Orange Belgium S.A. — Earnings Release 2014

Feb 4, 2015

Full year results 2014 Mobistar

Financial communication

Embargo until 04 February 2015 at 7 a.m. Regulated information

Mobistar increased postpaid customer base and revenue per user in Q4 thanks to 4G leadership

Brussels, 4 February 2015 – Today, Mobistar (Euronext Brussels: MOBB) publishes its results for the financial year 2014.

• In the fourth quarter of 2014, Mobistar's retail customer base1 in Belgium increased by circa 24K thanks to its sustained 4G leadership, its successful 'M4GIC' marketing campaign, its completely overhauled distribution and continued growth in M2M business. Blended ARPU in Belgium ticked up to 24.3 euros in the fourth quarter, versus 23.9 euros in the previous quarter, increasing year-on-year for the first time in more than three years, driven by Mobistar's focus on value management, improved customer loyalty and data usage development.
• Mobistar delivered on its in-depth business transformation program quarter after quarter:
• Mobistar achieved undisputed leadership in 4G coverage and holds #1 position in voice quality and 3G coverage2
• Mobistar reached half a million 4G customers with 4G traffic now representing over one third of total mobile data traffic;
• Mobistar's retail customer base increased by 49K in 2014 in Belgium despite fierce competition;
• The postpaid net adds which turned positive in the third quarter of 2014, continued their positive trajectory in the last quarter of the year;
• The ACE2 efficiency program exceeded its 50 million euros net savings target.
• Mobistar's FY 2014 results are at the high end of its guidance with a restated EBITDA of 275 million euros.
• Mobistar engaged with friendly users testing of its very high broadband internet & digital TV cable services, preparing for commercial launch in the course of 2015.
• Throughout 2014, Mobistar has taken determined measures to regain commercial momentum and reversed the trends in its key financials. In 2015 Mobistar aims at stabilizing its financials in spite of still very challenging market conditions and consequently reiterates the same guidance range as last year; i.e. a restated EBITDA of between 260 and 280 million euros excluding any expenses related to the cable opportunity.
• Mobistar will continue prioritizing its investment in network and future growth in 2015, hence the Board of Directors will propose the General Assembly of May 6, 2015 to refrain from paying a dividend for the financial year 2014.

'I am very pleased of what Mobistar achieved in 2014: network, distribution and overall customer experience are at the helm of our efforts and Mobistar already achieved remarkable performance. We deliver on our objectives and are winning back customers. In 2015, Mobistar customers will be more than ever at the centre of our actions with new services supporting the 4G experience and other improvements in terms of customer satisfaction. In complement to our best-in-class 4G services, we will be ready to market our disruptive internet & digital TV cable offers, once the regulators will have clarified the remaining points of the 'retail minus' calculation, as they committed at the end of last year. Mobistar will truly be turning into a converged provider with attractive offers for all of its customers. Thanks to the engagement of all Mobistar team members, we are entering the current year with optimism and therefore I am very excited about our long-term prospects', commented Jean-Marc Harion (CEO).

Ludovic Pech (CFO) added: 'Mobistar's financial and commercial performance in 2014 shows that we are on the right track and we deliver on our promises. I am particularly pleased with the sound execution of our efficiency program. In addition to last year's savings, we have structurally reduced expenses by more than 50 million euros in 2014, thoroughly adapted our business model to challenging market conditions and, importantly, reallocated resources towards high-priority domains and future growth activities. As a consequence, we are confident Mobistar is now well prepared to face the forthcoming challenges of the industry and to exploit opportunities'.

1. Key Financial and Operational Highlights

• Retail customer base growth confirmed and accelerated in Q4

Mobistar's retail customer base increased by 49,473 in Belgium in 2014. The fourth quarter showed again a solid increase of 23,617 quarter-on-quarter: 1/ Mobistar's postpaid customer base grew by 6,631 customers, despite very competitive market conditions. Net adds in the residential postpaid segment were again positive in the fourth quarter. Net adds in the B2B postpaid segment also improved despite remaining in negative territory with a clear focus on value management. 2/ Mobistar's performance in the prepaid segment is in line with market trends, with 23,293 customers less in the fourth quarter. 3/ The M2M segment ended the year well with an increase of 40,279 active SIM cards in the fourth quarter.

• The largest mobile network operator in Belgium with 41 % of the SIM cards connected3

At the end of the year the number of connected SIM cards on Mobistar's' network reached 5,472,496, in Belgium, an increase of 397,017 year-on-year. In addition to the development of its retail customer base, Mobistar increased its wholesale customer base by 347,544 new MVNO customers. Today, 41 % of the SIM cards in Belgium are hosted on the Mobistar network. The number of connected SIM cards on the Mobistar network in Belgium and Luxembourg rose 7.5 % year-on-year reaching a total of 5,568,137, an increase of 390,479.

• Mobile data traffic increased 185 % year-on-year in 2014

A record amount of data moved through Mobistar's network in 2014. Mobistar takes pride in its 4G network undisputed leadership which is a direct result of its investment in its network, turning it into a competitive advantage. At the end of the fourth quarter, Mobistar's LTE network covered 88 % of the population, or almost 9.7 million people in Belgium. In December 2014 Mobistar nearly registered its 500,000th 4G customer and saw 4G traffic increasing to represent over one third of total mobile data traffic.

• Year-on-year ARPU growth for the first time in more than three years

The blended ARPU in Belgium in the fourth quarter ticked up to 24.3 euros, versus a blended ARPU of 23.9 euros in the previous quarter, an increase of 1.5 %. For the first time in more than three years, ARPU grew with a year-onyear increase of 1.0 %. This was realized thanks to Mobistar's accelerated 4G deployment strategy, coupled with the most attractive range of mobile devices. 4G increasingly proves to be a strong growth lever: high adoption rate and increased usage are boosting ARPU expansion by an increase in data top-ups and the upsell of tariff plans.

• Mobile service revenues more resilient quarter after quarter

Mobistar's service revenues amounted to 1,115.3 million euros, compared to 1,252.9 million euros a year earlier, or an 11.0 % decline year-on-year. Without the regulatory impact, revenues would only have declined by 8.0 %. In the fourth quarter, service revenues amounted to 277.2 million euros, a decline of 4.5 % or 1.1 % excluding the regulatory impact. Mobile service revenues excluding regulatory impact even increased by 0.8 % in the fourth quarter of 2014 in Belgium, thus demonstrating that the pricing disruption triggered by the changes in the 2012 telecom law has been largely absorbed. Over the last five quarters, the group mobile service revenues declined respectively -4.5 % in 4Q 2014, -10.1 % in Q3 2014, -12.3 % in Q2 2014, -16.2 % in Q1 2014 and -21.4 % in Q4 2013.

• Fourth quarter restated EBITDA excl. regulatory impact increased 5.7 % year-on-year

Mobistar recorded a restated EBITDA of 274.9 million euros, down -18.1 % year-on-year. Mobistar's restated EBITDA margin amounted to 24.6 % of service revenues. Excluding the 25.5 million euros regulatory MTR and EU roaming impact, the Group's restated EBITDA would have decreased by 35.3 million euros, i.e. 10.5 % year-on-year. Almost two thirds of this decline is explained by the increase of operational taxes and fees, such as the pylon tax, which were up 21.4 million euros compared to last year. In the fourth quarter of 2014, Mobistar's restated EBITDA amounted to 57.2 million euros, -5.3 % year-on-year, with a margin of 20.6 % of service revenues. Excluding 6.6 million euros of regulatory impact, the restated EBITDA of the fourth quarter increased 5.7 % year-on-year.

