Proximus : Management report Proximus SA 2025 (1 MB) (08 management report 2025 proximus plc en)

About this update from Proximus Sa

Management Report Proximus PLC under Belgian Public Law 2025 The development and the results of Proximus in 2025 5 Comments on the annual accounts 5 Risk Management Report 8 Enterprise-wide risks 8 Operational risks 16 Financial reporting risks 17 Compliance and legal exposure 19 Risk Governance 20 Sustainability statement 21 Climate change risks 21 Diversity & Inclusion statement 21 Important events that have occurred after the end of the period 22 Circumstances that can significantly influence the development of Proximus 22 Expertise of the Audit & Compliance Committee members' 22 Evolution in research and development activities 23 Gigabit networks 23 Fiber 23 5G, a driver of innovation 24 5G, an Engine for Industrial & Societal Transformation 24 5G in Healthcare 24 Advancing 5G Network Slicing: From Validation to Value 25 Securing the Airspace 25 Innovating for sustainable energy management 26 Building a Future of Quantum Innovation 26 Proximus Ada - Center of excellence for Artificial Intelligence and Cybersecurity 27 AI for superior customer service 27 Internal initiatives supporting innovation 28 Strategic partnership with Microsoft for cloud and digital communications 29 Proximus Global 30 Corporate Governance Statement 31 Proximus governance model 31 Deviations from the 2020 Belgian Corporate Governance Code 31 Relationship Agreement 32 Most important characteristics of the internal control and risk-management systems 32 Control environment 33 Organization of internal control 33 Risk analysis 34 Risk mitigating factors and control measures 35 Information and communication 35 Supervision and assessment of internal control 36 Composition and functioning of the governing bodies and their committees 36 Board of Directors 36 Composition of the Board of Directors 37 Remuneration Report 41 Remuneration of the members of the Board of Directors 43 Global Rewards Program -general vision 45 Remuneration of the members of the Leadership Squad 47 Wages and working conditions: internal comparisons and company performance 68 Application of the Remuneration Policy and votes on previous Remuneration Report 70 Position of conflicting interest 72 Mandates exercised in companies in which Proximus participates 73 Miscellaneous 76 Branches 76 Use of financial instruments 76 Members of the Joint Auditors 77 Auditor responsible for certifications of the consolidated accounts of Proximus Group 77 In conclusion 78 Report by the Board of Directors to the annual general meeting of shareholders on 15 April 2026 on the annual accounts of Proximus PLC under public law as at 31 December 2025 Dear Shareholders, We are pleased to report on the operations of the 2025 financial year and to submit for your approval the annual accounts per 31 December 2025 . ‌The development and the results of Proximus in 2025 ‌Comments on the annual accounts Balance sheet The intangible fixed assets decreased by €133 million to €1,298 million, primarily due to depreciation exceeding new investments in IT assets and broadcasting rights. The tangible fixed assets increased by €99 million to €3,942 million. This rise reflects continued investments in fiber infrastructure, digital transformation, and the renewal and consolidation of the mobile network, supporting the strategic growth and efficiency objectives of Proximus NV. Participations in affiliated companies and entities with which an equity relationship exists decreased by €212 million to €3,279 million. In 2025, several capital increases took place within the Proximus Group, including Fiberklaar (€575 million), Proximus NXT (€35 million), and other entities (€36 million (Unifiber,Doktr,DCU & Lux Infra)). In addition, the shares of Proximus Real Estate were transferred to Proximus Infrastructure Holding (-€450.5 million) as part of a capital increase in kind amounting to €720 million. Participations in DCU (-€54.6 million), Proximus Luxembourg Infrastructure (-€2.5 million), and Be-Mobile (-€13 million) were sold. A write-down of €1.057 million was recognized on Proximus Global due to lower-than-expected results and reduced future outlook. Inventories and work in progress decreased by €15 million to €92 million. Receivables of up to one year increased by €143 million to €607 million, mainly as a result of a dividend granted by Proximus Luxembourg (€68 million, to be received in 2026) and an increase in trade receivables (+€39 million). Financial investments increased by €91 million to €333 million, driven mainly by the revaluation of treasury shares (+€31 million) and higher term deposits. Cash and cash equivalents increased by €96 million to €248 million, while accrued income and prepaid expenses rose by €79 million, mainly because of prepaid service fee for the long term use of the fiber network. Equity decreased by €51 million to €1,419 million, primarily because net profit was lower than the appropriation of earnings. Provisions for risks and charges decreased by €49 million to €410 million. This decrease is mainly attributable to a higher discount rate and outgoing payments affecting post-employment benefit provisions. Provisions for site restoration and legal disputes also declined. Long-term liabilities increased by €775 million to €5,510 million, mainly due to the issuance of a new €750 million bond under the EMTN programme, combined with higher trade payables. Short-term liabilities decreased by €592 million to €2,357 million. This was primarily driven by the repayment of a €500 million loan in 2025 and the final instalment (€60 million) for the full acquisition of Fiberklaar in 2024. Financial liabilities decreased by €94 million due to lower intra-group accruals, while trade payables increased by €6 million. Liabilities relating to taxes, remuneration and social security increased by €49 million owing to higher outstanding tax debts. Other liabilities rose by €18 million and deferred income by €63 million, as a result of the IRS settlement on the bond issuance of 2025. As of December 31, 2025, current liabilities exceed current assets. However, Proximus benefits from various financing sources, such as directly available cash surpluses within the Group, the issuance of short-term paper from the commercial paper program, the use of existing credit facilities, and/or the use of its existing Euro Medium Term Notes program. Income Statement Compared to 2024, operating income decreased in 2025, from €4,503 million to €4,387 million. Revenue declined by €86 million, mainly due to the transfer of ICT activities from Proximus NV to Proximus NXT in July 2024, partially offset by price increases and business growth. Other operating income increased due to higher re-invoicing related to ICT activities, while capitalized production decreased. Operating expenses dropped by €549 million to €3,824 million. Purchases of goods decreased by €128 million mainly as a consequence of the transfer of ICT activities to Proximus NXT. Services and miscellaneous goods declined by €34 million, partly as a result of continued cost control and stabilizing prices for services and utilities. Personnel expenses fell by €13 million, mainly due to a reduced headcount following the transfer to Proximus NXT, as well as lower pension costs. Depreciations on tangible fixed assets increased by €34 million due to sustained high investment levels. Depreciations on goodwill decreased to €33 million versus €360 million in 2024 because the merger with Belgacom Mobile was fully depreciated by the end of 2024. Non-recurring operating expenses decreased by €62 million, mainly due to exceptional depreciation on buildings and settlement agreements in 2024. As a result, operating profit for 2025 amounted to €563 million, compared with €131 million in 2024. Financial income increased by €375 million to €907 million, mainly due to capital gains realized on the sale or transfer of financial fixed assets (Be-Mobile, DCU, Proximus Luxembourg Infrastructure, Proximus Real Estate) and higher dividends received in 2025. Financial expenses increased by €998 million to €1.273 million. This rise was partly due to the revaluation of treasury shares, resulting in a gain of €31 million in 2025 versus a loss of €50 million in 2024, and partly due to an €18 million increase in interest expenses. In addition, an impairment of €1.057 million was recorded on the participation in Proximus Global. Profit before tax amounted to €197 million in 2025, compared with €388 million in 2024. Corporate income tax increased by €30 million to €59 million. The effective income tax rate for 2025 amounts to 39.9%, which is significantly higher than the Belgian statutory corporate tax rate of 25%. The higher effective tax rate is mainly the result of an impairment booked on the participation held by Proximus NV in Proximus Global NV, which is not tax-deductible for corporate tax purposes. This effect is somewhat compensated by, among others, (i) non-taxable capital gains realized on the sale of various shareholdings by Proximus SA in FY25, (ii) the application of R&D incentive regimes, (iii) the application of investment deductions, and (iv) an adjustment of tax provisions relating to previous years. Consequently, profit for the year before appropriation totalled €140 million in 2025, compared with €360 million in 2024. Appropriation of results We propose the following appropriation (in €): 2025 Profit of the financial year to be appropriated + 139.549.922 EUR Accumulated profit + 285.333.356 EUR Profit to be appropriated = 424.883.278 EUR Transfers from capital and reserves + 4.168.865 EUR Transfers to capital and reserves - 31.776.614 EUR Profit to be distributed (dividends) - 193.891.474 EUR Profit to be carried forward = 203.384.055 EUR On December 5 th , 2025 an interim dividend of € 97 million has been paid. Right and commitments not included in the balance sheet Proximus has the right to issue Commercial Paper for a total of € 1,000 million, of which € 0 million was issued end 2025, and the right to issue Euro Medium Term Notes for a total of € 5,000 million, of which € 3,850 million was issued end 2025. On 17 January 2025, Proximus signed a Sustainable Revolving Credit Facility of € 700 million for a period of three years with the option to extend twice by further one-year periods. Another bilateral revolving loan facility of €50M maturing in December 2026 with Belfius, was signed in September 2025. Per 31 December 2025, there were no outstanding balances under these Facilities. ‌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. ‌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 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 1Shareholders' interest alignment · Regulatory and legal risks (See Regulatory framework and Compliance and legal exposure chapter below for more information) Monetization of fiber investments Fiber is widely recognized as the superior and most future-proof fixed connectivity technology. On top of offering the highest download and upload speeds and low latency, fiber is also highly reliable and secure. Proximus' ambition is to provide gigabit network coverage to 100% of premises in Belgium, maximizing fiber coverage and complementing with other technologies, to: support current and future customer needs (remote work, connected homes, next generation videos, gaming, etc.) and enable ARPU uplift; retain and grow market share across residential and enterprise customers; attract new wholesale market opportunities; simplify the operating model and reduce operating costs, by ceasing the sale of copper and ultimately phasing out copper within - at most - five years of the deployment of fiber in a given area. Should some of these benefits not materialize the turnover and profitability of Proximus could be significantly affected. During the past years, Proximus has significantly increased investments in accelerating the deployment of a fully open and non-discriminatory performant fiber network with the ability to co-use fiber assets together with competition and maximize network utilization. Proximus' gigabit fiber network standalone deployment focuses on areas with the highest population density. In 2021, Proximus created the joint ventures Fiberklaar (in Flanders) and Unifiber (in Wallonia) with the experienced industrial and financial partners EQT Infrastructure and Eurofiber, respectively, to expand the fiber roll-out to medium-dense areas. In July 2024, Proximus acquired full ownership of Fiberklaar to bring about enhanced strategic autonomy and increased flexibility for Proximus in the deployment of fiber in Flanders. In the German-speaking Community, a region that typically has a very low population density, Proximus, Ethias and the government of the German-speaking Community have set up GoFiber, a public-private partnership and joint venture that will introduce fiber to the German-speaking municipalities by the end of 2026. Beyond city centers, construction costs increase, making the deployment of fiber networks economically more difficult. Although Proximus has the largest footprint of FTTH (Fiber-to-the-Home) in Belgium, the roll-out of competing FTTH networks could negatively impact the profitability of Proximus' investment by putting pressure on both wholesale and retail prices, making price tiering more difficult, and requiring larger differentiation between the offers. Telenet and Fluvius set up Wyre, a joint infrastructure company with plans to cover up to 78% of all homes in Flanders and parts of Brussels with fiber (FTTH) by 2038. Wyre's roll-out began in the summer of 2023. To increase access to fiber for Flemish households in less dense zones while reducing civil works, Proximus, Wyre, Telenet, and Fiberklaar signed a Memorandum of Understanding in 2024 to potentially collaborate on fiber network deployment. In October 2025, the Belgian Competition Authority (BCA) and the BIPT, announced a market test on the collaboration of Proximus, Wyre, Telenet and Fiberklaar for joint fiber network deployment in Flanders which is needed for BCA to conclude its investigation. Orange Belgium has announced an ambition of up to 66% fiber coverage in Wallonia and Brussels, and 75% of the national footprint by 2040. In July 2025, Proximus and Orange Belgium signed a Memorandum of Understanding to expand fiber deployment and increase access to gigabit networks in Wallonia. At the end of 2025, the Belgian Competition Authority and the BIPT were still examining the conditions for its implementation. Until the fiber deployment collaboration process is fully concluded, all parties will continue to roll out their own networks independently, which carries a risk of overbuild. Adverse or negative regulatory decisions on FTTH pricing and/or access conditions could negatively impact the roll-out of fiber in Belgium, particularly in less dense zones that would prove too expensive to cover. Next to Wyre and Orange Belgium, DIGI Belgium also started its fiber deployment in December 2024 with a coverage of about 100,000 households by the end of 2025. DIGI intends to significantly scale its fiber footprint in the coming years. Scaling both the number of fiber activations and the roll-out can be challenging in a tight labor market. Failure to retain the right talent for the deployment capacity could lead to delays in roll-out and activations, which in turn could have an impact on the timing of the benefits and the cost of roll-out. Proximus and its partners are taking several measures to mitigate this risk: transfer of resources from copper to fiber deployment, increase of capacity via outsourcing partners, upskilling of existing employees, structural reduction of the workload via self-install, and the flattening-out of seasonality via pro-active migrations. Challenges in obtaining permits from municipalities or quality and compliance issues in operations could impede the speed of the deployment. Proximus management puts a strong focus on quality standards and compliance across both standalone and joint venture footprints. Most Belgian consumers who are not yet connected to fiber already have access to higher speed Internet through VDSL or cable. Proximus mitigates the risk of a lack of demand by actively promoting fiber and its benefits, including pre-roll-out marketing and remarketing activities. Advertising campaigns, complemented by customer-centric use cases, have created a strong brand association between fiber and Proximus. Fiber is also available for customers of the other consumer brands of Proximus: Scarlet and Mobile Vikings. Cost control of fiber roll-out remains an attention point. Roll-out costs need to be balanced with strong commercial results, price increases, and additional efficiencies. Competitive dynamics, including fiber offers by Telenet and Orange as well as low price fiber offers of DIGI, may lead to further pressure on market prices, and/or make price tiering and upselling more difficult. Proximus focuses on product superiority, customer experience, and a multi-brand strategy to mitigate the risk (see also "Belgian telecom market competitive dynamics - residential market", below). A customer retention risk also exists related to potential customer experience issues during the migration of customers of Proximus and Other Licensed Operators (OLO) to fiber. For example, overly long installation delays during periods of high demand relative to available personnel. Proximus' management is monitoring the fiber migration customer effort and fiber customer experience closely, and taking corrective actions through, among other things, dedicated fiber migration and in-home experience agile teams. Copper cost avoidance is an important value driver for Proximus. Delays in deployment or gaps in deployment zones could impact copper out-phasing, as the full benefits only materialize once we are able to fully cut the last copper line. Copper out-phasing is also an important element in Proximus' sustainability roadmap. Delays in copper out-phasing would thus affect both profitability and sustainability goals. This risk is mitigated through careful planning of customer migrations and the allocation of dedicated resources, including both personnel and IT investments. Human capital: Talent attraction, retention, and development Failure to recruit, sustainably employ, engage, and retain a talented workforce could impact Proximus' competitiveness and ability to achieve its strategic goals. The Belgian labor market remains under pressure, with a low unemployment rate, especially in the north of the country, leading to longer times needed to recruit for a broad range of profiles, e.g. field technicians, shop employees and ICT