26 February 2016

BICS Financials Enterprise Consumer Network

& IT Group

Highlights

Dominique Leroy CEO Group

Highlights

Solid commercial drivers in Q4

Customer base grew in Q4 by

+ 44,000 TV subscriptions

+ 28,000 Fixed Internet Lines

+ 50,000 Mobile Postpaid cards*

+ 20,000 3 & 4-Play Households/ Small offices

Q4 Financials**

+ 0.5% Core revenue

-0.3% Group revenue

+1.9 % Group Direct Margin

+ 8.4% Group EBITDA

*excl. M2M & Internet Everywhere cards ** variances on underlying basis, excluding incidentals. EBITDA variance including timing impact from Pylon Tax provision. 3

Solid growth for Consumer and Enterprise, partly offset by Wholesale decline

BICS closed a very strong 2015

Guidance metrics Revised Outlook 2015 (Oct 2015)

2015

ACHIEVED

Core underlying revenue Around 2% growth + 2.1%

BICS underlying revenue Slightly positive + 2.5%

Group underlying EBITDA 4% - 5% growth + 4.9%

Capex (excl. spectrum license)

About 900 million 926 million

4

Improved customer experience

Simplified offers

Network quality Moving customers to the best fit technology

Omni-channel approach & Service mindset

Customer centric & leaner organization

Improved content and innovative solutions, all under 1 brand

We constantly keep people connected

to the world so they can live better and work smarter.

5

Improved market positions & strong customer acquisition

Value based management to grow revenue and direct margin

Convergent offerings, enhancing value & loyalty

Reinforced cost control & simplification

6

+115.000 Fixed internet in FY15; +6.6% YoY Market share growing in all regions

44.2%

44.5%

46.1%

2015 2014 2013 2015 2014 2013

31.8%

32.9%

35.1%

45.8%

46.9%

47.1%

2015 2013 2014

+167.000* DTV in FY15; i.e. +10.5% YoY Market share growing in all regions

+167.000* Mobile Postpaid cards in FY15; i.e. +4.9% YoY Proximus outperformed the market

Fixed Internet market share DTV market share Mobile postpaid market share

+1.9 p.p vs. 2013

+3.3 p.p vs. 2013

+1.3 p.p. vs. 2013

National market shares

7

*Incl. Tango, excl. M2M and Internet Everywhere cards *total subscriptions, incl. multi-settop boxes

43%

40%

2014

2015

2014 2015

Total HH/SO 2,804 K 2,783 K

3-4-play 1,121 1,191

1-2-play 1,683 1,592

+3pp

Consumer increasingly selling 3-4 Play Enterprise Bridging connectivity and ICT

Solutions in both Telco & IT

Going beyond mere connectivity

Leverage our IT capabilities

Deliver endto-end solutions including datacenter services and security

Best-in-class business continuity and high availability Service Level Agreements

% of total HH/SO having 3 or 4 plays

+6.2%

8

2013 2014 2015 14 vs 13 15 vs 14

Total Core Underlying

Revenue 4,294 4,287 4,379 -0.2% +2.1%

Of which 1,343 1,307 1,334 -2.7% +2.1%

Of which 763 768 808 +0.6% +5.2%

Of which 261 286 328 +9.7% +14.5%

Of which 454 474 484 +4.3% +2.2%

Total Core Underlying

Direct Margin 3,342 3,286 3,340 -1.7% +1.6%

Value based Revenue growth in key services converted into growing Direct Margin

29 February 2016 Sensitivity: Unrestricted

ICT

9

Core Workforce

Expenses in M reduced by 4.4% in 2 years

Group Workforce

Expenses in M reduced by 3.6% in 2 years

1,199 1,159

1,146

2015 2014 2013

Ratio reduced by 2 p.p. in 2 years

28%

27%

26%

2015 2014 2013

OPEX WF cost as %

of Underlying

revenue

1,244 1,205 1,199

2015 2014 2013

Ratio reduced by 1 p.p. in 2 years

0

1 21% 21%

20%

2015 2014 2013

BICS workforce expenses went up on hirings to support their growing segments.

Proximus reducing internal and external workforce expenses.

* HR expenses related to internal and external workforce 10

1,900 1,880 1,884

2015 2013 2014

Total expenses kept under control, in spite of:

additional pylon tax provisions in 2014-2015

more spectrum fees

higher ICT & innovation investments

Some benefits of Simplification showing, larger part back-end loaded.

