Proximus Sa · EURONEXT:PROX

Proximus Sa — FY2018 Earnings Presentation

87 slides from Proximus Sa's earnings presentation, February 2019

  1. Slide 1: Results presentation FY 2018

    Results presentation FY 2018

  2. Slide 2: Cautionary Statement

    2 Cautionary Statement 2 “This communication might include some forward-looking statements, without limitation, regarding Proximus’ financial or operational results, certain strategic plans or objectives, macro-economic trends, regulation, future market conditions and other risk factors. These forwa

  3. Slide 3: What have we achieved in 2018?

    What have we achieved in 2018? Dominique Leroy – CEO

  4. Slide 4: We kept a strong position in a competitive market

    4 We kept a strong position in a competitive market Fixed Internet Digital TV Mobile + 43,000 net adds in 2018 + 50,000 net adds in 2018 + 134,000 Postpaid - 134,000 Prepaid 38.6 38.9 39.3 % % % 37.3 4,918 4,838 4,838 46.4 36.8 % 46.3 46.6 % % 1,181 956 822 Prepaid % 35.9 % % 1,611 Postpaid 2,026 1,

  5. Slide 5: Market segmentation

    Market 5 segmentation 5 Launch Mobile offer Bizz Online for millennials SE customers

  6. Slide 6: Increasingly convergent customer base in premium family segment

    Increasingly convergent customer base 6 in premium family segment Driving growing 4P customer base Solid increase in number of HH/SO taking 4 Plays (in 000’s) 2,979 2,956 +7.0% 4P 683 731 +48k 3P 746 733 2P 411 387 508 customer Tuttimus/Bizz All-in 359 subscribers in ‘000 value 1P 1,139 1,105 + 124

  7. Slide 7: Leader in the no-frills segment

    Leader in the no-frills segment 7 80% Brand awareness Up from 50% in 2 YRS Very Digital Low Low Low simple focussed acquisition 7 servicing Fixed cost offer operator cost cost structure

  8. Slide 8: Full-digital journey, worry-free connection

    8 €19.99 €24.99 Full-digital journey Worry-free connection, anytime, anywhere Pioneering in the Millennials & Gen Z segment

  9. Slide 9: New mobile pricing

    New mobile pricing 9 High-tier X 2 acquisition doubled -1.2 Improved ppt mobile Postpaid churn Improve price perception 17.1 15.9 % % Remain rational leader Uptiering of customers Q4'17 Q4'18 Better churn

  10. Slide 10: Diversified portfolio to stay relevant for Enterprise customers

    Over the past years we diversified our 10 portfolio to stay relevant for our Enterprise customers & protect our Telco business New ICT Eco System incl. 1.2X Be-Mobile Revenue 2015 2018 1.6X +2.5 ppt EBITDA EBITDA 2015 2018 margin

  11. Slide 11: Trusted partner in digital transformation of enterprises

    11 Be the trusted partner in the digital transformation of Integrated enterprises business Advanced Workplace IoT applications Managed Security services Data Analytics

  12. Slide 12: Investing extensively in network & service platforms

    We continue to invest extensively in our network & 12 service platforms High quality Seamless video Transport Fiber for mobile & media network Belgium network experience upgrade Virtualization Renewed Enriched Copper and IT systems content upgrades softwarization

  13. Slide 13: FttH roll-out acceleration

    FttH roll-out 13 Good acceleration to keep us 9 cities on track with LT ambition With Fiber roll-out launched # FttH homes passed 3 In the mass +7 X market we will double our fiber new cities footprint in 2019 in 2019 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

  14. Slide 14: Good dynamics in growing FttH coverage

    Good dynamics in growing FttH coverage 14 +12ppt overall internet customer In brownfield satisfaction vs copper Higher ARPU & above competition on FttH 30% of activated customers FttH customers are new internet customers Fiber Efficiencies leading to lower average ✓Market share cost per home connect

  15. Slide 15: Fiberize professional customers cost-efficiently

    15 Fiberize vast majority of professional customers, while adopting a more cost-efficient deployment approach Focus on mono-sites GPON available for 48 % of companies in industrial zonings ARPU uplift ✓ Less complex for mono-site ✓ Improve market share in customers SE-ME market Complex COR multi-sit

