belgacom investors roadshow presentation full-year results 2010

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1 Belgacom Road show presentation Full-year results 2010 Group Highlights Financials - 2 Operationals - 8 Strategic progress -10 Shareholder return -12 Guidance - 13 2010 Results per segment Consumer - 15 Enterprise - 23 SDE&W - 30 S&S - 31 BICS - 32 Popular discussion topics Headcount - 34 Regulation - 35 Legal - 39 Convergence & TV - 40 Mobile Data - 44 Network - 47 Other - 51

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Page 1: Belgacom Investors roadshow presentation full-year results 2010

1

Belgacom Road show presentation Full-year results 2010

Group Highlights

Financials - 2

Operationals - 8

Strategic progress -10

Shareholder return -12

Guidance - 13

2010 Results per segment

Consumer - 15

Enterprise - 23

SDE&W - 30

S&S - 31

BICS - 32

Popular discussion topics

Headcount - 34

Regulation - 35

Legal - 39

Convergence & TV - 40

Mobile Data - 44

Network - 47

Other - 51

Page 2: Belgacom Investors roadshow presentation full-year results 2010

2

Belgacom Group Financials 2010 ended with solid financial results

• Strong FY revenue of € 6,603m or +10.2% yoy • Slightly exceeding full-year guidance

• Growth trend largely results from full consolidation BICS & additional MTN business

• Like-for-like*, revenues -0.6% including €121m regulation (-2%)

• Underlying business +1.4% driven by sound CBU results & organic growth BICS

• Operating expenses of € 4,619m, up from last year driven by CoS BICS • FY like-for-like* CoS flat , including positive effect from regulatory measures

• FY HR costs -1.6% like-for-like* as a result of headcount decrease(-553 FTE‟s)

• Q410 down 1.1% in spite of 2% wage indexation in October

• FY non-HR costs up 1.1% like-for-like*

• FY EBITDA at € 1,984m (+1.5%) and margin of 30% • Like-for-like* EBITDA : € -26m or -1.3% YoY, including regulation impact of € -26m

• Like-for-like* margin at 32.4% vs 32.6% the year before

Slide 2 * 2010 result adjusted for full consolidation BICS & contribution of MTN

Page 3: Belgacom Investors roadshow presentation full-year results 2010

Belgacom Group Financials

Slide 3

VAR VAR VARQ4/Q4 FY FY

Revenues (1) 1,492 1,504 1,476 1,518 5,990 1,641 1,664 1,640 1,658 6,603 9.2% 10.2% -0.6%

Total OPEX -1,000 -1,002 -982 -1,051 -4,035 -1,146 -1,161 -1,150 -1,163 -4,619 10.6% 14.5% -0.3%

Cost of goods sold -511 -511 -515 -550 -2,087 -662 -674 -651 -655 -2,642 19.2% 26.6% -0.1%

HR-costs -281 -280 -271 -277 -1,108 -274 -275 -281 -278 -1,107 0.5% -0.1% -1.6%

Other expenses -207 -211 -196 -225 -840 -210 -212 -218 -230 -870 2.2% 3.6% 1.1%

EBITDA (1) 492 502 494 467 1,955 495 503 490 495 1,984 6.1% 1.5% -1.3%

EBITDA margin (1)

33.0% 33.4% 33.5% 30.8% 32.6% 30.2% 30.2% 29.9% 29.9% 30.0% -0.9pp -2.6pp -0.2pp

Non-recurring items 0 -62 0 74 12 436 1 0 8 444 - -

Depreciation -174 -178 -169 -185 -706 -194 -206 -203 -206 -809 11.3% 14.6%

EBIT 318 262 325 356 1,261 737 298 287 297 1,619 -16.4% 28.4%

Financial result -37 -23 -30 -27 -117 -28 -26 -26 -22 -102 -18.1% -12.7%

Tax expense -69 -51 -79 -42 -241 -68 -64 -62 -39 -233 -7.2% -3.0%

Net income (Group) 212 188 217 287 904 638 203 195 230 1,266 -20.0% 40.0%

Non-controlling interest 0 0 0 0 -1 2 4 4 7 17 - -

Earnings/share in € 0.66 0.59 0.68 0.90 2.82 1.99 0.63 0.61 0.71 3.94 -20.3% 39.7%

(1) before non-recurring items

(2) 2010 BICS results consolidated at 57.6%

As reportedLike-for-

like (2)

FY09 FY10Q110 Q410Q409in mio € Q109 Q209 Q310Q210Q309

Page 4: Belgacom Investors roadshow presentation full-year results 2010

676625

764

597

734

11.4%10.3%

12.8%

10.0%11.1%

0,0%1,0%2,0%3,0%4,0%5,0%6,0%7,0%8,0%9,0%10,0%11,0%12,0%13,0%14,0%15,0%

0

200

400

600

800

1.000

1.200

2006 2007 2008 2009 2010

Capex % of revenue

Group - Investments

Slide 4

• Belgacom invested € 734m or 11.1% of its Group revenues

• 2010 capex was € 137m higher than 2009 driven by:

− Renewal 2G license for the period 2010-2015 (€ 74m)

− Renewal content rights Belgacom TV

− Switch from leasing to buying utility cars

Furthermore, Belgacom continued to invest in:

− Roll-out Move-to-all-IP (€ 50m)

− Roll-out fibre-to-the-curb & installation VDSL2 (€ 32m)

• 2008 incl. exclusive Broadcasting rights Belgian soccer

• 2010 incl. renewal 2G-license

2011 capex estimated in upper-end of 10%-12% of

revenue

Page 5: Belgacom Investors roadshow presentation full-year results 2010

Group - Free cash flow

• Strong FCF of €980m, up by €183m from last year

• Positive impact from higher EBITDA, one-offs & timing differences

• One -off cash increase in 2010 from full consolidation BICS (€ 51m) ; 2009 impacted by payment

of fine (€ 66m)

• Lower income tax payments:

− Following legal entity merger, full use of Belgacom SA tax losses carried forward

− Positive timing difference due to lower tax pre-payment ratio

• Partly offset by capex increase (incl 2G license of € 74m for which € 26m paid in 2010)

• 2006 acquisition remaining 25% of Proximus for € 2bn , acquisition Telindus for € 584m

• 2007 disposal of remaining interest in Mobistar and Eutelsal for €242m

• 2008 acquisition Tango and Scarlet for aggregated amount of € 380m

Sound FCF generation

-1,313

1,210

409

797980

-1500

-1000

-500

0

500

1000

1500

2006 2007 2008 2009 2010

Free Cash Flow (in mio €)

Slide 5

Page 6: Belgacom Investors roadshow presentation full-year results 2010

(1,716)

980 (702)(30) 16 (1,451)

Net debt December 2009

FCF Dividends Dividends to non controlling interests

Other Net debt December 2010

Group - Net financial position

• Belgacom continues to have a sound financial position with net debt/EBITDA at 0.7x

− Net financial debt decreased by € 265m to € 1,451m

− Outstanding gross financial debt at € 2.1 billion

− Most of the debt maturing in 2011 and 2016

− In order to pre-finance the maturing bonds of 2011, Belgacom issued, in January 2011, a 7

year senior unsubordinated bond of € 500m with a fixed coupon at 3.875%

− In March 2011, BGC invited the holders of the outstanding 4.125% bonds due November

2011 to tender their notes for purchase against cash

− Credit ratings: Standard & Poor‟s A+ ; Moody‟s A1

Slide 6

(in million euro)

Page 7: Belgacom Investors roadshow presentation full-year results 2010

2010 performance versus guidance

Guidance met on all metrics

• Guidance slightly exceeded on revenue; met on EBITDA-margin:

− +10.2% revenue growth or slightly ahead of guided range of 9% -10%

− 30% EBITDA margin or fully in line with the targeted margin for 2010

− FY capex fully complies with the guidance of „around 10% of Group revenue, excl renewal 2G license‟

• Reported results include following regulation impact:

− Revenue: € -121m (vs guided impact of „about € -115m‟)

− EBITDA: € -26m (vs guided impact of „less than € -30m‟)

Slide 7

√ √

Metrics Outlook 20101 Q110 Q210 Q310 Q410 2010

Group revenue growth Upper-end of range "9% - 10%" 10.0% 10.7% 11.1% 9.2% 10.2%

Group EBITDA margin Targeting a margin of 30% 30.2% 30.2% 29.9% 29.9% 30.0%

CAPEX/Revenue Around 10%2 9.4% 8.9% 8.5% 13.2% 10.0%

1 Before non-recurring items2 Excl CAPEX for 2G-license renewal

Page 8: Belgacom Investors roadshow presentation full-year results 2010

8

Belgacom Group Operationals

1 Including mobile customers Luxembourg as from 2008, and including mobile data cards 2 Mobile internet on laptop; excluding internet on smartphone 3 Total number of settop-boxes Slide 8