• Positive operational cash flow despite strong investment

The operational cash flow amounted to 40.1 million euros compared to -1.9 million euros a year ago. The lower operational profit in 2014 was balanced by the higher investment outlay in 2013 related to the acquisition of the 800 MHz license. This positive operational cash flow was realized notwithstanding the higher network investments related to the LTE roll out. In 2014, Mobistar invested in 215.3 million euros, i.e. 19.3 % of service revenues, compared to 199.0 million euros (excluding the 800 MHz license fee) the previous year.

2. Key facts

Mobistar is continuing to execute on its in-depth transformation plan thus creating levers for future growth. Mobistar made progress on its four strategic priorities in the course of 2014:

Leadership in Mobile:

• Mobistar's LTE roll out advanced at high speed, already reaching 88 % outdoor- and 64 % indoor coverage at the end of 2014. The most recent network drive test, carried out by the independent agency Commsquare re-confirmed that Mobistar has by far the best LTE coverage for all coverage thresholds: from outdoor to deep indoor, thus proving its network leadership. Mobistar is also leading on 3G coverage, especially indoor, which translates into a very good performance on mobile data KPIs and customer experience.
• Mobistar has secured its broad spectrum portfolio with the renewal of its existing 2G spectrum. Currently, Mobistar is the #1 operator for all voice metrics.
• The proportion of smartphones, especially Android and iOS handsets (iPhones) increased solidly. Mobistar is subsidizing only 4G smartphones to stimulate data usage. This, in turn, further increases customer loyalty, and helps to rebalance the distribution mix towards direct and controlled channels, with an important reduction in the commissions paid to indirect channels. Mobistar's proprietary recommendation engine calculates and proposes to customers that qualify for a Personal Check Up the tariff plan and subsidised 4G phone that best suits their consumption profile.
• In November, Mobistar initiated a test project with Taxis Verts to provide Internet in Brussels taxis. Passengers have access to the Internet via Mobistar's 4G network, which has 99 % coverage in Brussels, thanks to a Wi-Firouter equipped with a Mobistar SIM card placed in the taxi. After this test phase, that will last until the end of the first quarter of 2015, the intention is to expand the offer. In order to allow commuting customers to benefit from the greatest mobility advantages of 4G, a similar partnership was signed in early September with De Lijn, to provide Internet access in busses and trams in Ghent and Antwerp.

Pioneer in Disruptive Convergence:

• As planned, Mobistar has connected its first user testers of its very high broadband internet & digital TV services on cable. The first external users have been recruited among Mobistar customers in the Charleroi region. The test zone will be progressively extended to new cities. Through surveys and discussion groups, several hundred Mobistar customers have the opportunity to share their experiences and formulate suggestions for improvement prior to the commercial launch.
• Mobistar will commercially launch those services and unveil its pricing strategy, once the regulator will have clarified the remaining points of the 'retail minus' calculation which the BIPT has confirmed in the course of the first half of 2015.
• The Brussels Court of Appeal confirms the wholesale cable opening by rejecting the appeal initiated by Telenet against the market decision and established a solid foundation for the obligations imposed on the cable networks. A decision on the comparable appeals by Tectéo, Brutélé and Numéricable is expected in the first quarter of 2015.

Best Customer Experience:

• Mobistar's Best Customer Experience program is made up of four building blocks: 1/ Best mobile tariffs; 2/ Best mobile network; 3/ Best services and 4/ Best Loyalty program. Mobistar closely monitors its progress, and all of the metrics have positively evolved with very encouraging customer feedback.
• Mobistar's decision to keep its consumer portfolio unchanged throughout 2014 has clearly contributed to the transparency of its offer. The pricing survey conducted by the BIPT in the second half of 2014 has once again confirmed that mobile prices in Belgium are very attractive. Mobistar in particular is well positioned, especially with its postpaid mobile data tariff plans which include 4G.
• In line with the transformation of its distribution channels and the increasing number of smartphone users, Mobistar rolled out initiatives to expand the services available in its retail outlets, such as smartphone repairs. Mobistar increased the attractiveness of its repair centers, which are approved by Apple.
• Mobistar's innovative MySwap service took off nicely in the fourth quarter. MySwap is an option that guarantees customers that their new smartphone will be bought back at 50 % of its purchase price after 2 years.
• In partnership with Systemat, Mobistar, building on its visionary position in Enterprise Mobility 3.0, created a new service for its business customers, called Mobifleet. This service allows companies with between 1 and 50 employees to professionally manage their smartphone and tablet fleet in a simple, secure and professional manner. The service is either offered as a subscription service, together with a mobile plan, or separately. Mobifleet can include devices with pre-installed apps and offers a cloud based business app store to acquire and manage new apps.
• Mobistar's loyalty program "Have a Nice Day" is gaining traction with an increasingly engaged customer base. This program is designed to improve customer satisfaction and tenure, while at the same time also acting as a key lever for the digitalization of Mobistar's customer base.

Best Industry Efficiency:

• Mobistar's ACE2 cost efficiency program, which aimed to enhance efficiency by systematically improving all company processes, has successfully come to its end exceeding the net operating cost target saving of 50 million euros expected this year. The excess savings were reinvested into further strengthening Mobistar's commercial position in the market. Mobistar will pursue its efforts in this field and reallocate resources from legacy to growth businesses.
• Mobistar is also intensifying efforts on cash management with the launch of a series of new initiatives, which should lead to an improvement in the cash flow in 2015.

3. Comments on the financial situation

3.1 Consolidated figures for the Mobistar group

Mobistar group´s consolidated key figures4	Full Year 2014	Full Year 2013	Variation
Total number of connected SIM cards (Mobistar S.A.,	5 568 137	5 177 658	+7.5 %
Orange Communications Luxembourg S.A. and MVNOs)
Consolidated turnover (million €)	1 249.2	1 461.3	-14.5 %
Service revenues (million €)	1 115.3	1 252.9	-11.0 %
Handsets revenues (million €)	133.9	208.4	-35.7 %
Restated EBITDA(5) (million €)	274.9	335.7	-18.1 %
Restated EBITDA margin in % of service revenues	24.6 %	26.8 %	-8.0 %
EBITDA (million €)	255.4	317.1	-19.5 %
EBITDA margin in % of service revenues	22.9 %	25.3 %	-9.5 %
Consolidated net profit (million €)	43.3	87.4	-50.5 %
Net profit per ordinary share(6) (€)	0.72	1.46	-50.5 %
Net investment (million €)	215.3	199.0	+8.2 %
Net investment/Service revenues	19.3 %	15.9 %	na
Operational cash flow(7) (million €)	40.1	-1.9	na
Organic cash flow(8) (million €)	29.7	-59.1	na
Net financial debt	536.7	556.9	-3.6 %

3.2 Consolidated statement of comprehensive income

Revenues

Mobistar's total consolidated turnover, which includes service revenues as well as revenues from the sale of handsets, amounted to 1,249.2 million euros in 2014, compared to 1,461.3 million euros in 2013, down 14.5 %. Taking into account the regulatory MTR and EU roaming impact of 37.6 million euros, the total consolidated turnover recorded a year-on-year trend of -11.9 %. In the fourth quarter of 2014, Mobistar's total consolidated turnover amounted to 315.6 million euros, compared to 356.8 million euros in the same period a year ago, a decline of 11.5 % year-on-year or a decline of 8.8 % year-on-year excluding the regulatory impact.

