 2012 which reduced the revenue by € 12 million and EBITDA by € 34 million in 2012

Financial results Q2 on track to

meet FY guidance

Well positioned to face

challenging market

dynamics

Regulatory measures

significantly impacting financials

FY 2013 guidance reiterated

Metrics FY 2013 outlook

H1 2013 reported

Group revenue

Decline between

-1% and -2%

-0.9%

Group EBITDA* Decline between -4% and -6%

-4.1%

Capex/Revenue Between 13% and 14%

11.7%

Slide 4

* Compared to the restated 2012 EBITDA of € 1,801 m, following the retrospective application of IAS19R

H1 2013 Group revenue (mio €)

Slide 5

Q2 2013 Group revenue (mio €)

H1 2013 Group direct margin (mio €)

Slide 6

Q2 2013 Group direct margin (mio €)

213

232226 224

217

256

218 225

150

160

170

180

190

200

210

220

230

240

250

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Non-HR expenses Cost management limiting impact of commercial push

+0.7%

Consumer

Enterprise

Business Unit

Business Unit

Quarterly Non-HR expenses ( € million)

Slide 7

SDE & W

- Q2’13 non-HR expenses of € 225m

- Company-wide cost containment

nearly offset the impact from the

increased commercial activity in the

second quarter 2013.

Q2’13 non-HR expenses of € 74 m, up 1.0% mainly driven by the focus on Mobile acquisition, partly offset by cost management

Q2’13 non-HR expenses of € 37m, 5.9% lower compared to the same period of 2012 showing effect from solid cost containment.

5.2% higher non-HR YoY to €52m including resources to support simplification projects

278 283 278 281290

278290 283

150

170

190

210

230

250

270

290

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Quarterly HR-expenses (€ million)

5000

10000

15000

20000

25000

YE96 YE98 YE00 YE02 YE04 YE06 YE08 YE10 YE12

Belgacom headcount in FTE

HR expenses Salary indexation partly offset by one-off provision reversal and lower headcount

+0.6%

15,778 FTEs end June’13 (-216 FTE YoY) Civil Servants decreased to 33% of total headcount

Estimated cash-out for termination benefits

EUR million

2013 80

2014 49

2015 21

2016 6

2017 6

2018-2033 21*

(* Cumulative for full period)

PTS -6,300 FTE

BeST -4,160 FTE

2006-2012 Tutorship & FMS -3,900

FTE

Jan ‘12 : The Phone House

+518 FTE*

Telindus +2,600 FTE

15,778

Slide 8 *As part of the agreement with the Competition Council, Belgacom sold some of the Phone House shops in Nov’12, which lowered the headcount accordingly.

Mach 2012 & Jan 2013:

2% inflation based salary

indexation

H1 2013 Group Ebitda (mio €)

Slide 9

Q2 2013 Group Ebitda (mio €)

Invest in high-quality fixed & mobile network to maintain leadership in convergence

Slide 10

734 777 753

11.1%12.1% 11.7%

0

100

200

300

400

500

600

700

800

900

0%

2%

4%

6%

8%

10%

12%

14%

2010 2011 2012 Outlook 2013

Group Capex in € million / % of revenue

13%-14%

*This does not include capex for a potential bidding in the 800 Mhz spectrum auction that is planned before year-end

174 177

10.8% 11.2%

Q2'12 Q2'13

Accelerated network investments - maintain network superiority on

mobile speed and coverage, - substantially increase the

bandwidth on fixed network via dlm and vectoring technology

- make operations leaner through a simplified network

409

797

980

788691

289

136

2008 2009 2010 2011 2012 Ytd June'12 Ytd June'13

Free Cash Flow (in mio € )

Q2’13 Free Cash Flow of € 47 million, impacted by income tax payments and lower ebitda

Slide 11

Lower FCF result of: • a timing difference in

income tax payments • lower EBITDA

(in mio € )

2012 IAS

Res ta ted

2013

var.

20 12 IAS

Res ta ted

2013

var.

Operating CF before working capital changes 379 366 -13 771 730 -41

CF for Working capital -95 -142 -47 -101 -235 -134

Net cash used in investing activities -174 -177 -3 -381 -359 22

Free Cas h Flo w 110 47 -63 28 9 136 -153

Q2 H1

(1,601)136 (538)

(38) 14 (1) (2,027)

Net debtDecember 2012

FCF Dividends Non controllinginterests

Net sale oftreasury shares

Other Net debt June2013

Sound financial position

Slide 12

- Net financial debt at € 2,027m, € 426m higher versus end 2012

- The outstanding long term financial gross debt amounted to € 2.1Bio

- Credit ratings: Standard & Poor’s A; Moody’s A1 – both stable outlook

Debt maturing

2013 € 127m

2015 € 145m

2016 € 950m

2018 € 500m

2023 € 100m

2028 € 150m

2026 € 73m

- Belgacom has an € 2,500m Bonds EMTN Program with an outstanding amount of € 1,825m.

Belgacom consolidated balance sheet

• Shareholders’ equity decreased from € 2,881m end 2012 to € 2,680m in June. This results from the 2012 dividend payment, typically exceeding the net income generated over the first six months of the year.

Slide 13 * The 2012 financial figures have been restated after the adoption of the IAS 19R revision

31-Dec 30-Jun

(EUR million) 2012 2013

TOTAL ASSETS 8,243 8,196 Non-recurrent assets 6,192 6,116

Goodwill 2,339 2,339

Intangible assets with finite useful life 1,097 1,067

Property, plant and equipment 2,467 2,475

Investments in associates 1 1

Other participating interests 7 6

Deferred income tax assets 147 128

Pension and other non-current assets 134 101

Current assets 2,051 2,080

Inventories 133 147

Trade receivables 1,341 1,329

Current income tax assets & other current assets 292 324

Investments 83 61

Cash and cash equivalents 202 219

LIABILITIES AND EQUITY 8,243 8,196

Equity 3,093 2,865

Shareholders' equity 2,881 2,680

Minority interests 211 185

Non-current liabilities 2,678 2,846

Interest-bearing liabilities 1,761 1,974

Pensions and other post-employment benefits 570 528

Provisions 203 203

Deferred tax liabilities and other amounts payable 144 141

Current liabilities 2,472 2,485

Interest-bearing liabilities 215 391

Trade payables 1,310 1,260

Income tax payable 236 105

Other current payables 711 730

Group – quarterly P&L

Slide 14

* The 2012 financial figures have been restated after the adoption of the IAS 19R revision

VARQ2/Q2

Revenues (1) 1,588 1,6 11 1,620 1,644 6 ,462 1,586 1,583 -1.7%

Total OPEX -1,118 -1,172 -1,156 -1,215 -4,661 -1,144 -1,153 -1.7%

Costs of materials and charges to revenues-614 -667 -649 -680 -2,611 -637 -645 -3.4%