4,620

5,161 5,318 5,332

2007 2008 2009 2010

Active mobile customers1

(in „000)

Mobile data Cards2 evolution

(in „000)

TV base3

(in „000)Number of Packs

(in „000)

64

114

182

2007 2008 2009 2010

305

506

752

975

2007 2008 2009 2010

153

302

560

870

2007 2008 2009 2010

Fixed Voice customers

(in „000)

3.906 3.710 3.519 3.374

2007 2008 2009 2010

Broadband customers

(in „000)

1.237 1.345

1.520 1.558

2007 2008 2009 2010

Page 9: Belgacom Investors roadshow presentation full-year results 2010

Belgacom Group market shares

Slide 9 1 Mobile internet on laptop

9

30% 31% 31%

2008 2009 2010

Digital TV market shareBroadband market share

Mobile customer market share Mobile data cards1 market share

43.3% 42.7% 41.3%

2008 2009 2010

57% 57%62%

2008 2009 2010

49.7% 48.5% 46.3%

2008 2009 2010

Page 10: Belgacom Investors roadshow presentation full-year results 2010

Strategic progress

Growth

via

Cross sell

870k multi-play Packs, of which ~9% quadruple-play

Over 45% of consumers have at least 2 products

In 2010 increased focus on Mobile in a Pack

Reinforcing convergence position in SME market through

partnerships (e.g. Belgacom Bridging ICT)

Operational

excellence

>76% fiber* population coverage end 2010

Targeting 85% service coverage by end 2013

TV footprint of ~90%, ~73% in HD

3G outdoor coverage of ~97%, gearing up Radio Access

Network with Huawei equipment to be ready for LTE

Slide 10 * Fiber to the street cabinet

Move

customers

from single-

play to

multi-play

High

quality

networks &

platforms

Increase

value in BICS

Leading

position

in consolidation

Mobile data

growth

potential

Sharp increase in Smartphone penetration rate

Attractive subscriptions launched leading to significant growth

in number of internet on smartphone-users

Leading position „Mobile internet on laptop‟;182k customers,

up YoY nearly 60%

Belgacom well

positioned to

capture growth

potential

Growth

via

M&A

Disciplined &

consistent

approach

Main focus on Belgian market

Outside opportunities monitored in a disciplined way

Strict valuation criteria, focus on shareholder value

Since 2006, > € 3 billion on M&A: minority Proximus,

Telindus, Tango, Scarlet,…

Page 11: Belgacom Investors roadshow presentation full-year results 2010

Strategic progress

Innovation

Address changing needs of customers

Complement our strength with exclusive partnerships giving

access to specific expertise

In 2010: strategic partnerships to further develop Belgacom

Entertainment platform (OnLive, Jinni, Softkinetic & Blinkx)

Sustainability

Commitment on being socially responsible company

Focus: “telecom access for all”, “health” & “climate change”

Reduce Belgacom‟s CO² emissions & help our customers lower

their environmental impact

Belgacom included in Ethibel Excellence Investment Register

Slide 11

Strengthen

leadership

through

selective

partnerships

CSR

embedded

in all

operation

layers

International

Carrier Growth

Belgacom ICS merged with Swisscom ICS and MTN ICS

Belgacom owns 57.6% of enlarged entity, Swisscom 22.4%

and MTN 20%

In top 4 worldwide in terms of voice traffic volume

World leader in mobile data carrier services

Increase

value in BICS

Leading

position

in consolidation

Special focus in 2010 on customer satisfaction led to significant improvements For 2011, customer satisfaction focus maintained & concentrate on simplification

Page 12: Belgacom Investors roadshow presentation full-year results 2010

Group – Shareholder return

Committed to attractive shareholder return

Shareholder remuneration policy confirmed: - Belgacom commits to an attractive shareholder remuneration

policy by returning, in principle, most of its annual free cash flow1, to its shareholders.

- The return of free cash flow, either through dividends or share buybacks, will be reviewed on an annual basis, in order to keep strategic financial flexibility for future growth, organically or via selective M&A, with a clear focus on value creation. This also includes confirming appropriate levels of distributable reserves.

- The shareholder remuneration policy is based on a number of assumptions regarding future business and market evolutions, and may be subject to change in case of unforeseen risks or events outside the company‟s control.

1 Belgacom defines free cash flow as cash flow generated by operating activities, minus capital expenditures and including other investing activities such as acquisitions or divestments. Slide 12

0%

30%

60%

90%

120%

150%

0100200300400500600700800900

1,000

2004 2005 2006 2007 2008 2009 2010

SBB Dividends % of FCF

Total shareholder remuneration

Mio €

0.29 0.50 0.50 0.40 0.50 0,500.55

1.38

1.52

1.601.68 1.68 1.68 1.68 1,68

2004 2005 2006 2007 2008 2009 2010 2011Expected

Interim dividend Extra-ordinary dividend Normal dividend

Dividend per share

1.93

1.52

1.892.18 2.18 2.182.08 2.18

Over result 2010: • The BoD approved to propose to the AGM of 13 April, a

total dividend of € 2.18/share ; of which the normal dividend of € 1.68/share to be paid in April:

−Ex-dividend date: 26 April 2011 −Record date: 28 April 2011 −Payment date: 29 April 2011

• In addition, the board approved a share buyback of max. € 200m to be carried out during 2011- 2012

Over result 2011: • Expected to return annual dividend of € 2.18/share

Page 13: Belgacom Investors roadshow presentation full-year results 2010

Group - 2011 Guidance

In 2011 Belgacom‟s results will feel further pressure from regulatory measures.

For the full-year, the negative impact on revenue is estimated to be about EUR

115 million, while on EBITDA-level the negative impact is estimated to be less

than EUR 30 million.

As a result, Belgacom estimates its 2011 Group revenue to show a year-

over-year decline of up to 1%, and its full-year EBITDA to decline up to 2%

compared to last year.

Belgacom will invest in the further development of its fixed and mobile access

network, and therefore expects its 2011 full-year capex-to-sales ratio to be in

the upper-end of the range 10%-12%.

Slide 13

Page 14: Belgacom Investors roadshow presentation full-year results 2010

14

Belgacom Company presentation Investor Relations

Full-year 2010 results per business unit

• Consumer Business Unit (CBU) – slide 15 • Enterprise Business Unit (EBU) – slide 23 • Service Delivery Engine &Wholesale (SDE&W) – slide 30 • Staff and Support (S&S) – slide 31 • Belgacom International Carries Services (BICS) – slide 32

Slide 14

Page 15: Belgacom Investors roadshow presentation full-year results 2010

15

Consumer – Highlights

Full-year 2010 ended with sound financial results

• FY revenue of € 2,368m or flat on a comparable basis* • 2010 result impacted by regulation (€ -60m or -2.6%)

• Underlying business growing 2.6% yoy driven by data, TV & Tango

• Fixed line revenue impacted by regulation and line loss

• Mobile voice impacted by regulation, positive underlying trend with higher MoU

• Fixed internet +4.4% yoy; customer growth impacted by fiercer competition

• Non-SMS mobile data revenue +11.6% when excl regulation, driven by the success of

mobile data solutions

• Belgacom TV confirming its growth path: FY revenues +36% and customer base +30%

• Operational results supported by the sale of Packs: 870k sold by end 2010

• Lower cost of sales driven by a.o. regulation & product profitability initiatives

• Segment result* +1.1% incl. € -19m regulation impact; contribution margin of 45.3%

Slide 15 *2009 result adjusted for intercompany items & changes in revenue

Page 16: Belgacom Investors roadshow presentation full-year results 2010

Consumer - P&L

• Q4 CoS -12.9% like-for-like, FY CoS -1.4% yoy

− YoY trend improved as from Q3

− Positive regulation impact (MTR & Collecting model)

− Product profitability initiatives

− Positive one-time items

• Q4 HR costs down 6.2%, FY HR costs -5.8% yoy

− Decreasing headcount following ongoing programs & natural attrition (-510 FTE‟s vs end 2009)

− Fully offsetting wage indexation (Oct 2010)

• Q4 non-HR +1.8% due to customer centricity program,

FY non-HR -2.3%

• FY segment result +1.1%* to € 1,073m, including € -19m regulation impact

• FY segment contribution margin of 45.3%

• Q4 like-for-like* rev -1.0% due to regulation (€ -23m)

− MTR, Collecting model, Roaming

− Excl regulation, underlying business +2.7%

• FY like-for-like* revenue flat incl €60m regulation, underlying business +2.6%

*2009 result adjusted for intercompany items & changes in revenue & cost allocations Slide 16

591604 602

617

579 589 592 606 590 592 585 600540

550

560

570

580

590

600

610

620

630

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

Like-for-like

CBU revenue (EUR mio)

166174 178

205

158158 166 170

195 180 171 169

100

120

140

160

180

200

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

Like-for-like

CBU Cost of Sales (EUR mio)

