Q1 2013 ROADSHOW PRESENTATION - Mobistar

Q1 2013 ROADSHOW PRESENTATION

Definitions
ARPU: Monthly average revenue per user is
based on a rolling 12 months average taking
into consideration total Incoming & outgoing
revenues voice, SMS and MMM, visitor
roaming ( excl.: MatMa, MVNO, IFRS, MBB )
AUPU: Monthly average usage per user,
defined as total usage for the 12 previous
months divided by the weighted average
number of customers
M2M: =Machine-to-machine = MatMa. M2M
cards are not included in the number of
active customers since 2012
Mobile Multimedia: (MMM): Wireless highspeed
internet access on handset devices
Mobile broadband (MBB): Wireless highspeed
internet access through a portable
modem / card, on tablets, netbooks,
notebooks and laptops. (Internet Everywhere)
• MVNO: Mobile Virtual Network Operator.
These are operators that do not have their
own radio network and thus use the
infrastructure of third-party networks.
MTR: Mobile Termination Rate is the per minute
charge paid by a telecommunications network
operator when a customer makes a call to
another mobile network operator
MNP: mobile number portability allows mobile
customers to keep their mobile numbers when
they change operators. The donor operator
deactivates the mobile number in its information
system; the recipient operator actives the same
mobile number in its own
NPS (Net Promoter Score): A measure of
customer loyalty. It is obtained by asking
customers a single question on a scale of 0 to
10 where 10 is 'extremely likely' and 0 is 'not
likely at all’.
Operating cash-flow: Corresponds to restated
EBITDA minus CAPEX. Mobistar uses this
indicator to measure the Group’s performance
in generating cash flow from its operating
activities.
2

Cautionary Statement
This presentation contains forward-looking statements about Mobistar, in
particular for 2013 and 2014. Although Mobistar believes these statements are
based on reasonable assumptions, these forward-looking statements are subject
to numerous risks and uncertainties, including matters not yet known to us or not
currently considered material by us, and there can be no assurance that
anticipated events will occur or that the objectives set out will actually be
achieved. Important factors that could cause actual results to differ materially
from the results anticipated in the forward-looking statements include, among
others, the impact of the price adjustments on the customer base resulting from
the competitive pressure and the economic situation in Belgium, the acceleration
of the efficiency programs which aims at a structural net savings of the cost base
of Mobistar from 30 to 50 million euro net as of 2014, the effectiveness of
Mobistar convergent strategy including the success and market acceptance of
the voice and date abundance plans, the Mobistar TV offers, the Mobistar brand
and other strategic, operating and financial initiatives, Mobistar’s ability to adapt to
the on-going transformation of the telecommunications industry, regulatory
developments and constraints and the outcome of legal proceedings, risks and
uncertainties related to business activity.
3

Agenda
• Key Highlights
• Operating Results
• Topics in the Spotlight
• Financial Review
• Outlook 2013
Siddy Jobe
Director Investor Relations
& Corporate Finance
Werner De Laet
Chief Financial Officer
Jean Marc Harion
Chief Executive
Officer
Olivier Ysewijn
Chief Strategy
Officer
Bart De Groote
Chief Officer B2C
4

KEY QUARTERLY
HIGHLIGHTS
Economic Indicators
Q1 Market Review
Company Highlights
Strategic priorities
Guidance
5

1,0%
0,5%
0,0%
-0,5%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0%
Economic Indicators – Belgium
GDP growth, quarter-on-quarter Unemployment rate, monthly data
2Q10
1Q10 0,1%
1,0%
Jan-10
Mar-10
May-10
Jul-10
0,5%
3Q10
Inflation, monthly data Sectorial Surveys, Confidence Ind.
Sep-10
0,5%
4Q10
Nov-10
0,8%
1Q11
Jan-11
Mar-11
0,2%
2Q11
May-11
Jul-11
0,0%
-0,1%
3Q11
Sep-11
Nov-11
4Q11
Jan-12
Mar-12
0,2%
1Q12
-0,5%
2Q12
0,0%
-0,1%
3Q12
Headline inflation
Core inflation
May-12
Jul-12
Sep-12
2,10%
1,30%
4Q12
Nov-12
Jan-13
Mar-13
40
30
20
10
0
-10
-20
-30
9,0%
8,5%
8,0%
7,5%
7,0%
6,5%
Jan-10
Mar-10
Mar-10
May-10
Jul-10
Jun-10
Sep-10
Sep-10
Nov-10
Dec-10
7,4%
Jan-11
Mar-11
Mar-11
May-11
Jun-11
Jul-11
Sep-11
Nov-11
Sep-11
Dec-11
7,2%
Jan-12
Mar-12
Industry
Construction
Retail trade
Mar-12
May-12
Jul-12
Jun-12
Sep-12
Nov-12
Sep-12
Dec-12
8,1%
Jan-13
Mar-13
Consumers
Services
Mar-13
6

A lot changed in the last 12 months; but so far, regulation,
technology & market changes have only impacted mobile.
MTR regulation
Mobile market under pressure
Roaming regulation
New Telecom Law
Open competition: 45 MVNOs
Fixed to mobile predatory tariffs
Messaging apps cannibalizing
SMS, voice
Handsets subsidies
7

