Solid Q1 EBITDAaL growth Updated dividend in the COVID-19 context - Seite 4

Arnaud Castille, Chief Financial Officer, stated:

The measures taken following the pandemic crisis will impact on the company’s financial performance. The first quarter of this year was impacted for a period of about two weeks, so it is too early to say how this will impact the rest of the year. But we can imagine an impact on revenue, caused by lower gross adds in mobile and convergence partially offset by a reduction in churn. The decrease in handset sales will have an impact on the topline but may also see a rebound after the crisis. Therefore, we managed to adjust our costs, which were also reduced through the decrease of the customer acquisition cost. Hence, we only expect a limited impact on EBITDAaL over the year. We will re-evaluate the COVID-19 impact and the potential change to our guidance after the second quarter. Additionally, Orange Belgium has a robust balance sheet with a leverage of 0.8.

The launch of our new mobile portfolio will not only lead to simplicity for our customers, but will also help to streamline our processes aiming at lowering the costs for managing those portfolios.

In the light of the Bold Inside programme we have continued to make the necessary efforts to control our costs, which provided its results with stable costs versus last year in a revenue growth context.

The confirmation of the competition authorities that no additional interim measures are needed anymore for the execution of the mobile network access sharing agreement with Proximus has enabled us to transfer employees to the newly created joint venture, MWingz and to start the implementation of our agreement.

Attachment

• ENG OBEL_ER_2020 Q1 FV