Proximus SA — Earnings Release 2024

Feb 28, 2025

Brussels, 28 February 2025, 7.00 CET – Regulated information

Proximus Group financial results – Fourth quarter and full-year 2024

After another operationally very strong quarter, Proximus Group delivers on 2024 guidance and achieves 2025 EBITDA target a year ahead of schedule

• Delivering on FY'24 guidance, incl. Domestic revenue +3.4%, Domestic EBITDA +2.8% and Group EBITDA +3.1%.
• Very strong Domestic commercial performance sustained in Q4: Mobile postpaid +30,000, Internet +14,000, convergent customers +14,000, net loss in TV base limited to -7,000.
• Fiber footprint scaled to over 2.2 million fiber homes and businesses passed (37%), and more than 42% Fiber coverage in the Street.
• Q4 '24 Domestic revenue +3.2%, with Services revenue of Residential unit up by +4.1% and Business unit +0.2% YoY.
• Nearly stable Q4 '24 Domestic EBITDA (-0.1% year-on-year).
• Proximus Global EBITDA +6.6% pro-forma, driven by +16.1% Communication & Data Direct margin growth.
• Proximus Group Q4'24 underlying revenue +2.9% YoY and Group EBITDA +0.5%, on a pro forma basis.
• Full-year 2024 Capex at EUR 1,355 million, adjusted FCF at EUR 58 million.
• Board proposes gross dividend over 2024 result of EUR 0.60/share and intends to keep stable dividend over the 2025 result.
• Guidance 2025: YoY Domestic revenue and EBITDA broadly stable, Global EBITDA around +20%, Group EBITDA around +2%, Capex c. EUR 1.3 billion, stable organic FCF (excl. asset sales). Net Debt/EBITDA to be around 3.0X.

Read the full Q4 Financial Report here

Highlights Q4 2024

• Proximus' Domestic segment closed the fourth quarter of 2024 with continued strong growth in Mobile Postpaid, +30,000 net adds, including +27,000 for the Residential unit. Proximus' Fiber footprint reached 2,224,000 homes and businesses passed end-December 2024, supporting a continued robust growth for its Internet base (+14,000). Residential convergent offers grew by +14,000 customers to a total of 1,172,000, a +5.3% year-onyear increase. End-December 2024, the number of active Residential and Business Fiber lines totaled 564,000, of which +45,000 were added during this past quarter. The customer base for TV and Fixed Voice sees continued erosion, down respectively by -7,000, and -40,000 subscriptions.
• Proximus' fourth quarter 2024 Domestic underlying revenue was up by +3.2% to EUR 1,234 million. The Residential unit posted a +3.2 % revenue increase, including a +4.1% growth in Customer Services revenue reflecting the strong commercial net adds performance. Convergent revenue was up +7.8%, driven by further customer growth and the January 2024 inflation-based price adjustment. The Business unit revenue was up by +2.1% year-on-year, supported by a +12.2% rise in Products revenue. Business services revenue was up +0.2% compared to the prior year, including a strong quarter for IT services, up by +8.4%. This offset the steady erosion in Fixed Voice revenue and lower revenue from Mobile Services, impacted by the loss of the Flemish Government contract and price competition. Proximus' Wholesale unit posted nearly stable revenue (-0.5%), with the increase in Wholesale Services revenue by +17.9%, fully offsetting the EUR 7 million reduction in Interconnect revenue (no margin impact).
• The fourth quarter 2024 Domestic EBITDA totaled EUR 392 million, fairly stable (-0.1%) to the same period in 2023, with the growth in Direct margin offsetting higher OpEx. Year-on-year, the OpEx was impacted by the consolidation of Fiberklaar, cross charging of Mobile pylons (EBITDA-neutral), higher performance-related HR provisions, customer related OpEx, and wage and other inflationary effects, which were for a large part offset by the running cost efficiency program.
• On pro-forma basis, Proximus Global revenue grew +2.7% (+1.9% in constant currency) to EUR 473 million. The sequential change from the decline in prior quarters was driven by a strong year-on-year increase from Communications & Data revenue, up by 7.5%, primarily related to a strong quarter for CPaaS, SMS and CPaaS

Omnichannel solutions. This along a continued strong growth in Mobility services, travel and e-sim solutions. On pro-forma basis, Proximus Global¹ posted for the fourth quarter 2024 a +10.1% year-on-year Direct margin growth to EUR 131 million (+9.3% in constant currency), resulting in a +6.6% growth in EBITDA to EUR 45 million.

