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Management report consolidated accounts 2025 (628 KB) (05 management report consolidated accounts proximus 2025 en)

· Issued by Proximus SA
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Consolidated Management Report

  1. Management discussion and analysis of financial results 3

  2. Risk Management Report 30

  3. Internal control system 45

  4. Expertise of the Audit & Compliance Committee members 49

  5. Evolution in research and development activities 50

  6. Other information 56

  1. ‌Management discussion and analysis of financial results

    1. Introductory remarks Reporting changes

      Accounting policies

      The Group accounting policies and methods used throughout 2025 are consistent with those applied in the December 31, 2024, consolidated financial statements, with the exception that the Group applied the new standards, interpretations and revisions that became mandatory for the Group on January 1, 2025. These have no impact on the Group's financial statements.

      Segmentation

      The reporting of the Domestic segment includes a technical effect from the transfer of Scarlet Small Enterprise (SE) customers to the IT stack of the Proximus Group, without any impact on the aggregated Domestic Revenue or EBITDA. Before this migration, Scarlet SE customers were included in the reporting of the Residential business unit.

      The migration has following impacts:

      1. The total number of Customer ID's (source of the X-play customer count) decreased

        Scarlet customers identified as SE customers are allocated to the Enterprise Business unit (moving out of the Residential customer reporting)

        Scarlet customers which had in the previous IT stack two ID's (for example one for mobile and another one for a Fixed product or Pack) are now recognized as 1 single customer. This means a consolidation of customers in the Residential customer reporting, increasing the number of convergent customers, lowering the count of Fixed-only and Mobile-only customers.

      2. The number of subscriptions (Mobile, Internet, Fixed Voice) did not change on total Domestic level, however, the move from Scarlet SE customers to the Business unit result in a reallocation from these subscriptions Residential to Business.

        In this annual report, the 2024 reference base for both operationals and financials has been restated for the changes mentioned above to allow for a meaningful comparison.

        Simplification

        Effective 1 January 2025, Proximus Global reporting was simplified by including 'eliminations' in the product group 'Communications and Data', to which these eliminations are associated. This change led to a decrease in the revenue line for 'Communications and Data' (no meaningful eliminations on Direct margin). There is no effect on the total Global revenue, Direct margin, EBITDA, or FCF

        Underlying revenue and EBITDA

        Proximus' management discussion is focused on underlying figures, i.e., after adjustments.

        Proximus provides a transparent view of the operational drivers of the business by isolating adjustments, i.e., revenues and costs that are unusual or not directly related to Proximus' business operations, and which had a significant impact on the year-on-year variance of the Proximus Group revenue or EBITDA. In addition, following the application of the IFRS 16 accounting standard, the definition of "underlying" was adapted to include lease depreciation & interest in EBITDA as of 2019. The adjusted revenue and EBITDA are referred to as "underlying" and allow for a meaningful year-on-year comparison.

        Definitions can be found in Section 5 of this document.

        Revenues EBITDA

        (EUR million) 2024 2025 2024 2025

        Reported

        6,539

        6,620

        1,950

        2,251

        Adjustments

        -110

        -313

        -100

        -368

        Underlying

        6,430

        6,307

        1,850

        1,883

        Adjustments

        -110

        -313

        -100

        -368

        Lease Depreciations

        -96

        -99

        Lease Interest

        -10

        -10

        Transformation

        20

        23

        Acquisitions, mergers and disposals*

        -80

        -298

        3

        -266

        Litigation/regulation

        -30

        -15

        -17

        -16

        Remark: "Underlying Revenue" corresponds to "Total Income", excluding adjustments.

        *For 2025, mainly related to divestments, including Be-Mobile EUR -119 million, mobile towers Luxemburg EUR -88 million, datacenters EUR -77 million, buildings EUR -12 million and EUR -2 million for Doktr. For 2024, mainly related to Fiberklaar remeasurement of the participation for EUR -77 million.

        Pro-forma figures

        Following the acquisition of Route Mobile and the resulting full consolidation of its results in the Proximus Group as of 1 May 2024, this annual report provides 'pro forma 12 months' figures for 2024, in addition to the actual 2024 results, as such allowing for a more meaningful year-on-year comparison.

        Group P&L - Pro forma

        (EUR million)

        FY24*

        FY25

        Change %

        Underlying

        Revenue

        6.574

        6.307

        -4,1%

        Costs of materials and charges to revenue

        -2.478

        -2.227

        -10,1%

        Direct margin

        4.096

        4.081

        -0,4%

        Direct margin %

        62,3%

        64,7%

        2,4 p,p,

        Total expenses before D&A

        -2.227

        -2.197

        -1,3%

        Workforce expenses

        -1.426

        -1.397

        -2,1%

        Non-workforce expenses

        -801

        -801

        0,0%

        EBITDA

        1.869

        1.883

        0,8%

        EBITDA margin %

        28,4%

        29,9%

        1,4 p,p,

        CapEx (including Spectrum & Football rights)

        1.383

        1.261

        -8,8%

        CapEx (excluding Spectrum & Football rights) 1.356 1.249 -7,9%

        *FY '24 presented on a 12-month "Pro forma" basis, including Route Mobile over the period Jan - Apr 2024, to allow for a comparable base

        Proximus Global P&L Pro forma

        (EUR million)

        FY24*

        FY25

        Change %

        Underlying

        Proximus Global revenue (1)

        1.817

        1.548

        -14,8%

        Communications & Data and eliminations

        1.219

        1.054

        -13,6%

        P2P Voice & Messaging

        598

        494

        -17,3%

        Proximus Global costs of materials and charges to revenue

        -1.316

        -1.103

        -16,2%

        Proximus Global Direct margin

        501

        445

        -11,1%

        Communications & Data and eliminations

        383

        343

        -10,5%

        P2P Voice & Messaging

        118

        103

        -13,0%

        Proximus Global Direct margin %

        27,6%

        28,8%

        1.2 p.p.

        Proximus Global total expenses before D&A

        -313

        -275

        -12,2%

        Workforce expenses

        -197

        -162

        -17,5%

        Non-workforce expenses

        -116

        -113

        -3,2%

        Proximus Global EBITDA

        188

        170

        -9,3%

        Proximus Global EBITDA margin %

        10,3%

        11,0%

        0.7 p.p.

        (1) Refers to total income

        * FY '24 presented on a 12-month "Pro forma" basis, including Route Mobile over the period Jan -

        Apr 2024, to allow for a comparable base

        Proximus Domestic P&L

        (EUR million)

        FY24

        FY25

        Change %

        Underlying

        Revenue

        4.826

        4.821

        -0,1%

        Costs of materials and charges to revenue

        -1.218

        -1.170

        -3,9%

        Direct margin

        3.608

        3.651

        1,2%

        Direct margin %

        74.8%

        75.7%

        1.0 p.p.

