Belgacom Presentation Q results March 2013

1

Q

Q4 2012 Results

per segment

Consumer – slide 29 Enterprise – slide 36 SDE&W – slide 42 S&S – slide 43 BICS – slide 44

Other topics

Shareholder structure – slide 46 Network & Spectrum – slide 47 Pricing – slide 53

New Telco Law – slide 58 Regulation & Legal – slide 59 Macro –slide 63

Belgacom Presentation

Q4 2012 results

March 2013

FY 2012 Overview

Executive summary – slide 3 Guidance’12– slide 4

Revenue – slide 5 Ebitda– slide 8 Capex– slide 9 FCF– slide 10

Shareholder return – slide 13 Outlook 2013 – slide 14

Q4 2012 Group

Highlights

P&L – slide 16

Q4 2012 Revenue – slide 17 Cost of Sales – slide 19 Non-HR expenses - slide 20 HR expenses – slide 21 EBITDA – slide 22 Operationals – slide 23

Cautionary Statement

“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

Executive summary on FY 2012

Slide 3

Belgacom

delivered on its

2012 financial

expectations

-

Group

revenue

grew versus 2011

-

EBITDA

as expected under pressure

-

Belgacom financially sound company

Competitive

dynamics

changed

Belgacom well

placed to face

the change

–

Convergence

strategy giving key support

–

Solid growth of

Fixed products

–

PACKS

increasingly with mobile

–

Mobile market

became more volatile in 2012

–

New Telecom law

accelerated customer rotation in Q4

–

Belgacom responded

to the new market conditions

+ 175,000 TV

+ 46,000 BB

+ 148,000 PACKS

+ 153,000 cards* - 196,000 cards*

*Excluding a cleaning of 19k internal cards as reported in the beginning of 2012

FY 2012 guidance achieved

Metrics

Revised Guidance FY’12

(excl. Telco Law)

Full-year 2012

(excl. Telco Law)

Group revenue

Up to +1%

+1.1%

Group EBITDA

Between

“-4% to -5% “

-4.9%

Capex/Revenue

Upper end of “10% to 12%”

11.6%

• The outlook did not take into

account the one-off accounting

adjustment on revenue (EUR -12

million) and EBITDA (EUR -34 million) recorded in the second quarter 2012 following the new Telecom Law that was passed on 28 June 2012.

Revenue 6

6,462

12

6,474

EBITDA 1,784 34

1,819

FY 2012 reported

Acc impact new telco law

FY 2012 after adjustment for

FY 2012

Group revenue

grew, underlying

revenue up 1.9% YoY

Slide 5

Success of TV,

growth in Fixed and

Mobile data, solid

revenue Tango

ICT &

mobile

data

Voice

volumes,

destination

mix, data

growth,

dollar

-46 MTR -40 Roaming -4 other

+0.9%

reported

+1.9%

Under- lying

FY 2012

CBU revenue

supported by

convergence strategy

Solid growth of

Fixed & Mobile

Data, Belgacom

TV and TANGO

+1.4%

reported

+1.5%

Under- lying

Revenue evolution – in million €

MTR and

Roaming

2,349

2,294

-46

_-2

_-17

10

2012

EBU revenue

, limited erosion in

challenging economic & competitive context

Slide 7

Organic revenue growth of mobile

data and growth ICT offsetting

pressure on voice, ex-regulation

-2.3%

reported

+0.4%

Under- lying

Revenue evolution – in million €

MTR and

Roaming

FY 2012

Group

ebitda

under pressure,

underlying 1.1% lower

-40m Roaming

-12m MTR

-3m other

-1.1%

Under- lying

-6.7%

reported

Invest

in high-quality

fixed & mobile network

to maintain leadership in convergence

Accelerated

network

investments

- maintain network

superiority on

mobile speed and

coverage

,

- substantially

increase the

bandwidth on fixed

network via

vectoring

technology

- make operations

leaner through a

simplified network

Slide 9

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 € millio n / % of revenue

13%-14%

2012

Free Cash Flow

of € 691 million

FCF evolution – in million €

Sound financial position

Slide 11

-

Net financial debt at EUR 1,601 m

-

The outstanding long term financial gross debt amounted to € 1.9Bio

-

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

Debt maturing

2013 € 129m 2015 € 145m 2016 € 950m 2018 € 500m 2026 € 73m

Belgacom consolidated

balance sheet

•

Shareholders’ equity decreased from

€ 3,078m end 2011 to € 3,016m in

December. This reflects the dividend

distribution as approved by the

General Meeting of April 2012 and

the interim dividend paid in

December 2012, which was higher

than the 2012 net income .

•

Goodwill of €2,339m , up as a result

of the acquisition of Wireless

Technologies BVBA (chain of The

Phone House stores

)

31-Dec 31-Dec

(EUR million) 2011 2012

TOTAL ASSETS 8,312 8,211

Non-recurrent assets 6,217 6,160 Goodwill 2,323 2,339 Intangible assets with finite useful life 1,155 1,097 Property, plant and equipment 2,401 2,467 Investments in associates 3 1 Other participating interests 31 7 Deferred income tax assets 121 113 Pension and other non-current assets 182 136 Current assets 2,095 2,051 Inventories 116 133 Trade receivables 1,328 1,341 Current income tax assets & other current assets 295 292

Investments 36 83

Cash and cash equivalents 320 202

LIABILITIES AND EQUITY 8,312 8,211

Equity 3,303 3,228

Shareholders' equity 3,078 3,016 Minority interests 225 212 Non-current liabilities 2,749 2,512 Interest-bearing liabilities 1,931 1,761 Pensions and other post-employment benefits 479 402

Provisions 180 203

Deferred tax liabilities and other amounts payable 159 145 Current liabilities 2,260 2,472 Interest-bearing liabilities 41 215 Trade payables 1,343 1,310 Income tax payable 229 236 Other current payables 647 711

Belgacom intends to ensure its shareholders an

attractive return

Slide 13

A total gross normal dividend of EUR 1.68 per share

will be proposed to the Annual

Shareholders Meeting of 17 April 2013 . As a result, Belgacom exceptionally increased its

dividend to a total of EUR 2.49 gross per share for the 2012 full-year results. Key dates

for the normal dividend:

Ex-dividend date: 23/04/2013 - Record date: 25/04/2013 - Payment date: 26/04/2013

on

Result

2

2012

0% 30% 60% 90% 120% 150% 0 100 200 300 400 500 600 700 800 900 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 SBB Dividends % of FCF

Shareholder remuneration

Mio €

on

Result

2013

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

1.93

1.52 1.89

2.18 2.18 _{2.08 2.18} 2.18 2.49

* Subject to approval an the Annual Shareholders Meeting of 17 April 2013

With the current limited visibility on the Belgian market due to competitive

pressure and the unfavourable economy, the Board of Directors agreed to

address shareholder return at a later stage, and consider returning a EUR 0.50

interim dividend per share in December 2013 if Belgacom’s financial performance

for the year 2013 at that time proves to be in line with its full-year outlook.