11

Fixed and Mobile networks were further upgraded

Progress in simplification projects and IT-transformation

Investment in content enrichment

120 16 75

852 978 926

Excl. Spectrum

Spectrum

2015 2013 2014

12

Geert Standaert - CTO Network

& IT

Proximus brings you instantly close to what matters: 3 investment priorities

Evolve architecture and

way-of-working to enable faster-

time-to-market and higher agility

Transform towards all-IP and fiber-

rich network to decrease operating

costs and increase efficiency

Support business and residential

needs for the next decades in terms

of bandwidth, capacity and latency

1 2 3

Build best-in-class network capabilities

Simplify to a lean and efficient company

Enable a more agile IT environment

14

1

Build

Proximus is addressing the real customer needs

0%

22%

43%

2015 2014 2013

Vectoring national coverage evolution (%)

Successful Vectoring roll-out

Rapid expansion of Vectoring technology,

one of the first to reach such scale

Strong average speed evolution

Average VDSL speed of 52 Mbps while one

third of population can have 100 Mbps

High quality of streaming

Best video quality in Belgium for Netflix

and one of the leading positions in EU

33 39 52

2015 2014 2013

4.28 4.09 3.81

Telenet Voo Proximus

TODAY

Average VDSL speed (Mbps)

Netflix speed index in December (Mbps)

100 Mbps for 30% of population

16

Residential The right digital experience for our customers

Customers on latest technology

Migrate to best available technology for a

best indoor experience

Enable a Full Digital experience

Sufficient downstream for a full digital

experience (speed-insensitiveness at certain point)

Boost the Cloud experience

Further optimize upstream performance

for a best cloud experience

SHORT-TERM

Estimated evolution of customers on WiFi ac

100 Mbps for 60% of population

Evolution of average Downstream (in Mbps)

Evolution of Upstream capability (up to Mbps)

2018 2015

x5

200K

>1000K

52

75-80

2018 2015

20

40

2018 2015

17

Residential Prepare for future by bringing fiber closer to the customer

Densify our FTTC network

Further extend our existing FTTC network

by gradually shortening loops

Enhance VDSL performance

Enhance performance with new

technologies and leverage mobile assets

Use alternatives for distant areas

Make use of alternative networks for

distant customers

MID-TERM

Build flexibility points to either

Shorten local loops to further enhance

copper capability

Proceed FTTH in Greenfields and

selective FTTH Brownfield projects

Upgrade existing VDSL network

through ultra-vectoring for up-to-250

Mbps speeds (from 17 to 35 MHz)

Uplift performance by combining VDSL

and 4G bandwidth

Use alternative networks like Coax for

customers too distant from fiber point

and in economically non-viable nets

Coax for Proximus is still subject to

Regulatory approval

18

Maximally reuse existing FTTC assets to scale fast & efficient

Capture any opportunity to prepare next generation

evolutions to assure future-proofness of investment

Increasing need of Businesses for higher downstream capacity,

more symmetrical bandwidth and low-latency

Deploy a Point-to-Multipoint fiber architecture (GPON1)

Enterprise Accelerate the deployment of Fiber-To-The-Enterprise

SHORT-TERM

Prepare for the future Enterprise fiber roll-out architecture

Fiber-To-The-Enterprise architecture (GPON) Pre-investment in future at attractive incremental effort

New empty ducts for future purposes where it makes sense

New Optical Platforms along the road where it makes sense

Flexibility points in light of future mobile densification and 5G

1 Gigabit Passive Optical Network New ducts ready for future expansion

New fiber Existing fiber

New fiber in existing ducts 19

Enterprise Maximally reuse existing assets to deploy Enterprise Fiber

Maximum reuse of existing fiber assets

SHORT-TERM

Existing FTTC assets (91% coverage), i.e. empty fiber ducts; will be

maximally reused to optimize costs and fasten deployment time

Proximus already has important fiber assets

One of the most dense FTTC networks in Europe, consisting of

21.000 km of fiber across the country

20

Proximus is a recognized world-pioneer in network innovation

World-recognized DSL pioneer

Long history in network innovation, driven

by competitive Belgian market

R&D and trials in pipeline

New innovations incubating to maximally

leverage copper, fiber and mobile assets

Strong strategic partnerships

Partnerships with academia & vendors for

co-development of new technologies

World 1st to deploy at national scale:

VDSL2 technology

VDSL2 Dynamic Line Management

VDSL2 Vectoring technology

G.fast as last-drop for fiber (2016-18)

Ultra-vectoring 35 MHz ( 2018-19)

