Mobistar First quarter 2015 results Analysts & Investors - - PowerPoint PPT Presentation

Mobistar - Financial results Q1 2015

Analysts & Investors Presentation

Mobistar First quarter 2015 results

Mobistar - Financial results Q1 2015

This presentation contains forward-looking statements about Mobistar, in particular for 2015. 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

• thers, the impact of the price adjustments on the customer base resulting from

the competitive pressure, the evolution of the customer base, the economic situation in Belgium, the effectiveness of Mobistar convergent strategy including the success and market acceptance of the voice and data abundance plans, the Mobistar TV and broadband offers, the Mobistar brand and other strategic,

• perating 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.

2

Mobistar - Financial results Q1 2015

a leading telecom operator

Mobistar is one of the leading telecom operators of the Belgian and Luxembourg markets Mobistar is one of the leading telecom operators of the Belgian and Luxembourg markets Mobistar is one of the leading telecom operators of the Belgian and Luxembourg markets Mobistar is one of the leading telecom operators of the Belgian and Luxembourg markets

Jean Marc Harion Jean Marc Harion Jean Marc Harion Jean Marc Harion Chief Executive Officer Ludovic Pech Ludovic Pech Ludovic Pech Ludovic Pech Chief Financial Officer Siddy Jobe Siddy Jobe Siddy Jobe Siddy Jobe Director Investor Relations & Corporate Finance

Mobistar Management Mobistar Management Mobistar Management Mobistar Management

3

Mobistar - Financial results Q1 2015

“focus on value management”

Jean Jean Jean Jean-

• Marc

Marc Marc Marc Harion Harion Harion Harion, , , , Chief Executive Officer

Mobistar - Financial results Q1 2015

key achievements in Q12015

Cable regulation activation

Concept store Antwerp

Mobiline Mobifleet pilot pilot pilot pilot

4G@BXL

5

Q1 2015 FY 2014

Loyalty Cinema tickets Official provider 4G anniversary

Mobistar - Financial results Q1 2015

• 4G postpaid customer base growth 19% vs 4Q14
• #1 in 4G: 92% outdoor coverage
• #1 in 4G: ~600 000 customers
• #1 in NPS Telco Customer Service
• Postpaid ARPU grew by 3.8% yoy
• Restated EBITDA +5.6% yoy & +12.4% excl. reg.
• Full year guidance confirmed
• ur main business achievements in Q1 2015

6

Mobistar - Financial results Q1 2015

• Taking control of distribution with own channels
• Digitalization of end-to-end customer experience
• IT outsourcing to gain cost efficiency
• Best Tariffs, price transparency, best devices
• Improved customers trust and loyalty
• Stable Postpaid customers base
• Pave the way for future cable market entrance
• Prepare convergent offers for SME market
• ur main transformation Q1 2015 achievements

7

Mobistar - Financial results Q1 2015

achievements

Mobistar - Financial results Q1 2015

• ur 5 strategic priorities for 2015 – 2020:

Leadership in Mobile Best 4G network in Belgium N° 1 in network share Pioneer in Disruptive Convergence N° 1 convergent challenger on the consumer market N° 1 convergent challenger on the enterprise market Best Customer Experience Best Telco customer experience N° 1 NPS in all customer touch points Best Industry Efficiency Best in class Telco in outsourcing model Self finance innovation thanks to efficiency gains Team Member’s Engagement Create a digital and open working environment Best in Class in offering career opportunities

Mobistar - Financial results Q1 2015 99% coverage in Brussels in May and pilot in Mechelen

undisputed largest 4G coverage

€20m network investments in Q1 to support extension at fast pace

Leadership in Mobile

Mobistar 4G network coverage evolution (800 + 1800 MHz, focus on in-door )

Official launch in March: 230 cities with >50% coverage

10

Mobistar - Financial results Q1 2015

Mobistar operates the largest network

Belgium Brussels

• % pop outdoor:
• % pop indoor: 86%

86% 86% 86%

• % pop outdoor:
• % pop indoor: 72 %

72 % 72 % 72 %

(source : Mobistar, Mar 2015) (source : Mobistar, Mar 2015) 11

Situation on 27/03/ 2015

% pop outdoor 99.8%

99.8% 99.8% 99.8%

(source: Proximus Website 27.03.15)