• In aggregate, the Proximus Group underlying revenue totaled EUR 1,689 million for the fourth quarter of 2024, up +2.9% pro forma (+10.2% reported), driven by an increase both in Domestic and Proximus Global revenue. The underlying Group EBITDA totaled EUR 437 million, a year-on-year increase by +0.5% pro forma (+3.8% reported).
• The Proximus Group booked CapEx for full year 2024 totaled EUR 1,355 million, excl. football broadcasting rights and spectrum. The increase from 2023 (EUR 1,329 million on pro-forma basis) primarily reflects the consolidation of Fiberklaar. Customer-related investments to connect and activate Fiber customers also rose year-on-year. Moreover, the Mobile network (RAN) consolidation progressed as planned, led by the joint-operation Mwingz, with CapEx in line with the pace of the mobile site consolidation.
• For the full-year 2024, the reported Free Cash Flow for Proximus Group stood at EUR -727 million, including M&A transactions costs related to Route Mobile and Fiberklaar. Adjusted for this, the Free Cash Flow was EUR 58 million for 2024, compared to EUR 61 million for 2023. The positive impact from the higher Group underlying EBITDA (EUR +93 million) and lower equity injections following the consolidation of Fiberklaar, was offset by a negative change in working capital, higher interest paid, higher income tax paid and higher cash CapEx.

Guillaume Boutin, CEO of the Proximus Group:

"I'm really pleased to announce a strong closing of 2024, fully delivering on our guidance for the year. Regarding the Domestic market, I'm incredibly proud of our sustained strong commercial performance throughout the year. Proximus has shown its continued ability to win in the Belgian market, despite increasing competition. Our sustained commercial performance and ability to manage value across our brand portfolio has resulted in a strong increase in Domestic revenue, up for the year 2024 by 3.4%. In combination with the execution of our cost efficiency program, we delivered a 2.8% increase in Domestic EBITDA for 2024, as such achieving our bold2025 target EBITDA one year earlier than projected.

Key drivers of our success remain our multi-brand approach, which increasingly proves its strategic value, combined with network superiority. Our mobile network provides 5G indoor coverage to close to 70% of Belgium's population and is recognized for its premium quality and fastest speeds. On the fixed network we have substantially scaled our Fiber coverage in 2024, passing over 2.2 million homes and businesses with Fiber by year-end. In the dense areas of Belgium, i.e. centers of cities and municipalities, more than 80% now have access to Fiber, with for the Brussels Capital Region a coverage of 75%. For mid-dense areas, we continue to work towards concluding the fiber collaboration negotiations. For Flanders, we think it is realistic that we will come to a conclusion by the end of Q2.

Our international activities delivered a 6.2% year-on-year EBITDA increase on pro forma basis, showing the initial successes of our strategy. With the launch of Proximus Global we are marking a significant step in our journey to become a worldwide leader in digital communications, while preparing the organization for a trajectory towards future value crystallization. We ended the year strongly, with a 16% direct margin growth for Communications and Data services, performing at the top of market growth Some of our key success factors are our presence in highgrowth markets, Omnichannel solutions, partnerships and the traction of IoT solutions.

We have now entered the final year of our bold2025 strategy in a great position, with key strategic metrics well on track. With the new entrant having launched mid-December, we have seen the initial effects broadly unfolding in line with our expectations. While we acknowledge the headwinds linked to the new market structure, we consider ourselves very well positioned to compete thanks to the investments in our networks, brands, convergent offers and customer satisfaction. As per plan, we launched a multi-brand reaction at stable headline pricing to preserve value in the market, mitigating in the short term the impact on our retail business, while having protection through the wholesale agreement. Mid-term we expect the competitive environment to return to more stable grounds, as seen in other markets.

