Royal KPN NV · EURONEXT:KPN
Royal KPN NV — Q1 2009 Earnings Presentation
66 slides from Royal KPN NV's earnings presentation, Apr 28, 2009
Slide 1: First Quarter Results 2009
First Quarter Results 2009 28 April 2009
Slide 2: Safe harbor
Safe harbor Non-GAAP measures and management estimates This presentation contains a number of non-GAAP figures, such as ‘existing’ and ‘disposed’ revenues and other income, EBITDA and free cash flow. These non-GAAP figures should not be viewed as a substitute for KPN’s GAAP figures. KPN defines EBIT
Slide 3: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 3
Slide 4: Highlights Q1
Highlights Q1 • Solid first quarter results • Revenue and EBITDA growth for Dutch Telco business1 • Continued profitable growth at Mobile International • Lower EBITDA at near stable revenues at Getronics, pre-emptive measures taken to maintain profitability • Implemented measures to mitigate impact
Slide 5: Financial highlights
Financial highlights • Financial performance Q1 ’09 – Revenues and other income from existing operations flat at € 3.4 bn – EBITDA from existing operations of € 1.2 bn, up 1.1% – Capex of € 0.5 bn, up 28% – FCF1 of -/- € 56 mn, due tax prepayment and reversal of working capital in Q1 ’09 • Agreement
Slide 6: Impact of economic downturn
Impact of economic downturn Ability to adapt quickly to economic conditions with relatively flexible cost base • Limited impact from economic downturn in consumer markets, impact in business market now apparent – No material change in churn, bad debtors and trading down in consumer markets – Order i
Slide 7: Outlook
Outlook Focus on EBITDA, free cash flow and shareholder returns Outlook Shareholder returns • Macro-economic conditions deteriorated • Committed to continue delivering since start of ‘Back-to-Growth’ strategy industry-leading shareholder returns – Attractive dividend policy of 40-50% • Focus on EBIT
Slide 8: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 8
Slide 9: Group results Q1 '09
Group results Q1 ’09 € mn Q1 ’09 Q1 ’08 % • Flat revenues and other income Revenues and other income (reported) 3,396 3,570 -4.9% from existing operations – Getronics revenues (disposed) 14 192 n.m. – Down 4.9% including disposed Revenues and other income (existing) 3,382 3,378 0.1% operations Getro
Slide 10: Group cash flow Q1 '09
Group cash flow Q1 ’09 Free cash flow impacted by working capital reversal and tax prepayment € mn Q1 ’09 Q1 ’08 % • Free cash flow of -/- € 56 mn Operating result 632 648 -2.5% in Q1 ’09, due to one-off items Depreciation and amortization1 602 583 3.3% – Reversal of non-structural Interest paid/rec
Slide 11: Free cash flow analysis
Free cash flow analysis Underlying free cash flow of € 320 mn in Q1 ’09 excluding one-off items € mn Free cash flow analysis Q1 ’08 – Q1 ’09 351 +3 -29 +1 -100 +34 320 -150 +60 -226 -56 EBITDA Interest Taxes Capex Working Other Reversal FCF impact Q1 ’08 capital Q1 ’09 non- from tax Q1 ’09 (reported
Slide 12: Analysis of results The Netherlands
Analysis of results The Netherlands Dutch Telco business performing well, Getronics revenues and EBITDA down Revenues and other income EBITDA € mn Q1 ’09 Q1 ’08 % Q1 ’09 Q1 ’08 % Consumer 1,031 1,002 2.9% 244 227 7.5% Business 634 623 1.8% 196 178 10% W&O (national, excl. book gains) 735 759 -3.2% 4