Personnel expenses and pensions-278 -281 -290 -278 -1,126 -290 -283 0.6%

Other operating expenses -226 -224 -217 -256 -924 -218 -225 0.7%

EBITDA (1) 470 438 464 429 1,801 441 430 -1.9%

EBITDA margin (1) 29.6% 27.2% 28.6% 26.1% 27.9% 27.8% 27.2% 0.0 pp

Non recurring items 0 -10 -1 -4 -15 0 0 -

Depreciation -181 -188 -185 -194 -748 -192 -200 6.8%

EBIT (incl. NR) 289 240 278 231 1,038 250 230 -4.4%

Financial result -22 -26 -54 -28 -131 -20 -24 -7.0%

Tax expense -65 -48 -34 -30 -177 -53 -44 -8.1%

Net income (Group) 199 16 1 184 168 712 171 155 -3.5%

Non-controlling interest 3 5 5 5 19 5 6 -

Earnings/share in € 0.63 0.5 1 0.58 0.53 2.24 0.54 0.49 -3.6%

Earnings/share in € (excl. NR) 0.63 0.53 0.58 0.54 2.27 0.54 0.49 -7.7%

Restated

(1) before non-recurring items

in mio € Q112 Q212 Q312 Q412 FY 2012 Q113 Q212

Executive summary- operationals Q2 2013

Slide 15

+16,000 TV + 5,000 Internet

+ 19,000 PACKS

+128,000 Postpaid

-82,000 Prepaid

- TV customer base grew by 16,000

in Q1, of which 14,000 HH, in line

with previous quarter. Total TV

customer base of 1,428,000

- BB customer base end June

’13 at 1,652,000

- Packs continued to grow. Total end

June’13 at 1,278,000

- Total Group mobile customer base of 5,410,000 - Strong Mobile Postpaid net adds, growing Belgacom’s

postpaid customer base to 3,570,000.

- Prepaid customer base lower, in shrinking prepaid market,

reaching 1,837,000 prepaid cards end June’13

+ 46,000 Mobile cards

- 39,000 Fixed Voice

- Fixed voice customer base

end June ’13 at 3,002,000

Retention actions stabilised mobile churn, positive trend seen in Q1 continued

Slide 16

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

postpaid

prepaid

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Clear effect New

telecom law

effect in EBU much less

pronounced

Consumer Mobile Churn

Enterprise Mobile Churn

Focus on mobile in H1 through positioning of Proximus network quality, proactive

retention and acquisition actions

> 60% postpaid

customers on new

mobile tariff plan

40.4%

30.5%

23.6%

5.5%

Q2’13 Focus on Mobile acquisition

Slide 17

45

-39

-88

-52

46

5,543 5,504 5,416 5,364 5,410

4,000

4,200

4,400

4,600

4,800

5,000

5,200

5,400

5,600

-100

-80

-60

-40

-20

0

20

40

60

80

100

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Mobile customer evolution2

net adds total

89

41

-16

61

128

-44-80 -72

-113-82

-120

-70

-20

30

80

130

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Split Postpaid - Prepaid

Net adds Postpaid Net adds Prepaid & MVNO

- Belgacom Group added 46,000 mobile customers in Q2’13, with Postpaid growing by

128,000

50

17

-37

26

93

-44

-80 -68

-108-82

-150

-100

-50

0

50

100

150

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Net adds Consumer Prepaid

Net adds Consumer Postpaid

36

2116

3033

0

5

10

15

20

25

30

35

40

45

50

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

EBU Net Adds

Mobile

market share₁

+Tango

Supported by tactical joint offers & strong

marketing actions

1 Active mobile cards 2 Mobile active customers including mobile customers Luxembourg, and including mobile data cards.

Mobile offers became more abundant and have been simplified

Positioning Scarlet as no frills brand, with very attractive pricing for ‘price seekers’

Feb-13 June-13 Aug-13

Launch

prepaid offer

Launch

postpaid offer

Launch

3-play offer

Evolution of comparable

offers

Since the Telco law came into force, the Consumer

Postpaid ARPU decline clearly accelerated. Initial loss high-value postpaid customers

Re-pricing effect ( ~60% of the Postpaid customer

base has been re-priced to new tariffs)

Prepaid (lower ARPU) moving to Postpaid

In contrary, the Prepaid ARPU was not impacted by

the new Telco Law.

Clear Postpaid ARPU impact, while Prepaid ARPU remains fairly stable

27.3 €28.9 €

26.6 €24.1 € 24.4 €

14.2 € 13.6 € 14.4 € 13.3 € 14.0 €

.0070 €

.0120 €

.0170 €

.0220 €

.0270 €

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Consumer blended ARPU: Split Prepaid - Postpaid

BlendedPostpaid

ARPU

BlendedPrepaid

ARPU

37.2 € 35.5 € 33.9 €31.5 € 30.8 €

0.0 €

0.0 €

0.0 €

0.0 €

0.0 €

0.0 €

0.0 €

0.0 €

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Enterprise blended ARPU

The Enterprise Business experiences a more general

ARPU decline driven by: Regulation

More abundant offers

Churn of high-usage customers in the last quarter of ‘12

Slide 19

Belgacom44%

Cable 49%

Other 7%

Solid performance of fixed products

3532 31

14 14

1,301 1,3401,386 1,412 1,428

400

600

800

1,000

1,200

1,400

1,600

0

20

40

60

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

TV Lines evolution* Net adds Households Second stream users total

-37-30 -33

-44-39

3,149 3,119 3,085 3,0413,002

2,500

2,700

2,900

3,100

3,300

3,500

-50

-30

-10

10

30

50

70

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Fixed Voice customer evolution net adds total

9

12 1110

5

1,615 1,626 1,637 1,647 1,652

1,200

1,300

1,400

1,500

1,600

1,700

-2

3

8

13

18

23

28

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Broadband customer evolution net adds total

Belgian digital TV penetration @ 78%

Stable DTV market share of 32%

Growth households stable to Q1’13

Total TV market** share of 26% ; +2pp YoY

Belgian Fixed internet market

still growing, but at slower pace

Internet penetration @ 78%

Belgacom market share erosion limited to -0.5% YoY

Stable market, Fixed Voice penetration @ 72%

Belgacom containing Fixed Voice line erosion

Fixed Voice line “upgraded” via:

Flat rate calling “Happy Time XL” and “Happy Time International”

Multi-play packaging

*Corresponds to the total settop boxes, including multi-stream ** Total TV market includes analog TV

Belgacom 32%

Cable 64%

Other 5%

Slide 20

Convergence strategy - key advantage in challenging market

34 37

23 22 19

1,177,0001,214,000 1,237,000 1,259,000 1,278,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

0

20

40

60

80

Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Packs evolution

net adds total

Continued uptake of multi-play packs

End June 2013; 21% of PACKS included mobile (from 13% previous year)

21% of Packs with

Mobile

Sustain growth in convergence through more value from mobile components

Supported by tablet joint offer

All Packs contain 3G

mobile internet

volume

All mid-end Packs include

TV Everywhere (as of 1st July)

Up to 6 mobile

subscriptions in a

Pack

Supported by tablet joint offer On 3G, 4G and Wi-Fi More value

at least a € 5

reduction per

mobile

FON log-in

Slide 21

Belgacom brings connectivity anywhere, anytime and on any device

Slide 22

99.85% DSL (among world leaders)

> 86% VDSL (2nd in Europe)

~ 93% TV coverage

Fixed Network Wi-fi Hot Spots

700,000 FON spots in Belgium

>11 million worldwide (UK, France, the

Netherlands, Portugal …)

> 99% 3G & 2G

~ 36% 4G

coverage

@ @

Mobile Network2

@

55.9 Mbps

21.8 Mbps

21.2 Mbps

6.2 Mbps

2 Source: As measured by independent agency CommSquare during Q2 2013 drive tests

All download speeds are up to

50 Mbps 1 On average, a customer gets

33 Mbps

1 Speeds depend on such factors as the distance between the connection point & the local exchange, the computer system & the internal cabling.