Outlook

for 2013

-

Current operating environment with lower visibility due to a more volatile competitive

landscape and an unfavourable economy.

-

The guidance takes into account an estimated negative impact from regulatory measures

of about € -93m on revenue and about € -53m on EBITDA.

-

Accelerated network investments to maintain network superiority

Metrics

Reported

_{FY 2012}

Restated

FY 2012

(incl IAS19 revision)

Outlook

FY 2013

(vs restated 2012

)

Group revenue

6,462

6,462

between -1% and -2%

Group EBITDA

1,784

1,801

Between -4% and -6%

Group

Consumer

Business Unit

REMARK

Waiting for

other picture

from Marketing

REMAR

Waiting

other pict

from Mark

Quarterly

results

Group –

quarterly P&L

On reported basis, incl. one-off items

VAR VAR Q4/Q4 FY R Revenues (1) 1,5 8 3 1,6 12 1,5 9 6 1,6 16 6 ,406 1,5 8 8 1,6 11 1,6 20 1,6 44 6 ,46 2 1.7% 0.9 % T Total OPEX -1,103 -1,09 9 -1,123 -1,16 9 -4,49 4 -1,122 -1,176 -1,16 0 -1,219 -4,6 77 4.2% 4.1%

Cost of goods sold -609 -621 -633 -655 -2,517 -614 -667 -649 -680 -2,611 3.9% 3.7%

HR-costs -274 -282 -278 -283 -1,117 -282 -285 -294 -282 -1,141 -0.4% 2.2% Other expenses -220 -196 -213₀ -232 -860₀ -226 -224 -218 -257 -925₀ 10.9% 7.6% E EBITDA (1) 48 0 5 12 472 446 1,9 12 46 6 434 46 0 425 1,78 4 -4.8 % -6 .7% EBITDA margin (1) 30.3% 31.8% 29.6% 27.6% 29.8% 29.3% 27.0% 28.4% 25.9% 27.6% -1.8 pp -2.2 pp N

Non recurring items 0 -18 0 4 -15 0 -10 -3 -4 -18 -

-Depreciation -195 -199 -180 -182 -756 -181 -188 -185 -194 -748 6.5% -0.9%

EBIT (incl. NR) 28 6 29 5 29 2 26 8 1,141 28 4 236 271 227 1,018 -15 .4% -10.8 %

Financial result -30 -21 -31 -25 -106 -18 -22 -47 -24 -111 -3.1% 4.9%

Tax expense -61 -73 -59 -69 -262 -65 -48 -34 -30 -177 -57.0% -32.3%

Net income (Group) 19 4 19 9 19 5 16 9 75 6 19 9 16 1 18 4 16 8 711 -0.7% -6 .0%

Non-controlling interest 1 3 8 5 17 3 5 5 5 19 - -E Earnings/share in € 0.6 0 0.6 2 0.6 1 0.5 3 2.36 0.6 2 0.5 1 0.5 8 0.5 3 2.24 -0.4% -5 .3% Earnings/share in € (excl. NR) 0.60 0.68 0.61 0.52 2.39 0.62 0.56 0.59 0.54 2.29 4.1% -4.1% F FY 2012 Q Q412 FY 2011 Q211 Q112 (1)

before non-recurring items

Q312 Q311

1,583 1,612 1,596 1,616 1,588 1,611 1,620 1,644 1,2 80 1,3 30 1,3 80 1,4 30 1,4 80 1,5 30 1,5 80 1,6 30 1,6 80 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Solid Q4’12 Group revenue: +1.7% YoY

ƒ

Reported Q4’12 revenue up 1.7% YoY.

Like-for-like, revenue +0.7% YoY

Incl € -23m impact regulation (-1.4%)

Underlying revenue growth +2.1%

+1.7%

Solid Q4’12 revenue contribution, reported revenue +1.5% yoy driven by

further improvement in Fixed products and revenue contribution from The

Phone House, compensating for the deteriorating Mobile revenues .

Stable, limited revenue erosion of 2.1% for Q4, in context of an

unfavourable economy and stiff competition on the professional market.

Further improvement in revenue trend, growing 7.3% in Q4, mainly

driven by a strong volume growth combined with a favourable

destination-mix and continued growth in Data revenue.

Consumer

Enterprise

BICS

Business Unit

Business Unit

Quarterly Group Revenue ( € million)

Slide 17

6,462

2012 – Positive revenue trend vs 2011

Sequential Group revenue growth throughout 2012

Full-year 2012 revenue up 0.9% vs 2011, +1.9%

underlying revenue growth

Q

Q4 2012 CBU growing on a reported and underlying level, like-for-like down, excl. M&A impact

BICS revenue trend continued improving YoY in Q4 2012 supported by strong volume growth & destination mix

Q4 2012 EBU underlying revenue down -0.3% with the ICT revenue contribution nearly offsetting the Voice erosion

-2.6% 0.3% -0.1% 1.5% 1.7% -1.6% 0.1% 0.7% 0.4% _0.7% -1.0% 1.0% 1.8% 2.7% 2.1% Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Group revenue evolution

Revenue as reported Like-for-Like Underlyi ng

-4.6% 2.1% -0.7% 2.8% 1.5% -4.0% 0.5% -0.8% 0.3% -1.0% -3.2% 1.7% 0.7% 0.7% Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

CBU revenue evolution

Revenue as reported Like-for-Lik e Underlyi ng

-2.4% -2.2% -2.9% -2.2% -2.1% -0.2% _-1.0% -0.3% -2.5% -2.4% 0.6% 0.1% 0.8% 1.3% -0.3% Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

EBU revenue evolution

Revenue as reported Like-for-Like Underlyi ng

-0.3%

2.6%

5.5% 5.7% 7.3%

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

BICS revenue evolution

609 621 633 655 614 667 649 680 480 530 580 630 680 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Q4 Cost of Sales up 3.9%, driven by BICS

+3.9%

CoS 1.5% lower yoy. The positive impact of the capitalization of modems,

regulation and lower acquisition costs more than offset the cost increase due

to The Phone House.