Slide 13: Analysis Dutch Telco business
Analysis Dutch Telco business Growth in revenues and EBITDA in Q1 ’09 € mn Revenues and other income • Revenues and other income up +2.1% 2.1% y-on-y in Q1 – Revenues and other income up 1.7% excluding Debitel acquisition – Slowdown in line loss 1,842 1,862 1,832 1,824 – ARPU increases, especially i
Slide 14: Dutch Telco business by segment
Financial review Dutch Telco business by segment Solid revenue and profitability trends in Q1 ’09 € mn 22.7% 22.7% 21.5% 18.6% 23.7% • Again solid revenue and profitability Consumer trends, supported by low net line loss 1,002 1,035 1,050 1,041 1,031 • Continued upward trend in wireless • EBITDA mar
Slide 15: The Netherlands by segment: Getronics and iBasis
Financial review the Netherlands by segment Actions taken at Getronics to maintain profitability, focus on EBITDA at iBasis € mn • Revenues down 1.1% y-on-y in Q1 7.2% Getronics (existing) • EBITDA down € 35 mn y-on-y, to a 3.7% 3.2% large extent from one-offs − Q1 ’08 positively impacted by € 9 mn
Slide 16: Mobile International by segment
Financial review Mobile International by segment Continued profitable growth in Germany and Belgium € mn 37.6% 38.1% 40.0% 38.9% 41.6% • Revenues and other income up 2.5%, Germany with service revenue growth of 4.1% 755 808 840 815 774 • Continued strong EBITDA, growing by Q1 '08 Q2 '08 Q3 '08 Q4 '0
Slide 17: Group financial profile
Group financial profile Financial profile further strengthened with € 1.5 bn bond issues in February € bn Debt Financing policy 13.0 13.6 11.9 12.1 12.1 2.5x 2.3 2.3 2.4 2.3 2.0x 11.7 11.7 2.2 10.9 11.3 10.9 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Gross Debt Net Debt Ne
Slide 18: Pension plans the Netherlands
Pension plans the Netherlands Agreement with pension funds for reaching 105% coverage ratio before 2013 Situation per end of Q4 ’08 Situation per end of Q1 ’09 • Pension plans impacted by declining • Agreement with KPN pension funds in interest rates and deterioration of order to reach 105% coverage
Slide 19: Regulation
Regulation Clarity on MTA in Germany, conditions for spectrum auctions still unclear Status Impact • Two MTA reductions for KPN in next two quarters • No new regulation, MTA the – KPN: from 9.0 ct to 8.0 ct per 1 April, 7.0 ct per 1 July impact already taken Netherlands – Vodafone: from 9.0 ct to 7.
Slide 20: Risk management
Risk management Key risks addressed and taken into account for outlook Potential risk Risks addressed • Negative impact on revenues, • Pre-emptive and corrective Economic EBITDA and free cash flow from measures taken to protect downturn economic downturn EBITDA and free cash flow • Issued € 1.5 bn i
Slide 21: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO The Netherlands Mobile International Concluding remarks Ad Scheepbouwer, Chairman and CEO 21
Slide 22: Consumer wireline
Consumer wireline Succesfully managing customer base for value X 1,000 Net line loss1 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 • Net line loss stabilizing at low levels, -5 -30 -20 -25 25k in Q1 ’09 Net line loss -40 -70 • Maintaining solid position in broadband with stable market share of 44% € ARPU 29 3
Slide 23: Consumer wireless