Mobistar's service revenues amounted to 1,115.3 million euros in 2014 compared to 1,252.9 million euros a year earlier, a decline of 11.0 %. The service revenues in the fourth quarter of 2014 amounted to 277.2 million euros, a year-on-year decline of 4.5 %. The impact of the market disruption, induced by the telecom law in late 2012, and the subsequent intense price competition in the Belgian mobile telecom market was largely digested by year end.

The regulatory impact on Mobistar's service revenues amounted to 37.6 million euros in 2014, i.e. an impact of 26.4 million euros from EU roaming and 11.2 million euros from MTR. Excluding regulatory impact, the 2014 and fourth quarter consolidated service revenues would have respectively declined by 8.0 % and 1.1 % compared to the same period last year.

The consolidated handset sales in 2014 amounted to 133.9 million euros, compared to 208.4 million euros in 2013. The fourth quarter consolidated handset sales stood at 38.4 million euros, compared to 66.6 million euros in the same period last year. The lower handset sales are the result of the phasing-out of the pure purchase/resale business as well as of a lower average selling price of the handsets, given a higher portion of low- and mid-end smartphones sold in 2014. The volume of devices sold via Mobistar's direct channels, especially brand banner stores and e-commerce websites, was supported by both the refitting and the digitalisation of Mobistar's shops, coupled with a new customer-oriented marketing approach.

Result of operating activities before depreciation and other expenses

In 2014, Mobistar's restated EBITDA reached 274.9 million euros, a decline of 18.1 % on 2013. The restated EBITDA margin amounted to 24.6 % of service revenues compared to 26.8 % in 2013. In the fourth quarter of 2014, the restated EBITDA margin amounted to 20.6 % of service revenues, or 57.2 million euros, compared to 60.4 million euros a year ago.

Despite accounting for 25.5 million euros in 2014, the regulatory impact has reduced in comparison with recent years. However, the reduction in mobile termination rates in Luxembourg post-February 2014 and cuts to EU roaming rates in both Belgium and Luxembourg did have a negative impact on Mobistar's operating performance of 6.6 and 18.9 million euros respectively. Excluding the regulatory impact, there was a 5.7 % increase in the restated EBITDA in the fourth quarter of 2014, thus limiting the decline to 10.5 % for the full fiscal year. The fourth quarter performance, in combination with Mobistar's solid commercial performance, underlines the company's ability to grow its customer base and consequently its market share in a profitable way.

The ACE2 efficiency program announced by Mobistar at the beginning of 2014 has fully delivered on its target. The program reviewed all company processes in order to realize a saving of 50 million euros in structural net operating costs, while at the same time accelerating Mobistar's transformation into a more efficient, digital company.

Mobistar's total direct costs fell by 20.9 % in 2014 to 564.4 million euros, compared to 713.2 million euros in 2013. In effect, Mobistar managed to reduce its direct cost-to-services revenue ratio in 2014. This was largely the result of the ACE2 program, and in particular, the overhaul of the distribution network with lower commissions. Mobistar succeeded in trimming customer acquisition costs while also reinforcing its commercial footprint. The fall in interconnection fees and the reduced handset volumes also contributed to the considerable decline of direct costs.

Labour costs fell by 6.5 % in 2014, to 135.9 million euros, compared to 145.3 million euros in 2013. This positive evolution can be put down to the concrete ACE2 actions taken to improve the organizational efficiency, as well as the outsourcing of IT activities, which led to a net headcount reduction of 243 employees over the past 12 months. Notably, employees have also been redeployed from legacy activities in favor of growth and innovation driven activities, such as the cable initiative.

Indirect costs increased by 2.6 % in 2014, amounting to 274.0 million euros, compared to 267.1 million euros in 2013. However, this cost inflation was the direct result of higher operational taxes, including the pylon tax and other fees of 45.1 million euros in 2014 compared to 23.7 million euros in 2013. Thus, the underlying evolution of the indirect costs shows a reduction of 5.2 %.

EBITDA restatements (in Mio €)	FY 2014	FY 2013	Variation
Restated EBITDA	274.9	335.7	-18.1 %
- redundancy costs	-8.5	-9.8	-13.2 %
- other restructuring costs	-10.9	-8.8	24.8 %
EBITDA	255.4	317.1	-19.5 %

Mobistar's 2014 EBITDA of 255.4 million euros compares to an EBITDA of 317.1 million euros in the previous year. The EBITDA margin made up 22.9 % of service revenues, compared to 25.3 % a year ago.

Mobistar's 2014 EBITDA included: 1/ 8.5 million euros in redundancy costs to reduce the headcount, 2/ 6.5 million euros in restructuring costs related to the outsourcing of Mobistar's IT activities, including IT development and operations recorded in the third quarter, and 3/ 4.4 million euros in restructuring costs related to the termination of certain distribution contracts, mainly recorded in the fourth quarter of 2014.

Depreciation and other expenses

The 2014 figure for depreciation and other expenses stood at 194.5 million euros, up by 6.2 million euros on 2013. This can be attributed to the increased investment in the amortization of the 4G licence, the mobile radio network and network transmission. The figure for depreciation and other expenses in the fourth quarter of 2014 totalled 47.7 million euros, compared to 51.0 million euros in the same period of 2013.

EBIT

Consolidated EBIT totalled 60.9 million euros in 2014, compared to 128.7 million euros recorded the previous year. The consolidated EBIT margin in 2014 amounted to 5.5 % of service revenues, compared to 10.3 % in 2013. In the fourth quarter, the consolidated EBIT was nearly break-even.

Financial results

The net financial result amounted to -8.8 million euros in 2014, compared to -7.9 million euros a year ago. The increase in interest expenses was mainly the result of higher outstanding borrowings, following the 800 MHz spectrum payment at the end of 2013.

Taxes

Tax expenses amounted to 8.8 million euros in 2014 compared to 33.4 million euros in 2013. The effective tax rate came out at 16.9 %, 10.8 points below the effective tax rate of 27.7 % in 2013. Given the lower pre-tax earnings in 2014, the absolute amount of tax expenses has fallen considerably. In addition to this, and given Mobistar's high investment level, the company was able to benefit from an investment tax deduction of 12.5 million euros recorded in December 2014. The Walloon Region pylon tax has been considered as a non-tax deductible professional expense.

Net profit

Mobistar's consolidated net profit amounted to 43.3 million euros in 2014, compared to 87.4 million euros last year, largely due to a lower EBITDA and higher depreciations. The net profit over service revenue margin amounted to 3.9 % in 2014, compared to 7.0 % in 2013. The net profit per share stood at 0.72 euro in 2014, compared to 1.46 euro in the previous year.

3.3 Consolidated statement of financial position

The consolidated statement of financial position amounted to 1,443.9 million euros on December 31, 2014, compared to 1,449.9 million euros at the end of the previous financial year.

