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proximus-2021-12-31p1i30 proximus-2021-12-31p1i0 proximus-2021-12-31p1i26 proximus-2021-12-31p1i2 proximus-2021-12-31p1i35 proximus-2021-12-31p1i4 proximus-2021-12-31p1i33 proximus-2021-12-31p1i6 proximus-2021-12-31p1i31 proximus-2021-12-31p1i8 proximus-2021-12-31p1i27 proximus-2021-12-31p1i10 proximus-2021-12-31p1i24 proximus-2021-12-31p1i12 proximus-2021-12-31p1i36 proximus-2021-12-31p1i14 proximus-2021-12-31p1i34 proximus-2021-12-31p1i16 proximus-2021-12-31p1i32 proximus-2021-12-31p1i18 proximus-2021-12-31p1i28 proximus-2021-12-31p1i20 proximus-2021-12-31p1i25 proximus-2021-12-31p1i37 proximus-2021-12-31p1i22 proximus-2021-12-31p1i29
 
Integrated
annual
 
report
2021
group
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Proximus Group I
Integrated annual report
 
2021
I
2
Table
of
content
1
4
Proximus at a
 
glance
5
 
Foreword from our CEO
 
and our Chairman
8
 
Who we are and
 
the value we create
 
for society
17
 
Key figures and highlights
2
22
#inspire2022
26
 
Build the best gigabit network
 
for Belgium
36
 
Operate like a
 
digital native company
44
 
Grow profitably
 
through partners
 
and ecosystems
57
 
Act for a green and
 
digital society
74
 
Getting
 
our
 
people
 
and
 
organization
 
ready
 
for
 
the
 
future
81
Manage for impact,
manage
 
responsibly
82
Governance and
 
compliance
83
Corporate
 
governance
 
statement
106
 
Diversity and inclusion
 
statement
110
 
Remuneration
 
report
127
 
Regulatory framework
133
 
The Proximus share
139
Non-financial statements
140
Materiality and
 
stakeholder dialogue
147
 
Social statement
158
 
Environmental
 
statement
169
 
EU Taxonomy
171
 
Table of TCFD
173
 
GRI content index
178
 
Consolidated financial
 
statements
 
292
 
Consolidated management
 
report
292
 
Management
 
discussion
 
and analysis
 
of financial
 
results
325
 
Risk management
 
report
341
 
Internal control
 
system
346
 
Expertise
 
of the Audit
 
& Compliance
 
Committee
 
members
346
 
Evolution
 
in research
 
and development
 
activities
351
 
Other information
352
Auditor’s reports
3
4
 
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Proximus Group I
Integrated annual report
 
2021
I
3
Integrated reporting
 
approach 2021
Since
 
2020,
 
Proximus
 
has been
 
adopting
 
an integrated
 
reporting
approach.
 
This
 
2021
 
report
 
follows
 
the International
 
Integrated
Reporting
 
Council
 
(IIRC)
 
framework,
 
explaining
 
how we
 
create value
for our
 
stakeholders
 
and society,
 
and in relation
 
to our
 
ambitions,
sense of purpose
 
and goals.
Our stakeholders
 
include
 
all the
 
individuals
 
and organizations
affected
 
by our
 
operations
 
or with
 
whom we
 
have a
 
relationship.
They include
 
but are
 
not limited
 
to enterprise
 
and residential
customers,
 
investors,
 
employees,
 
political
 
and regulatory
stakeholders,
 
suppliers,
 
partners, journalists
 
and opinion
 
leaders.
The scope
 
of the
 
information
 
in this
 
report
 
covers
 
the Proximus
Group,
 
unless
 
stated
 
otherwise.
 
Proximus
 
Group comprises
Proximus
 
SA, its
 
subsidiaries,
 
as well
 
as the
 
Group’s
 
interest
 
in
associates
 
and joint
 
ventures
 
accounted
 
for under
 
the equity
method
 
and joint
 
operations.
 
We refer
 
to Note
 
8 for
 
the list
 
of
subsidiaries,
 
associates,
 
joint ventures
 
and joint
 
operations.
Proximus
 
SA is
 
a “Limited
 
Liability
 
Company
 
of Public
 
Law”
registered in Belgium.
The purpose
 
of this
 
report
 
is to inform
 
our stakeholders
 
about
 
our
role
 
in society.
 
We outline
 
our corporate
 
strategy
 
and the
 
progress
we have
 
made in
 
achieving
 
our goals,
 
linking with
 
our updated
material
 
topics.
 
The third
 
chapter,
 
“Manage
 
for impact,
 
manage
responsibly”,
 
presents
 
the company’s
 
results
 
with
 
regards
 
to its
financial
 
and non-financial
 
performance.
 
Detailed
 
performance
data is provided
 
throughout the
 
report.
The report
 
has been
 
prepared
 
in accordance
 
with the
 
EU Directive
 
on
disclosure
 
of non-financial
 
and diversity
 
information,
 
the GRI
(Global
 
Reporting
 
Initiative)
 
Standards:
 
core option,
 
and SASB
(Sustainability
 
Accounting
 
Standards
 
Board).
 
A full
 
GRI content
index can be
 
found here:
From
 
this
 
reporting
 
year
 
onwards,
 
Proximus
 
will
 
also
 
integrate
 
the
recommendations
 
of the
 
TCFD
 
(Task
 
Force
 
on Climate-related
Financial
 
Disclosure)
 
to emphasize
 
its efforts
 
in identifying
 
and
mitigating
 
climate-related
 
risks and opportunities. We see
 
this
 
as
the first
 
step of
 
an important
 
journey.
 
More efforts
 
will be allocated
to the
 
further
 
integration
 
of TCFD
 
recommendations
 
in the coming
years.
Proximus
 
intends
 
to align
 
with
 
the EU
 
taxonomy
 
and therefore
 
this
year already
 
discloses
 
the eligibility
 
of its
 
economic
 
activities,
 
these
are activities
 
of Proximus
 
that could
 
be assessed
 
on their
sustainability
 
under
 
the EU
 
taxonomy
 
regulation.
 
This year,
 
the EU
taxonomy
 
criteria
 
only define
 
activities
 
that best
 
contribute
 
to
fighting climate change.
Proximus
 
completes
 
several
 
questionnaires
 
from
 
ESG rating
agencies
 
such
 
as CDP,
 
Sustainalytics,
 
Ecovadis,
 
S&P, FTSE4Good
and MSCI.
 
Our ambition
 
is to continuously
 
improve our
performance in our
 
sector.
Dive deeper
 
into our
 
stories
You will
 
notice
 
special
 
icons
 
throughout
 
this
 
annual
report.
 
Here
 
is what
 
they mean:
Read more
External link
Direct
 
download
proximus-2021-12-31p4i2 proximus-2021-12-31p4i0
Proximus Group I
Integrated annual report
 
2021
I
4
Proximus
at a
glance
5
Foreword
 
from our CEO
and our Chairman
8
Who we are and
 
the value
we create for society
17
Key figures and highlights
 
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proximus-2021-12-31p3i2
 
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Proximus Group I
Integrated annual report
 
2021
I
5
Together towards a
 
more sustainable
 
digital
 
life
Dear reader,
The year 2021 was
 
once again marked
 
by Covid. The fight
against
 
this unprecedented
 
pandemic has
 
had an
 
impact on us
all, both
 
in our
 
personal
 
and professional
 
lives.
 
Proximus,
clearly, is
 
no exception
 
and our employees
 
and teams
 
have
shown tremendous
 
resilience
 
in their efforts
 
to keep up
 
the
level of service
 
our customers expect
 
from us.
Although
 
the Covid
 
crisis
 
certainly
 
confronts
 
us with
 
challenges
we had
 
never
 
imagined,
 
it also
 
offers
 
us a
 
unique
 
opportunity
 
to
reinvent
 
ourselves
 
and rethink
 
the world
 
around
 
us. Let’s
 
take an
example
 
that
 
Proximus
 
knows
 
well,
 
the digital
 
world.
 
We are
convinced
 
that
 
the traditional,
 
global,
 
deregulated
 
digital
 
platform
models
 
will
 
gradually
 
be challenged,
 
or at least
 
face competition
from
 
innovative
 
and more
 
local
 
initiatives.
 
Today,
 
people
 
aspire
 
to
lead a
 
digital
 
life that
 
is based
 
on models
 
close
 
to their
 
concerns
 
and
in which they can
 
have confidence.
 
This tells us how important
 
it is
for future
 
digital
 
services,
 
whether
 
in education,
health
 
or e-commerce
 
for example,
 
to also
 
be developed
 
in Europe
and Belgium
 
by local
 
players
 
and ecosystems.
 
Asking
 
ourselves
which
 
platforms
 
we want
 
to support
 
to shape
 
the world
 
of
tomorrow
 
is also
 
about
 
how we
 
want
 
to live
 
as a society.
Getting
 
everyone
 
connected
We cannot
 
talk about
 
a digital
 
society
 
without talking
 
about
future-proof
 
connectivity.
 
This will
 
be a combination
 
of fiber,
 
5G
and technologies
 
such as
 
cloud and
 
edge computing.
 
They are
what we
 
call the
 
networks
 
of the
 
future:
 
they are
 
the operating
system
 
of our
 
economy
 
and digital
 
life,
 
with
 
infinite
 
potential.
We want them
 
to be open
 
to us all
 
and benefit
 
us all. That
 
is why
we invest
 
more than
 
one billion
 
euro each
 
year in
 
our networks
 
to
roll
 
out fiber
 
and 5G
 
throughout
 
Belgium,
 
while guaranteeing
 
our
customers
 
a very
 
high level
 
of security.
 
Our ultimate
 
ambition
 
is to
reach 99%
 
5G coverage
 
by the
 
end of 2024
 
and 100%
 
gigabit
coverage in Belgium.
Stefaan
 
De Clerck
|
 
Chairman
Guillaume
 
Boutin
|
 
CEO
 
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Proximus Group I
Integrated annual report
 
2021
I
6
Encouraging the emergence
 
of local ecosystems
 
There
 
is no getting
 
away from
 
digital,
 
so being
 
able to
 
put our
digital
 
life
 
and our
 
data
 
in the
 
hands
 
of actors
 
we trust
 
is a crucial
concern.
 
As we
 
see it,
 
our digital
 
life
 
needs
 
to reflect
 
our own
 
life,
our own
 
needs.
 
A life
 
that is
 
more local,
 
more secure
 
and more
responsible,
 
in which
 
major Belgian
 
brands,
 
visionary
 
entrepreneurs
and strong
 
local
 
companies
 
will
 
build
 
ecosystems
 
to drive the
 
next
wave of innovation.
Of course,
 
Proximus
 
intends
 
to be up
 
there on
 
the crest
 
of this
wave. More
 
than ever,
 
we set
 
out to
 
partner
 
up with
 
Belgians
 
in
their
 
digital
 
day-to-day
 
lives.
 
With the
 
launch of
 
Doktr and
 
Banx
this year,
 
we are
 
very much
 
on the
 
right path.
 
We also steer
 
our
business
 
customers
 
through
 
their digital
 
transformation
 
by
innovating
 
with
 
them,
 
making
 
the most
 
of our
 
new 5G
innovation
 
platform.
A player with a human face
 
The human
 
face
 
of Proximus
 
is first
 
and foremost
 
the thousands
 
of
colleagues
 
who give
 
their best
 
throughout
 
the year,
 
whether
 
in our
stores,
 
in our
 
contact
 
centers,
 
in the
 
field or
 
in the office.
 
And we
know what
 
a difference
 
this human
 
touch can
 
make in
 
the digital
world.
 
Not only
 
does it
 
contribute
 
to a better
 
customer
 
experience
on a
 
daily
 
basis.
 
More
 
importantly,
 
however,
 
our presence
 
has also
been essential
 
in the
 
unusual
 
circumstances
 
we
 
have experienced
this year.
We want our networks to
be accessible to everyone,
ensuring that no one
 
is left
by the wayside.
Our teams
 
have
 
continued
 
to make
 
outstanding
 
efforts
 
in the
 
fight
against
 
Covid.
 
In record
 
time, they
 
equipped
 
vaccination
 
centers
with connectivity and
 
IT solutions.
During
 
the terrible
 
floods
 
in the
 
summer
 
of 2021,
 
our technicians
worked
 
hard
 
for long
 
days
 
and nights
 
to restore
 
our infrastructure
 
in
the stricken
 
areas.
 
This
 
enabled
 
those
 
affected
 
to reconnect
 
with
their
 
loved ones
 
and businesses
 
to resume
 
their
 
activities.
Responding
 
to social
 
issues
At Proximus,
 
we want
 
the new
 
high-performance
 
networks
 
we
are deploying
 
to be
 
accessible
 
to everyone,
 
ensuring
 
that no
 
one
is left
 
by the
 
wayside.
 
To follow
 
through
 
on our
 
promises,
 
in
September
 
2021,
 
together
 
with
 
public
 
authorities,
 
companies
and social
 
organizations,
 
we signed
 
the Digital
 
Inclusion
 
Charter,
demonstrating
 
our joint
 
commitment
 
to reducing
 
the digital
divide
 
in our country.
Responding
 
to social
 
issues
 
also means
 
systematically
 
taking
account
 
of our
 
impact
 
on the
 
climate.
 
It is our
 
responsibility
 
as
leaders
 
to set
 
a good
 
example
 
by integrating
 
sustainability
 
into all
our actions.
 
We are
 
also very
 
proud
 
that Proximus
 
has joined
 
the
European
 
Green
 
Digital
 
Coalition,
 
which
 
is aimed
 
at achieving
 
zero
net carbon
 
emissions
 
by 2040,
 
10 years
 
ahead of
 
the target
 
set in
the Paris Agreement.
Making
 
Proximus
 
the reference
 
digital
 
employer
As the
war for
 
talent
 
will only
 
intensify
 
in the
 
coming
 
years,
 
it
 
is
essential
 
that
 
a group
 
like
 
Proximus
 
offers
 
its employees
 
a
stimulating
 
and inspiring
 
work environment
 
that values
diversity,
 
inclusion, collaboration
 
and responsibility.
This
 
is our
 
way of
 
promoting
 
continuous
 
development
 
of our
employees,
 
especially
 
as to
 
technologies
 
of the
 
future,
 
and
offering
 
attractive
 
opportunities
 
for digital
 
talent.
 
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Proximus Group I
Integrated annual report
 
2021
I
7
It is
 
our responsibility
 
to
integrate sustainability
into all our actions.
To accelerate
 
our
 
transformation
 
into
 
a truly
 
customer-centric
 
digital
company,
 
we have
 
decided
 
to embrace
 
agile working
 
methods.
 
This
approach
 
allows
 
us to focus
 
more on
 
what matters
 
to customers
and deliver
 
innovative
 
solutions
 
faster.
In the
 
coming
 
years,
 
we will
 
also be
 
adapting
 
our workspaces
 
- both
 
in Brussels
 
and in
 
our regional
 
offices -
 
towards a
 
'campus'
style,
 
which is
 
more conducive
 
to human
 
contact
 
and
 
collaboration.
Transforming
 
Proximus
 
for the
 
future
As you
 
will discover
 
by reading
 
this annual
 
report,
 
the year
 
2021
has been
 
particularly
 
rich in
 
terms of
 
realizations
 
for Proximus.
Driven
 
by the
 
#inspire2022
 
strategy,
 
our teams
 
have
accomplished
 
remarkable
 
work,
 
despite
 
the complicated
 
context
linked to Covid.
Looking
 
in the
 
rearview
 
mirror,
 
it is impressive
 
how far
 
we have
 
come
in the
 
past
 
twelve
 
months.
 
We have
 
dramatically
 
accelerated
 
the
pace of
 
fiber
 
roll-out
 
to become
 
one of
 
the world's
 
most
successful
 
operators
 
in this
 
field.
 
We have
 
continued
 
to transform
and modernize
 
our internal
 
IT tools
 
to make
 
Proximus
 
a truly
 
digital,
customer-centric
 
company.
 
We are
 
gradually
 
returning
 
to growth
 
in
our Consumer
 
and Enterprise
 
segments,
 
thanks
 
to our
 
convergent
brands
 
and offers,
 
our strategic
 
partnerships
 
and
 
our capacity
 
for
constant
 
innovation.
 
We have
 
held up
 
well in
 
the business
 
market
while
 
continuing
 
to transform
 
at a steady
 
pace. The
 
issue of our
 
first
green bond was
 
a huge
 
success.
In addition
 
to our
 
performance
 
in the
 
domestic
 
market, we
 
also
ramped
 
up Proximus’
 
international
 
position.
 
We acquired
 
all the
shares
 
in our
 
subsidiary
 
BICS, giving
 
us the
 
flexibility
 
to implement
the growth
 
plans
 
of BICS
 
and TeleSign.
 
What’s
 
more,
 
at the
 
end of
December,
 
TeleSign
 
announced
 
its intention
 
to go
 
public
 
in 2022.
Tomorrow’s
 
world will inevitably
 
be more digital. Thanks
 
to our
#inspire2022
 
strategy,
 
it will also be
 
more human, more local,
safer and more
 
sustainable.
This is
 
our commitment
 
to you
 
all!
 
#thinkpossible
Guillaume
 
Boutin,
 
Stefaan
 
De Clerck,
CEO
 
Chairman
 
of the
 
Board of
 
Directors
proximus-2021-12-31p8i3 proximus-2021-12-31p8i2
 
 
 
proximus-2021-12-31p8i0
 
Proximus Group I
Integrated annual report
 
2021
I
8
Who we
 
are and
 
the value
we create for society
Proximus
 
is a provider
 
of digital
 
services,
 
communication and
 
ICT solutions
operating
 
in the
 
Belgian
 
and international
 
markets. Our
 
purpose is to open
up a world of digital
 
opportunities, so people
 
live better and work
smarter. We do this by building the best open
 
gigabit
 
network,
 
offering
products and
 
services
 
tailored
to the
 
needs
 
of every
 
customer,
 
by being
 
the trusted
 
partner of
companies
 
and Belgian society
 
in their digital
 
evolution and
 
by
contributing to a
 
green and digital
 
society.
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p6i4 proximus-2021-12-31p9i6
 
Proximus Group I
Integrated annual report
 
2021
I
9
Thanks
 
to our
 
fixed and
 
mobile
 
networks,
 
our customers
 
access
 
a
wide range
 
of digital
 
services,
 
data and
 
multimedia
 
content,
anywhere,
 
anytime.
 
We are
 
laying
 
the foundation
 
for sustainable
growth
 
by investing
 
in the
 
gigabit
 
network
 
of the
 
future,
 
with a
truly
 
digital
 
mindset
 
and a
 
spirit
 
of openness
 
towards
 
partnerships.
As a
 
major
 
economic
 
player
 
in Belgium,
 
we want
 
to create
 
a
positive
 
impact
 
on the
 
world
 
around
 
us. We
 
support
 
the
development
 
of new
 
digital
 
ecosystems
 
and innovative
 
solutions
for the
 
benefit
 
of the
 
Belgian
 
economy.
 
On a societal
 
level, we
 
fully
commit
 
to bridging
 
the digital
 
divide,
 
providing
 
opportunities
 
for
digital
 
talents,
 
and accelerating
 
the transition
 
to a green
 
society.
We acknowledge
 
and appreciate
 
the passion
 
and expertise
 
of
our employees.
 
They
 
are our
 
most valuable
 
assets
 
in pursuing
our ambitions.
 
In turn,
 
we offer
 
our employees
 
a challenging
 
and
inspiring
 
work
 
environment.
 
An environment
 
where
 
everybody
 
gets
the chance
 
to grow
 
in an
 
atmosphere
 
of diversity
 
and
collaboration,
 
innovation
 
and responsibility.
 
At Proximus,
 
our
employees
 
get the
 
freedom
 
to positively
 
affect the
 
lives of
 
our
customers.
 
They also
 
work on
 
their
 
own future,
 
by continuously
educating themselves
 
and developing
 
their skills.
We open up
 
a world
of digital
 
opportunities
so people live better
and work smarter.
proximus-2021-12-31p10i16 proximus-2021-12-31p10i14 proximus-2021-12-31p10i12 proximus-2021-12-31p10i10 proximus-2021-12-31p10i0 proximus-2021-12-31p10i19 proximus-2021-12-31p10i2 proximus-2021-12-31p10i18 proximus-2021-12-31p10i13 proximus-2021-12-31p10i11 proximus-2021-12-31p10i4 proximus-2021-12-31p10i6 proximus-2021-12-31p10i20 proximus-2021-12-31p10i17
 
 
 
proximus-2021-12-31p6i2
Proximus Group I
Integrated annual report
 
2021
I
10
Our brands
We operate
 
in the
Benelux
and
 
on a
global
level.
Through
 
our leading
 
and well-established
 
brands,
 
we meet
 
the
demands
 
of a
 
wide
 
range
 
of customers
 
in the
 
residential
 
and
business
 
segments,
 
as well
 
as the
 
public
 
sector.
 
Belgium
Proximus
is our
 
major
 
brand,
 
which
 
we are
 
building
 
into
 
the
reference
 
brand
 
that
 
“empowers
 
everybody
 
to thrive
 
in a
 
digital
world,
 
so we
 
can
 
improve
 
our shared
 
well-being”.
 
Our brand
promise
“Think
 
possible”
 
captures
 
that
 
mission.
 
We are
convinced
 
that
 
new digital
 
solutions
 
make
 
our lives
 
easier,
 
allow
 
us
to work
 
together
 
in smarter
 
ways
 
and make
 
our world
 
a better
place.
 
That
 
is why
 
we are
 
always
 
looking
 
for the
 
best
 
partnerships
and
 
why
 
we continue
 
to invest
 
in sustainable
 
technology.
Scarlet
has established
 
itself as a “no frills”
 
brand for customers
who are looking
 
for the best
 
prices or for
 
ways to consume
 
more
consciously.
Mobile
 
Vikings
is a brand
 
that
 
has a
 
strong
 
digital
 
native
 
customer
base
 
and that
 
stands
 
for the
 
“smart
 
choice”
 
offer
 
for both
 
prepaid
and postpaid
 
customers.
 
Its offer
 
appeals
 
to young
 
people
 
who
make
 
intensive
 
use of
 
mobile
 
data.
 
In June
 
2021, Proximus
received
 
approval,
 
without
 
conditions,
 
from
 
the Belgian
 
Competition
Authority
 
for the
 
acquisition
 
of Mobile
 
Vikings,
 
which
 
also includes
the Jim Mobile
 
brand.
 
Luxembourg
The
 
Proximus
 
Group
 
operates
 
in Luxembourg
 
as
Proximus
Luxembourg
 
SA
, under
 
the
 
brand
 
names
 
Tango
 
and
 
Telindus
Luxembourg.
Tango
offers
 
fixed
 
and
 
mobile
 
telephony,
 
internet
 
and
 
television
services
 
to residential
 
customers
 
and small
 
businesses
 
with
 
fewer
than 10 employees.
Telindus
provides
 
telecommunication
 
services,
 
ICT infrastructure,
multi-cloud,
 
digital
 
finance
 
solutions,
 
cybersecurity,
 
business
applications,
 
managed
 
services
 
and training
 
services
 
to medium-
sized
 
and
 
large
 
companies,
 
as well
 
as public
 
administrations.
 
The
 
Netherlands
In the
 
Netherlands
 
we operate
 
through
Telindus
 
Netherlands
. As
strategic
 
IT partner,
 
we support
 
organizations
 
in being
 
future
 
proof
and innovative,
 
by offering
 
IT infrastructure
 
solutions
 
and services
 
to
create flexible
 
organizations.
Telindus
 
provides
 
managed-
 
and
 
platform
 
services,
 
integrating
networking,
 
cloud,
 
cybersecurity
 
and data
 
& AI. The
 
resulting
 
IT
services
 
allows
 
companies
 
and public
 
institutions
 
to adapt
 
to the
ever-evolving
 
markets
 
and customer
 
needs,
 
while
 
securing
business
 
continuity
 
and optimizing
 
user
 
experiences.
 
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Proximus Group I
Integrated annual report
 
2021
I
11
Worldwide
We operate
 
internationally
 
through
BICS
and
TeleSign
.
In February
 
2021,
 
Proximus
 
acquired
 
100%
 
ownership
 
of BICS,
securing
 
the
 
flexibility
 
to execute
 
the development
 
and growth
 
paths
of both BICS
 
and TeleSign.
BICS
is a
 
leading
 
international
 
communications
 
enabler,
 
one of
 
the
key global
 
voice
 
carriers
 
and the
 
leading
 
provider
 
of mobile
 
data
services
 
worldwide.
 
Its aim
 
is to
 
make
 
it possible
 
for every
 
person,
application
 
and
 
thing
 
to connect,
 
wherever
 
they
 
are.
BICS
 
provides
 
high-quality,
 
secure
 
communication
 
solutions
 
to the
world’s
 
largest
 
mobile
 
operators,
 
virtual
 
network
 
operators,
 
service
providers,
 
enterprise
 
software
 
vendors
 
and enterprises
 
in Africa,
 
Asia,
Europe, the
 
Middle East
 
and the US.
In recent
 
years,
 
BICS
 
has
 
transformed
 
from
 
a traditional
 
international
wholesale
 
carrier
 
into
 
a communications
 
platform
 
company.
 
Its
integrated
 
software-based
 
solutions
 
services
 
help
 
companies
 
to
accelerate
 
their
 
digital
 
transformation.
To successfully
 
implement
 
its
 
strategy,
 
BICS
 
set
 
up dedicated
business
 
units
 
that
 
serve
 
the telecom
 
and enterprise
 
markets
respectively.
 
Through
 
the
 
creation
 
of product
 
portfolio
 
groups,
 
BICS
builds
 
synergies
 
between
 
products
 
and technology.
 
Their
 
solutions
are essential
 
for supporting
 
today’s
 
modern,
 
digital
 
lifestyle
 
and the
need
 
for global
 
mobile
 
connectivity
 
and seamless
 
customer
experiences.
TeleSign
is a
 
fast-growing
 
leader
 
in digital
 
identity
 
and
engagement
 
solutions.
 
Through
 
its easy-to-integrate
 
APIs,
 
it
provides
 
solutions
 
for
 
security,
 
authentication,
 
fraud
 
detection,
compliance,
 
reputation
 
scoring,
 
and
 
secure
 
communications.
With
 
the
 
accelerating
 
growth
 
of digital
 
transactions
 
worldwide,
 
it
is more
 
than
 
ever
 
crucial
 
for businesses
 
and customers
 
to know
who
 
they
 
are trading
 
with.
 
Combining
 
digital
 
identity
 
with
 
global
communications
 
capabilities,
 
TeleSign
 
helps
 
enterprises
connect,
 
protect
 
and engage
 
with
 
their
 
customers,
 
while
 
assisting
 
those
customers
 
in securely
 
engaging
 
with
 
their
 
preferred
 
digital
 
platforms
These
 
integrated
 
digital
 
identity
 
solutions
 
not only
 
strengthen
 
the
trust
 
between
 
consumer
 
and company,
 
but also
 
improve
 
the
overall
 
experience
 
throughout
 
the
 
customer
 
journey.
Today,
 
TeleSign
 
is a
 
trusted
 
partner
 
to global
 
enterprises
 
across
more
 
than
 
195 countries
 
as well
 
as 8 of
 
the 10
 
world’s
 
largest
digital
 
enterprises.
 
The company
 
already
 
has a
 
strong
 
foothold
 
in
the North
 
American
 
market
 
and a
 
growing
 
customer
 
base
 
across
Europe, Asia and
 
Latin America.
TeleSign
 
aims
 
to accelerate
 
its
 
investment
 
to further
 
reinforce
 
its
position
 
as a
 
digital
 
identity
 
provider
 
as well
 
as build
 
out its
international
 
organization.
 
Beyond
 
that,
 
TeleSign
 
intends
 
to target
new customer
 
segments,
 
including
 
mid-market
 
and SMEs,
 
and
develop
 
new
 
use cases
 
to expand
 
its identity
 
offering.
In December
 
2021,
 
TeleSign
 
announced
 
its intention
 
to go
 
public
 
at
an enterprise
 
value
 
of $1.3
 
billion
 
via a
 
business
 
combination
transaction
 
with
 
North
 
Atlantic
 
Acquisition
 
Corporation.
Connectivity services
Cloud communications
IoT (Internet
 
of Things)
Digital identity services
Security
Authentication
 
 
 
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Proximus Group I
Integrated annual report
 
2021
I
12
A unique
 
ICT environment
Through
our ICT
 
affiliates,
Proximus
 
Enterprise
 
and strategic
partnerships,
 
we help
 
to speed
 
up the
 
digital
 
transformation
 
of our
enterprise customers.
Together
 
with
 
our affiliates
 
Telindus,
 
Umbrio,
 
Codit,
 
Be-Mobile,
ClearMedia,
 
Davinsi
 
Labs
 
and Proximus
 
SpearIT,
 
we form
 
a broad
ecosystem
 
of digital
 
thinkers
 
and doers. These companies are
 
all
experts
 
in their
 
fields
 
– from
 
app developers
 
to providers
of integrated
 
ICT solutions,
 
and from
 
data privacy
 
and security
specialists
 
to designers
 
of smart
 
mobility
 
solutions.
We want
 
to shape
 
the digital
 
world
 
of today
 
and tomorrow.
 
We do
this
 
by offering
 
customers
 
a one-stop
 
shop, integrated
 
and
converged
 
360°
 
ICT offer
 
that is
 
unique
 
in Belgium.
 
As some
 
of
 
our
partners
 
also
 
operate
 
abroad,
 
we are
 
even able
 
to venture
 
outside
Belgium.
Be-Mobile
offers a wide
 
array of smart
 
mobility solutions to
help public authorities, road operators, car manufacturers,
individual drivers and private companies improve daily
mobility for travelers.
ClearMedia
provides cloud, cybersecurity and digital
workplace solutions, services and products tailored to the
(S)ME market through
 
an indirect channel
 
of local IT
 
partners.
Codit
supports customers in realizing their ambitions with
tailored Microsoft Azure
 
cloud solutions.
 
Codit guides
 
them
through their data journeys, with a focus on automating
business processes,
 
building data platforms,
 
app innovation
and providing IoT, AI and machine learning solutions. Codit
 
is
active in the Benelux, UK, France, Malta, Portugal and
Switzerland.
Davinsi Labs
offers security and service intelligence
solutions. Focusing on data
 
and meaningful insights, these
solutions allow businesses to provide
 
their customers
with digital services
 
with the highest
 
standards of security,
 
availability,
and performance.
Proximus SpearIT
is the ICT
 
integrator for mid-sized
companies.
Telindus
 
Luxembourg
and
Telindus Netherlands
are
specialists in smart and secure IT platforms.
Umbrio
offers strategic,
 
security and
 
service intelligence
services, translating data into actionable
 
insights.
 
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Proximus Group I
Integrated annual report
 
2021
I
13
Our value
 
creation model
Our #inspire2022
 
strategy
 
and our
 
company
 
culture
 
empower
 
us to
 
make
 
Proximus
 
the reference
 
operator
 
in Europe.
 
Our
objective
 
is to
 
make
 
a positive
 
contribution
 
to society
 
and create
 
shared
 
value with
 
and for
 
our stakeholders,
 
while optimizing
the way we use
 
our resources.
Resources
 
we use
How
 
we create
 
value
Our sense of purpose
Opening
 
up a
 
world
 
of digital
 
opportunities
 
so people
 
live better
 
and work
 
smarter.
Human capital
11,532
 
employees
57 nationalities
32% women
Our ambition
Make
 
Proximus
 
the reference
 
operator
 
in Europe.
Our company strategy
#inspire
2022
Financial capital
1,203 Mio
 
investments
1
2,978
 
Mio shareholders’
 
equity
2,740
 
Mio adjusted
 
net debt
Build
 
the best
gigabit
network
for
 
Belgium
Operate
 
like
 
a
digital
 
native
company
Grow
 
profitably
through
partners
 
and
 
ecosystems
Act for
 
a
green
and digital
 
society
Our company culture
Natural
 
resources
9 Mio
 
liters fossil
 
fuel
328 GWh
 
electricity
24 GWh
 
natural
 
gas
1,077,545
 
m
building footprint
Good
to
 
Gold
culture
Growth
mindset
Our
values
Collaboration
 
Agility
 
Accountability
Customer
 
centricity
We
Make
 
a difference
Our leading brands meet the
 
demands of a wide
range of customers
1
 
Excl. spectrum and football rights
 
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Proximus Group I
Integrated annual report
 
2021
I
14
The
 
value
 
we create
 
for
 
our
 
stakeholders
Contributing
to the
 
SDGs
Customers
Creating
 
relevant
 
end-to-end
 
solutions
to fully harvest the potential of
technology
1.7 Mio
 
active users
 
on MyProximus
19,000
 
active
 
users on
 
MyProximus
for Enterprises
1.2 Mio
 
active users
 
on Pickx
18,700
 
registered
 
users on
 
Doktr
Employees
 
Offering
 
a challenging
 
and inspiring
work environment
 
with specific
focus
 
on diversity,
 
collaboration
 
and
empowerment
32.34
 
Mio
 
in employee
 
re-/up-skilling
41.3 training
 
hours/employee
 
on
average
Good work-life
 
balance
 
for 73%
 
of
employees
Partners
 
Creating
 
new innovative
 
business
 
models
relevant
 
for our
 
customers
 
and society
3.3 Mio
 
IoT connections
 
enabling smart
solutions
20use cases
 
on 5G
 
innovation
 
platform
Suppliers
 
Building
 
sustainable
 
relationships
 
to
improve
 
social
 
and environmental
standards
 
across
 
our supply
 
chain
445 suppliers,
 
representing
 
41% of
our external
 
spend, were
 
assessed
 
by
EcoVadis on
 
their ESG-compliance:
71% received
 
a positive
 
scoring
All suppliers
 
signed our
 
Code of
Conduct
Shareholders
 
Committing
 
to an
 
attractive
 
return
 
and
transforming
 
into
 
a sustainable
 
company
1,772 Mio
 
Group underlying
 
EBITDA
376 Mio
 
Free Cash
 
Flow (adjusted)
1.2 dividend/share
ESG as
 
part of
 
Management
 
incentive
plans
Belgian society
 
Bringing
 
essential
 
connectivity
 
while
contributing
 
to an
 
inclusive
 
digital
 
society
813,000
 
homes & businesses
connectable to fiber
5G available
 
in 70
 
cities &
 
municipalities
1,145 job
 
seekers supported
 
by our
initiatives
55% of
 
tested
 
devices
 
accessible
 
for
 
at
least five disabilities
Supporting
 
Belgium during
 
COVID-19
and floods
Planet
 
Becoming
 
net zero
 
by 2040
 
and truly
circular by 2030
4.4 ktons
 
CO
2
 
reduction
89% waste
 
recycled,
 
reused
 
or
composted
80,000
 
old mobile
 
phones
 
collected
845,000
 
refurbished
 
devices
 
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Proximus Group I
Integrated annual report
 
2021
I
15
Contributing
 
to the
 
UN Sustainable
 
Development
 
Goals
The Sustainable
 
Development
 
Goals (SDGs)
 
were adopted
 
by the
United
 
Nations
 
Member
 
States
 
in 2015
 
and are
 
to be
 
reached
 
by
2030.
 
Our strategy
 
currently
 
addresses
 
8 of
 
the 17
 
SDGs.
This year, we embedded sustainability in our financing
instruments.
 
We have
 
launched
 
a Sustainable
 
Finance
 
Framework
and a Green Bond that are aligned to the SDGs –
 
more
information on these
 
can be found
 
here:
 
link
We believe
 
that sustainable
 
financial
 
instruments
 
are an effective
tool
 
for channelling
 
investments
 
to projects
 
that have
demonstrated
 
their
 
ecological
 
and
 
social
 
benefits
 
and that
contribute to the
 
achievement of
 
the SDGs.
In 2022,
 
we will devote
 
time to further
 
map the SDGs
 
to all aspects
of our
 
business
 
(such
 
as operations
 
and facilities),
 
with the
 
goal of
creating more focus
 
and clarity.
Bring
 
health
 
and well-being
 
to people
 
of all
 
generations
The health
 
and safety
 
of our
 
employees,
 
our customers
 
and the
 
general
 
public
 
are a
 
priority
 
for Proximus.
 
We
are aware
 
of the
 
concerns
 
and
 
challenges
 
regarding
 
5G, radiation
 
and health.
 
We have
 
committed
 
to providing
clear
 
and useful
 
information
 
about
 
these
 
issues,
 
as well
 
as taking
 
precautionary
 
measures.
 
And as
 
users
devote
 
increasingly
 
more
 
time
 
to their
 
screens,
 
we are
 
taking
 
steps
 
to encourage
 
digital
 
health,
 
and
consequently,
 
to improve
 
overall
 
health
 
and
 
well-being.
 
We take
 
up a
 
role
 
to provide
 
access
 
to quality
 
essential
healthcare
 
services
 
through
 
our new
 
Doktr
 
app and
 
the services
 
we offered
 
the healthcare
 
sector
 
during the
pandemic.
Ensure
 
inclusive
 
and equitable
 
quality
 
education
 
and promote
 
lifelong
 
learning
 
opportunities for
all
The re-skilling
 
of the
 
Belgian
 
workforce,
 
and ensuring
 
everyone
 
has the
 
skills
 
needed
 
for the
 
digital
 
economy
and
 
society
 
of tomorrow,
 
are
 
challenges
 
for all
 
of us.
 
Internally,
 
we enable
 
our existing
 
and future
 
employees
 
to
take
 
ownership
 
of their
 
careers
 
by providing
 
re-skilling
 
and up-skilling
 
in key
 
domains,
 
and ensuring
 
they
 
remain
relevant
 
in their
 
current
 
and
 
future
 
jobs.
 
For
 
the
 
Belgian
 
workforce,
 
we support
up-skilling
 
and re-skilling
 
initiatives
 
by partnering
 
with
 
organizations
 
such as
 
MolenGeek,
 
School 19
 
and
Technobel.
 
We also
 
support
 
Bednet
 
and ClassContact,
 
two associations
 
that
 
allow
 
children
 
living
 
with
 
long-
term
 
illnesses
 
to continue
 
their
 
education
 
at home
 
or in
 
hospital.
 
We contribute
 
to closing
 
the digital
 
divide
through,
 
for
 
example,
 
DigitAll,
 
the
 
Alliance
 
for
 
Digital
 
Inclusion
 
in Belgium.
Promote
 
sustained,
 
inclusive
 
and sustainable
 
economic
 
growth,
 
full and
 
productive
 
employment and decent
work for all
We are
 
a major
 
employer
 
and
 
as such,
 
we contribute
 
to the
 
Belgian
 
economic
 
ecosystem.
 
We create
 
direct
 
and
indirect
 
sustainable
 
employment
 
through,
 
amongst
 
others,
 
the deployment
 
and maintenance
 
of our
 
gigabit
networks
 
of the
 
future.
 
We support
 
the development
 
of new
 
digital
 
ecosystems
 
and innovative
 
solutions for
the benefit of
 
the Belgian
 
economy.
Build
 
resilient
 
infrastructure,
 
promote
 
inclusive
 
and sustainable
 
industrialization
 
and foster
innovation
We build
 
future-proof
 
digital
 
infrastructure
 
and invest
 
in the
 
newest
 
technologies,
 
innovative
 
platforms
 
and
solutions.
 
Those
 
are critical
 
enablers
 
of a
 
digital
 
economy
 
and society,
 
in which
 
Belgium
 
is still
 
lagging.
 
In
addition,
 
we support
 
ecosystems
 
to foster
 
Belgium
 
companies
 
and
 
innovation.
 
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Proximus Group I
Integrated annual report
 
2021
I
16
Make cities
 
and human
 
settlements
 
inclusive,
 
safe,
 
resilient and
 
sustainable
By building
 
the best
 
open
 
gigabit
 
network
 
for Belgium,
 
we support
 
local
 
communities
 
to become
 
more
inclusive
 
and sustainable.
 
With
 
our smart
 
solutions
 
we address
 
major
 
societal
 
challenges
 
in densely
populated
 
cities,
 
such
 
as mobility,
 
safety
 
and crowd
 
management.
 
Proximus
 
also
 
offers
 
smart
 
building
solutions to
 
help customers
 
make smarter
 
use of energy.
Ensure
 
sustainable
 
consumption
 
and production
 
patterns
We have
 
a clear
 
ambition
 
to become
 
truly
 
circular
 
by 2030.
 
To do
 
so, we
 
have
 
set ourselves
 
strict
 
goals.
When
 
designing
 
products,
 
we take
 
the full
 
impact
 
of their
 
whole
 
lifecycle
 
into
 
account.
 
We minimize
 
their
adverse
 
impacts
 
on human
 
health
 
and the
 
environment
 
and maximize
 
waste
 
reduction
 
and material
recycling.
 
We also
 
impose
 
strict
 
standards
 
throughout
 
our
 
supply
 
chain.
 
We enable
 
our customers
 
to reduce
their
 
environmental
 
impact
 
through,
 
for example,
 
our refurbished
 
phone
 
range
 
and our
 
Banx
 
and
MyFootprint
 
applications
 
that
 
give
 
customers
 
insight
 
into
 
their
 
ecological
 
footprints.
Ensure
 
access
 
to affordable,
 
reliable,
 
sustainable
 
and modern
 
energy
 
for all
 
Take urgent
action to combat
 
climate change
 
and its impacts
We acknowledge
 
that
 
Proximus
 
has an
 
impact
 
in this
 
area,
 
especially
 
through
 
the CO
2
 
emitted
 
by our
 
digital
activities.
 
For this
 
reason,
 
we want
 
to be
 
a leading
 
company
 
in addressing
 
climate
 
change
 
and are
 
committed
to further
 
reducing
 
our environmental
 
impact.
 
To that
 
end,
 
we joined
 
the European
 
Green
 
Digital
 
Coalition
 
in
2021,
 
strengthening
 
our ambitions.
 
To keep
 
the electrical
 
energy
 
consumption
 
flat
 
despite
 
growing
 
demand,
we will
 
keep
 
implementing
 
network
 
energy-saving
 
initiatives.
 
After
 
reaching
 
100%
 
renewable
 
electricity,
 
we
want
 
to achieve
 
100%
 
renewable
 
energy,
 
thus
 
becoming
 
carbon
 
neutral
 
without
 
compensations
 
by 2030.
We will
 
work
 
with
 
more
 
local
 
electricity
 
sources
 
and take
 
up our
 
role
 
in changing
 
the Belgian
 
energy
 
mix.
 
As
the biggest
 
remaining
 
carbon
 
footprint
 
resides
 
across
 
our value
 
chain,
 
we will
 
continue
 
to work
 
closely
 
with
 
our
suppliers
 
to achieve
 
our ambition
 
to be
 
net
 
zero
 
by 2040.
 
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Proximus Group I
Integrated annual report
 
2021
I
17
Key figures
and highlights
 
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Proximus Group I
Integrated annual report
 
2021
I
18
Key figures
Number of
 
employees
11,532
Total
 
CO
2
 
emissions
2
459 Kton
Avoided
 
CO
2
 
emissions
 
by customers
502 Kton
Board
36% women
 
Executive
 
Committee
22% women
Refurbished devices
845,000
1
Excl. spectrum & football rights
2
Scope 1, 2 and 3
Group
 
underlying
 
revenue
5,578 Mio
Capex
1,203 Mio
Group
 
underlying EBITDA
1,772 Mio
Free
 
Cash Flow
(adjusted)
376 Mio
 
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Proximus Group I
Integrated annual report
 
2021
I
19
Key
 
highlights
Proximus
We provided
COVID
 
vaccination
 
centers
with
 
connectivity,
 
IT
support,
 
as well
 
as advanced
 
IoT solutions
 
to monitor
 
the
temperature
 
of the
 
vaccines.
After
 
the devasting
floods
 
in Wallonia
we restored
 
our
network
 
infrastructure
 
as rapidly
 
as possible.
The
Digital
 
Inclusion
 
Charter
was signed
 
by the
 
members
of DigitAll,
 
the Belgian
 
ecosystem
 
for digital
 
inclusion.
Two
joint
 
ventures
were
 
launched
 
t
o
accelerate
 
our fiber
roll-out.
Launch
 
of the
5G innovation
 
platform
for businesses
 
to test
their 5G solutions.
With
 
more
 
than
3.3 million
 
connected
 
objects
in our
network
 
we strengthened
 
our position
 
as market
 
leader in
Internet of Things
Acquisition
 
of
Mobile
 
Vikings
,
reinforcing
 
Proximus’
 
multi-brand
strategy
 
in the
 
residential
 
market.
 
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Proximus Group I
Integrated annual report
 
2021
I
20
Banx
, the
 
digital
 
app for
 
sustainable
 
banking,
 
entered
 
the
Belgian market.
Innovation
 
in the
 
field
 
of eHealth
 
with
the teleconsultation
 
app
Doktr.
Launch of the
platform
aug•e
offering solutions
 
in
the field
 
of smart
buildings with
partners BESIX
and
 
i.Leco.
Successful
 
issuing
 
of first
 
€ 750
 
million
Green
 
Bond.
Acquisition
 
of
 
full
 
ownership
 
of
BICS
,
securing
 
the
 
flexibility
 
to
execute
 
the development
 
and
 
growth
 
path
 
of
BICS
and
TeleSign
.
Progressing
 
towards
 
an
agile
 
operating
 
model
and
embracing the
hybrid way of working.
New members
 
of the Executive
 
Committee:
Antonietta
Mastroianni
, Chief
 
Digital
 
& IT
 
Officer
 
and
Mark Reid
, Chief
Financial Officer.
The
 
exhibition
 
"
Art
 
with
 
a
View:
 
25 years
 
Proximus
 
Art
Collection".
18.09—
Proximus Towers
Avenue Roi Albert 27
 
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Proximus Group I
Integrated annual report
 
2021
I
21
Key highlights
BICS
Secured
partnerships
with key digital players such as
Microsoft Azure and Google Cloud, adding to those already
in place with Amazon Web Services and other
 
Tier 1 digital
disruptors in the
 
APAC region.
Launch of
voice APIs
, an important step in the provision of
communications as service, enabling enterprises
 
with
secure and
 
flexible software-based
 
communications.
World’s 1st
5G Standalone roaming trial
with Proximus
successfully
 
concluded,
 
showing roaming
 
interoperability
between different 5G
 
providers.
Recognized in the
 
Gartner Magic Quadrant
 
for
Managed IoT Connectivity
 
Services Worldwide.
Investments in 5G and private mobile network
connectivity enablement through its
SIM for Things
solution allowing companies to easily deploy and
manage connected applications
 
for IoT transformation.
Key highlights
TeleSign
TeleSign announced its
intent to go public
at an
Enterprise Value of
 
$1.3 Billion via
 
a business
combination transaction with North Atlantic Acquisition
Corporation.
Launch of
Messaging API
which allows for
 
multiple
messaging channels to be consumed by our customers with
only one API integration.
WhatsApp for Business
 
and Viber messaging
 
support
added to Messaging API.
Launch of an updated
anti-fraud model of the Score
product
increasing
 
accuracy of
 
flagging fraud while
 
reducing
false positives.
New executive
 
leadership team
 
and experienced
regional leads
in EMEA and APAC to fuel future growth
and geo expans
 
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Proximus Group I
Integrated annual report
 
2021
I
178
26
Build the best gigabit network for Belgium
36
Operate like a digital
 
native company
44
Grow profitably
 
through partners
and ecosystems
57
Act for a green and digital society
74
Getting our people
 
and organization
ready for the future
Proximus Group I
Integrated annual report
 
2021
I
22
 
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Proximus Group I
Integrated annual report
 
2021
I
23
Since March 2020, Proximus
 
has been executing out its three-
year
 
strategy,
 
#inspire2022,
 
with
 
the ambition
 
to
make
 
Proximus
the reference
 
operator
 
in Europe
.
The
 
plan
 
was
 
launched
 
in
 
a
 
volatile
 
and
 
uncertain
context, as COVID-19
 
began to impact Europe.
Today, that
 
uncertainty persists and
 
we have
 
also
 
been
exposed
 
to
 
dramatic
 
climatic
 
events
 
and
 
the
consequences of those.
Despite
 
that
 
context,
 
the
 
telecommunications
 
sector
 
is
pursuing its
 
transformation at
 
an unprecedented
 
pace,
 
while
addressing the new challenges
 
that are rising.
Next-generation networks are being built to further support
the digitization of the economy and the increasing need for
data. A new, digital, data-fueled platform economy
 
is
emerging, which
 
raises concerns about data security
 
and
privacy. New forms of
competition are prompting us to diversify our range of products
and services and pave the way for new kinds of partnerships.
The digitization of society highlights our social
 
responsibilities
as a telecom
 
provider. It’s our
 
duty to foster diversity and digital
inclusion and to facilitate the transition
 
towards a circular
economy.
Our strategy is designed to accelerate the
transformation journey of our company so we can
return to
 
profitable growth
 
and address
 
the
competitive and
 
societal challenges
 
ahead. Embracing change,
we have deliberately chosen
 
to take the
lead and anticipate
 
the future to
 
the benefit of our
 
employees,
our customers and society at
 
large.
Our #inspire2022
 
strategy is built
 
on four
strategic pillars:
 
We will
build the
 
best
open
gigabit
 
network
for Belgium
, through
 
a
We will
operate
 
like
a
digital native
company
, becoming
leaner,
 
legacy-free
and truly
 
fit for
 
a digital
world.
of
partnerships and
ecosystems
.
and digital
 
society
and
embed
 
this ambition
 
in
everything we
 
do.
We
fulfill these ambitions
thanks to agile working
 
and the passion and
 
expertise of
our employees.
 
 
 
 
 
 
 
 
proximus-2021-12-31p24i2 proximus-2021-12-31p24i0
Overview of
 
#inspire2022
Build the best
gigabit network
for Belgium
#inspire2022 ambitions
 
Baseline 2020
 
Status 2021
4.2 million
gigabit homes and
businesses enabled by 2028
Undisputed
 
mobile
leadership with
5G
Dec'20: 460,000 homes and businesses
enabled with fiber
First operator to launch public
 
5G in Belgium
Dec'20: 5G available at 138 sites in 69
 
cities
and municipalities
Dec'21: 813,000 homes and businesses
 
enabled
with fiber
20 use cases from enterprise customers on
 
the
5G innovation platform
Dec'21: 5G available at 137 sites in 70
 
cities and
municipalities
Open networks
 
to grow
wholesale
revenues
8 new fiber wholesale partners in 2020
5G network open
 
to wholesale customers
as from launch
8 new fiber wholesale partners in 2021
9 MVNO partners have access to 5G
Material topic: Support digital infrastructure for Belgian society
Operate like
 
a
digital native
company
#inspire2022 ambitions
 
Baseline 2020
 
Status 2021
Top 1
 
or 2
 
Telco
NPS
for
convergent customers,
driven by superior user
experience, by 2022
First operator
 
to make commercial
 
gestures
following the COVID-19 outbreak: > 95%
customers appreciated the initiatives
MyProximus and Pickx app ratings
 
in Google
Play and App Store: 4/5
Satisfaction with our internet, TV and
 
mobile
products: > 90%
NPS of our
 
residential internet+TV+postpaid
customers increased in 2021
NPS of our biggest enterprise
 
customers
increased in 2021
NPS of our Small & Medium-sized enterprise
customers decreased in 2021
-40% in IT costs
by 2025 with
legacy-free IT
Implementing
 
a new simplified
 
address
management system
One single
 
datasource
 
for all billing
 
aspects,
improving
 
data quality
 
and user
 
experience
Continuous
 
integration,
 
development
 
and
automation
 
in IT operations
 
to reduce
 
time
to market
Simplifying
 
technology
 
infrastructure
Implementing
 
an engineering-oriented
 
culture
Increasing
 
automation
 
in the software
 
delivery
process
Simplifying
 
business processes
 
and products
Exerting
 
clear control
 
over demands
 
on IT
Train and
 
selectively
 
attract the
best
digital talents
in Belgium
> 200 employees recruited in domains of
 
the
future
Average of 39.5 hours of
 
training per employee
34.45 million invested
 
in employee re-skilling
and up-skilling
172 employees recruited in domains of
 
the
future
Average of 41.3 hours of training
 
per employee
32.34 million invested in
 
employee re- and
up-skilling
Material topic: Digital access
 
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Proximus Group I
Integrated annual report
 
2021
I
25
Proximus Group I
Integrated annual report
 
2021
I
24
 
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Proximus Group I
Integrated annual report
 
2021
I
25
Grow profitably
through partners
 
and ecosystems
#inspire2022 ambitions
 
Baseline 2020
 
Status 2021
>
3 million
unique Proximus
active monthly
apps users
by
2022
Dec'20: 1.6 million active users
 
on MyProximus
Dec'20: 1.1 million active users on Pickx
Dec'21: 1.7 million active users on MyProximus
Dec'21: 1.2 million active users on Pickx
>
2.1 million internet
connections
(consumer
segment) by 2022
>
100 million additional
revenue
from new
 
non-telco
domains by 2022
Dec'20: 1,965,000 internet connections
(consumer segment)
Long-term commercial
 
partnership with Belfius
Addressable TV: > 150 targeted
 
campaigns
Dec'21: 2,004,000 internet connections
(consumer segment)
Financial services: Launch of Banx and Beats
with Belfius
eHealth: Launch of Doktr
Smart building: Launch of aug•e platform with
BESIX and i.Leco
Addressable TV: > 400 targeted campaigns
Material topics: Support small & medium business development - Delivering customer promises - Customer value for
 
money
Act for a
green
and
digital society
#inspire2022 ambitions
 
Baseline 2020
 
Status 2021
Sustainability
and
circularity
embedded in everything
 
we do
Net zero
by 2040 &
truly
circular
by 2030
Support
digital re-skilling
of
1,000+ Belgian job seekers
yearly
120 ongoing projects related
 
to circularity and
carbon emissions at the end of 2020
Own emissions: -26% (vs 2019)
Indirect emissions: -16% (vs 2014 baseline)
88% waste recycled
409,000 modems & decoders refurbished
65,000 mobile phones collected
1,158 job seekers supported by
 
our initiatives
in Belgium
73% of tested
 
devices accessible for at
 
least
5 disabilities
>
150 ongoing projects related to
 
circularity and
carbon emissions at the end of 2021
Own emissions: -3% (vs 2020)
Indirect emissions: -44% (vs 2014 baseline)
89% waste recycled
845,000 devices refurbished
(incl. 493,000 modems & decoders)
80,000 mobile phones collected
1,145 job seekers supported by our
 
initiatives in
Belgium
55% of tested
 
devices accessible for at
 
least
 
5
disabilities
Material topics: Human rights - Responsible supply chain - Sustainable infrastructure - Circular economy - Energy and
 
CO
2
 
emissions - Digital
access - Privacy & data security
Getting
our
 
people
and
 
organization
 
ready
 
for
 
the
 
future
#inspire2022 ambitions
 
Baseline 2020
 
Status 2021
Internal
moves
 
2,146 employees changed function
 
• 782 employees changed function
Good physical and
 
mental
well-being
55% of
 
employees
 
giving a "good"
 
score in
 
the
Speak-Up
 
Survey
 
(score
 
of 4
 
and 5
 
on a 1-5
 
scale)
56% of
 
employees
 
giving a
 
"good" score
 
in the
Speak-Up
 
Survey
 
(score
 
of 4
 
and 5
 
on a 1-5
 
scale)
Material topics: Workplace wellness
 
- Employee up-skilling, re-skilling & employability
proximus-2021-12-31p28i5 proximus-2021-12-31p28i4 proximus-2021-12-31p28i0 proximus-2021-12-31p28i2
Build the best
gigabit
 
network
for Belgium
Proximus Group I
Integrated annual report
 
2021
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26
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Build the best
gigabit
 
network
for Belgium
Being connected is integral to our daily lives. At home, at work
and on the go.
 
As society becomes
 
increasingly digitized, data
traffic will continue to grow. To anticipate the evolving needs
of all Belgian users, our ambition is to build the best open
gigabit network for Belgium by rolling out fiber and 5G at an
accelerated pace and by opening our networks to our
wholesale partners.
We are working to provide flawless connectivity,
available for
 
all. Consumers,
 
businesses of
 
all sizes, public
services and cities. Wherever they
 
are
.
We are committed to
bringing the benefits
of our
 
next-generation
networks to as many
Belgians as possible.
This improved connectivity opens up new opportunities in
many sectors, such as healthcare, manufacturing, autonomous
transport, logistics and agriculture. Our gigabit network will be
a catalyst for the local economy, for innovation, and it will
boost sustainable economic growth. The network will allow
technological evolution
 
and the creation
 
of new digital
consumer applications, such as connected homes, working
from home, e-education
 
and next-generation video and cloud-
based gaming.
In 2021, we made significant progress in the deployment of
our fixed and
 
mobile gigabit networks,
 
reaching 813,000
homes or businesses connectable to fiber at the end of the year
and offering 5G in 70 cities and municipalities in Belgium.
What’s more, our gigabit network is a fully open- access
platform on which
 
all other
 
service providers are welcome
 
to
offer their own specific services to their end-customers.
As the leading telecom operator in Belgium, we have a
responsibility to develop and enhance the digital
infrastructure in Belgium. We firmly believe that our efforts
have an
 
intrinsic value
 
for society,
 
contributing to building an
inclusive and sustainable world. We are committed to
bringing the benefits of our next- generation networks to as
many Belgians as possible and to making our networks as
environmentally friendly as we possibly can.
Material topic addressed
 
in this strategic
 
pillar:
Support
 
digital
 
infrastructure
 
for Belgian
 
society
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2021
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Proximus Group I
Integrated annual report
 
2021
I
28
The
 
accelerated roll-out
 
of our
 
fiber network
The COVID-19
 
crisis has
 
proven
 
that
fast and
 
reliable
 
networks
are vital
to our society.
 
Schoolchildren
 
and students
 
saw their
classes moved
 
online. Hundreds
 
of thousands of
 
employees
became used
 
to working
 
from home. And
 
with lockdowns
and social
 
distancing
 
measures
 
in place, we
 
relied on virtual
communication
 
to keep
 
in touch
 
with family
 
and friends
 
and to
 
stay
entertained
 
through
 
digital
 
entertainment
 
services.
These shifting
 
behaviors,
 
along with
 
business deploying
 
digital
transformation
 
and launching
 
innovative
 
digital services,
 
caused
the demand
 
for bandwidth
 
to continue
 
its strong
 
growth profile.
 
It
has confirmed
 
the importance
 
of
investing in
 
fiber as
 
the fixed
network technology of
 
the future
.
Proximus
 
is moving
 
up a gear.
 
Our objective:
by 2028,
 
we will
have connected
 
at least
 
4.2 million
 
homes and businesses
 
to
fiber
, covering
 
at least
 
70% of
 
homes
 
and businesses
 
in Belgium.
Our partners
 
will complement
 
us in
 
achieving
 
this ambitious
 
plan,
and even accelerate
 
the roll-out of
 
fiber.
Everyone benefits
 
from fiber
Fiber offers
 
an answer
 
to the continued
 
growth in data
consumption
 
of both
 
residential
 
and business
 
customers.
Fiber-users
 
enjoy
download
 
speeds
of up to
 
1 Gbps and upload
speeds of
 
up to
 
200 Mbps.
 
In addition
 
to download
 
speeds, fiber
offers
 
other
 
advantages
 
from
higher upload
 
speeds
essential
 
for
home working,
low latency
for applications
 
such as
 
gaming,
environmentally
 
it is
more energy
 
efficient
and economically
 
it
has far lower costs
 
to operate.
Accelerated
 
roll-out with partners
As part of our plan to cover at least 4.2 million
 
homes and
businesses
 
by 2028
 
we entered
 
in two
partnerships
: with
EQT
Infrastructure
in Flanders
 
and
Eurofiber
in Wallonia.
 
By doing
so, Proximus
 
will significantly
 
expand
 
its fiber
 
network
 
and
accelerate
 
the fiber
 
roll-out
in the
 
coming years.
Flanders
 
Wallonia
 
Brussels
We set up
Fiberklaar
, a joint
 
venture with
EQT Infrastructure, in March
 
2021.
Fiberklaar to connect at least 1.5 million
homes and
 
businesses
 
in Flanders by 2028.
We set up
Unifiber
, a joint
 
venture with
Eurofiber, in July 2021.
Unifiber to connect at least 500,000
homes and
 
businesses
 
in Wallonia
 
by 2028.
We will continue
 
to accelerate
 
our
own fiber
roll-out
.
Proximus
 
to cover
 
the entire
 
Brussels
Capital Region by
 
the end of 2026.
 
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2021
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These two joint ventures
 
will take Proximus
 
closer to its ultimate
objective of connecting Belgium through an
 
open, future-proof
network that brings
high or
 
very high-speed
 
connectivity
to every
 
home and
 
business
, including
 
those in
 
less densely
populated areas.
 
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Integrated annual report
 
2021
I
30
Fiber achievements in
 
2021
The roll-out of fiber is ongoing in 45
 
Belgian cities and
municipalities, 29 of
 
which are new.
 
We have connected
353,000
homes and businesses
, totalling 813,000 end 2021. With our
partner Signpost, we have provided 44 schools
 
with a fiber
connection.
Our footprint is
close to 14%
of total Belgian
 
premises.
In 2021,
 
the
pace of new
 
connections
 
has nearly
 
doubled
compared
to 2020. In 2021 we connected one
 
home or business
 
every 18 seconds
(vs every 34 seconds
 
in 2020).
In 2021 we onboarded
8 new fiber wholesale partners
, bringing
the total number
 
of partners to
 
36.
Speeding into
 
the future
On the
 
coming
 
period,
 
we will
 
increase
 
our stand-alone
 
roll-out
 
of
fiber and
 
actively
 
support
 
our joint
 
ventures
 
in the efficient
 
roll-
out of
 
fiber.
 
These joint
 
ventures
 
started
 
deploying
 
fiber
 
in the
fourth
 
quarter
 
of 2021
 
but have
 
a lot
 
of crucial
 
work ahead
of them in
 
2022. As
 
soon as we
 
are at cruising
 
speed, as from
2023,
 
Proximus
 
will
deploy fiber
 
to a rate
 
of close
 
to 10%
 
of the
country
 
per year
, to cover
 
at least
 
70% of
 
the Belgian
 
population
by 2028.
World’s fastest
 
fiber speed
 
deployed
Proximus is the
first operator
 
to add 25G capabilities to its commercial
network
in Belgium.
 
Together
 
with
Nokia
, we have deployed
 
the first live
25 Gigabit PON is the latest generation,
boosting both download and upload
speeds
on fiber
 
networks
 
to unprecedented
 
levels around
 
200 times
 
faster
 
than
the most advanced broadband networks of ten years ago.
 
This technological
breakthrough shows the virtually
unlimited capacity of fiber
. In fact, the
innovation makes our network the fastest in the world,
 
earning Proximus the
global
 
award
 
for
Fiber
 
Operator
 
of the
 
Year
, an
 
acknowledgement
 
issued
 
by the
Broadband World Forum (BBWF). This is encouraging
 
us to pursue our fiber
strategy based
 
on highly
 
ambitious
 
acceleration
 
plan, innovative
 
partnerships and
open network model
 
and confirms
 
the potential of
 
our fiber network
to become
 
a key
 
driver
 
of the
 
digital
 
economy and
 
the society
 
we
 
stand
for.
 
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Integrated annual report
 
2021
I
31
Phasing
 
out
 
our existing copper
 
network
We notify
 
our customers
 
once fiber
 
is active
 
in their city.
 
We migrate
them
 
to fiber
 
step-by-step
 
by offering
 
alternative
 
products,
 
allowing
us to
 
switch
 
off our
 
copper
 
network.
 
This in
 
turn leads
 
to, among
other
 
things,
operational
 
savings
 
and simpler
 
management
 
of
infrastructure
. In keeping
 
with our
 
commitment
 
to sustainability,
 
all
material
 
is recycled
 
or reused
 
for other
purposes.
 
In 2021,
 
we recovered
 
a total
 
of
859 tons
 
of copper
cable
, from
 
which
 
811 tons
 
directly
 
from
 
the network.
We plan
 
to deactivate
 
the existing
 
copper
 
network
 
in a specific
zone within
 
five years
 
of fiber
 
installation
 
works have
 
started
there.
Boosting
 
VDSL
 
infrastructure
The fiber roll-out
 
is our number one
 
priority. Still,
 
not all
consumers
 
will have
 
direct
 
access
 
to fiber.
 
It is important
 
that they
too can
 
benefit
 
from high-speed
 
internet.
 
That is
 
why we are
 
also
improving
 
our existing
 
infrastructure
for broadband
 
access
 
using
copper.
By developing
 
and implementing
 
its 2MX6
 
or
ultra-vectoring
technology
 
on the
 
copper
 
network
, engineers
 
at
Nokia
and
Proximus
 
launched
a global
 
first
in May
 
2021.
 
This innovation
allows
 
twice as
 
many customers
 
to be
 
serviced
 
using
 
a single
street
 
cabinet,
 
while
 
doubling
 
the speed
 
of broadband
 
internet
and reducing energy
 
consumption.
TITAN:
Voice, data and TV traffic
migration finalized
 
in 2021
In August
 
2018, Proximus
 
announced
 
its three-year
 
TITAN
project. The program’s
 
goal was to
increase the capacity
than before.
Since its inception,
 
TITAN has addressed
 
the growing use of
bandwidth
 
and the
 
rise in
 
data traffic.
 
It was
 
key to
 
proactively
strengthening
 
our data
 
transportation
 
network, which
 
carries
almost all the fixed and mobile voice, data and
 
TV traffic of
our residential and
 
professional customers.
 
This upgraded
backbone facilitates the development of services using
augmented reality, virtual
 
reality and IoT,
 
as well as
 
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Integrated annual report
 
2021
I
32
Staying ahead
 
of the
 
game
 
with
 
5G,
 
the
mobile network
 
of
 
the
 
future
In the future,
 
we will all
 
increasingly
 
use mobile data,
 
through more
intensive use of
 
services such as
 
high-definition
 
video streaming,
innovative
 
industry
 
solutions
 
and remote
 
working.
 
The
 
need for
super-fast,
 
large-capacity
 
networks
 
like 5G
 
is growing.
We are
committed
 
to remaining
 
the leader
 
for 5G
 
in Belgium
– with
 
a future-proof,
 
reliable and
 
more energy-efficient
 
open
mobile network.
5G: so
 
much
 
more
 
than
 
a faster
 
network
New applications continue to draw on the capacity of
 
the
networks.
 
Although
 
our existing
 
3G/4G network
 
provides one of
the best quality
 
levels available
 
in the world
 
today,
5G opens new
perspectives
, and
 
will allow
 
for the
 
creation
 
of new,
 
exciting
services.
 
5G is a 100%
 
stable, secure
 
and wireless connection
 
that is up to
10 times
 
faster than
 
4G
. Thanks
 
to the
enormous
 
bandwidth
and
the reliable,
ultra-low-latency
data transfer,
 
5G is able
 
to make
an infinite
 
number of
 
connections.
 
This offers
 
companies and
organizations
 
opportunities
 
to make their
 
processes
 
more
efficient, more
 
secure and
 
more mobile.
 
The faster
 
speeds
of 5G enable new
 
applications and
 
ways of working, such as
decentralized
 
clouds
 
and the
 
Internet
 
of Things
 
(IoT). Ultra-low
 
latency
allows
 
hyper-realistic
 
rendering
 
in virtual
 
reality
 
images.
5G improves
 
the efficiency
 
of mobile
 
data transmission:
less
energy
is required
 
for the
 
same amount
 
of data.
 
5G networks
use little
 
power when
 
traffic
 
is low, further
 
reducing the
 
power
consumption of the antennas.
5G also
 
forms
 
the foundation
 
of tomorrow's
digital economy
and
 
will
help
address societal challenges
.
 
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2021
I
31
Pioneering
 
5G in
 
Belgium
On 1
 
April 2020,
 
Proximus
 
was the
 
first operator
 
in Belgium
 
to
launch
 
5G commercially
 
for consumers,
 
enterprises
 
and
wholesale partners.
At the
 
end of
 
2021,
 
5G is
 
available
 
at around
 
137 sites
 
in 70
 
cities
and municipalities, mainly
 
in Flanders.
In the
Brussels
 
Region
in July
 
2021, the
 
Brussels government
decided
 
to slightly
 
increase the
 
radiation
 
standard from
 
6V/m to
14.5 V/m (volts
 
per meter),
 
still the
 
strictest standards
 
in
Belgium.
 
Although
 
the decision
 
has yet
 
to be transposed
 
in a
legal framework,
 
it is
 
an important
 
step towards
 
implementing
5G in Brussels.
In
Wallonia
, a group
 
of experts
 
was mandated
 
in July 2020
 
by
the
Walloon
 
government
to give their
 
advice on
 
the roll-out
 
of
5G. While
 
awaiting
 
their complete
 
report,
 
we remain
 
committed
 
to
deploying the best 5G network and complying with all
applicable standards in
 
each region.
Detailed
 
information
 
on
5G spectrum
 
auction
can be found
 
on
page xxx.
Partnerships
 
to reinforce
 
our
 
mobile
 
leadership
For all
 
users,
 
we want
 
to offer
 
the best
 
possible
 
experience.
We want to
 
work as efficiently
 
as we can,
 
increase operational
synergies
 
and manage
 
our network
 
in a sustainable
 
way.
Mwingz
,
our
joint venture
 
with Orange
 
Belgium
, aligns
 
perfectly
 
with that
ambition.
Mwingz was
 
launched
 
in 2020 and
 
aims to improve
 
the global
mobile experience
 
through the improvement
 
of outdoor
coverage,
 
better
 
indoor
 
coverage
 
and a faster
 
roll-out of
 
5G. By
sharing
 
parts
 
of the
 
mobile
 
network
 
access
 
infrastructure
,
 
the
network
 
will be
 
used more
 
efficiently,
 
paving the
 
way for
5G innovation platform
Proximus is
 
leveraging
 
the possibilities
 
of
5G for
industrial
 
applications
. To further
 
accelerate
 
the
development of 5G use cases, we have launched a dedicated
many
industrial sectors.
The platform
 
is a
 
future-oriented
 
5G standalone
 
private
 
network
based on both a 2100 and a 3500 MHz spectrum. Customers
can connect
 
to this
 
network from
 
any location
 
that currently
has 5G
 
coverage,
 
including
 
their own
 
sites. Proximus
 
also
created a test site at its headquarters in Brussels for
customers who do
 
not yet have
 
5G coverage.
 
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2021
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33
sustainable
 
investments.
 
In 2021,
 
we started
 
the consolidation
 
of
our Radio
 
Access Network
 
(RAN), which
 
has already shown
positive results
 
in terms
 
of coverage
 
gain, throughput
 
and
customer
 
experience.
 
The real
 
take-off,
 
however,
 
will happen
 
in
2022.
Our partnerships will
enable us to build an
efficient, open, reliable
and sustainable
 
mobile
network.
In 2020,
 
Proximus also
 
announced
 
it would partner
 
with
Nokia and
Ericsson
. These
 
partnerships
 
enable
 
us to
 
build an
 
efficient, open,
reliable and sustainable
 
mobile network:
Our partnership
 
with Nokia
 
aims to
 
upgrade
the Mobile
 
Radio
Access Network
(RAN) equipment.
Our partnership
 
with Ericsson
 
aims to
 
modernize
 
Proximus’
Mobile
 
Data
 
Core Network
.
Thanks
 
to these
 
collaborations
 
we will
 
benefit
 
from a
 
completely
renewed
 
and energy
 
efficient
 
mobile network
in the next
 
few
years.
 
In 2021,
 
we started
 
migrating
 
customers
 
to Nokia
equipment,
 
offering
 
better
 
coverage
 
and increased
 
download
speeds.
Throughout
 
2022,
 
we will
 
continue
 
the mobile
 
network
 
swap and
consolidation and
 
the roll-out and
 
activation of 5G,
 
and we will
further develop 5G
 
use cases in
 
the B2B domain.
Enhancing
 
the
 
capacity
 
and quality
 
of our
 
3G and
 
4G networks
To meet the growing
 
demand for connectivity
 
on the go, Proximus
continued
 
to improve
 
the coverage
 
experience
 
of its
 
customers
in 2021. Thanks to innovations
 
such as spectrum refarming,
 
we
increased the capacity
of our network to address
 
growing data
volumes
 
and usage.
 
In 2021,
 
the nearly
 
8,000
 
tests
 
collected
via the
 
Becover+
 
application
 
of
Test Achats
, showed
 
Proximus
 
to
have the
 
best network
 
coverage
 
for
mobile Internet
.
At the
 
end of
 
2021,
 
3.4 million
 
customers
 
enjoyed
 
even
better
 
voice
quality
with
 
Voice-over-LTE
 
on their
 
smartphones,
 
an increase from
the 2.4 million
 
at the end
 
of 2020.
Addressing
 
health
 
concerns
Proximus
 
is aware
 
of concerns
 
regarding
 
electromagnetic
 
fields
and health.
 
We provide
 
information
 
about these
 
issues,
 
as well
 
as
taking
precautionary
 
measures
. We comply
 
with the legislation
 
in
force,
 
both for
 
networks
 
and for
 
devices,
 
and closely
 
follow
 
up
developments in scientific
 
research.
The potential
 
health impact
 
of radio
 
frequencies,
 
particularly those
used in
 
mobile
 
telephony,
 
has been
 
the subject
 
of
scientific
 
studies
for more than 30
 
years. On the
 
basis of the available
 
research,
the vast majority
 
of (inter)national
 
authorities and institutions
(including
 
the WHO -
 
World Health Organization)
 
agree that
 
there
is no
 
evidence
 
radio
 
frequencies
 
for mobile
communication
 
that are
 
below internationally
 
authorized
 
thresholds
have adverse
 
health
 
consequences.
 
This will
 
not
 
change with 5G.
On our websites
, we provide
 
information
 
about the
 
potential
 
for
electromagnetic
 
waves
 
to impact
 
health
 
and the
 
environment.
There are
 
also links
 
to information
 
made available
 
by the Belgian
regional
 
authorities
 
and the WHO
 
regarding
 
scientific
 
research
 
in
this field. People
 
can also find
 
advice on how
 
they can mitigate the
potential risks
 
of radiation
 
in their
 
own environments,
 
and
tips for
 
reducing
 
exposure
 
to electromagnetic
 
waves from
 
mobile
phones.
 
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Proximus Group I
Integrated annual report
 
2021
I
34
An accessible
 
network for
 
all
Welcoming
 
all
 
other
 
operators
Our gigabit
 
network is
 
an
open network
. All other telecom
operators can use our network to stand out from their
competition
 
and
offer services
 
to their
 
own end-customers
under
 
fair and
 
non-discriminatory
 
conditions.
 
We provide
 
our
wholesale
 
partners
 
with fully
 
automated
 
and customized
services,
 
from quoting
 
to billing.
 
This allows
 
them to operate
successfully in the segment of their choice – whether
 
this means
individuals
 
or companies,
 
small/home
 
offices (SOHO)
 
or
 
small
 
to
medium-sized
 
enterprises
 
(SMEs).
 
This way,
 
we foster
competition
 
and innovation
 
on Belgium’s
 
cutting-edge
 
networks.
Connecting
 
less
 
densely
 
populated
 
areas
We have
 
made significant
 
investments
 
to
improve connectivity
in
rural zones
 
and so-called
 
"white zones"
, places that lack
connectivity.
Although Belgium is one of the countries with the best
broadband coverage
 
in the world,
 
there are still a limited
 
number
of locations
 
where people
 
do not benefit
 
from a high-
performance
 
internet
 
connection
 
(> 30
 
Mbit/s).
 
These areas
 
are
mainly
 
located
 
in rural
 
areas
 
in Wallonia,
 
where the
 
deployment
 
of
optical fiber is not
 
economically viable.
By using
new technologies
such as fiber-optic
 
aerials, optical
nodes connected
 
via radio
 
links and
 
4G modems, and
 
co-
* New
Mobile Virtual
 
Network Operator
partners,
 
such
as Youfone, Sewan or
 
Citymesh
investing
 
with local
 
public
 
authorities,
 
we have
 
the opportunity
 
to
make the
 
digital
 
world
 
accessible
 
to everyone,
 
everywhere.
Together
 
with our
 
partner
Tessares
, we are
 
working
 
on innovative
technology
 
that combines
 
the bandwidth
 
of a customer's
 
fixed
network with
 
the 4G network.
 
This should
 
significantly improve
 
the
customer's internet experience.
Thanks to
 
our efforts,
 
94.8% of
 
the inhabitants
 
of white zones
had access
 
to high-speed
 
connectivity
 
(> 30 Mbit/s)
 
at the
 
end
 
of
2021, compared to 93.5% at the end of 2020. Only two
municipalities
 
had poor
 
connectivity
 
end 2021, compared
 
to 39
in 2017.
Partners in 2021
Fiber
MVNO*
New
8
5
Total
36
9
 
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Integrated annual report
 
2021
I
35
Supporting
 
communities
 
impacted
 
by summer
 
floods
In mid-July
 
2021,
 
Belgium
 
was hit
 
by catastrophic
 
flooding
triggered
 
by unprecedented
 
rainfall.
 
The worst
 
affected
 
areas
 
were
in the
provinces
 
of Liège,
 
Namur and
 
Luxembourg
.
The impact
 
of the flooding
 
was immense,
 
with loss of
 
human life,
damaged
 
homes
 
and infrastructure.
 
Our mobile
 
and fixed
infrastructure
 
was
 
also
 
severely
 
affected.
 
Twenty-one
 
technical
buildings
 
and 228
 
street
 
cabinets
 
were affected
 
by water
 
or other
damage,
 
plus
 
55 mobile
 
sites
 
were
 
rendered
 
inoperable.
Almost
 
400,000
 
residential
 
and enterprise
 
customers
 
that lost
connectivity
 
due to
 
flooding
 
received
50GB of
 
free mobile
 
data
.
We also
 
distributed
7,500
 
mobile
 
phone chargers
. Furthermore,
we installed
charging
 
booths
for mobile
 
phones
 
and set
 
up four
cyber-hubs
for the affected
 
communities.
Our teams
 
worked
 
in very
 
challenging
 
conditions,
 
to
restore
 
our
mobile
 
and fixed
 
networks
as quickly
 
as possible
 
and ensure
people
 
in these
 
affected
 
areas
 
could
 
reconnect
 
with their
 
families
and friends.
 
In some
 
places,
 
we even
 
succeeded
 
to
deploy
 
fiber
in
record time
 
instead
 
of repairing
 
the copper
 
network.
These
 
events
 
have
 
unveiled
 
the important
 
societal
 
role we
 
play, firstly
through
 
our infrastructure
 
and the
 
connectivity
 
it provides,
 
but also
more broadly
 
as a key
 
player
 
in the
 
economic
 
and social
 
landscape in
Belgium.
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Operate like a
digital
 
native
company
 
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Integrated annual report
 
2021
I
37
Proximus Group I
Integrated annual report
 
2021
I
36
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Operate like a
digital
 
native
company
Proximus is transforming its operating model to make the
company truly fit
 
for the digital
 
world. We want
 
to offer the
same user standards as native digital players on the market.
This will lead to a better customer experience and more
efficiency.
Our customers are at the center of everything we do. We
aim to offer them personalized, effortless, and
 
proactive
experiences that
 
are consistent
 
across
channels and
 
segments. For
 
our convergent residential
customers, we’ve set the ambitious
 
goal of becoming
Transforming into a
company that is fit
for the
 
digital world.
the Belgian market’s leading operator in terms of customer
experience and brand recommendation by the end of 2022.
For our enterprise customers we aim to be on
 
par with the
best performing B2B
 
competitors in Europe by the end of
2023. We measure our customer experience and loyalty
through the Net Promoter Score (NPS).
In our journey to
 
reach those ambitious
 
NPS, we made
progress in 2021 in transforming into a company that offers
best-in-class experiences to its customers, combining the
best digital technology with the best human interaction. This
transformation allows us to be more efficient while adapting
swiftly to changing markets and evolving customer
expectations.
To operate like a digital native company, we also need to
become a legacy-free
 
operator in terms
 
of IT. Our ambition
is to achieve this by 2025. In 2021, we significantly
 
reduced
our IT costs.
 
In parallel,
 
we
continued to invest
 
in solid data
 
foundations and build
 
our
automation and advanced analytic
 
capabilities.
Data is essential
 
to creating and
 
implementing even more
proactive and personalized services.
Finally, we substantially invest in the up-skilling and re-
skilling of
 
our employees
 
allowing existing
 
talents to grow
and we continue to recruit new talents in domains of the
future.
Material topic addressed
 
in this strategic
 
pillar:
Digital access
Proximus Group I
Integrated annual report
 
2021
I
37
 
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2021
I
38
Customers are
 
the center
 
of our
 
attention
Our customers
 
interact with
 
us in many
 
ways; in person,
 
on the
phone, through
 
a website
 
or using
 
an app. By improving
 
these
customer
 
touchpoints
 
and offering
 
hassle-free
 
interactions,
 
we
exceed expectations
 
every time
 
customers
 
get in touch with
 
us.
Our continuous
 
effort to
optimize
 
our digital
 
tools – while
maintaining a human approach
– brings us closer to our
customers.
Finding
 
the right
 
balance
 
between
 
offering
 
best-in-class
 
digital
experiences
 
with a
 
human touch
 
will
positively
 
impact our
Net Promoter
 
Score
. The
 
higher
 
this score,
 
the more
 
likely
 
our
 
customers
are to recommend
 
our services
 
to others.
Acting
 
upon
 
customer
 
feedback
Our customer-feedback
 
platform
 
"Voice of
 
the customer"
 
allows
us to collect
 
and analyze
 
residential
 
and enterprise
 
customer
feedback and act on
 
it swiftly.
In 2021,
 
an average
 
of 35,000
 
customers
 
per month
 
participated
 
in
our surveys and
 
we
 
contacted more than
 
15,000 customers to
address issues they
 
raised.
In 2021,
 
we have
 
taken great
 
strides forward
 
in
improving
 
and
redesigning
 
our customer
 
journeys
, calling
 
on our customers
themselves.
 
Our journey
 
approach
 
ensures that
 
we include
 
our
customers
 
from the
 
start of
 
the design
 
process, and
 
guarantees
that we build
 
an intuitive,
 
digital-first
 
customer
 
experience.
 
For
example,
 
we conducted
 
over 100
 
interviews
 
with enterprise
customers
 
to co-create
 
and validate
 
our enterprise
 
digital
roadmap.
Improving
 
customer
 
interactions
Our customers
 
expect
 
us to be
digital
 
if it
 
delivers
 
value
for them.
We develop
 
digital
 
tools
 
that
 
are easy
 
to use,
 
fast
 
and
 
user-centric.
Increasing digital self-service
 
options
We are continuously
 
increasing our digital
 
self-service options.
They make
 
it easy for
 
our customers
 
to manage their
 
products
and services.
 
In 2021, we extended
 
the options on our
MyProximus
 
app
. Both
 
the web-based
 
application,
 
mostly
 
used
by our
 
enterprise
 
customers,
 
as well
 
as the mobile
 
app,
developed
 
with our
 
residential
 
customers
 
in mind,
 
were upgraded
 
to
create a more
 
user-friendly environment.
Some examples
 
of digital
 
self-service
 
improvements:
Digital
 
Bill
Since September
 
2021,
 
it has
 
been easy
 
for customers
 
to
navigate
 
and understand
 
the different
 
details
of their
 
bills.
There is
 
no need
 
to download
 
a PDF
 
document
 
or call
 
Customer
Service. Instead,
 
a clear overview
 
with information
 
about their
plan or
 
subscription,
 
usage,
 
one-time charges
 
and other
 
costs
is accessible with
 
just one click.
 
We also added an evolution chart,
that gives
 
customers
 
a visual
 
overview.
 
Thanks to
 
this new,
 
intuitive
experience,
 
we want
 
to make digital
 
solutions more attractive
 
and
ease the
 
transition
 
to paperless
 
administration.
In 2021,
 
we launched
 
initiatives
 
to boost
 
the adoption
 
of e-billing
amongst our enterprise
 
customers. This led
 
to an increase of
customers
 
using
 
Digital
 
Bill with
 
10%, reaching
 
a 57%
 
share end
2021. This
 
represents
 
a reduction
 
of 8.4 million
 
printed pages
 
or
 
42
tons of paper.
 
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Integrated annual report
 
2021
I
39
Easy follow-up
 
of requests
With MyProximus,
 
it is now easy for
 
our residential
 
and small
enterprise
 
customers
 
to
track
 
their
 
commercial,
 
administrative
and repair
 
requests
. Status
 
updates are displayed
 
at every step,
making
 
digital
 
follow-up
 
easy and interactive.
 
Customer service
agents document
 
each step.
 
They are
 
able to exchange
documents
 
and pictures
 
back and
 
forth with
 
the customer
 
and
adjust
 
appointments
 
for repairs.
 
Customers
 
are even
 
able to keep
requests open
 
if they are not
 
satisfied with the solutions
 
they
have received.
Real-time
 
usage tracking
Since 2021,
 
customers
 
who have
mobile subscriptions
 
via their
employers
have been
 
able to
 
follow up
 
their usage
 
in real time
 
and
consult their invoices
 
via the MyProximus
 
app.
Proximus
 
Assistant
Early 2021,
 
we
improved
 
our chat
 
service
for customers
 
who use
our website
 
or app.
 
Proximus
 
Assistant
 
now answers
 
questions
about lost
 
and stolen
 
devices, forgotten
 
PIN and PUK codes,
questions about TV
 
options and payments.
By the
 
end of
 
2021, customer
 
satisfaction
 
for the
 
chat option
 
reached 71% (vs.
 
68% at the
 
end of 2020).
Better
 
in-home
 
experience
With the continuous
 
technical
 
improvements to
 
our modems and
boosters, we provide better in-home experiences. In MyProximus,
the
Smart
 
Wi-Fi
feature
 
manages all the
customers
 
connections
 
and adapts
 
to provide
 
them with
 
the best
Wi-Fi
 
coverage
 
. During interventions,
 
our technicians
 
now
perform a
speed test
on the modem and a Wi-Fi test in up to
three locations
 
in the customer's
 
home. If
 
necessary,
 
they make
adjustments
 
so that
 
customers
 
enjoy
 
reliable
 
Wi-Fi everywhere.
In 2021, the total
 
number of active
 
users on MyProximus
 
has
increased. At the
 
end of 2021, we
 
had 1.7 million active
 
users on
MyProximus
 
(vs 1.6
 
million
 
end 2020).
 
The number
 
of active
enterprise
 
customers
 
increased
 
from 30%
 
end 2020
 
to 37%
 
end
2021. At
 
the end of
 
2021, 19,000
 
enterprise customers
 
were using
MyProximus
 
Enterprise
 
(15,500
 
at the end
 
of 2020).
Digitizing our sales channels
By digitizing our sales channels, we deliver a seamless
omnichannel
 
experience
 
to our
 
customers,
 
where
physical
 
and
virtual interactions
are fully aligned.
We offer:
Multipurpose
 
screens
 
in shops
Using our
 
digital screens,
 
customers
 
have easy
 
access to
 
all the
information
 
they need
 
to
make the
 
best choices.
Options
include
 
a "pack
 
recommender"
 
tool, a price
 
catalogue
 
(for packs,
promotions
 
and specific
 
devices),
 
a comparison
 
tool for
 
mobile
devices, the
 
possibility
 
to order
 
a wide range
 
of accessories
 
and
direct access to
 
the Proximus website.
Omnichannel
 
shopping
 
baskets
Customers
 
typically
 
start a shopping
 
experience online,
 
and
sometimes finish
 
it during a shop
 
visit (or vice-versa).
 
For that
purpose,
 
we have
digitized
 
interactions
 
with customers
 
across
 
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40
all sales
 
channels
through virtual
 
shopping
 
baskets. Customers
can consult
 
their baskets
 
anywhere
 
and anytime
 
they want and
complete
 
their orders
 
as soon as
 
they finalize
 
their decisions.
 
In
2021, we
 
recorded
 
74,000
 
instances
 
where customers
 
added
items to their
 
shopping
 
baskets on
 
one occasion,
 
completing
 
the
purchase
 
later.
 
The benefits
 
are twofold:
 
we gain
 
insights
 
into the
shopping
 
process across
 
all sales
 
channels,
 
and customers
 
are
offered a seamless
 
shopping experience.
Commercial
 
migrations
In 2021,
 
more commercial
 
pack migrations
 
could be
completed
digitally
instead of
 
requiring manual
 
intervention
 
by one
 
of
our colleagues.
 
For example,
 
certain
 
Flex pack
 
migrations
previously
 
required
 
human
 
intervention
 
to be put
 
into operation.
By digitizing
 
we not only
 
improve customer
 
experience
 
but also
reduce operational
 
cost linked
 
to commercial
 
migrations.
Balancing digital and human interactions
Our vision
 
is to
combine
 
the best digital
 
technology with
 
the
best human
 
interaction
to provide
 
the most efficient
 
customer
experience.
Thanks to
 
the digitalization
 
efforts
 
mentioned
 
above,
 
our experts
can focus
 
on assisting
 
our customers
 
who have more
 
complex
questions.
Sales people in
 
our
Proximus shops
play a crucial role for
customers
 
who feel
 
more comfortable
 
with face-to-face
interactions. In
 
2021, we focused
 
on maximizing
 
the positive
impact
 
of these
 
interactions
 
and we reinforced
 
the first-time
 
right
approach.
Measuring
 
customer
 
promotership
 
using
 
the
 
Net
 
Promoter
 
Score
Ultimately,
 
we want
 
our customers
 
to become
 
brand
 
promoters.
We aim to
become the operator with the best brand
recommendation
on the
 
Belgian
 
market by
 
the end of
 
2022.
We measure
 
our
customer’s
 
loyalty
using the
Net Promoter
Score
or NPS. We ask customers how willing they are
 
to
recommend
 
our products
 
or services
 
to others.
 
Their responses
give us insight
 
into their overall
 
satisfaction level.
The NPS
 
of our
convergent
 
residential
 
customers
increased
over 2021,
 
whereas the
 
NPS of our
 
small enterprise
 
customers
decreased
 
from the
 
previous
 
year.
 
The pandemic
 
may have
 
had
some influence on
 
these results.
Our
small enterprise
 
customers
expect personalized,
 
proactive
 
and
convenient support.
 
We took an important step in 2021 thanks
 
to
our Prime
 
service,
 
launched in
 
the last
 
quarter of
 
2020.
 
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2021
I
41
This premium
 
customer
 
experience
 
allows small
 
enterprises
 
to get
priority
 
access
 
to expert
 
digital
 
and human
 
support, help
 
and
advice via
 
the MyProximus
 
app. With
 
Prime service,
 
customers
easily follow up
 
their requests
 
at any time on
 
the app and are
notified at each
 
step in the
 
relevant process.
The NPS of our
 
biggest
corporate customers
improved
significantly
 
over 2021
 
thanks to
 
our dedicated
 
account teams.
However,
 
this increase
 
was offset
 
by a decrease in
 
the NPS of
our medium-sized
 
enterprises.
 
We first implemented
 
structural
improvements
 
for these
 
customers.
 
Our support
 
officers
 
were
organized
 
into multiskilled
 
agile
 
teams. These
 
teams were
 
each
responsible
 
for an
 
assigned
 
group of
 
customers.
 
This succeeded
 
in
significantly
 
improving
 
customer satisfaction.
 
This way of working
will become
 
standard for
 
all enterprise
 
customers in 2022.
 
In June
we launched
 
a first
 
version of
 
a bundle
 
solution for
 
medium-sized
enterprises
 
where customer
 
experience
 
was built
 
in by design.
With
Mobile Vikings
, which we acquired in 2021, and
Scarlet
,
we now have two brands with leading
 
Net Promoter Scores in
Belgian telecom.
IT
 
transformation
 
and simplification
In order
 
to operate
 
like
 
a digital
 
native
 
company,
 
we aim
 
to
be free
from legacy
 
IT systems
 
and obsolete
 
technologies
 
by 2025.
We need
 
our information
 
systems
 
to be flexible,
 
cloud-based
 
and
 
to
support
 
data
 
automation
 
and advanced
 
analytics.
 
Therefore,
we need
 
to change
 
our culture
 
and become
 
a genuine
 
software
company
 
with a
 
"digital
 
native"
 
touch.
 
In 2021,
 
we have
 
already
made
 
significant
 
progress
 
in this
 
transformation.
 
As a result,
 
we
are on track
 
to reduce our
 
IT costs
 
by 40% by
 
2025.
Digital
 
native
 
user
 
experience
A full,
 
digitally
 
supported
 
sales and
 
servicing
 
journey
 
goes hand-
in-hand
 
with
 
a stable
 
IT environment.
 
We are
 
putting
 
extra focus
 
on
platform
 
and infrastructure
 
improvements
 
that
increase
 
the
resilience of digital
 
customer tools
:
Customer
 
insights
 
tools
– In 2021,
 
we further
 
evolved
 
from a
reactive
 
approach
 
that
 
uses
 
customer
 
feedback
 
or surveys,
 
to a
proactive
 
approach.
 
We will
 
use our
 
monitoring
 
tools
 
to
detect
 
problems
 
more
 
quickly
 
in order
 
to take
 
action
 
before
 
any
complaints
 
would
 
come up
 
or more
 
customers
 
would
 
be
impacted.
Customer
 
experience
 
research
 
team
– We introduced
 
this team
 
in
summer
 
2021
 
to ensure
 
uncompromisingly
 
smooth
 
customer
experience
 
by proactively
 
testing
 
user journeys,
 
suggesting
improvements and following
 
up on defects.
Pickx
 
entertainment
 
platform
To improve
 
the continuity
 
of Pickx,
 
our entertainment
 
platform,
 
we
took the
 
steps necessary
 
for
improving
 
the app
 
stability.
Result:
a crash-free
 
rate of
 
98% by
 
the end
 
of 2021
 
(69% at
 
the
end of 2020).
In 2021,
 
we also
 
started
 
the complete
 
revamp
 
of our
 
TV backend.
This
 
way we
 
were
 
able
 
to improve
 
the time-to-market
 
for new
products
 
and services.
 
We reduced
 
costs
 
and improved
 
availability
and resilience.
 
We expect
 
this
 
to be
 
a lever
 
for (even)
 
greater
 
change
and innovation.
 
The first
 
concrete
 
results
 
of our
 
efforts
 
will
 
be visible
in 2022.
 
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2021
I
42
Leading
 
app
 
ecosystem
In 2021,
we expanded
 
our digital
 
app ecosystem
. This comprises
 
a
set of
 
products
 
and services
 
(such
 
as MyFootprint,
 
Banx
and 4411)
 
that guarantee
 
a uniform
 
and superior
 
customer
experience.
 
The MyProximus
 
app ecosystem
 
is also
 
open for
 
other
partners who want
 
to integrate their
 
apps.
Thanks
 
to these
 
efforts,
 
we successfully
 
positioned
 
ourselves
 
as a
digital
 
companion
 
in the
 
daily
 
lives
 
of our
 
customers.
 
With the
launch
 
of Doktr
 
and Banx,
 
we crossed
 
the telecom
 
border
 
to enter
the eHealth
 
and banking
 
sectors.
 
Such digital
 
diversification
requires
 
a strong
 
digital
 
IT vision.
 
2021
 
therefore
 
marked
 
the start
 
of
a faster,
 
more
 
efficient
 
future-proof
 
app ecosystem.
In 2022, our app ecosystem
 
will introduce new products and
services
 
in a more cost-effective
 
way and with better time to
market.
Value
 
through
 
data
 
and
 
artificial
 
intelligence
Artificial
 
intelligence
 
(AI) helps
 
us to
 
exploit
 
the full
 
potential
 
of
our data.
 
The more
 
use cases
 
we have,
 
the more
 
efficient
 
and
customer-centric we will
 
be.
Predictive
 
analytics
optimize
 
our stocks
 
of mobile
 
devices.
In 2021,
this
 
led to
 
almost 30%
 
reduction
 
in missed
 
sales (compared
 
to 2020
figures).
AI models
 
detect the
necessity
 
for a field
 
technician
 
or a splicer
to intervene
. Through
 
such "next
 
best action"
 
predictions,
 
25,000
unnecessary interventions
 
were avoided
 
in 2021.
Our AI
 
efforts
 
enable
 
us to
 
set up
 
relevant
 
data ecosystems
 
with
large
 
Belgian
 
industries
 
and players,
 
and to
 
use our
 
telecom
 
data
 
for
intelligent market solutions.
 
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43
Scalable
 
and
 
compliant
 
data
 
infrastructure
We are
building
 
data-driven
 
architecture
based
 
on a scalable
 
and
secure
 
infrastructure.
 
To exploit
 
the full
 
potential
 
of our
 
data, we
employ
 
state-of-the-art
 
big data
 
infrastructure,
 
an advanced-
analytics
 
toolset,
 
an intuitive
 
self-service
 
interface
 
and solid
governance.
Modular, resilient
 
and cost-efficient
 
core IT landscape
We are
 
pursuing
 
a modular,
 
resilient
 
and cost-effective
 
IT
landscape.
 
New digital
 
services
 
are key
 
to attracting
 
customers
and play
 
a meaningful
 
role
 
in their
 
daily lives.
 
Therefore,
 
we
developed
 
a holistic
 
approach
 
to IT,
 
in order
 
to
improve
 
cost-
efficiency
. Initiatives included:
simplifying
 
technology
 
infrastructure
 
based on
 
modern and
cloud-based solutions;
implementing
 
an engineering-oriented
 
culture with
 
reduced
overheads and fewer
 
coordinating roles;
practices
 
that increase
 
automation
 
in the software
 
delivery
process;
simplifying
 
business
 
processes
 
and products
 
to reduce
 
IT
complexity;
exerting
 
clear
 
control
 
over demands
 
on IT through
 
a company-
wide prioritization process.
By reducing
 
costs,
 
we are
evolving
 
towards
 
pure, future-proof
 
IT
infrastructure
. In the
 
future,
 
we will
 
further modernize
 
or
dismantle
 
our legacy
 
IT components
 
to enable
 
applications
 
to run
seamlessly across technologies.
Digital talents
 
will help
 
us to
 
be agile
 
and
 
truly
customer-centric
We offer
 
our employees
 
a wide
 
range
 
of
training
possibilities
 
to
improve
 
their
 
knowledge
 
and skills,
 
particularly
 
in the
 
digital
field.
 
On top
 
of continuous
 
training,
 
we offer
 
them the
 
chance
 
to
develop
 
their careers
 
and learn
 
new skills
that are used
 
within
the company.
 
We will
 
continue
 
to invest
 
in new
 
talent
 
by recruiting
from the domains
 
of the future.
In 2021,
 
we worked
 
on the
redesign
 
of our operating
 
model
,
harmonizing
 
the agile
 
ways
 
of working
 
across
 
the different
departments,
 
creating
 
new agile
 
roles and
 
updating
 
our
governance.
Read all
 
about
 
our digital
 
talents
 
and our
 
agile
 
operating
 
model
in the "People"
 
section.
One European
 
digital
 
ecosystem
Since June
 
2021, Proximus
 
has been
 
a board member
 
of
Gaia-X.
This European
 
project is
 
drafting
 
a proposal
 
for the next
generation
 
of data
 
infrastructure.
 
Its aim?
 
To lay
 
the foundations
 
for
an open
 
and transparent
 
digital
 
ecosystem
. This
membership
 
puts us
 
at the
 
forefront
 
for the
 
provision
 
of innovative
 
digital
 
products
 
and services,
 
together
 
with other
 
European
stakeholders from a
 
variety of industries
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Grow
 
profitably
through
 
partners
and ecosystems
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Integrated annual report
 
2021
I
44
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Grow
 
profitably
through partners
and ecosystems
Our #inspire2022 strategy is a growth plan in which we
monetize our investments
 
in our core business
 
and explore
new paths for growth through partnerships and local
ecosystems. But we also want this growth to be sustainable,
responsible and open to
 
the outside world.
By capitalizing on our brands, customer base, networks and
services we aim to return to profitable growth by
 
2022 and
our growth
 
will accelerate
 
as from 2023.
Underpinning our strategy are our strong and well-
established brands:
 
Proximus, Scarlet,
 
Mobile Vikings and
Proximus Enterprise.
Beyond our brands, our network leadership thanks to our
strong investments in
 
fiber and 5G is
 
gradually fueling the
growth of our customer base. We aim to reach 2.1 million
consumer internet lines
 
by the end of 2022.
By capitalizing on our
brands, customer base,
networks and
 
services we
will return to profitable
growth.
We pursue growth by developing strong local partnerships
that allow us to target new business opportunities. Aside
from our local
 
Belgian partners, we also work with global
partners. They allow us to incorporate their technology into
the products and solutions that we bring to market.
Through our
 
digital platforms,
 
MyProximus and
 
Pickx, we are
in contact with a huge number of customers every day. It’s a
unique opportunity to develop and market new value-added
services for them. This boosts the usage of our apps and our
ambition is to have more than 3 million active monthly apps
users by the end of 2022.
For our enterprise customers, we are combining our state-of-
the-art fixed and
 
mobile networks
 
with next-
 
generation ICT
services and our expertise, to offer our customers tools and
support to guide them through their digital transformation.
Growth also
 
comes from
 
our open
 
wholesale strategy and the
development of our international activities through BICS and
TeleSign.
By the end of
 
2022, we aim to
 
generate more than 100
million in revenue from
 
new non-telco
domains with amongst others, solutions such as My e-
Press, Banx, Beats,
 
Doktr, eEducation and
 
IoT
solutions as well
 
as through customer
 
partnerships.
Material
 
topics
 
addressed
 
in this
 
strategic
 
pillar:
Delivering
 
customer
 
promises
Customer
 
value
 
for money
Supporting
 
small and
 
medium
 
business
 
development
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Integrated annual report
 
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Integrated annual report
 
2021
I
46
Growth
 
and
 
innovation
 
through
partnerships and
 
ecosystems
Working
 
together
 
is what
 
makes
 
our Belgian
 
economic
ecosystem thrive. At Proximus, we believe that
partnerships
 
are
crucial
 
to growth
 
and innovation
.
They are
 
also a
 
means to
 
generate
more value
. Also,
 
by
working together
 
we can have
 
a positive impact
 
on the
environment and the
 
society
at large.
With our partners
 
and customers,
 
we create sound
ecosystems
 
and develop
 
innovative
 
solutions.
 
To offer
better experiences
to our
 
customers
 
in their day-
to-day life,
 
to
better guide
 
companies
in their digital
transformation
 
and to
 
help tackle
 
societal
 
challenges.
Partnerships
 
drive our
 
open networks
 
so they
 
can become
 
an
accelerator for growth
 
and innovation.
Joint ventures
 
with
EQT Infrastructure
 
& Eurofiber
to
accelerate our fiber
 
roll out.
Deployment
 
of the
 
first 25
 
Gbps connection
 
on a live
 
network
with
Nokia
.
Partnerships
 
help us
 
bring relevant
 
content
 
and services
 
to our
customers.
Launch of
 
Banx with
Belfius Bank
.
Launch
 
of Doktr
 
with
Doktor.se
.
Creation
 
of the
 
aug•e platform
 
with
BESIX and
 
i.Leco.
Strengthening
 
our cloud
 
portfolio
 
with
HCL Technologies.
Partnerships
 
help us
 
reach our
 
ambitions
 
for a green
 
and
 
digital
society.
Development
 
of MyFootprint,
 
with
CO
2
logic.
Partnership
 
with
Signpost
in the
 
field of
 
eEducation.
Partner
 
of the
DigitAll
alliance
 
to close
 
the digital
 
divide.
 