Consumer

Lower CoS , 0.9% lower YoY, due to lower MTRs, more than offsetting the

unfavorable evolution of EBU’s product mix on the CoS.

Enterprise

Higher CoS ( +7.1 % ) linked to strong Q4 revenue growth

BICS

Business Unit

Business Unit

Quarterly Cost of Sales ( € million)

Slide 19

2,611 2,517 +3.7%

Q4’12 Cost of Sales at € 680m, + 3.9% YoY

driven by BICS, while Consumer & Business CoS

slightly down

220 196 213 232 ₂₂₆ 224 ₂₁₈ 257 15 0 16 0 17 0 18 0 19 0 20 0 21 0 22 0 23 0 24 0 25 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Higher non-HR expenses

Q4’12 non-HR expenses of € 257m, € 25m

higher YoY due to:

–

Unfavorable variance one-off expenses;

–

year-end review of bad debt;

–

costs related to The Phone House and

–

costs linked to Belgacom’s efficiency project

+10.9%

Non-HR expenses up, mainly driven the cost contribution of The Phone

House, partly offset by favorable change in cast-allocation (Group neutral)

Consumer

Negatively impacted by the change in cost allocation (Group neutral) and

YoY increase in bad debt versus low Q4’11 basis

Enterprise

Business Unit

Business Unit

Quarterly Non-HR expenses ( € million)

Yoy increase as variance was impacted by a one-off positive provision reversal

booked in Q4 2011

SDE & W

925

5000 10000 15000 20000 25000

YE96 YE98 YE00 YE02 YE04 YE06 YE08 YE10 Q4 12

Belgacom headcount in FTE

274 282 278 283 282 285 294 282 150 170 190 210 230 250 270 290 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Quarterly HR-expenses (€ million)

Q4’12 HR expenses nearly stable YoY

ƒ

Positive effect of headcount restructuring

program ‘Tutorship’ and favorable yoy

comparison year-end provisions offset by:

ƒ

Inflation-based salary indexations (March 2012)

and other wage drifts

ƒ

M&A-driven and business critical additional

headcount

-0.4%

9 15,859 FTEs end December (+71 FTE YoY)

9 Civil Servants decreased to 34% of total headcount

Estimated cash-out for termination benefits EUR million 2013 79 2014 49 2015 21 2016 6 2017-2033 24* (* 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 15,859 Slide 21 1,141 1,117 +2.2%

480

512

472

₄₄₆

466

434

460

425

30.3% 31.8%

_29.6%

_27.6%

_{29.3% 27.0%}

28.4%

_25.9%

-3.0 % 2.0 % 7.0 % 12 .0% 17 .0% 22 .0% 27 .0% 32 .0% 0 10 0 20 0 30 0 40 0 50 0 60 0

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q4’12 Group

EBITDA

* -4.8% YoY

ƒ

Q4’12 Group EBITDA of €425 m, before non-recurring expenses

–

-4.8% lower vs 2011, with YoY variance complicated by:

–

incidentals and M&A, with a total impact of € -13m

–

regulatory measures impacted EBITDA by € -14m (-3.2%)

ƒ

Underlying Belgacom Group EBITDA -0.9% YoY:

–

result of YoY improvement of underlying Consumer and SDE&W segment result

–

offset by lower result for Business segment.

-4.8%

Quarterly

Group EBITDA

( € million)

1,784

1,912 -6.7%

Solid performance

fixed

products

ƒ

Belgian digital TV penetration @ 76%

ƒ

Stable DTV market share of 32%

ƒ

Total TV market** share of 25% ; +3pp YoY

D

DTV market share

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

ƒ

Belgian Fixed internet market still growing, but at slower pace

ƒ

Internet penetration @ 77%

ƒ

Belgacom market share erosion limited to -0.3% YoY

Fixed Internet market share

Slide 23

ƒ

Stable market, Fixed Voice penetration @ 73%

ƒ

Belgacom stabilized its Fixed Voice line erosion

ƒ

Fixed Voice line “upgraded” via:

9

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

9

Multi-play packaging 18 15 9 12 11 1,591 1,606 1,615 1,626 1,637 1,200 1,300 1,400 1,500 1,600 1,700 -2 3 8 13 18 23 28 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Broadband customer evolution

net adds total

ƒ

B

ƒ

S

ƒ

T 72 43 48 ₃₉ 46 1,211 1,254 1,301 1,340 1,386 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 0 20 40 60 80 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 TV Lines evolution*

net adds total

-35 _-39 -37 -30 -33 3,225 _3,186 3,149 3,119 _3,085 2 ,5 00 2 ,7 00 2 ,9 00 3 ,1 00 3 ,3 00 3 ,5 00 -50 -30 -10 1 0 3 0 5 0 7 0 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Fixed Voice customer evolution

net adds total

11 1,637 1,637 1,200 1,300 1,400 1,500 1,600 Q4'12 1 386

Customer acquisition via

convergent

Packs

– Mobile in Pack continues to increase

66 54 34 37 23 1,089,000 1,143,000 1,177,000 1,214,000 1,237,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000 0 20 40 60 80 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Packs evolution

net adds total

11,237,000

PACKS

Revenues GGenerating UUnits* per residential households in Q4

9

Of the total number of residential Packs sold in 2012, 440% includes a mobile component

9

Fixed ARPU per residential Household up from € 43 in Q4’11 to € 46 in Q4’12 driven by positive evolution of number of products per household

+148k in 2012

2.55

43 € 46 €

Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 fixed ARPU per HH

New Telco law and competition impacted

the

mobile

subscriber base

ƒ

Postpaid: - 16,000

ƒ

Prepaid: -72,000

ƒ

The new Telco law, in addition to aggressive competitive pricing impacted the mobile subscriber base

Mobile market share

ƒ

Change in customers’

behaviour triggered by new law

(fixed term contract)

and new low price offers as from October.

