•Analyst presentation

•half year results 2009•23 July 2009

2

This presentation contains forward-looking statements about Mobistar, in particular for 2009. Although Mobistar believes these statements

are

based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the

forward-

looking statements include, among others, the effectiveness of the mobility centric operator strategy including the success and market acceptance of the mobile voice and date abundance plans, the Mobistar brand and other strategic, operating and financial initiatives, Mobistar’s

ability to adapt to the

ongoing transformation of the telecommunications industry, regulatory developments and constraints and the outcome of legal proceedings, risks and uncertainties related to business activity.

Cautionary statement

3

Market approach

Benoit Scheen

4

Accelerate fix-mobile substitution

through launch of abundance offers (supported by ADSL)

Increasing mobile data revenues

(Internet Everywhere, Mail & Surf, , MATMA, …)

Leverage complementary partnerships

Push full

convergence strategy

Focus first on voice convergence (“One Office Voice Pack”), then on full convergence (voice + data) through

Business Pack offers

Integrate services

into telecommunication solutions: from

network to services

Mobility Centric

Residential: Mobility Centric Substitution

Business: Mobility Centric Convergence

Since July 2007, we have consistently further implemented our unique strategy

5

For the residential market this was translated into a clear segmented portfolio

6

completed with a data product line which addresses the demand in a progressive way

22

29

98

H1 2008

16

6938

H1 2009

ADSL

IEW

•Number of clients (‘000)

7

In the business segment, Mobistar continues to apply its convergence strategy

Mobistar

elected as Telecom service provider of the year

•

More than 130 000 mobile cards secured on the One Office Voice Pack offer

•

Since launch 1 year ago already 1000 companies connected on One Office Full Pack

•

Close to 140 000 active fix connections (essentially in the business segment)

8

Revenue evolution (Mio EUR)

Customer base mix

•

Important growth in postpaid (up to 70% of the customer base) thanks to iPhone

offers & good positioning in the business market

Product Synergies

•

Successful uptake of the One Office Voice Pack product

Network Synergies

•

3G Network swap in order to have 1 unique equipment supplier between Vox

and Mobistar

With Vox, after 5 years of sustained growth new phase with successful integration

18

33302719

7

H1 2009

20082007200620052004

9

Within the machine to machine segment, Mobistar

leads the way since 2002

•Market size M2M Belgium: ~230 k sim

cards* (HY 09)

Telematics Point of sales Telemetry

116,866

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2005 2006 2007 2008 Q2 2009

•Mobistar

M2M card evolution

•* Based on company estimations

10

Mobistar’s

leadership recently recognized by its selection as the France Telecom International M2M center

Before : decentralized modelNew International M2M center

(located within Mobistar)

1SIM

Global SIM –

hustle free solutioncomplex logistic and high costs

Ready for another exclusive

success story

11/07/2008 26/06/2009

12

Business performance

Benoit Scheen

13

41 5019 29 18

150 105

144

157

-19

106.2%105.7%103.8%102.4%100.7%

-50

0

50

100

150

200

250

300

-20%

0%

20%

40%

60%

80%

100%

120%

218

Q1 08

37

193

Q2 08

11

173

Q3 08

35

Q4 08

41**

28*

-29**

58

Q1 09

22

3

Q2 09

Competition

Mobistar retail

MVNO @ Mobistar

Active Penetration

27

Net Adds (#In K) Active Penetration

221

(*) excl. MATMA and VOXmobile

customers

(**) Source: Mobistar estimates based on company announcements incl

MVNO (restatement for BASE inactivity)

With a continuous focus on value, Mobistar net adds in line, underperforming MVNO’s

14

Postpaid users passed the 2 Mio land-mark

Prepaid

Post BUS

Post RES

44%

2.912.806

2005

51%

3.152.455

2006

54%

3.489.859

2007

55%

H2 2009

MVNO

Laptop cards

Postpaid % retail cust base

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

H1 20080%

100%

3.738.604

2008

58%

3.787.578

57%

20%

40%

60%

80%

Postpaid % of retail base**

3.645.378

Customers on Mobistar network*

(*) excl. MATMA and VOXmobile

customers

(**) excluding MVNO cards

15

Excl. regulatory effect, usage compensates pricing pressure driven by mobile data