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Proximus Group I
Integrated annual report
 
2021
I
47
Staying relevant
 
in the
 
daily digital
life
 
of
 
consumers
 
and
 
small
 
businesses
If we
 
want
 
to remain
 
relevant
 
as a consumer
 
brand,
 
we need
 
to
reinforce
 
our customers’
 
trust
by offering
 
them perfect
connectivity
 
and the
 
products
 
and solutions
 
that respond
 
to their
needs and expectations.
We aim
 
to accomplish
 
this
 
by offering
 
solutions
 
that become
 
key
elements
 
for our
 
customers
 
as they
 
perform
 
the tasks
 
and
activities
 
that make
 
up their
 
days.
 
That's why
 
we have
 
invested
 
in
Flex
, which
 
allows
 
our customers
 
to tailor
 
their telecom
 
services
 
to
their own personal
 
needs.
Additionally,
 
our digital
 
ecosystems
Pickx and
 
MyProximus
aim to
securely
 
facilitate
 
access
 
to a
 
series
 
of services.
 
We also
 
launched
several
 
new digital
 
services
 
and apps
 
in 2021;
 
we expect
 
they will
become
 
better
 
known,
 
more
 
popular
 
and more
 
frequently
 
and
broadly used in
 
the near future.
Staying
 
relevant
 
to our
 
customers
 
also means
 
offering
the best
 
possible
services
 
at the
 
best possible
 
price
. Our complementary
 
brand
 
portfolio
allows
 
us to
 
address
 
value
 
seekers
 
as well
 
as price-
 
conscious
consumers:
Proximus offers the best quality and service with a
comprehensive
 
range
 
for residential
 
customers
 
and companies.
Through regular
 
surveys we
 
monitor customer’s
 
price/ value
perception.
 
At the
 
end of
 
2021,
 
80% of
 
our residential
customers
 
are satisfied
 
about the
 
price/quality
 
ratio of their
Proximus pack,
 
compared with
 
76% at the
 
end of 2020.
Scarlet's
 
offer
 
is aimed
 
at customers
 
looking
 
for the
 
best prices
or for ways
 
to consume more
 
consciously.
Mobile
 
Vikings
 
has a
 
mobile
 
offer
 
that appeals
 
to young
 
people
who make intensive
 
use of mobile
 
data.
Flex
 
packs:
 
tailored
 
to
 
specific
 
needs
Flex
was launched
 
in 2020
 
as a series
 
of packs
 
that allow
 
families
 
to
assemble
 
a subscription
 
based on
 
the
needs of
 
each individual
family
 
member
. The
 
range
 
of options
 
includes
 
entertainment,
delivered
 
by Pickx,
 
and My
 
e-Press,
 
which gives
 
users
 
access
 
to
the latest
 
news as
 
delivered
 
by partners
 
Het Laatste
 
Nieuws
 
and
Le Soir.
We enhanced
 
Flex in
 
2021 by
 
doubling
 
the download
 
speed on
fiber
and offering
 
a fiber
 
option
 
at 1Gbps
 
download
 
speed.
 
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Integrated annual report
 
2021
I
48
 
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Proximus Group I
Integrated annual report
 
2021
I
49
With
small businesses
 
and the
 
self-employed
in mind,
 
we offer
the
Business
 
Flex
modular
 
pack with
 
the Prime
 
service included.
Prime
 
is a
 
simple,
 
personalized
 
service
 
that is
 
always
 
accessible
 
via
the MyProximus
 
app and
 
which enables
 
the customer
 
to receive
direct
 
online
 
support
 
or expert
 
assistance
through an
 
intuitive
interface
 
for any
 
questions
 
regarding
 
their
 
products
 
and services,
invoice,
 
or for
 
technical
 
problems.
 
A dedicated
 
expert
 
follows
 
up their
request
 
from A
 
to Z
 
and the
 
customer
 
stays
 
op to
 
date on
 
the
 
status
of his request
 
via MyProximus.
When
 
composing
 
their Business
 
Flex packs,
 
customers
 
can opt
 
for
services
 
that help
 
them
digitize
 
their business
such as
 
improving
their online
 
visibility,
 
launching
 
an online
 
webshop
 
or start
 
their
advertising campaigns on
 
Google.
Additionally,
 
in 2021,
 
together
 
with our
 
partners
 
Google
 
(Digital
Atelier),
 
Nedworks,
 
UNIZO,
 
Syntra
 
and IFAPME,
 
we launched
webinars
 
discussing
 
digital
 
topics
 
relevant
 
to small
 
business
 
owners.
In 2021,
 
Flex and
 
Business Flex
 
have won
 
over many
 
new
customers,
 
validating
 
our efforts
 
to respond
 
to changing
 
customer
needs. At
 
the end of
 
2021, we
 
had
832,000 Flex
 
and Business
 
Flex
subscriptions
, comparing
 
with 317,000
 
subscriptions
 
in 2020.
Becoming
 
a day-to-day
 
digital
 
companion
 
to our
 
customers
We are
 
expanding
 
our presence
 
in the
 
daily digital
 
lives of
consumers,
 
taking
 
steps
 
to boost
 
the adoption
 
and usage
 
of our
digital
 
platforms
 
Pickx
 
and MyProximus,
 
and to
 
offer
 
easy access
to essential
 
services
 
such as
 
the eHealth
 
platform
 
Doktr and
 
the
financial app Banx.
Pickx: Entertainment anytime and anywhere
In 2021,
 
we continued
 
to
develop
 
our Pickx
 
platforms
, both on
the TV Box
 
as well as
 
on mobile devices.
Launch of
Pickx+
in April 2021,
 
an exclusive channel
 
for all
Proximus
 
TV customers
 
bringing
 
sports,
 
fiction
 
documentaries
and live events.
Since September
 
2021, all
 
customers
 
have been
 
able to
subscribe
 
to
Pickx+
 
as a
 
separate
 
TV option
accessible
 
via
their TVs, pickx.be
 
and the Pickx
 
app.
We launched
Pickx Mix
in November. It
 
transforms our TV
portfolio
 
to make
 
it simpler.
 
Pickx Mix
 
incorporates
 
a mixture
 
of
series,
 
films,
 
documentaries,
 
kids’ programming
 
and music
 
for
customers
 
to watch
 
and listen
 
to as
 
they please,
 
either
 
through
 
the
updated catalogue
 
or through
 
the thematic
 
channels.
Thanks to the extension
 
of the
UEFA Champions League
broadcasting
 
rights,
 
Proximus
 
is the only
 
operator in
 
Belgium to
broadcast
 
all of
 
the top
 
European
 
football
 
matches until
 
2024.
Customers
 
owning
 
a V7
 
TV Box
 
can now
 
access
new streaming
services
such as Amazon
 
Prime and
 
Streamz,
 
directly from
within their Pickx interface.
At the end of 2021, we reached
1.2 million active users
on our
Pickx app
 
& web platforms,
 
compared
 
to 1.1 million
 
active users
 
in
2020.
Strong
 
uptake
 
of fiber
 
subscriptions
With our
 
fiber
 
roll-out
 
ongoing
 
in 45
 
cities and
 
municipalities,
 
an increasing
 
part of
 
the Belgian
 
population
 
has access
 
to
our fiber
 
offers. By
 
end 2021,
 
in the consumer
 
segment,
 
we counted
 
123,000 subscriptions
 
on one of our
 
fiber offers
(vs 65,000 subscriptions
 
in 2020).
 
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Proximus Group I
Integrated annual report
 
2021
I
50
MyProximus: gateway
 
to digital
 
life services
For long,
 
the MyProximus
 
app has
 
been the
 
preferred
 
place
 
of our
customers
 
to monitor
 
their usage
 
and to
 
pay their
 
Proximus
 
bills,
but now
 
we are
 
leveraging
 
our platform
 
to bring
 
new and
exciting
 
functions
 
in collaboration
 
with
 
partners.
 
The ambition
 
is to
become
 
a relevant
 
app
in the
 
daily
 
life of
 
our customers.
 
Some new
 
services
 
and features
 
launched
 
in 2021:
Insight
 
into your
 
ecological
 
footprint
 
with
 
MyFootprint
With MyFootprint,
 
an app
 
developed
 
with our
 
partner
 
CO
2
logic, the
customer
 
gains
 
insight
 
into their
 
ecological
 
footprint
 
by means
 
of a
few predefined
 
questions.
 
This way
 
they can
 
see the direct
impact
of their
 
behavior
 
and take
 
action
to reduce
 
any negative
 
effect
they have
 
on the
 
environment.
 
The app
 
also keeps
 
them informed
of climate-aware
 
actions
 
being
 
taken
 
by Proximus.
Energy
 
monitoring
 
with EnergieID
EnergieID
 
helps
 
customers
 
who want
 
to reduce
 
their
environmental
 
footprint
 
by providing
 
them with
insights
 
and
recommendations
related
 
to their
 
energy
 
consumption.
Smart Wi-Fi
 
at home
In 2021
 
we enhanced
 
the possibilities
 
in MyProximus
 
to manage
 
the
Wi-Fi experience
 
at home.
 
For example,
 
customers
 
can now
 
see a
complete
 
list of
connected
 
devices
, control
 
the Wi-Fi
 
access
 
of their
children’s
 
smartphones
, get guidance
 
to find the
 
perfect spot
 
for a
Wi-Fi booster
and check
 
the Wi-Fi
quality
in different
 
rooms
 
and
receive
 
recommendations
 
to improve
 
it.
At the
 
end of
 
2021,
1.7 million
 
customers
were actively
 
using
MyProximus,
 
compared
 
to 1.6
 
million
 
active
 
users
 
at the
 
end of
2020.
Financial services with Banx and Beats
Working with Belfius Bank, we launched two services in 2021:
Banx, the digital app for sustainable
 
banking, and Beats, which
combines
 
banking
 
and insurance
 
with a
 
telecom
 
package.
Banx
Launched
 
in October
 
2021,
 
Banx is
 
a fully
 
digital,
 
Belgian
 
banking
experience.
 
Imagined
 
by Proximus
 
and developed
 
by Belfius,
 
Banx
empowers
 
its customers
 
to
make more
 
sustainable
 
choices
.
It is not
 
easy for
 
consumers
 
to gain
 
a complete
 
picture
 
of the
negative
 
environmental
 
effect of
 
shipping
 
items from
 
one side
 
of
the world
 
to the
 
other.
 
Banx gives
 
insight into
 
this, using
 
a
dashboard
 
that
shows users
 
the ecological
 
footprint
 
of a
purchase
. For
 
the development
 
of this
 
dashboard,
 
Proximus
partnered with
 
the Swedish company
Doconomy
.
Banx
 
is a
 
Belgian
 
initiative
 
with strong
local
 
anchoring
. Today,
several
 
local
 
partners
 
such
 
as Natuurpunt,
 
Natagora,
 
CO
2
logic and
Bio-Planet
 
are presented
 
in the
 
Banx app,
 
in order
 
to bring
environmentally
 
conscious
 
consumers
 
and local
 
partners
together.
Beats
Beats
 
is an
 
exclusive,
 
competitively
 
priced
monthly
 
plan
that
bundles
 
banking
 
(accounts,
 
cards and
 
even insurances)
 
and
telecommunications
 
(including
 
subscriptions
 
for internet,
 
telephony,
TV and mobile
 
services).
Belfius
 
exclusively
 
offers
 
this
 
new service
 
to the
 
Belgian
 
market
 
via its
own sales
 
channels.
Belfius
 
customers
will be
 
able to
 
combine
 
their
banking
 
with dedicated
 
Proximus
 
mobile
 
subscriptions
 
and packs.
 
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Proximus Group I
Integrated annual report
 
2021
I
51
eHealth: Doktr to
 
consult a doctor,
 
anytime, anywhere
Launched
 
in May
 
2021 with
 
partner
 
Doktor.se,
 
Doktr is
 
another step
in Proximus’s
 
ambition
 
to move
 
beyond
 
typical
 
connectivity
 
services
to digital
 
solutions
 
that are
 
essential
 
in people's
 
daily
 
lives.
 
With
Doktr,
 
set-up
 
as an
open eco-system
, Proximus
 
wants to
stimulate
 
innovation
 
and digitization
 
in the
 
healthcare
 
domain,
 
for
 
the
benefit of doctors
 
and patients.
Doktr is
 
a secure
 
and convenient
 
application
 
to get
fast and
personal
 
medical
 
advice
from a
 
recognized
 
Belgian
 
doctor
through
 
a
video consultation
. The
 
app uses
Itsme
for secure
login
 
and incorporates
 
a strong
 
data
 
privacy
 
policy.
At the end
 
of 2021,
 
more than
 
100,000
 
people
 
downloaded
 
the
Doktr app
 
and the
 
service
 
has 18,700
 
registered
 
users. By
 
end
2021, the
 
service
 
had achieved
 
an impressive
94% patient-
satisfaction rate
.
In the
 
future,
 
we will
 
continue
 
to expand
 
the app
 
with specific
features
 
that
 
will open
 
even
 
more
 
possibilities.
 
For example,
 
as
from beginning
 
of 2022,
 
doctors
 
will be
 
able to
 
hold video
consultations
 
with their
 
own patients
 
and patients
 
will have
 
the
opportunity
 
to connect
 
with their
 
own doctor
 
through
 
the
platform.
Growing towards
 
a local
 
digital ecosystem
In our
 
ambition
 
to be relevant
 
in the
 
daily digital
 
lives of
 
Belgians,
 
we
are expanding
 
the number
 
of services
 
that we
 
offer
 
through
 
mobile
applications.
 
For this we
 
not only
 
build on our
own services
, but
we also work
 
with
strong local
 
partners
. By doing
 
so we
 
are laying
the
foundation
 
for a local
 
ecosystem
that brings
 
a better
 
digital
experience
 
to end
 
users and
 
that supports
 
local companies
 
to
reach a relevant
 
audience.
In 2021,
 
for example
 
we added
 
new digital
 
services
 
in MyProximus,
both from
 
ourselves
 
(e.g. Smart
 
Wi-Fi),
 
but also
 
from partners
 
(e.g.
EnergieID)
 
and we
 
have invested
 
in new
 
digital
 
apps such
 
as Banx
and Doktr.
With this
 
approach,
 
we see
 
ourselves
 
appearing
 
on the home
screen of every
 
Belgian smartphone.
A national
 
advertising
 
ecosystem
 
with local
 
partners
Ads &
 
Data,
 
a new
 
national
 
advertising
 
management
 
agency
 
created
 
by Proximus/Skynet,
 
Pebble
 
Media,
 
Telenet/
 
SBS
and Mediahuis,
 
started
 
in April
 
2021.
 
With a
 
whole range
 
of
strong local
 
and international
 
media brands
and a wealth
of
qualitative
 
data
, Ads
 
& Data
 
helps
 
advertisers
 
bringing
 
their
 
message
 
to the
 
right people
 
at the
 
right time.
 
The
initiative
 
aims
 
to empower
 
the Belgian
 
media
 
industry
 
by keeping
 
advertising
 
expenditure
 
in Belgium.
 
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2021
I
52
Be the
 
trusted
 
partner
 
for
 
companies
in their
 
digital transformation
For our
 
enterprise
 
customers,
 
Proximus
 
wants to
 
strengthen
 
its
position
 
as the
trusted
 
partner
 
in digitizing
 
their business
,
offering
 
converged
 
telecom
 
and ICT
 
solutions.
 
Such partnerships
are much
 
needed,
 
with
 
technology
 
evolving
 
faster
 
than ever
 
and
COVID-19
 
putting
 
digital
 
transformation
 
high on
 
companies’
agendas.
 
We are
 
well-positioned
 
to guide
 
customers
 
in their
 
digital
transformations
 
as lines
 
between
 
telecom
 
and IT
 
are blurring:
networks
 
are increasingly
 
dependent
 
on software,
 
and more
 
and
more
 
communication
 
takes
 
place
 
digitally.
Companies
 
require
convergent
 
ICT solutions
that combine
telecom
 
and IT
 
assets.
 
We invest
 
heavily
 
in both
 
our gigabit
networks
 
(5G/Fiber)
 
and in
 
further
 
strengthening
 
our IT
capabilities
 
in areas
 
like cybersecurity,
 
the cloud,
 
digital
workplaces,
 
big data
 
and the
 
IoT (Internet
 
of Things).
We drive
 
technological
 
leadership
 
and innovation
 
through
strategic
 
partnerships
with hyperscalers
 
like Microsoft
 
and
Google,
 
leveraging
 
their
 
technology
 
such as
 
Google
 
Cloud,
Microsoft Azure or
 
Microsoft Teams.
Global
 
operational
 
partnerships
 
complement
 
our ICT
 
capabilities
 
to
accelerate
 
our growth
 
in specific
 
domains
 
such as
 
Cloud with
partners like HCL
 
Technologies.
Also, our
ecosystem
 
of ICT
 
affiliates
provides
 
us with
 
a unique
combination
 
of assets
 
and unique
 
skills
 
to create
 
solutions
and applications
 
that
 
accelerate
 
the digital
 
transformation
 
of
companies, industries
 
and end-users.
Together
 
with
 
our customers,
 
we are
co-creating
 
5G, IoT
 
and
edge computing
 
use cases
, leveraging
 
our 5G innovation
platform.
 
This is
 
vital
 
to our
 
ambition
 
to take
 
the leadership
position
 
in domains
 
like these
 
where
 
there
 
is significant
 
potential
for long-term
 
growth.
 
We aspire
 
to
venture
 
into new
 
domains
,
like smart
 
building
 
and smart
 
energy,
 
by setting
 
up local
partnerships
 
and ecosystems,
 
as we have
 
accomplished
 
with
aug•e,
 
the platform
 
for smart
 
building
 
solutions,
 
developed
 
in
partnership with BESIX
 
and i.Leco.
As a partner of
 
choice for companies
 
in their digital
 
transformation,
we are
 
contributing
 
to building
 
a robust
 
and sustainable digital
economy.
 
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Proximus Group I
Integrated annual report
 
2021
I
53
We help
 
customers
 
throughout
 
their
 
customer
 
journeys
The number
 
of companies
 
investing
 
in new
 
technologies
 
such
 
as
the cloud,
 
security,
 
IoT or
 
digital
 
workplace
 
solutions
 
is
growing.
 
However,
 
they
 
do not
 
always
 
have the
 
right expertise
 
or
experience
 
in-house
 
to implement
 
these
 
technologies.
That’s
 
why we
 
want to
 
be
more than
 
a technology
 
provider
to
our enterprise
 
customers.
 
We are
 
doubling
 
down on
 
our
professional
 
services,
 
helping
 
our customers
 
throughout
 
their
customer
 
journeys.
 
We offer
 
them
 
strategic
 
and technical
consulting,
 
help
 
them to
 
implement
 
solutions,
 
and unburden
them by delivering
 
managed services.
More specifically
 
for Cloud
 
solutions,
 
our specialists
 
will help
 
migrate
applications
 
and data
 
to the
 
new cloud
 
architecture
 
and
 
assist
companies
 
with the
 
daily
 
operation,
 
maintenance
 
and support
 
of
their IT
 
needs,
 
such as
 
cloud monitoring
 
or security
 
management.
We help
 
enterprises
 
with
 
their
 
digital
 
transformation
Digital workplace solutions
The COVID-19
 
pandemic
 
has brought
 
on a new,
 
hybrid
 
way of
working.
 
For businesses,
 
this has
 
posed
 
many challenges
 
that go
beyond
 
IT needs.
 
Through
 
our
Workplace-as-a-service
 
(WPaaS)
offering,
 
we help
 
them
 
to make
 
it possible
 
for their
 
employees
to work
 
anywhere,
 
on any
 
device,
 
alone or
 
together.
 
Proximus
provides
 
everything
 
employees
 
need to
 
achieve
 
their goals.
 
This
includes
 
computers,
 
mobile
 
devices,
 
equipment
 
for meeting
rooms
 
or ergonomic
 
home
 
offices,
 
as well
 
as the
 
software
 
for
smooth
 
collaboration
 
and communication.
 
We also
 
manage
the lifecycle
 
of all
 
devices
 
and take
 
care of
 
software
 
licenses,
 
the
quality
 
of internet
 
connections
 
and security,
 
both at
 
home and
 
in
the office.
 
In the
 
event
 
of problems,
 
we provide
 
remote
 
and on-
site support.
Moreover,
 
for SMEs,
 
hybrid
 
working
 
is a core
 
element
 
of their
 
digital
transformation.
 
At the
 
end of
 
2021,
 
80,000
 
SMEs were
 
using
 
a
digital
 
workplace
 
solution
 
through
 
our affiliate
 
ClearMedia
compared with
 
53,000 in 2020,
 
an increase of
 
51%.
Find out
 
how five
 
SMEs optimized
 
their digital
 
workspace
 
with
Proximus.
Security
As companies
 
move
 
forward
 
with
 
their
 
digital
 
transformation,
 
the
importance
 
of securing
 
data and
 
applications
 
is growing.
Together
 
with our
 
customers
we develop
 
action plans
to prioritize,
map risks
 
in their
 
IT environment,
 
allocate
 
resources,
 
discover
threats,
 
investigate
 
incidents,
 
automate
 
actions
 
and much
 
more.
 
For
each security
 
aspect
 
we offer
 
a
complete
 
portfolio
 
of solutions
.
Isabel
 
Group
 
stays
 
one step
 
ahead
 
of cybercrime
Isabel
 
Group
ensures
 
a secure
 
and reliable
 
exchange
of digital
 
documents,
 
payments
 
and identities
 
for
organizations,
 
accountants
 
and banks.
 
Our affiliate
 
Davinsi
Labs is
 
Isabel’s
 
permanent
 
partner
 
in security
 
monitoring
and testing.
Degroof
 
Petercam
 
successfully
 
upgrades
 
its digital
 
infrastructure
Thanks
 
to Proximus
 
and its
 
affiliate
 
Telindus
Luxembourg,
 
Degroof
 
Petercam
 
switched
 
from
 
old,
 
energy-
consuming
 
servers
 
to ultra-modern,
 
eco-friendly
 
external
servers
 
and can count
 
on our support
 
teams 24/7.
 
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Proximus Group I
Integrated annual report
 
2021
I
54
Cloud solutions
Our cloud
 
solutions
 
and expertise
 
allow
 
us to
 
help our
 
customers
 
to
digitize
 
their
 
business.
 
We facilitate
 
a phased
 
migration
 
of legacy
workloads
 
running
from on-premises
 
solutions
 
to hyperscalers
,
all while continuing
 
to perform
 
in a
 
hybrid context.
To further
 
accelerate
 
the growth
 
of our
 
cloud
 
portfolio,
 
in
September
 
2021,
 
we signed
 
a
partnership
 
with HCL
Technologies
, a global
 
technology
 
company.
 
HCL
Technologies
 
now manages
 
and services
 
our private
 
cloud
infrastructure
 
and is working
 
with us
 
to become
 
a provider
 
of
hybrid
 
cloud
 
solutions
 
for our
 
enterprise
 
customers.
Mid-2021,
 
we also
 
launched
CloudFusion
. an orchestration
platform
 
that
 
helps
 
companies
 
to transition
 
onsite
 
applications
 
to
any public
 
cloud
 
and actively
 
manage
 
their
 
hybrid
 
environment.
For small
 
and medium-sized
 
enterprises
 
we offer
SME in the
Cloud
through
 
our affiliate
 
ClearMedia.
 
It entails
 
all solutions
 
an
SME needs
 
to access
 
data and
 
applications
 
anywhere,
 
anytime,
 
in
an efficient and
 
secure way.
Software-defined
 
networks
New ways
 
of working,
 
connected
 
objects
 
and cloud
 
adoption
 
have
a tremendous
 
impact
 
on the
 
security,
 
agility,
 
performance
 
and
reliability
 
requirements
 
of modern
 
ICT infrastructure.
 
A traditional,
static
 
network,
 
however,
 
offers
 
very little
 
information
 
about what
 
is
happening
 
on the
 
network.
 
Installing
 
a completely
new software
layer (SD-WAN)
ensures
 
that the
 
end-to-end
 
infrastructure
remains
 
manageable
 
and secure.
 
Via SD-WAN,
 
the customer
network
 
can easily
 
and securely
 
connect
 
to clouds,
 
whether public,
private or hybrid.
Through
 
our broad
 
vendor
 
portfolio,
 
such as
 
Fortinet
 
or Cisco
Meraki, we cover
 
all customer
 
segment needs.
In the
 
future,
 
to facilitate
 
the uptake
 
of software-defined
technologies,
 
we will
 
accelerate
 
the migration
 
to SD-WAN,
 
making
sure
 
to bring
 
integrated
 
value
 
propositions
 
to new
 
and existing
customers.
Notaries
 
working
 
in
 
the
 
cloud
A specific
version of
 
our "SME
 
in the Cloud",
 
aimed at notaries,
 
was
launched
 
in 2021
 
This solution
 
offers
 
more
 
advanced
security
 
and is directly
 
integrated
 
into the
 
BNN, the
Beveiligd
 
Notarieel
 
Netwerk
 
or Secured
 
Notary
 
Network –
also a Proximus
 
solution.
Armonea
 
chooses
 
SD-WAN
Armonea
 
opted
 
for an
 
extra
 
SD-WAN
 
software
 
layer. As
 
a
result,
 
it can
 
now quickly
 
roll out
 
new applications
 
in the
group's
 
care centers,
 
service
 
flats
 
and residences.
 
All data
traffic
 
is managed
 
in a
 
smart,
 
simple
 
and secure
 
way.
 
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Proximus Group I
Integrated annual report
 
2021
I
55
Next-generation mobile networks
When it comes
 
to the implementation
 
of 5G, Proximus
 
is
determined
 
to maintain
 
its leadership
 
position.
 
Besides significantly
improving
 
network
 
connection,
 
our efforts
 
in the
 
field of
 
5G extend
to delivering
 
use cases
 
to our
 
customers
 
through
 
our
5G innovation
platform
.
In 2021,
 
we saw
 
an increasing
 
interest
 
in our
5G mobile
 
private
networks
(MPN). Although
 
5G is still
 
in its early
 
stages, at
 
the end
of 2021
 
five companies
 
had already
 
implemented
 
a 5G MPN.
Additionally,
 
more
 
than
 
100
 
customers
 
across
 
very
 
different
 
sectors
including
 
manufacturing,
 
logistics,
 
public
 
safety
 
and media,
 
were
considering
 
deploying
 
a dedicated
 
5G network.
Analytics, the Internet of Things
 
and other applications
With
 
our data-driven
 
solutions,
 
we help
 
our customers
 
to innovate
 
by
connecting
 
applications
 
and devices,
 
aggregating
 
different
data streams,
 
providing
 
insights
 
into their
 
data, or
 
automating
processes.
 
Through
 
our services,
 
such as
 
our Internet
 
of Things
 
(IoT)
solutions,
 
Proximus
 
Analytics
 
and APIs,
 
enterprises
 
can collect
 
data
that
 
allows
 
them
 
to take
 
objective
 
choices
 
to
improve
 
and
automate
 
their processes
. Data
 
analytics
 
and IoT are
 
also proving
their
value
 
within
 
our society
in numerous
 
ways such
 
as solutions
to optimize
 
energy
 
consumption,
 
for sustainable
 
weed control
 
in the
agricultural
 
sector
 
or for
 
a more
 
efficient
 
healthcare.
A wide
 
range of
 
industries
 
currently
 
uses our IoT
 
and data
 
analytics
solutions
 
to improve
 
and automate
 
processes
 
and to
 
develop
innovative
 
solutions.
 
In 2021,
3.3 million
 
objects
were connected
 
to
our IoT infrastructure.
First modular packs for small
 
and medium-sized enterprises
Besides
 
offering
 
tailored
 
solutions
 
for larger
 
companies,
 
we also
have
standardized
 
yet modular
ICT offerings
 
or packs
 
for small
and medium-sized
 
companies.
 
These include
 
our Enterprise
 
Pack
Together or our
 
SME in the
 
Cloud offering.
In September
 
2021,
 
we launched
Enterprise
 
Pack Together
,
offering
 
a broad
 
mix of
 
telecom
 
(both
 
fixed
 
and mobile)
 
and ICT
solutions
 
and support.
 
Customers
 
put together
 
their own
 
pack,
meaning
 
they
 
only
 
have
 
to pay
 
for the
 
services
 
they actually
 
use.
We secured
 
our first
 
customers
 
for this
 
new pack
 
in 2021;
 
yet the
real take-off is
 
planned for 2022.
Schréder
 
Schréder
together
 
with our
 
affiliate
 
Codit,
 
developed
 
a smart
public
 
lighting
 
solution,
 
allowing
 
cities to save
 
energy
and reduce
 
light
 
pollution
 
without
 
compromising
safety.
ENGIE
Our affiliate
 
Codit helped
 
ENGIE
 
to put
 
Microsoft
Azure
 
IoT solution
 
in place
 
to maximize
 
real-time
control
 
of its
 
renewable
 
energy
 
production
 
sites,
including wind
 
turbines and
 
solar panels.
 
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Proximus Group I
Integrated annual report
 
2021
I
56
Developing smart solutions in specific
 
domains
With our
 
smart end-to-end
 
ICT solutions, we
 
do
 
more
 
than just
tailor
 
our offerings
 
to different
 
segments.
 
We strongly
 
believe
technology
 
can act
 
as a force
 
for good.
 
That’s
 
why we
 
continuously
leverage
 
our technology
 
to
address
 
critical
 
societal
 
and
environmental
 
challenges
, aiming
 
to improve
 
the lives
 
of people
everywhere while
 
delivering true
 
value.
5G innovation
 
platform
In 2021,
 
Proximus
 
made
 
its 5G
 
innovation
 
platform
 
available
 
to its
enterprise
 
customers.
 
It allows
 
them to
explore
 
the potential
 
of
5G
for their
 
specific
 
businesses
 
in a secure,
 
innovative
 
and cost-
effective
 
way through
 
specific
 
use cases.
 
In doing
 
so, we
eHealth
Proximus
 
has strengthened
 
its strategic
 
focus on
 
the healthcare
sector.
 
Through
 
connectivity,
 
ICT and
 
security
 
solutions
 
and
services,
 
our goal
 
is to become
 
a major
 
partner in
 
the
digital
transformation
 
and innovation
 
of the medical
 
industry
.
enable
open collaboration
 
with all
 
potential
 
partners
: innovative
start-ups,
 
established
 
companies
 
in healthcare,
 
the agricultural
sector,
 
construction,
 
retail
 
and many
 
more ...
 
Being
 
able to
 
test their
5G projects
 
live
 
is vital
 
for companies
 
before
 
they commit
 
to making
further
 
investments.
 
In 2021,
 
20 uses
 
cases were
 
tested on
 
the
platform.
In October
 
2021,
Wallonia’s
 
first
 
5G Lab
, designed
 
to allow
industry
 
players
 
to experiment
 
with 5G
 
applications
 
and share
their experiences,
 
was launched.
 
The 5G
 
Lab was
 
developed
 
by
the A6K
 
5G consortium,
 
made up
 
of industrialists
 
and research
centers under the
 
guidance of Proximus.
Supporting
 
healthcare
 
sector
 
during
 
COVID-19
Proximus installed and connected IT, IoT and
communication
 
infrastructure
 
in 41
 
fixed and
 
12 mobile
vaccination centers in
 
Wallonia
.
Cohezio
uses
 
Proximus
 
IoT solutions
 
to monitors
 
the
temperature
 
of
 
120
 
refrigerators
 
for
 
COVID-19
 
vaccines.
5G drone
 
application
 
enables
 
targeted
 
weed
 
control
In June 2021,
 
researchers
 
demonstrated
 
innovative
 
technology
 
for
more sustainable
weed control.
 
A fully automated
 
drone with
 
a
high-tech
 
camera
 
instantly
 
transmitted
 
field images
 
to the
 
cloud via
a Proximus
 
5G antenna.
 
Artificial
 
intelligence
 
(AI) decoded
 
the
images
 
in real
 
time so
 
that crops
 
and weeds
 
could be
 
distinguished
from
 
each
 
other.
 
This
 
resulted
 
in a
 
detailed
 
task map,
 
after
 
which
a self-positioning
 
tractor
 
with
 
an intelligent
 
sprayer
 
exclusively
treated
 
the indicated
 
weed
 
sites. Meanwhile,
 
initial
 
figures
 
indicate
that thanks
 
to the
 
application,
 
the use
 
of crop
 
protection
 
agents can
be reduced by up
 
to 80%.
 
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Proximus Group I
Integrated annual report
 
2021
I
57
Smart building and smart energy
 
Responding
 
to the
 
issue
 
of climate
 
change,
 
Proximus
 
offers
 
IoT
solutions
 
and data
 
analytics
 
to help
 
customers
 
make
smarter
 
use
of energy
and reduce
 
their carbon
 
footprints.
 
The energy
transition,
 
particularly
 
the contribution
 
of buildings
 
to a more
sustainable
 
world,
 
is at
 
the heart
 
of our
 
initiatives.
 
That is
 
why we
onboarded
new partners
(such
 
as MeetDistrict,
 
Mapwize and
 
Be-
Park)
 
that
 
enable
 
us to offer
 
our customers
 
a large
 
range of
 
smart
building solutions.
In September
 
2021,
 
Proximus
 
and its
 
long-standing
 
strategic
partner
BESIX
invested
 
in
i.Leco
, a technology
 
start-up
 
specializing
in building
 
energy management.
 
Together
 
they created
 
the
aug•e
platform
, which
 
connects
 
physical
 
buildings
 
to digital
 
applications
allowing
 
to
optimize
 
energy
 
consumption
 
and reduce
 
carbon
footprint
.
 
eEducation
Due to
 
the COVID-19
 
crisis,
 
our education
 
system
 
was seriously
disrupted
 
and the
 
need for
 
digital
 
tools to
 
enable
 
distance
 
learning
was enormous.
 
This
 
accelerated
 
Proximus'
 
eEducation
 
ambitions
and we
 
have set
 
the ambition
 
to provide
 
maximum
support to
schools,
 
teachers
 
and students
 
in their digitization
 
challenges
to
apply new ways
 
of learning.
To this
 
aim,
 
in April
 
2021, we
 
joined
 
forces
 
with
Signpost
, the
Belgian
 
market
 
leader
 
for ICT
 
solutions
 
in education.
 
Together
 
we
offer
Academic
 
Connect
, an integrated
 
solution,
 
from secure
Internet
 
access
 
and Wi-Fi,
 
through
 
hardware
 
and software,
 
to
digital content
 
and a professional
 
ICT helpdesk.
As high-quality
 
digital
 
education
 
depends
 
on good
 
connectivity
and robust
 
infrastructure,
 
Proximus
 
is aiming
 
to equip
 
as many
schools as
 
possible with
 
fiber. By
 
the end of
 
2021,
more than
80 schools
opted for
 
Academic
 
Connect,
 
of which 44 were
equipped with a
fiber
connection.
For the
 
transformation
 
of
our headquarters
in Brussels,
 
we will
also make
 
use of
 
smart building
 
solutions.
 
More information
 
on
this project page
 
xxx.
Smart mobility
Proximus
 
affiliate
Be-Mobile
specializes
 
in smart
 
solutions
 
for
sustainable mobility.
In November
 
2021,
 
the Flemish
 
government
 
approved
 
the contract
between
 
the Agency
 
for Roads
 
and Traffic
 
(AWV) and
Be-Mobile
 
to realize
 
and operate
Mobilidata
: a mobility
 
project
for safer,
 
smoother
 
and more
 
sustainable
 
traffic
 
in Flanders.
Going
 
forwards,
 
for the
 
enterprise
 
market
 
we intend
 
to take
 
full
advantage of our
 
growth opportunities
 
by:
investing
 
in our
 
professional
 
and managed
 
services;
accelerating
 
our leading
 
cloud strategy
 
and continuing
 
its roll-
out through our
 
partnership with
 
HCL Technologies;
continuing
 
to co-create
 
5G use
 
cases with
 
our customers
 
and
further boosting fiber
 
roll-out;
becoming
 
even more
 
digital-
 
and data-driven.
3D visualization
 
of construction
 
projects with
 
Mr
 
Watts
For B&R Bouwgroep
 
Hooyberghs, we partnered
 
with Mr Watts
around the 3D visualization
 
of building
 
projects
for the construction
 
sector.
 
This application
 
was
developed
 
within
 
the frame
 
of the
 
5G innovation
platform.
 
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2021
I
58
Act for
 
a
green
and
digital
 
society
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Integrated annual report
 
2021
I
57
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Act for
 
a
green
and
digital
 
society
Climate change has our full attention. There is no denying
global warming has become a reality that we have to deal
with immediately. To this end, the Paris Climate
Agreement initially acknowledged scientifically
 
based
targets aimed at
 
limiting global warming to well below
2°C.
Subsequently,
 
in October
 
2021, the
 
Intergovernmental Panel
on Climate Change warned that to avoid catastrophic impacts
from climate change, temperature rises would have to be
kept below 1.5°C. GHG emissions would need to be halved by
2030 and drop to zero by 2050. Proximus committed to
Science Based Targets initiative’s (SBTi) Business Ambition for
1.5°C and committed to net zero by 2040.
We embed green
sustainability in our
business decisions,
and use technology
to the
 
benefit of the
environment.
In terms of limiting our impact on the environment, we
have already achieved a lot. But there’s still work to
 
be
done. We
 
will accelerate
 
from fixing
 
core issues to playing
 
a
leading role in Belgium’s
 
green
transition. And
 
to achieve
 
this, we
 
are comprehensively
embedding green sustainability in all our business decisions,
and make sure we use technology and innovation to the
benefit of the environment.
Another important challenge we’re facing is bridging
society’s digital divide. In a world that is becoming
increasingly reliant on technology, there is a growing divide
between those who have access to technology and those
who don’t. Without information and communication
technologies such as the internet, computers and
smartphones, and the digital skills required to operate them,
people will inevitably be excluded from the digital economy.
It is important to note that the
 
acceleration of the
 
digitization
of society during the COVID-19 crisis has made the situation
even more acute.
Proximus is taking action to create a more inclusive digital
society. This involves establishing a trusting relationship; as
such, security and
 
privacy, especially in relation to customer
data, are a key priority to us. That’s why we are continuing to
invest in our people, systems and
 
customer solutions to
ensure they meet the highest security levels.
 
By instilling
digital trust and inclusion through education
 
and accessibility
to technology, we want to make the digital world
accessible to
 
everyone so
 
that everyone
 
can thrive.
Material topics
 
addressed in this
 
strategic pillar:
Human rights
Sustainable
 
infrastructure
Responsible supply
 
chain
Circular economy
Energy and CO
2
 
emissions
Digital access
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Integrated annual report
 
2021
I
58
 
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2021
I
59
Contributing to
 
a green
 
society
Proximus has
 
a dual role
 
to play in
 
terms of
 
climate impact.
On the
 
one hand
 
we act
 
and
reduce
 
our own
 
environmental
footprint
, and
 
on the
 
other hand
 
we
empower consumers,
businesses and organizations
with our technological
developments
 
to make
 
all our
 
lives
 
more sustainable
 
and better
 
for
the planet.
Act
 
upon
 
our
 
own
 
footprint
Setting ambitious goals
At Proximus,
 
we are
 
committed
 
to decreasing
 
our ecological
footprint.
 
This isn’t
 
new. But
 
our ambitions
 
reach further
 
than ever
before:
 
we will
take action
 
across
 
our entire
 
value chain
and will
continue the
transition towards
 
a circular economy
.
In 2021,
 
by joining
 
the European
 
Green Digital
 
Coalition,
 
we have
pledged
 
to reach
net-zero
 
emissions
across
 
all three
 
scopes
(below),
 
covering
 
our total
 
footprint,
by 2040
. Additionally,
 
we aim
to
become
 
a truly
 
circular
 
company,
 
achieve
 
zero waste
 
and
 
use
100% renewable energy
 
by 2030
.
100%
renewable
electricity
Fossil
 
fuel free
management
 
cars
100%
renewable
 
energy
Net Zero
Emissions
(in line
 
with SBTi
 
)
90% waste
recycled
Truly
 
circular
Zero
 
waste
(100%)
2019
>
2025
>
2030
>
2040
>
Carbon
emissions
Circularity
 
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Integrated annual report
 
2021
I
60
Status on our net
 
zero and truly circular
 
ambitions
Carbon emissions
Aside
 
from
 
achieving
 
concrete
 
goals,
 
in 2021
 
we have
 
carefully
examined
 
our carbon
 
emissions,
 
identifying
 
areas that
 
need
improvement.
Today, we are using
100% green
 
electricity.
Breakdown of Proximus
 
CO
2
 
footprint in 2021 (Scope
 
1 – 2 –
 
3)
Scope 1
Scope
 
2
Procurement
79%
Goods &
 
services
Upstream
 
transportation
and distribution
94% -
 
433 Ktons
Proximus'
indirect
 
emissions
in the value chain
433
 
KTons
Proximus’
 
operations
4%
Fuel &
 
energy (excl
 
1 & 2)
Waste
Business
 
travel
Employee
 
commuting
Customer
 
use of
 
products
17%
Leased
 
assets
Downstream
 
transportation
and distribution
Use of
 
sold products
End-of-Life
 
treatment
 
of sold
 
devices
Scopes 1
 
and 2:
 
Our direct
 
and indirect
 
emissions
Looking
 
at our
 
carbon
 
footprint,
 
we are
 
managing
 
our own
emissions
 
quite
 
effectively.
 
Since 2016,
 
we are
carbon neutral
 
for
the activities
 
that lie within
 
our direct control.
Albeit by
supporting
 
certified
 
Gold
 
Standard
 
climate
 
projects
 
that reduce
 
or
absorb emissions in
 
developing countries.
To date,
 
26.6 Ktons
 
of our
 
own emissions
 
remain
 
to be reduced
 
in
order
 
to reach
 
zero
 
by 2030.
 
As such,
 
we have
 
focused
 
on
electricity
 
sourcing
 
and electricity
 
consumption.
 
In 2019,
 
we made
the switch
 
to
100% renewable
 
electricity
. Additionally,
 
we are
working
 
on creating
 
a more
energy-efficient
 
network
by focusing
on our
 
technical
 
buildings,
 
mobile
 
network,
 
fixed access
 
network
and data
 
centers,
 
and have
 
invested
 
in more
 
sustainable
transportation
.
Scope 3:
 
Indirect emissions
 
resulting
 
from our value chain
 
Our indirect
 
emissions,
 
which
 
are highly
 
concentrated
 
within
 
our
procurement
 
activities,
 
are 16 times
 
the amount
 
generated
 
by our
own operations.
 
They account
 
for about
 
94% of
 
our indirect
emissions.
Of the
 
emissions
 
generated
 
by our
 
value
 
chain,
 
more than
 
half are
concentrated
 
among our
 
top 18 suppliers
and the other
 
half is
generated
 
by a long
 
tail of
 
over 4,000
 
vendors:
 
a combination
 
of
large
 
global
 
enterprises
 
and smaller,
 
local players
 
who often
 
lack the
resources
 
needed
 
to manage
 
their
 
carbon
 
footprints.
Reducing
 
these indirect
 
emissions
 
is
our main challenge
; it
requires
 
our suppliers
 
to commit
 
to reducing
 
their carbon
footprints
 
and engaging
 
more sustainable
 
supply
 
chains.
6% -
 
27 Ktons
Direct emissions
from
 
fossil
 
fuel
combustion
 
and
refrigerant
 
gases
0% -
 
0 Kton
459
 
KTons
Scope
 
3
 
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Integrated annual report
 
2021
I
61
2021 achievements
Transportation
In 2021, more
 
than 40% of the new
management cars
we
ordered
 
were electric
 
or hybrid.
 
In the
 
most recent
 
purchase,
 
at
the end of the year,
 
more than 70% of
 
the cars were electric
 
or
hybrid.
In June 2021,
 
Proximus teamed
 
up with companies like
Danone,
 
Delhaize,
 
Schoenen
 
Torfs
 
and Telenet
 
to come up
with an efficient
 
and
sustainable
 
way of delivering
 
parcels
to
consumers and stores.
 
Starting early in 2022,
 
we will
collectively
 
launch
 
a project
 
in which
 
cargo bikes
 
and electric
delivery
 
vans are
 
used for
 
deliveries
 
across Antwerp.
 
This will
complement
 
the deliveries
 
by cargo
 
bike we already
 
organize
for our stores
 
in Antwerp, Brussels,
 
Ghent and Liège.
Network
We have drastically
 
simplified our
 
network by
replacing
technical
 
buildings
with an innovative
 
concept of
 
compact
units, which
 
has so far
 
delivered
 
energy savings
 
of more than
23 GWh
 
or a
 
reduction
 
in CO
2
 
emissions
 
of 4.1 Ktons
 
per year.
We continued
 
to rapidly
phase out
 
old network
 
equipment
like
legacy
 
voice
 
switches.
 
This allows
 
us to
 
incorporate
 
new, more
energy-efficient technologies.
The accelerated
fiber roll-out
in 2021 allowed
 
us to
significantly
 
reduce the
 
number of
 
remaining
 
street cabinets
and to
 
make
 
them more
 
compact,
 
thus helping
 
to reduce
 
the
associated energy consumption.
Thanks to the shared
mobile access
 
network
with Orange
Belgium, we will
 
be able to dismantle
 
more than 30% of
 
our
mobile sites in
 
the coming years.
 
Once operational,
 
this will lead
to a
reduction
 
of approximately
 
20% of
 
our total
 
annual
energy consumption
, the
 
equivalent
 
of the
 
consumption
 
of
10,000 Belgian households.
In our
data centers
, we further
 
improved
 
the efficiency of
our power
 
consumption
 
and optimized
 
our server
 
fleet. By
improving
 
the efficiency
 
of air
 
handling
 
units, we
 
reached a
Power Usage
 
Efficiency (PUE)
 
of 1.49
 
at the
 
end of
 
2021. This
represents a 25%
 
decrease for the
 
last decade.
Energy
In December
 
2021, the
 
decision was
 
taken to work with
 
more
sustainable
 
electricity
 
sourcing
 
through
 
a local Power
 
Purchase
Agreement.
Buildings
For the
renovation of our
 
Brussels headquarters
, we
have selected
 
construction
 
companies
 
that adhere
 
to strict
sustainability
 
criteria.
 
The project
 
will contribute
 
to the
realization
 
of our bold
 
ambitions
 
for decarbonization
 
and fossil
fuel-free
 
buildings.
 
Through smart
 
energy monitoring,
 
our
energy use will be
 
more efficient.
Suppliers
At the
 
end of
 
2021,
 
74 suppliers
 
have signed
 
our
Manifesto
,
53 more
 
than in
 
2020. By
 
signing,
 
they have
 
committed
to working together
 
with Proximus
 
to reduce their carbon
footprints
 
and to
 
produce
 
more circular
 
products.
 
In total,
 
these
suppliers
 
represent
 
50% of our
 
annual expenditure,
 
including
expenditure relating
 
to our network
 
operations.
 
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Proximus Group I
Integrated annual report
 
2021
I
62
Circularity
Moving
 
towards
 
a circular
 
economy
With
 
the planet’s
 
natural
 
resources
 
gradually
 
running
 
out, the
 
linear
economic
 
system
 
of “take,
 
make,
 
waste” has
 
reached
 
its limits.
 
It is
time to
 
transform
 
the pattern
 
of consumption
 
and disposal
 
into a
sustainable
 
circle
 
of reuse
. At Proximus,
 
we are
 
dedicated
 
to
moving
 
towards
 
a circular
 
economy:
 
a concept
 
based
 
on the idea
 
of
no longer
 
depleting
 
raw materials
 
but reusing them
instead.
This
 
also
 
reduces
 
pollution
 
and waste
 
production
 
and gives
 
natural
resources
 
an opportunity
 
to recover.
In 2021,
 
we performed
 
an investigation
 
across
 
all five
 
commonly
accepted
 
circular
 
business
 
models
 
and identified
 
the domains
 
that
are relevant
 
to Proximus
 
as a
 
telecom
 
operator.
 
These
 
three
domains
 
devices,
 
network
 
& data
 
centers, and
 
real estate
& facilities
– have been
 
assessed
 
according
 
to maturity
 
and the
initiatives
 
that
 
are already
 
in place.
 
For example,
 
we refurbish
 
our
devices
 
and offer
 
refurbished
 
phones in
 
our product
 
catalogues.
Additionally,
 
our devices
 
are designed
 
to be
 
easily
 
refurbished.
Proximus covers
 
already most
 
of the circular
 
models relevant
 
for telecommunications
 
companies
CPE : Customer Premise Equipment
The
5
Circular
Business
 
Models
Devices
Network &
Data
 
Centers
Real
 
Estate
 
&
Facilities
1
Circular
 
Inflow
Baseline
 
& target
 
set
 
for
 
CPE
Refurbished
 
phones
 
offer
Fairphone
 
in catalogue
CPE redesign
 
done
Network design
assessment
New circular
headquarter building
2
Sharing
 
Platforms
Mobile network
sharing
3
Product-as-a-Service
(e.g. Lease
 
model)
CPE-as-a-Service
 
model
(residential
 
segment)
Smartphone-as-a-Service
model
 
(enterprise
 
segment)
4
Product
 
Use Extension
Repair & refurbishment
of devices
Resell of network
equipment
Refurbished
 
offers for
furniture and assets
5
Resource
 
Recovery
(End
 
of life
 
recycling)
Collection
 
program for CPE
& smartphones
Recycling upon
network phase out
 
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Proximus Group I
Integrated annual report
 
2021
I
63
2021 achievements
Devices
We are
 
implementing
 
various
 
actions
 
to reduce
 
device
 
waste
 
by
repairing,
 
reselling
 
or refurbishing
 
devices
.
At our
distribution
 
center
in Courcelles,
 
we perform
 
the
on-site
 
refurbishment
of modems,
 
decoders,
 
power supplies,
Wi-Fi Boosters and
 
smartphones. By
 
the end of 2021, after
careful inspection
 
and testing,
 
845,000 devices
 
had been
given a second life.
With
 
our
Don't
 
Miss
 
the Call
initiative
 
we collect
 
old mobile
phones
 
for refurbishment
 
or recycling.
 
Devices
 
that are
 
no longer
suitable
 
for
 
reuse
 
are
 
recycled
 
by our
 
partner
 
Umicore,
 
allowing
 
the
valuable
 
raw
 
materials
 
in the
 
devices
 
to be
 
reused.
 
Our ambition
for 2021
 
was to
 
collect
 
150,000
 
phones.
 
Despite
 
the impact
 
of
COVID-19,
 
at the
 
end of
 
2021,
 
our shops
 
and partnering
companies
 
had
 
collected
 
80,000
 
old mobile
 
phones.
Since September
 
2021,
 
our Proximus
 
shops and
 
online shop
offer customers
refurbished
 
smartphones
as an alternative
to new
 
devices.
 
These devices
 
are thoroughly
 
checked and
come with
 
a two-year
 
warranty,
 
just like
 
new mobile
 
phones.
 
In
addition
 
to offering
 
these devices,
 
we make
 
information
 
on
refurbishing
 
and recycling
 
available
 
to our
 
customers
 
online.
The Engage
 
pack for
 
enterprise
 
customers
 
makes it
 
possible to
lease
 
smartphones
 
and tablets
following
 
the "device-as-
The road ahead
Our future
 
initiatives
 
will tackle
 
our emissions
 
in two
 
different
 
ways.
On the
 
one hand,
 
we need
 
to
rule out
 
the use
 
of fossil
 
fuel
in our
buildings
 
and vehicle
 
fleets
 
and ensure
 
that our suppliers
 
and
partners
 
follow
 
our lead.
 
On the
 
other,
 
we need
 
to
focus on
efficiency
 
programs
that mitigate
 
the high
 
energy
 
use associated
with telecom infrastructure.
a-service"
 
model.
 
At the
 
end of
 
a contract,
 
depending on
 
their
condition,
 
devices are
 
recycled or
 
sold on
 
the second-hand
market. In
 
2021, we
 
entered into
 
agreements
 
for another
12,500 active packs
 
(for a total
 
of 17,000
 
packs).
Network
When replacing
 
our copper
 
networks
 
with fiber,
 
we recover
 
the
copper cable
 
for recycling.
 
In 2021,
 
we recovered
 
a total of
859
tons of copper
 
cable
, from which
 
811 tons
 
directly from
 
the
network.
We have begun
 
implementing the
mobile network
 
sharing
agreement
we entered into
 
with Orange Belgium
 
in 2021
(MWingz).
 
The redundant
 
end-of-life
 
materials from
 
those
dismantled
 
mobile sites,
 
such as antennas,
 
pylons and RAN
equipment,
 
will be
 
recycled
 
or resold
 
to give
 
them a
 
second life.
Buildings
For the renovation
 
of our
headquarters
 
in Brussels
, we are
working
 
with construction
 
companies
 
that adhere
 
to a set
 
of
sustainability criteria relating
 
to circularity.
We will
 
also recycle
 
as many
 
materials
 
as possible
 
and further
explore other circular
 
principles.
We are
 
committed
 
to
embedding
 
circularity
 
in everything
 
we
do
. Whether
 
it is the
 
roll-out
 
or renewal
 
of our network,
 
the new
products
 
and services
 
we launch,
 
the recycling
 
of disused
 
network
components
 
or the
 
choices
 
we make
 
while
 
refurbishing
our headquarters,
 
we always
 
reflect
 
on how
 
best to
 
apply circular
principles.
Energy, circularity &
 
supply chain are
 
the main areas to
 
achieve our net zero
 
& truly circular ambitions
Ambition
100%
renewable
 
energy
Truly
circular
Net Zero
Emissions
Action
domains
Energy
Fossil fuel
 
free buildings
Clean transportation
Energy efficiency
 
programs
Circularity
Filling the
 
gap across the
5 circular
 
business models
 
with
focus on:
mobile devices
refurbishment in
enterprise
 
segment
circular network
 
plan
waste plan
Supply
 
chain
Strong Supplier
Engagement
 
Program
>
2030
>
2040
>
 
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Proximus Group I
Integrated annual report
 
2021
I
64
Energy
To achieve
 
our
ambition
 
of using
 
100% renewable
 
energy
– and
hence being
 
carbon
 
neutral
 
without
 
compensations
 
– by 2030,
 
we
will invest
 
a total
 
of
 
17 million
 
in the
 
time frame
 
2021-
 
2030.
 
We
will continue
 
to phase
 
out our
 
technical
 
buildings,
 
renovate
 
our
headquarters
 
in Brussels,
 
and equip
 
our other
 
office
 
buildings
 
with
alternative
 
heating
 
technologies.
 
Additionally,
 
we will
 
continue
 
the
transition
 
to clean
 
transportation
 
by electrifying
 
our fleet
 
and
investigating
 
alternative
 
forms
 
of transportation.
In the next
 
five years,
 
data traffic
 
is expected
 
to increase
 
by 400%,
a growth
 
of 35%
 
per year,
 
resulting
 
in increased
 
energy
consumption.
 
To keep
 
the electrical
 
energy
 
consumption
 
flat despite
the growing
 
demand,
 
we will
 
implement
network
 
energy-
 
saving
initiatives
, such as:
An acceleration
 
of the
fiber
 
network
deployment
 
and the
dismantling of legacy
 
infrastructure.
The consolidation
 
of our
 
mobile
 
network,
investments in
 
5G
energy
 
efficiency
 
and extra
 
Advanced
 
Analytics
 
initiatives.
One of
 
the main
 
advantages
 
of 5G
 
is that
 
it has
 
been designed
 
to
address energy
 
issues, which is
 
why the technology
 
has built-in
calibrated
 
efficiency
 
mechanisms. In
 
the long term, these
mechanisms are expected to
reduce the energy consumption
of the future network
 
by a factor of up to 10
compared
 
to
the energy
 
consumption
 
of 4G
 
networks.
 
Despite
 
the expected
high increase of
 
data traffic, the
 
increase in energy
consumption
 
of our mobile
 
network will
 
be limited to only
 
40%
by 2026 thanks
 
to 5G energy
 
efficiency.
This is mainly
 
achieved by
 
activating
 
graduated
 
Sleep Modes.
The basic principle is simple: one or more 5G network
components
 
are selectively
 
turned off
 
in the absence
 
of traffic.
These green
 
ICT initiatives
 
have been
 
thoroughly
 
investigated
and will be
 
deployed from
 
the beginning
 
of the roll-out.
Flat electricity consumption
 
thanks to our
 
sustainable network infrastructure
Electricity consumption (in GWh)
Total of 20% savings compared
to business as usual scenario
2020
 
2023
 
2026
Efficiency gains
Consumption of Fix access
 
+ Mobile +
 
Data centers + Technical buildings
Additionally,
 
we want
 
to implement
 
the use
 
of a
 
completely
 
green,
local
 
electrical
 
supply
 
for our
 
company.
 
Today,
 
we are
 
already
 
using
100% green
 
electricity.
 
And by
 
2026,
 
we will
work with
more
 
local
 
electricity
 
sources
through
 
investments
 
in a Power
Purchase
 
Agreement,
 
long-term
 
partnerships
 
with Belgian
 
wind
 
and
solar plants
 
that match
 
our consumption
 
patterns.
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345
331
 
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Proximus Group I
Integrated annual report
 
2021
I
65
Circularity
To become
 
truly
 
circular
 
by 2030,
 
we will
 
further
 
focus on
 
circular
business models.
 
These are our
 
key action
 
areas:
Fixed devices:
promote refurbishment
 
in the enterprise
segment
 
and continue
 
to redesign
 
the devices
 
we introduce
to the market.
 
Our efforts
 
will focus
 
on reducing energy
consumption
 
and minimizing
 
the use
 
of plastic,
 
raw material
and packaging.
Mobile
 
devices:
move towards
 
more circular
 
value
 
proposals
across the consumer
 
and enterprise segments.
Define
 
circular
 
baselines
 
and set
 
targets
for both
 
our network
and the equipment
 
at our customers’
 
premises.
In 2022,
 
we will
 
also develop
 
a roadmap
 
detailing
 
the clear
 
steps
 
to
be taken
 
to fulfil
 
our
zero-waste
 
ambitions
 
by 2030
.
Supply
 
chain
With
 
the biggest
 
remainder
 
of our
 
carbon
 
footprint
 
residing
 
across
our value
 
chain,
 
to achieve
 
our net
 
zero ambition
 
by 2040,
 
we will
continue
 
to
work closely
 
with our
 
suppliers
. We will
 
encourage
them to
 
reduce
 
their carbon
 
footprints
 
and engage
 
more
sustainable supply chains
 
themselves.
However,
 
the Manifesto
 
is only
 
a first
 
step.
 
Through
 
our
Supplier
Engagement
 
Program
, due
 
to take
 
shape in
 
2022, we
 
will set
detailed
 
expectations
 
and KPIs
 
for our
 
suppliers
 
and implement
clear,
binding
 
commitments
. We aim
 
to onboard
 
our suppliers
 
and
work together
 
with them
 
in setting
 
and achieving
 
these targets.
 
The
program
 
will
 
demand a
 
diverse
 
approach,
 
with different
 
levels
 
of
commitment
 
based
 
on the
 
different
 
corporate-
 
maturity levels of
different suppliers.
Empowering
 
customers
 
to act
 
on their
 
footprints
Besides lowering
 
our own
 
emissions,
 
we have a unique
opportunity
 
to enable
 
our customers
 
to do the
 
same, serving
 
as
a
catalyst
 
in Belgium’s
 
green transition
. How?
 
By working
together
 
with our
 
customers
 
and partners,
 
and developing
innovative,
 
green
 
solutions.
 
Smart
 
solutions
 
in domains
 
such
 
as
agriculture,
 
finance
 
and construction
 
can help
 
other
 
industries,
 
as
well
 
as consumers,
 
to reduce
 
their carbon
 
emissions.
 
That’s
 
how
 
we
are helping
 
to make
 
positive
 
changes
 
for the
 
climate.
In 2021,
 
our telecom
 
solutions
 
such as videoconferencing,
 
helped
our enterprise
 
customers
 
reduce
 
their CO
2
 
footprints
 
by a
combined total of
 
502 Ktons.
As we
 
move
 
forward,
 
we want
 
to play
 
a leading
 
role
 
in Belgium’s
green transition
 
and enable
 
our customers
 
and society
 
to
decarbonize
 
their
 
footprints.
 
To do
 
so, we
 
will provide
 
them with
insights
 
into their
 
footprints
 
and tips
 
and tricks
 
to improve.
 
Via our
gigabit
 
network
 
deployment,
 
we will
 
push innovative
 
digital
solutions
 
that
 
have
 
the potential
 
to reduce
 
CO
2
 
emissions.
MyFootprint
Some
 
initiatives
 
that
 
have
 
enabled
 
consumers
 
and enterprises
 
and to
 
lower
 
their
 
carbon
footprints are:
aug•e:
the
 
platform
 
created
 
with
 
BESIX
 
and
 
i.Leco
 
for
 
smart
 
building
 
solutions.
In November
 
2021,
 
Proximus
 
and the
 
city
 
of Mechelen
 
joined
 
forces
 
launching
 
a pilot
 
project
 
in which
charging
 
stations
 
for electric
 
vehicles
are connected
 
to street
 
cabinets
 
for Proximus
 
telecom
created.
 
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Proximus Group I
Integrated annual report
 
2021
I
66
Compliance
 
and
 
recognition
Proximus
 
is internationally
 
recognized
 
for its
 
sustainability
 
efforts.
The CO
2
-Neutral
 
label
Since
 
2016,
 
Proximus
 
is recognized
 
as a
 
CO
2
 
neutral
 
company
 
for
 
its
own operations.
 
We achieved
 
this through
 
sustained
 
efforts
 
in the
areas
 
of transportation,
 
heating
 
and electricity
 
consumption.
 
As for
the CO
2
 
emissions
 
that we
 
are not
 
yet able
 
to reduce,
 
we offset
them by
 
supporting
 
projects
 
that reduce
 
emissions
 
in developing
countries.
CO
2
logic and
 
Vinçotte,
 
an independent
 
certification
 
body,
developed
 
the “CO
2
-Neutral”
 
label, based
 
on the
 
internationally
recognized PAS2060 standard.
CDP
In 2021,
 
Proximus
 
received
 
a Climate
 
Change
 
A- score,
 
showing
 
our
leadership
 
position
 
for our
 
action
 
on climate
 
change.
 
Proximus
 
is also
listed as
 
a 2021
 
CDP Supplier
 
Engagement
 
Leader.
Global
 
environmental
 
non-profit
 
CDP’s
 
annual
 
scoring
 
process
 
is
recognized
 
as the
 
gold
 
standard
 
of corporate
 
environmental
transparency.
 
CDP assesses
 
participating
 
companies
 
based
 
on the
comprehensiveness
 
of disclosure,
 
awareness
 
and management
of environmental
 
risks
 
as well
 
as demonstration
 
of best
 
practices
associated
 
with environmental
 
leadership,
 
such as
 
setting
ambitious and meaningful
 
targets.
SBT - Science Based Targets
 
Proximus
 
was the
 
first
 
Telco
 
with
 
an approved
 
SBT (WB2C)
 
in 2016
to reduce
 
30% of
 
its direct
 
greenhouse
 
gas emissions
 
(for the
period
 
2015-2025)
 
and 50%
 
of its
 
indirect
 
emissions
 
(for the
period 2014-2040).
In 2021,
 
Proximus
 
committed
 
to SBT
 
1.5°C
 
and in
 
2022,
 
we will
have
 
our targets
 
validated
 
in line
 
with
 
the new
 
SBTi Corporate
Net-Zero Standard launched
 
in October
 
2021.
The Science
 
Based
 
Targets
 
initiative
 
(SBTi)
 
drives
 
ambitious
climate
 
action
 
in the
 
private
 
sector
 
by enabling
 
companies
 
to set
science-based emissions
 
reduction targets.
RE100
The RE100
 
initiative
 
recognized
 
that Proximus
 
met its
 
goal of
sourcing
 
100%
 
of its
 
electricity
 
from
 
renewable
 
energy.
RE100
 
is the
 
global
 
corporate
 
renewable
 
energy initiative
 
bringing
together
 
hundreds
 
of large
 
and ambitious
 
businesses
 
committed
 
to
100%
 
renewable
 
electricity
 
with
 
the mission
 
to accelerate
 
change
towards zero carbon
 
grids at scale.
EcoVadis
In 2021,
 
for the
 
fifth
 
time
 
in a row,
 
Proximus
 
received
 
a Gold
 
label
from EcoVadis.
EcoVadis
 
allows
 
companies
 
to assess
 
their
 
environmental
 
and social
performance
 
as well
 
as those
 
of their
 
suppliers
 
through
 
a
questionnaire
 
on the
 
environment,
 
labor practices,
 
fair business
practices
 
and sustainable
 
procurement
 
which results
 
in a company's
overall
 
rating.
 
EcoVadis
 
is the
 
world’s
 
most
 
trusted
 
provider
 
of
business
 
sustainability
 
ratings,
 
intelligence
 
and collaborative
performance
 
improvement
 
tools
 
for global
 
supply
 
chains.
Lean
 
& Green
 
2 stars
Proximus
 
distribution
 
center
 
in Courcelles
 
was awarded
 
"Lean
 
&
Green
 
2 stars"
 
label
 
certifying
 
that
 
it has
 
cut its
 
CO
2
 
emissions
 
by
30% since
 
2015.
 
This makes
 
Proximus
 
the first
 
company
 
in
Belgium to receive
 
this 2-star label
 
in one go.
The "Lean & Green Europe" program has been run and
implemented
 
in Wallonia
 
by Logistics
 
in Wallonia
 
since 2014
 
with the
aim of
 
cutting
 
CO
2
 
emissions
 
by at
 
least
 
20% within
 
five years.
 
Once
they sign
 
up, participating
 
companies
 
define a
 
"Lean & Green
Europe"
 
action
 
plan which
 
must cover
 
at least
 
50% of the
 
emissions
they generate
 
linked
 
to transport
 
and logistics.
2021
 
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Proximus Group I
Integrated annual report
 
2021
I
67
Contributing
 
to a
 
digital society
Proximus wants
everyone
 
to benefit
 
from technology
in this
increasingly
 
digital
 
world.
 
Because
 
even though
 
the digitization
 
of
our economy
 
offers many
 
opportunities,
 
it poses
 
new challenges
as well.
Trust and
 
confidence
 
are fundamental
 
to encouraging
 
people to
seize digital
 
opportunities.
 
Because
 
we want
 
to play
 
a leading
role in
 
building
 
the digital
 
society
in Belgium,
 
we are
 
committed
 
to
ensuring our
 
digital services
 
and products
 
are safe,
 
inclusive and
accessible
 
to everyone,
 
regardless
 
of physical
 
capacities,
 
economic
or cultural origin,
 
education or age.
We are
 
actively
 
involved
 
in developing
 
a safer digital
 
society. By
building
cyber-resilient
 
infrastructure
and meeting
 
high
standards
 
in data
 
and privacy
 
protection,
 
we want to
 
empower
everyone to benefit
 
from technology.
Through collaborations
 
and investments
 
in education,
 
we help
people gain
 
the digital
 
skills they need
 
to flourish in
 
the digital
world.
 
This will
 
help increase
 
employability
 
and ensure
 
that
 
the
digital
 
jobs of
 
the future
are filled
 
– a determining
 
factor
 
in the
success of our digital
 
economy.
Closing
 
the digital
 
divide
Our initiatives
 
focus on
 
young
 
people,
 
senior citizens
 
and people
with disabilities.
 
We also support
 
people and families
 
living on
limited budgets.
How do we
 
contribute
 
to closing the digital
divide?
We connect and leverage a nation-wide network of
stakeholders
 
to share
 
know-how
 
and tackle
 
digital
 
inclusion.
We invest
 
in the
 
education
 
of people
 
of all
 
ages and
backgrounds.
We make
 
digital
 
technology
 
accessible
 
to everyone.
We help people gain
the digital skills they
need to
 
flourish in the
digital world.
DigitAll:
 
the digital
 
inclusion
 
alliance
DigitAll,
 
an alliance
 
in which
 
BNP Paribas
 
Fortis and
 
Proximus
are the
 
main partners,
 
has put
digital
 
inclusion
 
high
 
on the
agenda
, determined
 
to develop
 
and implement
 
actions
 
that
 
will
narrow
 
the
 
digital
 
divide
 
in Belgium.
Belgium
 
together
 
with
 
about
 
30 companies,
 
public bodies
 
and
In their
 
efforts
 
to narrow
 
the digital
 
divide
 
in Belgium,
the parties
 
signed
 
the
Digital
 
Inclusion
 
Charter
.
 
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Proximus Group I
Integrated annual report
 
2021
I
68
Empowering
 
young
 
and
 
old through
 
education
MolenGeek
We are
 
one of
 
the partners
 
behind
 
MolenGeek,
 
an organization
 
that
helps
 
less-privileged
 
job seekers
 
with an
 
entrepreneurial
 
mindset
 
to
build their
 
careers
 
in the
 
new digital
 
world
. Young people
 
can
follow
 
training
 
courses
 
and receive
 
coaching
 
to launch
 
their own
businesses.
 
In 2021,
 
MolenGeek
 
extended
 
its activities
 
to Charleroi
through
 
CharleWood
 
and Borgerhout
 
through
 
BorgerGeek.
School19
Proximus
 
is one
 
of the
 
founding
 
partners
 
of School19,
 
the first
 
free
Belgian
 
coding
 
school.
 
Since
 
its launch
 
in 2018,
 
Proximus
 
has
offered
 
internships
 
to ten
 
students
 
from
 
School19.
 
These interns
worked
 
on data
 
analytics
 
and web
 
development
 
projects;
 
five of
them have since
 
been hired by
 
Proximus.
In 2021,
 
School19
 
encouraged
 
even more
 
students
 
to apply
 
for its
services,
 
making
 
sure job
 
seekers,
 
especially
 
women,
 
benefit
 
from
this
 
new way
 
of learning.
 
306 students
 
have followed
 
School19
courses.
Technobel
We are
 
a founder
 
and long-term
 
partner
 
of Technobel,
 
which
offers
 
ICT training
 
courses
 
to job
 
seekers,
 
as well
 
as information
and awareness
 
initiatives
 
for citizens,
 
schools
 
and professionals.
 
In
2021,
 
Technobel
 
developed
 
a
broad
 
training
 
range
, including
digital re-skilling and
 
up-skilling courses.
Bednet and ClassContact
We have
 
a partnership
 
with Bednet
 
and ClassContact,
 
that allow
children living
 
with long-term illnesses
 
to continue their
education
at home
 
or in hospital
 
through
 
videoconferencing
solutions.
We support
 
these
 
organizations
 
by providing
 
internet
 
connections
and financial
 
aid. In
 
2021, Bednet
 
and ClassContact
 
helped 1,571
children,
 
compared
 
to a
 
total
 
of 1,277
 
in 2020.
 
We are
 
committed
 
to
supporting
 
these organizations
 
as they
 
help more
 
children
 
fulfill
 
their
potential.
 
In 2022,
 
Bednet
 
expects
 
to assist
 
at least
 
1,000 children
and ClassContact
 
at least 100
 
children.
 
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Proximus Group I
Integrated annual report
 
2021
I
69
Making
 
digital
 
technologies
 
accessible
 
to everyone
Devices
We test
 
the accessibility
 
of new
 
smartphones
 
and tablets
 
in
collaboration
 
with
 
the
Passe Muraille
association.
 
Through
 
their
independent
 
panel of
 
people
 
with disabilities,
 
they guarantee
our
devices meet
 
everyone’s
 
needs
. In our
 
online catalogue,
 
we use
icons
 
to identify
 
which devices
 
are adapted
 
to users
 
with
disabilities.
In 2021,
 
20 new
 
devices
 
were tested
 
before
 
being
 
included
 
in our
range.
 
55% of
 
the tested
 
devices
 
were deemed
 
accessible
 
for at
least
 
five disability
 
categories
 
(compared
 
to 73%
 
in 2020).
Digital platforms
Since
 
2020,
 
our websites
 
Proximus.be
 
and Proximus.com
 
have
been accessible
 
to people
 
with hearing
 
or visual
 
impairments.
In 2021,
 
we
improved
 
the accessibility
 
of our MyProximus
 
and
Pickx
apps
 
for people
 
with disabilities.
 
We offer
 
subtitles
 
and audio
descriptions
 
on several
 
channels
 
on the
 
TV platform
 
Pickx. We
will
 
extend
 
this
 
functionality
 
to other
 
channels
 
and programs
 
in
our video-on-demand
 
catalogue.
 
By 2024,
 
25% of
 
programs
 
in
this catalogue
 
will have
 
audio
 
descriptions
 
and 25%
 
will have
subtitles.
Schools
Together
 
with
Signpost
, Belgium’s
 
market
 
leader
 
for IT
solutions
 
in education,
 
we launched
 
Academic
 
Connect
 
in 2021.
This solution
allows
 
teachers
 
and students
 
to step into
 
the
digital era
and adopt
new ways of
 
learning
.
Remote
 
areas
We have
 
improved
 
connectivity
 
in rural
 
zones and
 
places
 
that lack
connectivity,
 
the so-called
 
white
 
zones,
 
offering
 
our services
 
to
people in less
 
densely populated
 
areas.
 
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Proximus Group I
Integrated annual report
 
2021
I
70
Building
 
digital
 
trust
 
and security
Security
 
is our
 
top priority
 
when developing
 
new infrastructure
and digital
 
services.
 
To
guarantee
 
our customers
 
a safe
 
ICT
environment
, we
 
offer
 
them
 
solutions
 
for protection.
 
We also
keep our employees
 
up to date with the latest security practices.
And because digital
 
threats cross borders,
 
we collaborate
 
closely
with national and
 
international cyber
 
authorities.
Cybersecurity within our company
In 2021,
 
Proximus
invested
 
€ 6.8 million
 
in its Corporate
 
Cyber
Security
 
Program
. This
 
investment
 
helps to
 
make our
 
company
more
 
cyber-resilient,
 
while
 
offering
 
best-in-class
 
secured
 
services
and networks
 
to our
 
customers.
 
Our Corporate
 
Cyber
 
Security
Program
 
reinforces
 
the protection
 
of our
 
critical
 
infrastructure.
 
The
results for 2021
 
are as follows:
Result 2020
 
Result 2021
our
Identity
 
and Access
 
Management
 
(IAM)
systems. Our
 
IAM
uses
 
biometrics
 
to provide
 
a better
 
and safer
 
user experience.
 
All
this
 
is crucial
 
to our
 
transformation
 
into a
 
digital
 
native
 
company.
To demonstrate
 
our commitment
 
to the
 
security
 
of our
 
customers
and stakeholders,
 
we maintain
 
a
Trusted
 
Introducer
 
Certification
and
four ISO
 
27001 certifications
. These cover
 
housing
 
and
hosting
 
in our
 
data
 
centers,
 
our remote
 
operations
 
center
 
and our
Explore range for
 
enterprise connectivity.
Number of incidents and alarms
handled by the Cyber Security
Incident Response
 
Team (CSIRT)
Social engineering
 
attempts
1,052 incidents
34,912 alarms
694 incidents
33,352 alarms
We are
compliant
with the
 
High Risk
 
Vendors
 
regulatory
restrictions
 
and with
 
the regulatory
 
restrictions
 
for access
 
to
aimed at our employees.
349 cases
 
152 cases
Cyber Security Resilience Index
 
92.59%
 
96.67%
On top
 
of these
 
achievements,
we assisted
 
our customers
in
responding
 
to cyber
 
incidents.
 
In 2021,
 
CSIRT conducted
 
security
assessments
 
for FOD
 
Mobility,
 
the National
 
Lottery
 
and the
CHwapi hospital in
 
Tournai.
We also
 
need
 
to keep
 
safeguarding
 
both our
 
company
 
data and
customers’
 
privacy.
 
This
 
is why
 
we are
 
continuously
 
modernising
critical
 
infrastructure.
 
We have
policies
in place
 
that ensure
 
our
vendors
 
always
 
offer
 
our customers
 
the latest
 
software
 
versions
 
to
eliminate
 
software
 
vulnerabilities.
 
When introducing
 
new
technologies,
 
in-depth
cybersecurity
 
penetration
 
tests
are part
 
of
our standard processes.
As from
 
2022,
 
we will
 
invest
 
more efforts
 
and budget
 
in cyber
security
 
which
 
remains
 
a top priority
 
for Proximus
 
and its
 
key
stakeholders.
Cybersecurity for our
 
customers
Since
 
the outbreak
 
of the
 
pandemic,
 
there
 
has been
 
a
worldwide
increase
 
in cyberattacks
, involving
 
more targeted
 
and
sophisticated phishing campaigns.
Phishing campaigns
that target our customers and impersonate
our brands
 
increased,
 
with 166
 
attacks
 
in 2021,
 
compared
 
to 133
 
in
2020. Our
 
CSIRT noticed
 
that
 
customers were
 
receiving more
frequent phishing messages
 
via SMS.
Customers
 
also
 
blocked
 
these
 
numbers
 
more
 
quickly
 
than before.
By closely
 
monitoring
 
and responding
 
effectively,
 
our CSIRT
prevented
1,131,110
 
customers
from
 
accessing
 
fraudulent
websites in 2021.
Since
 
November
 
2020,
 
Proximus
 
collaborates
 
with the
 
Centre
 
for
Cyber Security
 
Belgium
 
on the
Belgian
 
Anti-Phishing
 
Shield
(BAPS)
 
project
 
to protect
 
its customers.
 
This
 
project,
 
a Proximus
initiative,
 
engages
 
all Belgian
 
telecom
 
operators
 
to block
 
phishing
websites
 
that have
 
been identified
 
and verified
 
by the
 
Centre
 
for
Cyber Security.
Besides
 
phishing,
 
Proximus
 
observed
 
a new
 
and worrying
 
trend in
2021.
Distributed
 
Denial
 
of Service
 
attacks
(DDoS) are
 
causing
business
 
disruptions
 
within
 
Belgian
 
companies
 
and governmental
institutions.
 
They flooded
 
several
 
public
 
services
 
with so much
 
data
that
 
they
 
stop
 
functioning.
 
Therefore,
 
we made
 
additional
investments
 
to the
 
security
 
of our
 
network
 
to increase
 
protection
 
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Proximus Group I
Integrated annual report
 
2021
I
71
from DDoS
 
attacks.
 
Our actions
 
were successful:
 
in 2021
 
we
effectively
 
blocked
 
DDoS
 
attacks
 
that
 
targeted
 
us, avoiding
 
any
inconvenience for our
 
customers.
In December
 
2021, Proximus
 
launched
Cyber Care
in
collaboration
with
 
AXA
. This
 
makes Proximus
 
the first
 
operator
on the
 
Belgian
 
market
 
to launch
 
an
insurance
 
policy
of its kind.
Cyber
 
Care
 
offers
 
24/7
 
assistance,
 
providing
 
legal, financial,
psychological
 
and technical
 
support
 
to victims
 
of internet
 
fraud.
The insured
 
can also
 
make reports
 
of suspicious
 
online
 
activities,
allowing Proximus
 
to take preventative
 
action.
Public
 
awareness
remains
 
the best
 
way to
 
mitigate
 
the risk
 
of
attacks.
 
The CSIRT
 
posts warnings
 
on social
 
media whenever
 
a
new phishing
 
campaign
 
is detected.
 
In addition,
 
the Proximus
Security
 
Operations
 
Centre
 
monitored
 
33,908
 
notable
 
events,
alerting
 
enterprise
 
customers
 
of incidents
 
and remediating
 
them.
Cybersecurity for the public and
 
institutions
Exchanging
 
knowledge
 
and experiences
 
is key
 
to cyber-resilience
 
in
organizations.
 
In 2021,
 
Proximus
 
handled
 
350 requests
 
from law
enforcement
 
authorities
 
to block
 
access
 
to websites.
We cooperate
 
closely
 
with the
 
judicial
 
authorities
and help them
in their
 
investigations
 
in the
 
context
 
of criminal
 
offences,
 
such as
 
the
possession
 
and distribution
 
of child
 
pornography.
authorities that broadcasts
 
news and information
 
in the event of
 
a crisis.
The Belgian
 
Cyber Security
 
Coalition
, of
 
which we
 
are a
 
co-founder,
 
is a collaboration
 
platform
 
of 124
 
cybersecurity
experts from the public
 
and private sectors
 
and the academic
 
world.
We maintain
 
close
 
co-operation
 
with other
 
European
 
telecom
 
operators
 
through
 
the
ETIS platform
, where
 
we preside
 
over
 
the
security workgroup. Today,
 
5G security is a
 
top priority.
We are
 
working
 
together
 
with the
European
 
Network
 
& Information
 
Security
 
Agency
(ENISA)
 
to better
 
understand
 
the
evolution of regulations.
(Global Cybercrime Expert
 
Group).
 
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Proximus Group I
Integrated annual report
 
2021
I
72
Raising awareness on
 
cybersecurity
Because
 
of the
 
digital
 
transformation
 
and increased
 
cyberthreats,
 
the
need to
 
raise awareness
 
about
 
cybersecurity
 
among our
 
employees
and society at
 
large is higher
 
than ever.
Educating
 
our employees
In 2021,
 
we organized
a fully digital
 
security week
for our
employees.
 
A total
 
of 2,268
 
people
 
took part
 
in fourteen
 
digital
information
 
sessions
 
and five
 
security
 
guild sessions
 
about physical
and digital
 
security
 
at home.
 
Special
 
attention
 
was paid
 
to
 
secure
work
 
environments
 
to ensure
 
our business
 
continuity.
The need
 
to raise
awareness
 
about
cybersecurity is
higher than ever
Due to
 
the increase
 
in phishing
 
attacks,
 
we have
 
continued
 
to test
 
our
employees'
 
defences
against
 
phishing
 
through
 
social
 
engineering
.
We have
 
stepped
 
up our
 
efforts
 
by organizing
 
more frequent
 
and
diversified
 
internal
 
phishing
 
simulations.
 
This way,
 
we make sure
 
our
employees
 
are experts
 
in recognizing
 
phishing
 
messages.
We have instructed
 
our employees
 
to
report suspicious messages
to the Computer
 
Security Incident
 
Response Team (CSIRT) via
the "Report" button
 
in their mail provider’s
 
menu. CSIRT follows up
on the report
 
with an analysis.
 
When an employee encounters
 
a
suspicious text message, they can send it to CSIRT via
 
8444, free
of charge. We also
 
encourage them to report
 
ill-intentioned emails
sent to their personal
 
email addresses by forwarding the emails to
Safeonweb via suspicious@safeonweb.be.
These reports
 
allow the
 
Centre for Cybersecurity
 
Belgium (CCB)
 
to
take action
 
to prevent
 
others from
 
falling victim
 
to phishing.
 
In
collaboration
 
with Proximus,
 
the CCB blocks
 
all suspicious
 
links,
preventing others from falling victim to the ruse.
Good progress was also made in the field of
"passwordless
authentication"
. At the end of 2021,
 
12,000 employees had
activated
 
"Windows Hello for Business"
 
on their computers, an
application that
 
allows for
 
safe and easy
 
logging in through a
 
pin
 
code
or fingerprint.
In addition,
Proximus Corporate University
(PCU) is continuing to
develop training programs in
 
cybersecurity. In 2021,
PCU launched a course that teaches the basic principles
 
of
cybersecurity.
 
It is open
 
to all employees
 
interested in
 
the topic.
We also offer corporate
 
learning programs such
 
as Building the
Future. By the end of
 
2021, 70 employees were following a
cybersecurity course in preparation for CISSP industry
certification.
 
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2021
I
73
Educating society
Twice a year,
 
Proximus takes
 
part in the
Internet Safe &
 
Fun Days
.
Our employees, trained
 
by partner organization
 
Child Focus, visit
primary schools to
 
make children aware of
 
safe and responsible
internet use. In 2021, we reached 10,020 children in 167 schools
(compared to 7,875 children in 142 schools in 2020).
We also teamed up
 
with the
Centre for Cyber Security Belgium
and the
Cyber Security Coalition
for the 7th national media
campaign about cybersecurity
 
awareness. In 2021, the focus of the
campaign was phishing.
Safe and private customer data
Data is at the heart of the services we provide as a telecom and
digital platform
 
provider. We spare no
 
effort to make sure
our
customers’ data remains confidential and secure
. To this end,
we apply strict rules
 
and policies within
 
our company, complying
with the GDPR
 
and e-privacy
 
directives. More
 
information can be
found in the Corporate
 
Governance Statement on page
 
XXX.
To allow
 
our customers
 
to manage
 
their
 
data
 
and privacy
 
preferences
in a
 
simpler
 
way,
 
we are
 
continuously
 
improving
 
MyProximus
interfaces.
Social
 
engagement
Giving
 
back
 
to society
 
is of
 
major
 
importance
 
to us.
 
We do
 
this by
supporting
 
national
 
and international
 
projects,
 
as well
 
as local
initiatives
 
close to
 
our Proximus
 
offices
 
in Belgium.
We
offer
 
social
 
tariffs
to people
 
in difficult
 
economic
 
situations.
 
In
2021,
 
160,225
 
people
 
benefitted
 
from our
 
social
 
tariffs,
 
granted
 
on
social
 
or humanitarian
 
grounds
 
(compared
 
to 179,524
 
people
 
in
2020).
We are
 
proud
 
to support
Be.Face,
 
a charity
 
organization
 
for
underprivileged
 
people
. In 2021,
 
we shared
 
surplus food
 
and
drink
 
from
 
our offices
 
with Be.Face.
 
It will
 
be distributed
 
across
Belgium.
In collaboration
 
with NGOs
 
and humanitarian
 
organizations,
 
we
 
have
installed
free
 
Wi-Fi
in Belgian
 
shelters
 
for refugees
 
and immigrants.
We continue
 
to support
Télévie
, a charity
 
event in
 
Belgium
 
that
raises
money
 
for cancer
 
research
. We provide
 
technical
assistance,
 
including
 
internet
 
and telephone
 
lines.
As part of
 
our Don’t
 
Miss the Call
 
campaign,
 
we have started
collaborating
 
with
 
non-profit
 
organization
Eight
. Through
 
this
project,
 
the people
 
of the
 
village
 
of Lutala
 
in the
 
Democratic
Republic
 
of Congo
receive
 
a basic
 
income
 
via unconditional
 
cash
transfers
via their
 
mobile
 
phones.
 
The cash
 
transfers
 
started
 
in
November 2021.
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Getting
our
people
and
organization
ready
 
for
 
the
 
future
 
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Integrated annual report
 
2021
I
75
Proximus Group I
Integrated annual
 
report 2021
I
74
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Getting
our
people
 
and
organization ready
for the
 
future
When we invest in our employees, we invest in the future.
That’s why
 
we are committed
 
to maintaining a
 
work
environment that is
 
inspiring, inclusive and supportive
 
of all
our employees.
The continuous evolution of the market. The
expectations of
 
our customers
 
and employees.
COVID-19. These are
 
just some of
 
the reasons we
 
have had to
rethink our ways of working over the past few years. They
 
are
why we have redesigned
 
our office
life and approach
 
to work by
 
deploying a hybrid
 
way of
working – as manifested in the reinvention of our
headquarters in Brussels.
In addition, we are working to fully implement an agile
operating model throughout
 
our organization.
 
This will allow
us to put
 
the customer central,
 
to meet customer
 
expectations,
to quickly adapt to the ever-changing market and further
increase employee engagement.
We have
 
redesigned
 
our
office life and approach
to work by deploying a
hybrid way of working.
These goals represent a significant cultural transformation for
our company, where we aim to create an
 
environment with
permanent opportunities for both our customers
 
and our
employees.
To respond to all current evolutions, we are working to
update the skillsets present in our organization. For
example, we encourage our employees to take ownership of
their careers by providing them with a vast array of
educational tools. To prepare them for tomorrow’s tasks, we
emphasize re-skilling and up- skilling in
 
key domains, all
while taking the
 
necessary steps to attract the best digital
talents. Additionally, these initiatives will bring us closer to
our goal: to be recognized by the employment market as the
talent builder for the digital world.
To achieve
 
this recognition,
 
we are
 
building a
 
positive work
environment. We believe that diversity and inclusion
stimulate
 
the creativity and innovation within our
organization. We will continue to develop a
 
corporate
culture that allows
 
all our employees
 
to
learn from each
 
other, work together,
 
feel good about
themselves and each other, and perform to their full potential.
We are also strongly committed to fueling general well-
being. Through various programs, workshops, campaigns and
events, Proximus stimulates the physical, social
 
and mental
resilience of its
 
employees.
Material topics addressed
 
in this chapter:
Workplace
 
wellness
Employee up-skilling,
 
re-skilling and
 
employability
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Integrated annual report
 
2021
I
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2021
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76
Progressing towards
an
agile operating
 
model
To future-proof
 
our organization
 
and boost
 
our transformation
 
into
a truly
 
customer-centric
 
digital
 
company,
 
we decided
 
to fully
embrace agile ways of
 
working.
We have
 
years of
 
experience
 
in this area.
 
Small, cross-functional
and more
 
autonomous
 
teams
deliver better
 
quality more
quickly
 
and collaborate
 
better
. Agile
 
team members
 
feel more
directly
 
connected
 
to their
 
customers
 
and are
 
more creative.
Team empowerment
 
leads
 
to greater
 
involvement
 
and personal
feelings of pride
 
in everyone involved.
From
 
a company
 
with
 
agile
 
teams
 
to an
 
agile
 
company
Optimizing our agile
 
ways of working
 
is not only about
 
adding
more agile
 
teams.
 
We want
 
to harmonize
 
agile
 
practices
 
across
departments,
 
formally
 
create new
 
agile roles,
 
and adjust our
governance.
 
In 2021,
 
we
redesigned
 
our operating model
and
prepared
 
for a
 
major
 
organizational
 
change for
 
more than
 
4,000
people.
 
We use
 
a model
 
where employees
 
and contractors
 
are
hierarchically
 
grouped by
 
function
 
and collaborate
 
in cross-
functional squads.
Our new
 
operating
 
model will
 
be implemented
 
as from
 
January
2022. In addition
 
to the new
 
organizational structure
 
and
roles,
 
making
 
the most
 
of our
 
agile ways
 
of working
 
requires a
deep cultural
 
shift
. We
 
will empower
 
our teams
 
to work
 
more
autonomously
 
and determine
 
for themselves
 
how to create
 
value
 
in
the most effective way.
Typically,
 
agile
 
teams
 
operate
 
in fast-paced
 
cycles
 
of learning
 
and
decision-making.
 
The new operating
 
model will gradually
transform
 
Proximus
 
into a
 
network
 
of teams
driven by
 
a shared
#thinkpossible
 
mindset
and supported
 
by our common
 
values:
customer-centricity,
 
agility,
 
collaboration
 
and accountability.
In 2022,
 
we will continue
 
to build
 
on this culture by
 
supporting our
leaders
 
in developing
 
the necessary
 
leadership
 
style to
 
foster
 
the
empowerment,
 
growth
 
and engagement
 
of our
 
employees.
 
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Proximus Group I
Integrated annual report
 
2021
I
77
Agile in operations
Our operational
 
teams require
 
an adapted
 
agile model
 
that
differs
 
from the
 
one we
 
have designed
 
for marketing,
 
product
management, digital and
 
IT functions.
The customer
 
service
 
department
 
is piloting
 
a new way
 
of working
 
in
multi-disciplinary
 
teams
 
serving
 
a portfolio
 
of customers
 
in
a "one-stop shop".
 
Team members are empowered
 
to answer
questions and solve
 
issues the first
 
time.
In Network Engineering and
 
Operations, nearly 1,000 people
work according
 
to lean principles
 
every day. More initiatives
 
are
planned for operational
 
teams in 2022.
Shaping
 
the
 
workforce
 
of the
 
future
We want
 
our employees
 
to thrive
 
in a fast-changing
 
world.
 
That is
why we
 
offer
 
them the
 
opportunity
 
to keep
 
gaining
 
knowledge
 
and
skills,
 
particularly
 
in the
 
digital
 
field.
 
In doing
 
so, we
 
strive to
lead the
 
development
 
of the
 
digital
 
economy
 
and the
 
society
 
of
 
the
future.
 
All while
 
assuring
 
the employability
 
of our
 
people.
Wide range of training
 
possibilities
Proximus
 
offers
 
an extensive
 
package
 
of learning
 
trajectories.
Through
 
the "My
 
Learning"
 
platform,
 
employees
 
have access
 
to
thousands
 
of courses
 
in various
 
forms: from
 
classroom
 
training
 
to
digital modules and
 
e-books.
The subjects
 
taught
 
range
 
from
mastering
 
the basics
 
of digital
working
to specific
 
courses
 
designed
 
to help
 
employees
stay up-
to-date
with developments
 
in their
 
fields
 
of expertise.
 
The
platform
 
provides
 
them
 
with the
 
tools to
 
build
 
their futures
 
and
possibly give new
 
direction to
 
their career.
Because
 
the COVID-19
 
crisis
 
has hindered
 
training
 
in a classroom
setting,
 
Proximus
 
completely
 
reworked
 
its range
 
of training
 
courses,
making maximum
 
use of
digital and
 
virtual training
 
methods
. In
only a few
 
specific
 
cases,
 
and always
 
with necessary
 
safety
measures
 
in place,
 
training
 
was organized
 
in a classroom
 
setting.
 
In
2022,
 
we will
 
continue
 
to invest
 
in the
 
necessary
tools
 
to facilitate
 
virtual
 
courses
 
with an
 
outstanding
 
learning
experience.
In 2021,
 
in preparation
 
for the
 
start
 
of the new
 
agile way
 
of working,
we have
 
invested
 
in appropriate
 
coaching
 
for all
 
our employees.
Through
 
a collaboration
 
with the
 
London
 
Business
 
School
 
we set
 
up
leadership
 
courses
 
and training
 
courses
 
to boost
 
innovation
 
and to
create
 
development
 
opportunities
 
for emerging
 
talents.
For 2022,
 
we maintain
 
our objective
 
to reach
 
an average
 
of 40
training
 
hours
 
per employee.
 
In the
 
time frame
 
of 2020-2022,
 
we
will
 
have
 
invested
 
a total
 
of
 
100 million
 
in training
 
(including
 
the
time invested).
Training
 
at Proximus
 
in 2021
We invested
€ 32.34
 
million
in employee
 
re-skilling
 
and
up-skilling.
Each
 
employee
 
took part
 
in an average
 
of
41.3 hours
of
training, aligned with
 
our ambitions.
 
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Proximus Group I
Integrated annual report
 
2021
I
78
Attracting the best
 
talent
As we
 
strive
 
to be
 
recognized
 
as a talent
 
builder
 
and digital
 
talent
center,
allowing
 
existing
 
talent
 
to grow
and attracting
 
new talent
remain
 
top priorities
. That
 
is why,
 
on top
 
of continuous
 
training,
 
we
offer
 
our employees
 
the chance
 
to develop
 
their
 
careers
 
and pick
 
up
new skills
 
within
 
the company.
 
In 2021,
 
782 employees
 
switched
jobs
 
internally,
 
compared
 
to 2,146
 
in 2020.
Proximus
 
continues
 
to invest
 
in new
 
skills
 
and future
 
generations.
Through
 
a targeted
search
 
for talent
, we were
 
able to
 
recruit
 
172
employees
 
in future-oriented
 
domains
 
such as
 
data analysts,
 
UX
designers
 
and IT
 
analysts.
 
In 2021,
 
we also
 
hired 20
 
management
trainees.
 
They
 
are now
 
following
 
an extensive
 
learning
 
path within
the company,
 
through
 
which
 
they will
 
acquire
 
all the
 
knowledge
essential to filling
 
future management
 
positions.
To further
 
strengthen
 
our employer
 
branding
 
towards
 
the external
market,
 
we launched
 
a
new recruitment
 
campaign
. In parallel,
we revamped
 
our job
 
site
 
to attract
 
new digital
 
talent
 
in a variety
 
of
functions, from
 
data
 
and
 
IT
 
specialists to
 
shop
 
assistants and
technicians.
As the
 
war for
 
talent
 
rages on,
 
we also
 
launched
 
the
"Bring a Friend"
referral
 
campaign,
 
inviting
 
our employees
 
to encourage
 
their
 
friends
and families
 
to apply
 
for jobs
 
at Proximus.
In 2021,
 
443 employees
 
joined
 
Proximus.
Through
 
a targeted
 
search
for talent, we
 
were able
to
 
fill
 
future-oriented
positions.
Embracing
 
the
 
hybrid
 
way
 
of working
When COVID-19
 
hit, we
 
seized
 
the opportunity
 
to review
 
the
balance
 
between
 
working
 
from home
 
and at
 
the office
, keeping
in mind
 
the environmental
 
impact
 
of commuting,
 
the importance
 
of
face-to-face
 
contact
 
and the
 
benefits
 
and convenience
 
that one's
own home can
 
offer.
Of course,
 
it will
 
take
 
time
 
to develop
 
new, smarter
 
working
 
habits.
And while
 
remote
 
working
 
has enormous
 
potential,
 
we have
 
also
seen its
 
limits
 
when extended
 
over a
 
long period
 
of time.
 
We are
determined
 
to grow
 
towards
 
a new
 
balance
 
of working
 
at the
 
office
and working from
 
home.
Campus: reinventing the
 
workspace
The pandemic
 
changed
 
our perception
 
of the
 
workspace.
 
Right
now,
 
we are
 
reinventing
 
our workspaces
 
through
 
the
Campus
project
, which focusses
 
on these three
 
levels:
Offering
 
employees
 
the choice
 
of where
 
and how
 
they work.
Embracing
 
and valorizing
 
the magic
 
of human
 
connections.
Contributing
 
to Proximus’
 
ambitions
 
around decarbonization
and fossil fuel-free
 
buildings.
Partnerships
 
for better
 
educational
 
tools
To offer
 
better
 
and
 
more
 
varied
 
training
 
opportunities,
 
we have
 
partnered
 
with
 
two organizations:
We are
 
continuing
 
our collaboration
 
with
Technobel
. Together
 
we developed
 
a specific
 
learning
 
package
 
for
people working in
 
the field. In
 
2021, 435 participants
 
took a course
 
from this range.
In 2021,
 
we launched
 
a learning
 
track with
BeCode
to educate
 
22 employees
 
about the
 
skills,
technologies and digital
 
jobs of the future.
 
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Proximus Group I
Integrated annual report
 
2021
I
79
With
 
Campus,
 
our Brussels
 
headquarters
 
will be
 
transformed
into
a sustainable
 
and inspiring
 
digital campus
, connected
 
to
a network
 
of regional
 
hubs.
 
Technology
 
will optimize
 
the
experience
 
and effectiveness
 
of these
 
physical
 
workspaces.
 
The
program
 
will also
 
enable
 
us to
 
work smarter.
 
This supports
 
our
cultural
 
transformation
 
and agile
 
way of
 
working,
 
and is
 
designed
 
to
facilitate
 
connections,
 
collaboration
 
and innovation
. Our Brussels
headquarters will be
 
ready by end
 
of 2026.
The right digital tools
Autonomous
 
and effective
 
collaboration
 
are vital
 
to hybrid
 
working.
To
facilitate
 
digital
 
communication
, we offer
 
our employees
 
a set
of secure
 
and user-friendly
 
digital
 
tools that
 
can be
 
used on
 
any
device.
 
Over the
 
past year
 
we have
 
fully
 
deployed
 
Microsoft
 
Teams.
All our
 
employees
 
now use
 
the platform
 
for
 
daily communications
such as
 
calling,
 
chat sessions
 
and to
 
participate
 
in
 
virtual
 
meetings,
 
as
well as
 
to support
 
both internal
 
and external
 
collaborations.
WAP+, our
social
 
enterprise
 
portal
connects
 
our employees
 
at
both the
 
individual
 
and organizational
 
level.
 
On the other
 
hand, the
Spencer
 
app helps
 
them
manage their
 
holidays,
 
absences and
team calendar
on their
 
mobile
 
device.
 
These
 
digital
 
office tools
allow
 
our people
 
to collaborate
 
better
 
and maximize
 
their own
personal efficiency.
Creating
 
a positive
 
work
 
environment
 
for
 
everyone
We strive
 
to create
 
a positive
 
work
 
environment.
 
One where
people
 
feel
 
good
 
and valued,
 
where working
 
conditions
 
are
adapted
 
to personal
 
needs
 
for a
 
better
 
work-life
 
balance,
 
in sync
with
 
the company’s
 
ambitions
 
and where
 
employees
 
are resilient,
 
engaged
and committed
 
to making
 
a positive
 
contribution
 
to our company
 
growth.
Diversity and inclusion
Diversity
 
and inclusion
 
are
fully
 
embedded
in Proximus.
 
We think
 
it
is important
 
to acknowledge
 
the skills
 
and competences
 
of all
people.
 
By promoting
 
diversity
 
and inclusion,
 
we make
 
a vital
contribution
 
to people’s
 
well-being
 
and create
 
the best
 
conditions
 
for
our employees’
 
personal
 
and professional
 
development.
 
This also
helps us to
 
attract and retain
 
talent.
 
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Proximus Group I
Integrated annual report
 
2021
I
80
Therefore,
 
building teams
 
that are as diverse as
 
our market,
and as diverse as society
 
at large, is necessary
 
to
ensure the
sustainability
 
of our
 
activities
. A diverse
 
workforce
 
helps
to maintain
 
a work environment
 
that fosters
creativity
 
and
innovation
and to
 
reflect
 
the diversity
 
of our
 
customers.
Find out more about our engagement
 
in this domain in our
diversity and inclusion
 
statement.
A diverse workforce
helps to maintain a
work
 
environment
 
that
fosters
 
creativity
 
and
innovation
.
Well-being
Now
 
more
 
than
 
ever,
 
well-being
 
and resilience
 
are essential.
 
The
headlines
 
are everywhere:
 
the ongoing
 
pandemic
 
and continuous
teleworking
 
complicate
 
a healthy
 
work-life
 
balance.
 
Our own
employees
 
are not
 
exempt
 
from
 
this challenge.
 
To improve
 
their
well-being, we took
 
the following
 
steps in 2021:
We launched
 
the
Work Smarter
 
Charter
: a set of guidelines
that encourages
 
employees
 
to adopt
 
habits that
 
help to keep
 
a
healthy
 
balance
 
and disconnect
 
from work
 
during their
 
time off.
The charter
 
offers
 
practical
 
tips on
 
how to
 
recharge
 
during
the day,
 
how to
 
conduct
 
smart meetings
 
and how
 
to take
 
a step
back from work.
1,072 team
 
leaders
 
participated
 
in
well-being
 
and resilience
workshops
, teaching
 
them how
 
to overcome
 
challenges,
detect stress
 
and offer
 
support and
 
guidance to
 
their team
members.
We introduced
 
our employees
 
to the
Team Connect
 
Kit
,
 
a
package
 
containing
 
exercises
 
and four
 
building
 
blocks
developed
 
to initiate
 
conversation
 
and enhance
 
team
connection and
 
cohesion in
 
a digital
 
environment.
We continued
 
the
FeelGreat@Proximus
program,
 
aiming to
foster
 
a culture
 
of physical,
 
social and
 
mental resilience.
 
It
includes
 
workshops,
 
events and
 
communication
 
campaigns.
To stay
 
informed
 
of our
 
employees’
 
well-being,
 
we hold
 
regular
employee
 
surveys
. Through
 
these lists
 
of questions,
 
we get to
know about
 
their
 
individual
 
situations,
 
their commitment
 
and
motivation.
 
This was
 
especially
 
helpful
 
during
 
the periods
 
of
lockdown.
 
