Results Presentation

Q315 Solid financial and operational trend confirmed

Consumer segment results

19

Key Group achievements Q315

Enterprise segment results

29

Group underlying revenue per segment

Technology & wholesale

38

Group underlying revenue per product group

Staff & Support

39

Core revenue

BICS

40

Mobile service revenue

Convergence strategy progress

10

Group underlying direct margin

11

Underlying cost evolution

12

Group underlying EBITDA

13

Net income

14

Capex

15

FCF

16

Financial Position

17

Guidance

18

Solid financial and operational trend confirmed, EBITDA guidance revised to 4% to 5% growth

Group
Revenue*

Group
EBITDA*

Capex

Q3 FCF

Quarterly
NET ADDS
+ 23.000

to

to

1.509m

447m

Underlying Core revenue

+2.4% to 1.088m, on
solid revenue from Fixed
and Mobile services, in part
offset by lower revenue
from low-margin Mobile
terminals in the third quarter

Growth mainly from a

better performance of
Proximus Core business,
ending the third quarter
with EUR 406 million
EBITDA, up 3.1% from the
comparable period of 2014
and sequentially improving
from the prior quarters.

Third quarter Group revenue

was also supported by a
2.5% revenue growth from
BICS.

BICS too posted a growing

EBITDA for the third
quarter 2015, up by 5.7%
from the comparable
period of 2014.

*On underlying basis, i.e. excluding incidentals

200m

306m

TV subscriptions

+ 15.000

Fixed Internet Lines

+ 41.000
Total Capex YTD15 of
698m. Proximus invested
a.o. in the expansion of its
4G coverage. The Fixed
network was further
upgraded, bringing
dedicated speeds of at
least 70 Mbps to more than
one on four of Proximus
installed internet base,
with an increasing part
receiving 100 Mbps.

Total FCF of 522m by

end September 2015.

Mobile Postpaid cards excl.

M2M & Internet Everywhere
cards

- 36.000

Mobile Prepaid cards

-22.000
Fixed Voice lines

+ 10.000

3 & 4-Play Households/ Small

offices, i.e. 42% of total base

55.3%

Convergent households/small
offices, +2.8 p.p. YoY

For mobile best quarter

so far in 2015
3

Key Group
Achievements
Q3 2015

Solid revenue growth from Core and BICS

Q315 in m

10
15

-5

1,509

Consumer: + 2.0% YoY

14

1,472

+2.4%
Underlying
Q3'14

CBU

EBU

TEC

+2.5%

Intra-group
eliminations &
S&S

BICS

Underlying
Q3'15

YTD Sept15 in m
22

Enterprise: +4.8% YoY

-15

4,493

4,357

+2.7%
Underlying
Q3'14

CBU

EBU

Rising revenue from Fixed, & Mobile Services

Mobile service revenue, +2.7% YoY
In part offset by lower revenue from Mobile terminals
Firm 3- and 4-Play revenue growth driven by larger base and higher ARPH

Firm increase in ICT revenue, driven by ICT products

Strong Mobile service revenue (+6.7%) supported by a larger customer
base and higher data usage

TEC: -8.2% YoY

49

78

Q315 Core revenue up +2.4%

TEC

Lower volume from traditional Wholesale business

Impact from outphased Snow customers

: Q315 revenue up 2.5% YoY

+3.1%

Intra-group
eliminations &
S&S

BICS

Underlying
Q3'15

Continued solid growth in Non Voice revenue, up 14.2% YoY.

Revenue from Voice remained stable to last year, including a positive USD
impact which covered for the revenue loss following lower Voice volumes

Both Fixed and Mobile services, and BICS contributing well to the Group revenue
Q315 in m

-10

28

10
-5

1,509

Solid revenue growth from Fixed (Internet, TV and ICT).

Mobile services progressed year-on-year by 2.7%.
Partially offset by lower revenues from low margin Mobile
terminals in Q315.
BICS revenue driven by solid growth in non-Voice revenue.

1,472

Revenue
Underlying
Q3 14

Fixed

Mobile
services

Mobile
devices

Carrier & Subsidiaries

Wholesale

YTD Sept15 in m
48

21

BICS

49

12

-16

Others

Revenue
Underlying
Q3 15

12

4,493

Others

Revenue
Underlying
YTD-SEP 15

4,357

Revenue
Underlying
YTD-SEP 14

Fixed

Mobile
services

Mobile
devices

Carrier & Subsidiaries

Wholesale

BICS

Fixed internet
Broadband customer evolution
net adds
1,694

total
1,705

1,718

1,740

TV
1,788

1,813

1,828

Fixed Voice
net adds

TV evolution
1,495
1,225

1,525
1,244

1,558
1,264

1,593
1,288

total
1,657

1,692

unique
1,716

1,340

1,365

1,384

Fixed Voice customer evolution

net adds

total

2,902

2,876

2,850

2,831

-34

-26

-25

-20

Q1'14

Q2'14

Q3'14

Q4'14

2,836

2,822

2,800

-14

-22

Q2'15

Q3'15

5
48

16

12

13

Q1'14

Q2'14

Q3'14

44.4%

Q3 2014

22
Q4'14

45.8%

Q3 2015

Market share

25

Q1'15

Q2'15

65
15

30

30

33

35

Q3'15

Q1'14

Q2'14

Q3'14

Q4'14

YoY growth of

32.4%

34.7%

35
Q1'15

Q2'15

23

Q3'15

YoY growth of

+110.000

+158.000

Fixed Internet
customers;