% indoor: 74% 74% 74% 74%

(source: estimate based on Px drive tests)

56% 56% 56% 56% of Brussels pop covered

(source: Base web 13.05.14)

% pop outdoor : 83% 83% 83% 83%

(source: Base web 27.3) % pop indoor : 62%

62% 62% 62%

(source : indoor estimate )

% pop outdoor : 86.1% 86.1% 86.1% 86.1%

(source: Proximus website 27.3)

% indoor: 64% 64% 64% 64%

(source: estimate based on Px drive tests)

Status 31/10/ 2014

#1 #1 #1 #1 #1 #1 #1 #1

Mobistar - Financial results Q1 2015

Leadership in Mobile

#1

Outdoor coverage 92% *

#1

Indoor coverage 72% *

17.7Mbps

Average download speed **

14 Mbps

Average upload speed **

Mobistar leader in 4G coverage

Source 1: * Population coverage based on sites on air end of Q1 2015 Source 2: ** Commsquare, January 2015

12

Mobistar - Financial results Q1 2015

Mobistar leader in 3G coverage and in Voice performance

Leadership in Mobile

3G/2G

#1

Voice calls completed **

3G

#1=

Outdoor coverage 99% *

#1

Indoor coverage 92% *

9.1 Mbps

Average download speed **

2.5 Mbps

Average upload speed **

HD Voice

Only operator in Belgium **

Source 1: * Population coverage based on sites on air end of 2014 Source 2: ** Commsquare, January 2015

13

Mobistar - Financial results Q1 2015

facilitating 4G access for our customers

from network and plans to devices and services most attractive 4G tariff plans

devices

richest devices portfolio

services & financing

14

Leadership in Mobile

tariffs network

largest 3G and 4G coverage best services

Mobistar - Financial results Q1 2015

749 798 833 874 740 7.500 7.000 6.500 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 Q4 2014 71,3% 111 1.557 96 Q3 2014 70,7% 109 1.552 99 Q2 2014 71,1% 109 1.509 101 Q1 2014 70,5% 111 1.311 103 Q1 2015 96 1.710 111 71,6% Mobistar Postpaid % retail cust base Postpaid Prepaid Matma Laptop cards MVNO OLU

3,840

Belgium,

• incl. MVNO

5,150

3,836

5,345 5,472

3,892

5,444

3,915

15

Leadership in Mobile

Stable customer base evolution in Belgium

5.5 million SIM connected cards

5,472

3,762

Mobistar - Financial results Q1 2015

4G customers base is growing fast

growing customer appetite for 4G services

Leadership in Mobile

Active 4G Mobistar users share of total subscribers base

Potential target: > 3m 4G users

X 4 X 4 X 4 X 4 X 2 X 2 X 2 X 2

Average data traffic per technology

Total customers Mobile data customers 4G custo mers

16

100 000 200 000 300 000 400 000 500 000 600 000 700 000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Mobistar Actives 4G users (excl. MVNO & Matma)

8 % 11 % 16 %

~ 600k Mobistar 4G customers

19 %

Mobistar - Financial results Q1 2015

17

Mobistar prepaid & postpaid customers base excl. M2M & MVNO

4G experience catalyzing data growth

data usage x2.5 in 1 year

Data usage per active Mobistar customer in March 2015

Leadership in Mobile

Mobistar - Financial results Q1 2015

4G represents 40% of total data consumption

1 out of every 5 Mobistar customers uses 4G

18

Mobistar prepaid & postpaid customers base excl. M2M & MVNO

Mobile data consumption per technology and per customers

4G

~600k (~20%) #customers

Leadership in Mobile

40% 60%

Mobistar - Financial results Q1 2015

4G usage driving Mobistar ARPU Growth

mobile data monetization thanks to personalized usage control

• Thanks to a high focus on value

value value value management management management management, improved customer customer customer customer loyalty loyalty loyalty loyalty and data usage data usage data usage data usage development. development. development. development.

• MyMobistar

MyMobistar MyMobistar MyMobistar app help customers control their data consumption.

• Personal Check

Personal Check Personal Check Personal Check-

• Up

Up Up Up proprietary solution help customers proactively help customers proactively help customers proactively help customers proactively select the best bundle select the best bundle select the best bundle select the best bundle to fit with their needs.