Smaller active nodes to shorten loops:

o Hybrid backhauling

o Remote powering

o Sealed unit possibly underground

o Automatic Distribution Frame

Tessares spin-off with university UCL to

deliver fixed-mobile bonding

Partnership with NOKIA on Vectoring,

G.fast,

Collaboration with Technicolor &

Sagemcom for latest in-home evolutions

21

0.8% 0.7%

0.4%

2015 2014 2013

3G Voice dropped call evolution1

22.8 31.8

12.7

Upload national

Download largest cities

Download national

Average speed 4G(+) device1 (Mbps)

61.7% 79.6% 98.8%

2015 2014 2013

4G outdoor coverage1

Voice & Data Experience

TODAY

Ubiquitous 4G outdoor coverage and rapidly increasing 4G

indoor coverage (+35% in one year)

Mobile Coverage Extender for suboptimal local indoor coverage

Proximus bringing best overall mobile experience

Coverage as key driver for experience

Best voice experience with dropped calls below 0.5%

Best data experience with fastest 4G down- and upload speeds

and 4G+ in largest Belgian cities (30% population coverage)

41.7% 58.9%

93.4%

2015 2014 2013

4G indoor coverage1

1 Result based on Q4 2015 national drive test conducted by independent agency CommSquare

(% dropped calls)

22

Further maximizing experience by thinking customer

Experience availability

SHORT-TERM

Higher speed where it matters through

dual band Carrier Aggregation (4G+)

High quality voice through VoLTE

Further densification of public FON WIFI

hotspots

Optimization of popular services, e.g.

calling, video streaming, browsing,

uploading

Micro-analysis to optimize experience on

2G-3G-4G combined network, e.g. gaps,

service continuity,

Completion of nationwide ubiquitous 4G

indoor coverage similar to 2G

Further enhance experience through

network tuning from customer perspective

Further enrich existing calling and mobile

broadband experience

Experience tuning Experience enrichment

Indoor 2015 4G Similar to 2G

23

Active 4G mobile data users

787

222

927

261

EO 2015 EO 2014

Data usage 4G user vs non-4G user

39% 50% 58%

2015 2014 2013

Smartphone penetration

4G users &usage drive strong mobile data growth

TODAY

Higher customer appetite for smartphones (+8pp) resulting

in strong 4G mobile data growth (x3.6)

In Q4 2015, 4G data traffic surpassed 3G data traffic

Strong mobile data evolution by solid 4G take-up

Proximus mobile data growth nearly doubled

More than 1,200,000 active 4G mobile data users end of 2015

Mobile data consumption of a 4G active customer is on average

3.5 x higher (927 Mb) than a non-4G customer (261 Mb)

Total mobile data traffic vs 4G

EO 2015 EO 2014

X3.6

X1.7

4G

(Mb/month)

4G

597K

>1200K

EO 2015 EO 2014

24

Support exponential capacity growth while paving the way to 5G

Technology

MID-TERM

Renew existing 2G and 3G spectrum

but refarm to 4G (> 2020)

Add both licensed (e.g. 2600MHz)

and unlicensed spectrum

Small Cells to improve local

customer experience (Pilot 2016)

Small cells in high capacity zones to

handle data growth

Fit more bandwidth and devices within the

available existing spectrum

Refarm existing spectrum to more recent

technologies and add new spectrum

Gradually densify the network by bringing

smaller antennas closer to the customer

Spectrum Densification and and

Higher order MIMO

IoT on LTE

5G evolutions

(2018-2020)