  16. Slide 16: Excellent mobile experience while coping with boosting traffic

    Delivering an excellent mobile experience 16 while coping with boosting traffic Total Mobile internet traffic av. annual growth of volumes (TB) Coverage Voice Video +70% yearly 99.5%1 Ultra HD Best video 2014 2015 2016 2017 2018 Proximus internal calculation based on 4G indoor coverage Voice experie

  17. Slide 17: Financials FY 2018

    Financials FY 2018 Sandrine Dufour - CFO

  18. Slide 18: Stable 2018 Domestic Revenue

    Stable 2018 Domestic Revenue 18 (underlying, M€) FY’17: 4,458 Fixed Data/Internet +29 Domestic Revenue ICT +24 TV +14 = +1.1 Mobile Postpaid +9 +0.7 % % Subsidiaries (Tango) +5 YoY evolution Advanced Business Services +2 per product 4,458 4,458 -2 Mobile Terminals group 4,410 4,379 -4 Other products

  19. Slide 19: Domestic OPEX

    Domestic OPEX 19 (underlying in M€) € -148M net OPEX since 2015 1,767 1,707 excl. ICT direct opex 1,652 1,653 ICT growth driving expenses up through ‘billable’ direct OPEX… 1,695 1,627 1,567 1,547 - 148M …reinforced by acquired ICT companies FY'15 FY'16 FY'17 FY'18 OPEX excl. ICT Direct OPEX ICT Dir

  20. Slide 20: Domestic EBITDA

    Domestic EBITDA 20 (underlying, M€) Domestic EBITDA & Domestic EBITDA YoY EBITDA margin (%) 34 -4 3 1,713 +1.9 +2.0 % +4.7 % 1,680 % 1,680 1,713 1,647 1,573 +1.9% 2015 2016 2017 2018 EBITDA Direct Margin Workforce Non-Workforce EBITDA FY17 Costs Costs FY18 35.9 37.3 37.7 38.4 % % % % +2.5pp

  21. Slide 21: BICS segment result

    BICS segment result 21 (underlying, M€) BICS segment result BICS segment result YoY & contribution margin (%) 11.4 26 -27 10.2 10.8 % % % 12 154 143 149 143 154 +7.7% 2016 2017 2018 FY17 Voice DM Non-Voice DM Expenses FY18 Successful TeleSign integration ✓ A2P volumes X3 vs 2016 ✓ CoGS synergies

  22. Slide 22: Group EBITDA

    Group EBITDA 22 (underlying, M€) Group EBITDA & Group EBITDA YoY EBITDA margin (%) +2.4 % +1.5 % 32 11 1,866 +3.6 % 1,823 1,866 1,796 1,823 1,733 +2.4% 2015 2016 2017 2018 EBITDA Domestic BICS EBITDA 28.9 30.6 31.6 32.2 FY17 FY18 % % % % +3.3pp

  23. Slide 23: Continuously investing to enhance networks and customer experience

    Continuously investing to enhance 23 Proximus’ networks and the overall 2018 Capex envelope customer experience covered a.o. Fiber rollout Group CAPEX (M€) Mobile capacity * 1,092 Content renewal 949 1,019 Subsidiaries IT Network transformation FY'16 FY'17 FY'18 Roadworks *2017 includes Jupiler Leag

  24. Slide 24: FCF

    FCF 24 €451M FY’18, or € 501M excluding acquired ICT subsidiaries YTD (M€) 43 -22 -111 225 517 -51 65 8 501 451 292 FCF FY'17 Acquisitions FCF FY'17 Underlying Income tax Cash AP/AR/Inventory Other FCF FY'18 Acquisitions FCF FY'18 2017 normalized Ebitda payments Capex normalized 2018 Normalized 2017

  25. Slide 25: We delivered upon our 2018 full-year guidance

    We delivered upon our 2018 full-year guidance 25 Guidance Actuals FY 2018 FY 2018 Domestic underlying revenue Nearly stable +0.0% € 1.50 Gross dividend per Group underlying Growth between share over result +2.4% 2018 EBITDA 2% - 3% CAPEX Around € 1Bn € 1,019 Mio

  26. Slide 26: Strategy 2019-2021

    Strategy 2019-2021 Dominique Leroy -CEO By 2021 we made a real shift to a truly customer-centric digital company.