TV customers;

i.e. +6.4%

Q3 2014

Q3 2015

Q1'15

YoY erosion of -51.000

Fixed Voice lines; i.e. -1.8%

i.e. +10.1%

Market share
7

2.7%

2.5%
Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

0.0%

-0.4%

Q1'15

Q2'15

1.1%

Q3'15

-4.5%

-6.0%
On comparable basis

-11.6%

Proximus Smartphone penetration: +9 pp YoY

39%
Q4'13

50% 52%
42% 44% 47%
Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Data usage per user/month

54%

Q2'15

56%

Q3'15

&

CBU

-2.8%
Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

920

Q3 2014

Q3 2015

583
363
Q3 2014

2.3%
2.0%

-6.9%
Q2'14

841

blended

Q3 Mobile ARPU for CBU and EBU growing YoY

-3.9%

Growing number of 4G
users YoY

EBU

Q3 2015

Users
3.4X more
data vs 3G users

3X

Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Solid increase in total data

usage YoY
Blended
2X
mobile traffic
traffic

5X
43%
of the total data traffic

Growing Group mobile customer base

5,484

33
56

5,539

5,591

5,617

5,698

5,717

5736

5882
30.7%

66

58

-50

-69

Q4'13

Q1'14

61

41

64

26

22

CBU blended

37

39

41

-46

-36

-44

-42

-36

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Total mobile market share +0.3 pp.

24.2% 24.3%
22.8% 22.6%

22.7%

21.0%

-46

30

CBU postpaid

24.8% 24.3%
23.8%

141

54

36

Positive evolution for Mobile

Market Shares

Mobile churn well under control

20.9%

21.9%

18.3%

16.4%
14.6%

15.4% 15.2%

16.3%

40.2%

40.5%

15.4%

14.3%

13.4% 13.8%

M2M & Internet Everywhere

Prepaid
Postpaid exc M2M & Internet Everywhere

Mobile park

+265,000 Mobile cards YoY; +4.7% , incl.

141,000 M2M and Internet Everywhere
cards
Customer mix improving to 74% Postpaid
vs. 72% for Q314

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q3 2014

Q3 2015

Postpaid market share +0.5 pp.

46.6%

Q3 2014

47.1%

Q3 2015
9

 42 % of the Households/Small offices are 3-or 4-play,

and count for 62% of total HH/SO revenue
Continued improvement of mix following growth for
3-Play and 4-Play
CBU Households per x-play Q315
Total of 2,777,000 Households (*)
Number of
Households
in 000
(*) includes Small
Offices

1-Play
1,163
41.9%

4-Play
517
18.6%

3-Play
654
23.6%

42%
HH on 3or 4-play
2-Play
443
16.0%

Revenue from X-play HH/SO +3.4% YoY; 4-Play revenue

+12.5%
ARPH up by 4.9% YoY to EUR 66.6, 4-Play ARPH at 117.2

CBU Revenues per x-play Q315:

Total x-play Revenues of 555m
Revenue
per x-play
in mio

4-Play
180
33%

3-Play
166
30%

62%
rev from
3- or 4play HH

Households/Small Offices per x-play

net adds of the quarter (in 000)

1-Play
129
23%

18
13

16

11

2-Play
80
14%

-11

-32

-5
-5

-8

CBU Revenues per x-play Q315:

Total x-play Revenues of 555

Q3'14

Q4'14

-14

-22

-23

-9

CBU Households per x-play Q315

Total of 2,777,000 Households (*)

08

-11

Q1'15

4-Play

3-Play

2-Play

1-Play

Q2'15

Q3'15

55.3% of convergent Households/Small Offices

50.7%

51.7%

52.5%

53.3%

54.1%

54.7%

55.3%

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Annualized churn rate (HH)

# Plays

Q3 15

# Plays

Q3 15

1-Play

19.0%

3-Play

10.1%

2-Play

11.8%

4-Play

3.1%

10

Q315 in m
15

-4

917

Higher Core Direct Margin Fixed and Mobile services.

Margin variance improved for a third consecutive
quarter this year, with the third quarter Direct Margin
up 2.1%.

891

Underlying Q3'14

CBU

Direct Margin increase from both Core business and

BICS.

EBU

TEC

YTD Sept15 in m
49

-14

CBU

EBU

TEC

BICS

Underlying Q3'15

28

2,721

BICS

Underlying Q3'15

BICS again posted a strong increase in Direct Margin,

+ 13.3% YOY continuing to benefit from favorable
but volatile market conditions for Voice and positive
currency and volume effect for Mobile data.

2,654

Underlying Q3'14

11

HR-related provisions update & timing impact Pylon Tax provision

+2.4%

Q315
in m

in m

266

258

200

YTD Sept15

470

458

HR
Non-HR

Q3'14

+1.4%
1,383

1,402

771

771

HR

204

612

Q3'15

YTD Sep'14

Group underlying HR costs (EUR mio ) & YoY

variance
-1.6% -1.5% 3.0%
-4.1% -0.2% -2.5%
255

258

258

243

251

254

266

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Underlying HR expenses 3% higher

Natural attrition of -277 FTE
Benefit of reduced headcount YOY more than offset by
HR-related provisions in Q315.
These provisions excluded, the trend would have been
similar to the first-half of 2015.
YTD September 15 HR-expenses -0.1% YoY to
771m