Despite this challenging market structure in 2025, we expect to keep the Domestic revenue and EBITDA broadly stable year-on-year. For Proximus Global we expect a strong EBITDA growth of around 20% compared to 2024, on pro-forma basis, reflecting a continued organic growth while synergies will accelerate. The Proximus Group

EBITDA therefore is expected to grow around 2%. Regarding the booked Capex excluding football and spectrum rights, we expect for 2025 to be close to EUR 1.3 billion. Seeing our standalone Fiber build in the dense areas is largely completed, we consider the 2024 booked capex as the peak. On organic basis, i.e. excluding any proceeds from the ongoing sale of assets, we expect the adjusted Group FCF for 2025 to remain broadly stable to 2024. We reiterate our ambition to deliver over EUR 500 million proceeds by 2027 from selling non-core assets, to support the Group FCF throughout the elevated investment levels for Fiber build. On top of the EUR 30 million received in 2023, the closing of the announced transactions end-2024 will bring EUR 238 million in proceeds over the next two months, while the sale of the Proximus headquarter building is in its final stages before signing.

Regarding the dividend, I'm pleased to inform you that the Board of Directors approved to propose to the Annual General Shareholders' Meeting to return a gross dividend of EUR 0.60 per share over the result of 2024, of which EUR 0.10 per share remains to be paid in April 2025. Furthermore, in line with the 3-year dividend policy, it's expected to return over the result of 2025 a stable gross dividend of EUR 0.60 per share.

Finally, as announced on the 7th of February, I will leave the Proximus Group by mid-May. Until that day I'm fully dedicated to the execution of Proximus strategy, and confident that I will leave behind a strong and successful Proximus, well-equipped to address future challenges."

Proximus Group Board of Directors:

"Proximus has started the search for the new CEO and has appointed the executive search firm Heidrick & Struggles to assist the Board in this process. The search will include both internal and external candidates. Final candidates will be submitted to an in-depth assessment. The Board will decide on the new CEO on basis of a recommendation of the Nomination Committee that will steer the process. The Board has full confidence in the leadership team that will ensure the continuity of the strategy. The current CEO will remain in his role until May 15. For Proximus Global the Board decided to introduce a four eyes principle with Mr. Rajdip Gupta stepping up. Because it is unlikely that the nomination process will be ended before that date, the Board will decide and communicate in the very near future on an interim leadership."

Key figures

Operationals ('000)	Net adds in the quarter			Park at end of quarter
	2023	2024	% Change	2023	2024	% Change
Fiber
Homes Passed	169	143		1,748	2,224	27.2%
Activated retail lines	44	45		391	564	44.4%
Residential customers
Convergent	19	14		1,112	1,172	5.3%
Group (subscriptions/SIM cards)
Internet	16	14		2,267	2,313	2.0%
TV	-8	-7		1,674	1,630	-2.6%
Fixed Voice	-39	-40		1,651	1,498	-9.3%
Mobile Postpaid (excl. M2M)	38	30		4,973	5,095	2.5%
M2M	26	34		4,247	4,364	2.8%
Prepaid	-20	-18		548	473	-13.7%

Financials (EUR million)	4th Quarter			Year-to-date
	2023	2024	% Change	2023	2024	% Change
Group Revenue (underlying)	1,534	1,689	10.2%	6,042	6,430	6.4%
of which Domestic	1,196	1,234	3.2%	4,665	4,826	3.4%
of which Global	352	473	34.3%	1,442	1,672	16.0%
Group Direct margin (underlying)	971	1,031	6.2%	3,849	4,063	5.6%
of which Domestic	878	905	3.0%	3,481	3,608	3.6%
of which Global	95	131	37.8%	381	468	22.7%
Group Expenses (underlying)	-550	-594	8.0%	-2,091	-2,213	5.8%
of which Domestic	-486	-513	5.5%	-1,845	-1,926	4.4%
of which Global	-67	-86	29.1%	-260	-299	15.1%
Group EBITDA (underlying)	421	437	3.8%	1,757	1,850	5.3%
as % of revenue	27.4%	25.9%	-1.6 p.p.	29.1%	28.8%	-0.3 p.p.
of which Domestic	392	392	-0.1%	1,636	1,682	2.8%
of which Global	29	45	58.1%	121	169	39.2%
Group EBITDA (reported)	441	401	-9.1%	1,786	1,950	9.2%
Net income	90	80	-11.5%	357	456	27.8%
Accrued capex (excl. spectrum & football rights)	421	481	14.3%	1,325	1,355	2.3%
FCF (adjusted)	96	10	-89.8%	61	58	-6.2%
Adjusted net fin position (excl. lease liabilities)	n.r.	n.r.		-3,131	-3,912	-24.9%

• Group revenue, Direct margin, Operating Expenses and EBITDA include intersegment eliminations • Adjusted FCF excludes M&A impacts but includes Fiber equity injections.

