Analyst Presentation Half year results 2007

20 July 2007

Agenda
Business Review H1 2007 Financial Figures H1 2007 Outlook FY 07 & Conclusions B. Moschni W. De Laet B. Moschni

Business Review H1 2007

B. Moschni

In a competitive market, Mobistar realized 88K net adds in H1 2007 (*)

800
Net market Growth (in K active cards)

93.0% 90.5%

(**)

95%

700 600 500 400 300 200

81.3% 83.9%

85%

80%

75%

100
107 88

0 2004
Mobistar

70%

2005
Competition

2006

H1 2007

Active Mobile Penetration

(*) including MVNO customers (**) Company estimate

% Active Mobile penetration

90%

Continued net gain MNP in H1 2007 (with Mobistar still as the only net MNP winner on the market)
-22,288 +22,371

+85,213

+19,897
-65,316

234,568 Total MNP

+22,143

+2,834

-19,309

-443

Postpaid as % of customer base further increased to 53.4% end H1 07

3,139,224(*)
3000000 Mobistar Customers 2500000 2000000 1500000
44% 51.4% 53.4%

3,199,735(*)

2,912,806

1000000 500000 0 2005 Postpaid RES 2006 Postpaid BUS Prepaid H1 2007

Highest proportion of postpaid customers in the market Net growth in postpaid for almost 50% due to net growth in the business market

(*) Excluding MVNO customers, ~40,000 as at end H1 07; ~13,000 end 2006

Value share growth maintained, up to around 35%(*)

80%

60 50.6% 40

34.6%

~ 35%

20

14.7%

0 2001

2002

33.3% 2004 2003

2005

2006

H1 2007

(*) Company estimate

Customer base management : churn evolution under control in a competitive market

Evolution average churn rate 30% 25% 20% 15% 10% 5% 0% 2004 2005 2006 Q1 2007 Q2 2007 H1 2007
29.2% 27.7% 19.1% 21.6% 19.2% 20.3%

(excluding migrations post- to prepaid)

Regulatory and pricing impact on ARPU(*), compensated by important increase in usage

40

/ month
/ MONTH

39.05 38.02

38.75

-2.42

+0.57

36.64 -1.68
35

-0.74 -4.92

5.49

36.90

34.68

30 2003 2004 2005 H1 2006 2006 MTR decrease Roaming on net Rev/min Usage H1 2007

(*) 12 months rolling ARPU

Upward trend in traffic confirmed, mainly driven by migration to postpaid and by prepaid consumption increase (*)
Average traffic/customer/month

160

Average usage/month

120

80

40

0 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Voice Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07

SMS

(*) Traffic includes both traffic out and in

10

Strong growth in mobile data revenues

Mobile Data revenues
120 100 80
+15.7%

60 40 20 0

H1 2006
SMS/MMS p-to-p premium SMS

H1 2007
GPRS/EDGE (incl. WAP)

Mobile data revenues up to 17.4% of mobile service revenues in H1 07 (from 15.4% H1 06) non-SMS mobile data represent 16% of total mobile data revenues Supported by the successful uptake of Blackberry and Mobile Office Cards in the Business market Orange World usage in Residential market

11

Postpaid ARPU: from 59.6 to 49.5

70 60 50

59.6
-2.6

56.9

-0.6

49.5
-6.5 -0.4

/ month

40 30 20 10 - 7.5 0
H1 2006 MTR H1 2006 proforma roaming price rev/min (domestic) AUPU H1 2007

Lower usage profile of pre- to postpaid migrations Price pressure in the business market (limited elasticity)

12

Prepaid ARPU sustained

18 16 14
-1.1

17.2

16.1
-0.1

16.5

/ month

12 10 8 6 4 2 0
H1 2006 MTR H1 2006 proforma roaming rev/min AUPU H1 2007

-4.4

+ 5.0

+ 0.5

Usage advantage linked with re-load frequency Usage increase mainly linked with strong success of Tempo Music offer

13

Mobistar Strategy

Mobile Centric
RESIDENTIAL Fix Mobile Substitution
Mobistar as a preferred mobility provider, i.e. mobile centric player