631

YTD Sep'15

Group underlying
non-HR (EUR
mio
& YoY
Underlying
Other expenses
(m)
&) var.
YoY
2.9% -5.8% -4.3% 12.9% 2.3%

-6.3%

259

Non-HR

226

211

201

200

Q4'13

Q1'14

Q2'14

Q3'14

5.6%

1.7%

255

216

212

204

Q4'14

Q1'15

Q2'15

Q3'15

Q3 Group underlying non-HR expenses +1.7% from a low

comparable base
Timing impact from Pylon tax , spread in 2015 vs for 2014
booked in Q4
In part offset by a net decline in other expenses benefitting
from cost efficiency initiatives.
YTD September 15 non-HR expenses totaled 631
million, or 3.2% YoY.
12

Q315 in m
5

-9

10

447

433

+3.1%
Underlying
Q3'14

CBU

EBU

YTD Sept 15 in m
38

TEC

+3.3%

Intra-group
eliminations &
S&S

BICS

Underlying
Q3'15

24

1,320

Q315 underlying Group EBITDA totaled 447m, a

14m or 3.3% improvement YoY.

Proximus Core business, up 3.1% YOY and

sequentially improving from the prior two quarters.
Higher Direct Margin posted in the Consumer and
Business segment, partly offset by higher expenses
(HR and non-HR costs), including an unfavorable
timing impact from the provisioned Walloon Region
Pylon tax.
BICS too posted a growing EBITDA , +5.7% YOY

-28

7
1,271

+2.1%
Underlying
Q3'14

CBU

EBU

TEC

Intra-group
eliminations &
S&S

+3.8%
BICS

Underlying
Q3'15

13

YTD September 15 Net income (Group share) totaled 343m. The decrease versus the same period
of 2014 is for a large part explained by recorded incidentals in 2014 and 2015*, higher depreciation
and amortization due to higher asset base and higher finance cost following a partial bond buyback.
This was partially offset by the increase in underlying EBITDA.
YTD (in m)
554

48

-221

-38

Net income YTD

Sep 2014

underlying
EBITDA
variance

incidentals (*)

higher D&A

-24

21

higher net
finance cost

lower tax
expense

343

non-controlling
Net Income
interest
YTD Sep 2015

* Positive incidentals for an amount of 127m in 2014 and negative incidentals for 94m in 2015 (including the costs linked to the litigation settlement
agreement between Proximus, BASE company and Mobistar.)
14

 200m Capex in
Q315, YTD 2015 at
698m.

4G-network

Renewal of the 900Mhz/1800Mhz spectrum ( 75m in Q2)

Investing in mobile network leadership, further extending
outdoor and indoor 4G coverage
Improve Fixed experience, continued rollout Vectoring
technology

97.8% outdoor population coverage

87.2% indoor coverage
Average download speed of 21.4 Mbps on a 4G capable device
(25% to 43% faster than competitor networks)

Average download speed on

21.4Mbps

Proximus
Mobistar

Base

capable device (*)

17.1 Mbps

25% 43%
faster

15.0Mbps

698

623
198

75

200

Fixed network
Spectrum

623

Without
Spectrum
Q3'14

Q3'15

YTD Sep '14

YTD Sep '15

38% of our VDSL2 network is now covered with Vectoring.

1/4th of the Proximus 1,8 million installed Internet base received
speeds of at least 70 Mbps, with an increasing part receiving 100
Mbps.

(*) Coverage and speed as measured by independent agency CommSquare through national drive tests in
Q315.. Speed measurements are done with devices in free mode, meaning the device itself picks the
available network technology (2G, 3G, 4G)

15

YTD Sept 2015 (in m)

90

-76

48

629

-72

-140

42

FCF YTD Sep

2014

higher underlying
EBITDA

income tax
payments
(mainly timing
impact)

cash paid for

capex

cash used for

working capital

disposals

522

other
FCF YTD Sep 2015
(mainly non-cash
EBITDA impacts)

The positive impact from the higher underlying EBITDA and lower income tax payments (mainly a timing impact) were
more than offset by less cash received from the sale of consolidated companies and buildings, higher cash paid for Capex
and higher working capital needs.

16

1 October 2015

30 September 2015
Net financial debt at 1,644m, 156m lower versus end 2014
Credit ratings: Standard & Poors A; Moodys A - both stable
outlook.

Proximus successfully issued 500 m Senior Unsecured

Notes due October 2025. The spread of this transaction was
set at 97 basis points over the 10-year mid-swap rate,
corresponding to a coupon of 1.875% annually. On 1 October
2015 the bond was listed on Euronext Brussels.
Proximus also repurchased 29% of its 950 m bond (4.375%)
due in November 2016 and 19% of its 500 m bond (3.875%)
due in February 2018. The cash settlement took place on 1
October 2015.

Debt maturity schedule on 1 Oct 15 (in m)

YTD Sept 15 (in m)

Net Debt
December
2014

FCF

Dividends

Non
controlling
interests

Net sale of
treasury
shares

Other

Institutional Eurobonds

Net Debt Sep

2015

private placement

675

522

500
405

-36

-1,800

600

-328
19

-21
-1,644

145
2015

100
2016

2017

2018

2019

2020

2021

2022

2023

150

11
2024

2025

2026

2027

2028

17

FY 2014

Outlook 2015
(31 July 2015)

Revised Outlook 2015

Core underlying revenue

4,287 million

Around 2% growth

Around 2% growth

BICS underlying revenue

1,577 million

Slightly positive

Slightly positive

Group underlying EBITDA

1,653 million

3% - 5% growth

4% - 5% growth

Capex (excl. spectrum license)

978 million*

About 900 million

About 900 million

Guidance metrics
Through the good progress on its
Fit-for-Growth strategy, the
company closed another quarter
with solid financial results. Taking
into account the achievements so
far, and its best estimate for the
remainder of the year, Proximus
management expects the
underlying Group EBITDA to grow
by 4% to 5%.