34,5

FY 2007

32,4

FY 2008

33,1

H1 2008

0,6

MTR Decrease

0,7

Roaming Off & on net

5,3

Price

5,1

Usage

31,7

H1 2009

•-0.2€

•-1.3€

•€

month

16

Commercial focus on mobile data continues to deliver growth

•

Mobile data revenues up to 28% of mobile service revenues in H1 2009 (from 20% in H1 2008)

•

Non-SMS mobile data represent 21% of total mobile data revenues (vs. 20% in H1 2008)

•

Supported by the successful uptake of •

SMS abundance offers•

Strong take up Internet Everywhere•

Blackberry and Mobile Office Cards in the Business market

•

Leader in MATMA applications with ~120,000 cards

0

50

100

150

200

H1 2007 H1 2008 H1 2009MATMA

Mobile data handset and PC

SMS Premium

SMS Person to Person

+36%€ mio

17

Benoit Scheen

Efficiency at Mobistar

18

Launched in Sept 2008, Odyssey 2011 is the company-wide transformation program

What is Odyssey 2011?

Odyssey 2011 is a set of programs, projects, strategy implementations and new ways of working together designed to change our company and cope with external and internal

challenges

(e.g. Mobile Data, Fix Program, revenue engineering)

(e.g. IT Renewal) (e.g. Organizational evolution)

Our ambition is to be celebrated by our customers as the trusted leader in personal(ised) communication and services

19

Measures to improve gross margin profitability in postpaid

•

Small adjustments to older tariff plans

•

slight increase in national tariffs of 1 cent per minute (including VAT)

•

change of tariff outside the bundle for some old price plans to 20 EURcent/min

•

On data packages, out of bundle prices adapted

•

after included bundle has been used up, each MB will be billed at 10 cents (including VAT) from 1st July 2009

20

Measures to improve gross margin profitability in prepaid

SMS abundance threshold increased

to min 15 EUR recharge

Valorize instant messaging sessions in the prepaid offer

21

In order to stay competitive, Mobistar

needs to transform its IT

•

Improve time to market

•

Increase level of compliance

•

Increase customer experience

•

Reduce complexity

•

Reduce total cost of ownership

+/- 80~4%

~6%

2008 2012

•IT cash-out ambition (capex-opex

in Mio EUR/as % of revenues)

22

38.3%

39.0%

Odyssey program starts to deliver first results

Q1 2009

H1 2009

FY 2009 guidance

Close to 40%

Initiatives launched since Q1 2009

On gross margin :

Redesign of prepaid offers

Small tariff adaptations

On opex/capex:

IT Renewal: RFP launched

Contingency plan across all departments

2009 EBITDA margin evolution

23

Regulatory Update

Benoit Scheen

24

Several regulatory decisions are pending

Billed Revenues

incoming voice

14%15%

69%

3%8%

5%

H1 2008

8%

9%

H1 2009

visitor roaming66%

3%

incoming data

roaming off net

Breakdown Mobistar Mobile service revenues

34%

66%

31%

69%Handset subsidy

GSM license extension

Emission rules

Mobile termination rate

Mobistar

is anticipating handset subsidy while securing business

as usual

DECEMBER 08

Mobistar initiated internal program to

analyze possible impact

23 APRIL 09: EU court decision

01 JUNE 09: 1st

market launch

EU Court

of Justice

states

that

the Belgian

prohibition

on

joint offers is not

compatible with

the Unfair Commercial Practices

Directive

New Belgian law still to come but some first

initiatives from distribution

Mobistar

strategy to turn handset subsidy into a value creation

ACQUISITION LOYALTY & RETENTION CHANNEL

1.

Redesign tariff portfolio

2.

Contain SAC

1.

SRC in order to avoid churn & washing machine effect

2.

Develop sophisticated

customer value base mgmt capabilities

3.

Drive customers to controlled channels

for contract renewal

1.