  27. Slide 27: For our residential customers

    27 For our residential customers We want to be on the 1st screen of every smartphone in Belgium

  28. Slide 28: For our residential customers: personalized multiscreen experience

    28 For our Personalized residential & contextualized Multiscreen approach customers experience As the gateway to people’s Visual of media platform digital content and passions Integrated Targeted content advertising platform

  29. Slide 29: JKK

    29 JKK Mobile, fixed A pack for the Co-creation internet and TV specific needs with via Proximus of millennials millennials TV App

  30. Slide 30: For our small enterprises

    30 For our small enterprises Business continuity Premium servicing Online presence

  31. Slide 31: For our enterprises customers

    31 For our enterprises customers Smart Smart Retail Smart Smart Industry & Events Energy solutions and seamless digital experience Smart Logistics Smart Smart & Transport Building City

  32. Slide 32: Becoming digital first in all we do

    32 Becoming digital first in all we do Call center Full servicing We evolve agents become digital journey to experience digital coaches on MyProximus stores Hire and Seamless and We go for reskill workforce digital software defined towards digital experience for network and savvy enterprises telco c

  33. Slide 33: Gross cost reduction ambition of €240M over 2019-2021

    Accelerating the company transformation with gross cost 33 reduction ambition of € 240M* over 2019/2020/2021… Network IT Supply simplification simplification efficiencies virtualisation • Copper phase-out • One single ordering, • Reduce cost / Enablers to • Reduce buildings provisioning, billing inc

  34. Slide 34: Invest in a sustainable future and cover cost inflation

    34 …to invest in a sustainable future and covering for underlying cost inflation. Expected opex evolution by end-2021 (indicative graph) €240M Inflation (wages & energy) gross Volume opex savings ICT growth (incl. M&A effect*) * With full impact 2018 acquisitions as of 2019

  35. Slide 35: Guidance 2019

    35 Guidance 2019 2019 expectations Guidance Guidance metrics Actuals Guidance metrics FY 2018 FY 2019 • Nearly stable Domestic revenue in competitive market Domestic underlying €4,460m Nearly stable revenue • Sustained positive EBITDA performance of Domestic operations Group underlying €1,865m Stabl

  36. Slide 36: Q4 2018

    Q4 2018

  37. Slide 37: Key achievements Q4

    GROUP Key achievements Q4 37 +32,000 +31,000 Stable YoY +0.2% YoY Domestic Domestic Mobile postpaid Tuttimus & Bizz EBITDA Direct Margin cards all-in +16,000 +16,000 € 451m DM + 3.9% YoY FCF YTD’18 Fixed internet TV customers EBITDA + 8.4% YoY (€501m excl. acquisitions) customers

  38. Slide 38: Growing Internet/TV customer base

    Growing Internet/TV customer base GROUP Supported by dual brand strategy and year-end campaign 38 1,983 1,996 2,002 2,010 2,026 1,965 Broadband 14 16 +43K 17 lines YoY in ‘000 7 6 8 +2.2% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 +50K 1,543 1,560 1,575 1,584 1,595 1,611 in ‘000 9 18 14 11 16 customers YoY

  39. Slide 39: Mobile postpaid customer gain

    Mobile postpaid # Mobile cards: 4,838K end-Dec’18 GROUP Prepaid: 822K customer gain 39 Postpaid: 4,016K +32,000 Postpaid cards in competitive mobile market Smartphone penetration 77% Mobile Cards Park (K) (excl. M2M) +4pp YoY Postpaid Mobile service revenue: € 318M in Q4’18 4,825 4,838 4,831 4,838 4

  40. Slide 40: Q4'18 Group Revenue

    Q4’18 Group Revenue GROUP 40 (M€ & YoY %) 2.6% -0.9% -0.2% 0.1% -0.5% -3.2% +0.5% 1,441 1,477 1,441 1,454 1,441 1,469 336 339 319 340 347 341 5,778 5,804 1,105 1,137 1,121 1,114 1,095 1,128 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 Domestic BICS Domestic: -0.8% YoY to € 1,128m Consumer: -1.0%

  41. Slide 41: Domestic revenue by product

    Domestic revenue by product GROUP 41 Fixed Data / Internet +7 ICT +6 • Customer growth driving TV +3 Internet, TV and Postpaid revenue increase Mobile Postpaid +1 • ICT benefitting from Q4 -1 Subsidiaries (Tango) acquired companies (YoY evolution) -2 Advanced Business Services -5 Mobile Prepaid • Lo