ƒ

Impacting the Residential and SME mobile market

1 Active mobile cards

2 Mobile active customers including mobile customers Luxembourg, and including mobile data cards. 18k inactive cards cleaned from total Mobile customer base end 2011 3 Sum in absolute amounts of both the weekly port-in and the weekly port-out

1 Slide 25 64 39 45 -39 -88 5,458 5,498 5,543 5,504 _5,416 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 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Mobile customer evolution2

net adds total

addition ve obile

Mobile market share1

w1 w11 w21 w31 w41 w51

Weekly port-in + port- out CBU postpaid in 2012

new FTC law

Mobile postpaid market volatility amplified as from Q4’12

New market conditions led to more value

included in Belgacom’s

new mobile offers

-15 €

Data x 5 +

(4G included)

-5 €

Data x 4 +

(4G option)

+40 Min

Data included

Voice :

SMS :

Data :

1 Gb

Unlimited

Unlimited

90€

(75€)

5Gb

Unlimited

Unlimited

75€

(60€)

Q4-11

Q4-12

250 Mb

120 Min

Unlimited

25€

(20€)

1 Gb

120 Min

Unlimited

20€

(15€)

Q4-11

Q4-12

/

60 Min

Unlimited

15€

(10€)

500 Mb

100 Min

Unlimited

15€

(10€)

Q4-11

Q4-12

Comfort 90

Comfort 25

Generation MTV 15

Tariffs : stand-alone (in pack)

Smart 20

Smart 75

All assets in hands

to cope with changing

telecom market

Slide 27

99.85% DSL

(among world leaders)

85% VDSL

(2nd in Europe)

> 92% TV

coverage

DSL

4G

FON

Largest WiFi

network in

Belgium

650,000 FON spots in Belgium

7 million throughout the world

First to launch in

November ‘12

2G

99.98%

coverage

Belgacom has extensive service coverage and state of the art

service platforms

enabling true service convergence

3G

97%

coverage

g

g

Source: IDATE – June 2011

FTTx homes passed per country

0% 25% 50% 75% 100% SW I PO R _BE UK DE FR NL FTTH/B VDSL BE

28

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)

Q4 2012 results per business unit

Consumer Business Unit (CBU)

Enterprise Business Unit (EBU)

Service Delivery Engine &Wholesale (SDE&W)

Staff and Support (S&S)

264 271 ₂₅₇ 233 251 232 261 241 46.7% 46.8% _45.0% 40.8%43.5% _40.4% 44.5% 41.6% 30 .0% 35 .0% 40 .0% 45 .0% 50 .0% 18 0 20 0 22 0 24 0 26 0 28 0 30 0 32 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

CBU EBITDA (EUR mio) & margin

83 85 86 87 90 88 92 88 70 74 71 84 74 73 77 86 0 20 40 60 80 10 0 12 0 14 0 16 0 18 0 20 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Personnel Non- HR

CBU Personnel & Non-HR costs (EUR mio)

149 149 158 168 ₁₆₂ 182 157 166 90 11 0 13 0 15 0 17 0 19 0 21 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

CBU Cost of Sales (EUR mio)

565 579 571 572 577 575 587 ₅₈₁ 51 0 53 0 55 0 57 0 59 0 61 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

CBU revenue (EUR mio)

Consumer - P&L

ƒ

Limited increase in HR expenses, up 0.9% ; driven by The Phone House acquisition (partly divested Mid-November) & wage indexation. This was nearly offset by favorable YoY

comparison of year-end HR provisions.

ƒ

Non-HR expenses 2.3% up, mainly driven by contribution from The Phone House and an update of year-end provisions

ƒ

Segment result Q4 ’12 +3.5% YoY. Better Gross Margin as revenue

trend improved & Cost of Sales remained controlled while HR-expenses showed a limited increase due to a favorable YoY comparison of year-end HR-provisions

–

Regulation impact of € -5 m (-2.3%)

–

Contribution margin of 41.6%, i.e. +0.8 p.p. YoY

ƒ

Solid revenue growth from TV and Fixed Internet, Fixed voice decline slowed. All supported by Packs.

–

Reported revenue includes M&A; like-for-like revenue -1.0%

–

Regulation impact of €-10m (-1.7%)

–

Underlying revenue +0.7% YoY

+1.5%

-1.5%

+1.6%

+3.5%

Improved Direct Margin driven by both higher revenue & lower Cost of Sales

Slide 29

ƒ

Q4’ 12 Cost of Sales 1.5% lower YoY

–

Positive impact of the capitalization of modems, regulation

and lower acquisition costs

–

More than offset cost increase due to The Phone House

2,321 2,288 666 624 359 340 986 1,025 310 299 +1.4% +6.8% +3.7% +5.5% -3.8%

1,061

977 ₉₃₆ 1,036 1,086 1,027 965 1,060

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Traffic (mio min)

20.2 _{20.0 19.7 19.8} 20.2 _{19.7 19.7} 20.0

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed voice ARPU (EUR/month)

-37 -26 -31 -21 -20 -22 -21 -18 1,896 1,870 1,839 1,818 1,780 1,758 1,737 1,718 30 53 0 1,0 30 1,5 30 2,0 30 -50 -30 -10 10 30 50 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Voice line loss & EOP (000)

118 ₁₁₅ 111 110 110 _{105 105 105} 80 90 10 0 11 0 12 0 13 0 14 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed voice revenue (EUR mio)

Consumer -

Fixed voice

F

Fixed Voice line erosion stable; revenue decline continued to persist

*

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

ƒ

Fixed Voice customer base of 1,718,000 end Q4’12

–

Continued relief on line erosion by the Happy Time XL pricing

plan and Packs

ƒ

Total traffic in minutes up 2.3% YoY

–

Positive trend driven by an uptake in Happy Time XL, allowing

free off-peak calls

ƒ

FY ’12 Fixed Voice traffic usage was 3.2% higher YoY

ƒ

Fixed Voice ARPU slightly up to EUR 20.0

ƒ

FY’12 ARPU of € 19.9 was 0.2% lower YoY

ƒ

Fixed Voice revenue erosion limited to -4.3% YoY

–

maintained lower level of line erosion showing its benefit

–

the positive impact of the price indexation of Jan’12 offset the

cut in fixed-to-mobile rates (Jan’12)

-4.3%

+1.0%

+2.3%

Improved Fixed Voice line erosion confirmed; declining revenue trend further

slowed

Slide 30

425

140 147 143 _{136 130} 123 133 ₁₂₀ 90 10 0 11 0 12 0 13 0 14 0 15 0 16 0 17 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Mobile voice revenue (EUR mio)

102.2 106.6 103.6 103.8 101.5 104.7 _100.5 101.7 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 MoU(min/month) 12.7 13.4 12.9 _12.2 11.6 _11.1 12.0 _11.1 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Blended net voice ARPU (EUR/month)

Blended net voice ARPU (EUR/month) -47 3 48 32 10 5 -62 -105 3,723 3,726 3,774 3,805 3,805 3,811 3,748 3,643 3,3 50 3,4 50 3,5 50 3,6 50 3,7 50 3,8 50 -11 0 -60 -10 40 90 14 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Mobile growth & EOP (000)

Consumer –

Mobile Voice

Augmented pressure on Mobile Voice revenue; new telecom law and

competition leading to peak in subscriber churn despite growing Mobile in Pack

*

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

ƒ

End Q4’12 Mobile customer base of 3,643,000 cards

–

Postpaid -37,000 due to the new telecom law & aggressive

competition. Packs including mobile and Internet Everywhere offer continued their strong traction

–

Prepaid -68,000

ƒ

Net Voice ARPU at € 11.1, or -9.2% YoY

–

Customer migration to lower or more abundant tariff plans

starting to show

ƒ

For FY’12 ARPU of € 11.5, or 10.4% lower YoY

ƒ

MoU slightly down to down 2.1% to 101.7

minutes/user/month

ƒ

FY’12 average usage -2.1% YoY, from 104.3 MoU to 102.1

MoU

ƒ

Q4’12 Mobile Voice revenue -12.1% YoY.