consultants. To mitigate this risk facing talent attraction, Proximus runs various communication actions both on employer branding and recruitment topics, diversifies recruitment channels with a strong focus on referral, and leverages strong ties with external partners including local agencies. The evolution towards Total Talent Management, integrating both internal and external resources, also plays a critical role in our sourcing strategy. Proximus also diversifies talent sourcing geographically, through affiliates in Serbia, India and Portugal to support Domestic activities. Proximus Global also accesses a diverse global talent pool. In the context of workforce cost increases, particularly for Domestic activities, (see "Operating model evolution and third-party dependency" below), failure to adapt the current workforce's skills to ever-evolving needs would hinder Proximus' ability to execute its strategic plan. A Strategic Workforce Planning program and a skills mapping exercise allow Proximus to anticipate recruitment, upskilling and reskilling needs in both the short- and long-term. To secure future-proof skills and to guarantee sustainable employment for existing employees, Proximus continues to invest in training programs and internal mobility, providing many opportunities for upskilling and development. The use of Generative AI for productivity gains is encouraged, with well-scoped use cases developed with the support of Proximus Ada data scientists, in a secure and ethical way. Gen AI training is also offered to all employees to optimize daily tasks. To boost employee engagement, Proximus' Think possible company culture stimulates agile ways of working for greater empowerment, customer-centricity, simplification and innovation. In 2024, a new evaluation system and a new remuneration system (i.e. a simpler salary increase system to ease market alignment, as well as an optimized bonus system) have been introduced for the employees of Proximus SA, in line with the desired cultural transformation. Those systemic changes increase the focus on performance based on mutual trust and clear feedback. Eligible Proximus SA employees are allowed up to 3 days of homeworking per week. Proximus offers employees a coherent set of user-friendly and secure digital tools that can be used on any device, allowing increased flexibility and more hybrid ways of working. Diversity, equity and inclusion policies and initiatives further contribute to the employees' well-being and sense of belonging. More information can be found in the section "Social information" of the Sustainability statement. Operating model evolution and third party dependency With a challenging socio-economic and geopolitical context, and inflation levels that remain high compared to previous decades, costs need to be carefully managed.For Proximus SA and its Belgian affiliates, the unique Belgian system of automatic salary indexation to protect employees' purchasing power, and Proximus' obligation to index as soon as the pivotal index is reached, led to 1 salary indexation in 2025. International sourcing for specific profiles (as detailed in "Human capital: talent attraction, retention and development") and non-replacement of natural leavers when possible helps limit the cost impact. Proximus Group also enforces strict cost control discipline and cost reduction programs, constantly exploring ways in which to enhance and expedite cost savings without compromising customer experience. To mitigate inflationary pressures, Proximus utilizes, among others, long-term supplier relationships, contract protections, advanced purchasing, multi-sourcing strategies, and hedging mechanisms. Proximus also puts a lot of focus on CapEx efficiency initiatives. For example, by sharing parts of the mobile network infrastructure with Orange Belgium, Proximus benefits from efficiencies in network operations, and ensures sustainable investments in new network technologies. Joint ventures and partnerships, combined with an increasingly global footprint, provide an opportunity to gain scale and reduce operating costs in comparison to standalone operations. This also results in for a more complex group structure for Proximus, which brings higher compliance risks and increased third-party risks. Proximus Group's governance structure and control mechanisms are being adapted gradually to better deal with this heightened complexity. Failure to achieve planned cost efficiencies would lead to a decrease in profitability. Alongside strict cost management, Proximus SA is countering this impact via price indexations. Should Proximus' brand power not be strong enough to allow for indexations, the inability to compensate for part of the cost increase through targeted price increases would significantly impact margins. The potential churn impact of price indexations is mitigated by a more-for-more strategy, with commercial results having remained strong after previous price indexations. Although the telecom sector's resilience has been demonstrated in recent years, a deteriorating economic climate could lead to a decline in customer spending in both the Consumer and Enterprise markets, as well as higher bad debt levels. Churn and bad debt evolutions are followed very closely by the management, with no worrying evolutions noted to date. Social tariffs and no-frills offers help keep essential telecom services affordable to all. Struggling customers are offered adapted payment plans. Belgian telecom market competitive dynamics - residential market The Belgian market is an evolving market with changing competitive dynamics that could impact market value going forward. Proximus has demonstrated its ability to adapt to changing market conditions in the past. Failure to continue to adapt and mitigate the impact of a changing market structure and pricing dynamics could significantly impact Proximus' domestic EBITDA. As mentioned above (see "Operating model evolution and third-party dependency"), it is critical that Proximus maintains its brand strength and the resulting ability to monetize investments and to index prices to compensate for cost increases. Proximus' Belgian connectivity revenues are at risk from increased competition, particularly in Wallonia and Brussels, where Proximus has a large market share. Following the 2022 spectrum auction with conditions favoring a new entrant, Citymesh and Romania's DIGI joined forces to acquire a portion of the spectrum and set up a joint venture for the network company to address business and private individuals, respectively. DIGI began its commercial operations in Belgium in December 2024 with low mobile tariffs, as well as a fixed Internet offer on their own fiber network (limited to about 100,000 homes by end 2025). The arrival of DIGI on the Belgian market led to competitive reactions with price decreases, more for more and strengthened commercial means for established operator's sub brands. Orange Belgium cut prices of its Hey sub brand in 2024, ahead of DIGI's launch. In 2025, Orange is outphasing the VOO brand, betting on the strong Orange brand name for its nationwide convergent premium offer. Telenet and Orange Belgium have respective commercial wholesale agreements providing access to each other's HFC and FTTH networks for a 15-year period, leading to increased convergent competition across the country. Telenet turned the Base brand into a convergent brand back in 2024 and started offering a mobile-only solution under the TADAAM brand mid-2025. Proximus' fiber technology and strong brand association with fiber helps mitigate the churn risk in fiber zones, reduce exposure to price disruption, and maintain pricing power. Proximus has also been consistently improving its multi-play value propositions. The Proximus Flex+ portfolio has been launched in March 2025, adapted to fiber internet and offering customers the ability to fully personalize their pack, selecting only the services they need or see as added value. Also, in August 2023, Proximus reached an agreement with DIGI Belgium and Citymesh Connect on mobile wholesale services, restricted to the 4G network, and mobile infrastructure. Whilst DIGI deploys its own 5G mobile network, the wholesale agreement mitigates the potential short-term revenue impact of DIGI on Proximus Group through wholesale revenues. Another risk mitigation against loss of market share in mobile is that Proximus has kept full control of its core network and spectrum assets. Proximus managed to secure more spectrum - across all bands - than other mobile players during the spectrum auctions of 2022. This strength mitigates the mobile churn and pricing risk for Proximus, as it allows Proximus to differentiate and guarantee a superior mobile experience. Alongside competitive dynamics, evolving customer needs, such as the decreasing need for fixed voice and the acceleration of the 'cord-cutting' trend, i.e. customers cancel their digital TV subscriptions, impacts revenues and customer stickiness, as well as cost per digital TV customer due to the high fixed costs. "Over the top" competition (streaming services) drives up the cost of exclusive content. The high-quality Proximus' digital TV offer, and the partnerships with streaming services partly mitigate these risks. Proximus sub brands Scarlet and Mobile Vikings have very strong NPS scores and a convergent offer complementary to the