89 88 81 87 81 81 82 82

68 75 73 81 65 73 70 83

0

20

40

60

80

100

120

140

160

180

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Non-HR Personnel

CBU Personnel & non-HR costs (EUR mio)

268 266 269244

264 267276

266

45.4% 44.1% 44.8%39.6%

44.7% 45.1% 47.1%44.3%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

220

230

240

250

260

270

280

290

300

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

CBU EBITDA (EUR mio) & Margin

Page 17: Belgacom Investors roadshow presentation full-year results 2010

• Total line loss 2010 contained at -129k vs -138k in 2009

• -36k lines in Q4; acceleration vs previous quarters driven by competition

• Total customer base at 1,933k (incl VoIP Scarlet)

• Q4 ARPU at € 20.9 (-3.9% yoy); FY at € 20.7 (-4.4% yoy)

− Regulatory measures & recurring discounts on Packs

− Slightly tempered by price increases

− Q4 ARPU positively impacted by seasonality

Quarterly evolution fairly stable

As from Q2‟10,

• Traffic for the FY at 4,374m minutes or -4.8% driven by line loss

• Traffic in Q4 higher due to seasonality

• Q4‟10 fixed voice revenue of € 124m (or -9.6% yoy)

• FY ‟10 revenue of € 506m or -9.8% driven by:

− Line loss

− Regulation: Collecting model & decline F2M

− Discounts on Packs

Consumer - Fixed voice

Revenue impacted by regulation & line loss

Slide 17

144141 138 138

133

125 124 124

100

105

110

115

120

125

130

135

140

145

150

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed voice revenue (EUR mio)

-43 -37 -29 -29 -33 -30 -30 -36

2,123 2,086 2,057 2,028 2,029 1,999 1,970 1,933

30

530

1.030

1.530

2.030

-50

-30

-10

10

30

50

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Voice line loss & EOP (000)

21.7 21.6 21.5 21.721.2

20.3 20.320.9

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed voice ARPU (EUR/month)

1,2301,124

1,0601,181 1,178

1,052 1,004

1,140

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Traffic (mio min)

Page 18: Belgacom Investors roadshow presentation full-year results 2010

• FY customer base at 3,769k or -54k yoy

• Q4 net adds -3k:

− Focus on postpaid+31k , prepaid -30k, MVNO -5k

− Push of Mobile Packs

− Postpaid ratio increased to 42.6% (end 2009 at 40%)

• Q4 ARPU at €14.5 or -4.4% on adjusted basis

• FY ARPU down 2.8% on an adjusted basis to € 14.8

• Decline fully due to regulation

• FY MoU of 106.1, i.e. +3.9% on a comparable basis

• Q4 MoU up by 2.8% YoY

Consumer - Mobile Voice

FY like-for-like* revenue -3.3%; excl regulation revenues slightly up

* 2009 result adjusted for intercompany items Slide 18

170178 179 176

161 165164 171 175 170 168 160130

140

150

160

170

180

190

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

Like-for-like

Mobile voice revenue (EUR mio) • Q4 revenue -5.2% like for like, reported-9.3%

• FY revenue -3.3% like-for like, reported -7.2%

− 2009 included Fix-to-Mob intercompany revenue

− Like-for-like down due to regulation (MTR, Roaming & Collecting model), underlying trend is positive

10 23 19 22-85

728

-3

3,787 3,809 3,829 3,824 3,739 3,745 3,773 3,769

-5.000-4 .900-4.800-4.700-4.600-4 .500-4.400-4.300-4.200-4 .100-4.000-3.900-3.800-3 .700-3.600-3.500-3.400-3 .300-3.200-3.100-3.000-2 .900-2.800-2.700-2.600-2 .500-2.400-2.300-2.200-2 .100-2.000-1.900-1.800-1 .700-1.600-1.500-1.400-1 .300-1.200-1.100-1.000-900-800-700-600-500-400-300-200-10001002003004005006007008009001.0001.1001.2001.3001.4001.5001.6001.7001.8001.9002.0002.1002.2002.3002.4002.5002.6002.7002.8002.9003.0003.1003.2003.3003.4003.5003.6003.7003.800

-86

-66

-46

-26

-6

15

35

55

75

95

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Mobile growth & EOP (000)

107.9112.9

108.9111.8

99.4104.5

100.9 103.2 104.0109.8

104.8 106.0

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 reported

Like-for-like

MOU (min/month)

15.315.9 15.9 15.7

14.515.214.9

15.4 15.5 15.214.9 14.5

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 reported

Like-for-like

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

Page 19: Belgacom Investors roadshow presentation full-year results 2010

EOP customers including Belgian residential customers of Scarlet

• Q4 revenue slightly down (-0.6%) to €83m

− Lower activation revenues fully offset impact slight price increase of revamped offer

− FY revenue +4.4% to €337m driven by growing customer base & revamped offer

• Q4 net adds (+6k) impacted by fierce competition

• FY net adds of +38k & total customer base of 1,113k

− Supported by Packs & new internet offer

− Impacted by increased competition

• Q4 ARPU of € 27.6, -4.9% yoy

• FY ARPU of € 28.2 or -1.7% yoy

− More customers benefit from recurring discount on Packs

− Offsetting positive impact of revamped offer

Consumer - Fixed Data

FY revenue +4.4%; customer growth impacted by fierce competition

Slide 19

79 78

8284

85 85 84 83

72

74

76

78

80

82

84

86

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed data revenue (EUR mio)

20 12 18 168 8 6

1,042 1,044 1,057 1,075 1,091 1,099 1,107 1,113

10

210

410

610

810

1.010

3

23

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

3

Broadband growth & EOP (000)

28.628.1

29.1 29.0 28.7 28.528.1

27.6

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Broadband ARPU (EUR/month)

Page 20: Belgacom Investors roadshow presentation full-year results 2010

• FY ARPU € 7.1 (+6%) driven by reply effect free SMS resulting in higher inbound revenues

• Q4 ARPU of € 7.5 up vs previous quarters due to seasonality effect

Consumer - Mobile Data

FY revenue +6.5% yoy impacted by regulation

• FY SMS +25.5% to 221.6; Q4 volumes up 19.2% yoy

• Increase driven by pricing plans incl free sms

Slide 20

71

77 7580 80 79 79

84

62

67

72

77

82

87

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Mobile data revenue (EUR mio)

156.0178.7 167.8

201.8215.2 226.5

203.5

240.5

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

SMS (units/month)

6.3

6.8 6.77.1 7.0 7.1 7.0

7.5

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Blended net data ARPU (EUR/month)

• FY revenue +6.5% to € 322m, with Q4 +6.1% yoy

− Including change in allocation credits & discounts

− FY SMS revenue +11%

− Advanced data -9.4% YoY, impacted by financial collecting model

• Advanced data impacted by Collecting model as from Q2 2010

• Excl collecting model adv data revenue +11.6%

2009* 2010 VAR Adj

Mobile data revenue 302 322 6.5%

SMS 235 261 11.0%

Advanced data 67 61 -9.4%

*2009 adjusted for the reallocation of credits & discounts

Page 21: Belgacom Investors roadshow presentation full-year results 2010

Belgacom TV

Confirming its growth path: revenues +36% yoy, customers +30%

• +223k new customer in 2010 (+30% vs end 2009)

• +55k new TV customers in Q4

• Growth supported by Packs; in particular Free TV Pack

• FY customer base at 975k incl 135k 2nd streams

• ARPU in Q4 at €19.7

− Down vs ‟09 as a result of lower one time revenues from activations & installation

− Up vs previous quarters due to seasonality

• FY ARPU at €19.7 vs € 20.4 in 2009

• Q4 revenues +23.1% yoy ; FY revenues +35.9%

• Driven by customer growth

• TV remains one of the growth drivers for CBU

Slide 21

29 3034

4044 43

4649

13

18

23

28

33

38

43

48

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

TV revenue (EUR mio)

4933

7589

62 54 52 55

555 589663

752 814 868 920 975

0

200

400

600

800

1.000

1.200

11

31

51

71

91

111

131

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

TV growth & EOP (000)

20.419.2

20.621.3 20.7

19.1 19.3 19.7

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

TV ARPU (EUR/month)

Page 22: Belgacom Investors roadshow presentation full-year results 2010

Tango – Mobile activities in Luxembourg

• FY revenue of €99m or +6.1% yoy

• Revenue growth driven by:

− Succesfull launch iPhone4

− Strong sales smartphones

− Migration of customers from prepaid to postpaid

• FY ARPU up €2.1 (or +8.7%) to €26

Slide 22

2323

23

2424

2525 25

20

21

22

23

24

25

26

27

28

29

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Tango revenue (EUR mio)

24.025.1

24.123.5 23.2

26.2 26.027.1

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Blended mobile net ARPU (EUR/month)