Non-current assets amounted to 1,200.5 million euros at the end of 2014, compared to 1,171.1 million euros at the end of 2013. This increase is the result of the net balance of lower intangible assets, due to the normal linear depreciation of the spectrum portfolio and higher tangible assets linked to the accelerated roll-out of 4G technology within the network. Current assets decreased from 278.8 million euros at the end of 2013 to 243.3 million euros at the end 2014, mainly due to a reduction in trade receivables.

Non-current liabilities decreased from 619.7 million euros at the end of 2013 to 167.5 million euros at the end of December 2014. This is the result of the long-term credit facility for an amount of 450 million euros that will mature at the end of 2015. Current liabilities increased from 493.0 million euros at the end of 2013 to 896.0 million euros at the end of 2014. Excluding the rebalancing from long- to short-term debt, the current liabilities decreased mainly due to a decrease in trade payable.

Compared to the end of 2013, net financial debt decreased by 20.2 million euros to 536.7 million euros at the end of 2014. The net financial debt/restated EBITDA ratio amounted to 2.0x, in comparison with 1.7x a year ago, while the net financial debt/ EBITDA ratio amounted to 2.1x, compared to 1.8x in 2013.

3.4 Consolidated cash flow

At the end of 2014 the operational cash flow amounted to 40.1 million euros, compared to -1.9 million euros one year before. The organic cash flow amounted to 29.7 million euros in 2014, marking an increase of 88.8 million euros on the -59.1 million euros realized last year. The variance in the 2014 organic cash flow stems from a combination of several factors, the most important of which are listed below:

• a negative variance from 'adjusted result of operating activities' (-61.2 million euros), driven by the lower EBITDA,
• a negative variance in the change of working capital (-3.2 million euros), related to trade receivable,
• a positive variance in the acquisition of tangible and intangible assets (+103.7 million euros) given the 120.0 million euros 4G licence fee paid in full in 2013,
• a positive variance in tax payment (+ 46.4 million euros).

Mobistar invested 215.3 million euros in 2014, or 19.3 % of service revenues, compared to 199.0 million euros a year earlier (i.e. excluding the 120 million euros paid in 2013 for the 800 MHz spectrum). The amount invested in the fourth quarter of 2014 stood at 76.9 million euros, or 27.7 % of service revenues. The higher 2014 capex is driven by the increase in 4G related network investments, but is also due to the purchase of materials needed for the shop refit. Nearly three quarter of the total 2014 capex was network related and, compared to last year - which was already a peak year for network investments - Mobistar invested 5.5 % more in 2014.

Mobistar is well on track to exceed its planned 4G network deployment targets. Based on the most recent network drive test, performed by independent agency Commsquare, Mobistar remains the undisputed leader in indoor and outdoor 4G coverage. At the end of 2014, national 4G outdoor coverage reached 88 %. Mobistar is also leading on 3G coverage, especially indoor, which directly translates into very good performance on mobile data KPIs. Furthermore, in terms of voice metrics, Mobistar remains the undisputed leader for all metrics.

Thanks to Mobistar's accelerated 4G deployment strategy, coupled with the most attractive range of mobile devices, 4G increasingly proves to be a strong growth lever, with high adoption rate and increased usage boosting ARPU expansion. At the end of 2014, Mobistar recorded nearly 500,000 active 4G users, making up approximately 16 % of its postpaid & prepaid customer base.

Throughout 2014, investment made by Mobistar, particularly in the 4G network, has really boosted the network's perception within the residential population, as well as increasingly among large corporates and small- and medium-sized companies.

3.5 Activities of the Mobistar group by segment

In greater detail, the breakdown of Mobistar group's activities are the following:

3.5.1. Activities in Belgium

Key financial figures of Mobistar S.A.	Full Year 2014	Full Year 2013	Variation
ARPU(9)(€/month/active customer)	24.3	24.0	+1.0 %
Service revenues(10) (million €)	1 065.6	1 190.9	-10.5 %
Of which Mobile	975.2	1 067.2	-8.6 %
Of which Non-Mobile	90.4	123.7	-26.9 %
Total turnover (million €)	1 198.2	1 401.0	-14.5 %
Key operating figures of Mobistar S.A.	Full Year 2014	Full Year 2013	Variation
Total number of connected SIM cards	5 472 496	5 075 479	+7.8 %
Total number of active customers (mobile telephony, IEW)	3 041 652	3 170 056	-4.1 %
Total number of active M2M SIM cards	873 568	695 691	+25.6 %
Total number of MVNO customers (mobile telephony,
incl. full MVNO)	1 557 276	1 209 732	+28.7 %
Total number of mobile Internet customers	111 113	115 564	-3.9 %
Total number of ADSL customers	33 568	47 202	-28.9 %
Total number of digital TV customers	0	0	na
Total number of active fixed telephone lines(11)	215 684	237 881	-9.3 %

Mobile activities

Market Review

The Belgian market remains highly competitive, with three mobile network operators and 37 active mobile virtual network operators. In 2014, 5 MVNO have decided to stop their mobile activities. However, the remaining players still serve almost a quarter of the total Belgian SIM base, and are slightly more weighted towards prepaid customers (e.g. ethnic segment) than postpaid customers (e.g. convergent customers).

Overall, pricing remained relatively stable throughout the year, despite some volatility in the mid-range tariff plans, especially in the fourth quarter of 2014. The last quarter of the year has been intense with the typical end of year campaigns in addition to an increased communication spending of one of the converged players.

Financial Review

Mobistar's blended ARPU increased to 24.3 euros in the fourth quarter of 2014 compared with the 23.9 euros in the previous quarter, and is increasing for the first time in more than three years with 1.0 % year-on-year. This strong ARPU recovery was completely driven by an improvement in the postpaid segment. This improvement was most notable in the residential segment, but the business segment ARPU also saw a small increase. In both cases, postpaid ARPU benefited from 4G data usage, leading to a greater number of top-ups (8 times more in 2014 compared to 2013) and an increase in higher-value tariff plans (an increasing number of customers reaching 80 % or more of their data bundle).

Mobile service revenues in Belgium declined by 8.6 % in 2014 to 975.2 million euros from 1,067.2 million euros in 2013. Excluding a EU roaming impact of 22.2 million euros, Mobistar's mobile service revenues in Belgium would have declined by 6.5 % compared to the same period last year, mainly due to the impact of price reductions implemented in 2013 and the lower customer base. The 2014 fourth quarter mobile service revenues amounted to 245.0 million euros, a year-on-year decline of 1.5 %. However, excluding the EU roaming impact, mobile service revenues would have been up a by a small 0.8 % year-on-year.

Operational Review

Mobistar's Belgian retail customer base ended the year positively with an increase of 49,473 retail customers in 2014. The fourth quarter in particular showed a solid increase of 23,617 compared to the end of the previous quarter. Throughout 2014, all major customer segments experienced positive business momentum.

In addition to evolving its retail customer base, Mobistar's number of new MVNO customers increased by 347,544. This implies that Mobistar saw a greater increase in its retail customer base than its MVNO customers, which grew by 23,617 and 4,873 respectively in the fourth quarter.

Mobistar extended its lead in Belgium over other mobile network operators towards the end of the year, with the number of connected SIM cards on its network reaching 5,472,496, leading to a year-on-year increase of 397,017.

Fixed and convergent activities

Market Review

The competitive environment in the fixed telecommunication market has become even more favourable for DSL and cable incumbents. In the residential fixed market, one of the last alternative operators was forced to retreat. In the corporate fixed market, the historical incumbent, identified as a SMP operator, continues to take advantage of its dominant position, leaving little or no room for alternative operators.