Balance commercial acts from acquisition to acquisition & contract extension

2.

Reinforce controlled channels

in overall mix

3.

Develop web share

in commercial acts

4.

Contain open channels

VALUE OPTIMIZATION

MTR evolution since July 2007

10.63

9.94

9.028.5

7.937.2

12.5213.34

11.43

6.0

10.0

14.0

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

€c/

min

Mobistar Proximus Base

•MTR evolution (EURcent/min, indexed prices)

Status on national termination

Mobistar positioning

•

MTR model should be cost oriented

•

Suspension / annulment BIPT decision imposing symmetric rates by Court =>Asymmetric still justified given later entrance of Mobistar

•

In case of symmetry, Mobistar is closer to 3rd operator in terms of customer base

Next steps

• MTR cost modeling exercise ongoing by BIPT

• BIPT will launch public consultation on methodology, glidepath

and symmetry/asymmetry

• Needs to request advices from Competition Counsel and European Commision

Update on other regulatory files

•

2G license renewal

•

Mobistar

2G license expires on 27/11/2010

•

Royal decree 17/07/2009 defines that

•

Each operator will pay 80819€/month/Mhz (non indexed) duplex till 2021

•

Choice payment modalities left at the operator : one payment or 11 annual fees

•

Discrimination with incumbent remains, license supposed to start

after Mobistar!

•

Legislation on emission rules is a regional competence

•

Brussels : 3V/m (cumulative) decree approved but execution decrees

for implementation still under discussion (timing September 2009)

•

Wallonia: Decree adopted on April 1st

2009 3V/m (non cumulative)

•

Flanders:

Federal norm does not apply anymore and discussion on going (leading to difficulties to obtain building permits)

29

Werner De Laet

Financial performance

30

In a challenging economic and regulatory landscape, solid performance

(*) includes other revenues

Mio € H1 2008 H1 2009 %

Total Statutory Revenues (*) 762.7 778.1 2.0%Total Turnover 745.5 761.6 2.2%Total Service Revenues 716.5 713.3 -0.4%Cash Expenses -462.7 -499.7 8.0%EBITDA 300.0 278.4 -7.2%In % of service revenues 41.9% 39.0% -6.8%Depreciations and amortizations -85.9 -80.8 -5.9%Net finance income -0.3 -2.8 833.3%Tax expense -68.7 -66.3 -3.5%Net profit 145.1 128.5 -11.4%Diluted earnings per share (in €) 2.30 2.14 -7.0%

Mobistar consolidated income statement

31

SMS abundance offers impacting incoming revenues, billed revenues under pressure

•Mio €

21,8716,5

Vox H1 2009

713,3

Customer roaming

H1 2008 Billed revenues

-17,6

1,3

-3,1 5,1

Visitor roaming

0,5-3,8

National Incoming

-7,5

32

Profitability of Belgian activities impacted by regulation and growing fix business

Mio € H1 2008 H1 2009 %Total Statutory Revenues 703.5 713.0 1.4%Total Turnover 687.9 698.8 1.6%Total Service Revenues 660.8 651.7 -1.4%Cash Expenses -396.7 -425.2 7.2%EBITDA 306.8 287.9 -6.2%In % of service revenues 46.4% 44.2%Depreciations and amortizations -80.6 -74.7 -7.3%EBIT 226.2 213.2 -5.8%

Mobistar Mobile Income Statement

Mio € H1 2008 H1 2009 %Total Statutory Revenues 41.4 46.5 12.3%Total Turnover 39.8 44.2 11.1%Total Service Revenues 39.6 44.2 11.6%Cash Expenses -49.4 -58.3 17.9%EBITDA -8.0 -11.8 46.9%In % of service revenues -20.2% -26.6%Depreciations and amortizations -1.3 -2.0 50.0%EBIT -9.3 -13.8 47.3%

Mobistar FIX Income Statement

33

VOXmobile

activities are still growing according to plan and synergies start to materialize