245 246252

259 262 260 260 260

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Tango mobile customers EOP (000)

Page 23: Belgacom Investors roadshow presentation full-year results 2010

23

Enterprise – Highlights

2010 showing recovery from crisis

• Crisis impact stabilized in 2010 • Revenue decline limited to 2.1%* , including regulation impact of € -39m or -1.6%

• Underlying business only down by 0.5% YoY, while this was 3.1% for 2009

• ICT revenue growing 3.3% YoY, while down in 2009 by 2.4%

• Mobile MoU for full-year 2010 -1.8%*, while in 2009 down by 5.9%

• Regulation impacting revenue by € -39m, but due to CoS decrease EBITDA impact

limited to € -3m

• Fixed voice line erosion contained, revenue impacted by lowered F2M tariffs

• Mobile Voice usage improving, revenue impacted by regulation

• Stable Broadband customer base in highly competitive and saturated market

• Revenue growth in Non-SMS mobile data tempered by pricing, a.o. due to EU

regulation on Data roaming, in spite of growing volumes

• Cost of Sales positively impacted by regulatory measures

• Contribution margin of 50%, slightly down on like-for-like basis

Slide 23 *2009 result adjusted for intercompany items

Page 24: Belgacom Investors roadshow presentation full-year results 2010

Enterprise - P&L

• FY 2010 CoS of € 685m; -1.6% vs last year*

• Positive effect regulation: MTR and Collecting model premium rate services

• Segment result of € 1,212m or -1.6% YoY

• Like-for-like, segment result -3.6% YoY

• FY impact regulation limited to € -3m

• FY contribution margin of 50% versus 50.8%*

− x

• HR-expenses FY 2010 of € 375m; -1.1% YoY

• Headcount end 2010: 5,263 FTEs, i.e. -65 FTEs YoY

• Non-HR expenses up by 5% to € 149m for FY 2010

• Q4‟09 expenses included positive one-time effect

• Q4 revenue : -3.2%*, incl. € 15m regulation impact

• FY 2010 revenue of € 2,421 million; -2.1% YoY*

• FY regulation impact € -39m

• 2010 underlying revenue -0.5%, vs 2009 -3.1% (crisis)

Slide 24

640626

602

632

633 619 596 625 615 610 590 606540

560

580

600

620

640

660

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

like-for-like

EBU revenue (EUR mio)

198

184174

192

183 173 161 180 183 175 163 164140

150

160

170

180

190

200

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

like-for-like

EBU Cost of Sales (EUR mio)

95 94 94 96 91 93 96 95

41 39 33 29 36 35 39 40

0

20

40

60

80

100

120

140

160

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Non-HR Personnel

EBU personnel & non-HR costs (EUR mio)

306310

301 315 306 308 292 306

47.7% 49.4% 50.0% 49.7% 49.7% 50.4% 49.5% 50.6%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

55,0%

-5

45

95

145

195

245

295

345

395

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

EBU EBITDA (EUR mio) & Margin

* Like-for-like, i.e. compared to 2009 adjusted for intercompany items

Page 25: Belgacom Investors roadshow presentation full-year results 2010

Enterprise - Fixed Voice

Fixed Voice line erosion contained, revenue impacted by regulation

• 2010 line erosion of -51k vs -53k in 2009

• Q4 2010 line loss of 14k driven by ao. delayed effect from bankruptcies

• FY 2010 Fixed Voice traffic of 3,145m min; -5.7% YoY

• Stable decline over the quarters

• Q4 traffic -5.7% YoY

• FY ARPU Fixed Voice of €30, i.e. -2.7% YoY

• Negative regulation impact: F2M & Collecting model

• Slightly offset by price indexation

• FY 2010 revenue of € 539m, -6.1% YoY

• Impacted by:

− lowered F2M-tariffs on 1 August 2010 (MTR-linked)

− collecting model Premium Rate Services

− line erosion and lower usage

Slide 25

148144

139 142 141136

130 132

110

115

120

125

130

135

140

145

150

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed voice revenue (EUR mio)

-15 -14 -11 -13 -14-11 -11 -14

1,529 1,515 1,504 1,491 1,477 1,466 1,455 1,440

-100

100

300

500

700

900

1.100

1.300

1.500

1.700

1.900

-20

0

20

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Voice line loss & EOP (000)

31.3 30.930.1

30.9 30.930.2

29.029.7

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed voice ARPU (EUR/month)

901837

770828 848

790727

781

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Traffic (mio min)

Page 26: Belgacom Investors roadshow presentation full-year results 2010

Enterprise - Mobile Voice

Revenue impacted by regulation; usage further improved

• 75k mobile customers added in 2010

• Strategic choice to focus on high-value SME customers

• FY 2010 Mobile Voice ARPU of € 33.1, -11.4% YoY*

• Regulation: MTR, Roaming and Premium rate numbers

• Success mobile voice price plans including free calling

• FY MoU of 319.2, -1.8% YoY *

• YoY variance improving over the quarters

• Solid MoU Q4: success of pricing packages/close user groups & some seasonality

Slide 26

• FY 2010 Mobile Voice revenue of €502m; -5% YoY*

• Regulation impact increased over the quarters

• Q4 2010 revenue -6.3% YoY, mainly due to MTR-cut

146 144

135 135

138 137 127 128 129 130 124 120100

105

110

115

120

125

130

135

140

145

150

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

like-for-like

Mobile voice revenue (EUR mio)

3021 20 24 25

19 14 17

1,170 1,190 1,211 1,235 1,252 1,271 1,286 1,303

500

600

700

800

900

1.000

1.100

1.200

1.300

0

20

40

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Mobile growth & EOP (000)

355.4 354.5

329.3

346.6

332.8 333.0

309.8325.7 319.7 321.8

305.6327.3

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 reported

Like-for-like

MOU (min/month)

42.1 40.737.6 37.2

34.8 34.5

40.2 38.9

35.6 35.132.4 30.9

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 reported

Like-for-like

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

* Like-for-like, i.e. compared to 2009 adjusted for intercompany revenue

Page 27: Belgacom Investors roadshow presentation full-year results 2010

Enterprise - Fixed Data

Stable Broadband customer base in saturated, competitive market

• Professional broadband customer base flat to last year:

− Saturated market

− Highly competitive

• FY 2010 ARPU of € 39.1, -2.2% YoY

− Success of consumer Packs, incl internet at discount

− Partly offset by “Bizz Options”

-

• FY 2010 revenue of € 392m, -2.3% YoY

• SME and self-employed signing up for advantageous CBU-Packs incl internet at discount

Slide 27

101 100 100 10099 98 98 98

90

95

100

105

110

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Fixed data revenue (EUR mio)

2-2 -1

4

01

0 -1

445 443 442 446 445 446 446 445

30

80

130

180

230

280

330

380

430

-4

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Broadband growth & EOP (000)

40.1 39.8 40.1 39.7 39.4 39.1 39.0 38.7

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Broadband ARPU (EUR/month)

Page 28: Belgacom Investors roadshow presentation full-year results 2010

* SMS excluding free usage

Enterprise - Mobile Data

SMS growth continued; price pressure on advanced mobile data

* Like-for-like, i.e. Compared to 2009 result adjusted for intercompany items

• Continued increase in number SMS

• Seasonality effect in Q4

• FY ARPU of € 12.2 or 5.7% lower than 2009

• FY 2010 revenue of € 185m, + 2.8% YoY*

− SMS revenue up by 4% to € 76m

− Advanced Data up by 2% to € 109m

• Advanced Data: revenue H2 2010 impacted by EU regulation to prevent bill shocks

• Increase in volumes offset by lower ARPU

Slide 28

4346

4847

4547 47 46

35

37

39

41

43

45

47

49

51

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Mobile data revenue (EUR mio)

64.7 68.4 68.6 76.5 74.6 77.0 74.785.5

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

SMS (units/month)

12.412.9

13.412.9

12.1 12.5 12.311.9

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Net data ARPU (EUR/month)

2009* 2010 VAR Adj

Mobile data revenue 180 185 2.8%

SMS 73 76 4.0%

Advanced data 107 109 2.0%

*2009 adjusted for reallocation of credits & discounts and eliminated intercompany revenue

Page 29: Belgacom Investors roadshow presentation full-year results 2010

FY 2010 revenue of € 692m; + 3.3% YoY

• Solid yoy growth for first three quarters; 2009 impacted by the crisis

• Some recovery from crisis visible as of Q4 last year

• Q4 2010 flat to 2009

• Good 2010 performance of Telindus International

Enterprise - ICT

Full-year revenue up by 3.3%

Slide 29

171166

153

181174 172

167

179

135

140

145

150

155

160

165

170

175

180

185

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

ICT revenue (EUR mio)