(30 October 2015)

Proximus Board of Directors approved to return to the shareholders a total gross interim dividend of EUR 0.50 per share:

Ex-coupon date: 9 December 2015

Record date: 10 Dec ember 2015
Payment date: 11 December 2015

The Board of Directors also confirmed their intention to return a stable total gross dividend of EUR 1.50 per share over the
result of 2015 and 2016.

18

Consumer results

Q3 2015

CBU underlying revenue (EUR mio ) & YoY

-2 . 9%

-1. 4%

2 . 0%

3 . 8%

5. 3 %

3 . 9%

2 . 0%

675

699

705

724

711

726

720

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Good revenue progress from Fixed and Mobile service revenue

Improved revenue trend from Fixed services, +5.3% YoY
Mobile Service revenue up 1.4%
Strong support from multi-play Packs
Revenue Tango (Luxembourg subsidiary) up 9.9%
Q315 revenue from Mobile devices limited due to lower
volumes (-25%).
YTD Sept15 underlying CBU revenue of 2,157m, +3.7% YoY

CBU underlying Cost of Sales (EUR mio ) & YoY

variance 12.6% 6.8% -0.8%
152

163

162

196

171

174

160

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

CBU underlying Direct Margin (EUR mio ) & YoY

variance 3.2% 3.0% 2.8%
524

535

544

528

541

552

559

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

* Adjusted for incidentals

Lower underlying CoS, -0.8% YoY

CoS fluctuations for great part driven by level of Mobile device
sales, which were limited in Q315.

Q315 underlying Direct Margin : + 2.8% YoY

Solid underlying revenue growth resulted in a continued positive
Direct Margin compared with last year.
Q315 underlying Direct Margin was 78% of revenue, a 1 p.p.
increase YoY.
YTD Sept15 underlying segment direct margin totaled
1,652m, +3.0% YoY
20

CBU underlying HR costs (EUR mio ) & YoY variance

-2.2%

-3.2%

-0.4%

T.B.A.

Fairly stable Q315 underlying HR Costs

Benefit from a lower personnel base following natural attrition
limited by the upward revision of HR-related provisions.
YTD Sept15, HR expenses of 299m, -1.9% YoY

102

102

102

95

99

99

101

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

CBU underlying Non HR costs (EUR mio ) & YoY variance

9.2%

4.0%

7.1%

Q315 underlying Non HR Costs : +7.1% YoY to 87m

Increase largely due to negative impact from a litigation provision
Expenses were slightly up following volume driven costs.
YTD Sept15, non-HR expenses totaled 258m, up 6.7%.

80

81

81

97

87

84

87

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

CBU underlying segment result (EUR mio ) & YoY variance

3.5%

4.6%

2.8%

Q315 underlying segment result: +2.8% YoY, from a higher

comparable base
Segment contribution 51.6%, +0.4p.p. YoY
YTD Sept15, CBUs segment result was 1,094m, +3.6% YoY.

342

353

361

336

354

369

371

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15
21

Q315
10

-11

720

12

705

-3

+2.0%
Underlying Fixed Voice
Q3'14

Fixed Data

TV

Mobile
Service
Revenue

TANGO

Terminals & Underlying

others
Q3'15

CBUs revenue growth resulted from sequentially

improving revenue increase from Fixed services, up by
5.3% from the previous year.
The solid revenue increase in Internet and TV revenue
more than offset the continued though contained Fixed
Voice erosion.

CBUs revenue from Mobile devices was limited in the third

quarter 2015, due to lower volumes

YTD Sept15
33
2,079

-14

11

12

2,157

27

+3.7%
Underlying Fixed Voice
YTD Sep' 14

Fixed Data

TV

Mobile
Service
Revenue

TANGO

Terminals & Underlying

others
YTD Sep' 15

Tango, Proximus Luxembourg subsidiary also showed a

solid revenue growth, increasing by nearly 10% compared
to the previous year.

Note
In line with Proximus strategy, most products are sold through multi-play
Packs. Therefore, the revenue and ARPU of standalone products are largely
the result of the allocation of revenue and discounts to the respective products
included in the Packs, as required by IFRS rules.

* Adjusted for incidentals, i.e. impact from divested companies. Total YTD 2015 CBU reported revenue of 2,157 m was 3.4% up versus 2,086m reported revenue of Q314.
22

Contained line erosion, YoY revenue decline limited in Q315

Q315 revenue from Fixed voice totaled 139m,
- 2.5% YoY

Fixed voice revenue (EUR mio) & YoY

-4. 1% -4. 0% -3 . 5% -2 . 1% -3 . 5% -4. 0%

-2 . 5%

146

144

143

142

143

139

137

139

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 Fixed line -15,000 lines; total of 2,121,000 lines

Voice line loss/gain & EOP (000)

2 ,200 2 ,172

2 ,153

2 ,137

2 ,126
-11
Q4'14

2 ,140 2 ,136

2 ,121

14
-2 7

-2 7

-19

-17

Q4'13

Q1'14

Q2'14

Q3'14

-5
Q1'15

Q2'15

-15

1.0% 0.7% 0.8% 1.7% - 1.2% - 3.0% - 1.7%

21.9 22.0 22.0

22.1

22.3

21.8

21.4

21.7

Q4'13

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q2'14

Fixed line erosion in Q315 of -15,000 vs -17,000 for Q314

Contrary H115, no more migrations of former Snow customers
to the Scarlet Trio offer.