The start of transformation year 2013
Mobistar launched new
‘Animal’ tariff plans that
are even better adapted
to customer needs
Mobistar receives the
Top Employers
certificate in Belgium
for the second time.
Launch Personal Checkup
Telecom law
Mobistar starts selling iPhone 5
Launch of data focused
pre-paid offering
Animals Pro launch for entrepreneurs
Mobistar launched
segmented subscriptions
represented by Animals
Mar
Feb
Apr
Jan
May
Apr
Dec
Nov
Oct
Jun
Jul
Sep
Aug
Mobistar chooses
new creative agency
Mobistar revamped its residential
website. It is one of the most
visited sites in Belgium.
Mobistar boost its Animals
tariffs with more mobile data
IP VPN offer for the
professional market
4G pilot network
in Antwerp
Mobistar extends
the Full MVNO
with Telenet
More than 100,000 Mobistar
clients have already
benefited from a tariff
check-up
8

In 1Q13 Mobistar continued to deliver on its 4 strategic
priorities
Consolidate
Leadership in
Mobile
Differentiate
with services
everywhere
Deliver
Best in class
Customer Service
Lead
Industry
Efficiency
MMM = Mobile multimedia on handsets
Mobistar’s non-commercial 4G network named as “one of the
currently best performing LTE Networks in Europe”
MMM attach rate on Animal contract base increased to
+80%
Animal-tariff plans reaching 60% of residential postpaid
customers
Mobistar welcomed the recent evolutions of the regulator
with regard to the opening up of the cable infrastructure
Mobistar continued to invest in its services by proactively
resolving efficiently all call reasons
Mobistar was recognized as one of the most dedicated
Facebook brands in Belgium.
ACE 1 - Cost Avoidance: Well on track to reach 30Mio EUR in
gross savings in 2013
ACE 2 – Cost Reduction: Mobistar increased scope from
30Mio to 50Mio EUR in net savings as of 2014
9

Outlook 2013 confirmed, however with a mobile market that
has markedly become more competitive
Total Turnover
EBITDA
Operating cash flow **
Between
-4% and -6%
380 - 420 M EUR
175 - 215 M EUR
-1.6%
98.9 M EUR
67.5 M EUR
* FY12 EBITDA included EUR 17.5m reversal of provisions related to universal services and EUR 9.8m other income related to IRISnet
** Operating Cash Flow= EBITDA – Capex (excl. 4G spectrum cost)
2013
Guidance
3 months
2013
10

Operational Update
Market Dynamics
Customers, Price & Traffic Evolution
Mobile Data
B2B: M2M
Wholesale Business
11

The total market volume of MNP-movements is still high.
Q1 2013 showed a declining trend.
Mobistar customers (in k customers) *
Total Market Volumes Mobile Number Portability
• MNP movements in the market spiked in
October 2012 due to the new telecom law,
under which customers can switch over to
another operator after six months without
termination indemnity.
Jan-
12
Feb-
12
Mar-
12
Apr-
12
May-
12
Jun-
12
Jul-
12
MNP: mobile number portability allows mobile customers to keep their mobile numbers when they change operators. The donor operator deactivates the mobile number in its
information system; the recipient operator actives the same mobile number in its own
Aug-
12
Sep-
12
Oct-
12
Nov-
12
Dec-
12
Jan-
13
Feb-
13
Mar-
13
12

Mobistar’s total turnover continued to grow by 2% when excl.
regulation. Mobile re-pricing starts to bite into service revenues.
399,5
Q1 2012
-8,5
MTR
Mobistar group turnover evolution (In Mio EUR)
-6,5
Roaming
384,5
Q1 2012
excl
regulatory
impacts
-17,4
Service
Revenue
Belgium
0,8
Service
Revenue
Orange
Luxembourg
+2%
-2,0
Interco
Eliminations
7,0
MVNO
20,0
Handset
Sales
393,0
Q1 2013
13

Mobistar net adds in Q1 2013 remain positive thanks to MVNO.
Mobistar Mobile net adds loss has decreased in 1Q 2013
112%
17
36
-19
Q1 11
Market net adds split (k users)
and mobile penetration
112%
78
56
22
Q2 11
113%
162
120
42
114%
161
108
53
115%
71
86
-15
117%
203
148
55
Q3 11 Q4 11 Q1 12 Q2 12
Competition Net adds**
Mobistar Net adds*
Active Penetration**
114%
69
-433
-364
Q3 12
112%
118
55
-184
-66
Q4 12
(*) incl. MVNO customers, excl.: MATMA, Internet Everywhere and OLU
customers
(**) Source: Mobistar estimates based on Cy announcements and
Plan Bureau
42
Q1 13
Mobistar net adds split (k users)
Total Net Adds
36 22 44 53 -15 54 67 119 30
38
22
19
12
20
28
41
62
20
-5 -10
-25
-47
-18
-17
Q1 11 Q2 11 Q3 11 Q4 11
25
47
-18
Q1 12 Q2 12
Postpaid net adds
Prepaid net adds
MVNO net adds
13
80
-26
188
-41
-28
86
-26
-30
Q3 12 Q4 12 Q1 13
(*) incl . IEW, excl. MaTMa and Orange Luxembourg customers
14

Postpaid share as % of customer base increased in 1Q 2013
up to 68.6%.
MVNO
Mobistar customers (in k customers) *
66,3%
4.105
2011
Laptop cards
(*) incl. MVNO excl. OLU
Mobistar customers (in k customers)
67,0%
4.090
Q1 2012
Prepaid
68%
4.144
Q2 2012
Postpaid - BUS
68,1%
4.213
Q3 2012
Postpaid - RES
68,2%
4.321
Q4 2012
68,6%
4.350
3.516 3.517 3.525 3.513 3.432 3.376
Q1 2013
Postpaid % retail cust base
15