Financial Review

Mobistar's non-mobile service revenues amounted to 90.4 million euros at the end of 2014, compared to 123.7 million euros at the end of last year, a decrease of 33.3 million euros. This is the direct result of lower broadband and wholesale carrier revenues. The start-up costs incurred with the launch of the cable amounted to 4.6 million euros in 2014, including the regulated fees.

Operational Review

At the end of 2014, Mobistar had a total of 33,568 ADSL customers, representing a decrease of 28.9 % on the total of 47,202 in the previous year. The number of active fixed telephone lines declined by 22,204 from 237,881 at the end of 2013 to 215,684. In both cases, the decline is the consequence of a suspension in the commercial actions of DSL services in 2013, as natural churn is not compensated by new additions.

3.5.2. Activities in Luxembourg (Orange Communications Luxembourg S.A.)

Key financial figures of Orange Communications Luxembourg S.A.	Full Year 2014	Full Year 2013	Variation
Service revenues (million €)	51.1	65.3	-21.7 %
Total turnover (million €)	62.3	75.6	-17.5 %
Key operating figures of Orange Communications Luxembourg S.A.	Full Year 2014	Full Year 2013	Variation
Total number of active customers (mobile telephony)	95 641	102 179	-6.4 %
ARPU (€/month/active customer)	37.1	50.0	-25.8 %

Market Review

The competitive environment of the telecommunications market in Luxembourg has remained unchanged. As of February 2014, the newly introduced mobile termination rates had a significant impact on the mobile service revenues in the country.

Financial Review

The service revenues of Orange Communications Luxembourg S.A. totalled 51.1 million euros at the end of 2014, a year-on-year decline of 21.7 %. Excluding the 11.2 million euros MTR impact and 4.1 million euros EU roaming impact, service revenues would have reached 66.4 million euros in 2014, an increase of 1.8 %. The total turnover of 2014 amounted to 62.3 million euros, a decrease of -17.5 % compared to 75.6 million euros a year earlier, again excluding the regulatory impact Orange Communications Luxembourg S.A. would have recorded a 2.8 % growth. In particular in the last quarter of 2014, it benefitted from a solid increase in handset sales.

Operational Review

On 31 December 2014, Orange Communications Luxembourg S.A. had 95,641 active mobile telephone customers, a decrease of 6,538 on the end of last year entirely due to the decrease of the prepaid customer base. At the end of 2014, 38.7 % of the residential postpaid customer base was 4G connected. In addition, the introduction of a new mobile portfolio and the convergent services with TV, reflect the growing acceptance of data intensive applications and video content services. Orange Communications Luxembourg S.A. covers 85 % of the population with its LTE network at the end of 2014. LTE consumption increased eightfold in less than a year and is now at the same level as its customers' 3G consumption.

4. Financial instruments, financial risks management objective and policy

No change has occurred in comparison to the information contained in the 2013 annual report (p. 114).

5. Disputes

The information relating to disputes contained in the 2013 annual report and in the 2014 quarterly reports has been modified as follows (impact on the consolidated figures per 31 December 2014 is explained case by case below):

Masts: The Court of Cassation confirmed in its judgments on 30 March 2012 the Constitutional Court´s interpretation of article 98 of the Act of 21 March 1991. The total amount of taxes charged, plus default interest calculated at the legal rate, amounts to 94.1 million euros, of which 27.1 million euros correspond to the financial year 2014. This aggregated amount is disputed in court.

Walloon tax on masts, pylons or antennas: The Walloon region has implemented by a Decree on December 11, 2013 a yearly tax on masts, pylons or antennas for mobile telecommunication as from 1 January 2014. This tax amounts to 8,000 euros per site (yearly indexed as from 2015). Moreover Walloon municipalities are entitled to establish additional surcharges of maximum 100 % of the above described tax. Mobistar introduced on June 20, 2014 a request for annulment at the Constitutional Court against the Decree. Mobistar has received tax bills for this tax dated 22 December 2014 and will introduce a fiscal objection within the legal period.

The Walloon Decree of 12 December 2014, sustaining the above described Walloon tax for 2015 and following years, was published in the Belgian Official Gazette on 29 December 2014.

Abuses of dominant position by the Belgacom Group: Regarding the abuse of dominance by Belgacom in the period from 1999 to 2004 on the mobile market, the new experts appointed in January 2014 issued a draft intermediary report at the end of September 2014. Mobistar and Base asked for the removal of the report to the Commercial Court. In the appeal proceedings, pleadings have taken place until end November 2014. A final decision is expected end February 2015. On 19 September 2014, the dismissed experts lost their appeal against the replacement decision. They lodged a cassation appeal on 5 January 2015 to challenge the total reimbursement of the provisions paid.

Regulation of the cable networks: In the appeal cases against the market analysis decisions of July 2011, pleadings took place in January and February 2014. On 12 November 2014, the Court of Appeal rejected Telenet's attack of the market analysis decision. It confirmed the cable opening decision but annulled the clauses of the decision forbidding access to digital TV and internet for Belgacom. A decision on the comparable appeals by Tectéo, Brutélé and Numéricable is expected in the first quarter of 2015.

In February 2014 Mobistar decided to appeal against the regulators' cable wholesale pricing decisions of 11 December 2013. It also decided to intervene in the appeals launched by the cable operators against the same decisions, as well as to intervene in the appeal cases launched by the same cable operators against the decisions on the qualitative aspects of the cable wholesale reference offers of 3 September 2013. Since the decision of 12 November 2014, the parties have been discussing a new timetable.

In the proceedings on the merits initiated by Mobistar in March 2014 against Tecteo and Brutélé to force them to comply with the regulatory obligations, a timetable for brief exchanges has been fixed. Pleadings are expected in June 2015.

Mobile termination rates: On 24 September 2014, the Brussels Court of Appeal, based on the decision of the Constitutional Court of 30 May 2013, decided to maintain the effects of the annulled 29 June 2010 decision on MTR until 30 June 2015.

Telecom law – Social tariffs: The Constitutional Court referred the case to the European Court of Justice for a prejudicial ruling in December 2013. A decision from the European Court of Justice is expected during the first semester of 2015.

6. Significant events after the end of 2014

No significant events occurred after the end of 2014.

7. Trends

Mobistar is entering 2015 with renewed optimism as the fruits of past investments materialize, while opening-up new opportunities. Mobistar continues to commit to delivering the best mobile voice, broadband and customer experience, with the largest network coverage, in Belgium and Luxembourg.

Throughout 2014, Mobistar has taken determined measures to regain commercial momentum and reversed the trends in its key financials. In 2015 Mobistar aims at stabilizing its financials in spite of still very challenging market conditions and consequently reiterates the same guidance range as last year; i.e. a restated EBITDA of between 260 and 280 million euros excluding any expenses related to the cable opportunity.

The guidance range includes the revenue and EBITDA impact of the existing regulatory framework of 14.2 and 9.7 million euros respectively, i.e. the impact of lower EU roaming tariffs in the first half of 2015 for both Belgium (resp. 10.0 and 8.1 million euros revenue- and EBITDA impact) and Luxembourg (resp. 2.1 and 1.1 million euros) and the annualization in January 2015 of the lower mobile voice interconnection rates and the 50 % reduction in SMS interconnection rates in Luxembourg (resp. 2.1 and 0.5 million euros revenue- and EBITDA impact).