Q3'15

Fixed voice
) & YoY
Fix ARPU
Voice(EUR
Revenue
(variance
m)

Q1'14

Fixed line base 15,000 lower YoY or -0.7%

Increasing number of customers with multi-play Pack, with
discount lowering the ARPU.

Q315 ARPU down -1.7% YoY to 21.7

Increasing number of voice customers in multi-play Pack at
more favorable pricing
ARPU includes the 1 July 2015 price adjustments.

23

Fixed Internet revenue growth improving to +9.1%

Fixed data revenue (EUR mio) & YoY
2 . 3%

2 . 7%

1.9%

4. 3%

5. 9%

5. 8 %

9. 1%

127

127

130

130

132

135

137

142

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 Fixed Internet customer base grew with +16,000

Proximus and Scarlet customers

Broadband growth & EOP (000)

1,533 1,550

1,563

1,576

18

17

13

14

Q4'13

Q1'14

Q2'14

Q3'14

1,598 1,649

22
Q4'14

51
Q1'15

1,674 1,690

25
Q2'15

16

-0.7% -0.9% -1.8% 0.4% 0.6% -0.8% 1.7%

27.7

27.5 27.8 27.8 27.7 27.6 27.5 28.2

Q4'13

Q1'14

Q3'14

Q4'14

Q1'15

Q2'15

Proximus & Scarlet brands maintaining good growth

With the potential of attracting former Snow customers fully
used in H115, Q3 reverting back to normal levels.

Q3'15

Broadband ARPU (EUR ) & YoY variance

Q2'14

Sequentially improving revenue growth, up 9,1% for Q315

Driven by the growing customer base, up by 114,000 or
+7.2% in one year
ARPU up by 1.7%.

Q315 ARPU of 28.2 +1.7% YoY; increasing compared to H1

Migration of Internet customers to multi-play Packs, at
favorable pricing was more than offset by higher prices for
standalone Internet and old Packs.

Q3'15
24

Proximus and Scarlet brand growing TV base by 23,000 in the quarter

TV revenue (EUR mio) & YoY variance
7. 9%

7. 8 % 11. 0% 12 . 4% 14. 8% 18. 1% 14. 0%

Millions

1 0 0 .0 ..

68

68

69

72

76

79

82

83

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 revenue from TV totaled 83m, +14.0% YoY

Continued subscriber growth, with both the Proximus and
Scarlet brand increasing their customer base
Over 12 months, the total TV customer base grew by 158,000
or 10.1%

.0 ..

TV growth & EOP (000)

1,465 1,495

1,525 1,558

1,593

31

30

30

33

35

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

1,657 1,692

1,716

65

35

23

Q1'15

Q2'15

Q3'15

Fixed TV ARPU (EUR ) & YoY variance

2.3% 2.0% 4.6% 5.5% 6.1% 7.6% 3.8%

18.8 18.8 18.7 19.3 19.9 19.9 20.2 20.0

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

+23,000 TV subscriptions in Q315

End Sept15 total of 1,716,000 TV subscriptions
1,384,000 single customers, +120,000 YoY or +9.5%
332,000 multi-settop boxes
Q315 Net Adds
19,000 single TV customers, in line with Q314, which
benefitted from the newly acquired Belgian football rights.
4,000 multi-settop boxes. This includes the impact of
accelerated cleaning.
Q315 TV ARPU up 3.8% YoY to 20.0
Increased uptake of TV options (Football,), slightly offset by
the TV Replay option which is offered for free in Packs as of July
2015
Product ARPU results from allocation of Pack revenue
(Proximus TV not sold in standalone)
25

Higher YoY revenue on growing Postpaid base and higher ARPU

Q315 revenue from Mobile services +1.4% YoY
Solid growth in YoY Postpaid base : + 193,000 or +7.1%
Blended mobile ARPU up YoY by 2.2%.

Mobile service revenue (EUR mio) & YoY variance

-6. 3 %

-5. 6%

-1. 1%

0. 0%

2 . 2%

0. 9%

1. 4%

252

243

253

252

252

248

255

256

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Mobile growth & EOP (000)

4,158

4,173

prepaid

4,195

postpaid

4,198

4,232

Mobile park

4,230

4,229

4,236
150.0 .
1 0 0 .0 .

73
-48

82
-6 7

68
-45

Q4'13

Q1'14

Q2'14

-39

73
-38

40
-42

38
-40

42
-35

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

42

5 0 .0.

.0 .

-5 0 .0 .

-1 0 0 .0.

Thousand

200.0 .

Growing Mobile base

Proximus Postpaid churn level remained low at 13.8%
Q315 Postpaid customer base +42,000 cards, or +34,000
when excluding the Internet-Everywhere data cards.
Q315 Mobile Prepaid -35,000 cards.