Mio € H1 2008 H1 2009 %Total Turnover 18.3 21.8 19.4%Total Service Revenues 16.5 18.4 11.8%Cash Expenses -17.1 -19.5 14.3%EBITDA 1.2 2.3 91.7%In % of service revenues 7.3% 12.5%Depreciations and amortizations -4.0 -4.1 1.3%EBIT -2.8 -1.8 -37.5%

VOXMobile Income Statement

34

Despite inflation and new lines of products, Odyssey program starts to deliver savings

Total cash expenses

Non-headcount costLower selling fees driven by less business sales & change in dealer remuneration, partly offset by better consumer postpaid sales, mobile data & contract extensions in residential channels

Optimization of advertising, sales expenses and general expenses as response to economic downturn

Sourcing impacts in domain of logistics, billing and IT Maintenance

VOX

Decrease thanks due to Group synergies on handsets purchasing

Headcount costs

Total Mobistar headcount Avg H1 2009 at 1377 (vs. 1448 FTE Avg H1 2008due to outsourcing and efficiency gains throughout the company

Impact of high index

Interconnect and other costs of sales

More interconnect costs driven by SMS abundance retail offers, partially offset by less voice costs mainly due to lower VAS rate & customer roaming regulation impact.

Higher site volumetry

Growth in Mobile Data applications

Handsets & RT costs

in line with strong increase in handset sales, mainly driven by I-Phone launched H2 2008<

16,6

499,7

462,716,3

Vox

Handset/RT Costs

229,9209,3Interconnect

& OtherSales Costs

35,3

62,2

139,3

446,1

H1 2008

52,9

65,6

134,9

483,4

H1 2009

HeadcountCost

Non-Headcount

Cost

•* 2008 handset/RT costs restated •** after intercompany elimination

35

3G network build out and IT renewal according to the investment plan

Capex (in Mio EUR)Capex to service revenues ratio (in %)

* excluding the proceeds from sale of equipment related to the 3G equipment renewal

160147

165

0

50

100

150

200

250

Vox

CAPEX/service revenues

Sales and Other

11%

2006

10%

2007

11%

2008

49

153

10%

70

H1 2008

433

187

9%

61

H1 2009

IT

Network2

36

Balance sheet remains solid

Mio € Dec-08 Jun-09

Non-current assets 898.0 877.5

Current Assets 295.5 279.2

Cash and Cash equivalents 6.8 6.8

TOTAL ASSETS 1,200.3 1,163.5

Net Equity 452.5 308.5

Provisions 15.1 14.6

Long Term Debt 75.0 50.0

Short Term Debt 243.3 222.3

Current Liabilities 414.4 568.1

TOTAL EQUITY AND LIABILITIES 1,200.3 1,163.5

Net Debt / (Net Cash) -314.0 -265.5

Balance Sheet

37

Free cash flow generation in line with guidance

Mio € H1 2008 H1 2009 %EBITDA 300.0 278.4 -7.2%Change in working capital -4.0 170.3Net financial charges (incl other not withdrawn exp.) -0.3 -2.0Corporate Taxes -68.7 -66.3

Net cash from operating activities 227.0 380.4 67.6%Purchase of intangible and tangible assets -69.6 -61.1 -12.2%Proceeds from sale of equipment 13.2 0.0

Net cash used in investing activities (56.4) (61.1) 8.3%

Operating cash flow 170.6 319.3 87.2%Proceeds/Repayment long-term interest - bearing loans and borrowings

0.0 -25.0

Proceeds/Repayment from new short term interest-bearing loans and borrowings

77.7 -21.0

others -0.2 -0.2Free cash flow before dividend payments and capital movements

248.1 273.1 10.1%

Capital increase (decrease) 248.0 0.0Capital and share premium -248.0 0.0Dividend payments -173.6 -273.1Share buy-back -73.7 0.0Available Cash Flow 0.8 (0.0)

Free Cash Flow Generation

Concluding remarks

Benoit Scheen

Mobistar

reconfirms full year guidance while adapting capex/sales ratio

Total Turnover flat revenues

confirmed

Ebitda-margin close to 40%

confirmed

Net results

240-260 Mio EUR

confirmed

Capex/sales

between 11% -12%

around 10%

40

Q&A