Consumer wireless1 Solid performance in wireless € mn • Service revenues up 18% in Q1 ’09 • Like-for-like growth rate (excluding Service 394 429 441 423 465 Debitel) of 7.6% y-on-y revenues • Coming quarters impacted by MTA and roaming reductions Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 mn 6.8 6.0 6.1 6.1
Slide 24: Business wireline
Business wireline Robust performance in wireline, as a result of managed migration to IP € mn • Revenues in Q1 ’09 flat y-on-y Revenues1 373 378 371 384 374 • Solid profitability as a result of focus on costs Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 1.7 1.6 1.6 1.6 1.5 • Lower revenues in voice & internet
Slide 25: Business wireless
Business wireless Overall satisfactory performance in wireless services € mn 234 243 238 244 247 • Service revenues up 5.6% in Q1 ’09 y-on-y Service • Total customer base up 17% y-on-y to revenues 1.6 mn • Coming quarters impacted by MTA Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Total voice & data Data (ex
Slide 26: Getronics
Getronics Risk profile substantially improved and strong progress on strategic priorities Revenues by segment • Getronics acquired to create prime 2007 2008 (existing)1 contractor for managed ICT services – Customers increasingly requiring all ~20% ~40% telecom and ICT services from one vendor ~50%
Slide 27: Getronics
Getronics Pre-emptive measures taken to maintain profitability goals Operational performance Q1 ’09 Pre-emptive measures taken • Total revenues down 1.1% y-on-y in Q1 • Reduction in personnel costs, as a pre- – 6% growth y-on-y in Benelux operations emptive measure to maintain long-term – 17% declin
Slide 28: Reggefiber
Reggefiber Further detail on JV structure Ownership structure • Reggeborgh contributed € 273 mn in net assets – Homes passed, homes activated and projects under construction Reggeborgh • KPN contributed € 190 mn in assets and cash – € 100 mn in cash in Q4 '08, € 74 mn in Q1 '09 41% Reggefiber 59% •
Slide 29: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO The Netherlands Mobile International Concluding remarks Ad Scheepbouwer, Chairman and CEO 29
Slide 30: Market outperformance
Market outperformance Confident to continue market outperformance in Germany and Belgium Germany Belgium Service revenue growth (y-on-y) 8.1% 7.3% 7.4% 6.8% 5.4% 6.2% 6.4% 5.5% 4.1% -2.7% 1% -2% -3% -2% -1% -1% -1% -4% Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 22% EBITDA
Slide 31: Operating review Germany
Operating review Germany Continued profitable growth from ‘Challenger’ business model Net adds • Net adds of 261k in Q1 ’09 17.8 18.0 15.4 16.2 17.0 – Lower net adds as result of clean-up of ~300k inactive Pre Paid customers 92 105 – Post Paid net adds in line with Q1 ’08 134 48 – Share of new brand
Slide 32: Operating review BASE
Operating review BASE Continued solid growth, in line with previous quarters Net adds • Net adds of 52k in Q1 ’09 3.1 3.2 3.4 3.5 – Lower net adds as result of clean-up of 93k 3.0 inactive Pre Paid customers 21 – 14k Post Paid net adds, in line with earlier 6 15 quarters 15 183 14 131 87 132 • Servi
Slide 33: Rest of World
Rest of World Growth in Spain and France, increased competition in cultural segment • Further strengthening position as leading MVNO in Spain Spain • Positioned to benefit from increased price sensitivity among consumers • New wholesale partner Banco Santander launched in March • Simyo launched in J