@ HD

@

• Start of Field Trial – Large technical field trial started to

prepare Vectoring for massive roll-out

• Strong regulatory framework was negotiated,

disentangling all blocking points

• To up-to-50 Mbps speeds – One third of our VDSL2 lines

already receives a 50 Mbps speed

• 30% higher average speed experience – Thanks to DLM, the

average speed experience increased with 30%

Preparation for Vectoring roll-out

Fixed network

Launch of Dynamic Line Management

DLM monitors line stability and dynamically applies max

possible speed when a line is sufficiently stable

Vectoring cancels crosstalk in the copper cables resulting

in a significant bit rate increase of copper lines

Launched Q1 2013

Planned Q1 2014

Speed evolution in Mbps 2013 to >2018

Next step: DLM on

Vectoring

Slide 23

Mobile data evolution

• Avg. 3G speed increase from 3.2 Mbps to 6.2 Mbps

• 70% increase of network capacity for data

• > 80% of mobile sites have high-speed backhauling

• Belgacom is only Belgian operator offering 4G

• ~36% 4G outdoor coverage end Q2 2013

• 4G available in 146 Belgian cities

4G roll-out continued

Mobile network

3G+ mobile data experience acceleration

1

2

3

0

50

100

150

200

250

Strong

increase in

number of

users X 2 in 1 year

— Mobile data usage still in early stages with

smartphone penetration just above 30%.

— However, quickly emerging market need for 4G with

much higher mobile data usage each quarter

Steep

increase in

mobile data

usage

+60% in 6

months

1

2

3

Slide 24

Belgacom outperforms competition

on mobile internet quality as shown in

an independent study by the largest

Belgian consumer organization

Network simplification

SIMPLIFICATION • Out phase 30 buildings • Out phase ATM network • Out phase legacy telephony

PSTN & ISDN

SITUATION TODAY • High network complexity,

high number of technologies • High maintenance cost • High connectivity cost

TO FROM

copper

fiber

street cabinet

remote optical platform

central technical office

Leaner operations through a simplified all-IP-network

• Estimated to

generate savings as

of year one, as from

2018 growing to

€ 35m recurrent

savings.

Major Milestones Three major components

Fixed voice consolidation – 3.800.000 PSTN equivalent

lines to migrate

Fixed data consolidation – 250.000 ATM customers to

migrate

Building outphasing – 263.000 m² floor space to

consolidate

• Total customer base of ATM customers on Ethernet

based alternatives by 2013

• No more SIEMENS EWSD switches

by 2015 (~40% of install base)

• No more ALCATEL LUCENT S12 PSTN switches

by 2018 (~60% of install base)

• 30 buildings freed up by 2020

with an average of 5 buildings/year

1

2

3

4

Already 300.000

lines migrated

Slide 25

26

Belgacom Company presentation Investor Relations

Consumer Business Unit (CBU)

Enterprise Business Unit (EBU)

Service Delivery Engine &Wholesale (SDE&W)

Staff and Support (S&S)

Belgacom International Carries Services (BICS)

Q2 2013 results per business unit

Slide 26

571 572 577 575587

581

553567

510

530

550

570

590

610

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

CBU revenue (EUR mio)

158168 162

182

157166

149165

90

110

130

150

170

190

210

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

CBU Cost of Sales (EUR mio)

86 87 89 87 91 87 88 86

71 84 74 73 77 86 68 74

0

20

40

60

80

100

120

140

160

180

200

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Personnel Non-HR

CBU Personnel & Non-HR costs (EUR mio)

257 233 252234

263243 248 243

45.0%

40.8%43.7%

40.6%44.7%

41.8%

44.9%42.8%

30.0%

35.0%

40.0%

45.0%

50.0%

180

200

220

240

260

280

300

320

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

CBU EBITDA (EUR mio) & margin

Consumer - P&L

Lower HR expenses, -1.3% ; driven by lower headcount, partially offset by wage indexation.

Non-HR expenses 1% up, cost optimization initiatives and partial divesture of The Phone House stores limited impact from Mobile acquisition costs

Q2’13 segment result +3.9% YoY; -6.5% like-for-like

– Q2’12 incl one-off acc impact of €-26m

– Regulation impact of €-3 m

– Decline contained: sound Fixed revenues & cost control

H1’13 segment result +1% ; -4.1% like-for-like

Q2’13 Revenue -1.5% lower

– Excl Q2’12 €-10.1m accounting adjustment rev -3.1%

– Regulation impact Q2 ’13 of €-8m (-1.4%)

– Pressure on Mobile revenue partly offset by firm Fixed performance

H1’13 revenue -2.8%; -3.7% like-for-like*

-1.5%

-9.4%

-0.3%

+3.9%

Pressure on Direct Margin partially offset by cost containment

Slide 27

Q2’ 13 Cost of Sales -9.4% lower YoY ; -0.7%,like-for-like

– Q2 ’12 incl. accounting adj. of €16m

– Acquisition costs offset by: lower MTRs, improved sales channel mix and partial sale of The Phone House stores

H1’13 CoS of €313m, -8.8% or -4.4% like-for-like

*Like-for-like excludes the impact from the accounting adjustment recorded in Q2’13

111 110 110105 105 105 104 103

80

90

100

110

120

130

140

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed voice revenue (EUR mio)

9361,036 1,086

1,027965

1,060 1,086988

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Traffic (mio min)

19.7 19.8 20.2 19.7 19.7 20.0 20.1 20.2

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed voice ARPU (EUR/month)

Consumer - Fixed voice Fixed Voice line erosion stable; revenue decline continued to persist

*

*Q1 2012 real line loss, differs from QoQ EOP difference due to re-segmentation exercise at start of 2012

Fixed Voice customer base of 1,673,000 end Q2’13

The total Fixed Voice traffic was down 3.8% driven by lower national traffic.

Fixed Voice ARPU up with price changes giving some support

Fixed Voice revenue erosion limited to -1.9% YoY

– Price changes brought relief to the declining Voice revenue resulting from the line loss.