The Animals concept has proven its value & potential – 60%
of residential postpaid customers had chosen an ‘Animal’
Mobistar customers (in k customers) *
Offer split residential postpaid
Q4 2012 (EOP)
57%
Old tariff plans
43%
Animals
Q1 2013 (EOP)
60%
Old tariff plans
40%
Animals
• Animals represent Mobility Lifestyle with a clear focus on people
and based on customer behavior
• Segmentation is the answer to individual needs as we don’t
believe in ‘one size fits all’
• Our mobile tariffs are available at the best prices without any
obligation to purchase multi-product ‘packs’
16

Postpaid Animals 2.0 Portfolio (as of April)
Kangaroo
A lot of texts and calls to manage
your daily life
Dolphin
Bursts up and share with your
friends without ruining your budget
Panther
• Enjoy unlimited from your
smartphone and tablet
PPM 0.20
SMS 0.10
PPM 0.25
PPM 0.20
10€> 8€ 20€>16€ 60€> 48€
1H
to all networks 24/24
100 SMS
1H
to all networks 24/24
SMS unlimited
250 MB
& Facebook unlimited
4H
to all networks 24/24
500 SMS
2H30
to all networks 24/24
SMS unlimited
1 GB
& Facebook unlimited
Unlimited voice
to all networks 24/24
SMS unlimited
15€>12€ 20€>15€ 25€> 20€
3H30
to all networks 24/24
unlimited M* to M*
SMS unlimited
2GB
Mobile TV
5H30
to all networks 24/24
unlimited M* to M*
SMS unlimited
3GB
Mobile TV
2H30
to all networks 24/24
unlimited M* to M*
SMS illimités
1 GB
& Facebook illimité
35€> 28€ 45€> 36€ 75€> 60€
Unlimited voice
SMS unlimited
Surf unlimited *
Mobile TV
*Throtteling 5GB
17

Default TP
Prepaid Animals 1.0 Portfolio (as of April)
Squirrel
rechargeable card
Simple to reach.
Kangaroo
rechargeable card
A lot of texts and calls to
manage your daily life
Dolphin
rechargeable card
Bursts up and share with your
friends without ruining your
budget
PPM 0.25
SMS 0.12
Data Control
No reload within
the month
PPM 0.30
SMS 0.12
Data control
Reload within the
month
PPM 0.30
SMS 0.12
Data Control
Reload within the
month
Rechargez
10€ 15€
+10% call credit
valid 1 year
50 SMS
+
30min to all networks
24/24
1000 SMS
+
& Unlimited
Facebook
+15 % call credit
valid 1 year
10€ = 40 min (ou 83 sms) 15€ = 60 min (ou 125 sms)
250 SMS
+
1h to all networks
24/24
10€ = 33 min (ou 83 sms) 15€ = 50 min (ou 125 sms)
Unlimited SMS
+
150 MB
& Unlimited
Facebook
10€ = 33 min (ou 83 sms) 15€ = 50 min (ou 125 sms)
25€ & more
Unlimited voice
24/24 Mobistar
25€ et plus
+15 % call credit
valid 1 year
25€ = 100 min (ou 208 sms)
250 SMS
+
1h to all networks
24/24
25€ = 83 min (ou 208 sms)
Unlimited SMS
+
250 MB
& Unlimited
Facebook
18
25€ = 83 min (ou 208 sms)

Mobistar revised its service-oriented distribution remuneration
scheme to align with the volatile market
In a market with high volatility we anticipatively changed our distribution
remuneration scheme
ARPU
in
promo
ARPU
out of
promo
Customer gets promo for life
+
+
High Upfront, no airtime
Lower Upfront + airtime
We are also incentivizing
our distribution partners to
align themselves with our
customer focused
segmentation philosophy
19

Excluding regulation, the ARPU 1 continued to grow. Impact of repricing
is becoming more apparent in 12 month rolling ARPU.
29,5
Q4 2011
ARPU/month EUR
(incl. visitor ) roaming)
ARPU trend in Q4 2012
-0,8
MTR
decrease
-0,6
-2,6%
Roaming
regulation
-1,7
Price
2,4
Usage
28,7
Q4 2012
29,3
Q1 2012
ARPU/month EUR
(incl. visitor roaming)
-0,8
-0,6
-3,9%
MTR Roaming
decrease regulation
1 Average Revenue Per User (smoothed average of the previous 12 months), excluding MVNOs and M2M cards.
ARPU trend in Q1 2013
-2,1
Price
2,4
Usage
28,2
Q1 2013
20

Consumption increased Y-o-Y on all product lines:
Q1 Y-O-Y: Voice +4.8%, SMS +4.3% & Advanced Data +87.2%
400 14%
350
300
250
200
150
100
50
0
277
216
154
6
Q1 11
291
216
155
6
Q2 11
AUPU/month (in- & outgoing traffic)
+2% +21%
+1%
272
207
146
+66%
7
Q3 11
313
216
154
9
Q4 11
Voice
321
220
155
10
Q1 12
Mb per MBB user
327
203
156
10
+4%
302
+5%
207
147
+87%
12
338
276
155
18
Q2 12 Q3 12 Q4 12
MBB = Mobile Broadband
MMM = Mobile Multimedia
SMS Mb per MMM user
Mb = Data usage (per unique mobile multimedia user) * Number of unique MMM user/active ending base total market (MVNO excl.) mobile offers
335
268
162
18
Q1 13
21