26

Higher YoY ARPU & Average Mobile data usage

Blended net mobile ARPU (EUR ) & YoY

-4.2% -3.9% 0.2% 1.3% 3.0% 1.8% 2.2%

22.1

21.3 22.3 22.3 22.3 22.0 22.7 22.8

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Average monthly CBU mobile data usage in Mb

642
253
Q1'14

789

309
Q2'14

4 G users
841
826

357
Q3'14

Blended
855

851

Blended Mobile ARPU up 2.2% YoY to 22.8

Better customer tiering, driven by high-end Joint-Offers, and
increased smartphone penetration
Q315 Postpaid ARPU of 30.0 +1.5% YoY
Q315 Prepaid ARPU of 10.4 or -11.5% YoY.

920

396

474

511

581

Q4'14

Q1'15

Q2'15

Q3'15

CBUs Average Monthly data consumption per user :

Overall average usage (3G & 4G devices) of 581Mb/month,
+63% YoY
Average usage for 4G-devices of 920Mb, + 13% YoY
4G devices >3.4 times more data consumption than non 4G.

27

Double digit revenue growth continued on higher YoY customer base and ARPU
Tango revenue (EUR mio) & YoY variance
9. 9%

-3 . 5%

9. 5% 11. 0% 9. 9%
-6. 4%
-12 .6% -7. 4%

33

28

28

Q4'13

Q1'14

Q2'14

30

31

Q3'14 Q4'14

31

31

33

Q1'15

Q2'15

Q3'15

c ustomers
Tango mobile customers
EOP (000)

2 83

286

2 80

280

2 83

Q4'13

Q1'14

Q2'14 Q3'14 Q4'14 Q1'15

2 78

287

2 87

Q2'15

Q3'15

Tango Q315 revenue of 33m, +9.9% YoY

Revenue increase resulting from an improved Mobile
customer mix with more Mobile postpaid customers, and
more triple-play and quad-play customers.

Mix Mobile customer base improving

Mobile customer base end Sept15 of 287,000, a 3.2%
increase vs. Sept14
In Q315 Tango had a Mobile postpaid growth of 2,000
cards, offset by 2,000 less prepaid cards.
Tango sees its mobile customer mix improving to 73%
Postpaid (+2.8 pp YoY).

Blended mobile net ARPU (EUR/month) & YoY

Variance -0. 3% 7. 6% 6.4%

5. 3 %

-8.4% -12 .1% -9. 0% -9.8%

3 2 .4

2 7.6

2 7.3

2 8 .1

2 9. 2

2 7. 5

2 9. 4

2 9. 9

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15
28

Enterprise results

Q3 2015

EBU underlying revenue (EUR mio ) & YoY

-3 . 1%

-0. 6%

0. 3 %

5. 0%

2 . 1%

0. 0%

4. 8%

322

327

317

345

329

327

332

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

EBU underlying Cost of Sales (EUR mio ) & YoY

variance 7. 1% 2 . 1% 11. 4%

Q315 underlying revenue increasing 4.8% YoY

Fixed up by 3.8% and Mobile services by 6.7% versus one year ago.
ICT revenue +9.1% YoY on low-margin product revenue.
YTD Sept15 underlying revenue totaled 987m, +2.3% YoY

Q315 underlying COS +11.4% YoY

Increase YoY mainly due to higher ICT product sales at low margin.
YTD Sept15 CoS totaled 278m, +6.8% YoY

87

89

85

107

93

90

95

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

EBU underlying direct margin (EUR mio ) & YoY

variance 0. 3 % -0. 8% 2 .4%
235

238

231

239

236

236

237

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 Direct Margin : +2.4% YoY

Improvement mainly attributable to the higher revenue from
Mobile services.

YTD Sept15 underlying direct margin totaled 709m, +0.6%

YoY
30

EBU underlying HR costs (EUR mio ) & YoY

variance -0.4% -1. 1% 6.4%
67

69

67

65

67

68

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

72

Underlying HR Costs up 6.4% YoY

Q3 increase mainly resulted from HR-related provision updates
and, to a lesser extent, to some additional international ICT
headcount.
YTD Sept15 HR expenses +1.6% YoY

Q3'15

EBU underlying Non HR costs (EUR mio ) & YoY

variance -6.5% -1. 7% -19. 9%
23

23

21

26

21

22

17

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

EBU underlying segment result (EUR mio ) & YoY

3.8%
-0.5%
variance 1.6%
146

147

143

148

148

146

148

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 underlying Non-HR Costs

Efficiency gains and an important positive bad debt variance
leading to lower non-HR expenses in Q3.
YTD Sept 15 non-HR expenses improved by 9.2%

Q315 underlying segment result of 148m, +3.8% YoY

Solid Q3 increase mainly resulted from higher Direct Margin,
mainly driven by Mobile services
Underlying contribution margin was 44.7%.
YTD Sept15 underlying segment result totaled
442m, +1.6% YoY
31

Q315 in m
1

332

317

-2

Firm increase in ICT revenue, up by 9.1% from the prior

year, mainly coming from low-margin product revenue.

Improvement from Fixed data nearly covered for the

loss in Fixed Voice.

+4.8%
Underlying
Q3'14

Fixed Voice

Fixed Data

ICT

Mobile Service Terminals &

Revenue
others

YTD Sept15 in m

10

Underlying
Q3'15

987

9
965

10

-9

In Q315 both Fixed and Mobile contributed well to the

higher topline.

Solid Mobile Services revenue, up 6.7% YoY

Larger customer base,
Higher revenue from national data usage and
roaming,
No longer impacted by the EU Roaming
regulation.