H1’13 revenue of €207m, i.e. a 3.4% decline YoY

-1.9%

+2.6%

-3.8%

Fixed Voice price adjustments resulted in growing ARPU and contained revenue decline

Slide 28

-31 -21 -20 -22 -21 -18 -26 -19

1,839 1,818 1,780 1,758 1,737 1,718 1,693 1,673

30

530

1,030

1,530

2,030

-50

-30

-10

10

30

50

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Voice line loss & EOP (000)

*

143 136 130 123133

120

100107

40

60

80

100

120

140

160

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Mobile voice revenue (EUR mio)

103.6 103.8 101.5104.7

100.5 101.7 102.2

109.4

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

MoU (min/month)

12.912.2

11.611.1

12.011.1

9.510.2

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Blended net voice ARPU (EUR/month)Blended net voice ARPU (EUR/month)

48 3210 5

-62-105

-82

11

3,774 3,805 3,805 3,811 3,748 3,643 3,561 3,572

2,500

2,700

2,900

3,100

3,300

3,500

3,700

3,900

4,100

-180

-130

-80

-30

20

70

120

170

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Mobile growth & EOP (000)

Consumer – Mobile Voice Mobile customer base back to growth; Mobile Voice revenue remains under pressure

*

*i.e. Mobile net adds differ from QoQ EOP difference due to re-segmentation exercise at start of 2012

End Q2’13 Mobile customer base of 3,572,000 cards

– Postpaid +93,000 : revised price plans, marketing efforts and tactical handset subsidies pushed customer growth

– Prepaid -82,000: Prepaid market shrinking with new telco law lowering contract barriers

Net Voice ARPU at € 10.2, or -15.3% YoY like-for-like

– Impacted by Postpaid repricing with more abundant tariff plans

MoU up YoY to 109.4 minutes/user/month

Q2’13 Mobile Voice revenue -19.8% like-for-like

– Driven by regulatory impacts &

– especially by lower Prepaid customer base and repricing of mobile Postpaid mainly decreasing the out-of-bundle usage

-13.2%

+4.5%

-8.5%

12.0

Slide 29

-15.3%

82 8285 84 85 85

8789

72

74

76

78

80

82

84

86

88

90

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed data revenue (EUR mio)

26.7 26.1 26.9 26.4 26.5 26.1 26.3 26.7

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Broadband ARPU (EUR/month)

Consumer - Fixed Data Fixed Internet revenue grew 5.4%, driven by price indexation and larger customer base

*i.e. Fixed Internet net adds differ from QoQ EOP difference due to re-segmentation of customers

Q2’13 revenue up 5.4% YoY

– Positively impacted by price indexation Feb’13

– Continued YoY customer growth

CBU ended Q2’13 with 1,210,000 Fixed Internet customers

– +7,000 net-adds, in spite of lower focus on Fixed in Q2

– supported by the “Internet Everywhere” offer, mainly bought in Pack

ARPU Q2’13 of € 26.7; i.e. up by 0.9% YoY

– ARPU supported by price indexation

*

+5.4%

+0.9%

Slide 30

1

1815

1013 12

10 7

1,138 1,156 1,159 1,169 1,181 1,193 1,203 1,210

10

210

410

610

810

1,010

1,210

1

21

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Broadband growth & EOP (000)Broadband growth & EOP (000)Broadband growth & EOP (000)Broadband growth & EOP (000)

*

79 85 85 87 84 87 85 86

14 14 12 15 15 13 12 12

0

30

60

90

120

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SMS Adv Data

Mobile data revenue (EUR mio)

9397 97 102 98 97 98100

235273 280 291

262294 280 283

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SMS (units/month)

8.2 8.5 8.59.0 8.7 9.0 9.0 9.1

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Blended net data ARPU (EUR/month)

Consumer - Mobile Data Mobile data revenue declined, impacted by regulation, more abundant offers and the mobile customer evolution age

SMS usage -2.8% to 283 SMS/Month

Mobile Data ARPU up 0.8% YoY to € 9.1

– More customers having a price plan including Mobile data

Q2’13 Mobile Data rev -4.3% YoY

– Revenue impacted by regulation, lower mobile customer base and more abundant offers

– SMS revenue -1.3%

– Advanced Mobile Data -21.6% : more Mobile data included in price plans, and impact from regulated price cap on retail Data roaming.

H1’13 Mobile Data rev -2.1% YoY to € 195m

-4.3%

-2.8%

+0.8%

Slide 31

51 53 55 57 61 62 64 66

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

TV revenue (EUR mio)TV revenue (EUR mio)

17.8 17.5 17.6 17.6 18.1 18.2 18.3 18.6

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

TV ARPU (EUR/month)

Belgacom TV

Double-digit TV revenue growth through larger TV customer base and higher ARPU

Continued customer growth

– Total customer base of 1,428,000; +9.8% YoY

– Growth households stable to Q1 ‘13

– +14,000 households added on Belgacom TV, 2,000 multiple streams

Q2 TV ARPU of EUR 18.6 , a 5.7% growth YoY

– Supported by the February ’13 price increase for rented settop boxes

TV revenue +15.3% YoY driven by

– Continued growth of subscribers

– Price increase of rented settop box

+15.3%

+5.7%

Slide 32

5272

43 48 39 46 26 16

1,139 1,211 1,254 1,301 1,340 1,386 1,412 1,428

0

200

400

600

800

1,000

1,200

1,400

0

20

40

60

80

100

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

TV growth & EOP (000)

28 28 27 28 2830 29

32

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)Tango revenue (EUR mio)

28

29.3 29.1 28.4 29.2 29.5 30.7 30.1 31.1

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Blended mobile net ARPU (EUR/month)

Tango Luxembourg

Q2 2013, Tango’s revenue +16.8% YoY to €32m.

– supported by the growing mobile subscriptions

– success of the offers for Smartphones

– increased terminals sales

H1’13 revenue of €62m, up 12% YoY

Continued growth in mobile customer base

– Belgacom extended its convergence strategy to Tango: quadruple-play offer “Tango Generation”.

– success of Tango's 4G offers among its Smartphone customers

– focus placed on the B2B market with the recent acquisition of large accounts

+16.8%

+6.3%

Slide 33

260 264 266 268 270 271 273 274

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Tango mobile customers EOP (000)

291 296 291 278 268 276 260 263

50.9% 50.0% 50.2% 48.3% 48.0% 47.6% 47.0% 47.5%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

-5

45

95

145

195

245

295

345

395

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

EBU EBITDA (EUR mio) & margin

93 96 99 102 102 100 107 105

34 36 40 39 39 41 38 37

0

20

40

60

80

100

120

140

160

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Personnel Non-HR

EBU Personnel & Non-HR costs (EUR mio)

572591

579 576560

579

554 554520

540

560

580

600

620

640

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

EBU revenue (EUR mio)

Enterprise – quarterly P&L

Cost of Sales slightly down year-on-year

– Cost of Sales Q2’13 4.9% lower YoY -1.1% like-for-like.

– lower Mobile Termination Rates, more than offsetting the unfavorable product mix

H1’13 with €297m, 2.8% lower yoy (-0.9% like-for-like).

Q2’13 segment result -5.5% YoY; -8.1% like-for-like basis.