        Total expenses before D&A

        -1.926

        -1.938

        0,6%

        Workforce expenses

        -1.231

        -1.238

        0,5%

        Non-workforce expenses

        -694

        -700

        0,8%

        EBITDA

        1.682

        1.713

        1,9%

        EBITDA margin %

        34.8%

        35.5%

        0,7 p.p.

        CapEx (excluding Spectrum & Football rights)

        1.303

        1.202

        -7,7%

        Rounding

        In general, all figures are rounded. Variances are calculated from the source data before rounding, implying that some variances may not add up.

        Key Figures - 10-year overview (IFRS basis)

        Income Statement (EUR million)

        2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Reported income

        5,873

        5,802

        5,829

        5,697

        5,481

        5,579

        5,914

        6,048

        6,539

        6,620

        Revenue adjustments

        3

        24

        21

        11

        2

        1

        5

        7

        110

        313

        Underlying revenue

        5,871

        5,778

        5,807

        5,686

        5,479

        5,578

        5,909

        6,042

        6,430

        6,307

        Reported EBITDA (1)

        1,733

        1,772

        1,794

        1,676

        1,922

        1,828

        1,826

        1,786

        1,950

        2,251

        Lease depreciation and interest

        N/A

        N/A

        N/A

        84

        84

        82

        84

        90

        105

        109

        Other EBITDA adjustments

        -63

        -51

        -70

        -278

        1

        -26

        -44

        -62

        -6

        258

        Underlying EBITDA (1)

        1,796

        1,823

        1,865

        1,870

        1,836

        1,772

        1,786

        1,757

        1,850

        1,883

        Depreciation, amortization and goodwill impairment

        -917

        -963

        -1,016

        -1,120

        -1,116

        -1,183

        -1,179

        -1,185

        -1,259

        -1,601

        Operating income (EBIT)

        816

        809

        778

        556

        805

        645

        647

        601

        691

        650

        Net finance income / (costs)

        -101

        -70

        -56

        -47

        -48

        -54

        -49

        -110

        -159

        -146

        Share of loss on associates

        -1

        -2

        -1

        -1

        -1

        -10

        -20

        -30

        -18

        -17

        Income before taxes

        715

        738

        721

        508

        756

        581

        578

        461

        513

        487

        Tax expense

        -167

        -185

        -191

        -116

        -174

        -137

        -128

        -104

        -57

        -82

        Non-controlling interests

        25

        30

        22

        19

        18

        1

        0

        0

        9

        7

        Net income (Group share)

        523

        522

        508

        373

        564

        443

        450

        357

        447

        398

        Cash flows (EUR million) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Cash flows from operating activities

        1,521

        1,470

        1,558

        1,655

        1,515

        1,621

        1,717

        1,620

        1,602

        1,615

        Cash paid for Capex

        -962

        -989

        -1,099

        -1,091

        -1,089

        -1,137

        -1,441

        -1,453

        -1,474

        -1,316

        Cash flows from / (used in) other investing activities

        0

        -189

        -8

        12

        9

        -168

        -20

        -57

        -754

        299

        Lease payments

        N/A

        N/A

        N/A

        -78

        -82

        -79

        -89

        -92

        -101

        -118

        Free cash flow (2)

        559

        292

        451

        498

        352

        237

        167

        18

        -727

        480

        Organic Free Cash Flow (3)

        N/A

        N/A

        N/A

        N/A

        N/A

        N/A

        N/A

        N/A

        57

        130

        Cash flows from / (used in) financing activities other than lease payments

        -764

        -256

        -444

        -515

        -363

        -299

        -119

        398

        506

        -400

        Net increase / (decrease) of cash and cash equivalents

        -205

        36

        7

        -17

        -13

        -62

        50

        416

        -219

        68

        Balance sheet (EUR million) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Balance sheet total

        8,117

        8,527

        8,671

        8,978

        8,779

        9,233

        10,541

        11,153

        13,327

        12,967

        Non-current assets

        6,372

        6,735

        6,850

        7,160

        7,120

        7,548

        8,589

        8,932

        10,969

        10,710

        Investments, cash and cash equivalents

        302

        338

        344

        327

        313

        249

        299

        716

        538

        670

        Shareholders' equity

        2,819

        2,857

        3,005

        2,856

        2,903

        2,978

        3,307

        3,300

        4,310

        4,505

        Non-controlling interests

        162

        156

        148

        142

        123

        0

        1

        0

        225

        162

        Liabilities for pensions, other post-employment benefits and termination benefits

        544

        568

        605

        864

        645

        508

        413

        378

        358

        318

        Net financial position (incl. lease liability)

        N/A

        N/A

        N/A

        -2,492

        -2,639

        -3,013

        -3,030

        -3,429

        -4,201

        -3,932

        Net financial position (excl. lease liability as from 2019)

        -1,861

        -2,088

        -2,148

        -2,185

        -2,356

        -2,740

        -2,758

        -3,131

        -3,907

        -3,568

        Weighted average number of ordinary shares (4) 322,317,201 322,777,440 322,649,917 322,918,006 322,752,015 322,751,990 322,552,465 322,442,197 322,573,717

        322,837,609

        Basic earnings per share - as reported (EUR) (5) 1.62 1.62 1.58 1.16 1.75 1.37 1.40 1.11 1.39

        1.23

        Total dividend per share (EUR) (6) 1.50 1.50 1.50 1.50 1.20 1.20 1.20 1.20 0.60

        0.60

        Proximus share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Data on employees 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Number of employees (full-time equivalents)

        13,633

        13,391

        13,385

        12,931

        11,423

        11,532

        11,634

        11,654

        13,131

        12,560

        Average number of employees over the period

        13,781

        13,179

        13,161

        13,007

        11,544

        11,445

        11,529

        11,650

        12,629

        12,786

        Underlying revenue per employee (EUR)

        425,997

        438,413

        441,238

        437,173

        474,647

        487,381

        512,534

        518,604

        509,116

        493,303

        Total income per employee (EUR)

        426,201

        440,240

        442,870

        438,005

        474,783

        487,451

        512,936

        519,163

        517,794

        517,747

        Underlying EBITDA per employee (EUR)

        130,315

        138,325

        141,681

        143,801

        159,057

        154,814

        154,912

        150,844

        146,507

        147,303

        Total EBITDA per employee (EUR)