In Q1 2013 Belgian Mobile Data Revenues reached 45.9% as a
percentage of mobile service revenues.
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
126
3%
27%
41%
70%
12%
Q1 2012
129
3%
29%
42%
68%
13%
Q2 2012
Mobile data uptake (in Mio EUR)
126
3%
29%
41%
68%
13%
Q3 2012
130
3%
29%
41%
68%
13%
Q4 2012
129
4%
30%
46%
66%
15%
Q1 2013
• Smartphone proliferation is
accelerating especially in postpaid
• Tablets with SIM have doubled in
12 month
• Mobile Multimedia AUPU increased
by 149% in one year time on active
user base
• Portion of mobile data increased
within integrated postpaid bundles
• Prepaid data usage still limited
MATMA
Mobile Data
SMS
Data as % mobile service rev
Advanced data as % mobile service rev
22

Mobile multimedia adoption in Belgium is accelerating. 59% of
persons that can, access mobile internet.
Data usage proliferation is increasing towards
23

Wholesale revenues positively impacted by increasing MVNO
customer base and traffic
+70%
619
572
8
Q1 2012
+88%
8
Q2 2012
694
10
Q3 2012
MVNO & wholesale related business
890
13
Q4 2012
MVNO cards (’000 cards)
MVNO Rev (Mio EUR)
(*) At the end of June 2011still 1/3 of the customers
where light MVNO customers
974
15
Q1 2013
Q1 2013 Highlights
MVNO
• Both Light (Lycamobile, Colruyt, Tellink,
Transatel) & Full (Telenet) MVNO Customer base
has increased y-o-y
• Numericable launched as a Light MVNO in 3Q12
• Y-o-Y MVNO revenue growth higher than MVNO
customer growth, due to increasing traffic
• VOO has not yet launched as MVNO
Carrier Services
Wholesale ADSL: Decrease versus last year due
to lower volume Euphony ADSL and KPN ADSL
(KPN Belgium signed a commercial agreement
with Belgacom)
Third party and partnership
• New "use cases" such as De Lijn tickets and
Facebook credit
24

The segment of machine-to-machine applications continues
to grow
M2M shows a steady increase in the number of activated cards
M2M Leader in Belgium
(70% of market share )
Orange Int’l M2M
• Total cumulated signed deals:
4.5 Mio sims
• We started major roll outs, a.o.
in Consumer Devices and
Health
“Cheaper, more powerful devices and
low cost mobile network connectivity
are driving an explosion in the
number of connected devices and
data generated by them”, Beecham
+27%
454
433
4
4
+21%
477
4
518
4
550
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
MVNO cards (’000 cards)
MVNO Rev (Mio EUR)
5
25

TOPICS IN THE SPOTLIGHT
Happy Customer
Spectrum & Coverage
Regulation
26

The Happy Customer vision translated into a concrete 2013
actions
Proactive +
Reactive
Customer rel.
Customer
Test center
Voice of
Customer
Mobistar Customer experience promise
Enhance
Customer
Service
standards
Customer Care
Service
Catalogue
Deliver
Multichannel
service
Mobistar centers
Call centers
WEB
CRM and
Expert
support
Client
Culture
within
Mobistar
NPS
27

Net Promoter Score (NPS): Customer satisfaction of today is
the EBITDA of tomorrow
Mobistar Customer experience promise
28

Voice of the Customer: Listen, Act, Improve
More than 40 processes improved
2012 2012
Increased First Call resolution to 93%
Customer Test Center
Over 50 offers/products adjustments
implemented in the last 6 months
29

Mobistar enhanced its Service standards
Stable & Accessible Customer Care
Written
requests
Calls
Easy access
Written
confirmation
Call back
option
2011
100 %
answered
within 30 days
•57% answered
within 20 sec.
•Call/Letter/Emai
l Shop
Today
•100 %
answered
within 5 days
•70 % answered
within 20 sec.
•Call/Letter/Email
/Shop/Social
•Confirmation
of each verbal
agreement
•Call back
option after 2.5
min for all calls
2012
+ 13 points NPS
Change for
Customer
•6x faster
answer
•25% less
waiting time
•More Customer
favorite
channels
•Clear
confirmation of
actions taken
No long waiting
times
for customers
Social Media:
increase of users & posts
Over 30.000 replies on social media
95% of Care related Facebook posts
are treated within 30-60 min.
95 % emails treated within 5 working
days, 80% treated within 3 working days
Mobistar is mentioned every
2 minutes and 16 seconds on the web
25% of negative posts
transformed into positive posts
30

Mobistar focused on delivering multi-channel services
Mystart : Expert assistance to get you
started with your new smartphone
Back-up: Customers data copied to
new device
Handset repair : shorten Turn Around
Time
Configuratie
Configuration
Mobistar Centers:
new Care Services
Back-up
Sauvegarde
2012
NPS + 36 pts.
Herstelling
Reparation
Webcare
2012
Improved customer satisfaction
31

Network related capex has increased 69% in Q1 2013 vs. the
similar period one year ago
Investments in mobile network are increasing
25
13
6,9%
6
Q1 2012
+25,4%
31
22
9,4%
6
Q1 2013
OLU
MES
Customer Equipment
Sales and real estate
Network
IT (legacy and renewal)
CAPEX (excl lic)/service rev.
32