Proximus brand offer. Scarlet addresses the price-sensitive segment, while Mobile Vikings offers competitively priced Mobile and Internet to young (at heart) digital-savvy customers. Proximus' strong convergent multi-brand offer mitigates the risks on the market shares and on the value of the Proximus premium brand. However, an increase in the residential market shift to sub brands or further pressure on prices could negatively impact market shares, ARPU and overall profitability of the Residential market activities of the Proximus Group. Finally, Proximus' performance in the Residential market could be impacted by disruptive technologies (e.g. satellite) and new business models. Should Proximus not be able to adapt rapidly and well enough, this would have an impact on market share and profitability. Belgian ICT market competitive dynamics - enterprise market On the domestic B2B mobile market, Proximus enjoys a solid market share. Intensifying price-based competition could lead to lower revenues and margins in the Corporate and Small & Medium Business segments. Citymesh, as part of European IT company Cegeka, is looking to monetize its mobile spectrum investments, acquired in a joint venture with DIGI. The loss of key customers could impact brand perception and Proximus' pricing power. In fixed connectivity, the range of Explore (convergent service platform) and SD-WAN solutions is managed to address evolving customer needs while limiting revenue impact through targeted and proactive migrations to next-gen solutions. Fixed voice erosion could further accelerate, thus impacting revenues and margins beyond current forecasts. Proximus mitigates the telecom churn and value erosion risks through its network leadership, good customer relationship management, and a strong portfolio of convergent ICT solutions. In the highly competitive ICT market, the launch of Proximus NXT in June 2023 established a strong brand aimed at building a leadership position in the Benelux region. With ambitions to further enhance its IT offerings and leverage its leading expertise in areas such as workspace, cloud, sovereign cloud, security and AI, Proximus transferred its B2B IT activities to its affiliate, Proximus NXT IT, on July 1, 2024. This merger with existing teams enables a sharper focus on the unique aspects of the IT business, fostering a distinct B2B IT identity and strengthening its integration with Proximus' affiliate and partner ecosystem. Failure to effectively address evolving customer needs (including compliance with ESG standards), new technologies and market developments within the enterprise sector in a timely manner, or a failure to introduce competitive products or services, could result in lower revenues and reduced profitability for Proximus NXT IT. These risks, if realized, would ultimately have a negative impact on the overall financial performance of Proximus, affecting both its top and bottom line. (Cyber)security and resilience of critical infrastructure Regional conflict or geopolitical escalation may disrupt infrastructure and affect Proximus's operations and strategy. The telecom sector has become a prime target in the current geopolitical environment. As operators of critical national infrastructure, Proximus faces sustained threats from cyber-criminal groups seeking financial gain and from state-sponsored actors pursuing espionage or destabilization. European and allied agencies report an increase in intrusions targeting telecom networks, including compromises of core routers and backbone equipment. Recent incidents affecting submarine cables in the Baltic Sea and globally observed campaigns attributed to foreign state-aligned groups underline the growing intensity and sophistication of cyberattacks, many of which remain undetected for extended periods. Our operations in Belgium, the Benelux region and international CPaaS markets expose us to a broad range of threat vectors, including: Attacks on critical infrastructure: Advanced DDoS attacks and other coordinated campaigns may disrupt the availability of telecom, digital identity, cloud and CPaaS services. Data-breach threats: Intrusions may target customer or employee personal data, business-sensitive information, or identity-related assets. Social engineering and fraud: Phishing, smishing and impersonation attacks target employees, partners, and customers to obtain privileged access. Supply-chain dependencies: A compromise affecting a supplier, cloud provider or international partner may create cascading operational or data-security impacts. A significant cyber incident could affect the confidentiality, integrity, and availability of our systems and data, leading to major service disruption, data exposure, ransomware-related paralysis, and regulatory investigations or fines. Consequential impacts include erosion of customer trust, reputational damage, contractual liabilities, and substantial remediation and recovery costs. To address these evolving threats, Proximus is implementing a multi-year cybersecurity program focused on structural resilience. Key pillars include Identity & Access Management, securing critical infrastructure, protection against disruptive malware, customer protection and fraud prevention, and strengthened detection and response capabilities. These efforts are complemented by security-by-design practices, security testing, employee awareness and training, and the growing use of artificial intelligence and machine learning to enhance monitoring and incident detection. Proximus aggregates and analyses classified, commercial, and open-source threat intelligence and operates several Malware Information Sharing Platforms (MISP) to collect and share structured cyber-threat indicators. We collaborate closely with Belgian Cyber Command, the Centre for Cybersecurity Belgium (CCB), NATO, the European Union, and allied nations, as well as with industry bodies such as ETIS, GSMA, FIRST and the Belgian Cybersecurity Coalition. This ecosystem provides actionable intelligence, joint training, and improved readiness for large-scale, cross-border cyber incidents. Furthermore, Proximus also acts to protect its customers against fraud. With the support of the government, Proximus invests in anti-phishing and anti-fraud platforms (SMS, email, interconnect security). More information on data protection and privacy can be found in the section "Data protection" of the Sustainability statement. Shareholders' interests' alignment As majority shareholder, the Belgian State, through SFPIM, has the power to determine matters submitted for a vote of shareholders, including the ability to control the outcome of certain corporate actions such as dividend policy, mergers, and other extraordinary transactions. The Belgian State also has the power to appoint and dismiss the directors, but it must comply with legal and statutory requirements such as, for example, the appointment of independent directors. The interests of the Belgian State regarding director appointments, dividend policy, mergers, and other matters and the factors it considers in exercising its votes could be different from the interests of Proximus' other shareholders or noteholders. The lack of a clear vision of the State as shareholder in Proximus could be detrimental to the strategic alignment between Proximus and its majority shareholder and strain Proximus' relationship with other stakeholders. ‌Operational risks Operational risk relates to risks arising from systems, processes, people, and external events that affect the operation of Proximus' businesses. It includes product life cycle & execution, product safety & performance, information management, data protection & cybersecurity, business continuity, supply chain, and other risks, including human resources and reputational risks. Depending on the nature of the risk involved and the business or function affected, Proximus uses a wide variety of risk mitigation strategies, including adverse scenario stress tests, back-up-/business-continuity plans, business process reviews, and insurance. Proximus' operational risk measurement and management relies on the Advanced Measurement Approach (AMA) methodology. A dedicated 'as-if' adverse scenario risk register has been developed to make the stress tests relevant. Proximus is covered by extended general and professional liability, property damage, and business interruption insurance, as well as by a dedicated cybersecurity insurance program. Nevertheless, these insurance programs may not provide indemnification should the traditional insurance exclusions (non-accidental events) apply. The most prominent examples of operational risk factors are explained below: Resilience and business continuity Sourcing and supply chain reliability Data protection and privacy (See Sustainability statement for more information) Resilience and business continuity The success of the Group depends on the continuous performance of its IT systems, networks, datacenters, people, and processes. As a provider of essential electronic communications services, uninterrupted service delivery is critical for customers, partners, and society. Business continuity supports the organization's ability to deliver its essential services and strategic objectives without unacceptable interruption, even during disruptive events. The overarching objective is to ensure continuity of services