– Q2’12 incl € -8m acc impact new telco law

– Regulatory impact of €-16 m (-5.7%).

– Lower Direct margin resulting from the changing product mix.

H1’13 € 524m, -8% YoY

For Q2’13, € 37m- non-HR expenses, -5.9% YoY, showing effect from solid cost containment. H1’13 -5.3% to € 75m.

HR expenses +3.3% to € 105m: higher personnel base, salary indexation of Jan’13. H1’13 €212 m HR expenses, up 5.4% YoY.

Q2 YoY decline of 3.8%; -4.2% like-for-like*

– Q2’12 included €-2.1m one-off acc adjustment

– Regulation impact of € -20m (-3.5%) in Q2’13

– increased pressure on mobile only partly offset by higher ICT revenue

-3.8%

-4.9%

+0.7%

-5.5%

Slide 34

154164

149157

150

163

148 149

120

130

140

150

160

170

180

190

200

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

EBU Cost of Sales (EUR mio)

*Like-for-like excludes the impact from the accounting adjustment recorded in Q2’13

121 122 124 120 118 119 118 117

90

100

110

120

130

140

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed voice revenue (EUR mio)

672716 754

699636

686 695654

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Traffic (mio min)

28.1 28.6 28.9 28.4 27.9 28.6 28.7 28.8

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed voice ARPU (EUR/month)

-13 -14-18

-15-9

-14-18 -19

1,400 1,385 1,394 1,379 1,370 1,356 1,338 1,318

-100

100

300

500

700

900

1,100

1,300

1,500

1,700

1,900

-20

0

20

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Voice line loss & EOP (000)

Enterprise - Fixed Voice Fixed Voice revenue showing some relief from price changes, ARPU up 1.3% while line erosion continued

Fixed Line erosion Q1’13 of -19,000 lines

Enterprises rationalising on Fixed voice lines

Q2 Fixed Voice traffic was 6.5% lower YoY driven by:

– fixed line erosion

– lower usage per line

Q2’13 ARPU up 1.3% YoY to € 28.8

– Negative effect from reduced F2M (Jan’13)

– Partially offset by positive effect from price indexation (Feb’13)

Fixed Voice revenue Q2’13 -2.8% YoY

– lowered Fixed-to-Mobile rates on 1 January 2013 following the regulated cut in Mobile Termination Rates.

– continued line erosion, while price changes gave some relief

H1’13 Fixed Voice revenue -3.8% YoY

*

*Fixed line loss differ s from QoQ EOP difference due to re-segmentation exercise at start of 2012 and inclusion of business trunking

-2.8%

+1.3%

-6.5%

Slide 35

110 108 106 102 100 96 88 88

40

50

60

70

80

90

100

110

120

130

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Mobile voice revenue (EUR mio)

305.0 322.8 327.8 326.6293.3

314.3 310.2 315.8

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

MOU (min/month)

26.9 25.9 25.3 23.7 22.9 21.6 19.7 19.2

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Net voice ARPU (EUR/month)

22

2922

36

2116

30 33

1,380 1,408 1,413 1,449 1,470 1,486 1,516 1,549

500

700

900

1,100

1,300

1,500

0

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Mobile growth & EOP (000)

Enterprise - Mobile Voice Solid customer growth, revenue under pressure due to pricing and regulation

Solid Mobile customer growth in Q2’13 in spite of aggressive competitor moves in the business market

– Retention/acquisition efforts paying off

– 33,000 net mobile cards added, with especially Voice cards doing sequentially better

Q2’13 Mobile Voice ARPU of €19.2, -21% YoY like-for-like:

– Regulation impact: MTR cut and lower Voice Roaming rates

– Mobile re-pricing, with more free voice minutes included in price plans

– High-usage customers that churned end 2012

Q2 3.3% lower usage YoY

– Customer churn Q4 2012 triggered by new telco law included high-user profiles, bringing average usage down

Q2’13 Mobile voice revenue -13.2% YoY; -15% like-for-like

– Q2’12 revenue incl €2.1m acc adjustment

– regulated MTR and Voice Roaming prices

– Repricing effect; general competitive mobile market.

H1’13 Mobile revenue €177m -15.8% YoY (like-for-like)

*

*i.e. Mobile net adds differ from QoQ EOP difference due to re-segmentation exercise and cleaning in-active cards at start of 2012

-13.2%

-3.3%

-19.1%

Enterprise - Mobile Voice Pressure on Mobile Voice ARPU stable versus previous quarter; customer base growing with 33,000 mobile cards

Slide 36

24.2

-20.7%

9697

99 99

96 95 96 96

90

92

94

96

98

100

102

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Fixed data revenue (EUR mio)

39.1 38.939.5 39.0 39.1 38.8 39.0 39.3

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Broadband ARPU (EUR/month)

434 434 446 445 444 443 444 442

-2

0 0

-2 -1 -1

1

-230

80

130

180

230

280

330

380

430

-10

11

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Broadband growth & EOP (000)

Enterprise - Fixed Data Slightly positive revenue trend continued; Internet customer base fairly stable

Q2’13 Fixed Data revenue €96 m, -3.2% vs 2012

– Continued migration from older technologies to the Belgacom Explore platform, for which pricing is more favorable for customers

– Slightly smaller customer base

SME customers opting more and more for advantageous converged Packs including internet.

Net loss of 2,000 internet customers in a saturated and increasingly competitive professional Fixed Internet market

Q2’13 ARPU of €39.3 up 0.9%YoY, driven by price adjustments

*i.e. Fixed Internet net adds differ from QoQ EOP difference due to re-segmentation of customers

-3.2%

+0.9%

Enterprise - Fixed Data Fixed Data revenue impacted by migrations to Explore platform and uptake of converged Packs with internet

Slide 37

*

24 26 26 26 25 26 25 24

32 31 31 32 30 28 28 29

0

10

20

30

40

50

60

70

80

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SMS ADV Data

Mobile data revenue (EUR mio)

56 57 56 58 55 54 53 53

87 96 107 112 105 118 118 119

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SMS (units/month)

13.8 13.7 13.5 13.512.6 12.2 11.8 11.6

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Net data ARPU (EUR/month)

Enterprise – Mobile Data Regulated price caps pressuring both SMS and advanced Mobile data revenue

Continued uptake in SMS usage, growing 6.4 % YoY to 119 text messages per user per month

– Success of pricing plans, including more and more unlimited SMS volumes.

Mobile Data ARPU down 13.7% YoY to €11.6

– Growth trend reversed since 1 July 2012 due to regulated price caps for Mobile Data roaming

– aggressive competitor moves on business market

-7.3%

+6.4%

-13.7%

Slide 38

Q2’13 Mobile Data revenue -7.3% YoY

– Q2’13 non-SMS Data revenue € 29m, -7.4% YoY fully due to negative regulated price effect.