25

2

Simplify

New Selling & Ordering Efficient workforce

88% 69%

46%

2015 2014 2013

Remaining legacy voice equivalent lines to be migrated to IP

Transformation of our internal IT systems

TODAY

54% of PSTN equivalent lines migrated

8 buildings outphased and 500 ton copper removed & sold

Important efforts past years to reduce operating costs

Outphasing of legacy Telephone-switching

Ongoing transformation of Selling & Ordering tools to

rationalize IT landscape while contributing to field efficiency

Order introduction time for a 4-play Pack reduced with 60%

Automatic order handling increased to over 80%

Number of repair field interventions reduced with 16%

Number of avoided calls: 1.000.000

27

Active transformation of Proximus towards all-IP to reduce costs

Outphase legacy telephony

Deploy an IP-ready 100 Gbps network

Build an SDN capable core to improve

redundancy with increased automation

Continue transformation mass market

Employ a Greenfield disruptive approach

for Professional Market

Complete consolidation of legacy Voice by

EO 2017 and outphase buildings by 2020

Evolve to a high-capacity architecture with

focus on high scalability and redundancy

Rationalize IT landscape to enable higher

agility and lower operating costs

Transform to one unified backbone

Rationalize IT platforms

Complete migration of fixed lines to IP

Switch-off remaining 575 switches

Outphase another 16 technical buildings

SHORT-TERM

Manage massive data growth at 50% of current cost by 2021

~35M recurrent cash savings beyond 2020 through IT transformation

4M recurrent group cash* savings as from 2015 growing to ~35M after 2020

*sum of Opex and Capex 28

1. Further consolidation of legacy copper

network: improved operational efficiency,

less maintenance costs,

2. Towards outphasing of ADSL technology:

simpler network, less operational and

maintenance cost,

3. Massive reduction or downsizing of

technical buildings: savings on facilities,

building maintenance, security, tax,

Extensive simplification towards a lean network

Network Simplification+

MID-TERM

To Copper Fiber

Street cabinet

Remote Optical Platform

Central Technical Office

Coax

From

VDSL

ADSL

Long Reach

FTTH

VDSL

VDSL COAX

FTTH

Expected benefits (> 2018)

29

3

Enable

From a silo to a more horizontal

and loosely coupled architecture

Bi-modal architecture with flexible

front-ends and robust back-ends

Enable one coherent digital

experience in all channels

IT as enabler for long term experience differentiation

SHORT-TERM

31

Evolve delivery capabilities to enable new business models & experience for faster time-to-market and higher scalability

Cloudification

Delocalization of functionalities from the

end-user device to the cloud

Softwarization

Abstraction & virtualization of functionalities in network & infrastructure

Openness

Open platforms for 3rd parties and integrate

external assets in Proximus experience

Automate network configuration (SDN)

& Deploy network functions (NFV) on a

Telco Cloud stack (Pilots 2016)

First implementations expected in 2017

following the renewal roadmap

Enable reuse of Proximus core assets

through API and drive easier interaction

between customers and third parties

Pilots ongoing and first products

expected as from 2016

SHORT & MID-TERM

Further automate Proximus data centers;

first steps will be taken through

automation via SDN as from 2016

Next steps are to further consolidate and

simplify the data center architecture

32

Dominique Leroy - CEO Consumer

positioned our Scarlet and Proximus brands to cover the entire spectrum of consumers

commercialized new convergent solutions on the market

made Proximus TV experience intuitive and modern, and enriched our content (Netflix, Eleven Sports Network and Kids offer)

improved the quality of our installation and repair processes and migrated our customers to the latest technology

optimized the experience in our sales channels

continued to transform ourselves through simplification and digitalization

Mobile Coverage Extender

Bizz Switch

V3 decoders

swap

Best Mobile Quality

OneDrive for

Business

Eleven Sports

Network

Bizz Experts

21 new Shops of the Future

Pack Migrations

My Proximus

Kids

34

Solid revenue growth for Broadband and TV

2013 2014 2015

1,465 1,593

1,759 +8.7%

+10.5%

27.9 27.7 27.9

2013 2014 2015

+0.6%

+3.6%

18.5 19.2 20.1

2013 2014 2015

+4.6%

-0.7%

506 520 558

2013 2014 2015

+7.3%

+2.8%

261 286 328

2013 2014 2015

+9.8% +14.5%

25.5%

26.3%

27.9%

2013 2014 2015

33.2%

33.2%

34.4%

2013 2014 2015

+1.6 p.p.

+1.2p.p. +0 p.p.

+0.8 p.p.

1,533 1,598 1,718

2013 2014 2015

+4.2% +7.5%

Very good customer growth* (in K)

Improved market share, also in Flanders

Sound ARPU trends (in )

Revenue Growth (in M)

Flanders Region**

Flanders Region**

**Telenet cable zone, incl 1/3 of Brussels

FIXED

35

*TV incl. multiple set top boxes

Strong market position in Mobile

Strong growth in Postpaid Prepaid erosion Mobile service revenue

Growing Postpaid* cards base (in K)

Back to growing ARPU

150 124

2014 2015

2,157 2,306

2,430

2013 2014 2015

Low Medium High

2013 2014 2015

30.4 29.1 29.4

2013 2014 2015

-4.3% 1.1%

+12p.p.

-9p.p.