+2.3%
Underlying
YTD Sep '14

Fixed Voice

Fixed Data

ICT

Mobile Service Terminals &

Revenue
others

Underlying
YTD Sep '15

* Adjusted for incidentals, i.e. impact from divested companies. Total Q3 2015 EBU reported revenue of 332 million was 0.5 % up versus 330 million
reported revenue of Q3 2014.

32

Fixed Voice revenue decline on stable erosion of Fixed Voice customer base
Q315 revenue from Fixed voice totaled 61m,
- 3.3% YoY
Continued Fixed Voice line erosion triggered by companies
rationalizing on Fixed line connections and the move to VoIP.

Fixed voice revenue (EUR mio) & YoY variance

-2.0%

-3.0%

-2.6%

-2.9%

-4.2%

-5.7%

-3.3%

66

67

65

63

64

64

62

61

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

YTD Sept 15 Fixed voice revenue totaled 187m, -4.4% YoY

.0 ..

Voice line loss/gain & EOP (000)

72 6

72 0

712

704

695

686

677

670
7 3 0 .0 .
6 3 0 .0 .
5 3 0 .0 .
4 3 0 .0 .
3 3 0 .0 .
2 3 0 .0 .

1 3 0 .0 .
3 0 .0.

-6

-6
Q1'14

Q4'13

-7
Q2'14

-8
Q3'14

-9
Q4'14

-9
Q1'15

-9
Q2'15

-7
Q3'15

0.7%

0.9%

1.1%

0.3%

-0.9%

Stable quarterly line erosion

Q3 Fixed Line erosion remained limited, loss of 7,000 lines.
Total Fixed Voice Line customer base of 670,000 by end
Sept15, i.e. a YoY decline of 34,000 or -4.8%.

Q315 ARPU up 1.8% YoY to 30.3

ARPU benefitting from price changes since 1 July 2015.

Fixed voice
) & YoY
variance
Fix ARPU
Voice(EUR
Revenue
(m)
2.0%

Thousand

Millions

1 0 0 .0 ..

1.8%

30.0 30.7 30.4 29.8 30.3 30.8 30.1 30.3

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15
33

Q3 revenue up 2.6% YoY, driven by continued growth from data connectivity services
Q315 Fixed data revenue of 63m, +2.6 % YoY
Favorable revenue trend from Data Connectivity services
following roll-out of large customer projects on the Proximus
Explore platform.
Q315 Fixed Internet remained fairly stable YoY.

Fixed data revenue (EUR mio) & YoY variance

-3.6%

-4.9%

-3.5%

-2.7%

-2.0%

0.7%

2.6%

64

63

62

61

62

62

62

63

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

.0 ..

YTD Sept15 Fixed Data revenue of 187m, +0.4% YoY

Q315 Fixed Internet -1,000 lines; 137,000 Fixed internet
customers end Q315

Broadband growth & EOP (000)

14 3

14 3

14 2

14 1

14 1

13 9

13 8

13 7

1 7 0 .0 .

1 5 0 .0 .

1 3 0 .0 .

0
-1
Q4'13

Q1'14

-1

-1

Q2'14

Q3'14

1 1 0 .0 .

9 0 .0.

-3
Q4'14

Q1'15

7 0 .0.

-1

-1

Q2'15

Q3'15

-2.5%

-2.9%

-4.4%

-0.8%

1.6%

3 0 .0.

Q315 ARPU of 44.5, +4% YoY

ARPU increase reflecting the 1 July 2015 price adjustments.

Broadband ARPU (EUR ) & YoY variance

-2.0%

5 0 .0.

Thousands

Millions

1 0 0 .0 ..

4.0%

4 5 .00
4 4 .00
4 3 .00

4 2 .00
4 1 .00
4 0 .00
3 9 .00
3 8 .00
3 7 .00

43.8 43.9 43.2 42.7 41.9 43.5 43.8 44.5

3 6 .00
3 5 .00

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15
34

Underlying ICT revenue (EUR mio) & YoY

4.4%

1.8%

14.8%

2.2%

-1.2%

9.1%

105 109

104

127

107

107

113

Q1'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

-3.3%

Millions

2 0 0 .0 ..

1 0 0 .0 ..

111

EBU generated in Q315 113 m revenue from ICT, 9.1%

above the same period of 2014
Mainly driven by a large one-off product contract which in the
third quarter more than offset the impact from the
terminated ICT contracts earlier this year.

.0 ..

Q4'13

Q2'14

YTD Sept 15, EBUs ICT revenue totaled 328m, +3.3%

above the comparable period of 2014.

* Excluding impact from divestures : Telindus France in May 2014 and Telindus UK in December 2014
35

YoY growth on larger customer base and higher data usage

Q315 revenue from Mobile services totaled 82m, +6.7% YoY
Growing mobile customer base, improved ARPU
Regulated roaming rate cuts annualized on 1 July 2015
YTD Sept 15 underlying Mobile service revenue totaled
241m, +4% YoY

Mobile service revenue (EUR mio) & YoY variance

-4.6%

-0.1%

3.8%

-1.4%

3.4%

1.8%

6.7%

76

76

79

77

75

79

80

82

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Mobile growth & EOP (000)

1,069

1,095

1,121

1,161

1,179

1,2 00

1,3 38

132

8 0 .0.

7 0 .0.
6 0 .0.