        125,743

        134,483

        136,342

        128,856

        166,467

        159,721

        158,394

        153,326

        154,395

        176,062

        Return on Equity

        18.6%

        18.3%

        16.9%

        13.1%

        19.4%

        14.9%

        13.6%

        10.8%

        10.4%

        8.8%

        Direct margin

        61.8%

        62.7%

        63.5%

        64.6%

        65.3%

        64.2%

        63.0%

        63.7%

        63.8%

        66.4%

        EBITDA Margin

        30%

        31%

        31%

        29%

        35%

        33%

        31%

        30%

        30%

        34%

        Ratios - on reported basis 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Return on Equity

        19.4%

        19.2%

        18.4%

        19.9%

        19.5%

        15.5%

        14.6%

        12.3%

        10.0%

        3.0%

        Direct margin

        61.8%

        62.5%

        63.4%

        64.6%

        65.3%

        64.2%

        63.0%

        63.7%

        63.2%

        64.7%

        EBITDA Margin

        31%

        32%

        32%

        33%

        34%

        32%

        30%

        29%

        29%

        30%

        Ratios - on underlying basis 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        Total CAPEX

        949

        1,092

        1019

        1035

        1237

        1246

        1923

        1328

        1383

        1261

        Capex excl Spectrum and Football right

        949

        1,002

        1019

        1027

        1000

        1203

        1,305

        1,325

        1,355

        1,249

        CAPEX 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

        1. Earnings Before Interests, Taxes, Depreciation and Amortization.

        2. Cash flow before financing activities but after lease payments.

        3. FCF excluding cash-out related to M&A transactions, related transaction costs and excluding proceeds from sold assets as part of the company's active asset portfolio management

        4. i.e. excluding Treasury shares

        5. No difference between basic and diluted earnings per share

        6. Accounting view (not cash view)

        • Proximus Group posted 2025 underlying revenue of EUR 6,307 million and EUR 1,883 million EBITDA, respectively down 4.1% and up by 0.8% from 2024 on a pro forma basis.

        • The Domestic segment continued its strong commercial performance in a highly competitive market .

        • Domestic delivered +0.4% of Services revenue growth and +1.9% of EBITDA growth, year-on-year.

        • Proximus Global Direct Margin totaled EUR 445 million, a year-on-year decrease of -11.1% on a pro forma basis and EBITDA totaled EUR 170 million, a decrease of 9.3%, reflecting a meaningful slowdown in the CPaaS SMS market, currency effects and integration challenges.

        • Group CAPEX, excluding spectrum & football rights, totaled 1,249 million, a decline of 7.9% year-on-year.

        • Total reported FCF of EUR 480 million; organic FCF of 130 million.



        2018: IFRS15 ; as from 2019:IFRS 15 and 16

    2. Proximus Group Revenue

      The Proximus Group closed 2025 with total underlying revenue of EUR 6,307 million, a decline of 4.1% (EUR 267 million).

      The underlying Domestic revenue was broadly stable year-on-year, reaching EUR 4,821 million. Services revenue increased, primarily due to higher convergent revenue in the Residential unit, which rose by 4.8% compared to the previous year. In contrast, revenue from Terminals and IT hardware fell by 3.4%, with minimal effect on margins.

      On a pro forma basis, revenue from Proximus Global declined by 14.8% (-11.9% at constant currency) to EUR 1,548 million. The decrease was mainly due to declining legacy Voice services, an accelerated industry-wide trend of CPaaS SMS shifting to OTT solutions, and integration challenges causing delays in revenue synergies delivery. Meanwhile, new segments such as Omnichannel, Mobility, and IoT have expanded and brought higher margins.

      Group revenue by segment (EUR million)

      -4,1%



      6.430 6.574 6.307

      -62

      -68

      4.821

      4.826

      -0,1%

      -68

      4.826

      1.548

1.817

1.672

-14,8%

2024 Underying 2024 Pro forma 2025 Underlying

Domestic Global Eliminations

Direct margin

For the full year 2025, Proximus Group posted an underlying direct margin of EUR 4,081 million, a slight decrease of 0.4% year-on-year (EUR 15 million) compared to pro forma 2024. The Domestic segment posted a 1.2% year-on-year increase (EUR 44 million) in its direct margin. Proximus Global recorded a 11.1% year-on-year decrease in Direct margin compared to pro forma 2024, reaching EUR 445 million and -4.8% on an underlying basis (-8.5% at constant currency).

Direct margin (EUR million)

-0,4%

4.063 4.096

4.081

-16

-13

3.651

3.608

+1,2%

-13

3.608

445

501

468

-11,1%

2024 Underying 2024 Pro forma 2025 Underlying

Domestic Global Eliminations

Operating expenses (OpEx)

The Proximus Group's operating expenses decreased by 1.3% year-on-year on a pro forma basis, reaching EUR 2,197 million. Compared to 2024 underlying figures, operating expenses decreased by 0.7%.

Operating expenses (EUR million)

In 2025, domestic operating expenses reached EUR 1,938 million, marking a 0.6% increase compared to the previous year. This increase was mainly due to inflation-driven cost pressures, such as salary adjustments implemented on June 1, 2024 and March 1, 2025, along with other effects related to inflation.

Strong commercial results also resulted in higher customer-related costs. Transformation costs increased as well, influenced by greater cross-charging for Mobile pylons under the joint venture with Orange Belgium (Mwingz), and additional expenses from IT transformation projects, among other factors. The

company managed to offset a large part of these increases

-1,3%

2.213

2.227

2.197

299

313

-12,2%

275

1.926

-12

1.926

-12

+0,6%

1.938

-16

2024

Underying

2024 Pro

forma

2025

Underlying

through ongoing efforts to optimize costs and improve efficiency. This is also reflected in a lower Domestic headcount, totaling 9,959 FTEs end of 2025, or a decrease by 333 FTEs.

Operating expenses for Proximus Global decreased by 12.2% year-on-year on a pro forma basis, reaching EUR 275 million (-8.1% on underlying figures). The lower operating expenses are primarily due to cost synergies from a reduced workforce, which more than compensated for wage indexations. By the end of 2025, Proximus Global-including Route Mobile since May 2024-employed 2,602 FTEs, marking a reduction of 238 FTEs compared to the previous year.

Domestic Global Eliminations

Headcount evolution (FTE)

-4,3%

13.131 12.560

9.959

10.291

2.602

2.840

2024 2025

Domestic Global

Underlying EBITDA

Group EBITDA by segment (EUR million)

The underlying Group EBITDA for 2025 totaled EUR 1,883 million,

reflecting a 0.8% increase (EUR 14 million) on a pro forma basis

+0,8%

compared to the previous year and a 1.8% rise on underlying figures. This

growth was fully driven by the contribution of the Domestic segment.