The provided guidance range is based on the current market, tax and regulatory context.

Mobistar will continue to invest in the roll-out of its 4G network. Before the end of 2015, Mobistar's accelerated 4G roll-out program should be completed and hence 2015 capital expenditure should come out well below the 2014 level.

8. Updated financial framework

At the end of 2014, Mobistar's restated net financial debt-to-EBITDA ratio12 amounted to 2.0x, a result of the decision taken by Mobistar's management and Board of Directors to position the company as the best mobile network operator and leader in 4G/LTE. This led to it becoming the undisputed network leader in terms of coverage and voice quality, while at the same time adapting to market conditions and preparing the company for future growth initiatives.

Mobistar is initiating the preparations to refinance its existing Revolving Credit Facility with Atlas Services Belgium S.A. (100 % Orange S.A. subsidiary) of 450 million euros, which is expiring on 31/12/2015. This should allow Mobistar to announce the completion of this refinancing before the publication of its 2015 first-half results. The refinancing should increase both its financial flexibility and the average maturity of its borrowings.

Mobistar's financial policy prioritizes the maintenance of an adequate level of cash flow for investment and selffinancing in order to support future growth. Hence, the objective of Mobistar's Management and Board of Directors is to keep the restated net financial debt-to-EBITDA ratio below 2.0x. Within this framework, the Board of Directors will propose the General Assembly of May 6, 2015 to refrain from paying a dividend for the 2014 financial year.

9. Financial calendar

1-Apr-15	Start blackout period
23-Apr-15	Financial results Q1 2015 (7:00 am) – Press release
6-May-15	Annual General Meeting
1-Jul-15	Start blackout period
24-Jul-15	Financial results Q2 2015 (7:00 am) – Press release
1-Oct-15	Start blackout period
20-Oct-15	Financial results Q3 2015 (7:00 am) – Press release

10. Conference Call & webcast details

Date:	4 February 2015
Time:	14:00 (CET), 13:00 (UK), 10:00 (US/NY)
Audio- & webcast:	http://corporate.mobistar.be/go/en/financial_information.cfm

If you are unable to attend the conference call or webcast, a replay will be available on the corporate section of the Mobistar website.

11. Shares

Share trading volumes and closing prices are based on trades made on NYSE Euronext Brussels.

	Full Year 2014	Full Year 2013
Trading of shares
Average closing share price (€)	14.87	15.62
Average daily volume	130 015	166 955
Average daily value (€)	1 927 201	2 573 997
Shares and market values
Total number of shares	60 014 414	60 014 414
Treasury shares	2 000	0
Outstanding shares	60 014 414	60 014 414
Closing price (€)	19.61	13.98
Market capitalisation (million €)	1 176 582 586	839 001 508

12. Statutory auditor´s procedures

The statutory auditor has confirmed that the audit activities on the consolidated financial statements have been substantially completed and that no significant corrections have been identified that would have to be made to the financial information contained in the press release.

13. Glossary

• 1) Retail customer base refers to Mobistar's branded customers. It includes Mobistar's postpaid, prepaid, internet everywhere and machine-to-machine SIM card population. It contrasts with Mobistar's wholesale customer base which refers to the number of SIM cards of its MVNOs.
• 2) Source: Commsquare drive test published in January 2015.
• 3) Belgacom reported 5,329,000 active SIM cards in the third quarter of 2014, of which 455,000 were Free Data Cards that were given away to fixed customers, while KPN Belgium reported 3,038,860 active SIM cards.
• 4) The consolidation perimeter has evolved since June 30, 2014 and includes Mobistar S.A. (100 %), Orange Communications Luxembourg S.A. (100 %), Smart Services Network S.A. (100 %) and IRISnet S.C.R.L. (accounted for by equity method - 28.16 %).
• 5) EBITDA and restated EBITDA are financial aggregates not defined by IFRS. Restated EBITDA: EBITDA before restructuring and redundancy costs. For further information on the calculation of these aggregates and the reasons why Mobistar uses them, see page 8.
• 6) Weighted net profit per ordinary share (IFRS).
• 7) Operational cash-flow = EBITDA net investments, including 800 MHz spectrum fee.
• 8) Organic cash flow = net cash flow from operations, less acquisitions of tangible and intangible assets, plus proceeds from disposals of tangible and intangible assets.
• 9) Average Revenue Per User (excluding MVNOs and M2M cards). Note that since the first quarter of 2014 we have switched the calculation mode from a twelve month to a three month rolling basis.
• 10) Note that the segmentation has changed since the first quarter of 2014 as the intercompany transactions between Mobistar S.A. and MES S.A. are now integrated at segment level instead of previously at the group

level. The restatements for 2013 can be found at the end of the press release.

• 11) Note that the definition of the number of active fixed telephone lines has changed since the first quarter of 2014.
• 12) Restated net financial debt-to-EBITDA ratio is calculated as net financial debt divided by the restated EBITDA.

14. Accounting policies - Basis of preparation

The accounting policies and methods of computation adopted in the preparation of the condensed consolidated financial statements have been modified compared to those followed in the preparation of the consolidated financial statements for the year ended 31 December 2013:

• a. The presentation of the statement of comprehensive income has been aligned with the internal reporting format used by the management.
• b. The segment presentation of the statement of comprehensive income is now structured only by country.

The major changes are as follows:

• concerning the operating revenues, the turnover is now split between mobile and non-mobile service revenues, and handset sales.
• the operating expenses are now reported in three main aggregates:
• direct costs (including interconnection & customer access connectivity, expended inventories, commissions, content costs and bad debts);
• labor costs;
• indirect costs (including other commercial, IT and network, property and general expenses as well as other operating expenses and income).
• Restated EBITDA does not constitute a financial aggregate defined by IFRS as an element of measurement of financial performance and cannot be compared with similarly titled indicators from other companies. Restated EBITDA represents supplementary information and should not be considered a substitute for operating income. The reason why Mobistar is using this presentation is to facilitate comparison of operational performance between periods.

15. Declaration by the persons responsible

We, the undersigned, Jean-Marc Harion, CEO, and Ludovic Pech, CFO, declare that to our knowledge:

a) the financial statements drawn up in accordance with the prevailing accounting standards, give a faithful image of the assets, financial situation and results of the issuer and the companies included within its consolidation;

b) the management report contains an accurate overview of the business activities evolution, the results and the financial situation of the issuer and the companies included within its consolidation, and a description of the main risks and uncertainties they are confronted to.