132

26
9
16
7
17
13
10
4
Q4'13
Q1'14
Q2'14
Q3'14
Postpaid exc. M2M & Free data

31
13
09
6
Q4'14
Q1'15
M2M & free data

5 0 .0.
4 0 .0.

3 0 .0.

10
10
Q2'15

2 0 .0.

6
Q3'15
Mobile park

1 0 .0.
.0 .

Thousand

1,031

Q315 Mobile base boosted by M2M

6,000 Mobile Voice and paying data cards added in Q315
M2M park growth of 132,000 in Q315 (Road Usage charging)
Park at 1,338,000 cards
Up 3.7% M2M and Free data cards excluded
Up 19.4% in total
Mobile churn decreased in Q315 to 8.9% (Q115: 11.3%,
Q215: 10%).

36

For 1st time in a long while the ARPU showed YoY growth on improved tiering a higher data usage
Blended net mobile ARPU (EUR ) & YoY variance
-10.9%

-6.9%

-3.2%

-9.2%

-2.6%

-2.8%

2.0%

31.0

30.1

30.5

29.4

28.2

29.3

29.7

30.0

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Average monthly EBU mobile data usage in Mb

643

652

664

290

349

387

414

Q1'14

Q2'14

Q3'14

Q4'14

507

718

752

488

529

Q1'15

Q2'15

4 G users

811

Blended Mobile ARPU up 2%YoY

Improved tiering and data consumption
No additional roaming regulation impact.

EBUs Average Monthly data consumption per user of data:

Overall average usage (3G and 4G devices) 590Mb/month,
+52% YoY
Average usage for 4G-devices of 811Mb/month, up 24% YoY
4G devices have 2.6 times more data consumption than non 4G.

590
Blended

Q3'15

37

TEC & W underlying revenue (EUR mio ) & YoY

-5.3%

-9. 8%

64

60

60

58

Q1'14

Q2'14

Q3'14

Q4'14

-2 . 4%

-8 . 2%

55

58

55

Q1'15

Q2'15

Q3'15

-9. 5% -10.2% -13 .8%

TEC & W underlying direct margin (EUR mio)

&YoY
-15.3%

-2 . 8%

-8 . 0%

55

51

51

49

46

50

47

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

TEC & W underlying HR & Non-HR costs (EUR mio )

Non HR

HR

YoY

1. 1%

8 . 6%

6. 0%

48
41

45
42

45
44

67
40

49
41

53
41

49
45

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 revenue totaled 55m, -8.2% YoY

Lower volumes from traditional wholesale business
Snow outphasing largely compensated through Scarlet
retail offer
YTD June revenue totaled 168m, -8.2% YoY
Q315 direct margin 47m, -8.0% YoY
In line with the revenue evolution the direct margin
decreased YoY by 4m or -8.0%.

Q315 HR expenses of 45m, +2.4% YoY driven by

updated HR-provision.
Non-HR expenses of 49m, +9.6% YoY
This includes a timing impact of the Pylon tax provision
Partly offset by benefit from the ongoing cost
optimization projects.
38

Q315 revenue totaled 5m, in line with the prior quarter.

S&S underlying revenue (EUR mio ) & YoY
-6.3%

9.8%

-4. 5%

67.7%

12.4%

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

-30.3% -18 .7%

S&S underlying HR costs (EUR mio ) & YoY

variance -3 .0% -4. 4% 2 . 9%
34

34

34

31

33

32

34

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

S&S underlying Non HR costs (EUR mio ) & YoY

2 . 2%

-0. 9% -18 .0%

49

41

44

53

50

41

36

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q315 HR expenses 34m, +2.9% YoY as a result of

updated HR-related provisions

Q315 Non-HR expenses 36m , -18.0% YoY as a result

of positive year-on-year variance on non-HR related
provisions.

39

Firm Direct Margin of 73m +13.3% YoY on favorable Voice market conditions & positive currency and
volume effect for Mobile data
BICS underlying revenue (EUR mio ) & YoY variance
0.5%
-14.3%

-6.1%

-1.3%

11.9%

-0.8%

2.5%

357

415

410

395

399

411

420

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

BICS Direct Margin (in EUR mio)

Voice

Non-Voice

YoY
2 0. 6%
10. 5%

13 .3%

-5. 0%

-4. 4%

-3 . 3%

2 . 5%

30
28

31
31

37
28

32
31

35
30

37
39

39
34

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q2'15

Q315 revenue totaled 420m, +2.5% YoY

Increase driven by continued solid growth in non-Voice
revenue, up 14.2% YoY.
Revenue from Voice remained stable to last year, including a
positive currency impact which covered for the revenue loss
following lower Voice volumes.

Q315 Direct margin 73m, +13.3% YoY

Direct margin continued to benefit from favorable but
volatile market conditions for Voice and positive currency
and volume effect for Mobile data, and from a one-off sale
in capacity.

40

Segment result up 5.7%

BICS underlying segment result (EUR mio ) & YoY

variance 32.4%
5.7%
34.9%
30

35

39

32

39

47

41

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

In Q315 BICS handled

6,398m minutes, -8.4% YoY
Non-Voice volumes, + 24.8% YoY

BICS Volumes (in mio)

Minutes

583
499
6,243
Q1'14

SMS/MMS

629

654

656

Q315 segment result of 41m, up 5.7%

Q315 expenses up mainly on unfavorable YoY bad debt
impact and currency effects
EBITDA margin of 9.7%

710

7,259

6,981

6,675

6,504

6,859

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

785
6,398
Q3'15

41

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42

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