Reporting changes:
Group reporting
2014 quarterly Group expenses and EBITDA were restated for IFRIC 21, applicable as from 1 January 2015 with retrospective effect. This new IFRS rule requires a tax liability to be recognized in the period during which the criteria triggering the tax are met. This rule does not apply to taxes related to technical assets, which continue to be recognized over the year, in line with the use of the assets. As a result, some tax charges imposed on the Belgacom Group for non-technical assets are now recognized on 1 January whereas in the past such costs were spread over the year.
Segment reporting
Within its “Fit-for-Growth” strategy, aiming for more efficiency and simplification, Belgacom installed a new organization structure since the start of 2015. This also resulted in a new customer segmentation. The main change resides in the Small Enterprise customers (‘Small Offices’) being reported within the new Consumer Business Unit and no longer in the Enterprise Business Unit. To allow an appropriate year-on-year comparison, the 2014 quarterly figures on Segment-level were revised (unaudited).
Main drivers for this decision:
 More focus on the Medium Enterprise segment.
 A better customer approach by clearly separating “account managed” customers from “mass market”customers. In the new organization, EBU mainly focuses on the professional market in an account managed approach.
 Residential and Small Offices share significant similarities in terms of products and sales channels. A large majority of Small offices use the same Telecom operator for their residential usage.
 Addressing customers in their corresponding CBU and EBU segments contributes to the company’s simplification and synergy gains programs.
Revenue related to installation and connection fees for Fixed products is reported under “other revenue” , with a small impact on Fixed Voice, Fixed Internet and TV revenue and ARPU.
Scarlet revenue is now integrated in the different Consumer Business Unit product lines - aligning revenue with ARPU and customers (which both already included Scarlet).
The optimization of allocating costs led to some costs being transferred from Staff and Support (S&S) to the new Consumer BU and Enterprise BU.

The table below represents figures as reported, including non-recurring items.
The Belgacom Executive Committee declares that to the best of its knowledge, the condensed consolidated financial statements, established in accordance with International Financial Reporting Standards (“IFRS”), give a true and fair view of the assets, financial position and results of Belgacom and of the entities included in the consolidation.
The financial report gives an accurate overview of the information that needs to be disclosed. The Executive Committee is represented by Dominique Leroy, Chief Executive Officer, Sandrine Dufour, Chief Financial Officer, Phillip Vandervoort, Chief Consumer Market Officer, Bart Van Den Meersche, Chief Enterprise Market Officer, Geert Standaert, Chief Technology Officer, Renaud Tilmans, Chief Customer Operations Officer, Michel Georgis, Chief Human Resources Officer and Dirk Lybaert, Chief Corporate Affairs Officer.

Highlights Highlights Highlights Highlights Highlights Highlights Highlights Highlights Highlights Highlights – Q1 201 5
 Underlying1 Core2 revenue up 3.3%, due to solid revenue growth from Fixed and Mobile
 Strong commercial drivers for the Proximus and Scarlet brands
 Underlying EBITDA of EUR 423 million, +3.8% YoY
 2015 full-year guidance reiterated
 Belgacom Group generated in the first-quarter of 2015 underlying revenue of EUR 1,479 million, an increase of 5.5% compared to the first-quarter of 2014.
o This includes a 3.3% increase of Belgacom’s underlying core revenue, mainly driven by a solid revenue growth for TV and Fixed Internet, a 2.5% revenue growth for Mobile services and from higher Mobile device revenue. This was partly offset by lower revenue from the Technology & Wholesale Business Unit due to the decline in domestic wholesale volumes and wholesale roaming prices.
o Revenue from BICS (International Carrier Services) was up 11.9% year-on-year, benefiting from positive volatility in voice trading activities and a positive currency effect, explaining more than half of the revenue increase, combined with solid growth for Mobile Data.
 Belgacom’s first-quarter 2015 underlying Group EBITDA totaled EUR 423 million, 3.8% higher compared with the previous year. The increase resulted mainly from a higher Fixed and Mobile Direct Margin from Belgacom’s core business, and from a strong Direct Margin increase for BICS.
 For the first-quarter of 2015, Belgacom’s Capex totaled EUR 227 million, EUR 47 million more than for the same period of 2014. Besides commercially driven Capex, this also includes accelerated Mobile investments, expanding the outdoor LTE coverage to 94.9%, the continued roll-out of the vectoring technology and higher investments in network and IT simplification.
 In the first-quarter of 2015, Belgacom generated EUR 8 million in Free Cash Flow (FCF). While the growing EBITDA contributed positively, the first-quarter FCF was reduced by the higher amount of cash paid for Capex, including a carry-over impact from the elevated fourth quarter Capex, and by higher working capital needs, including inventory re-building after a very successful year-end campaign.
 Belgacom showed a strong net customer gain for its two main brands Proximus and Scarlet. With the first-quarter still partially benefiting from the year-end promotions, strengthened by a positive rebranding effect, Proximus saw a strong customer uptake. Scarlet’s customer base too was boosted, successfully attracting 16,000 former Snow customers to its Trio offer. As a result, the customer base for all the main products grew firmly in the first-quarter of 2015:
o + 65,0003 TV subscriptions, increasing the total TV customer base to 1,657,000
o + 48,000 Fixed Internet lines, increasing the total Internet customer base to 1,788,000
o + 5,000 Fixed Voice Lines, leading to a total of 2,836,000 lines
o + 63,0004 Mobile Postpaid cards, with the total Postpaid customer base end-March at 4,209,0005
o - 44,000 Mobile Prepaid cards, decreasing the total customer base to 1,508,000

1 Adjusted for incidentals to get a better view of the ongoing business performance. See page 22
2 Group revenue excluding revenue from International Carrier Services (BICS)
3 Corresponds to total number of set-top boxes. First quarter 2015 included 13,000 multiple set-top boxes
4 Of which 26,000 Free data and M2M cards. Mobile park end 2014 was adjusted by +21,000 M2M cards, resulting from an alignment in activity definitions between M2M platforms
5 Including Voice and Data Mobile cards sold through CBU, as well as M2M cards in EBU, Mobile cards from the Tango, MVNO and TEC&W segment are included as well.

Dominique Leroy, CEO of Belgacom Group:
“I’m proud to announce we had a successful start of the year 2015, with both financial and operational achievements supporting our 2016 ambition to return to sustainable growth.
Besides a continued growth in our Mobile customer base, the commercial performance of our Fixed products was particularly strong in the first three months of the year, driven by our main brands Proximus and Scarlet. Where Proximus continued to benefit somewhat from the year-end promotions, and a positive rebranding effect, Scarlet achieved a record customer gain by successfully attracting former Snow customers.
The sustained rise in our customer base also benefited our financial performance, with both Fixed and Mobile service revenue showing growth versus last year. Moreover, the financial performance of the Group was favorably influenced by a strong result for BICS. This, however, was largely driven by positive though volatile impacts from currency and voice trading.
Overall I’m pleased and encouraged by our achievements so far. The company is making good progress on our ‘Fit for Growth’-strategy, and is already reaping some of the benefits. We can therefore with confidence reiterate our 2015 outlook.”
Analyst conference call details
Belgacom will host a conference call for investors and analysts on Friday 8 May 2015.
Time: 2:00 p.m. Brussels – 1:00 p.m. London – 8:00 a.m. New York
 Dial-in UK : + 44 20 3427 1900
 Dial-in USA : + 1 646 254 3364
 Dial-in Europe : + 32 2 404 0660
 Code : 6127383
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http://www.belgacom.com/be-nl/annex_investors/Inv_Financial_results_2015.page