Key financials – compared to 2023 on pro forma basis

Financials (EUR million)	4th Quarter Pro forma*			Year-to-date Pro forma*
	2023	2024	% Change	2023	2024	% Change
Group Revenue (underlying)	1,642	1,689	2.9%	6,331	6,430	1.6%
of which Domestic	1,196	1,234	3.2%	4,665	4,826	3.4%
of which Global	461	473	2.7%	1,731	1,672	-3.4%
Group Direct margin (underlying)	995	1,031	3.6%	3,912	4,063	3.9%
of which Domestic	878	905	3.0%	3,481	3,608	3.6%
of which Global	119	131	10.1%	445	468	5.2%
Group Expenses (underlying)	-560	-594	6.1%	-2,117	-2,213	4.5%
of which Domestic	-486	-513	5.5%	-1,845	-1,926	4.4%
of which Global	-77	-86	12.1%	-286	-299	4.7%
Group EBITDA (underlying)	435	437	0.5%	1,795	1,850	3.1%
as % of revenue	26.5%	25.9%	-0.6 p.p.	28.4%	28.8%	0.4 p.p.
of which Domestic	392	392	-0.1%	1,636	1,682	2.8%
of which Global	42	45	6.6%	159	169	6.2%
Group EBITDA (reported)	455	401	-11.8%	1,824	1,950	6.9%
Accrued CapEx (excl. spectrum & football rights)	423	481	13.9%	1,329	1,355	2.0%

Note: Group revenue, Direct margin, Operating Expenses and EBITDA include intersegment eliminations

*2023 includes the results of Route Mobile as of May to allow for a like-for-like comparable base. As from May 2024, Route Mobile is consolidated in the Proximus Group

Meeting all metrics of 2024 full-year guidance

	FY23	FY24	FY24	FY24	FY24
Guidance metric	Actuals	Outlook (23/02/2024)	Outlook (26/07/2024)	Outlook (25/10/2024)	Actuals
Underlying Domestic revenue	EUR 4,665 million	Growing up to 1%	Growing up to 2.5%	Growing up to 3%	+3.4% YoY
Underlying Domestic EBITDA	EUR 1,636 million	Growing up to 1%	Growing up to 2%	Growing up to 3%	+2.8% YoY
Global Direct margin (constant currency)	EUR 445 million	-	Mid-to-high single digit growth	Mid-single digit growth	+5.3% YoY
Underlying Group EBITDA	EUR 1,795 million	Growing up to 1%	Growing up to 2.5%	Growing up to 3%	+3.1% YoY
CapEx (booked, excl. Spectrum & football rights)	EUR 1,329 million	Around EUR 1.2 billion	Around EUR 1.36 billion	Around EUR 1.36 billion	EUR 1,355 million
Net debt / EBITDA (As per S&P definition)	2.6x	Around 2.7x	Around 3.1x	Around 3.1x	2.9x

Guidance 2025

Despite navigating a more challenging market landscape in 2025, Proximus is confident that continuing its strategic execution will result in stable Domestic revenue compared to 2024. Additionally, significant cost efficiencies within the ongoing program are projected to save another EUR 70 million in 2025, adding to the EUR 150 million already achieved from 2023-2024. These savings will help offset anticipated cost pressures such as inflation, customerrelated expenses, and transformation costs. Overall, Proximus anticipates that its Domestic EBITDA for 2025 will remain broadly stable year-on-year.

For Proximus Global, strong EBITDA growth of around 20% is anticipated on a pro-forma basis, driven by continued organic growth and accelerated synergies. As a whole, the Proximus Group EBITDA is expected to increase year-onyear around 2%.

The 2024 booked capex is considered the peak level. The investment in Fiber network deployment and related customer connections will remain elevated until 2028. For 2025, the booked Capex (excluding football broadcasting and spectrum rights) is expected to be around EUR 1.3 billion.

The investments are reflected in the Group FCF. On organic basis, i.e. excluding any proceeds from the ongoing assets sales, the adjusted Group FCF for 2025 is expected to remain broadly stable year-on-year. Proximus reiterates its mid-term ambition to deliver over EUR 500 million by 2027 from selling non-core assets, to support the Group FCF throughout the period of elevated investment for Fiber build. The closing of the announced transactions end-2024 will bring EUR 238 million in proceeds over the next two months, while the sale of the Proximus headquarter building is in its final stages before signing.