Strong net adds in Mobile Postpaid* (in K)

Acquisition tiering improved

CBU Postpaid market share up by 1.1pp vs end 13

Reducing Prepaid loss (in K)

-274

-190 -150

2013 2014 2015

Mobile service revenue improving (in M)

1,034 1,000 1,010

2013 2014 2015

-3.3% +1.0%

*Excl Internet Everywhere

MOBILE

36

A strong uptake of 3 & 4 Play services

We developed Proximus Households/Small Offices towards convergence

Selling all our products to our customers, increasing their ARPU

Achieving higher retention

Convergence evolution RGU / HH and ARPH evolution Full churn per play FY15

% customers combining fixed and mobile

53% 56%

2015 2014

RGUs 3.38 3.38

4.81 4.84 4P

3P

2015 2014

Households& Small offices

641 662

480 529 4P

3P

2015 2014

ARPH 83.7 84.1

115.7 115.9 4P

3P

2015 2014 Average all plays 3P 4P

3.1%

9.6% 13.0%

+6.2%

CONVERGENT

37

Growth in total Consumer Revenue & Direct Margin

Value-driven revenue growth in Fixed and Mobile services leading to sound growth in Direct Margin

2,793 2,803

2,889

2013 2014 2015

2015 Direct Margin 2,196m +3.1% YoY

CBU Revenue (underlying) +0.4% +3.0%

38

we reconfirm our winning strategy

Grow our profitable market leadership through mobile led convergence, superior customer experience and brand preference

Mobile led convergence

Superior customer experience

Brand preference

39

We will reinforce our mobile quality leadership and deliver top of class user experience anywhere and on any screen, with professional specificities for SE

Mobile solutions Enhanced TV experience Professional market New opportunities

Further develop professional specific convergent solutions

Further explore new opportunities Improve coverage

Deploy latest technologies

Enrich MyProximus app with more valuable interactions

Boost smartphones penetration

Content aggregator strategy

New TV experience coherent on all screens with high interactivity

Swipe box enabling swiping content on TV screen

PABX in the Cloud

Bizz switch : different professional and private numbers on the same SIM

Security

Smartphone security Mobile back-up for

home broadband

Targeted advertising

40

Customer satisfaction following technical intervention

CBU Customer Experience*

We will further optimize our channels, bring the customer experience to the next level

One coherent Proximus experience across different channels (web, app, stores,) and cross all products (Fixed, Mobile, TV, Cloud,),

Exploit strengths of each channel and integrate the acquisition of The Phone House shops

Further personalization using data analytics

Optimize distribution channels to enhance experience and efficiency

All customers to our redesigned Proximus TV and TV app

Migrate customers on latest technologies (ADSL-VDSL migrations, swap settopbox to latest version,..)

Focus on customer experience

80% 83%

87%

2015 2014 2013 2015 2014

+2.1 p.p.

85% full installs in 2016

60% 75%

85%

2016 2015 2014

41

* Proximus KPI based on brand preference, overall satisfaction and touchpoint satisfaction.

Customers benefitting from the latest pack

Customers using MyProximus (in K) Residential customers using E-Billing

In 2016, we will further simplify

Think digital first and further improve efficiency

In communication, in sales and servicing (eg. support portals)

Revamp of Proximus.be and the MyProximus app with more valuable interactions for a higher digital experience

Think digital first

Simplify our products and portfolios

Manage value and reduce our costs

Exploit data analytics and geolocation to trigger upsell recommendations such as roaming

Be more efficient

MyProximus

430 531 640

2015 2014 2013

24% 38% 46%

2015 2014 2013

50% 85% 94%

2015 2014 2013 80K mobile migrations to new plans

100% of customers on latest pack

Phase out remaining 240K V3 decoders

Position Scarlet as the smartest alternative Proximity of the Proximus brand through quality and service

We will provide the best multi-screen experience to each member of the family/the company, indoor and outdoor

Brings you instantly close to what matters

Value seekers

TV Network Service

Keep feeding our brands and apply differentiated communication approach by region

Why should I pay more?

Smart shoppers

44% 56%

37% 47%

Fixed

Mobile

Double Digit growth of trio Customers Scarlet awareness increases

2014 2015

43

By continuing our winning strategy, and

bringing our operational costs down, thanks to Simplification and Cost efficiency programs,

we will continue to GROW.

Reinforce our value position

Excel in the

execution

44

Bart Van Den Meersche - Chief Enterprise Market Officer Enterprise

#NewPerspective Realised growth thanks to: new contracts with both Corporate customers (Belfius, ING, Worldline, )

and medium enterprises (Lukoil, Wibra, VWR, Clearchannel, )

successes in the Telco and ICT business (Swift, Astrid, Euroclear, Delhaize, )

new fiber projects (ING, Volvo, Carrefour)

Launched new solutions that help our customers do better business:

SME in the cloud

Engage Packs

Explore intense

Workplace as a service

Continued innovation:

launched first LoRa commercial offer

rolling out Road User Charging

extended Cyber Security portfolio

Further optimized costs

Reduced non-HR expenses with 10% YoY

46

26 February 2016

Since 2014 we stick to our customer-centric mission

Our mission

Be the nearby, reliable ICT partner that brings solutions to live better and work smarter, and that is easy to do business with!