Slide 34: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 34
Slide 35: Concluding remarks
Concluding remarks • Solid first quarter results • Revenue and EBITDA growth for Dutch Telco business • Continued profitable growth at Mobile International • Lower EBITDA at near stable revenues at Getronics, pre-emptive measures taken to maintain profitability • Implemented measures to mitigate imp
Slide 36: Q&A
Q&A
Slide 37: Annex
Annex For further information please contact KPN Investor Relations Tel: +31 70 44 60986 Fax: +31 70 44 60593 [email protected] www.kpn.com/ir
Slide 38: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q1 ’09 Q1 ’08 Revenue effect MTA tariff reduction Group -25 -43 EBITDA effect MTA tariff reduction Group -10 -25 Book gain on sale of subsidiaries W&O / Other 6 Book gain on sale of real estate W&O 8 11 Restructuring charg
Slide 39: MTA regulation
MTA regulation 15 Aug ’07 € cents per minute 1 July ’08 1 April ’09 1 July ’09 KPN 10.0 9.0 8.0 7.0 The Netherlands Vodafone 10.0 9.0 9.0 7.0 T-Mobile 11.4 10.4 10.4 8.1 Avg. asymmetry 1.4 1.4 2.4 1.1 • MTA tariffs valid from 1 April 2009 until 30 November 2010 Germany – T-Mobile / Vodafone lowered
Slide 40: Impact MTA reduction
Impact MTA reduction € mn Q1 ’09 1 Revenues EBITDA Germany - - Belgium -7 -5 Rest of World - - Mobile International -7 -5 Consumer -11 -4 Of which: Mobile Wholesale -2 -1 Business -5 -1 Wholesale & Operations -5 - The Netherlands -21 -5 Intercompany 3 - KPN Group -25 -10 1 Defined as Operating resul
Slide 41: Restructuring charges
Restructuring charges € mn Q1 ’09 Germany - Belgium - Rest of World - Mobile International - Consumer 1 Business - Getronics -3 Wholesale & Operations -2 The Netherlands -4 Other -2 KPN Group -6 41
Slide 42: Operating expenses
Operating expenses € mn Q1 ’09 Q1 ’08 % Salaries and social security contributions 546 637 -14% Cost of materials 209 249 -16% Work contracted out and other expenses 1,231 1,260 -2.3% Own work capitalized -21 -24 -13% Other operating expenses 197 217 -9.2% Depreciation1 392 409 -4.2% Amortization1 2
Slide 43: Analysis operating expenses: Salaries & Cost of materials
Analysis operating expenses Salaries & Cost of materials € mn Salaries Y-on-Y decrease • Continued headcount reductions, supported by 18.0% Getronics divestments 16.1% 15.5% 16.1% 12.0% Q-on-Q decrease • Divestment of Business Application Services in Q4 ’08 and Business Solutions in Q1 ’09 637 438 5
Slide 44: Analysis operating expenses: Work contracted out & Other
Analysis operating expenses Work contracted out & Other € mn Work contracted out Q-on-Q decrease 36.7% 37.0% • Divestment of Business Application Services in 35.7% 36.5% 36.3% Q4 ’08 and Business Solutions in Q1 ’09 • Impact of lower revenues at iBasis in Q1 ‘09 1,260 1,335 1,332 1,338 1,231 Q1 ’08
Slide 45: Analysis operating expenses: Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y decrease • Lower asset base due to less Capex spending in 11.6% 11.1% 11.1% 11.0% 11.6% prior years 409 407 401 397 392 Q1 ’08 Q2 ’08 Q3 ’08 Q4 ’08 Q1 ’09 Depreciation % of Revenues € mn Amortization1 Q-on-Q decrease 8
Slide 46: Personnel
Personnel • New organizational structure since 01 ’09 – 3,284 FTE migrated from KPN Business market to Getronics 43,409 • Decrease of 7,771 FTE y-on-y 42,976 – Reduction of 1,255 FTE in the Netherlands 38,919 (excl. Getronics and acquisitions) 8,372 8,240 36,702 4,840 35,638 – Reduction of 6,617 FTE