BUSINESS Mobile Centric Convergence

Mobistar as the total convergent mobility solutions operator, for mobile-centric organizations

14

Fix-to-mobile substitution in Residential market : Success of Mobistar @Home

@Home: the benefits of a mobile phone, better price than fix at home

Customer benefits :
For all your calls: 1 phone, 1 address book Easy to use Save on your Belgacom fee No clogged line at home

Evidence of success 45,000 @Home contracts sold by end June 2007 (launched in March 07) @Home customers show 50% increase in traffic to fix phones Traffic to fix represents 30% for @Home customers (vs. 12% in total base)

15

Fix-mobile convergence in Business market : Success of One Office Voice Pack

One Office Voice Pack:1st bundled voice offer in the B2B market, from commercial to contract convergence

Customer benefits:
- Important savings on mobile and fix bills - One contract and one customer service for the mobile & fix Success of Voice Pack proves that business market wants to benefit from fix-mobile convergence advantages Strong take-up (launched in May 07): ~30% of Mobile Voice gross adds Attracting high-value customers Combining fix&mobile in a pack strengthens the positioning in the fix voice market

16

Financial Figures H1 2007

W. De Laet

17

Consolidated income statement : Stable EBITDA margin and slight increase in net profit
Mio
Total Statutory Revenues (*) Total Turnover Total Service Revenues

H1 2007
761.8 747.2 720.9 -459.8 302.0

H1 2006
772.0 758.1 736.8 - 463.1 308.9

%
-1.3% -1.4% -2.2% -0.7% -2.2%

Cash Expenses
EBITDA

In % of service revenues
Depreciations and amortizations EBIT Net financial charges Corporate Taxes Net income EPS ()

41.9%
-81.5 220.5 1.4 -71.2 150.7 2.38

41.9%
- 91.3 217.6 0.3 - 70.1 147.8 2.34 -10.7% +1.3% N.A. +1.6% +2.0% 1.7%

18

(*) includes other revenues (14.6m EURO in H1 2007 and 13.9m EURO in H1 2006)

Revenue evolution breakdown

-2.2% -1.9% +1.7% +0.2%

736.8 -16.0 -14.3

12.6

1.8

-2.2% 720.9

H1 2006

Incoming Revenues

Roaming on-net

Billed revenues

Other

H1 2007

Net regulatory impact on revenues more than -4% on revenues

(negative roaming on-net due to anticipative lower roaming wholesale tariffs as of Oct 06)

19

P&L Mobile Activities : EBITDA margin maintained

Mio
Total Turnover (*) Mobile Service Revenues Cash Expenses EBITDA

H1 2007
704.3 678.2 -415.5 302.8

H1 2006
715.3 694.0 - 420.4 307.9

%
-1.5% -2.3% -1.2% -1.7%

In % of service revenues
Depreciations and amortizations EBIT

44.7%
-80.8 222.0

44.4%
- 90.4 217.5 -10.6% +2.1%

20

(*) includes handset sales (26.1m EURO in H1 2007 and 21.3m EURO in H1 2006)

P&L Fix activities : Strong improvement versus H2 2006

Mio
Total Turnover Fix Service Revenues Cash Expenses EBITDA In % of service revenues Depreciations and amortizations EBIT

H1 2007
43.5 42.7 -44.2 -0.7 -1.7% -0.8 -1.5

H2 2006
40.9 41.7 -48.1 -7.3 -17.5% -0.4 -7.7

H1 2006
43.7 42.8 -42.7 1.0 2.3% -0.9 0.1

% (H1 07 vs. H1 06)

-0.5% -0.2% +3.5% N.A.