and performance across all core operations. Continuity may be threatened by a wide range of events, including large-scale blackouts, floods, storms, fires, terrorist acts, sabotage, cyberattacks, ransomware, natural disasters linked to climate change and human errors. These events can compromise network availability, data integrity, platform stability, or the functioning of critical business processes. Disruptions can adversely affect service continuity and profitability, leading to customer-impacting outages or degraded performance. Consequential impacts may include erosion of customer trust, reputational damage, regulatory or contractual liabilities, and substantial remediation and recovery costs. Prolonged outages could also affect public safety and critical sectors that depend on our infrastructure. Business continuity management focuses on detecting, preventing, minimizing, and responding to disruptive events so that business-critical services and functions can continue operating at acceptable levels. Our approach is aligned with good practice standards and Belgian regulations on telecoms and critical infrastructure. Key measures include corporate-level business continuity plans, crisis management frameworks, network and platform resilience initiatives, and increased preparedness for power interruptions, cyber incidents, and climate-related risks. Priorities are coordinated by the respective business units and overseen by the business continuity board, which defines scope, sets priorities, and validates outcomes. Preparedness levels and resilience progress are reported annually to the Audit and Compliance Committee. Sourcing & supply chain reliability Proximus depends on its partnerships with suppliers to provide the equipment needed to ensure business continuity and a sustainable supply chain. Global instability, logistics disruptions, energy crises, climate-induced natural disasters, etc. increase the risk to our supply chain resilience. Any breach of relevant legislation or non-compliance with international standards for human rights by our suppliers could lead to legal action and negatively impact Proximus' reputation. Risk mitigation is done via multi-sourcing, Tier 2 management, improved inventory management (advanced ordering, better forecasts, etc.), demand reduction, and product and process reengineering. Thanks to our enhanced Supplier Relationship Management (SRM), we are able to continuously assess risks together with the partnering supplier, thus reducing vulnerability and ensuring continuity. The relationship with key suppliers is assessed and documented by means of meeting minutes and surveys, which lay down the common strategies. We continuously monitor risks through an SCRM (Supply Chain Risk Management) by Sphera, alerting the appropriate stakeholder in the event of any disruption along the supplier chain. EcoVadis conducts sustainability performance evaluations, risk assessments, and audits for national direct suppliers, while major global suppliers undergo these processes through the Joint Alliance for CSR (JAC) initiative. We strictly follow up on critical suppliers' contractual liability through our Supplier Code of Conduct and Service Level Agreement clauses. Thanks to our active monitoring and risk mitigation actions, Proximus' supply chain has proven itself resilient in previous crises, with financial impact being limited as a result. ‌Financial reporting risks In the area of financial reporting, besides the general enterprise risks impacting financial reporting, the main risks identified include new transactions and evolving accounting standards, changes in tax law and regulations, and the financial statement closing process. New transactions and evolving accounting standards New transactions can have a significant impact on the financial statements, either directly in the income statement or in the notes. Inappropriate accounting treatment can result in financial statements that fail to provide a true and fair view. Changes in legislation (e.g. pension age, customer protection) can also significantly impact the reported financials. New accounting standards may require the gathering of new information and the adaptation of complex (billing) systems. If not adequately foreseen, the timeliness and reliability of the financial reporting could be jeopardized. It is the responsibility of the Corporate Accounting department to follow developments in the area of evolving standards; both local General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) are considered. Changes are identified, and the impact on Proximus' financial reporting is proactively analyzed. For each new type of transaction (e.g. new product, new employee benefit, business combination), an in-depth analysis is conducted from the points of view of financial reporting, risk management, treasury, and tax. In addition, the development requirements for the financial systems are defined in a timely manner and, in compliance with internal and external standards, are systematically analyzed. Emphasis is placed on the development of preventive controls and the setting up of reporting tools that enable a posteriori control. The Audit and Compliance Committee (ACC) and the Leadership Squad are informed on a regular basis about new and upcoming financial reporting standards and their potential impact on Proximus' financials. Changes in tax law and regulations Changes in tax laws and regulations (corporate income tax, VAT, etc.) and their application by the tax authorities can have a significant impact on financial statements. To ensure compliance, it is often necessary to set up additional administrative processes within a short timeframe, to collect relevant information, or to run updates on existing IT systems (e.g. billing systems). The tax department continuously monitors potential changes in tax law and regulations, as well as interpretations of existing tax laws by the tax authorities. Based on laws, doctrine, case law and political statements, as well as available draft laws, etc., a financial and operational impact analysis is performed. The outcome of this analysis is reflected in the corresponding financial statements, in accordance with the applicable framework. The evolving complexity of the legal and regulatory environment, particularly in the context of international operations, poses risks to financial reporting. Conflicting requirements among and between domestic, foreign, and supranational laws can complicate compliance efforts, increase the likelihood of misstatements, and affect the integrity and accuracy of our financial statements. Financial statement closing process The delivery of timely and reliable financial statements remains dependent on an adequate financial statement closing process. Clear roles and responsibilities in the closing process of the financial statements have been defined. During the monthly, quarterly, half-yearly; and annual financial statement closing processes, continuous monitoring of the various steps is undertaken. In addition, different controls are performed to ensure quality and compliance with internal and external requirements and guidelines. A highly detailed closing calendar is drawn up for Proximus and its major affiliates, which includes a detailed overview of cross-divisional preparatory meetings, deadlines for ending specific processes, exact dates and hours when IT subsystems are locked, validation meetings, and reporting deliverables. For every process and subprocess, different controls are performed, including preventive controls, where information is tested before being processed, and detective controls, where the outcome of the processing is analyzed and confirmed. Special attention is paid to reasonableness tests, where financial information is analyzed against underlying operational drivers, and coherence tests, where financial information from different areas is brought together to confirm results, trends, etc. Tests on individual accounting entries are performed for material or non-recurrent transactions. The combination of all these tests provides sufficient assurance on the reliability of the financials. ‌Compliance and legal exposure Proximus is an autonomous public sector enterprise that has adopted the legal form of a limited liability company under Belgian public law and therefore is also governed by certain provisions of Belgian public and administrative law. The interaction between the laws applicable to all private limited liability companies and the specific public and administrative law provisions and principles has in the past presented and may continue to present difficulties of interpretation and may give rise to legal uncertainties for Proximus. Proximus' policies and procedures are designed to comply with all applicable laws, accounting and reporting requirements, regulations, and tax requirements, including those imposed by foreign countries, the EU, as well as applicable labor laws. The complexity of the legal and regulatory environment in which Proximus operates and the related costs of compliance are both increasing due to additional requirements. Furthermore, foreign and supranational laws occasionally conflict with domestic law. Failure to comply with the various laws and regulations, as well as changes in laws and regulations or the way they are interpreted or applied, may result in