–

Driven by regulatory impacts,

–

in addition to lower customer base and resulting lower usage

-12.1% -2.1% -9.2% 12.0 Slide 31 505 565 -10.5%

27.6 _{27.0 26.7 26.1 26.9 26.4 26.5 26.1}

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Broadband ARPU (EUR/month)

8 ₅ 1 18 15 10 13 12 1,131 1,136 1,138 1,156 1,159 1,169 1,181 1,193 10 21 0 41 0 61 0 81 0 1,0 10 1 21 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Broadband growth & EOP (000)

Broadband growth & EOP (000)

Broadband growth & EOP (000)

Broadband growth & EOP (000)

85 ₈₃ 82 82 85 ₈₄ 85 85 72 74 76 78 80 82 84 86 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed data revenue (EUR mio)

Consumer -

Fixed Data

Continued Fixed Internet revenue growth driven by growing customer base

*

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

ƒ

Q4’12 revenue up 4.1% YoY

–

Positively impacted by price indexation Jan’12

–

Continued YoY customer growth

ƒ

CBU ended Q4’12 with 1,193,000 Fixed Internet customers

–

+12,000 net-adds, supported by the “Internet Everywhere”

offer, mainly bought in Pack

ƒ

ARPU Q4’12 of € 26.1; i.e. +0.3% YoY

–

ARPU stable YoY, compared to a 5.5% decline for the same

period of 2011.

ƒ

FY’12 ARPU of €26.5 or -1.3% vs € 26.8 for 2011

*

+4.1%

Stable 339

77 80 79 85 85 87 84 87 10 10 14 13 12 15 15 13 0 30 60 90 12 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 SMS Adv Data

Mobile data revenue (EUR mio)

87 92 93 97 97 98 ₁₀₀ 102 7.8 8.2 8.2 8.5 8.5 9.0 _8.7 9.0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Blended net data ARPU (EUR/month)

239 254 235 273 280 291 262

294

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

SMS (units/month)

Consumer -

Mobile Data

Mobile data revenue growth trend impacted by regulation; sustained growth in

SMS usage

a

age

ƒ

SMS usage growing with 7.7% YoY to 294

SMS/Month

ƒ

Mobile Data ARPU up 6.1% to € 9.0

–

Resulting from growing SMS and Advanced Mobile Data

revenue

–

Growth impacted by Roaming regulation

ƒ

ARPU FY’12 of € 8.8vs € 8.2 for 2011; i.e. +7.9% YoY

ƒ

Mobile Data rev up by 2.7% YoY

–

Revenue growth restrained by regulation

–

SMS revenue was up by 2.4% for Q4

–

Advanced Mobile Data +4.9% . Lower growth vs first half of

the year due to regulated price cap on retail Data roaming.

+2.7% +7.7% +6.1% Slide 33 342 320 +6.9% 56 49 +14.3%

19.4 19.2 17.8 _17.5 17.6 17.6 18.1 18.2 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 TV ARPU (EUR/month) 51 53 51 53 55 57 61 62 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

TV revenue (EUR mio)

TV revenue (EUR mio)

Belgacom

TV

Solid Q4 TV revenue, up 18.1% YoY; TV customer base continues to grow

ƒ

Strong net adds of 46k

–

Driven by year-end campaigns

–

Total customer base of 1,386,000; +14% YoY

–

Total includes 230,000 multiple streams

ƒ

Q4 TV ARPU of EUR 18.2 , a 3.9% growth YoY

–

Supported by the price increase for rented settop boxes

ƒ

TV revenue +18.1% YoY driven by

–

Continued growth of subscribers

–

Price increase of rented settop box

+18.1% +3.9% 54 59 52 72 43 48 39 46 1,029 1,087 1,139 1,211 1,254 1,301 1,340 1,386 0 20 0 40 0 60 0 80 0 1,0 00 1,2 00 1,4 00 8 28 48 68 88 10 8 12 8 14 8 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

TV growth & EOP (000)

235 208 +13.5%

25 26 28 28 27 28

28 30

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

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

26.6 28.1 29.3 29.1 28.4 29.2 29.5

30.7

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Blended mobile net ARPU (EUR/month)

Tango

Luxembourg

ƒ

Q4 revenue +8.8% YoY

–

success of the iPhone and Samsung offer

–

the ongoing migration of prepaid towards postpaid offers.

ƒ

Tango acquired 1,000 new Mobile customers in the fourth

quarter 2012.

ƒ

In Q4, Tango launched a Quadplay offer and was the first

to offer a full 4G coverage in Luxembourg

ƒ

The ARPU increased to EUR 30.7, i.e. 5.7% year-over-year.

–

Partly offset by a decline in roaming revenues due to the EU

regulation +8.8% +5.7% Slide 35 254 256 260 264 266 268 270 271 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Tango mobile customers EOP (000)

114

300 298 291 296 289 277 267 274 50.6% 50.3% 50.9% 50.0% _{50.0% 48.1% 47.8% 47.4%} 15 .0% 20 .0% 25 .0% 30 .0% 35 .0% 40 .0% 45 .0% 50 .0% 55 .0% -5 45 95 14 5 19 5 24 5 29 5 34 5 39 5 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

EBU EBITDA (EUR mio) & margin

94 98 93 96 100 103 103 101 37 37 ₃₄ 36 40 39 39 41 0 20 40 60 80 10 0 12 0 14 0 16 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Personnel Non- HR

EBU Personnel & Non-HR costs (EUR mio)

162 160 ₁₅₄ 164 149 157 150 163 12 0 13 0 14 0 15 0 16 0 17 0 18 0 19 0 20 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

EBU Cost of Sales (EUR mio)

593 593 572 591 579 576 560 579 52 0 54 0 56 0 58 0 60 0 62 0 64 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

EBU revenue (EUR mio)

Enterprise – quarterly

P&L

ƒ

Q4’12 CoS 0.9% lower YoY

–

positive effect from lower MTRs, more than offsetting

–

the unfavorable evolution of EBU’s overall product mix on the

Cost of Sales.