Jean-Marc Harion Ludovic Pech CEO CFO

16. Condensed consolidated financial statements in accordance with IFRS

16.1 Condensed consolidated statement of comprehensive income (Mio €)

	31.12.2014	31.12.2013	Variation (%)
Mobile service revenues	1 024.9	1 129.1	-9.2%
Non-mobile service revenues	90.4	123.7	-26.9%
Handsets sales	133.9	208.4	-35.7%
Total turnover	1 249.2	1 461.2	-14.5%
Direct Costs	-564.4	-713.2	-20.9%
Labor Costs	-135.9	-145.3	-6.5%
Indirect Costs	-274.0	-267.1	2.6%
of which operational taxes and fees	-45.1	-23.7
Restated EBITDA	274.9	335.7	-18.1%
EBITDA	255.4	317.1	-19.5%
Depreciations	-194.5	-188.3	3.3%
Share of profits (losses) of associates	0.0	-0.1
EBIT	60.9	128.7	-52.7%
Financial result	-8.8	-7.9
Tax expense	-8.8	-33.4
Net profit of the period (*)	43.3	87.4	-50.5%
Profit attributable to equity holders of the parent	43.3	87.4	-50.5%
Consolidated statement of comprehensive income
Net profit for the period	43.3	87.4	-50.5%
Other comprehensive income	0	0
Total comprehensive income for the period	43.3	87.4	-50.5%
Part of the total comprehensive income attributable to equity holders of the parent	43.3	87.4	-50.5%
Basic earnings per share (in €)	0.72	1.46	-50.5%
Weighted average number of ordinary shares	60 014 414	60 014 414
Diluted earnings per share (in €)	0.72	1.46	-50.5%
Diluted weighted average number of ordinary shares	60 014 414	60 014 414

(*) Since there are no discontinued operations, the profit of the period corresponds to the result of continued operations.

16.2 Condensed consolidated statement of financial position (Mio €)

	31.12.2014	31.12.2013
ASSETS
Non-current assets
Goodwill	80.1	80.1
Intangible assets	345.2	380.2
Property, plant and equipment	761.3	700.0
Interests in associates	3.3	3.3
Other non-current assets	1.8	0.8
Deferred taxes	8.8	6.7
Total non-current assets	1 200.5	1 171.1
Current assets
Inventories	18.2	20.7
Trade receivables	193.4	215.1
Other current assets	24.2	29.2
Cash and cash equivalents	7.6	13.8
Total current assets	243.4	278.8
Total assets	1 443.9	1 449.9
EQUITY and LIABILITIES
Equity
Share capital	131.7	131.7
Legal reserve	13.2	13.2
Retained earnings	235.6	192.3
Total equity	380.4	337.2
Non-current liabilities
Interests-bearing borrowings	94.3	548.8
Provisions	71.1	69.6
Deferred taxes	2.1	1.3
Total non-current liabilities	167.5	619.7
Current liabilities
Interests-bearing borrowings	450.0	21.9
Trade payables	325.2	352.1
Employee benefits related liabilities	33.7	31.5
Current taxes payables	16.3	15.6
Deferred income	68.9	66.2
Other payables	1.9	5.8
Total current liabilities	896.0	493.0
Total liabilities	1 063.5	1 112.7
Total equity and liabilities	1 443.9	1 449.9

16.3 Condensed consolidated statement of changes in equity (Mio €)

	Share capital	Legal reserve	Retained earnings	Total equity
Balance as at 1 January 2014	131.7	13.2	192.3	337.2
Net profit for the period			43.3	43.3
Total comprehensive income for the period			43.3	43.3
Declared dividends			0.0	0.0
Balance as at 31 December 2014	131.7	13.2	235.6	380.4

	Share capital	Legal reserve	Retained earnings	Total equity
Balance as at 1 January 2013	131.7	13.2	212.9	357.8
Net profit for the period			87.4	87.4
Total comprehensive income for the period			87.4	87.4
Declared dividends			-108.0	-108.0
Balance as at 31 December 2013	131.7	13.2	192.3	337.2

16.4 Condensed consolidated cash flow statement (Mio €)

	31.12.2014	31.12.2013
Cash flows from operating activities
Profit before taxes	52.1	120.8
Non-cash adjustments for:
Depreciation, amortisation and impairment of fixed assets	194.5	188.3
Changes in long-term provisions	-0.1	0.2
Changes in provision for bad debt	-2.0	-3.9
Other non-cash expenses	-0.1	1.5
Interest income	-0.1	-0.4
Interest charges	7.1	6.0
Adjusted result of operating activities before net finance costs	251.3	312.5
Inventories	2.5	-0.1
Trade and other receivables	32.9	25.2
Trade and other payables	-18.2	-4.6
Net changes in working capital	17.3	20.5
Tax paid	-10.1	-56.5
Interests paid	-6.8	-5.1
Interests received	0.1	0.4
Net cash from operating activities	251.8	271.8
Cash flows from investing activities
Purchase of intangible and tangible assets	-215.3	-319.0
Debt associated to purchase of assets (increase +, decrease -)	-6.8	-14.2
Proceeds from sale of equipment	0.0	2.2
Reimbursement long-term loans granted	0.0	1.4
Net cash used in investing activities	-222.1	-329.6
Organic cash flow(1)	29.7	-59.1
Cash flows from financing activities
Short-term borrowings - net	-27.5	-0.7
Long-term borrowings - proceeds	0.0	196.9
Long-term borrowings - repayments	-4.5	-31.7
Others	-3.9	2.8
Dividends paid	0.0	-108.0
Net cash used in financing activities	-35.8	59.3
Net increase (+), decrease (-) in cash and cash equivalents	-6.2	1.5
Cash and cash equivalents at beginning of period	13.8	12.3
Cash and cash equivalents at end of period	7.6	13.8

(1) Net cash flow from operations less acquisitions of tangible and intangible assets, plus proceeds from disposals of tangible and intangible assets.

16.5 Segment information (Mio €)

2014	Belgium	Luxembourg	Interco elimination	Mobistar Group
Mobile service revenues	975.2	51.1	-1.5	1 024.9
Non-mobile service revenues	90.4	0.0	0.0	90.4
Handsets sales	132.5	11.2	-9.8	133.9
Total turnover	1 198.2	62.3	-11.3	1 249.2
Direct Costs	-541.6	-34.1	11.3	-564.4
Labor Costs	-126.8	-9.1	0.0	-135.9
Indirect Costs	-260.3	-13.7	0.0	-274.0
of which operational taxes and fees	-43.9	-1.2	0.0	-45.1
Restated EBITDA	269.5	5.4	0.0	274.9
EBITDA	250.0	5.4	0.0	255.4
Depreciations	-186.0	-8.5	0.0	-194.5
Share of profits (losses) of associates	0.0	0.0	0.0	0.0
EBIT	63.9	-3.1	0.0	60.9
Financial result	-8.7	-0.1	0.0	-8.8
Tax expense	-9.7	0.9	0.0	-8.8
Net profit of the period (*)	45.6	-2.3	0.0	43.3
Profit attributable to equity holders of the parent	45.6	-2.3	0.0	43.3

(*) Since there are no discontinued operations, the profit of the period corresponds to the result of continued operations.