• Both drive customer mix from

data top data top data top data top-

• up to richer data bundles

up to richer data bundles up to richer data bundles up to richer data bundles

19

Blended ARPU increase YoY in Q1 2015: 2nd quarter in a row MyMobistar and Personal Check Up help customers adapt their data plans to usage

Leadership in Mobile

23.9 24.3 23.9 23.9 23.4 24.0 24.9 25.6 26.0 22 23 24 25 26 Q3 2013 Q2 2014 Q4 2013 Q2 2013 Q1 2015 Q3 2014 Q1 2013 Q1 2014 Q4 2014

+2.0 %

Mobistar - Financial results Q1 2015

20

Leadership in Mobile

EU28 roaming traffic doubled in one year

boosted by 4G, attractive plans and smartphones penetration Countries covered with Mobistar 4G roaming agreements Mobistar 4G international roaming traffic evolution in EU 28

> > > > 95% 95% 95% 95% of Mobistar customers data roaming usage

Mobistar - Financial results Q1 2015

21

• pening the cable market for competition

toward phased launch of Mobistar cable offers in 2015

• Internal users’ test:
• 80% would recommend the service
• External users’ test:
• Charleroi first, extended to other cities
• 1st Mobistar customers activated in

January

• pre-registration open
• Phased commercial launch in 2015:
• nce retail minus mechanism

calculation clarified by regulators

Ultra- fast Internet Digital TV

+

Pioneer in Disruptive Convergence

Mobistar - Financial results Q1 2015

Retail price IT

22

VAT

Fixed line Content Non regulated services Retail Minus (23%)

Internet + TV whole sale price

Decoder Modem 2nd screen Wifi Promo

Cable wholesale price – current estimation Retail Minus (23%) Cable wholesale price – final Regulation application

retail Minus to be applied within Regulation

key condition to allow effective competition

Pioneer in Disruptive Convergence

Mobistar - Financial results Q1 2015

#2

Shape & Fix Telephony Best Mobile Network Mobile Voice for all Mobile Data for all

Applications Tablets MDM

23

Shape: a new portfolio for B2B customers

abundance “for all”, per company seat

Pioneer in Disruptive Convergence

Mobistar - Financial results Q1 2015

Facebook and Twitter unlimited for the Dolphin 12/15/20

unrivalled services & advantages for our customers

Smartphone repair: Service available in Mobistar’s stores, 70 %

• f the units can be repaired on-site. For the rest, customers will

receive a quality device as temporarily replacement. My swap: option that guarantees your 4G smartphone will be bought back by up to 50% of its purchase price within 2 years. 3 million users: Unlimited communication with 3 million Mobistar users with a Dolphin 15 and higher bundles.

Best Customer Experience

Mobistar - Financial results Q1 2015

Offer the best customer experience

• n the market

#3

25

Best Customer Experience

“Have A Nice Day”

Mobistar new loyalty program, launched in April 2014 Surprise and delight our customers with exclusive gifts Exclusive “HAND” operations in Q1 2015, amongst which 1 major concert

Mobistar - Financial results Q1 2015

Best Customer Experience

• Concept Stores Antwerp, Liège… & Brussels
• 95 shops refitted
• 90% 3rd party partner contracts renegotiated
• Launched in October 2014
• Mobistar Products & Services
• Portfolio extended to energy, security
• ‘Shops in shop’ in 25 MediaMarkt stores
• ‘Shops in shop’ in 35 Carrefour Hypers

distribution channels transformation complete

focused on service and improved customer journey

26

Mobistar - Financial results Q1 2015

2015: End-to-end focus on transversal non-quality

Best Industry Efficiency

Doing together: Transversal Non Quality chasing

Doing Better: Vertical Transformation

Doing less & cheaper

2015

2014

2013

27

Mobistar - Financial results Q1 2015

financial review Q1 2015

Ludovic Ludovic Ludovic Ludovic Pech Pech Pech Pech, , , , Chief Financial Officer

Mobistar - Financial results Q1 2015

(a) see below for EBITDA restatements

key financials

cost transformation mitigating top line erosion

29

in €m Q1 2015 Q1 2014 Var. Comments

Service Service Service Service revenues revenues revenues revenues

270.3 278.1

• 2.8 %
• Extends the improving trend quarter after

quarter

• Excluding the regulatory impact (€6.1m),

revenues almost stabilized (-0.6%)

Consolidated turnover Consolidated turnover Consolidated turnover Consolidated turnover

303.4 317.0

• 4.3 %
• Excluding regulatory impact, decline would

have been 2.9 %.