47

Customer Experience improved YoY with

2.1pp

96% achievement of committed customer

SLAs in case of incidents

Increased Proximus workplace seats up to

88K

576K SIM cards

connecting objects Eco-system

partners X2

c

We make our offer as close as possible to the customers business needs. We focus on helping businesses to:

1. Keep their business

running 2. Create productive and

motivated employees 3. Collaborate smarter 4. Satisfy their customers 5. Innovate & grow

Customer-centric Convergence Best in market SLAs Proximity

High quality Networks

Innovation Cost efficient organization

Customer centric organization

Customer Experience +2.1pp* YoY

96% achievement of committed customer

SLAs

Increased Proximus workplace seats up to

88K

Portfolio simplification (Mobile Options -33%)

Cost optimization

566K active SIM cards connecting objects

Nr of partners in

Eco-system X 2

Best customer coverage (omni-channel) We make our offer as close as possible to the customers business needs: 1. Keep their business

running 2. Create productive and

motivated employees 3. Collaborate smarter 4. Satisfy their customers 5. Innovate & grow

Customer-centric Convergence Best in market SLAs Proximity

Highquality Networks

Innovation Cost efficient organization

Best mobile experience: solid gross adds & low ~10% Mobile churn

Explore & Fiber * Proximus KPI based on brand preference, overall satisfaction and touchpoint satisfaction.

48

1,311

1,338

-11

2

10

17

9

Underlying 2014 Fixed voice Fixed data ICT Mobile services Terminals & other Underlying 2015

1,305 1,311 1,338

2013 2014 2015

Underlying

943 + 0.7%

Progressing underlying revenue, +2.1% for 2015

2015 revenue up mainly on growing revenue from Mobile services and ICT

Revenue growth for a large part driven by Mobile Services revenue. Within the Fixed Business, higher revenue from ICT and Fixed Data more than compensated for the continued erosion of Fixed Voice revenue.

Increasing Direct margin

950

+0.4% +2.1%

49

Leading market position in Mobile (in K)

Roaming cut July 2014 annualized

ARPU from Mobile Data (national & roaming) +24% YoY

309 307 324

2015 2014 2013

+5.6%

-0.6%

32.0 29.5 29.7

2015 2014 2013

-7.5% +0.5%

2015 2014 2013

80

277

209 289

566

2014 2015

49 31

2014 2015 2015 2014 2013

814 863

894

+3.6% +6.0%

Net adds in VOICE and DATA* customer base

Mobile VOICE and DATA* cards base

Strong M2M net adds

M2M cards base

Mobile ARPU turnaround (in )

Back to Mobile Service revenue Growth (in M)

50

* Excluding Internet Everywhere cards and M2M

IT solutions enriching Telco solutions

Hybrid solutions combining platform-based solutions and integration business

Ensuring best-in-class business continuity

Double digit growth in security domain

425

444

455

2015 2014 2013

+4.6%

+2.3%

ICT revenue growth

50

Get into SHAPE to ANTICIPATE expected challenges, to INNOVATE and to EXCITE our customers

Shape Customer centric

organization & solution portfolio

Cost control

Anticipate challenges Pre-empt mobile

challenges

Accelerate Fiber to the Enterprise

New Communication & Collaboration

Innovate Internet of

Things

Data Analytics

Security

Excite Business

transformation

End-to-end Services

ICT industrialization

51

Customer centric:

Co creation & friendly user testing

5 value propositions

Vertical approach

Shape our portfolio to become more customer-centric and get fit for the future

Cost control:

Digitalization: online self-service

Efficient sourcing

Process improvements

Portfolio lifecycle management

52

Accelerate Fiber roll-out

better serve customer needs, higher bandwidth and lower latency

counter upcoming cable competition

new ICT propositions

Mobile: Fixed:

Network superiority

Further differentiate by mobile managed services

Prepare for roaming challenge by the implementation of a portfolio adapted to customer travel profiles

53

New communication and collaboration tools

Anticipate upcoming challenges initiated by competitors, regulation and changing customer behavior

New C&C solutions replacing legacy services, e.g

VoIP portfolio,

Enriched Voice Managed services

Call control: f.e. PBX in the cloud

Further focus on convergence

Increase business value for our customers through innovating activities and specific focus on transformational deals

Cooperate with strong solution providers,

Connect things with applications to make customers business processes smarter

Internet-of-Things Data analytics Security

Translate captured data in new insights to make smarter business decisions and develop new value proposals

Aiming to be n 1 ICT security provider in Belgium growing faster than the market

Target a double digit revenue growth from innovation

2015 2018 ~90M

54

Excite our customers by providing an excellent customer experience in every touch-point of their journey