The surveys
 
not only
 
allowed
 
us to
 
assess
 
employees’
moods,
 
social
 
relations
 
with colleagues
 
and to
 
inquire
 
about their
work-life
 
balance,
 
they have
 
also helped
 
us take
 
the steps
necessary to improving
 
their well-being.
Under
 
normal
 
circumstances,
 
our employees
 
and their
 
families
benefit
 
from
 
complementary
 
services
 
such as
 
daycare
 
during
 
the
spring
 
and summer
 
holidays
 
and our
 
annual
"Proximus
 
Fun
 
Day"
and
"Kids
 
Party"
events.
 
Due to
 
COVID-19,
 
family
 
days and
childcare
 
were
 
unfortunately
 
cancelled
 
and substituted
 
with other
initiatives,
 
such as
 
Saint Nicolas
 
gift vouchers
 
for children
 
of
employees
 
or tickets
 
for the
 
zoo or
 
Walibi
 
as substitute
 
for the
"Proximus Fun Day".
Last but
 
not least,
 
we regularly
 
call on
social
 
consultants
and
prevention
 
advisors
to support
 
our employees
 
in different
 
areas
 
of
well-being
 
at work,
 
such as
 
the psychosocial
 
and ergonomic
domains.
Facing COVID-19
 
together
Managing
 
the unprecedented
 
health crisis
 
was a top priority
 
in
2021.
 
We continuously
 
and closely
 
monitored
 
the situation,
adjusting
 
our internal
 
measures
 
in accordance
 
with government’s
guidelines.
 
Through
 
it all,
 
our goal
 
was to
protect
 
our employees,
help our customers
 
and support society
with our telecom
solutions.
When
 
measures
 
were
 
briefly
 
lifted
 
and our
 
employees
 
were able
 
to
return
 
to office,
 
guaranteeing
 
them a
 
safe work
 
environment
 
was
crucial.
 
All the
 
necessary
 
health
 
measures
 
were put
 
in
place
 
to avoid
 
the spread
 
of the
 
coronavirus.
 
Our progressive
back-
to-work
 
plan
kicked
 
off in
 
July, giving
 
employees
 
the option
 
of
once
 
more working
 
in one
 
of our
 
offices.
 
In November,
 
however,
the government
 
imposed
 
stricter
 
rules following
 
a new
 
wave
 
of
infections.
 
Once
 
again,
 
all measures
 
were meticulously
incorporated
 
to provide
 
maximum
 
safety
 
for our
 
employees.
 
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Proximus Group I
Integrated annual report
 
2021
I
81
Manage
 
for impact,
manage
responsibly
82
Governance and
 
compliance
83
Corporate
 
governance
 
statement
106
 
Diversity and inclusion
 
statement
110
 
Remuneration
 
report
127
 
Regulatory framework
133
 
The Proximus share
139
Non-financial statements
140
Materiality and
 
stakeholder dialogue
147
 
Social statement
158
 
Environmental
 
statement
169
 
EU Taxonomy
171
 
TCFD overview
173
 
GRI content index
Proximus Group I
Integrated annual report
 
2021
I
81
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Governance
 
and
 
compliance
Proximus Group I
Integrated annual report
 
2021
I
82
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Proximus Group I
Integrated annual report
 
2021
I
83
Corporate
governance
statement
Corporate
 
governance
 
aims to
 
define
 
a set
 
of rules
 
and behaviors
according to which companies are properly managed and controlled,
with the objective
 
of increasing
 
transparency. It is
 
a system of checks and
balances between
 
the shareholders,
 
the Board of
 
Directors,
 
the Chief
Executive
 
Officer
 
and the Executive
 
Committee.
 
Proximus
 
is committed
 
to
comply with
 
the legal and
 
regulatory obligations and
 
best practices.
 
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Integrated annual report
 
2021
I
84
Proximus
 
governance
 
model
At Proximus, we
 
know that doing
 
business the right
 
way is our
license to operate.
 
We never want to
 
be put at the
 
center of
ethical dilemmas,
 
and we put the
 
right measures in place to
ensure our
 
business
 
is conducted
 
ethically.
 
This first
 
of all
 
means
having a clear governance model, which for us, as a
 
limited
liability
 
company
 
under public
 
law, is imposed
 
by the Law of
 
21
March 1991
 
on the reform
 
of certain
 
autonomous economic
public companies
 
(“the 1991
 
Law”). For
 
matters not explicitly
regulated
 
by the
 
1991 Law,
 
Proximus
 
is governed
 
by the Belgian
Code of Companies
 
and Associations
 
of 23 March 2019 (“the
Belgian Code
 
of Companies
 
and Associations”)
 
and the Belgian
Corporate
 
Governance
 
Code of
 
2020 (“the
 
2020 Corporate
Governance Code”).
The key
 
features
 
of Proximus’
 
governance
 
model are:
a Board
 
of Directors,
 
which defines
 
Proximus’
 
general
 
policy &
strategy and supervises
 
operational management
an Audit & Compliance Committee, a Nomination
 
&
Remuneration
 
Committee
 
and a
 
Transformation
 
& Innovation
Committee created
 
by the Board
 
within its structure
a Chief Executive Officer (CEO) who takes primary
responsibility
 
for operational
 
management
 
including,
 
but not
limited to, day-to-day
 
management
an Executive
 
Committee
 
which assists
 
the CEO
 
in the
 
exercise
 
of
his duties.
Proximus
 
designates
 
the 2020
 
Corporate
 
Governance
 
Code as
 
the
applicable
 
Code (www.corporategovernancecommittee.be).
We not only
 
follow the
 
law but want
 
to ensure
 
every one of our
collaborators
 
is aware
 
of the
 
behaviors
 
to follow
 
and to avoid.
Therefore,
 
Proximus
 
adopted
 
a Code of
 
Conduct,
 
applicable
 
to all
employees.
 
Proximus
 
employees
 
must follow
 
a mandatory
training on the application of the principles of the
 
Code of
Conduct.
 
On top
 
of this,
 
we have
 
various
 
internal
 
policies
 
to make
sure our employees
 
conduct the business
 
ethically.
Board
of
Directors
The Board
 
of Directors
 
is composed
 
of no more
 
than fourteen
members, including
 
the person
 
appointed as Chief
 
Executive
Officer.
 
The CEO
 
is the
 
only executive
 
member at
 
the Board.
 
All
other members are
 
non-executive Directors.
Directors
 
are appointed
 
for a
 
renewable
 
term of
 
up to
 
four years.
According
 
to the limits
 
for independent
 
Directors, defined
 
in
article 7:87
 
of the Belgian
 
Code of
 
Companies
 
and Associations
and the
 
2020 Corporate
 
Governance
 
Code, the
 
maximum term
for independent
 
Directors
 
is limited
 
to twelve
 
years. The
 
Board of
Directors
 
decided in
 
2021 that this
 
maximum term will
 
in the
future also apply
 
for the non-independent
 
Directors.
The Directors
 
are appointed
 
at the general
 
meeting by the
shareholders.
 
The Board
 
of Directors
 
exclusively
 
recommends
candidates
 
who have
 
been proposed
 
by the Nomination
 
and
Remuneration
 
Committee.
 
The Nomination
 
and Remuneration
Committee
 
will take
 
the principle
 
of reasonable
 
representation
 
of
significant
 
stable
 
shareholders
 
into account
 
and any shareholder
who holds at least
 
25% of the shares
 
has the right to
 
nominate
Directors
 
for appointment
 
pro rata
 
to his shareholding.
 
Based on
 
this
rule the Belgian
 
State has
 
the right
 
to nominate
 
7 Directors. All
other Directors
 
must be independent
 
within the meaning
 
of article
7:87 of
 
the Belgian
 
Code of Companies
 
and Associations
 
and of
 
the
2020 Corporate
 
Governance
 
Code and
 
at any
 
time the
 
Board needs
to have at
 
least 3 independent
 
Directors.
Proximus
 
is proud
 
of a substantial
 
female
 
representation
 
on its
Board of
 
Directors.
 
This composition
 
and the complementary
expertise
 
and skills
 
of all Directors
 
create
 
a dynamic which
benefits the good
 
management of the
 
company.
 
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Proximus Group I
Integrated annual report
 
2021
I
85
Composition
 
of the
 
Board
 
of Directors
Members of
 
the Board
 
of Directors
 
appointed by
 
the General
 
Shareholders’ Meeting
upon proposal of the Belgian State
Name
Age
Position
Term
Stefaan De Clerck
70
Chairman
2013 – 2022
Guillaume Boutin
47
Chief Executive Officer
2019 - 2024
Karel De Gucht
1
68
Director
2015 - 2025
Martine Durez
71
Director
1994 - 2022
Ibrahim Ouassari
2
43
Director
2021 - 2025
Isabelle Santens
62
Director
2013 - 2022
Paul Van de Perre
69
Director
1994 - 2022
Members of
 
the Board
 
of Directors
 
appointed by
 
the General
 
Shareholders’ Meeting
Name
Age
Position
Term
Pierre Demuelenaere
3
63
Independent Director
2011 - 2023
Martin De Prycker
67
Independent Director
2015 - 2023
Catherine Rutten
53
Independent Director
2019 - 2023
Joachim Sonne
47
Independent Director
2019 - 2024
Agnès Touraine
67
Independent Director
2014 - 2022
Catherine Vandenborre
51
Independent Director
2014 - 2022
Luc Van den hove
62
Independent Director
2016 - 2024
1
By decision of the AGM of 21 April 2021, the mandate
 
was extended until the AGM of 2025
2
By decision of the AGM of 21 April 2021,
 
Mr. Ibrahim Ouassari was appointed until the AGM of 2025
 
3
By decision of the AGM of 21 April 2021, the mandate was extended until the AGM of 2023
Diversity
 
at the
 
Board
 
of Directors
The Board
 
of Directors
 
takes
 
into
 
account
 
how it
 
will enhance
diversity
 
of the
 
Board
 
of Directors
 
with respect
 
to gender,
 
age and
nationality
 
when
 
replacements
 
and appointments
 
are considered.
The diversity
 
characteristics
 
for the
 
Board of
 
Directors
 
can be
visualized as follows:
5 women
Gender
9 men
11 Belgian
2 French
Nationality
1 German
 
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Functioning
 
of the
 
Board
 
of Directors
The Board
 
of Directors
 
meets
 
whenever
 
the interests
 
of the
company
 
so require
 
or at
 
the request
 
of at
 
least
 
two Directors.
In principle,
 
the Board
 
of Directors
 
holds five
 
regularly
 
scheduled
meetings annually.
The Board
 
of Directors
 
also
 
yearly
 
discusses
 
and evaluates
 
the
strategic long-term
 
plan in an
 
extra meeting.
In general,
 
the Board’s
 
decisions
 
are made
 
by simple
 
majority
 
of the
Directors
 
present
 
or represented,
 
although
 
for certain
 
issues
 
a
qualified majority is
 
required.
The Board
 
of Directors
 
has adopted
 
a Charter
which,
 
together
with
 
the Charters
 
of the
 
Board Committees,
 
reflects
 
the principles
 
by
which
 
the Board
 
of Directors
 
and its
 
Committees
 
operate.
The Board
 
Charter
 
stipulates,
 
among
 
other
 
things,
 
that important
decisions
 
should
 
have broad
 
support,
 
understood
 
as a qualitative
concept
 
indicating
 
effective
 
decision-making
 
within
 
the Board
 
of
Directors
 
following
 
a constructive
 
dialogue
 
between
 
Directors.
Files
 
on important
 
decisions
 
are prepared
 
by standing
 
or ad
 
hoc
Board
 
Committees,
 
with
 
significant
 
representation
 
of non-
executive,
 
independent
 
Directors
 
within the
 
provisions
 
of article
7:87 of
 
the Belgian
 
Code of
 
Companies
 
and Associations.
Committees
of
 
the
 
Board
 
of
Directors
Proximus has an Audit & Compliance Committee, a Nomination &
Remuneration
 
Committee
 
and
 
a
 
Transformation
 
&
 
Innovation
Committee.
Audit
 
& Compliance
 
Committee
The Audit
 
& Compliance
 
Committee
 
(ACC) consists
 
of five
 
non-
executive
 
Directors,
 
the majority
 
of whom
 
are independent.
 
In line
with its
 
Charter,
 
the Committee
 
is chaired
 
by an independent
Director.
The Audit
 
& Compliance
 
Committee’s
 
role is
 
to assist
 
and advise
the Board of
 
Directors in its
 
oversight of:
The financial
 
reporting
 
process
Efficiency
 
of the
 
systems
 
for internal
 
control
 
and risk
management of the
 
company
The company’s
 
internal
 
audit function
 
and its
 
efficiency
The quality,
 
integrity
 
and legal
 
control
 
of the statutory
 
and the
consolidated
 
annual
 
accounts
 
and the
 
financial and
 
non-
financial
 
statements
 
of the company,
 
including
 
the follow-up
 
of
questions
 
and recommendations
 
made by
 
the auditors
The relationship with the company’s auditors and the
assessment
 
& monitoring
 
of the
 
independence
 
of the
 
auditors
The company’s
 
compliance
 
with legal
 
and regulatory
requirements
Compliance
 
within
 
the company
 
with the
 
company’s
 
Code of
Conduct and the
 
Dealing Code.
The Audit
 
& Compliance
 
Committee
 
meets
 
at least
 
once every
quarter.
The members
 
of the
 
Audit
 
& Compliance
 
Committee
 
are: Mrs.
 
Catherine
Vandenborre
 
(Chairwoman),
 
Messrs.
 
Stefaan
 
De Clerck,
 
Pierre
Demuelenaere,
 
Joachim
 
Sonne
 
and Mrs.
 
Catherine
 
Rutten.
A majority of the members of the Audit & Compliance
Committee
 
have
 
extensive
 
expertise
 
in accounting
 
and audit.
 
The
Chairwoman
 
of the
 
Audit
 
& Compliance
 
Committee,
 
Mrs.
Catherine
 
Vandenborre,
 
holds a
 
degree
 
in Business
 
Economics
 
as
well as
 
degrees
 
in Tax
 
and Financial
 
Risk Management.
 
The
Chairwoman
 
and the
 
majority
 
of the members
 
exercised
 
several
Board
 
or executive
 
mandates
 
in large
 
Belgian
 
or international
companies.
 
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Nomination
 
& Remuneration
 
Committee
The Nomination & Remuneration Committee (NRC) consists
 
of
five Directors,
 
the majority
 
of whom
 
are independent.
 
In line with
 
its
Charter,
 
this Committee
 
is chaired
 
by the
 
Chairman
 
of the
 
Board of
Directors, who is
 
an ex-officio
 
member.
The Nomination
 
& Remuneration
 
Committee’s
 
role is
 
to assist
 
and
advise the Board
 
of Directors
 
regarding:
The nomination
 
of candidates
 
for appointment
 
to the
 
Board of
Directors and the
 
Board Committees
The appointment
 
of the
 
CEO and
 
of the
 
members of
 
the
Executive Committee
 
on proposal
 
of the CEO
The appointment
 
of the
 
Secretary
 
General
The remuneration
 
of the members of the Board of Directors
and the Board Committees
The remuneration of the CEO and members of the Executive
Committee
The annual
 
review
 
of the
 
remuneration
 
concept
 
and strategy
 
for
all personnel,
 
and specifically
 
the compensation
 
packages
 
of the
Leadership Team
The oversight of the decisions of the CEO with respect to
the appointment, the dismissal and
 
the compensation of
Management
The preparation
 
of the
 
Remuneration
 
report and
 
the
presentation
 
of that report
 
at the Annual General
Shareholders’ Meeting
Corporate
 
governance
 
matters.
The Nomination
 
& Remuneration
 
Committee
 
meets
 
at least
 
four
times per year.
At the
 
beginning
 
of each
 
year,
 
the Committee
 
reviews the
performance,
 
budgets
 
for pay-out
 
of bonuses
 
and merits
 
and
long-term
 
and short-term
 
incentive
 
plans.
 
At that
 
meeting,
 
the
concept
 
and strategy
 
of the
 
remuneration
 
policy
 
is also
 
discussed.
The Committee
 
determines
 
the performance
 
measurement
 
targets
of the
 
CEO and
 
the members
 
of the
 
Executive
 
Committee
 
through
Key Performance Indicators.
The members
 
of the
 
Nomination
 
& Remuneration
 
Committee
 
are:
Messrs.
 
Stefaan
 
De Clerck
 
(Chairman),
 
Pierre
 
Demuelenaere,
 
Martin
De Prycker,
 
Luc Van
 
den hove
 
and Mrs.
 
Martine
 
Durez.
Transformation
 
& Innovation
 
Committee
The Transformation
 
& Innovation
 
Committee
 
(TIC) consists
 
of a
maximum
 
of six
 
Directors.
 
In line
 
with its
 
Charter,
 
the Chairman
 
of
the Board
 
of Directors
 
is ex-officio
 
member,
 
and the
 
Committee
 
is
chaired
 
by the
 
Chairman
 
of the
 
Board of
 
Directors.
 
Three members
are appointed
 
among
 
the independent
 
Directors.
The Transformation
 
and Innovation
 
Committee
 
is a permanent
committee
 
of the
 
Board,
 
discussing
 
those
 
selected
 
files
 
that need
preparatory
 
reflection
 
and need
 
to mature
 
before
 
being
 
brought
 
to
the Board
 
for decision.
 
The topics
 
discussed
 
at the
 
Transformation
and Innovation
 
Committee
 
may be
 
of diverse
 
nature
 
and will
evolve
 
overtime
 
depending
 
on the
 
company’s
 
needs and
 
could deal
with
 
matters
 
concerning
 
a.o.
 
technology,
 
network,
 
branding/
marketing,
 
sustainability,
 
transformation,
 
HR skills,
 
digitalization…
 
If
appropriate,
 
the Board of Directors
 
can decide
 
on establishing
 
a
special
 
ad hoc
 
Committee,
 
dealing
 
with a specific
 
subject and
composed
 
of members
 
with
 
the appropriate
 
experience.
The members
 
of the
 
Transformation
 
& Innovation
 
Committee
 
are:
Messrs.
 
Stefaan
 
De Clerck
 
(Chairman),
 
Karel De
 
Gucht,
 
Martin
 
De
Prycker,
 
Luc Van
 
den hove,
 
Paul Van
 
de Perre
 
and Mrs.
 
Agnès
Touraine.
Sustainability
 
governance
With sustainability
 
being
 
an integral
 
part of
 
our #inspire2022
strategy,
 
it has
 
Board
 
oversight.
 
The commitment
 
of embedding
sustainability
 
in everything
 
we do
 
is being
 
achieved
 
by integrating
 
it
in operational
 
management
 
under
 
the supervision
 
of the Board
 
of
Directors
 
and under
 
the responsibility
 
of the CEO
 
and the Executive
Committee
 
in the
 
capacity
 
of the
 
Chief
 
Corporate
 
Affairs
as Sustainability
 
Champion.
 
Reporting
 
and tracking
 
happens
 
on a
monthly
 
basis
 
towards
 
the Executive
 
Committee
 
allowing
 
fact-
based
 
discussions
 
and prioritization.
 
Through
 
the CEO
 
Activity
Report,
 
achievements
 
are reported
 
bi-monthly
 
towards
 
the Board
who also
 
reviews
 
progress
 
on a quarterly
 
basis
 
as part of
 
the
strategic review of
 
our #inspire2022
 
strategy.
 
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The day-to-day
 
management
 
is done
 
through
 
a well-defined
organization
 
of sustainability
 
coordinators
 
across
 
all business
 
units
who
 
manage
 
all sustainability-related
 
projects
 
with clear
deliverables
 
and KPIs.
 
It is steered
 
by a senior
 
leader
 
responsible
for Reputation
 
and Sustainability
 
within
 
Corporate
 
Affairs.
This
 
year
 
we enhanced
 
the governance
 
process
 
by integrating
 
the
sustainability
 
impact
 
into every
 
file or
 
initiative
 
that comes
 
on the
agenda
 
of the
 
Executive
 
Committee
 
Meetings.
 
Our sustainability
ambitions
 
are reflected
 
in the
 
STI KPIs,
 
more details
 
can be
 
found
 
in
the remuneration report
 
on page X.
Further
 
corporate
 
governance,
 
compliance
 
and risk
 
management
information
 
related
 
to sustainability
 
can be
 
found
 
in the
Compliance
 
& Ethical
 
standards
 
section
 
of this
 
Governance
Report,
 
the Risk
 
management
 
Report,
 
the Diversity
 
& Inclusion
Statement
 
and the
 
Non-Financial
 
Statement.
 
Detailed
 
non-financial
 
figures
 
can be
 
found
 
in the
 
Environmental
and Social Statements.
The progress
 
towards
 
assessing
 
EU taxonomy
 
alignment
 
and
implementing
 
the recommendations
 
of the
 
Task
 
Force
 
on
Climate-Related
 
Financial
 
Disclosures
 
(TCFD)
 
is explained
 
in
chapter X.
The #inspire2022
 
strategy
 
ambitions
 
and 2021
 
achievements
can be found
 
in the second
 
chapter.
Deviation
 
from
 
the
2020
Corporate
Governance
 
Code
Proximus
 
complies
 
with
 
the 2020
 
Corporate
 
Governance
 
Code
except for two
 
deviations.
Provision
 
7.6 stipulates
 
that
 
a non-executive
 
board member
should
 
receive
 
part
 
of his
 
remuneration
 
in the form
 
of shares
 
in the
company.
 
Because
 
of its
 
specific
 
shareholdership,
 
having
 
the
Belgian
 
State
 
as majority
 
shareholder,
 
the company
 
opts not
 
to
introduce
 
share-related
 
remuneration
 
at this
 
stage.
For the same reason
 
Proximus
 
is not compliant with provision 7.9
that stipulates
 
that the Board should set a minimum threshold
 
of
shares to be
 
held by the
 
executives.
Conflict
 
of
 
interest
A general
 
policy
 
on conflict
 
of interest
 
applies
 
within
 
the company.
 
It
prohibits
 
the possession
 
of financial
 
interests
 
that may
 
affect
personal
 
judgment
 
or professional
 
tasks to
 
the detriment
 
of the
Proximus Group.
On 24 February
 
2011,
 
the Board
 
adopted
 
a “related
 
party
transactions
 
policy”
 
which was
 
updated
 
in September
 
2016,
which
 
governs
 
all transactions
 
or other
 
contractual
 
relationships
between the company
 
and its Board
 
members.
In accordance
 
with
 
article
 
7:96 of
 
the Belgian
 
Code of
 
Companies
and Associations,
 
the CEO,
 
Mr. Guillaume
 
Boutin
 
declared
 
during
the Board
 
of Directors
 
of 25
 
February
 
2021 to
 
have a
 
conflict
 
of
interest
 
in connection
 
with
 
his performance
 
evaluation
 
for 2020,
item on the
 
agenda of that
 
Board meeting.
In execution
 
of article
 
7:97,
§
1 of the
 
Belgian
 
Code of
 
Companies
 
and
Associations,
 
decisions
 
or transactions
 
in execution
 
of a decision
 
of
the Board
 
of Directors
 
of a listed
 
company
 
that concern
 
a related
party are
 
subject
 
to a special
 
procedure.
 
This is
 
the case
 
for the
agreement
 
by which
 
Proximus
 
becomes
 
a business
 
inducer
 
for Banx
banking
 
service
 
powered
 
by Belfius.
 
Such decisions
 
or transactions
have been
 
submitted
 
to a prior
 
assessment
 
by a committee
 
of three
independent directors.
 
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In accordance
 
with
 
the article
 
7:96 combined
 
with article
 
7:97 of
the Belgian
 
Code of
 
Companies
 
and Associations,
 
the Board
members
 
representing
 
the Belgian
 
State did
 
not take
 
part in
 
the
deliberation
 
and decision
 
on the
 
item Banx
 
Project,
 
item on the
agenda
 
of the
 
Board
 
of Directors
 
meeting
 
of 29
 
April 2021.
Proximus
 
has contractual
 
relationships
 
and provides
 
also telephony,
Internet,
 
digital
 
and/or
 
ICT services
 
to many
 
of the
 
companies
 
in
which Board
 
members
 
have an
 
executive
 
or non-
 
executive
mandate.
 
These
 
transactions
 
take
 
place in
 
the ordinary
 
course of
business and at
 
arm’s length.
Activities
 
Report
of
 
the
 
Board
 
and
 
Committee
 
meetings
In 2021,
 
nine
 
meetings
 
of the Board
 
of Directors
 
were held,
five meetings
 
of the
 
Audit
 
& Compliance
 
Committee,
 
six of
the Nomination
 
& Remuneration
 
Committee
 
and two
 
of the
Transformation & Innovation
 
Committee.
A list
 
with the
 
attendance
 
of the
 
members
 
is included
 
in the
 
Remuneration
report.
Insider
 
trading
 
and
 
market
 
manipulation
(market abuse)
In order
 
to comply
 
with
 
legislation
 
on insider
 
trading
 
and market
manipulation,
 
Proximus
 
adopted
 
a Dealing
 
Code
 
prior to the
Initial
 
Public
 
Offering.
 
This
 
Code aims
 
to create
 
awareness
 
about
possible
 
improper
 
conduct
 
by employees,
 
officers
 
and Directors
and possible
 
sanctions.
 
This Dealing
 
Code has
 
been widely
communicated
 
and is
 
available
 
to all
 
employees.
 
A list
 
of
key persons
 
is kept,
 
and all
 
Directors
 
and key
 
employees
 
were
requested
 
to sign
 
an affidavit
 
that they
 
had read,
 
understood
 
and
agreed
 
to comply
 
with the
 
Dealing
 
Code. Closed
 
periods
(including
 
prohibited
 
periods)
 
are defined
 
and any
 
deal must
 
be
communicated
 
to and
 
cleared
 
by the
 
Director
 
Internal
 
Audit
 
& Risk
 
Management
before
 
transaction
 
(see “Compliance”
 
section).
Evaluation
 
of
 
the
 
Board
The Board of Directors
 
organized a self-assessment
 
at the end
 
of
2021 together
 
with external
 
partner
 
Guberna.
 
This evaluation
 
will
 
be
concluded in 2022.
 
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Executive
Committee
Chief Executive Officer
In its
 
meeting
 
of November
 
27, 2019,
 
the Board
 
appointed
 
Mr.
Guillaume
 
Boutin
 
as new
 
CEO. The
 
CEO is entrusted
 
with day-
to-day
 
management
 
and reports
 
to the
 
Board of
 
Directors.
 
The
Board
 
has moreover
 
delegated
 
broad
 
powers
 
to the
 
CEO.
Executive
 
Committee
 
members
The members
 
of the
 
Executive
 
Committee
 
are appointed
 
and
dismissed
 
by the
 
Board of
 
Directors
 
at the
 
proposal
 
of the
 
CEO,
after
 
consultation
 
of the
 
Nomination
 
& Remuneration
 
Committee.
The powers of the Executive
 
Committee are determined
 
by the
CEO. The Executive
 
Committee’s
 
role is to assist the CEO in the
exercise of his
 
duties.
The Executive
 
Committee
 
aims to
 
decide
 
by consensus,
 
but in
 
the
event of
 
disagreement,
 
the view
 
of the
 
CEO will
 
prevail.
The Executive
 
Committee
 
generally
 
meets on
 
a weekly
 
basis.
In 2021, the Executive Committee,
 
in addition to the CEO, was
composed of the
 
following members:
The contract
 
of Mr.
 
Guillaume
 
Boutin
 
is a renewable
 
six-year
 
fixed
term contract that
 
started on 1
 
December 2019.
The AGM
 
of 15
 
April 2020
 
extended
 
his mandate
 
as Board
member until the
 
AGM to be
 
held in 2024.
Name
Age
Position
Jim Casteele
50
Chief Consumer Market officer
Anne-Sophie Lotgering
47
Chief Enterprise Market Officer
Dirk Lybaert
61
Chief Corporate Affairs
 
Officer and
Secretary General
Antonietta Mastroianni
1
48
 
Chief Digital & IT Officer
Mark Reid
2
50
 
Chief Financial Officer
Geert Standaert
51
 
Chief Technology Officer
Renaud Tilmans
53
 
Chief Customer Operations Officer
Jan Van Acoleyen
59
 
Chief Human Resources Officer
1
Antonietta Mastroianni joined Proximus in April
 
2021
2
Mark Reid joined Proximus in May 2021
Diversity
 
at the
 
Executive
 
Committee
The diversity
 
characteristics
 
for the
 
Executive
 
Committee
 
can be
visualized as follows:
2 women
Gender
7 men
5 Belgian
2 French
Nationality
1 Italian
1 Scottish
 
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Board
 
of
 
Auditors
Composition
The Board
 
of Auditors
 
of the
 
company
 
is composed
 
as follows:
Deloitte
 
Auditors
 
SRL, represented
 
by Mr.
 
Geert
 
Verstraeten
also Chairman of
 
the Board of Auditors
Mr. Jan
 
Debucquoy,
 
Member
 
of the
 
Court of
 
Auditors
Mr. Pierre
 
Rion, Member
 
of the
 
Court
 
of Auditors
(until 3 February 2021)
Mr. Dominique
 
Guide,
 
Member
 
of the
 
Court of
 
Auditors
(as of 3 February
 
2021)
CDP Petit
 
& Co
 
SRL, represented
 
by Mr.
 
Damien
 
Petit.
Deloitte
 
Auditors
 
SRL,
 
represented
 
by Mr.
 
Geert
 
Verstraeten
 
and
CDP Petit
 
& Co SRL,
 
represented
 
by Mr.
 
Damien Petit
are responsible
 
for the
 
audit
 
of the
 
consolidated
 
financial
 
statements
of Proximus
 
and its
 
subsidiaries.
 
Deloitte
 
Auditors
 
SRL is
 
also
responsible
 
for the
 
review
 
of non-financial
 
performance
 
indicators.
The other
 
members
 
of the Board
 
of Auditors
 
are, together
 
with
Deloitte,
 
entrusted
 
with the
 
audit
 
of the
 
non-consolidated
financial
 
statements
 
of Proximus
 
as parent
 
company.
The mandates
 
of Deloitte
 
Auditors
 
SRL and
 
CDP
 
Petit &
 
Co SRL
 
will
expire
 
at the
 
annual
 
General
 
Shareholders
 
Meeting
 
in 2022.
Additional
 
fees
 
paid
 
to the
 
auditors
In accordance
 
with
 
the provisions
 
of article
 
3:65
§
2 of the
 
Belgian
Code
 
of Companies
 
and Associations,
 
Proximus
 
declares
 
the
supplementary
 
fees that
 
it granted
 
during
 
the 2021
 
financial
 
year
 
to
two auditors,
 
members
 
of the
 
Joint
 
Auditors:
 
Deloitte
 
Auditors
Amount spent
 
by the Group
 
for non-mandate
 
fees for
Deloitte Auditors CRL
(in
 
)
 
Auditor
 
Network of auditor
SRL and
 
CDP Petit
 
& Co SRL.
Other mandatory
audit missions
171,370.88
 
875,000
The Group
 
spent
 
an amount
 
of
 
1,144,052.79
 
during
 
the year
Tax advice
2021
 
for non-mandate
 
fees
 
for Deloitte
 
Auditors
 
SRL, the
 
Group’s
Other missions
55,436.10
42,245.81
auditors.
 
This
 
amount
 
is detailed
 
as follows
Total
226,806.98
917,245.81
The Group
 
also spent
 
an amount of 1,618
 
during the year
 
2021
 
for
non-mandate fees paid
 
to
 
CDP Petit
 
&
 
Co
 
SRL. This
 
amount is
detailed as follows:
Amount spent
 
by the Group
 
for non-mandate
 
fees for
CDP Petit & Co SRL
(in
 
)
 
Auditor
Other mandatory
audit missions
Tax advice
Other missions
1,618
Total
 
1,618
 
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2021
I
92
Members
 
of
 
the
 
Board
 
of
 
Directors
Guillaume
 
Boutin
Mr. Guillaume Boutin
has been Chief Executive Officer since 1
st
December 2019 and presides over the
Executive Committee of
 
Proximus. He is
 
Chairman of the
 
Board of Directors
 
of BICS and
 
TeleSign, as well
 
as
member of the Proximus Art Board.
Previously, Mr. Boutin
 
joined the Proximus
 
Executive Committee as
 
Chief Consumer
 
Market Officer in
August 2017.
Mr. Boutin started his
 
career joining a web
 
start-up. He then joined
 
SFR where he successively
 
held
various positions in strategy, finance and marketing
 
until he joined Canal+ Group in 2015 as Chief
Marketing Officer.
He holds
 
a “baccalauréat
 
scientifique”,
 
followed by a
 
degree in telecommunications
 
engineering (Telecom
Sud Paris “Programme Grande Ecole”, 1997) and a
 
degree from HEC Paris, “Programme Grande Ecole”,
obtained in 1999.
Stefaan
 
De Clerck
Mr. Stefaan De
 
Clerck
is Chairman of
 
the Proximus Board of
 
Directors since 20
 
September 2013.
He chairs the
 
Proximus Joint Committee,
 
the Proximus Pension
 
Fund and the
 
Proximus Art ASBL/VZW.
 
He
is board member of the Proximus Foundation
 
and of Connectimmo.
He is also member
 
of the Orientation
 
Council of Euronext,
 
of the Strategic Committee
 
of FEB/VBO, of
 
the
 
BBR
(Benelux Business Roundtable)
 
and of the Bureau of
 
Eurometropole Lille-Kortrijk-Tournai.
Before Proximus, he served
 
as a Member of
 
the Belgian Parliament
 
from October 1990
 
until October
2013. From June 1995 until April 1998 and from
 
December 2008 until December 2011 he was
 
the
Belgian Minister of Justice. From 1999 until 2003
 
he was President of CD&V, the Flemish Christian-
Democratic Party.
He was the Mayor of
 
the city of Kortrijk (Belgium)
 
from January 2001
 
until end-December 2012. Mr.
 
De
 
Clerck
holds a Master’s degree in Law from
 
the Catholic University of Leuven.
 
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2021
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93
Karel
 
De Gucht
Mr. Karel De Gucht
, State Minister, was
 
the European Commissioner
 
for Trade from February
 
2010 until 31
October 2014, where he
 
was pivotal in negotiating,
 
concluding and managing
 
several European Free Trade
and Investment Agreements worldwide.
Previously he served as Belgium’s Minister of Foreign Affairs
 
from 2004 to 2009, Deputy Prime Minister
from 2008 to 2009,
 
and as European
 
Commissioner for International
 
Cooperation, Humanitarian Aid
 
and
Crisis Response from 2009 to 2010.
Currently he is the
 
President of the Brussels
 
School of Governance at
 
the Vrije Universiteit Brussel
 
(VUB)
– his alma mater
 
(Masters of Laws,
 
1976) and where he
 
teaches European Law.
 
He serves as a
 
Director on
the Boards of ArcelorMittal
 
SA, of EnergyVision,
 
Youston (Chair), Sprimoglass
 
and is a Member
 
of the
Advisory Board of CVC Capital Partners.
He is also the manager
 
of La Macinaia, a
 
family-run wine producing company
 
in the Chianti region (Italy).
Pierre
 
Demuelenaere
Until 31 August 2015,
Mr. Pierre Demuelenaere
was President and
 
CEO of IRIS (Image
 
Recognition
Integrated Systems), a
 
company he co-founded
 
in 1987 to commercialize
 
the results of his
 
PhD.
Mr. Demuelenaere
 
has more
 
than 30
 
years of experience
 
in Imaging and Artificial
 
Intelligence. He
 
has
accumulated
 
solid experience
 
in technology
 
company management,
 
R&D management
 
and setting up
international
 
partnerships
 
with US
 
and Asian
 
companies
 
(HP, Kodak,
 
Adobe,
 
Fujitsu,
 
Samsung, Canon,
 
etc.).
Throughout the years, he
 
remained very involved
 
in defining the R&D
 
vision of IRIS and contributed
 
to the
development of new technologies, new products
 
and the filing of a large number
 
of patents.
In 2013, Mr.
 
Demuelenaere successfully
 
negotiated the acquisition
 
of IRIS Group
 
by Canon. The
 
company
 
has
now become a member of the Canon Group.
Mr. Demuelenaere holds
 
a Civil Engineering
 
degree in Microelectronics
 
from the UCLouvain
 
and received his
PhD in Applied Sciences in 1987.
He has received
 
the “2001 Manager
 
of the Year”
 
award and the
 
“2002 Entrepreneur of
 
the Year” award.
 
In
2008, Data News elected him “ICT personality of
 
the year”.
Amongst his other activities, in 2018 and 2019, he was Chairman of the
 
Board of Directors and CEO
 
ad
interim of EVS Broadcast
 
Equipment. He is also member
 
of the Board of
 
Directors of Guberna and
Tessares, as wel as Professor of
 
management at the UCLouvain. He served
 
for 7 years as a
 
director on the
Board of BSB, an insurance
 
and banking software company,
 
plus 23 years on the Board
 
of Pairi Daiza and
 
for
10 years on the Board of e-capital, a Venture
 
Capital Fund.
 
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2021
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Martin
 
De Prycker
Mr. Martin De Prycker
is a managing partner
 
of the Qbic Fund, an
 
inter-university fund of 100
 
million
euro, supporting university spin-off companies in
 
Belgium.
Mr. De Prycker was CEO of Barco between 2002 and
 
2009. Under his leadership he focused on, and made
the company grow in
 
markets using displays
 
such as the medical,
 
digital cinema, control
 
and airline
 
industry,
and spinning off the non-core
 
product lines such as graphics,
 
textile and subcontracting.
Prior to that, he was CTO and member of the Executive
 
Committee of Alcatel-Lucent. Before becoming
CTO of Alcatel-Lucent,
 
Mr. De
 
Prycker was
 
responsible for
 
establishing the
 
company’s worldwide
 
market
leadership in the
 
broadband access
 
market. Under his
 
leadership, ADSL
 
was transformed from
 
a research
project into a multi-billion dollar business for
 
Alcatel-Lucent.
Between 2009 and 2013 Mr. De Prycker was CEO
 
of Caliopa, a startup of UGent/IMEC in silicon photonics,
allowing the transport
 
of hundreds of
 
Gbps on optical fiber.
 
Caliopa was acquired
 
by Huawei in
 
2013.
He is also a
 
member of the
 
Board of Directors
 
of several companies,
 
including EVS, Sentiance,
 
Molecubes,
Morrow
 
and Faktion and Chairman of the Board of
 
Calltic and Arkite.
Mr. De Prycker holds
 
a Ph.D. in Computer
 
Sciences, a Master
 
of Science in
 
Electronics from the
 
University
 
of
Ghent, as well as an MBA from the University
 
of Antwerp.
Martine
 
Durez
Mrs. Martine Durez
served as Chief Financial and Accounting Officer
 
at bpost until January 2006, when she
became Chairman of the Board,
 
a position she held until
 
June 2014. She is a
 
member of the Board of
Directors of several companies, including
 
EthiasCo and SNCB (Belgian Railways).
Mrs. Durez was also
 
Professor of Financial
 
Management and Analysis
 
at the University of
 
Mons-Hainaut
until 2000. She has also served as a member of
 
the High Council of Corporate Auditors and the
Committee of Accounting Standards and as a special
 
emissary at the Cabinet for Communication
 
and
State Companies.
She has been a
 
member of the
 
Royal Academy of Belgium
 
(Technology and Society
 
Action) since 2010.
 
She
served as a regent of the National Bank of Belgium.
Mrs. Durez graduated
 
as a Commercial
 
Engineer and holds
 
a PhD in
 
Applied Economics from
 
the
University of Brussels (ULB).
 
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2021
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Ibrahim
 
Ouassari
Mr. Ibrahim Ouassari
is the founder and CEO of MolenGeek. After
 
an atypical and self-taught career in
technology, Ibrahim has established himself as an accomplished
 
consultant in the sector since 1999. He
then left the
 
consulting industry
 
to launch his
 
entrepreneurial career
 
with several companies
 
and worked
with clients from some of the largest and
 
most renowned companies.
It was his experience that led him to launch MolenGeek
 
in May 2015, an inclusive international
technological ecosystem that makes the “TechWorld” accessible.
 
It is at that moment that Ibrahim took up
one of his greatest
 
challenges: to merge
 
two worlds that do
 
not meet. On the
 
one hand, unsuspected
 
talents
from working-class neighborhoods and on
 
the other hand, the world of
 
technology.
MolenGeek is an international solution that brings new
 
perspectives to thousands of young people. Ibrahim
combined his entrepreneurial tech experience and his
 
knowledge of the field to reveal talents by introducing
them to new technologies.
 
He is supported by
 
the greatest names
 
in the tech industry,
 
cited in
 
Davos by
Sundar Pichai, CEO of
 
Google, after his visit
 
to MolenGeek, and was
 
also selected by the
 
latter in
 
WIRED UK
as “innovator who
 
is building a
 
better future for
 
2021”. Google, Facebook,
 
Salesforce, Amazon,
 
Vmware or
even Proximus are investing in MolenGeek.
In 2018 Ibrahim was part as an expert of Horizon
 
2020 NMBP Advisory Group for DG Research &
Innovation of the European
 
Commission, whose mission
 
is to help us
 
notably to ensure impact
 
of the R&I
investments 2021-2027 in the fields
 
of industrial technologies and
 
improve societal involvement.
Catherine
 
Rutten
Mrs. Catherine Rutten
is Vice-President International, Government Affairs
 
& Public Policy at Vertex
Pharmaceuticals since 1 July 2020. From September 2013
 
till end of June 2020 she was CEO of
pharma.be, the association of innovative biopharmaceutical
 
companies in Belgium. From 2003 to 2013 she
has been Member of
 
the Council of
 
the Belgian Institute
 
for Postal Services
 
and Telecommunications, the
Belgian regulator for
 
electronic communications,
 
for the postal
 
market, the electromagnetic
 
spectrum
 
of
radio frequencies, and media regulator in the Brussels-Capital
 
Region. Prior to that, she worked as Director
Regulatory Affairs at
 
the Belgian branch
 
of BT. She
 
started her career
 
as a lawyer, member
 
of the
 
Brussels
Bar, in 1994.
She is member of
 
the board of Women
 
on Board. Mrs. Rutten
 
holds a Degree
 
in Law from the
 
University of
Leuven and the University of Namur, a LL.M. in intellectual
 
property law from the London School of
Economics and Political Science and
 
a LL.M. in European Law from
 
the College of Europe.
 
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Isabelle
 
Santens
Mrs. Isabelle Santens
was the previous owner and Design Director of
 
Andres NV, a Belgian fashion
company that designs,
 
produces and distributes
 
the ladies clothing
 
brands Xandres, Xandres
 
Gold and
Hampton Bays.
After studying geography and
 
economics at the KUL,
 
she joined Andres NV
 
in 1985, became Director
 
of
Design and then CEO in 2000 until
 
she sold the company to a French
 
listed Company in 2016.
She turned
 
Andres NV
 
from a mere
 
production-oriented
 
facility
 
into a sales
 
and marketing-driven
 
fashion
company
 
with
 
a focus
 
on building
 
strong
 
brands,
 
opening
 
pilot stores
 
and building
 
a strong
 
e-commerce
 
site.
She is now active
 
in several boards
 
and in cultural institutions.
Joachim
 
Sonne
Mr. Joachim Sonne
has over 20 years’ experience in Investment Banking.
 
He is currently a Senior Advisor
 
to
AustralianSuper and board advisor to a number of
 
technology companies. Until September 2019, Mr. Sonne
served as Managing Director and Co-Head of the EMEA
 
Telecom, Media and Technology Advisory
 
Group at
J.P. Morgan in London. He joined J.P. Morgan in 1998,
 
worked from 2006 until 2010 in the Communications
Group in New York
 
and between 2010
 
to 2011 for
 
the German mergers
 
and acquisitions
 
practice of J.P.
Morgan in Frankfurt.
Mr. Sonne
 
graduated
 
with distinction
 
from the
 
European School
 
of Management–EAP,
 
Paris-Oxford-Berlin
 
and
holds a
 
European Master
 
of Management,
 
a Diplom-Kaufmann
 
and a
 
Diplôme de
 
Grande Ecole.
Agnès
 
Touraine
Mrs. Agnès Touraine
is CEO of
 
Act III Consultants,
 
a management
 
consulting firm dedicated
 
to digital
transformation.
Previously, Mrs. Touraine
 
served as Chairman
 
and CEO of
 
Vivendi-Universal Publishing
 
(video games and
publishing), a $4.7 billion company, after having spent
 
10 years with the Lagardère Group as Head of
Strategy and CEO of the mass market division
 
and five years with McKinsey.
She graduated from
 
Sciences-Po Paris
 
and Columbia University
 
(MBA). She sits
 
on the Boards
 
of Rexel
 
SA,
Tarkett SA, GBL, SNCF (since
 
January 2020) and previously
 
Darty Plc as well as
 
Neopost SA.
She is also
 
sitting on
 
non-profit
 
organizations
 
board such
 
as The French-American
 
Foundation
 
and IDATE.
Until July 2019
 
she has been
 
Chairwoman of the
 
Board of Directors
 
of IFA (French
 
Governance Institute).
 
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2021
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Catherine
 
Vandenborre
Mrs. Catherine Vandenborre
is Chief Financial Officer at Elia. Previously, she
 
was a member of the
Executive Committee
 
of APX-ENDEX,
 
the Anglo-Dutch
 
gas and electricity
 
exchange based
 
in Amsterdam,
and CEO of Belpex. She began her career
 
at Coopers & Lybrand as an auditor.
Mrs. Vandenborre is
 
member of various
 
Boards, including Contassur,
 
an insurance company.
She holds a degree
 
in Business Economics
 
from the UCL
 
as well as degrees
 
in Tax Law and
 
Financial Risk
Management.
Luc
 
Van den
 
hove
Mr. Luc Van den hove
is President and Chief Executive Officer (CEO)
 
of imec since July 1, 2009. Before
holding this position, he was Executive Vice President and
 
Chief Operating Officer. He joined imec in 1984,
starting his research career
 
in the field of
 
interconnect technologies. In
 
1988, he became manager
 
of imec’s
micro-patterning group; in 1996, Department Director of Unit
 
Process Step R&D; and in 1998, Vice-
President of the
 
Silicon Process and
 
Device Technology Division.
 
In January 2007,
 
he was appointed
 
as imec’s
Executive Vice President & Chief Operating Officer
 
(COO).
Under his guidance imec has grown to an organization
 
with a staff of around 5,000 people, operating with
an annual budget of around
 
€ 700M (2021) and with offices
 
in Belgium, the Netherlands, US,
 
Japan,
 
Taiwan,
China and India.
Currently,
 
Mr.
 
Van
 
den
 
hove
 
is professor
 
of Electrical
 
Engineering
 
at the
 
University
 
of Leuven.
 
He is
 
also
 
a member
 
of
the
 
Technology
 
Strategy
 
Committee
 
of ASML.
 
He has
 
authored
 
or co-authored
 
more
 
than
 
150
 
publications
 
and
conference
 
contributions.
 
He
 
is a
 
frequently
 
solicited
 
speaker
 
on
 
technology
 
trends
 
and
 
applications
 
for
nano-electronics
 
at
 
major
 
top
 
conferences.
 
He
 
has
 
presented
 
more
 
than
 
50
 
keynote
 
presentations.
Mr. Van den hove
 
received his Ph.
 
D. in Electrical Engineering
 
from the University of
 
Leuven, Belgium.
Paul
 
Van
 
de Perre
Mr. Paul Van de Perre
is co-founder of GIMV (a venture capital firm listed on Euronext) and was formerly a
director
 
of
 
Sidmar
 
(Arcelor-Mittal), Thomassen
 
Drijver Verblifa
 
Belgium, Sunparks
 
(a
 
division
 
of
 
Pierre
 
&
Vacances), Accentis and other companies.
He
 
is currently
 
director
 
of Greenbridge
 
Incubator
 
(University
 
of Ghent),
 
Scientific
 
Investment
 
Board
 
(University
 
of
Brussels),
 
Member
 
of Future
 
Lab
 
(a subsidiary
 
of bpost)
 
and
 
member
 
of the
 
Investment
 
Committee
 
of Participatie
Maatschappij
 
Vlaanderen
 
(PMV),
 
the
 
Welvaartsfonds
 
(PMV)
 
and
 
Parinsu
 
(added
 
value
 
to
 
scale-ups).
Mr. Van de Perre
 
is CEO of Five
 
Financial Solutions (a
 
corporate finance house)
 
and Mabys (a consultant
 
in
start ups). He is a member of the advisory Board of
 
several high-tech start-ups such as Mu-Design,
Coriotech, and Avia-Gis.
 
He holds a
 
Master’s degree in
 
Economics and several
 
postgraduate degrees.
 
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2021
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98
Members
 
of
 
the
 
Executive
 
Committee
Guillaume
 
Boutin
Mr. Guillaume Boutin
has been Chief Executive Officer since 1
st
December 2019 and presides over the
Executive Committee of
 
Proximus. He is
 
Chairman of the
 
Board of Directors
 
of BICS and
 
TeleSign, as well
 
as
member of the Proximus Art Board.
Previously, Mr. Boutin
 
joined the Proximus
 
Executive Committee as
 
Chief Consumer
 
Market Officer in
August 2017.
Mr. Boutin started his
 
career joining a web
 
start-up. He then joined
 
SFR where he successively
 
held
various positions in strategy, finance and marketing until
 
he joined Canal+ Group in 2015 as Chief
Marketing Officer.
He holds
 
a “baccalauréat
 
scientifique”,
 
followed by a
 
degree in telecommunications
 
engineering (Telecom
Sud Paris “Programme Grande Ecole”, 1997) and a
 
degree from HEC Paris, “Programme Grande Ecole”,
obtained in 1999.
Jim Casteele
Mr. Jim
 
Casteele
is Chief
 
Consumer
 
Market
 
Officer
 
of Proximus
 
since March
 
1
st
, 2020.
 
He already
 
assumed
 
this
post ad interim
 
on 2 December
 
2019.
He started
 
his career
 
at Siemens
 
Atea
 
and joined
 
the former
 
Belgacom
 
Group
 
in 1997.
 
Before
 
being
appointed
 
as Director
 
Consumer
 
Products
 
& Solutions
 
and Innovation
 
in January
 
2017, he
 
held several
management
 
and director
 
positions
 
within
 
the Proximus
 
Group
 
in various
 
disciplines
 
such as
 
strategy
 
&
innovation, product management,
 
partnerships and pricing.
He is
 
Board
 
member
 
of Proximus
 
Luxembourg,
 
and Chairman
 
of the
 
Boards
 
of Proximus
 
Media
 
House,
Scarlet Belgium and
 
Mobile Vikings.
Mr. Casteele
 
holds
 
a degree
 
as Civil
 
Engineer
 
in Electronics
 
(University
 
of Ghent)
 
as well
 
as a
 
degree in
General Management (Vlerick
 
Leuven Ghent Management
 
School).
 
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2021
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99
Anne-Sophie
 
Lotgering
Mrs.
 
Anne-Sophie
 
Lotgering
is Proximus’
 
Chief
 
Enterprise
 
Market
 
Officer
 
since July
 
2020.
Previously,
 
she was
 
Chief
 
Marketing
 
and Digital
 
Officer,
 
Customer
 
Marketing
 
and Innovation
 
at Orange
Business
 
Services.
 
During
 
her career
 
with the
 
Orange
 
Group,
 
Anne-Sophie
 
held various
 
senior
 
positions
 
in
business-to-business
 
sales,
 
marketing
 
and strategy
 
for more
 
than 15
 
years.
 
She was
 
also General
 
Manager
 
for
Central & Eastern
 
Europe at Microsoft
 
Services.
She is
 
Board
 
member
 
of Proximus
 
Luxembourg,
 
Belgian
 
Mobile
 
ID and
 
Chairwoman
 
of Proximus
 
ICT.
 
Mrs.
Lotgering is a graduate
 
of the Sorbonne
 
in Paris.
Dirk
 
Lybaert
Mr.
 
Dirk
 
Lybaert
is Chief
 
Corporate
 
Affairs
 
Officer
 
& Secretary
 
General
 
of Proximus
 
and has
 
the following
responsibilities:
 
Legal,
 
Regulatory,
 
Public
 
Affairs,
 
Group Communications,
 
Internal
 
Audit
 
& Risk
 
Management,
Security
 
Governance
 
& Investigations,
 
Corporate
 
Prevention
 
& Protection,
 
Reputation
 
& Sustainability
 
and Data
Protection.
Mr. Lybaert
 
was Secretary
 
General
 
of Belgacom
 
from
 
2005 to
 
2014.
 
From 1995
 
until
 
2007, he
 
was an
assistant
 
at the
 
Law Faculty
 
of the
 
University
 
of Brussels
 
for the
 
“Named
 
Contracts”
 
course.
 
From 2000
 
to
2005 he held
 
different positions
 
within the legal
 
department of Belgacom.
Prior
 
to joining
 
Belgacom,
 
Mr. Lybaert
 
served
 
as an officer
 
with the
 
Federal
 
Police,
 
where
 
he reached
 
the
position of Lieutenant-Colonel
 
and Director of
 
the Anti-Terrorism
 
Program.
Mr. Lybaert
 
is a
 
member
 
of the
 
Board
 
of Directors
 
of BICS,
 
TeleSign,
 
Proximus
 
Foundation,
 
Proximus
 
Art,
Proximus
 
Opal and
 
MWingz.
 
He also
 
has external
 
mandates
 
at Aquafin,
 
Bednet and
 
Voka.
Mr. Lybaert
 
holds
 
a Master’s
 
degree
 
in Criminology
 
from the
 
University
 
of Ghent,
 
Law from
 
the University
 
of
Brussels
 
(VUB)
 
and Business
 
Law from
 
the University
 
of Antwerp,
 
and degrees
 
in Advanced
 
Management
 
and
Social and Military Sciences.
 
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Proximus Group I
Integrated annual report
 
2021
I
100
Antonietta
 
Mastroianni
Mrs.
 
Antonietta
 
Mastroianni
is Chief
 
Digital
 
& IT
 
Officer
 
since April
 
2021.
Mrs.
 
Antonietta
 
Mastroianni
 
has been
 
a member
 
of Proximus
 
Executive
 
Committee
 
since April
 
2021.
 
Before
joining
 
Proximus,
 
she was
 
Group
 
CIO and
 
CDIO
 
at the
 
Danish
 
TDC, Head
 
of IT
 
and Business
 
Partner
 
at Swiss
Sunrise, and she
 
had several roles
 
in Swisscom and
 
H3G Italy.
She is
 
an influential
 
IT leader
 
with
 
20 years
 
of international
 
Telecom
 
experience
 
in leveraging
 
technology
 
to
 
drive
organizational
 
growth,
 
performance
 
and profitability.
 
She focuses
 
on digital
 
and agile
 
transformation,
 
the impact
of leading-edge
 
technology
 
on business,
 
technology
 
and product
 
innovation
 
as well
 
as IT and
 
Telco
transformation.
 
She has
 
worked
 
in different
 
European
 
countries
 
(Italy,
 
Switzerland,
 
Denmark
 
and Belgium)
 
and is
Council
 
Member
 
of Etis,
 
for which
 
she previously
 
acted as
 
Member of
 
the Management
 
Board. Currently
 
she
also holds the
 
VC seat in
 
the Board of
 
Directors of
 
Gaia-X.
Mrs. Mastroianni
 
studied
 
Computer
 
and Automation
 
Engineering
 
at university
 
of Siena
 
and she is
 
a member of
the Order of
 
Engineers of the
 
province of Caserta.
Mark Reid
Mr. Mark
 
Reid
is Proximus’
 
Chief
 
Financial
 
Officer
 
since May
 
2021.
Before
 
joining
 
Proximus,
 
Mr. Reid
 
served
 
as the
 
Chief Financial
 
Officer
 
of the
 
Central
 
European
 
Region
 
of
Liberty
 
Global,
 
based
 
in Zurich
 
for 5
 
years.
 
Prior to
 
that role
 
he was
 
Deputy
 
CFO at
 
Virgin
 
Media in
 
London
 
also
part
 
of the
 
Liberty
 
Global
 
family.
 
He has
 
held
 
Senior
 
Financial
 
roles
 
in International
 
Telecom,
 
Digital
 
Media
 
&
Travel
 
companies
 
for over
 
20 years
 
and has
 
worked
 
in Switzerland,
 
UK & the
 
US.
He is
 
Board
 
member
 
of BICS,
 
TeleSign
 
and the
 
Proximus
 
Pension
 
Fund.
Mr. Reid
 
holds
 
an Honors
 
Degree
 
in Aeronautical
 
Engineering
 
from Glasgow
 
University.
 
He’s a
 
Chartered
Accountant
 
with
 
the certification
 
from the
 
Chartered
 
Institute
 
of Management
 
Accountants
 
(CIMA).
Geert
 
Standaert
Mr. Geert
 
Standaert
is Chief
 
Technology
 
Officer.
 
He has
 
been a
 
member
 
of the
 
Executive
 
Committee
 
since
March
 
2012.
 
In this
 
function,
 
he currently
 
is responsible
 
for the
 
Network
 
Business
 
Unit,
 
overseeing
 
all
Network,
 
Telco
 
Platform
 
& Infrastructure,
 
Service
 
Engineering
 
& Operations
 
for the
 
Group
 
including
 
Carrier
 
&
Wholesale activities.
Mr. Standaert
 
joined
 
the Group
 
in 1994
 
and held
 
director
 
positions
 
in various
 
disciplines,
 
including
 
IT, Infrastructure
Operations
 
and
 
Data
 
Operations
 
before
 
becoming
 
Vice
 
President
 
Customer
 
Operations
 
in 2007.
Mr. Standaert
 
is a member
 
of the
 
Board of
 
Directors
 
of Synductis,
 
Fiberklaar,
 
Unifiber
 
and OLV
 
hospital
 
Aalst. Mr.
Standaert
 
holds a
 
Master’s
 
degree
 
in Civil
 
Engineering
 
from the
 
University
 
of Ghent
 
(RUG).
 
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Proximus Group I
Integrated annual report
 
2021
I
101
Renaud
 
Tilmans
Mr.
 
Renaud
 
Tilmans
joined
 
the Executive
 
Committee
 
as Chief
 
Customer
 
Operations
 
Officer
 
of Proximus
 
in
 
May
2014.
 
In this
 
function,
 
he works
 
with
 
his teams
 
to align
 
procedures
 
and create
 
synergies
 
between
 
the
operational
 
after-sales
 
activities
 
of the
 
different
 
Business
 
Units.
 
Mr. Tilmans
 
is also
 
in charge
 
of transversal
growth opportunities in
 
the field of
 
eHealth and eEducation.
Mr. Tilmans
 
joined
 
Belgacom
 
in 1993.
 
He held
 
various
 
director
 
positions
 
in the
 
field
 
of ICT
 
and networks
before
 
becoming
 
Vice
 
President
 
Customer
 
Operations
 
of the
 
Business
 
Unit Service
 
Delivery
 
Engine
 
&
Wholesale in 2012.
Within
 
the Proximus
 
Group,
 
Mr. Tilmans
 
is since
 
26 September
 
2019 Chairman
 
of the
 
Board of
 
Directors
 
of
Proximus Luxembourg.
 
He is also
 
member of the
 
Board of Fiberklaar.
Mr. Tilmans
 
is a
 
civil
 
engineer
 
from
 
the UCL
 
(Louvain-la-Neuve)
 
and holds
 
degrees
 
in IT
 
and management.
Jan
 
Van
 
Acoleyen
Mr. Jan
 
Van Acoleyen
is Chief
 
Human
 
Resources
 
Officer
 
of Proximus.
 
He joined
 
Proximus
 
in May
 
2016, after
 
a
long
 
career
 
with
 
various
 
international
 
HR management
 
roles,
 
mainly
 
in high-tech
 
companies
 
such as
 
Alcatel,
Agfa-Gevaert
 
and Barco.
 
As a
 
HR leader,
 
he acquired
 
extensive
 
experience
 
in organizational
 
and cultural
transformations.
Mr. Van
 
Acoleyen
 
has a
 
Master’s
 
degree
 
in Educational
 
Studies
 
from Leuven
 
University
 
and an
 
Executive
 
MBA
from the Antwerp
 
Management School
 
(University of Antwerp).
He is an independent
 
member of
 
the Board
 
of Directors
 
of SD Worx
 
and Member of
 
the Board of
Experience@Work.
 
Within
 
the Proximus
 
Group he
 
is board
 
member
 
of BICS,
 
MWingz,
 
Proximus
 
Foundation,
Proximus
 
Pension
 
Fund and
 
is Chairman
 
of the
 
Remuneration
 
Committee
 
of BICS
 
as well
 
as Chairman
 
of the
Board of Be-Mobile.
 
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Proximus Group I
Integrated annual report
 
2021
I
102
Compliance
Role
 
of compliance
 
at
 
Proximus
Acting
 
with integrity,
 
compliance
 
and honesty
 
is an essential
prerequisite
 
for the
 
success
 
of the
 
Proximus
 
Group.
 
We are
 
striving
 
to
strengthen
 
the trust
 
of our
 
customers,
 
our business
 
partners,
 
and
other
 
stakeholders
 
in our
 
Group
 
by treating
 
each other
 
fairly.
Compliant
 
behavior
 
is the
 
basis for
 
this and
 
must be a
 
matter of
course
 
for all
 
Group
 
employees.
 
One of our
 
Company’s
 
main tasks
 
is
to further enhance
 
awareness of this.
The Proximus
 
Group
 
Compliance
 
Office
 
is responsible
 
for
coordinating
 
compliance
 
activities
 
within
 
the Proximus
 
Group,
 
and
aims
 
to promote,
 
at all
 
levels,
 
ethical
 
conduct,
 
respect
 
of values
 
and
compliance
 
with laws
 
and internal
 
and external
 
rules and
policies,
 
prevent
 
unlawful
 
or unethical
 
behavior
 
and ensures
 
an
appropriate
 
response
 
in case
 
such behavior
 
occurs.
All employees
 
must perform
 
their daily
 
activities
 
and achieve
 
their
business
 
objectives
 
in accordance
 
with the
 
strictest
 
ethical
standards
 
and principles,
 
using the
 
Proximus
 
Code of
 
Conduct,
which
 
is reflected
 
in multiple
 
Group
 
and Company
 
policies
 
and
procedures, as their
 
guide.
The Code
 
of Conduct
 
is available
 
on the
 
Compliance
 
section
 
of our
 
corporate
website.
Organization
 
of compliance
 
activities
The Compliance
 
Office is managed by the Director Internal Audit
and Risk Management
 
& Compliance, who reports directly
 
to the
Chairman
 
of the
 
Audit
 
and Compliance
 
Committee
 
(ACC).
The ACC
 
Charter
 
determines
 
the ACC’s
 
responsibility
 
in helping
and advising
 
the Board
 
of Directors
 
with respect
 
to monitoring
Proximus’
 
compliance
 
with
 
the legal
 
and regulatory
 
requirements,
 
as
well as
 
internal
 
compliance
 
with the
 
Code of
 
Conduct
 
and the
Group policies and
 
procedures.
The
 
Compliance
 
Program
At Proximus,
 
we are
 
committed
 
to meeting
 
the highest
 
standards
 
of
integrity
 
and ensuring
 
ethical
 
business
 
conduct.
 
As part
of our
 
commitment
 
in this
 
scope,
 
we have
 
implemented
 
a
comprehensive
 
Compliance
 
Program
 
that has
 
to be
 
known by
 
all
Proximus
 
employees
 
and available
 
via our
 
website.
 
Compliance
and business
 
ethics are our
 
license to operate.
As a
 
core
 
element
 
of the
 
Compliance
 
Program,
 
Proximus
 
has
developed
 
a set
 
of Policies
 
and Codes
 
that formally
 
compile
 
the
behavioral
 
guidelines
 
to be
 
followed
 
by Proximus
 
staff as
 
well as
the existing
 
restrictions
 
on important
 
subjects
 
such as
 
Anti-
Corruption,
 
Trade Sanctions and Antitrust. In
 
addition, a Suppliers
Code
 
of Conduct
 
has been
 
created
 
to ensure
 
our suppliers
 
adhere
 
to
the same ethical
 
standards.
At Proximus,
 
the right
 
measures
 
are put
 
in place
 
to avoid
 
ethical
dilemmas.
 
This means
 
having
 
a clear
 
governance
 
model, as
described
 
in this
 
corporate
 
governance
 
section
 
and in
 
accordance
 
with
the Law of 21 March 1991 on the reform of certain autonomous
economic
 
public
 
companies
 
(“the 1991
 
Law”). In
 
a joint
 
effort,
 
Group
Legal
 
and Compliance
 
have
 
created
 
a Corporate
 
Handbook
 
for
Proximus
 
affiliates,
 
detailing
 
governance,
 
and compliance
 
principles.
Our anti-corruption
 
procedures
 
are more
 
than a
 
legal obligation
 
and
an ethical
 
duty: as
 
a responsible
 
company
 
we take
 
a firm stand
against
 
corruption
 
and apply
 
a practice
 
of zero-tolerance.
 
Specific
anti-bribery
 
training
 
has been
 
created
 
dedicated
 
for a targeted
employee’s population.
 
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Proximus Group I
Integrated annual report
 
2021
I
103
Fair and
 
open competition
 
between
 
companies
 
and doing
 
business
on a level
 
playing field
 
is important
 
to society
 
and contributes
 
to
increased
 
welfare
 
for all.
 
Therefore,
 
we support
 
fair and
 
open
competition
 
in all
 
our markets,
 
with a
 
competitiveness
 
approach
 
that
is based
 
on good
 
products
 
and services
 
at the
 
right
 
price.
Reliable
 
reporting
 
channels
 
for internal
 
and external
 
stakeholders
and the
 
protection
 
of internal
 
whistle-blowers
 
from sanctions
 
help
ensure
 
possible
 
misconduct
 
is reported,
 
thoroughly
 
investigated,
 
and
clarified.
 
At Proximus,
 
we provide
 
different
 
reporting
 
channels
 
to
internal
 
and external
 
whistle-blowers
 
to inform
 
us about
 
possible
compliance
 
violations.
 
In 2021,
 
we revised,
 
improved,
 
and
communicated
 
our whistleblowing
 
procedure.
 
5 whistleblowing
cases
 
(4 linked
 
to conflict
 
of interests
 
and 1 to
 
the non-respect
 
of
organizational
 
guidelines)
 
were handled
 
in 2021.
 
All have
 
been
thoroughly
 
analyzed
 
by Compliance
 
and Investigations
 
and have
To improve
 
the setup
 
regarding
 
insider
 
dealing,
 
Proximus
 
has
implemented
 
a tool
 
(InsiderLog)
 
enabling
 
the automated
management of insider
 
lists.
Proximus
 
requires
 
its suppliers
 
and business
 
partners
 
to adhere
 
to a
code of
 
conduct.
 
This code
 
is modelled
 
after the
 
10 principles
 
of the
United
 
Nations
 
Global
 
Compact.
 
It covers
 
legal
 
compliance
 
in
general
 
and our
 
anti-
 
bribery/corruption
 
policies,
 
including
provisions
 
against
 
anticompetitive
 
practices
 
and conflicts
 
of interest.
KPIs
Result 2020
Result 2021
Number of cases investigated by the
Investigations Department for violation
24
48
of policies/code of conduct
5
had appropriate
 
measures
 
taken
 
for such
 
as the
 
reminding
 
of rules
stemming from policies
 
and procedures.
Number of whistleblowing cases
 
2
(4 Internal,
1 External)
In a nutshell
The following
 
efforts
 
have been
 
done in
 
2021 to
 
improve
 
the visibility
of the Group
 
Compliance strategy:
Code of
 
Conduct
 
e-learning
 
for new
 
joiners
Continuous
 
communication
 
campaigns
 
towards
 
our staff
 
through
 
the intranet,
 
on
our Code of
 
Conduct, anti-bribery
 
and conflict of
 
interest, …
Policies Charter.
(Insider Dealing
 
– automated
 
management
 
of insider
 
lists tool)
Creation
 
of Executive
 
Committee
 
approved
 
Corporate
 
Handbook
(governance and
 
compliance for
 
Proximus affiliates)
Creation
 
and communication
 
to suppliers
 
of a
 
new suppliers’
Code of Conduct
 
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Proximus Group I
Integrated annual report
 
2021
I
104
Applying
 
high
 
ethical
 
standards
Proximus
 
business
 
conduct
Code of Conduct
Because
 
we take
 
business
 
personally,
 
we do not
 
just comply
 
with
the law,
 
but we
 
want to
 
ensure
 
every one
 
of our
 
employees
 
is
aware
 
of the
 
behaviors
 
to follow
 
and to
 
avoid.
 
The Proximus
 
Code
 
of
Conduct
 
reflects
 
the fundamental
 
principles
 
and rules
 
which
form the
 
basis of
 
our commitment
 
to being
 
a responsible
 
company.
We believe
 
that
 
strong
 
results
 
have
 
to be
 
accompanied
 
by integrity
if we want
 
to contribute
 
to the
 
economic,
 
social
 
and environmental
development of our
 
society.
The Code
 
of Conduct
 
is applicable
 
to all
 
employees
 
of the
 
Group.
Proximus
 
employees
 
follow
 
mandatory
 
training
 
on the application
 
of
the principles of
 
the Code of
 
Conduct.
Proximus
 
expects
 
its employees
 
to respect
 
the Code
 
of Conduct
and use
 
it as
 
a reference
 
in their
 
day-to-day
 
way of
 
working.
Human Rights
People
 
are entitled
 
to be
 
treated
 
with
 
respect,
 
care and
 
dignity.
Proximus
 
business
 
practices
 
can only
 
be sustainable
 
if we respect
basic
 
human
 
rights
 
and value
 
diversity,
 
cultural
 
and other
differences.
 
Our Code
 
of Conduct,
 
values
 
and behavior
 
are
inspired
 
by fundamental
 
principles
 
such as
 
those
 
of the
 
Universal
Declaration
 
of Human
 
Rights,
 
the European
 
Convention
 
on Human
Rights,
 
and the
 
United
 
Nations
 
Convention
 
on the Rights
 
of the
Child.
Private customer
 
data
We apply
 
strict
 
rules
 
and policies
 
within
 
our company,
 
complying
with the GDPR
 
and e-privacy directives:
Proximus has
 
continued
 
to grow the
 
Privacy Ambassador
network
 
across
 
different
 
business
 
units to
 
ensure the
 
highest
level of
 
awareness
 
and accountability
 
for privacy
 
compliance.
These Ambassadors
 
receive regular
 
privacy training.
We have
 
improved
 
our Privacy
 
Review
 
Process
 
to address
 
all
privacy matters
 
at the highest
 
level of
 
management
 
through
dedicated
 
Privacy
 
Governance.
 
The process
 
has been
 
carefully
embedded
 
into our
 
corporate
 
policy,
 
making
 
data privacy
 
an
 
absolute
priority.
Additional
 
resources
 
have been
 
made available
 
to support
 
the
Legal Privacy
 
team and
 
the Data
 
Protection
 
Officer.
 
This has
allowed
 
the acceleration
 
of privacy
 
reviews.
 
The Legal
 
Privacy
Team and
 
Data Protection
 
Officer
 
share valuable
 
tools and
content
 
about
 
privacy
 
regulations,
 
increasing
 
awareness
 
across
the company.
 
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Proximus Group I
Integrated annual report
 
2021
I
105
Supplier
 
Code
 
of Conduct
Next
 
to ensuring
 
compliance
 
inside of
 
the company,
 
Proximus
 
also
pays attention
 
to sustainability
 
and ethics
 
throughout
 
its supply
chain.
 
We, therefore,
 
have
 
developed
 
a state
 
of the
 
art Supplier
 
Code
of Conduct
 
which
 
is in line
 
with national
 
and international
 
legislation
and follows
 
the standard
 
set by the
 
Responsible
 
Business Alliance
(RBA).
Managing
 
the sustainability
 
risks of
 
our vendors
 
is integrated
 
in our
daily
 
sourcing
 
process.
 
We monitor
 
our key
 
suppliers
 
on their
 
ESG
standard
 
by obliging
 
them to
 
undergo
 
a valid
 
evaluation
 
by third-
party
 
assessment
 
organizations.
 
We accomplish
 
this by
 
inviting
 
them
to an
 
EcoVadis
 
assessment
 
and by
 
audits
 
in frame
 
of
 
our role in
 
the
Joint Audit Cooperation
 
(JAC).
JAC postponed audits
 
due to COVID-19
We have
 
a leading
 
position
 
in the Joint
 
Audit Cooperation
 
(JAC),
 
a
global
 
association
 
of telecom
 
operators
 
aiming
 
to verify,
 
assess,
share
 
and develop
 
sustainability
 
practices
 
for its
 
suppliers
 
and their
tiers
 
through
 
risk audits,
 
assessments
 
and scorecards.
As a
 
member
 
of JAC
 
we join
 
17 other
 
telecom
 
operators,
 
together
representing
 
more
 
than
 
60% of
 
worldwide
 
telecom
 
turnover.
 
We
make
 
sure
 
audits
 
are performed
 
by third
 
parties
 
on the
 
suppliers’
and supplier
 
tiers’
 
premises.
 
In 2020-21,
 
many audits
 
had to be
postponed
 
due to
 
the COVID-19
 
pandemic.
 
They will
 
be pursued
as soon as the
 
situation allows it.
ESG standards throughout the
 
supply chain
We integrate
 
ESG standards
 
into
 
our supplier
 
selection
 
process.
 
By
demanding
 
suppliers
 
to fulfil
 
our Supplier
 
Code of
 
Conduct,
 
not only
do we
 
improve
 
our brand
 
image,
 
but we
 
also contribute
 
to the
communities
 
in which
 
we and
 
our suppliers
 
operate
 
in. The ESG
standards are included
 
in all contracts.
Human Rights in our supply chain
Respecting
 
internationally
 
recognized
 
Human
 
Rights
 
as established
in the
 
Universal
 
Declaration
 
on Human
 
Rights and
 
the International
Labour
 
Organization’s
 
Core Conventions
 
is key
 
for Proximus
 
and
certainly
 
also across
 
its supply
 
chain.
 
In line with
 
the UN
 
Guiding
Principles
 
on Business
 
and Human
 
Rights, Proximus
 
recognizes
 
the
corporate
 
responsibility
 
to respect
 
these
principles
 
and commit
 
to "know
 
and show"
 
this through
 
on-going
human rights
 
due diligence
 
with our
 
business-
 
and major
 
supply
chain partners
 
in the
 
JAC, perusing
 
jointly
 
all kind
 
of breaches
 
of the
above
 
mentioned.
 
This
 
way we are
 
able to
 
mitigate
 
potential
 
human
rights
 
impacts
 
beyond
 
our direct
 
control
 
and influence
 
the
 
behavior
of suppliers and
 
their tiers.
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Proximus Group I
Integrated annual report
 
2021
I
106
Diversity
 
&
 
inclusion
Statement
In accordance with
 
Article 3 of the
 
Law of 3 September
 
2017 on the
disclosure
 
of non-financial
 
and diversity
 
information by certain
 
large
companies
 
and groups,
 
Proximus’
 
diversity
 
policy, and
 
its purpose
 
and
results, are described
 
below.
 
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Integrated annual report
 
2021
I
107
Strategic
 
orientation
 
about
 
diversity
 
& inclusion
Proximus
 
believes
 
that
 
a diverse
 
workforce,
 
through
 
our
employees’
 
unique
 
capabilities,
 
experiences
 
and all other
characteristics
 
unrelated
 
to someone’s
 
abilities,
 
will help
 
us reach
 
a
more
 
diverse
 
marketplace
 
and will
 
create
 
sustainable
 
business.
 
It is
also important
 
to reflect
 
the diversity
 
of our
 
customers
 
and
markets in our
 
workforce.
Therefore,
 
Proximus
 
has a Policy
 
on diversity
 
and equal
 
rights
 
,
which
 
applies
 
to all
 
employees
 
of the
 
Proximus
 
Group.
With this
 
policy,
 
Proximus
 
wants
 
to enable
 
conditions
 
in which
 
these
differences
 
are recognized
 
and respected
 
and all
 
employees
 
are
given equal opportunities.
Diversity
 
is part
 
of Proximus
 
Code of
 
Conduct
 
.
For Proximus,
 
diversity
 
and equality
 
mean:
Treating
 
all applicants
 
and employees
 
equally,
 
based only
 
on
relevant competencies
 
and objective criteria
Creating an open
 
and welcoming
 
work environment
 
that
encourages
 
contributions
 
from people
 
of all backgrounds
 
and
experiences
Promoting
 
a mindset
 
of respect
 
and openness
 
throughout
 
all
levels
 
of the
 
organization
 
and treating
 
all employees
 
fairly and
equally
Demonstrating behavior
 
free from any form
 
of racism,
intolerance,
 
discrimination,
 
harassment
 
or other attitude
 
that
could negatively
 
affect the
 
dignity of
 
men and women at
 
the
workplace
Incorporating
 
diversity
 
in all
 
aspects
 
of the
 
way we
 
do business,
without any form of
 
intolerance.
Within
 
Proximus,
 
specific
 
teams are
 
in charge
 
of monitoring
compliance
 
with
 
the Charter
 
and of
 
taking
 
the correct
 
measures
 
in
case of non-compliance.
Diversity
 
& inclusion
 
in our
 
leadership
 
and
 
employees
 
communities
Proximus
 
is particularly
 
conscious
 
of the
 
importance
 
of diversity
 
at
all levels
 
of the
 
organization.
 
To reinforce
 
our commitment
to recruiting
 
employees
 
with an
 
inclusion
 
and growth
 
mindset
and whose
 
behavior
 
is in
 
line
 
with
 
the company’s
 
4 core
 
values,
we have
 
put in
 
place
 
a non-discrimination
 
clause
 
for each
 
new
application.
 
Once they
 
are part
 
of the company,
 
we ensure
 
that
they are
 
the best
 
ambassadors
 
of our
 
company
 
culture
 
by
including
 
a part
 
on our
 
inclusion
 
program
 
and philosophy
 
in our
on-boarding
 
tool,
 
our welcome
 
days,
 
and in
 
all related
 
training
 
for
team leaders, experts,
 
trainees, etc.
While
 
taking
 
care
 
to put
 
in place
 
well-balanced
 
and talented
 
mixed
teams,
 
Proximus
 
reinforces
 
its capacity
 
for innovation
 
and fosters
 
its
learning
 
culture,
 
the engagement
 
of its
 
employees
 
and
 
their
creativity
 
towards
 
the future
 
challenges
 
of a digital
 
world.
Gender
 
mainstreaming
Proximus
 
is committed to a gender-neutral and non-
discriminatory
 
policy, which is reflected in
 
all types of
communication.
We are
 
an inclusive
 
company
 
and equal
 
opportunities
 
is a basic
principle
 
of our
 
mission
 
statement
 
that applies
 
to everyone,
regardless
 
of gender
 
or any
 
other
 
form of
 
discrimination.
Inclusion
 
puts
 
into
 
practice
 
the concept
 
of a gender-neutral
and non-discriminatory
 
policy
 
by creating
 
an environment
 
of
involvement, respect and
 
connection.
The strength
 
of the
 
company
 
lies in
 
the richness
 
of the
 
talents of
 
all
employees, which creates
 
added value.
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Proximus Group I
Integrated annual report
 
2021
I
108
Proximus
 
has also
 
decided
 
to extend
 
its gender
 
strategy
 
through
the following actions:
Contract
 
signed
 
with Open@Work
 
to extend
 
our strategy
 
to
the LGTB community
Actions
 
in the
 
framework
 
of the
 
international
 
day against
homophobia, transphobia
 
and biphobia on
 
17 May
In-depth
 
analysis
 
on possible
 
impact
 
of gender
 
on various
performance elements
Analysis
 
of the
 
remuneration
 
structure
 
by level
Charter
 
signed
 
for the
 
"Inclusive
 
Panels"
 
initiative,
 
committing
ourselves
 
to ensure
 
more gender,
 
ethnic and
 
age diversity
among experts speaking
 
at events
 
and conferences
Participation
 
in the
 
implementation
 
of the
 
federal
 
gender
mainstreaming plan
Implementing resilience
 
training and initiatives to help
employees
 
cope with
 
change
 
and find
 
balance in
 
our new
 
way
 
of
working
Proximus
 
has set
 
itself
 
the objective
 
of being
 
the most active
company
 
in the
 
promotion
 
of women
 
in the
 
digital
 
world and
reached
 
his target
 
of recruiting
 
25% of
 
women
 
with a
 
university
degree
 
in technical
 
areas by
 
the end
 
of 2021.
 
Moreover,
 
we have
appointed
 
a woman
 
to head
 
the Digital
 
Transformation
 
& IT
business
 
unit,
 
also a
 
new member
 
of the
 
Executive
 
Committee.
Within
 
the framework
 
of its
 
Collective
 
Agreement
 
2021-2022,
Proximus
 
commits
 
to keep on
 
taking initiatives
 
in this domain
 
and
to remain
 
open and
 
non-restrictive
 
in its
 
communication,
marketing
 
and recruitment
 
campaigns.
 
Proximus
 
will also
 
take
additional
 
initiatives
 
to communicate
 
its diversity
 
and inclusion
vision,
 
strategy
 
and actions
 
via educational
 
videos,
 
information
 
to
the business
 
units staff
 
plus live
 
information
 
sessions
 
that will
 
be
proposed to all
 
employees.
We will
 
also
 
keep
 
on communicating
 
via our
 
brand-new
 
page on
diversity
 
& inclusion
 
launched
 
in 2021
 
on our intranet,
 
that
gathers
 
all information,
 
events,
 
celebrations
 
and much
 
more
about diversity
 
and inclusion
 
at Proximus
 
and in a
 
broader
perspective.
Proximus
 
also
 
supports
 
internal
 
and external
 
diversity
 
network
activities
 
and initiatives,
 
such
 
as the
 
AfroPean
 
network
 
(APN).
We have a
 
Diamond Sponsorship
 
in the "Women
 
on Board"
organization
 
and we
 
continued
 
to strengthen
 
our partnership
 
with
Google,
 
extending
 
our #IamRemarkable
 
community
 
through
 
the
organization
 
of new
 
sessions
 
and our
 
participation
 
to the worldwide
week-long
 
edition
 
of September
 
2021.
 
At the
 
heart
of the
 
#IamRemarkable
 
initiative
 
is a 90-minute
 
workshop
 
that
strives
 
to empower
 
participants
 
to talk
 
openly
 
about
 
their
achievements
 
in their
 
personal
 
and professional
 
lives,
 
provides
them with
 
tools
 
to develop
 
this set
 
of skills,
 
and invites
 
them to
challenge
 
the biases
 
surrounding
 
self-promotion.
We will
 
keep
 
on creating
 
supportive
 
networking
 
groups
 
so that
everyone
 
can reinforce
 
their
 
feeling
 
of belonging
 
to our
community.
With
 
regard
 
to gender
 
diversity,
 
this approach
 
is also
 
reflected
 
in the
female
 
representation
 
at the
 
different
 
levels
 
of our
 
company:
Proximus
 
Group
 
also
 
has a
 
very
 
diverse
 
workforce
 
in terms
 
of
 
culture
with 57 nationalities.
Our different
 
cultural
 
values
 
foster
 
inclusion
 
and promote
collaboration.
36%
of the
Board
 
of
Directors
22%
of the
Executive
Committee
23%
of
 
the
members
 
of the
Leadership
Team
32%
of all
employees’
population
 
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Proximus Group I
Integrated annual report
 
2021
I
109
A culture
 
allowing
 
everyone
 
to reconcile
 
activities
 
during
the different life
 
phases
Proximus
 
wants
 
to create
 
conditions
 
that
 
allow
 
its employees
 
to
reconcile
 
the different
 
aspects
 
of their
 
professional
 
and private
lives
 
during
 
their
 
different
 
life phases
 
by offering
 
opportunities
 
for
internal
 
job change
 
and development
 
opportunities,
homeworking,
 
part-time
 
schedules,
 
home childcare,
 
… These
measures
 
enable
 
our employees
 
to work
 
in a
 
safe,
 
inspiring
and inclusive
 
workplace,
 
with equal
 
opportunities
 
for everyone,
allowing
 
them
 
to combine
 
their
 
personal
 
and professional
 
lives in
order
 
to be
 
optimally
 
present
 
and feel
 
supported,
 
motivated
 
and
engaged at work.
Proximus
 
is a
 
founding
 
partner
 
of "Experience@Work".
 
Thanks
 
to
this company,
 
experienced
 
talents
 
from organizations
 
can be
deployed
 
in other
 
organizations
 
that are
 
looking
 
for specific
experience and/or talent.
The pandemic
 
has massively
 
changed
 
our professional
 
and private
life.
 
A series
 
of training
 
and resilience
 
initiatives
 
have been
 
put in
place
 
to help
 
our employees
 
cope with
 
these changes.
However,
 
while
 
everyone
 
has tried
 
to find
 
a new balance
 
in the
new way
 
of working,
 
the isolation
 
we sometimes
 
feel during
 
this
COVID-19
 
period
 
makes
 
us want
 
to reconnect
 
with others,
 
to
continue
 
to find
 
meaning
 
in our
 
work,
 
to feel
 
valued,
 
to reaffirm
 
our
place
 
within
 
our team
 
and Proximus,
 
and to
 
be able
 
to look
 
to
 
the
future with confidence.
As part
 
of its
 
approach
 
to sustainable
 
employability,
 
Proximus
commits
 
to analyzing
 
the possible
 
implementation
 
of ideas
 
from the
working
 
groups
 
organized
 
on this
 
topic
 
in 2018
 
in co-creation
 
with
the representative
 
trade
 
unions.
 
Proximus
 
is also
 
extending
 
until
 
the
end of
 
2022 the
 
pilot project
 
launched
 
in 2021 for
 
our shops
 
sales
people
 
who
 
are in the
 
55+ age
 
group,
 
to revamp
 
their
 
working
regime and reduce
 
their work schedules.
Human
 
rights
Our high ethical business practices
 
are defined in the
 
Policy on
diversity
 
and
 
equal
 
rights
 
that
 
has
 
been
 
reviewed
 
in 2021.
 
With
 
this
policy,
 
we want
 
to enable
 
conditions
 
in which
 
differences
are recognized
 
and respected,
 
and where
 
all employees
 
are
given equal
 
opportunities.
 
This policy
 
is applicable
 
to all active
employees of the
 
Proximus Group.
Working
 
conditions
Proximus
 
is committed
 
to creating
 
working
 
conditions
 
that
promote
 
fair
 
employment
 
practices
 
and in
 
which
 
ethical
 
conduct
 
is
recognized
 
and valued.
 
We maintain
 
a professional
 
workplace
 
with
an inclusive
 
working
 
environment,
 
and we are
 
committed
 
to
respecting
 
Belgian
 
legislation
 
and the
 
International
 
Labor
Organization’s (ILO)
 
fundamental conventions.
Proximus
 
recognizes
 
and respects
 
the right
 
to freedom
 
of
association
 
and the
 
right to
 
collective
 
bargaining
 
within
 
national
laws
 
and regulations.
 
We will
 
not contract
 
child
 
labor
 
or any
 
form
of forced
 
or compulsory
 
labor
 
as defined
 
by the
 
ILO’s
 
fundamental
conventions.
 
Moreover,
 
we are
 
opposed
 
to discriminatory
 
practices
and do
 
our utmost
 
to promote
 
equality,
 
diversity
 
and inclusion
 
in all
employment practices.
Our working
 
environment
 
standards
 
are applied
 
to every
 
member
 
of
our diverse
 
community
 
and are
 
exemplified
 
by all
 
managers,
 
team
leaders
 
and employees,
 
who are
 
expected
 
to act
 
as role
 
models in
this matter.
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Proximus Group I
Integrated annual report
 
2021
I
110
Remuneration
 
report
The remuneration
 
policies
 
of the Directors
 
and of the Executive
Committee
 
are inspired
 
by current
 
legislation,
 
and by
 
the Belgian
Corporate Governance Code 2020 ("the 2020 Corporate Governance
Code")
 
as well
 
as by
 
the market
 
practices
 
and trends,
 
but also
 
according
 
to
the Proximus
 
context,
 
its specific
 
strategies
 
and its
 
ambition to
 
participate
in an inclusive,
 
secure, sustainable
 
and prosperous digital
 
Belgium.
 
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Proximus Group I
Integrated annual report
 
2021
I
111
Our company
 
is taking
 
particular
 
care to provide
 
relevant and
transparent
 
information
 
on the general
 
principles
 
governing
 
its
remuneration
 
policy and
 
the level
 
of remuneration
 
of the
members of the Board of Directors and of the Executive
Committee.
 
The Proximus
 
Remuneration
 
Policy has been
approved
 
by the
 
General
 
Meeting
 
of Shareholders
 
of Proximus
on 21 April
 
2021 and
 
is available
 
on the corporate
 
website of
Proximus
 
.
All amounts
 
in this
 
remuneration
 
report are
 
presented
 
as gross
amounts.
 
For employees
 
this is
 
the gross
 
salary (excl.
 
employer’s
 
social
contribution)
 
and for self-employed
 
employees
 
this is the
 
gross
remuneration (excluding VAT).
Remuneration
 
of
 
the
members
 
of the
 
Board of
Directors
Structure
 
of
 
the
 
remuneration
 
of
 
the
 
members
 
of
 
the
 
Board
 
of
 
Directors
The principle
 
of continuity
 
with the
 
past has been
 
maintained.
 
The
remuneration
 
adopted
 
by the General
 
Assembly
 
of 2004
 
has
remained
 
applicable
 
in 2021
 
and no
 
substantial
 
change of
 
the
policy is expected
 
for the coming
 
years.
The Board
 
of Directors
 
is composed
 
of no
 
more than
 
fourteen
members,
 
including
 
the Chief
 
Executive
 
Officer
 
(“the CEO”).
The CEO
 
is the
 
only executive
 
member at
 
the Board,
 
all other
members are non-executive
 
Directors.
The CEO is not remunerated
 
for the exercise
 
of his mandate as
member
 
of the
 
Board
 
of Directors
 
and of
 
the Committees,
 
nor for
any
 
other
 
mandate
 
within
 
the
 
Group
 
subsidiaries Boards
 
of
Directors.
The non-executive
 
Directors
 
are remunerated
 
as follows:
For the
 
Chairman
 
of the
 
Board of
 
Directors:
-
An annual
 
fixed compensation
 
of € 50,000
 
granted
 
pro rata
temporis of the
 
duration of the
 
mandate.
-
An attendance
 
fee of
 
10,000 per
 
attended
 
meeting of the
Board of Directors.
-
An attendance
 
fee of
 
2,500 per attended meeting as a
member
 
of an
 
advisory
 
committee
 
of the Board
 
of Directors.
This fee
 
is doubled
 
per attended
 
meeting as
 
chairman of
 
this
advisory committee.
-
An annual
 
fixed
 
allowance
 
of € 4,000
 
for communication
costs
-
The use
 
of a
 
company car.
For the
 
other members
 
of the
 
Board of
 
Directors:
-
An annual
 
fixed compensation
 
of € 25,000
 
granted
 
pro rata
temporis of the
 
duration of the
 
mandate.
-
An attendance
 
fee of
 
5,000 per
 
attended
 
meeting of the
Board of Directors.
-
An attendance
 
fee of
 
2,500 per attended meeting as a
member
 
of an
 
advisory
 
committee
 
of the Board
 
of Directors.
This fee
 
is doubled
 
per attended
 
meeting as
 
chairman of
 
this
advisory committee.
-
An annual
 
fixed allowance
 
of € 2,000
 
for communication
costs.
These amounts
 
are paid
 
semi-annually
 
and are
 
not subject
 
to
indexation.
For the performance
 
of their Board
 
mandates, the non-
executive
 
Directors
 
do not
 
receive
 
any variable
 
performance-
based remuneration,
 
nor do they
 
receive benefits
 
linked to
complementary
 
pension
 
plans or
 
any other
 
group insurance.
Although
 
the 2020
 
Corporate
 
Governance
 
Code recommends
that non-executive
 
board members
 
should receive
 
part of their
remuneration
 
in the
 
form of
 
shares in
 
the company,
 
the company
has decided
 
not to comply
 
with this
 
provision
 
taking into
 
account its
specific shareholdership,
 
having the
 
Belgian State
 
as majority
shareholder.
The Chairman of
 
the Board of Directors
 
is also Chairman of the
Joint Committee
 
and of
 
the Pension
 
Fund, and
 
he does
 
not
receive any fees
 
for these mandates.
 
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Proximus Group I
Integrated annual report
 
2021
I
112
Remuneration
 
granted
 
to the
 
members
 
of the
 
Board
 
of Directors
 
in
 
2021
The
 
total
 
amount
 
of
 
the
 
remunerations
 
granted
 
in
 
2021
 
to
 
all
 
the
members of
 
the
 
Board
 
of
 
Directors, Chairman included, is
amounting
 
to gross
 
1,192,366.
During
 
the year
 
2021 were
 
held:
9 meetings
 
of the
 
Board of
 
Directors
5 meetings
 
of the
 
Audit &
 
Compliance
 
Committee
6 meetings
 
of the
 
Nomination
 
& Remuneration
 
Committee
2 meetings
 
of the
 
Transformation
 
& Innovation
 
Committee
The overview
 
of the
 
individual
 
gross
 
amounts
 
paid
 
out to
 
the Directors
in 2021,
 
based
 
on their
 
activities
 
and
 
attendance
 
to Board
 
and
Committee
 
meetings,
 
is presented
 
in the
 
following
 
table.
Remuneration
 
granted
 
to the
 
members
 
of the
 
Board of
 
Directors
 
in 2021
Directors
Annual fix compensation
Attendance fees
Allowance*
Total 2021
Stefaan De Clerck
50,000
142,500
6,616
199,116
Guillaume Boutin
-
-
-
-
Karel De Gucht
25,000
50,000
2,000
77,000
Pierre Demuelenaere
25,000
72,500
2,000
99,500
Martin De Prycker
25,000
65,000
2,000
92,000
Martine Durez
25,000
60,000
2,000
87,000
Ibrahim Ouassari
17,361
35,000
1,389
53,750
Catherine Rutten
25,000
57,500
2,000
84,500
Isabelle Santens
25,000
45,000
2,000
72,000
Joachim Sonne
25,000
57,500
2,000
84,500
Agnès Touraine
25,000
50,000
2,000
77,000
Catherine
 
Vandenborre
25,000
70,000
2,000
97,000
Luc Van den hove
25,000
65,000
2,000
92,000
Paul Van de Perre
25,000
50,000
2,000
77,000
Total
342,361
820,000
30,005
1,192,366
* Annual fixed telecom allowance. For the
 
Chairman, this amount also includes the benefit in
 
kind related to the use of company car,
 
which amounted to € 2,616 in 2021.
The following
 
table gives
 
an overview
 
of the remuneration
granted over the
 
last 5 years to
 
members of the
 
Board of
Directors,
 
Chairman
 
included.
 
The year-over-year
 
variance
 
is
solely
 
due to
 
the number
 
of board
 
and
 
committee
 
meetings
 
held
 
per
calendar
 
year and
 
the attendance
 
or absence
 
of members
 
at these
meetings.
Total 2017
Total 2018
Total 2019
Total 2020
Total 2021
1,080,244
1,000,499
1,243,509
1,231,116
1,192,366
Year-over-year variance
-7.4%
+24.3%
-1.0%
-3.1%
 
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Proximus Group I
Integrated annual report
 
2021
I
113
Global
 
Rewards
 
Program
 
 
general
 
vision
As provider
 
of digital
 
services
 
and communication
 
solutions,
 
our
company
 
is operating
 
in a
 
complex,
 
dynamic
 
and
 
constantly
changing
 
environment,
 
on a
 
highly
 
competitive
 
and
 
rapidly
 
evolving
Belgian
 
and
 
international
 
telecom
 
market.
To achieve
 
our
 
transformation,
 
ambitions
 
and objectives,
 
and
 
so
ensure
 
the
 
long-term
 
sustainability
 
of our
 
Group,
 
we need
qualified,
 
talented
 
and highly
 
committed
 
employees
 
and managers,
working
 
in
 
close
 
cooperation,
 
building
 
resilience
 
and
 
promoting
our
 
culture
 
and
 
values.
 
It is
 
therefore
 
critical
 
to have
 
a competitive
 
and
market
 
attractive
 
Global
 
Rewards
 
Program
 
for
 
both
 
the Executive
Committee
 
members
 
and
 
all
 
other
 
members
 
of the
 
Top
 
Management,
as well
 
as for
 
the
 
entire
 
workforce.
Our
 
company
 
has
 
innovative,
 
competitive
 
and market
 
attractive
remuneration
 
policies
 
and
 
practices
 
that
 
are
 
regularly
 
assessed
 
and
updated
 
through
 
close
 
cooperation
 
with
 
universities
 
and external
human
 
resources
 
fora.
 
The practices used for the remuneration
 
of
our
 
employees
 
– wages
 
and working
 
conditions
 
included
 
– are
defined
 
in a
 
process
 
of dialogue
 
with
 
the Board
 
of Directors
 
and with
the social partners.
In view
 
of its
 
history
 
as a
 
company
 
under
 
public
 
law, our
 
company
presents
 
certain
 
differences,
 
in its
 
dynamics
 
and structure,
 
compared
to the
 
private
 
sector.
 
These
 
differences
 
have
 
had a
 
considerable
influence
 
on the
 
evolution
 
of its
 
remuneration
 
policy.
 
Our
 
human
resources
 
department
 
has
 
thus
 
developed
 
creative
 
and
 
modular
programs
 
to meet
 
our obligations
 
related
 
to the
 
statutory
 
nature
 
of
the employment
 
of certain
 
staff
 
members
 
and has
 
introduced
 
new
elements
 
that
 
have
 
made
 
it possible
 
to harmonize
 
policies
 
between
statutory
 
and
 
contractual
 
staff
 
members.
The
 
main
 
objectives
 
of our
 
Global
 
Rewards
 
Program
 
are
 
as follows:
To drive
 
performance
 
that generates
 
long-term
 
profitable
growth and
 
create long-term
 
value for
 
our Group as
 
a
reference operator;
To stimulate
 
empowerment
 
and accountability
 
to meet our
commitment
 
to participate
 
in the
 
creation
 
of an
 
inclusive,
 
safe,
sustainable and prosperous
 
digital Belgium;
To offer
 
a fair
 
and equitable
 
remuneration
 
to our
 
staff (both
to civil servants
 
and to the
 
contractual
 
employees), and
competitive on the market;
To recognize
 
and reward
 
high performance
 
in line
 
with our
company values and
 
culture;
To link
 
pay to
 
both individual
 
performance
 
and the overall
success
 
of our
 
company
 
in order
 
to reinforce
 
the alignment
with the
 
business
 
strategy and
 
successful
 
execution
To enable
 
our company
 
to attract
 
and retain
 
market’s
 
talents
 
at
all levels;
To combine
 
the needs
 
and responsibilities
 
of employees
 
and
their families
 
with those
 
of the
 
company
 
and society
 
at large.
Our company
 
also
 
maintains
 
– and
 
modernises
 
– additional
motivational
 
instruments,
 
such
 
as work-
 
life
 
benefits
 
(e.g.
 
sick
childcare
 
and
 
hospitalisation),
 
wellbeing
 
initiatives
 
and social
assistance.
Our priority
 
is to
 
work
 
on the
 
basis
 
of remuneration
 
practices
 
that
prepare
 
the
 
future
 
and
 
support
 
the
 
promise
 
made
 
to our
employees
 
to empower
 
them
 
to take
 
accountability,
 
to achieve
 
our
company's
 
ambition
 
and strategic
 
objectives
 
and to
 
make
 
them
proud
 
of
 
the
 
successes
 
we achieve
 
together.
Remuneration
 
of
 
the
members
 
of
 
the
 
Executive
Committee
Decision-making
 
process
The remuneration
 
program
 
of the
 
Executive
 
Committee
 
and the
individual
 
remuneration
 
packages
 
are
 
set
 
by the
 
Board
 
of Directors
upon
 
recommendations
 
from
 
the
 
Nomination
 
& Remuneration
Committee.
 
The individual
 
remuneration
 
packages
 
are defined
according
 
to the
 
individual
 
responsibilities,
 
sustained
 
performance
and critical skills.
 
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Proximus Group I
Integrated annual report
 
2021
I
114
Competitiveness of
 
the remuneration
 
of the
 
Executive Committee
The remuneration
 
policies
 
and practices
 
applicable
 
to the
 
Executive
Committee
 
are aimed
 
to reward
 
the executives
 
competitively
 
and at
rates
 
that
 
are attractive
 
in the
 
market,
 
align the
 
interests
 
of
management
 
and shareholders
 
and comply
 
with the
 
governance
rules applicable
 
in Belgium.
 
Although
 
the 2020
 
Belgian
 
Corporate
Governance
 
Code
 
recommends
 
that the
 
Board should
 
set a
minimum
 
threshold
 
of shares
 
to be held
 
by the members
 
of the
Executive
 
Committee,
 
the company
 
has decided
 
not to
 
comply
 
with
this provision
 
taking
 
into account
 
its specific
 
shareholdership,
 
having
the Belgian
 
State as
 
majority
 
shareholder.
To achieve
 
its transformation,
 
ambitions
 
and objectives,
 
and thus
ensure
 
the long-term
 
sustainability
 
of the
 
Group,
 
our company
intends
 
to attract
 
and retain
 
qualified,
 
talented
 
and committed
leaders
 
for its
 
Executive
 
Committee.
 
We want
 
to recognize
 
clear
 
role
models,
 
who deliver
 
a high
 
level of
 
performance
 
and promote
 
our
culture and values.
Like the
 
rest of
 
the top
 
management
 
of our
 
company,
 
the members
of the
 
Executive
 
Committee
 
benefit
 
from dedicated
 
reward
programs
 
which
 
focus
 
on the
 
principles
 
of our
 
strategy
 
to
consistently
 
reward
 
high
 
performance
 
of individuals
 
and of
 
the
company.
 
A significant
 
part
 
of their
 
total
 
remuneration
 
is variable,
based on
 
stringent
 
quantitative
 
and qualitative
 
performance
 
criteria,
and is
 
driven
 
by our
 
company’s
 
objectives
 
in terms
 
of performance
and growth.
 
This
 
way,
 
our company
 
wants
 
to
encourage
 
them
 
to deliver
 
a long-term,
 
sustainable
 
profitable
growth,
 
in line
 
with
 
our Group’s
 
strategy
 
and the
 
expectations
 
of
 
our
shareholders.
The market
 
positioning
 
of these
 
remuneration
 
packages
 
is
reviewed
 
on a regular
 
basis by
 
benchmarking
 
the remuneration
 
of
the members
 
of our
 
Executive
 
Committee
 
against
 
both the
 
BEL 20
companies
 
(financial
 
sector
 
excluded)
 
and a set
 
of peer companies
in the
 
European
 
Telecommunications
 
and ICT
 
sector.
 
This
 
analysis
aims
 
to ensure
 
that the
 
global
 
remuneration
 
of each
 
member
 
of the
Executive
 
Committee
 
remains
 
adequate,
 
fair and
 
in line
 
with
 
market
practices
 
and consistent
 
with
 
the evolution
of both
 
his/her
 
responsibilities
 
and the
 
market
 
situation
 
of the
Proximus
 
Group
 
in terms
 
of size,
 
scope
 
of activities
 
and financial
results.
To distinguish
 
ourselves
 
from other
 
employers,
 
our company
seeks
 
to differentiate
 
in the
 
total
 
package
 
offered,
 
by providing
 
not
only a
 
cash remuneration
 
but also
 
other
 
benefits.
 