Investments in Q1 2013 increased 26 % Y-o-Y. Radio deployments
are delivering significant improvement in 3G coverage.
End 2012
UMTS coverage evolution 2012-2013
End Q1 2013
End 2013
UMTS Indoor Coverage UMTS Outdoor Coverage GSM Outdoor Coverage
As network quality is key to Mobistar’s ‘SuperMobile’ strategy, Mobistar continues to invest significantly to enhance the
coverage, reliability and speed of its service. In terms of radio deployment Mobistar continued to deploy new sites, which
benefits customer experience in terms of voice & data usage. Mobistar also continued the activation of very important 3G
features, leading to a significant improvement in indoor and outdoor coverage in the more rural areas (UMTS in the 900
Mhz-frequency) and an increase of our throughput and capacity (3G Dual Carrier)
33

Mobistar continued to refresh its radio access network, resulting
in >70 % of the 2G network being swapped into 2G/3G
Q1-
2013
Situation end 2012
Q3-
2013
Q2-
2013
2011
-
2012
Situation end Q1 2013
Mobistar is replacing its Nortel 2G equipment with more modern and higher-performance Huawei equipment. Total
investment for this upgrade project at 36Mio euro between 2011-2013. This upgrade will progressively improve its “Deep
Indoor” coverage and reduce the energy consumption of its antennas by fifty 50%. Thanks to this upgrade, the Mobistar
network will already be prepared for the coming of 4G technology
Q1-
2013
Swap Done Swap Done
Q3-
2013 Q2-
2013
2011-
2012
34

Mobistar continued to improve its transmission network by upgrading
it with high speed network lines, either microwave or fiber
Upgrade of transmission network
• Investments in
microwave or fiber,
will allow Mobistar
to reduce its future
opex cost linked to
leased lines.
• Investments in
microwave or fiber,
will allow Mobistar
to further improve
the quality of its
backhauling with
high speed network
lines
35

With the 4G pilot in the city of Antwerp, Mobistar is testing instant
internet in real life condition
interactive services
ALWAYS-ON
Web browsing, HTML5,
gaming, maps, cloud &
other applications...
lower latency and
connection time
streaming services
HD
TV, video, audio
streaming
OTT conversational
services
Real life pilot with 500 users
Guaranteed Bit Rate
available
Videoconference, VoIP, ...
lower latency + more
bandwidth for richer
services
file transfer
services
Upload, download (apps,
emails with attachments,
etc.), cloud storage ...
100 mbps / Special
discounts for high
volume/low priority traffic
36

Mobistar is paving the way for 4G in Belgium
Developing 4G Eco-system
Apple only enables 4G access after testing
their device on an operator’s live network.
Samsung, one of the two main 4G device suppliers
in the world, says Mobistar’s 4G network is “one of
the currently best performing LTE Networks in
Europe”.
37

Initial 4G Pilot results: Customer experience highlights that 4G is
as fast as fixed internet
Question: When you compare the speed of the 4G/LTE-network with the fixed
Internet connection that you use, can you give the speed difference you have
experienced when using that specific service?
Source : MI – 4G Antwerp survey – n=75
In general 3 out of
4 users say that 4G
is at least as fast as
their fixed
connection.
38

Mobistar’s spectrum portfolio is well diversified to service the
increasing market demand
Mobistar has already secured close to 2 x 70 MHz till 2015
800 MHz
900 MHz*
1800 MHz*
2100 MHz*
2600 MHz
10
10 10
10 6 6 6
Current spectrum allocation (MHz duplex)
Auction 800 MHz scheduled for 4Q13
20.8 20.8 22
…
15 15 14.8 15
20 15
…
6
1
* 900, 1800 and 2100 MHz technologically neutral
** Telenet/Tecteo acquired in June 2011 14.8MHz in the 2,100 MHz band for EUR 71.5m. In addition it exercised its option to acquire and
potentially roll-out a 4,8 MHz duplex in 900 MHz and 10 MHz duplex in 1800 MHz band as from Nov 2015 for a consideration of EUR 31.5m.
2033
1X45
Telenet/Tecteo
27/11/2015 10 10 10 4.8**
Prolongation for 5 years at EUR 15m per year, in line with the
initial price paid of EUR 225m for 15 years)
20
Mobistar
Proximus
KPN Belgium
BUCD
27/11/2015 + 10**
2021
Up until now Telenet is not using its spectrum
15 March 2021
2026
39
2021

800Mhz Spectrum – Synthesis Royal Draft Decree
Subject: The 790-862MHz band (“800MHz band”) comprises 2×30MHz of available
spectrum auction in three blocks of 2×10MHz channels.
Timing Publication of the Royal Decree is expected around May-June, which then
implies that the auction can be expected in Q4 2013.
License duration: 20 years from notification of granting
Reserve Price: 25,000 euros per MHz per month (equivalent to EUR 120m for a block of
10 MHz duplex for a period of 20 years, i.e. EUR 0.4 per MHz per pop.
Annual spectrum usage fees: Around EUR 2.1m per annum
Payment of fee Option of paying the full fee upfront or paying an equal amount on an
annual basis throughout the license duration, with an interest rate equal to
the market rate +2%
Coverage obligations Population coverage target of 33% within 2 year, 70% within 4 years and
98% within 6 years
Spectrum reservation No spectrum reserved for new market entrants
40