Redesign internal processes, redesign portfolio and IT landscape

Business transformation E2E services ICT industrialisation

Customer centric after-sales services, converged over Telco & IT

IT & Telco solutions in a standard modular way

Uniform customer experience Invest in growing ICT segments

(NL & LUX)

Improve E2E customer experience, provisioning processes & profitability, while reducing operational costs

55

By

Shaping our portfolio to become even more customer-centric

Anticipating upcoming challenges initiated by competitors, regulation and changes in customer behavior

Increasing business value for customers through innovating activities

Exciting our customers by providing an excellent customer experience on every touch-point of their journey

we will continue to sustain our solid market position.

56

Daniel Kurgan - CEO BICS

Sending End user

Voice

49% of DM

Infrastructure

10% of DM

Signaling

Messaging

Roaming Data & VAS

Ensuring Transport and Interoperability

Mobile Data: 41% of DM

Fixed Operators

Mobile Operators

MVNOs

OTTs

xSPs

Local Partner

Fixed Operators

Mobile Operators

xSPs

Wholesale only, International only

Telecom Service providers

Local Partner Receiving End user

MISSION: Deliver converging international wholesale solutions to existing and future communications service providers worldwide

58

Transport services

Value Added Services

Infrastructure services

Mo

ve

up

th

e v

alu

e c

ha

in

Voice Messaging Signalling Data

Terrestrial cables Submarine cables Satellite

Business Intelligence (big data)

Fraud detection and remediation

Roaming Value added services

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Products Regions

Infrastr. Voice Mobile data EMEA Americas Asia

#4 Top-3

#1

Top-3

#2 Own footprint

#3 Own footprint

Other Level 3

PCCW-G KPN iBasis

IDT SAP

Comfone Comfone

KPN iBasis SAP

KPN iBasis PCCW-G

SAP

60

Customer portfolio

>1000 customers, including >400 Mobile operators

Connecting OTTs (business growth with OTTs >30% in 2015) and MVNOs

Neutrality

Neutral hub independent from major mobile groups

Integrated delivery model

One stop shopping solutions delivered over the same network, with 1 sales force and 1

service delivery engine

Financial health

Ability to self finance organic and inorganic growth/diversification

Consolidation track record

Successful integration of Swisscom (2005) and MTNs (2010) carrier operations

61

104 115 113 130145

120130 141 118

133

1,562 1,6451,666

1,577 1,616

0

500

1,000

1,500

2,000

0

50

100

150

200

250

300

350

2011 2012 2013 2014 2015

DM Voice

DM Non Voice

Revenue

Revenue

Destination mix (Voice)

Non voice business growth

Forex (very positive in 2015)

Direct Margin

Voice:

Overall volatile and (slowly) declining market

2015: strong margin management and one-shots more than compensated slight volume decline (in line with market)

Non Voice: continuously outgrowing the market (Signalling, Messaging, Roaming data and VAS)

OPEX

Diversification into more complex, labour intensive business (value added services) increases HR expense

Positive Forex impact

Low capex intensity . Capex increase driven by business growth.

Revenue and Direct Margin (M)

OPEX and CAPEX (M)

62

* Defined as EBITDA CAPEX ** Excluding sale of Homesend business in 2014 (19 M)

Low EBITDA margin

(voice dilutive effect) but high

Cash conversion

2015 record year for BICS

In 2016, accelerated investment

in resources to tap new growth

opportunities and continue to

transform BICS.

EBITDA and Operating Cash Flow* (M)

**

63

Cloud communication and traditional players disintermediation

Address new customer segments

Enable cross-border mobility of people

and objects

Leverage information available in the network

to offer BI services

Secure international communications

OPPORTUNITIES FOR

Big data and monetization of user information

Internet of things Fraud and Security

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CONSOLIDATE LEADERSHIP

FIT THE FACTORY FOR GROWTH

TRANSFORM THE COMPANY

Address new

Customers segments

Expand in Complementary

Geographies

Develop new

Products and features

BECOME GLOBAL

Optimize Core and Go beyond Boundaries

Products

Geographies Customers

Value Added Services

OTT & Cloud

Asia & Americas

Transport

EMEA Operators

65

Sandrine Dufour - CFO Financials

+2.2% +2.1%

Fixed and Mobile growth mitigated by lower mobile devices and flat ICT both on high comparable base

Q4 Core revenue up +0.5% Q415 in M

-0.3% +0.5%

FY15 in M

Consumer: + 1.1% YoY

Enterprise: + 1.4% YoY

TEC: - 11% YoY

- 2.7% YoY

67

+4.9% +3.6%

+8.4% +8.7%

Q415 in M

Q415

Core EBITDA further improved from prior quarters driven by:

solid Direct Margin growth

lower HR and non-HR costs, o/w timing impact 2014 Regional Pylon tax accrual.