A limited
degree
 
of freedom
 
is also
 
left
 
to the
 
top management,
 
the CEO
and the
 
other
 
members
 
of the
 
Executive
 
Committee
 
included,
with regard
 
to the
 
choice
 
of the
 
pay-out
 
means
 
of their
 
variable
compensation.
All the
 
amounts
 
mentioned
 
in this
 
report
 
are gross
 
amounts
before employer’s social
 
contribution.
Remuneration
 
structure
 
of the
 
Executive
 
Committee
The
 
remuneration
 
of
 
the
 
members
 
of
 
the
 
Executive
 
Committee
 
is
built
 
upon
 
the
 
following
 
components:
Fixed
 
remuneration
Short-term
 
variable
 
remuneration
Long-term
 
variable
 
remuneration
Group
 
insurance
 
premiums
Other benefits
One-off
 
and exceptional
 
bonuses.
Current
 
variable
 
remuneration
 
policy
 
is aligned
 
for all
 
Executive
Committee
 
members,
 
CEO included.
 
The target
 
percentage
 
of both
the short-term
 
and the
 
long-term
 
variable
 
remuneration
 
amounts
to 40% of
 
the fixed remuneration.
 
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Proximus Group I
Integrated annual report
 
2021
I
115
7%
12%
18%
18%
45%
8%
6%
19%19%
48%
Relative
 
importance
 
of the
 
various
 
components
 
of the
 
on-target
 
remuneration
 
before
 
employer’s
 
social
 
contribution
 
(end 2021)
CEO
Other Executive
Committee members
Fixed remuneration
Short-term
 
variable
Long-term
 
variable
Group insurance
 
premiums
Other benefits
The
 
CEO
 
and
 
the
 
other
 
members
 
of the
 
Executive
 
Committee
 
do
not
 
receive
 
any
 
remuneration
 
in the
 
form
 
of Proximus
 
shares
 
or
Proximus stock options.
No substantial
 
change
 
of the
 
remuneration
 
policy
 
is expected
 
for
the coming two
 
years.
Fixed remuneration
The fixed
 
remuneration
 
consists
 
of a
 
fixed
 
salary
 
earned
 
by the CEO
and
 
by the
 
other
 
members
 
of the
 
Executive
 
Committee
 
for the
reported
 
year
 
in such
 
respective
 
roles.
 
This
 
remuneration
 
is defined
 
by
the nature
 
and
 
the
 
specificities
 
of the
 
function
 
and by
 
the level
of individual
 
skills
 
and
 
experience,
 
considering
 
market
 
practices.
This
 
remuneration
 
is allocated
 
regardless
 
of the
 
results
 
and is
contractually
 
subject
 
to the
 
consumer
 
price
 
index
1
.
The
 
fixed
 
remuneration
 
of the
 
CEO
 
is set
 
by the
 
Board
 
of Directors
 
at
the beginning
 
of his
 
six-year
 
mandate
 
for the
 
duration
 
of his
mandate.
 
The fixed
 
remuneration
 
of the
 
Executive
 
Committee
members
 
others
 
than
 
the CEO
 
is regularly
 
assessed
 
by the
Nomination
 
& Remuneration
 
Committee,
 
based
 
on an
 
extensive
review
 
of
 
sustained
 
performance
 
and
 
assessment
 
of potential
of each
 
member
 
provided
 
by the
 
CEO,
 
as well
 
as on
 
external
benchmarking
 
data
 
on market
 
practices.
 
Thereby,
 
the evolution
 
of the
fixed
 
remuneration
 
depends
 
on the
 
competency
 
level
 
of the
Executive
 
Committee
 
member,
 
of his
 
or her
 
sustained
 
performance
level,
 
of the
 
evolution
 
of his
 
or her
 
responsibilities,
 
as well
 
as of
 
the
evolution
 
of
 
the
 
market.
 
Possible
 
adjustments
 
are
 
always
 
submitted
 
to
the
 
Board
 
of Directors
 
for
 
approval.
Fixed
 
remuneration
 
in K€
 
before
 
employer
 
social contribution
over 5 years
As for
 
the CEO,
 
the amounts
 
reported
 
for 2017
 
to 2018
 
were
 
paid
 
to the former
CEO, Mrs.
 
Leroy, as
 
for most
 
of 2019
 
(385 K
 
) while
 
one month
 
in 2019
 
(44 K
 
)
and the
 
amounts
 
reported
 
since 2020
 
were paid
 
to the
 
current CEO, Mr. Boutin.
Specific
 
changes
 
in the
 
composition
 
of the
 
Executive
 
Committee
 
have impacted
 
the
total fixed
 
remuneration
 
paid in
 
2020 and
 
in 2021
 
to the other
 
Executive
 
Committee
members
 
others
 
than the
 
CEO. The
 
role of
 
Chief
 
Consumer
 
Market
 
Officer
 
has been
vacant
 
for 2
 
months in
 
2020 and
 
the role
 
of Chief
 
Financial
 
Officer
 
has been
 
vacant
from June
 
2020 till
 
March 2021
 
included.
 
Besides,
 
an additional
 
role has
 
been created
at Executive
 
Committee
 
level
 
in 2021
 
in order
 
to support our
 
digital
transformation
 
and ambitions,
 
and a
 
new member
 
has therefore
 
joined
 
the Executive
Committee in April 2021.
2,632
2017
 
2018
 
2019
 
2020
 
2021
 
CEO
 
Other Executive Committee
 
members
The roles acted ad interim
 
as CEO or as other
 
member of the Executive Committee
 
are
not taken into consideration for current report.
1
 
in accordance with the rules laid down by the Law of 1 March 1977 organising a system of linking certain public sector
expenditure to the State consumer
 
price index, as amended by
 
Royal Decree No 178 of 30
 
December 1982
 
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Proximus Group I
Integrated annual report
 
2021
I
116
Short-term variable
 
remuneration
Purpose
 
and components
 
of the
 
short-term
 
variable
remuneration
The members
 
of the
 
Executive
 
Committee,
 
CEO included,
receive
 
a target
 
short-term
 
variable
 
remuneration
 
expressed
 
as
a percentage
 
of the
 
annual
 
fixed remuneration.
 
This target
percentage
 
is identical
 
for all
 
Executive
 
Committee
 
members,
The
 
Nomination and Remuneration Committee recommended
the following
 
set of KPIs to the Board of Directors
 
for the 2020
performance year:
Strategic Goal 2020
 
STI KPI 2020
 
KPI nature
Business Cash Flow
 
Financial
CEO included,
 
and amounts
 
to 40%
 
of the
 
fixed
 
remuneration.
Sustainable
 
Growth
Net Acquisition Value
 
Mixed
Gross OPEX Savings
 
Financial
Our short-term
 
variable
 
remuneration
 
system
 
has been
 
designed
 
to
support
 
the strategy
 
and the
 
values
 
of our Group
 
and to enhance
 
a
performance-based
 
management
 
culture.
Our company
 
indeed
 
considers
 
close
 
collaboration
 
of all employees
to be
 
imperative.
 
All
 
efforts
 
need to
 
be focused
 
and aligned
 
towards
the Group’s
 
ambition
 
to be
 
successful
 
and ensure
 
its sustainability.
The Group
 
results
 
are therefore
 
highly
 
impacting
 
(for 60%)
 
the
short-term
 
variable
 
remuneration
 
of the
 
members
 
of the
Executive
 
Committee,
 
on top
 
of the
 
individual
 
performance
 
(for
40%), and this
 
in line with
 
our company
 
values.
Group
 
performance
 
– Key
 
performance
 
Indicators
 
(KPIs)
The short-term
 
annual
 
variable
 
remuneration
 
is for
 
60% based
 
on
the Group’s
 
performance
 
against
 
a set of
 
Key Performance
Indicators
 
( KPIs),
 
that are,
 
on a
 
yearly
 
basis,
 
defined
 
by the
 
Board
 
of
Directors
 
upon recommendation
 
from the
 
Nomination
 
&
Remuneration
 
Committee.
 
These KPIs
 
are the
 
so called
 
STI KPIs
(Short Term Incentives KPIs).
The amounts
 
of short-term
 
variable
 
remuneration
 
mentioned
 
in
current
 
report
 
are the
 
ones
 
paid
 
out to the
 
Executive
 
Committee
members
 
in the
 
course
 
of 2021
 
and are
 
thus related
 
to the
 
results
 
of
the Group KPIs of the 2020
 
performance year.
Customer Experience
 
Non-Financial
Digital Company
Digital
 
Non-Financial
Gigabit Network
 
Fiber Value Creation
 
Mixed
Employees
 
Employee Experience
 
Non-Financial
Each
 
Strategic
 
Goal
 
has a
 
weight
 
in the
 
overall
 
STI KPI
 
framework,
 
in
line
 
with
 
its
 
relative
 
importance
 
for the
 
Group.
 
Each
 
Strategic
 
Goal
has a
 
number
 
of clearly
 
identified,
 
specific,
 
measurable
 
and
actionable
 
KPIs
 
associated
 
to it.
 
These
 
KPIs
 
are either
 
of a
 
financial,
 
a
non-financial
 
or a
 
mixed
 
nature.
For
 
the
 
sake
 
of confidentiality,
 
the
 
STI KPIs are
 
only
 
reported
 
a
posteriori in
 
this report.
The high
 
ESG
 
(Environmental,
 
Social
 
and Governance)
 
ambitions
of our
 
Group
 
are
 
more
 
and
 
more
 
reflected
 
in our
 
STI KPIs.
The chosen
 
KPIs
 
show
 
our company’s
 
societal
 
commitment
 
to
contribute
 
to a
 
more
 
digital
 
future
 
for
 
our
 
country,
 
accessible
 
to all.
Apart
 
from
 
the
 
higher
 
speeds
 
and
 
energy
 
efficiencies
 
brought
 
by
our new
 
Fiber
 
network,
 
some
 
additional
 
specific
 
STI KPIs
 
have
 
been
added
 
to the
 
framework
 
of 2021,
 
to measure
 
our efforts
 
to evolve
towards
 
a more
 
green,
 
circular
 
and
 
safe
 
society.
 
In 2021,
 
these
 
KPIs
included
 
the number
 
of returned
 
fixed
 
and mobile
 
devices
 
for
refurbishment
 
or recycling,
 
the volume
 
of recycled
 
copper
 
cables
after
 
building
 
out-phasing/cleaning,
 
roadworks
 
and cable
 
repair
and our
 
resilience
 
to cyber
 
security
 
attacks.
 
The framework
 
of
2022
 
replaces
 
the KPI
 
of copper
 
recycling
 
with
 
the companywide
CO
2
 
emissions
 
reduction.
 
Over
 
the years,
 
more
 
comprehensive
sustainability
 
and
 
digitalisation
 
KPIs
 
will
 
be
considered
 
for
 
the
 
Group KPIs
 
framework,
 
in line
 
with
 
the
 
increased
importance
 
of climate
 
change
 
and digital
 
inclusion
 
on the
 
societal
 
agenda.
 
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Proximus Group I
Integrated annual report
 
2021
I
117
A detailed
 
definition
 
for
 
each
 
of the
 
STI KPIs can
 
be found
 
in the
 
following
 
table.
Strategic goal 2020
STI KPI 2020
Weight
KPI Definition
Business Cash Flow
30%
Amount of Cash generated by the business operations.
Sustainable
 
Growth
Net Acquisition Value
 
10%
Annualized value generated/destroyed by gains and losses
 
of customers in the mass-
and professional markets.
Savings in Operational Expenditure, realized through internal initiatives aiming at
Digital
 
Company
Gross OPEX Savings
 
10%
Customer Experience
 
20%
Digital
 
10%
reducing our cost base via increased productivity or
 
efficiency, or via decreased
consumption.
This KPI
 
consists of
 
4 sub-KPIs,
 
each computed
 
as a
 
weighted average
 
of underlying
indicators per
 
customer segment.
 
They only
 
relate to
 
the Proximus
 
brand, excluding
Scarlet.
1
Net Promoter Score
2
Customer Effort Score "New
 
customer"
3
Customer Effort Score
 
"Administrative Assistance"
4
Customer Effort Score
 
"Technical Assistance"
This KPI consists of 2 sub-KPIs:
1
E-share of Sales: digital penetration of our sales
 
volumes.
2
Contact Centre Deflation: increase of
 
digital first interactions resulting in deflation of
contact center interaction volumes.
Gigabit Network
 
Fiber Value Creation
 
10%
 
Deployment and value creation in our new Fiber network.
Employees
 
Employee Experience
 
10%
Measurement of our employees’ engagement, agility,
 
empowerment, accountability
and strategic alignment with respect to our
 
company.
Total
 
100%
Measuring
 
methodology:
 
we all
 
go the
 
extra smile!
For each
 
performance
 
indicator,
 
an end-of-year
 
target
 
has been
defined,
 
as well
 
as a pay-out
 
interval
 
with a minimum
 
(Min) and
 
a
maximum
 
(Max)
 
threshold.
 
The targets
 
and thresholds
 
are defined
 
in
such a
 
way that
 
they stimulate
 
the teams
 
to go
 
the extra
 
(s)mile
whilst
 
remaining
 
realistic
 
and achievable.
 
For a
 
KPI that
 
meets
its end-of-year
 
target,
 
the short-term
 
variable
 
remuneration
pay-out
 
(“Multiplier”)
 
is at
 
100% of
 
its target
 
level.
 
In case
 
of
overperformance
 
versus
 
target
 
at year
 
end, the
 
Multiplier
 
linearly
grows to
 
a maximum
 
of 200%
 
beyond
 
which it
 
is capped,
 
whilst it
linearly
 
decreases
 
to zero
 
in case
 
of underperformance
 
versus
target at year end.
The Business
 
Cash Flow
 
and the Gross
 
Opex Savings
 
are
determined
 
based on audited financial figures, adjusted to obtain
underlying
 
financial
 
figures
 
after
 
exclusion
 
of incidentals.
 
Non-
financial
 
and mixed
 
indicators
 
are measured
 
by internal
 
experts
 
and
external
 
agencies
 
specialized
 
in market
 
and customer
 
intelligence.
The achievements
 
of these
 
KPIs
 
are
 
regularly
 
followed-up
 
at the
Executive
 
Committee
 
and are
 
discussed
 
at the
 
Nomination
 
and
Remuneration
 
Committee
 
and
 
at the
 
Board
 
of Directors.
Individual
 
performance
The individual
 
performance
 
is taken
 
into account
 
for 40%
 
in the
short-term variable remuneration.
On top
 
of the
 
Group
 
results,
 
the individual
 
performance
 
is annually
evaluated
 
in the
 
course
 
of the
 
first
 
quarter
 
following
 
the end
 
of the
financial
 
year by
 
the Board
 
of Directors.
 
This evaluation
 
is based
 
on
the recommendations
 
made by the
 
Chairman
 
of the Board
 
of
Directors
 
for the
 
CEO performance
 
and
 
by the
 
CEO for
 
the other
members of the
 
Executive Committee.
Throughout
 
each performance
 
period,
 
the achievements
 
of the
on-going
 
year are
 
regularly
 
measured
 
and discussed.
 
The final
evaluation
 
takes
 
into
 
account
 
the realizations
 
versus predefined
measurable
 
individual
 
objectives
 
as well
 
as the
 
achievements
 
of
the Executive
 
Committee
 
members
 
in their
 
leadership
 
role and
their
 
active
 
role
 
in the
 
promotion
 
of our
 
company
 
culture
 
and
values.
These individual
 
objectives
 
are set
 
every year
 
in line with
 
the specific
role
 
and responsibilities
 
of each
 
Executive
 
Committee
 
member
 
and
need
 
to reflect
 
our long-term
 
corporate
 
strategy
 
which is cascaded
within the
 
company
 
and included
 
in the individual
 
objectives
 
as to
enable
 
our Group
 
to fulfil
 
its ambitions.
 
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I
118
We are committed to stimulate
 
high and sustainable levels of
performance
 
in a
 
spirit of innovation, collaboration,
 
agility and
personal development.
Upon
 
final
 
evaluation,
 
the Board
 
of Directors
 
will not
 
only take
 
into
consideration
 
the individual
 
differentiation
 
between
 
the members
of the
 
Executive
 
Committee
 
in terms
 
of performance
 
and talent
 
but
will
 
also
 
ensure
 
that the
 
total amount
 
allocated
 
for
 
individual
performance
 
is in line
 
with the
 
results
 
at Group
 
level,
 
in order
 
to
consolidate
 
the interdependence
 
between
 
the individual
contribution and the
 
company's performance.
Short-term
 
variable
 
remuneration
 
allocation
As mentioned
 
above,
 
the amount
 
effectively
 
paid to the
 
CEO and
to the
 
other
 
members
 
of the
 
Executive
 
Committee
 
varies
 
according
to the
 
Group
 
results
 
(for
 
60%)
 
and to
 
the evaluation
 
of
 
the
individual
 
performances
 
(for
 
40%) by
 
the Board
 
of Directors.
In case
 
of objectives
 
realization
 
at 100%,
 
the CEO or
 
the other
members
 
of the
 
Executive
 
Committee
 
gets 100%
 
of his or
 
her
short-term
 
variable
 
remuneration
 
target amount.
 
In case
 
of
excellent
 
performance
 
at Group
 
and individual
 
level,
 
the short-
 
term
variable
 
remuneration
 
can go above
 
the 100%
 
of the
 
target
amount,
 
with a
 
cap at
 
200%,
 
according
 
to a linear
 
allocation
 
curve.
Conversely,
 
this
 
percentage
 
can drop
 
down to
 
0% in case
 
of
 
severe
underperformance.
As also
 
stated
 
above,
 
the Board
 
of Directors
 
will
 
always ensure
 
that
the total
 
amount
 
allocated
 
for individual
 
performance
 
is in
 
line
 
with
the results
 
at Group
 
level, in
 
order to
 
consolidate
 
the
interdependence
 
between
 
the individual
 
contribution
 
and the
company's performance.
One of
 
the principles
 
of our
 
company’s
 
remuneration
 
policy
 
is the
degree
 
of freedom
 
for the
 
top management,
 
the CEO and
 
the other
members
 
of the
 
Executive
 
Committee
 
included,
 
with regard
 
to the
choice
 
of pay
 
out means
 
of their
 
variable
 
remuneration.
Long-term variable
 
remuneration
Purpose
 
and components
 
of the
 
long-term
 
variable
remuneration
Our
 
company
 
wants
 
to encourage
 
its
 
Executive
 
Committee,
 
as
well
 
as
 
the
 
other
 
members
 
of its
 
top
 
management,
 
to generate
They therefore
 
get the
 
opportunity
 
to invest
 
part of
 
their
 
short-
term variable
 
remuneration
 
in a bonus
 
pension
 
plan, i.e.
 
an
additional
 
supplementary
 
pension
 
plan, and
 
to receive
 
part of their
short-term
 
variable
 
remuneration
 
in cash
 
bonuses,
 
in non-
 
recurring
benefit
 
or in (non-Proximus)
 
warrants
 
or fund
 
options,
 
always
 
within
the limits
 
of the
 
relevant
 
regulations.
Short-term
 
variable
 
remuneration
 
in K€ before
 
employer
social contribution over
 
5 years
In 2021,
 
a short-term
 
variable
 
remuneration
 
has been
 
allocated
 
to the
 
CEO
 
for
a total
 
amount
 
of gross
 
€ 265,614.
 
The amounts
 
reported
 
till 2019
 
were paid
to the
 
former
 
CEO,
 
Mrs.
 
Leroy.
 
The amount
 
reported
 
for 2020
 
included
 
the
amount
 
paid to
 
the current
 
CEO, Mr.
 
Boutin (€
 
18,833 gross)
 
but also
 
included
the amount
 
(€ 440,000
 
gross)
 
paid
 
out to
 
former
 
CEO, Mrs.
 
Leroy,
 
for
 
her
performance
 
years
 
2017
 
to 2019.
The total
 
short-term
 
variable
 
remuneration
 
effectively
 
allocated
 
in 2021
 
to the
other
 
members
 
of the
 
Executive
 
Committee
 
(2020
 
performance
 
year)
amounts
 
to gross
 
€ 1,123,605.
 
The year-to-year
 
variations
 
are mainly
resulting
 
from
 
(i) the
 
variations
 
in the
 
Group
 
KPI results,
 
from
 
(ii)
 
the changes
 
in
the composition
 
of the
 
Executive
 
Committee
 
and from
 
(iii)
 
the exceptional
bonus
 
paid in
 
2020 to
 
our former
 
Chief
 
Financial
 
Officer,
 
Mrs. Dufour,
rewarding
 
her excellent
 
performance
 
in the
 
course
 
of 2019
 
in her
 
ad interim
CEO role.
 
The reported
 
amount
 
for 2020
 
also included
 
the amount
 
paid to
the current
 
CEO,
 
Mr. Boutin,
 
for his
 
performances
 
in 2019
 
as member
 
of the
Executive
 
Committee
 
(before
 
his nomination
 
as CEO).
1,807
2017
 
2018
 
2019
 
2020
 
2021
 
CEO
 
Other Executive Committee
 
members
sustainable
 
and
 
profitable
 
performance
 
and growth
 
over
 
the long
term,
 
in line
 
with
 
our
 
strategy
 
at Group
 
level,
 
our
 
societal
 
ambitions
and the
 
expectations
 
of our
 
shareholders
 
and all
 
our other
stakeholders.
 
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Proximus Group I
Integrated annual report
 
2021
I
119
To achieve
 
this
 
ambition,
 
the remuneration
 
policy
 
of our
Executive
 
Committee,
 
CEO included,
 
significantly
 
links
 
their
variable
 
remuneration
 
to our
 
Group's
 
long-term
 
financial
 
and
non-financial
 
strategic
 
objectives
 
through
 
a long-term
 
variable
remuneration.
Long-term
 
variable
 
remuneration
 
allocation
The members
 
of the
 
Executive
 
Committee,
 
CEO included,
 
receive
a target
 
long-term
 
variable
 
remuneration
 
expressed
 
in a
percentage
 
of the
 
fixed
 
remuneration.
 
This
 
target
 
percentage
 
is the
same
 
as the
 
percentage
 
of their
 
target
 
short-term
 
variable
remuneration,
 
i.e. 40%
 
of the
 
annual
 
fixed
 
remuneration.
The long-term
 
variable
 
remuneration
 
is allocated
 
to the members
 
of
the Executive
 
Committee
 
by the
 
Board of
 
Directors
 
upon
recommendations
 
made by
 
the Nomination
 
& Remuneration
Committee.
 
The long-term
 
incentives
 
plan currently
 
in place
 
is a
long-term
 
Performance
 
Value
 
Plan, which
 
has been
 
adopted
 
by our
company in 2013
 
and reviewed in
 
2019.
Long-term
 
Performance
 
Value
 
Plan
The long-term
 
incentive
 
plan offered
 
by our
 
company
 
to its
executives
 
is currently
 
set up
 
as a
 
Performance
 
Value
 
Plan. Under
this
 
Performance
 
Value
 
Plan,
 
targets
 
are defined
 
and fixed
 
for the
next
 
3 years
 
and as
 
a result,
 
the awards
 
granted
 
are blocked
 
for
a period
 
of 3
 
years.
 
The amount
 
actually
 
paid after
 
vesting,
 
will
depend on a
 
final multiplier
 
as described below.
This plan
 
has been
 
designed
 
to keep
 
the long-term
 
variable
remuneration
 
of the
 
executives
 
balanced
 
and attractive
 
while
maximizing
 
Proximus
 
Group's
 
long-term
 
value by
 
aligning
 
the
interests
 
of Proximus
 
Group's
 
executives
 
with
 
Proximus
 
Group's
shareholders
 
and stakeholders.
 
It aims
 
to ensure
 
that the
 
actions
and initiatives
 
taken by the executives
 
are guided by long-term
and sustainable interests. Therefore, this remuneration
 
clearly
constitutes a long-term
 
incentive.
Executive
 
Committee
 
members
 
who would
 
put an
 
end to
 
their
employment
 
relationship
 
with our
 
company
 
before
 
the end
 
of the
blocking
 
period
 
would
 
lose the
 
awards
 
granted.
 
This rule
 
also
applies
 
in case
 
the company
 
puts an
 
end to
 
an employment
relationship
 
for serious
 
cause on
 
the part
 
of a member
 
of the
Executive Committee.
Long-term
 
Incentive
 
Key Performance
 
Indicators
Just like
 
the STI KPIs,
 
the Key
 
Performance
 
Indicators
 
used in
 
the
frame
 
of the
 
Long-term
 
Performance
 
Value
 
Plan -
 
the so
 
called
 
LTI
KPIs -
 
are also
 
related
 
to the
 
strategic
 
goals
 
of our
 
Group
and enable
 
us to
 
assess
 
the progresses
 
of our
 
Group towards
 
our
societal
 
ambitions,
 
strategy
 
and sustainability
 
on the
 
long term.
In that
 
respect,
 
3 KPIs
 
have been
 
defined
 
which enhance
 
the sense
of long-term
 
and sustainable
 
business
 
vision among
 
Proximus
Group's
 
senior
 
management
 
and support
 
Proximus
 
in
 
delivering
sustainable
 
Free
 
Cash Flow
 
and improving
 
our brand
 
perception
and reputation:
2 financial
 
KPIs: The
 
Total Shareholder
 
Return of
 
Proximus
and the Group Free
 
Cash Flow
1 non-financial
 
KPI: The
 
Reputation
 
index of
 
Proximus
The KPIs
 
have
 
been
 
given
 
different
 
weights
 
in the
 
overall
 
Long-
 
term
Performance
 
Value
 
Plan
 
framework,
 
in line
 
with their
 
relative
importance
 
in terms
 
of long-term
 
sustainability
 
of the
 
Group.
 
A
detailed
 
definition
 
for each
 
of the KPIs,
 
as well as
 
their weight
 
factors,
can be found
 
in the following
 
table.
LTI KPI
 
Weight
 
KPI Definition and Measurement
This criteria reflects Proximus' long-term competitivity on the European telecom
 
market by measuring its position
against a representative
 
basket of comparable
 
European companies with respect to
 
their Total Shareholder Return.
 
The
Total Shareholder Return being defined as the combination of share price appreciation and the
 
dividends paid
Total
 
Shareholder
Return
40%
to show the total
 
return to the shareholder.
Current basket of
 
European companies
 
is the following:
 
Deutsche Telekom,
 
Orange, KPN, BT,
 
Swisscom, Telefonica,
Telecom Italia, Telenor, TeliaSonera and OTE.
This KPI is measured annually, per calendar
 
year, and the annual result is expressed as a
 
percentage between
 
0
and 175, depending on the ranking of Proximus within the peer group.
The Group Free Cash Flow KPI will
 
measure Proximus’ healthy financial evolution over the years. Group Free Cash
Group Free Cash Flow
 
40%
Reputation index
 
20%
Flow targets are defined by Proximus’ Board of Directors
 
in line with the 5-year plan. This KPI
 
is assessed annually
against the objectives set and the annual result is expressed as a percentage between 0 and 175.
The Reputation Index is a a holistic, measurable and actionable KPI enabling Proximus
 
to fully integrate the concept
of reputation into its long-term strategy. It measures the corporate reputation
 
of the company in the perception of
relevant external stakeholders, representing long term value creation for these stakeholders. While corporate
reputation is impacted by a wide range of attributes, the corporate reputation
 
KPI is based on Proximus’
 
performance
on three reputation attributes (Fair in the way
 
we do business, Positive influence on society and Meets
 
customer needs),
selected based on their statistic impact on reputation
 
and their strategic relevance. A third-party company, the
Reputation Institute, measures the annual results which are expressed as a
 
percentage between 0 and 175.
 
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Proximus Group I
Integrated annual report
 
2021
I
120
For the
 
Reputation
 
Index
 
and the
 
Group
 
Free Cash
 
Flow, targets
and thresholds
 
are defined
 
in such
 
a way that
 
they stimulate
 
the
teams to
 
go the
 
extra mile
 
whilst
 
remaining
 
realistic
 
and
achievable on the
 
long-term.
Each year,
 
an annual
 
result is
 
calculated
 
on the basis
 
of the
weighted
 
average
 
of the
 
3 above-mentioned
 
performance
 
criteria.
After
 
the blocking
 
period
 
of 3 years,
 
the Performance
 
Values
 
vest
and the
 
Performance
 
Values
 
are then
 
paid to
 
the beneficiaries
according
 
to the
 
final
 
multiplier,
 
being the
 
average
 
of the
 
three
yearly multipliers.
In case
 
of final
 
multiplier
 
at 100%,
 
the executives
 
get 100%
 
of
the
 
long
 
-term
 
variable
 
remuneration
 
originally
 
granted
 
to them.
In case
 
of sustained
 
excellent
 
Group
 
performance
 
over
Long-term
 
variable
 
remuneration
 
granted
 
in K€ before
employer social contribution
 
over 5 years
Given
 
Mr. Boutin
 
started
 
his CEO
 
mandate
 
in December
 
2019, only
 
the long-term
variable
 
remuneration
 
allocated
 
to him
 
in the
 
course
 
of 2020
 
for
 
one month
performance
 
in his
 
CEO role
 
is included
 
in the
 
reported
 
granted
 
amount
 
for 2020.
The amount
 
allocated
 
in 2021
 
refers
 
to a
 
full-year
performance
 
on 2020.
 
The former
 
CEO, Mrs.
 
Leroy,
 
was not
 
eligible
 
to long-
 
term
variable remuneration.
The total
 
long-term
 
variable
 
remuneration
 
effectively
 
granted
 
to the
 
members
 
of the
Executive
 
Committee
 
others
 
than the
 
CEO was
 
amounting
 
to gross
 
€ 916,375
 
in 2020
and to
 
€ 1,097,703
 
in 2021.
 
The year-to-year
 
variations
 
are mainly
 
resulting
 
from
the changes
 
in the
 
composition
 
of the
 
Executive Committee.
The CEO
 
and the
 
other
 
members
 
of the
 
Executive
 
Committee
 
did not
 
receive any
Proximus
 
shares
 
nor Proximus
 
stock
 
options
 
over the
 
last
 
5 years.
1,098
this 3-year
 
period,
 
the final
 
multiplier
 
for the
 
long-term
 
variable
remuneration
 
can go
 
above
 
the 100%,
 
with a
 
cap at
 
175%.
Conversely,
 
this
 
percentage
 
can drop
 
down
 
to 0% in
 
case of
severe underperformance.
The payment
 
of the
 
Performance
 
Values
 
is made
 
through
 
a cash
bonus.
1,005
1,025
1,055
916
204
19
0
 
0
 
0
Group insurance
 
premiums
Complementary
 
pension
The CEO
 
participates
 
in a complementary
 
pension scheme
 
entirely
financed
 
by Proximus
 
which foresees
 
an annual
 
defined
 
contribution
calculated
 
as a
 
percentage
 
of the fixed
 
remuneration.
 
This
percentage amounts to
 
10%.
Formula
 
for
 
complementary
 
pension
 
of the
 
CEO =
 
10% *
 
W
W = reference salary = monthly
 
salary multiplied by 12
The other
 
members
 
of the
 
Executive
 
Committee
 
participate
 
in a
complementary
 
pension
 
scheme
 
entirely
 
financed
 
by Proximus
which
 
consists
 
of a
 
“Defined
 
Benefit
 
Plan”
 
offering
 
pension
 
rights
2017
 
2018
 
2019
 
2020
 
2021
 
CEO
 
Other Executive Committee
 
members
which
 
are in
 
line
 
with
 
market
 
practices.
 
This scheme
 
therefore
corresponds
 
to a
 
promise
 
made by
 
the company
 
of a certain
amount
 
at retirement
 
age based
 
on the
 
plan rules,
 
an amount
 
that
does not depend
 
on an investment
 
return.
Formula
 
for
 
complementary
 
pension
 
of the
 
other
 
members
 
of
the Executive
 
Committee
 
= N/60
 
* W -
 
N/45
 
* ELP
N = number of service years expressed
 
in months and years
W = reference salary = monthly
 
salary multiplied by 12
ELP = Estimated Legal Pension = half of the legal pension
 
ceiling
 
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2021
I
121
Other
 
group
 
insurances
The CEO
 
and the
 
other
 
members
 
of the
 
Executive
 
Committee
also benefit
 
from other
 
group
 
insurances
 
in line
 
with market
practices, such
 
as life and
 
invalidity insurances.
As for
 
the life
 
insurance,
 
the beneficiaries
 
of the
 
CEO or
 
of another
member
 
of the
 
Executive
 
Committee
 
will receive,
 
in the
 
event of
death during
 
the term
 
of his
 
or her
 
contract,
 
a gross
 
capital
 
lump
equal to the
 
monthly salary multiplied
 
by 60.
In the
 
event of
 
work incapacity
 
due to
 
illness
 
or private
 
accident,
 
the
professional
 
income
 
of the
 
CEO or
 
another
 
member of
 
the
Executive
 
Committee
 
is 100%
 
guaranteed
 
for the
 
first
 
three
months
 
of the
 
incapacity.
 
As from
 
the fourth
 
month,
 
the disability
insurance
 
covers
 
the payment
 
of a disability
 
annuity
 
by the
insurance
 
company
 
on top
 
of the
 
ceiling
 
of the
 
legal
 
sickness-
disability
 
insurance
 
provided
 
by the
 
Belgian
 
social
 
security.
Average
 
premiums
 
for the
 
company
The average
 
premiums
 
paid
 
by our company
 
for the
 
group
insurances
 
of the
 
CEO is
 
estimated
 
to 13% of
 
his fixed
remuneration.
As for
 
the other
 
members
 
of the
 
Executive
 
Committee,
 
the average
premiums
 
paid
 
by our
 
company
 
for their
 
group
 
insurances
 
over the
last 5 years
 
amounted
 
to about
 
22% of their
 
fixed remuneration.
 
In
2021 these
 
premiums
 
amounted
 
to about
 
26% of
 
their
 
fixed
remuneration
 
but it
 
includes
 
a few
 
regularizations.
Group insurance
 
premiums
 
in K€
 
before
 
employer
 
taxes
over 5 years
The amounts
 
reported
 
till 2019
 
for the
 
CEO were
 
paid to
 
the former
 
CEO, Mrs.
Leroy.
 
The amounts
 
reported
 
since
 
2020 were
 
paid to
 
the current
 
CEO,
 
Mr.
Boutin.
 
The decrease
 
is due
 
to the
 
change
 
of complementary
 
pension plan
features
 
with
 
the nomination
 
of current
 
CEO,
 
Mr. Boutin.
The year-to-year
 
variations
 
for the
 
other
 
members
 
of the
 
Executive
Committee
 
are mainly
 
resulting
 
from
 
the changes
 
in the
 
composition
 
of the
Executive
 
Committee
 
and
 
to a
 
few regularizations
 
in 2021.
657
2017
 
2018
 
2019
 
2020
 
2021
CEO
 
Other Executive Committee members
 
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Proximus Group I
Integrated annual report
 
2021
I
122
Other benefits
Our Group wants
 
to stimulate
 
its executives
 
by offering
 
a portfolio
of benefits
 
and advantages
 
that are
 
competitive
 
in the marketplace
and consistent
 
with the
 
Group’s
 
culture.
 
The CEO
 
and the
 
other
members
 
of the
 
Executive
 
Committee
 
receive
 
benefits
 
on top
 
of
their remuneration,
 
including
 
medical
 
insurance,
 
the use
 
of a
company
 
car,
 
welfare
 
benefits
 
and other
 
benefits
in kind.
 
Comparative
 
assessments
 
are regularly
 
made on
 
these
benefits
 
which
 
are adapted
 
according
 
to the
 
common
 
market
practices.
Where
 
feasible,
 
our portfolio
 
of benefits
 
and advantages
 
is tailored
and updated
 
in line
 
with our
 
company's
 
ambition
 
to act for
 
a green
and digital
 
society.
 
For instance,
 
our mobility
 
program
 
is now
focused
 
on clear
 
objectives
 
of a
 
greener
 
fleet
 
and of
 
a wide
 
offer
 
of
green
 
alternatives
 
to car
 
use for
 
our employees,
 
members
 
of the
Executive Committee included.
Non-recurring
 
costs
 
– like
 
relocation
 
costs upon
 
recruitment
 
of
new members
 
residing
 
abroad,
 
for instance
 
– are impacting
 
the
evolution
 
from year
 
to year
 
of the
 
total cost
 
for our
 
company
 
for
these benefits
 
and advantages.
 
The ratio
 
versus the
 
fix
remuneration
 
can therefore
 
significantly
 
evolve
 
from
 
a year
 
to
another.
Other benefits
 
in K€
 
before
 
employer
 
taxes over
 
5 years
For 2021,
 
this
 
ratio
 
is estimated
 
to 17%
 
for both
 
the CEO
 
and the
 
other
members
 
of the
 
Executive
 
Committee.
The amounts
 
reported
 
for the
 
CEO till
 
2019 were
 
paid
 
to the
 
former
 
CEO, Mrs.
Leroy.
 
The amounts
 
reported
 
for 2020
 
and 2021
 
were paid
 
to the
 
current
CEO, Mr.
 
Boutin.
 
The increases
 
in 2020 and
 
2021 of
 
the Other
 
benefits
 
are
mainly
 
due to
 
specific
 
advantages
 
related
 
to the
 
foreign
 
executive status of
current CEO.
The significant
 
increase
 
in other
 
benefits
 
for members
 
of the
 
Executive
Committee
 
is mainly
 
due to
 
specific
 
advantages
 
related
 
to the
 
foreign
executive
 
status
 
of several
 
members,
 
including
 
the specific
 
costs
 
related
 
to
the recruitment
 
in 2021
 
of two
 
members
 
from
 
abroad,
 
like the
 
relocation
costs.
443
One-off and exceptional
 
bonuses
The Board
 
of Directors
 
may,
 
in exceptional
 
circumstances
 
and
upon recommendations
 
made
 
by the
 
Nomination
 
&
Remuneration
 
Committee,
 
grant
 
one-off
 
bonuses
 
to one
 
or more
members of the
 
Executive Committee.
This
 
may be
 
necessary,
 
for example,
 
in the
 
case of
 
additional
responsibilities
 
exceptionally
 
assumed
 
by a
 
member
 
of the
2017
 
2018
 
2019
 
2020
 
2021
 
CEO
 
Other Executive Committee
 
members
Executive
 
Committee
 
when
 
an Executive
 
Committee
 
position
 
is
vacant,
 
or in
 
the event
 
that
 
a sign-on
 
or a special
 
retention
 
bonus
would
 
be necessary
 
due to
 
market
 
circumstances.
 
If granted,
 
such
bonuses
 
are reported
 
together
 
with the
 
short-term
 
variable
remuneration.
 
These
 
possible
 
exceptional
 
bonusses
 
are included
in the
 
total
 
short-term
 
variable
 
remuneration
 
amount allocated
 
to the
other Executive Committee
 
members.
 
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Proximus Group I
Integrated annual report
 
2021
I
123
Recovery
 
of
 
undue
 
variable
 
remuneration
A claw
 
back
 
stipulation
 
is part
 
of the
 
contract
 
of the
 
CEO enabling
our company
 
to recover
 
the paid
 
short-term
 
and long-term
 
variable
remuneration
 
or to
 
withhold
 
the payment
 
of this
 
variable
remuneration in the
 
case of established
 
fraud.
As for
 
the other
 
members
 
of the
 
Executive
 
Committee,
 
the
employment
 
contracts
 
of those
 
members
 
appointed
 
as from
January
 
1, 2020
 
include
 
a specific
 
claw back
 
stipulation
 
regarding
the recovery
 
in favour
 
of our
 
company
 
of the
 
short-term
 
and
long-term
 
variable
 
remuneration
 
that
 
would
 
have been
 
attributed
to them on the
 
basis of erroneous financial
 
information. The
employment
 
contracts
 
of those members appointed prior to
January
 
1, 2020,
 
however,
 
do not
 
include
 
such a
 
stipulation.
These stipulations
 
do not mention
 
the way
 
undue variable
remuneration
 
would
 
be recovered.
 
If the
 
case
 
were
 
to arise,
 
which
seems
 
unlikely
 
in view
 
of the
 
multiple
 
controls
 
and audits
 
carried
 
out
before
 
publication
 
of the
 
results,
 
the recovery
 
would
 
be analysed,
both
 
in terms
 
of the amounts
 
to be
 
recovered
 
and the
 
way to do it.
Main
 
provisions
 
of the
 
contractual
 
relationships
Proximus'
 
contractual
 
relations
 
with the
 
CEO and
 
the other
members
 
of the
 
Executive
 
Committee
 
are in
 
line with
 
current
 
market
practice.
Contractual arrangement with the
 
CEO
The CEO
 
has a
 
contract
 
as self-employed
 
executive
 
with a
 
fixed
six-year term.
The CEO
 
is bound
 
by a non-competition
 
clause,
 
prohibiting
 
him
during
 
12 months
 
after leaving
 
the Group
 
from working
 
for any
company
 
of the
 
telecommunication
 
industry
 
that is
 
active in
Belgium,
 
in Luxemburg
 
or in The
 
Netherlands.
 
If activated
 
by our
company,
 
the CEO
 
would
 
receive
 
an amount
 
equal
 
to one
 
year’s
fixed remuneration as
 
compensation.
The CEO is
 
also bound
 
by exclusivity
 
and confidentiality
obligations
 
and is
 
liable
 
for respecting
 
the company
 
codes
 
and
policies,
 
like
 
the Code
 
of Conduct
 
and the
 
Dealing Code.
If the
 
CEO mandate
 
is revoked
 
by our company
 
before
 
the end
 
of
the six-year
 
term,
 
except
 
if the mandate
 
is ended
 
for reason
 
of
material
 
breach,
 
our company
 
will pay
 
the CEO
 
a contractual
termination
 
indemnity
 
equal
 
to one
 
year’s
 
fixed
 
salary
 
and target
short-term variable remuneration.
Main contractual terms
 
of the other
 
Executive Committee members
Our company and
 
the other members
 
of the Executive
 
Committee
are bound
 
by employment
 
agreements
 
for an
 
indefinite
 
period
 
that
comply
 
with Belgian
 
corporate
 
governance
 
legislation
 
and are
 
all
subject to
 
Belgian jurisdiction.
All members
 
of the
 
Executive
 
Committee
 
other
 
than the
 
CEO are
bound by
 
a non-competition
 
clause
 
prohibiting
 
them during
 
12
months
 
after leaving
 
the Group
 
from working
 
for any
 
other mobile
or fixed
 
licensed
 
operator
 
active
 
on the
 
Belgian
 
market.
 
If
activated
 
by our
 
company,
 
he/she
 
would receive
 
an amount
 
equal to
six months’ fixed
 
remuneration as
 
compensation.
Just like
 
the CEO,
 
the other
 
members
 
of the
 
Executive
 
Committee
are also
 
bound
 
by exclusivity
 
and confidentiality
 
obligations
 
and are
liable
 
for respecting
 
the company
 
codes
 
and policies,
 
like the
 
Code of
Conduct and the
 
Dealing Code.
They
 
have
 
a contractual
 
termination
 
clause
 
which foresees
 
an
indemnity
 
of one
 
year’s
 
remuneration.
 
Nevertheless,
 
we will
 
apply
the Belgian
 
mandatory
 
employment
 
law if
 
it provides
 
for a longer
notice
 
period
 
(or a
 
corresponding
 
higher
 
termination
 
indemnity).
 
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Proximus Group I
Integrated annual report
 
2021
I
124
8%
11%
19%
19%43%
8%
6%
18%23%45%
General
 
overview
Below
 
charts
 
reflect
 
the remuneration
 
allocated
 
to the
 
members
 
of
the Executive
 
Committee
 
over the
 
last
 
5 years
 
by our
 
company
or any
 
other
 
undertaking
 
belonging
 
to the
 
Group (benefit
 
based on
gross
 
or net
 
remuneration,
 
depending
 
on the
 
type
 
of benefit).
Remuneration
 
overview
 
of the
 
CEO
Please note
 
that for 2020,
 
the current CEO, Guillaume
 
Boutin, received
 
1/12 of the short-
 
(€ 18.833 gross) and long-term
 
variable remuneration
 
(€
18.833
 
gross). In 2021,
 
he was entitled
 
to 12 months
 
short-
 
and long-term
 
variable remuneration
 
(respectively
 
€ 265.614 gross
 
STI in line with
 
Group
KPIs achieved and € 203.996 gross
 
LTI)
CEO
2017
2018
2019
2020
2021
Fixed remuneration
515,108
55%
522,810
56%
429,498
52%
507,492
45%
512,537
45%
Short-term variable remuneration
227,195
24%
225,295
24%
215,661
26%
458,833
41%
265,614
23%
Long-term variable remuneration
0
0%
0
0%
0
0%
18,833
2%
203,996
18%
Group insurance premiums
181,243
19%
180,003
19%
157,433
19%
78,550
7%
69,007
6%
Other benefits
13,357
1%
12,438
1%
17,619
2%
55,083
5%
86,402
8%
Termination benefits
0
0%
0
0%
0
0%
0
0%
0
0%
Total (excl. employer’s
 
social contribution)
€ 936,903
€ 940,546
€ 820,211
€ 1,118,791
€ 1,137,556
*
 
CEO: All amounts reported till 2019
 
were paid to the former
 
CEO, Mrs. Leroy. The short-term
 
variable remuneration amount reported for 2020
 
includes the amount of a
deferred short-term variable remuneration ( 440,000 gross) paid
 
out to former CEO, Mrs.
 
Leroy, for her performance years
 
2017 to 2019. The contract
 
of current CEO
foresees short- and long-term
 
variable remuneration targets both amounting
 
to 40% of the fixed
 
remuneration. The decrease in
 
2020 of the Group insurance
 
premiums
 
is due
to the change of complementary pension plan features with
 
the nomination of current CEO. The increase since 2020
 
of the Other benefits is mainly due to specific
advantages related to the foreign executive status of current CEO.
All these amounts are
 
gross amounts before employer’s
 
social contribution.
Remuneration
 
overview
 
of the
 
other members
 
of the
 
Executive
 
Committee
Please
 
note
 
that an
 
additional
 
role has
 
been created
 
at Executive
 
Committee
 
level in
 
2021 in
 
order to
 
support
 
our digital
 
transformation
 
and ambitions.
Other members of the Executive Committee
2017
2018
2019
2020
2021
Fixed remuneration
2,253,540
45%
2,466,946
47%
2,632,038
48%
2,166,045
39%
2,534,773
43%
Short-term variable remuneration
1,105,537
22%
1,110,745
21%
1,070,733
20%
1,807,390
33%
1,123,605
19%
Long-term variable remuneration
1,005,000
20%
1,025,000
20%
1,055,000
19%
916,375
17%
1,097,703
19%
Group insurance premiums
516,193
10%
494,319
9%
529,369
10%
468,275
9%
657,319
11%
Other benefits
108,433
2%
124,172
2%
145,588
3%
135,648
2%
442,935
 
8%
Termination benefits
0
0%
0
0%
0
0%
0
0%
0
 
0%
Total (excl. employer’s
 
social contribution)
€ 4,988,703
€ 5,221,182
€ 5,432,728
€ 5,493,733
€ 5,856,335
*
 
Other members of the Executive
 
Committee: The increase in 2021
 
of the Other benefits is mainly
 
due to specific advantages related
 
to the foreign executive status of
 
several
members and the recruitment of two of them.
The roles acted ad
 
interim as CEO or as
 
other member of the Executive
 
Committee are not taken
 
into consideration for current report.
 
All
these amounts are gross amounts before employer’s social contribution.
Relative
 
importance
 
of the
 
various
 
components
 
of the
 
remuneration
 
effectively
 
allocated
 
in 2021
 
before
 
employer’s
 
social
 
contribution
CEO*
Other Executive
Committee members
Fixed remuneration
Short-term
 
variable
Long-term
 
variable
Group insurance
 
premiums
Other benefits
 
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Proximus Group I
Integrated annual report
 
2021
I
125
Wages
 
and
 
working
 
conditions:
 
internal
comparisons,
 
and
 
company
 
performance
The global
 
working
 
conditions
 
of our
 
senior management,
 
CEO
and members
 
of our
 
Executive
 
Committee
 
included,
 
are highly
similar
 
to the
 
working
 
conditions
 
of all
 
other
 
employees.
Besides
 
being
 
limited,
 
the few
 
differences
 
in benefits
 
that exist
between
 
top management
 
and executive
 
committee
 
members
on the
 
one hand
 
and the
 
rest of
 
the workforce
 
on the
 
other are
usually
 
related
 
to general
 
market
 
practices
 
or individual
 
needs.
For instance,
 
while
 
medical
 
coverage
 
is the
 
same for
 
the vast
majority
 
of our
 
employees,
 
senior
 
managers
 
included,
 
this medical
coverage
 
is extended
 
for employees
 
whose
 
taxable
 
family
 
income
 
is
below a
 
certain
 
ceiling
 
- extension
 
for dentures,
 
hearing
 
aids and
other medical
 
prostheses
 
– and is
 
also extended
 
for the members
of the
 
Executive
 
Committee
 
as to
 
offer
 
market
 
conform
 
conditions.
The differences
 
in benefits
 
between
 
the members
of the
 
Executive
 
Committee
 
and the
 
rest of
 
the employees
 
are
generally
 
more
 
related
 
to the
 
status
 
of foreign
 
executive
 
of several
members
 
of the
 
Executive
 
Committee
 
than to
 
the function
 
level or
role.
In terms
 
of remuneration,
 
we ensure
 
consistency
 
between
 
the
remuneration
 
and the
 
business
 
results
 
as well
 
as consistency
between
 
the remuneration
 
policy
 
of our
 
executives
 
and the
remuneration
 
policy
 
of all
 
other
 
employees,
 
for instance
 
by aligning
the ratio
 
of the
 
short-term
 
variable
 
remuneration
 
actually
 
allocated
versus the target.
Our reward
 
approach
 
has always
 
been
 
designed
 
to deliver
 
long
term
 
sustainability,
 
to reflect
 
an excellent
 
asset management
 
risk
model and
 
to support
 
the long-term
 
business
 
interests
 
of our
shareholders.
 
It takes
 
into
 
account
 
our responsibility
 
towards
 
our
customers,
 
our shareholders,
 
the Belgian
 
society
 
and other
stakeholders.
 
This
 
approach
 
is also
 
consistently
 
applied
 
to each
subsidiary entity of
 
our Group.
We want
 
to recognize
 
and
 
fairly
 
reward
 
all employees’
 
contributions.
Our Group
 
is committed
 
to providing
 
fair,
 
gender
 
neutral
 
and
consistent
 
wages
 
and working
 
conditions
 
to all employees,
regardless
 
of their
 
level
 
of responsibility
 
or role.
 
It is critical
 
to have
 
a
competitive
 
and market
 
attractive
 
Global
 
Rewards
 
Program
 
for our
entire
 
workforce
 
as to
 
propel
 
our company,
 
all together,
 
towards
 
the
future
 
and to
 
progress
 
together
 
in our
 
ambition
 
to participate
 
in the
construction
 
of a green
 
and digital
 
Belgium we want
 
to live in.
Pay
 
ratio
 
and
 
pay
 
evolution
The Pay
 
ratio
 
portraying
 
the gap
 
between
 
highest
 
and lowest
 
paid
remuneration
 
in the
 
company
 
(Proximus
 
S.A.)
 
on a full-
 
time basis
is equal
 
to 27.3
 
in 2021.
 
This ratio
 
is measured
 
by comparing
 
the
highest
 
(the CEO
 
one) and
 
lowest
 
total target
 
remuneration
package
 
(including
 
base pay,
 
premiums,
 
variable
 
pay,
 
group
insurances
 
and benefits),
 
excluding
 
employer’s
 
social
contributions.
Considering
 
the scope
 
of our
 
organization,
 
where
 
everyone
 
has a role
to play
 
but with
 
very
 
different
 
levels
 
of strategic
 
responsibility,
 
such a
ratio is
 
consistent
 
and in
 
line
 
with market
 
practices
2
.
Below
 
table
 
aims at
 
portraying
 
the evolution
 
of the
 
average
remuneration
 
on a full-time
 
equivalent
 
basis of
 
the company's
employees
 
(other
 
than members
 
of the
 
Board of
 
Directors
 
and of
the Executive Committee)
 
between 2017
 
and 2021.
Average
 
remuneration
 
of the
 
company’s
 
employees
 
over years,
 
including
 
the year-over-year
 
evolution
2017
2018
2019
2020
2021
Average remuneration*
76,973
77,786
81,802
86,677
87,400
Year-over-year evolution
+1%
+5%
+6%
+1%
*
 
The average remuneration is measured by comparing
 
the personnel costs – as published in
 
the Social Balance sheet (code 1023) of
 
the Annual Accounts of Proximus SA
 
of
the involved year – with the number of full time
 
equivalents employees of Proximus SA at the closing date of the
 
period (Executive Committee excluded).
2
 
According to the 2020 analysis
 
of the BEL20 and BELMID
 
2020 Annual Reports published by Willis Towers
 
Watson– based on
 
23
remuneration reports published by 7 April 2021 – the median of the disclosed pay ratio was of 26.6
 
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Proximus Group I
Integrated annual report
 
2021
I
126
Company
 
performance
Below
 
table
 
shows
 
the company's
 
performance
 
between
2017 and 2021.
For more
 
info,
 
please
 
see the
 
Proximus
 
Financial
 
Report.
Company
 
performance
 
over years,
 
including
the year-over-year evolution
(€ million)
Underlying revenue
Underlying EBITDA
2021
5,578
+1.8%
1,772
-3.5%
2020
5,479
-3.6%
1,836
-1.8%
2019
5,686
-2.1%
1,870
+0.3%
2018
5,807
+0.5%
1,865
+2.3%
2017
5,778
1,823
Application
 
of
 
the
 
Remuneration
 
Policy
 
and
votes
 
on previous
 
Remuneration Report
Application
 
of the
 
Remuneration
 
Policy
 
and
 
derogations
Proximus
 
undertakes
 
to remunerate
 
the members
 
of the
 
Board of
Directors,
 
the CEO
 
and the
 
other
 
members
 
of the Executive
Committee
 
only
 
in accordance
 
with
 
its Remuneration
 
Policy,
approved
 
by the
 
General
 
Meeting
 
of Shareholders
 
of Proximus
 
on
21 April 2021.
However,
 
the Board
 
of Directors
 
may,
 
in exceptional
 
circumstances
and upon
 
proposal
 
of the Nomination
 
and Remuneration
Committee,
 
temporarily
 
derogate
 
from
 
all elements
 
of the
Remuneration
 
Policy.
 
Exceptional
 
circumstances
 
shall
 
only
 
cover
situations
 
in which
 
the derogation
 
from the
 
Remuneration
 
Policy
is necessary
 
to serve
 
the long-term
 
interests
 
and sustainability
 
of
Proximus as a whole.
When
 
resolving
 
on derogations
 
from
 
the Remuneration
 
Policy,
 
the
Board
 
of Directors
 
must comply
 
with
 
the decision-making
procedure set out
 
in the Remuneration
 
Policy.
Any derogation
 
will be
 
communicated
 
at the
 
first
 
General
 
Meeting
 
of
Shareholders
 
following
 
the derogation
 
and will
 
be explained
 
in the
Remuneration Report
 
for the related
 
year.
Shareholders
 
votes
 
on previous
 
Remuneration
 
Report
The Remuneration
 
Policy
 
document
 
detailing
 
the general
 
principles
governing
 
our company
 
remuneration
 
policy
 
applicable
 
to the
members
 
of its
 
Board of
 
Directors
 
and its
 
Executive
 
Committee
 
has
been
 
submitted
 
to the
 
votes
 
of our
 
shareholders
 
at the
 
General
Assembly
 
of April
 
21, 2021
 
for the
 
first time.
The shareholders
 
have shown
 
their
 
support
 
and confidence
 
in our
Remuneration
 
Policy
 
by a very
 
substantial
 
majority
 
(97.5%),
 
which
strengthens
 
the choices
 
we have
 
made in
 
this domain
 
for the
future.
The Remuneration
 
Report,
 
also submitted
 
to the
 
votes of
 
our
shareholders
 
at the
 
General
 
Assembly
 
of April
 
21, 2021,
 
has been
approved
 
by 78.9%.
 
This
 
result
 
has prompted
 
us to
 
adopt even
more transparency
 
in this
 
report
 
and to
 
go further
 
in the readability
and the
 
level of
 
details
 
of the
 
disclosed
 
information,
 
as
 
the opinion
and trust
 
of our
 
shareholders
 
matters
 
much
 
for us.
 
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2021
I
127
Regulatory
 
framework
 
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2021
I
128
Cable
 
&
 
broadband
 
regulation
The Belgian
 
regulators’
 
decisions
 
of 29 June
 
2018 on the
broadband
 
and TV
 
market
 
analysis
 
have outlined
 
the regulation
 
of
Proximus’
 
FTTH fiber
 
and DSL
 
network
 
and of
 
the cable
 
networks.
 
In
terms
 
of pricing,
 
the regulators
 
have imposed
 
a “fair
 
pricing”
 
for the
FTTH monthly rental
 
fees.
Since 1 July 2020, new cable wholesale
 
prices entered
 
into force.
BIPT
 
decisions
 
stated
 
the need
 
to preserve
 
investment
 
incentives
 
for
fiber.
Concerning
 
the wholesale
 
fiber
 
pricing,
 
BIPT concluded
 
on 9
March
 
2021
 
that
 
the rates
 
that
 
Proximus
 
applies
 
for FTTH
wholesale
 
monthly
 
rentals
 
are fair,
 
i.e. they
 
do not
 
exceed
 
the costs
of an
 
efficient
 
operator
 
including
 
a reasonable
 
margin
 
and in line
with the
 
regulation
 
it set
 
in 2018.
 
These are
 
the access
 
prices other
operators
 
pay for
 
using
 
Proximus'
 
FTTH fiber
 
optic
 
network.
In terms
 
of Proximus’
 
access
 
to the cable
 
networks,
 
the decision
 
of
June
 
2018
 
grants
 
access
 
for Proximus
 
in geographical
 
areas
without
 
own next-generation
 
broadband
 
access
 
network.
In April
 
2021,
 
BIPT made
 
the first
 
step for
 
the preparation
 
of the
review
 
of the
 
Broadband
 
and TV
 
markets
 
of June
 
2018. The
regulatory
 
framework
 
foresees
 
indeed
 
that
 
the regulators
 
must
review
 
regularly
 
the market
 
that
 
are susceptible
 
to ex-
 
ante
regulation
 
on a
 
regular
 
basis.
 
Technical
 
and competitive
development
 
as well
 
as evolution
 
of needs
 
and consumptions
habits must be
 
taken into account.
In 2021,
 
BIPT has
 
also announced
 
its intention
 
to apply
 
the
Proximus
 
fiber
 
access
 
obligations
 
to Proximus
 
joint ventures
Fiberklaar
 
and Unifiber.
 
These will
 
be submitted
 
to the
 
access,
transparency,
 
non-discrimination
 
and price
 
control
 
obligations
imposed to
 
Proximus
 
based on
 
the 2018
 
decision.
 
The
preparation
 
of the
 
reference
 
offer
 
and the
 
determination
 
of the
underlying
 
costs
 
in the
 
context
 
of a fair
 
pricing
 
approach
 
is
expected to occur
 
in 2022.
The decision
 
of December
 
2019 on
 
the review
 
of the wholesale
provision
 
of high-quality
 
access (leased
 
lines and
 
similar
 
services)
market
 
entered
 
into
 
force
 
on 1
 
February
 
2020.
 
Alternative
 
operators
purchase
 
these
 
high-quality
 
access
 
services
 
to connect
 
sites
(companies,
 
base
 
stations,
 
interconnection
 
points,
 
etc.) that
 
they
cannot
 
reach
 
with
 
their
 
own infrastructure.
 
Proximus
 
has
to apply
 
a fair
 
pricing
 
for the
 
monthly
 
rental fees.
 
Considering
 
that
several
 
alternative
 
infrastructures
 
are already
 
present,
 
BIPT
foresees
 
a softer
 
regulation
 
in some
 
areas,
 
i.e. no
 
price
 
regulation
on active
 
access.
 
In 2021,
 
BIPT started
 
its exercise
 
to review
 
the list
 
of
these competitive
 
LEX (currently
 
121). Based
 
on this
 
analysis,
 
new
areas might
 
be added
 
or removed
 
from the
 
list.
 
The review
 
is
expected to take
 
place in 2022.
 
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2021
I
129
Dense Air Belgium
1x 45
Citymesh/Cegeka
 
15
Telenet
2 x15
OBEL
x 20
Proximus
 
20
Unallocated
2 x14.8
Telenet
 
x 14.8
OBEL
2
 
14.8
Proximus
 
15
Telenet
2
24.8
OBEL
 
x 24.8
Proximus
24.8
Telenet
2
10.2
OBEL
x11.6
Proximus
2x 12.4
900 MHz
Proximus
2x
 
10
2600 MHz
2100MHz
1800 MHz
800 MHz
1400 MHz
700 MHz
Radio
 
spectrum
 
Belgium
Multi-band
 
auction
On 23 December
 
2021,
 
the legislative
 
package
 
for the
 
multi-band
auction
 
(which
 
will include
 
the renewal
 
of the
 
existing
 
2G/3G
spectrum
 
licenses
 
(900 MHz,
 
1800 MHz
 
and 2100
 
MHz) as well
 
as
the granting
 
of new 5G
 
spectrum
 
(700 MHz,
 
1400 MHz
 
and 3500
MHz) was
 
published.
 
The package
 
includes
 
the reservation
of spectrum
 
for new
 
entrants
 
(30 MHz
 
duplex
 
in the
 
700, 900,
1800 and 2100
 
MHz bands).
The applications
 
by the
 
candidates
 
were due
 
by 16
 
February
2022.
 
The auction
 
is expected
 
to be
 
organized
 
mid 2022.
30/06/27
Proposed
Expirydates
All around
2042
 
*
 
with the possibility toextend
 
these existing licenses by terms
 
ofmax
 
6 months until an
 
auction will re-allocate the rights
**
 
2 blocks of
 
20MHz locallyoccupied by Citymesh/Cegeka andGridmax
 
until 7/5/2025 (regional licenses)
***
 
licenses granted on a
 
temporary basis until an auctionwillattribute
 
the final rights
BIPT
 
interim
 
measures
In order
 
to allow
 
operators
 
to deploy
 
5G within
 
the timeframe
foreseen
 
by the
 
European
 
Commission,
 
BIPT
 
has taken
 
several
interim initiatives.
On 15 June
 
2020,
 
BIPT granted
temporary
 
licenses
 
in the
3600-3800
 
MHz
 
band
to five
 
operators:
 
Proximus,
 
Orange,
Telenet,
 
Cegeka
 
& Entropia,
 
each
 
operator
 
receiving
 
40 MHz.
After
 
the subsequent
 
drop
 
out of
 
Entropia,
 
BIPT redistributed
the spectrum
 
among
 
the other
 
actors
 
on 13
 
October 2020.
Proximus,
 
Orange
 
& Telenet
 
have
 
now
 
each
 
been
 
granted
 
a block
 
of
50 MHz
 
TDD and
 
Cegeka
 
received
 
a block of
 
40 MHz TDD.
 
These
rights
 
will
 
run until
 
new rights
 
are granted
 
following
 
the upcoming
multiband
 
auction.
 
Operators
 
had the
 
obligation
 
to put
their
 
spectrum
 
in service
 
before
 
1 March 2021.
 
Operators
 
have to
pay a
 
yearly
 
fee of
 
105,000
 
per block
 
of 10
 
MHz. No
 
unique
fee is
 
due and
 
these
 
rights
 
are not
 
subject
 
to any
 
specific
 
coverage
 
obligation.
Concerning
 
the current
2G (900
 
MHz and 1800
 
MHz) and
 
3G
(2100
 
MHz)
licenses
 
which
 
expired
 
in March
 
2021,
 
BIPT decided
 
on
31 August
 
2021 on
 
a 2nd
 
extension
 
of these
 
licenses
 
until 15
March
 
2022
 
(a first
 
extension
 
was granted
 
in February
 
for the
period
 
15 March
 
until 15
 
September).
 
Same conditions
 
apply as in
the current
 
licenses.
 
Such extensions
 
may be
 
granted
 
until
 
new
rights are auctioned.
Overview of the overall
 
spectrum holdings and
 
the bands to be included
 
in the auctions
Existing spectrum
licenses currently
extended
 
until 15 March
2022
Expiry dates
Telenet
2 x 10
15/03/21*
15/03/21*
15/03/21*
OBEL
2 x 10
Renewal
2 x 30 MHz
New
spectrum
90 MHz
3.4 - 3.8
GHz
Unallo.
Citymes
h
Gridmax
20**
Unallocated
Citymes
h
Gridmax
20**
Unallocated
Telenet
50***
OBEL
50***
Unallocated
50
Proximus
50***
Citymes
h
Gridmax
20
Citymes
h
Gridmax
20
Unallocated
Citymes
h
Gridmax
 
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2021
I
130
 
Luxembourg
In
Luxembourg
, four
 
bidders
 
have
 
successfully
 
secured
 
5G
spectrum
 
in the
 
auction
 
that took
 
place
 
in mid-July
 
2020 for
 
700
MHz and 3,600
 
MHz frequencies.
In total,
 
the licenses
 
were
 
sold for
 
41.3
 
million
 
of which
 
Proximus
Luxembourg
 
is progressively
 
paying
 
its part.
 
Usage
 
rights
 
will be
 
granted
for an
 
initial
 
period
 
of 15 years
 
and the
 
licenses will
 
be renewable
 
at least
once for
 
a period
 
of five
 
years.
 
A number
 
of coverage obligations
 
apply
to license holders.
Proximus Luxembourg
Orange Luxembourg
Post Luxembourg
Luxembourg Online SA
700 MHz
2x10 MHz
2x10 MHz
2x10 MHz
-
3600 MHz
100 MHz
110 MHz
110 MHz
10 MHz
International
 
roaming
The “Roam-Like-At-Home”
 
(RLAH)
 
that completely
 
abolished
 
the
roaming
 
surcharges
 
has been
 
applicable
 
since June
 
2017 within
the
“Fair Use
 
Policy”
(FUP)
 
aimed at
 
preventing
 
abusive usage
 
of
retail
 
roaming
 
services
 
beyond periodic
 
travelling
 
in the EU.
The current
Roaming
 
Regulation
including
 
RLAH expires
 
on
30 June
 
2022. The
 
Commission
 
made a
 
proposal
 
to extend
 
the
Regulation,
 
and the
 
text was
 
submitted
 
to the
 
co-decision
procedure
 
between
 
the Commission,
 
the Parliament
 
and the
Council.
 
A final
 
political
 
agreement
 
has been
 
reached.
 
The main
highlights
 
of the
 
agreement
 
are the
 
following:
 
RLAH will
 
be
extended until 2032.
In addition,
 
the wholesale
 
roaming
 
charges,
 
the prices
 
that
operators
 
charge
 
each other
 
when their
 
customers
 
use other
networks
 
when roaming
 
in the EU,
 
will be capped
 
at
 
2 per
Gigabyte
 
(Gb)
 
from
 
2022
 
progressively
 
down to
 
1 in 2027.
Furthermore,
 
wholesale
 
caps
 
for voice
 
and SMS
 
will be
 
lowered
based
 
on a
 
two-step
 
glidepath
 
in 2022
 
and 2025.
 
If consumers
exceed
 
their
 
contract
 
limits
 
when roaming,
 
any additional
 
charges
cannot be higher
 
than the wholesale
 
roaming caps.
Concerning
 
the quality
 
of service,
 
roaming
 
providers
 
will be
 
obliged
to offer
 
the same
 
roaming
 
quality
 
as those
 
offered
 
domestically,
 
if
the same
 
conditions
 
are available
 
on the
 
network
 
in the
 
visiting
country.
 
To this
 
aim,
 
a provision
 
prohibits
 
practices
 
that
 
reduce
 
the
quality
 
of roaming
 
services
 
(e.g.
 
by switching
 
the connection
 
from
4G to 3G).
 
The roaming
 
provider
 
must publish
 
information
 
for the
reasons
 
for applying
 
less advantageous
 
conditions
 
while
 
rather
abroad
 
than
 
those
 
provided
 
domestically.
Roaming
 
customers
 
should
 
have
 
access
 
to emergency
 
services
 
and
should
 
benefit
 
from
 
caller location
 
transmission,
 
free of
 
charge.
Travellers
 
should
 
be informed
 
about
 
the means
 
of reaching
emergency
 
services,
 
including
 
those
 
designed
 
for disabled
 
people, in
the EU
 
country they
 
are visiting..
 
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Integrated annual report
 
2021
I
131
Termination rates
In the
 
context
 
of the
 
new Telecom
 
Code,
 
the EU
 
institutions
 
have
agreed
 
new rules
 
concerning
 
caps on
 
wholesale
 
mobile
 
and fixed
voice
 
termination.
 
The termination
 
rates are
 
the fees
 
that fixed
 
and
mobile
 
operators
 
pay to
 
other
 
fixed
 
and mobile
 
operators
 
to
terminate a call
 
on their network.
The Commission
 
adopted
 
on 18 December
 
2020 a binding
decision
 
setting
 
single
 
maximum
 
EU-wide
 
wholesale
 
mobile
 
and
fixed
 
termination
 
rates
 
(also
 
referred
 
to as
 
Eurorate).
 
This
 
Act
sets a
 
3-year
 
glidepath
 
for mobile
 
termination
 
rates (MTR)
 
and a
transition
 
period
 
for fixed
 
termination
 
rates (FTR).
 
For Belgium,
 
the
following rates will
 
be applicable.
Traffic originating
 
from outside the EU is subject to the regulated
EU-wide wholesale
 
caps in
 
cases where the non-EU termination
rates are equal
 
or below the
 
Eurorate.
This
 
regulation
 
entered
 
into
 
force
 
on 1 July
 
2021.
MTR
 
Previous
 
1/7/2021
 
1/1/2022
 
1/1/2023
As from
1/1/2024
ct/min
 
0.99
 
0.7
 
0.55
 
0.4
 
0.2
FTR
 
Previous
 
1/7/2021
As from
1/1/2022
ct/min
 
0.116
 
0.093
 
0.07
Coverage
 
and
 
quality
 
of
 
networks
Through
 
its
“Atlas”
 
project
, BIPT
 
publishes
 
detailed
 
information
 
on
the coverage
 
and quality
 
of experience
 
of the
 
mobile
 
and fixed
networks.
BIPT published
 
the last
 
edition of
 
its mobile
 
maps on 8
 
January
2021 (status
 
October
 
2020).
 
These maps
 
enable
 
the customers
 
to
verify
 
the coverage
 
of each
 
of the
 
three
 
mobile
 
operators
(Telenet/Base,
 
Orange
 
and Proximus)
 
individually
 
on the
 
map of
Belgium.
 
The maps
 
show
 
different
 
coverage
 
levels
 
(very good/
deep
 
indoor,
 
good/indoor,
 
satisfactory/outdoor).
 
They show
 
that,
for 4G,
 
Proximus
 
has the
 
most
 
extensive
 
coverage
 
for all
 
coverage
levels,
 
both in
 
terms
 
of territory
 
and population.
 
An update
 
of the
mobile Atlas is
 
foreseen in 2022.
Begin 2022,
 
BIPT published
 
a drive
 
test and
 
train test
 
study on
quality
 
of mobile
 
user
 
experience
 
offered
 
by the
 
three
 
mobile
operators.
 
The study
 
concludes
 
that the
 
performance
 
of mobile
networks
 
in Belgium
 
has been
 
stable or
 
has improved,
 
both for
voice
 
and data,
 
thanks
 
to advancements
 
in technology
 
as well
 
as
investments
 
and optimization
 
by the operators.
 
It highlights
 
that,
based
 
on international
 
experience,
 
Belgian
 
mobile operators
 
offer
very
 
good
 
quality.
 
For example,
 
in drive
 
tests,
 
Proximus
 
shows
excellent
 
results for call setup
 
times, video streaming
 
start times
and
 
Dropbox
 
performance,
 
and
 
in
 
train
 
tests,
 
Proximus
 
achieved
 
the
highest
 
score
 
for 19
 
out of
 
21 indicators
 
measured.
For fixed,
 
BIPT
 
continues
 
to publish
 
temporarily
 
aggregated
 
coverage
maps
 
of Proximus
 
and the
 
cable
 
operators
 
by different
 
download
speeds:
 
1 Mbps,
 
10 Mbps,
 
30 Mbps,
 
50 Mbps
 
and 100
 
Mbps. An
update of
 
the fixed
 
Atlas is
 
foreseen in
 
2022.
On 7 December
 
2021,
 
BIPT published
 
its “Fiber
 
Vademecum”
 
in
which it
 
aims to
 
inform
 
a broad
 
public
 
(end-users,
 
building-
owners,
 
operators
 
& public
 
authorities)
 
about fiber
 
and its
 
roll-
out. In
 
a later
 
phase,
 
BIPT will
 
include
 
a fiber
 
coverage
 
map.
On 23 December
 
2021, BIPT
 
published
 
the first
 
edition of
 
its
qualitative
 
study
 
on the
 
quality
 
and coverage
 
of fixed
 
and mobile
broadband
 
in Belgium.
 
The study
 
brings together the
 
results
 
of
many BIPT
 
surveys
 
published
 
before,
 
e.g. fixed
 
and mobile
coverage
 
of BIPT’s
 
Atlas,
 
fixed
 
service
 
quality
 
indicators,
 
mobile
experience
 
quality
 
indicators,
 
etc. An
 
update
 
of the study
 
is
foreseen for the
 
end of 2022.
 
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Proximus Group I
Integrated annual report
 
2021
I
132
Net
 
neutrality
By 3 judgments
 
adopted
 
on 2 September
 
2021, the
 
ECJ ruled
 
that
zero-rating
 
offers
 
of DT
 
and Vodafone
 
Deutschland
 
are not
compatible
 
with the
 
Open Internet
 
Regulation,
 
where
 
they impose
specific conditions upon
 
the Internet customer.
In its argumentation
 
the Court however
 
seems to make a broader
evaluation
 
regarding
 
zero
 
rating,
 
indicating
 
its incompatibility
 
with
 
net
neutrality
 
rules
 
when
 
offered
 
for commercial
 
reasons.
BEREC (the
 
body of
 
European
 
regulators)
 
is currently
 
reviewing
 
its
net neutrality
 
guidelines
 
and regulatory
 
practice
 
in the
 
EU. As soon
as the new
 
guidelines
 
will be made
 
public (June
 
2022), a short
transition
 
period
 
is expected
 
to allow
 
operators
 
to adapt
 
their
portfolio to the
 
new guidelines
Universal
 
service
 
 
social
 
tariffs
The Belgian
 
Government
 
intends
 
to review
 
the social
 
tariffs
 
for
telecom
 
services.
 
On 25
 
November
 
2021, BIPT,
 
on request
 
of the
Telecom
 
Minister,
 
launched
 
a public
 
consultation
 
in this
 
respect.
 
The
proposals
 
built upon
 
the existing
 
system
 
with legally
 
defined
reductions.
 
An increased
 
effort
 
would
 
be asked
 
from the
 
sector: the
automatic
 
granting
 
of the
 
reductions
 
for people
 
with
 
low
income,
 
the indexation
 
of the
 
reductions
 
and the
 
introduction
 
of a
mobile
 
plan
 
at a reduced
 
rate, targeting
 
specifically
 
hearing
 
or
visual
 
impaired
 
people
 
who require
 
specific
 
assistance.
 
The
consultation
 
ran until
 
18 January
 
2022.
 
The final
 
proposals
 
are
expected in 2022.
Transposition
of
 
EU
 
Code
The law
 
transposing
 
the new
 
EU Code
 
of end 2018
 
has been
finalized
 
and was published
 
on 31 December
 
2021. Some
obligations
 
will have
 
an impact
 
on the
 
business
 
(e.g. the
 
prepaid
mobile
 
consumers
 
having
 
the facility
 
to claim
 
the residual
credit
 
in case
 
of change
 
of operator
 
or the
 
scope
 
of end-users’
protection
 
being
 
extend
 
for several
 
provisions
 
to business
 
clients).
Concerning
 
the regulatory-technical
 
matters
 
(e.g.
 
numbering,
spectrum),
 
the text
 
mostly
 
follows
 
closely
 
the European
 
Code. The
new rules
 
have been
 
applicable
 
since 10
 
January
 
2022. However,
certain
 
provisions
 
will
 
require
 
the publication
 
of Royal
 
decrees
 
before
entering into force.
 
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Proximus Group I
Integrated annual report
 
2021
I
133
The
 
Proximus
 
share
 
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Proximus Group I
Integrated annual report
 
2021
I
134
Share
 
listing
Stock Market
First Market of Euronext Brussels
Ticker
PROX
ISIN code
BE0003810273
Bloomberg code
PROX BB
Nasdaq code
PROX-EB
Reuters code
PROX.BR
Proximus
 
share
 
performance
 
in
 
2021
Proximus
 
closed
 
2021
 
at €
 
17.1,
 
or 5.7%
 
higher than
 
the last
closing price of
 
2020.
The Proximus
 
share started the year
 
well,
 
with investors
 
given
additional
 
visibility
 
on the
 
company’s
 
fiber plans.
 
Fiber
partnerships
 
allow
 
for a
 
broader
 
and faster
 
fiber
 
coverage,
 
while
preserving
 
the company’s
 
capex
 
level.
 
End-February,
 
the
projection
 
of additional
 
operational
 
costs for
 
2021,
 
lead Proximus
 
to
guide
 
for a
 
softer
 
than
 
expected
 
2021 EBITDA.
 
The Proximus
 
share
recovered
 
from
 
the steep
 
decrease
 
in the
 
share
 
price,
 
after
which it
 
showed
 
some volatility
 
over the
 
year around
 
ongoing
uncertainties
 
on the
 
Belgian
 
telecom
 
market:
 
(i) the
 
conditions
 
for
 
the
postponed
 
spectrum
 
auction,
 
especially
 
regarding
 
potential
 
new
players;
 
(ii) the
 
sale process
 
of VOO
 
and potential
 
impact
 
on the
competitive
 
landscape
 
and (iii)
 
the potential
 
overlapping
 
fiber
deployment
 
in Belgium,
 
with Proximus’
 
pole position
 
leading
 
to
competitor announcements.
The Proximus
 
share
 
rose in
 
the last
 
month
 
of 2021
 
by 7%
 
on the
news
 
of Proximus
 
intending
 
to take
 
its subsidiary
 
TeleSign
 
public.
Proximus share price evolution 2021 vs. 3 indices (in %- rebased)
25%
20%
15%
10%
5%
0%
-5%
31 Dec
 
31 Jan
 
29 Feb
 
31 Mar
 
30 Apr
 
31 May
 
30 Jun
 
31 Jul
 
31 Aug
 
30 Sep
 
31 Oct
 
30 Nov
 
31 Dec
Proximus (PROX-BRU)
 
Belgium BEL-20 (BEL-20-ENX)
 
STOXX Europe 600/Telecommunications
 
(Capped) - SS (SXKP)
 
STOXX Europe 600 (SXXP-STX)
Source: Nasdaq
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p145i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Proximus Group I
Integrated annual report
 
2021
I
135
Key
 
figures
 
on
 
the
 
Proximus
 
share
Share
information
2012
 
2013
 
2014
 
2015
 
2016
 
2017
2018
IFRS15
2019
IFRS1
6
2020
 
2021
Share price
24.60
 
23.25
 
32.29
 
35.67
 
31.74
 
32.81
 
28.10
 
28.17
 
27.12
 
19.16
Share price low
 
20.80
 
16.32
 
20.78
 
27.93
 
25.31
 
26.42
 
19.31
 
21.96
 
15.01
 
15.95
Share price
 
on
22.21
 
21.55
 
30.10
 
30.00
 
27.36
 
27.35
 
23.62
 
25.52
 
16.21
 
17.14
Annual trading
volume
(number
of shares)
142,139,111
 
189,753,834
 
178,802,905
 
179,825,076
 
157,368,090
 
147,754,799
 
169,849,252
 
168,509,614
 
206,692,812
 
199,060,570
Average trading
volume per
day (number of
shares)
555,231
 
744,133
 
701,188
 
702,442
 
612,327
 
579,431
 
650,763
 
660,822
 
804,252
 
774,555
Number of
outstanding
shares
318,321,665
 
319,204,181
 
321,230,597
 
322,003,751
 
322,637,103
 
322,638,989
 
322,703,817
 
322,982,509
 
322,690,026
 
322,741,364
Weighted
average
number of
outstanding
shares
318,011,049
 
318,759,360
 
320,119,106
 
321,767,821
 
322,317,201
 
322,777,440
 
322,649,917
 
322,918,006
 
322,752,015
 
322,751,990
Market
capitalization
on 31
December
(
 
billion)
1
7.07
 
6.88
 
9.67
 
9.66
 
8.83
 
8.82
 
7.62
 
8.24
 
5.23
 
5.53
EBITDA
 
5.62
 
5.33
 
5.48
 
5.12
 
5.38
 
5.49
 
5.56
 
5.19
 
5.95
 
5.66
Earnings
 
2.24
 
1.98
 
2.04
 
1.50
 
1.62
 
1.62
 
1.58
 
1.16
 
1.75
 
1.37
Price/
earnings on 31
December
3
9.92
 
10.9
 
14.73
 
20.03
 
16.86
 
16.90
 
15.00
 
22.09
 
9.27
 
12.48
Ordinary
dividend
(gross)
4
1.68
 
1.68
 
1.00
 
1.00
 
1.00
 
1.00
 
1.00
 
1.00
 
0.70
 
0.70
Interim
dividend
(gross)
0.81
 
0.50
 
0.50
 
0.50
 
0.50
 
0.50
 
0.50
 
0.50
 
0.50
 
0.50
Gross dividend
11.20%
 
10.10%
 
4.98%
 
5.00%
 
5.48%
 
5.48%
 
6.35%
 
5.88%
 
7.40%
 
7.00%
yield
EBITDA
NA
NA
5.15
5.38
5.57
5.65
5.78
5.79
5.69
5.49
Earnings
NA
NA
1.85
1.68
1.71
1.72
1.71
1.76
1.75
1.38
Price/
earnings on 31
NA
NA
16.28
17.87
15.96
15.92
13.78
14.51
9.25
12.44
December
1
Calculation based on number of outstanding shares
 
& last closing price of the respective year
2
Corresponds to the Net
 
Income (Group Share) / weighted
 
average number of outstanding shares
3
Based on the last closing price of the
 
respective year
4
Accounting view (not cash view)
high
31 December
Key data per share - on reported basis
Key data per share - on underlying basis
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p146i18
 
proximus-2021-12-31p146i20
 
proximus-2021-12-31p146i22 proximus-2021-12-31p146i24 proximus-2021-12-31p146i26 proximus-2021-12-31p146i28 proximus-2021-12-31p146i30 proximus-2021-12-31p146i32 proximus-2021-12-31p146i34
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
136
Our
 
shareholders
Proximus’
 
main
 
shareholder
 
is the
 
Belgian
 
Government,
 
owning
53.51%
 
of the
 
company’s
 
shares.
 
Proximus
 
held 4.52%
 
of its
 
own
shares
 
end-2021.
 
The free
 
float represented
 
41.97%
 
or nearly
142 million
 
shares.
 
About
 
2/3
rd
was held
 
by institutional
shareholders.
Proximus’
 
main
 
institutional
 
shareholders
 
are located
 
in the
 
United
 
States
and Germany, followed
 
by UK and
 
France.
Proximus
 
shares
 
ownership
 
– 31
 
December
 
2021
Number of
% shares
 
% Voting
 
rights
shares
% Dividend
rights
Number of
shares with
Number of
shares with
Proximus
 
shares ownership
 
Institutional
 
shares
 
per geography
Own shares
4.52%
Rest of the world
6%
Source: Shareholder analysis November 2021
% of identified institutional shareholders - Nasdaq
Evolution
 
of
 
treasury
 
shares
The voting
 
rights
 
of all
 
treasury
 
shares
 
are suspended
 
by law.
Proximus
 
has 14,590,069
 
treasury
 
shares
 
that are
 
not entitled
 
to
dividend
 
rights
 
and 693,702
 
treasury
 
shares
 
that are
 
entitled
 
to
dividend rights.
End 2021,
 
Proximus held
 
15,283,771
 
treasury shares,
representing
 
4.52%
 
of the
 
total number
 
of shares.
 
In the
 
course
 
of
2021,
 
6,438
 
treasury
 
shares were
 
used in
 
a Discounted
 
Share
Purchase Plan, and
 
no options
 
were exercized
1
.
Under
 
Belgian
 
law,
 
companies
 
are prohibited
 
from owning
 
more
 
than
20% of their
 
outstanding share
 
capital.
1
 
For more information, please see Remuneration Report
Ownership
Geography
voting rights
dividend rights
Belgian state
180,887,569
53.51%
56.05%
55.93%
180,887,569
180,887,569
Proximus own shares
15,283,771
4.52%
0.00%
0.21%
0
693,702
Free-float
141,853,795
41.97%
43.95%
43.86%
141,853,795
141,853,795
Total
338,025,135
100.00%
100.00%
100.00%
322,741,364
323,435,066
End of period 2020
15,335,109
Changes through liquidity contract
-44,900
Discount Purchase Plan employee
-6,438
End of period 2021
15,283,771
 
proximus-2021-12-31p3i0
 
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Proximus Group I
Integrated annual report
 
2021
I
137
Transparency declarations
According
 
to Proximus'
 
bylaws,
 
the thresholds
 
as from
 
which
 
a
shareholding
 
needs
 
to be disclosed
 
have been
 
set at 3%
 
and 7.5%,
in addition
 
to the legal
 
thresholds
 
of 5%
 
and each
 
multiple
 
of 5%.
In 2021,
 
Blackrock
 
Inc. notified
 
of the
 
changes
 
in their
 
Proximus
shareholding as listed
 
below.
To Proximus’
 
knowledge,
 
no other
 
shareholder
 
owned
 
3% or more
of Proximus’
 
outstanding
 
shares
 
as at
 
31 December
 
2021.
Notifications
 
of important
 
shareholdings
 
to be made
 
according
 
to
 
the
Law of
 
2 May
 
2007 or
 
Proximus’
 
bylaws
 
should
 
be sent
 
to
FSMA on
 
trp.fin@fsma.be
Proximus
 
on investor.relations@proximus.com
Voting rights
Total incl. equivalent financial
instruments
Date on which
threshold was
Reason for
# voting rights
after the notified
transaction
% voting rights
in total of
338,025,135
# voting rights
after the notified
transaction
% voting rights
in total of
338,025,135
Shareholder remuneration
Dividend
 
policy
End March
 
2020,
 
Proximus
 
announced
 
its #inspire2022
 
strategy
 
in
its Capital
 
Markets
 
Day. This
 
included
 
a substantial
 
increase
 
in
network
 
investments
 
driven by
 
the replacement
 
of its
 
historical
copper
 
network
 
with future
 
proof fiber.
 
Proximus
 
is funding
 
the
deployment
 
of its
 
fiber
 
network
 
through
 
an optimized
 
capital
structure,
 
completed
 
by selective
 
asset sales.
 
Notwithstanding
 
its
elevated
 
investment
 
needs,
 
Proximus
 
remains
 
committed
 
to an
attractive
 
remuneration
 
for its
 
shareholders
 
and intends
 
to return
over the
 
result
 
of 2021
 
an annual
 
gross dividend
 
of
 
1.2 per share.
crossed
Notified on
Notifier
notification
voting rights
voting rights
22/12/2021
23/12/2021
Blackrock Inc.
<5%
15,703,354
4.65%
19,737,319
5.84%
14/12/2021
15/12/2021
Blackrock Inc.
>5%
17,195,302
5.32%
20,444,804
6.05%
29/11/2021
30/11/2021
Blackrock Inc.
<5%
16,303,286
4.82%
20,071,991
5.94%
03/05/2021
05/05/2021
Blackrock Inc.
>5%
17,759,882
5.25%
21,428,015
6.34%
19/04/2021
20/04/2021
Blackrock Inc.
<5%
16,687,485
4.94%
21,218,964
6.28%
19/03/2021
23/03/2021
Blackrock Inc.
>5%
20,310,795
6.01%
21,112,877
6.25%
18/03/2021
19/03/2021
Blackrock Inc.
<5%
16,571,579
4.90%
17,362,144
5.14%
11/03/2021
15/03/2021
Blackrock Inc.
>5%
17,238,739
5.10%
17,479,702
5.17%
09/03/2021
11/03/2021
Blackrock Inc.
<5%
16,735,756
4.95%
17,000,310
5.03%
05/03/2021
08/03/2021
Blackrock Inc.
>5%
17,108,986
5.06%
17,447,512
5.16%
19/02/2021
23/02/2021
Blackrock Inc.
<5%
16,844,452
4.98%
17,383,484
5.14%
12/02/2021
15/02/2012
Blackrock Inc.
>5%
17,113,631
5.06%
17,996,854
5.32%
11/02/2021
12/02/2021
Blackrock Inc.
<5%
16,834,542
4.98%
17,829,236
5.27%
09/02/2021
10/02/2021
Blackrock Inc.
>5%
17,042,951
5.04%
18,026,365
5.33%
29/01/2021
01/02/2021
Blackrock Inc.
<5%
16,704,478
4.94%
17,848,810
5.28%
26/01/2021
27/01/2021
Blackrock Inc.
>5%
16,948,539
5.01%
17,971,426
5.32%
25/01/2021
26/01/2021
Blackrock Inc.
<5%
16,850,177
4.98%
17,848,436
5.28%
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p5i4
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
138
The 2021
 
dividend
 
return
 
is in line
 
with Proximus’
 
announced
dividend
 
policy
 
over the
 
period
 
2020-2022.
 
On an annual
 
basis,
the proposed
 
dividend
 
is reviewed
 
and submitted
 
to the
 
Board of
Directors,
 
in order
 
to keep
 
strategic
 
financial
 
flexibility
 
for future
growth,
 
organically
 
or via
 
selective
 
M&A, with
 
a clear
 
focus on
 
value
creation.
 
This
 
also
 
includes
 
confirming
 
appropriate
 
levels
 
of
distributable reserves.
The shareholder
 
remuneration
 
policy
 
is based
 
on a number
 
of
assumptions
 
regarding
 
future
 
business
 
and market
 
evolutions
 
and
 
may
be subject
 
to change
 
in case
 
of unforeseen
 
risks or events
 
outside the
company's control.
Dividend
 
over
 
the
 
result
 
2021
On 17
 
February
 
2022,
 
the Board
 
of Directors
 
approved
 
to propose
 
to
the Annual
 
General
 
Shareholders’
 
Meeting
 
of 20
 
April 2022
 
to
return
 
over
 
the result
 
of 2021
 
a gross
 
dividend
 
of
 
1.20
 
per share,
 
of
which
 
0.50 interim
 
dividend
 
per share
 
was paid
 
in December
2021.
After
 
approval
 
by the
 
Annual Shareholders’
 
Meeting,
 
the normal
dividend
 
of
 
0.70 per
 
share will
 
be paid on
 
29 April
 
2022, with
record
 
date on
 
28 April
 
2022 and
 
ex-dividend
 
date on
 
27 April
2022.
This
 
brings
 
the total
 
declared
 
dividend
 
over the
 
result
 
of 2021
 
to
387 million.
Investor
 
relations
Proximus
 
Investor
 
Relations
 
(IR) aims
 
at ensuring
 
open
communication
 
with the
 
Belgian
 
and international
 
investment
world
 
on a
 
regular
 
basis.
 
Through
 
transparent,
 
consistent
 
dialog
 
with
investors
 
and financial
 
analysts,
 
the Group
 
strives
 
for a fair
 
share
value
 
based
 
on high-quality
 
financial
 
information.
To keep
 
Proximus’
 
current
 
and potential
 
shareholders
 
informed,
Proximus’
 
management
 
speaks
 
to the
 
financial
 
community
 
on a
regular
 
basis.
 
Each
 
quarterly
 
results
 
announcement
 
is followed
 
by
 
a
conference
 
call and
 
investor/analyst
 
presentation
 
during
 
which
maximum
 
time
 
is reserved
 
for a
 
“questions
 
& answers”
 
session.
Financial
 
calendar
2
11 April 2022
Start of quiet period ahead of Q1 2022 results
20 April 2022
Annual Shareholders’ meeting (AGM)
29 April 2022
Dividend payment (to be approved by AGM)
29 April 2022
Announcement of Q1 2022 results
11 July 2022
Start of quiet period ahead of Q2 2022 results
29 July 2022
Announcement of Q2 2022 results
10 October 2022
Start of quiet period ahead of Q3 2022 results
28 October 2022
Announcement of Q3 2022 results
2
 
Note that these dates may be subject to change
Throughout
 
2021
 
Proximus
 
has organized
 
several
 
roadshows
 
with
top management
 
in a virtual
 
mode, following
 
the COVID-19
pandemic.
 
Furthermore,
 
Proximus
 
has participated
 
in several
 
major
international
 
investment
 
virtual
 
conferences.
 
In all
 
these activities,
management
 
is supported
 
by the
 
Investor
 
Relations
 
team (IR).
The Proximus
 
IR team
 
offers
 
daily
 
support
 
to the
 
retail
 
and
institutional
 
shareholders
 
as well
 
as to
 
the sell-side
 
analysts.
A strict quiet period is observed before
 
the communication
 
of the
quarterly results.
 
The start of the quiet period is published on the
Proximus Investor Relations
 
website.
proximus-2021-12-31p149i2 proximus-2021-12-31p28i2
Non-financial
 
Statements
Proximus Group I
Integrated annual report
 
2021
I
139
 
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Proximus Group I
Integrated annual report
 
2021
I
140
Materiality and
 
stakeholder
 
dialogue
Materiality
 
determination
In 2021, we conducted
 
a new materiality
 
assessment in
partnership
 
with
 
external
 
consultants.
 
This enabled
 
us to
 
update
 
the
list
 
of relevant
 
topics
 
while
 
taking
 
into account
 
the latest
developments
 
in materiality
 
assessment.
 
The materiality
 
matrix
resulting
 
from
 
this
 
process
 
was validated
 
by the
 
Board
 
of Directors.
 
It
serves
 
as a
 
guide
 
to set
 
strategic
 
priorities
 
going
 
forward
 
and
identify
 
areas
 
of mutual
 
benefit
 
between
 
Proximus
 
and all
 
our
stakeholders.
The following
 
steps
 
were
 
taken
 
to conduct
 
the materiality
assessment:
Step
 
1
Internal
 
& external
 
analysis
We conducted
 
extensive desk
 
research to establish
 
the full
universe of topics
 
potentially relevant to our strategy. Our
analysis included a range
 
of internal sources
 
such as past
stakeholder surveys
 
and strategy
 
documents, as
 
well as publicly
available industry benchmarks and
 
a review of sector peers.
Step
 
2
Senior
 
management
 
engagement
We consulted
 
the Executive Committee
 
to establish a
 
shortlist
 
of
the most relevant topics to Proximus
 
and get their
Step
 
3
Stakeholder
 
consultation
We conducted online quantitative research as well as
 
in-depth
qualitative interviews to
 
assess the importance
 
of each material
topic in the eyes of our stakeholders. The stakeholder
 
groups
consulted were: investors, employees
 
and the Proximus
assessment of
 
each topic’s
 
impact on
 
Proximus long-term
success.
leadership
 
team, political
 
and regulatory
 
stakeholders, suppliers,
partners, enterprise customers, journalists & opinion
 
leaders, and
a general public sample including residential customers
 
as well as
non-customers.
Step
 
4
Materiality
 
matrix
 
development
Based on the consultation’s findings, we plotted these
 
most
important topics, and
 
their potential impact
 
on Proximus’ long-
term business success on a matrix. The integrated materiality
matrix combines the view of our
 
stakeholders and of the
Proximus Leadership
 
Team. The
 
topics are
 
clustered in
 
5 areas
 
of
interest: customer trust, digital society, environmental impacts,
employee welfare and business conduct.
 
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Proximus Group I
Integrated annual report
 
2021
I
141
List
 
of material
 
topics
 
and
 
definitions
Customer trust
Delivering
 
customer
 
promises:
Deliver
 
high-quality
 
reliable
digital
 
services
 
and great
 
customer
 
support.
Customer
 
value
 
for money:
Give our
 
customers
 
the best
 
possible
service at the
 
best possible price.
Business conduct
Business
 
conduct
 
& ethics:
Maintain
 
the highest
standards
 
of integrity
 
in all
 
aspects
 
of the
 
business,
including ethical data
 
management.
Responsible
 
supply
 
chain:
Source
 
materials
 
in a way
that respects people
 
and the planet.
Human
 
rights:
Respect
 
human rights
 
across
 
our entire
supply chain.
Environmental impacts
Energy
 
and CO
2
 
emissions:
Reduce
 
energy
 
and CO
2
 
emissions,
and use
 
renewable
 
energy
 
resources.
Sustainable
 
infrastructure:
Minimize
 
the environmental
impacts
 
of the
 
digital
 
infrastructure
 
(e.g.
 
materials
 
and
energy).
Circular
 
economy:
Reuse
 
and recycling
 
of electronic
 
devices
and materials.
Environmental
 
solutions:
Develop
 
solutions
 
for consumers
and businesses
 
to reduce
 
their environmental
 
footprint.
Digital society
Digital
 
access:
Bridge
 
the digital
 
gap with
 
affordable
high-speed
 
internet
 
for every
 
Belgian
 
home.
Digital
 
inclusion:
Equip people
 
with digital
 
skills
 
for better
learning, employability
 
and online
 
safety.
Privacy
 
& data
 
security:
Ensure
 
that data
 
is secure
 
and
personal information
 
is protected.
Support
 
digital
 
infrastructure
 
for Belgian
 
society:
Help
 
public
 
service
 
organizations
 
(hospitals,
 
government,
schools...) build their
 
digital infrastructure.
Access
 
to essential
 
services:
Create
 
tools
 
to develop
more
 
inclusive
 
access
 
to essential
 
services
 
(e.g.
 
health
 
or
banking apps).
Support
 
small and
 
medium
 
business
 
development:
Help
 
Belgian
 
SMEs
 
grow
 
by providing
 
digital
 
tools and
infrastructure.
Address
 
5G concerns:
Educate
 
the public
 
on 5G
through evidence-based
 
research.
Mental
 
health:
Address
 
digital
 
issues
 
that can
 
affect
 
mental
health
 
(e.g.
 
overconsumption,
 
freedom
 
of choice).
Employee welfare
Employee
 
up-skilling,
 
re-skilling
 
& employability:
Support
employees
 
with opportunities
 
to develop
 
their skills
throughout their employment.
Diversity
 
& Inclusion:
Cultivate
 
a diverse
 
workforce,
 
an
inclusive
 
company
 
culture,
 
and make
 
minorities
 
visible
 
in our
marketing.
Workplace
 
wellness:
Ensure
 
the physical
 
and mental
well-being of our
 
employees.
 
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Proximus Group I
Integrated annual report
 
2021
I
142
Key
 
highlights
 
of 2021
 
materiality
 
assessment
Compared
 
to the
 
previous
 
materiality
 
assessment
 
performed
 
in
2018,
 
the following
 
major
 
changes
 
have been
 
identified.
On the
 
list of
 
material
 
topics:
3 new material
 
topics
 
have emerged:
Workplace
 
wellness,
Human rights
and
Support
 
digital
 
infrastructure
 
for Belgian
society.
The previous
 
topic
Pricing
 
and billing
 
transparency
is now
included in the
 
topic
Customer value for
 
money.
On the
 
evolution
 
of topics:
The most important
 
issues to
 
our stakeholders
 
have a
strong
customer
 
focus
:
Delivering
 
customer
 
promises,
 
Privacy &
 
data
security
and
Customer
 
value for
 
money
. This was
 
already the
case in our previous
 
materiality study.
Business conduct
topics rank highly on both axes especially
Human rights
and
Business conduct &
 
ethics
.
 
These topics
also tend to be
 
areas of consistently high expectations over
time.
This year however,
 
we observe an
increased importance
 
of
employee
 
topics
,
Workplace
 
wellness
and
Employee
up-skilling,
 
re-skilling
 
& employability
, which emerged
 
as key
topics for our
 
stakeholders and our
 
leaders.
There is an
 
increased
 
focus on
environmental
 
impacts
, with
Energy
 
and CO
2
 
emissions,
 
Sustainable
 
infrastructure
and
Environmental
 
solutions
all rising
 
in importance
 
according
 
to
stakeholders.
Digital society
topics that
 
are core
 
to our business
 
(
Digital
access,
 
Support
 
digital
 
infrastructure
 
for Belgian
 
society
) rank
among the
 
highest in
 
this category.
 
Topics linked
 
to health
(
Mental health,
 
Address 5G
 
concerns
) have become
 
less
material according to
 
stakeholders.
We recognize
 
that
 
all these
 
20 topics
 
are relevant
 
and therefore
 
are
all taken
 
into
 
account
 
by Proximus
 
in the
 
execution
 
of its strategy.
However, in the specific context
 
of annual reporting,
 
we limit the
number
 
of material
 
topics that
 
are reported
 
in this
 
annual
 
report
 
to
the
 
14
 
most important topics,
 
included in
 
zones "Very
 
High" &
"High" as shown
 
in the matrix
 
below.
Materiality
 
Matrix
 
2021
 
Customer
 
trust
 
Environmental
 
impacts
 
Employee
 
welfare
 
Business
 
conduct
 
Digital society
Issues rising
 
in importance
High
Very
 
high
Delivering
 
customers
 
promises
Customer
 
value for
 
money
Digital
 
access
Human rights
Workplace
 
wellness
Sustainable
 
infrastructure
Employee
 
up-skilling,
 
re-skilling
 
& employability
Responsible
 
supply chain
Environmental
 
solutions
Digital inclusion
Support
 
digital
 
infrastructure
for Belgian society
Energy and
 
CO
2
emissions
Diversity
 
& Inclusion
Mental health
Address
 
5G concerns
Relevant
Very high
Impact on
 
Proximus
 
business
 
succes
Very high
Importance
to
stakeholders
 
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Proximus Group I
Integrated annual report
 
2021
I
143
Correspondence
 
between
 
Proximus
 
most
 
material
 
topics
and the
 
SASB sector-specific
 
topics
To ensure
 
our identified
 
priorities
 
are aligned
 
with the
 
SASB sector-specific
 
topics
 
we linked
 
our
most
 
important
 
topics
 
to the
 
SASB
 
topics
 
for the
 
sector
 
"Telecommunication
 
services".
 
See table
below:
SASB topics
 
Proximus material topics
GHG Emissions
 
Energy and CO
2
 
Emissions
Energy Management
 
Energy and CO
2
 
Emissions
Sustainable Infrastructure
Customer Privacy
 
Privacy & Data Security
Data Security
 
Privacy & Data Security
Labor Practices
 
Human Rights
Employee Health & Safety
 
Workplace Wellness
Employee Engagement, Diversity & Inclusion
 
Diversity & Inclusion
Employee upskilling,
 
reskilling & employability
Product Design & Lifecycle Management
 
Circular Economy
Supply Chain Management
 
Responsible Supply Chain
Materials Sourcing & Efficiency
 
Circular Economy
Stakeholder
 
dialogue
We foster
 
the relationship
 
with all
 
our stakeholders.
 
Therefore,
 
we
will continue
 
to manage
 
a solid
 
governance
 
and a clear
 
ethical
compass. Responsibly and
 
respectfully.
First of all, we strive to improve our ESG measures
(environmental,
 
social
 
and corporate
 
governance)
 
by defining
 
a
clear
 
improvement
 
strategy,
 
setting
 
up clear
 
action
 
plans
 
and
integrating
 
them
 
in the
 
long-term
 
incentives
 
for top
 
management.
In order
 
to stay
 
relevant,
 
we want
 
to engage
 
with
 
all stakeholder
groups on a
 
more structured
 
and regular basis:
We involve
 
our stakeholders
 
on a day-to-day
 
basis in
 
what we
do to respond
 
to specific demands.
In 2021,
 
we conducted
 
a new
 
materiality
 
assessment.
 