  42. Slide 42: Group direct margin

    Group direct margin +0.3% GROUP Stable Domestic margin, BICS up 3.9% 42 • Domestic stable 912 0 2 -2 -1 3 914 + Consumer +0.1% + Enterprise +0.8% Q4 Domestic: +0% +3.9% - Wholesale -4.8% (M€) Group : +0.3% • BICS direct margin up 3.9% through combination with DM Consumer Enterprise Wholesale Other B

  43. Slide 43: Group expenses

    Group expenses GROUP 43 • Domestic expenses -0.3% 466 -1 0 465 • Inflation based indexation in Oct’18 • Business critical and ICT acquisition increasing FTE’s Q4 -0.3% -0.2% by 258 YoY (M€) • Compensation mechanism -0.3% halt from the Belgian state for statutory retirees Q4'17 Domestic BICS Q4'18 •

  44. Slide 44: Domestic EBITDA

    Domestic EBITDA GROUP 44 +0.2% YoY for Q4, with higher workforce expenses offset by lower non workforce expenses 408 0 10 409 -9 Q4 (M€) Underlying Direct Workforce Non Underlying EBITDA Margin Costs Workforce EBITDA Q4'17 Costs Q4'18 +5.5% -1.9% +0.8% +0.8% +1.1% +0.2% Q’s (M€) 426 408 420 454 431

  45. Slide 45: Group EBITDA +0.9% YoY

    Group EBITDA + 0.9% YoY GROUP 45 Both Domestic operations and BICS showing progress from prior year 3 449 445 1 Q4 (M€) Underlying Domestic BICS Underlying EBITDA Q4'17 EBITDA Q4'18 +1.0% +1.1% +6.1% +1.4% +0.9% -2.2% Q’s (M€) 464 454 493 470 445 449 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

  46. Slide 46: Net Income (Group share)

    GROUP Net Income (Group share) 46 € 117m Net Income in Q4 leading to a total of € 506m YTD’18 ETR 26.8% vs 25.1% in YTD’17 YTD 43 -20 (M€) -53 522 14 -8 7 506 Net income Underlying Incidentals D&A Net Finance Tax Others Net income YTD'17 EBITDA result expense YTD'18 variance

  47. Slide 47: €1,019M capex FY'18

    GROUP € 1,019 M capex FY’18 47 Proximus invests extensively in enhancing its networks and improving the overall customer experience. 385 Capex 221 238 238 322 2017 includes Jupiler League (Q2) and Champions 205 1,092 1,019 (M€) League (Q4) football broadcasting rights Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q

  48. Slide 48: Sound financial position

    GROUP Sound financial position 48 Proximus optimized its long term debt Net Debt DEC 2017 FCF Dividends Dividends to non-controlling interests Other Net Debt DEC 2018 5.6 Yrs Average debt duration Net Debt (YTD, M€) 1.78% Weighted average coupon 451 -485 -28 Credit ratings: Standard & Poor’s 2 A, Mo

  49. Slide 49: Consumer results

    Consumer results

  50. Slide 50: Consumer

    Consumer CONSUMER 50 -0.4% -0.1% -0.5% +1.5% -0.2% -1.8% -1.0% Q4’18 Revenue growth in Fixed Services partly Revenue 729 734 731 725 715 726 2,909 2,898 (M€, YoY) compensating for the Prepaid loss and for Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 decreased low margin revenue in mobile terminal

  51. Slide 51: Consumer Revenue

    Revenue CONSUMER 51 734 -7 7 3 0 -5 0 0 -5 726 Q4’18 Consumer revenue down 1.0%. Growth in Internet and TV revenue Q4 (M€) partly compensating for the -1.0% Fixed voice erosion, lower Prepaid & Terminal sales Q4'17 Fixed Fixed TV Mobile Mobile ICT Tango Terminals Q4'18 revenue. Voice Data Postpaid P

  52. Slide 52: Fixed data (internet)

    Fixed data (internet) CONSUMER 52 +3.7% +4.1% +5.4% +5.0% +4.5% +4.6% +4.9% Fixed data revenue Increasing Internet customer (M€) & YoY 156 157 161 162 163 164 619 649 base for both the Proximus and Scarlet brands. Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 1,829 1,847 1,861 1,868 1,877 1,894 +4