ƒ

FY’12 CoS 3.1% lower YoY, incl Telindus Spain divestment

ƒ

Lower Q4’12 segment result due:

–

lower Direct margin (regulation & product mix)

–

higher expenses (including some group neutral changes in cost

allocation).

ƒ

Q4’12 Non-HR increase YoY driven by: revised cost

allocation and bad debt comparing low Q4’11 basis

ƒ

Q4’12 HR cost: negative impact from changed

cost-allocation, higher headcount and salary indexation

ƒ

Q4 YoY decline limited to 2.1%, in context of unfavorable

economy and stiff competition

–

Regulation impact of € -12m (-2.1%) in Q4

–

Q4 underlying revenue -0.3% YoY : ICT & mobile data nearly

compensated for eroding Fixed & Mobile Voice, ex-regulation

** like-for-like: adjusted for impact from divestures and acquisitions , customer re-segmentation

-2.1% -0.9% +8.0% -7.2% 2,294 2,349 -2.3% 619 639 -3.1% 407 381 6.7% 160 144 11.3% 1,108 1,185 -6.5%

782 ₇₃₂

672 716 754 699 ₆₃₆ 686

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Traffic (mio min)

29.1 28.9 _28.1 28.6 28.9 _{28.4 27.9} 28.6

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed voice ARPU (EUR/month)

-15 -13 -13 -14 _-18 -15 -9 -14 1,425 1,412 1,400 1,385 1,394 1,379 1,370 1,356 -10 0 10 0 30 0 50 0 70 0 90 0 1,1 00 1,3 00 1,5 00 1,7 00 1,9 00 -20 0 20 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Voice line loss & EOP (000)

128 ₁₂₅ 121 122 124 120 _{118 119} 90 10 0 11 0 12 0 13 0 14 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed voice revenue (EUR mio)

Enterprise -

Fixed Voice

Stable ARPU and contained Voice line erosion led to continued

improvement in the declining revenue trend

ƒ

Fixed Line erosion Q4’12 of -14,000 lines, stable to Q4’11

ƒ

Q4 Fixed Voice traffic was 4.2% lower YoY driven by:

–

fixed line erosion

–

lower usage per line

ƒ

FY ’12 Fixed Voice traffic usage was 4.3% lower YoY

ƒ

Q4’12 ARPU stable YoY to € 28.6

–

Positive effect from price indexation (Jan ’12)

–

Negative effect from reduced F2M (Jan’12)

ƒ

FY’12 ARPU of € 28.5 was 0,8% lower YoY (€ 28.7)

ƒ

Sequential improvement in declining revenue trend

ƒ

Q4 revenue decline limited to -2.4% YoY vs. -7.6% for

same period of 2011

ƒ

FY 2012 revenue of € 481m, -3.1% YoY, vs. -7.9% for FY 2011

*

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

-2.4% -0.1% -4.2% Slide 37 481 496 -3.1%

115 115 110 _{108 106} 102 ₁₀₀ 96 80 90 100 110 120 130 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Mobile voice revenue (EUR mio)

29.2 28.7 _{26.9 25.9 25.3 23.7}

22.9 21.6

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Net voice ARPU (EUR/month)

317.1 328.3 305.0 322.8 327.8 326.6 293.3 314.3 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 MOU (min/month) 24 30 22 29 ₂₂ 36 21 16 1,327 1,357 1,380 1,408 1,413 1,449 1,470 1,486 50 0 60 0 70 0 80 0 90 0 1,0 00 1,1 00 1,2 00 1,3 00 1,4 00 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Mobile growth & EOP (000)

Enterprise - Mobile Voice

S

Solid customer growth, revenue under pressure due to pricing and regulation

ƒ

Solid Mobile customer growth in Q4’12 in spite of aggressive

competitor moves in the low-end of business market

–

16,000 net mobile cards added, incl Mobile Voice, Mobile Data

and M2M cards.

–

total Mobile customer base: 1,486,000 cards end 2012

ƒ

Q4’12 Mobile Voice ARPU of €21.6, -16.5% YoY

–

Declining trend due to regulation and price competition

ƒ

For FY’12 ARPU of € 23.3, or 15.5% lower YoY

ƒ

Q4 shows somewhat lower usage YoY

–

Q4’12 MoU at 314 minutes/month, or 2.6% lower than for the

same period of 2011

ƒ

FY’12 average usage -1.1% YoY, from 319 MoU to 315 MoU

ƒ

Q4’12 Mobile voice revenue of € 96m, -10.9% YoY

–

regulated MTR and Voice Roaming prices

–

Pricing plans and competitive mobile market.

ƒ

FY € 403m revenue, 10% lower YoY

*

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

-10.9%

-2.6%

-16.5%

Enterprise -

Mobile Voice

Continued pressure on Mobile Voice revenue; growing Mobile customer

base

403 448 -10.0%

98 97 ₉₆ 97 99 99 96 ₉₅ 90 92 94 96 98 100 102 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Fixed data revenue (EUR mio)

39.6 _{39.3 39.1 38.9} 39.5 _{39.0 39.1 38.8}

Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Broadband ARPU (EUR/month)

2 ₀ -2 2 0 -2 -1 _-1 436 436 434 434 446 445 444 443 30 80 130 180 230 280 330 380 430 -10 11 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Broadband growth & EOP (000)

Enterprise - Fixed Data

S

Slightly positive revenue trend continued; Internet customer base fairly stable

ƒ

Q4’12 Fixed Data revenue €95 m, -2.3% vs 2011

–

Continued migration from older technologies to the Belgacom

Explore platform, for which pricing is more favorable

ƒ

Fixed Data revenue FY’12 of €388 m, -0.2% vs 2011

ƒ

2012 ended with fairly stable Fixed Internet customer base

of 443,000, in spite of operating in a saturated and

increasingly competitive professional Fixed Internet market

ƒ

Q4’12 ARPU of €38.8 nearly stable YoY

ƒ

FY’12 ARPU of €39.1 or -0.4% vs € 39.2 for 2011

*

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

*

-2.3%

-0.4%

Enterprise -

Fixed Data

Migrations to Explore platform slightly erodes Fixed Data revenue, while

Internet ARPU remains fairly stable

Slide 39

388

Enterprise –

Mobile Data

SMS continues growth, while advanced Mobile data revenue is pressured

by regulated price caps

23 24 24 26 26 27 27 28 27 28 32 31 30 31 28 26 0 10 20 30 40 50 60 70 80 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 SMS ADV Data