The new
materiality
 
matrix
 
was validated
 
by our Board
 
of Directors.
 
We
repeat this
 
assessment
 
every 3
 
years.
 
The next
 
one will
 
be held
 
in
2024.
In 2021,
 
we issued
 
a Public
 
Affairs
 
policy (internal
 
document)
defining how to
 
engage with public
 
authorities.
Proximus
 
is an autonomous
 
public
 
enterprise
 
with the
 
Belgian
state
 
as a
 
majority
 
shareholder,
 
resulting
 
in regular
 
interactions
with
 
policymakers.
 
We actively
 
engage
 
with decision
 
makers
 
on
every political
 
level and
 
support
 
activities
 
which
 
foster
 
public
debate
 
about
 
the consequences
 
of a rapidly
 
changing
 
and
increasingly
 
digital
 
world.
 
Through
 
our membership
 
of various
(business)
 
associations,
 
we also
 
engage with
 
politicians
 
at the
Belgian and European
 
level.
Proximus
 
refrains
 
from
 
any funding
 
of political
 
parties,
 
political
individuals
 
or government
 
institutions.
 
Our management
 
upholds
strict
 
standards
 
on ethical
 
and transparent
 
behavior.
 
In
 
the past
years,
 
Proximus
 
has always
 
had the
 
policy
 
to approach
policymakers directly.
We consider
 
the following
 
groups
 
as our
 
stakeholders:
 
consumer
 
and
corporate
 
customers,
 
employees,
 
investors,
 
partners,
 
suppliers,
government
 
& regulatory
 
bodies,
 
press,
 
start-up
 
communities and
thought leaders.
 
proximus-2021-12-31p3i0
 
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Proximus Group I
Integrated annual report
 
2021
I
144
Stakeholder
group
What they expect
 
How we engage
Main topics and
concerns in 2021
Our response
Employees
Benefit
 
from a
 
safe and
Every
 
year,
 
we organize
More open
 
and transparent
We communicated
 
our strategic
 
ambitions
 
to
flexible
 
work
 
environment
multiple
 
surveys,
 
Speak Up,
communication.
all employees
 
during
 
a digital
 
event,
 
viewed
which
 
ensures
 
their
 
physical
to have
 
a better
 
view on
 
the
Bring
 
the leadership
 
closer to
simultaneously
 
by 7,300
 
employees.
and mental
 
well-being.
employee
 
engagement.
the employees
 
and strategic
We offer
 
re-skilling
 
and up-skilling
 
opportunities
Receive
 
opportunities
 
and
By promoting
 
a culture
 
of
alignment.
and invest
 
massively
 
in training
 
in the
 
domains
challenges
 
fitted
 
to their
openness
 
and transparency,
Stronger
 
customer
 
focus.
of the
 
future.
ambitions.
each
 
employee
 
is
Mental
 
well-being.
During
 
the COVID-19
 
crisis, we
 
reached
Have
 
the possibility
 
to
encouraged
 
to speak
 
up
out more
 
often
 
to our
 
employees
 
to inform,
develop
 
and adapt
 
their
and share
 
his/her
 
concerns
reassure
 
and motivate
 
them. We
 
launched
skills
 
to find
 
opportunities
with his/her
 
management,
specific
 
initiatives
 
to allow
 
employees
 
to connect
in a
 
changing
 
employment
colleagues
 
but also
 
HR
together
 
as a team
 
in a digital
 
way.
market
 
and to
 
evolve in
 
a
department.
To facilitate
 
digital
 
communication
 
and
company
 
adopting
 
new
Based
 
on the
 
feedback
collaboration,
 
we offer
 
our employees
 
a set
 
of
ways
 
of working.
of the
 
employees,
 
action
secure
 
and user-friendly
 
digital
 
tools that
 
can be
Positively
 
contribute
 
to the
plans
 
are designed
 
and
used
 
on any
 
device.
environment
 
and to
 
society
implemented
 
to address
 
the
Close
 
follow
 
up of
 
employee
 
experience
as a
 
whole.
concerns.
via regular
 
short surveys
 
and adapt
 
and act
faster
 
on specific
 
topics
 
(e.g. COVID-19
 
crisis
management,…).
We promote
 
a positive
 
physical
 
and mental
health
 
environment
 
in the workplace
 
with
initiatives
 
such as
 
a Work
 
Smarter
 
Charter:
 
a set
of guidelines
 
for a
 
better life-work
 
balance.
A large
 
number
 
of initiatives,
 
sponsorships
 
and
collaborations
 
have been
 
put in
 
place to
 
build a
more
 
inclusive
 
culture.
Residential
Receive
 
high-quality
We communicate
 
and
Stay
 
connected
 
with
 
family
 
and
Numerous
 
initiatives
 
during COVID-19
 
crisis to
customers
products
 
and services
 
at a
engage
 
with customers
 
and
friends
 
during
 
the COVID-19
 
crisis
enable
 
our customers
 
to stay
 
connected.
and small
fair
 
price.
prospects
 
through
 
mass-
and be
 
able to
 
work,
 
study or
 
run a
With the
 
new digital
 
bill the
 
customers
 
have a
businesses
That
 
Proximus
 
delivers
 
on
communication
 
channels
business
 
from home.
clear
 
and transparent
 
view on
 
their invoices
customer
 
promises.
(TV,
 
radio,
 
printed
 
press,
Have
 
relevant
 
and differentiating
We improved
 
digital
 
customer
 
interactions.
Always
 
be up
 
to date
 
on
online),
 
direct channels
customer
 
solutions.
We doubled
 
download
 
speed in
 
our Flex
 
&
the latest
 
trends in
 
terms
(social
 
media, email,
 
sms …)
Have
 
seamless
 
and frictionless
Business
 
Flex Fiber
 
offerings
 
and offer
 
more
of connectivity
 
and an
and can
 
be reached
 
via
access
 
to the
 
best
 
content
 
and
data
 
for the
 
same price
 
for some
 
of our
 
Flex
effortless
 
user experience.
phone,
 
shops,
 
webform,
digital
 
experiences.
packs.
Have
 
unfiltered
 
access
 
to
social
 
media messages,
 
etc.
Enjoy
 
great network
 
quality
 
with
We offer
 
easy access
 
to essential
 
services
the digital
 
world and
 
to
Our customers
 
have access
high reliability.
such as
 
our Pickx
 
entertainment
 
platform,
 
the
be connected
 
with what
to a
 
broad
 
self-service
 
portal
Stay
 
on top
 
of new
 
digital
eHealth
 
platform
 
Doktr and
 
the financial
 
app
matters
 
to them.
 
To be
 
able
(MyProximus)
 
where
 
they
evolutions
 
and discover
 
innovative
Banx.
to engage
 
with friends
 
&
can manage
 
their products,
digital
 
services.
We enable
 
them to
 
get insight
 
into their
family,
 
to work
 
and to
 
enjoy
consult
 
bills,
 
etc.
Be more
 
conscious
 
about
 
the
ecological
 
footprint
 
with MyFootprint
 
and to
the best
 
entertainment,
Including
 
our customers
 
in
environment
 
and the
 
local
monitor
 
their
 
consumption
 
with EnergieID.
wherever
 
you are.
our operations
 
is key for
 
us
economy
 
in a globalizing
 
world.
Accelerated
 
roll-out
 
of fiber
 
and further
 
roll-out
That
 
Proximus
 
ensures
 
the
to respond
 
the best
 
we can
of 5G.
security
 
of their
 
privacy
 
&
to their
 
needs.
 
We thus
 
set
data.
up ways
 
to continuously
That
 
Proximus
 
plays
 
its role
co-create
 
with
 
customers
as a
 
key player
 
in Belgium
through
 
design thinking
and to
 
contribute
 
to the
sessions
 
and focus
 
groups.
society
 
they live
 
in.
Our “Voice
 
of the Customer”
project
 
allows
 
us to
 
track
customer
 
feedback
 
and act
on it
 
swiftly.
Enterprise
Proximus
 
to show
Next
 
to our
 
regular
The focus
 
remains
 
to keep
 
their
Continued
 
focus
 
on projects
 
that increase
 
the
customers
leadership,
 
ownership
interaction
 
through
 
our
business
 
up and
 
running
 
during
customer
 
experience
 
in their
 
key journey’s
 
with
and partnership, a perfect
account
 
managers,
 
contact
the pursued
 
COVID-19
 
crisis,
Proximus
 
(both
 
physical
 
& digital).
mixture
 
of guiding
 
them,
centers,
 
digital
 
channel
 
and
with
 
challenges
 
on teleworking,
Vertical
 
customer
 
segmentation
 
to understand
taking
 
care of
 
them, and
indirect
 
partner
 
channel,
rethinking
 
telephony,
 
investing
our customers’
 
context
 
better
 
and tailor
 
our
working
 
with them.
we also
 
engage with
 
our
in cloud
 
and web
 
portals,
 
and
portfolio
 
& services
 
to their
 
needs.
That
 
Proximus
 
not only
customers
 
through
 
regular
reviewing
 
the physical
 
workspace.
We help
 
enterprises
 
with their
 
digital
serves
 
their connectivity
surveys,
 
feedback
 
meetings
More than
 
ever, security
 
is high
 
on
transformation
 
in various
 
domains
 
such as
and ICT
 
needs, but
 
also is
as well
 
as “Voice
 
of the
the priority
 
list of
 
each company.
digital
 
workplace
 
solutions,
 
cloud solutions,
the trusted
 
partner
 
in their
Customer”
 
forums
 
and
cybersecurity,
 
software-defined
 
networks,
digital
 
transformation,
 
thus
advisory
 
boards.
next-generation
 
mobile
 
networks
 
and analytics,
helping
 
them serve
 
their
things and
 
applications.
own customers
 
better.
We offer
 
strategic
 
and technical
 
consulting,
 
help
A personalized
 
and high-
them to
 
implement
 
solutions
 
and unburden
quality
 
service.
them
 
by delivering
 
managed
 
services.
That
 
Proximus
 
delivers
 
on
We launched
 
an integrated
 
ICT offering
 
for small
customer
 
promises.
and mid-sized
 
businesses
 
offering
 
a broad
 
mix
That
 
Proximus
 
offers
 
the
of telecom
 
(both fixed
 
and mobile)
 
and ICT
highest
 
standards
 
of data
solutions
 
and support.
security.
Proximus
 
and its
 
affiliates
 
combine
 
their
That
 
Proximus
 
develops
respective
 
expertise
 
to help
 
customers
 
in their
solutions
 
to reduce
 
their
digital
 
transformation
 
journey.
environmental
 
footprint.
Building
 
ecosystems
 
with our
 
partners
 
and
customers
 
to create
 
innovative
 
solutions
 
for
business
 
and societal
 
challenges
 
(smart
 
health,
smart building,
 
eEducation
 
or smart
 
city) and
enable
 
them to
 
reduce their
 
carbon
 
emissions.
Accelerated
 
roll-out
 
of fiber,
 
further
 
roll-out
 
of
5G and
 
launch of
 
our 5G
 
innovation
 
platform.
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p5i4
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
145
Stakeholder
group
What they expect
 
How we engage
Main topics and
concerns in 2021
Our response
Government
& regulators
Proximus
 
to comply with all
rules
 
and regulations
 
in
place
 
in Belgium,
 
Europe &
internationally.
Proximus
 
to respect
business
 
ethics.
As a Belgian
 
and partly
state-owned
 
company,
 
that
Proximus
 
plays
 
a role
 
in
developing
 
the digital
 
society
and economy
 
of tomorrow
through
 
investments
 
and
involvement.
 
This includes
contributing
 
to a greener
digital society.
We proactively
 
& regularly
engage
 
with
 
our
government
 
representatives
and regulators
 
through
business
 
associations
 
such as
Agoria,
 
the European
Telecommunications
Network
 
Operators’
Association
 
(ETNO),
 
GSMA,
etc.
We maintain
 
regular
interactions
 
with politicians
and representatives
 
to
develop
 
partnerships
(for
 
example
 
to increase
coverage
 
in white
 
zones).
FTTH monthly
 
rentals pricing
 
set
in 2021.
First
 
step of
 
review
 
of broadband
and TV
 
markets
 
in 2021,
 
effective
review
 
process
 
expected
 
in 2022.
Multiband
 
spectrum auction
 
to be
organized
 
in Q2 2022.
 
Final legal
texts
 
approved
 
end November
2021,
 
still
 
include
 
reservation
of spectrum
 
for new
 
entrants.
Current
 
2G and 3G
 
licenses
extended
 
until 15 March
 
2022 and
until new
 
spectrum
 
rights are
auctioned.
Regions
 
planning
 
to invest
 
in
parallel
 
networks.
Law transposing
 
EU telecom
Code adopted
 
on 16 December.
Implementation
 
in 2022.
Social
 
tariffs regime
 
to be
reviewed
 
and extended
 
in 2022.
Roaming
 
regulation
 
under
 
review.
RLAH
 
to be extended
 
until 2032.
Further
 
decrease
 
of wholesale
roaming
 
charges
 
after 2022.
Additional
 
quality
 
of service
 
and
transparency
 
obligations.
We advocate our
 
position towards
 
the relevant
authorities,
 
we ensure
 
timely
 
compliance
with new rules and the business responds
with adequate commercial
 
actions to new
obligations.
Investors
 
A transparent,
 
accurate
 
and
consistent
 
communication
and insights on the market
we operate in.
Clear
 
information
 
on our
strategy,
 
achievements,
 
and
ambitions
 
going
 
forward and
short to
 
mid-term
perspectives.
Information
 
on how we
expect
 
to create
 
value
 
and
timely
 
accurate
 
updates.
The necessary
 
access
 
to
top management
 
and
the opportunity
 
to receive
clarification
 
and ask
questions.
Provide
 
clear metrics
 
and
targets
 
for our
 
performance
on Environmental,
 
Social
and Governance
 
topics.
Suppliers
 
Proximus
 
to fulfil
 
its long-
term
 
commitment
 
and
uphold
 
its end
 
of the
 
deal.
Proximus
 
to offer
transparent
 
contract
conditions
 
with
 
fair pricing
conditions.
CEO, CFO
 
and Investor
Relations
 
participated
 
in
several
 
conferences
 
and
roadshows,
 
in a virtual
 
mode,
due to
 
the COVID-19
pandemic.
 
During these
meetings,
 
most of
 
the
available
 
time was
 
dedicated
to investor
 
questions.
Proximus
 
organizes
on a
 
quarterly
 
basis a
management
 
conference
call/webcast
 
during which
 
a
significant
 
amount of
 
time is
attributed
 
to a question
 
and
answers
 
session.
Proximus
 
organized
 
its
yearly
 
general
 
assembly
where
 
all investors
 
are
invited.
We consider
 
our suppliers
as very
 
impactful
 
and we
engage
 
with
 
them through
regular
 
audits
 
to ensure
 
they
follow
 
our sustainable
 
and
ethical
 
principles.
We work
 
in close
collaboration
 
with
our suppliers
 
in the
implementation
 
of projects
and initiatives
 
to jointly
 
design
sustainable
 
products.
We invite
 
our suppliers
 
to
sign our
 
Manifesto,
 
the
commitment
 
of Proximus
 
and
its suppliers
 
to work together
to reduce
 
their
 
carbon
footprint
 
and produce
 
more
circular
 
products.
Proximus’
 
fiber
 
strategy,
 
the
benefits
 
and the
 
risk of
 
overbuild.
Competitive
 
environment:
 
how
this might be changing
 
and the
impact
 
on Proximus.
 
This
especially
 
in view of the
 
upcoming
spectrum
 
auction
 
and the
 
change
 
in
ownership of
 
the
 
Walloon
 
cable
operator VOO.
Growth
 
potential
 
Consumer
market,
 
the status
 
of the
transformation
 
in Enterprise
 
and
the potential
 
to reduce
 
costs
 
going
forward.
Strategic
 
plans
 
with BICS
 
and
Telesign.
Channel investments
 
to projects
that have demonstrated climate
and social benefits.
ESG disclosures & ratings
improvement.
We aim
 
to have 75%
 
of our
suppliers
 
with a positive
 
CSR
rating
 
(assessments
 
and audits)
till 2025.
Reduce
 
our carbon
 
footprint
 
and
produce
 
more
 
circular
 
products.
A detailed
 
disclosure
 
allows
 
investors
 
to get
insight
 
in Proximus’
 
achievements
 
in the Belgian
market
 
through
 
the publication
 
of several
 
KPIs on
the main products.
In 2021
 
we organized
 
several
 
ad-hoc
 
conference
calls:
 
following
 
the full
 
ownership
 
acquisition
of BICS,
 
a "Fiber
 
Update"
 
during which
 
we
disclosed
 
more details
 
on the fiber
 
roll-out,
 
fiber
joint ventures
 
and financials
 
and to announce
Proximus
 
intent
 
to take
 
TeleSign
 
public.
The quarterly
 
presentations
 
addressed
 
the hot
topics
 
in the market
 
such as updates
 
on the
Fiber
 
project,
 
the main
 
KPIs for
 
Consumer
 
and
Enterprise,
 
and a more
 
frequent
 
view on
 
the
progress
 
made in
 
the ESG
 
domain.
Set-up of an action plan to improve ESG ratings.
The action plan should ensure a more consistent
future
 
increase
 
of the
 
ratings.
Launch
 
sustainable
 
finance framework
 
and
issued a
 
Green Bond:
 
by issuing
 
green, social
and sustainable
 
finance instruments,
 
Proximus
intends
 
to align its
 
funding
 
strategy
 
with its
mission,
 
sustainability
 
and climate
 
strategy
 
and
targets.
In 2021,
 
71% of
 
suppliers
 
screened
 
on human
rights and
 
environmental
 
risks had
 
a positive
score.
At the
 
end of
 
2021, 74
 
suppliers
 
have signed
 
our
Manifesto.
100% of our
 
contracts with
 
our suppliers
 
have a
clause and/or
 
are linked to our Supplier Code
 
of
Conduct on
 
social,
 
ethical
 
and
 
environmental
standards.
 
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Proximus Group I
Integrated annual report
 
2021
I
146
Stakeholder
group
What they expect
 
How we engage
Main topics and
concerns in 2021
Our response
Society
at large
High quality networks and
high quality reliable digital
services.
Proximus to have a positive
impact
 
on Belgian
 
society.
That Proximus
 
cares for the
environment.
Proximus
 
to act as
 
a
responsible
 
company,
maintaining
 
the highest
standards
 
of integrity
 
and
business
 
ethics.
Every
 
quarter, we run
surveys
 
amongst
 
the
general
 
public
 
in
Belgium.
 
We evaluate
 
our
performance
 
on key
 
drivers
and follow-up
 
on them.
We work
 
with
 
various
Belgian
 
NGOs and
associations
 
to address
societal
 
needs.
An important
 
societal
 
topic
was the
 
environment,
 
with
more and
 
more voices
 
being
heard
 
demanding
 
action
 
from
companies
 
like Proximus.
The society
 
expect organizations
like
 
Proximus
 
to communicate
openly
 
and to
 
be transparent
 
with
them and
 
to ensure
 
full protection
of their
 
personal
 
data.
People
 
are concerned
 
about
 
the
skills needed
 
to be part
 
of the
digital world.
We are
 
building
 
an open gigabit
 
network
 
for
Belgium,
 
by rolling
 
out fiber
 
and 5G at an
accelerated pace.
We offer
 
clear
 
information
 
and advice
 
on our
website
 
on the
 
risks
 
of electromagnetic
 
waves,
 
in
particular about 5G.
We have
 
a solid
 
green
 
strategy,
 
with the ambition
to reaching
 
net-zero
 
emissions
 
across
 
our total
footprint
 
by 2040
 
and to
 
become a
 
truly
 
circular
company
 
by 2030.
By working
 
together with
 
our customers,
partners
 
and suppliers,
 
we develop
 
innovative
solutions
 
helping
 
customers
 
to reduce
 
their
carbon footprint.
We contribute
 
to create
 
a more
 
inclusive
 
digital
society
 
by partnering
 
with organizations
 
such as
MolenGeek,
 
Technobel
 
or School
 
19 and
through
 
the DigitAll
 
ecosystem.
We raise
 
awareness
 
about
 
cybersecurity
 
among
children
 
by partnering
 
with Child
 
Focus and
among
 
society at
 
large through
 
our partnership
with
 
the Centre
 
for Cyber
 
Security
 
Belgium
 
and
the Cyber Security Coalition.
We apply strict rules and guidelines
 
for ourselves
and throughout our supply chain with regards to
ESG standards.
 
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Proximus Group I
Integrated annual report
 
2021
I
147
Social statement
General
 
note
 
to the
 
social
 
statement
The social
 
statement
 
describes
 
the key
 
indicators,
 
scoping,
boundaries,
 
calculation
 
methodologies
 
and reporting
 
standards
 
for
all social domains.
The indicators
 
marked
 
with a
 
tick mark
 
are subject
 
to a limited
external
 
assurance
 
audit
 
by Deloitte.
 
In addition
 
to previous
 
annual
report,
 
the following
 
information
 
has been
 
added:
 
new indicators
 
on
work-life
 
balance,
 
gender
 
pay and
 
a new
 
section
 
on digital
inclusion.
 
Compared
 
to last
 
year,
 
the statement
 
on sponsoring
 
has
been removed
 
as our
 
way of
 
communicating
 
about our
sponsoring achievements
 
is under
 
review.
Scope
 
of the
 
social
 
statement
The scope
 
of this
 
statement
 
is limited
 
to the
 
activity
 
of Proximus
 
SA,
unless
 
stated
 
otherwise.
 
It does
 
not include
 
activities
 
linked
 
to
 
our
Belgian
 
affiliates.
 
The numbers
 
are expressed
 
in FTE
 
unless
 
stated
otherwise. Full year
 
data are
 
reported.
S1:
 
Workforce
S1
 
Workforce
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
BICS
Number
509
505
467
468
450
TeleSign
Number
238
222
322
504
504
Proximus Group excl
 
BICS and
TeleSign
Number
 
12,644
 
12,658
 
12,143
 
10,530
 
10,577
 
Employees
Number
10,330.8
10,168.1
9,651.6
8,180.3
8,796.2
Workers
Number
1,149.8
1,001.6
904.6
643.7
0
Female
Number
3,411.8
3,375.5
3,232.7
2,629.5
2,633.5
Male
Number
8,068.8
7,794.2
7,323.5
6,194.5
6,162.7
Top management
Number
160.5
162.3
153.5
164
167
Female
Number
32
34.5
35.5
39
37
Male
Number
128.5
127.8
118
125
130
Senior management
Number
877.3
905.2
914.8
899.4
953
Female
Number
212.2
225.2
234
239.4
268.6
Male
Number
665.1
680
680.8
660
684.4
Middle management
Number
2,133.5
2,154.4
2,171.7
2,060.9
2,155.2
Female
Number
543.5
566.3
577.2
571.1
614.9
Male
Number
1,590
1,588.1
1,594.5
1,489.8
1,540.3
Lower management
Number
675.8
662.5
605.7
539.2
524.5
Female
Number
245.8
250.8
235.2
209.2
199.2
Male
Number
430
411.7
370.5
330
325.3
Sales
Number
1,667.3
1,605.5
1,516.6
1,123.1
1,087.8
Female
Number
726.7
693.1
643
435
403.9
Male
Number
940.6
912.4
873.6
688.1
683.9
*External audit
Total number of
 
employees (FTE)
for the Proximus Group
Number
13,391
13,385
12,931
11,423
11,532
S1.1
Total number of
 
employees and
workers (FTE)
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
Total number of
 
employees (FTE)
by gender
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
Total number of
 
employees (FTE)
per level
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
 
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proximus-2021-12-31p158i8
Proximus Group I
Integrated annual report
 
2021
I
148
S1
Workforce
Unit
2017
2018
2019
2020
2021
P
*
Employees
Number
5,966.3
5,679.8
5,194
4,037.5
3,908.7
Female
Number
1,651.7
1,605.6
1,507.8
1,135.9
1,109.9
Male
Number
4,314.6
4,074.2
3,686.1
2,901.6
2,798.8
Defined duration
Number
161
184
164.8
131.8
99
Female
Number
64
84
58.8
65.8
33
Male
Number
97
100
106
66
66
Brussels
Number
54
51
37.8
28.8
27
Flanders
Number
70
83
68
77
42
Wallonia
Number
37
50
59
26
30
Replacement contract
Number
35
1
0
0
1
Female
Number
9
0
0
0
0
Male
Number
26
1
0
0
1
Brussels
Number
8
0
0
0
0
Flanders
Number
19
0
0
0
0
Wallonia
Number
8
1
0
0
1
Statutory
Number
3,746.9
3,238.6
2,768.8
1,879.1
1,737.6
Female
Number
690
600.2
512.6
336.6
318.3
Male
Number
3,056.9
2,638.4
2,256.6
1,542.5
1,419.3
Brussels
Number
1,589.8
1,372.5
1,226.1
955.3
897.1
Flanders
Number
1,096.9
954.1
779.3
424.5
384.2
Wallonia
Number
1,060.2
912
763.4
499.3
456.3
Undefined duration
Number
7,537.7
7,746
7,622.6
6,813.1
6,958.6
Female
Number
2,648.8
2,691.2
2,661.5
2,227.1
2,282.2
Male
Number
4,888.9
5,054.8
4,961.1
4,586
4,676.4
Brussels
Number
5,005.1
5,021.2
4,956.8
4,551.2
4,645.2
Flanders
Number
1,217.4
1,341.5
1,312.1
1,127.4
1,180
Wallonia
Number
1,315.3
1,383.4
1,353.7
1,134.6
1,133.4
Dutch
Number
6,170.7
5,982.7
5,625.4
4,717.5
4,700.3
French
Number
5,278.6
5,155.5
4,900.4
4,088.7
4,078.6
German
Number
31.3
31.5
30.4
17.8
17.3
Under 30
Number
899,2
1,005.3
861.3
838.9
758.2
30-50
Number
6,321.9
6,222.1
5,917.9
5,038.4
4,869
Over 50
Number
4,259.6
3,942.3
3,777.1
2,946.8
3,169
Full time
Number
9,578.4
9,362.8
9,125.9
8,093.7
8,063.9
Female
Number
2,524.6
2,541.8
2,499.6
2,202.3
2,224.7
Male
Number
7,053.8
6,821
6,626.3
5,891.4
5,839.2
Part time
Number
1,902.2
1,806.9
1,430.3
730.3
732.3
Female
Number
887.2
833.7
733.1
427.2
408.8
Male
 
Number
 
1,015
 
973.2
 
697.2
 
303.1
 
323.5
*External audit
by age group
S1.3
 
Total number of employees (FTE)
Percentage
 
of total employees
 
covered
by collective bargaining agreements
%
98.6%
98.5%
98.5%
98.1%
98.1%
Total number of employees
 
(FTE)
S1.2
 
by employment contract, by
gender and by region
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
Total number of
 
employees (FTE)
by language
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
Total number of
 
employees (FTE)
by employment type, by gender
Number
 
11,480.6
11,169.7
10,556.2
8,824
8,796.2
 
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Proximus Group I
Integrated annual report
 
2021
I
149
Definitions
Workforce:
number
 
of active
 
employees
 
on Proximus
 
SA
payroll
 
at the
 
end of
 
the period.
 
Those numbers
 
include part-
time and
 
defined
 
duration/replacement
 
contract
 
employees,
but exclude
 
employees
 
with a
 
dormant contract,
 
long-term
illness, students and
 
sub-contractors.
Proximus
 
Group:
Proximus
 
SA and its
 
subsidiaries
 
form the
Proximus Group.
Employees:
employees
 
perform
 
mainly
 
intellectual
 
work.
Workers:
workers
 
perform
 
mainly
 
manual
 
work.
Full time
 
equivalent:
the FTE of
 
an employee
 
is calculated
 
by
dividing
 
the actual
 
working hours
 
of this employee
 
by the
 
total
working
 
hours of
 
a full-time
 
employee
 
at the
 
end of the
reporting period.
Statutory
 
employee:
any employee
 
who is permanently
appointed
 
to a
 
grade by
 
the appointing
 
authority
 
of Proximus.
Collective
 
bargaining
 
agreements:
the Collective
 
Agreement
(CA) refers
 
to an
 
agreement
 
between
 
Proximus
 
and its
 
social
partners
 
(the three
 
Representative
 
Union Organizations).
 
A CA
consists of
 
various topics,
 
divided into
 
four main
 
pillars for the active
employees:
 
generic,
 
well-
 
being, employment
 
(working
 
conditions)
and quantitative
 
(compensation &
 
benefits).
The measures
 
applicable
 
to the non-active
 
population, are
classified into
 
a fifth main pillar.
 
Some measures
 
are strictly
limited
 
to the
 
duration
 
of the
 
CA period,
 
while some
 
cover a
longer
 
period
 
and others
 
have a
 
recurring
 
effect.
Negotiations
 
about a CA
 
are driven by a
 
list of requirements
drafted
 
by the
 
representative
 
unions. The
 
CA 2021-2022
 
was
unanimously
 
approved
 
by the Joint
 
Committee
 
on December
22, 2021. All employees are covered by the collective
bargaining
 
agreements
 
except the
 
executive
 
and the senior
management.
 
Proximus’
 
collective
 
bargaining
 
agreements
cover
 
systematically
 
two years:
 
2017-2018,
 
2019-2020
 
and
2021-2022.
Notes
S1.1
As per 20 July
 
20 2021, and in
 
line with the Collective
bargaining
 
agreement
 
of 2019-2020,
 
the workers
 
have been
aligned
 
towards
 
employee’s
 
employment
 
contract.
 
Therefore,
since January
 
21, no employees
 
under the
 
category
 
”workers”
have been employed
 
within
 
Proximus SA.
S1.2
The number
 
of statutory
 
employees
 
(FTEs) is
 
decreasing
each year because
 
in 1996 Proximus
 
stopped recruiting
people
 
with a
 
statutory
 
contract.
 
Since the
 
statutory
 
members
belong
 
to the
 
older
 
age groups
 
and naturally
 
evolving
 
towards
retirement.
S1.3
As a result
 
of the employment
 
stability
 
at Proximus,
 
the
category over
 
50 is increasing
 
year on
 
year. Therefore,
 
the
increase
 
in the
 
number
 
of employees
 
(FTEs)
 
in the age
 
group
over 50 was
 
greater than
 
in the other age
 
groups in 2021
 
vs
2020.
 
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Proximus Group I
Integrated annual report
 
2021
I
150
S2:
 
Well-being,
 
satisfaction
 
and
 
retention
S2
Well-being, satisfaction and
 
retention
Unit
2017
2018
2019
2020
2021
P
*
S2.1
 
Results of employee engagement
 
Average
survey
 
score
 
%
72.3%
72.7%
56%
71.5%
70%
Total number and rate of
 
employee
 
%
S2.2
 
turnover (FTE) during the reporting
(Number)
period, by gender and age group
6.9%
(789.4)
6.6%
(738.7)
7.6%
(807)
24.7%
(2,179.7)
4.4%
(388.7)
Female
%
5.3%
4.9%
6.5%
30.5%
3.8%
 
Female
%
4.1%
5.2%
3.1%
6.2%
5.5%
 
 
Female
Number
172
184
181
261
119
Male
Number
177
167
159
276
112
Female
Number
171
166
180
136
259
Male
Number
161
164
162
138
266
Return to work
%
97.8%
98%
95.2%
88.6%
96.7%
Female
%
97.7%
97.9%
95.8%
85.6%
96%
Male
%
97.8%
98.2%
94.6%
91.7%
97.4%
Retention rates
%
94.9%
92.4%
95.5%
76.8%
87.2%
Female
%
96.1%
94.3%
95.7%
72%
85.2%
Male
%
93.6%
90.6%
95.3%
82.1%
89.3%
Working from home
%
N.A.
N.A.
N.A.
55%
76%
Good physical and mental well-being
%
N.A.
N.A.
N.A.
55%
56%
Good work-life balance
%
N.A.
N.A.
69%
68%
73%
*External audit
(Number)
(181.2)
(166.2)
(208.5)
(803.3)
(100.7)
Male
%
7.5%
7.4%
8.2%
22.2%
4.7%
(Number)
(608.2)
(572.5)
(598.5)
(1,376.4)
(288)
Under 30
%
11.9%
9.5%
14.8%
20.1%
13.4%
(Number)
(116.7)
(96.1)
(128.1)
(168.9)
(101.6)
30-50
%
2.1%
2.1%
3.2%
16.1%
2.8%
(Number)
(135.7)
(119.9)
(189.1)
(810.7)
(135.6)
Over 50
%
13%
12.1%
13%
40.7%
4.8 %
(Number)
(537)
(522.7)
(489.8)
(1,200)
(151.5)
Total number
 
and rate
 
of new employee
hires (FTE) during the reporting period,
by gender and age group
%
3.4%
4.9%
2.9%
5.2%
5%
(Number)
(139)
(177)
(101.8)
(161.9)
(146)
Male
%
3.1%
4.8%
2.8%
4.8%
4.8%
(Number)
(251.3)
(371)
(207)
(297)
(296.5)
Under 30
%
25.2%
33.2%
18.8%
32.9%
28.1%
(Number)
(247)
(341)
(162)
(276)
(213)
30-50
%
2%
3.2%
2.3%
3.5%
4.5%
(Number)
(129.3)
(201)
(133.5)
(175.9)
(217.5)
Over 50
%
0.3%
15%
0.4%
0.2%
0.4%
(Number)
(14)
(6)
(13.3)
(7)
(12)
Total number of employees
 
that
S2.3 returned to work in the
 
reporting
period
 
Number
 
after parental
leave ended, by gender
349
351
340
537
231
Total
 
number
 
of employees
 
that
 
returned
to work
 
after
 
parental
 
leave
 
ended
 
that
were
 
still
 
employed
 
12 months
 
after
 
their
return
 
to work,
 
by gender
Number
332
330
342
274
525
Return to work
 
and retention rates of
employees that took parental leave,
by gender
%
S2.4
 
Work-life balance
 
%
 
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Proximus Group I
Integrated annual report
 
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I
151
S2
 
Well-being, satisfaction and retention
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
neration in
neration in
Definitions
Turnover:
the number
 
of employees
 
(FTEs) who left
 
the
company
 
during the
 
reporting
 
period. This number
 
includes all
kinds of
 
leaves (voluntary
 
or not, end
 
of contract,
 
pension). The
rate is
 
calculated
 
by dividing
 
the number
 
of leavers
 
(FTEs)
 
during
the reporting period
 
by the number of employees (FTEs)
 
at
the end of the
 
reporting period.
New hires:
number of employees
 
(FTEs) hired during
 
the
reporting
 
period.
 
The rate
 
is calculated
 
by dividing
 
the number
 
of
hired employees
 
(FTEs) during
 
the reporting
 
period by
the number of employees
 
(FTEs) at the
 
end of the reporting
period. It is the number of new entries over the reporting
period, divided
 
by the total
 
number of employees
 
working in
that category
 
at the
 
end of
 
the reporting
 
period. E.g.:
 
(Number
 
of
new female
 
hires within
 
the reporting
 
period/Number
of women
 
working
 
at Proximus
 
SA by
 
end of
 
the reporting
period)*100.
Return
 
to work
 
rate:
calculation:
 
Total number
 
of employees
that did
 
return
 
to work
 
after parental
 
leave/ Total
 
number
of employees
 
due to
 
return
 
to work
 
after taking
 
parental
leave*100. Expressed
 
in headcount, not
 
in FTE.
Retention
 
rate:
calculation:
 
Total number
 
of employees
retained
 
12 months
 
after
 
returning
 
to work
 
following
 
a period
 
of
parental
 
leave/
 
Total number
 
of employees
 
returning
 
from
parental leave in
 
the prior
 
reporting period(s)*100.
Working
 
from home:
percentage
 
of the
 
total work
 
duration
performed from home.
Good physical
 
and mental
 
well-being
(the percentage
 
of
employees giving
 
a “good” score
 
in the Speak Up Survey):
“Well-being
 
refers
 
to your
 
physical
 
& mental
 
health,
 
and how
fulfilled
 
you are in
 
your work
 
and life.
 
In general, my
 
sense of
well-being is….” Scale of 1-5, Good= 4 or 5. Speak
 
Up is an
internal employee engagement
 
survey.
Good work-life
 
balance
(the percentage
 
of employees
 
giving
 
a
“good” score in
 
the Speak
 
Up Survey):
 
"I can manage
 
my
job responsibilities
 
in a way
 
that enables
 
a healthy
 
work-life balance"
Scale of
 
1-5, Good=
 
4 or 5.
 
Speak Up
 
is an
 
internal
 
employee
engagement survey.
Gender
 
pay:
is an analysis
 
of the
 
remuneration
 
structure
 
by
level.
This KPI is about percentage and fixed remuneration.
Percentage
 
(%): 100%
 
is here
 
equal
 
to the average
 
Proximus
wage by level
 
(management
 
or employees)
 
with which the
wages per gender
 
are compared.
Fixed remuneration
 
consists of
 
a fixed salary earned
 
by the
employee
 
for the
 
reported
 
year. This
 
remuneration
 
is defined
by the nature and
 
the specificities
 
of the function
 
and by the
level of
 
individual
 
skills and
 
experience,
 
considering
 
market
practices.
*External audit
S2.5
 
Gender pay equality assessment
 
%
Management
Fixed Remu-
N.A.
N.A.
N.A.
N.A.
146,617.7
Female
 
%
 
N.A.
N.A.
N.A.
N.A.
99.8%
Male
 
%
 
N.A.
N.A.
N.A.
N.A.
100.1%
Employees
Fixed Remu-
N.A.
N.A.
N.A.
N.A.
55,765.3
Female
 
%
 
N.A.
N.A.
N.A.
N.A.
97.1%
Male
 
%
 
N.A.
N.A.
N.A.
N.A.
101.4%
 
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Proximus Group I
Integrated annual report
 
2021
I
152
Notes
S2.1:
The percentage
 
for the
 
employee
 
engagement
 
survey
has fallen
 
slightly,
 
but despite
 
this the
 
score remains
 
high.
People respond
 
positively
 
to the level
 
of autonomy and
responsibility
 
they get
 
and take in
 
their work. Engagement
items relating to
 
pride to work for
 
Proximus and e-NPS
(employee-Net
 
Promotor
 
Score)
 
item also remain
 
positive.
 
A
typical e-NPS question
 
is “How likely would you be to
recommend
 
your company
 
to people
 
you know as
 
a great
place
 
to work".
 
Some categories
 
in the
 
employee
 
satisfaction
survey show a slight
 
decrease.
S2.2:
2020 was
 
an exceptional
 
year due
 
to the transformation
plan. In
 
2021, we
 
notice that
 
the normal turnover
 
figures for
the years prior
 
to 2020 are
 
returning.
S2.3:
In 2021,
 
231 employees
 
came back
 
out of
 
parental
 
leave. All
parental leaves
 
in the year were taken into account,
 
whether
 
the
person left at the
 
end of the year
 
or not.
S2.4:
In 2021,
 
the number
 
of homeworkers
 
remains affected
by the COVID-19
 
situation.
The well-being of workers is also still challenged by
 
the
COVID-19
 
context,
 
so results
 
remain in
 
line with
 
2020 results,
with many people
 
indicating that
 
their sense of
 
well-being is
not very
 
good. However,
 
the work-life
 
balance of
 
employees
has improved
 
significantly;
 
a direct
 
effect of
 
teleworking,
 
giving
more flexibility
 
to employees
 
in work
 
location
 
and time,
 
but the
results
 
continue
 
to vary
 
according
 
to the
 
level of
 
employees
(more positive for lower
 
levels).
In conclusion,
 
the 2021
 
results are
 
stable, with
 
a very high
score on pride
 
to work for
 
Proximus
 
and e-NPS, despite
 
the
ongoing disruptive context of COVID-19 and the
transformation
 
to agile
 
ways of
 
working
 
that is
 
taking
 
place.
S2.5:
In 2021,
 
female managers
 
received 0.20%
 
less than the
average salary
 
for their
 
status, while
 
female employees
received 2.95%
 
less than
 
the average
 
for their status.
 
This
difference
 
is due
 
to the fact
 
that women
 
working at
 
Proximus
work more
 
part-time
 
than full-time
 
compared
 
with their
 
male
colleagues.
 
The difference
 
is therefore
 
not due
 
to a different
 
pay
policy for men and
 
women.
 
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Proximus Group I
Integrated annual report
 
2021
I
153
S3:
 
Training
 
and
 
development
S3
 
Training and development
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
Total number of
 
internal moves
S3.1 (function changes) during the
reporting period
Number
1,177
983
519
2,146
782
Average
 
hours
 
of
 
training
 
that
 
the
organization’s employees
 
(FTEs) have
S3.2
 
undertaken
 
during
 
the
 
reporting
period, by gender and employee
category
Hours
22
24
39
39.5
41.3
Female
Hours
24
23
30
34.5
30.8
Male
Hours
21
24
42
41.7
45.8
Executive
Hours
23
35
37
26.1
26.3
Senior management
Hours
27
28
38
32.3
30.3
Middle management
Hours
24
24
38
30.3
32.2
Lower management
Hours
32
25
41
30.8
30.7
Employees
Hours
19
22
39
46.5
50.6
Definitions
Internal
 
moves:
the number
 
of employees
 
(FTEs) who
 
have
changed function during
 
the reporting period.
Training hours:
average hours of training that the
organization’s
 
employees
 
(FTEs)
 
have undertaken
 
during the
reporting period.
Notes
S3.1
In 2020,
 
we had
 
an exceptionally
 
large number
 
of internal
moves (2,146)
 
due to
 
various
 
reorganization
 
files
 
and favorable
effects
 
(e.g.
 
employee
 
re-skilling)
 
following
 
the transformation
plan. In 2021, 782
 
employees changed
 
jobs internally.
 
We
encourage internal
 
mobility, as we
 
want to ensure
 
that all
employees
 
benefit from
 
continuous
 
learning and
 
do a job that
matches their talents.
S3.2
The average training
 
hours per employee
 
in 2021 is
aligned
 
with our
 
internal
 
ambitions.
 
Furthermore,
 
in 2021, we
invested
 
32.34 Mio
 
in training
 
vs
 
34.45 Mio in
 
2020.
We committed
 
to guarantee
 
at least
 
two days
 
of training
 
per
employee.
 
Despite multiple
 
initiatives
 
we arrived
 
at 65% of
employees
 
having
 
completed
 
two days
 
of training,
 
which is
 
a
 
5%
increase compared to
 
2020.
*External audit
 
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Proximus Group I
Integrated annual report
 
2021
I
154
S4:
 
Health
 
and Safety
S4
 
Health and Safety
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
Injury rate (IR)
Rate
0.000006
0.000007
0.000007
0.000008
0.000004
Female
Rate
0.000006
0.000005
0.000008
0.000002
0.000001
Male
Rate
0.000009
0.000008
0.00001
0.00001
0.000005
Occupational disease rate (ODR)
Rate
0.0000003
0.0000003
0.0000007
0.0000005
0.0000003
Female
Rate
0.0000004
0
0
0.0000002
0
Male
Rate
0.0000003
0.0000004
0.000001
0.0000006
0.0000005
Lost day rate (LDR)
Rate
0.0004
0.0003
0.0001
0.0002
0.0001
Female
Rate
0.0002
0.0002
0.0001
0.000004
0.000009
Male
Rate
0.0004
0.0004
0.0001
0.0002
0.0002
Absentee rate (AR)
%
7.5%
7.7%
7.9%
6.3%
6.3%
Female
%
10.5%
10.8%
11.6%
8.2%
8.2%
Male
%
6.2%
6.3%
6.2%
5.5%
5.4%
Work-related fatalities
Number
Female
Number
0
0
0
0
0
Male
Number
0
0
0
0
0
Injury rate
Number
3
2
28
15
10
Work-related fatalities
Number
0
0
0
0
0
Definitions
Injury
 
rate (IR):
frequency
 
of injuries,
 
relative to
 
the total
 
time
worked
 
by all
 
workers
 
during the
 
reporting
 
period. Calculation:
number of
 
injuries in
 
Proximus Group/total
 
number of hours
scheduled
 
to be
 
worked
 
by Proximus
 
Group employees.
Occupational
 
disease rate
 
(ODR):
frequency
 
of occupational
diseases (disease
 
arising from
 
a work situation
 
or activity, or
from a
 
work-related
 
injury)
 
relative
 
to the total
 
time worked
 
by
all workers
 
during
 
the reporting
 
period.
 
Calculation:
 
number of
occupational
 
diseases/total
 
number of
 
hours scheduled
 
to be
worked by Proximus
 
Group employees.
Lost day
 
rate (LDR):
impact of
 
occupational
 
diseases and
accidents
 
as reflected
 
in time
 
off work
 
taken by
 
the affected
workers. A lost
 
day is defined
 
as time (“days”)
 
that cannot be
worked (and are
 
thus “lost”) because of
 
a worker or workers
being unable
 
to perform
 
their usual
 
tasks due
 
of an
occupational
 
disease or
 
accident.
 
Calculation:
 
total number
 
of
lost days
 
(due
 
to occupational
 
disease or
 
accident)/total
number
 
of hours
 
scheduled
 
to be
 
worked
 
by Proximus
 
Group
employees.
Absentee
 
rate (AR):
measure
 
of actual
 
absentee
 
days lost,
expressed
 
as the
 
number
 
of sick
 
days divided
 
by the number
 
of
theoretical
 
working days,
 
considering, by definition,
 
the
scheduled
 
working hours
 
of the person.
 
An absentee is
 
an
employee
 
who is absent
 
from work
 
because of taking
 
a sick
day (with
 
or without
 
attestation),
 
excluding
 
work accidents
and pregnancy.
 
Calculation
 
example
 
for female
 
employees:
(sum of
 
all sick
 
days registered
 
amongst
 
female employees/
sum of all the
 
theoretical working
 
days amongst female
employees)*100.
*External audit
S4.1
 
Safety figures by gender
(Proximus Group)
employees) whose work,
 
or workplace,
is controlled by Proximus Group
S4.2
 
fatalities for all workers (excluding
Injury rate (IR) and
 
work-related
Number
 
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Proximus Group I
Integrated annual report
 
2021
I
155
Notes
S4.1
 
and S4.2:
The absentee
 
rate in
 
2021 is
 
comparable
 
to that
of 2020.
 
Early
 
March
 
2020,
 
Proximus
 
took strict
 
measures
 
to
manage
 
the COVID-19
 
pandemic.
 
In 2021,
 
we continued
 
to
strictly apply the
 
safety and health
 
guidelines.
Our fast
 
and decisive
 
approach limited the
 
illnesses during the
peak of
 
the yearly
 
flu epidemy
 
and the illnesses
 
due to COVID-
19. Strict
 
compliance
 
to the guidelines
 
was also
 
likely
 
to
 
have
 
an
impact
 
on the
 
low short-term
 
illness
 
rates observed
 
in 2021.
We observed
 
a decrease
 
of the
 
injury
 
rate in
 
2021 compared
 
with
the previous
 
year.
 
The frequency
 
of diseases
 
arising
 
from a
 
work
situation
 
or activity,
 
or from
 
a work-related
 
injury,
 
has never
 
been
any lower.
The department
 
for Prevention
 
and Protection
 
(CPP)
is the
driving
 
force
 
behind
 
Proximus’
 
well-being
 
activities.
 
It defines
 
a
common
 
well-being
 
policy
 
and gives
 
advice on
 
all issues
surrounding
 
this topic.
 
All products,
 
goods and
 
services
 
at
Proximus
 
need
 
to meet
 
the “well-being
 
at work”
 
standards.
The Well-being
 
Committee
deals
 
with the
 
elaboration
 
and
follow-
 
up of
 
the prevention
 
and protection
 
plans
 
and handles
aspects
 
such
 
as risk
 
analysis
 
of workplaces,
 
medical
 
surveillance,
personal
 
protective
 
equipment,
 
fire
 
safety
 
measures
 
to protect
workers
 
and the
 
evaluation
 
and resolution
 
of psychological
 
risks
and issues.
Additionally,
 
local
 
well-being
 
committees
 
discuss
 
topics
 
such as
accidents
 
at work,
 
local
 
prevention
 
matters
 
or respect
 
of safety
instructions.
The
Prevention
 
& Protection
 
measures
 
related
 
to the
COVID-19
pandemic
 
outbreak
 
implemented
 
in 2020
 
are still
 
in
place
 
(safety
 
protocols,
 
set up a
 
0800 hotline
 
and mailbox
 
as well
 
as
implemented
 
prevention
 
and protection
 
measures
 
(plexiglass
 
walls,
reinforced
 
ventilation,
 
face
 
masks,
 
alcohol-based
 
gel and
 
face
shields))
 
to enable
 
our workers
 
and employees
 
to work
 
safely within
the Proximus facilities.
In June,
 
we set
 
up a “welcome
 
back office”
 
program
 
in the
 
frame
 
of
our “Connect
 
project”
 
to let
 
people
 
come back
 
to the office
 
on
voluntary
 
base:
 
welcome
 
back
 
breakfast,
 
information
 
sessions
concerning
 
hybrid
 
working,
 
information
 
& tools
 
for team
 
leaders,
COVID-19
 
psychosocial
 
support
 
(work smarter
 
charter,
 
webinar
regarding stress
 
detection, Team
 
Connect kit).
We have
 
an occupational
medical
 
surveillance
 
program
for
workers
 
who are
 
exposed
 
to occupational
 
risks.
 
This program
 
was
adapted
 
according
 
to corona
 
rules
 
(most
 
medical
 
checks were
 
done
by phone).
In 2021,
 
we implemented
our Global
 
Prevention
 
Plan
by
conducting
 
a risk
 
analysis,
 
taking
 
the necessary
 
prevention
 
and
protection
 
measures
 
to reduce
 
work-related
 
accidents,
 
as well
 
as
communicating
 
safety
 
instructions
 
to employees
 
and the
 
VCO/ VCA
rules
 
for operational
 
departments.
 
We also
 
conducted
 
a risk
 
analysis
on installation
 
work of
 
fiber
 
conductors,
 
a risk
 
analysis
 
update
 
of
work in
 
confined
 
spaces,
 
a psychosocial
 
analysis
 
of different
departments,
 
a fire
 
safety
 
analysis
 
of different
 
buildings
 
and
installations,
 
update
 
of the
 
risk profiles
 
of workers
 
submitted
 
to
medical
 
surveillance,
 
update
 
of the
 
process
 
of certification
 
of training
of our
 
contractors
 
In addition,
 
we organized
 
training
 
on firefighting
and BA4/BA5
 
training
 
for working
 
safely
 
on electrical
 
installations.
Over
 
the next
 
years,
 
we intend
 
to continue
 
to implement
 
the VCA/
VCO policies.
 
We will
 
also review
 
our policy
 
on ergonomics
 
and
analyse
 
the risks
 
related
 
to the use
 
of different
 
equipment
 
such as
our new
 
(digital)
 
working
 
equipment
 
and telecom
 
installations
 
and
determine
 
appropriate
 
prevention
 
and protection
 
measures.
 
In
addition,
 
we will
 
continue
 
to organize
 
safety
 
trainings
 
using
 
digital
technology
 
and elaborate
 
a work
 
smarter
 
charter.
 
We will
 
also
further
 
analyse
 
the safety
 
aspects
 
of charging
 
of our
 
electrical
vehicles.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p166i4
 
Proximus Group I
Integrated annual report
 
2021
I
156
S5:
 
Responsible
 
marketing
S5
 
Responsible marketing
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
Definitions
Responsible marketing:
applying responsible
 
& ethical
methods
 
in marketing
 
campaigns.
 
These include
 
transparency
about promo
 
costs and
 
conditions,
 
respect for
 
the customer's
debt profile/credit
 
situation,
 
proactive
 
guidance
 
towards
the best offer
 
for the customer,
 
commitment to a
 
better
environment
 
and striving
 
for more
 
digital versions
 
to reduce
the use of natural
 
resources.
JEP:
the Jury on Ethical Practices in Advertising is an
independent
 
self-regulatory
 
body for
 
advertising
 
in Belgium,
responsible
 
for ensuring
 
fair,
 
truthful
 
and socially
 
responsible
advertising.
 
Any consumer
 
can submit
 
a complaint
 
to JEP.
Note
Proximus
 
pays
 
particular
 
attention
 
to responsible
 
marketing
practices
 
and complies
 
with the
 
rules prohibiting
 
the advertising
 
of
mobile phones to
 
children under 7.
Proximus
 
actively
 
protects
 
their
 
mobile
 
post-paid
 
customers
 
from
bill
 
shocks.
 
With
 
Mobilus
 
Full Control,
 
customers
 
can control
 
their
budget.
 
With our
 
new Flex
 
packs with
 
mobile,
 
customers
 
can surf
out of
 
bundle
 
at no
 
extra
 
cost, only
 
with a
 
reduced
 
speed.
 
On the
MyProximus
 
app,
 
mobile
 
post-paid
 
customers
 
can keep
 
track of
their usage
 
on calls,
 
text messages
 
and data.
 
We also
 
send them
alerts
 
about
 
their
 
current
 
in-bundle
 
and out-
 
of bundle
 
usage, and
we inform
 
them of
 
the possibility
 
to buy
 
additional
 
one-
shot data
 
bundles
 
or a data
 
boost when
 
reaching the
 
end of the
bundle.
 
In addition,
 
we proactively
 
contact
 
customers
 
with regular
out-of-bundle
 
usage
 
to suggest
 
better
 
tailored
 
plans.
In July
 
2021,
 
Proximus
 
launched
 
a new offer
 
for roaming
 
outside
 
the
EU for
 
all its
 
customers.
 
With the
 
Daily Roaming
 
Pass, all
 
residential
customers
 
and small
 
businesses
 
will be
 
able to
 
use their
 
mobile
subscription
 
outside
 
the EU
 
for a
 
fixed
 
fee per
 
day just
 
like
 
they
 
would
do at home.
 
We have
 
maintained
 
an invoice
 
limit
 
to
 
avoid
 
unpleasant
surprises.
 
To ensure
 
that the
 
customer
 
does not
 
run out
 
of service,
we continue
 
to provide
 
the service
 
even if
 
the customer exceeds
the limit.
Next
 
to this,
 
Proximus
 
continued
 
to improve
 
the legibility
 
and
transparency
 
of their
 
invoices.
 
In September
 
2021,
 
we launched
 
the
new Proximus
 
digital
 
bill.
 
Currently
 
available
 
MyProximus
 
app,
residential
 
customers
 
can easily
 
navigate
 
and understand
 
the details
of their
 
invoice.
 
It includes
 
including
 
an intuitive
 
overview
 
of
 
the
expense’s
 
evolution
 
over the
 
last 6
 
months.
 
The MyProximus
 
web
version is expected
 
in the first
 
quarter of
 
2022
Finally,
 
we have
 
also introduced
 
and promoted
 
refurbished
 
devices
in our
 
joint
 
back-to-school
 
offerings
 
to guide
 
customers
 
in
 
making
environmentally conscious
 
choices.
S5.1:
We received
 
two complaints
 
from the
 
Jury on
 
Ethical
Practices
 
which
 
was not
 
justified,
 
which remains
 
notably
 
low, as
 
it
has been
 
for the
 
past
 
two years.
 
The referenced
 
complaints
concern only Proximus
 
SA advertisements.
*External audit
S5.1
 
Number of complaints from JEP
(# of which justified)
Number
(Number)
5 (0)
7 (2)
2 (1)
1 (0)
2 (0)
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p167i4
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
157
S6:
 
Digital
 
inclusion
S6
Digital inclusion
Unit
2017
2018
2019
2020
2021
 
P
*
Community investment
S6.1
Community investment
N.A.
N.A.
N.A.
N.A.
436,191
S6.2
Community investment
Hours
N.A.
N.A.
N.A.
N.A.
2,961
Access to digital
 
Numbers
Donated laptops
Numbers
N.A.
N.A.
N.A.
N.A.
445
Donated Wi-Fi codes
Numbers
N.A.
N.A.
N.A.
24,693
2,581
Total number of
 
people trained
 
through
digital inclusion projects
Numbers
 
N.A.
 
N.A.
 
12,524
 
10,400
 
14,144
Tested devices
 
accessible for
 
at
least 5 disability categories
(percentage of devices)
%
 
N.A.
 
N.A.
 
44%
 
73%
 
55%
 
P
 
Definitions
Community
 
investment
 
- in monetary value:
monetary
investment
 
we make
 
in social
 
organizations
 
with a
 
focus on
digital inclusion.
Community
 
investment
 
- in employee/volunteer
 
hours:
hours
 
of employee
 
volunteering
 
in digital
 
inclusion
 
initiatives.
Donated laptops:
number of
 
computers
 
offered to
DigitalForYouth
 
and to
 
schools
 
collecting
 
old smartphones.
Donated Wi-Fi
 
codes:
number of free
 
access codes to
 
our
Proximus
 
Public Wi-Fi
 
network offered
 
to disadvantaged
 
pupils
and students
 
during
 
COVID-19
 
period,
 
allowing
 
them to
 
connect
with schools when
 
they were closed.
Digital inclusion
 
projects (# persons
 
reached):
number of
people (students,
 
teachers,
 
seniors)
 
trained by
 
the initiatives we
support
 
(MolenGeek,
 
19, Technobel,
 
diggit, Internet
 
Safe &
 
Fun).
Tested devices
 
accessible for at
 
least 5 categories
 
of
disability:
number of
 
tested smartphones
 
and tablets
 
that are
accessible
 
for disabled
 
people
 
(6 categories
 
of disability
 
in total
are tested by Proximus).
Note(s)
S6.1:
We invest
 
436,191 in
 
digital inclusion
 
projects for job
seekers
 
(MolenGeek,
 
19 and
 
Technobel),
 
children
 
(Internet
 
Safe
& Fun
 
together
 
with Child
 
Focus),
 
long-term
 
sick children
(Bednet and ClassContact),
 
seniors (diggit) and disabled people
(Passe Muraille),
 
and in the
 
Digital Inclusion
 
Alliance, DigitAll.
More
 
information
 
on these
 
initiatives
 
can be
 
found
 
in the
 
“Act for
 
a
green and digital
 
society” strategic
 
pillar (PXXX).
S6.2:
Our employees spent
 
2,961 hours in
 
digital inclusion
initiatives
 
as volunteers
 
in the Internet
 
Safe & Fun
 
project, as
General
 
Manager
 
of Technobel
 
and to install
 
internet lines
 
for
long-term sick children.
S6.3:
The decrease in 2021 compared to 2020 is due to the
fact that we have included less accessible devices from new
suppliers in our offer.
*External audit
Digital education
 
Numbers
S6.3
 
Digital accessibility
 
%
 
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proximus-2021-12-31p168i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
158
Environmental
 
statement
General
 
note
 
to the
 
environmental
statement
The environmental
 
statement
 
describes
 
the key
 
indicators,
 
scoping,
boundaries,
 
calculation
 
methodologies
 
and reporting
 
standards
 
for
all environment
 
domains.
 
The indicators
 
marked
 
by a
 
tick
 
mark
 
are
subject
 
to a limited
 
external
 
assurance
 
audit
 
by
 
Deloitte.
Scope
 
of the
 
environmental
 
statement
We measure
 
all activities
 
that
 
are subject
 
to operational
 
control
 
and
material
 
for the
 
Proximus
 
Group.
 
These include
 
Proximus
 
SA,
Proximus
 
Media
 
House SA,
 
BICS SA,
 
Connectimmo
 
SA, Scarlet
Belgium
 
SA, Proximus
 
ICT SA,
 
Telindus
 
– ISIT
 
BV, Proximus
Luxembourg
 
SA and
 
Be Mobile
 
SA. All
 
figures
 
reported
 
are Proximus
Group
 
based
 
except
 
when
 
mentioned
 
differently.
E1:
 
Energy
E1
Energy
Unit
2017
2018
2019
2020
2021
P
*
(vs previous year)
(vs 2015)
(vs 2007)
organization from
 
non-renewable sources
organization from
 
renewable sources
organization
organization in GWh
(vs previous year)
(vs 2015)
(vs 2007)
production (RE100 Belgium/Group)
*External audit
Total energy consumption
 
within the
organization
TJ
1,967
1,876
1,808
1,652
1,571
P
Evolution total energy consumption
%
-1%
-5%
-4%
-9%
-5%
Evolution total energy consumption
%
-5%
-9%
-12%
-20%
-24%
Evolution total energy consumption
%
-22%
-26%
-29%
-35%
-38%
Total fuel consumption within the
TJ
575
552
525
384
391
P
E1.1
Heating: Natural gas
 
TJ
101
101
105
62
73
P
E1.2
Heating: Heating oil
 
TJ
63
50
35
46
25
P
Vehicle fleet: Diesel
 
TJ
409
398
373
262
259
P
E1.3
Vehicle fleet: Petrol
 
TJ
1
4
12
15
30
P
Vehicle fleet: CNG
 
TJ
/
/
/
/
4
P
Total fuel consumption within the
TJ
0
0
0
0
0
Heating, cooling or steam consumption
 
TJ
0
0
0
0
0
Electricity, heating, cooling or steam sold
 
TJ
0
0
0
0
0
Electricity consumption within the
TJ
1,392
1,323
1,283
1,267
1,180
P
Electricity consumption within the
GWh
387
368
357
352
328
Evolution electricity consumption
%
-1%
-5%
-3%
-1%
-7%
Evolution electricity consumption
%
-4%
-8%
-11%
-12%
-18%
Evolution electricity consumption
%
-17%
-21%
-23%
-24%
-29%
Fixed and mobile network
 
GWh
285
269
268
272
251
Data Centers
 
GWh
56
55
53
51
53
E1.4
Offices + Shops
 
GWh
45
43
36
28
24
% electricity consumed from
renewable sources with GoO or own
 
%
100/98
100/99
100/100
100/100
100/100
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
159
E1
 
Energy
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
Energy efficiency
 
ratio (revenue based)
 
TJ/Mio
0.339
0.322
0.317
0.290
0.280
P
Energy efficiency ratio (FTE based)
 
TJ/FTE
0.147
0.140
0.140
0.140
0.136
P
E1.5
 
Energy savings network
 
TJ
137
47
40
29
22
PUE data centers
 
Ratio
1.63
1.65
1.60
1.56
1.49
Evolution average energy consumption
%
customer TV-decoders vs 2014
-33%
-41%
-50%
-54%
-58%
Definitions
TJ:
Terajoule
 
is a unit
 
of energy.
Heating:
 
natural
 
gas:
Calculation
 
based on
 
suppliers’
 
billing
data based on gas
 
meter readings.
Heating
 
oil:
Calculation
 
based on
 
suppliers’
 
billing data
 
based
on oil tank refills.
Electricity
 
consumption
 
within the
 
organization:
Calculation
based on
 
the Proximus
 
energy management
 
system GENY
(Belgian
 
activities)
 
and the invoices
 
of energy
 
suppliers from
2021.
GoO:
A Guarantee
 
of Origin
 
is a tracking
 
instrument and
 
labels
electricity
 
from renewable
 
sources
 
to provide
 
information
 
to
electricity customers
 
on the source
 
of their energy.
RE100:
RE100
 
is the
 
global
 
corporate
 
renewable
 
energy
initiative
 
bringing
 
together
 
hundreds
 
of large
 
and ambitious
businesses
 
committed
 
to 100%
 
renewable
 
electricity.
FTE: Number
 
of
Full Time
 
Equivalent
 
employees.
Energy savings network:
Calculation based on actions
undertaken during
 
the reporting period
 
calculated over a
window
 
of 12
 
months.
 
The savings
 
projects
 
were implemented
during the reporting
 
year, hence the
 
results only become
material
 
in the
 
current
 
and following
 
reporting year,
 
but the
order of
 
magnitude
 
remains comparable
 
on a year-by-year
basis.
 
The infrastructure
 
savings are
 
calculated
 
based on
 
the
directly
 
measured
 
electricity
 
consumption
 
and an estimated
indirect
 
consumption
 
such as for
 
cooling
 
before and
 
after the
savings.
PUE:
Power Usage
 
Effectiveness,
 
a ratio describing
 
how
efficiently
 
a data
 
center uses
 
energy, focusing
 
on how much
the computing
 
equipment
 
uses compared
 
to the
 
cooling
 
and
other overhead that occurs.
Evolution average
 
energy consumption
 
customer TV-
decoders
 
vs 2014:
The baseline
 
for the
 
calculation
 
of savings
related
 
to the
 
electricity
 
consumption
 
of TV decoders
 
installed
 
at
customer premises
 
is based
 
upon the formula
 
described in the
EU Code of
 
Conduct for
 
digital TV
 
services, the technical
consumption
 
data provided
 
by the vendors
 
and the installed
base devices
 
by type at
 
customer
 
premises.
 
We hit our target
 
to
halve the
 
average energy
 
consumption
 
in 2019 and
 
are still
working
 
to get
 
the consumption
 
to the
 
lowest
 
amount
 
possible
by adjusting
 
our devices
 
and their
 
efficiency and
 
by replacing
the oldest decoders.
Notes
E1.1:
According
 
to the Synergrid
 
degree days,
 
in 2021 it was
22% colder
 
than in
 
2020 in
 
Belgium,
 
which resulted
 
in a 17%
increase in natural
 
gas consumption.
E1.2:
Replenishment
 
of heating
 
fuel depends heavily
 
on the
average
 
outdoor
 
temperature
 
of the preceding
 
period and
 
the
need for
 
fuel for
 
the emergency
 
generators.
 
According
 
to
 
the
Synergrid
 
degree
 
days, heating
 
needs
 
in 2020
 
were 22%
 
lower
which
 
led to
 
greater
 
fuel
 
reserves
 
in 2021.
 
Additionally,
there was
 
an impact
 
due to
 
COVID-19
 
measures.
 
All of
 
this led
 
to
a significant decrease
 
of 45% in 2021.
E1.3:
Proximus has
 
an increasing
 
number of
 
PHEVs (Plug-in
Hybrid Electric
 
Vehicle)
 
with a
 
petrol
 
engine in
 
replacement
 
of
diesel vehicles.
E1.4:
The electricity
 
consumption has decreased
 
due to
COVID-19
 
mandatory
 
home working,
 
less cooling
 
demand in
the summer and
 
multiple energy
 
efficiency measures.
E1.5:
The 2020
 
figure
 
changed,
 
from 7
 
TJ to 29
 
TJ, due
 
to a
delay in the
 
calculations for
 
the 2020 annual
 
report.
*External audit
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
160
E2:
 
Emissions
CO
2
e emissions scope 1, 2 and 3
 
KTons
 
811.6
 
847.7
 
779.3
 
463.8
 
459.4
P
and 3 (vs previous year)
and 3 (vs 2015
 
baseline)
2 market based
(vs previous year)
(vs 2007 baseline)
credits (scope 1 and 2)
refrigerants
 
and fleet
 
fuel
heating
refrigerants
fleet fuel
market based method
electricity
 
- location
 
based
 
method
categories
baseline)
 
- Science
 
Based Target
 
WB2C
goods and services - Belgium
– Belgium
-
 
Belgium
travel
*External audit
E2
Emissions
Unit
2017
2018
2019
2020
2021
P
*
Evolution CO
2
e emissions scope 1, 2
%
6%
4%
-8%
-40%
-1%
Evolution CO
2
e emissions scope
 
1, 2
%
8%
12%
3%
-39%
-39%
CO
2
e emissions scope 1 and scope
KTons
46.5
39.0
36.9
27.4
26.6
P
Evolution CO
2
e emissions scope 1 and 2
%
-4%
-16%
-5%
-26%
-3%
Evolution CO
2
e emissions scope 1 and
2 (vs 2015 baseline) - Science Based
 
%
Target WB2C
-8%
-22%
-27%
-45%
-47%
Evolution CO
2
e emissions scope 1 and 2
%
-72%
-78%
-79%
-83%
-84%
CO
2
e emissions compensated by carbon
KTons
47.9
42.2
40.1
27.4
26.6
Tons
Carbon intensity (scope 1 and 2)
 
CO
2
e/Mio
8.0
6.7
6.5
4.8
4.8
revenue
Carbon intensity (scope 1 and 2)
Tons
3.5
 
2.9
 
2.9
 
2.4
 
2.3
CO
2
e/#FTEs
CO
2
e emissions scope 1 - heating,
KTons
43.9
38.0
36.0
26.6
26.6
P
E2.1
CO
2
e emissions scope 1 -
KTons
11.0
10.0
9.2
7.2
6.4
P
CO
2
e emissions scope 1 -
KTons
4.6
0.3
0.3
0.3
0.2
P
CO
2
e emissions scope 1 -
KTons
28.3
27.7
26.5
19.1
20.1
P
E2.2
CO
2
e emissions scope 2 - electricity -
KTons
2.6
1.0
0.9
0.8
0.0
P
E2.3
CO
2
e emissions scope 2 -
KTons
68.4
65.0
62.5
70.4
52.2
CO
2
e emissions scope 3 - 11 relevant
KTons
765.1
808.7
742.4
436.4
432.8
P
Evolution
 
CO
2
e emissions
 
scope 3
 
(vs 2014
%
0%
5%
-3%
-43%
-44%
E2.4
Scope 3 - category 1 - purchased
KTons
481.0
540.0
460.4
348.7
339.5
P
E2.5
Scope 3 - category 2 - capital goods
KTons
176.5
184.5
199.8
0
0
P
Scope 3 - category 3 - fuel and
E2.6
energy related activities (not in scope
 
KTons
1 and 2) - Group
9.3
8.9
9.3
8.7
8.9
P
Scope 3 - category 4 - upstream
E2.7
transportation and distribution -
 
KTons
Belgium
4.4
3.6
2.9
2.8
3.2
P
Scope 3 - category 5 - waste disposal
KTons
0.9
1.0
1.0
0.6
0.5
P
E2.8
Scope 3 - category 6 - business
KTons
1.4
1.3
1.8
1.4
0.3
P
Scope 3 - category 7 - employee
E2.9
commuting incl. homeworking -
 
KTons
5.1
5.2
5.4
4.9
7.7
P
Belgium
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
161
products -Belgium
treatment of sold
 
products - Belgium
 
leased
assets - Belgium
applicable
Definitions
CO
2
e emissions scope 1+2+3:
The CO
2
e consumption
represents
 
a CO
2
 
equivalent
 
emission
 
figure of
 
all greenhouse
gases combined, i.e., CO
2
, CH
4
, N
2
O, HFCs, PFCs, SF
6
. The
gases of
 
primary
 
interest
 
for Proximus
 
are CO
2
 
and HFCs,
 
but
CH
4
 
and N
2
O are also
 
included
 
in the calculation
 
as stipulated
by the
 
GHG Protocol.
 
Since many
 
years we
 
adopt the
 
principle
 
of
best available data
 
quality.
Science
 
Based Target:
Science-based
 
targets provide
 
a clearly
defined
 
pathway
 
for companies
 
to reduce
 
Greenhouse
 
gas
(GHG) emissions,
 
helping prevent
 
the worst impacts
 
of climate
change
 
and future-proof
 
business
 
growth.
 
Targets
 
are
considered "science-based"
 
if they are in
 
line with what
 
the
latest climate
 
science deems
 
necessary
 
to meet the goals
 
of
the Paris
 
Agreement
 
– limiting
 
global
 
warming
 
to Well-Below
2°C (WB2C)
 
above pre-industrial
 
levels and
 
pursuing efforts
 
to
limit warming
 
to 1.5°C.
 
Recently,
 
the Intergovernmental
 
Panel
on Climate
 
Change warned
 
that global warming
 
must not
exceed 1.5°C
 
to avoid
 
the catastrophic
 
impacts
 
of climate
change
 
and that
 
GHG emissions
 
must halve
 
by 2030
 
and drop
 
to
zero by 2050.
We track
 
our carbon
 
emissions
 
against
 
the approved
 
Science
Based
 
Target
 
(Well
 
Below
 
2°C)
 
we set
 
in 2016
 
and reached
 
the
scope
 
1+2
 
target
 
and intermediate
 
target
 
already
 
in 2020.
Scope 1+2:
 
Our target
 
was -30%
 
reduction
 
for our
 
scope 1
and 2 emissions
 
by 2025 compared
 
to 2015.
Scope 3:
 
Our target
 
was an
 
intermediate
 
of -10%
 
by 2025
and -50% by 2040
 
compared to 2014.
In 2021, we committed
 
to SBT 1.5°C
 
and set a net Zero
 
target
by 2040,
 
in line
 
with the
 
new SBTi
 
Corporate
 
Net-
 
Zero
Standard published in
 
October 2021.
Carbon credits:
We have a
 
Carbon Neutral
 
Company label for
our own
 
Group operations
 
being car fleet,
 
electricity, heating
and refrigerants
 
(scopes 1
 
and 2),
 
by offsetting
 
what
 
we
cannot reduce
 
yet. Proximus
 
is the main
 
driving force behind
the development
 
of the
 
multiannual
 
“Gold Standard”
 
certified
climate
 
project
 
called the
 
TEG Stove
 
project (More
info: www.tegstove.org).
 
We also
 
support
 
some other
 
projects
contributing
 
to several
 
Sustainable
 
Development
 
Goals.
Together
 
with our
 
Gold Standard
 
partners,
 
we are carbon
neutral.
Notes
E2.1:
According
 
to the Synergrid
 
degree days,
 
in 2021
 
it was
22% colder
 
than in
 
2020 in
 
Belgium,
 
which resulted
 
in a 17%
increase in natural
 
gas consumption.
E2.2:
2021 is
 
the first
 
reporting
 
year with
 
zero emissions
 
from
100% renewable energy
 
sources.
E2.3:
The carbon
 
emissions
 
calculated using
 
the location-
based method decreased
 
by 26% due to
 
energy-savings
measures
 
and a lower
 
carbon emission
 
factor in
 
Belgium,
 
The
Netherlands
 
and Luxembourg,
 
where Proximus’
 
main activities
take place.
E2.4:
The data source
 
has changed
 
and improved
 
using SAP
extraction
 
(invoiced
 
amounts).
 
New commodity
 
codes (UNSPC
categories
 
2022)
 
have been
 
revised
 
and the
 
carbon
 
emission
factors
 
have been
 
reviewed
 
and applied
 
according
 
to the
new commodity
 
codes. The
 
calculations
 
have been
 
updated
retroactively for 2020.
E2.5:
The carbon emissions of Purchased goods and
services and
 
Capital Goods
 
are calculated
 
through the
 
same
methodology
 
starting
 
from the
 
yearly
 
procurement
 
spend. It
was not
 
possible
 
to split
 
the CAPEX
 
from the
 
OPEX spend
 
in
a qualitative
 
way so
 
the carbon
 
emissions
 
from Capital
 
Goods
 
are
included in cat.1.
 
The calculations
 
have been updated
retroactively for 2020.
E2
 
Emissions
 
Unit
2017
2018
2019
2020
2021
P
*
Scope 3 – category 9 - downstream
E2.10
transportation and distribution -
 
KTons
Belgium
/
/
/
/
0.7
P
E2.11
Scope 3 - category 11 - use of sold
KTons
5.7
4.6
4.5
13.4
19.8
P
E2.12
Scope 3 - category 12 - end of life
KTons
/
/
/
/
0.0
P
E2.13
Scope 3 - category 13 - downstream
KTons
80.7
59.7
57.4
55.9
52.1
P
Scope 3 - category 8, 10, 14, 15 - not
KTons
 
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*External audit
 
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163
E2.6:
The former embedded carbon emissions from
homeworking
 
and outsourced
 
warehouse
 
in the
 
period
 
2017-
2021 shifted to
 
cat. 7 and cat.
 
4 respectively in line
 
with the
GHG Protocol guidance.
E2.7:
The carbon
 
emissions
 
increased
 
because more
 
work
was carried
 
out by
 
subcontractors,
 
resulting
 
in a higher
 
fuel
consumption.
E2.8:
The number
 
of business
 
trips
 
dropped
 
significantly
 
due
 
to
COVID-19 measures.
E2.9:
The carbon
 
emissions
 
have increased
 
significantly,
however it is difficult
 
to make a comparison
 
with previous years
due to
 
the different
 
COVID-19
 
situations.
 
Although
 
not required
by the
 
GHG Protocol,
 
Proximus
 
deliberately
 
chooses
 
to include
the estimated
 
additional
 
emissions
 
resulting
 
from home-based
work (e.g.
 
additional
 
heating and desktop
 
use) in
 
its reporting.
Whilst the
 
emissions
 
in category
 
3.7 increase,
 
this
increase
 
is largely
 
compensated
 
for in
 
the scope
 
1 emissions,
 
as
the emissions
 
from
 
company
 
cars have
 
decreased
 
drastically
compared
 
to the
 
period
 
before the
 
home working
 
policy
 
was
introduced.
E2.10:
2021 is
 
the first
 
reporting
 
year with
 
a measurement
 
in
this category.
E2.11:
We added the Wi-Fi Booster
 
as a new device in 2020
and 2021, next to
 
mobile phones, resulting
 
in the significant
increase compared to
 
2019.
E2.12:
2021 is
 
the first
 
reporting
 
year with
 
a measurement
 
in this
category,
 
however
 
it is clear
 
that the
 
impact
 
of this
 
category
 
with
14.2
 
Ton CO
2
e is
 
not material.
 
Main reason
 
is the
 
limited
 
weight of
the smartphones
 
and Wi-Fi Boosters.
E2.13:
This is
 
the first
 
year we
 
report
 
this category
 
in line
 
with
the GHG
 
Protocol
 
Guidance.
 
The use
 
of modems
 
and TV
decoders was previously
 
reported in cat.
 
11.
Overview of our Scope 1, 2
 
and 3 standards
Scope (GHG
 
Protocol)
+ activity
Possible impact
from Proximus
Scope/% vs
Group total
Climate neutrality/
renewable energy
GWP
Source emission
factors
External audit
assurance
 
level
Car fleet fuel
 
High
Proximus Group/
100%
100% carbon credits -
Gold Standard
AR5 IPCC
Base Carbone +
Bilan Carbone
Limited
Heating of building
installations
High
Proximus Group/
100%
100% carbon credits -
Gold Standard
AR5 IPCC
Gas: GHG protocol
heating fuel: Base
Carbone + Bilan
Carbone
Limited
Cooling of building
installations-refrigerants
High
Proximus Group/
100%
100% carbon credits -
Gold Standard
AR5 IPCC
 
Bilan Carbone
 
Limited
Emissions released
during the generation
of electricity that is
purchased by the
company. This includes
also EV charging.
High
Proximus Group/
100%
Renewable
 
energy
sources: 100%
AR5 IPCC
IEA (CO
2
 
emissions
from fuel
combustion –
highlights) - 2021
Limited
Resource extraction,
transportation and
production of purchased
goods and services
Medium
Proximus in
Belgium/ 95%
None
 
AR5 IPCC
LCA based
(customer
products), Bilan
Carbone, IEA,
Carnegie emission
factors
Limited
Capital goods
 
Medium
Proximus in
None
 
AR5 IPCC
Belgium/ 95%
Carnegie emission
factors, IEA, LCA
based
Limited
Scope 1 – Direct emissions
Scope 2 – Indirect emissions
Scope 3 - Cat. 1
Scope 3 - Cat. 2
 
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Integrated annual report
 
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I
162
Scope (GHG
 
Protocol)
+ activity
Possible impact
from Proximus
Scope/% vs
Group total
Climate neutrality/
renewable energy
GWP
Source emission
factors
External audit
assurance
 
level
Extraction, production and
transportation of direct
fuels and electricity
purchased by the
Proximus Group, non-
reported in scopes 1 and
2. Network losses,
 
among
others, are included in
transportation
High
Proximus Group/
None
 
AR5 IPCC
 
Bilan Carbone, IEA
 
Limited
100%
Transportation of
subcontractors for
network operations,
subcontracted
warehousing
Low
Proximus in
None
 
AR5 IPCC
Belgium/ 95%
Bilan Carbone
EEIO model (other
subcontractors
 
fall
within Cat.1)
Limited
Treatment of waste flows
 
Medium
Proximus in
Belgium/ 95%
None
 
AR5 IPCC
 
Bilan Carbone
 
Limited
International travel
Low
by airplane or train
Proximus in
None
 
AR5 IPCC
Belgium/ 95%
Official figures of
travel agency -
Defra
Limited
Employee commuting.
Homeworking Company
cars are accounted for in
scope 1
High
Proximus
 
Group
98%
None
 
AR5 IPCC
 
Bilan Carbone
 
Limited
Outbound transportation
from the warehouse to
customers and shops
Low
Proximus in
None
 
AR5 IPCC
 
Vendor based
 
Limited
Belgium/ 98%
Energy consumption of
customers’ Proximus
devices (sold mobile
phones and Wi-Fi
boosters)
High
Proximus in
None
 
AR5 IPCC
 
Bilan Carbone, IEA
 
Limited
Belgium/ 95%
End of life treatment of
mobile phones and Wi-Fi
Boosters
Low
Proximus in
None
 
AR5 IPCC
 
Bilan Carbone
 
Limited
Belgium/ 98%
Energy consumption of
customers’ Proximus
devices (leased modems
and TV decoders)
Medium
Proximus in
Belgium/ 98%
None
 
AR5 IPCC
 
Bilan Carbone, IEA
 
Limited
Investments: included in
cat.2
N.A.
Proximus in
Belgium/ 95%
None
 
AR5 IPCC
 
N.A.
 
Limited
Scope 3 - Cat. 3
Scope 3 - Cat. 4
Scope 3 - Cat. 5
Scope 3 - Cat. 6
Scope 3 - Cat. 7
Scope 3 - Cat. 9
Scope 3 - Cat. 11
Scope 3 - Cat. 12
Scope 3 - Cat. 13
Scope 3 - Cat. 15
Scope 3 – Cat. 8, 10, 14
 
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I
163
N.A.
 
N.A.
 
N.A.
 
N.A.
 
AR5 IPCC
 
N.A.
 
N.A.
 
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164
E3:
 
Abatement
 
of Carbon
 
Emissions
 
through
 
our products
 
& services
E3
 
Carbon Abatement
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
Broadband enabled homeworking
KTon CO
2
e
/
/
/
372.53
382.18
Dematerialization & device leasing
KTon CO
2
e
/
/
/
41.19
63.20
Online conferencing & collaboration
KTon CO
2
e
/
/
/
32.89
36.57
Cloud & IP communication
KTon CO
2
e
/
/
/
1.33
1.46
Proximus & public cloud
KTon CO
2
e
/
/
/
3.93
4.04
Vehicle & traffic management
KTon CO
2
e
/
/
/
7.40
8.69
Smart building & metering
KTon CO
2
e
/
/
/
5.92
5.72
Definitions
Carbon abatement:
We chose to
 
calculate
 
the avoided
emissions
 
we can account
 
for based
 
on our products
 
and
solutions
 
direct
 
margin.
 
The
 
following
 
elements have
 
been
considered in the calculation:
The volume
 
of products
 
and solutions
 
sold
The contribution
 
of our
 
solution
 
or product
 
to the carbon
abatement
The amount
 
of CO
2
 
emissions
 
the product
 
or solution
 
itself
generates
The direct
 
margins
 
on our
 
products
 
or solutions.
Dematerialization:
suppressing
 
the use of
 
physical
 
material by
for example offering
 
a digital alternative.
IP:
The Internet
 
Protocol
 
is a family
 
of computer
 
network
communication
 
protocols
 
designed
 
for use
 
on the
 
Internet.
Smart building & metering:
The IoT (Internet of Things)
solution
 
embody
 
intelligence
 
in buildings
 
in order
 
to consume
energy
 
and space
 
more efficiently.
 
IoT solutions
 
will also
 
help
 
to
monitor how
 
rooms are
 
used and to
 
adjust their function
whenever possible.
*External audit
Total
 
KTon CO
2
e
 
/
 
/
 
/
 
465.19
 
501.86
 
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I
165
E4: Circularity
reused - Belgium
recovery - Belgium
- Belgium
E4.4
Paper consumption - Belgium
KTons
1.29
0.97
0.65
0.59
0.38
E4.5
Water consumption - Belgium
‘000L
124,611
146,599
109,392
87,551
77,823
Total collected
 
devices (including
E4.6
DTMC) - Belgium and Proximus
Luxembourg
Number
/
 
/
/
 
/
906,832
P
Belgium
of new installed modems -
 
Belgium
Belgium
Belgium
equipment - Belgium
*External audit
E4
 
Circularity
 
Unit
2017
2018
2019
2020
2021
P
*
% of hazardous waste - Belgium
 
%
4.30%
4.00%
8.70%
5.40%
3.48%
P
E4.2
 
% waste reused/recycled - Belgium
 
%
85%
87%
87%
88%
89%
P
Non-hazardous waste - recycled or
KTons
9.60
12.20
10.60
8.82
7.45
P
Recycled copper cables - Belgium
 
KTons
/
/
/
/
0.86
P
Non-hazardous waste - with energy
KTons
1.70
2.00
1.80
1.32
0.95
P
E4.3
 
Hazardous waste - recycled or recovered
KTons
0.50
0.60
1.20
0.57
0.30
P
Total DMTC Mobile
 
phones collected
 
Number
18,493
18,279
31,475
72,764
80,044
P
Mobile phones collected in
Proximus SA and Proximus
 
Number
Luxembourg for reuse and recycling
4,493
9,237
19,255
64,941
70,830
P
Mobiles phones collected in schools
with GoodPlanet Belgium for reuse
 
Number
and recycling
14,000
9,042
12,220
7,823
9,576
P
Number of refurbished
 
computers offered
to schools as reward for mobile
 
phone
 
Number
recycling - Belgium
250
156
189
239
432
E4.7
 
Number of refurbished modems -
Number
122,397
182,553
140,000
164,340
178,520
P
E4.7
 
Number of refurbished modems/number
%
24%
32%
26%
32%
28%
E4.7
 
Number of refurbished TV decoders -
Number
199,797
222,991
196,000
245,136
314,407
P
Number of refurbished TV decoders/
E4.7
 
number of new installed TV decoders -
 
%
Belgium
56%
44%
39%
41%
51%
Number of refurbished remotes -
Number
/
/
/
/
8,348
P
Number of refurbished PSU’s - Belgium
 
Number
/
/
/
/
231,357
P
Number of refurbished Wi-Fi boosters -
Number
/
/
/
/
78,400
P
Number of refurbished PABX - Belgium
 
Number
/
/
/
/
9,250
P
Number of refurbished network
Number
/
/
/
/
6,506
P
 
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2021
I
166
Definitions
Waste calculation:
Monthly
 
bills and
 
certificates
 
of waste
processors
 
are combined
 
into a
 
single annual
 
report,
 
which is
then updated
 
with additional
 
information
 
received from
 
the
waste processors:
The weights
 
of the
 
subscriptions
 
and the
 
individually
measured weights of
 
the waste collections.
Distinction
 
between
 
hazardous
 
and non-hazardous
 
waste.
Processing methods
 
such as composting,
 
recycling,
reprocessing,
 
reuse or
 
residual
 
waste with
 
energy
 
recovery
DMTC:
Our mobile
 
phone collection
 
program,
 
"Don’t Miss
 
The
Call".
PSU’s:
Power
 
supply
 
units are
 
the power
 
cables of
 
the devices
we recover.
PABX:
Private automatic
 
branch exchange,
 
is a private
telephone
 
switchboard.
 
This is
 
a telephone
 
switchboard
 
used
privately by a company.
Notes
E4.1:
Decline in
 
waste due
 
to switch
 
from average
 
weights, after
sorting
 
out by
 
the waste
 
processor,
 
to real weights,
 
before sorting
out by the waste
 
processor. As last
 
year, this weight includes
 
the
weights
 
of the
 
refurbished
 
modems
 
and decoders.
E4.2:
In 2019 we have
 
set the ambition
 
to become a truly
circular company,
 
we want to
 
reach 90%
 
waste reused
 
or
recycled
 
by 2025
 
and to
 
reach zero
 
waste by 2030.
 
We are
well on
 
our way
 
to achieving
 
this goal
 
as we
 
already
 
recycle
 
or
reuse 89% of our
 
waste.
E4.3:
98% of
 
the hazardous
 
waste is
 
battery
 
related.
E4.4:
The reduction
 
in paper
 
consumption is
 
driven by three
factors: less
 
paper used
 
on office
 
printers, door-to-door
advertising
 
was replaced
 
by inserts
 
in daily
 
press and
 
there was
 
a
switch to electronic
 
invoicing versus paper
 
ones.
E4.5:
“Water consumption
 
- Belgium”
 
is measured
 
based on
periodic bills.
E4.6:
In 2021,
 
five categories
 
of refurbished
 
devices were
added: remotes,
 
PSU’s, Wi-Fi
 
boosters,
 
PABX and
 
network
equipment.
 
The DMTC
 
project
 
was still
 
impacted by
 
COVID-19
due to collection
 
limitations
 
in schools,
 
shops, and
 
corporate
business.
 
There are
 
fluctuations
 
in the
 
numbers
 
of refurbished
devices, driven
 
by decisions
 
to phase
 
out old equipment.
E4.7:
Corrections of
 
the 2020 figures,
 
for modems from
171,204 to 164,340 and for decoders from 256,907
 
to
245,136,
 
to align
 
a difference
 
in accounting
 
between 2020
 
and
2021. This
 
has a small
 
influence
 
on the total waste
 
figures as
well.
 
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2021
I
167
E5:
 
Supply
 
Chain
E5
 
Supply Chain
 
Unit
 
2017
 
2018
 
2019
 
2020
 
2021
 
P
*
% of the total spend covered by
supplier Ecovadis sustainability
 
%
scorecards - Proximus SA
40%
40%
32%
55%
56%
E5.1
Number of on-site audits in
collaboration with JAC
Number
89
91
84
80
71
E5.2
 
Circular Manifesto’s signed
Number
/
 
/
/
 
21
53
E5.2
 
Procurement controlled spend covered
%
by Circular Manifesto’s - Proximus SA
/
 
/
/
 
/
50%
Definitions
JAC:
Joint Audit
 
Co-operation,
 
an association
 
of telecom
operators aiming to verify, assess and develop the
 
CSR
(Corporate
 
Social
 
Responsibility)
 
implementation
 
across the
manufacturing
 
centers
 
of the
 
most important
 
ICT multinational
suppliers.
Circular Manifesto:
is a public
 
letter of
 
intent aligning
 
the
sustainable
 
goals of
 
the supplier
 
with
 
the ones
 
of Proximus.
Notes
E5.1:
Decline
 
in audit
 
numbers
 
is due
 
to COVID-19
 
measures.
E.5.2:
Increase
 
due to
 
Proximus’
 
efforts
 
to engage
 
more
suppliers in this process.
*External audit
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
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Integrated annual report
 
2021
I
168
E6:
 
Environmental
 
management
 
system
Proximus’
 
environmental
 
management
 
system is
 
made up of
different
 
components.
 
There are
 
different
 
parties
 
involved
 
and
the system has
 
a variety of
 
tools and resources.
Stakeholders
The Sustainability
 
department,
 
with a
 
strong focus
 
on
environmental
 
issues,
 
circularity
 
and climate
 
change
The Corporate
 
Prevention
 
& Protection
 
department,
 
including
the Environmental department
The Internal Audit department reports to the Board
 
of
Directors
 
and carries
 
out audits
 
on all
 
kinds of
 
environmental
aspects
 
at the
 
request
 
of the
 
Environment
 
or Sustainability
departments, the
 
Board of Directors,
 
or the Executive Committee
Government-accredited
 
independent
 
external
 
organizations,
which audit
 
our waste
 
policy and
 
procedures
 
(packaging,
WEEE, batteries).
Resources and activities
Procedures, guidelines,
 
plans and campaigns
 
related to
environmental
 
issues (e.g. surveys and info sessions
 
for
employees to improve
 
our mobility policy),
New packaging
 
waste prevention
 
plan 2019-2022
 
for
the Interregional
 
Packaging
 
Commission
 
and awareness
campaigns on waste
 
recycling,
Anti-pollution
 
plan in
 
the event
 
of severe
 
air pollution
 
in the
Brussels Region,
Environmental
 
policy updated,
Field visits
 
concerning
 
environmental
 
issues such
 
as hazardous
products, waste and
 
control of permit,
Communication
 
channels:
 
intranet
 
news, toolboxes,
 
internal
reporting to the
 
Executive Committee,
Integrated
 
management
 
system,
 
ISO9001
 
certificate,
Environmental
 
and sustainability
 
clauses in
 
purchasing
procedures,
Regional
 
permits
 
for light
 
5G roll-out
 
in Flanders
 
and Brussels,
Noise
 
studies
 
and control
 
measurements
 
to ensure
 
compliance
with noise
 
standards and
 
limit disturbance
 
for neighbours,
Soil survey
 
for high-risk
 
installations,
E-learning
 
module
 
on the
 
impact of
 
mobile
 
and wireless
telephony on the
 
health of employees,
ISO14001
 
in preparation,
Completion
 
of a very
 
large soil
 
sanitation
 
project in Ostend,
where
 
there used
 
to be
 
a creosote
 
factory
 
for wooden
 
poles for
electricity
 
and telecom
 
cabling
 
(not operated
 
by Proximus).
 
The
dossier was
 
approved
 
by the regional
 
environmental
authorities
 
(OVAM).
 
The site
 
can now
 
be abandoned
 
and sold.
 
proximus-2021-12-31p3i0
 
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proximus-2021-12-31p181i12
 
proximus-2021-12-31p181i14 proximus-2021-12-31p181i16 proximus-2021-12-31p181i18 proximus-2021-12-31p181i20 proximus-2021-12-31p181i22 proximus-2021-12-31p181i24 proximus-2021-12-31p181i26
 
proximus-2021-12-31p181i28
 
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Proximus Group I
Integrated annual report
 
2021
I
169
EU
 
Taxonomy
The EU
 
taxonomy
 
is, currently,
 
a green
 
classification
 
system
 
that
translates
 
the EU's
 
climate
 
and environmental
 
objectives
 
into
criteria
 
for specific
 
economic
 
activities
 
for investment
 
purposes.
This year,
 
the EU
 
taxonomy
 
criteria
 
only define
 
activities
 
that
substantially
 
contribute
 
to fighting
 
climate
 
change.
Proximus
 
intends
 
to align
 
with
 
the EU
 
taxonomy
 
and therefore
 
this
year already
 
discloses
 
the eligibility
 
of its
 
economic
 
activities,
 
these
are activities
 
of Proximus
 
that could
 
be assessed
 
on their
sustainability under
 
the EU taxonomy
 
regulation.
Proximus
 
Group’s
 
economic
 
activities
 
were
 
evaluated
 
based on
 
the
EU Taxonomy
 
Regulation
 
and Delegated
 
Acts.
 
The economic
activities
 
for the
 
sector
 
“Information
 
and communication”
 
with NACE
codes J60,
 
J61, J62
 
and J63
 
were assessed,
 
as described
 
within
Annex I
 
& II of
 
the Climate
 
Delegated
 
Act. Firstly,
 
a NACE code
screening
 
has been
 
performed
 
of the following
 
subsidiaries,
 
of which
Proximus
 
owns
 
100%
 
of the
 
shares.
 
Secondly,
 
these activities
 
were
checked
 
against
 
the definitions
 
of the
 
economic
 
activities
 
within
 
the
EU taxonomy
 
regulations.
 
Thirdly,
 
these activities
 
were matched
with the
 
corresponding
 
financial
 
information.
 
The outcome
 
is that
Proximus
 
SA, Proximus
 
Media House
 
SA,
 
Proximus
 
ICT SA
 
and
Telindus
 
ISIT SA
 
have economic
 
activities
 
that are
 
assessed
 
as
eligible,
 
as shown
 
in the
 
organigram
 
below:
J61
Data-driven
 
solutions
 
for GHG
emissions
 
reductions
J62
Computer
 
programming,
consultancy
 
and related
 
activities
J60
Programming
 
and broadcasting
activities*
J62
Computer
 
programming,
consultancy
 
and related
 
activities
Other
 
economic
 
activities
 
are ‘Non-eligible’,
 
because
 
there
1) currently
 
are no
 
technical
 
screening
 
criteria
 
for certain
 
core
business
 
activities,
 
such as
 
network
 
2) the
 
efforts
 
needed for
 
the
assessment
 
of the
 
activity
 
were
 
not defendable:
 
the resources
 
needed
for the
 
assessment
 
would
 
not outweigh
 
the benefits
 
of reporting
 
the
activity
 
as taxonomy
 
eligible
 
(in terms
 
of materiality).
* It was not feasible in 2021 to match this activity, as described in EU taxonomy, with the
 
financial information.
Connectimmo
Proximus
Scarlet
Mobile
100%
 
42,4%
 
100%
100%
100%
100%
100%
100%
100%
Proximus
Opal SA
House SA
Proximus
Telindus
ISIT SA
57,6%
 
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Proximus Group I
Integrated annual report
 
2021
I
170
Assessment
 
on a NACE
 
code basis
 
only of eligibility
 
with EU
taxonomy
 
(excluding
 
Proximus
 
Media
 
House
 
SA) results
 
into the
following
 
numbers
 
for the
 
Proximus
 
Group
 
in 2021:
10%
eligible
7%
eligible
12%
eligible
 
The eligible
 
% correspond
 
mainly
 
with the
 
enterprise
 
ICT
services
 
of Proximus
 
Group.
 
The end
 
result
 
is a rather
 
high %
 
of
non-eligible
 
activities.
 
Activities
 
that are
 
non-eligible
 
means
these
 
activities
 
are currently
 
not covered
 
under
 
the system
of EU taxonomy.
 
That does
 
not disclose
 
any information
 
on
alignment
 
or the
 
sustainability
 
of economic
 
activities
 
according
 
to
the EU
 
taxonomy
 
system.
 
Activities
 
that are
 
outside
 
the scope
 
of
EU taxonomy,
 
can still
 
be sustainable.
 
Proximus
 
published
 
a
Sustainable
 
Finance
 
Framework
 
this year
 
with the
 
goal to
 
channel
 
its
investments
 
to projects
 
that have
 
demonstrated
 
climate
 
and
social
 
benefits.
 
The majority
 
of future
 
Capex will
 
be invested
 
into
sustainable
 
projects.
 
The sustainability
 
criteria
 
that are
 
set and
applied
 
by Proximus
 
can be
 
consulted
 
in the
 
Sustainable
 
Finance
section.
 
Proximus
 
is embedding
 
sustainability
 
into all
 
business
decisions,
 
see chapter
 
Act for
 
green
 
and digital
 
society.
In the
 
future
 
we will
 
further
 
integrate
 
EU taxonomy
 
in our
reporting
 
and refine
 
the scope
 
of the
 
assessment.
 