• Decrease attributable to regulation, handset

sales and fixed legacy business

Restated EBITDA Restated EBITDA Restated EBITDA Restated EBITDA (a)

69.9 66.1

+5.6 %

• Mobistar’s restated EBITDA increased for the

first time in 15 quarters.

• Excluding the regulatory impact the restated

EBITDA would have increased by 13 %.

(in % of service revenues) 25.8 % 23.8 %

EBITDA EBITDA EBITDA EBITDA

68.8 64.5

+6.8 % (in % of service revenues) 25.5 % 23.2 %

CAPEX CAPEX CAPEX CAPEX

26.8 37.4

• 28.4 %
• Mobistar continued stepping up investments in

its mobile network, in particular in the roll out

• f 4G, with a clear focus on the best blend of

technologies to offer enhanced mobile voice and data user experience for mobile users in Belgium

(in % of revenues) 9.9 % 13.5 %

Operating cash flow Operating cash flow Operating cash flow Operating cash flow

42.1 27.1

+55.3 %

• Reflecting EBITDA improvement and

annualisation of 4G investment peak in Q1 2014

(EBITDA - CAPEX)

Mobistar - Financial results Q1 2015

regulatory impact

progressively fading out with EU roaming left in 2015

30

Revenues impact EBITDA impact

29 26 26 60 30 34 11 12 15 FY15e 14 Q1 2015 FY14 38 FY13 60 FY12 59 FY11 74 6 5 1 MTR EU Roaming 20 19 19 9 13 15 7 38 34 33 38 10 25 4 4

€ € € €230m impact in FY14 compared to FY10 230m impact in FY14 compared to FY10 230m impact in FY14 compared to FY10 230m impact in FY14 compared to FY10 € € € €130m impact in FY14 compared to FY10 130m impact in FY14 compared to FY10 130m impact in FY14 compared to FY10 130m impact in FY14 compared to FY10

Mobistar - Financial results Q1 2015

consolidated turnover

Mobile service revenues excluding regulatory impact grew in Q1 2015

consolidated revenues year-on-year evolution (in %)

31

Cb: Comparable basis

1.5

• 5.8

303.4 Q1 2015

• 7

7 7 7 ( ( ( (-

• 2%

2% 2% 2%) ) ) ) Handset Sales service revenues (non-mobile)

• 3.1

service revenues (OLU) service revenues (mobile) Q1 2014 excl. regulation 310.8

• 6.1

Regulation Q1 2014 317.0

• 0.1

Mobistar - Financial results Q1 2015 23.9 24.3 23.9 23.9 23.4 24.0 Q4 2013 +2.0% +2.0% +2.0% +2.0% Q2 2014 Q1 2014 Q3 2014 Q4 2014 Q1 2015 +1.0%

blended mobile ARPU (Belgium)

ARPU stabilization driven by tariff mix and 4G data usage

quarterly ARPU (a) (in euro per month per user)

32

Mobistar prepaid & postpaid customers base excl. M2M, IEW & MVNO

Mobistar - Financial results Q1 2015

1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q12 1Q12

• 2,8%
• 0,6%

2Q15

Service revenue growth excl. regulation Service revenue growth

service revenues year-on-year evolution (in %)

v-shaped recovery also confirmed in Q1 2015

Mobistar is increasingly focusing on value management

33

~0.6m 4G customer base growing Stabilizing postpaid customer base Mobile ARPU is rebounding with 2.0 % growth in Q1 2015 Exploding data usage with +153 % growth

Mobistar - Financial results Q1 2015

1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q12 1Q12 2Q15

+12,4% +5,6%

Restated EBITDA excl. regulatory & tax Restated EBITDA excl. regulatory Restated EBITDA

restated EBITDA year-on-year evolution (in %)

v-shaped recovery confirmed quarter after quarter

the efficiency program accelerates the return to growth of the EBITDA

34

Value based management driving profitable growth Top line sequential improvement Regulatory impact fading out