21

Details on evolution consolidated cash expenses

Mio Euro

500 450 400 350 300 250 200 150 100 50 0

Interconnect costs down to 22.5% of service revenues (from 23..2%) Mainly costs of handsets in line with revenue increase Flat sales commissions although more postpaid activations (gross adds & migrations) Effect of outsourcing contract with Ericsson Universal Services charges No Discounted Stock Purchase Plan in 2007 Effect of outsourcing contract with Ericsson implemented in May 2007 (FTE from 1,661 EOY 06 to 1,521 end H1 07)

220.9

212.6

23.4 144.6 70.3

27.5 150.3 66.4

H1 2006

H1 2007

Interconnect & other sales costs Handsets/RT costs Non-headcount costs Headcount costs

22

CAPEX evolution
120 13.2% 100 12.6% 15.1% 16.0% 14.0% 12.0% 80

0
9.4%

mio

58.3
96 4.0

10.0% 8.0% 6.0% 4.0%

8.1%

60 109 90 40 69

9.7

20

69

44.6
2.0%

0 H1 2005 CAPEX/semester H2 2005 Network H1 2006 IT H2 2006 other H1 2007

0.0%

CAPEX/service revenues

23

% of service revenues

Cash Flow Statement : Distribution of all cash generated

Mio
EBITDA CAPEX Change in Working Capital Capital increase Purchase own stock Net financial charges Corporate Taxes Free cash flow before Dividend payments and capital movements Dividend payments Available Cash Flow H1 2007
302.0 -58.3 +82.1 0.0 0.0 1.4 -71.2 256.0 -284.8 -28.8

H1 2006
308.9 -69.2 -16.6 0.3 -0.6 0.3 -70.1 154.9 -152.2 2.7

%
-2.2% -15.8% N.A. N.A. N.A N.A. +1.6% 65.3% +87.1% N.A.

24

Balance Sheet
Mio Fixed Assets Current Assets Cash and Cash equivalents TOTAL ASSETS Net Equity Provisions/long-term liabilities Long Term Debt (*) Short Term Debt Current Liabilities TOTAL EQUITY AND LIABILITIES Net Debt / (Net Cash) H1 2007
804.6 229.2 57.3 1,091.1 628.9 15.3 0.0 21.3 425.6 1,091.1 -36.0

2006
827.9 221.9 68.0 1,117.8 763.8 14.0 0.0 2.4 337.6 1,117.8 -65.6

25

(*) Revolving credit facility of 250 mio still available

Outlook FY 2007
B. Moschni

26

Impact Roaming regulation versus estimates

Original Roaming Assumptions Retail Regulation MTC as of 1 July 2007 No regulation MOC Wholesale Anticipative IOT reduction as of Oct 2006 IOT regulation as of 1 July 2007 Effective Roaming regulation Retail Regulation MTC as of Sept 2007 Regulation MOC as of Sept 2007 Wholesale Intra-group IOT further reduced as of July 2007 IOT regulation as of 1 September 2007

Mobile service revenue growth in Belgium after regulatory impact (%/y) 8.0% 6.0% 4.0% 2.0% 0.0% 2004(a) -2.0% -4.0% -6.0% 2005(a) 2006(e) 2007(e)

Impact MTR reduction: -5%

Impact roaming -3%

27

Voxmobile : a success story

1/07/2003
Creation of VOXmobile

GSM network Roll-out WLAN Roll-out

Main challenger in the business market Take-over by Mobistar

91,000 customers (20% market share*)

2003

2004

2005

2006

2007

Commercial launch : own UMTS services GSM services based on a national

roaming agreement

Launch of innovative and convergent offers Data flat fees

All-inclusive packages (Mobile abundance) All in One packages (Mobile+Fix+ADSL)

28

* Source : company data and Luxembourgian regulator annual report

Impressive growth and break-even after 2 yr

(k Euro)
Sales*

2004 6.9

2005 19.1

2006 27.7

Areas of cooperation -> Develop Be-Lux large account approach with cross-border offers -> Supply, interco and roaming optimization -> Refunding via Mobistar

% growth
EBITDA -7.6

177%
-6.1

45%
-0.8

Net Income*

-9.3

-9.3

-5.8

29

(* Excl. handset sales)

Conclusions and Guidance FY 2007

Strong ambition to further extend value share Mobile market value in Belgium to be negatively impacted by regulatory measures (MTR & Roaming): market value impact of around -7 to -8% Mobistar Total revenues expected to decrease by 2 to 4%, outperforming expected market evolution (-5 to -6%) Stable EBITDA margin Net income evolution in line with revenues CAPEX/sales around 11%

30

Thank you !