Page 30: Belgacom Investors roadshow presentation full-year results 2010

Service Delivery & Wholesale - P&L

• Like-for-like CoS down 26.2% to € 46m

• Positive impact from financial collecting model

• Q4 HR expenses +11.5%

− Wage indexation & net increase FTE (+73 FTEs)

− Q4‟09 low due to special tax reductions

• Q4 Non-HR yoy variance no longer impacted by swap RAN to Huawei equipment as this started in Q4‟09

Quarterly evolution fairly stable

• FY EBITDA at -€109m

• FY revenue of € 342m, or like-for-like* -1.7% yoy

− Decline fully due to regulation (€ -22m)

− Excl regulation revenue+4.7%

• Q4 like-for-like* -6.6% incl € 9m regulation

*2009 result adjusted for intercompany items & changes in revenue Slide 30

98 94 94 100

88 87 85 89 94 85 79 830

20

40

60

80

100

120

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported

like-for-like

SDE&W revenue (EUR mio)

50 50 47 45 51 48 53 50

48 43 42 51 50 50 52 50

0

20

40

60

80

100

120

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Non-HR Personnel

SDE&W personnel & non-HR costs (EUR mio)

-16-18

-13 -18-23 -23

-36

-27

0

0

0

0

0

0

0

-40

-35

-30

-25

-20

-15

-10

-5

0

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

SDE&W EBITDA (EUR mio)

1618 18

20

15 15 15 18 15 10 10 100

5

10

15

20

25

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

2009 Reported like-for-like

SDE&W Cost of Sales (EUR mio)

Page 31: Belgacom Investors roadshow presentation full-year results 2010

Staff & support - P&L

• FY revenues of € 35m, slightly up +4.6% yoy

− a.o. driven by slightly higher capital gains realised on sale of buildings

• FY personnel cost of € 165m or fairly stable vs 2009

• Non-HR expenses of €192m or -6.1%, including effect of company-wide cost focus

Slide 31

7

12

68

10

710

7

-1

1

3

5

7

9

11

13

15

17

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

S&S revenue (EUR mio)

41 4142 42

41

43

41 40

36

37

38

39

40

41

42

43

44

45

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

S&S Personnel costs (EUR mio)

50 4943

6150

45 4552

0

10

20

30

40

50

60

70

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

S&S non-HR costs (EUR mio)

Page 32: Belgacom Investors roadshow presentation full-year results 2010

International Carrier Services P&L

• Volumes continued stable increase

− Positive impact additional MTN business

− Voice volumes +31%

− Non-voice volumes +46%

• FY revenues of €1,610m; incl Q4‟10 of €402m

− Positive effect full consolidation & MTN ICS contribution

− Organic revenue +3.9%, including +4.7% in Q4‟10

• Reported FY gross margin +58.4% incl full conso effect

• Organically, Voice margin pressured by competition & exchange rate fluctuations

• Non-voice margins up, increased leadership in mobile data

• Reported EBITDA of €129m positively impacted by full conso & contribution MTN

• Lower operating expenses largely offset pressure on gross margins

• FY EBITDA margin at 8%, slightly down to 2009

Slide 32

217 227 228 221

378414 415 402

0

50

100

150

200

250

300

350

400

450

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

ICS total revenue (EUR mio)

1923

17 2028

32 34 36

8.7% 10.0%

7.4%8.8%

7.4% 7.7% 8.1%8.9%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

-2

3

8

13

18

23

28

33

38

43

48

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

ICS EBITDA (EUR mio) & Margin

20 24 20 2133 33 32 34

12 17 15 14

19 23 28 24

0

10

20

30

40

50

60

70

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Voice Non-Voice

ICS direct margin (EUR mio)

4,498 4,707 4,805 5,3065,923 6,254 6,433 6,680117 119 149

164 168 188 209 235

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Minutes SMS/MMS

ICS volumes (in mio)

Page 33: Belgacom Investors roadshow presentation full-year results 2010

33

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)

Popular discussion topics • Headcount – slide 34 • Regulation – slide 35 • Legal – slide 39 • Convergence – slide 40 • Belgacom TV – slide 41 • Mobile Data – slide 44

• Network – slide 47 • BICS – slide 51 • Debt position Belgacom – slide 54 • Shareholder structure – slide 55 • Belgian economy – slide 56 • Customer centricity – slide 57

Slide 33

Page 34: Belgacom Investors roadshow presentation full-year results 2010

Slide 34

• Belgacom decreased its

headcount considerably

over the years

• About 40% of headcount

has civil servant status,

no new civil servant

contracts since 1997

Group - Headcount

Benefitting from headcount reduction programs

• FY HR costs of € 1,107m, i.e. ~24% of Group costs & ~17% of Group revenue

• HR costs -1.6% yoy, like-for-like1 driven by fewer headcount (-496 FTE‟s)

− Ongoing headcount reduction programs (-571 FTE) & natural attrition (-241 FTE)

− Partly offset by increase (+316 FTE) due to acquisitions, full consolidation BICS & recruitment

business-critical functions

• Q4‟10 HR costs impacted by 2% wage indexation (October 2010 – Belgacom SA)

• 2011: January non-Belgacom SA +June2 Belgacom SA, additional 2% wage indexation

• In 2011, Tutorship program will continue but some business critical hiring will be done

1 BICS consolidated at 57.6% 2 Source: Federal planning Bureau

5000

10000

15000

20000

25000

YE96 YE97 YE98 YE99 YE00 YE01 YE02 YE03 YE04 YE05 YE06 YE07 YE08 YE09 YE10

PTS

- 6,300 FTE

BeST

- 4,160 FTE

Telindus

+ 2,600 FTE

Tutorship

FMS

2006-2012: - 3,900 FTE

Move to IP

supporting

lower

headcount

End‟10

16,308

FTE

Page 35: Belgacom Investors roadshow presentation full-year results 2010

7.2

4.623.94

2.46

9.02

11.43

1.08

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

MTR-Glidepath in €ctProximus Mobistar Base

*excl VAT, including inflation Rates 2012-2013 excl VAT, final rates will be corrected for inflation

• Glidepath in place since June 2010 leading to full

symmetry by 2013

• Any MTR decrease reflected in F2M tariffs of BGC

• Mobistar & Base filed separate appeal against decision:

• On 15 Feb 2011, Court took its decision in

suspension procedure & rejected all the claims

• Annulment procedure is still ongoing

MTR regulation impact 2010

• Cut 1 Aug 2010, lowering asymmetry with Base & Mob.

• MTR impacts revenue of all mobile players; EBITDA impact limited for BGC due to reduced asymmetry

• Actual impact on 2010 financials: − Revenue: € -39m − EBITDA: € -3m

MTR regulation impact 2011

• Carry-over impact from cut 1 Aug 2010

• 1 Jan 2011 MTR‟s further reduced

• Estimated impact on 2011 financials: − Revenue: ~ € -80m − EBITDA: < € -15m

Regulation - 1

Mobile Termination Rates (MTR)

Slide 35

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

Proximus 7.2 4.62 3.94 2.46 1.08

Mobistar 9.02 5.05 4.29 2.62 1.08

Base 11.43 5.81 4.90 2.92 1.08

% change

Proximus -36% -15% -38% -56%

Mobistar -44% -15% -39% -59%

Base -49% -16% -40% -63%

Assymmetry

Mobistar-Prox 25% 9% 9% 7% 0%

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

Final decision on MTR

Big drop in asymmetry as from August

2010

Page 36: Belgacom Investors roadshow presentation full-year results 2010

100

80

50

1 July '09 1 July '10 1 July '11

Wholesale Data Roaming (€ct per Mb)

Slide 36

Roaming regulation impact 2010

• 2010 was impacted Carry-over impact from lower

rates on 1 July 2009

• Roaming rates voice further decreased on 1 July 2010

• Data roaming rates regulated at wholesale level,

prices went down on 1 July 2010

• Actual impact on 2010 financials: − Revenue: € -24m − EBITDA: € -22m

• In addition, revenue impacted by measures taken to prevent bill shocks: financial limit of €50/m (VAT excl.)

Roaming regulation impact 2011

• Carry-over impact from lower rates on 1 July 2010

• Voice and data roaming rates will further decrease on

1 July 2011

• Estimated impact on 2011 financials: − Revenue: ~€ -10m − EBITDA: ~€ -10m

Regulation expires on 30 June 2012. Rules to be reviewed by 30 June 2011.