Mobistar - Financial results Q1 2015

cost base transformation: fueling growth engine

OPEX savings reinvested in growing the top line

35 544 594 2014A growth(c) initiatives gross savings adverse factors(a) 21 2013A

(a) increase in operational taxes in 2014 and price indexation in 2015 (b) including over €50m net non-labor OPEX savings from ACE2 and €9m labor costs savings (c) including innovation, customer acquisition and customer loyalty program

cost base excluding interconnection charges and cost of goods sold (in euro millions)

544 gross savings growth(c) initiatives 2015E adverse factors(a) 2014A

ILLUSTRATIVE ACTUAL FIGURES

resources resources resources resources reallocation reallocation reallocation reallocation

€71m net OPEX savings (b)

Mobistar - Financial results Q1 2015

capital expenses

sustained investment in network to consolidate our 4G leadership position

(a) excluding licenses

36 26.8 37.4

• 28.4%

28.4% 28.4% 28.4% Q1 2015 Q1 2014

total CAPEX

(in million euros) Excluding licenses

• 74 % of total group CAPEX

allocated to network

• #1 4G network
• ambitious 2014/15 4G roll-out plan

Mobistar - Financial results Q1 2015

consolidated net income

net income primarily boosted by EBITDA increase

37

in €m Q1 2015 Q1 2014 Var. insight Reported EBITDA Reported EBITDA Reported EBITDA Reported EBITDA 68.8

(25.5 %)

64.5

(23.2 %)

+6.8 %

• Reflecting stabilising revenues and thorough

cost management

Net income Net income Net income Net income 11.8 9.2

+28.6 %

• Reflecting increasing EBITDA and stable

dep., fin. res. and taxes.

Net profit per share Net profit per share Net profit per share Net profit per share 0.20 0.15

+28.6 %

Net financial debt Net financial debt Net financial debt Net financial debt 515.6 546.4

• 5.6 %

NFD/Restated EBITDA NFD/Restated EBITDA NFD/Restated EBITDA NFD/Restated EBITDA 1.9 1.8 Operational cash flow Operational cash flow Operational cash flow Operational cash flow 42.1 27.1

+55.3 %

• Mobistar continued stepping up investments

in its mobile network, in particular in the rollout of 4G

Organic cash flow Organic cash flow Organic cash flow Organic cash flow 14.5 11.6

+24.6 %

Mobistar - Financial results Q1 2015

Outlook 2015

Jean Jean Jean Jean-

• Marc

Marc Marc Marc Harion Harion Harion Harion, , , , Chief Executive Officer

Mobistar - Financial results Q1 2015

• Before any impact related to the cable opportunity
• Operational cash flow = EBITDA – Net Investments

Mobistar reiterates its 2015 forecasts

39

in €m Q1 2015 2015 outlook

Service Revenues

Y-o-Y

270.31

(-2.8 %)

Restated EBITDA

Restated EBITDA margin/Y-o-Y)

69.9

(25.8 % / +5.6 %)

260-280* Net Result 11.8 Net Investments 26.8 >200 Operational Cash Flow* 42.1

Mobistar - Financial results Q1 2015

Best mobile network and best-in-breed fixed network Devices range and services Open Content, Apps and APIs mPayment and cloud storage

40

Mobistar positioning:

the Trusted Connectivity company

Mobistar - Financial results Q1 2015

in 2015, Mobistar will be back to fixed connectivity

For Consumers… … and small Enterprises

New Pack

41

Ultra- fast Internet Digital TV

+

Mobistar - Financial results Q1 2015

2014 2015 = in 2015, Mobistar will stabilize its restated EBITDA

42

Mobistar - Financial results Q1 2015

2015 full year guidance

Mobistar aims at stabilizing its financials in 2015 and reiterates the same guidance as last year

43 275 guidance range (02/14) 2014A guidance range (10/14) 265 275 2014cb growth initiatives gross savings

• pening

base regulatory impact 2014A 280 250 260 280 Dynamic resources Dynamic resources Dynamic resources Dynamic resources reallocation reallocation reallocation reallocation

restated EBITDA (in euro millions)

ILLUSTRATIVE ACTUAL FIGURES

“restated EBITDA of between 260 and 280 million euros “restated EBITDA of between 260 and 280 million euros “restated EBITDA of between 260 and 280 million euros “restated EBITDA of between 260 and 280 million euros excl. any expenses related to the cable opportunity.” 273 2015 consensus guidance range (02/15) 280 260

Mobistar - Financial results Q1 2015

Q&A

Mobistar - Financial results Q1 2015

2Q 2015 Roadshow Schedule

45

DATE LOCATION BROKER ROADSHOW / CONF .