Slide 47: Tax
Tax P&L Cash flow Fiscal units (€ mn) Q1 ’09 Q1 ’08 Q1 ’09 Q1 ’08 Dutch activities -91 -98 -608 -104 Getronics 10 -1 -2 - German Mobile activities -50 -35 -1 - Belgian Mobile activities -8 -9 - - Other -2 - -1 -2 Total -141 -143 -612 -106 • Tax prepayment of € 598 mn to Dutch tax authorities in Q1 ’
Slide 48: Net cash flow from operating activities
Net cash flow from operating activities € mn Q1 ’09 Q1 ’08 Operating Result 632 648 Depreciation, amortization and impairments 602 583 Interest paid -158 -129 Income tax paid -612 -106 Other income -5 -15 Share based compensation 6 2 Change in provisions -42 -61 Net cash flow from operating activiti
Slide 49: Total cash flow
Total cash flow € mn Q1 ’09 Q1 ’08 Net cash flow from operating activities 59 648 1 Capex -456 -356 Acquisitions -80 -52 Disposals real estate 14 13 Disposals other 47 7 Other 2 -9 Net cash flow from investing activities -473 -397 Dividends paid - - Share repurchases -315 -199 Debt financing 1,476 -
Slide 50: Capex
Capex1 € mn Q1 ’09 Q1 ’08 % Germany 142 68 >100% % Revenues Germany 18% 9.0% Belgium 18 18 0% % Revenues Belgium 9.4% 9.9% Rest of World 1 2 -50% % Revenues Rest of World 6.3% 33% Mobile International 161 88 83% % Revenues Mobile International 16% 9.3% Consumer 53 45 18% % Revenues Consumer 5.1% 4.5
Slide 51: Balance sheet
Balance sheet Assets Equity & liabilities € bn € bn 24.5 24.2 24.4 23.9 25.1 24.5 24.2 24.4 23.9 25.1 3.5 3.7 5.7 4.6 4.0 3.8 5.8 5.7 5.7 5.7 1.4 1.4 1.4 1.3 Goodwill Group equity 3 1.5 3.1 3.4 3.3 3.2 3.2 Licenses Provisions 7.7 1 12.0 12.8 13.0 14.4 Non-current 13.0 7.8 7.7 7.7 7.7 PPE liabilities
Slide 52: Share repurchase progress
Share repurchase progress Date1 Value (€ mn) mn shares Avg. share price (€) Q4 ’08 101.9 9.7 10.54 January 134.3 13.0 10.36 February 77.0 7.3 10.49 March 104.2 10.6 9.87 Q1 ’09 315.5 30.9 10.23 April 59.2 6.2 9.55 Total 476.6 46.8 10.20 • € 0.4 bn of share repurchases in 2009 – € 1 bn for program 20
Slide 53: Debt summary
Debt summary € bn Q1 ’09 Q4 ’08 Q1 ’08 Bonds 12.96 11.44 10.20 Eurobonds 10.62 9.12 8.42 Global bonds 2.34 2.32 1.78 Other debt 0.59 0.60 1.18 Other loans at Royal KPN1 0.14 0.14 1.11 Consolidated debt 0.45 0.46 0.07 Fair value financial instruments 0.08 0.06 0.53 Total debt 13.63 12.10 11.91 – of w
Slide 54: Debt portfolio
Debt portfolio Breakdown of € 13.6 bn gross debt1 6% Financial 16% 78% Other instrum ents 4% 1% Global bonds 17% EUR USD2 GBP2 8% Eurobonds 92% 78% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fina
Slide 55: Consumer voice market
Consumer voice market1 mn Q1 ’09 Q4 ’08 Q1 ’08 KPN PSTN / ISDN 2.27 2.36 2.68 Wholesale Line Rental (WLR) 0.41 0.39 0.34 Total traditional voice 2.68 2.75 3.02 KPN VoIP 1.13 1.09 0.92 Cable VoIP 1.32 1.26 1.14 Alternative DSL VoIP 0.35 0.35 0.30 Total VoIP 2.88 2.70 2.36 Cable voice analogue 0.04 0.
Slide 56: Unbundling tariffs
Unbundling tariffs SLU, ODF, colocation set by OPTA; backhaul and WBA based on deal pricing Unbundling in current network Category Monthly tariff Line sharing (LLU) € 0.19 / line MDF Node Fully unbundled (LLU) € 7.83 / line SDF colocation KPN / Telco MDF colocation € 473 / footprint / year ~28,000 1
Slide 57: Pricing: Triple-play packages FttH and FttC