damage to Proximus' reputation, civil and criminal liability, fines, and penalties, an increased tax burden, or costs incurred through regulatory compliance and restatements of Proximus' financial statements. Proximus is subject to significant regulation and supervision, which could require it to make additional expenditures or limit its flexibility, affecting its financial results in general and otherwise adversely affecting its business. Proximus may be sued by third parties for infringement of proprietary rights. The telecommunications industry and related service businesses are characterized by the existence of a large number of patents and trademarks. Litigation based on allegations of patent infringement or other violations of intellectual property rights is common. As the number of entrants into the market grows, and the overlap of product functions increases, the possibility of an intellectual property infringement claim against Proximus increases. In addition, the Group may be sued for copyright or trademark infringement for purchasing and distributing content through various fixed line or wireless communications and other media, such as through its portals. Any such claims or lawsuits, with or without merit, could be time-consuming, result in costly litigation, and diversion of technical and management personnel, leading to product shipment delays or delays in the granting of patent applications, or requiring the Group to develop non-infringing technology or to enter into royalty or licensing agreements. Such royalty or licensing agreements, if required, may not be available on commercially reasonable terms, or even at all. ‌If a successful claim of product infringement were to be made against the Group, or it was unable to develop non-infringing technology or license the infringed or similar technology in a timely manner, and on a cost-effective basis, and commercially reasonable terms, operating revenue and net profit could decline. Risk Governance Proximus has established a comprehensive risk governance model designed to ensure effective oversight. The model is aligned with the Belgian Corporate Governance Code and integrates board-level supervision with executive management responsibilities and an embedded internal control framework. Board oversight The Board of Directors holds the ultimate responsibility for supervising the effectiveness of the Group's risk management and internal control systems. It is supported in this role by the Audit and Compliance Committee (ACC). More information can be found in the Corporate governance statement. In 2025, Proximus initiated an enterprise-wide exercise to develop risk appetite statements for key strategic, financial, operational, compliance, and reputation risks. These statements, once approved by the Board: clarify the level of risk the Group is willing to accept in pursuit of its objectives; support consistent decision-making across the organization; enhance the integration of risk considerations into strategy, planning, and performance management; improve the quality of reporting to the Board and stakeholders. Risk Management & Compliance Committee The Risk Management and Compliance Committee objectives are: overseeing the company's most critical enterprise and operational risks and how management monitors and mitigates those risks. reviewing files in which decisions must be taken by finding a balance between risk-taking and cost, in line with the Group's risk appetite. ensuring timely follow-up of internal audit actions, with particular attention to those that are overdue. Proximus has general response strategies for managing risks, which categorize them according to whether the company will avoid, transfer, reduce, or accept the risk. These response strategies are tailored to ensure that risks are within acceptable risk and compliance guidelines. In 2025, the Risk Management and Compliance Committee held 5 sessions. Decisions and insights from the Risk Management and Compliance Committee were systematically reported to the Proximus Leadership Squad and the Audit and Compliance Committee, ensuring transparency and alignment between executive decision-making and board oversight. Internal Audit In line with international best practice requirements, Proximus' internal audit function forms an integral part of the Internal Risk Management and Control System and provides assurance to the Audit and Compliance Committee concerning the 'in-control status' of Proximus Group segments/units/entities and processes. Internal Audit provides independent analyses, appraisals, recommendations, counsel, and information to both the Audit and Compliance Committee and Proximus Management. More information can be found in the section "Business conduct" of the Sustainability statement. ‌Sustainability statement ‌Climate change risks This section is divided into the following parts: overview of main impacts, risks and opportunities. climate change mitigation and energy. climate change adaptation More information about our impacts, risks and opportunities can be found in the Annual Report: Sustainability Statement → Environmental information → Climate change. ‌Diversity & Inclusion statement We are committed to increasing the diversity of our workforce and the representation of women in top management functions, ensuring equal career opportunities and providing an inclusive working environment. We celebrate diversity in terms of gender, age, cultural background, disability, sexual orientation, and other legally protected characteristics. Our diversity and inclusion goals are anchored around six key pillars, which target specific groups at risk of vulnerability within our workforce: gender: promoting women at all levels, especially in digital and technical functions. generations: taking specific initiatives for inclusion of all generations, with a focus on employees aged over 50. diversability: employing individuals with disabilities and neurodivergent traits, while promoting awareness of their unique challenges. LGBTQIA+: defining clear measures for the inclusion of colleagues from the LGBTQIA+ community. ethnicities: making employees aware of unconscious biases and strengthening their sense of belonging to our community. equity: ensuring gender equality and equal opportunities in the workplace through inclusive processes and equality policies. Our strategic objective is to reach an inclusion index of 85% by 2025 for Proximus. As we will increasingly rely on AI and technology in various aspects, mitigating biases inherent in these systems poses a challenge. In the next three to five years, we will focus on regularly training employees on unconscious bias and cultural diversity. Additionally, we will introduce a biannual Diversity & Inclusion certification, organize roundtables on diversity, and keep launching communication campaigns to raise awareness. More information about our impacts, risks and opportunities can be found in Annual Report: Sustainability Statement → Social information ‌Important events that have occurred after the end of the period In January 2026, Proximus subscribed to a EUR 20 million convertible bond with a one-year maturity issued by Unifiber, an entity in which Proximus holds a 50% interest and accounted for using the equity method. The related cash outflow will be reflected in Proximus' 2026 financial statements. ‌Circumstances that can significantly influence the development of Proximus Circumstances that can significantly influence the development of Proximus are listed in caption 'Risk Management Report". ‌Expertise of the Audit & Compliance Committee members' Proximus has an Audit & Compliance Committee which consists of five non-executive directors, the majority of whom are independent. In line with its charter, it is chaired by an independent director. A majority of the members of the Audit & Compliance Committee have extensive expertise in accounting and auditing. The Chairwoman of the Audit & Compliance Committee, Mrs. Catherine Vandenborre, holds a degree in Business Economics as well as qualifications in Tax and Financial Risk Management. Both the Chairwoman and a majority of the members have held several board or executive mandates in large Belgian or international companies. ‌Evolution in research and development activities In a fast-changing world, Proximus works daily to promote and encourage innovation. A close collaboration with important stakeholders such as partners and customers enables Proximus to develop breakthrough solutions. That allows the company to address today's challenges and contribute to shape the future of the digital world. ‌Gigabit networks Proximus participates in organizations like ETSI, ITU, and GSMA, fostering knowledge sharing on network design, architecture, power management, and innovation. Partnerships with key suppliers like Nokia and Ericsson bring access to specialized equipment, innovation facilities and intellectual property, leveraging existing infrastructure to stimulate innovation. ‌Fiber Alongside accelerating the deployment, Proximus is also integrating AI models into repair processes. In 2025, elaborating on the success of the predictive maintenance models industrialized in 2023, FRIDA (Fiber Repair Intelligent Digital Assistant) was created. FRIDA is Proximus' AI-driven initiative to revolutionize fiber repair and maintenance through predictive, diagnostic, and