29-Apr-2015 London Exane BNP Paribas Management Roadshow 5-May-2015 Paris Raymond James Management Roadshow 19-May-2015 New York Berenberg Management Roadshow 20-May-2015 Toronto Royal Bank of Canada Management Roadshow 21-May-2015 Montreal Royal Bank of Canada Management Roadshow 28-May-2015 Nice Société Générale Management Roadshow 3/4-Jun-2015 London Bank of America ML TMT Conference 10-Jun-2015 Amsterdam ABN AMRO Management Roadshow 16-Jun-2015 Geneva / Zurich Royal Bank of Canada Management Roadshow 18-Jun-2015 Nordics JP Morgan Management Roadshow 23/24-Jun-2015 Edinburgh / Dublin HSBC Management Roadshow

Mobistar - Financial results Q1 2015

Appendix

Mobistar - Financial results Q1 2015

Quarterly results (1/2)

47

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 SUBSCRIBER BASE EVOLUTION SUBSCRIBER BASE EVOLUTION SUBSCRIBER BASE EVOLUTION SUBSCRIBER BASE EVOLUTION

Mobistar S.A. mobile customers in thousand 3 091.1 3 038.4 3 058.3 3 041.7 3 022.5

• Postpaid

in thousand 2 180.2 2 159.9 2 161.2 2 167.8 2 163.3

• Prepaid

in thousand 910.9 878.5 897.1 873.8 859.2 M2M SIM cards in thousand 749.1 797.9 833.3 873.6 739.8 MVNO customers in thousand 1 310.6 1 509.1 1 552.4 1 557.3 1 710.0 Total Mobistar S.A. Total Mobistar S.A. Total Mobistar S.A. Total Mobistar S.A. in thousand in thousand in thousand in thousand 5 150.7 5 150.7 5 150.7 5 150.7 5 345.5 5 345.5 5 345.5 5 345.5 5 444.0 5 444.0 5 444.0 5 444.0 5 472.5 5 472.5 5 472.5 5 472.5 5 472.3 5 472.3 5 472.3 5 472.3 Orange Communications Luxembourg S.A. customers in thousand 102.7 100.7 99.5 95.6 95.9 Total Mobistar group Total Mobistar group Total Mobistar group Total Mobistar group in thousand in thousand in thousand in thousand 5 253.4 5 253.4 5 253.4 5 253.4 5 446.2 5 446.2 5 446.2 5 446.2 5 543.5 5 543.5 5 543.5 5 543.5 5 568.1 5 568.1 5 568.1 5 568.1 5 568.2 5 568.2 5 568.2 5 568.2 Mobile internet customers in thousand 111.4 109.0 108.9 111.1 111.5 Fixed telephone lines in thousand 225.8 220.1 214.9 215.7 206.4 Fixed broadband in thousand 41.7 38.4 34.9 33.6 30.6

• ADSL

in thousand 41.7 38.4 34.9 33.6 30.6

• Cable

in thousand Digital cable TV customers in thousand

ARPU ARPU ARPU ARPU evolution evolution evolution evolution

Mobistar Mobistar Mobistar Mobistar blended quarterly ARPU (incl. visitor blended quarterly ARPU (incl. visitor blended quarterly ARPU (incl. visitor blended quarterly ARPU (incl. visitor roaming) roaming) roaming) roaming) in in in in € € € €/month /month /month /month 23.4 23.4 23.4 23.4 23.9 23.9 23.9 23.9 23.9 23.9 23.9 23.9 24.3 24.3 24.3 24.3 23.9 23.9 23.9 23.9