1.850

1.869

1.883

169

188

-9,3%

170

Proximus' Domestic operations achieved an EBITDA of EUR 1,713 million

in 2025, representing a year-on-year growth of 1.9%. This increase was

driven by Direct Margin growth, more than offsetting the OPEX increase..

1.682

1.682

+1,9%

1.713

Proximus Global reported an EBITDA of EUR 170 million in 2025. This represents a 9.3% year-on-year decrease on a pro forma basis and a

0.9% rise on underlying figures.

2024

Underying

2024 Pro

forma

2025

Underlying

Domestic Global Eliminations

Reported EBITDA

Excluding operating leases and including other adjustments, the Proximus Group reported an EBITDA of EUR 2,251 million for 2025, up 15.5% year-on-year compared to EUR 1,969 million in 2024 on a pro forma basis. On underlying figures, this represents a 1.8% increase from EUR 1,850 million to EUR 1,883 million.

In 2025, the Proximus Group recorded net adjustments1totaling EUR 368 million compared to EUR 100 million in 2024.

Lease depreciation and interest expenses for 2025 increased by EUR 3 million year-on-year, totaling EUR 109 million. (Since 2019, following the application of IFRS 16, these expenses have

been excluded from reported EBITDA) This increase was partially

Reported and underlying EBITDA (EUR million)

+0,8%

2.251

1.950

1.969

1.850 1.869

+14,3%

-100 -100

1.883

-368

offset by EBITDA adjustments for transformation costs of EUR 23 million and M&A-related adjustments of EUR 266 million.

2024

Underying

2024 Pro

forma

Reported Adjustments

2025

Underlying

Depreciation, amortization and goodwill impairment

In 2025, the Group depreciation, amortization and goodwill impairment totaled 1,601 million (incl. lease depreciation). The increase of EUR 342 million compared to EUR 1,259 million in 2024 is mainly due to the goodwill impairment on Global (EUR

+275 million), while D&A increased due acquisitions (Route Mobile and Fiberklaar) and an expanding Fiber coverage.

Net finance cost

Net finance costs for 2025, including lease interest, were EUR 146 million, down EUR 13 million from last year. The decrease in net finance cost mainly reflects a more favorable interest rate on Spectrum and the refinancing of Fiberklaar at Proximus Group conditions upon consolidation.

Depreciation, amortization and goodwill impairment (EUR million)

+27.1%

1.259

1.601

2024 2025

Net finance cost incl. lease interest (EUR million)

-8,1%

159

146

2024 2025

1. Adjustments details on page 4.

Tax expense

Tax expense (EUR million)

In 2025, tax expenses totaled EUR 82 million, resulting in an effective tax rate (ETR) of 16.8%, significantly lower than the Belgian statutory tax rate of 25%. The ETR is mainly positively impacted by exempt capital gains on shares and innovation income deduction.

82

57

+42.8%

ETR: 11.1%

ETR: 16.8%

2024 2025

Net income

The Proximus net income (Group share) decreased by 11.0% year-on-year to EUR 398 million resulting from a goodwill impairment on Global (EUR -275 million), higher depreciations and income taxes, partly offset by a EUR 33 million increase in underlying Group EBITDA and lower financing costs. One-off's impacting the reported Group EBITDA include 3 major divestments in 2025 (sale of datacenters, Luxemburg mobile towers and Be-Mobile) for a net amount of EUR +282 million.

Net income (Group share) (EUR million)

447

-11.0%

398

2024 2025

Net income (Group share) evolution (EUR million)

268

33

447



13

3 398

-341 -24

2024 Underlying EBITDA Adjustments D&A (*) and

goodwill impairment

Net Finance Costs (**) Tax Expense Others (***) 2025

(*) including lease depreciation; (**) including lease interest;

(***) includes Non-controlling interests and Share of loss from associates

CapEx

In 2025, the Proximus Group reported total accrued capital expenditures (CapEx) of EUR 1,261 million, inclusive of spectrum and football broadcasting rights. This figure represents a 7.0% decrease from the EUR 1,356 million recorded in 2024 on a pro forma basis. Excluding these specific items, accrued CapEx amounted to EUR 1,249 million, compared to EUR 1,356 million in 2024, reflecting a reduction of EUR 107 million year-over-year. The decline is primarily attributable to lower fiber build CaPex, lower content investments and reduced customer-related CapEx, driven by lower demand for modems and Wi-Fi boosters due to higher refurbishment rates, an increase in self-installation by customers, and enhanced operational processes. Additionally, the fiber network deployment in densely populated areas has progressed beyond its peak phase. Several major IT initiatives were also successfully completed during the period.

Investments in Fiber accounted for 27% of total CapEx, slightly lower compared to 2024 (28%). By year-end, Proximus was actively rolling out Fiber in 175 cities and municipalities across Belgium. The Fiber footprint grew by 17% year-on-year, reaching 2,604,000 premises by end-2025.

The Mobile network (RAN) consolidation, driven by the joint-operation Mwingz, and 5G rollout are getting close to completion. with CapEx aligned to the pace of mobile site integration.

Accrued CapEx (EUR million) on pro forma basis

(excl. spectrum and football rights)

-7,9%

1.356

1.249

27%

28%

2024 2025

Fiber build Customer related Other Global

Free Cash Flow

In 2025, the reported Free Cash Flow (FCF) was EUR 480 million, which includes adjustments related to acquisitions, M&A-related expenses, and asset sale proceeds totaling EUR 351 million. Excluding these items, organic FCF reached EUR 130 million, representing a year-on-year increase of EUR 72 million compared to the 2024 figure. Acquisition and M&A-related costs were related to the Fiberklaar acquisition for which a final payment of EUR 60 million was made end 2025, in addition to the EUR 186 million paid in 2024. The favorable year-over-year development was driven by reduced cash CapEx (EUR 158 million), higher underlying EBITDA (EUR 33 million), and lower income tax payments (EUR 16 million), compensated by higher interests paid (EUR -10 million), a lower working capital need (EUR -54 million) and an increase of other investing activities (EUR -71 million).

EUR 130Morganic FCF

Free Cash Flow Year on Year comparison (EUR million)

351

480

158

-71

130

33

-54

784

57

-10

16

-727

Reported FCF Adjustments Organic FCF

Underlying

Change in WC Interest

Income tax

Cash Capex Cash other

Organic FCF

Adjustments Reported FCF

FY 2024

FY 2024

FY 2024

EBITDA

payments

payments

investing

FY 2025

FY 2025

FY 2025

2.251

-368

1.883

EBITDA conversion to Free Cash Flow (EUR million)

-131

-127

-92 -1.316

-88

130

351

480

Reported

Adjustments

Underlying

Change in WC Interests

Income tax paid Cash Capex Cash other

Organic FCF FY Adjustments

Reported FCF

EBITDA FY 2025

FY 2025

EBITDA FY 2025

payments

investing

2025

FY 2025

FY 2025

Net financial position

At the end of December 2025, Proximus' adjusted net financial position was EUR -3,568 million (including re-measurements to fair value).