Mobile data revenue (EUR mio)

50 53 56 57 ₅₆ 58 _{55 54} 84 90 87 96 107 112 105 118 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 SMS (units/month) 12.6 13.2 13.8 13.7 13.5 13.5 12.6 _12.2 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Net data ARPU (EUR/month)

ƒ

Continued uptake in SMS usage, growing 24% YoY to 118

text messages per user per month

–

Success of MTV Generation pricing plans, including unlimited

SMS, continued to push the volume of both free and paying SMS

ƒ

Mobile Data ARPU down 10.5% YoY to €12.2

–

Growth trend reversed since 1 July 2012 due to regulated price

caps for Mobile Data roaming

–

aggressive competitor moves on low-end of business market

ƒ

ARPU FY’12 of €12.9vs € 13.3 for 2011; i.e. -2.9% YoY

-4.9%

+24%

-10.5%

ƒ

€ 54m Mobile Data revenue, i.e. -4.9% YoY

–

Q4’12 non-SMS Data revenue € 26m, -15.3% YoY due

to negative regulated price effect.

–

SMS continued its revenue growth trend in Q4’12

(+7.3%), in spite of regulated SMS roaming rates

ƒ

FY’12l Mobile Data revenue of € 223m, +3.3% YoY

115

118 -2.5%

108

175 177 163 182 167 172 167 186 130 140 150 160 170 180 190 200 210 220 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

ICT revenue (EUR mio)

Enterprise – ICT

IICT revenue up by 6.1% on like-for-like basis

ƒ

Q4’12 ICT revenue +2% YoY to €186m

–

Seasonally strong quarter ,

–

Growth somewhat contained due to customers

delaying IT projects or opting for Cloud-based solutions, which triggers a shift from one-shot revenue to monthly services fees.

ƒ

FY’12, € 692m ICT revenue -0.7% vs 2011.

–

M&A effects impacting variance

–

Divesture of Telindus Spain since end June 2011

and the acquisition of Eudasys by Telindus France.

–

On a like-for-like basis, EBU saw its ICT revenue

growing by 2.8% in 2012.

+2.0%

Enterprise -

ICT

Q4’12 ICT revenue showing 2% growth in challenging economic

context

Slide 41

692

-29 -12 -30 -21 -23 -26 -21 -26 -60 -50 -40 -30 -20 -10 0 Q111 Q211** Q311 Q411 Q112 Q212 Q312 Q412

SDE&W EBITDA (EUR mio)

49 50 50 50 _{43 44} 47 43 52 ₃₃ 48 42 48 50 41 48 0 20 40 60 80 100 120 140 Q111 Q211** Q311 Q411 Q112 Q212 Q312 Q412 Personnel Non-HR

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

9 9 9 9 9 9 9 10 8 8 9 9 10 10 11 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

SDE&W Cost of Sales (EUR mio)

81 80 ₇₇ 80 _{78 76} 75 76 53 58 63 68 73 78 83 88 93 98 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

SDE&W revenue (EUR mio)

livery & Wholesale - P&L

ƒ

CoS slightly up

ƒ

Operating expenses for Q4’12 -0.7% YoY

–

Q4 Non-HR 15% higher YoY, due to provision reversal in Q4’11

–

Q4 HR expenses -14% YoY : lower headcount , limited positive

effect of cost allocation change and HR provisions more than offset inflation-based salary increase of March 2012.

ƒ

Q4 segment result YoY lower mainly due to l

ower Direct margin

ƒ

Q4 revenue -5% YoY

–

Lower leased line and BB volumes, decreasing Roaming

prices only partially offset by higher Roaming volumes.

–

Regulatory measures reduced the Q4 revenue by 1.3%.

ƒ

FY’12 revenue -4.4%, incl -1.2% due to regulation

-5.0%

+11.2%

-0.7%

-20.4%

Service Delivery & Wholesale –

P&L

Slide 42 304 318 -4.4% 37 36 +3.3% 187 175 6.9% 177 199 -11.0% -97 -92 -5.6%

47 ₄₁ 66 ₆₁ 51 50 49 67 0 10 20 30 40 50 60 70 80 90 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

S&S Non-HR costs (EUR mio)

39 40 40 40 38 39 41 39 32 34 36 38 40 42 44 46 48 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

S&S Personnel costs (EUR mio)

8 7 25 8 9 7 7 11 0 5 10 15 20 25 30 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

S&S Revenue(EUR mio)

Staff & support - P&L

•

In Q4’12, Staff and Support recorded € 11m revenues. This

brings the FY’12 revenue for Staff and Support to € 34m.

The decrease compared to the previous year is mainly

explained by a positive one-off recorded in the third

quarter of 2011.

•

Q4’12 HR-expenses 4.8% lower YoY

–

Positive effect of decline in headcount more than offset the

wage indexation impact

•

Q4’12 non-HR higher YoY

–

provision for environmentally driven soil works in Q4’12,

–

a one-off capital loss

–

and costs related to the cost-efficiency project.

•

FY’12, S&S non-HR expenses up 1.3% to € 218m.

*

* Internal invoice; neutral on group level

+44.2%

-4.8%

+10.3%

Staff & Support –

P&L

Slide 43 34 47 -27.2% 218 215 +1.3% * 156 160 -2.1%

24 29 35 33 28 34 35 32 6.5% 7.5% 8.7% 8.3% 7.3% 8.4% 8.3% 7.3% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10 .0% 12 .0% 0 10 20 30 40 50 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

BICS EBITDA (EUR mio) & margin

29 29 31 31 31 32 32 34 23 26 28 27 25 30 31 29 0 20 40 60 80 10 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Non- Voice Voice

BICS Gross margin (EUR mio)

372 388 401 401 382 409 424 430 34 0 35 0 36 0 37 0 38 0 39 0 40 0 41 0 42 0 43 0 44 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

BICS Revenue (EUR mio)

International Carrier Services

P&L

•

Voice volumes: Q4 up 7.7%; FY up 3.4% YoY

•

Non-Voice volumes: Q4 up 41.2%; FY up 45% YoY

•

Q4 EBITDA 5.4% lower YoY. Higher Gross margin offset by

–

a reassessment of bad debt provisions, and -to a smaller

extend- a negative YoY currency effect.