Pricing Triple-play packages FttH and FttC Gold Silver Bronze Price per month € 110 € 80 € 65 Up to 100 Mb download 50 Mb download 30 Mb download Broadband 6 Mb upload 5 Mb upload 3 Mb upload >100 channels >70 channels >50 channels FttH TV (incl. football package) IPTV IPTV IPTV Unlimited calls to n
Slide 58: Service revenue growth Mobile International
Service revenue growth Mobile International Strong underlying growth outperforming the market Service revenue growth Germany Service revenue growth Belgium (BASE) 12.2% 9.9% 11.0% 8.5% 8.1% 8.0% 9.5% 8.6% 6.8% 6.4% 6.8% 7.3% 7.4% 5.5% 6.2% 4.1% 4.1% 5.4% 5.4% Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 -2.7%
Slide 59: Dutch wireless services disclosure
Dutch wireless services disclosure Q1 ’09 Q4 ’08 Q1 ’08 Service revenues (€ mn) 767 752 705 − Consumer 465 423 394 − Business 247 244 234 − Other Dutch activities1 55 85 77 SAC / SRC (€) − Consumer 139 150 142 − Business2 289 284 296 1 Indicates amongst others Mobile Wholesale NL, Simyo and visitor
Slide 60: KPIs Consumer Voice
KPIs Consumer Voice Voice Q1 ’09 Q4 ’08 Q1 ’08 Market penetration1 – Broadband 81% 80% 78% – VoIP penetration 48% 46% 42% Market share – Voice2 ~55% >55% >55% – Traditional voice3 >75% >75% ~75% – VoIP 41% 41% 39% – Broadband4 44% 44% 44% – TV 12% 11% 8% Access lines (x 1,000) 3,395 3,444 3,606 – PS
Slide 61: KPIs Consumer Broadband, TV & Wireless
KPIs Consumer Broadband, TV & Wireless Broadband Q1 ’09 Q4 ’08 Q1 ’08 Broadband ISP customers (x 1,000) 2,556 2,536 2,443 – KPN 1,145 1,129 1,112 – Het Net 684 680 659 – XS4ALL 289 291 285 – Other 438 436 387 Broadband ARPU (€) 31 30 29 TV Q1 ’09 Q4 ’08 Q1 ’08 – Subscribers (x 1,000) 835 775 553 – A
Slide 62: KPIs Business Infrastructure Services
KPIs Business Infrastructure Services Wireline Q1 ’09 Q4 ’08 Q1 ’08 Market share voice1 ~50% ~50% >50% Access lines (x 1,000) 1,565 1,581 1,672 – PSTN 735 745 799 – ISDN 803 812 857 – VoIP 27 24 16 Business DSL 126.9 119.0 100.8 Traditional voice ARPU (€) 52 52 51 − Access 27 27 26 − Traffic 25 25 2
Slide 63: KPIs Getronics
KPIs Getronics Q1 ’09 Q4 ’08 Q1 ’08 Service revenues (€ mn) 448 523 460 Workspaces (in mn) – Serviced IT workspaces1 1.6 n.a. 2.0 – Serviced Voice workspaces 0.7 0.6 0.4 ICT Services Housing & Hosting (x 1,000) − Housing services (# m2) 24.9 21.6 15.5 − Hosting services (# servers) 9.8 8.9 7.7 1 Num
Slide 64: KPIs Wholesale & Operations
KPIs Wholesale & Operations Wholesale & Operations Q1 ’09 Q4 ’08 Q1 ’08 Retail voice (without ADSL) 3,828 3,915 4,339 Local loop (x 1,000) MDF access lines1 3,751 3,702 3,527 – of which line sharing2 1,548 1,612 1,804 Unbundling3 (mn) 1.1 1.1 1.0 – Shared unbundled lines 0.3 0.3 0.3 – Fully unbundle
Slide 65: KPIs Germany
KPIs Germany Q1 ’09 Q4 ’08 Q1 ’08 Market share1 – Service revenue 15.4% 15.4% 14.7% – Base 16.4% 16.4% 15.3% Customers (x 1,000) 18,038 17,777 15,383 – Of which new brands 11,908 11,340 8,423 – Post Paid 6,739 6,676 6,345 – Pre Paid2 11,299 11,101 9,038 Service revenues (€ mn) 734 761 705 ARPU (€) 1
Slide 66: KPIs Belgium (BASE)
KPIs Belgium (BASE) Q1 ’09 Q4 ’08 Q1 ’08 Market share1 – Revenue >16% >16% ~16% – Base >25% >24% ~24% Customers (x 1,000) 3,497 3,445 2,992 – Post Paid 583 569 518 – Pre Paid2 2,914 2,876 2,474 Service revenues (€ mn) 154 159 145 ARPU (€) 15 16 17 – Post Paid 47 50 47 – Pre Paid 8 9 10 Non-voice as