  53. Slide 53: TV

    TV CONSUMER 53 +6.1% +4.6% +4.5% +4.0% +2.7% +2.9% +3.5% Growing base, supported by Millions TV revenue (M€) Millions & YoY variance 99 99 99 101 399 year-end campaign of 97 98 385 Proximus brand and Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 continued success of Scarlet. 1,543 1,560 1,575 1,58

  54. Slide 54: Fixed voice

    Fixed voice CONSUMER 54 -5.5% -4.6% -4.8% -5.4% -6.4% -6.1% -5.7% YoY revenue decline driven Fixed voice revenue (M€) & YoY variance by continued line erosion 124 122 124 119 116 115 503 474 and lower traffic, partially Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 offset by Jan’18 price changes f

  55. Slide 55: Mobile service revenue

    CONSUMER Mobile service revenue 55 Mobile service revenue (M€) & YoY variance Blended net mobile ARPU (€) & YoY variance -1.3% -1.2% -1.7% -1.4% -0.9% -2.3% +1.8% +2.5% +1.7% +1.4% +0.6% -1.1% 248 243 237 243 246 237 23.1 22.8 22.4 23.0 23.3 22.6 22% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q3'17 Q4'17 Q

  56. Slide 56: Postpaid and prepaid

    Postpaid and prepaid CONSUMER 56 Postpaid +2.6% +2.4% +1.0% +1.4% +1.6% -0.1% +1.0% Good traction of EPIC offer for millennials and revamped 223 221 217 222 227 220 878 887 Revenue (M€) & YoY offer in Nov’18, offering Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 unlimited Voice or Data. -1.2% -0.

  57. Slide 57: Tango Luxembourg

    Tango Luxembourg CONSUMER 57 Tango revenue (M€) & YoY variance • Revenue fairly stable in competitive market. • Steady growth in mobile +5.6% +8.3% +6.2% -1.1% +1.1% -0.6% revenue and successful execution of convergence +3.6% strategy with FttH driving increase in internet revenue. 31 29 30 114 118

  58. Slide 58: X-Play view

    CONSUMER 5858 X-Play view (under IFRS 15)

  59. Slide 59: Stable revenue from HH/SO

    Stable revenue from HH/SO CONSUMER 59 Incl. upselling to 4P 744 14 -5 -3 -5 -5 -5 -1 2 735 Q4 (M€) HH/SO +0.0% Proximus’ strategy to focus on Total Consumer -1.3% multi-play offers resulting in continued uptiering to 4-Play, Underlying Q4'17 4-Play 3-Play 2-Play 1-Play Mobile Prepaid Terminal sales

  60. Slide 60: Continued revenue shift to 4-Play

    Continued revenue shift to 4-Play CONSUMER 60 +0.8% -0.1% 0.0% 0.0% X-Play 4-Play revenue up revenue 6.1% YoY, (M€) & YoY 586 585 588 589 586 585 representing 33% of variance Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Total Consumer revenue -4.8% -5.2% -4.9% -4.8% +9.8% +7.2% +7.2% +6.1% 4-Play 2-Play reve

  61. Slide 61: Increasing number of customers on 4-Play

    Increasing number of customers on 4-Play CONSUMER Improving Customer Mix, average RGU per HH/SO up 2.5% to 2.77 61 + 48,000 4-Play HH/SO YoY (+7.0%) 4-Play 670 683 697 711 721 731 25 % 415 411 402 397 391 387 growth & of HH/SO 2-Play EOP (000) growth & 11 14 14 13 10 10 on 4P EOP (000) -6 -4 -6 -6 -

  62. Slide 62: Overall ARPH up 0.6% YoY

    Overall ARPH up 0.6% YoY CONSUMER 62 Progress to +1.3% +0.8% +0.5% +0.6% € 65.8, on X-Play improved ARPH (€) & 65.3 65.4 65.9 66.2 65.7 65.8 customer mix YoY Variance Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 -0.6% -1.2% -1.5% -1.7% +1.3% +1.1% +1.0% +1.0% 4-Play 2-Play ARPH (€) ARPH (€) & & YoY 112.4 112

  63. Slide 63: Annualized full churn rates

    Annualized full churn rates CONSUMER 63 Convergent HH/SO X-Play maintained very low full Annualized churn rates, in spite of 13.4% 14.5% 13.6% 14.3% full churn rate 13.1% 11.9% competitive intensity Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 4-Play 2-Play Annualized Annualized full churn 3.6% 3.4% 3.6% ful

  64. Slide 64: Enterprise results

    Enterprise results

  65. Slide 65: Enterprise

    Enterprise ENTERPRISE 65 +1.1% +0.5% +3.3% +0.8% +2.4% +2.2% -0.8% Revenue (M€, YoY) 1,400 1,415 340 369 351 351 347 366 Ongoing change in revenue Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 mix from high-margin connectivity services to labour-intensive ICT services. +5.5% +10.4% +3.5% +8.0% +0.