Evolution of Adjusted Net Financial Position (excl. lease liabilities) (EUR million)

-3.907

130 -99

450 -168 -33 65 -5

-3.568

Net fin position Organic FCF Acquisitions Divestments Dividends (incl. Hybrid bond Fixed deposit ( Other Net fin position

at end December 2024

NCI)

>3 months)

at end December 2025

  • Domestic revenue reached EUR 4,821 million in 2025, broadly stable from 2024, with Services revenue up by 0.4% year-on-year.

  • Proximus achieved robust operational growth driven by its complementary brand portfolio and network leadership.

  • Residential revenue totaled EUR 2,518 million in 2025, up by 1.0% year-on-year.

  • Business revenue decreased to EUR 1,963 million in 2025, reflecting a 1.9% decline compared to 2024, including a divesture impact.

  • Wholesale revenue amounted to EUR 244 million in 2025, down by 4.2% year-on-year, due to eroding Interconnect revenue (no material margin impact), while services revenue was up 5.7%.

  • Domestic EBITDA reached EUR 1,713 million, a year-on-year increase of 1.9%.



  1. Domestic

    For its Domestic operations, Proximus generated revenue of EUR 4,821 million in 2025, broadly stable compared to 2024. Domestic Services revenue was up year-on-year by EUR 15 million, while revenue from Terminals and IT hardware was lower by EUR -21 million. The Residential unit contributed approximately 52% of total Domestic revenue, the Enterprise unit 41%, and the Wholesale unit 5%.

    As Proximus expands its Fiber network across 175 cities and municipalities, Fiber has become a key selling point for both Residential and Business markets. In 2025, activated Fiber customers increased by 167,000, bringing the total to 731,000 by year-end through new activations and migrations from copper. Proximus maintained network leadership, adding 110,000 mobile postpaid and 35,000 fixed Internet customers. Meanwhile, TV and fixed voice subscribers continued to decline, reflecting market trends, reflecting the ongoing general trend in these markets.

    Domestic revenue by customer unit (EUR

    million)

    Domestic park

    2%

    5%

    41%

    4.821 52%

    Postpaid base excl.

    M2M

    5.095

    2.313

    2.349

    1.630

    1.581

    1.498

    1.338

    5.205

    Internet base

    TV base

    Fixed Voice base

    Residential Business Wholesale Other (incl. eliminations)

    2024 2025

    Residential revenue

    Residential revenue

    Year-on-Year, underlying (EUR million)



    -18 -1 -5 -20

    X-play revenue

    +2,0%

    2494 59

    6 4 2518

    2024 Fixed only Mobile postpaid only

    Convergent Prepaid Terminals Lux Telco Other* 2025

    *Other: Other revenue + other operating income

    Revenue generated by Proximus Residential customers totaled EUR 2,518 million over 2025, up by 1.0 % (EUR 25 million) compared to 2024. The total includes revenue from customer Services, up by 2.0%, Terminals, Mobile Prepaid, the Luxembourg telecom business, and Other revenue. Over 2025, Terminals generated EUR 286 million, down 6.5% or EUR 20 million from 2024. Mobile Prepaid revenue fell to EUR 24 million (EUR 5 million lower), while Proximus Luxembourg's revenue rose 4.3% to EUR 139 million (a EUR 6 million increase. Other revenue and Other operating income reached EUR 63 million, up EUR 4 million year-on-year.

    Proximus closed a robust operational year. Across its 3 brands Proximus, Scarlet, and Mobile Vikings, the Residential unit achieved in 2025 solid growth in its Internet and Mobile Postpaid customer bases, despite the intense competitive environment. In contrast, and pursuing the ongoing trend, Fixed Voice subscriptions further declined. In addition to a growing base across its core products, Residential revenue also benefited from inflation-based price adjustments on a broad range of Proximus services, implemented to offset inflationary pressures on the company's cost base.

    2.994

3.108

Postpaid cards ('000)

+3,8%

Prepaid cards ('000)

462

404

-12,5%

2024 2025 2024 2025

1.856

1.814

Internet lines ('000)

+2,3%

Convergence ('000)

1.173

1.221

+4,0%

2024 2025

2024 2025

2025 was especially successful for Mobile Postpaid, with the number of Residential Mobile Postpaid cards for the year up by 114,000, in an intense competitive environment. This growth was driven by the complementary offerings of the Proximus brand, Scarlet, and Mobile Vikings. By the end of December 2025, Proximus' Residential Mobile Postpaid base totaled 3,108,000 cards, representing a 3.8% increase compared to the end of 2024.

Driven by attractive Mobile Postpaid offers, the Prepaid base continued its steady downward trend in 2025, resulting in a total of 404,000 Prepaid cards by year-end, a decrease by 58,000 cards,

Supported by Proximus' expanding Fiber network, the Residential unit grew its Internet customer base by 42,000 across its three brands. This marks a 2.3% increase from last year, bringing the total number of residential Internet lines to 1,856,000 at the end of 2025, a combination of customers on the copper network and increasingly on the Fiber technology.

Customer Services revenue made up 80% (EUR 2,006 million) of Proximus' total Residential revenue in 2025, rising by 2.0% (EUR 40 million) from 2024. The overall ARPC reached EUR 58.6, a 1.3% year-on-year increase, benefitting from the inflation-driven price change effective January 1, 2025.

Revenue from Convergent customers experienced notable growth, increasing by 4.8% year-on-year to reach EUR 1,300 million. In 2025, Proximus expanded its convergent customer base to a total of 1,221,000, representing a 4.0% increase compared to the previous year.

80% Residential revenue generated by Customer Services

Customer services revenue (EUR million)

63 +2,0%

139

286

2.518

2.006

1.967 2.006

1.300

1.241

+4,8%

468

486

239

240

24

2024 2025

Customer services Prepaid Terminals Lux. Telco Other

Convergent Fixed only Mobile postpaid only

As more customers chose Proximus' convergent offers, the Fixed-only customer base fell by 32,000 to 773,000 by end-2025, with an ARPC of EUR 49.6, up 0.8% year-on-year. Over the same period, the Residential unit's Mobile Postpaid-only base rose 1.7% to 888,000 customers across Proximus, Scarlet, and Mobile Vikings, with an ARPC of EUR 22.7, down 1.5% from the previous year.