In 2022,
 
we
intend
 
to include
 
our network
 
and the
 
sustainability
 
benefits
 
of
our business
 
activities
 
into our
 
EU taxonomy
 
disclosure.
Revenue
Capex
Opex
 
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proximus-2021-12-31p5i4
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
171
Table
 
of
 
Task
Force
 
on
 
Climate-
Related
Financial
 
Disclosures
 
(TCFD)
As climate
 
change
 
is becoming
 
increasingly
 
important,
 
in 2021,
 
we
started
 
implementing
 
the recommendations
 
of the
 
Task
 
Force on
Climate-Related
 
Financial
 
Disclosures
 
(TCFD),
 
an international
framework
 
to financially
 
assess
 
climate
 
risk and
 
opportunities.
It is
 
the first
 
year
 
we are
 
reporting
 
according
 
to the
 
TCFD, more
efforts
 
will
 
be allocated
 
to the
 
further
 
integration
 
of TCFD
recommendations in
 
the coming years.
Governance
Disclose
 
the company’s
 
governance
 
around
 
climate-related
 
risks and
opportunities.
Recommendations
 
References
a
Describe the Board’s oversight
 
of climate-related risks and
opportunities.
b
Describe management’s role in assessing and
 
managing climate-
related risks and opportunities.
Corporat governance statement, Sustainability governance, Risk
Management report, Risk Management & Compliance Committee.
CDP Climate Change responses 2021: C1.1, C1.1a, C1.1b, C1.2, C1.2a
Sustainability governance, Remuneration
 
report: short-term and
long-term variable remuneration, Environmental
 
management
system.
CDP Climate Change responses 2021: C1.2, C1.2a
Strategy
Disclose
 
the actual
 
and potential
 
impacts
 
of climate-related
 
risks and
opportunities
 
on the
 
company’s
 
businesses,
 
strategy,
 
and financial
planning where such
 
information is material.
Recommendations
 
References
a
Describe the climate-related risks and opportunities
 
the company
has identified over the short, medium, and long term.
b
Describe the impact of climate-related risks and opportunities on
the company’s businesses, strategy, and financial planning.
c
Describe the resilience of
 
the company’s strategy, taking into
consideration different climate-related scenarios.
Applying high ethical standards,
 
Environmental risk and climate
 
change,
Sourcing & supply chain.
CDP Climate Change responses 2021: C2.1a, C2.1b, C2.2a, C2.3, C2.3a,
 
C2.4,
C2.4a, C3.1b, C3.1.d
Contributing to the UN Sustainable
 
Development Goals, Act for
 
a green
and digital society, Materiality
 
and stakeholder dialogue, EU
 
taxonomy,
Sustainable finance.
CDP Climate Change responses 2021: C3.1e, C3.1f
Environmental risk and climate change, Operational risk.
CDP Climate Change responses 2021: C2.3a, C2.4a, C3.1.d
 
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Proximus Group I
Integrated annual report
 
2021
I
172
Risk
 
Management
Disclose
 
how the
 
company
 
identifies,
 
assesses,
 
and manages
climate-related risks.
Recommendations
 
References
a
Describe the company’s processes for identifying
 
and assessing
climate-related risks.
b
Describe the company’s
 
processes for managing climate-related
risks.
c
Describe how processes for identifying, assessing, and managing
climate-related risks
 
are integrated
 
into the company’s overall
 
risk
management.
Risk management report, Environmental risk and climate change.
CDP Climate Change responses 2021: C2.2, C2.2a, C3.1b
 
Act for green and digital society, Risk management report.
CDP Climate Change responses 2021: C2.2, C2.2a, C3.1b
 
Risk management report
CDP Climate Change responses 2021: C2
Metrics
 
and
 
targets
Disclose the metrics
 
and targets used to assess and manage
relevant climate-related
 
risks and
 
opportunities where such
information is material.
Recommendations
 
References
a
Disclose the metrics used by
 
the company to assess climate-related
risks and opportunities.
b
Disclose Scope 1, Scope 2, and,
 
if appropriate, Scope 3 greenhouse
gas (GHG) emissions, and the related risks.
c
Describe the targets used by the company to manage climate-
related risks and opportunities and
 
performance against targets.
Act for a green and digital society, including a status
 
on our net zero and
truly circular ambitions, Environmental statement.
CDP Climate Change responses 2020:
 
C4.1a, C4.1b,C4.2a, C4.2b
Status on our net zero and truly circular ambitions,
 
Emissions,
Abatement of carbon emissions through our products & services.
CDP Climate Change responses 2021: C5.1, C6.1, C6.2, C6.3, C6.5, C6.10,
C7.1a, C7.2, C7.3a, C7.5, C7.6a, C7.9a
Environmental statement.
CDP Climate Change responses 2021: C4.1a, C4.1b, C4.2a, C4.2b, C4.3b,
C4.3c, C4.5a
 
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Proximus Group I
Integrated annual report
 
2021
I
173
GRI content
 
index
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
General disclosures
Organization
102-1
Name of the organization
 
Proximus public limited company under Belgian Public Law
profile
102-2
Activities, brands, products, and services
 
Who we are and the value we
 
create for society,
 
102-3
Location of the organization's headquarters
 
Boulevard du Roi Albert II, 27 B - 1030
 
Bruxelles
102-4
Number of countries operating
 
Who we are and the value we
 
create for society,
 
102-5
Nature of ownership and legal form
 
Integrated reporting approach,
 
Our shareholders,
 
102-6
Markets served
 
Who we are and the value we
 
create for society,
 
102-7
Scale of the reporting organization
 
- Social statement (S1: workforce),
 
- Consolidated financial statements,
 
- Key figures on the Proximus share,
102-8
Information on employees and other
 
workers
 
Social statement (S1: workforce),
 
102-9
Supply chain
 
Our value creation model,
 
Act for a green and digital society (scope 3: Indirect emissions
resulting from our value chain),
 
Applying high Ethical standards,
 
102-10
Significant changes to the organization and its
 
Acquisition of the full ownership of BICS in 2021
supply chain
102-11
Precautionary Principle or approach
 
Act for a green and digital society,
 
Risk management,
102-12
External initiatives
 
- #embracedifference pledge
Non-exhaustive
- Open@Work
list
- Inclusive Panels charter
- Women on Board
- #IamRemarkable
- Decent work for all - Commitment charter
- AfroPean network
- CDP
- CO2- neutral company
- SBT initiative
- RE100 climate group
- TCFD
- SDGs
102-13
Memberships of associations
 
- ETNO
Non-exhaustive
- VBO/FEB
list
- VOKA
- Agoria
- BECI (Union des entreprises de Bruxelles)
- UWE (Union Wallonne des Entreprises)
- Cercle de Wallonie
- TNO
- VKW
- Benelux Business Roundtable
- GSMA
- Center on Regulation in Europe
- ISPA Belgium
- ETIS
- Guberna
- Cyber Security Coalition
- The Shift
- Be.Face
- Joint Audit Cooperation
- Belgian Association of Marketing
- Greenwin
- Experience@work
- Synductis
Strategy
102-14
Statement from senior decision-maker
 
Foreword from our CEO and our Chairman,
 
 
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proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
174
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
Ethics and
integrity
102-16
Values, principles,
 
standards, and norms of
behavior
Our value creation model,
 
Corporate governance
 
statement,
 
Diversity &
inclusion statement,
 
Governance
102-18
Governance structure
Corporate governance statement,
 
Stakeholder
engagement
102-40
List of stakeholder groups
Integrated reporting
 
approach 2021; Our
value creation model,
 
Stakeholder
dialogue,
 
102-41
Collective bargaining agreements
Social statement (S1: workforce),
 
102-42
Identifying and selecting stakeholders
Stakeholder dialogue,
102-43
Approach to stakeholder engagement
Stakeholder dialogue,
102-44
Key topics and concerns raised
Stakeholder dialogue,
 
Reporting
practice
102-45
Entities included in the consolidated financial
statements
Notes to the consolidated financial statement,
102-46
Defining report content and topic Boundaries
Integrated reporting approach 2021,
102-47
List of material topics
Materiality and stakeholder dialogue,
 
102-48
Restatements of information
There is no
 
restatement of information unless
 
specifically
otherwise stated in the text
102-49
Changes in reporting
Materiality and stakeholder dialogue,
 
102-50
Reporting period
Jan 1 to Dec 31, 2021
102-51
Date of most recent report
March, 2021
102-52
Reporting cycle
Annually
102-53
Contact point for
 
questions regarding the
report
sustainability@proximus.com
102-54
Claims of reporting in accordance
 
with the GRI
Standards
Integrated reporting approach 2021,
 
102-55
GRI content index
GRI content index,
 
102-56
External assurance
Auditor’s Report,
 
Specific disclosures
GRI 203:
 
INDIRECT ECONOMIC
 
IMPACTS 2016
 
- Linked with
 
highly material
 
topics Supporting
 
digital infrastructure
 
for Belgian society
 
& Support small
 
and
medium business development
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Build the best gigabit network for Belgium,
 
Materiality and stakeholder
 
dialogue,
 
Build the best gigabit network for Belgium,
 
Grow profitably through
 
partners and ecosystems, Sustainability
governance,
 
103-3
Evaluation of the management approach
 
Overview of #inspire2022,
 
GRI 203: Indirect
economic
impacts 2016
203-1
 
Infrastructure investments
 
and services
supported
Overview of #inspire 2022,
 
Build the best gigabit network for Belgium,
 
Grow profitably through partners and
 
ecosystems,
 
Own
indicator
Own
indicator
Number of homes and business enabled with
fiber
Number of cities and municipalities where 5G
 
is available
Overview of #inspire 2022,
 
Overview
of #inspire 2022,
 
Own
indicator
Own
indicator
Number of use cases on 5G innovation platform
 
Overview of #inspire 2022,
 
Number
of new fiber wholesale partners
 
Overview of #inspire 2022,
 
Own
indicator
Own
indicator
Own
indicator
Number of MVNO partners that have
 
access
to 5G
Number of internet connections (consumer
segment)
NPS of PXS Small &
 
Medium-sized enterprise
customers
Overview of #inspire 2022,
 
Overview
of #inspire 2022,
 
Overview of #inspire 2022,
 
For competitive
reasons, we do
not disclose this
information
 
proximus-2021-12-31p3i0
 
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Proximus Group I
Integrated annual report
 
2021
I
175
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Compliance,
 
Applying high ethical standards, Materiality and
stakeholder dialogue,
 
Proximus governance model,
Sustainability governance,
Compliance,
 
103-3
Evaluation of the management approach
 
Compliance,
GRI 205: Anti-
corruption 2016
Own
indicator
Number of cases investigated by the
Investigations Department for violation of
policies/code of conduct
Compliance,
P
Own
indicator
Number of whistleblowing cases
 
Compliance,
 
P
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Act for a green and digital society, Materiality and
stakeholder dialogue,
 
Act for a green and
 
digital society, Sustainability
governance,
 
103-3
Evaluation of the management approach
 
Overview of #inspire2022,
 
Act for a green and digital society,
 
Environmental
statements (E4: circularity),
 
GRI 301:
Materials
 
2016
Own
indicator
Own
indicator
Number of modems & decoders refurbished
 
Overview of #inspire2022,
 
Environmental statements (E4: circularity),
P
Number of mobile phones collected
 
Overview of #inspire2022,
 
Environmental statements (E4: circularity),
 
P
Own
indicator
Number of recycled or
 
resold smartphones or
tablets on the second hand market
Overview of #inspire2022,
 
Environmental statements (E4: circularity),
 
GRI 302:
 
ENERGY 2016
 
- Linked
 
to highly
 
material topic Energy
 
and CO
2
 
emissions
GRI 103:
103-1
 
Explanation of the material topic and its
Management
Boundaries
Act for a green and digital society, Materiality and
stakeholder dialogue,
 
approach 2018
103-2
 
The management approach and its
components
Act for a green and
 
digital society,
Sustainability governance,
 
103-3
 
Evaluation of the management approach
Overview of #inspire2022,
 
Act for a green and digital society,
 
Environmental
statements (E1: Energy),
GRI 302: Energy
302-1
 
Energy consumption within the organization
Environmental statements (E1: Energy),
P
2016
302-3
 
Energy intensity
Environmental statements (E1: Energy),
P
302-4
 
Reduction of energy consumption
Environmental statements (E1: Energy),
 
302-5
 
Reductions in energy requirements of
products and services
Environmental statements (E1: Energy),
 
GRI 305:
 
EMISSIONS 2016
 
- Linked
 
to highly
 
material topic Energy
 
and CO
2
 
emissions
GRI 103:
Management
103-1
Explanation of the material topic and its
Boundaries
Act for a green and digital society, Materiality and
stakeholder dialogue,
 
approach 2018
103-2
The management approach and its
components
Act for a green and
 
digital society,
Sustainability governance,
 
103-3
Evaluation of the management approach
Overview of #inspire2022,
 
Act for a green and digital society,
 
Environmental
statements (E2: Emissions),
 
GRI 305:
Emissions 2016
305-1
Direct greenhouse gas (GHG) emissions
(Scope 1)
Environmental statements (E2: Emissions),
 
P
305-2
Energy indirect
 
greenhouse gas (GHG)
emissions (Scope 2)
Environmental statements (E2: Emissions),
 
P
305-3
Other indirect greenhouse gas (GHG)
emissions (Scope 3)
Environmental statements (E2: Emissions),
 
P
305-4
Greenhouse gas (GHG) emissions intensity
Environmental statements (E2: Emissions),
 
P
GRI 205:
 
ANTI-CORRUPTION
 
2016 - Linked
 
to highly
 
material topic
 
Business conduct and
 
ethics
GRI 301:
 
MATERIALS 2016
 
- Linked
 
to highly
 
material topic
 
Sustainable
 
infrastructure
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
Proximus Group I
Integrated annual report
 
2021
I
176
305-5
Reduction of GHG emissions
Environmental statements (E2: Emissions),
Environmental statements (E3: Abatement of Carbon
Emissions through our products and services),
 
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
proximus-2021-12-31p189i6
 
proximus-2021-12-31p189i8
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
177
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Act for a green and digital society,
 
Materiality and
stakeholder dialogue,
 
Act for a green and
 
digital society, Sustainability
governance,
 
GRI 306:
 
Waste
2020
103-3
Evaluation of the management approach
 
Overview of #inspire2022,
 
Act for a green and digital society, Environmental
statements (E4: Circularity),
 
306-3
Waste generated
 
Environmental statements (E4: Circularity),
 
P
306-4
Waste diverted from disposal
 
Environmental statements (E4: Circularity),
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Act for a green and digital society,
 
Materiality and
stakeholder dialogue,
 
Act for a green and digital society, Applying
high ethical standards, Sustainability
governance,
 
103-3
Evaluation of the management approach
 
Act for a green and digital society,
 
Environmental statements (E5: Supply chain),
 
GRI 308:
Supplier
Own
indicator
% of the total
 
spend covered by supplier CSR
scorecards - Proximus PLC
Environmental statements (E5: Supply chain),
 
environmental
assessment
2016
Own
indicator
Manifesto’s signed
 
Environmental statements (E5: Supply chain),
 
GRI 401:
 
EMPLOYMENT
 
2016 - Linked
 
to highly
 
material topic
 
Workplace wellness
GRI 103:
103-1
Explanation of the material topic and its
Getting our people and organization ready for the future,
Management
Boundaries
Materiality and stakeholder dialogue,
 
approach 2018
103-2
The management approach and its
Getting our people and organization ready for the future,
components
Sustainability governance,
103-3
Evaluation of the management approach
Getting our people and organization ready for the future,
Social Statement (S2: Well-being, satisfaction and
 
retention),
GRI 401:
401-1
New employee hires and employee
 
turnover
Social Statement (S2: Well-being, satisfaction and
 
retention),
Employment
2016
GRI 404:
 
TRAINING AND
 
EDUCATION 2016
 
- Linked to
 
highly material
 
topic Employee
 
upskilling,
 
reskilling
 
& employability
GRI 103:
103-1
Explanation of the material topic and its
Getting our people and organization ready for the future,
 
Management
Boundaries
Materiality and stakeholder dialogue,
 
approach 2018
103-2
The management approach and its
Getting our people and organization ready for the future,
components
Sustainability governance,
103-3
Evaluation of the management approach
Getting our people and organization ready for the future,
Social Statement (S3: Well-being, satisfaction and
 
retention),
GRI 404: Training
404-1
Average hours of training per year per
Overview of #inspire2022,
 
and education
employee
Social Statement (S3: Training and development),
 
2016
404-2
Programs for upgrading employee skills and
Getting our people and organization ready for the future,
transition assistance programs
404-3
Percentage of employees
 
receiving regular
Performance review,
 
development and career coaching are
performance and career development
closely linked
 
to our culture. Our
 
performance review process
reviews.
focuses on the strengths of employees to sharpen
 
them
further, through continuous coaching and feedback. We
 
are
convinced that this approach is beneficial for the employee
himself. Indeed, an employee who evolves and develops, will
perform all the better. It is also beneficial for
 
Proximus because
it helps it, in the end, to return to growth. At least 2 times a year
each active employee
 
receives a performance/career
 
review.
Own
(
 
) million invested in employee re- and up-
Overview of #inspire2022,
 
indicator
skilling in 2021
GRI 306:
 
WASTE 2020
 
- Linked
 
to highly
 
material topic
 
Circular economy
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
proximus-2021-12-31p190i6
 
proximus-2021-12-31p190i8
 
 
 
 
proximus-2021-12-31p190i10
 
proximus-2021-12-31p190i12
 
 
 
 
proximus-2021-12-31p190i14
 
proximus-2021-12-31p190i16
 
 
 
 
proximus-2021-12-31p190i18
 
proximus-2021-12-31p190i20
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Applying high ethical standards, Materiality and
stakeholder dialogue,
 
Applying high ethical standards,
Sustainability governance,
 
103-3
Evaluation of the management approach
 
Compliance,
 
Applying high ethical standards,
 
Environmental
statements (E5: Supply Chain),
 
GRI 412:
Human rights
assessment
2016
Own
indicator
Own
indicator
Number of on-site audits in
 
collaboration with
JAC
Number of cases investigated by the
Investigations Department for violation
of policies/code of conduct
Applying high ethical standards,
 
Environmental
statements (E5: Supply Chain),
 
Compliance,
 
P
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Operate like a
 
digital native company,
 
Act
for a green and digital society,
 
Materiality and stakeholder dialogue,
 
Operate like a
 
digital native company, Act for a
green and digital society, Sustainability
governance,
103-3
Evaluation of the management approach
 
Overview of #inspire 2022,
 
Act for a green and digital society,
 
GRI 413: Local
communities
Own
indicator
Percentage of tested
 
devices accessible
 
for at
least 5 disabilities
Overview of #inspire2022,
 
P
2016
Own
indicator
Own
indicator
Donated Wi-Fi codes
 
Social statements (S6: Digital inclusion),
 
Donated laptops
 
Social statements (S6: Digital inclusion),
 
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Applying high ethical standards,
 
Materiality and
stakeholder dialogue,
 
Applying high ethical standards,
Sustainability governance,
 
103-3
Evaluation of the management approach
 
Applying high ethical standards,
 
Environmental statements (E5: Supply chain),
 
GRI 414:
Supplier social
assessment
2016
Own
indicator
Number of on-site audits in
 
collaboration with
JAC
Environmental statements (E5: Supply chain),
 
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Grow profitably through
 
partners and ecosystems,
 
Materiality and
stakeholder dialogue,
 
Grow profitably through
 
partners and ecosystems,
 
Sustainability governance
103-3
Evaluation of the management approach
 
Overview of #inspire2022
Grow profitably through partners and
 
ecosystems
GRI 416:
Customer health
and safety 2016
Own
indicator
Own
indicator
Own
indicator
MyProximus and Pickx app ratings
 
in Google
Play and App Store
Satisfaction with our internet, TV and
 
mobile
products
Residential customers satisfaction
 
about the
price/quality ratio of their Proximus pack
Overview of #inspire2022,
 
Overview of #inspire2022
Grow profitably through partners and
 
ecosystems
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
proximus-2021-12-31p191i6
 
proximus-2021-12-31p191i8
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
179
GRI Standard
 
#
 
GRI disclosure
 
Page number(s), URL(s) and/or information
 
Omission
Ext.
audit
GRI 103:
Management
approach 2018
103-1
Explanation of the material topic and its
Boundaries
103-2
The management approach and its
components
Act for a green and digital society,
 
Materiality and stakeholder
 
dialogue
Act for a green and
 
digital society
 
Sustainability governance.
103-3
Evaluation of the management approach
 
Act for a green and digital society
GRI 418:
Customer privacy
2016
Own
indicator
Own
indicator
Own
indicator
Security alerts and cyberthreats responded to
 
Act for a green and
 
digital society
 
Social engineering attempts aimed at our employees
 
Act for a green and
 
digital society
Cyber Security Resilience Index
 
Act for a green and digital society
P
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus Group I
Integrated annual report
 
2021
I
178
Consolidated Financial
Statements
Prepared under International Financial Reporting Standards
 
for each of the two years ended 31 December 2021
 
and 2020.
Consolidated Financial Statements
182
Consolidated Balance Sheet
182
Consolidated Income Statement
184
Consolidated Statement of Comprehensive Income
185
Consolidated Cash Flow Statement
186
Consolidated Statement of Changes in Equity
188
Notes to the consolidated financial statements
189
Note 1. Corporate information
189
Note 2. Significant accounting policies
190
Note 3. Goodwill
209
Note 4. Intangible assets with finite useful life
212
Note 5. Property, Plant and Equipment
214
Note 6. Leases
216
Note 7. Contract cost
217
Note 8. Investments in subsidiaries, joint operations, joint
 
ventures and associates
219
Note 9. Equity investments measured at fair value
228
Note 10. Income taxes
229
Note 11. Assets and liabilities for pensions, other post-employment
 
benefits and termination benefits
231
Note 12. Other non-current assets
240
Note 13. Inventories
240
Note 14. Trade receivables and contract assets
241
Note 15. Other current assets
244
Note 16. Investments
244
Note 17. Cash and cash equivalents
244
Note 18. Equity
245
Note 19. Interest-bearing liabilities
248
Note 20. Provisions
254
Note 21. Other non-current payables
254
Note 22. Other current payables
255
Note 23. Net revenue
256
Note 24. Other operating income
258
Note 25. Costs of materials and services related to
 
revenue
258
Note 26. Workforce expenses
258
Note 27. Non-Workforce expenses
259
Note 28. Depreciation and amortization
260
Note 29. Net finance cost
261
Note 30. Earnings per share
261
Note 31. Dividends paid and proposed
263
Note 32. Additional disclosures on financial instruments
263
Note 33. Related party disclosures
277
Note 34. Rights, commitments and contingent liabilities
279
Note 35. Share-based Payment
283
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
Proximus Group I
Integrated annual report
 
2021
I
181
Note 36. Relationship with the auditors
286
Note 37. Segment reporting
1286
Note 38. Recent IFRS pronouncements
290
Note 39. Post balance sheet events
290
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
Consolidated Balance Sheet
 
(EUR million)
As at 31 December
ASSETS
Note
2020
2021
NON-CURRENT ASSETS
7,120
7,548
Goodwill
3
2,465
2,588
Intangible assets with finite useful life
4
1,047
1,113
Property, plant and equipment
5
3,169
3,311
Right-of-use assets
6
285
274
Lease receivable
7
6
Contract costs
7
108
110
Investments in associates and joint ventures
8
0
34
Deferred income tax assets
10
12
6
Equity investments measured at fair value
9
1
1
Pension assets
11
0
80
Other non-current assets
12
24
24
CURRENT ASSETS
1,660
1,685
Inventories
13
106
132
Trade receivables
14
868
879
Lease receivable
4
0
Contract assets
14
111
120
Current tax assets
10
119
166
Other current assets
15
139
140
Investments
16
3
0
Cash and cash equivalents
17
310
249
TOTAL ASSETS
8,779
9,233
LIABILITIES AND EQUITY
Note
EQUITY
18
3,026
2,978
Shareholders' equity attributable to the parent
18
2,903
2,978
Non-Controlling interests
18
123
0
NON-CURRENT LIABILITIES
3,639
3,779
Interest-bearing liabilities (1)
19
2,507
2,737
Lease liabilities
6
216
204
Liability for pensions, other post-employment benefits and termination benefits
 
11
559
447
Provisions
 
20
139
153
Deferred income tax liabilities
10
115
136
Other non-current payables (1)
21
102
102
CURRENT LIABILITIES
2,114
2,475
Interest-bearing liabilities
19
163
252
Lease liabilities
6
68
69
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
183
Liability for pensions, other post-employment benefits and termination benefits
 
11
86
62
Trade payables
1,213
1,515
Contract liabilities
22
157
135
Tax payables
10
11
11
Other current payables
22
416
432
TOTAL LIABILITIES AND EQUITY
8,779
9,233
(1) “Derivatives held for trading” were reclassified from “interest-bearing liabilities” to “non interest-bearing liabilities”. The reclass
amounted to 4 million in 2020 and 3 million in 2021.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
Consolidated Income Statement
 
As at 31 December
(EUR million)
Note
2020
2021
Net revenue
23
5,443
5,537
Other operating income
24
38
42
Total income
5,481
5,579
Costs of materials and services related to revenue
25
-1,901
-1,997
Workforce expenses
26
-1,128
-1,200
Non-workforce expenses
27
-530
-554
Total operating expenses before depreciation and amortization
-3,559
-3,751
Operating income before depreciation and amortization
1,922
1,828
Depreciation and amortization
28
-1,116
-1,183
Operating income
805
645
Finance income
8
4
Finance costs
-56
-58
Net finance costs
29
-48
-54
Share of loss on associates
-1
-10
Income before taxes
756
581
Tax expense
10
-174
-137
Net income
582
445
Attributable to:
18
Equity holders of the parent (Group share)
564
443
Non-controlling interests
18
1
Basic earnings per share (in EUR)
30
1.75
1.37
Diluted earnings per share (in EUR)
30
1.75
1.37
Weighted average nb of outstanding ordinary shares
30
322,752,015
322,751,990
Weighted average nb of outstanding ordinary shares for diluted earnings per share
30
322,755,758
322,751,990
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
185
Consolidated Statement of Comprehensive
Income
 
As at 31 December
(EUR million)
Note
2020
2021
Net income
582
445
Other comprehensive income:
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations
-22
15
Cash flow hedges:
Gain taken to equity
0
-13
Transfer to profit or loss for the period
-2
-2
Other
-1
0
Total before related tax effects
-24
1
Cash flow hedges:
Loss taken to equity
0
3
Income tax relating to items that may be reclassified
0
4
Total of items that may be reclassified to profit and loss - net of related tax effects
-24
4
Items that will not be reclassified to profit and loss
Remeasurement of net defined benefit obligations
11
-19
142
Total before related tax effects
-19
142
Related tax effects
Remeasurement of net defined benefit obligations
5
-35
Income tax relating to items that will not be reclassified
5
-35
Total of items that will not be reclassified to profit and loss, net of related tax
effects
-15
106
Total comprehensive income
543
555
Attributable to:
Equity holders of the parent
536
553
Non-controlling interests
8
3
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
Consolidated Cash Flow Statement
 
As at 31 December
(EUR million)
Note
2020
2021
Cash flow from operating activities
Net income
582
445
Adjustments for:
Depreciation and amortization
 
4/5/6
1,116
1,183
Impairment on current and non-current assets
3/4/5
0
2
Increase of provisions
20
3
9
Deferred tax expense/ (income)
10
14
-12
Loss from investments accounted for using the equity method
8.3
1
10
Fair value adjustments on financial instruments
29
0
1
Adjustments for finance cost (1)
2
-2
Gain on disposal of property, plant and equipment
24
-3
-1
Other non-cash movements
-1
0
Operating cash flow before working capital changes
1,715
1,634
Decrease / (increase) in inventories
27
-26
Decrease in trade receivables
123
11
Decrease/(increase) in other assets
5
-54
Decrease/ (increase) in trade payables
-68
144
Decrease in other liabilities
-50
-15
Decrease in net liability for pensions, other post-employment benefits and
termination benefits
11
-238
-74
Decrease in working capital, net of acquisitions and disposals of subsidiaries
-201
-13
Net cash flow provided by operating activities
1,515
1,621
Cash flow from investing activities
Cash paid for acquisitions of intangible assets and property, plant and equipment
 
4/5
-1,089
-1,137
Cash paid for investments in associates and joint ventures
8.4
0
-44
Cash paid for acquisition of consolidated companies, net of cash acquired
8.5
-2
-130
Net Cash received from sales of property, plant and equipment and other non-
current assets
11
6
Net cash used in investing activities
-1,081
-1,305
Cash flow before financing activities
434
316
Lease payments excluding interest paid
6
-82
-79
Free cash flow
352
237
Cash flow from financing activities other than lease payments
Dividends paid to shareholders
 
31
-485
-388
Dividends to and transactions with non controlling interests
18.2
-26
-217
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
187
Net Sale/ (purchase) of treasury shares
-5
2
Decrease of shareholders' equity
-1
-1
Cash paid for matured cash flow hedge instrument related to long term debt
-2
-13
Issuance of long term debt
19.3
150
730
Repayment of long term debt
 
19.3
0
-502
Issuance of short term debt
19.3
6
89
Cash flows used in financing activities other than lease payments
-363
-299
Exchange rate impact
-2
1
Net change of cash and cash equivalents
-13
-62
Cash and cash equivalents at 1 January
323
310
Cash and cash equivalents at the end of the period
17
310
249
(1) Net cash flow from operating activities includes the following cash movements
 
:
Interest paid
-42
-46
Interest received
0
1
Income taxes paid
 
-155
-198
(2) Free cash flow: cash flow before financing activities and after lease payments
(1) The recycling of gains and losses on interest rate swaps from OCI to P&L is reported as non cash movement
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
Consolidated Statement of Changes in Equity
 
(EUR million)
Issued
capital
Treasury
shares
Restric'd
reserve
Equity
instruments and
hedge reserve
Other
remeasur-
ement
reserve
Foreign
currency
translation
Stock
Compensat
ion
Retained
Earnings
Share'rs'
Equity
Non-control.
interests
Total
Equity
Balance as at 1 January 2020
1,000
-421
100
6
-194
5
4
2,356
2,856
142
2,998
Total comprehensive income and expense
0
0
0
-2
-14
-13
0
564
536
8
543
Dividends to shareholders (relating to 2019)
0
0
0
0
0
0
0
-323
-323
0
-323
Interim dividends to shareholders (relating to 2020)
0
0
0
0
0
0
0
-161
-161
0
-161
Dividends of subsidiaries to non-controlling interests
0
0
0
0
0
0
0
0
0
-26
-26
Treasury shares
Net sale of treasury shares
0
-3
0
0
0
0
0
-2
-5
0
-5
Total transactions with equity holders
0
-3
0
0
0
0
0
-486
-489
-26
-515
Balance as at 31 December 2020
1,000
-423
100
4
-208
-8
3
2,434
2,903
123
3,026
Total comprehensive income
0
0
0
-11
106
14
0
443
553
3
555
Dividends to shareholders (relating to 2020)
0
0
0
0
0
0
0
-226
-226
0
-226
Interim dividends to shareholders (relating to 2021)
0
0
0
0
0
0
0
-161
-161
0
-161
Acquisition of Non-Controlling interests
0
0
0
0
0
0
0
-92
-92
-126
-218
Treasury shares
Net purchase of treasury shares
0
1
0
0
0
0
0
1
2
0
2
Stock options
Stock forfeited
 
0
0
0
0
0
0
-3
3
0
0
0
Total transactions with equity holders
0
1
0
0
0
0
-3
-475
-477
-126
-603
Balance as at 31 December 2021
1,000
-422
100
-7
-102
7
0
2,403
2,978
0
2,978
 
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Integrated annual report
 
2021
I
189
Notes to the consolidated financial statements
Note 1. Corporate information
The consolidated financial statements at 31 December
 
2021 were authorized for issue by the Board
 
of Directors on 17th February
2022. They comprise the financial statements of
Proximus SA
, its subsidiaries, as well as the Group’s interest in
 
associates and joint
ventures accounted for under the equity method and joint
 
operations (hereafter “the Group”).
 
Proximus SA
 
is a “
Limited Liability Company of Public Law”
 
registered in
Belgium
.
The transformation of Proximus SA from
“Autonomous State Company” into a “Limited Liability Company of Public Law” was implemented by the Royal Decree of 16 December
1994
.
Proximus SA
 
headquarters are located at
Boulevard du Roi Albert II, 27 1030
Brussels
,
Belgium
. Proximus’ shares are listed on
Euronext Brussels.
Proximus Group (Euronext Brussels: PROX) is a provider of digital services and communication solutions operating in the Belgian and
international markets.
 
Delivering communication and entertainment
 
experiences for residential consumers and enabling digital
transformation for enterprises, we open up a world
 
of digital opportunities, so people live better and work
 
smarter. Thanks to advanced
interconnected fixed and mobile networks, the Group provides
 
access anywhere and anytime to digital services and
 
data, as well as to a
broad offering of multimedia content. The Group is a pioneer
 
in ICT innovation, with integrated solutions based on
 
IoT, Data analytics,
cloud and security. The Group has the ambition to become
 
the reference operator in Europe through next generation
 
networks, a truly
digital mindset and a spirit of openness towards partnerships
 
and ecosystems, while contributing to a safe, sustainable,
 
inclusive and
prosperous digital Belgium. In Belgium, the core products
 
and services of the Group are offered under
 
the Proximus and Scarlet brands.
The Group is also active in Luxembourg as, under
 
the brand names Tango and Telindus Luxembourg,
 
and in the Netherlands through
Telindus Netherlands. The Group’s international carrier activities
 
are managed by BICS, a leading international communications
 
enabler,
one of the key global voice carriers and the leading
 
provider of mobile data services worldwide. With
 
TeleSign, the Group also
encompasses a fast-growing leader in digital identity
 
services, serving the world’s largest internet brands,
 
digital champions and cloud
native businesses.
The number of employees of the Group (in full time
 
equivalents) amounted to 11,423 at 31 December
 
2020 and 11,532 at 31
December 2021. For the year 2020, the average headcount
 
of the Group was 161 management personnel
 
10,667employees and 716
workers; for the year 2021 the average headcount of
 
the Group is 169 management personnel 11,276 employees
 
and no workers. In
the “collective bargaining agreement 19/20” it was agreed
 
with the social partners that all personnel members
 
with a worker contract
would receive an employee contract.
 
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Note 2. Significant accounting policies
 
Basis of preparation
The accompanying consolidated financial statements as
 
of 31 December 2021 and for the year then
 
ended have been prepared in
accordance with International Financial Reporting Standards
 
(“IFRS”) as adopted for use in the European
 
Union. The Group did not early
adopt any IASB standards or interpretations.
Changes in accounting policies
The Group does not anticipate the change in the application
 
of standards and interpretations. The accounting policies
 
applied are
consistent with those of the previous financial years
 
except that the Group applied the new or revised IFRS
 
standards and
interpretations as adopted by the European Union
 
that became mandatory on 1 January 2021
 
and that are detailed as follows:
New standards and Amendments to standards:
Amendments to IFRS 9, IAS 39,
 
IFRS 7, IFRS 4 and IFRS 16- Interest Rate Benchmark
 
Reform Phase 2
Amendments to IFRS 16 Leases: Covid-19-Related
 
Rent Concessions beyond 30 June 2021 (applicable
 
for annual
periods beginning on or after 1 April 2021)
The adoption of these new and amended standards
 
has no impact on the financial statements of the Group.
 
Changes in operating segments
The Group’s
 
operating segments are the Group’s components whose
 
operating results are regularly reviewed by its
 
Executive
Committee (EXCO), the Group’s chief operating decision
 
makers
 
(CODM), to make decisions about resources to
 
be allocated to the
segment and assess
 
the performance.
Until 2020 this review was based on a customer-oriented
 
organization structured around: the Consumer Business
 
Unit (CBU), the
Enterprise Business Unit (EBU), Carrier & Wholesale Services
 
(CWS) and International Carrier Services (BICS).
In 2021, the former ICS segment, which included BICS
 
and TeleSign activities, has been split into two separate segments
 
(BICS and
TeleSign), to reflect their individual management and future
 
trajectories. Also, the way the business is monitored by
 
the CODM has
changed. Accordingly,
 
the internal profitability reports, that are regularly
 
reviewed by the CODM to allocate resources to segments
 
and
assess performance,
 
were organised based on the nature of products
 
and services provided and geographical area. As a
 
result, the
Group operating segments were redefined as follow:
Domestic:
segment providing communication and ICT
 
services to residential, business and telecom wholesale
 
markets in
Belgium / BeNeLux. This operating segment regroups a.o.
 
the former business units CBU, EBU and CWS.
International Carrier Services (BICS)
is responsible for international carrier activities on
 
the international communications
market.
TeleSign:
is specialized in international delivery authentication
 
and digital identity services to the world’s largest
 
internet
brands, digital champions and cloud native businesses.
As there was a change in reporting segments
 
in 2021, corresponding amounts for 2020 were restated.
 
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Alternative Performance Measures
The Group uses so called “Alternative Performance Measures”
 
(“APM”) in the financial statements and notes.
 
An APM is a financial
measure of historical or future financial performance,
 
financial position or cash flows, other than a financial
 
measure defined in the
applicable financial reporting framework (IFRS). A glossary
 
describing these is included in the section “Management
 
Discussion” of the
Consolidated Management Report. They are consistently used
 
over time and when a change is needed, comparable
 
information is
restated.
Basis of consolidation
Note 8 lists the Group’s subsidiaries, joint operations,
 
joint ventures and associates. Subsidiaries are those
 
entities controlled by the
Group. Control exists when the Group has the power
 
over the investee, is exposed or has rights to
 
variable returns from its involvement
with the investee and has the ability to use its power
 
to affect its returns.
Consolidation of a subsidiary begins from the date on which
 
the Group obtains control over the subsidiary and
 
ceases when the Group
loses control over the subsidiary. Intercompany balances
 
and transactions and resulting unrealized profits or
 
losses between Group
companies are eliminated in full in consolidation. When
 
subsidiaries accounting policies are not aligned
 
with the Group ones, the Group
performs the necessary adjustments to ensure that the consolidated
 
financial statements are prepared using uniform accounting
policies.
Changes in Group’s ownership interests in subsidiaries that
 
do not result in the Group losing control over
 
the subsidiaries are accounted
for as equity transaction. Any difference between the amount
 
by which non-controlling interests are adjusted
 
and the fair value of the
consideration paid or received is recognized directly
 
in equity and attributed to owners of the Company.
 
Transaction costs associated
with the purchase or sale of a non- controlling interest
 
in a subsidiary,
 
when control is maintained,
 
is recognized as a deduction from
equity only if they are incremental costs directly attributable
 
to the equity transaction.
Joint operations are joint arrangements
 
whereby the parties that have joint control of
 
the arrangements
 
have rights to the assets, and
obligations for the liabilities, relating to the arrangements. Arrangements
 
of which the design and purpose is such that the
 
parties are
substantially the only source of cash flows contributing
 
to the continuity of the operations of the
 
arrangement are recognized as joint
operations.
 
When the Group undertakes its activities under joint operations,
 
the Group recognizes based on its ownership interest,
 
net off
intercompany eliminations its share in the assets and liabilities
 
and its share in the costs and revenue. Revenue
 
is only recognized when
the joint operation sells its output to third parties.
Joint ventures are joint arrangements whereby the parties
 
that have joint control of the arrangements
 
have rights to the net assets of
the joint arrangements. Joint control is the contractually
 
agreed sharing of control over an arrangement,
 
which exists only when
decisions about relevant activities require unanimous consent
 
of the parties sharing control. Joint ventures are incorporated
 
in these
consolidated financial statements using the equity method.
Associated companies are companies in which the Group
 
has a significant influence, defined as an investee
 
in which the group has the
power to participate in its financial and operating policy
 
decisions (but not to control the investee).
 
These investments are also
accounted for using the equity method.
 
Under the equity method, the investments held
 
in associates or joint ventures are initially recognized
 
at cost and the carrying amount is
subsequently adjusted to recognize the Group’s share
 
in the profit or losses or other comprehensive
 
income of the associate or joint
venture as from the date of acquisition. These investments
 
and the equity share of results for the period
 
are shown in the balance sheet
and income statement as respectively, investments in associates
 
and joint ventures, and share in the result of
 
the associates and joint
ventures.
 
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Business Combinations
Acquisitions of businesses are accounted using the
 
acquisition method. The consideration transferred
 
is measured at fair value, which is
calculated as the sum of the acquisition-date fair values
 
of the assets transferred, the liabilities incurred
 
to the former owners of the
acquiree, and the equity interests issued in exchange for
 
control of the acquiree. Acquisition
 
related costs are accounted for as expenses
in the periods in which the costs are incurred.
At acquisition date, the identifiable assets acquired, and
 
the liabilities assumed are recognized at their fair value
 
at that date. This
includes fair valuing the unrecognized assets and liabilities
 
in the balance sheet of the acquiree, which concerns
 
mainly customer bases
and trade names.
Non-controlling interests are initially measured at the proportionate
 
share of the recognized amounts of the acquiree’ s
 
identifiable net
assets.
 
Judgments and estimates
 
In preparing the consolidated financial statements, management
 
is required to make judgments and estimates that
 
affect amounts
included in the financial statements.
 
Judgments and estimates that are made at each reporting
 
date reflect conditions that existed at those
 
dates (e.g. market prices, interest
rates and foreign exchange rates, as well as existing accounting
 
rules and guidance in domains where there is
 
limited authoritative
literature). Although these estimates are based on management’s
 
best knowledge of current events and actions
 
that the Group may
undertake, actual results may differ from those estimates.
 
The group evaluated
 
the direct and indirect impact of climate change
 
on its business risks, its operations and its financial reporting
 
and
has currently not identified material judgments and
 
estimates affected by climate change.
 
Critical judgments in applying the Group accounting policies
The following are the critical judgments, apart from
 
those involving estimations (which are presented
 
separately below), that the
directors have made in the process of applying the
 
Group’s accounting policies and that have the most
 
significant effect on the amounts
recognized in financial statements.
 
Revenue recognition under IFRS 15
Under IFRS 15, the transaction price is allocated to
 
the identified performance obligations in the contract
 
based on their relative
standalone selling prices. Judgment is required in determining
 
the stand-alone price and the transaction price considering
 
the contract
duration.
Determination of the contract duration
To define the duration of its contracts the Group considered
 
the contractual period in which the parties to
 
the contract have present
enforceable rights and obligations. A contract has a duration
 
when it includes a substantive termination
 
payment. The duration runs until
the termination payment is not due anymore. If there
 
is no substantive termination payment clause,
 
the contract has no duration (i.e.
open-ended contracts).
 
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Determination of the stand-alone selling price
In situations where the stand-alone selling price is not directly
 
observable, the Group assesses it using all information
 
(including market
conditions, Proximus-specific factors and information about
 
the customer or class of customer) that is reasonably
 
available to it. This
situation occurs mainly in the context of combined offers
 
with subsidized devices, for which a cost-plus
 
approach method is applied to
one of the components.
Discounts granted because a customer entered into a
 
contract, are allocated to all performance obligations
 
triggering the granting of
the discount.
Identification of performance obligations
Identifying the performance obligations requires judgment and
 
a thorough understanding of the contract promises
 
and how they
interact with each other
Leases under IFRS 16
Determining whether an arrangement contains a lease
IFRS 16 defines a lease as a contract, or part of a
 
contract, that conveys the right to control use of
 
an identified asset for a period of time
in exchange for consideration. For some contracts, significant
 
judgment is required to assess whether a contract
 
conveys the right to
control the use of an asset or is instead a contract for
 
a service that is provided using that asset. When
 
a contract does not qualify as a
lease under IFRS 16, any amounts prepaid under
 
such contracts are treated as prepaid expense (service),
 
which is the case for certain
fibre-related capacity acquired by the Group.
Lease term
When the Group acts
 
as lessee the lease term consists of the non-cancellable
 
period of a lease, together with periods covered by
options to extend the lease if the Group is reasonably
 
certain to exercise these options, and periods covered
 
by options
 
to terminate the
lease if the Group is reasonably certain not to exercise
 
these options.
 
Significant judgment is required in assessing whether
 
these options will be exercised or not, considering
 
all facts and circumstances that
create an economic incentive to exercise an extension or
 
termination option. The assessment is reviewed if a
 
significant event or a
significant change in circumstances occurs which affects
 
this assessment.
 
Functional currency of the Group entities
The individual financial statements of each subsidiary are
 
prepared in the currency of the primary economic
 
environment in which the
entity operates. When the factors set out by IAS 21 to determine
 
the functional currency are mixed and the functional currency
 
is not
obvious, management judgment is used to determine
 
which functional currency most faithfully represents
 
the economic effects of its
underlying transactions, events and conditions. The functional
 
currency of the Proximus Group entities is
 
EUR except for the wholly
owned US subsidiary TeleSign, for which US Dollar is assessed
 
by management to be the functional currency.
Tax proceedings
Excess profit ruling
On 11 January 2016, the European Commission announced
 
its decision to consider Belgian tax rulings granted
 
to multinationals with
regard to “Excess Profit” as illegal state aid (hereafter
 
“Decision”).
 
 
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BICS applied such tax ruling for the period 2010-2014
 
and paid the deemed aid recovery assessments.
 
Furthermore, both BICS and the
Belgian State filed an appeal against the decision of
 
the European Commission before the European Court.
 
The EU General Court ruled
in its decision of 14 February 2019 in favour of
 
the Belgian State against the European Commission
 
based on the argument that there is
no “state aid scheme”. The European Commission
 
filed an appeal against the aforementioned decision
 
with the Court of Justice of the
EU (CJEU) on 24 April 2019. In addition, on 16
 
September 2019, the European Commission opened
 
a separate in-depth investigation
into 39 individual excess profit rulings, including the excess
 
profit rulings obtained by BICS. The individual
 
opening decisions were
eventually published on 31 August 2020. BICS submitted
 
its comments to the Commission on 29 September
 
2020. On 16 September
2021, the CJEU held that the Decision correctly found
 
that the excess profit ruling system constitutes an
 
“aid scheme” and referred the
case back to the General Court, for a decision on whether
 
or not the EPR “scheme” also amounted to illegal State
 
aid, as no decision has
yet been taken in this respect (neither by the EU
 
General Court or the CJEU). Management assesses
 
that the position as recognized in
the financial statements still reflects the best estimate of
 
the probable outcome.
 
Indian case
BICS received withholding tax assessments from the
 
Indian tax authorities in relation to payments made by an
 
Indian tax resident
customer to BICS in the period 1 April 2007
 
to 31 March 2012. BICS filed appeals against the
 
assessments for the period 1 April 2007 to
31 March 2012 with the competent Indian Courts
 
opposing the view of the Indian tax authorities that
 
Indian withholding taxes are due on
the payments. Furthermore, BICS is opposing the assessments
 
in relation to the periods from 1 April 2008 to 31
 
March 2011 on
procedural grounds. The amount of the contingent liability
 
including late payment interest should not exceed EUR
 
33 million. BICS has
not paid the assessed amounts and has not recorded
 
a tax provision. Management assesses that the position as
 
recognized in the
financial statements reflects the best estimate of the probable
 
outcome.
Key sources of estimation uncertainty
Claims and contingent liabilities (see note 34)
Related to claims and contingencies, judgment is necessary
 
in assessing the existence of an obligation
 
resulting from a past event, in
assessing the probability of an economic outflow, and
 
in quantifying the probable outflow of economic
 
resources. This judgment is
reviewed when new information becomes available
 
and with support of outside experts advises.
 
Recoverable amount of cash generating units including goodwill
In the context of the impairment test, the key
 
assumptions that are used for estimating the recoverable
 
amounts of cash generating
units to which goodwill is allocated are discussed
 
in note 3 (Goodwill).
Actuarial assumptions related to the measurement of employee benefit obligations and plan assets
The Group holds several employee benefit plans
 
such as pension plans, other post-employment
 
plans and termination plans. In the
context of the determination of the obligation, the
 
plan asset and the net periodic cost, the key
 
assumptions that are used are discussed
in note 11 (Assets and liabilities for pensions, other
 
post-employment benefits and termination benefits).
Estimation of useful life
Items of Property, Plant and Equipment are depreciated
 
using a straight-line method to allocate their depreciable
 
amount on a
systematic basis over their useful life. The depreciable
 
amount is the cost less its estimated residual value
Useful life of an asset is estimated on a realistic
 
basis based on the experience of the Group with
 
similar assets and reviewed at least
annually. The effect of changes in useful life are recognized
 
prospectively.
 
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Foreign currency translation
Foreign currency transactions are recognized in functional
 
currency on initial recognition, at the foreign
 
exchange rate prevailing at the
date of the transaction. Monetary assets and liabilities denominated
 
in foreign currencies are translated into the functional
 
currency of
the entity at the balance sheet date using the exchange
 
rate at that date. Non-monetary assets and liabilities denominated
 
in foreign
currencies are not remeasured. Net exchange differences on
 
the translation of monetary assets and liabilities
 
are classified in “non-
workforce expenses” in the income statement in the period
 
in which they arise.
Foreign operations
The Group determines the functional currency (i.e.
 
the currency of the primary economic environment
 
in which the subsidiary operators)
of each individual subsidiary included in its consolidated figures.
 
An operation that is integral to the parent (Proximus
 
SA) i.e. carries on
business as if it were an extension of the parent’s operation,
 
has Euro as functional currency
 
Results and financial position of entities with a functional
 
currency other than Euro are included in the Proximus
 
Group accounts as
follows:
Assets and liabilities (including comparatives) are translated
 
at the closing rate at the reporting date.
Income and expenses are translated at exchange
 
rates at the date of the transaction.
Non-controlling interests are translated at exchange
 
rates at the date of the transaction.
All resulting exchange differences are recognized in other
 
comprehensive income.
 
On disposal of such entity, the
deferred cumulative amount recognized in other comprehensive
 
income relating to that foreign operation is recognized
in profit or loss.
Goodwill
Goodwill represents the excess of the sum of the consideration
 
transferred, the amount of non-controlling interests,
 
if any, and the fair
value of the previously held interest, if any, over the
 
net fair value of identifiable assets, liabilities and
 
contingent liabilities acquired in
business combination. When the Group obtains control,
 
the previously held interest in the acquiree, if
 
any, is re-measured to fair value
through profit or loss.
Changes in a contingent consideration included in the consideration
 
transferred are adjusted against goodwill when they
 
arise during the
provisional purchase price allocation period and when they
 
relate to facts and circumstances existing at acquisition
 
date. In other cases,
depending if the contingent consideration is classified
 
as equity or not, changes are taken into equity
 
or in profit or loss.
Acquisition costs are expensed, and non-controlling interests
 
are measured at acquisition date at their
 
proportionate interest in the
identifiable assets and liabilities of the acquiree, on a
 
transaction-by-transaction basis.
Goodwill is stated at cost and not amortized but subject
 
to an annual impairment test at the level of the
 
cash generating unit
 
to which it
relates and whenever there is an indicator that the cash generating
 
unit to which the goodwill has been allocated may
 
be impaired.
 
The
Group monitors the goodwill at the level of the operating
 
segments as this reflects the way the Group
 
manages its operations.
Intangible assets with finite useful life
Intangible assets consist primarily of the Global System
 
for Mobile communication (“GSM”) license, the
 
Universal Mobile
 
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Telecommunication System (“UMTS”) license, 4G licenses,
 
customer bases, patents and trade names acquired
 
in business combinations,
internally and externally developed software and other
 
intangible assets such as football rights and broadcasting
 
rights.
Intangible assets with finite life acquired separately
 
are measured on initial recognition at cost. Only
 
the fixed portion of the
consideration is capitalized. The cost of intangible assets
 
acquired in a business combination is their fair value at
 
the date of acquisition.
The Group capitalizes certain costs incurred in connection
 
with developing or purchasing software for internal
 
use when they are
identifiable, when the Group controls the asset and
 
when future economic benefits from the asset are
 
probable.
 
The Group enters into SaaS arrangement and pays
 
a fee in exchange for a right to receive access
 
to the supplier’s application software
for a specified term. The Group recognizes a software asset
 
in a cloud-computing arrangement at the contract
 
commencement date if it
obtains control of software at that date. This is when,
 
at the inception of the arrangement:
The Group has the contractual right to take possession
 
of the software during the hosting period
 
without significant
penalty, and
 
It is feasible for the Group to run the software on
 
its own hardware or contract with another party
 
unrelated to the
supplier to host the software
The Groups’ accounting policy is to capitalize broadcasting
 
rights of life sport seasons as intangible asset
 
at the start of each new season
as this is the moment at which the content is identifiable.
 
Future payment commitments related to future
 
seasons are disclosed as
contractual commitments in the notes (see note 34).
For contracts with other TV channels, the Group capitalizes
 
the costs for the total contract duration, as
 
the content is deemed to be
sufficiently identifiable (the major part of the content
 
is already produced) for the non-cancellable duration of
 
the contract (generally 18
months-3 years).
The company continues to monitor the related accounting
 
rules and guidance in this domain where there
 
is limited authoritative
literature.
Intangible assets with finite useful life are stated at
 
cost less accumulated amortization and impairment
 
losses. The residual value of
such intangible assets is assumed to be zero.
 
Customer bases and trade names acquired in business combinations
 
are straight-line amortized over their estimated useful
 
life (3 to 20
years). Except if the useful life is based on the contractual
 
limits or reflecting management intention, it is
 
set consistently with the
expected cash flows used in the valuation model for such
 
an asset. It is defined in such a way that the
 
expected cumulated discounted
cash flows generated by the concerned asset over
 
its useful life represent approximately 90% of
 
the total cumulated discounted cash
flows expected from the asset.
GSM, UMTS and 4 G licenses, other intangible assets
 
and internally generated assets with finite useful
 
life are amortized on a straight-
line basis over their estimated useful life. Amortization
 
commences when the intangible asset is ready for
 
its intended use. The licenses’
useful lives are fixed by Royal Decree and they range from
 
5 to 20 years.
The useful lives are assigned as follows:
Useful life (years)
GSM, UMTS, 4G and other network licenses
GSM (2G)
 
Over the license period
 
5 to 6
 
 
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UMTS (3G)
LTE (4G)
800 Mhz (4G)
16
 
15
20
Customer bases, trade names, patents
 
and software acquired in a business combination
3 to 20
Software
Broadcasting rights for sport seasons
Rights to use, and other broadcasting rights
5
 
Over the duration of the season
Over the contract period
 
(usually from 2 to 5)
The amortization period and the amortization method for
 
an intangible asset with finite useful life are
 
reviewed at least at each financial
year-end. Changes in the expected useful life or the
 
expected pattern of consumption of future
 
economic benefits embodied in the
asset are accounted for by changing the amortization
 
period or method, as appropriate, and treated
 
as changes in accounting estimates.
Property, plant and equipment
Property, plant and equipment including assets rented
 
to third parties through operating leases, are
 
presented according to their nature
and are stated at cost less accumulated depreciation
 
and accumulated impairment losses. The cost of
 
additions and substantial
improvements to property, plant and equipment is
 
capitalized. The cost of maintenance and repairs of property,
 
plant and equipment is
charged to operating expenses when it does not extend
 
the life of the asset or does not significantly increase
 
its capacity to generate
revenue. The cost of an item of property, plant
 
and equipment includes the costs of its dismantlement,
 
removal or restoration, the
obligation for which the Group incurs as a consequence
 
of installing the item.
An item of property, plant and equipment is derecognized
 
upon disposal or when no future economic benefits
 
are expected from its use
or disposal. Any gain or loss arising on de-recognition
 
of the asset (calculated as the difference between
 
the net disposal proceeds and
the carrying amount of the asset) is included in profit
 
or loss in the year the asset is derecognized.
Depreciation of an asset begins when the asset
 
is ready for its intended use. Depreciation is calculated
 
using the straight-line method
over the estimated useful life of the asset.
 
The useful lives are assigned as follows:
Useful life (years)
 
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Land and buildings
Land
Buildings and building equipment
Facilities in buildings
Leasehold improvement and advertising equipment
Indefinite
22 to 33
3 to 10
3 to 10
Technical and network equipment
Cables and ducts
Switches
Transmission
Radio Access Network
Mobile sites and site facility equipment
Equipment installed at client premises
Data and other network equipment
15 to 20
8 to 10
6 to 8
6 to 7
5 to 10
2 to 8
2 to 15
Furniture and vehicles
Furniture and office equipment
Vehicles
3 to 10
5 to 10
The asset’s residual values, useful life and depreciation
 
methods are reviewed, and adjusted if appropriate,
 
at each financial
 
year-end.
Costs of material, workforce and non-workforce expenses
 
are shown net of work performed by the enterprise
 
that is capitalized in
respect of the construction of property, plant and
 
equipment.
Contract costs
Contract costs eligible for capitalization as incremental
 
costs of obtaining a contract comprise commission
 
paid to dealers relating to
postpaid contracts. Contract costs are recognized as non-current
 
assets as the economic benefits from these assets
 
are expected to be
received in the period longer than twelve months.
 
Contract costs relating to postpaid contracts are deferred
 
on a systematic basis that is consistent with
 
the transfer to the customer of
the services, being the time, at which related revenue
 
is recognized. The group adopted a portfolio approach
 
for the contract costs.
 
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Contract costs relating to the residential market are deferred
 
over three years and for the professional market five
 
years.
All other commissions are expensed when incurred.
Impairment of non-financial assets
The Group reviews the carrying value of its non-financial
 
assets at each balance sheet date for any indication
 
of impairment.
The Group compares at least once a year the carrying
 
value with the estimated recoverable amount of
 
intangible assets under
construction and cash generating units including goodwill.
 
The Group performs this annual impairment
 
test during the fourth quarter of
each year.
An impairment loss is recognized when the carrying value
 
of the asset or cash generating unit exceeds the
 
estimated recoverable
amount, being the higher of the assets or cash generating
 
unit’s fair value less costs
 
to sell and its value in use for the Group.
In assessing value in use, the estimated future cash
 
flows are discounted to their present value
 
using a pre-tax discount rate that
reflects current market assessments of the time value
 
of money and the risks specific to the asset or
 
cash generating unit.
Deferred taxation
Deferred taxation is provided for all temporary differences
 
between the carrying amount of assets and liabilities in
 
the consolidated
balance sheet and their respective taxation bases.
 
Deferred tax assets associated to deductible temporary
 
differences and unused tax losses carried forward
 
are recognized to the extent
that it is probable that taxable profit will be available
 
against which the deductible temporary difference
 
or the unused tax losses can be
utilized.
The carrying amount of deferred income tax assets
 
is reviewed at each balance sheet date and
 
reduced to the extent that it is no longer
probable that sufficient taxable profit will be available
 
to allow all or part of the deferred income tax asset
 
to be utilized. Unrecognized
deferred income tax assets are reassessed at each balance
 
sheet date and are recognized to the extent that it
 
has become probable
that future taxable profit will allow the deferred tax
 
asset to be recovered.
Deferred tax assets and liabilities are measured at the
 
tax rates that are expected to apply to the
 
period when the asset will be realized,
or the liability is settled, based on tax rates (and
 
tax laws) that have been enacted or substantively
 
enacted at the balance sheet date.
 
Changes in deferred tax assets and liabilities are
 
recognized in profit or loss except to the extent that
 
they relate to items recognized
directly in equity, in which case the tax effect is also
 
recognized directly in equity.
Pensions, other post-employment benefits and termination benefits
The Group operates several defined benefit pension plans
 
to which the contributions are made through separately
 
managed funds. The
Group also agreed to provide additional post-employment
 
benefits to certain employees. The cost of providing
 
benefits under the plans
is determined separately for each plan using the projected
 
credit unit actuarial valuation method.
Actuarial gains and losses,
 
the return on plan assets, excluding amounts included
 
in net interest on the net defined benefit liability
(asset) and any change in the effect of asset ceiling–
 
if applicable, are recognized through Other Comprehensive
 
Income. Any past
service cost and gain or loss on settlement is
 
recognized in profit and loss when they
 
occur.
 
 
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The Group classifies the periodic cost in operating and
 
financing activities for their respective components.
 
The Group also operates several defined contribution plans.
 
For plans with guaranteed minimum return management
 
applied the
‘Projected Unit Credit ‘method.
The discount rate used to calculate the present
 
value of the defined benefit obligation of the plans
 
is determined by reference to the
yield on high-quality corporate bonds (at the end
 
of the reporting period) of currency and term consistent
 
with the liabilities.
 
The net
defined benefit liability is defined as the present value
 
of the defined benefit obligation less the fair value
 
of the plan assets (if any).
The Group operates several restructuring programs
 
that involve termination benefits or other forms of
 
additional compensation.
Voluntary termination benefits to encourage employees to
 
leave service are recognized when employees accept
 
the offer of those
benefits. Involuntary termination benefits are recognized when
 
the Group has communicated its plan of termination
 
to the affected
employees and the plan meets specified criteria. Related
 
provisions are recognized when valid expectations
 
are raised in those affected
by the plans and implementation is started i.e. an
 
agreement is reached with the unions on the features
 
of the plans and those features
are communicated to those affected.
Benefits conditional on future service being provided
 
do not qualify as termination benefits but as long-term
 
employee benefits. The
liability for those benefits is recognized over the period
 
of the future service.
 
For certain participants of the restructuring plans, benefits
 
are paid until the earliest retirement date. Assumptions used
 
to make a
reliable estimate of the ultimate cost to the Group are
 
pension age, the discount rate and future price inflation.
 
Assumptions are
reviewed at the end of the reporting period. The actuarial
 
gains and losses on the liabilities for restructuring
 
programs are recognized in
profit or loss when incurred.
 
Short-term and long-term employee benefits
The cost of all short-term and long-term employee
 
benefits, such as salaries, employee entitlements
 
to leave pay, bonuses, medical aid
and other contributions, are recognized during the period
 
in which the employee renders the related service.
 
The Group recognizes
those costs only when it has a present legal or constructive
 
obligation to make such payment and a reliable
 
estimate of the liability can
be made.
Financial instruments
Classification
 
The Group classifies its financial assets in the following
 
categories:
At fair value through profit and loss (“FVTPL”); or
At fair value through other comprehensive income
 
(“FVTOCI”); or
At amortized cost.
 
The Group classifies its financial liabilities in the following
 
categories:
At fair value through profit and loss (“FVTPL”); or
At amortized cost.
 
Financial assets
 
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The Group determines the classification of the financial
 
assets at initial recognition. The classification is driven by
 
the Group’s business
model for managing the financial assets (‘hold to
 
collect’, ‘hold to collect and sell’ and ‘other’) and
 
their contractual cash flow
characteristics (Solely payments of Principal and Interest
 
“SPPI” test i.e. whether contractual cash flows
 
are solely payments of principal
and interest on the principal amount outstanding).
 
If a non-equity financial asset fails the SPPI test, the
 
Group classifies it at Fair Value Through Profit or
 
Loss (FVTPL). If it passes the SPPI
test, it will either be classified at amortized cost if
 
the ‘hold to collect’ business model test is met, or
 
at Fair Value Through Other
Comprehensive Income (FVTOCI) if the ‘hold to collect
 
and sell’ business model test is met.
For equity financial assets other than interests
 
in subsidiaries, associates and joint ventures, the Group
 
makes at initial recognition an
irrevocable election (on an instrument-by-instrument
 
basis) to designate them as at FVTOCI or FVTPL.
The equity investments held for trading are always
 
designated at FVTPL.
Financial liabilities
Financial liabilities are measured at amortized cost, unless
 
they are required to be measured at FVTPL
 
(such as instruments held for
trading or derivatives) or the Group has opted to measure
 
them at FVTPL.
 
Measurement
Financial assets at FVTOCI
 
Investments in equity instruments designated at FVTOCI
 
are initially recognized at fair value plus directly
 
attributable transaction costs.
Subsequently they are measured at fair value, with gains
 
and losses arising from changes in fair value
 
recognized in other
comprehensive income, with no subsequent recycling to profit
 
or loss.
Accumulated remeasurements on disposal or settlements
 
of equity instruments carried at FVOCI are
 
reclassified from OCI to retained
earnings.
The Group holds no other investment measured at FVTOCI.
Dividend income is recognized in profit or loss.
 
Financial assets and liabilities at amortized cost
Financial assets, other than trade receivables, and liabilities
 
at amortized cost are initially recognized at
 
fair value plus or minus directly
attributable transaction costs. Trade receivables are measured
 
at their transaction price if the trade receivables do
 
not contain a
significant financing component.
These financial instruments are subsequently carried
 
at amortized cost using the effective interest
 
rate method less any impairment, if
applicable.
Financial assets and liabilities at FVTPL
 
Financial assets and liabilities carried at FVTPL are initially
 
recorded at fair value and transaction costs are expensed.
 
Realized and
 
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unrealized gains and losses arising from changes
 
in the fair value of the financial assets and liabilities
 
are included in the consolidated net
(loss) income in the period in which they arise. The
 
Group has not designated financial liabilities at
 
FVTPL (FV option).
 
Derivatives are measured at FVTPL.
Expected credit losses
The Group applies the forward-looking expected credit
 
loss (ECL) model.
The ECL model considers all losses that result from
 
all possible default events over the expected life of
 
the financial instrument (life-
time expected credit losses) or that result from
 
possible default events over the next 12 months (12-month
 
expected credit losses),
depending on whether the credit risk of the financial
 
asset has increased significantly since initial recognition
 
or not (the general ECL
model).
The Group recognizes a loss allowance for expected credit
 
losses on financial assets that are measured at amortized
 
costs. Same
treatment is applied to contract assets resulting from the
 
application of IFRS 15 and lease receivables, even
 
though these are not
classified as financial assets.
At each reporting date, the Company measures the
 
loss allowance for these assets.
 
The Group has limited trade receivables with financing
 
component. The Group applies a simplified method
 
and measures the loss
allowance at an amount equal to the lifetime expected
 
credit losses, for all trade receivables, whether assessed
 
on an individual or
collective basis, considering all reasonable and supportable
 
information, including information that is forward-looking.
For receivables on residential and professional market,
 
the payment delays compared to the contractual due
 
dates and the status of the
legal actions taken to recover the receivables due
 
are the main information considered to assess whether
 
credit risk has increased
significantly since initial recognition. A provision matrix
 
is used.
For the BICS and TeleSign segment, the Group considers
 
experience and reasonable and supportable information
 
about future
expectations to define provision rates on an individual
 
rate" base.
Following indicators are used:
 
an actual or expected significant deterioration of
 
the customer’s external (if available) or internal
 
credit rating.
significant deterioration of the country risk in which the
 
customer is active.
 
existing or forecasted adverse changes in business,
 
financial or economic conditions that are expected
 
to cause a
significant decrease in the debtor’s ability to meet
 
its debt obligations.
 
an actual or expected significant deterioration in the operating
 
results of the debtor.
 
an actual or expected significant adverse change in
 
the regulatory, economic, or technological environment of
 
the debtor
that results in a significant decrease in the debtor’s ability
 
to meet its debt obligations.
The same methodology is applied for contract assets.
 
For financial assets at amortized costs, contract assets
 
and lease receivables, allowances and impairment are
 
recognized in profit or
loss.
The Group writes off a financial asset when there
 
is information indicating that the debtor is in severe financial
 
difficulty and there is no
realistic prospect of recovery, e.g. when the debtor has
 
been placed under liquidation or has entered into bankruptcy
 
proceedings, or in
the case of trade receivables, when the amounts are
 
assumed not recoverable by external recovery agency,
 
whichever occurs sooner.
Financial assets written off may still be subject to
 
enforcement activities under the Group’s recovery procedures,
 
taking into account
legal advice where appropriate. Any recoveries made are
 
recognized in profit or loss.
 
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Criteria for initial recognition and for de-recognition of financial assets and liabilities
Financial assets and liabilities are initially recognized when
 
the Group becomes party to the contractual terms of
 
the instruments.
“Regular way” (“spot”) purchases and sales of financial
 
assets are accounted for at their settlement dates.
Financial assets (or a portion thereof) are derecognized
 
only when the contractual rights to cash flows
 
from the financial assets expire.
For equity investments, the accumulated remeasurements
 
to fair value in other comprehensive income
 
are reclassified to retained
earnings on de-recognition.
 
Financial liabilities (or a portion thereof) are de-recognized
 
when the obligation specified in the contract is discharged,
 
cancelled or
expires. The difference between the carrying amount of
 
the financial liability derecognized and the consideration
 
paid and payable,
including any non-cash assets transferred or liabilities assumed,
 
is recognized in profit or loss.
Fair value of financial instruments
The following methods and assumptions are used
 
to estimate the fair value of financial instruments:
Investments in non-quoted companies are measured at
 
Fair value. Fair value is estimated by reference to recent
 
sale
transactions on the shares of these non-quoted companies
 
and, in the absence of such transactions, by
 
using different
valuation techniques such as discounted future cash flow
 
models and multiples methods.
For long-term debts carrying a floating interest rate,
 
the amortized cost is assumed to approximate fair
 
value.
For long-term debts carrying a fixed interest rate, the fair
 
value is determined based on the market value
 
when available
or otherwise based on the discounted future cash flows.
For derivatives, fair values are estimated by
 
either considering their quoted price on an active
 
market, and if not available
by using different
 
valuation techniques, in particular the discounting
 
of future cash flows.
Criteria for offsetting financial assets and liabilities
Where a legally enforceable right of offset currently
 
exists for recognized financial assets and liabilities,
 
and the Group has the intention
to settle the liability and realize the asset simultaneously,
 
or to settle on a net basis, all amounts in the
 
statement of financial position
are offset.
Trade receivables
 
Trade receivables are measured in the balance sheet
 
at amortized costs (SPPI model applies) less any
 
allowance for expected credit
losses.
Cash and cash equivalents
 
Cash and cash equivalents include cash, current bank
 
accounts and term accounts with a maturity on
 
acquisition of less than three
months. These assets are highly liquid, readily convertible
 
to a known amount of cash and are subject to
 
an insignificant risk of changes
in value.
Cash and cash equivalents are carried at amortized
 
cost.
 
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Interest-bearing liabilities
 
All loans and borrowings are initially recognized at their
 
cost which generally corresponds to the fair value
 
of the consideration received
(net of issuance costs associated with the borrowings).
After initial recognition, debts are measured at amortized
 
cost using the effective interest rate method, with amortization
 
of discounts or
premiums through profit or loss.
Derivatives
The Group does not hold or issue derivative financial
 
instruments for trading purposes but some of its derivative
 
contracts do not meet
the criteria set by IFRS 9 to be subject to hedge
 
accounting and are therefore treated as derivatives held
 
for trading, with changes in fair
value recorded in profit or loss.
 
The Group makes use of derivatives such as IRS, IRCS,
 
forward foreign exchange contracts and currency options
 
to reduce its risks
associated with foreign currency fluctuations on underlying
 
assets, liabilities and anticipated transactions. The
 
derivatives are carried at
fair value under the caption’s other assets (non-current and
 
current), non-interest-bearing liabilities (non-current and
 
current) and
other payables (non-current and current).
An IRCS is used to reduce the Group exposure to
 
interest rate and foreign currency fluctuations on
 
a long-term debt denominated in
JPY. The Group does not apply hedge accounting for
 
this derivative.
 
This long-term debt expressed in JPY includes an embedded
 
derivative. Such derivative is separated from
 
its host contract and carried
at fair value with changes in fair value recognized
 
in profit or loss.
 
The mark-to-market effects on this derivative are offset
 
by those on
the IRCS.
The group used interest rate swaps to mitigate the
 
risk of Interest rate variations between the hedge inception
 
date and the issuance
date of highly probable fixed rate long-term debts.
 
The effective portion of changes in the fair value
 
of hedging instruments that are
designated in a cash flow hedge is recognized in
 
other comprehensive income and gradually reclassified
 
to profit or loss through
financial result, in the same period as the hedged item.
The Group contracts derivatives (forward foreign
 
exchange contracts) to hedge its exposure to currency
 
fluctuations for highly probable
forecasted transactions. The Group applies cash flow
 
hedge accounting; the effective portion of the gains
 
and losses on the hedging
instrument is recognized via other comprehensive income
 
until the hedged item occurs. If the hedged transaction
 
leads to the
recognition of an asset, the carrying amount of the
 
asset at the time of initial recognition incorporates the
 
amount previously recognized
via other comprehensive income. The ineffective portion
 
of a cash flow hedge is always recognized in
 
profit or loss.
 
The other forward exchange contracts do not qualify
 
for hedge accounting and are consequently carried
 
at fair value, with changes in
fair value recognized in profit or loss through financial
 
result except when the underlying is recognized in the balance
 
sheet and relates
to costs recorded in operating income or to capitalized
 
expenditures. In this case, changes in fair value are
 
recognized in profit or loss as
operating income.
The Group applies IAS 32 to option contracts that are
 
share-based payments not granted in exchange
 
for goods or services nor granted
to employees in their capacity as employees. Option
 
contracts, such as warrants, that qualify as derivatives
 
and financial liabilities are
classified as financial liabilities at fair value through profit
 
and loss (financial result).
Net gains and losses on financial instruments
 
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Dividends, interest income and interest charges arising
 
from financial instruments are posted to the
 
finance income (costs).
Remeasurements of financial instruments carried at FVTPL
 
are accounted for as finance income (costs)
 
when the instruments relate to
financing activities.
 
Remeasurements of the financial instruments carried at
 
FVTPL that relate to operating or investing activities
 
(other than mentioned
above), are accounted for as other operating income (expenses).
 
Accumulated remeasurements of equity instruments carried
 
at FVOCI are reclassified from OCI to retained
 
earnings.
Net gains and losses on derivatives used to manage foreign
 
currency exposure on operating activities that do not
 
qualify for hedge
accounting under IFRS 9 are recorded as operating
 
expenses.
Net gains and losses resulting from fair value measurement
 
of derivatives used to manage interest rate exposure
 
on interest-bearing
liabilities that do not qualify for hedge accounting under
 
IFRS 9 are recorded in finance income/(costs).
Contract assets
A contract asset is the Group’s right to consideration
 
in exchange for goods or services that it has already
 
transferred to a customer and
arise essentially in the context of contracts containing
 
mobile and fix joint offer with a subsidized handset
 
and services to be delivered
over 24 months. The contract asset corresponds to the
 
excess of revenue allocated to the devices over the
 
cash received.
 
The “contract
asset” is transferred to “trade receivable” over the contract
 
term. The assets are classified as current as they are
 
expected to be realized
as part of the Group normal operating cycle.
In case of early termination, the customer has to pay a
 
penalty which corresponds to the prorata of the
 
discount offered in the joint offer
for the remaining contract duration. This penalty is always
 
higher than the remaining balance of the
 
contract asset. The difference
between the reversal of the contract asset and the penalty
 
is recognized as device revenue.
Contract assets is a conditional right recognized on
 
the balance sheet at cost less loss allowance,
 
as defined on the lifetime expected
credit loss model.
 
Inventories
Inventories are stated at the lower of cost and net
 
realizable value.
 
Cost is determined based on the weighted average cost
 
method except for IT equipment (FIFO method)
 
and goods purchased for resale
as part of specific contracts containing a performance obligation
 
involving the construction of an asset (individual purchase
 
price).
 
For inventory intended to be sold in joint offers, calculation
 
of net realizable value considers the future
 
margin expected from the
telecommunications services in the joint offer, with which
 
the item of inventory is offered.
For contracts including performance obligation involving
 
the construction of an asset, the revenue for that
 
performance is recognized
over time based on an input method. That method
 
measures the progress towards complete satisfaction of
 
the related performance
obligation by reference to the amount of contract costs
 
incurred for work performed at balance sheet
 
date in proportion to the
estimated total costs for the contract. Contract cost
 
includes all expenditures directly related to the specific
 
contract and an allocation of
fixed and variable overheads incurred in connection with
 
contract activities based on normal operating capacity.
 
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Lease agreements
 
The Group assesses whether a contract is or contains
 
a lease,
 
at inception of the contract. Under IFRS 16
 
a contract is, or contains, a
lease if it conveys the right to control the use
 
of an identified asset (the underlying asset) for a
 
period of time in exchange for
consideration.
Group as a lessee (receives a right to use an asset from a supplier)
When the Group is lessee it applies a single recognition
 
and measurement approach for all leases. The
 
Group recognizes a right-of-use
asset and a corresponding lease liability with respect
 
to all lease arrangements in which it is the lessee,
 
The Group does not apply the
short-term lease recognition exemption nor the low-value
 
recognition exemption.
 
The Group has defined four major categories of
leases:
Buildings: mainly concern commercial (point of sale) or
 
service activity (office and head office) leases, as
 
well as leases of
technical buildings not owned by the Group
 
Mobile sites: only includes site rentals for mobile antennas
 
and leases of R-layers (i.e. well identified area of
 
a pylon) on pylons
of another operator
Fleet: contains the lease of vehicles (management,
 
sales, and utility cars)
Other: primarily consists of ICT equipment
Lease liabilities
The Group recognizes a liability (i.e. a lease liability)
 
at the date the underlying asset is made available.
 
The lease liability is equal to the
present value of the lease payments not paid at
 
that date, plus any amounts that the Group is reasonably
 
certain to pay at the end of
the lease such as the exercise price of a purchase
 
option (where it is reasonably certain to be exercised)
 
or penalties payable to the
lessor for terminating the lease (where such termination
 
option is reasonably certain to be exercised).
 
The Group systematically determines the lease term as
 
the period during which leases cannot be cancelled,
 
plus periods covered by any
extension options that the lessee is reasonably certain
 
to exercise and by any termination options that
 
the lessee is reasonably certain
not to exercise.
 
The lease liability is measured using the interest
 
rate implicit in the contract. If the rate cannot be
 
readily determined, the Group uses its
Incremental Borrowing Rate (IBR) which it assumes
 
to be the theoretical interest rate the Group would need
 
to pay when issuing
funding over a similar term as in the lease.
The applicable rate per contract is primarily dependent
 
on the total expected term of a lease at its
 
commencement date (new leases) or
the total expected remaining lease term in case of
 
a remeasurement of a lease.
The amount of lease liability is reassessed after the
 
lease commencement date to reflect changes introduced
 
in the following main
cases:
a change in term resulting from a contract amendment
 
or a change in assessment of the reasonable
 
certainty that a
renewal option will be exercised or a termination option
 
will not be exercised.
a change in the amount of lease payments, for
 
example following application of a new index or
 
rate in the case of
variable payments.
 
a change in the assessment of whether a purchase option
 
will be exercised.
any other contractual change, for example a change
 
to the scope of the lease or the underlying asset.
The lease liabilities are included in Interest-bearing loans
 
and borrowings (see Note 19).
 
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Right-of-use assets
A right-of use is recognized as an asset, with a corresponding
 
lease liability. Group recognizes right-of-use assets
 
at the
commencement date of the lease (i.e., the date the underlying
 
asset is available for use).
 
Right-of-use assets are measured at cost, less any accumulated
 
depreciation and impairment losses, and adjusted for
 
any
remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount
 
of lease liabilities recognized, lease payments made
 
at or before the
commencement date less any lease incentives received and
 
the estimate of costs to be incurred by the Group
 
in dismantling and
removing the underlying asset, restoring the site
 
on which the underlying asset is located or restoring
 
the underlying asset to the
condition required by the terms and conditions of
 
the lease. Right-of-use assets are depreciated on a
 
straight-line basis over the shorter
of the lease term and the estimated useful lives of
 
the assets. The right-of-use assets are also
 
subject to impairment.
 
Group as a lessor (grants a right to use an asset to a customer)
 
A contract by which the Proximus customer does not
 
obtain substantially all of the benefits of the
 
identified asset or where the
customer has not the right to direct the use of the asset
 
does is not qualify as a lease-out. This is the case for
 
modems and decoders
used by Proximus to deliver the services to the customer.
 
Income for these contracts is accounted for on
 
a straight-line basis over the
period of use by the customer and is included in
 
revenue in the statement of profit or loss due
 
to its operating nature.
 
Leases whereby the Group transfers substantially all the
 
risks and rewards incidental to ownership of
 
the underlying asset to the lessee
are classified as finance lease. For finance leases the Group
 
recognizes a receivable at an amount equal to the
 
net investment in the
lease, this is the gross investment in the lease discounted
 
at the interest rate implicit in the lease. The
 
Group did not enter into material
finance lease out contracts
Provisions
Provisions are recognized when the Group has a present
 
legal or constructive obligation resulting from
 
past events, for which it is
probable that an outflow of resources embodying
 
economic benefits will be required to settle the obligation
 
and a reliable estimate of
the amount of the obligation can be made. A
 
past event is deemed to give rise to a present
 
obligation if, considering the available
evidence, it is more likely than not that a present obligation
 
exists at the balance sheet date. The amount recognized
 
as provision is the
best estimate of the expenditure required to settle
 
the present obligation at the end of the reporting
 
period. Provisions are discounted
where the effect of the time value of money
 
is material. The unwinding is recognized via the
 
finance expense.
 
The estimated costs associated with dismantling and
 
restorations to its original condition are recorded under
 
property, plant and
equipment and depreciated over the useful life of
 
the asset. This total cost, discounted to its present value,
 
is recorded under provisions.
Where discounting is used, the increase in the provision
 
due to the passage in time is recognized in financial expense
 
in profit or loss.
Share based payment
Equity and cash settled share-based payments to employees
 
are measured at the fair value of the instrument
 
at the grant date taking
into account the terms and conditions upon which
 
the rights are granted.
 
For equity settled arrangement the fair value is recognized
 
in workforce expenses over their vesting period, together
 
with an increase of
the caption “stock compensation” of the shareholders’ equity
 
for the equity part and an increase of a dividend
 
liability for the dividend
part. When the share options give right to dividends
 
declared after granting the options, the fair value of
 
this right is re-measured
regularly.
 
 
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For cash settled arrangement the fair value is recognized
 
in workforce expenses over their vesting period
 
together with an increase in
the liabilities. The liabilities are regularly re-measured
 
to reflect the evolution of the fair values.
We refer to Note 35 for the explanation of the valuation
 
techniques used.
Contract liabilities
Contract liabilities comprise the Group’s obligation
 
to transfer goods or services to a customer for which
 
the Group has received
consideration or the amount is due.
Revenue
The Group assesses at contract inception the goods
 
or services promised in a contract with a customer
 
and identifies as performance
obligation each promise to transfer to the customer either
 
a good or service (or a bundle of) that is distinct,
 
either a series of distinct
goods or services that are substantially the same and
 
that have the same pattern of transfer to the customer.
 
Performance obligations are identified when following
 
criterial are met
Capable of being distinct: the customer can benefit from
 
the goods and services on its own or together with
 
other
resources readily available to the customer
 
Distinct within the context of the contract: a promise
 
within the context of the contract is distinct from
 
other promises in
the contract if the Group considers that it fulfills its
 
contractual obligations by delivering the concerned
 
promise
independently from the others. Promises in a context of
 
a contract are not distinct within the context of
 
the contract
when their nature is to be transferred in combination
 
with other promises.
 
Following promises can be performance obligations,
 
depending on their natures and interdependencies
 
with the other promises in the
contract:
Traffic and data usage services:
 
revenue is recognized on usage
TV services: revenue is recognized over the contractual
 
term
Maintenance services: recognized over the contractual term
Sale of equipment: revenue is recognized when the
 
customer obtains control over the equipment
Rent of equipment: rental revenue is recognized over
 
the contractual period
 
Setup/installation/activation fees: recognized when delivered
 
License of intellectual property: revenue recognized when
 
transferred to the customer.
When these promises are not distinct, the Group combines
 
them with other promises in the arrangement
 
until the combined promises
form a promise that is distinct (i.e. a performance obligation).
 
Timing of revenue recognition for a Performance
 
Obligation is based on
the pattern of transfer to the customer of the predominant
 
promise in that bundle.
When the “series guidance” applies i.e. when goods and
 
services are distinct and substantially the same,
 
the Group considers them as
one performance obligation. Each pricing plan – postpaid and
 
prepaid (mobile voice, fix voice, internet,
 
TV) is therefore considered as
single performance obligation.
 
When contracts include different performance obligations
 
that are not substantially the same, the transaction price
 
is allocated to the
different performance obligations of the arrangements
 
based on their relative stand-alone selling prices.
 
When contracts include
customer options (i.e. unilateral rights granted to the
 
customer) to acquire additional goods or services
 
with a discount, including sales
incentives, customer award points, contract renewal options
 
or other discounts on future goods or services,
 
revenue is allocated to
these options when they provide the customer with a material
 
right i.e. an unilateral right for the customer to obtain an
 
advantage
 
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because he enters the contract.
When another party is involved in providing goods or
 
services to a customer, the Group assesses for each
 
performance obligation
whether the nature of its promise is to provide the
 
specified goods or services itself (ie the Group is a principal)
 
or to arrange for those
goods or services to be provided by the other party
 
(ie the Group is an agent). When the Group acts
 
as agent only the commission is
recognized in revenue.
Operating expenses
The costs of materials and services related to revenues
 
include the costs for purchases of materials and
 
services directly related to
revenue.
 
Work force expenses are expenses related to own employees
 
(personnel expenses and pensions) as well as
 
to external employees.
Operating expenses are reported net of work performed
 
by the Group, which is capitalized. They are reported
 
by nature.
Incremental costs to obtain a contract are deferred
 
on a straight-line basis over 3 years for contract
 
for the residential market and 5
years for the professional market.
 
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Note 3. Goodwill
(EUR million)
Goodwill
As at 31 December 2019
2,477
Effect of movements in foreign exchange
-13
As at 31 December 2020
2,465
Purchase price allocation of Mobile Vikings
114
Effect of movements in foreign exchange
9
As at 31 December 2021
2,588
Compared to year-end 2020 the goodwill increased
 
by EUR 123 million because of the acquisition in 2021
 
of Mobile Vikings (EUR 114
million), and due to the USD/EUR conversion of the
 
TeleSign goodwill (EUR 9 million). TeleSign has US
 
Dollar as functional currency.
 
Goodwill is tested for impairment at the level of
 
the operating segments as the performance and
 
allocation of resources within the
group are monitored at operating segment level.
 
In 2021 the operating segments of the Group were
 
redefined as being Domestic, International Carrier Services
 
and TeleSign (see note
2).
Following the changes in operating segments (as explained
 
in Note 2):
-
The goodwill previously allocated to CBU and EBU was
 
reallocated to the Domestic segment, as this segment
 
will benefit
from the business combinations that affected CBU and
 
EBU (which were incorporated into Domestic) and
 
generated the
goodwill.
-
The goodwill previously allocated to BICS, when it acquired
 
the control of TeleSign was reallocated to BICS and
 
TeleSign on a
pro rata basis of the synergies expected from the
 
business combination for each of the two companies
 
taken individually.
These synergies were identified at the date of
 
the takeover of TeleSign by BICS.
As at 31 December 2021, all businesses acquired were
 
fully allocated to one single operating segment,
 
to the exception of the goodwill
resulting from the acquisition of control of TeleSign by
 
BICS, that was reallocated in 2021 to BICS and
 
TeleSign, as explained here
above.
The carrying amount of the goodwill is allocated to
 
the operating segments as follows:
 
As at 31 December
(EUR million)
2020
2021
Domestic
2,074
2,188
International Carrier Services
252
298
TeleSign
139
102
Total
2,465
2,588
Results Goodwill Impairment Test
TeleSign and North Atlantic Acquisition Corporation
 
announced in December 2021 they had entered
 
into a business combination
agreement with the intention to go public. The transaction
 
is expected to be closed in 2022. TeleSign Enterprise Value considered
 
in this
future transaction amounts to $ 1.3 billion. This value,
 
less costs of disposal, was considered by
 
the Group as the entity’s recoverable
amount for the purpose of testing for impairment
 
the goodwill allocated to TeleSign.
TeleSign fair value less costs to sell was categorised within
 
Level 3 of fair value hierarchy, as resulting from
 
a valuation technique for
 
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which all inputs, which have a significant effect on
 
the recorded fair value, are not based on observable
 
market data. The fair valuation of
the entity resulted from negotiations between the parties
 
concerned and was further substantiated by a valuation
 
based among others,
on trading multiples of TeleSign listed peers. Commonly
 
used equity multiples in the CPaaS and Digital
 
Identity space include Enterprise
Value on revenue and/or gross profit.
 
The recoverable amount of the other operating segments
 
was estimated based on their value in use obtained
 
through a discounted free
cash flow model. The key variables used in determining
 
the value in use are:
The operating income before depreciation and amortization
 
for Domestic and the direct margin for BICS.
 
The capital expenditures.
The long-term growth rate.
The post-tax weighted average cost of capital.
Domestic operating income before depreciation and amortization
 
is highly sensitive to following operational parameters:
 
number of
customers by type of service (TV, fix….), traffic (if
 
applicable),
 
net ARPU by customer for each type of service
 
and manpower unit cost.
The value attached to these operational parameters is the
 
result of an internal process, conducted throughout the
 
segment and at
group level, by confronting data from the market, market
 
perspectives, and the strategies the Group intends to
 
implement to be
adequately prepared for upcoming challenges.
BICS direct margin is highly sensitive to the voice and
 
messaging business to the transaction volumes together
 
with mobile network
termination prices and market prices for terminating
 
the traffic per country, and for the mobility and capacity
 
products, to the pricing.
The calculation of the operating segments value in use
 
are based on the Five-Year Plan (2022 to 2026),
 
as presented by the
management to the Group Board of Directors. Subsequent
 
years were extrapolated based on a growth
 
rate of 0.4%
 
for Domestic and
0.0% for BICS. Domestic growth rate for subsequent
 
years corresponded to the blended growth rates
 
considered in the impairment
test performed in 2020 for the operating segments
 
now regrouped under the Domestic segment. The
 
growth rates for the different
segments were within the range of 0.0% and 1.0% in 2020.
The free cash flows considered for calculating the value
 
in use are estimated for the concerned assets in
 
their current condition and
exclude the cash inflows and outflows that are expected
 
to arise from any future restructuring to which
 
the Group is not yet committed
and from improving or enhancing the assets performance.
 
The Five-Year Plan assumes no or almost no impact
 
any more from Covid.
 
The Free cash flows of each operating segment were
 
discounted with specific post-tax weighted average
 
cost of capital. The estimation
of these weighted average costs of capital takes
 
into consideration:
The specificities of the operating segments activities
 
which were different enough from one segment to
 
another to justify
separate calculations.
The relative weight of their capital structure components
 
and include a risk premium specific to their inherent
 
risks.
Other risks,
 
such as the country risk, market risk & industry risk
 
(and how the Group compares to the other companies
 
in the
same country and industry), the credit risk and the company
 
size risk. These latest risks are captured in the weighted
 
average
cost of capital, through the careful selection of a
 
risk-free interest rate, a beta, a market risk premium
 
and a credit spread
attached to the entity.
The calculated post-tax weighted average costs of capital
 
for the operating segments were:
Domestic: 3.65% in 2021 and 4.23% in 2020
BICS: 7.73% in 2021 and 7.99% in 2020
 
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The operating segments respective weighted average
 
pre-tax costs of capital, derived from the post-tax
 
weighted average cost of
capital via an iterative method, were comprised between
 
5.2% and 8.9% in 2021 and 5.6% and 5.7% in 2020.
 
The range of pre-tax
costs of capital did not include BICS in 2020. The
 
Group reviews annually the growth rate and the
 
weighted average costs of capital in
the light of the market economics.
 
The reliability of the impairment test outcome also depends
 
on the accuracy of the budgeting exercises
 
on which it is based. The Group's
Five-Year Plan represents management's view of the most
 
likely scenario, based on its understanding of
 
the evolution of the business
and the company's long-term strategy.
The comparison of the values budgeted in 2020 for
 
the 2021 operating income before depreciation and amortization
 
for Domestic and
the direct margin for BICS with the actual figures led
 
to the conclusion that the estimates were realistic or even
 
slightly conservative.
None of the goodwill was impaired at 31 December
 
2021.
A sensitivity analysis performed on the WACC and
 
the growth rate in the terminal value taken separately
 
( -0.5% / +0.5%) did not
reveal any impairment risk.
 
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213
Note 4. Intangible assets with finite useful life
(EUR million)
Licenses
Customer base
& trade name
TV rights
Fixed&Mobile
network
Software
applications
Other intangibles
and Intangibles
under
construction
Total
Cost
As at 1 January 2020
391
919
363
424
2,138
39
4,273
Additions
13
0
114
67
223
8
425
Derecognition
0
0
-136
-10
-65
1
-210
Reclassifications
0
-10
0
-4
6
11
3
Foreign exchange
adjustment
0
-7
0
0
0
0
-8
As at 31 December 2020
404
901
341
476
2,301
59
4,483
Additions
23
0
156
77
253
15
523
Acquisition of subsidiary
0
27
0
0
12
1
40
Derecognition
0
-2
-97
-18
-43
25
-134
Reclassifications
0
0
1
31
-4
-1
27
Effect of movements in
foreign exchange
0
7
0
0
1
0
8
As at 31 December 2021
427
934
401
566
2,521
98
4,946
Accumulated amortization and impairment
As at 1 January 2020
-263
-705
-253
-308
-1,650
-14
-3,193
Amortization charge for the
year
-33
-52
-117
-44
-204
-5
-456
Derecognition
0
0
136
9
65
0
210
Reclassifications
0
10
0
2
-2
-10
0
Foreign exchange
adjustment
0
2
0
0
0
0
3
As at 31 December 2020
-296
-745
-234
-341
-1,791
-29
-3,435
Amortization charge for the
year
-30
-52
-134
-51
-211
-11
-489
Impairment
0
0
0
0
-1
0
-1
Acquisition of subsidiary
0
0
0
0
-8
0
-8
Derecognition
0
2
97
17
42
-25
132
Reclassifications
0
0
2
-28
1
-2
-27
Foreign exchange
adjustment
0
-3
0
0
-1
0
0
As at 31 December 2021
-326
-797
-269
-404
-1,969
-68
-3,833
Carrying amount as of 31
December 2020
108
157
107
135
510
30
1,047
Carrying amount as of 31
December 2021
101
137
133
162
551
30
1,113
 
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178
The GSM and UMTS licenses acquisition value include
 
the costs related to the Global System for Mobile
 
communication (“GSM”) and
Universal Mobile Telecommunication System (“UMTS”).
The Group possesses the following licenses in Belgium:
Year of
acquisition
Description
Acquisition value
Net book value
Period
Payment method
Start of Amortization
(EUR million)
1998
ILT 2238
2
0
1998 -
completed
1/1/1998
2015
900 MHz spectrum
75
0
2015-2021
over the period
4/8/2015
2021
900 MHz spectrum
15
3
2021-2022
completed
3/15/2021
2001
UMTS
150
0
2001-2021
completed
6/1/2004
2021
UMTS
7
2
2021-2022
completed
3/15/2021
2011
4G
20
7
2012-2027
completed
7/1/2012
2013
800 Mhz spectrum
120
71
2013-2033
over the period
11/30/2013
2014
900 MHz spectrum
16
0
2015-2021
over the period
11/27/2015
2019
800 Mhz sepctrum
2
1
2019-2027
bi-annual
1/1/2019
2019
900 MHz spectrum
2
1
2019-2027
bi-annual
1/1/2019
2019
1800 Mhz spectrum
2
1
2019-2027
bi-annual
1/1/2019
2019
2100 Mhz spectrum
2
1
2019-2033
bi-annual
1/1/2019
2019
2600Mhz spectrum
1
0
2019-2027
bi-annual
1/1/2019
2020
800Mhz spectrum
6
5
2020-2035
upfront+yearly
10/1/2020
2020
3600Mhz spectrum
8
7
2020-2035
upfront+yearly
10/1/2020
Total
427
101
Intangible assets acquired in a business combination
 
relate to customer bases, trade names and patents
 
recognized mainly as a result of
the purchase price allocation performed when the
 
Group acquired control over BICS and TeleSign. Following
 
the businesses
combination in 2021 with Mobile Vikings,
 
the Group recognized the fair value of its customer
 
base and brand for EUR 27 million.
 
In 2021 the Group acquired TV rights for an amount
 
of EUR 156 million mainly broadcasting rights.
 
In July 2020 Proximus and Eleven
entered into an agreement whereby Proximus acquired
 
the right to broadcast to its customers Eleven’s
 
Pro League specific channels
(national). The contract was signed for a duration of
 
5 years. The contract with Eleven related to international
 
football events was
extended until 2025. An intangible asset is capitalized
 
for the broadcasting rights related to the season
 
2021/2022. Future payment
commitments related to future seasons are disclosed as
 
capital expenditures commitments in the note
 
34.
 
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Integrated annual report
 
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I
215
Note 5. Property, Plant and Equipment
(EUR million)
Land and
buildings
Fixed Network
Mobile
Network
Network for
converged
services
Technical
equipment
Other tangible
assets and assets
under
construction
Total
Cost
As at 1 January 2020
546
8,421
1,415
33
1,552
287
12,254
Additions
7
421
57
8
113
22
628
Derecognition
-8
-206
-21
0
-140
-12
-388
Reclassifications
-6
-1
2
1
28
-26
-3
As at 31 December 2020
538
8,634
1,453
43
1,553
270
12,490
Additions
6
553
82
6
100
9
756
Acquisition of subsidiary
0
0
0
0
1
-1
0
Derecognition
-3
-95
-5
-1
-303
-2
-407
Reclassifications
0
-1
6
-11
-10
-12
-27
Exchange adjustment
0
0
0
0
1
0
1
As at 31 December 2021
541
9,091
1,535
37
1,342
265
12,812
As at 1 January 2020
-311
-6,300
-1,005
-15
-1,254
-241
-9,127
Depreciation charge for the
year
-20
-316
-117
-5
-113
-8
-579
Derecognition
7
206
21
0
139
12
385
Reclassifications
2
0
0
-1
-1
0
0
As at 31 December 2020
-322
-6,409
-1,101
-21
-1,229
-238
-9,320
Depreciation charge for the
year
-17
-321
-141
-6
-122
-7
-614
Acquisition of subsidiary
0
0
0
0
-1
0
-1
Derecognition
2
95
5
1
304
2
408
Reclassifications
0
1
0
2
24
0
27
As at 31 December 2021
-337
-6,634
-1,237
-24
-1,025
-244
-9,500
Carrying amount as of 31
December 2020
216
2,225
352
22
323
32
3,169
Carrying amount as of 31
December 2021
204
2,457
298
13
316
22
3,311
The carrying amount of tangible fixed assets increased
 
by EUR 142 million to EUR 3,311 million, mainly driven
 
by the strong ramp-up of
fiber deployment, the start of the Mobile network upgrade
 
and consolidation, and the increase of investments
 
in IT Transformation,
supporting the Group growth and efficiency ambitions.
Per December 2021 the gross carrying amount of fully depreciated
 
property, plant and equipment that is still in use amounts
 
to EUR
6,820 million. Note that the major part is related
 
to technical and network equipment.
 
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I
217
Note 6. Leases
The Group leases several assets including buildings (offices,
 
shops, technical rooms, …), mobile sites (i.e., facilities
 
to install mobile
communication equipment) and fleet (management &
 
utility cars). These leases generally have lease terms
 
between 4 and 15 years.
The average lease term is 9 years.
The carrying amounts of right-of-use assets recognized
 
and the movements during the period are disclosed below
(EUR million)
Buildings
Mobile sites
Fleet
Other
Total
 
As at 1 January 2020
153
93
54
6
307
New contracts
11
6
14
0
31
Depreciations
-26
-29
-23
-4
-82
Contract modifications/disposals/reassessments
7
20
0
2
29
As at 31 December 2020
145
91
45
4
285
New contracts
5
6
21
2
34
Depreciations
-25
-33
-22
0
-80
Contract modifications/disposals/reassessments
10
25
-1
0
34
As at 31 December 2021
135
89
43
7
274
In 2020 the contract modifications are mainly related
 
to mobile sites contracts. For the buildings the
 
modifications are linked to the
extension of the Courcelles warehouse contract.
 
In 2021 the mobile site contracts continue to be extended.
 
As a result of the digitalization process, the number
 
of stores has further
decreased, while other building contracts were extended.
 
Car contracts are generally not extended but replaced
 
by new contracts.
The carrying amounts of lease liabilities and the movements
 
during the period are disclosed below
(EUR million)
Buildings
Mobile sites
Fleet
Other
Sub-leases
Total
As at 1 January 2020
148
91
54
7
8
307
New contracts
11
6
14
0
0
31
Contract modifications/disposals/reassessments
11
15
0
1
1
28
Interest expense
1
1
0
0
0
2
Reimbursements
 
-27
-30
-24
-4
0
-84
As at 31 December 2020
144
83
44
5
8
284
New contracts
5
6
21
2
0
34
Contract modifications/disposals/reassessments
10
24
1
1
0
35
Interest expense
1
1
0
0
0
2
Capital Reimbursements
-25
-28
-24
-3
0
-80
Interests Reimbursements
-1
-1
0
0
0
-2
As at 31 December 2021
134
85
42
5
8
273
Current portion
23
23
19
2
3
69
Non current portion
111
62
24
3
5
204
There is no material cash outflow in 2021 relating to
 
leases that have not commenced on 31 December
 
2021.
 
 
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Integrated annual report
 
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I
178
(EUR million)
2020
2021
The following are the amounts recognized in profit
 
or loss:
Depreciation
-82
-80
Interest expenses
-2
-2
Total
-84
-82
The Group had total cash outflows for leases
 
of
 
Repayment of lease liabilities (cash out for financing activities)
 
-82
-79
Interest expenses (in the operating cash flow)
-2
-2
Total
-84
-82
The maturity table of the undiscounted expected future
 
cashflows to the lease liabilities are disclosed below:
As at 31 December 2020
2021
2022
2023
2024
2025
2026
2027- 2048
Total
(EUR million)
Undiscounted lease payments
71
55
44
32
25
19
50
296
As at 31 December 2021
Undiscounted lease payments
71
54
41
31
24
60
281
 
Note 7. Contract cost
Contract costs include mainly the asset recognized in
 
relation to commissions paid to dealers for the
 
acquisition of post-paid contracts.
These costs directly related to contracts, are incurred
 
only because the Group entered into contracts
 
and are expected to be recovered
over the contract duration. Contract costs include
 
also the expenses activated to ensure the matching
 
principle with revenue. These
activated expenses are taken to profit and loss at
 
the same pace as the recognition of the related
 
revenue.
For commissions related to the acquisition of mobile prepaid
 
customers, the Group applies the practical
 
expedient provided for in IFRS
15, allowing to expense as incurred incremental costs
 
to obtain a contract if otherwise would have been
 
deferred over one year or less.
 
The asset is deferred on a straight-line basis over 3
 
years for contracts belonging to residential market
 
and 5 years for the enterprise
market. The deferral of these costs is recognized according
 
to their nature being ‘cost of material and
 
services related to revenue’.
Movements on contract costs are as follows:
 
As at 31 December
 
(EUR million)
2020
2021
Balance as at 1 January
113
108
Decrease/ Increase in contract assets relating to existing contracts
 
in the opening balance
Normal evolution
-68
-66
 
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New contract costs
63
68
Balance as at 31 December
108
110
The portion of the balance as at 31 December 2020
 
and 2021 of the contract costs deferred less
 
than one year and deferred more than
one year are as follows:
 
As at 31 December
 
(EUR million)
2020
2021
Contract costs
108
110
Deferred within 12 months
55
55
Deferred beyond 12 months
54
55
 
 
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Note 8. Investments in subsidiaries, joint operations, joint ventures
and associates
 
Note 8.1. Investments in subsidiaries
 
The consolidated financial statements include the financial
 
statements of Proximus SA and the subsidiaries listed
 
in the following table:
 
Name
Registered office
Country of
incorporation
2020
2021
Proximus SA under Public Law
Bld du Roi Albert II 27
Belgium
Mother company
1030 Bruxelles
VAT BE 0202.239.951
PXS Re
Rue de Merl 74
Luxemburg
100%
100%
2146 Luxembourg
Connectimmo SA
Bld du Roi Albert II 27
Belgium
100%
100%
1030 Bruxelles
VAT BE 0477.931.965
Proximus Media House (PmH)
Rue Carli 2
Belgium
100%
100%
1140 Evere
VAT BE 0875.092.626
Telindus - ISIT BV
Krommewetering 7
The Netherlands
100%
100%
3543 AP UTRECHT
Proximus Luxembourg SA
18 rue du Puits Romain
 
Luxemburg
100%
100%
8070 Bertrange
Proximus ICT SA
Koning Albert II laan 27
Belgium
100%
100%
1030 Brussels
VAT BE 0826.942.915
(2)
Proximus ICT - Expert
Community CVBA
Ferdinand Allenstraat 38
Belgium
82%
100%
3001 Heverlee
VAT BE 0841.396.905
Proximus Opal SA
Bld du Roi Albert II 27
Belgium
100%
100%
1030 Bruxelles
VAT BE 0861.585.672
Be-Mobile SA
Kardinaal Mercierlaan 1A
Belgium
93%
93%
9090 Melle
VAT BE 0881.959.533
Mediamobile Nordic OY
Äyritie 8B
 
Finland
100%
100%
01510 Vantaa,
 
Finland
FI 23364202
Mediamobile SA
Rue du Gouverneur Général Eboué 24
France
100%
100%
F-92130 Issy Les Moulineaux
Flitsmeister BV
Landjuweel 24
The Netherlands
93%
93%
3905 PG Veenendaal
Cascador BV
Kardinaal Mercierlaan 1, bus A
Belgium
100%
100%
9090 Melle
VAT BE 0648 964 048
 
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Name
Registered office
Country of
incorporation
2020
2021
Scarlet Belgium NV
Carlistraat 2
Belgium
100%
100%
1140 Evere
VAT BE 0447.976.484
Clearmedia NV
Merksemsesteenweg 148
Belgium
100%
100%
2100 Deurne
VAT BE 0831.425.897
Davinsi Labs NV
Borsbeeksebrug 28/2verd
 
Belgium
100%
100%
2600 Antwerpen
VAT BE 0550.853.793
Unbrace BV
Merksemsesteenweg 148
Belgium
100%
0%
2100 Deurne
(3)
VAT BE 0867.696.771
Belgacom International Carrier
Services Mauritius Ltd
Chancery House 5th floor , Lislet, Geoffrey Street
Mauritius
58%
100%
Port Louis 1112-07
(1)
Belgacom International Carrier
Services SA
Bld du Roi Albert II 27
Belgium
58%
100%
1030 Brussels
VAT BE 0866.977.981
(1)
Belgacom International Carrier
Services Deutschland GMBH
Eichweisenring 11
Germany
58%
100%
70567 Stuttgart
(1)
Belgacom International Carrier
Services UK Ltd
2 New Bailey, 6 Stanley Street, Salford
United Kingdom
58%
100%
Greater Manchester M3 5GS
(1)
Belgacom International Carrier
Services Nederland BV
Wilhelminakade 173, unit 41 32
The Netherlands
58%
100%
3072 AP Rotterdam
(1)
Belgacom International Carrier
Services North America Inc
Corporation trust center - 1209 Orange street
United States
58%
100%
USA - 19801 Willington Delaware
(1)
Belgacom International Carrier
Services Asia Pte Ltd
80 Robinson Road #02-00
Singapore
58%
100%
Singapore 068898
(1)
Belgacom International Carrier
Services (Portugal) SA
Avenida da Republica, 50, 10th floor
Portugal
58%
100%
1069-211 Lisboa
(1)
Belgacom International Carrier
Services Italia Srl
Via della Moscova 3
Italy
58%
100%
20121 Milano
(1)
Belgacom International Carrier
Services Spain SL
Calle Salvatierra, 4, 2c
Spain
58%
100%
28034 Madrid
(1)
Belgacom International Carrier
Services Switzerland AG
Gesellschaftsstrasse 27
Switzerland
58%
100%
3001 Bern
(1)
Belgacom International Carrier
Services Austria GMBH
Wildpretmarkt 2-4
Austria
58%
100%
1010 Wien
(1)
Belgacom International Carrier
Services Sweden AB
Drottninggatan 30
Sweden
58%
100%
411-14 Goteborg
(1)
Belgacom International Carrier
Services JAPAN
 
KK
#409 Raffine Higashi Ginza, 4-14
Japan
58%
100%
Tsukiji 4 - Chome - Chuo-ku
Tokyo 104-0045
(1)
 
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Name
Registered office
Country of
incorporation
2020
2021
Belgacom International Carrier
Services China Ltd
Hopewell Centre - level 54
China
58%
100%
183, Queen's road East
Hong Kong
(1)
Belgacom International Carrier
Services Ghana Ltd
20 Jones Nelson Road, Adabraka,
 
PO Box GP 821
Ghana
58%
100%
Accra
(1)
Belgacom International Carrier
Services Australia Pty Ltd
1 Margaret Street - Level 11
Australia
58%
100%
Sydney NSW 2000
Australia
(1)
Belgacom International Carrier
Services Dubai FZ-LLC
Dubai Internet City
United Arab.
Emirates
58%
100%
Premises 306 - Floor 03- Building 02 -PO box
502307
Dubai
(1)
Belgacom International Carrier
Services South Africa
Proprietary Ltd
Central Office Park n°5
South Africa
58%
100%
257 Jean Avenue, Centurion
Gauteng 0157
(1)
Belgacom International Carrier
Services Kenya Ltd
5th Floor, West Wing, ICEA Lion Center
Kenya
58%
100%
Riverside Park, PO Box 10643
00100 Nairobi
(1)
Belgacom International Carrier
Services France SAS
Rue du Colonel Moll 3
France
58%
100%
75017 Paris
(1)
Belgacom International Carrier
Services Malaysia
Level 6, Menara 1 Dutamas
Malaysia
58%
100%
Solaris Dutamas, No. 1 Jalan Dutamas 1,
50480 Kuala Lumpur
No. 202001015524 (1371844-D)
(1)
TeleSign Holdings Inc
13274 Fiji Way , Suite 600
United States
58%
100%
Marina del Rey, CA 90292
TeleSign Corporation
13274 Fiji Way , Suite 600
United States
58%
100%
Marina del Rey, CA 90292
TeleSign UK
2 New Bailey, 6 Stanley Street, Salford
United Kingdom
58%
100%
Greater Manchester M3 5GS
TeleSign Mobile Ltd
2 New Bailey, 6 Stanley Street, Salford
United Kingdom
58%
100%
Greater Manchester M3 5GS
TeleSign Doo
Tresnjinog cveta 1
Serbia
58%
100%
11070 Novi Beograd
TeleSign Netherlands B.V.
2 New Bailey, 6 Stanley Street, Salford
United Kingdom
58%
100%
Greater Manchester M3 5GS
TeleSign Singapore Pte. Ltd.
1 Robinson Road, #17-00
Singapore
58%
100%
AIA Tower
Singapore (048542)
TeleSign (Beijing) Technology
Co., Ltd.
Office 1551, 15/F, Office Building A, Parkview Green,
P.R. China
58%
100%
9 Dongdaqiao Road, Chaoyang District
Beijing 100020
Codit Holding BV
Gaston Crommenlaan 14, box 301
Belgium
100%
100%
9050 Ledeberg
VAT BE 662.946.401
Codit BV
Gaston Crommenlaan 14, box 301
Belgium
100%
100%
9050 Ledeberg
VAT BE 0471.349.823
 
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Name
Registered office
Country of
incorporation
2020
2021
Codit Switzerland AG
The Circle 6
Switzerland
100%
100%
8058 Zurich
VAT CHE-335.776.516
Codit Integration Ltd.
 