Regulation - 2

Mobile voice and data EU-roaming regulation

95

49 46 43 39 3543

24 22 19 15 11

44

30 28 26 22 18

Before regulation

End Aug'07 End Aug '08 July '09 July '10 July'11

Voice Roaming (€ct per minute)Retail Outgoing Retail Incoming Wholesale Outgoing

39

1121

4

Before regulation 1 July '09

SMS Roaming (€ct per sms)Retail Wholesale

Tariffs before regulation are indicative averages of European tariffs, mix of postpaid/prepaid and residential/business

Slide 36

Page 37: Belgacom Investors roadshow presentation full-year results 2010

• As from 1 April 2010, financial collecting model for

Premium Rate Services

• Following circulars issued end 2009 by Ministry of

Finance concerning VAT on Premium Rate Services

and Tax on chance games

• Applicable for services where Belgacom collects on

behalf of a third party content provider

Collecting model impact 2010

• From April revenue no longer considered as full

revenue of BGC & only margin booked as revenue

• Actual impact on 2010 financials: − Revenue: € -56m − EBITDA: no impact

Collecting model impact 2011

• Carry-over impact in Q1 2011

• Estimated impact on 2011 financials: − Revenue: ~ € -20m − EBITDA: no impact

Regulation - 3

National directive on Premium Rate Services

Collecting model for premium

rate services

Slide 37

Page 38: Belgacom Investors roadshow presentation full-year results 2010

Zoom-in on new LLU & Bitstream prices

New LLU prices

• In Aug‟102, the BIPT decided to: − Lower monthly price for full unbundling by ~20% − While keeping the price for shared access stable

• New price for LLU is at the low EU end

• BGC lodged annulment procedure against the decision

New Bitstream prices

• In Aug‟102,the BIPT also set new prices for ATM Bitstream, and took a final decision on Ethernet Bitstream & VDSL2 bitstream

• For VDSL2, a 15% mark-up is currently applied

Regulation - 4

Other regulatory measures

Slide 38

New LLU and Bitstream prices

1 LLU: Local Loop Unbundling (BRUO) 2 On 10 November 2010, the BIPT has communicated an erratum to its decision of Aug, setting with retroactive effect until 15 Aug

the new monthly prices

Impact 2011 from other regulatory measures

• Some other regulatory measures will impact the 2011 financials: o.a. the new LLU1 and bitstream prices

• Estimated impact on 2011 financials: − Revenue: ~ € -5m − EBITDA: ~ € -5m

BIPT decision of 2010

EUR Before 2010

Full unbundling 9.29 7.78 Shared access 0.85 0.87 ATM bitstream 14.31 12.72 Ethernet bitstream - 11.48 VDSL2 bitstream - 13.94

Page 39: Belgacom Investors roadshow presentation full-year results 2010

On-net case: damage claim Base/Mobistar

Belgacom introduced motion in respect of expert panel following 2nd preliminary report

• Damage claim filed in 2003 by KPN Group Belgium (Base) & later also by Mobistar, claiming that BGC: − applied termination charges that were too high − abused its dominant position by applying too low prices for on-net calls (Prox-to-Prox calls)

• In May 2007, the court considered it was not in a position to make a decision on the alleged existence of

a price squeeze & anti-competitive network effects. Two experts were appointed to examine: − whether such practices existed, − whether they produced anti-competitive effects and − what damages could have been caused to the claimants

• The panel filed 2 preliminary reports (in Oct 2009 & Dec 2010) in which they considered: − Base & Mobistar underperformed as compared to the results and market shares they would have

achieved in an efficient market (assumption: in a perfectly competitive market, market shares are symmetrical).

− The 2nd report introduced new elements o.a. a constant profitability benchmark for the whole period based on the UK market (1999-2004) during which UK operators were in a different phase of development than the Belgian market

− Alleged impact on Mobistar & Base could amount to € 1,840m.(2nd report)

• BGC has submit its detailed observations and criticisms. In the 2nd report, the vast majority remained unanswered & Belgacom‟s own expert reports were largely disregarded

=> BGC introduced a motion with the court in respect of the expert panel, requesting their

recusal/replacement. This motion is to be dealt with by the court in the near future

Legal – Damage claim Base/Mobistar

Update on status

Slide 39

Page 40: Belgacom Investors roadshow presentation full-year results 2010

153231

302384

560

741

870

3351

26 2744 52

31

70

10692 88

66 63

0

100

200

300

400

500

600

700

800

900

1.000

0

50

100

150

200

250

Q4'07 Q2'08 Q4'08 Q2'09 Q4'09 Q2'10 Q4'10

Packs evolution since launch ('000) net adds total

Slide 40

Group - Convergence

Execution of consistent convergence strategy paying-off

Example of triple-play Pack @ € 62.46/month1

Fixed line with free “happy time” option – free calling

to fixed lines after 5 pm & on weekends

Internet Favorite – Download speed of 25Mbps,

upload 3.5 Mbps, 100 GB volume

Belgacom TV Comfort, renting

settop-box included

Customers save €18.5/month

1 New prices as from 1 January 2011; incl VAT

Example of triple-play Pack @ € 72.46/month1

Mobile subscription including 55 minutes Any Time

Any Network

Internet Favorite – Download speed of 25Mbps,

upload 3.5 Mbps, 100 GB volume

Belgacom TV favorite, renting settop-box included

+ 2 thematic bouquets

Customers save €27.5/month

Single double Triple QuadrupleMultiplay overview residential customers

> 45% of customers have ≥ 2 BGC products

Number of Quad-play customers growing steadily to 9%

Growing proportion of mobile Packs

Multiplay overview residential customers

< 55% single play

Page 41: Belgacom Investors roadshow presentation full-year results 2010

Belgacom19%

Cable78%

Satelite 3%

Belgian Total TV market - market shares

• ~ 4.7 m households in Belgium

• Digital TV penetration Belgium of ~57%*

• Belgacom present in all regions

• Belgacom TV coverage ~90%

• Belgacom Digital TV market share of 31% − Share in total TV market: 19% − Belgacom 2nd player in DTV market

• Belgacom TV subscriber base of 975k (i.e.

households + multiple streams) fairly evenly

spread North/South

• Digital TV market penetration & market share

Belgacom:

Belgacom TV

Market overview

Flanders Telenet-zone

WalloniaVoo-zone

Brussels Numéricable

Bel

ga

com

-zo

ne

Competitive landscape

31% DTV market

share

* Source: Company figures & estimates, competitor press releases Slide 41

Digital

57%

Analoge

43%

31%

Page 42: Belgacom Investors roadshow presentation full-year results 2010

• Strong customer growth since launch in June „05 − In 5 yrs time Belgacom gained 975k* TV

subscribers, representing 839k households − Customer gain supported by Packs incl.TV − Unique market positioning with “Free TV” claim

• ~60% of CBU broadband customers have a TV

subscription

• FY 2010 TV revenues amounted to €182m

− 36% revenue increase yoy driven by the growing customer base

− TV now represents about 8% of CBU revenues

• ARPU per household grew significantly since

launch − Growing customer base lowers impact of

promotions − Services (VoD,„bouquets‟, football...) adding to

ARPU

Belgacom TV

An international recognized success story

Slide 42 * Corresponds to the number of Belgacom TV settop boxes

215

43

86

143

182

2005 2006 2007 2008 2009 2010

Belgacom TV revenue evolution (in mio €)

1032 29 37

10

4258 56

44 42 5263

4934

7489

62 54 52 55

42140

305

506

752

975

-3 0 0

-1 0 0

1 0 0

3 0 0

5 0 0

7 0 0

9 0 0

1 .1 0 0

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

Q405 Q206 Q406 Q207 Q407 Q208 Q408 Q209 Q409 Q210 Q410

Evolution TV base* since launch ('000 EOP) net adds Total

+30% TV

customers yoy

11.9 12.6

16.618.5

21.319.7

Q405 Q406 Q407 Q408 Q409 Q410

Evolution TV ARPU since launch

Page 43: Belgacom Investors roadshow presentation full-year results 2010

Slide 43

Soccer

Bouquets

=

Basic pricing of

€18.5/month

Incl. settop box

( €6/month)

“All Foot”

€19.95/month

“My Club”

€9.95/month

Per match

€5-€10

Additional

channels

as from

€5/month

Pause TV,

recording,

Instant rewind

Movies on

demand

€2-€6.5

HD movies

from €4-€7

Belgacom TV

From TV towards entertainment

Rich offer: 90 channels, incl HD

VOD >1300 movies

Advanced functionalities

Onlive: interactive entertainment, cloud computing & online gaming

in3Depth Systems (Softkinetic): expertise in 3G gesture recognition

Jinni: personalized search-and-recommendation engine

blinkx: video search engine

MUBI: Belgacom expanded its TV film catalog with 300 MUBI films (films for lovers of independent, foreign and classic films)

Building a next generation TV experience, supported by selective partnerships

A complete & competitive

offer

3D TV demo

March‟10 live

transmission

football match

Two 3D demo

channels

Belgacom

Entertainment

Create

Openness

ShareEmotions

Bring the Human

Touch

Enjoy Diversity

Anticipate the Future

Page 44: Belgacom Investors roadshow presentation full-year results 2010

• BGC Group generated € 507m revenues from mobile data; or +5.1% yoy

• Yoy variance has been impacted by regulatory measures:

- EU-regulation on data roaming

- Collecting model for Premium Rate Services

• Mobile data includes both SMS & non-SMS data:

- SMS revenue increased 9.4% yoy to € 337m driven by success of pricing plans including free SMS

- Non-SMS (i.e. advanced data) showed a decline of 2.4% yoy to € 170m driven by regulatory measures. Excl regulation, revenues increased ~7% driven by the success of Mobile internet solutions

• Reported FY Mobile data ARPU:

- For CBU, increased 6% yoy to € 7.1

- For EBU amounted to € 12.2 or -5.7% yoy

Mobile data - 1

Mobile data on Group level

* Mix of SMS and advanced data

Mobile data ~30% of Mobile service revenue

Advanced data ~35% of

Mobile data revenue

Slide 44

6,5 6,3 6,1 6,4 6,3 6,8 6,7 7,1 7,0 7,1 7,0 7,5

12,4 12,3 12,5 12,5 12,4 12,9 13,4 12,912,1 12,5 12,3 11,9

Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Mobile Data ARPU * CBU EBU

268 308 337

172174 170

2008 2009 2010

Mobile data Group revenue evolution (in mio €) SMS Non-SMS

440482 507

Page 45: Belgacom Investors roadshow presentation full-year results 2010

62%

38%

Belgacom Mobistar

Mobile data - 2

Zoom-in “Internet on Laptop” & “Internet on Smartphone”

* Total subscriptions for internet on laptop

49,00064,000

87,000114,000

139,000

182,000

Q208 Q408 Q209 Q409 Q210 Q410

Belgacom Mobile Internet customer base*

+60% yoy

Slide 45

For CBU: Comfort @ €14.99/month For EBU (SME): Comfort @ €10.32/month

(incl VAT) (ex VAT)

- 1GB included - 15h included

- Extra usage: €0.03/MB - Extra usage: €2.06/hour

(if no BGC internet subscription: €19.99)

iPad Anytime@ €24.99/month Pay &Surf: iPad10€

incl 1.5GB 4 days; 500 MB

Special pricing

plans for iPad

For CBU:

Option on postpaid voice:

Comfort @ €9.99/month (incl VAT)

- 250MB included

- Extra usage: €0.03/MB

Pay&Surf for prepaid voice @ €3

- 25MB included

For EBU (SME):

Internet and voice bundle:

Bizz Smart 35 @ €35/month (ex VAT)

- 400 MB included

- Extra usage: €0.0248/MB

-150 voice minutes / free to fixed lines

Mobile

Internet on

Laptop

Mobile

Internet on

Smartphone

InternetOn GSM

Try it!

Page 46: Belgacom Investors roadshow presentation full-year results 2010

Mobile data - 3

Belgacom well positioned to capture mobile data growth

Slide 46

Mobile Network

WiFi

Femto

Macro DATA

VOICE

3G

Fix DSL Network

• 55% of private mobile data is consumed at home

• Opportunity to redirect data from Mobile network to fixed network

High-quality 3G-network & strategic option to offload data to sustain customer experience and keep investments under control

Page 47: Belgacom Investors roadshow presentation full-year results 2010

Slide 47

Fixed Network - 1

Nation-wide, high-quality fixed network

• ADSL : 99.85 % - world record

• Strategic decision end 2003 to invest in FttC* (Broadway project)

• Enabler for organic growth and innovation, answering customer needs

• Deploying high-quality & nation-wide VDSL coverage: − End 2010 >76% FTTC* population coverage ; further extended to reach 85%

service coverage by end 2013 − VDSL : up to 30 Mbps

• Quality DSL network, driving TV coverage − Belgacom TV ~89% − HDTV service coverage: 73%

• So far ~€ 550m invested in Broadway

Local exchange / Central Office

Street cabinet &Remote optical platform

= fiber

= copper

2) VBB

4) Pair bonding

5) FTTH

Homes / businesses

1) 17 MHz

3) DSM3) DSM

1. Increase spectrum

2. Reduce copper distance

3. Neutralize interference between copper pairs

4. Use of several pairs

5. Use of fiber end-to-end in the network

Compression

Further maximise network efficiencies:

Access network toolkit & compression techniques

“Boost the Copper strategy”

Reconfirmed

* Fiber to the Curb

Page 48: Belgacom Investors roadshow presentation full-year results 2010

Slide 48

Fixed Network - 2

Move to all-IP program

• Continued roll-out of MaIP project, a business transformation project entailing a full re-engineering of the network, IT-systems & processes

• € 101m invested since launch in 2008, of which € 50m in 2010

Realizations 2010: improved monitoring & diagnostic services, launch of new sales support tool for residential market & new “from quote to cash” application implemented for ICT Belgium

• Enabler for long term headcount efficiencies

• Future out phasing of ~10% of local exchanges

MobileMobile

From

To

AccessNetwork

CPE

AccessNetwork

CPE

ATM/SDHATM/SDH

PSTNPSTN

InternetInternet

TVTV

VoDVoD

IPEthernetDWDM

ROP

Video onDemand

TVBroadcasting

Internet

Video onDemand

TVBroadcasting

Internet

Dedicatedinfrastructure

per service

Dedicatedinfrastructure

per service

Sharedinfrastructure for all services

Sharedinfrastructure for all services

Future prooffixed/mobileintegration

Future prooffixed/mobileintegration

Little convergence capabilities

Little convergence capabilities

ISDN

ADSL

SDSL

ADSL2+

Leased Lines

Ethern.& SDH

ISDN

ADSL

SDSL

ADSL2+

Leased Lines

Ethern.& SDH

VDSL2

UMTSHSDPA

Centra

l Offic

e

Voice

Mobile

Data / LL

Fibre

Aggre

gatio

nPoin

t

IMS

+

SDP

Mobile

VoIP

Future Services

Objectives MaIP:

• Replace legacy technologies which become end-of-life by IP based alternatives

• Transform our IT stack to improve efficiency and reduce waste by automation, 360° view on customer, avoiding rework and automated repair analysis

• Transform the customer interaction model by more customer self management

Network simplification

Page 49: Belgacom Investors roadshow presentation full-year results 2010

Slide 49

Network - Mobile

Nation-wide, high-quality mobile network

• 2003 – strategic decision to invest in 3G

• Current Radio access network (RAN) being replaced by state-of-the-art single RAN hybrid product providing a simplified, high capacity, high performance and future proof network − Keep network superiority − Lower the cost of adding extra transport technology − Act swifter to strategic changes − Go for Long Term Evolution (LTE) reusing part of the equipment

Voice/Circuit

GPRS :30 to 50 kbps EDGE :

150 à 200 kb/s

UMTS :128 to 384 kbps

HSDPA :A few Mbps

Spectrum efficiency

1995 2005 2010

HSPA +: A few 10Mbps

50-100Mbps

EDGE Evolution:10-14 Mbps

• Leader in coverage − GSM sites covering

99.98% of Belgian population

− 3G sites covering 97% of Belgian population

• Leader in speed − Drive tests show best

data transfer speed of 3 operators − Best in class in upload

speed

Leader in coverage

& speed

Page 50: Belgacom Investors roadshow presentation full-year results 2010

Spectrum

Belgian situation & upcoming spectrum auctions

2G spectrum

900 MHz & 1800 MHz

•Belgian operators allowed

to deploy UMTS in 900

MHz spectrum (more

efficient in rural areas)

•Tacit extension: BGC has

to pay €74m for 2010-

2015; via annual

payments. BGC filed

annulment procedure.

3G spectrum

2100 MHz

•Proximus, Mobistar & Base

each have 1 UMTS license

•3 licenses expire in 2021

•BGC paid € 150m

•BIPT intends to auction 4th

license in June 2011; all

reserved for 4th entrant;

unless spectrum remains

available

4G spectrum

2600 MHz

•To be assigned: auctions

expected mid-October 2011

•Available spectrum: − 2 x 70 MHz paired

spectrum − 1 x 45 MHz unpaired

spectrum

Digital dividend

790 MHz – 862 MHz

•Spectrum that is freed up

by switching from

analogue to digital

terrestrial TV broadcast.