Customers per X-play ('000) Average Revenue per Customer (EUR)

Convergent

Convergent

90,3

23,1

22,7

49,2

49,6

57,8

58,6

90,7

Mobile postpaid only

Mobile postpaid only

Fixed only

Fixed only

Total

2.852

2.881

Total

1.173

1.221

873

888

806

773

2024 2025

2024 2025

Average Revenue Generating Units per Customer Customer Services Revenues (EUR million)

Convergent

3,94

1,17

1,17

1,92

1,83

2,52

2,49

3,86

Convergent

Mobile

postpaid only

Mobile postpaid only

Fixed only

Fixed only

Total

Total

1.967

2.006

1.241

1.300

240

239

486

468

2024 2025

2024 2025

Business revenue

Proximus' Business unit reported EUR 1,963 million in revenue for 2025, down 1.9% from 2024. This decrease was due to a 2.1% drop in Services revenue and a 0.4% decline in Products revenue. Within the Service revenues, the decline was mainly driven by a decrease of Fixed Voice revenue by 6.7% year-on-year or EUR 16 million and a decline of Mobile Services revenue by 2.2% year-on-year or EUR 10 million. Mobile Services' revenue decline was mainly attributed to Proximus' strategy of value-based pricing in a more competitive market. The decline of IT services revenue by 1.3% year-on-year was mainly due to the divestment of Be-Mobile in October 2025.

Business revenue build up (underlying, EUR million)

-16

-3

-10

1.963

-6

-1

-1

-2

Services revenue

-2.1%

2.001

2024 Fixed Voice Fixed Data Mobile Services IT Services Products Lux Telco Others 2025

Proximus' Business unit IT Services revenue reached EUR 440 million in 2025, a year-on-year decrease of 1.3% or EUR 6 million, largely reflecting the divesture impact from Proximus' 92.3% majority stake in Be-Mobile, closed on the 2nd of October 2025. This aside, Proximus IT services revenue was broadly stable year-on-year, driven by lower one-off services compensated for by the increase of managed and recurring IT services revenues.

IT Services revenue (EUR million)

445

440

-1,3%

2024 2025

The revenue from Fixed Data services was slightly down, -0.5% from the previous year, totaling EUR 498 million for 2025. Within the mix, revenue from Internet connections was up, resulting from a 4.8% increase in Broadband ARPU to EUR 50.3 in 2025 supported by price indexation, better tiering, and increased Fiber adoption.

Despite the competitive and stagnating business Internet market, Proximus succeeded in mitigating losses, reporting a total of 445,000 lines at the end of 2025 - a 1.9% decline.

In contrast, revenue from Data Connectivity was down year-on-year, as growth in new data connectivity offerings did not fully offset the erosion of legacy services.

Fixed data revenue (EUR million)

-0,5%

501 498

Fixed Internet ARPU (EUR)

47,9

50,3

+4,8%

Fixed Internet subscriber base ('000)

453

445

-1,9%

2024 2025

2024 2025

2024 2025

Internet Data connectivity & other

In 2025, the Business unit's Mobile service revenue totaled EUR 452 million, a decline of 2.2% year-on-year. Proximus maintained a solid mobile customer base, with 1,768,000 cards, reflecting a reduction of 15,000 Postpaid cards over the past twelve months (-0.8%). This decline was primarily attributed to Proximus' approach of value-based pricing in a more competitive market. The Mobile ARPU experienced a decrease of 2.0% to EUR 18,6 compared to 2024, mainly reflecting lower out of bundle revenue and intense competition in the business market.

The Business unit expanded its M2M park in 2025, ending the year with 4,379,000 Proximus M2M cards-a 1.2% annual increase.

Mobile Services revenue (EUR million)

Mobile postpaid cards ('000)

462

452

-2,2%

1.783

1.768

-0,8%

2024 2025 2024 2025

Machine-to-Machine cards ('000)

Mobile postpaid ARPU (EUR)

4.327

4.379

+1,2%

18,9

18,6

-2,0%

2024 2025 2024 2025

Fixed Voice revenue continued its steady decline, for 2025 recording EUR 222 million, a 6.7% decrease from the previous year. This was mainly due to the ongoing eroding trend in the base of Fixed Voice lines, down by -11.1% over 2025 and ending the year with 458,000 lines. This was partly offset by value management. Fixed Voice ARPU increased by 2.7%, driven by inflation-based price adjustments, raising it to EUR 28.8.

Fixed Voice revenue (EUR million)

Fixed Voice park ('000)

Fixed Voice ARPU (EUR)

237

222

-6,7%

514

458

-11,1%

28,1

28,8

+2,7%

2024 2025

2024 2025

2024 2025

In 2025, revenue from Products declined by 0.4% year-on-year, representing a reduction of EUR 1 million compared to 2024. This decrease was fully attributable to a 6.9% year-on-year decline in revenue from Terminals, which was only partially offset by a 1.9% year-on-year increase in IT Hardware revenue.

IT Products revenue (EUR million)

-0,4%

318



317

83

-6,9%

77

235

+1,9%

240

2024

2025

IT Hardware Terminals

Wholesale revenue

Proximus' Wholesale operations generated revenue of EUR 244 million in 2025, a decrease of 4.2% (EUR 11 million) compared to 2024. This was due to a EUR 22 million drop in Interconnect revenue - without meaningful margin impact - reflecting the continued volume erosion in traditional messaging.

Meanwhile, revenue from Fixed and Mobile wholesale services increased by 5.7% year-on-year, reaching EUR 173 million. This growth was primarily driven by increased contributions from MVNO partnerships and Fiber Joint Ventures.

Revenue (EUR million)

-4,2%

255

244

173

164

+5,7%

91

68

2024 2025

Fixed & Mobile wholesale services Interconnect Other Operating Income

Domestic Direct margin

Proximus' Domestic operations reported a direct margin of EUR 3,651 million in 2025, reflecting a 1.2% year-on-year increase (EUR 44 million), outpacing the growth in Domestic revenues. This performance was primarily attributable to robust customer growth across key services such as Internet and Mobile, complemented by inflation-linked price adjustments and a favorable product mix.

Domestic Direct margin (underlying, EUR million)

+1,2%

3.608 3.651

2024 2025

Domestic OpEx

Domestic operating costs rose 0.6% year-on-year to EUR 1,938 million in 2025, mainly due to inflation, customer growth (especially in Fiber), and higher transformation costs. Proximus' cost-efficiency measures partly offset these increases.