• Postpaid ARPU (excl. visitor roaming and IEW)

in €/month 27.2 28.1 27.9 28.2 28.3

• Prepaid ARPU (excl. visitor roaming and IEW)

in €/month 13.8 14.1 13.6 13.4 12.2 Orange Communications Luxembourg blended Orange Communications Luxembourg blended Orange Communications Luxembourg blended Orange Communications Luxembourg blended quarterly ARPU (incl. visitor roaming) quarterly ARPU (incl. visitor roaming) quarterly ARPU (incl. visitor roaming) quarterly ARPU (incl. visitor roaming) in in in in € € € €/month /month /month /month 41.9 41.9 41.9 41.9 41.0 41.0 41.0 41.0 39.1 39.1 39.1 39.1 37.1 37.1 37.1 37.1 37.8 37.8 37.8 37.8

Mobistar - Financial results Q1 2015

Quarterly results (2/2)

48

(*) After elimination of intercompany transactions.

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF COMPREHENSIVE INCOME

Mobistar mobile service revenues

in million €

240.3 246.2 243.7 245.0 237.8 Mobistar non-mobile service revenues

in million €

24.5 24.4 21.0 20.5 21.4 Orange Communications Luxembourg service revenues

in million €

13.5 13.0 12.4 12.2 11.8 Total Total Total Total consolidated consolidated consolidated consolidated service revenues(*) service revenues(*) service revenues(*) service revenues(*)

in million in million in million in million € € € €

278.1 278.1 278.1 278.1 283.3 283.3 283.3 283.3 276.7 276.7 276.7 276.7 277.2 277.2 277.2 277.2 270.3 270.3 270.3 270.3 Total consolidated handset sales

in million €

38.9 28.9 27.7 38.4 33.1 Total Total Total Total consolidated consolidated consolidated consolidated turnover turnover turnover turnover

in million in million in million in million € € € €

317.0 317.0 317.0 317.0 312.2 312.2 312.2 312.2 304.4 304.4 304.4 304.4 315.6 315.6 315.6 315.6 303.4 303.4 303.4 303.4 Consolidated Consolidated Consolidated Consolidated restated restated restated restated EBITDA EBITDA EBITDA EBITDA

in million in million in million in million € € € €

66.1 66.1 66.1 66.1 74.3 74.3 74.3 74.3 77.3 77.3 77.3 77.3 57.2 57.2 57.2 57.2 69.9 69.9 69.9 69.9

% of serv. rev.

23.8% 26.2% 27.9% 20.6% 25.8% Consolidated Consolidated Consolidated Consolidated EBITDA EBITDA EBITDA EBITDA

in million in million in million in million € € € €

64.5 64.5 64.5 64.5 72.5 72.5 72.5 72.5 70.7 70.7 70.7 70.7 47.7 47.7 47.7 47.7 68.8 68.8 68.8 68.8

% of serv. rev.

23.2% 25.6% 25.6% 17.2% 25.5% Total consolidated net result Total consolidated net result Total consolidated net result Total consolidated net result

in million in million in million in million € € € €

9.2 9.2 9.2 9.2 15.0 15.0 15.0 15.0 12.3 12.3 12.3 12.3 6.8 6.8 6.8 6.8 11.8 11.8 11.8 11.8 EPS calculated on the basis of the outstanding shares at the end of the quarter

in €/month

0.15 0.25 0.21 0.11 0.20 Total consolidated CAPEX

in million €

37.4 55.6 45.3 76.9 26.8

% of serv. rev.

13.5% 19.7% 16.4% 27.7% 9.9% Organic cash flow

in million €

11.6 1.5 23.1

• 6.5

14.5

Mobistar - Financial results Q1 2015

EBITDA restatements

from restated EBITDA to reported EBITDA

49

in €m Q1 2015 Q1 2014 insights Restated EBITDA

(as percentage of service revenues)

69.9

(25.8 %)

66.1

(23.8 %)

Labor related

• r redundancy costs

0.7

• 1.6

Non-labor related

• r restructuring costs
• 1.7

Reported EBITDA

(as percentage of service revenues)

68.8

(25.5 %)

64.5

(23.2 %)

Mobistar - Financial results Q1 2015

Investor Relations: Investor Relations: Investor Relations: Investor Relations:

• ir@mail.mobistar.be
• +32 2 745 80 92
• corporate.mobistar.be

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