•Part of digital dividend

could be used for telecom

services

•No clarity on the digital

dividend yet

Proximus

2 x 12

Mobistar

2 x 12

Base

2 x 10.8

Proximus

2 x 15

Mobistar

2 x 15

Base

2 x 22

2x

5.8

2x

5,8

Free

2 x 11.4

72

Proximus

2 x 15

Mobistar

2 x 15

Base

2 x 15

1x

5 1x5 1x5

Free

2 x 15 1x5

Will be available

2 x 70 1 x 45

800 MHz

900 MHz

1800 MHz

2100 MHz

2600 MHz

Page 51: Belgacom Investors roadshow presentation full-year results 2010

International Carrier Services BICS delivers best in class global solutions

• Active in the international carrier market since 1997

• January „05: spin off of Belgacom ICS as an independent affiliate of Belgacom

• Since Dec „09 JV held by Belgacom, Swisscom & MTN

• In top 4 of largest operators worldwide in terms of voice traffic volume*

• World leader in mobile data carrier services (SMS, MMS, GPRS Roaming, Signalling…)

• 650 customers, incl. > 250 mobile operators

• > 99 points of presence (PoPs) in 47 cities and 33 countries, 9 Metropolitan area networks

• Participations in 75 submarine cables

• Offices in Brussels, Bern, Monaco, New York, Dubai and Singapore

*company estimates

57.6%22.4%

20%

BICS ownership

Slide 51

Sender Receiver

Belgacom Swisscom

MTN Fixed operators

Mobile operators xSP‟s

Fixed operators Mobile operators

xSP‟s

VOICE: collecting & terminating international voice traffic

MESSAGING: ensuring interoperability for SMS & MMs

ROAMING: full set of services to enable roaming traffic

CONNECTIVITY: transport of Signalling, roaming GPRS, IPX and the provisioning of tailored, high-quality bandwidth solutions

MOBILE FINANCIAL SERVICES

Page 52: Belgacom Investors roadshow presentation full-year results 2010

July 2005: JV with Swisscom in exchange

for 28% of ownership and joint control.

February 2006: Outsourcing

agreement with MTN regarding MTN‟s international Voice &

Data traffic

November 2006: Partnership

between BICS and Omantel for delivering

high quality traffic

May 2008: Next step in partnership of

BICS with Omantel, investing jointly in the

Europe – India Gateway

December 2009: MTN contributes its international

carrier services to BICS

Until year-end 2009, BICS was jointly controlled & therefore proportionally consolidated

• In Q4‟09 BGC booked a non-cash capital gain of € 74m; classified as non-recurring revenue

= net result of MTN contribution at 57.6%, minus dilution BICS book value (going from 72% to 57.6%)

As from 2010, Belgacom acquired control & BICS became fully consolidated

• In Q1‟10 BGC booked a non-cash capital gain of € 436m; classified as non-recurring revenue

= re-measurement of BICS at fair value through P&L

• Financial results BICS booked at 100%: increasing Belgacom Group financials

• Group net income corrected via minority interest

Slide 52

International Carrier Services Impact of MTN transaction on financials

Page 53: Belgacom Investors roadshow presentation full-year results 2010

9,75312,209

13,84116,232

19,858

26,090

2005 2006 2007 2008 2009 2010

Volume growth (in mio)

713 736 746 812892

1,610

2005 2006 2007 2008 2009 2010

Revenue growth (in mio €)

International Carrier Services

BICS grew significantly over the last 5 years

• Strong revenue growth driven by successful

partnerships, boosting volumes

• Proportion of BICS revenue in Belgacom Group

revenue grew from 13% in 2005 to 24% end 2010,

impacting the Belgacom Group margin

• 2010: Growth of BICS at typical lower margin

continued and is impacting the Group margin in two

ways:

- As a result of the full-consolidation as of 1 Jan „10

- A growing organic business

*Proportionally consolidated until end 2009 @ 72%

*Total BICS volumes, i.e. @ 100% Slide 53

27 33

5364

78

129

3.8% 4.5%7.2% 7.9% 8.7% 8.0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010

Evolution EBITDA & EBITDA marginEBITDA Margin

2010 full- consolidation & MTN ICS

Page 54: Belgacom Investors roadshow presentation full-year results 2010

• Belgacom continues to have a sound financial position

• Average interest on LT loans/debt for 2010: 4.77%

• Most of the debt is maturing in 2011 & 2016

• In order to pre-finance the maturing bonds of November 2011, BGC issued on 31 January 2011:

- 7 year senior unsubordinated bond of €500m

- with a fixed coupon of 3.875%

- maturing 7 Feb 2018

• In March 2011, BGC invited the holders of the outstanding 4.125 per cent bonds due November

2011 to tender their notes for purchase against cash: BGC will pay a cash purchase price of

€51,050 for each €50,000 in nominal amount

Slide 54

Debt position Belgacom

Carrying

amount

Nominal

amount

Maturity

date

Interest rate

payable

Effective

interest rate

(mio €) (mio €) (b)

Floating rate borrowings JPY (a) 85 73 Dec-96 Dec-26 1.21% 1.21%

Fixed rate borrowings

EUR 745 750 Nov-06 Nov-16 4.38% 4.50%

EUR 174 200 Nov-16 4.38% 7.16%

EUR 125 125 Dec-13 6.00% 6.11%

JPY (a) 85 73 Nov-95 Nov-15 6.18% 6.18%

JPY (a) 92 72 Dec-95 Dec-15 6.21% 6.21%

Total unsubordinated debentures 1,306 1,292(a) converted into a loan in EUR via currency interest rate swap

(b) for floating rate borrowings, interest rate is the one prevailing at the last repricing date before 31 December 2010

Non-current unsubordinated debentures as of 31 December 2010 are summarised as follows:

Page 55: Belgacom Investors roadshow presentation full-year results 2010

Shareholder structure

Belgian state owns ~ 53.5%

Shares %

shares

%

Voting

%

Dividend

Belgian state 180,887,569 53.5% 56.3% 55.8%

Free float 140,595,072 41.6% 43.7% 43.3%

Own shares 16,542,494 4.9% - 0.9%

338,025,135 shares, of which 321,482,641 Outstanding

• Limited liability company under public law - Belgian state main shareholder: 53.5%

- Legal obliged threshold: 50%+1 share

- Last elections June 2010, government formation ongoing

- Minister of Public Companies: Inge Vervotte

- 14 Boardmembers, 50% state-appointed

• Free float 41.6% - Main shareholders located in US, UK, Benelux,

France & Germany

• Treasury shares 4.9% - Under Belgian law, companies prohibited from

owning >20% of outstanding share capital

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

Slide 55

Belgian State 53.5%

Free Float 41.6%

Own shares 4.9%

Page 56: Belgacom Investors roadshow presentation full-year results 2010

Source: European Economic forecasts (Autumn 2010 & interim forecast 2011) & Federal Planning Bureau 1 GDP – percentage change on preceding year 2 Number of unemployed as a percentage of total labour force 3 Index of consumer prices – percentage change on preceding year

Macro economic environment

Belgium & Euro area

Slide 56

1.0%

-2.8%

2.0% 2.0% 2.0%

0.4%

-4.1%

1.7% 1.6% 1.8%

1 2 3 4 5

Belgium Euro area

GDP growth (%)1

2008 2009 2010 20122011

7.0%7,9%

8.4% 8.4% 8.7%7.5%

9.5%10.1% 10.0% 9.6%

1 2 3 4 5

Belgium Euro area

Unemployment rate (%)2

2008 2009 2010 20122011

4.2%

2.1%

3.3%

1.9%3,3%

0.3% 1.5%2.2%

1.7%

1 2 3 4 5

Belgium Euro area

Inflation (%)3

2008 2009 2010 20122011 -12.8%

-7.2%

6.4% 5.3%

-0.5%

13.5% 13.8%

8.7%

5.2%

-0.1%

-4.9% -4.3%

-11.6%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Bankruptcies in Belgium (%)Jan 2010 - Jan 2011

• Belgian economy following Germany • Growth likely to remain above EU average

Projected inflation driven by increasing energy prices

Belgium : Budget deficit from

6% in ‟09 to 4.6% in‟10 2011 est. @~4.1%.

Debt ~100% of GDP

Page 57: Belgacom Investors roadshow presentation full-year results 2010

Customer is King: act on 3 layers

Become Belgian operator with best service

+ +

• Quality of execution • New expert teams • Evening installations and

repair • Predictive treatments

• Simplify activation costs structure

• 1st reminder for free • Simplify product portfolio

• Drastically reduce waiting times

• Call centres open until 10pm for support

• Personalized follow-up • Confirm appointments • New support site (EVA)

Improve operations Simplify Be accessible

Customer Centricity

Change Customer Experience

Page 58: Belgacom Investors roadshow presentation full-year results 2010

“This communication might include some forward-looking statements, without

limitation, regarding Belgacom‟s financial or operational results, certain strategic

plans or objectives, macro-economic trends, regulation, future market conditions

and other risk factors. These forward-looking statements rely on a number of

assumptions concerning future events and are subject to uncertainties and other

factors, many of which are outside Belgacom‟s control. Therefore the actual future

results may differ materially from those expressed in or implied by the statements.

Readers are cautioned not to put undue reliance on forward-looking statements,

which speak only of the date of this communication.

Belgacom disclaims any intention or obligation to update and revise any forward-

looking statements, whether as a result of new information, future events or

otherwise.“

Cautionary statement regarding forward-looking statements

Slide 58

Page 59: Belgacom Investors roadshow presentation full-year results 2010

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

http://www.belgacom.com

Slide 59