– Q2’13 SMS revenue -7.2%; including minor regulation impact, and especially effect of price bundles including unlimited SMS

H1’13 Mobile data revenue of € 106m, -6.6% YoY

163

182

167 172 167

186174 175

130

140

150

160

170

180

190

200

210

220

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

ICT revenue (EUR mio)

Enterprise – ICT ICT revenue up by 6.1% on like-for-like basis

Q2’13 ICT revenue +2% YoY to €175m

– Growth somewhat contained due to customers delaying IT projects or opting for private Cloud-based solutions, which triggers a shift from one-shot revenue to monthly services fees.

Ytd June’13 ICT revenue +3.1% to €350m

+2.0%

Enterprise - ICT Solid ICT revenue, showing 2% growth in challenging economic context

Slide 39

-30-21 -23

-26-21 -25

-30 -31

-60

-50

-40

-30

-20

-10

0

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SDE&W EBITDA (EUR mio)

50 50 43 43 46 43 45 42

48 42 48 50 41 48 50 52

0

20

40

60

80

100

120

140

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Personnel Non-HR

SDE&W Personnel & Non-HR costs (EUR mio)

9 9 9 9 9 10 11 100

2

4

6

8

10

12

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SDE&W Cost of Sales (EUR mio)

77 80 78 76 75 76 75 74

53

58

63

68

73

78

83

88

93

98

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SDE&W revenue (EUR mio)

livery & Wholesale - P&L

CoS Q2’13 +7.5%

€ 42 million HR expenses for Q2; -2.1% yoy. One salary indexation (January 2013) offset by positive effect from lower headcount. Ytd June ‘13, HR expenses €87 m, +1.3%

non-HR expenses up 5.2% to € 52m. H1’13 € 103m, up 4.9% yoy, incl resources for simplification projects.

Q2 segment result YoY lower due to lower Direct margin combined with higher expenses

Q2’13 revenue -3.4% YoY driven by slowing wholesale revenue

– Regulatory measures reduced the Q2 revenue by 1.7%.

– lower traffic and broadband volumes

H1’13 revenue -3.2 YoY to € 149m

-3.4%

+7.5%

+1.8%

-19.2%

Service Delivery & Wholesale – P&L

Slide 40

66 6150 50 49

67

50 50

0

10

20

30

40

50

60

70

80

90

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

S&S Non-HR costs (EUR mio)

40 40

3738

4038

4038

32

34

36

38

40

42

44

46

48

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

S&S Personnel costs (EUR mio)

25

8 9 7 7 11

18

70

5

10

15

20

25

30

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

S&S Revenue(EUR mio)

Staff & support - P&L

• Q2’13 revenue of € 7m

• H1’13 revenue of € 25m, including a capital gain of € 11m realised by Belgacom resulting from the sale of a technical building as part of Belgacom’s ongoing network simplification plan.

• HR-expenses remained flattish YoY

• Inflation-based wage indexations ,partially offset by the benefit from lower headcount compared to end June 2012.

• Stable YoY Non-HR expenses for Q2’13

* Internal invoice; neutral on group level

-5.2%

+0.2%

+0.1%

Staff & Support – P&L

Slide 41

35 33

2834 35 32 35 37

8.7%8.3% 7.3% 8.4% 8.3% 7.3% 8.3% 8.9%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

0

10

20

30

40

50

60

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

BICS EBITDA (EUR mio) & margin

31 31 31 32 32 34 33 38

28 27 25 30 31 29 28 27

0

20

40

60

80

100

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

Non-Voice Voice

BICS Gross margin (EUR mio)

401 401382

409424 430

417 413

300

320

340

360

380

400

420

440

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

BICS Revenue (EUR mio)

International Carrier Services P&L

• Voice volumes: Q2 4% lower to 6.7 billion minutes

• Non-Voice volumes Q2 up 27.6% to 461 million messages

• Consequently to solid Direct margin growth BICS’ segment result for Q2’13 was up by 7.5% and the EBITDA margin ended slightly higher at 8.9%.

• Ytd June 2013, BICS reported a segment result of € 72m, up 14.8% YoY.

• Gross margin Q2’13 up 5.2% YoY

– Favorable destination mix led to record Gross margin of € 65m.

• Ytd June 2013 the Gross margin totaled € 127 million, a 7.4% yoy increase.

• Revenue Q2’13 up 0.9% from strong comparable base

– Reduced EU MTRs and slight negative dollar effect impacted Voice revenue

– More than compensated for by solid Mobile data revenue

• H’13 BICS revenue of € 829m, up by 4.8% YoY.

+0.9

+5.2%

+7.5%

International Carrier Services – P&L

Slide 42

6,853 7,018 6,907 6,984 6,934

7,5567,267

6,701

276315 323 361 428

445451

461

5,200

5,700

6,200

6,700

7,200

7,700

8,200

Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213

SMS/MMS Minutes

BICS Volumes (in mio)

43

Belgacom Company presentation Investor Relations

Ytd September 2010 results in detail

• Consumer Business Unit (CBU) • Enterprise Business Unit (EBU) • Service Delivery Engine &Wholesale (SDE&W) • Staff and Support (S&S) • Belgacom International Carries Services (BICS)

Other topics

Slide 43

Work In Progress

• Shareholder structure – slide 44 • Shareholder remuneration - slide 45 • Spectrum – slide 46

Other topics

• Pricing – slide 47 • Regulation & legal – slide 52 • Belgian economy – slide 56

Shareholder structure*

Belgian state owns ~ 53.5%

Status 30 Jun 2013

Shares %

shares %

Voting %

Dividend

Belgian state 180,887,569 53.5% 56.7% 55.9%

Free float 137,951,375 40.8% 43.3% 42.7%

Own shares 19,186,191 5.7% - 1.4%

338,025,135 shares, of which 318,838,944 Outstanding • Limited liability company under public law

- Belgian state main shareholder: 53.5%

- Legal obliged threshold: 50%+1 share

• Free float 40.8%

• Treasury shares 5.7%

- Under Belgian law, companies prohibited from owning >20% of outstanding share capital

- Part of own shares held for personnel incentives

Slide 44

Belgian State; 53.5%

Free Float; 40.8%

Own Shares;

5.7%

*situation at 30 June 2013

Belgacom intends to ensure its shareholders an attractive return

Slide 45

0%

30%

60%

90%

120%

150%

0100200300400500600700800900

1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

SBB Dividends % of FCFShareholder remuneration

Mio €

0.29 0.50 0.50 0.40 0.50 0.50 0.50 0.55 0.31

1.38

1.52 1.60

1.68 1.68 1.68 1.68 1.68 1.68

2004 2005 2006 2007 2008 2009 2010 2011 2012*

Interim dividend Extra dividend Normal dividend

Dividend per share & dividend yield

1.93 1.52

1.89 2.18 2.18 2.18 2.08 2.18

2.49 6.1% 5.5% 5.7%

6.5% 8.0% 8.2% 8.7% 9.0%

11.2%

Seri…Dividend Yield*

*Dividend yield based on annual dividend & share price end of year

Spectrum - Belgian situation

Slide 46

Spectrum: The Belgian situation

Proximus 2 x 12

Mobistar 2 x 12

Base 2 x 10

Proximus 2 x 20,8

Mobistar 2 x 20,8

Base 2 x 22

Unallocated 2 x 11.4

Unallocated 2 x 15

800 MHz

900 MHz

1800 MHz

2100 MHz

2600 MHz

Proximus 2 x 15

Mobistar 2 x 15

Base 2 x 15

1x 5

1x5 1x5 Telenet / Voo

2 x 14.8 1x5

Proximus 2 x 20

Mobistar 2 x 20

Base 2 x 15

BUCD 1 x 45

• 900 MHz & 1800 MHz

• Used for 2G, 3G and 4G

• Belgian operators allowed

to deploy UMTS in 900

MHz spectrum (more

efficient in rural areas) and

4G in 1800 MHz

• Tacit extension: BGC has to

pay €74m for 2010-2015;

via annual payments. BGC

filed annulment procedure.