  66. Slide 66: Enterprise Revenue

    Revenue ENTERPRISE 66 6 -2 369 -3 0 -3 -1 1 366 Q4’18 Enterprise revenue -0.8% YoY Q4 (M€) -0.8% + Solid mobile customer growth drives +0.9% Mobile Q4'17 Fixed Fixed Mobile ICT Advanced Tango Terminals Q4'18 Service revenue Voice Data Services Business & others Services + ICT benefitting from the 1

  67. Slide 67: Fixed Voice

    Fixed Voice ENTERPRISE 67 -7.1% 0 -8.7% -9.7% -7.1% -7.3% -7.2% -6.7% Fixed voice revenue (M€) 218 203 & YoY variance 53 52 53 51 49 49 Ongoing rationalization by 0 customers on Fixed line Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 connections, lower usage, technology migrations to VoIP and com

  68. Slide 68: Fixed Data

    Fixed Data ENTERPRISE 68 Flattish Data Connectivity revenue (largest part in this -2.7% -1.0% -0.8% -0.4% +0.8% -0.9% -0.3% product category) Fixed data revenue (M€) 61 62 61 62 62 61 247 246 & YoY variance Continued customer Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 migration to Proximus’ VPN

  69. Slide 69: Mobile Services

    Mobile Services ENTERPRISE 69 +4.1% +0.9 % Mobile service revenue (M€) Postpaid excl. M2M growth Mobile service revenue & YoY variance & EOP (000) Growing customer base still -0.8% -0.4% -2.6% +0.9% +0.9% +0.9% 0.0% 1,010 1,021 1,028 compensating for increased 999 975 988 competitive price pressure

  70. Slide 70: ICT

    ICT ENTERPRISE 70 Successful strategy of expanding portfolio well beyond pure connectivity services. Revenue up 3.9% on a high comparable base. Strengthened ICT portfolio, including acquisition of small-sized, highly specialized companies: ICT revenue (M€) & YoY +9.5% 2018 +5.3% +1.0% +6.5% +6.8% +3

  71. Slide 71: Advanced Business Services

    ENTERPRISE Advanced Business Services 71 Revenue from Smart Mobility and convergent business solutions, down from a high comparable base. Advanced Business Services (M€) 7 9 7 7 9 8 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 +6.2% 28 30 FY'17 FY'18 Convergent Solutions

  72. Slide 72: Wholesale

    Wholesale WHOLESALE Stable Q4 revenue with higher traffic-driven 72 roaming revenue offset by less traditional wholesale revenue. Direct margin affected by lowered WS roaming rates, benefitting Consumer and Enterprise margin. Revenue (M€) & YoY +9.5% +10.3% 4.0% -4.9% -0.3% -8.7% -2.7% 56 207 201 51

  73. Slide 73: BICS results

    BICS BICSresults results

  74. Slide 74: BICS segment result

    BICS segment result 74 +8.9% TeleSign, consolidation +3.1% +0.5% +2.0% -6.6% -3.9% annualized since 1 -12.1% November 2018. Revenue (M€) & YoY 336 339 319 340 347 341 1,320 1,347 variance Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'17 FY'18 +15.5%+18.8% +18.5%+14.5% Direct margin benefitting from consoli

  75. Slide 75: Non-Voice Voice

    Non-Voice Voice Firm growth on SMS A2P volumes, benefitting DM decline limited to 1.7%, TeleSign support 75 from BICS –TeleSign combination. lapsing since November. BICS - Non Voice Revenue (M€) BICS - Voice Revenue (M€) +40.8% -0.5% -5.0% -6.1% +25.3% +32.0% +27.0% +18.6% +7.9% -17.4% -14.5% -13.6%