2013	Belgium	Luxembourg	Interco elimination	Mobistar Group
Mobile service revenues	1 067.2	65.3	-3.3	1 129.1
Non-mobile service revenues	123.7	0.0	0.0	123.7
Handsets sales	210.2	10.3	-12.1	208.4
Total turnover	1 401.0	75.6	-15.3	1 461.3
Direct Costs	-689.8	-38.7	15.3	-713.2
Labor Costs	-137.4	-7.9	0.0	-145.3
Indirect Costs	-251.3	-15.7	0.0	-267.1
of which operational taxes and fees	-21.5	-2.2	0.0	-23.7
Restated EBITDA	322.4	13.2	0.0	335.7
EBITDA	303.8	13.2	0.0	317.1
Depreciations	-181.5	-6.8	0.0	-188.3
Share of profits (losses) of associates	-0.1	0.0	0.0	-0.1
EBIT	122.2	6.5	0.0	128.7
Financial result	-7.7	-0.2	0.0	-7.9
Tax expense	-32.6	-0.8	0.0	-33.4
Net profit of the period (*)	81.9	5.5	0.0	87.4
Profit attributable to equity holders of the parent	81.9	5.5	0.0	87.4

16.6 Quarterly results

			Quarterly figures 2013				FY 2013
			Q1	Q2	Q3	Q4
Subscriber base evolution
Mobistar S.A. Mobile customers (excl. MVNO, MATMA)		in thousand	3 375.9	3 330.8	3 244.3	3 170.1
	of which Postpaid	in thousand	2 312.6	2 301.3	2 256.5	2 221.8
	of which Prepaid	in thousand	1 063.3	1 029.5	987.8	948.3
Mobistar S.A. MATMA		in thousand	550.5	585.7	641.7	695.7
MVNO customers		in thousand	973.9	1 073.2	1 142.1	1 209.7
Orange Communications Luxembourg S.A. customers		in thousand	105.4	105.4	101.5	102.2
Total Mobistar Group		in thousand	5 005.7	5 095.1	5 129.6	5 177.7
ARPU evolution
Blended quarterly ARPU (incl. visitor roaming)(1)		in EUR/month	26.0	25.6	24.8	24.0
	Postpaid ARPU
	(excl. visitor roaming and IEW)	in EUR/month	30.1	29.7	29.0	27.7
	Prepaid ARPU
	(excl. visitor roaming and IEW)	in EUR/month	15.9	15.5	14.4	14.2
P&L
Service Revenues Mobistar Mobile		in Mio EUR	281.1	274.5	262.9	248.7	1 067.2
Service Revenues Mobistar/MES Fix/Data(2)		in Mio EUR	35.2	31.9	30.1	26.5	123.7
Service Revenues Orange Communications Luxembourg S.A.		in Mio EUR	16.5	17.4	15.6	15.8	65.3
Total Mobistar consolidated service
revenues(3)		in Mio EUR	332.0	322.9	307.8	290.2	1 252.9
Total Mobistar consolidated handsets sales		in Mio EUR	61.0	41.0	39.7	66.7	208.4
Total Mobistar consolidated turnover		in Mio EUR	393.0	363.9	347.5	356.9	1 461.3
Mobistar consolidated restated EBITDA		in Mio EUR	99.0	85.5	90.8	60.3	335.7
Mobistar consolidated EBITDA		in Mio EUR	98.7	82.2	89.1	47.1	317.1
		as a % of service revenues	29.7%	25.4%	29.0%	16.2%	25.3%
Total Mobistar consolidated net result		in Mio EUR	35.1	22.3	26.2	3.8	87.4
EPS calculated on the basis of the outstanding shares at the end of the quarter		in EUR/share	0.59	0.37	0.43	0.07	1.46
Diluted weighted average earnings
per share		in EUR/share	0.59	0.37	0.43	0.07	1.46
Total Mobistar consolidated CAPEX		in Mio EUR	31.2	37.7	46.8	203.3	319.0
		as a % of service revenues	9.4%	12%	15%	70%	25%
Organic cash flow		in Mio EUR	0.2	27.4	66.8	-153.5	-59.1

⁽¹⁾ The calculation mode has been switched from a 12 month rolling average to a quarterly basis.

⁽²⁾ The segmentation has changed as the intercompany transactions between Mobistar S.A. and MES S.A. are now integrated at segment level instead of previously at group level. 2013 figures have been restated accordingly.

⁽³⁾ After elimination of intercompany transactions.

Q1 Q2 Q3 Q4 Subscriber base evolution Mobistar S.A. Mobile customers (excl. MVNO, MATMA) in thousand 3 091.1 3 038.4 3 058.3 3 041.7 of which Postpaid in thousand 2 180.2 2 159.9 2 161.2 2 167.8 of which Prepaid in thousand 910.9 878.5 897.1 873.8 Mobistar S.A. MATMA in thousand 749.1 797.9 833.3 873.6 MVNO customers in thousand 1 310.6 1 509.1 1 552.4 1 557.3 Orange Communications Luxembourg S.A. customers in thousand 102.7 100.7 99.5 95.6 Total Mobistar Group in thousand 5 253.5 5 446.2 5 543.5 5 568.1 ARPU evolution Blended quarterly ARPU (incl. visitor roaming)(1) in EUR/month 23.4 23.9 23.9 24.3 Postpaid ARPU (excl. visitor roaming and IEW) in EUR/month 27.2 28.1 27.9 28.2 Prepaid ARPU (excl. visitor roaming and IEW) in EUR/month 13.8 14.1 13.6 13.4 P&L Service Revenues Mobistar Mobile in Mio EUR 240.3 246.2 243.7 245.0 975.2 Service Revenues Mobistar/MES Fix/Data(2) in Mio EUR 24.5 24.4 21.0 20.5 90.4 Service Revenues Orange Communications Luxembourg S.A. in Mio EUR 13.5 13.0 12.4 12.2 51.1 Total Mobistar consolidated service revenues(3) in Mio EUR 278.1 283.3 276.7 277.2 1 115.3 Total Mobistar consolidated handsets sales in Mio EUR 38.9 28.9 27.7 38.4 133.9 Total Mobistar consolidated turnover in Mio EUR 317.0 312.2 304.4 315.6 1 249.2 Mobistar consolidated restated EBITDA in Mio EUR 66.1 74.3 77.3 57.2 274.9 Mobistar consolidated EBITDA in Mio EUR 64.5 72.5 70.7 47.7 255.4 as a % of service revenues 23.2% 25.6% 25.6% 17.2% 22.9% Total Mobistar consolidated net result in Mio EUR 9.2 15.0 12.3 6.8 43.3 EPS calculated on the basis of the outstanding shares at the end of the quarter in EUR/share 0.15 0.25 0.21 0.11 0.72 Diluted weighted average earnings per share in EUR/share 0.15 0.25 0.21 0.11 0.72			Quarterly figures 2014				FY 2014
Total Mobistar consolidated CAPEX in Mio EUR 37.4 55.6 45.3 76.9 215.3 13.5% 19.7% 16.4% 27.7% 19.3%	as a % of service revenues
Organic cash flow in Mio EUR 11.6 1.5 23.1 -6.5 29.7

⁽¹⁾ The calculation mode has been switched from a 12 month rolling average to a quarterly basis.

⁽²⁾ The segmentation has changed as the intercompany transactions between Mobistar S.A. and MES S.A. are now integrated at segment level instead of previously at group level. 2013 figures have been restated accordingly.

Mobistar (EURONEXT BRUSSELS: MOBB) is one of the main actors on the telecommunications market in Belgium and Luxembourg. The company offers its residential customers postpaid and prepaid innovative mobile telecom products and services. On the business market, Mobistar operates DSL fixed network telephony and highspeed internet, acts as an integrated communications provider and offers a portfolio of mobility and connectivity services. Mobistar is also a wholesale provider, offering access to its infrastructure and service capabilities to its wholesale partners. Mobistar, with the Orange group as major shareholder, is listed on the Brussels Stock Exchange.

For further information, please contact:

Investor relations: e-mail: ir@mail.mobistar.be Siddy Jobe: +32 (0)2 745 80 92

Press service: 32 (0)473 94 87 31 - http://corporate.mobistar.be/press

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