900 MHz & 1800 MHz

• 900 MHz & 1800 MHz

• Used for 3G

• Proximus, Mobistar & Base

each have a UMTS license

since 2001

• BGC paid € 150m

• 2 Aug ‘11, BIPT awarded

4th license to Telenet/Voo

for an amount of € 71.5m

(2X 14.8 MHz)

• all licenses expire in 2021

2100 MHz

• Will be used for 4G

• Out of 5 candidates, 4 have

obtained spectrum in 2.6

GHz band

• Belgacom acquired 2x20

MHz for an amount of €

20.22 Mio.

• License is valid for 15 years

as from July 2012

2600 MHz

• Will be used for 4G

Conditions:

• Auction of 3 lots of 2x10

MHz

• Minimum price of € 120m

per lot

• License for 20 years

• Spectrum cap of 2x10 MHz.

• No spectrum reserved for

new entrants.

• Coverage obligations

• National roaming may be

imposed by BIPT.

• Process expected to be

completed by end 2013.

800 MHz

Unallocated 2 x 10

Unallocated 2 x 10

Unallocated 2 x 10

Pricing – Fixed products

29.67€ / month

Free to FIX Anytime

24/24

No Limit National Anytime

19.99€ / month

Free to FIX & to MOB during OffPeak & Weekend

Peak: 8-17h

Happy Time XL

46.20€ / month

Volume incl: Unlimited Download speed: 50 Mbps Upload speed: 4 Mbps 3G: 250 MB + 250 MB 3G + unlimited hotspot access

Internet Maxi

35.95€ / month

Volume incl: 150 GB Download speed: 50 Mbps Upload speed: 3 Mbps 3G: 100 MB + 100 MB 3G + hotspot access

Internet Comfort

24.95€ / month

Volume incl: 100 GB Download speed: 50 Mbps Upload speed: 2.5 Mbps 3G: 50 MB

+ 50 MB 3G + hotspot access

Internet Start

21.5€ / month

>70 channels 3 TV

TV

19.99€ / month

Note: Lower tariffs during peak compared to Happy Time

Peak: 8-19h

Classic

20.99€ / month

Free to FIX ,to MOB & to most European countries

during OffPeak & Weekend

Peak: 8-17h

Happy time international

Slide 47

All download speeds increased from

30 Mbps up-to-50 Mbps since the deployment

of the DLM technology in Q1’13

Note: Belgacom TV only

available in pack, not as stand alone service:

Internet Start+TV: € 43.95 Tel+TV: € 35.75

25€ / month 20€/month PACK

240 min unlimited SMS

€ 0.25 / min € 0.25 / MMS € 0.85 / MB

Easy+ 25


150 min + unlimited SMS

€ 0.25 / min € 0.25 / MMS € 0.85 / MB

Easy+ 15

For non-Smartphone

users


300 min + + Unlimited SMS

+ 2 GB incl

€ 0.25 / min € 0.25 / MMS € 0.10 / MB

Smart+ 35


180 min + + Unlimited SMS

+ 1 GB incl

€ 0.25 / min € 0.25 / MMS € 0.10 / MB

Smart + 25


120 min + Unlimited SMS

+0.5GB incl

€ 0.25 / min € 0.25 / MMS € 0.10 / MB

Smart+ 15


Unlimited voice + Unlimited SMS +

5 GB incl.

Unlimited / min € 0.25 / MMS € 0.10 / MB

Smart+ 65

10€ / month

20 min + unlimited SMS

€ 0.25 / min € 0.25 / MMS € 0.85 / MB

Easy+ 10

For Smartphone

users

Slide 48

included


Unlimited min unlimited SMS

Unlimited min € 0.25 / MMS € 0.85 / MB

Easy+ 45

Pricing – Mobile Voice (Postpaid)

Pricing – Mobile Voice (Prepaid)

Reload bonus For Pay&Go Easy you get :

• Bonus 1 (towards fix and Mobile): 10€ reload= 20min, 15€ reload= 40min, 25€ reload= 70min, 50€ reload= 200 min

OR Bonus 2 (towards fix): 10€ reload=150 min, 15€ reload=600 min, 25€ reload=unlimited min, 50€ reload=unlimited

€ 0.50 / min Peak € 0.25 / min OffPeak

€ 0.12 / SMS Peak € 0.08 / SMS OffPeak

€ 0.25 / MMS € 0.5/MB

Pay & Go Smart

€ 0.27/ min € 0.12 / SMS

€ 0.25 / MMS € 0.5 /MB

Pay & Go Easy

Slide 49

For non-Smartphone

users

For Smartphone

users

Reload bonus For Pay&Go Smart you get:

• Bonus 10€ Reload: unltd. SMS OffPeak + 10 MB Peak: 7 – 16h • Bonus 15€ Reload: unltd. SMS + 100 MB • Bonus 25€ Reload: unltd. SMS + 500 MB

Pricing – Mobile Data

4.99€ 50 MB 9.99€ 500 MB

0.5€ / MB (prepaid ) Or

0.85€/MB (postpaid)

34.99€ / month

4 GB incl.

€0.03 / MB

Favorite

19.99€ / month

2 GB incl.

€0.03 / MB

Comfort

4.99€ / month

+ 1€/day of surf

1 GB incl.

€0.03 / MB

Daily

10€

500MB incl.