Workforce expenses for the Domestic segment amounted to EUR 1,238 million, representing a 0.5% increase over the prior year. This rise was primarily attributable to automatic wage

1.926

+0,6%

1.938

694

+0,8%

700

Domestic operating expenses (underlying, EUR million)

adjustments associated with inflation, partly offset by lower headcount. By the end of 2025, Proximus' Domestic workforce

was 9,959 full-time equivalents (FTEs), down by 333 FTEs

+0,5%

1.231 1.238

from the 10,291 reported at the end of 2024. This decline was

mainly due to natural attrition and retirements, which

exceeded the number of new hires.

2024

2025

The Domestic non-workforce expenses increased by 0.8% in 2025, representing a year-on-year rise to EUR 700 million. The

Workforce Non-Workforce

main factor was overall inflation, which raised costs like maintenance and rent. In addition, Proximus saw higher customer-related expenses compared to last year due to significant growth in its customer base.

Domestic EBITDA

Proximus' Domestic segment achieved an EBITDA of EUR 1,713 million in 2025, representing a year-on-year increase of 1.9%. This growth was primarily attributable to a higher direct margin, which more than offset increased costs. The Domestic EBITDA margin as a percentage of revenue reached 35.5%, up from 34.8% in 2024.

Domestic EBITDA (underlying, EUR million)

1682

44

1713

-6

-6

2024 EBITDA Direct margin Workforce costs Non-workforce costs 2025 EBITDA

  1. Proximus Global

    Proximus Global faced a shrinking P2P market, persistent SMS CPaaS headwinds, currency effects and integration challenges, though OpEx synergies provided some relief.

    In 2025, Proximus Global reported EUR 1,548 million in revenue, down 7.4% year-on-year (down by 14.8% year-on-year on a pro forma basis). On constant currency basis, the revenue decline was 11.9% on a pro forma basis. This was driven by a decline in both P2P Voice & Messaging and Communications & Data. In an inherently declining market, P2P Voice & Messaging posted a 17.3% revenue decline compared to 2024.

    Communications & Data reflects the acceleration of a structural decline in the CPaaS SMS market - especially for one-time-password and international traffic - despite some growth in Indian domestic CPaaS. The level of evaporating SMS volumes ramped up due to a combination of the transition to other alternative channels (WhatsApp, RCS, email, etc.) and disintermediation by some large customers. These effects could not be offset by the growth of other Omnichannel solutions. Integration challenges also delayed synergy delivery and impacted the Go-to-Market strategy. For the same reasons, Proximus Global posted a Direct margin of EUR 445 million, down 11.1% year-on-year on a pro-forma basis. In constant currency this was down 8.5% year-on-year.

    Global revenue by product group (EUR million)

    Global Direct margin (EUR million)

    1.672

    1.817

    -14,8%

    598

598

494

1.054

1.075

1.219

-13,6%

-17,3%

1.548

468

501

-11,1%

118

103

-13,0%

118

343

350

383

-10,5%

445

2024 Underying 2024 Pro forma 2025 Underlying 2024 Underying 2024 Pro forma 2025 Underlying

P2P Voice & Messaging Communications & Data and eliminations

P2P Voice & Messaging Communications & Data and eliminations

Proximus Global OpEx fell 12.2% year-on-year (pro forma) to EUR 275 million in 2025. Workforce OpEx dropped 17.5% (EUR 34 million) to EUR 162 million, mainly thanks to cost synergies outweighing wage indexations.

As a result, Proximus Global reported 2025 EBITDA of EUR 170 million, a 9.3% drop year-on-year on a pro forma basis (+0.9% compared to underlying 2024 numbers).

Global OpEx (EUR million) Global EBITDA (EUR million)

299

313

-12,2%

197

189

162

113

110

116

-3,2%

-17,5%

275

188

-9,3%

170

169

2024

Underying

2024 Pro

forma

2025

Underlying

2024

Underying

2024 Pro

forma

2025

Underlying

Non-Workforce Workforce

  1. ‌Definitions

A2P: Application to Person messages

Adjusted Net Financial Position: is the Net Financial Position from which lease liabilities are excluded. ARPC: Average underlying revenue per customer.

Annualized full churn rate of X-play: a cancellation of a customer is only taken into account when the customer cancels all its plays. ARPU: Average Revenue per Unit.

Business: unit addressing the professional market including Corporates, Medium and Small Enterprises (including businesses with less than 10 employees).

CapEx: this corresponds to the acquisitions of intangible assets and property, plant and equipment, excluding Right of Use assets (leasing). Communications & Data: one of the two main product groups within the Global segment alongside "P2P Voice & Messaging".

Communications & Data groups CPaaS, Digital Identity, Mobility, Cloud communications, and Internet of Things (IoT).

Convergence rate: convergent residential customers taking both Fixed and Mobile services of Proximus. The convergence rate refers to the percentage of convergent customers on the total of multi-play customers.

Cost of Sales: the costs of materials and charges directly related to revenues.

CPaaS: Communications Platform as a Service is a cloud-based delivery model that allows organizations to add real-time communications capabilities, such as voice, video and messaging, to business applications by deploying application program interfaces (APIs).

Digital Identity: groups DI - Phone ID and DI - Score products.

Direct margin: the result of cost of sales subtracted from the revenues, expressed in absolute value or in % of revenues. Domestic: segment defined as the Proximus Group excluding Global and Eliminations.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization; corresponds to Revenue minus Cost of sales, workforce and non-workforce expenses.

Adjustments (Revenue/EBITDA):

  • The lease depreciations and interests in the Operating Expenses, except for leases that would qualify as finance leases based on the criteria applied to a lessor under IFRS 16.

  • Transformation: costs of employee transformation programs, the effect of settlements of post-employment benefit plans with impacts for the beneficiaries, or pre-identified material one-shot projects (such as rebranding costs)

  • Acquisitions, mergers and disposals: gains and losses on disposal of buildings or consolidated companies, M&A-related transaction costs and deferred M&A purchase price.

  • Litigation/regulation: financial impacts of material1 litigation files, fines and penalties and of law changes (one-off impacts relative to previous years)

EBIT: Earnings Before Interest & Taxes, corresponds to EBITDA minus depreciation and amortization.

Fixed Data Services (Business): Total revenues from Fixed Data, consisting of Broadband, Data Connectivity (including Explore solutions and SD-WAN) and TV.

Fixed Voice park: PSTN, ISDN and IP lines. For Business specifically, this also contains the number of Business Trunking lines (solution for the integration of Voice and Data traffic on one single Data network).

Fixed Voice Services (Business): Total revenues from Fixed Voice access lines and traffic, as well as fixed telephony systems installed at customer premise or serviced from the cloud.

Free Cash Flow: this is cash flow before financing activities and after lease payments.

Global: segment defined as including Proximus Group's international affiliates, BICS, Telesign and Route Mobile (As of December 2024).