prescriptive automation. It focuses on deploying several prototypes across key use cases, enabling proactive incident detection and automated diagnostics to reduce manual workload and improve service reliability. Furthermore, FRIDA lays the foundation for autonomous, self-healing networks, driving operational efficiency and customer satisfaction. ‌5G, a driver of innovation In 2025, Proximus continued to bring together high-performance 5G connectivity, AI, and ecosystem partnerships to deliver tangible outcomes for industry and society. Innovation efforts focused on three horizons: scaling 5G uses-cases, preparing differentiated connectivity through network slicing, and extending security into airspace with U-Space technologies. This work bridges everyday innovation with national infrastructure modernization, laying the groundwork for safer operations, smarter production, and resilient public services. ‌5G, an Engine for Industrial & Societal Transformation Across logistics platforms, healthcare settings, and urban mobility corridors, Proximus validated how private 5G networks can securely support real-time operations, remote control, autonomous maneuvering, and high-reliability machine communications. As in 2024, we continue to be supported by fundings from Federal and client's evolution needs. In industrial environments, operators were able to manage complex equipment remotely with improved safety and productivity. In healthcare, we advanced a reference architecture for hospital connectivity, tested practical use cases with clinical teams, and reinforced the ecosystem with training and coaching-setting the stage for slicing-enabled services as early as 2026. In urban maritime contexts, 5G contributed to safer navigation through remote piloting and continuous video telemetry, demonstrating the impact of ultra-low latency and deterministic performance. Beyond industry, we also showcased how performant public 5G, combined with AI and advanced sensing, can unlock everyday automation-illustrated by autonomous robotics controlled over public 5G and learning by imitation. These demonstrations emphasize how intelligent automation and connectivity can quickly scale from pilots to consumer-facing experiences. At the European level, Proximus started on a long-term program to modernize cross-border rail connectivity, preparing the transition from GSM-R to the FRMCS standard along high-speed corridors, including Paris-Brussels. This multi-year initiative is conducted with leading infrastructure and operator partners as SNCF France and Infrabel in Belgium as some key other operators in both countries and will run through 2028, creating a strategic testbed for next-generation railway communications and safety systems. ‌5G in Healthcare In 2025, Proximus partnered with leading hospitals and industry experts to deliver groundbreaking projects that accelerate the digital transformation of healthcare. Through the CARE project at UZA, we introduce 5G-powered telemonitoring, connected ambulances with 5G slicing, and advanced crisis management solutions. ‌The MEDIC project at UZ Brussel deploys a private 5G infrastructure enabling innovative applications such as speech-to-text and real-time environmental and patient monitoring. At Jan Portaels, Proximus is helping the hospital onboard the right digital infrastructure and technologies to prepare for the future-rolling out smart networks, connectivity solutions, and tools that form the foundation for efficient care processes and digital transformation. At UZ Ghent, we replace traditional DECT systems with 5G MPN solution. Finally, our SafeRoom solution, implemented at UZ Brussel and St Lucas Gent, enhanced patient safety through fall-detection sensors and AI-driven monitoring. ‌These initiatives demonstrate how Proximus leverages technology to make healthcare more efficient, safer, and future-ready. Advancing 5G Network Slicing: From Validation to Value To respond to the growing need for prioritized, guaranteed, and application-specific connectivity, we progress 5G network slicing from concept to real-world validation in 2025 targeting media, events, and public safety use cases in preparation for commercial readiness in 2026. In large-scale live events, we validated dedicated broadcast uplink slices that ensured predictable throughput, low latency, and resilient coverage for multi-camera productions. At one of Belgium's major summer festivals "Les Ardentes Festival de Liege", we collaborated with Haivision and RTBF to secure contribution quality for live video over Public 5G, demonstrating end-to-end performance that meets production-grade standards. We extended slicing trials to Antwerp Pride, working with Proximus Media to confirm how tailored connectivity can safeguard operational flows and content distribution when networks are under pressure. Same for the Christmas Event of this end of year 2025 with the RTBF. ‌Securing the Airspace "At Proximus, we aim to contribute to a sustainable and safe digital society." Renaud Tilmans Enterprise Telco Services & Ops Lead Proximus expanded innovation into U-Space to address growing drone-related security risks. Together with Senhive and SkeyDrone, we introduced a detection solution leveraging telecom towers and advanced sensors to provide real-time airspace monitoring and intrusion alerts. This system is focusing on critical sites protection such as airports, datacenters, and industrial facilities. Additional work with SABCA and Multitel under Skybridge initiatives subsidized by DigitalWallonia finalized the analysis in early 2025 to reinforce our commitment for a safe and sustainable world and allow communication of drones beyond visual line of sign (BVLOS). ‌Innovating for sustainable energy management Proximus is accelerating its energy transition by ensuring that its operations are powered by renewable sources wherever possible. The focus goes beyond sourcing green energy: it's about building flexibility into the system. This includes actively managing energy flows through advanced tools such as the Proximus Energy Box, developed in collaboration with Belgian start-up Companion.energy. The solution integrates features like nomination management, curtailment strategies, and real-time optimization to balance supply and demand. These innovations enable Proximus to respond dynamically to market signals and operational constraints, reinforcing resilience while reducing environmental impact. By combining digital intelligence with energy expertise, Proximus is setting a benchmark for how large enterprises can lead in both sustainability and flexibility. ‌Building a Future of Quantum Innovation Quantum technology is set to play an essential role in the future in many industries. After successful network field trials of a quantum safe communication in the past 2 years, Proximus launched Quantum Circle in the spring of 2024, Belgium's first community dedicated to advancing quantum technology. This pioneering initiative unites a diverse group of quantum explorers, industry experts, and visionaries to collaborate on transformative applications and drive widespread market adoption of quantum innovations. Quantum Circle's mission is to create an ecosystem that fosters cutting-edge research, co-create groundbreaking applications, and guarantee the necessary investments to deliver significant societal and economic impact. By bringing together researchers, academics, technology providers, and end users from both the public and private sectors, the community identifies and accelerates high-impact applications in quantum computing, communication, and sensing. With over 150 member organizations, Quantum Circle has quickly grown to host its own events and training facilities , while actively engaging Belgian business leaders and policymakers to support the acceleration of quantum technology adoption. This initiative positions Proximus at the forefront of Belgium's technological future, laying the groundwork for the country's quantum revolution. Proximus Ada - Center of excellence for Artificial Intelligence and Cybersecurity In 2025, Proximus Ada continued to strengthen its role as a center of excellence for Artificial Intelligence and Cybersecurity within the Proximus Group. Our efforts focused on driving innovation, ensuring resilience, and delivering tangible business value through advanced technologies. Over the past year, Ada has consolidated its position as a key enabler of digital transformation by combining cutting-edge AI capabilities with robust security frameworks. A major achievement has been the expansion of AI use cases across multiple domains, including customer experience, network optimization, and operational efficiency. More than 100 AI initiatives have been explored since Ada's inception, with over 60 projects now in production and an additional 40 in development. These projects span diverse areas such as predictive maintenance, anomaly detection, generative AI, and agent-based automation, all designed to enhance service quality and operational efficiency. Notably, 2025 marked the successful deployment of additional GenAI-powered solutions for customer support and internal knowledge management, as well as advanced AI-driven tools for HR and our first agentic AI solution for data engineering processes. At Proximus Ada, we have introduced an advanced AI solution to support our