  76. Slide 76: Appendix

    Appendix APPENDIX 76 Pricing 77 Spectrum 82 Mobile traffic 84 Headcount 85 Shareholder structure 86 Contact 87

  77. Slide 77: Mobilus/Tuttimus pricing

    Mobilus/Tuttimus pricing APPENDIX 77 Including Tuttimus price increase 1st January’ 19 Prices incl. VAT Mobile only S M Update L NEW XL Unlimited 1.5 GB 5 GB 10 GB Unlt. data * Unlt. sms Unlt. sms Unlt. sms Unlt. sms 120 min. Unlt. min Unlt. min Unlt. min + Unlimited Mobile data for your favourite A

  78. Slide 78: Bizz Mobile portfolio

    Bizz Mobile portfolio APPENDIX 78 Prices excl. VAT Mobile only S M L XL Unlimited 1.5 GB 5 GB 7 GB Unlt. data * Unlt. sms Unlt. sms Unlt. sms Unlt. sms 100 min. + fix Unlt. min Unlt. min Unlt. min + 600 min intl. + Unlimited Mobile data for your favourite App Standalone price: € 13 € 23 € 32 € 49 Mu

  79. Slide 79: Scarlet Fixed portfolio

    Scarlet Fixed portfolio APPENDIX 79 Positioning Scarlet as no frills brand, with very attractive pricing for ‘price seekers’

  80. Slide 80: Scarlet Mobile portfolio

    Scarlet Mobile portfolio APPENDIX 80 New simplified offers as from 28th February 2019 2 GB 3GB NEW 5GB 10€ 5GB 10€ NEW 10GB 15€ 10GB 15€

  81. Slide 81: Spectrum: current ownership and new spectrum

    Gridmax Spectrum APPENDIX 81 Current ownership and new spectrum Expiry dates Proximus OBEL Telenet 29/11/33 800 MHz 2 x 10 2 x 10 2 x 10 Proximus OBEL Telenet 15/03/21 900 MHz 2 x 12.4 2 x 11.6 2 x 10.2 Renewal 1,800 Proximus OBEL Telenet 15/03/21 MHz 2 x 24.8 2 x 24.8 2 x 24.8 2,100 Proximus OBEL T

  82. Slide 82: Spectrum auction: reserved spectrum

    Spectrum auction APPENDIX 82 Reserved spectrum Frequency band Total capacity Spectrum cap Spectrum reserved For each existing For a new entrant operator 700 MHz 30 MHz duplex 10 MHz duplex - 5 MHz duplex Details of reserved spectrum as 900 MHz 35 MHz duplex 15 MHz duplex 5 MHz duplex 5 MHz duplex pu

  83. Slide 83: Spectrum auction: coverage obligations

    Spectrum auction APPENDIX 83 Coverage obligations Frequency band Obligations for existing operators Obligation for new entrant - 30% population after 3 years - 70% population after 1 year - 70% population after 6 years - 99.5% population after 2 years - 99.8% population after 8 years - 99.8% populat

  84. Slide 84: Mobile Data Traffic

    Mobile Data Traffic APPENDIX 84 Usage for National Data and Roaming Data continued to grow Data/user Total Traffic (Gb/user/month) X 1.6 X 1.6 Total National Traffic National Data Usage 1.3 1.4 1.6 1.8 1.8 2.2 1.6 YoY X Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Number o

  85. Slide 85: Headcount

    Headcount APPENDIX 85 Early Leave Plan & natural retirements leading to ~2,750 FTEs to leave End Q4’18, 13,391 -549 612 13,385 Proximus over civil servants @ 2016-2020 26% of Domestic -307 258 headcount -20 (gross outflow - not including hiring to cover business needs) Proximus SA age pyramid (excl.

  86. Slide 86: Shareholder structure

    Shareholder structure APPENDIX 86 Total number of shares Free-float Belgian government Number of % shares % Voting % Dividend Number of Number of ~€ 7.6 Bn shares rights rights shares with shares with voting rights dividend rights Market Capitalisation* Belgian state 180,887,569 53.51% 56.05% 55.91%

  87. Slide 87: For further information

    For further information 87 Investor relations Nancy Goossens Sarah Franklin +32 2 202 82 41 +32 2 202 77 11 Director Investor Relations Investor Relations Manager E-mail: [email protected] Proximus investor relations website: www.proximus.com/en/investors

Proximus — FY2018 Earnings Presentation on 6ix