29%
The regulated revenue base has decreased to 25 % of the
mobile turnover, excluding MTR SMS to only 9 %
1.443
56%
3%
11%
1%
7%
2%
7%
12%
2011
346
59%
2%
12%
4%
2%
5%
1%
15%
Q1 2012
Mobile turnover split (% of revenues)
1.445
54%
3% 4%
14%
1%
6%
2%
5%
15%
2012
3%
343
53%
18%
1%
3% 2%
16%
Q1 2013
Retail billed revenues
MVNO
Handsets
Roaming SMS
Roaming voice
Visitor Roaming
MTR Voice
MTR SMS
Strong handsets sales continued in 1Q13 driven by a
higher portion of high-end smartphones in the mix
MTR and roaming revenues impacted by regulation.
Decreased from 12 % of mobile turnover in Q1 2012 to
only 9 % in 1Q13.
Increase due to success of SMS abundance offers.
Currently not subjected to regulation. EBITDA
contribution limited due to operator reciprocity in SMS
41

Regulation – MTR - Belgium
9,02
Base
Mobistar
5,05
1/1/11
Proximus
2010-2013 MTR glide path
4,29
-87%
1/1/12
2,79
-57%
1/1/13
Final cut in MTR rate according to regulated glide path 2010-2013
+
Final correction towards asymmetric MTRs
MTR EUR m FY12 Q1 2013 FY13
Revenue 29.6 8.5 33.5
EBITDA 12.6 3.8 14.9
1,19
End of Current
Glide Path
EU recommendation envisions 1€cent MTRs without asymmetry as of mid 2013 to its member states. Luxembourg regulator is working
on market analysis & remedies.
42

Regulation – Roaming
Retail Price Caps (EURcent/min, Excl. VAT)
35
11
2011-2015 Roaming glide path
29
70
9
7/11 7/12
7/13
7/14
7/15
Wholesale tariffs (EURcent/min, Excl. VAT)
50
18
4
7/11 7/12
25
14
3
-36%
15
2
Roaming EUR m FY12 Q1 2013 FY13
Belgium Revenue 28.9 6.5 23.1
8
10
24
45
7/13 7/14
7/15
EBITDA 19.9 5.2 16.8
For Luxembourg 2013 impact on revenue and EBITDA is estimated at respectively 3.1Mio and 1.5Mio euro
5
20
2
5
5
Data (per MB)
Voice-calls made (per minute)
Voice-calls made (per minute)
SMS (per SMS)
19
Data (per MB)
Voice (per minute)
SMS (per SMS)
43

Regulation – Cable Opening – Next Steps
Consultation on wholesale pricing ongoing
Current status Regulatory Calendar
Draft reference
offers
published for
comments in
November
2012
Formal
reference
offers
submitted for
consultation in
December
2012
5/2/2013 : End
of the
consultation on
the reference
offers.
Q2/2013 :
consultation
ongoing on
pricing of the
cable offers
+/- Q3/2013 : Final
reference offers
published
In the
course of
H1 2014:
Implementation
by Cable
operators
In the
course of
2014 :
outcome
of appeal
on the
merits
44

Both regulator and government have the ambition to increase
competition in the Belgian fixed market
Draft decision of 28 March 2013 regarding
the impact of FTTH deployment
At the request of Vice Prime Minister Johan
Vande Lanotte, BIPT carried out a comparative
study of the prices for telecom products in
Belgium and our neighbouring countries.
Draft decision of the BIPT Council regarding wholesale
tariffs for access services to cable networks in the
bilingual Brussels-Capital Region
45

FINANCIAL
PERFORMANCE
46

The impact of regulation, the repricing effect on the backbook
and the lower mobile customer has hit Q1 2013 results
Consolidated income statement
in Mio EUR Q1 2012 H1 2012 H2 2012 FY12 Q1 2013 Y-o-Y
Total Turnover 399.5 802.5 848.0 1,650.5 393.1 -1.6%
Total Service Revenues 358.4 721.7 728.3 1,450.0 332.0 -7.4%
Direct Margin 218.7 444.8 447.4 892.2 207.3 -5.2%
In % of service revenues 61.0% 61.6% 61.4% 61.5% 62.4% 1.42 pt
EBITDA 113.1 249.7 244.4 494.1 98.8 -12.6%
In % of service revenues 31.6% 34.6% 33.6% 34.1% 29.8% -1.79 pt
Depreciations and amortizations -52.5 -102.0 -115.2 -217.2 -43.1 -17.8%
EBIT 60.6 147.7 129.2 276.9 55.7 -8.1%
In % of service revenues 16.9% 20.5% 17.7% 19.1% 16.8% -0.13 pt
Net finance income -2.5 -5.9 -4.9 -10.8 -1.5 -38.7%
Tax expense -19.9 -48.9 -31.6 -80.5 -19.0 -4.7%
Net Profit 38.2 93.0 92.7 185.7 35.2 -7.9%
Diluted earnings per share (in €) 0.64 1.55 1.55 3.09 0.59 -8.4%
47