Internet ARPU (Business): total Internet underlying revenue, excluding activation and installation fees, divided by the average number of Internet lines for the period considered, divided by the number of months in that same period.

Internet park: ADSL, VDSL and fiber lines. For Residential, this also includes Scarlet and Mobile Vikings.

IT Services revenue (Business): Information Technology (IT) Services, including Managed, Integration and Consultative services, which enable users to access, store, transmit, and manipulate information, with the help of unified communications, computers, as well as necessary enterprise software, middleware, storage, and audio-visual systems. Proximus' IT solutions include, but are not limited to, Security, Cloud, Smart Network, Advanced Workplace and Smart Mobility solutions. It also includes recurring equipment sales to support these services.

IT Products revenue (Business): Revenues from one-shot IT products (boxes, hardware) or one-shot licenses, with the change of ownership towards the customer.

Luxembourg Telecom: including fixed & mobile services, terminals & other.

Mobile ARPU (Business): monthly ARPU is equal to total Mobile services revenues (excl. M2M & network services), divided by the average number of active cards for that period, divided by the number of months of that same period.

Mobile cards: refers to active Voice and Data cards, excluding free Data cards. Postpaid customers paying a monthly subscription are by default active. Prepaid customers are considered active when having made or received at least one call and/or sent or received at least one SMS message in the last three months. An M2M card is considered active if at least one Data connection has been made in the last month.

Mobile-only (Residential): Refers to Mobile Postpaid whereby no other recurring subscriptions are bought. Mobile Prepaid is not included in the Customer services revenue but reported separately.

Mobile Services revenue (Business): Total revenues from Mobile Services including traditional mobile services, using the mobile network connectivity, as well as IoT (including M2M) and Next Generation Communication (including network services as well as new innovative solutions).

Multi-play customer: two or more Plays, not necessarily in a Pack.

Net Financial Position: refers to the net amount of investments, cash and cash equivalents minus any interest-bearing financial liabilities and related derivatives, including re-measurement to fair value and lease liabilities. The net financial position does not include the "other current & non-current payables interest-bearing".

Network Services (Business): focuses on optimizing the interaction between Enterprise customers and its stakeholders, for which revenues are independent from the number of Postpaid cards.

Non-workforce expenses: all operating expenses excluding workforce expenses and excluding depreciation & amortization.

Net Revenue Retention rate (NRR): success indicator of the existing customer base, calculating the percentage of recurring revenue retained from existing customers compared to 12 months back.

Organic Free Cash Flow: Free Cash Flow excluding cash-out related to M&A transactions and related transaction costs and excluding

proceeds from sold assets as part of the company's active asset portfolio management.

Other Operating Income: this relates to income from, for example, reimbursements from damages, employees, insurances, gain on disposal, etc.

P2P Voice & Messaging: One of the two main product groups within the Global segment alongside "Communications & Data". P2P Voice &

Messaging groups Voice, Capacity, Other Legacy and P2P MMS messaging.

Play: a subscription to either Fixed Voice, Fixed Internet, digital TV or Mobile Postpaid (paying Mobile cards). A 4-Play customer subscribes to all four services.

Reported revenues: this corresponds to the total income.

Residential: unit addressing the residential market, including the Customer Operations Unit.

Revenue-Generating Unit (RGU): for example, a customer with Fixed Internet and 2 Mobile Postpaid cards is considered as a 2-Play customer with 3 RGUs.

Terminals: this corresponds to devices for Fixed Voice, Data, Mobile and related accessories. This excludes PABX, IT products and TV CPE.

Underlying: refers to revenue and EBITDA (Total Income and Operating Income before Depreciation, Amortization and Goodwill Impairment) corrected for the EBITDA Adjustments in order to properly assess the ongoing business performance.

Wholesale: unit addressing the telecom wholesale market including other telecom operators (incl. MVNOs) and ISPs.

Wholesale fixed & mobile services includes all solutions that Proximus offers to other operators. These services include fixed internet and data connectivity services, fixed telephony and mobile (incl. MVNO and Roaming) services (excl. Interconnect).

Wholesale Interconnect is the process of connecting an operator network with another operator network. This then allows the customers of one operator to communicate with the customers of another operator. Interconnect includes fix voice, mobile voice and mobile SMS/MMS services.

Workforce expenses: expenses related to own employees (personnel expenses and pensions) as well as to external employees. X-Play: the sum of single play (1-play) and multi-play (2-play + 3-play + 4-play).

  1. ‌Risk Management Report

    Each of Proximus Group's activities is exposed to a variety of risks that have the potential to impact the financial performance of the Group. Proximus has implemented a risk management methodology that follows ISO 31000 - Risk Management Guidelines. Proximus' Risk Management System aims to identify and assess risks and opportunities in various domains and, wherever possible, to manage or mitigate them to an acceptable level of residual risk, in order to safeguard the Group's assets and protect its financial strength and reputation.

    Financial risk management objectives and policies are reported in Note 32 of the Consolidated Financial Statements, published on the Proximus corporate website. Risks related to important ongoing claims and judicial procedures are reported in Note 34 of these statements.

    The enterprise, operational, reporting and compliance risks are detailed below. It must be noted that this is not an exhaustive analysis of all potential risks that Proximus may face.

    Sustainability risks, and the impact they could have on people, society, and the environment, are reported in

    the section "Double Materiality Assessment" of the Sustainability statement.

    1. Enterprise-wide risks

      Proximus Group's Enterprise Risk Management (ERM) is a structured framework designed to identify, assess, respond to and report on strategic and business risks. These risks refer to potential adverse events or circumstances that could significantly impact the achievement of Proximus' strategic objectives.

      ERM is integrated into Proximus' annual strategic planning cycle. The risk identification and prioritization process involves desk-based research, interviews, and surveys targeting management and subject matter experts.

      Each member of the Proximus Leadership Squad (PLS) takes ownership of a subset of the prioritized risks and identifies the key internal stakeholders accountable for the follow-up measures.

      The risk prioritizations and treatments are reviewed at least once per year, or whenever there is a change of context. The ERM report, which provides an overview of major risks and their respective treatment plans, is reviewed and validated by the PLS (more information in the Corporate governance statement). The key findings and outcomes are then reviewed in coordination with the Board of Directors.

      Among the risks identified by the latest ERM exercise, the following risk categories were prioritized:

      • Monetization of fiber investments

      • Proximus Group international growth

      • Human capital: talent attraction, retention and development

      • Operating model evolution and third-party dependency

      • Belgian telecom market competitive dynamics - residential market

      • Belgian ICT market competitive dynamics - enterprise market

      • (Cyber)security and critical infrastructure resilience

Proximus Group

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