Landmark House, Station Road
United Kingdom
100%
100%
 
RG27 9HA Hook (Hampshire)
VAT GB 241.5781.10
Codit Managed Services BV
Gaston Crommenlaan 14, box 301
Belgium
100%
100%
9050 Ledeberg
VAT BE 0835.734.875
Codit Mare Limited
 
International House, Mdina Road
Malta
100%
100%
BKR 3000 Mriehel
C55412
Codit Nederland B.V
Atoomweg 350,
The Netherlands
100%
100%
3542AB Utrecht
Votijnit Lda. (Codit Portugal)
 
Rua de Igreja n° 79-Aveiro Business Center
Portugal
100%
100%
N Senhora de Fatima 3810-744 Aveiro
NIPC 510.595.251
Codit Software Limited
 
International House, Mdina Road
Malta
100%
100%
BKR 3000 Mriehel
 
C64225
Codit France S.A.S.
 
18, Boulevard Malesherbes
France
100%
100%
75008 Paris 08
VAT FR 0478.300.189
UMBRiO Holding BV
Bisonspoor 3002-A501
The Netherlands
100%
100%
3605 LT Maarssen
Mobile Vikings NV
Kempische Steenweg 309 - box1
Belgium
0%
100%
3500 Hasselt
(4)
VAT BE 0886,946,917
(1) Entity of BICS Group
(2) Previously named Proximus Spearit SA
(3) Entity merged with Codit BV
(4) Entity acquired in 2021
 
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Note 8.2. Details of non-wholly owned subsidiaries that have material non-
controlling interests
In February 2021 the Group acquired 42.4% minority
 
interest in BICS from MTN and Swisscom. As Proximus
 
already controlled BICS
before this transaction, the negative difference between
 
the consideration paid (EUR 217 million) and
 
the carrying value of non-
controlling interests (EUR 126 million) has been recorded
 
as a deduction from the shareholder’s equity
 
attributable to the parent.
Minority shareholders hold 7.26% non-controlling interest
 
in Be-Mobile. The Group granted those minority
 
shareholders a put option on
their interests and holds a call option under the same
 
conditions and the same price. The Group recorded a gross
 
debt up to the
expected exercise price of the put option. This financial liability
 
is valued at the fair value through P&L.
In July 2021 the Group concluded a new shareholder’s
 
agreement with Be-Mobile,
 
which led to a remeasurement of the put option
(increase from EUR 1 million to EUR 3 million), due to
 
the change in the methodology for calculating the
 
exercise price of the put option
awarded to former non-controlling interest. As was
 
the case in the previous agreement, Proximus has a call
 
option on these shares, with
the same exercise conditions as the put option.
 
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Note 8.3. Investments in joint operations
The Group has a material joint operation in MWingz
 
located Bld Simon Bolivar 34 in 1000 Brussels (VAT
 
BE 0738 987 372). In
November 2019, Proximus and Orange Belgium entered
 
into a strategic agreement to share a part of their
 
mobile access networks. The
shared mobile access network is planned, built and
 
operated by this joint company, owned 50/50 by
 
Proximus and Orange Belgium
which started its services to the shareholders in April
 
2020. The agreement is based on the following
 
principles:
 
The operators contractually share control of the agreement,
 
i.e. decisions about the relevant activities require unanimous
 
consent
of the parties.
Mwingz exclusively delivers services to the parents.
In its consolidated financial statements, the Group accounts
 
Mwingz as a joint operation and recognizes
 
its share in the assets and
liabilities based on its ownership interest and its share
 
in Mwingz costs from third parties. Revenues from
 
the sale of joint operation
services to Proximus and Orange Belgium are eliminated.
 
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Note 8.4. Investments in joint ventures and associates
The Group had interests in the following joint ventures
 
and associates:
 
Name
Registered office
Country of
incorporation
Group's participating interests
2020
2021
Belgian Mobile ID SA/NV
Sinter-Goedeleplein 5
 
Belgium
15%
15%
1000 Brussel
VAT BE 541.659.084
Synductis CV
Brusselsesteenweg 199
Belgium
17%
17%
9090 Melle
VAT BE 502.445.845
Experience@work CV
Minderbroedersgang 12
Belgium
30%
30%
2800 Mechelen
VAT BE 627.819.632
Tessares SA/NV
Avenue Jean Monnet 1
 
Belgium
23%
23%
1348 Ottignies-Louvain-la-Neuve
VAT BE 600.810.278
Co.station Belgium NV
Sinter-Goedeleplein 5
Belgium
20%
20%
1000 Brussel
VAT BE 599,786,434
Fiberklaar Midco BV
Raymonde de Larochelaan 13
Belgium
50%
50%
9051 Sint-Denijs-Westrem
VAT BE 760,489,106
Fiberklaar BV
Raymonde de Larochelaan 13
Belgium
50%
50%
9051 Sint-Denijs-Westrem
VAT BE 760,540,475
I.Leco NV
Kleinhoefstraat 6
Belgium
0%
38%
2440 Geel
(4)
VAT BE 471,967,356
Belgian Parking Register NV
Kardinaal Mercierlaan 1A
Belgium
0%
50%
9090 Melle
(4)
VAT BE 0778.406.687
Unifiber Midco SA
Waterloo Office Park
Belgium
0%
50%
Drève Richelle 161 D, Boite 20
(4)
1410 Waterloo
0771.814.647 RPR/RPM
Unifiber SA
Waterloo Office Park
Belgium
0%
50%
Drève Richelle 161 D, Boite 20
(4)
1410 Waterloo
0771.870.372 RPR/RPM
Ads&Data
Harensesteenweg 226
Belgium
0%
50%
1800 Vilvoorde
(4)
VAT BE 0809.309.701
(4) Entity acquired in 2021
As part of the Delta Fiber agreement for the northern
 
part of Belgium, a new entity named Nexus Midco
 
BV was set up in December
2020, with the aim of designing, building, and maintaining
 
that network. The name of the entity was changed
 
in the first quarter to
Fiberklaar Midco BV, and Proximus contributed EUR 30
 
million in cash to its capital. Proximus owns 49.9%
 
of the entity, which is
accounted for under the equity method.
The fiber partnership for the southern part of Belgium
 
was cleared by the European authorities in July
 
2021 and the new entity Unifiber
was immediately created. Proximus contributed EUR 10
 
million in cash to its capital and owns 49.99%
 
of the entity. Unifiber is also
accounted
 
for under the equity method.
Per 31 December 2021, the aggregate information on all
 
individually immaterial associates is as follows:
 
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Integrated annual report
 
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(EUR million)
2020
2021
Carrying amount
0
34
Loss of continuing operations
-1
-10
 
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Note 8.5. Acquisitions and disposal of subsidiaries, joint ventures and associates
Acquisitions in 2021
Mobile Vikings
Following the positive decision of the Belgian competition
 
authority in June 2021, the Group acquired in June 2021
 
a 100% stake in
Mobile Vikings NV for an amount of EUR 128 million
 
net of cash acquired.
The completion of the purchase price allocation led to the
 
recognition, at their acquisition-date fair value, of non-current
 
assets,
consisting of the customer base and the brand, for an
 
amount of EUR 27 million. The carrying amount of
 
the other assets acquired and
liabilities assumed correspond to their acquisition date fair
 
values.
As a result, the group recognized a goodwill of EUR
 
114 million.
The fair value of the identifiable assets and liabilities of
 
Mobile Vikings
 
as at the date of
acquisition is detailed as follows (in Million Euro):
Fair Value recognized at
acquisition
 
Intangible assets with finite useful life
31
Deferred income tax assets
1
Trade receivables
6
Investments and cash and cash equivalents
24
Total assets
63
Deferred income tax liabilities
-7
Trade payables
-15
Income tax payables
-1
Other current payables & other amounts payables
-2
Total non-controlling interests and liabilities
-24
Net assets acquired
39
Consideration
153
Goodwill from acquisition
114
Consideration paid
153
Net cash acquired of the subsidiary (after deduction of loan)
24
Net cash outflow
128
The “cash paid for acquisition of consolidated companies
 
net of cash acquired” in the Cash Flow
 
Statement reported as “cash flow from
investing activities” amounts to EUR 130 million. EUR 2
 
million relates to earn outs paid for other historical
 
acquisitions.
Control in BICS/TeleSign
The Group held until February 2021, 57.6% of the
 
BICS/TeleSign shares and 57.6% of the voting rights
 
to the BICS shareholders’
meeting. The Group concluded that it controlled
 
BICS/TeleSign thanks to the decision-making rules and
 
deadlock procedures foreseen
in the shareholders’ agreement in force as from 1
 
January 2010.
In accordance with the agreement entered on 9 February
 
2021 Proximus acquired on 23 February 2021
 
the 42.4% stake from the
minority shareholders of BICS/TeleSign, (MTN 20% and
 
Swisscom 22.4%) for a total cash consideration of
 
EUR 217 million and owns
now 100% of the shares.
This EUR 217 million is reported in the cash flow
 
statement as Cash used for financing activities.
 
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Fiberklaar and Unifiber
Proximus and DELTA Fiber signed a partnership agreement
 
in March 2021 with a view to ramping up the roll-out
 
of fiber in Flanders.
Proximus owns 49.9% of Fiberklaar,
 
which is accounted for under the equity method
 
(see note 8.3).
In July 2021, the same project was developed in Wallonia
 
thanks to the creation of the joint venture Unifiber,
 
which is created through a
partnership between Proximus and Eurofiber. Proximus owns
 
49.99% of Unifiber, which is accounted for under
 
the equity method (see
note 8.3).
The “cash paid for acquisition of other participating interests’
 
reported in the net cash used in investing
 
activities includes EUR 40 million
for Fiberklaar and Unifiber and EUR 4 million for investments
 
in other associates.
Acquisitions in 2020
In April 2020, Mwingz a joint company, owned 50/50
 
by Proximus and Orange Belgium started its
 
services to its shareholders (see note
8.3).
Note 9. Equity investments measured at fair value
At 31 December 2021 and 2020, the group held participating
 
interests in non-quoted companies, the fair value of
 
which was inferior to
€ 1 million.
The group elected to classify at initial recognition
 
these interests at fair value through other comprehensive
 
income as they are not held
for a purpose of trading but acquired with a long-term
 
strategic view.
 
 
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Note 10. Income taxes
(EUR million)
As at 31 December
 
2020
2021
Accelerated depreciation
-60
-45
Fair value adjustments on acquisition
-35
-33
Statutory provision not retained under IFRS
-6
-7
Remeasurement of financial instruments to fair value
-1
-2
Deferred taxation on sales of property, plant and equipment
-8
-7
Post-employment, termination and other benefits
0
-7
Deferred taxation on contract assets & contract costs
-52
-56
Other
-4
-2
Gross deferred income tax liabilities
-166
-159
Fair value adjustment on fixed assets
14
12
Post-employment, termination and other benefits
30
0
Tax losses carried forward
6
3
Provisions for liabilities and charges
11
12
Other
2
2
Gross deferred income tax assets
63
29
Net deferred income tax assets / (liabilities), when grouped per taxable entity, are as follows
 
:
Net deferred income tax liability
-115
-136
Net deferred income tax asset
12
6
The movements in 2021 of the deferred tax position are as
 
follows
(EUR million)
As at 31 December 2020
-103
Decrease as the result of the purchase price allocation
-6
Decrease recognized through other comprehensive income
-32
Increase recognized in income statement
12
As at 31 December 2021
-129
The movements in 2020 of the deferred tax position are as
 
follows:
(EUR million)
As at 31 December 2019
-95
Decrease recognized through other comprehensive income
6
Increase recognized in income statement
-15
As at 31 December 2020
-103
The 2021 deferred tax expense in the profit or loss is mainly
 
the consequence of the accelerated depreciation of
 
some network
components and the annual declining depreciation method
 
on the tangible assets and broadcasting intangible assets
 
acquired in 2018
and 2019 applied by Proximus SA in BGAAP This
 
expense is partially offset by the decrease of the deferred
 
tax liability on fair value
adjustments on acquisitions.
 
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I
231
The deferred income tax assets on fair value adjustment
 
of fixed assets relate mainly to the elimination
 
of the gain resulting from the
intercompany sale at fair value of certain fixed assets.
Deferred tax assets have not been recognized
 
in respect of the losses of subsidiaries that have been
 
loss-making for several years.
Cumulative tax losses carried forward and tax deductions
 
available for such companies amounted to EUR
 
50 million at 31 December
2021 (EUR 25 million in 2020) of which EUR 39
 
million has no expiration date and EUR 10 million has
 
an expiration date after 2023.
In the income statement, deferred tax income/ (expense) relate
 
to the following:
Year ended 31 December
(EUR million)
2020
2021
Accelerated depreciation
 
-21
14
Fair value adjustments on acquisition
12
10
Remeasurement of financial instruments to fair value
-1
-4
Deferred taxation on sales of property, plant and equipment
3
1
Fair value adjustment on fixed assets
-2
-2
Post-employment, termination and other benefits
0
-2
Tax losses carried forward
1
-4
Contract assets and contract cost
-5
-4
Other
-3
3
Deferred tax expense of the year
-15
12
The consolidated income statement includes the following
 
tax expense:
As at 31 December
 
(EUR million)
2020
2021
Current income tax
Current income tax expense
-160
-149
Deferred income tax
-15
12
Income tax expense reported in consolidated
 
income statement
-174
-137
 
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Proximus Group I
Integrated annual report
 
2021
I
178
The reconciliation of income tax expense at the statutory income
 
tax rate to income tax expense at the group's effective income
 
tax rate for
each of the two years ended is as follows:
(EUR million)
2020
2021
Income before taxes
756
581
At Belgian statutory income tax rate of 25%
 
189
145
Non-taxable income from subsidiaries
-23
-20
Non-deductible expenditures for income tax purposes
 
10
10
Non-deductible losses from subsidiaries
1
7
Other
-3
-6
Income tax expense
174
137
Effective income tax rate
23.04%
23.51%
The 2021 effective income tax rate amounts to 23.51%
 
which is higher compared to the effective income
 
tax rate of 23.04% in 2020.
 
This mainly results from the loss of deferred tax assets
 
on the tax losses carried forward of group
 
entities.
 
The non-taxable income from subsidiaries mainly relates
 
to the application of general principles of tax law
 
such as the patent- and
innovation income deduction applicable in Belgium.
The 2021 non-deductible expenditures for income tax
 
purposes primarily relate to various expenses
 
that are disallowed for tax
purposes.
 
 
Note 11. Assets and liabilities for pensions, other post-
employment benefits and termination benefits
The Group has several plans that are summarized
 
below:
As at 31 December
 
(EUR million)
2020
2021
Termination benefits and additional compensations in respect of restructuring
 
programs
209
140
Defined benefit plans for complementary pension plans net liability / (net asset)
67
-79
Other pension plans
0
1
Post-employment benefits other than pensions
368
365
Net asset recognized in the balance sheet
0
79
Net liability recognized in the balance sheet
645
508
Net liability (current)
86
62
 
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Integrated annual report
 
2021
I
233
Net liability (non-current)
559
447
The calculation of the liability is based on the assumptions
 
established at the balance sheet date. The assumptions for
 
the various plans
have been determined based on both macro-economic factors
 
and the specific terms of each plan relating to the
 
duration and the
beneficiary population.
The discount rate used for the valuation of pension
 
plans, other post-employment benefit plans and termination
 
benefits is based on
the yield of Eurozone high quality corporate bonds with a
 
duration matching the duration of such plans.
 
The cash flow increase resulting from the liability for
 
pensions, other postemployment and termination benefits
 
reported in the net cash
flow from operating activities results from lower payment
 
in 2021 vs 2020 for the early leave plan and
 
fit for purpose plan.
Note 11.1. Termination benefits and additional compensations in respect of
restructuring programs
Termination benefits and additional compensations
 
included in this chapter relate to employee restructuring
 
programs. No plan assets
are accumulated for these benefits.
In 2007, the Group implemented a voluntary external
 
mobility program to the Belgian State for its statutory
 
employees and a program
for unfit statutory employees. Under the terms of
 
this plan, the Group will pay benefits until retirement
 
date of the participant.
 
In 2016, the Group implemented a voluntary leave program
 
allowing for early termination from the age of
 
60 (or 58 for a small group).
For certain participants to the early leave restructuring
 
plan, benefits are paid from the age of
 
60 until the earliest retirement date. For
those entering in the plan before the age of 60 and
 
therefore required to render service until 60,
 
the cost of the plan was recognized for
the period of service still to be delivered between the
 
moment of entering in the program and 60. The
 
cost evolves with the index.
Discount rate and turnover are assumed to be zero.
In 2019, Proximus launched its Fit for Purpose (FFP)
 
transformation plan.
 
An analysis based on the company's future challenges
 
has
led to the identification of areas of activity that either are
 
being modified or that are disappearing. In this
 
context, 1,347 FTEs were
leaving Proximus. The provision for termination benefits
 
(EUR 288 million) was entirely booked in 2019
 
as a result of a detailed and
formal communication to those affected by the plan
 
and as these benefits were not conditional to future
 
service. The provision includes
all benefits that are paid to the participants either
 
at dismissal date or until earlier pensionable date.
 
The provisions also include
outplacement costs. The costs of reskilling and upskilling of
 
employees are not included in the provision. The long-term
 
part of the
provision relates to the payments to be made after more
 
than one year (mainly until pensionable date). This
 
evolves with the index. The
staff turnover assumption is considered to be zero in the calculation.
 
The provision has been reduced by EUR 27 million
 
in 2020 and by
EUR 1 million in 2021.
 
Any subsequent re-measurement of the liability for
 
termination benefits and additional compensations is recognized
 
immediately in the
profit or loss.
 
The funded status of the plans for termination
 
benefits and additional compensations is as follows
 
:
As at 31 December
 
(EUR million)
2020
2021
Benefit Obligation
209
140
Benefit obligation in excess of plan assets
209
140
The movement in the net liability recognized in the
 
balance sheet is as follows :
 
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Proximus Group I
Integrated annual report
 
2021
I
178
As at 31 December
 
2020
2021
At the beginning of the year
447
209
Total expense for the period
-30
-3
Payment to the participants
-208
-66
At the end of the year
209
140
The liability for termination benefits and additional
 
compensations was determined using the
 
following assumptions:
As at 31 December
 
(EUR million)
2020
2021
Discount rate
0%
0%
Future price inflation
 
2.00%
2.15%
Sensitivity analysis
An increase or decrease of 0.5% in the effective
 
discount rate involves a fluctuation of the liability by
 
approximately EUR 2
million.
 
The Group expects to pay an amount of EUR 46
 
million for termination benefits and additional compensations
 
in 2022. The payments in
2021 amounted to EUR
 
65 million.
 
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Integrated annual report
 
2021
I
235
Note 11.2. Defined contribution and benefit plans for complementary pensions
 
Defined benefit plans of Proximus SA and some subsidiaries
Proximus SA and some of its Belgian subsidiaries offer
 
defined benefit pension plans for their employees.
 
These plans provide pension
benefits, for services as of 1 January 1997 at the
 
earliest. They provide benefits based on salary and years
 
of service. They are financed
through the Proximus Pension Fund, a legally separate
 
entity created in 1998 for that purpose.
 
The financing method is intended to finance the current value
 
of future pension obligations (defined benefit obligation
 
– DBO) relating
to the years of service already rendered in the company
 
and taking into account future salary increase.
 
The financing method is derived
from calculations under IAS 19. The annual contribution
 
is equal to the sum of the service cost, the net financial
 
cost (interest cost on
DBO minus the expected return on assets) and the amortization
 
of the difference between the assets and the
 
DBO exceeding 10% of
the higher of the DBO or the assets. Therefore, the
 
amount contributed may differ from the amount
 
recognized in the income
statement.
At 31 December 2021, the assets of the Pension Fund
 
exceed the minimum required by the pension
 
regulator, being the technical
provision. The technical provision represents the amount
 
needed to guarantee the short-term and long-term equilibrium
 
of the Pension
Fund. It is constituted of the vested rights increased
 
with an additional buffer amount in order to guarantee
 
the long-term durability of
the pension financing. The vested rights represent the current
 
value of the accumulated benefits relating to years
 
of service already
rendered in the company and based on current
 
salaries. They are calculated in accordance with the pension
 
regulation and applicable
law regarding actuarial assumptions.
 
As for most of defined benefit plans, the pension cost
 
can be impacted (positively or negatively) by parameters
 
such as interest rates,
future salary increases and inflation. These risks are not
 
unusual for defined benefit plans.
For the complementary defined benefit pension plan,
 
actuarial valuations are carried out at 31 December
 
by external independent
actuaries. The present value and the current service
 
cost and past service cost are measured using
 
the projected unit credit method.
 
The funded status of the pension plans is as follows
 
:
As at 31 December
 
(EUR million)
2020
2021
Defined Benefit Obligation
837
825
Plan assets at fair value
-770
-904
Deficit / (surplus)
67
-79
The components recognized in the income statement
 
and other comprehensive income are as follows
 
:
Year ended 31 December
 
(EUR million)
2020
2021
Current service cost - employer
52
52
Past service cost recognized
3
0
Recognized in the income statement
56
52
Remeasurements
Actuarial losses from changes in financial assumptions
14
-40
 
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Integrated annual report
 
2021
I
178
Actuarial (gains) / losses arising from experience adjustments
3
-11
Actuarial (gains) / losses related to return on assets, excluding amounts included
 
in the net interest
cost
1
-95
Recognized in other comprehensive income
18
-146
Total
 
74
-93
The movement in the net liability recognized in the
 
balance sheet is as follows :
Year ended 31 December
 
(EUR million)
2020
2021
At the beginning of the year
46
67
Expense for the period recognized in the income statement
56
52
Remeasurement recognized in other comprehensive income
18
-146
Payment to the participants
-52
-52
Net deficit/ (Net surplus)
67
-79
Change in plan assets :
As at 31 December
 
(EUR million)
2020
2021
At the beginning of the year
729
770
Interest income
7
6
Return on assets, excluding amounts included in the net interest
 
expense
-1
95
Payment to the participants
52
52
Benefits payments and expenses
-18
-20
At the end of the year
770
904
Change in the defined benefit obligation :
As at 31 December
 
(EUR million)
2020
2021
At the beginning of the year
776
837
Service cost
52
52
Interest cost
7
7
Past service cost - vested benefits
3
0
Benefits payments and expenses
-18
-20
Actuarial losses/ (gain)
17
-51
At the end of the year
837
825
The pension liability was determined using the
 
following assumptions :
 
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Proximus Group I
Integrated annual report
 
2021
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237
As at 31 December
 
(EUR million)
2020
2021
 
Discount rate
0.80%
1.05%
Future price inflation
 
1.90%
2.15%
Nominal future salary increase
3,10% - 3,40%
3.30%-3.40%
Nominal future baremic salary increase
3,00%- 3,05%
3.15%-3.30%
Mortality
 
BE Prospective IA/BE
BE Prospective IA/BE
The turnover is considered in the calculation of
 
the pension liability. For statutory employees it is assumed
 
to be zero and for contractual
employees is based on a degressive withdrawal rate based
 
on the age.
 
The pension liability is determined based on the
 
entity’s best estimate of the financial and demographic
 
assumptions which are reviewed
on an annual basis.
 
The duration of the obligation is 14.4 years.
 
Sensitivity analysis
 
Significant actuarial assumptions for the determination of
 
the defined benefit plans obligations are discount rate,
 
inflation and real salary
increase. The sensitivity analysis has been determined based
 
on reasonably possible changes of the respective assumptions,
 
while
holding the other assumptions constant.
 
If the discount rate increases (or decreases) by 0.5%, the
 
estimated impact on the defined benefit obligation
 
would be a decrease (or
increase) by around 7% to 8%.
 
If the inflation rate increases (or decreases) by 0.25%,
 
the defined benefit obligation would increase (or
 
decrease) by around 3%. If the
real salary increases (decreases) by 0.25%, the defined
 
benefit obligation would increase (decrease) by
 
around 5% to 6%.
Plan assets
The assets of the pension plans are detailed as follows:
As at 31 December
 
(EUR million)
2020
2021
 
Equity instruments
45.5%
49.8%
Debt instruments
38.2%
34.8%
Convertible bonds
6.3%
5.2%
Other (property, infrastructure, Private equity funds, insurance deposits)
10.0%
10.2%
The actual return on plan assets is as follows:
As at 31 December
 
(EUR million)
2020
2021
Actual return on plan assets
6
101
 
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Proximus Group I
Integrated annual report
 
2021
I
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The investment strategy of the Pension Fund is defined
 
to optimize the return on investment within strict limits
 
of risk control and taking
into account the profile of the pension obligations.
 
The relatively long duration of the pension obligations
 
(14.4 years) allows to allocate
a reasonable portion of its portfolio to equities. Over
 
the last five years, the pension fund has significantly
 
increased the diversification of
its investment portfolio across asset classes, regions and
 
currencies in order to reduce the overall risk and
 
improve the expected return.
 
At the end of 2021 the portfolio was invested
 
by about 49.8%
 
in listed equities (in Europe, US and Emerging Markets),
 
about 34.8% in
fixed income (government bonds, corporate bonds, and senior
 
loans) and about 5.2% in convertible bonds (World
 
ex US), the remaining
part being invested
 
in European infrastructure, global private equity,
 
European non-listed real estate and cash. The actual
implementation of the investments is outsourced
 
to specialized asset managers.
 
Nearly all investments are done via mutual investment
 
funds. Direct investments amount for less than
 
1% of the assets. Equity
instruments, debt instruments and convertible bonds have
 
quoted prices in active markets. The other assets,
 
amounting for 10.0% of
the portfolio are not quoted. The Pension Fund does
 
not directly invest in Proximus shares or bonds, but
 
it is not excluded that some
Proximus shares, or bonds are included in some of the
 
mutual investment funds in which the pension Funds
 
invests.
The Proximus Pension Fund has taken a proactive approach
 
about the inclusion of ESG criteria in its investment
 
policy. As almost all
investments are made through collective funds managed
 
by external managers, this approach involves
 
an ongoing dialogue with the
managers, inviting them to take these criteria into account.
The Group expects to contribute an amount of EUR
 
50 million to the Proximus Pension Fund in 2022.
 
Other pension plans
The Group also operates another defined benefit plan
 
with a more limited amplitude, being a Defined
 
Benefit Obligation EUR
 
7 million
and plan assets of EUR 6 million resulting in a net
 
liability of EUR 1 million.
The Group operates some plans based on contributions
 
for qualifying employees. For the plans operated
 
abroad, the Group does not
guarantee a minimum return on the contribution.
 
For those operated in Belgium a guaranteed return is
 
provided. All plans (operated in
Belgium and abroad open and closed) are not material
 
at Group level and do not present any net liability
 
material for the Group.
 
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Proximus Group I
Integrated annual report
 
2021
I
239
Note 11.3. Post-employment benefits other than pensions
Historically, the Group grants to its retirees post-employment
 
benefits other than pensions in the form of socio-cultural
 
aid premium,
train tickets and other social benefits including a subsidized
 
hospitalization plan. There are no plan assets for
 
such benefits.
 
The subsidy to the hospitalization plan is based on an
 
indexed fixed amount per beneficiary.
The funded status of the plans is as follows :
As at 31 December
 
(EUR million)
2020
2021
 
Defined Benefit Obligation
368
365
Net liability recognized in the balance sheet
368
365
The components recognized in the income statement
 
and other comprehensive income are as follows
 
:
Year ended 31 December
 
(EUR million)
2020
2021
 
Current service cost - employer
4
4
Interest cost
3
3
Expense recognized in the income statement, before
 
curtailment, settlement and special termination
benefits
 
7
7
Curtailment or settlement loss / (gain) and past service cost
2
0
Recognized in the income statement
9
7
Remeasurements
Actuarial losses from changes in financial assumptions
5
6
Effect of experience adjustments
-4
-1
Recognized in other comprehensive income
1
4
Total
 
10
11
.
The movement in the net liability recognized in the
 
balance sheet is as follows :
As at 31 December
 
(EUR million)
2020
2021
 
At the beginning of the year
371
368
Expense for the period recognized in the income statement
9
7
Remeasurement recognized in other comprehensive income
1
4
Payment to the participants
-13
-14
At the end of the year
368
365
The liability for post-employment benefits
 
other than pensions was determined using following assumptions
 
:
As at 31 December
 
2020
2021
 
 
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Integrated annual report
 
2021
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178
Discount rate
0.75%
1.00%
Future cost trend (index included)
 
1.90%
2.15%
Mortality
 
BE Prospective IA/BE
BE Prospective IA/BE
The liability for post-employment benefits other than pensions
 
is determined based on the entity’s best estimate of
 
the financial and
demographic assumptions which are reviewed on an
 
annual basis.
 
The duration of the obligation is 14.4 years.
Sensitivity analysis
 
Significant actuarial assumptions for the determination of
 
the defined benefit plans obligations are discount rate,
 
inflation, future cost
trend and mortality. The sensitivity analysis has been
 
performed based on reasonably possible changes
 
of the respective assumptions,
while holding the other assumptions constant.
 
If the discount rate increases (or decreases) by 0.5%, the
 
defined benefit obligation would decrease (or increase)
 
by around 7% .
If the future cost trend increases (or decreases) by 1%,
 
the defined benefit obligation would increase (or decrease)
 
by around 13% to
16% and for 0.5% of change by 7%.
If a 1-year age correction would be applied to the mortality
 
tables, the defined benefit obligation would change by
 
around 4% to 5%.
The Group expects
 
to contribute an amount of EUR 16 million to these plans
 
in 2022.
 
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Proximus Group I
Integrated annual report
 
2021
I
241
Note 11.4. Other liabilities
The Group participates in a State Defined Benefit
 
plan. On 31 December 2003, Proximus transferred
 
to the Belgian State its legal
pension obligation for its statutory employees and their
 
survivors, in exchange of a payment of EUR
 
5 Billion to the Belgian State. The
transfer of the statutory pension liability to the Belgian
 
State in 2003 was coupled with an increased
 
employer social security
contribution for civil servants as from 2004 and included
 
an annual compensation mechanism to off-set certain
 
future increases or
decreases in the Belgian State’s obligations as a result
 
of actions taken by Proximus. Following a change
 
in law (Program Law of 25
December 2017),
 
as from 2018, the obligation to off-set stopped for
 
the Belgian State.
 
Note 12. Other non-current assets
 
As at 31 December
(EUR million)
Note
2020
2021
Other derivatives
32.1
4
3
Other financial assets at amortized cost
20
20
Total
24
24
Other financial assets concern LT cash guarantees
 
and LT receivables non- trade.
Note 13. Inventories
 
As at 31 December
 
(EUR million)
2020
2021
Gross
amount
Written off
Net amount
Gross
amount
Written off
Net amount
Raw materials, consumables and spare parts
36
-6
29
46
-6
40
Work in progress and finished goods
19
0
19
20
0
20
Goods purchased for resale
61
-4
58
75
-4
71
Total
116
-10
106
142
-10
132
The gross value of inventory amounts to EUR 142 million
 
and consists mainly of following products:
 
consumer purchased equipment
(63%) and network materials (37%).
The most important subcategory within consumer purchased
 
equipment are smartphones and its related accessories (38%),
 
followed
by equipment for internet and TV at home (decoders (20%),
 
modems (13%), TV's (6%)).
 
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Proximus Group I
Integrated annual report
 
2021
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178
Another part of the consumer purchased equipment stock
 
is intended for the professional market: ICT
 
(14%) and PABX (7%).
Note 14. Trade receivables and contract assets
14.1 Trade receivables
As at 31 December
 
(EUR million)
2020
2021
Trade receivables
868
879
Trade receivables - gross amount
967
977
Loss allowance
-99
-98
Trade receivables are amounts due by customers for
 
goods sold or services performed in the ordinary
 
course of business. Most trade
receivables are non-interest bearing and are usually
 
on 30-90 days terms. For TeleSign most customers
 
have a 30-day term, with few
exceptions which have a 60-day term. Terms are somewhat
 
longer for the receivables of the International
 
Carrier Services segment
(BICS), since major part of its trade receivables relates
 
to other Telco operators. Given the bilateral nature
 
of BICS business, netting
practice is very common, but this process can be quite
 
long. The related netting agreements are not legally
 
enforceable.
 
BICS business being rather volatile, therefore when analysing
 
variances in the cashflow those related to
 
trade receivables and trade
payables should be considered together.
For the Domestic business, the netting payment is also
 
applied with some other telecom operators.
For the years presented, no trade receivables were
 
pledged as collaterals. In 2021, Proximus Group received
 
bank and parent
guarantees of EUR 2 million (in 2020, EUR 2 million)
 
as securities for the payment of outstanding
 
invoices.
 
14.2 Contract assets
 
As at 31 December
 
(EUR million)
2020
2021
Contract assets gross
118
127
Settled within 12 month of the reporting period
86
92
Settled after 12 month of the reporting period
32
35
Loss allowance
-7
-7
Contract assets net
111
120
 
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Proximus Group I
Integrated annual report
 
2021
I
243
The evolution of the gross amount of the contract
 
assets during the year, can be explained as follows
(EUR million)
2020
2021
Balance at 1 Jan
103
118
Decrease in contract assets relating to existing
contracts in the opening balance
-113
-131
Normal evolution
-98
-112
Anticipated termination
-15
-19
New contract assets
128
140
Balance at 31 Dec
118
127
14.3 Loss allowance on trade receivables and contract assets
The group applies the IFRS 9 simplified approach for
 
measuring the expected credit losses. This approach
 
uses a lifetime expected loss
allowance for all trade receivables and contract assets.
 
To measure the expected credit losses, trade receivables
 
and contract assets of
residential and corporate markets have been grouped based
 
on shared credit risk characteristics and the
 
days past due. The contract
assets relate to a right to consideration in exchange
 
of goods and services that have already transferred
 
and have substantially the
same risk characteristics as the trade receivables for
 
the same types of contracts. The group has therefore
 
concluded that the expected
loss rates for trade receivables of the residential and corporate
 
markets are a reasonable approximation of the loss
 
rates for the
contract assets. These expected loss rates correspond to
 
historical credit losses experienced. The historical loss
 
rates are adjusted to
reflect current and forward-looking information on
 
macroeconomic factors affecting the ability of the customers
 
to settle the
receivables.
The group updated in the course of 2021 the expected
 
credit loss for the outstanding trade receivables
 
in the context of Covid-19
based on the same criteria as in 2020:
 
the sector in which customers operate, the relationship
 
with the customer and their respective
ageing. This update had a very small impact on
 
the bad debt provision.
For the BICS and TeleSign segments
 
expected credit losses for trade receivables have
 
been determined on individual basis considering
different factors determining a credit scoring such as micro
 
and macro-economic criteria as well as credit rating,
 
country risk, customer
history, possible compensation in order to net the risk and
 
other internal and external sources.
 
The analysis of trade receivables that were past
 
due but not impaired is as follows:
As at 31 December
Past due
(EUR million)
Gross
receivables
/ contract
assets
Allowance for
doubtful
debtors
Net
carrying
amount
Not past
due
< 30
days
30-60
days
60-90
days
90-180
days
180-360
days
> 360
days
Trade receivables
2019
1,084
-99
985
569
100
41
29
58
63
126
2020
967
-99
868
512
79
35
21
44
43
133
2021
977
-98
879
519
77
44
26
46
45
123
2021 % loss allowance on trade
receivables
10%
2%
2%
4%
6%
15%
15%
34%
Contract assets
 
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178
Contract assets
127
-7
120
120
2021 % loss allowance on
contract asset
6%
6%
The closing loss allowances for trade receivables and
 
contract assets as at 31 December 2021 reconciles
 
to the opening loss
allowances as follows:
The evolution of the allowance for doubtful debtors
 
is as follows:
(EUR million)
Trade receivables
Contract assets
Total
As at 31 December 2020
99
7
106
Increase in loss allowance through income
statement
26
1
27
Receivables written off as uncollectible
-29
0
-29
Acquisition of subsidiary
2
0
2
Other movements
-1
0
-1
As at 31 December 2021
98
7
105
 
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245
Note 15. Other current assets
 
As at 31 December
 
(EUR million)
2020
2021
VAT receivables
12
7
Derivatives
31.1
0
1
Prepaid expenses
 
113
109
Accrued income
2
2
Other receivables
12
22
Total
139
140
Prepaid expenses are mainly composed of ICT fees
 
(EUR 67 million in 2021 versus EUR 74 million in 2020),
 
renting expenses on real
estate, software and mobile sites (EUR 8 million in 2021
 
versus EUR 11 million in 2020), SAAS contracts
 
(EUR 4 million in 2021 versus
EUR 2 million in 2020), hardware-, software-
 
and infrastructure maintenance expenses (EUR
 
11 million in 2021 versus 11 million in
2020) and consultancy fees (EUR 3 million in 2021 versus
 
2 million in 2020).
Note 16. Investments
 
As at 31 December
 
(EUR million)
Note
2020
2021
Term account at amortized costs
32.4
3
0
Total
3
0
Investments include deposits with an original maturity
 
greater than three months but less than one year.
 
 
Note 17. Cash and cash equivalents
As at 31 December
 
(EUR million)
Note
2020
2021
 
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Term account at amortized costs
32.4
115
10
Cash at bank and in hand
32.4
195
239
Total
310
249
Short-term deposits are made for periods varying between
 
one day and three months, depending on the
 
immediate cash requirements
of the Group, and earn or pay interest at the
 
respective short-term deposit rates. Interest rates applied
 
on cash with banks are floating
as corresponding to the daily bank deposit rates.
The cash and cash equivalents are held with banks
 
and financial institutions counterparties with a high
 
long-term credit rating between
A- and A+ with a minimum of A-. Therefore, the
 
expected credit loss on cash and cash equivalents
 
is deemed immaterial.
Note 18. Equity
Note 18.1 Shareholders’ equity
At 31 December 2021, the share capital of Proximus
 
SA amounted to EUR 1 billion (fully paid up),
 
represented by 338,025,135 shares,
with no par value and all having the same rights,
 
provided such rights are not suspended or cancelled
 
in the case of treasury shares. The
Board of Directors of Proximus SA is entitled to increase
 
the capital for a maximum amount of EUR 200
 
million.
The Company may acquire its own shares and transfer
 
the shares thus acquired in accordance with the
 
provisions of the Commercial
Companies Code. The Board of Directors is empowered by article
 
13 of the Articles of Association to acquire the
 
maximum number of
own shares permitted by law. The price paid for these shares
 
must not be more than five percent above the
 
highest closing price in the
thirty-day trading period preceding the transaction
 
nor more than ten percent below the lowest closing
 
price in that same thirty-day
period. Said authorization is renewed and granted for
 
a period of five years as of 21 April 2021.
 
Proximus SA has a statutory obligation to distribute
 
5% of the parent company income before taxes
 
to its employees. In the
accompanying consolidated financial statements, this profit
 
distribution is accounted for as workforce expenses.
In December 2015, a new law was adopted by the
 
Belgian Parliament with the purpose of modernizing
 
the 1991 Law reforming certain
economic public companies, especially by the flexibility
 
of certain organizational constraints in order to
 
create a level playing field with
competing companies, by aligning the corporate governance
 
to the normal rules for listed companies in
 
Belgium and by defining the
framework for the government to decrease their participation
 
below 50%. The General Shareholders Meeting of
 
2016 decided to
change the bylaws in order to incorporate the amendments
 
made to the 1991 Law.
On 31 December 2021, the number of treasury
 
shares amounts to 15,283,771.
In 2021 and 2020, the Group sold respectively 6,438 and
 
3,092 treasury shares to its senior management for
 
less than EUR 1 million
under share purchase plans at a discount of 16.70%
 
(see note 35).
In 2020, employees exercised 16,583 share options.
 
To honor its obligation in respect of these exercises,
 
Proximus used treasury shares
(see note 35). All share options plans ended in 2020.
Number of shares (including treasury shares):
2020
2021
 
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As at 1 January
338,025,135
338,025,135
As at 31 December
338,025,135
338,025,135
Number of treasury shares:
2020
2021
As at 1 January
15,042,626
15,335,109
Sale under a discounted share purchase plan
-3,092
-6,438
Purchase / (Sale) of treasury shares
312,158
-44,900
Exercice of stock option
-16,583
0
As at 31 December
15,335,109
15,283,771
 
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proximus-2021-12-31p3i2
 
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Integrated annual report
 
2021
I
178
Note 18.2 Non-controlling interests
In accordance with the agreement entered on February 9
th
 
2021 Proximus acquired on 23 February 2021 the
 
42.4% stake from the
minority shareholders of BICS, (MTN 20% and Swisscom
 
22.4%) for a total cash consideration of EUR
 
217 million.
 
As Proximus already controlled BICS before this transaction,
 
this acquisition qualifies as an equity transaction.
 
This means that the
negative difference between (1) the amount by which
 
the non-controlling interests are adjusted, and (2)
 
the fair value of the
consideration paid is deducted directly from the shareholders'
 
equity attributable to the parent.
 
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Proximus Group I
Integrated annual report
 
2021
I
249
Note 19. Interest-bearing liabilities
Note 19.1 Non-current interest-bearing liabilities
As at 31 December
 
(EUR million)
Note
2020
2021
Unsubordinated debt (bonds, notes)
2,104
2,337
Credit institutions
401
401
Other loans
1
0
Total
2,507
2,737
On 22
nd
December 2021, the Group repaid anticipately and without
 
penalty, the EUR 500 million bond maturing on 22
nd
March 2022
with an annual fixed coupon of 0.5%.
On 10
th
 
November 2021, the Group issued its first
 
EUR 750 million Green Bond starting on 17
th
 
November 2021 and maturing on 17
th
November 2036 with an annual fixed coupon of 0.75%.
The Group granted a new 20-year Private Placement Note
 
(under EMTN) of EUR 150 million starting 14
th
 
May 2020 with an annual
fixed coupon of 1.5% with maturity date on 14
th
 
May 2040.
All long-term debt is unsecured. During 2021 and 2020
 
there have been no defaults or breaches on
 
loans payables.
Over the two years presented, an interest rate and
 
currency swaps (IRCS) were used to manage the
 
currency and interest rate exposure
on the JPY unsubordinated debentures. The swaps enabled
 
the Group to transform the interest rate on these
 
debentures which are
fully hedged economically, from a fixed interest rate to
 
a floating interest rate. and converting the remaining liability
 
in JPY into fixed
rate liability in EUR (see note 32).
Unsubordinated debentures in EUR and in JPY are issued
 
by Proximus SA. The capital is repayable in full
 
on the maturity date.
The group used interest rate swaps to mitigate the
 
risk of Interest rate variations between the hedge inception
 
date and the issuance
date of highly probable fixed rate long-term debts.
 
The effective interest rates of the debts concerned
 
by these hedges reflect the
effects of these hedges.
 
Non-current interest-bearing liabilities as
 
at 31 December 2021 are summarised as follows:
Carrying
amount
Nominal amount
Measurement
under IFRS 9
Maturity date
Interest payment
/ repriceable
Interest rate
payable
Effective
interest rate
(EUR million)
(EUR million)
(b)
Unsubordinated debentures
Floating rate borrowings
JPY (a)
11
11
Amortized cost
Dec-26
Semi-annually
-0.72%
-0.72%
Fixed rate borrowings
EUR
150
150
Amortized cost
Mar-28
Annually
3.19%
3.22%
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
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Proximus Group I
Integrated annual report
 
2021
I
178
EUR
100
100
Amortized cost
May-23
Annually
2.26%
2.29%
EUR
599
600
Amortized cost
Apr-24
Annually
2.38%
2.46%
EUR
497
500
Amortized cost
Oct-25
Annually
1.88%
2.05%
EUR
150
150
Amortized cost
May-40
Annually
1.50%
1.52%
EUR
100
100
Amortized cost
Sep-31
Annually
1.75%
1.78%
EUR
730
750
Amortized cost
Nov-36
Annually
0.75%
1.05%
Credit institutions
Fixed rate borrowings
EUR
400
400
Amortized cost
Mar-28
Annually
1.23%
1.04%
EUR
1
1
Amortized cost
Oct-23
Monthly
0.60%
0.60%
Total
2,737
2,762
(a) converted into a floating rate borrowing in
 
EUR via currency interest rate swap
(b) for floating rate borrowings, interest rate is
 
the one prevailing at the last repricing
 
date before 31 December 2021
(c) average duration
(d) monthly, quarterly, half yearly, yearly
Non-current interest-bearing liabilities as
 
at 31 December 2020 are summarized as follows:
Carrying
amount
Nominal
amount
Measurement
under IFRS 9
Maturity date
Interest
payment /
repriceable
Interest rate
payable
Effective
interest rate
(EUR million)
(EUR million)
(b)
Unsubordinated debentures
Floating rate borrowings
JPY (a)
12
11
Amortized cost
Dec-26
Semi-annually
-0.70%
-0.70%
Fixed rate borrowings
EUR
150
150
Amortized cost
Mar-28
Annually
3.19%
3.22%
EUR
100
100
Amortized cost
May-23
Annually
2.26%
2.29%
EUR
598
600
Amortized cost
Apr-24
Annually
2.38%
2.46%
EUR
496
500
Amortized cost
Oct-25
Annually
1.88%
2.05%
EUR
499
500
Amortized cost
Mar-22
Annually
0.50%
0.34%
EUR
149
150
Amortized cost
May-40
Annually
1.50%
1.52%
EUR
100
100
Amortized cost
Sep-31
Annually
1.75%
1.78%
Credit institutions
Fixed rate borrowings
EUR
400
400
Amortized cost
Mar-28
Annually
1.23%
1.04%
EUR
1
1
Amortized cost
Oct-23
Monthly
0.60%
0.60%
Other loans
EUR
1
1
Amortized cost
2024
Different
patterns (d)
0%-6%
0%-6%
Total
2,507
2,514
(a) converted into a floating rate borrowing in
 
EUR via currency interest rate swap
(b) for floating rate borrowings, interest rate is
 
the one prevailing at the last repricing
 
date before 31 December 2020
(c) average duration
(d) monthly, quarterly, half yearly, yearly
 
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Proximus Group I
Integrated annual report
 
2021
I
251
Note 19.2 Current interest-bearing liabilities
As at 31 December
 
(EUR million)
2020
2021
Current portion of amounts payable > 1 year
Credit institutions
1
1
Credit institutions
0
150
Unsubordinated debt (bonds, notes)
150
100
Other loans
12
1
Total
163
252
The tables below detail the current portion of the unsubordinated
 
debentures maturing within one year.
Current interest-bearing liabilities as at 31 December
 
2021 are summarized as follows:
Carrying
amount
Nominal amount
Measurement
under IFRS 9
Maturity date
Interest payment
/ repriceable
Interest rate
payable
Effective
interest rate
(EUR million)
(EUR million)
Current portion of interest-bearing-liabilities
 
> 1 year
Credit institutions
Fixed rate borrowings
EUR
1
1
Amortized cost
Dec-22
Monthly
0.60%
0.60%
Unsubordinated debt (bonds, notes)
Fixed rate borrowings
EUR
100
100
Amortized cost
Jan-22
At inception
0.60%
0.60%
Credit institutions
Fixed rate borrowings
EUR
150
150
Amortized cost
Jan-22
Annually
0.61%
0.61%
Other loans
Fixed rate borrowings
EUR
1
1
Amortized cost
Jan-22
Annually
0.00%
0.00%
Total
252
252
(a) monthly, quarterly, half yearly, yearly
Current interest-bearing liabilities as at 31 December
 
2020 are summarised as follows:
Carrying
amount
Nominal
amount
Measurement
under IFRS 9
Maturity date
Interest
payment /
repriceable
Interest rate
payable
Effective
interest rate
(EUR million)
(EUR million)
Current portion of interest-bearing-liabilities
 
> 1 year
Credit institutions
Fixed rate borrowings
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
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Proximus Group I
Integrated annual report
 
2021
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178
EUR
1
1
Amortized cost
Monthly
0.60%
0.60%
Unsubordinated debt (bonds, notes)
Fixed rate borrowings
EUR
150
150
Amortized cost
Feb-21
At inception
-0.40%
-0.40%
Other loans
Fixed rate borrowings
EUR
12
12
Amortized cost
Jan-21
0.43%
0.43%
Total
163
163
(a) monthly, quarterly, half yearly, yearly
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
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Proximus Group I
Integrated annual report
 
2021
I
253
Note 19.3 Information about the Group financing activities related to interest bearing
liabilities
As at 31
December
 
Cash flow
issuance
Cash flow
repayments
Non-cash
changes
As at 31
December
 
(EUR million)
2020
2021
Long-term
 
Unsubordinated debt (bonds, notes)
2,104
730
0
-498
2,337
Credit institutions
401
0
-1
0
401
Other loans
1
0
-1
0
0
Derivatives held for trading
4
0
0
-1
3
Current portion of amounts payable > one year
Unsubordinated debt (bonds, notes)
0
0
-500
500
0
Credit institutions held to maturity
1
0
0
0
1
Other current interest bearing liabilities
Credit institutions
0
150
0
0
150
Unsubordinated debt (bonds, notes)
150
100
-150
0
100
Other loans
12
0
-11
0
1
Total liabilities from financing activities excluding
lease liabilities
2,673
980
-663
1
2,992
Lease liabilities current and non current
284
0
-79
68
273
Total liabilities from financing activities including
lease liabilities
2,957
980
-742
69
3,265
As at 31
December
 
Cash flow
issuance
Cash flow
repayments
Non-cash
changes
As at 31
December
 
(EUR million)
2019
2020
Long-term
 
Unsubordinated debt (bonds, notes)
1,953
149
0
2
2,104
Credit institutions
402
0
-1
0
401
Other loans
0
1
0
0
1
Derivatives held for trading
5
0
0
-1
4
Current portion of amounts payable > one year
Credit institutions held to maturity
1
0
0
0
1
Other current interest bearing liabilities
Unsubordinated debt (bonds, notes)
156
-6
0
0
150
Other loans
0
12
0
0
12
Total liabilities from financing activities excluding
lease liabilities
2,517
157
-1
1
2,673
Lease liabilities current and non current
307
0
-82
59
284
 
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Proximus Group I
Integrated annual report
 
2021
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178
Total liabilities from financing activities including
lease liabilities
2,824
157
-82
60
2,957
The non-cash changes refer to the transfer of the
 
EUR 500 million bond, repaid anticipately in December 2021
 
(see note 19.1), from
non-current to current and the remeasurement to fair
 
value of the embedded derivative related but separated
 
from the long-term debt
expressed in JPY, its host contract.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
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255
Note 20. Provisions
(EUR million)
Workers' accidents
Litigation
Illness days
Dismantling pylons
Other risks
Total
As at 1 January 2020
29
19
17
39
34
137
Additions
 
0
9
0
6
3
18
Utilisations
 
-2
-1
0
0
-6
-9
Withdrawals
0
-4
-1
0
-2
-7
Unwinding
1
0
0
0
0
1
As at 31 December 2020
28
23
16
45
28
139
Additions
 
0
20
0
0
5
25
Utilisations
 
-3
-2
0
0
-1
-6
Withdrawals
0
-6
-1
0
0
-7
Unwinding
1
1
0
0
0
2
As at 31 December 2021
26
36
15
44
32
153
The provision for workers’ accidents relates to compensation
 
that Proximus SA should pay to members of personnel
 
injured (including
professional illness) when performing their job and
 
on their way to work. Until 31 December 2002,
 
according to the law of 1967 (public
sector) on labour accidents, compensation was funded
 
and paid directly by Proximus. This provision (annuities
 
part) is based on actuarial
data including mortality tables, compensation ratios,
 
interest rates and other factors defined by the law
 
of 1967 and calculated with the
support of a professional insurer. Considering the mortality
 
table, it is expected that most of these costs
 
will be paid out until 2062. As
from 1 January 2003, contractual employees are subject
 
to the law of 1971 (private sector) and statutory employees
 
remain subject to
the law of 1967 (public sector). For both the contractual
 
and statutory employees, Proximus is covered
 
as from 1 January 2003 by
insurance policies for workers’ accidents and therefore
 
will not directly pay members of personnel.
The provision for litigation represents management’s
 
best estimate for probable losses due to
 
pending litigation where the Group has
been sued by a third party or is subject to a judicial
 
dispute. The expected timing of the related cash outflows
 
depends on the progress
and duration of the underlying judicial procedures. The addition
 
of 2021 to the provisions for litigations mainly
 
relates to supplier claims.
The provision for illness days represents management’s
 
best estimate of probable charges related to the granting
 
by Proximus of
accumulating non-vesting illness days to its statutory
 
employees.
The provision for dismantling of pylons includes the
 
expected costs for dismantling and restoration of
 
the sites on which the antennas
are located. It is expected that most of these costs
 
will be paid during the period 2022-2050. The provision
 
for restoration costs is
estimated at current prices and discounted using a
 
discount rate of 1.05% based on the expected
 
timing to settle the obligation.
The provision for other risks includes mainly the environmental
 
risks and sundry risks.
Note 21. Other non-current payables
As at 31 December
 
(EUR million)
2020
2021
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
178
Other non-current payables -trade
95
98
Other non-current payables- non
 
trade
7
5
Total
102
102
All other non-current payables are non-interest-bearing
 
liabilities.
Non-current payables-trade include licenses (see note
 
4), broadcasting and content rights payable over the
 
part of the contract
duration that is more than one year (mostly less
 
than 5 years).
 
Non-current payables – non trade include the embedded
 
derivative related but separated from the long-term debt
 
expressed in JPY, its
host contract (see Derivatives in note 2). Figures as
 
at 31 December 2020 were restated to include
 
this liability, which was previously
classified under the interest bearing non-current liabilities.
Note 22. Other current payables
As at 31 December
 
(EUR million)
2020
2021
VAT payables
6
6
Payables to employees
115
113
Accrual for holiday pay
77
87
Accrual for social security contributions
45
46
Advances received on contracts
9
8
Other taxes
102
108
Deferred income
4
2
Accrued expenses
27
25
Other debts
30
37
Subtotal Other current payables
416
432
Contract Liability
157
135
Total
573
567
Contract liabilities comprise the Group’s obligation to transfer
 
goods or services in the future to a customer
 
for which the Group has
received consideration from the customer or the amount
 
is due.
The decrease of this caption in 2021 compared to 2020
 
was due to:
Business decrease for MediaMobile and BICS (less customers
 
entering in long term capacity contracts).
Ending of ICT contracts and renegotiations of these
 
contracts in 2022.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proximus Group I
Integrated annual report
 
2021
I
257
Note 23. Net revenue
Net revenue corresponds to the revenue from contracts
 
with customers. The group derives revenue from
 
the transfer of goods and
services over time and at a point in time as follows:
As at 31 December
(EUR million)
2020
2021
Net revenue recognized at one point in time
542
560
Net revenue recognized over time
4,901
4,977
Total
5,443
5,537
The disaggregation of net revenue is based on types of
 
goods and services delivered and market and type
 
of customers as follows:
As at 31 December
(EUR million)
2020
2021
Domestic
Consumer
Customer services revenues (X-play)
2,203
2,188
Prepaid
42
35
Terminals
 
235
247
Lux. Telco (1)
116
125
Other
52
98
Total Consumer
2,648
2,692
Enterprise
Telecom Revenue
758
769
ICT (2)
541
536
Advanced Business Services (3)
39
37
Other Products
6
10
Total Enterprise
1,344
1,352
Wholesale
Fixed & Mobile wholesale services
126
120
Interconnect (4)
187
164
Total Wholesale
313
284
Other
9
4
Total Domestic
4,313
4,333
BICS
962
997
TeleSign
273
326
Eliminations
-105
-120
Total Net Revenue
5,443
5,537
(1) Lux. Telco: including fixed & mobile services, terminals & other
2) ICT: Information and Communications Technology (ICT) is an extended term for information technology (IT) which stresses the role of unified communications and the
integration of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual
systems, which enable users to access, store, transmit, and manipulate information. Proximus’ ICT solutions include, but are not limited to, Security, Cloud, “Network & Unified
Communication”, “Enterprise Mobility Management” and “Servicing and Sourcing”.
(3) Advanced Business services: new solutions offered aside from traditional Telecom and ICT, such as Road User Charging, converging solutions, Big Data and smart mobility
solutions.
(4) Wholesale Interconnect: the process of connecting an operator network with another operator network. This then allows the customers of one operator to communicate
with the customers of another operator.
 
Interconnect includes fixed voice, mobile voice and mobile SMS/MMS services.
The following table presents the transaction price assigned
 
to unfulfilled performance obligations at December
 
31, 2021. Unfulfilled
performance obligations are the services that the Group
 
is obliged to provide to customers during the remaining
 
fixed term of the
contract and consideration received from customers
 
before satisfying performance obligations such as
 
advances for airtime.
Expected timing of recognition
(EUR million)
2022
2023
> 2024
 
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Transaction price allocated to performance
 
obligations that are unsatisfied at reporting
date
169
54
39
 
 
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Note 24. Other operating income
As at 31 December
(EUR million)
2020
2021
Gain on disposal of intangible assets and property, plant and equipment
3
1
Gain on disposal of financial fixed assets
0
0
Miscellaneous reinvoicing and recovery of expenditures
31
36
Other income
4
4
Total
38
42
“Miscellaneous reinvoicing and recovery expenditures “includes
 
compensation for network damage by third parties (EUR
 
9 million in
2021 and EUR 9 million in 2020) as well as employee and
 
third-party contributions for sundry services.
Increase of EUR 5 million in 2021 compared to
 
2020 is mainly due to the refund of the insurance
 
company linked to the water damage
of July 2021 for EUR 7 million.
Note 25. Costs of materials and services related to revenue
As at 31 December
(EUR million)
2020
2021
Purchases of materials
421
444
Purchases of services
1,480
1,554
Total
1,901
1,997
Goods and services directly related to revenue are external
 
variable costs incurred in the context of a sales
 
transaction, and that
changes in proportion to sales. In the Proximus Group,
 
it mainly includes traffic expenses (interconnection
 
costs, termination costs…) ,
subscriber acquisition and retention costs, external costs directly
 
related to ICT contracts such as equipment,
 
maintenance, vendor
support being recharged to the customers and costs related
 
to Proximus TV such as content costs and variable broadcasting
 
rights. It
includes also cost of goods and work in progress being
 
invoiced to customers.
Purchases of materials are shown net of work performed
 
by the enterprise that is capitalized for an amount
 
of EUR 63 million in 2021
and of EUR 64 million in 2020.
 
It includes mainly modems and set up boxes installed
 
on client premises.
Note 26. Workforce expenses
 
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178
As at 31 December
(EUR million)
2020
2021
Salaries and wages
648
661
Social security expenses
166
162
Pension costs
 
55
51
Post-employment benefits other than pensions and termination benefits
-24
3
External Workforce
218
256
Other workforce expenses
 
65
66
Total
1,128
1,200
Workforce expenses are expenses related to own employees
 
as well as to external working parties (included in
 
other workforce
expenses).
 
Salaries and wages and social security expenses are shown
 
net of work performed by the enterprise that is capitalized
 
for an amount of
EUR 119 million in 2020 and EUR 128 million in 2021.
Post-employment benefits other than pensions and termination
 
benefits includes the impact of the FFP transformation
 
plan (2020
EUR -27 million,
 
2021 EUR 1 million)
 
and other termination benefits (2020 EUR -3 million,
 
2021 EUR 1 million). It also includes the
current service cost and past service cost of other
 
post-
 
employment benefits (2020 EUR 6 million, 2021
 
4 million EUR).
 
External workforce expenses include consultancy and
 
outsourcing costs.
Other workforce expenses include costs relating to internal
 
workforce (such as meal vouchers, social activities,
 
workers accident
insurance, train tickets for actives).
Note 27. Non-Workforce expenses
As at 31 December
(EUR million)
2020
2021
Service and capacity contracts and non lease components of renting contracts
40
43
Maintenance and utilities
166
170
Advertising and public relations
71
86
Administration,
 
training, studies and fees
130
137
Telecommunications, postage costs and office equipment
29
28
Loss allowance
33
26
Taxes other than income taxes
26
28
Other Non-Workforce expenses
 
36
35
Total
530
554
 
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Taxes other than income tax: Tax on pylons
 
In 2020 there were both positive and negative
 
evolutions in case law which resulted in a review
 
of the provisions with a limited net
impact. In 2021, there are no material changes
 
in case law. The position as recognized in the Financial
 
Statements reflects
management’s best estimate of the probable final
 
outcome.
 
Note 28. Depreciation and amortization
 
As at 31 December
(EUR million)
2020
2021
Amortization of licenses and other intangible assets
456
489
Depreciation of property, plant and equipment
579
614
Depreciation of right of use
82
80
Total
1,116
1,183
 
 
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Note 29. Net finance cost
 
As at 31 December
(EUR million)
2020
2021
Finance income
Interest income on financial instruments
At amortized costs
2
2
Fair value adjustments of financial instruments
Not in a hedge relationship - FVTPL
6
0
Other finance income
1
2
Finance costs
Interests and debt charges on financial instruments at amortized costs
Unsubordinated debentures
-42
-43
Lease interests
-3
-2
Short term debt
-1
0
Long term payables
-2
-4
Discounting charges
On pensions and other post-employment benefits
-4
-4
Fair value adjustments of financial instruments
Not in a hedge relationship - FVTPL
0
-2
Other finance costs
-4
-2
Total
-48
-54
The remeasurement to fair value of the liability relating
 
to the put option granted to the former owners
 
of Be-Mobile on their own
shares led to a gain of EUR 6 million in 2020. In 2021,
 
this remeasurement led to a loss of EUR 2
 
million.
Note 30. Earnings per share
Basic earnings per share are calculated by dividing
 
the net income for the year attributable to ordinary
 
shareholders by the weighted
average number of ordinary shares outstanding during
 
the year.
Diluted earnings per share is calculated by dividing
 
the net income for the year attributable to ordinary
 
shareholders, by the weighted
average number of ordinary shares outstanding during
 
the year, both adjusted for the effects of
 
dilutive potential ordinary shares.
The following table reflects the income and share
 
data used in the computation of basic and diluted earnings
 
per share.
As at 31 December
2020
2021
Net income attributable to ordinary shareholders (EUR million)
564
443
 
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Adjusted net income for calculating diluted earnings per share (EUR million)
564
443
Weighted average number of outstanding ordinary shares
322,752,015
322,751,990
Adjustment for share options
3,742
0
Weighted average number of outstanding ordinary shares for diluted earnings
 
per share
322,755,758
322,751,990
Basic earnings per share (EUR)
1.75
1.37
Diluted earnings per share (EUR)
1.75
1.37
In 2020, all stock options granted were dilutive and hence
 
included in the calculation of diluted earnings
 
per share. All stock option plans
were closed in 2021. The sale of shares to the company
 
management under share purchase plans at a
 
discount of 16.70%
 
had a
dilutive effect, but this was insignificant in 2021 and 2020.
 
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Note 31. Dividends paid and proposed
2020
2021
Dividends on ordinary shares:
Proposed dividends (EUR million)
387
387
Number of outstanding shares with dividend rights
322,690,026
322,741,364
Dividend per share (EUR)
1.2
1.2
Interim dividend paid to the shareholders (EUR million)
161
161
Interim dividend per share (EUR)
0.5
0.5
The proposed dividends for 2020 have been effectively paid
 
in April 2021. The interim dividends for 2021
 
have been paid in December
2021.
Note 32. Additional disclosures on financial instruments
Note 32.1. Derivatives
The Group makes use of derivatives such as interest
 
rate swaps (IRS), interest rate and currency swaps
 
(IRCS), forward foreign
exchange contracts and currency options.
 
(EUR million)
Note
2020
2021
Non-current assets
Derivatives held for trading
12
4
3
Current assets
Derivatives held for trading
15
0
1
Total assets
4
4
Non-current liabilities
Derivatives held for trading
21
4
3
Current liabilities
Derivatives held for trading
22
0
1
Total liabilities
4
3
The tables below show the positive and negative
 
fair value of derivatives, included in the balance sheet
 
respectively as current/non-
current assets or liabilities.
As at 31 December 2021
Fair value
 
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265
(EUR million)
Asset
Liability
Interest rate and currency swaps
3
0
Interests and currency related - other derivatives
0
-3
Forward foreign exchange contracts
1
-1
Derivatives not qualifying for hedge accounting
4
-3
As at 31 December 2020
Fair value
(EUR million)
Asset
Liability
Interest rate and currency swaps
4
0
Interests and currency related - other derivatives
0
-4
Derivatives not qualifying for hedge accounting
4
-4
Interest rate and currency swaps (IRCS) are used
 
to manage the currency and interest rate exposure
 
on outstanding JPY 1.5 billion
unsubordinated debentures (see note 18).
 
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Note 32.2. Financial risk management objectives and policies
The Group’s main financial instruments comprise unsubordinated
 
debentures, trade receivables and trade payables.
 
The main risks
arising from the Group’s use of financial instruments are
 
interest rate risk, foreign currency risk, liquidity risk
 
and credit risk.
All financial activities are subject to the principle of
 
risk minimization. To achieve this, all matters related
 
to funding, foreign exchange,
interest rate and counterparty risk management are handled
 
by a centralized Group Treasury department. Simulations
 
are performed
using different market (including worst case) scenarios with
 
a view to estimating the effects of varying
 
market conditions. All financial
transactions and financial risk positions are managed and
 
monitored in a centralized treasury management
 
system.
Group Treasury operations are conducted within a framework
 
of policies and guidelines approved by the
 
Executive Committee and the
Board of Directors. Group Treasury is responsible for implementing
 
these policies. According to the policies, derivatives
 
are used to
hedge interest rate and currency exposures. Derivatives are
 
used exclusively as hedging instruments, i.e., not
 
for trading or other
speculative purposes. Derivatives used by the Group mainly
 
include forward exchange contracts, interest rate swaps
 
and currency
options.
The table below provides a reconciliation of changes
 
in equity and statement of OCI by hedge type for
 
2021
(EUR million)
Note
Transfer to profit or loss for
the period
Interest rate swap instruments
OCI
-13
Amortization of cumulated remeasurements of settled interest
 
rate swap
 
OCI
2
Changes in other comprehensive income in relation
 
with cash flow hedges
-11
The Group’s internal auditors regularly review the internal
 
control environment at Group Treasury.
 
Interest rate risk
The Group’s exposure to changing market interest rates
 
primarily relates to its long-term financial obligations. Group
 
Treasury manages
exposure of the Group to changes in interest rates and
 
the overall cost of financing by using a mix of
 
fixed and variable rate debts, in
accordance with the Group’s financial risk management
 
policies. The aim of such policies is to achieve
 
an optimal balance between total
cost of funding, risk minimization and avoidance of
 
volatility in financial results, whilst considering market
 
conditions and opportunities as
well as overall business strategy.
 
The tables below summarize the non-current interest-bearing
 
liabilities (including their current portions, excluding
 
leasing and similar
obligations) per currency, the interest rate and currency
 
swap agreements (IRCS), and the net obligations
 
of the Group at 31 December
2021 and 2020.
As at 31 December 2021
Direct borrowing
IRCS agreements
Net obligations
Notional
amount
Weighted
average
interest rate
(1)
Average
time to
maturity
Amount
payable
(receivable)
Weighted
average
interest rate
(1)
Average time
to maturity
Amount
payable
(receivable)
Weighted
average
interest rate
(1)
Average
time to
maturity
(EUR million)
(in years)
(EUR million)
(in years)
(EUR million)
(in years)
 
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Integrated annual report
 
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I
267
EUR
Fixed
2,750
1.42%
8
2,750
1.42%
8
Variable
11
-0.72%
4.96
11
-0.72%
5
JPY
Fixed
11
5.04%
5
-11
-5.04%
4.96
Total
2,761
1.43%
8
0
2,761
1.41%
8
(1) Weighted average interest rate taking into account last repriced interest rates
 
for floating borrowings.
As at 31 December 2020
Direct borrowing
IRCS agreements
Net
 
obligations
Notional
amount
Weighted
average
interest rate
(1)
Average
time to
maturity
Amount
payable
(receivable)
Weighted
average
interest rate
(1)
Average time
to maturity
Amount
payable
(receivable)
Weighted
average
interest rate
(1)
Average
time to
maturity
(EUR million)
(in years)
(EUR million)
(in years)
(EUR million)
(in years)
EUR
Fixed
2,500
1.72%
5
2,500
1.77%
5
Variable
11
-0.70%
6
11
-0.70%
6
JPY
Fixed
11
5.04%
6
-11
-5.04%
6
Total
2,511
1.73%
5
0
2,511
1.70%
5
(1) Weighted average interest rate taking into account last repriced interest rates
 
for floating borrowings.
On June 29, 2021 the Group entered into an interest
 
rate swap to hedge its exposure to the variability in cash
 
flows attributable to the
long-term interest rate risk associated with the issuance of
 
a highly probable fixed rate long-term debt of
 
EUR 750 million, expected to
be issued in November 2021 and which effectively
 
materialized on November 10, 2021 for that amount.
 
The hedge, for a nominal
amount of EUR 600 million fixed at 0.44%, was unwound
 
at that date and resulted in the payment of
 
an amount of EUR 12.9 million to
the hedge counterparties.
Foreign currency risk
The Group’s main currency exposures result from its operating
 
activities. Such exposure arises from sales or purchases
 
by operating
units in currencies other than euro. Transactions in
 
currencies other than euro mainly occur in the
 
International Carrier Services (“BICS”)
segment, even more so following the acquisition of
 
TeleSign. Indeed, international carrier activities generate
 
payments to and receipts
from other telecommunications operators in various foreign
 
currencies. Next to these, Proximus as well as a
 
number of its affiliates also
engage in international activities (ICT, roaming, capital and
 
operating expenditure) giving rise to currency
 
exposures.
Risks from foreign currencies are hedged to the extent
 
that they are liable to influence the Group’s cash
 
flows. Foreign currency risks
that do not influence the Group’s cash flows (i.e., the
 
risks resulting from the translation of assets
 
and liabilities of foreign operations into
the Group’s reporting currency) as a rule are not hedged.
 
However, the Group could envisage hedging such
 
so-called translation
differences should their potential impact become material
 
to the Group’s consolidated financial statements.
The typical financial instruments used to hedge foreign
 
currency risk are forward foreign exchange contracts
 
and currency options.
In 2021 and 2020, the Group only incurred currency
 
exposures relative to its operating activities. Foreign
 
currency transactions are
recognized in functional currency on initial recognition
 
at the foreign exchange rate prevailing at the date
 
of the transaction. Monetary
 
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178
assets and liabilities denominated in foreign currencies
 
are translated into the functional currency at balance
 
sheet date using the
exchange rate at that date. The net exchange
 
difference on the translation of these monetary
 
assets and liabilities are recorded via the
income statement. However, in a limited number of
 
cases, hedge accounting has been applied, the
 
effective portion of the gains and
losses on the hedging instrument is recognized via
 
other comprehensive income until the hedged item
 
occurs. If the hedged transaction
leads to the recognition of an asset, the carrying amount
 
of the asset at the time of initial recognition
 
incorporates the amount
previously recognized via other comprehensive income. The
 
ineffective portion of a cash flow hedge is always recognized
 
in profit or
loss.
The Group performed a sensitivity analysis on the exchange
 
rates EUR/USD, EUR/GBP, EUR/GBP, EUR/CHF, EUR/CDR,
 
EUR/ZAR,
EUR/AUD and EUR/HKD, currency pairs to which it is exposed
 
in its operating activities, for the year 2021.
Foreign currency
Group's net position
as at 31/12/2021
(In KEUR)
Effect in P&L (in EUR) if foreign currency against
 
EUR moves by :
Closing rate
(in EUR)
-15.0%
-10.0%
-5%
-2.5%
2.5%
5%
10%
15%
1 EUR = xxx
(In KEUR)
-4,640
USD
615
410
205
102
-102
-205
-410
-615
1.13
-318
GBP
57
38
19
9
-9
-19
-38
-57
0.84
-672
CHF
98
65
33
16
-16
-33
-65
-98
1.03
696
SDR
-129
-86
-43
-22
22
43
86
129
0.81
4,459
ZAR
-37
-25
-12
-6
6
12
25
37
18.06
925
AUD
-89
-59
-30
-15
15
30
59
89
1.56
2,189
HKD
-37
-25
-12
-6
6
12
25
37
8.83
Total
476
318
159
79
-79
-159
-318
-476
Notes :
 
+15% means when foreign currency wins 15% vs. EUR
-15% means when foreign currency loses 15% vs.
 
EUR
 
A positive sign means a profit in P&L
A negative sign means a loss in P&L
Credit risk and significant concentrations of credit risk
 
Credit risk is the risk of financial loss to the Group if
 
a customer or counterparty to a financial instrument
 
fails to meet its contractual
obligations.
 
Credit risk encompasses all forms of counterparty exposure,
 
i.e. where counterparties may default on their obligations
 
to Proximus in
relation to lending, hedging, settlement and other financial
 
activities.
 
The Group’s maximum exposure to credit risk (not taking
 
into account the value of any collateral or
 
other security held) in the event the
counterparties fail to perform their obligations in relation
 
to each class of recognized financial assets,
 
including derivatives with positive
market value, is the carrying amount of those assets
 
in the balance sheet and bank guarantees granted.
To reduce the credit risk in respect of financing activities
 
and cash management of the Group, transactions
 
are only entered into with
leading financial institutions whose long-term credit
 
ratings equal at least A- (S&P).
 
The Group applies the IFRS 9 simplified approach
 
for measuring the expected credit losses for
 
trade receivables and contract assets,
meaning the lifetime expected credit loss. The determination
 
of this loss allowance might be at portfolio
 
or individual level, depending
on the assessed risk related to the customer.
 
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Credit risk on operating activities with significant clients
 
is managed and controlled on an individualized
 
basis. When needed, the Group
requests additional collaterals. These significant customers
 
are however not material to the Group, since
 
the client portfolio of the
Group is mainly composed of a large number of
 
small customers. Hence, credit risk and concentration
 
of credit risk on trade receivables
is limited. For amounts receivable from other telecommunication
 
companies, the concentration of credit risk is also
 
limited due to
netting agreements (see note 14.3) with accounts
 
payable to these companies, prepayment obligations,
 
bank guarantees, parent
guarantees and the use of credit limits obtained via
 
credit insurance.
 
The Group is exposed to credit loss in the event of
 
non-performance by counterparty on short-term bank
 
deposits and financial
derivatives (see note 32.1). However, the Group does not
 
anticipate non-performance by any of these counterparties,
 
seeing it only
deals with prime financial institutions, makes very limited
 
use of derivatives on debt instruments as shown
 
in table 32.1, and, as a rule,
only invests in highly liquid and short-term securities
 
(mainly cash and cash equivalents), for which,
 
seen the excellent rating of the
counterparts, the Group do not calculate loss allowances
 
provisions.
Moreover, the Group monitors potential changes in
 
credit risk on counterparties by tracking their external
 
credit ratings on an ongoing
basis as well as evolutions in its bank’s credit default
 
swap rates (a leading indicator often anticipating on
 
future rating changes).
In addition, the Group is exposed to credit risk by
 
occasionally granting non-recourse bank guarantees in
 
favor of some of its institutional
or governmental clients. At 31 December 2021, it had
 
granted bank guarantees for an amount of
 
EUR 49 million and EUR 57 million at
31 December 2020.
Finally, the Group has not pledged any financial assets,
 
nor does it hold any collateral against any of
 
its counterparties.
Liquidity risk
In accordance with the treasury policy, Group Treasury
 
manages its overall cost of financing by using a
 
mix of fixed and variable rate
debts.
 
A liquidity reserve in the form of credit lines and cash
 
is maintained to guarantee the solvency and financial
 
flexibility of the Group at all
times. For this purpose, Proximus entered into committed
 
bilateral credit agreements with different maturities
 
and into a committed
sustainable linked Syndicated Revolving Facilities for a
 
total amount of EUR 751 million. For medium to
 
long-term funding, the Group
uses bonds and medium-term notes. The maturity
 
profile of the debt portfolio is spread over several
 
years. Group Treasury frequently
assesses its funding resources considering its own
 
credit rating and general market conditions.
The table below summarizes the maturity profile of
 
the Group’s leasing and interests bearing liabilities,
 
derivatives excluded, as
disclosed on note 19 at each reporting date.
 
This maturity profile is based on contractual undiscounted
 
interest payments and capital
reimbursements and takes into account the impact on
 
cash flows of interest rate derivatives used to
 
convert fixed interest rate liabilities
into floating interest rate liabilities and vice versa. For
 
floating rate liabilities, interest rates used to determine
 
cash outflows are the ones
prevailing at their last price fixing date before reporting
 
date (as of 31 December 2021 and 2020, respectively).
The cash outflows expected in 2021 for the reporting
 
year 2020 and the cash outflows expected in 2022
 
for the reporting year 2021
are impacted by Proximus short term commercial papers
 
and treasury loans.
(EUR million)
2021
2022
2023
2024
2025
2026-2048
As at 1 January 2021
Capital
 
163
502
101
600
500
811
Interests
43
43
40
38
24
74
Total
206
545
141
638
524
885
As at 31 December 2021
 
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Capital
 
252
101
600
500
1,550
Interests
46
46
44
29
147
Total
297
146
644
529
1,697
Bank credit facilities at 31 December 2021
In addition to the interest-bearing liabilities disclosed
 
in notes 19.1 and 19.2, the Group is backed
 
by committed credit facilities of EUR
751 million. These facilities are provided by a diversified
 
group of Belgian and international banks. As at
 
31 December 2021, there were
no outstanding balances under any of these facilities.
 
A total of EUR 751 million of credit lines was
 
therefore available for drawdown as
at 31 December 2021.
 
The Group also uses a EUR 3.5 billion Euro Medium-term
 
Note (“EMTN”) Program and a EUR 1 billion
 
Commercial Paper (“CP”)
Program. As at 31 December 2021, there was an
 
outstanding balance under the EMTN Program of
 
EUR 2,350 million, whereas the CP
Program showed a drawn and outstanding amount of
 
EUR 100 million.
 
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Note 32.3. Net financial position of the Group and capital management
The Group defines the net financial position as the
 
net amount of investments, cash and cash
 
equivalents minus any interest-bearing
financial liabilities and related derivatives, including re-measurement
 
to fair value and lease liabilities. The net financial
 
position does not
include non-current trade payables.
Adjusted Net Financial Position refers to the total interest-bearing
 
debt (short term + long term) minus cash and cash
 
equivalents,
excluding lease liabilities.
As at 31 December
 
As at 31 December
 
(EUR million)
Note
2020
2021
Investments, Cash and cash equivalents
16 / 17
313
249
Derivatives
12
4
3
Assets
318
252
Non-current liabilities (*)
19.1
-2,727
-2,944
Current liabilities (*)
19.2
-230
-321
Liabilities
-2,957
-3,265
Net financial position (*)
-2,639
-3,013
Of which Leasing liabilities
-284
273
Adjusted financial position (**)
-2,356
-2,740
(*) Including derivatives and leasing liabilities
(**) The adjusted financial position excludes leasing liabilities
The purpose of the Group’s capital management is to
 
maintain net financial debt and equity ratios that always
 
allow for security of
liquidity via flexible access to capital markets, in order
 
to be able to finance strategic projects and to offer
 
an attractive remuneration to
shareholders. Over the two years presented, the Group did
 
not issue new shares or any other dilutive instruments,
 
except for the shares
sold to senior management of the group at a discount
 
of 16.7%.
 
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Note 32.4 Categories of financial instruments
The Group occasionally uses interest rate (IRS) and/or
 
currency swaps (IRCS) to manage the exposure
 
to interest rate risk and to
foreign currency risk on its non-current interest-bearing liabilities
 
(see note 32).
 
The following tables present the Group’s financial
 
instruments per category defined under IFRS 9,
 
as well as gains and losses resulting
from re-measurement to fair value. Based on market
 
conditions at 31 December 2021, the fair value
 
of the unsubordinated debentures
and of the loan granted by the European Investment
 
Bank (EIB), which are accounted for at amortized
 
cost, exceeded by EUR 145
million, or 5.3%, their carrying amount.
The fair values, calculated for each debenture separately,
 
were obtained by discounting the cumulated cash
 
outflows generated by
each debenture with the interest rates at which the
 
Group could borrow at 31 December 2021 for
 
similar debentures with the same
remaining maturities.
The Group did not reclassify, during the period, financial
 
instruments from one category to another.
The following table shows the classifications under
 
IFRS 9 for each class of assets and financial
 
liabilities
 
as at 31 Dec 2021.
As at 31 December 2021
 
(EUR million)
Note
Classification under
IFRS 9
Carrying amount
under IFRS 9
Fair value
ASSETS
Non-current assets
Equity investments
9
FVOCI
1
1
Other non-current assets
 
Other derivatives
32
FVTPL
3
3
Other financial assets
Amortized cost
10
10
Current assets
Trade receivables
14
Amortized cost
879
879
Interests bearing
Other receivables
Amortized cost
2
2
Non-interests bearing
Other receivables
Amortized cost
19
19
Derivatives held for trading
FVTPL
1
1
Cash and cash equivalents
Short-term deposits
17
Amortized cost
10
10
Cash at bank and in hand
17
Amortized cost
239
239
LIABILITIES
Non-current liabilities
Interest-bearing liabilities
Unsubordinated debt (bonds, notes)
19.1
Amortized cost
2,337
2,456
Credit institutions
19.1
Amortized cost
401
423
Non interest-bearing liabilities
Other derivatives
32
FVTPL
3
3
Other non-current payables
21
Amortized cost
100
100
Current liabilities
 
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Interest-bearing liabilities, current portion
Credit institutions
19.2
Amortized cost
1
1
Interest-bearing liabilities
Credit institutions
Amortized cost
150
150
Unsubordinated debt (bonds, notes)
19.2
Amortized cost
100
100
Other loans
19.2
Amortized cost
1
1
Trade payables
Amortized cost
1,515
1,515
Other current payables
Derivatives held for trading
33
FVTPL
1
1
Other debt
FVTPL
3
3
Other amounts payable
Amortized cost
286
286
FVTPL: Financial assets/liabilities at fair value through profit and loss
FVTOCI: Financial assets at fair value through other comprehensive income
The following table shows the classifications under IFRS
 
9 for each class of assets and financial liabilities
 
as at 31 Dec 2020.
As at 31 December 2020
 
(EUR million)
Note
Classification under
IFRS 9
Carrying amount
under IFRS 9
Fair value
ASSETS
Non-current assets
Equity investments
9
FVOCI
1
1
Other non-current assets
 
Other derivatives
32
FVTPL
4
4
Other financial assets
Amortized cost
7
7
Current assets
Trade receivables
14
Amortized cost
868
868
Interests bearing
Other receivables
Amortized cost
3
3
Non-interests bearing
Other receivables
Amortized cost
10
10
Investments
16
Amortized cost
3
3
Cash and cash equivalents
Short-term deposits
17
Amortized cost
115
115
Cash at bank and in hand
17
Amortized cost
195
195
LIABILITIES
Non-current liabilities
Interest-bearing liabilities
Unsubordinated debt (bonds, notes)
19.1
Amortized cost
2,104
2,286
Credit institutions
19.1
Amortized cost
401
434
Other loans
19.1
Amortized cost
1
1
Non interest-bearing liabilities
Other derivatives
32
FVTPL
4
4
Other non-current payables
21
Amortized cost
99
99
Current liabilities
 
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Interest-bearing liabilities, current portion
Credit institutions
19.2
Amortized cost
1
1
Interest-bearing liabilities
Unsubordinated debt (bonds, notes)
19.2
Amortized cost
150
150
Other loans
19.2
Amortized cost
12
12
Trade payables
Amortized cost
1,213
1,213
Other current payables
Other debt
FVTPL
1
1
Other amounts payable
Amortized cost
276
276
FVTPL: Financial assets/liabilities at fair value through profit and loss
FVTOCI: Financial assets at fair value through other comprehensive income
 
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Note 32.5 Fair value of financial assets and liabilities
Financial instruments measured at fair value are
 
disclosed in the table below according to the
 
valuation technique used. The hierarchy
between the techniques reflects the significance of the
 
inputs used in making the measurements:
 
Level 1:
 
quoted (unadjusted) prices in active markets for
 
identical assets or liabilities.
Level 2:
valuation techniques for which all inputs which
 
have a significant effect on the recorded
 
fair value are observable for the asset
or liability, either directly or indirectly.
Level 3:
valuation techniques for which all inputs which
 
have a significant effect on the recorded
 
fair value are not based on observable
market data.
The Group holds financial instruments classified in Level
 
1, 2 and 3.
The valuation techniques for fair value measuring
 
the Level 2 financial instruments are:
Other derivatives in Level 2
Other derivatives include mainly the interest rate swaps and
 
interest rate and currency swaps (IRCS) the
 
Group entered
to reduce the interest rate and currency fluctuations
 
on some of its long-term debentures. The fair
 
values of these
instruments are determined by discounting the expected
 
contractual cash flows using interest rate curves in the
corresponding currencies and currency exchange rates, all
 
observable on active markets.
Unsubordinated debentures
The unsubordinated debentures are recognized at amortized
 
cost. Their fair values, calculated for each debenture
separately, were obtained by discounting the interest
 
rates at which the Group could borrow at 31 December
 
2021 for
similar debentures with the same remaining maturities.
The financial instrument classified among the level 3
 
category is fair valued based on cash outflows in different
 
scenarios, each one
being weighted for its chance of occurrence. The weights
 
are either based on statistical data that are very
 
stable over time, either based
on Proximus best estimate of the scenario occurrence.
 
The instrument fair value is very depending but
 
proportionate to changes in
estimated cash outflows.
As at 31 December 2021
Classification under
IFRS 9
Balance at 31
December 2021
Fair values measurement at end of the
reporting period using :
(EUR million)
Note
Level 1
Level 2
Level 3
ASSETS
Non-current assets
Equity investments
FVOCI
1
1
Other non-current assets
 
Other derivatives
32.1
FVTPL
3
3
Current assets
Non interest-bearing receivables
Derivatives held for trading
33.1
FVTPL
1
1
 
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LIABILITIES
Non-current liabilities
Interest-bearing liabilities
 
Unsubordinated debt (bonds, notes) except for their
"non-closely related" embedded derivatives
19.1
Amortized cost
2,337
2,456
Credit institutions
19.1
Amortized cost
401
423
Non interest-bearing liabilities
Other derivatives
33.1
FVTPL
3
3
Current liabilities
Interest-bearing liabilities, current portion
Credit institutions
19.2
Amortized cost
1
1
Interest-bearing liabilities
Credit institutions
19.1
Amortized cost
150
150
Unsubordinated debt (bonds, notes)
19.2
Amortized cost
100
100
Other loans
19.2
Amortized cost
1
1
Non interest-bearing liabilities
Other derivatives
33.1
FVTPL
1
1
Other debt
FVTPL
3
3
FVTPL: Financial assets/liabilities at fair value through profit and loss
FVTOCI: Financial assets at fair value through other comprehensive income
As at 31 December 2020
Classification under
IFRS 9
Balance at 31
December
2020
Fair values measurement at end of the
reporting period using :
(EUR million)
Note
Level 1
Level 2
Level 3
ASSETS
Non-current assets
Equity investments
FVOCI
1
1
Other non-current assets
 
Other derivatives
32.1
FVTPL
4
4
LIABILITIES
Non-current liabilities
Interest-bearing liabilities
 
Unsubordinated debt (bonds, notes) except for their
"non-closely related" embedded derivatives
19.1
Amortized cost
2,104
2,286
Credit institutions
19.1
Amortized cost
401
434
Other loans
19.1
Amortized cost
1
1
Non interest-bearing liabilities
Other derivatives
33.1
FVTPL
4
4
Current liabilities
Interest-bearing liabilities, current portion
Credit institutions
19.2
Amortized cost
1
1
Interest-bearing liabilities
 
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Unsubordinated debt (bonds, notes)
19.2
Amortized cost
150
150
Other loans
19.2
Amortized cost
12
12
Non interest-bearing liabilities
Other debt
FVTPL
1
1
FVTPL: Financial assets/liabilities at fair value through profit and loss
FVTOCI: Financial assets at fair value through other comprehensive income
 
 
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Note 33. Related party disclosures
 
Note 33.1. Consolidated companies
Subsidiaries, joint-operations, joint-ventures and associates are
 
listed in note 8.
 
Commercial terms and market prices apply for the supply
 
of goods and services between Group companies.
The transactions between Proximus SA and its subsidiaries,
 
being related parties, are eliminated for the preparation
 
of the consolidated
financial statements. The transactions between Proximus
 
SA and its subsidiaries are as follows:
Proximus SA transactions with its subsidiaries and joint operations
As at 31 December
(EUR million)
2020
2021
Revenues
156
154
Costs of materials and services related to revenue
-140
-137
Net finance costs
1
1
Dividends received
391
220
Gain on contribution of financial fixed assets
 
94
0
Proximus SA transactions with its subsidiaries and joint operations
As at 31 December
 
(EUR million)
2020
2021
Trade receivables
27
34
Trade payables
-33
-30
Interest-bearing receivables/liabilities
-767
-684
Other receivables and liabilities
-1
0
Note 33.2. Relationship with shareholders and other State-controlled enterprises.
 
The Belgian State is the majority shareholder of
 
the Group, with a stake of 53.51%. The Group holds treasury
 
shares for 4.52%. The
remaining 41.97% are traded on the First Market of
 
Euronext Brussels.
Relationship with the Belgian State
The Group supplies telecommunication services to the Belgian
 
State and State-related entities. State related enterprises
 
are those that
are either State-controlled or State-jointly-controlled or State-influenced.
 
All such transactions are made within normal
customer/supplier relationships on terms and conditions
 
that are not more favourable than those available to other
 
customers and
suppliers. The services provided to State-related enterprises
 
do not represent a significant component
 
of the Group’s net revenue,
meaning less than 5%.
 
Relationship with Belfius Bank NV
Proximus and Belfius Bank NV have the same majority
 
shareholder, the Belgian State. Hence, Belfius is considered
 
as a "related party" in
accordance with the International Financial Reporting
 
Standards as adopted by the European Union. Consequently,
 
the cooperation
 
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agreement with Belfius related to the Banx service has
 
been approved by the Board of Directors on
 
the 29th of April 2021 in line with
the conclusion of the special report prepared by three
 
independent directors in accordance with the
 
Art. 7.97 of the Belgian Code for
Companies and Associations. In 2021 the Banx project
 
had no impact on the consolidated figures, the
 
project will start as from 2022
onwards.
Note 33.3. Relationship with key management personnel
 
The remuneration of the Board of Directors was decided
 
by the General Shareholders’ Meeting of 2004.
The principles of this remuneration remained applicable
 
in 2021 and no substantial change of the policy
 
is expected: it foresees an
annual fixed compensation of EUR 50,000 for the Chairman
 
of the Board of Directors and of EUR 25,000
 
for the other members of
the Board of Directors, with the exception of the
 
CEO. All members of the Board of Directors,
 
with the exception of the CEO, have the
right to an attendance fee of EUR 5,000 per attended
 
meeting of the Board of Directors. This fee is doubled
 
for the Chairman.
Attendance fees of EUR 2,500 are foreseen for
 
each member of an advisory committee of the Board
 
of Directors, with the exception of
the CEO. For the Chairman of the respective advisory
 
committee, these attendance fees are doubled.
The members also receive EUR 2,000 per year for
 
communication costs. For the Chairman of the Board
 
of Directors, the
communication costs are also doubled.
 
The Chairman of the Board of Directors is also Chairman
 
of the Joint Committee and of the Pension Fund.
 
Mrs Catherine Vandenborre is
member of the Board of the Pension Fund. They do not
 
receive any fees for these board mandates. For
 
the execution of their Board
mandates, the non-executive Directors do not receive
 
any variable performance-based remuneration
 
such as bonuses or long-term
incentive plan, nor do they receive benefits linked
 
to complementary pension plans or any other group
 
insurance.
 
The
total remuneration for the Directors amounted to gross
 
EUR 1,192,366 for 2021 to gross EUR 1,231,116 for 2020.
 
The directors
have not received any loan or advance from the Group.
 
The number of meetings of the Board of Directors
 
and advising committees are detailed as follows:
2020
2021
Board of Directors
10
9
Audit and Compliance Committee
5
5
Nomination and Remuneration Committee
9
6
Transformation & Innovation Committee
2
2
In its meeting of 24 February 2011, the Board adopted
 
a “related party transactions policy” which was
 
updated in September 2016,
which governs all transactions or other contractual
 
relationships between the company and its board
 
members. Proximus has
contractual relationships and is also a vendor for
 
telephony, Internet and/or ICT services for many
 
of the companies in which Board
members have an executive or non-executive mandate.
 
These transactions take place in the ordinary course of
 
business and are arm’s
length of nature.
 
For the year ended 31 December 2021, a total gross
 
amount (long-term performance-based payments)
 
of EUR 6,993,891 (before
employer social security costs) was paid or granted
 
in aggregate to the members of the Executive Committee, Chief
 
Executive Officer
included. In 2021, the members of the Executive Committee
 
were Guillaume Boutin, Dirk Lybaert, Geert Standaert,
 
Renaud Tilmans,
Jan Van Acoleyen, Anne-Sophie Lotgering, Jim Casteele,
 
Antonietta Mastroianni (9 months) and Mark
 
Reid (8 months).
For the year ended 31 December 2020, a total gross
 
amount (long-term performance based payments) of
 
EUR 6,612,523 (before
employer social security costs) was paid or granted
 
in aggregate to the members of the Executive Committee, Chief
 
Executive Officer
 
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included. In 2020, the members of the Executive
 
Committee were Guillaume Boutin, Dirk Lybaert,
 
Geert Standaert, Renaud Tilmans,
Jan Van Acoleyen, Anne-Sophie Lotgering (6 months),
 
Jim Casteele (10 months), Sandrine Dufour (5
 
months) and Bart Van Den
Meersche (6 months).
These total amounts of key management compensation
 
include the following components:
Short-term employee benefits: annual salary (base
 
and short-term variable) as well as other short-term
 
employee
benefits such as medical insurance, private use of management
 
cars, meal vouchers, and excluding employer
 
social
security contributions paid on these benefits;
Post-employment benefits: insurance premiums paid by
 
the Group in the name of members of the Executive
Committee. The premiums cover mainly a post-retirement
 
complementary pension plan;
Performance Value based payments (long-term): gross
 
amounts granted under the Performance Value
 
Plan, which
creates pay-out rights in May 2023 (granted in 2020) or
 
in May 2024 (granted in 2021) depending on
 
the achievement
of 3 company driven performance criteria which consist
 
of the Group free cash flow, the reputation index
 
and the
company’s Total Shareholder Return compared to
 
a predefined group of other European telecom operators.
As at 31 December
EUR
2020
2021
Short-term employee benefits
5,130,490
4,965,866
Post-employment benefits
546,825
726,326
Performance based payments
935,208
1,301,699
Total
6,612,523
6,993,891
* All these amounts are gross amounts before employer's social contribution
Note 33.4. Regulations
The telecommunications sector is regulated by European
 
legislation, Belgian federal and regional legislation
 
and by decisions of sectors
specific regulators (the Belgian Institute for Postal services
 
and Telecommunications, commonly referred to as the
 
“BIPT/IBPT” and the
regional regulators competent for media) or administrative
 
bodies such as the Competition authorities.
Note 34. Rights, commitments and contingent liabilities
Claims, legal and tax proceedings
Our 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 labour laws.
 
The complexity of the legal and regulatory environment
 
in which we operate and the related cost of compliance
 
are both increasing due
to additional requirements. Furthermore, foreign and
 
supranational laws occasionally conflict with domestic
 
laws. Failure to comply with
the various laws and regulations as well as changes in
 
laws and regulations or the manner in which they
 
are interpreted or applied, may
result in damage to our reputation, li-ability, fines and penalties,
 
increased tax burden or cost of regulatory compliance
 
and impacts of
 
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our financial statements.
The telecommunications industry and related service
 
businesses are characterised 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.
 
Proximus is currently involved in various claims and legal
 
proceedings, including those for which a provision
 
has been made and those
described below for which no or limited provisions have
 
been accrued, in the jurisdictions in which it
 
operates concerning matters arising
in connection with the conduct of its business.
 
These include also proceedings before the Belgian
 
Institute for Postal services and
Telecommunications ("BIPT"), appeals against decisions
 
taken by the BIPT, and proceedings with
 
the tax administrations.
 
Broadband/Broadcast Access Related Cases
Between 12 and 14 October 2010, the Belgian Directorate
 
General of Competition started a dawn raid in Proximus’s
 
offices in Brussels.
This investigation concerns allegations by Mobistar
 
and KPN regarding the wholesale DSL services of
 
which Proximus would have
engaged in obstruction practices. This measure is without
 
prejudice to the final outcome of the full investigation.
 
Following the
inspection, the Directorate General of Competition
 
is to examine all the relevant elements of the
 
case. Eventually the College of
Competition Prosecutors may propose a decision to be
 
adopted by the Competition Council. During this
 
procedure, Proximus will be in a
position to make its views heard. (This procedure
 
may last several years.)
During the investigation of October 2010, a large numbers
 
of documents were seized (electronic data
 
such as a full copy of mail boxes
and archives and other files). Proximus and the prosecutor
 
of the Competition authority exchanged extensive
 
views on the way to
handle the seized data. Proximus wanted to be sure
 
that the lawyers “legal privilege” (LPP) and the
 
confidentiality of in house counsel
advices are guaranteed. Moreover, Proximus sought
 
to prevent the Competition authority from having
 
access to (sensitive) data that
were out of scope. Not being able to convince
 
the prosecutor of its position, Proximus started two
 
proceedings, one before the Brussels
Court of Appeal and one before the President of
 
the Competition Council, in order to have the
 
communication to the investigation teams
of LPP data and data out of scope suspended. On 5 March
 
2013, the Court of Appeal issued a positive judgment
 
in this appeal
procedure by which it ruled that investigators had no
 
authority to seize documents containing advices
 
of company lawyers and
documents that are out of scope and that these documents
 
should be removed/destroyed. To be noted that this
 
is a decision on the
procedure in itself and not on the merit of the
 
case.
 
On 14 October 2013, the Competition authority launched
 
a request for cassation against this decision.
 
Proximus has joined this
cassation procedure. Eventually, on 22 January 2015,
 
the Supreme Court decided to confirm the Judgment of
 
5 March 2013, except for
a restriction with regard to older documents, which was
 
annulled. It is up to the Court of Appeal now
 
to take a new decision on this
restriction.
 
In March 2014, KPN has withdrawn its complaint;
 
Mobistar remaining the sole complainant.
 
Based on the facts and information available per end
 
December 2021, management recorded no provision for
 
this case.
Mobile On-net cases related
In the proceedings following a complaint by KPN Group Belgium
 
in 2005 with the Belgian Competition Authority the
 
latter confirmed on
26 May 2009 one of the five charges of abuse of
 
dominant position put forward by the Prosecutor
 
on 22 April 2008, i.e. engaging in
2004-2005 in a “price-squeeze” on the professional market.
 
The Belgian Competition Authority considered that the rates
 
for calls be-
tween Proximus customers (“on-net rates”) were lower than
 
the rates it charged competitors for routing
 
a call from their own networks
to that of Proximus (=termination rates), increased with
 
a number of other costs deemed relevant. All other
 
charges of the Prosecutor
were rejected. The Competition Authority also imposed
 
a fine of EUR 66.3 million on Proximus (former Belgacom
 
Mobile) for abuse of a
dominant position during the years 2004 and 2005.
 
Proximus was obliged to pay the fine prior to 30 June
 
2009 and recognized this
charge (net of existing provisions) as a non-recurring expense
 
in profit or loss of the second quarter 2009.
 
 
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Proximus filed an appeal against the ruling of the Competition
 
Authority with the Court of Appeal of Brussels,
 
contesting a large number
of elements of the ruling: amongst other the fact that
 
the market impact was not examined. Also KPN Group
 
Belgium and Mobistar filed
an appeal against said ruling.
 