BICS EBITDA up by 5.8% YoY FY15 in M

Initial impact from cost initiatives resulted in 20M Net savings vs. end-2013

(excl. BICS).

68

Ambition to realize ~260M gross

savings by 2018 Initiatives for Gross Opex savings

Partly offset by

Company-wide detailed cost programs to accelerate OPEX savings

Agile organization Optimize Sales channels Reduce support functions Structurally reduce contractors

Productivity & Efficiency Productivity gains Network simplification ICT industrialization Process optimization & automation

Volume deflation Improve customer experience to reduce

bad volumes

Digitalization E-billing E-ordering E-servicing

~ 260M

Gross savings

~ 100M

Net cost reduction

2015-2018

Increasing customer installed base

Capacity driven maintenance costs

Opex linked to mobile spectrum licenses

New taxes on e.g. electricity, real-estate

New skills needed for innovative solutions

Automatic wage indexations (3 expected to occur) & higher pension cost

Su

pp

orte

d b

y e

arly

lea

ve

pla

n

69

Investing in capacity and speed, both in Fixed and Mobile

Enriching content

Rebalancing Capex portfolio

Special focus on Fiber-to-the-Enterprise in 2016

978* 926 950

16 75

Capex excl. spectrum Spectrum

2015 2014 2016E

Mobile Fixed

2016E 2015 2014

Rebalancing Capex to Fixed investments

(M)

70

*Incl. Jupiler League

FY15 EBITDA to FCF

in M 2015 FCF initiatives offset by

120M settlement agreement on mobile tariff related litigation,

higher cash paid for Capex

less cash received from the sale of consolidated companies and buildings

less favorable change in working capital

FY14 EBITDA to FCF

in M

Underlying EBITDA

FIN result Income Tax

CAPEX paid

Working Cap

changes

Acquisitions/ disposals

Settlement litigation

Other

71

FCF

Transversal Cash Management initiative

Launched mid- 2015

Focus on all actionable working capital operating decisions

Active management to normalize FCF from high level at 2014-closing

Optimize a long-term sustainable level of FCF

As from 2016, Operating FCF, including Working Capital, is part of managements short-term incentive.

Accounts Receivables

Improved management of billing cycles

Better collection process

Inventory

Better forecasting of devices, overall successful joint offers and device sales

Delivery management of goods with our main vendors

Better invoicing of ICT projects

Accounts Payable

Payment terms optimization in line with market conditions

Proximus core

DIO: -5% Average 2015 vs 2014

DS0: -6% Average 2015 vs 2014

DPO: +8% Average 2015 vs 2014

72

YTD DEC15 in M

Net financial debt at 1,919M

Credit ratings: Standard & Poors A, Moodys A1 , both stable outlook.

500M Senior Unsecured Notes issued (due Oct 2025)

Cash tender on two outstanding 2016/2018 bonds, total of 370M repurchased.

DEBT MATURITY SCHEDULE in M

Net debt/EBITDA ratio @ 1.1

Average debt maturity extended

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2016 Outlook

Core underlying revenue Slight growth

Group underlying EBITDA Slight growth

Capex Around 950m

We expect to end 2016 with slightly growing Core revenue and Group EBITDA, in spite of the high comparable basis for BICS and the additional challenges that 2016 is expected to bring:

Proximus will operate in a new competitive landscape in Belgium

Roam-Like-At-Home regulation

Transitory period starting 30 April 2016.

Negative impact on Proximus Revenue and EBITDA estimated at -28M. Net impact expected to be lower due to positive elasticity on usage.

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1.00 1.00 1.00

0.50 0.50 0.50

Normal Interim

2015* 2014 2016E

* Subject to approval AGM 20 April 2016

1.50/share

2015

normal dividend*:

- Payment 29 April 2016

- Ex-dividend 27 April 2016

2016

Intention to pay out a stable dividend of EUR 1.50 per share

75

For further information

Investor relations

Nancy Goossens

+32 2 202 82 41

Director Investor Relations

Sarah Franklin

+32 2 202 77 11

Investor Relations Manager

E-mail: investor.relations@proximus.com

Proximus investor relations website: www.proximus.com/en/investors

mailto:investor.relations@proximus.comhttp://www.proximus.com/en/investors

Cautionary statement

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 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 Proximus 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.

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