Balance sheet remains strong.
2012 dividend of EUR 1.80 will be paid on May 24, 2013.
Balance Sheet
in Mio EUR Q1 2012 H1 2012 H2 2012 FY12 Q1 2013
Non-current assets 1,042 1,032 1,046 1,046 1,033
Other Current assets 299 315 289 289 290
Cash and cash equivalents 7 7 12 12 8
TOTAL ASSETS 1,349 1,354 1,347 1,347 1,331
Share capital 132 132 132 132 132
Legal reserve 13 13 13 13 13
Retained earnings 287 120 213 213 248
Long-term borrowings 278 413 384 384 384
Long-term trade payables 28 28 13 13 13
Long-term provisions 61 64 67 67 68
Deferred taxes 1 0 0 0 0
Short-term borrowings 4 2 23 23 19
Current taxes payables 94 111 43 43 68
Trade payables 327 301 345 345 286
Other payables 123 170 115 115 101
TOTAL EQUITY AND LIABILITIES 1,349 1,354 1,347 1,347 1,331
Net Debt / (Net Cash) 275.5 409.2 394.0 394.0 394.6
Net Debt / EBITDA 0.5x 0.8x 0.8x 0.8x 0.8x
48

Despite declining EBITDA Mobistar continues to invest
Detailed cash flow analysis
in Mio EUR Q1 2012 H1 2012 H2 2012 FY12 Q1 2013
EBITDA 113.1 249.7 244.4 494.1 98.7
Financial result -2.5 -5.9 -4.8 -10.7 -1.5
Other Non cash items 1.3 4.5 10.4 14.9 1.3
Change in working capital 15.3 -14.5 -18.3 -32.8 -30.0
Accrued Financial Interests / Expenses 0.0 -0.6 1.5 0.9 -0.4
Tax paid -51.0 -66.0 -88.9 -154.9 0.0
Net cash from operating activities 76.1 167.2 144.3 311.5 68.0
Purchase of intangible and tangible assets -24.8 -62.6 -125.9 -188.5 -31.2
Debt associated to purchase of assets -22.9 -23.1 31.1 8.0 -36.7
Proceeds from sale of equipment 0.5 0.0 2.2 2.2 0.0
Net cash used in investing activities -47.2 -85.7 -92.6 -178.3 -67.9
Organic Cash Flow 28.9 81.5 51.7 133.2 0.1
Partner financing activities 0.0 0.7 1.3 2.0 -0.3
Acquisition of subsidiary, net cash acquired 0.0 0.0 -3.4 -3.4 0.0
Flows from long-term borrowings -14.9 107.1 -16.6 90.5 0.1
Short-term loan subsidiaries -14.1 -16.0 20.1 4.1 -4.0
Others 0.7 0.4 0.7 1.1 -0.4
Free cash flow before dividend payments
0.6 173.7 53.8 227.5 -4.5
and capital movements
Dividend payments -0.1 -174.3 -48.2 -222.5 0.0
Equity transactions costs 0.0 0.2 -0.1 0.1 0.0
Available Cash Flow 0.5 -0.4 5.5 5.1 -4.5
49

800Mhz Spectrum – Synthesis Royal Draft Decree
SUPER MOBILE
PLAN
2013-2015
50

Regulation, technology changes and market evolution are now
impacting family services too, opening a new cycle in our industry
2012 2015
After many years of continuous organic growth in a competitive market,
Mobistar wants to be ready to take advantage of a new industry cycle
51

At the beginning of 2013 Mobistar presented its SuperMobile
2013-2015 strategy
52

Mobistar is best positioned to capitalize on new social
behaviors and deliver the personal services of the future
Social behaviors evolution
People are connected anytime
People use personal devices at work
People use social networks at work
People work at home
People travel at least 1 a week
People value web more than TV
individual behaviors
= mobile lifestyles
Mobistar strong positioning
Mobility
Simplicity
People-centric
Value for money
53

Your personal services anywhere with friends, @home, @work
– Mobistar’ Super Mobile strategy is driven by 4 priorities:
Consolidate
Leadership in
Mobile
Differentiate
with services
everywhere
Deliver
Best in class
Customer Service
Lead
Industry
Efficiency
Mobile VHBB
Voice and Data
Abundance
“À la carte” vs.
“All you can eat”
convergence
A new deal with
Customers
(shops, web)
Cost savings
and Processes
Optimization
Boost 3G and accelerate 4G
Abundant offers for all segments
B2C: cloud and cable services
Cable-regulated offers
Best loved Telco in Belgium
Service at core of our channels
ACE 1: cost savings
ACE 2: processes redesign
54

Consolidate Leadership in Mobile: extend mobile leadership to
4G Broadband and offer Abundance to all segments
Boost 3G and accelerate 4G
500 4G users in Antwerp and
Luxembourg end 2012
65% 3G indoor coverage end 2013
65% 3G+ indoor coverage end 2014
80% 4G indoor coverage end 2015
150 M€ investment in 3 years for 4G
+ acquisition of 800 MHz spectrum
Abundant offers for all segments
Animals = 43% post-paid end 2012
Data = 41% mobile service revenues
“Unlimited” plan for every segment
Shared data bundles
Low price “white label” offer
Dedicated support to MVNOs
2015 2015
Best 4G network in Belgium
#1 in B2C postpaid customers
55