Pay & Surf for iPad

24.99€ / month

3 GB incl. (if you use more – usage

is free but at a lower speed)

Favorite for iPad

Laptop & Tablet Only

GSM Only

iPad Only

Post-paid Only General Prepaid Only

Laptop Only

10€ 500 MB 15€ 750 MB 25€ 1250 MB 50€ 2500 MB

Pay & Surf

5€ reduction if you are already a BGC fixed internet customer

Prepaid Only Prepaid Only

Reload 10€> in 31d: +50% data volume

10€ / month

1 GB incl.

€0.1/ MB

4G Option Pay & Surf Standard

Slide 50

included included included

Pricing converged PACKS - examples of possible combinations

53.95€ / month

TV TV Everywhere

+ Internet Comfort

+Unlimited volume +Unlimited hotspot

access +500 MB 3G

TV + Internet

53.95€ / month

Classic (or Happy

Time XL) +

Internet Comfort +Unlimited volume +Unlimited hotspot

access +500 MB 3G

Fix+ Internet

35.75€ / month

TV +

Classic (or Happy Time XL)

TV + Fix

62.95€ / month

TV

TV Everywhere +

Classic (or Happy Time XL)

+ Internet Comfort


access +500 MB 3G

TV + Fix + Internet

63.95€ / month

TV TV Everywhere

+ Smart+/Easy+ 15

+ Internet Comfort


access +500 MB 3G

TV + Mobile + Internet

72.95€ / month

TV TV Everywhere

+ Classic (or Happy

Time XL) +

Smart+/Easy+ 15 +

Internet Comfort +Unlimited volume +Unlimited hotspot

access +500 MB 3G

TV + Fix + Mobile + Internet

Slide 51

As from 1 Jul’13, the rates of Packs

including internet went up: + € 2 for Start

+ € 3 for Comfort + € 1 for Maxi

In exchange, customers get more volume,

more speed & more TV

At least €5/month discount for each Proximus subscription (as of €15 /month) added to your Pack

(maximum of 6 Proximus subscriptions per pack)

• Over the second quarter of 2013, Belgacom’s revenues were negatively impacted for a total amount of EUR 30 million by regulation measures. On the EBITDA level, this came down to an impact of EUR 20 million.

• For the full year 2013, the estimated total impact of regulatory measures on revenues is expected to be EUR -93 million. This would result in an EBITDA impact of EUR -53 million.

Regulation – 1 Overview financial impact

Slide 52

Estimated Impact

Regulation impacts

(Decrease in EUR million)

Revenue ~ €45m €10m €10m

EBITDA ~ €5m €1m €1m


EBITDA ~ €48m €15m €19m


EBITDA ~ €53m €15m €20m

Actuals

MTR &

flow-through Fix-to-Mob

Roaming

(i.e. Voice, SMS and Data)

Q2 2013Q1 2013

Total

FY 2013

7.2

4.623.83

2.62

9.02

11.43

1.08

Before* 01-Aug-10* 01-Jan-11 01-Jan-12 01-Jan-13

MTR-Glidepath in €ct

Proximus Mobistar Base

*excl VAT, including inflation

– Glidepath in place since August 2010. Full symmetry effective since 1 January 2013

– MTR decreases reflected in F2M tariffs of BGC

– Mobistar & Base filed separate appeal against decision:

• Suspension procedure: On 15 Feb 2011, Court rejected all the claims

• Annulment procedure: On 16 May 2012, Court rejected claims regarding the price setting but asked notification to the Community regulators. In the meantime, rates remain valid.

MTR regulation impact 2013 • 1 Jan 2013 MTR’s final reduction of glide path set in 2010

Actual impact on Q2 2013 financials: − Revenue: € -10m − EBITDA: € -1m

Regulation – 2

Mobile Termination Rates (MTR)

* *

Slide 53

MTR glide path Before* 01-Aug-10* 01-Jan-11* 01-Jan-12* 01-Jan-13*

In euro cent (excluding VAT)

Proximus 7.2 4.62 3.94 2.62 1.18

Mobistar 9.02 5.05 4.29 2.79 1.18

Base 11.43 5.81 4.90 3.11 1.18

% change

Proximus -36% -15% -34% -55%

Mobistar -44% -15% -35% -58%

Base -49% -16% -36% -62%

Asymmetry

Mobistar-Prox 25% 9% 9% 6% 0%

Base-Prox 59% 26% 24% 19% 0%

* * *

1.18

MTR regulation impact for 2013

Estimated impact on FY ’13 financials: − Revenue: ~ € -45m − EBITDA: ~ € -5m

2.62

3.94 4.62

• Roaming III Regulation entered into force on 1 July 2012.

• This regulation covers a ten-year period until 30 June 2022.

• It imposed a further lowering of the existing regulated price caps, and extended the roaming regulation to retail data as from July 2012. It also imposed transparency measure to avoid bill shocks and has extended the measures to roaming outside EU since July 2012.

• Roaming III Regulation also foresees structural measures − Wholesale roaming access (1 July 2012) − Decoupling, i.e. separate selling of roaming services from

domestic mobile services(1 July 2014)

• Strategic review of EU telecom regulation : Mrs Kroes aims at further roaming price reductions (retail and wholesale) as from mid-2014 and alignment of international prices (within EU) to national prices (unless objective cost differences). Plans expected to be presented to EU Summit in October 2013.

– Actual impact on Q2 2013 financials: − Revenue: ~€ -19m − EBITDA: ~€ -19m

– Estimated impact on FY 13 financials: − Revenue: ~€ -48m − EBITDA: ~€ -48m

Regulation – 3

Mobile voice and data-roaming: EU Roaming III Regulation regulation

Slide 54

Regulation – 4

Decision to open-up the Belgian Cable Network

On 18 July 2011, the Belgian regulators published their final decision on broadband & broadcast regulation:

Slide 55

– On the broadcast Market Each cable operator has ‘Significant Market Power’ (SMP) in its area a is submitted to the

following obligations: – resell analog TV – open up Digital TV platform – resell broadband

-> Belgacom can only obtain access to analog TV

– On the broadband Market Based on the this decision, Belgacom is sole SMP (cable not included) and has to provide:

– bitstream access for television (multicast) - Belgacom reference offer approved by BIPT on 4 Oct. 2012 – pricing decision still pending. Multicast implemented since April 2013

– VDSL2 prices based on strict cost orientation The BIPT maintains a strong focus on operational excellence for wholesale services

Implementation of cable regulation:

• Belgian regulators have proposed wholesale prices for access to cable networks: retail minus 20 & 35% after deduction of author & content rights (depending on cable operator). Final decisions expected in Q4 2013. April 2014 earliest possible implementation of cable Opening • BGC has decided not to resale analogue TV (old technology & opening too late). Belgacom has requested a fundamental revision of the market analysis and a full level playing field

Source: National Bank, 12/07/2013 1 GDP – percentage change on preceding year 2 Number of unemployed as a percentage of total labour force 3 Index of consumer prices – percentage change on preceding year

Macro economic environment

Belgium & Euro area - prospects

Belgium:

Budget deficit 3.9% end ‘12

2012 Gross public Debt 99.8% of GDP

Slide 56

7.2% 7.6%8.3%

10.2%

11.4%12.2%

2011 2012 2013

Belgium Euro area

Unemployment rate forecast (%)2

2.7% 2.5% 1.6%

3.4%

2.6%

1.0%

2011 2012 2013

Belgium Euro areaInflation forecast (%)3

1.9%

-0.3% 0.0%1.4%

-0.6% -0.4%

2011 2012 2013

Belgium Euro areaGDP growth forecast (%)1

For further information: Belgacom Investor Relations e-mail: [email protected] Tel: +32 2 202 82 41

http://www.belgacom.com

Slide 57

http://www.belgacom.com/

Roadshow presentation Q2 2013

Documents

Transcript of Roadshow presentation Q2 2013