cybersecurity analysts. This initiative addresses the increasing complexity of cybersecurity governance in rapidly evolving environments. Designed as a centralized, intelligent reference system, the tool streamlines access to security policies and compliance requirements across the organization. While initially focused on Security by Design teams, the long-term vision is to extend its use to data scientists, engineers, and operational teams, enabling quick access to validated security guidelines throughout the IT use case lifecycle. It has become a key pillar for security-by-design validation, reinforcing Ada's mission to merge artificial intelligence with cybersecurity excellence. This milestone underscores Proximus Ada's commitment to ethical, sustainable innovation and strengthens its position as Belgium's first center of excellence in these domains. Looking ahead, Proximus Ada will accelerate the adoption of next-generation AI technologies, including multimodal models and autonomous systems, and continue to evolve its operating model to scale innovation efficiently while maintaining strong governance and compliance. By leveraging centralized expertise and fostering closer collaboration with business units, we aim to accelerate the delivery of transformative AI solutions and ensure sustainable growth in an increasingly competitive market. ‌AI for superior customer service Proximus is beating the Generative AI paradox and is materializing benefits by enhancing its customer service, mainly with Proximus Ada's expertise managing the technological part. Proximus is now investing in Agentic AI technology, to further support ambitions. 2025 initiatives include: Customer Support initiatives: FAQ Search: improved information retrieval on Proximus Help center powered by GenAI, increasing the overall self-service success rate of the help center. Proximus Assistant: Mass market: Boost current voice and chatbot using GenAI for more accurate responses, improving successful self-service rate. GenAI classifiers: 80% of customer intents are now handled by GenAI classifiers for more accurate routing, which are currently being evolved into Agentic conversational classifiers. GenAI answers: One shot to conversational evolution: 12 conversational chatbot flows in production, progressive roll-out to other flows. First successful release on voicebot. Agentic AI: Proof of concept with a Troubleshooting AI agent, to test the technology and understand its limits and potential. Professional market: Instaure chatbot powered by GenAI as self-service, exploration and tests ongoing on several use cases. Colleague Support initiatives: Contact Reason detection: Classify each call and chat interaction (500k+ / month) with precise customer contact reason with three levels of granularity, enabling more targeted coaching and effective problem management amongst others. Writing Assistant: Provide support to 450 chat agents with easy correction, translation and summary features powered by GenAI, upcoming for email (50k+ requests / day). AI assistant for technical support : Unlock ServiceNow+ AI features to enhance technical support for professional customers, including case summaries and resolution notes. The innovation lies in the proof of concept of Agentic AI to automate proactive monitoring of cases on Explore lines, though configuration of different AI agents and collaboration logic. My AI Assistant (MAIA ): launched in August 2024, this chatbot streamlines information retrieval for customer-facing colleagues. ‌Internal initiatives supporting innovation The Proximus Innovation Committee serves as a central point for innovation within the company, promoting internal alignment, collaboration, and knowledge exchange. Additionally, the Committee manages partnership opportunities and funding requests from external organizations. This dual function makes it a vital player in Proximus' innovation strategy, integrating both internal and external innovation efforts. Two times a year Proximus organizes an internal ideation competition called the Innovation Accelerator. This focuses mainly on identifying and nurturing innovative initiatives with the potential to generate new revenue streams, both in areas related to our core business and beyond, emphasizing initiatives with long-term growth prospects, prioritizing future potential over short-term impact. The Customer Experience Challenge is an annual company-wide hackathon designed to foster cross-departmental collaboration, aiming to spark innovative ideas and improve customer experience. In the 2024 edition, 10 teams participated, focusing on different topics within the Residential and SME segments. ‌An important financial tax incentive for Proximus is the R&D withholding tax exemption. A dedicated team scans all technical projects versus the R&D Frascati criteria to assure the project is eligible to claim the tax exemption for technical expert employees having the correct technical degree as mentioned in the Belgian tax law. To be compliant with those criteria, a project needs to be novel, creative, technical challenging, systematic and transferable. This is done in collaboration with the tax experts from the Finance team and the HR team who manage the payroll and the diplomas of the Proximus employees Strategic partnership with Microsoft for cloud and digital communications Since 2024 Proximus has had a partnership with Microsoft, focusing on advancing cloud and digital communication services at an international level. This collaboration aims to enhance customer engagement across multiple channels by leveraging the best-in-class products of Proximus' international affiliates-BICS, Telesign, and Route Mobile-alongside Microsoft's technology. The key initiatives related to the partnership are: Communication Platform Services: Enhance customer communication and security services through innovative solutions. Top-Tier Microsoft Service Provider: Position Proximus NXT as a leading provider in 5G applications, edge computing, workplace solutions, security, cloud (Azure cloud and sovereign clouds), cloud for SMEs, data, and AI in the region. Go-to-Market and Sales Actions: Collaborate with Microsoft on joint marketing and sales efforts to benefit all customer segments using Microsoft products and services, with an increased focus on sovereign cloud collaboration in 2025 and 2026 When it comes to the internal digital transformation, the main elements of the partnership are the following: Migration to Microsoft Azure: Proximus is undergoing a strategic digital transformation by adopting Microsoft Azure. This move will enhance our IT environment with advanced AI integration, ensuring superior reliability, scalability, and security. Developer Experience and Talent Attraction: Offer a top-tier developer experience, attract future talent, and harness generational AI in the public cloud. Standardized Development Platform: Standardize development on a unified platform for in-house applications, empowering engineers, increasing project agility, and improving cost efficiency, all while adhering to Proximus standards. ‌Taken all together, this partnership and internal transformation drive innovation and excellence in customer service and IT infrastructure, positioning Proximus as a leader in the digital communications landscape. ‌Proximus Global At the end of 2025, Seckin Arikan was appointed CEO of the international operations. In early 2026, the final steps were taken to complete the rollout of the strategy, as well as to assess its impact on research and development within the international group. BICS BICS provides solutions in digital communications, cloud communication services, mobility and IoT for telecom operators, virtual network operators, service providers, enterprise software providers and global enterprises. It provides services across more than 200 countries and carries around 50% of the world's data roaming traffic. The company continuously invests in advancing its global communication solutions portfolio addressing telco, enterprise, and cloud segments. BICS focuses its R&D on delivering 5G services, (e)SIM and IoT technology, digital communication services and a strong fraud, security and analytics offer. It monitors market evolution and customer needs to enhance its services, features, and overall product portfolios. Telesign Telesign focuses its research and development efforts on connecting, protecting, and defending digital identities of global enterprises. It provides fraud protection, secure communications, and enable the digital economy by helping companies and customers to engage with confidence throughout customer identity solutions. Telesign regularly releases updates to its services which incorporate new features and enhance existing ones. Route Mobile Route Mobile is a global communications platform-as-a-service (CPaaS) provider that helps businesses engage with their customers through various channels (SMS, voice, email, etc.). It specializes in cloud communications, offering solutions like mobile identity verification, omnichannel customer engagement, and SMS firewall services. Its services enable companies to communicate securely and effectively, often used by industries like banking, retail, e-commerce, and digital platforms to improve customer interactions and manage security.

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