Differentiate with Services Everywhere: develop services in the
cloud for B2C and B2B and prepare future regulated cable offers
B2C: cloud and cable services
Fixed as an optional commodity to
access cloud and OTT services:
+
-x€
“A la carte” cloud services for tablets
and connected TV; OTT TV first:
B2B: 3.0 mobile connectivity
Mobistar B2B mobile lines: +4% YoY
Smartphones and tablets, new core of
digital activity: MDM, MEAP, BYOD…:
Strategic partnerships to enable
mobile connectivity of employees and
machines: FeenHenry, 160 M2M
partners, Mobistar Business Agents…
2015 2015
#1 provider of regulated cable #1 vendor of 3.0 mobile connectivity
56

Deliver Best in class Customer Service: a new deal with our
Customers and a focus on service in every touch point with them
Best loved Telco in Belgium
“Happy Customer” focus on 1st time
resolution & accessibility boost NPS:
+35 in shops, + 13 in call centers
Customer Test Center to challenge
customer experience of new offers
Customer loyalty reward program
Check up of customers
plans every 6 months:
Handsets expertise for B2C and B2B:
Service at core of our channels
A new operating model for our
Mobistar Centers:
1 st Telco's website, used by 41% of
our customers (3 M Unique Visitors)
Most popular Telco on social medias
1st 1 service channel amongst
Telco's
st 2015 2015
Best Telco Customer Experience
service channel amongst
Telco's
57

Lead Industry Efficiency: ACE* program to redesign our cost
structure and revisit our core processes to prepare our future
Tactical ACE 1: cost savings
Launched in June 2012: continuation
of the 2009-2011 Odyssey program
28 M€ cost savings delivered in 2012
Initiatives covered:
General expenses
Transmission optimization
Publishing rationalization:
E-Billing and online sales
Customer care efficiency
2013
30 M€ cost savings
Strategic ACE 2: processes redesign
Launched in Nov. 2012: in-depth
analysis of our operational model
1 st impacts expected in 2014
Initiatives covered:
Go-to-market process
Distribution adaptation
Review of offers portfolio
Alternative network deployment
Network maintenance
2014 - …
Target increased to -50 M€ cut on
yearly cost structure as of 2014
58
*ACE = Agility - Cost - Execution 58

Super Mobile aggressive investment plan implies a new
sustainable dividend policy: proposed 2012 dividend is €1.80
Cash flow based
Former 2005-2011 Dividend Policy was based upon:
retained earnings
important investment projects
Guidance on the consolidated net result Mobistar s.a. was used by the market
as a proxy guidance for dividend flows.
SuperMobile 2013-2015 programme triggers :
ambitious investments
fair and sustainable shareholder remuneration
strong balance sheet
2012
The Board of Directors proposes the distribution of an ordinary
dividend of €1.80 / share to be approved by the AGM 2015 of May 2, 2013
59

Outlook 2013 confirmed, however with a mobile
market that has markedly become more competitive
Total Turnover
EBITDA
Operating cash flow **
Between
-4% and -6%
380 - 420 M EUR
175 - 215 M EUR
-1.6%
98.9 M EUR
67.5 M EUR
* FY12 EBITDA included EUR 17.5m reversal of provisions related to universal services and EUR 9.8m other income related to IRISnet
** Operating Cash Flow= EBITDA – Capex (excl. 4G spectrum cost)
2013
Guidance
3 months
2013
60

Q1 2013 Analyst & Investor Call – Word Cloud
61

Shareholder Structure
Main shareholders located in
France, US, UK and Benelux
Mainly Value & Yield Investors
ISIN: BE0003735496
Share capital: EUR 109.2m
Market Capitalization: EUR 1,185bn
Number of voting rights: 60,014,414
Total turnover 2012 EUR 1,15bn
Daily avg. turnover 2012: EUR 4,48m
Free float: 47.09%
Velocity 2012: 70.01%
Free float velocity 2012: 140.01%
Total traded # of shares in 2012 42,013,880
Daily avg. traded volume 2012: 164k
Notification thresholds: 3%, 5% & multiples of 5%
Contact for the transparency declarations: Anske De Porre -
adporre@mail.mobistar.be

Corporate Social Responsibility
• Strategy
Reinforcement of CSR Governance (CSR committee,
force)
1 sponsor, 1 manager, Task
Launch Stakeholders’ Dialogue
Structure Reporting
Launch regional certification (eco-dynamic enterprise label from Brussels Region)
• 4 pillars
Employees
Customers
Society
Environment
63

FY13 Results Calendar
DATE EVENT
2 May 2013 General Meeting of Shareholders (11:00 am)
2 May 2013 Proposed dividend up for approval of the AGM
24 May 2013 Dividend payment if approved by the AGM of May 2
23 July 2013 Financial results H1 2013 (7:00 am) – Press release
23 July 2013 Financial results H1 2013 – Conference call
21 October 2013 Financial results Q3 2013 (7:00 am) – Press release
21 October 2013 Financial results Q3 2013 - Conference call
64

FY13 Results Calendar
DATE LOCATION BROKER ROADSHOW / CONF.
30 April London Petercam Management Roadshow
7 May Paris HSBC Management Roadshow
23 May Brussels Analyst & Investor Day
28 May Geneva KBC Management Roadshow
29 May Amsterdam ABN AMRO Equities Conference
4-5 June NY ING Benelux Day
11-12 June Nordics TBC Management Roadshow
65

Q&A
66

For further questions please contact IR
department
Investor Relations
Siddy Jobe
Email: Siddy.Jobe@mail.mobistar.be
http://corporate.mobistar.be/go/en/financial_information.cfm
Visit our websites:
• www.mobistar.be
• http://business.mobistar.be
• http://corporate.mobistar.be
67