Guidance metric FY24 FY25 Actuals Outlook Underlying Domestic revenue EUR 4,826 million Broadly stable Underlying Domestic EBITDA EUR 1,682 million Broadly stable Underlying Global EBITDA(1) EUR 188 million Around +20% Underlying Group EBITDA(1) EUR 1,869 million Around +2% Capex (excluding Spectrum & football rights) EUR 1,355 million Around EUR 1.3 billion Organic adj FCF (excl asset sales) EUR 58 million Stable Net debt / EBITDA 2.9x Around 3.0X

The Net debt / EBITDA ratio for 2025 is expected to around 3.0X (as per S&P definition).

(As per S&P definition) 3.0x (1) On pro forma 2024: includes the actual results of Route Mobile over the period Jan-Apr 2024, to allow for a comparable base.

Shareholder remuneration

Shareholders return policy 2024-2025

In line with the Capital Markets Day announcement in January 2023, Proximus rebased its dividend level to EUR 0.60 per share for the years 2024 and 2025. The rebased dividend level incorporates all known macro and inflationary headwinds, closed M&A transactions (Route Mobile and Fiberklaar), as well as expected changes in market structure. The proposed dividend is reviewed and submitted to the Board of Directors on an annual basis, in order to keep strategic financial flexibility for future growth, organically or via selective M&A, with a clear focus on value creation. This also includes confirming appropriate levels of distributable reserves.

Proximus will return the expected dividend of EUR 0.60 per share over the result of 2025 in two tranches: a gross interim dividend of EUR 0.30 per share payable in December 2025 and the remaining normal gross dividend of EUR 0.30 gross per share payable in April 2026, pending approval by the 2026 Annual General Meeting.

Dividend over the result of 2024

The Proximus Board of Directors approved on 27 February 2025 to propose to the Annual General Meeting of 16 April 2025 to return a total gross dividend of EUR 0.60 per share over the results 2024. Subject to this approval, the normal dividend of EUR 0.10 gross per share will be payable in April 2025, and completes the interim dividend of EUR 0.50 gross per share which was paid on 6 December 2024. This brings the total declared dividend over the 2024 results to EUR 194 million.

Coupon #: 40

Gross dividend: EUR 0.10/share Net dividend (30% withholding tax assumed): EUR 0.07/share

• Ex-coupon date : 23 April 2025
• Record date : 24 April 2025
• Payment date : 25 April 2025

More information on www.proximus.com/press

Press Relations department: +32 2 202 44 44

Haroun Fenaux +32 476 60 03 33 Fabrice Gansbeke +32 472 050 702

Investor Relations: +32 2 202 82 41

investor.relations@proximus.com

About Proximus Group

Proximus Group (Euronext Brussels: PROX), is a provider of future-proof connectivity, IT and digital services, headquartered in Brussels. The Group is actively engaged in building a connected world that people trust, so society blooms.

The Domestic segment is focused on providing state-of-the art telecommunications and IT services in the Benelux. In Belgium, core products and services are offered under the Proximus, Mobile Vikings and Scarlet brands for the residential market and Proximus NXT for the Enterprise market. The Group is also active in the Netherlands (Proximus NXT) and in Luxembourg (Tango and Proximus NXT).

Proximus Global overarches the international activities of the Group, gathering the strengths of BICS, Telesign and Route Mobile. Encompassing the entire value chain from P2P Voice & Messaging and Mobility services to CPaaS and Digital Identity, Proximus Global is in a unique position to become a global digital communications leader.

The Group has the ambition to build the #1 gigabit network for Belgium and plays a central role in creating inspiring digital ecosystems, while fostering an engaging culture and empowering ways of working. Building upon these strengths, Proximus aims to contribute to an inclusive and sustainable digital society, delight customers with an unrivalled experience and achieve profitable growth both locally and internationally to deliver long-term value for stakeholders.

With 13,131 employees, imbued with Proximus' Think Possible mindset and all engaged to offer a superior customer experience, the Group realized an underlying Group revenue of EUR 6,430 million end-2024.

For more information, visit www.proximus.com & www.proximus.be.