–

HR expenses impacted by inflation-based wage indexations

and variable performance-related compensation.

•

Gross margin Q4’12 up 7.9% YoY

–

Gross margin Voice + 9.0% YoY

–

Gross margin non-Voice + 6.7% YoY

•

Q4 revenue increase of 7.3% YoY

–

€ 20m more revenue from Voice traffic: strong traffic increase

to Asia & Africa, partly offset by Eu-wide MTR reduction.

–

Data revenue grew solidly, with revenue up nearly 21%

–

Limited positive dollar impact

+7.3%

+7.9%

-5.4%

International Carrier Services –

P&L

6,574 6,997 6,853 7,018 6,907 6,984 6,934 7,556 230 253 276 315 323 361 428 446 0 1,0 00 2,0 00 3,0 00 4,0 00 5,0 00 6,0 00 7,0 00 8,0 00 9,0 00 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 SMS/MMS Minutes

BICS Volumes (in mio)

1,645 1,562 +5.3% 115 104 10.2% 129 122 6.1% 130 120 8.4%

45

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 45

Work In Progress

•

Shareholder structure – slide 46

•

Network & Spectrum – slide 47

•

Pricing – slide 53

Other topics

•

New Telco Law – slide 58

•

Regulation & legal – slide 59

Shareholder structure

Belgian state owns ~ 53.5%

Status 30 Sep 2012 Shares % shares % Voting % Dividend Belgian state 180,887,569 53.5% 56.8% 55.9% Free float 137,434,096 40.7% 43.2% 42.5% Own shares 19,703,470 5.8% - 1.6%

338,025,135 shares,

of which 318,321,665 Outstanding

•

Limited liability company under public law

- Belgian state main shareholder: 53.5%

- Legal obliged threshold: 50%+1 share

•

Free float 40.7%

•

Treasury shares 5.8%

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

- Part of own shares held for personnel incentives: Options and DSPP

Global

network strategy

Value enablers for a convergent interconnected world

Slide 47

47

Belgacom has all assets in hands to cope with a changing telecom ecosystem

Fiber speeds on copper with vectoring and

dynamic line management

Leaner operations through network simplification

3G+ upgrade for superior mobile data

experience

• Mobile network innovation driving leadership superiority

• Network simplification driving efficiency

• Fixed network innovation driving customer value • • • • • • • • • • • •••••••••••• ••••••

Mobile

network

Fixed

network

Network

simplification

Speed acceleration with FTTH in new zonings

4G roll out as important enabler of our

convergence strategy

Combined with strong product & process

Mobile

network

Slide 48

Ambition is to remain the best mobile operator for all type of customers on the Belgian market.

3G+ upgrade will bring 8 Mbps download and up-to-21 Mbps top speeds, 42 Mbps for dual carrier devices

Best

mobile 3G network

• Fastest down- and upload speed available in the market

• Significantly better 3G indoor coverage vs competitors

Further boost experience

for 3G customers

50% 60% 70% 80% 90%

Mobistar Base Belgacom

% 3G indoor coverage1

1 _{Source: Factual coverage as measured by independent agency CommSquare during Q4 2012 drive tests at same reference level showing an important delta between operators. Delta is}

• 70% increase of overall network capacity for data

• 30% average speed increase & top speed increase with HSPA+

1 2

1 2

Mobile data usage still in early stages with 35% of devices on our network being 3G compatible

Important market value with customers having devices not supporting 4G yet, both now and in future

Belgacom is determined to maintain its mobile leadership through investment in 4G roll-out

First to launch

4G

• 4G further improves mobile speed experience to average 20-30Mbps speed with peak speeds up to 50-60Mbps • 4G is deployed in existing 1800Mhz spectrum

• First Belgian operator to deploy 4G in 8 large cities in November 2012

• High speed backhauling deployed for fast data transmission

1 2

New 2600Mhz spectrum will be used for targeted capacity & performance

Only 4G deployment in Brussels if regulatory framework is changed

Further roll-out

of 4G

1

Spectrum

- Belgian situation

Slide 49 Proximus 2 x 12 Mobistar 2 x 12 Base 2 x 10.8 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 1 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

DRAFT conditions: • Auction of 3 lots of 2x10 MHz • Minimum price of € 120m • 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

Mobile network

Fixed network

- Dynamic Line Management & Vectoring

To substantially increase bandwidth, Dynamic Line Management (DLM) & Vectoring will be deployed

DLM is an in-house developed technology and will improve the average speed experience with 30%

Fast-track

Dynamic Line Management

DLM monitors stability of lines and dynamically applies maximum possible speed when a line is sufficiently stable

• A speed profile is applied to a VDSL2 line in function of the line distance

• Line characteristics however often allow higher speeds

1

2

Powerful

vectoring technology

Vectoring brings up-to-70 Mbps speeds and 15 Mbps upstream

• Crosstalk is interference between copper pairs in same cable

• Crosstalk limits the achievable speed on VDSL

1

2

Vectoring cancels crosstalk in the copper cables resulting in a significant bit rate increase of copper lines

How we are ahead

of other EU operators

Strong Regulatory Framework was negotiated, disentangling all blocking points required for full-fledged vectoring

• Belgacom is the first operator in the world to deploy vectoring on this scale

DLM will be applied on top of our Vectored lines to further increase speeds up-to-100 Mbps

1

How we will

further increase speed soon after

• Only operator with an in-house developed technology to bring speed at maximum line capabilities

2

Belgacom is in better position to increase speed then other EU peers thanks to our access strategy over past

years with a strong Fiber-The-The-Curb network topology and a dense 85% VDSL2 coverage

Pair Bonding brings speeds up-to-200 Mbps

Fixed network

- Speed acceleration in coming years

Slide 51

Speed evolution in Mbps

2013 to >2018

FTTH

in new zonings

FTTH offers speeds up-to-200 Mbps

• FTTH will be deployed in new

residential zonings as of S2 2013 • Fiber costs are comparable to copper

for new residential zonings

1 2

• Pair bonding increases bit rate by

combining speed of 2 VDSL lines • Both lines will be vectored and

controlled by DLM

Pair Bonding

of VDSL lines

1 2

• G.fast technology is currently analysed by standardization bodies • Both evolutions aim at bringing fiber

distribution close to the customer

G.Fast & Fiber

evolution

Evolution brings speeds up-to-1000 Mbps

1 2

Belgacom will start with Fiber-To-The-Home (FTTH) deployment in new residential zonings in 2013.

Future evolutions of speed acceleration is currently described by Pair Bonding and G.fast & Fiber evolution.