Following the settlement agreement dated 21 October
 
2015, the appeals of Base and Mobistar against
 
the decision of the Belgian
Competition Authority are withdrawn. Proximus will
 
continue its appeal procedure against this decision.
In its interim judgment of 7th of October 2020,
 
the Brussels Court of Appeal partially annulled
 
the decision of 26th of May 2009 of the
Competition Council, based on the reasoning that
 
(i) the Belgian Competition Authority could not have
 
established the existence of an
abuse of a dominant position for 2004 without the document
 
seized during the illegal dawn raid, while (ii) the documents
 
seized during
the illegal dawn raid were not indispensable for the
 
establishment of the abuse of a dominant position
 
for 2005. Consequently, Court
decided that the procedure should only be continued for
 
the latter period (both for other procedural
 
issues and on merits). Proximus
launched a “pourvoi en cassation” against this judgment
 
in so far, according to Proximus, the decision should
 
not have been annulled
partially (2004), but totally (2004 and 2005), exactly
 
because of the illegality of the dawn raid.
In October 2009, seven parties (Telenet, KPN Group
 
Belgium (former Base), KPN Belgium Business
 
(Tele 2 Belgium), KPN BV
(Sympac), BT, Verizon, Colt Telecom) filed an action
 
against Belgacom mobile (currently Proximus and
 
hereinafter indicated as
Proximus) before the Commercial Court of Brussels
 
formulating allegations that are similar to those
 
in the case mentioned above
(including Proximus-to-Proximus tariffs constitute an abuse
 
of Proximus’s alleged dominant position in the Bel-gian
 
market), but for
different periods depending on the claimant, in particular,
 
in the 1999 up to now timeframe (claim for
 
EUR 1 provisional and request for
appointment of an expert to compute the precise damage).
 
In November 2009 Mobistar filed another similar
 
claim for the period 2004
and beyond. These cases have been postponed for an undefined
 
period.
Following the settlements with Telenet, KPN, BASE Company
 
and Orange, the only remaining claimants are BT,
 
Verizon and Colt
Telecom. Per end December 2021, management recorded a
 
provision for this case based on their best estimate
 
and information
available.
MWingz - mobile radio access network sharing case
On 22nd of November 2019, Orange Belgium and
 
Proximus concluded a mobile radio access network (RAN)
 
sharing agreement.
Telenet, which contests the agreement, lodged a complaint
 
with the Belgian Competition Authority and made
 
a request for preliminary
measures. On 8th of January 2020, the Belgian Competition
 
Authority, whilst acknowledging the benefits of the
 
agreement, decided to
suspend the agreement for 2 months, giving Orange
 
Belgium and Proximus the time to have discussions
 
with the telecommunications
regulator. In the meantime, several preparatory actions
 
can still be taken. In the absence of new initiative
 
from the prosecutors of the
Belgian Competition Authority, the suspension took an
 
end after the 2 months period allowing Proximus
 
to fully implement the radio
access network (RAN) sharing agreement. In the meantime,
 
the prosecutors of the Belgian Competition Authority
 
continue to
investigate the agreement. A decision on the merits,
 
if any, may take several years.
Gial case
 
On 19 June 2019, Proximus was indicted by a Brussels
 
investigating judge following a complaint on the
 
grounds of corruption and
offences relating to industry, commerce and public auctions
 
in the so-called "GIAL" case. Proximus formally contests
 
having committed
any offence in this case. Due to the confidentiality of
 
the investigation, the details of this case cannot be
 
set out in this report.
Nevertheless, Proximus would like to mention the existence
 
of this case to ensure transparency.
For information purposes: if, contrary to its analysis
 
of its role in this case, Proximus were to be found
 
guilty of the acts which it is
accused of and in view of the indictment by the investigating
 
judge, the maximum fine that could be imposed
 
to Proximus in the context
of this case would be EUR 972,000. At the present time
 
and on the basis of the information available
 
to Proximus in connection with
this case, Proximus has not set aside any amount
 
for the payment of any fine.
 
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Finally, insofar as necessary, Proximus recalls that the
 
indictment does not in any way imply that
 
there are any charges or evidence of
guilt against it and insists that it is presumed innocent
 
and has solid elements for a favorable outcome
 
to this case.
Tax proceedings
BICS is engaged in tax proceedings with the Indian
 
tax authority. See note 2
Capital expenditure commitments
 
At 31 December 2021, the Group had contracted commitments
 
of EUR 866 million (intangible assets EUR 155 million;
 
tangible assets
EUR 710 million). The commitments related to the intangible
 
assets contain those related to the Eleven Sports’ contracts
 
(See Note4).
 
The tangible assets are mainly related to commitments
 
related to technical and network equipment related
 
to the further accelerated
investment plan for Fiber.
Purchase commitments of shares
In the context of various acquisitions, there are contingent
 
commitments (earn outs & put options & purchase
 
commitments) for a total
amount of EUR 12 million per end of 2021. Main part
 
of these obligations are payable in 2022 to the extent
 
that the agreed conditions
are met.
Mobtexting Commitment
BICS Singapore has conditionally committed to acquire a specialist
 
in Communications Platform as a Service (CPaaS),
 
3m Digital
Networks Pvt Ltd. The deal will accelerate the BICS
 
Group strategy to become a communications platform company,
 
delivering a suite
of cloud-based omnichannel communications services alongside
 
its existing portfolio. This will significantly enrich BICS’
 
value
proposition towards both the telecommunications and
 
enterprise markets, with the ambition to expand
 
its Software-as-a-Service
(SaaS) solutions to support businesses in their digital
 
transformation. The acquisition was closed per 10
th
 
February 2022.
Commitments related to Fiberklaar and Unifiber
Fiberklaar and Unifiber will maximize their funding via
 
debt and operating cash flows. Shareholders will
 
complement remaining required
funding needs via equity injection, prorata their share.
Other rights and commitments
At 31 December 2021, the Group has the following other
 
rights and commitments:
Guarantees
The Group received guarantees for EUR 2 million from
 
its customers to guarantee the payment of its trade
 
receivables and guarantees
for EUR 26 million from its suppliers to ensure the completion
 
of contracts or works ordered by the Group.
 
The Group granted
guarantees for an amount of EUR 125 million (including
 
the bank guarantees mentioned in note 32.2)
 
to its customers and other third
parties to guarantee, among others, the completion
 
of contracts and works ordered by its clients and
 
the payment of rental expenses
related to buildings and sites for antenna installations.
Universal Services
In accordance with the law of 13 June 2005 on
 
electronic communication, Proximus is entitled to claim
 
compensation for the social
tariffs that it has offered since 1 July 2005 as part
 
of its universal service provision. For every operator
 
offering social tariffs, the BIPT is
required to assess whether or not there is a net
 
cost and an unreasonable burden. In May 2014,
 
the BIPT, together with an external
 
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consultant, started to analyze the net costs Proximus
 
bore in providing the social discounts, which were
 
offered over the period 2005-
2012, the aim being to assess the possibility of there being
 
an unreasonable burden on Proximus, and hence the
 
possibility of a
contribution being due by the operators liable to
 
pay a contribution. On 1 April 2015, however,
 
Proximus withdrew its request for
compensation, referring to the legal opinion of 29
 
January 2015 of the Advocate General of the European
 
Court of Justice, following
the prejudicial question that the Belgian Constitutional
 
Court submitted regarding the law of 10 June
 
2012 (case C-1/14), more
precisely regarding the possibility of classifying mobile
 
social tariffs as an element of the universal service. Proximus
 
reserved its right to
introduce a new request for compensation once the implications
 
of the Court’s decision would be clear. In a judgment
 
of 11 July 2015,
the European Court of Justice stated that mobile social
 
tariffs cannot be financed by means of a compensation
 
mechanism to which
specific undertakings have to contribute.
In its judgment of 3 February 2016 (no. 15/2016),
 
the Constitutional Court, taking into account the Judgment
 
of the Court of Justice,
indicated that since the Member States are free to consider
 
mobile communication services (voice and internet)
 
as additional mandatory
services, the Legislator could impose the obligation on
 
mobile operators to provide mobile tariff reductions
 
to social subscribers.
However, it specified that a financing mechanism for
 
such services involving specific undertakings cannot
 
be imposed. It is up to the
Legislator to decide whether, for the provision of
 
such services, compensation should be calculated by
 
means of another mechanism
which does not involve specific undertakings.
In its communication of 27 December 2017 regarding
 
the monitoring van the universal service, the BIPT states
 
the following : ’Following
this, the Constitutional Court has decided on 3 February
 
2016 that Belgium cannot oblige the telecom
 
operators to grant social tariffs
for mobile telephony and mobile internet. However,
 
the government could decide to make the services accessible
 
to the public as
‘additional obligatory services’, however without a possibility
 
to have a financing from the sectorial compensation
 
fund.’ Given this
reading of the BIPT, it has been decided not to grant
 
any longer social tariffs on standalone mobile internet
 
formulas. Social reductions
on bundles for mobile internet are being maintained.
In 2015, the Minister competent for electronic communications
 
announced a reform of the legal system of social
 
tariffs, prioritizing a
simplification of the current system as well as an
 
evolution towards a system based on voluntary engagement.
So far, the Minister has not yet transformed his intention
 
into a concrete draft law. The claim for compensation
 
for the social tariffs has
not been renewed. The transposition of the European
 
Electronic Communication Code into Belgian law might
 
possibly bring changes to
the definition of the social tariffs. The recent federal Government
 
Agreement 2020 announces an innovation of
 
the system of social
tariffs. Presently, Minister De Sutter consults the sector on
 
the subject of a new social tariffs system that
 
addresses more beneficiaries
with more important advantages.
TeleSign Business Combination
Proximus' fully owned subsidiary TeleSign
 
a leading provider of digital identify and CPaas
 
Software Solutions for Global Enterprises,
intends to go public at an Enterprise Value of 1.3 Billion
 
USD via a business combination with Corporation
 
(“NAAC”). North Atlantic
Acquisition Corporation is a special-purpose acquisition company
 
(SPAC) focusing on global opportunities in the technology
 
space. The
total capital raised will be up to approximately 487 million
 
USD, including a committed Private Investment
 
in Public Equity (PIPE) of
$107.5 million from SFPI-FPIM, Finance Brussels and
 
a group of Belgian investors and up to 379.5
 
million USD from NAAC. Subject to
closing conditions, the transaction is expected to close
 
in 2022.
Partnership with HCL Technologies
Proximus entered into a partnership with HCL Technologies
 
whereby the company will operate and maintain Proximus'
 
private cloud
infrastructure and support its transition to a hybrid
 
cloud solution provider. The infrastructure remains
 
in Proximus' data centers and
under Proximus control. Any new assets acquired, and
 
related development performed by HCL Technologies
 
in the context of this
contact will fall under an IFRS lease model. Proximus
 
anticipates that these will be of a limited magnitude
 
going forward.
The partnership foresees a transition phase, that
 
started in October 2021, during which HCL Technologies
 
will gradually assume
responsibility for the transition of Proximus' relevant
 
services and prepare itself to deliver the services
 
to be provided under the
 
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partnership with the highest quality standards.
Note 35. Share-based Payment
 
Discounted Share Purchase Plans
In 2020 and 2021, the Group launched Discounted Share
 
Purchase Plans.
Under the 2020 and 2021 plans, Proximus sold respectively
 
3,092 and 6,438 shares to the senior management of
 
the Group at a
discount of 16.66% compared to the market price
 
(discounted price for EUR 15.54 per share in 2020
 
and for EUR 14.14 in 2021). The
cost of the discount is below EUR one million in 2020
 
and in 2021 and was recorded in profit or losses workforce
 
expenses (see note
26). This has a dilutive effect.
Performance Value Plan
In 2013, 2014, 2015, 2016, 2017 and 2018, Proximus
 
launched different tranches of the “Performance
 
Value Plan” for its senior
management. Under this Long-Term Performance Value
 
Plan, the granted awards are conditional upon a blocked
 
period of 3 years
after which the Performance Values vest. The possible
 
exercising rights are dependent on the achievement of
 
market conditions based
on Proximus’ Total Shareholder Return compared to
 
a group of peer companies.
 
After the vesting period rights can be exercised for four
 
years. In case of voluntary leave during the
 
vesting period, all the non-vested
rights and the vested rights not exercised yet are
 
forfeited. In case of involuntary leave (except for
 
serious cause) or retirement the rights
remain and continue to vest during the normal
 
3-year vesting period.
The Group determines the fair value of the arrangement
 
at inception date and the cost is linearly spread
 
over the vesting period with
corresponding increase in equity for equity settled (currently
 
not material) and liability for cash settled shared based
 
payments.
For cash settled share-based payment the liability is
 
periodically re-measured.
The fair value of the tranches 2017 and 2018 amounted
 
to EUR 0 for each tranche as of 31 December
 
2021.
 
The annual charge of these tranches amounted to
 
EUR 0 million. The calculation of simulated total
 
shareholder return for those
tranches under the Monte Carlo model for the remaining
 
time in the performance period for awards with market
 
conditions included the
following assumptions as of 31 December 2021.
As at 31 December
2020
2021
Weighted average risk free of return
-0.55%
-0.38%
Expected volatility - company
26.53%-27.05%
24.27%-24.84%
Expected volatility - peer companies
15.33%-41.43%
12.03%-49.51%
Weighted average remaining measurement period
2.15
1.65
In 2019, 2020 and 2021, Proximus launched tranches of
 
the new “Performance Value Plan” for its senior
 
management. Under this new
 
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Long-Term Performance Value Plan, the granted awards
 
are blocked for a period of 3 years after which the
 
Performance Values vest.
The final paid amount depends on the results of 3
 
KPI’s which are: the Proximus’ Total Shareholder Return compared
 
to a group of peer
companies (40%), the group Free Cash Flow (40%) and
 
the Reputation Index (20%). The final KPI is the
 
average of the intermediary
results of the 3 calendar years.
The fair value of the tranches 2019,
 
2020 and 2021 amounted respectively to EUR 6,3 and
 
1 million as of 31 December 2021 based on
actual calculation. The annual charge of these tranches amounted
 
to EUR 1 million.
 
Employee Stock Option Plans
In 2012, Proximus launched a last yearly tranche of
 
the Employee Stock Option Plan to the key management
 
and senior management
of the Group. The Plan rules were adapted early 2011
 
according to the Belgian legislation. Therefore, as
 
from 2011, the Group
launched two different series: one for the Executive
 
Committee, Chief Executive Officer included and
 
one for the other key
management and senior management. Black&Scholes was
 
used as option pricing model.
 
The annual charge is recognized as workforce expenses and was
 
below EUR 0.1 million in 2020. Unexercised or
 
forfeited stock options
generated a gain of EUR 0.2 million in 2020.
All tranches granted from 2004 to 2012 were closed
 
in 2020.
 
In 2020, 16,583 stock options were exercised and
 
7,474 expired for the last remaining plan.
 
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Note 36. Relationship with the auditors
 
The Group expensed for the Group’s auditors during
 
the year 2021 for an amount of EUR 2,652,218
 
for audit mandate and control
missions and EUR 97,682 other missions.
This last amount is detailed as follows:
EUR
Auditor
Network of auditor
Audit mandate
1,028,577
577,270
Other Control Missions
171,371
875,000
Other missions
55,436
42,246
Total
1,255,384
1,494,516
Note 37. Segment reporting
The Group’s operating segments are established based on
 
those components that are evaluated regularly by
 
the chief operating
decision maker in deciding how to allocate resources and
 
in assessing performance.
The Group has determined the chief operating decision
 
maker to be the Proximus Executive Committee.
The operating segments are largely organized according
 
to the nature of products and services provided
 
and geographical area and are:
Domestic:
segment providing communication and ICT
 
services to residential, businesses and telecom wholesale
 
markets
in Belgium.
International Carrier Services (BICS)
 
is responsible for international carrier activities on
 
the international communications
market.
TeleSign:
specialized in delivery authentication and digital identity
 
services to the world’s largest internet brands, digital
champions and cloud native businesses.
The Chief Operating Decision Maker assesses performance
 
and makes decisions about resource allocation and performance
 
based on
the EBITDA net of incidentals. Within Domestic net revenue
 
is reviewed by the chief operating decision
 
maker by market being
residential (CBU component), professional (EBU component)
 
and wholesale markets (CWS component).
Capex information is not provided to the CODM by operating
 
segment but by key domain being e.g. fiber, mobile,
 
content…
Group financing (including finance expenses and finance
 
income) and income taxes were managed on a
 
group basis and are not
allocated to operating segments.
The accounting policies of the operating segments
 
are the same as the significant accounting policies
 
of the Group. Segment results are
therefore measured on a similar basis as the operating
 
result in the consolidated financial statements but are disclosed
 
excluding
“incidentals” and including lease depreciation and interest.
 
The Group defines “incidentals” as material items
 
that are out of usual
 
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business operations.
Intercompany transactions between legal entities of
 
the Group are invoiced on an arm’s length basis.
As of January 2021, following changes have been
 
made in the segment reporting:
The former ICS segment has been split into “BICS”
 
and “TeleSign” and “Domestic” is the operating
 
segment mainly for
Belgian markets.
 
Domestic revenue no longer includes the eliminations between
 
Domestic & BICS. These are now reported separately
 
in
the “Eliminations” category.
As at 31 December 2021
Proximus Group
underlying by segment
(EUR million)
Reported
(IFRS 16)
Lease
depreciation
and interest
Incidental
Underlying
Domestic
BICS
TeleSign
Eliminations
Net revenue
5,537
0
-1
5,537
4,333
997
326
-120
Other operating income
42
0
0
41
48
2
1
-10
TOTAL INCOME
5,579
0
-1
5,578
4,381
999
327
-130
Costs of materials and services
related to revenue
-1,997
-2
0
-1,999
-1,095
-772
-248
115
Direct margin
3,582
-2
-1
3,579
3,286
227
79
-14
Workforce expenses
-1,200
0
9
-1,191
-1,076
-75
-42
3
Non workforce expenses
-554
-80
18
-616
-556
-51
-20
12
TOTAL OPERATING EXPENSES
-1,754
-80
26
-1,807
-1,633
-126
-63
14
OPERATING INCOME before
depreciation & amortization
1,828
-82
26
1,772
1,654
102
17
0
Depreciation and amortization
-1,183
OPERATING INCOME
645
Net finance costs
-54
Share of loss on associates
-10
INCOME BEFORE TAXES
581
Tax expense
-137
NET INCOME
445
Attributable to:
Equity holders of the parent (Group
share)
443
Non-controlling interests
1
 
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As at 31 December 2020
Proximus Group
underlying by segment
(EUR million)
Reported
(IFRS 16)
Lease
depreciation
and interest
Incidental
Underlying
Domestic
BICS
TeleSign
Eliminations
Net revenue
5,443
0
0
5,443
4,313
962
273
-105
Other operating income
38
0
-2
36
43
2
0
-9
TOTAL INCOME
5,481
0
-2
5,479
4,356
964
273
-115
Costs of materials and services
related to revenue
-1,901
-2
0
-1,904
-1,073
-737
-195
102
Direct margin
3,580
-2
-2
3,576
3,283
227
78
-13
Workforce expenses
 
-1,128
0
-13
-1,141
-1,038
-71
-34
2
Non workforce expenses
 
-530
-82
13
-599
-540
-55
-14
11
TOTAL OPERATING EXPENSES
-1,658
-82
0
-1,740
-1,578
-126
-48
13
OPERATING INCOME before
depreciation & amortization
1,922
-84
-1
1,836
1,706
101
30
0
Depreciation and amortization
-1,116
OPERATING INCOME
805
Net finance costs
-48
Share of loss on associates
-1
INCOME BEFORE TAXES
756
Tax expense
-174
NET INCOME
582
Attributable to:
Equity holders of the parent (Group
share)
564
Non-controlling interests
18
 
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In respect of geographical areas, the Group realized
 
EUR 3,858 million net revenue in Belgium in 2021 (IFRS 15
 
basis) and EUR 3,837
million in 2020 based on the country of the customer.
 
The net revenue realized in other countries amounted
 
to EUR 1,679 million in
2021 and EUR 1,606 million in 2020. More than 90%
 
of the segment assets are located in Belgium.
 
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Note 38. Recent IFRS pronouncements
 
The Group does not early adopt the standards or
 
interpretations that are not yet effective at 31 December
 
2021.
The standards and interpretations that are issued, but
 
not yet effective, up to the date of issuance of
 
the Group’s financial statements
are disclosed below. The Group intends to adopt these standards,
 
if applicable, when they become effective.
This means that the Group did not apply the following
 
standards or interpretations that are applicable for
 
the Group as from 1 January
2022 or later:
Newly issued standards, Interpretations and amendments:
Amendments to IFRS 3 – Business Combination -
 
Reference to the Conceptual Framework (2022);
Amendments to IAS 16 - Property, Plant and Equipment
 
– Proceeds Before Intended Use (2022);
Amendments to IAS 37 – Provisions, Contingent liabilities,
 
Contingent assets - Onerous Contract – Cost of Fulfilling
 
a
Contract (2022);
Annual Improvements to IFRS Cycle 2018-2020 (2022);
IFRS 17 - Insurance Contracts
 
(and related amendments such as Amendments
 
to IFRS 4 Insurance contracts)
 
(2023)
Extension of the Temporary Exemption from Applying
 
IFRS 9) (2023);
 
Amendments to IAS 1 - Classification of Liabilities as
 
Current or Non-Current (2023);
Amendments to IAS 1- Presentation of Financial
 
Statements and IFRS Practice Statement 2: Disclosure
 
of Accounting
Policies (2023)
Amendments to IAS 8- Accounting policies, Changes
 
in Accounting Estimates and Errors: Definition
 
of Accounting
Estimates (2023)
Amendments to IAS 12- Income Taxes: Deferred Tax
 
related to Assets and Liabilities arising from
 
a Single Transaction
(2023)
The Group will continue investigating the possible impacts
 
of the application of these new standards and
 
interpretations on the Group’s
financial statements in the course of 2022.
 
The Group does not anticipate material impacts from
 
the initial application of those IFRS
 
Note 39. Post balance sheet events
 
There are no significant post balance sheet events.
 
 
 
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Management discussion and
analysis of financial results
1.
 
Introductory remarks
Underlying revenue and EBITDA
Proximus’ management discussion is focused on underlying
figures, i.e. after deduction of the incidentals and including
operating lease expenses. The underlying company figures are
reported to the chief operating decision makers in view of
resource allocation and performance assessment.
Proximus provides a transparent view of the operational
 
drivers
of the business by isolating incidentals, i.e. revenues
 
and costs
that are unusual or not directly related to Proximus’
 
business
operations, and which had a significant impact on the
 
year-on-
year variance of the Proximus Group revenue or
 
EBITDA.
 
In
addition, following the application of the IFRS 16 accounting
standard, the definition of “underlying” was adjusted to
 
include
lease depreciation & interest as of 2019.
 
The adjusted revenue
and EBITDA are referred to as “underlying” and allow for
 
a
meaningful year-on-year comparison.
Definitions can be found in section 6 of this document.
 
 
 
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Reporting changes as from 2021
As of January 2021, the reporting changes below have been
implemented. The figures for 2020 have been restated
accordingly to allow for a meaningful year-on-year comparison.
• Following the acquisition of 100% of BICS by
 
the Proximus
Group early 2021, the financial results from the TeleSign
segment are reported separately from the BICS segment,
reflecting the individual management and future trajectory
 
of
both segments.
• The new BICS revenue, excluding TeleSign, is categorized
 
in
legacy, core & growth services
• As from 2021, and restated for 2020, the Domestic
 
segment
revenue no longer includes the eliminations between
 
Domestic &
BICS. These are now reported separately in the “Eliminations”
category.
• With management’s focus on Direct margin on Domestic
 
level,
for which interconnect effects are neutral, the Direct
 
margin for
Consumer, Enterprise and Wholesale is no longer reported.
Rounding
In general, all figures are rounded. Variances are calculated
 
from
the source data before rounding, implying that some variances
may not add up.
Covid-19 impacts
Proximus Group proved to be resilient to the sanitary
 
crisis,
with its exposure concentrated around reduced Roaming
activities following the worldwide limited traveling in 2021.
 
This affected Proximus’ Domestic segment, as well
 
as BICS.
 
In comparison with 2020, the loss of Roaming revenue
 
and
direct margin was limited to the first quarter of the
 
year, after
which this negative effect annualized for the remainder of
 
the
year.
 
While there was no negative impact over the last
 
nine
months, there has also not been a meaningful rebound yet.
 
 
 
 
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The remaining adverse Covid-19 impact on the company’s
EBITDA was in part contained through continued active
management of its expenses,
 
in addition to a direct favorable
cost impact from a very high degree of homeworking
 
of
Proximus employees, leading to lower fuel and energy
consumption as well as travel expenses.
Key Figures - 10-year overview
 
 
 
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2.
 
Proximus Group
Revenue
The Proximus Group ended the year 2021 with total
underlying revenue of EUR 5,578 million, an increase from
the prior
year of +1.8% or EUR 99
million. On organic basis
the Group revenue was up by +1.2%.
Group underlying revenue
EUR 5,578M
Within the mix, the underlying Domestic revenue was up by
0.6% to a total of EUR 4,381 million.
This includes a non-
organic revenue contribution from Mobile Vikings,
 
consolidated
as of 1 June 2021 in the Proximus Consumer revenue.
 
On
organic basis, and in spite of some remaining Covid-19
headwinds over the first months of the year, the
 
organic
Domestic revenue was kept nearly stable at EUR 4,347
 
million
(-0.2%). The support from the solid operational results from
both the Consumer and Enterprise units was offset by
 
the loss
in low-margin Wholesale Interconnect revenue, following
 
the
continued decrease in regular SMS usage with customers
moving to OTT services.
 
In 2021, BICS grew its revenue by 3.6% to EUR 999 million,
with a gradual improvement as from the second quarter
 
2021
with the negative effect of the pandemic on worldwide
 
travel
starting to annualise.
 
The pick-up in European international
travel was in particular reflected in the core revenue of
 
BICS,
showing a 16.7% increase from 2020.
 
BICS also noted a
strong traction for Cloud communication services.
 
This offset
the eroding lower-margin legacy revenue.
 
TeleSign posted a strong sales year, with revenue up by
19.9%
(including a negative currency effect). The growth
 
was
driven by both Programmable Communications and Digital
Identity services.
Group revenue by segment (underlying, M€)
Ÿ
Solid customer growth over 2021 of main customer bases.
Ÿ
Underlying Domestic revenue was up by 0.6% to a total of EUR 4,381 million and was kept stable
on organic basis. (-0.2%)
Ÿ
As anticipated for 2021, the Domestic OPEX increased from the previous year, +2.9% on organic
basis.
Ÿ
BICS closed 2021 with EBITDA up +0.6% to total EUR 102 million.
 
Ÿ
TeleSign showing initial success of strategy to become Digital Identity leader, posting strong
revenue growth, while increased investments are reflected in lower EBITDA.
 
Ÿ
The underlying Group EBITDA for the year 2021 totaled EUR 1,772 million, down by -4.0% on
organic basis
Ÿ
FCF of EUR 237 million, or EUR 376 million on normalized basis i.e. + 6.4% compared to 2020.
 
 
 
 
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Direct Margin
Over the full year 2021 Proximus Group posted an
underlying direct margin of EUR 3,579 million, i.e.
+0.1% up from full-year 2020
, including Covid-19
headwinds over the first months, gradually annualizing
as of mid-March 2021.
 
The year-on-year increase of
EUR 3 million came mainly from the Domestic direct
margin, up by 0.1% to a total of EUR 3,286 million.
 
On
organic basis, the Domestic direct margin was -0.5%
down.
 
BICS maintained a stable twelve-month direct
margin at EUR 227 million.
 
For TeleSign the year-to
date December Direct margin totaled EUR 79 million,
+1.6% from the preceding year,
 
including a significant
negative currency effect.
 
Group underlying direct margin
EUR 3,579M
Direct Margin (underlying, M€)
 
 
 
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Operating expenses (OPEX)
 
The operating expenses for the Proximus Group were up from
the year before, reaching a total of EUR 1,807 million, +3.9%
more compared to 2020.
 
The
Domestic OPEX
 
totalled EUR 1,633 million, a +3.5%
increase.
 
The OPEX from Mobile Vikings aside, the organic
Domestic OPEX increased by +2.9%.
 
Proximus’ ongoing cost
efficiency program partly offsets
 
the anticipated higher OPEX for
2021.
BICS
 
kept its level of OPEX to EUR 126 million for 2021,
 
a fairly
stable amount to the year before, as a result of strong
 
cost
management.
 
TeleSign’s
operating expenses totaled EUR 63 million, EUR 14
million higher versus 2020, driven by the significant
 
investments
in its growth trajectory.
The Operating Expenses increased for 2021,
reaching a total of EUR 1,807M for the Proximus
Group.
Operating expenses (underlying, M€)
Headcount evolution (in FTE per YE)
 
 
 
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Underlying EBITDA
The underlying Group EBITDA for the year 2021 totaled EUR
1,772 million, down by -3.5%
 
or EUR -64 million compared to
the prior year, with the largest part resulting from
 
a -3.0%
decline in Domestic EBITDA. On organic basis, the year-to-date
underlying Group EBITDA was down by -4.0% to a
 
total of EUR
1,763 million.
Group EBITDA by segment (underlying, M€)
Domestic underlying EBITDA
€ 1,654M
The
Domestic operations
 
of Proximus posted EUR 1,654 million
EBITDA, a year-on-year decline of -3.0%, or -3.5%
 
on organic
basis.
 
BICS
 
closed 2021 with EBITDA up 0.6% to total EUR 102
 
million,
with both its Direct margin and Operational costs
 
relatively in line
with 2020.
 
BICS’ segment margin as percent of revenue for
2021 was 10.2%, compared to 10.5% the previous year.
 
TeleSign
 
kept a positive EBITDA for 2021, totalling EUR 17
million, with the year-on-year decline reflecting the
 
significant
investments to support its growth ambitions
Group EBITDA evolution (underlying, M€)
 
 
 
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Reported EBITDA
Incidentals included, and operating lease excluded, the
 
Proximus
Group reported EBITDA of EUR 1,828 million, compared to EUR
1,922 million in 2020.
 
In 2021, the Proximus Group recorded a net of EUR 26
 
million in
incidentals, compared to EUR 1 million net positive
 
EBITDA
incidentals for 2020. For 2021, the incidentals included,
 
amongst
others, costs related to M&A transactions
 
and headcount-related
transformation costs (eg. Proximus’ Fit for Purpose
 
Plan).
 
The lease depreciation and interest for 2021 were
 
EUR -2 million
lower year-on-year, totaling EUR 82 million. (As from
 
2019,
following the application of IFRS 16, these expenses are
 
excluded
from the reported EBITDA).
Reported and underlying EBITDA (M€)
Depreciation and amortization
In 2021, the depreciation and amortization totalled EUR 1,183
million, including lease depreciation. This compares to
 
EUR 1,116
million for 2020.
 
The 6% increase is mainly due to the review of
the useful life of some network components and an increasing
asset base.
Depreciation and amortization incl. lease depreciation (M€)
 
Net finance cost
The full-year 2021 net finance cost totaled EUR 54
 
million
including lease interests, 12.5% up from one year ago,
 
mainly
due to the put liability remeasurement of BeMobile
 
shares.
Net finance cost incl. lease interest (M€)
 
 
 
 
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Tax expense
The 2021 tax expenses of EUR 137 million represent
 
an effective
tax rate of 23.5%. The ETR is below the Belgian statutory
 
tax
rate of 25%, following the application of general principles
 
of
Belgian tax law such as the innovation income deduction
 
and
other R&D incentives.
Tax expense (M€) and ETR
 
Net income
The 2021 full-year net income (Group share) totalled EUR
 
443
million versus EUR 564 million for 2020. The decrease
 
of EUR -
121 million is mainly explained by lower EBITDA, as well
 
as higher
depreciation and amortization, partially offset by
 
a decrease in tax
expenses.
€ 443M
Net income
Net income (Group Share) (M€)
Net income evolution (M€)
(*) excluding lease depreciation; (**) excluding lease interest; (***)
 
includes Non-controlling interests and Share of loss from associates
 
 
 
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CAPEX (excl. spectrum
 
& football broadcasting rights)
Excluding spectrum and football broadcasting rights, the
Proximus Group accrued CAPEX over the year 2021 totalled
 
EUR
1,203 million.
 
All included, Proximus Group accrued CAPEX
totaled EUR 1,279 million, compared to EUR 1,053 million
 
for
2020.
The year-on-year increase of EUR 203 million from
 
the 1 billion
for 2020 was in large part driven by Proximus’ investments
 
in its
Gigabit networks. In 2021, the announced Mobile network (RAN)
consolidation between Proximus and Orange Belgium started,
led by the created
 
joint-operation Mwingz.
 
Fiber related investments counted for 31% of the
 
total CAPEX.
 
By end-2021, Proximus was deploying Fiber in 35 cities and
municipalities in Belgium
1
.
 
By end 2021, Proximus’ Fiber footprint
totalled 813,000 premises, representing a Fiber coverage
 
of
nearly 14%.
Following an increased level of customer installations
 
over 2021
compared to the previous year, the customer-related
 
CAPEX
increased, covering customer equipment and activation
 
costs for
both Fiber and Copper customers.
 
 
Moreover, in line with its strategy, Proximus increased
 
its
investments in Digitalization and IT transformation.
Accrued Capex (M€)
Free Cash Flow
Proximus Group generated a total FCF over the year
 
2021 of
EUR
 
237 million, or EUR 376 million on normalized
 
basis.
 
The
normalization is chiefly related to the acquisition of
 
Mobile
Vikings. On normalized basis, the FCF increased by 6.4% or
EUR 23 million
 
compared to
 
2020.
 
Over the year 2021, Proximus posted higher cash flow
 
from
operating activities, mainly as a result of a lower
 
year-on-year
cash out for its ongoing transformation plans and lower
 
business working capital needs.
 
This was partly offset by a
decrease in the underlying EBITDA and a higher level
 
of
income tax pre-payments. The cash out related to CAPEX was
up by EUR 47 million year-on-year, largely driven by
 
Proximus’
Fiber roll-out.
 
Furthermore, the 2021 cash-flow includes a
EUR 40 million equity injection in the Fiber joint-ventures
Fiberklaar and Unifiber, the two entities created to deploy
 
Fiber
in the Flanders and Walloon regions, respectively.
376M
 
normalised FCF
 
1
 
Fiber partners Fiberklaar and Unifiber also started civil works in 10 cities.
 
 
 
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Free Cash Flow evolution (M€)
Net financial position
Proximus’ adjusted
2
 
net debt level increased to EUR 2,740
million by end-2021. The underlying
net debt/EBITDA ratio of
1.55
for 2021 remains one of the lowest in the
 
European
Telecom sector.
Adjusted net debt evolution (M€)
Sustainable finance
Sustainable finance framework
 
Sustainability has become increasingly important to customers, suppliers and employees, but also to both private and institutional investors.
 
To
provide them with clear and transparent information about its green & social investment strategy, Proximus
 
published its Sustainable Finance
Framework in May 2021 (
link
).
 
Proximus believes that green, social and sustainable finance instruments are an effective tool to channel investments to projects that have
demonstrated climate and social benefits and thereby contribute to the achievement of the sustainable development goals (SDGs).
 
By issuing green, social and sustainable finance instruments, Proximus intends to align its funding strategy with its mission, sustainability and
climate strategy and targets.
2
 
Net debt excluding lease liabilities
 
 
 
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Green bond
 
In November 2021, Proximus released its first EUR 750 million Green Bond to finance or refinance projects with a positive effect on energy
efficiency, renewable energy,
 
clean transportation, green buildings, circular economy, and social & digital inclusion (
link
).
3. Domestic
 
Domestic revenue by unit (underlying, M€)
For its Domestic operations, Proximus posted revenue of EUR
4,381 million in 2021, an increase of 0.6% or EUR 25 million
from the year 2020.
 
The Consumer unit accounted for about
62% of the total Domestic revenue, the Enterprise unit 31% and
the Wholesale segment 7%.
 
Consumer revenue
 
The Consumer revenue over 2021 totaled EUR 2,714 million,
up by 1.7% or EUR 46 million compared to 2020.
 
Excluding
the contribution from Mobile Vikings, the organic Consumer
revenue variance remained positive at +0.1%.
3
 
2,004,000
Fixed Internet customers
+ 39,000 in 2021
1,709,000
TV subscribers
 
+ 43,000 in 2021
The Consumer revenue was supported by another strong
 
growth
for Proximus’ main customer bases: TV, Internet and Mobile
Postpaid, while the Fixed Voice base continued its eroding
 
trend
as a consequence of changing customer needs.
 
The Mobile
Prepaid base also continued its declining track in a
 
shrinking
prepaid market.
 
The targeted price indexation on 1 January 2021
brought some relief and encouraged the customer to move
 
out
of older offers into more recent commercialized offers
 
such as
the Flex combinations.
 
Postpaid cards (‘000)
(2021 including Mobile Vikings)
Ÿ
Domestic revenue of EUR 4,381 million in 2021, up by 0.6% from 2020.
 
Ÿ
Consumer revenue over 2021 totalled EUR 2,714 million, up by 1.7% or +0.1% on organic basis.
 
Ÿ
Enterprise revenue increased to EUR 1,358 million for 2021, a +0.6% growth from 2020.
 
Ÿ
Wholesale revenue of EUR 287 million in 2021, a -8.4% decline compared to 2020, largely
related to Interconnect revenue erosion, with no material margin impact.
 
Ÿ
Proximus posted EUR 1,654 million Domestic EBITDA, a year-on-year decline of -3.0%, or -3.5%
on organic basis.
3
 
Revenue from Mobile Vikings is included in Other revenue.
 
The
Postpaid and Prepaid mobile base is consolidated in the total of
Consumer revenue.
 
 
 
 
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Prepaid cards (‘000)
The customer traction for Internet, TV and Mobile benefitted
from Proximus’ convergent strategy and its multi-brand
approach. The Proximus and Scarlet brands address different
customer segments in the Belgian market. With the acquisition of
Mobile Vikings in June 2021, the Consumer offer was
 
further
completed by a brand addressing the more tech-savvy part
 
of
the market. On 1 June 2021, the Postpaid base of
 
Mobile Vikings
for a total of 191,000 Postpaid cards, was consolidated
 
in the
total Proximus consumer base.
 
In a highly competitive market, the Consumer segment
 
managed
to grow its TV customer base by +43,000 TV subscriptions
 
over
the course of 2021, to a total of 1,709,000 and its
 
Internet
customer base by +39,000 to a total of 2,004,000 by
 
end-
2021. This is a mix of customers on the historical
 
copper network,
and a growing number of customers on the new Fiber
technology.
 
TV customers (’000)
Fixed Internet customers (‘000)
Fixed Voice customers (‘000)
With Proximus deploying Fiber in 35 cities, the product
 
superiority
of Fiber becomes an increasingly relevant sales proposal.
 
Over
the year 2021, the number of activated Fiber
 
customers
increased by an additional +58,000, comprised of a mix
 
of
onboarding new customers and migrating copper customers.
 
This compares to +26,000 activated Fiber customers
 
in 2020.
By end-2021 the total Consumer Fiber base totalled
 
123,000.
The revenue generated by customers subscribing
 
to Proximus’
different product lines is referred to as Customer services
 
revenue
or
X-Play revenue
.
 
For 2021, 81% of the total Consumer revenue,
i.e.
EUR 2,188 million was generated by Customer services (X-play)
.
 
This is
-0.7% or EUR -15 million below 2020
, including some
unfavourable year-on-year effect from higher Voice usage
 
during
the 2020 (soft-) lockdowns
 
and some remaining negative impact
over the first months of the year following the Covid-19
 
related
world-wide downturn in travel, reducing roaming volumes.
 
This
headwind started to lapse in March 2021.
 
As a result of the ongoing move of customers to convergent
 
offers
at higher Average Revenue per Customer (ARPC),
 
and further
supported by the 1 January 2021 price indexation, the overall
 
ARPC
continued to grow, with the ARPC for 2021 up by +0.7%
 
from one
year back, reaching EUR 59.0.
 
Proximus’ convergent Flex offers continued their
 
success over
2021, with Proximus counting a total of 832,000 Flex
 
subscriptions
by year-end.
 
This is an increase of 515,000 from twelve months
back, comprised of a mix of onboarding new customers and
migrating customers from legacy packs.
 
 
 
 
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The traction of Flex further boosted the number of multi-mobile
customers, driving a gradual increase in the overall RGU over
 
the
year to 2.71 RGUs for the last quarter of 2021, an
 
increase of
+2.8% from the comparable period in 2020.
In the mix,
revenue from Convergent customers increased further,
up by +2.7% year-on-year reaching EUR 1,292million
.
 
In 2021,
Proximus grew its convergent base by +68,000 customers,
reaching a total of 1,192,000, up by 6.1% from
 
12 months back.
 
The growth driver of the Convergent revenue is
 
the ongoing strong
increase in convergent 3-Play customers.
 
Proximus grew its
convergent 3-Play base by +99,000 customers, to reach
 
447,000
customers by end-2021.
 
As result, the 3-Play convergent revenue
grew by 29.3% to a total of EUR 432 million.
 
The 2021 ARPC of a
convergent 3-Play customer was EUR 90.1,
 
-3.4% below that of
2020.
 
The 3-Play convergent ARPC shows a steady decrease,
reflecting the ongoing trend of customers waiving the fixed
 
voice
line when migrating to one of the Proximus Flex offers.
 
The high uptake of 3-Play convergent offers largely
 
explains the
downward trend in the number of 4-Play customers, down
 
by -
27,000 to a total base of 661,000 by end-2021, as
 
well as the
decrease in the Fixed -and Mobile postpaid-only customer
 
bases.
 
With the number of customers subscribing to Proximus’
 
convergent
offers rising, Proximus’ base of Fixed-only customers decreased
 
to
1,063,000 by end-2021.
 
These customers generated in 2021 an
ARPC of EUR 47.4, -0.3% below the previous year.
 
Likewise, the number of customers only having a
 
Mobile
subscription at Proximus further came down, to the benefit
 
of
Convergent packages.
 
By end-2021, the Consumer unit counted a
Mobile postpaid-only base of 812,000 customers, a year-on-year
decrease of -5.8%. These customers generated an ARPC
 
of EUR
27.0, +2.1% up from the previous year driven by a favourable
 
price
tiering.
 
In addition to the above-described revenue from Customer
 
services,
the Consumer segment revenue also includes revenue
 
from
Terminals, Mobile Prepaid, its Luxembourg telecom business
 
and
Other revenue, with the latter including revenue from
 
Mobile
Vikings.
 
For 2021, the total revenue from Terminals totaled EUR
 
247
million, EUR 17 million above 2020, which was impacted
 
by Covid-
related store closure.
Driven by the ongoing decrease in the Proximus Prepaid
 
base,
revenue from Mobile Prepaid continued its eroding trend,
 
with
revenues down to EUR 35 million for 2021.
 
Proximus’ total Prepaid
base totaled 669,000 by end-2021, including Prepaid cards
 
from
Mobile Vikings.
 
Proximus’ Luxembourg telecom revenue came in strong
 
over 2021
for the Consumer side, up by +7.2% to EUR 125 million
 
revenue,
mainly resulting from a higher number of mobile and
 
fixed
subscriptions, and an increase in mobile device sales.
 
Proximus Consumer posted EUR 98 million in its Other
 
revenue.
 
The year-on-year increase of EUR 42 million fully
 
resulted from the
consolidation of Mobile Vikings in June 2021.
81
% Consumer revenue generated by X-Play Customers
Convergent Customers (‘000)
 
 
 
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Consumer revenue build up (underlying, M€)
Customer revenue per X-Play (M€)
+2.7%
Convergent revenue
Customer trend to
move to 3-Play
convergent offers
drives strong increase
in multi-mobile,
 
while reducing Fixed
Voice
Average revenue
per Customer
€59.0
3-Play convergent
ARPC
€ 90.1
Total Convergent
customers
+6.1%
Convergence rate
63.3%
Average
RGU
2.71
 
 
 
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Customers per X-play (‘000)
Average Revenue per Customer (€)
Average Revenue Generating Units per Customer
Customer Revenues (in M€)
 
 
 
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Enterprise revenue
 
Proximus’ Enterprise segment increased its revenue
 
to EUR
1,358 million for 2021, +0.6% growth from 2020.
 
The business
market remained a challenging competitive environment,
whereby Proximus’ Enterprise unit is transforming into a
convergent player.
 
The 2021 revenue growth was,
 
besides higher revenue from
devices, mainly driven by a positive revenue evolution
 
in Mobile
Services, Fixed Data Services, and especially strong progress
 
in
revenue from high-value ICT services, even though this was
 
more
than offset by lower revenue from ICT products at
 
lower margin.
 
Moreover, the erosion of the Fixed Voice line base
 
weighed on the
revenue, though the associated revenue loss remained
significantly below the loss of 2020.
 
The start of the year reflected some remaining Covid-19
 
effects,
especially limited business travel affecting the Roaming
 
revenue.
 
This negative year-on-year impact started to annualize
 
in the
second quarter of the year.
 
The sanitary crisis accelerated the digital transformation
 
in
enterprises which led to growth in IT services such as
 
Advanced
Workplace, Security services, Application & Data Integration
 
and
Cloud services, which did well during the course of
 
2021.
 
Moreover, with Proximus being a partner in Belgium’s vaccination
campaign, the Enterprise segment benefitted from a non-
structural increase related to Voice traffic to vaccination centers,
i.e. call routing via VAS numbers (toll-free).
Revenue (M€)
Revenue per product (M€)
Revenue evolution per product group (underlying, M€)
Mobile services (Postpaid)
The Enterprise mobile service revenue for 2021 totalled
 
EUR
280 million, an increase of +1.9% from the previous
 
year.
 
The
start of the year still included a substantial negative
 
Covid-19
effect with reduced travelling weighing on the Mobile
 
Roaming
revenue. The annualization of this effect in the second
 
quarter
2021 was translated in a significant improvement in
 
the Mobile
 
 
 
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ARPU trend. The ongoing competitive pricing pressure in
 
the B2B
unit was compensated for by a favourable evolution in
 
mobile
managed services and network services such as increased
 
A2P
messaging. Over the full-year 2021, the Mobile ARPU
 
was EUR
20.0, -2.2% down from 2021, compared to a -9.7% decrease
 
for
2020.
 
 
 
 
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The main revenue driver remains the solid year-on-year
 
growth
in the Enterprise Mobile customer base, up by 34,000
 
postpaid
SIM cards over the past twelve months or +3.1%. The
 
annualized
churn level was maintained at a low 9.4%, -0.7p.p.
 
from one year
ago.
Mobile postpaid cards added
 
(excluding M2M)
+34,000
Mobile postpaid cards (‘000)
Mobile postpaid ARPU (€)
 
Mobile services revenue (M€)
The Enterprise Mobile Service revenue was supported by a
favourable M2M revenue evolution,
 
driven by continued
growth in its M2M park, boosted by the last phase of
 
Fluvius’
Smart metering project.
 
With over 996,000 additional M2M
cards activated in 2021, Proximus closed the year with
 
a total
of 3,352,000 M2M cards. This is an increase of +42.3%
 
from
one year back.
Machine-to-Machine cards (‘000)
Fixed data
The 2021 revenue from Fixed Data services was +1.1%
 
up from
the previous year, totalling EUR 244
 
million for 2021.
 
Revenue
from the Data Connectivity Services, the largest portion
 
of this
product category, was slightly up, due to a positive balance
between eroding legacy and growing new data connectivity
services, supported by Proximus’ growing point-to-point
 
fiber
park.
 
Fixed Data revenue (M€)
In a competitive setting for Business Internet, the Internet
 
ARPU
was up by 1.2% to EUR 43.7, mainly benefitting from
 
the 1
January 2021 price indexation and a growing share of
 
Fiber in the
total internet park. Moreover, Proximus maintained a slight
favorable trend in its Enterprise Internet base, +0.3%
 
up
compared to one year back, closing the year 2021 with
 
134,000
Internet lines.
 
Fixed Internet subscriber base (‘000)
 
 
 
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Fixed Internet ARPU (€)
Fixed Voice
 
The Enterprise segment posted EUR 162 million in
 
Fixed Voice
revenue for 2021, a year-on-year decline of -4.8%,
 
slowing
down from the -8.0% in 2020.
 
Fixed Voice revenue (M€)
The cause for the Fixed Voice revenue erosion remains
 
the
decrease of the Fixed Voice park, by -9.8% in 2021.
 
Over the
year, the Enterprise Fixed Voice base was lowered
 
by -45,000
Fixed Voice lines, resulting in a total base of 417,000
 
by end-
2021.
 
This was driven by an ongoing rationalization by
customers on Fixed-line connections, lower usage and
technology migrations to VoIP.
 
Fixed Voice park (‘000)
The unfavourable revenue impact was partly offset by
 
a positive
ARPU evolution, up by +4.6% to EUR 30.8, supported
 
by the 1
January 2021 price indexation and a non-structural increase
related to Voice traffic to Covid-19 vaccination centres, i.e.
 
call
routing via VAS numbers (toll-free).
 
Fixed Voice
 
ARPU (€)
ICT
Proximus’ Enterprise unit posted for ICT revenue of
 
EUR 536
million, -1% below the previous year.
 
Within the revenue mix, revenue from high-value services
 
was up
from 2020, with an especially good performance in Advanced
Workplace, Cloud services, Security services, and Application
 
&
Data Integration. The good performance of ICT services
 
reflects
the initial successful transformation of the Enterprise business
unit into a convergent player, with a high focus on
 
higher-margin
next gen ICT services. Revenue from products with a lower
margin were down from 2020, with the global chip
 
shortage
affecting some of Proximus’ hardware suppliers.
 
 
 
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ICT Revenue (M€)
 
 
 
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Advanced Business Services
 
Revenue from Advanced Business Services totalled EUR 37
million for 2021, showing a EUR -2 million decrease
 
compared to
the previous year.
 
Advanced Business Services contains both Proximus’ growing
convergent solutions, and Smart mobility revenue from
 
Be-
Mobile, occupying a unique position in the field.
 
Revenue from
Smart mobility came under light pressure with declining legacy
technology revenues in transition towards other emerging
technologies.
Advanced Business Services revenue (M€)
Wholesale revenue
For its Wholesale operations, Proximus posted EUR 287
 
million
revenue in 2021, a -8.4% or EUR -26 million decline
 
compared
to 2020.
 
The revenue decline was for EUR -23 million related
 
to the
erosion in Interconnect revenue, with no material margin
 
impact.
 
Part of this reflects the EU regulation which lowered
 
the Fixed &
Mobile Termination rates as from 1 July 2021. The largest
 
part
however is the result of an ongoing decrease in SMS
 
usage,
mainly attributable to the COVID 19 impact in the first quarter
 
of
2021, while there was no COVID 19 impact yet in
 
the first quarter
of 2020.
 
Revenue generated by Fixed and Mobile wholesale services
 
was
down by -4.2%, totaling EUR 120 million.
 
Within the mix,
wholesale roaming and legacy connectivity services were
 
lower
year-on-year partly offset by higher revenue from
 
Wholesale
Internet and Mobile services.
 
Revenue (M€)
 
Domestic Direct Margin
Proximus’ Domestic operations posted a direct margin of
 
EUR
3,286 million, +0.1% or EUR 3 million above the
 
prior year. On an
organic basis the Domestic Direct margin was slightly down
 
by
 
-0.5%. This reflected,
 
amongst others,
 
the ongoing downward
trend of the Fixed Voice line base, at higher margin,
 
offsetting the
solid customer growth for Proximus’ other main services,
including TV, Internet, Mobile and ICT.
 
 
 
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Domestic direct margin (underlying, M€)
Domestic OPEX
Domestic operating expenses (underlying, M€)
The full-year 2021 Domestic Operating Expenses totaled
 
EUR
1,633 million, a +3.5% increase from 2020, or +2.9%
 
on
organic basis.
 
The organic increase by EUR45 million resulted from
 
a
combination of : 1-less exceptional cost benefits compared
 
to
2020 which included a higher degree of Covid-19 related
 
cost
containment; 2- higher OPEX of temporary nature
 
such as
operational costs related to the mobile network consolidation
by MWingz and company transformation expenses; and
 
3-
structural higher costs related to the Fiber deployment
 
and
initial cloudification effects whereby the nature changes
 
from
capitalized expenses to operational costs.
 
The Domestic workforce expenses were up by 3.8%
 
to EUR
1,076 million, in line with the company’s expectations
 
set for
the year. The increase from 2020 includes the year-on-year
effect of inflation-based salary increases.
 
(1 April 2020 and 1
October 2021).
Moreover, external workforce expenses were up year-on-year,
amongst others providing support for the company’s growth
ambitions in the B2B domain and Fiber-related expenses.
 
End-2021 Proximus’ Domestic headcount counted 10,
 
577
FTEs, including the 69 Mobile Vikings employees who
 
joined
the Proximus Group as of 1 June 2021. The limited net
increase compared to the 10,530 FTEs end-2020
 
resulted
from natural outflow and pensioning offsetting new hiring.
 
The Domestic non-workforce expenses were up by
 
+2.9% for
2021.
 
The ongoing tight cost control as part of Proximus’
Domestic cost program compensated partly for the higher
costs related to Proximus’ ongoing transformation, the
 
rising
number of Fiber activations, and the increasing effect
 
of
cloudification.
 
The indirect expenses of Proximus’ Domestic operations,
 
i.e.
excluding the billable ICT workforce expenses in the
 
B2B
domain, were up for 2021 by +2.5%, on organic basis.
 
 
 
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Domestic EBITDA
 
Domestic EBITDA (underlying, M€)
The
Domestic operations
 
of Proximus posted EUR 1,654
million EBITDA, a year-on-year decline of -3.0%,
 
or -3.5% on
organic basis.
 
This resulted from the higher operating expenses in 2021,
whereas the Direct Margin was kept positive year-on-year
(+0.1%).
 
The Domestic EBITDA margin as percentage of
revenue was down by -1.4 pp from the year before,
 
reaching
37.7% for 2021.
 
 
 
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4. BICS
 
Revenue
The revenue of BICS for 2021 amounted to EUR 999
 
million, a
year-on-year revenue increase of +3.6%. This was mainly
 
driven
by its Core services (messaging, mobility and infrastructure),
 
up
from the previous year by 16.7% or EUR 55 million.
 
The year-
on-year growth resulted from strong Messaging revenue
 
driven
by high A2P volumes combined with a favorable destination
 
mix
for 2021. Moreover, Mobile Services were supported
 
by the
gradual comeback in International travel.
 
For BICS’ Growth services, namely cloud communication,
 
IoT and
fraud prevention services, a total revenue of EUR 43 million
 
was
posted.
 
The 17.3% increase from 2020 resulted from a
 
strong
traction for cloud communication specifically in cloud-based
voice services for a number of leading digital enterprises.
 
In an inherently declining Legacy market, BICS focussed
 
on
growing its volumes, limiting the revenue erosion and preserving
margins.
 
For 2021, BICS’ legacy services totaled EUR 570
million, down by -4.6%, with limited impact on the
 
Direct Margin.
 
Revenue (M€)
Direct margin
 
For 2021, BICS posted a direct margin of EUR 227
 
million, stable
compared to 2020.
 
The remaining negative Covid-19 effects on
Mobility services (pandemic-related travel drop) started to fade
 
in
the second quarter, after the trend changed into a year-on-year
growth for the second half of the year. The headwind from
 
MTN’s
ongoing insourcing started to fade in the course of
 
2021 as well.
Direct margin (M€)
EBITDA
The 2021 EBITDA of BICS amounted to EUR 102 million, +0.6%
compared to the previous year,
 
following strong cost control. The
EBITDA margin as a percentage of revenue was slightly down
 
to
10.2%, -0.3 p.p.
 
 
 
 
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EBITDA (M€)
5. TeleSign
Revenue
Revenue (M€)
TeleSign posted EUR 327 million of revenue over 2021
, a
year-on-year increase of +19.9% (including a negative year-
on-year currency effect).
 
 
In 2021, TeleSign progressed well on its growth ambitions
 
in
the domain of high-margin Digital Identity Services, showing
 
a
strong year-on-year revenue growth.
 
Programmable
Communications (CPaaS) was the largest revenue contributor
in the total and closed the year with a strong
 
double-digit
revenue growth.
.
Direct Margin
 
 
 
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Direct margin (M€)
TeleSign’s 2021 direct margin was up by 1.6% year-on-year
to EUR 79 million
4
 
(including a negative currency impact). The
increase was driven by strong growth in high-margin Digital
Identity services, benefitting from newly signed contracts
 
in the
course of 2021.
4
TeleSign benefitted in 2021 in a limited way from the transfer of number of
 
Digital Services
customers previously buying A2P messaging services from BICS.
 
These customer contracts were
migrated to TeleSign in view of a more coherent split between the two companies.
 
The customer
migration started in the fourth quarter 2021, with the concerned CPAAS direct
 
margin being less
than EUR 0.5 million.
 
 
 
 
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EBITDA
EBITDA (M€)
Following the anticipated headcount investments to support
TeleSign’s growth ambitions,
 
with among others additional hiring
in TeleSign’s go-to-market and R&D, as well as the development
of its products and marketing, operating expenses
 
increased by
EUR 14 million year-on-year, to a total of EUR 63
 
million for
2021
.
These investments in TeleSign’s growth strategy were
 
reflected
in its EBITDA, totaling EUR 17 million for 2021, a decrease
 
by
EUR-13 million from one year ago
.
 
 
 
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6.
 
Definitions
A2P:
stands for Application to Person messages
 
Adjusted Net Financial Position
: refers to the total interest-bearing debt (short term + long term) minus short-term
investments, cash and cash equivalents, including related derivatives and excluding lease liabilities.
Advanced Business Services
: new solutions offered aside from traditional Telecom and ICT, such as Road User
Charging, converging solutions, Big Data and smart mobility solutions
Annualized full churn rate of X-play
: a cancellation of a customer is only taken into account when the household
cancels all its plays.
Annualized Mobile churn rate
: the total annualized number of SIM cards disconnected from the Proximus Mobile
network (including the total number of port-outs due to Mobile number portability) during the given period, divided
by the average number of customers for that same period.
ARPC
: Average underlying revenue per customer (including Small Offices).
ARPU
: Average Revenue per Unit.
Average Mobile data usage
: calculated by dividing the total data usage of the quarter by the number of data users
of the quarter.
Broadband access channels
: ADSL, VDSL and Fiber lines. For Consumer this also includes Scarlet.
Broadband ARPU
: total Internet underlying revenue, excluding activation and installation fees, divided by the
average number of Internet lines for the period considered, divided by the number of months in that same period.
BICS
: Fully owned subsidiary of Proximus, providing international wholesale solutions for voice and mobile data
providers worldwide, with an expertise in security and CPaaS solutions.
BICS legacy:
represents mainly voice services.
BICS core:
represents messaging, mobility (roaming, signaling & Mobile IP) and infrastructure services.
BICS growth:
represents cloud communication enablement, SIM for things (travel SIM & IOT services) and fraud
services.
CAPEX
: this corresponds to the acquisitions of intangible assets and property, plant and equipment, excluding Right
of Use assets (leasing).
Consumer
: unit addressing the residential and small businesses (< 10 employees) market, including the Customer
Operations Unit.
Convergence rate
: convergent customers/small offices take both Fixed and Mobile services of Proximus.
 
The
convergence rate refers to the percentage of convergent customers/small offices on the total of multi-play
customers/small offices.
 
 
 
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Cost of Sales
: the costs of materials and charges related to revenues.
Direct margin:
 
the result of cost of sales subtracted from the revenues, expressed in absolute value or in % of
revenues.
Domestic
: segment defined as the Proximus Group excluding BICS, TeleSign & Eliminations.
EBITDA
: Earnings Before Interest, Taxes, Depreciations and Amortization; corresponds to Revenue minus Cost of
sales, workforce and non-workforce expenses.
EBIT
: Earnings Before Interest & Taxes, corresponds to EBITDA minus depreciations and amortizations.
Enterprise
: unit addressing the professional market including small businesses with more than 10 employees.
Fixed Services Revenue
: total underlying revenue from Fixed services (Fixed Voice, Broadband and TV).
Fixed Voice access channels
: PSTN, ISDN and IP lines. For Enterprise specifically, this also contains the number of
Business Trunking lines (solution for the integration of Voice and Data traffic on one single Data network).
Free Cash Flow:
 
this is cash flow before financing activities, but after lease payments as from 2019.
 
ICT
: Information and Communications Technology (ICT) is an extended term for information technology (IT) which
stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless
signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which
enable users to access, store, transmit, and manipulate information. Proximus’ ICT solutions include, but are not
limited to, Security, Cloud, “Network & Unified Communication”, “Enterprise Mobility Management” and “Servicing
and Sourcing”.
Incidental:
adjustments for material (**) items including gains or losses on the disposal of consolidated companies,
fines and penalties imposed by competition authorities or by the regulator, costs of employee restructuring
programs, the effect of settlements of post-employment benefit plans with impacts for the beneficiaries, and other
items that are outside the scope of usual business operations. These other items include divestments of consolidated
activities, gains and losses on disposal of buildings,
 
transaction costs related to M&A (acquisitions, mergers,
divestments etc.), deferred M&A purchase price, pre-identified one-shot projects (such as rebranding costs), changes
of accounting treatments (such as the application of IFRIC 21), financial impacts of litigation files, fines and penalties,
financial impact of law changes (one-off impact relative to previous years), recognition of previously unrecognized
assets and impairment losses.
 
(**) The materiality threshold is met when exceeding individually EUR 5 million. No materiality threshold is defined
for costs of employee restructuring programs, the effect of settlements of post-employment benefit plans with
impacts for the beneficiaries, divestments of consolidated companies, gains and losses on disposal of buildings and
M&A-related transaction costs.
 
No threshold is used for adjustments in a subsequent quarter if the threshold was
met in a previous quarter.
 
Instant roaming:
reselling of wholesale roaming agreements to third parties in order to allow them to have roaming
coverage without negotiating individual local agreements per country.
Mobile customers
: refers to active Voice and Data cards, excluding free Data cards. Postpaid customers paying a
monthly subscription are by default active. Prepaid customers are considered active when having made or received at
 
 
 
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least one call and/or sent or received at least one SMS message in the last three months. An M2M card is considered
active if at least one Data connection has been made in the last month.
Mobile ARPU
: monthly ARPU is equal to total Mobile Voice and Mobile Data revenues (inbound and outbound, visitor
roaming excluded), divided by the average number of Active Mobile Voice and Data customers for that period, divided
by the number of months of that same period. This also includes MVNOs but excludes M2M.
Multi-play customer (including Small Offices):
 
two or more Plays, not necessarily in a Pack.
 
Net Financial Position:
refers to the total interest-bearing debt (short term + long term) minus short-term
investments, cash and cash equivalents, including related derivatives.
Non-workforce expenses
: all operating expenses excluding workforce expenses and excluding depreciation and
amortization and non-recurring expenses.
Other Operating Income:
 
this relates to income from, for example, reimbursements from damages, employees,
insurances, gain on disposal, etc.
Luxembourg Telco:
including fixed & mobile services, terminals & other
Play
: a subscription to either Fixed Voice, Fixed Internet, dTV or Mobile Postpaid (paying Mobile cards). A 4-Play
customer subscribes to all four services.
Revenue-Generating Unit (RGU)
: for example, a customer with Fixed Internet and 2 Mobile Postpaid cards is
considered as a 2-Play customer with 3 RGUs.
Reported Revenues
: this corresponds to the TOTAL INCOME.
Terminals
: this corresponds to devices for Fixed Voice, Data, Mobile and related accessories.
 
This excludes PABX, ICT
products and TV CPE.
Underlying
: refers to Revenue and EBITDA (Total Income and Operating Income before Depreciation and
Amortization) adjusted for lease depreciations and interest as from 2019 and for incidentals in order to properly
assess the ongoing business performance.
Wholesal
e: unit addressing the telecom wholesale market including other telecom operators (incl. MVNOs) and ISPs.
Wholesale fixed & mobile services
includes all solutions that Proximus offers to other operators.
 
These services
include fixed internet and data connectivity services, fixed telephony and mobile (incl. MVNO and Roaming) services
(excl. Interconnect)
 
Wholesale Interconnect
is the process of connecting an operator network with another operator network. This then
allows the customers of one operator to communicate with the customers of another operator.
 
Interconnect
includes fixed voice, mobile voice and mobile SMS/MMS services.
Workforce expenses
: expenses related to own employees (personnel expenses and pensions) as well as to external
employees.
 
X-Play
: the sum of single play (1-play) and multi-play (2-play + 3-play + 4-play).
 
 
 
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Risk Management Report
The Group has adopted a risk philosophy that is aimed
 
at
maximizing business success and shareholder value and
enhance customer satisfaction by effectively balancing
 
risk and
reward. Effective risk management is a key success factor
 
in the
realization of our objectives. The aim of risk management
 
is not
only to safeguard the Group’s assets and financial
 
strength but
also to protect Proximus’ reputation by allowing to take
 
risks in
a controlled manner.
Proximus has implemented a risk management methodology
that follows ISO 31000 – Risk Management Guidelines and
integrates adapted processes, techniques, and tools
 
to identify,
assess and manage in due time, risks and opportunities
 
in
various domains.
Financial risk management objectives and policies are
 
reported
in Note 32 of the consolidated financial statements,
 
published
on the Proximus website. Risks related to important ongoing
claims and judicial procedures are reported in Note 34 of
 
these
statements.
 
The enterprise, financial and ESG (including climate)
 
reporting
risks are detailed below, together with the related mitigating
factors and control measures. However, this is not
 
an
exhaustive analysis of all potential risks that Proximus
 
might be
facing.
Enterprise-wide risks
Proximus’ Enterprise Risk Management (ERM) is a structured
and consistent framework for assessing, responding
 
to and
reporting on risks that could affect the achievement
 
of
Proximus’ strategic development objectives. The Group’s
 
ERM
covers the spectrum of business risks (‘potential adverse
events’) and uncertainties that Proximus could encounter.
 
It
seeks to maximize value for shareholders by aligning
 
risk
management with the corporate strategy.
It does this by assessing emerging risks (e.g. from
 
regulation and
new technologies on the market) and developing mitigating
strategies in line with its risk tolerance. This risk assessment
 
and
evaluation takes place as an integral part of Proximus’
 
annual
strategic planning cycle. All relevant risks and opportunities
 
are
prioritized in terms of impact and likelihood, considering
quantitative and/or qualitative
 
aspects. The bottom-up
identification and prioritization process is supported by
 
a self-
assessment template and validation sessions. The resulting
report on major risks and uncertainties is then reviewed
 
by the
Executive Committee, the CEO and the Audit and Compliance
Committee. The main findings are communicated to the
 
Board
of Directors. Among the risks identified by the last
 
ERM exercise,
the following risk categories were prioritized (in the following
order):
Ÿ
Monetization of fiber investments
Ÿ
Business model and servicing evolution
Ÿ
Employee employability, new ways of working and
engagement
Ÿ
Competitive market dynamics
 
Ÿ
Customer experience
Ÿ
Impact of Covid-19 pandemic and resulting economic
crisis
Monetization of fiber investments
During the past years, Proximus has launched the deployment
of an open, non-discriminatory and performant fiber network
for residential and professional customers. This is of
 
major
importance for Proximus and while we are confident
 
that this
strategy provides the right answer to the increasing need
 
for
reliable, fast and low-latency connectivity in Belgium (especially
with the rise of homeworking), it can’t be excluded
 
that part of
our initiatives do not achieve the expected benefits or
 
lead to
lower revenues or profitability than anticipated.
Seen that copper technology has typically lower speed than
cable, the larger the Fiber footprint, the better the business
perspectives for Proximus. Therefore, Proximus will strive
 
to
deploy Fiber in 70% of Belgium and even beyond
 
as far as it still
makes economic sense, in order to:
Ÿ
Support current and future customer needs
(connected homes, next generation videos, gaming, …)
and enable ARPU uplift
Ÿ
Retain current market-share across residential and
enterprise customers
Ÿ
Target market-share win-backs, especially in
Flanders
Ÿ
Attract new Wholesale market opportunities
Ÿ
Simplify our operating model and get cheaper cost to
operate, by stop selling copper as soon as Fiber
 
is
available and ultimately phase out copper at the
latest 5Y after Fiber Deployment.
This long-term Fiber strategy is the right decision,
 
endorsed by
 
 
 
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the market and similarly applied in many other countries.
 
 
 
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However, it remains challenging to achieve the monetization
results in the next few years.
At first, there is an operational risk related to a smooth
migration of Proximus and OLO’s customers to Fiber, while
ensuring best-in-class customer experience to avoid migration
churn. In that matter, during the COVID-19 lock-down
 
period of
spring 2020, the application of strength social constraints
 
has
largely complexified and delayed customer activations (e.g.:
difficulty in accessing buildings for the installation of vertical
cablings; no entry to customers’ premises). At the same time,
these heavy restrictions have also impacted Fiber sales
channels by closing Proximus shops and by stopping
 
local
marketing activities. There is a risk that a potential intensification
of COVID-19 contamination in the future may lead to the
 
same
“idle period”.
Secondly, we have observed
 
that the Belgian telecom sector
regularly announces consolidations (e.g. acquisition Base
 
by
Telenet; the recent acquisition of VOO by Orange
 
Belgium) and
partnerships (e.g. ongoing discussion for a Netco
Fluvius/Telenet), and even the possibility to welcome a 4th
operator after 5G spectrum auction in 2022. A potential
 
new
entrant in the low-cost segment may put pressure on
 
market
pricing, leading the Operators to trade-off between market-
share retention and pricing preservation. In this context,
 
a
monetization through price tiering would be more difficult
 
and
would require for a larger differentiation in the offers
 
(e.g. by
including multi Gigabit services).
A third monetization risk may be driven by the multiplication
 
of
FTTH roll-out initiatives. Today, Proximus is the only player
rolling out FTTH at large scale in Belgium. Plans by competition
and utility companies (e.g. Fluvius) to roll-out a competing
FTTH network could reduce the profitability of Proximus
investments, reduce wholesale prices in the market and impact
prices that CBU and EBU can charge for their Fiber products.
In dense city areas, it is possible to overbuild and have
 
2 fiber
networks. But when leaving the city centers, the
 
construction
costs will rapidly increase making two Fiber networks
economically not profitable. Therefore, Proximus has joined
forces with two experienced industrial and financial
 
Partners
(EQT Infrastructure and Eurofiber) to accelerate and
 
expand
the Fiber rollout in less dense areas and as such ensuring
 
the
first mover advantage. Meaning to be the quickest
 
to deploy
where the density remains sufficient high (and consequently
benefit from lower unit costs) and being the first to
 
provide
Fiber technology on the market with the aim to
 
win as much
market-share as possible. Let’s also re-iterate that Proximus
fiber network will be fully open and non-discriminatory
 
with the
ability to co-use fiber assets with competition and maximize
 
the
network utilization.
Business model and servicing evolution
Proximus operates in a fast-changing industry.
 
In order to be
future-proof Proximus needs to constantly adapt to
 
new
technologies, deploy improved servicing approach and launch
new products. We are confident that our strategy
 
is focusing on
the right answers to handle these evolutions. However,
 
it
cannot be excluded that some of our initiatives do
 
not achieve
the expected outcome in terms of revenues or profitability.
 
This
could have a negative impact on our overall financial
performance.
Proximus’ business model has been and continues to
 
be
impacted by (disruptive) technologies, such as SD-WAN,
 
5G and
over-the-top (OTT) services. Our response as a group
 
to these
new technologies and market developments and its ability
 
to
introduce new competitive products or services, which are
meaningful to its customers, will be essential to our
performance and profitability in the long run.
Proximus, and the industry as a whole, is evolving towards
 
a
more individualized approach to servicing its customers. For
example, for ultra-broadband, fiber-based connectivity
Proximus adopts a local marketing approach, in which
 
the sales
forces, technical staff and local partners join forces
 
for its fiber
deployment project. Proximus also continues to develop
 
the
capacity to support business customers in their digital
transformation with its industry-tailored support and
convergent products combining connectivity, hybrid
 
cloud and
managed security solutions. For example, we embarked
 
on a
massive proactive migration of our enterprise customers
 
to
next-gen connectivity solutions.
On the residential front, we also increase our relevance
 
by
developing and expanding new local ecosystems, such
 
as our
partnerships with press conglomerates to develop our
 
ePress
offering, or our partnership with Belfius leading to development
of Banx and Beats offering. These collaborations allow
 
us to
develop relevant local solutions for and together with
 
our
customers, in order to provide competitive products and
services to the Belgian market.
Even if Proximus is successful in launching these new
technologies and mitigating initiatives are effective, the
 
risk
remains significant, as those new technologies could generate
lower revenues and/or lower profitability than existing
 
/ past
products and services, and consequentially negatively
 
impact
Proximus’ top and bottom line. The risk can therefore
 
not be
fully mitigated.
 
 
 
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Competitive market dynamics
Proximus’ business is primarily focused on Belgium, a
 
small
country with a few large telecom players, with
 
Proximus being
the incumbent. Proximus operates in growing markets
 
(e.g.
enterprise campus networks, security, smart mobility and
Application Programming Interface (API) platforms), maturing
markets (e.g. smartphones), saturated markets (e.g. fixed
Internet, postpaid mobile and fixed voice) and even
 
declining
markets (e.g. prepaid mobile and enterprise voice).
The market is in constant evolution, with competitive dynamics
at play (e.g. frequent new product launches and competitors
entering new segments of the market) which might
 
impact
market value going forward. The recent sale of VOO
 
to Orange
creates a new leader in the consumer market in Wallonia,
creating commercial convergence and network synergies.
Commercial pressure in Wallonia will likely continue due
 
to the
higher market shares of both Proximus and Orange
 
Group. The
sale also means that the scenario of a potentially aggressive
 
PE
fund entering the market is off the table. Meanwhile
 
the B2B
market consolidation continues and competition is intensifying,
e.g. in December 2020 Cegeka joined forced with Citymesh
 
to
cover the connectivity layer, with Citymesh acquiring
 
Engie’s IoT
network in 2021. A number of new MVNOs have
 
been entering
the market in 2021, such as Youfone and OneBillGlobal.
In the coming years, the market structure could further
 
evolve
with the possible entry of a new mobile operator, in
 
addition to
the three existing operators and supported by favorable
conditions that could be set in the upcoming spectrum auction.
Sector federation Agoria estimated, in a study published
 
in
2018, that the possible arrival of a 4th mobile entrant
 
could
impact the total mobile market in Belgium with a
 
reduction of
6,000-8,000 jobs and a reduced sector contribution to
 
the
state of EUR 200 million – EUR 350 million. The timing
 
of that
depends on the execution of the spectrum auction, which
 
is now
planned for June 2022. New entrants could potentially
 
push
prices down and put pressure on Proximus’ pricing model.
The upcoming spectrum allocation procedures, or auctions,
 
also
create significant uncertainty in the market. Specifically,
 
the
regulator BIPT/IBPT has proceeded with a temporary
allocation of 3.6 GHz spectrum, to be used for new
 
5G services.
This procedure saw Cegeka obtain a license for
 
5G services
(prior to its acquisition of CityMesh), further outlining
 
its
ambitions in the B2B space. These rights will be valid
 
until the
auction of this spectrum. As part of the spectrum auction
planned for June 2022, other parties with similar
 
interests to
Cegeka/CityMesh, with a focus on the B2B market, and
especially “Mobile Private Network” type of solutions,
 
could also
 
 
 
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try to obtain spectrum rights. In all cases, the acquisition
 
of
spectrum usage rights for telecom services by new
 
operators
could put pressure on Proximus’ pricing of current
 
and new
products and services.
On the residential side, substitution of fixed line services
 
by OTT
services (e.g. by apps and social media such as Skype, Facebook,
WhatsApp, etc.) and TV content (e.g. Netflix, Amazon
 
Prime
Video, Disney+) could put further pressure on revenues and
margins as these OTT services continue to gain ground.
As a result of its long-term strategy and continued network
investments (e.g. Fiber, 5G, VDSL/Vectoring, and 4G/4G+),
Proximus has been consistently improving its multi-play value
propositions by, among other things, putting more customers
on the latest technologies, keeping the lead in mobile
innovation, structurally improving customer service, partnering
with content and OTT players to offer a broad portfolio
 
of
content (e.g. Champions League, Disney+, Netflix, etc.).
 
This, in
addition to developing an omnichannel strategy and improving
digital customer interfaces (e.g. launch of the new
 
Pickx+
channel and roll-out of new TV decoder v7 based on
AndroidTV). In order to best meet the needs of its
 
customers,
Proximus launched a new convergent portfolio in the Summer
of 2020 targeted at families, Flex, which aims to provide
 
the
right solution in a flexible “build your own pack”
 
approach.
Through this successful launch, Proximus has continued
 
to
build up an advantageous and solid competitive
 
position
providing the company with other levers than just price,
reducing the risk to churn and price disruption exposure.
Nevertheless, Proximus constantly has to adjust to this
 
moving
market. Failure to come up with competitive offers
 
can result in
the loss of customers.
The price-sensitive segment, which has continued to rise in
2021 as more consumers seek ‘no frills’ offers at a
 
lower price,
is successfully addressed via Proximus’ subsidiaries Scarlet
 
and
Mobile Vikings, offering attractively priced mobile and
 
triple-
play products.
In the corporate large-company market, the scattered
competitive landscape drives price competition, which
 
may
further impact revenue and margins.
Since the drivers of these risks are mainly beyond Proximus’
control, mitigating measures are mainly targeted at limiting
 
the
impact.
While we are confident about our ability to compete
 
against a
possible increase of competition, the risk remains high
 
overall
for Proximus, with a potential impact on both Proximus’
 
top line
and bottom line.
Customer Experience
In the digital and disrupting era of today, being able
 
to offer
superior customer experience is a key challenge and a
 
core
strategic mission. The evolution of our customers’ expectations
with this regard is extremely fast; new benchmarks
 
are
emerging every day and the increasing use of
 
digital technology
is accelerating the process.
 
In that matter, understanding clearly what our customers’
expectations are is a competitive asset to build strong
foundations. This allows us to effectively meet
 
their needs and
eventually go beyond, using strong analytics to proactively
predict next best action or offer.
 
This superior experience we target to offer to our
 
customers
includes a consistent, effortless and intuitive experience
 
across
all interactions in all customer journeys, a high-quality
 
stable
network and easy-to-use products and services. In this
digitalizing and fast-moving environment, we’re making efforts
at Proximus, to offer our customers the right balance between
digital effortless interactions and human empathy.
Key transformational initiatives such as Customer experience
teams, e2e journeys redesign, Voice of the Customer
 
and CX
analytics were further enhanced to address root causes
 
of pain
points and to take charge of transformation projects
participating in Proximus’ brand promise: “Think possible”.
 
Despite these efforts, providing a superior customer
 
experience
remains a key challenge due to the fast-evolving market and
competition. Furthermore, the influence of GAFA and OTT
actors on customer expectations is challenging Proximus’
 
ability
to proactively adapt and develop new digital products
 
and
services. These being considered as competitive edges
 
through
user-friendly digital user interfaces and end-to-end customer
journeys. Side by side with the ever-present risk of a bold
 
move
from the competition, Proximus might miss new revenue
streams and, in a worst case lose its premium positioning.
 
Employee employability, new ways of
working and engagement
Failure to recruit, sustainably employ and engage a
 
talented
workforce could impact the Group’s ability to successfully
deliver services and products to its customers.
In today’s digital and disrupting era, knowledge workers are
 
a
competitive asset if they have the right skills and mindset,
 
and
 
 
 
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remain sustainably employable and engaged. The workplace
 
is
also changing faster than ever, in terms of job content,
 
work
environment, compositions of teams and new ways
 
of working
especially. Proximus could face a shortage of skilled
 
resources
in specific domains, such as cybersecurity, digital frontends,
 
data
science and agile IT or could face a shortage of
 
resources that
are motivated to adopt the changes in their workplace
 
and new
ways of working in their daily habits. This shortage
 
could
hamper the realization of its ambition to become a
 
truly
customer-centric organization and delay some of its
 
objectives
in innovation and digital transformation. To make this happen,
we need the contribution and engagement of all our
employees.
This is why Proximus is focusing so hard on training programs,
internal mobility, the hiring of young graduates from
 
relevant
fields and employer branding. We give our employees
 
the
opportunity to continuously upskill and develop, particularly
 
in
the digital field. Because we want to have the right
 
skills in-
house to shape the digital economy and society of the future,
and to guarantee the employability of our employees.
 
We set
up a tailored approach with programs and campaigns
 
for all
employees to create awareness and understanding of
 
the
impact of digital transformation, and to raise digital savviness.
We also offer them challenging and ambitious learning
 
tracks to
upskill in fields that are critical to stay relevant in
 
their job. In
2021, employees participated on average 41.3 days of training,
representing an investment of €32.34 million for Proximus.
This is also why we foster a culture of empowerment
 
where
autonomous and effective collaboration and sharing
information is a natural behavior. Enabling this new way
 
of
working requires the right digital tools. We therefore offer our
employees a coherent set of user-friendly and secure
 
digital
tools that can be used on any device. In 2021 we
 
continued to
roll out the Microsoft O365 applications, such as MS
 
Teams for
more efficient and interactive digital meetings. To get
employees on board in these continuous digital workplace
changes, we provide training in hard skills and we
 
ensure that
our team leaders have strong change-management
 
skills.
Continued initiatives on building resilience also enabled
employees to better cope with the changes and initiatives
 
to
stay connected to one another promoted team cohesion
 
to
show recognition to team members. New ways of
 
working, such
as Agile and Design Thinking, leverage employee
 
autonomy
and a more accountable way of working. This allows
 
us to
create added value for our customers more quickly.
 
We also
support a more agile culture by encouraging internal
 
mobility,
as we want to ensure that all employees keep on learning
 
and
doing a job they like. In 2021, 782 employees changed
 
jobs
internally.
The remaining risks rely on Proximus’
 
ability to effectively
upskill its workforce in line with future needs, to keep
 
our
employees engaged and motivated to learn and be at
 
their best
at work. They also rely on Proximus’
 
ability to attract the
required talents which could result in impairing
 
its ability to
deliver its promise to customers in terms of products, as well
 
as
services required to stay relevant versus competition. If the
efforts to increase organization flexibility and agility are
 
not
successful, it could lead to a reduction of Proximus’
competitiveness.
Impact of Covid-19 pandemic and
resulting economic crisis
The COVID-19 pandemic still has a significant impact
 
on
the world economy in 2021 despite global vaccination
campaigns. While the impact of the COVID-19 pandemic
 
is less
for Proximus in 2021 versus 2020, it remains sizeable
 
with an
impact on roaming revenues due to reduction in
 
especially non-
EU travel, limited supply chain disruptions and an
 
impact on the
ways of working of our employees. On top of these
 
direct
impacts, there is an indirect impact via our customers’
 
financial
stability, which if impacted by COVID-19 could lead
 
to potential
delayed payments or, in the worst case, a default.
A delayed return to normality might impact a share of
Proximus’ customer base, especially in the SE and
 
Enterprise
segments. An increase in bankruptcies, decrease in
 
revenues for
a number of them, and continuing uncertainty regarding the
“back-to-normal” timelines could impact the willingness of
 
our
customers to invest, and may therefore impact our revenues,
though we, at this stage, do not expect any substantial
 
impact
on our 2022 revenues.
Finally, it is widely reported that the situation impacts
 
the
overall morale of employees. So, it cannot be excluded
 
that this
leads to higher absenteeism or a decrease in motivation
 
among
our employees. Proximus has deployed a number of measures
to provide support for isolated employees, and to ensure that
teams remain connected. We are also starting a phased,
 
safe
return to the office depending on the evolution of the
 
situation.
BICS
Longer impact of Covid-19 has accelerated the disruption
 
of
traditional communications together with fierce competition
 
in
all segments, while also accelerating digital transformation
globally.
 
 
 
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The COVID-19 pandemic continues to disrupt trade and
international travel, significantly impacting certain business
 
lines
of BICS, a wholly-owned subsidiary of Proximus since
 
February
2021. The roaming related activities (spread over various
products lines such as signaling, data roaming enablement,
roaming voice and IoT) have suffered a material decrease
 
in
volumes. In some cases, BICS managed to limit the impact on
revenues thanks to fixed pricing and maintained
 
regional /
cross-border traffic.
However, thanks to its diversification strategy initiated in
 
2016,
BICS has also enjoyed some benefit of the crisis. By
 
accelerating
its Cloud Communications business, enabling a number
 
of
collaboration and customer service use cases, BICS has
 
been
able to maintain double digit growth for this business
 
line.
Despite this crisis and the fierce competition in all market
segments, BICS managed to maintain its position among
 
the top
international voice carriers and as the number one provider
 
of
signaling and roaming data services.
 
The performance of BICS over the past years also has
 
been
strongly impacted by the new commercial contract
 
with MTN,
combined with the effect of Covid-19. Despite these,
 
the
underlying trend for the business remains resilient,
demonstrating the success of BICS’ diversification strategy.
However, BICS expects full recovery from the Covid-19
 
impact
to take several years and for the recovery to
 
be sporadic across
various international markets.
 
On the longer term, disruptive technologies (Voice over
LTE/5G, “Over the Top” Omnichannel engagement, etc.) and
related charging models for communications and roaming
services are requiring BICS to develop new ways
 
to monetize its
assets to address these trends. Therefore, BICS will continue
 
to
invest in new growth domains, diversify its customer base,
 
and
digitalize its operation to reduce costs. At the same
 
time, BICS
will develop new charging models and will continue to
 
pursue
organic and inorganic market consolidation opportunities to
realize substantial cost synergies.
 
BICS’ business remains important for Proximus and contributes
materially to the Proximus Group’s revenues.
Telesign
TeleSign is one of the leading players at the intersection
 
of
complementary markets where it prevents and protects
business from fraudulent and malicious activity, authenticates
users and provides controlled access across applications
 
based
on the user’s account and delivers reliable, secure messaging
and voice via an API. Today, TeleSign supports 8 of
 
the 10
world’s largest digital enterprises and, as it consistently
 
grows
its customer base, it continues to successfully expand
 
its
existing customers’ adoption of its platform.
 
TeleSign operates in a highly dynamic industry and its
 
operating
results and rates of growth could vary significantly in
 
the future
based upon a number of factors, including some over
 
which
TeleSign has little or no control.
 
The digital identity and secure
programmable communications markets are intensely
competitive, and TeleSign expects competition to increase
 
in
the future from established competitors and new market
entrants.
If TeleSign or its third-party service providers experience
 
a data
security breach or network incident that allows, or is
 
perceived
to allow, unauthorized access to TeleSign’s solutions or
TeleSign’s customers’ personal data, it could lead
 
to negative
publicity and TeleSign’s reputation, business, financial
 
condition,
and results of operations could be adversely affected.
Additionally, it could lead to enforcement actions, litigation,
regulatory or governmental audits, investigations, inquiries
 
and
possible significant liability, and increased requests by
individuals regarding their personal data.
 
TeleSign relies on data acquired from third parties,
 
such as
carriers and data brokers, to build its models, design and
improve its products. If there’s a substantial increase
 
in the cost
of data acquisition, TeleSign may not be able to pass
 
that cost
increase on to its customers.
 
That would result in reduced profit
margin for TeleSign. Additionally, TeleSign has no direct
 
control
over the data quality it acquires from its suppliers
 
which are
needed to provide its digital identity services. If the data
 
quality
it acquires deteriorates over time, TeleSign’s coverage
 
may
decrease and become irrelevant for the customer.
The ongoing COVID-19 pandemic and efforts to mitigate
 
its
impact have significantly curtailed the movement of people,
goods and services worldwide, including in the geographic
 
areas
or verticals in which TeleSign conducts its business
 
operations
and from which it generates its revenue.
Environmental risk and climate
change
Climate change is high on the agenda due to growing
awareness on global warming. The Group Corporate Affairs,
responsible for legal, regulatory, public affairs, internal
 
audit
and risk management, compliance, group communications,
reputation and sustainability and security governance
 
&
 
 
 
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investigations, closely follows the evolution of regional,
national, EU and worldwide climate related guidelines,
directives, standards and laws. Proximus has a clear strategy
 
to
reduce CO2 emissions and has integrated its ambition
 
in the
#inspire2022 strategy (see Chapter 2: #inspire2022).
 
Group Internal Services (responsible for buildings) and
 
Risk
Management, together with the Network Engineering and
Operations department, regularly assess how extreme
 
climate
events could impact Proximus’ operations.
Proximus has a corporate risk management department,
analysing risks in several domains. The same process
 
is used for
direct operation, downstream and upstream risks. This
department has developed a risk management framework
based on the ISO31000 standard.
 
In the context of climate change risks, the standard
 
Proximus
risk management method is being applied involving
 
relevant
stakeholders from the Technical, Tax, Legal, Regulatory and
Facilities domains.
 
In short the process is similar to the general risk management
process and goes as follows:
Phase one is a set of workshops and independent
work, leading to a prioritization of risks. This process
 
is
documented in the risk register
.
 
In the second phase the sources of each risk
(likelihood) and the potential consequences (impact)
are analyzed and documented. The consequences
with direct financial, reputational, or strategic impact
are mapped to a scale on the basis of the Business
Impact Reference Table. This is a matrix designed to
evaluate the impact of an event on the company. It
defines categories in monetary value and "translates"
operational and reputational value to monetary
value. All risks are quantified and receive a qualitative
rating, documented in the risk register.
 
Finally, all prioritized risks are assigned to an owner
(responsible for implementation, control and regular
review). Business continuity plans have been
developed. This information is submitted annually to
the Audit and Compliance Committee.
 
In 2022, the Group will start integrating climate risk
 
structurally
into the ERM processes and will conduct a separate climate
 
risk
process in the years when the ERM is not taking
 
place.
The time horizons for the risk management process
 
are as
follows: short-term (0-3 years), medium term (3-10
 
years) and
long-term (10-25years).
In this way, the risk management directly informs financial
planning.Some examples: we take into account the increasing
 
In
this way, the risk management directly informs financial
planning. Some examples: we take into account the increasing
energy costs and the potential increase they will have
 
if a
carbon tax is introduced. Also, we have removed/replaced
 
and
are removing/replacing technical buildings to newer, more
compact and energy-efficient equipment and we are
 
starting up
partnerships in smart mobility and smart buildings.
In 2022, the Group will start integrating climate risk
 
structurally
into the ERM processes, and will conduct a separate
 
climate risk
process in the years when the ERM is not taking
 
place.
The time horizons used in the risk assessment are defined
 
as
follows: short-term (0-3 years), medium term (3-10
 
years) and
long-term (10-25years). The magnitude of impact scales
 
from
“low” (less than 100.000 € to “very high” for impacts
 
that
exceed 12.5 M€.
An overview of the climate change risks that could
 
have a
material financial impact:
Type
Climate-related risk
(potential) financial impacts
Time horizon
Magnitude of
impact
Transition
risks
Policy/legal
- carbon pricing
- more reporting
obligations
 
Price increases due to possible taxes on sectors on
which we depend plus
 
augmented resource and
auditing costs for compliancy with emerging
legislation .
Short-term
Medium
Technology
Cost related to early transition to clean energy.
Short-term
Medium
 
 
 
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- changing to lower-
emissions options
Medium-term
& long-term
Market
- increased cost of raw
materials
Increase in energy prices, increased production costs
due to high demand for electronic commodities.
Short-term
Medium
Reputation
- increased stakeholder
concern
Augmenting costs and resources with regards to
communications and reporting, such as life cycle
assessment costs.
Short-term
Medium
Physical
risks
Acute
- more extreme
weather events
 
Increased capital costs, early write-off of assets
potentially impacted by heat waves/flooding,
reduced revenue and higher costs from negative
impacts. In 2021: flooding in Wallonia.
Short-term
Medium - high
Chronic
- rising temperatures
- changing weather
patterns
- rising sea level
More frequent occurrence of acute risks to be
expected – see costs mentioned in acute risks.
Medium –term
& long-term
Medium-high
An overview of the climate change opportunities that could have a material financial
 
impact:
Resource
efficiency
Investments into energy efficiencies throughout all networks and
reduced operating costs.
Short-term
Medium-low
Eco smart
products &
services
Solutions to decarbonize other sectors create existing and new
business opportunities.
Short-term
low
Energy sources
Our renewable energy plans will enable us to reduce
 
carbon emissions
and the energy costs of our network.
 
We are already at 100%
renewable electricity, but will source more local and move
 
away from
all fossil fuel.
Medium-term
medium
Market
Shift in consumer preferences.
Short-term
low
Resilience
Climate change predictions provide input for strategy and
 
business
decisions. For example, early phase-out of infrastructure from
potential flood areas.
 
Short-term
 
low
 
 
 
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Approach of Proximus regarding the identified risks:
 
Policy/legal risks:
We track regulatory development to be able to comply with
 
existing laws, such as the relevant aspects of
 
the EU green deal. We assess
the impact of these emerging regulations, across operations,
 
supply chains and jurisdictions. In 2021, we made progress
 
towards
assessing EU taxonomy alignment and started implementing
 
the recommendations of the Task Force on Climate-Related
 
Financial
Disclosures. This information can be found respectively at
 
page 169 and 171.
Technology risks:
We regularly assess the maturity
 
and readiness of technology, such as hydrogen. We perform
 
cost-benefit analyses associated with key
technologies.
 
Market risks:
We analyze trends in supply and demand for products
 
and services and adapt our offers accordingly.
 
We scan the market for products
and services that could help Proximus in reaching its
 
climate targets. In this regard, we evaluate future
 
acquisitions. We also engage with
suppliers and customers
.
 
Reputation risks:
 
We regularly monitor the evolution of our reputation
 
among the Belgian population, in particular by using
 
the RepTrak program. We
provide many products and services that can help companies
 
and public authorities reduce their environmental footprint.
 
Striking
examples are our cloud services and Internet of Things
 
solutions such as Smart energy, Smart buildings or Smart
 
mobility. In order to
preserve our reputation, all such claims must be supported
 
by credible and verified calculation procedures.
Acute & chronic physical risks + actual case flooding in July 2021:
We use expert input from scientists, such as the OFDA/CRED
 
International Disaster Database (http:// www.emdat.be) and
 
Université
Catholique de Louvain. We’ll start using climate related
 
scenario analysis as of 2022.
 
Actual case:
 
Flooding in July caused major damage to our network:
 
backbone cable destroyed, KVD /ROP destroyed,
 
streets and buildings unstable,
damage at customers in-home, local cables damaged.
Although this is the first crisis of this magnitude,
 
national and local teams
managed it admirably, restoring our infrastructure in record
 
time and providing mobile alternative to our customers.
 
Our processes will
be reviewed based on the lessons learned
.
 
 
 
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Operational risk
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 and execution;
 
product safety and performance; information management,
 
data protection and
cyber security; business continuity; supply chain; and other
 
risks, including human resources and reputation
 
risks. Depending on the
nature of the risk involved and the particular 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 cyber security insurance program. Nevertheless,
 
these insurance programs may not provide indemnification
 
should the
traditional insurance exclusions (non-accidental event) apply.
 
The most prominent examples of operational risk factors
 
are explained below:
Resilience and business continuity
 
Security (confidentiality, integrity, availability)
 
Data protection and privacy
 
Sourcing and supply chain reliability
 
Legacy network infrastructure
 
Resilience and business continuity
Business interruptions due to internal or external threats
 
could seriously impact our customers, our internal operations,
 
our revenues or
our brand reputation.
The development of business continuity plans is a way
 
to manage risks to ensure appropriate response
 
and solutions are in place in the
event of major incidents. Building and ensuring the resilience
 
of our network, platforms and IT systems remains a top
 
priority to minimise
the customer impact in case of incidents.
 
Proximus closely follows the international standards best
 
practices guidelines. The level of preparedness (relevant
 
KPIs and score cards)
is submitted annually to the Audit and Compliance
 
Committee.
Security
Increased global cyber security vulnerabilities, threats and more
 
sophisticated and targeted cyber-related attacks pose
 
a risk to the
security of Proximus as well as its customers, partners,
 
suppliers and third-party service providers in terms
 
of products, systems and
networks.
The confidentiality, availability and integrity of the data
 
of Proximus and its customers are also at
 
risk. We’re taking the necessary actions
and making investments to mitigate those risks by employing
 
several measures, including employee awareness and training, security-
by-design, security testing, protective measures, detective measures
 
and maintenance of contingency plans.
Besides that, Proximus invests in threat intelligence and
 
security incident response. Moreover, Proximus operates
 
several Malware
Information Sharing Platforms (MISP) that enable the collection
 
and sharing of structured information on cybersecurity
 
threats on a
 
 
 
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national level with the CERT.be and on an international
 
level with other European telecom operators and
 
the GSMA (an association of
750 operators worldwide).
 
All the information collected on threat intelligence is
 
centralized in an Intelligence Broker developed by
 
Proximus, which allows
Indicators of Compromise (IoC’s) to be fed directly into
 
Proximus’ preventive and detective security controls.
 
In addition to structured
threat intelligence, Proximus actively participates in various
 
cross-industry and international expert groups to stay
 
updated on the latest
threats. Collaboration is established in the expert groups of
 
GSMA, Europol, Interpol, Belgian Cyber Security Coalition,
 
ETIS, NATO NCIA,
CCB, FIRST and Trusted Introducer.
Data protection and privacy
Data protection laws exist to strike a balance between
 
the rights of individuals to privacy and the ability
 
of organizations to use personal
data for business purposes. Keeping personal data confidential
 
and secure remains a top priority for Proximus.
In 2021, Proximus continued improving its GDPR compliance.
 
Proximus has been using the functionalities and capabilities of
 
the Collibra
data governance tool to meet certain compliance requirements
 
under GDPR - e.g. register of processing activities.
To ensure that privacy considerations are embedded within
 
its business activities, Proximus has appointed Privacy Ambassadors
 
within
the different business units to provide support
 
to the legal department and DPO office in screening privacy
 
sensitive initiatives. In view of
the privacy by design principle, Proximus has improved
 
the structured
 
privacy review process by clarifying each step of
 
the process,
establishing templates, defining roles and responsibilities,
 
etc.
As part of rendering the management of data subject
 
requests more efficiently, Proximus has implemented
 
the use of semi-automated
solutions. Our customers can continue to indicate their privacy
 
preferences within the privacy settings of the MyProximus
 
app and
website.
Sourcing & Supply chain
Proximus depends on the partnership with its suppliers
 
to provide the
 
equipment needed to ensure business continuity and
 
a
sustainable supply chain.
Supplier Risk & Relationship Management (SRRM) is defined
 
as “the implementation of strategies to manage both
 
everyday and
exceptional risks along the supply chain, based on continuous
 
risk assessment together with the partnering supplier
 
reducing
vulnerability and ensuring continuity”.
The following actions have been taken to keep the
 
supply chain risk at an acceptable level:
 
The
 
relationship
 
with
 
key
 
suppliers
 
is
 
assessed
 
and
 
documented
 
by
 
means
 
of
 
Supplier
 
Relationship
 
Management
 
(SRM)
meetings, which lay down the common strategies
 
and ensure an optimal business continuity.
Critical suppliers and
 
their sub-suppliers are
 
monitored through a
 
third party-recognized tool,
 
enabling us to
 
quickly react to
any kind of disturbance in the supply chain.
CSR risk
 
assessments and
 
audits by
 
EcoVadis and
 
in the
 
frame of
 
the
 
Joint Audit
 
Corporation (JAC)
 
and for
 
national direct
suppliers.
Strict follow-up
 
of critical suppliers’
 
contractual liability through
 
a holistic
 
Supplier Code of
 
Conduct (SCoC) and
 
rigid Service
Level Agreement (SLA) clauses.
Signing Circular Manifestos with key suppliers to ensure
 
the alignment of our suppliers with our Science
 
Based Target of 1.5°.
 
 
 
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Legacy Network Infrastructure
In 2004, Proximus was the first operator in Europe to launch
 
and ambitious fiber-to-the-curb program,
 
paving the way to subsequent
 
national Fiber-to-the-Home network roll-out. And today,
 
we are among the world’s top five operators
 
for the proportion of fiber in its
VDSL network, with tens of thousands of kilometers
 
of optical fiber connecting its street cabinets and
 
massively ramping up the amount
of kilometers in the access part of the network.
With the rise in customers’ needs, we see for the
 
coming year a continuous increase of data consumption
 
on our networks and this at far
higher speeds than in the past. This is why Proximus is pursuing
 
an aggressive multi-gigabit strategy, with
 
the ambition to leverage more
and more fiber and 5G to deliver relevant services to our
 
customers. In this context, the relevance of copper
 
will gradually decrease.
 
The fast pace of fiber deployment and adoption allows
 
us to consider decommissioning our copper
 
in the future and,
 
as such, be in a
position to realize substantial savings in terms of
 
power consumption and maintenance,
 
and to avoid having to replace this aging
technology.
 
.
 
 
 
 
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Risk Management & Compliance Committee
In 2021, the Risk Management and Compliance Committee
 
(RMC) held four sessions. The related decisions were
 
reported to the
Executive Committee and the Audit & Compliance Committee.
 
RMC meetings provide an opportunity to review files in
 
which decisions
have to be taken by finding a balance between risk taking
 
and cost, in line with the Group’s risk appetite.
 
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
 
Proximus’ risk and
compliance guidelines.
 
The RMC’s objectives are:
To oversee the company’s most critical enterprise and operational
 
risks and how management is monitoring and mitigating
those risks.
To enhance pending/open internal audit action points
 
which remain open for more than six months.
 
A disciplined approach to risk is key in a fast-moving
 
technological and competitive environment, in order to
 
ensure that Proximus only
accepts risk for which it is adequately compensated
 
(risk/return optimization).
As of 2022, sustainability topics including climate change
 
risks will be a recurrent topic on the agenda
 
of the Risk Management
Committee.
Internal Audit
 
In line with international best practices 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
the 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. Therefore, the
objectives of the Internal Audit, using COSO, The
 
Institute of Internal Auditors standards and other professional
 
frameworks, are to
ensure:
Effectiveness and adequacy of internal controls
Operational effectiveness (doing it right) and/or efficiency
 
(doing it well)
Compliance with laws, regulations and policies
The reliability and the accuracy of the information provided
Internal Audit helps us to accomplish these objectives
 
through our systematic, disciplined approach to evaluating
 
and improving the
effectiveness of risk management and control and governance
 
processes.
Internal Audit’s activities are based on a continuous
 
evaluation of perceived business risks, and it has
 
full and unrestricted access to all
activities, documents/records, properties and staff. The
 
Director Audit, Risk and Compliance (Chief Auditor) has a
 
reporting line to the
Chairman of the Audit Committee.
Quarterly Audit activity reports are submitted and discussed
 
with the Audit and Compliance Committee.
End 2020, Proximus Internal Audit department has
 
been certified by IFACI/IIA. Internal Audit has successfully
 
undertaken an IIA
Standard 1312 external quality assessment.
 
 
 
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Financial reporting risks
In the area of financial reporting, besides the general
 
enterprise risks impacting the financial reporting
 
(e.g. staff), 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. An
inappropriate accounting treatment can result in financial
 
statements which fail to provide a true and fair view
 
anymore. Changes in
legislation (e.g. pension age, customer protection) can
 
also significantly impact the reported financials.
 
New accounting standards can
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).
 
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 point 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
 
compliance with internal and external standards is systematically
 
analyzed.
Emphasis is on the development of preventive controls
 
and setting up reporting tools that enable a posteriori
 
control. The Audit and
Compliance Committee (A&CC) and the Executive Committee
 
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.) or in their application by the tax
 
authorities can significantly impact
the financial statements. To ensure compliance, it is
 
often necessary to set up additional administrative
 
processes within a short
timeframe, to collect relevant information or 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 the analysis is reflected in the corresponding
 
financial statements, in
accordance with the applicable framework.
The complexity of the legal and regulatory environment
 
in which we operate and the related cost of compliance
 
are both increasing due
to additional requirements. Furthermore, foreign and
 
supranational laws occasionally conflict with domestic
 
laws. Failure to comply with
the various laws and regulations as well as changes in
 
laws and regulations or the manner in which they
 
are interpreted or applied, may
result in damage to our reputation, liability, fines and penalties,
 
increased tax burden or cost of regulatory compliance
 
and impacts 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, there
 
is continuous monitoring of the various steps.
 
In addition, different
 
 
 
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controls are performed to ensure quality and compliance
 
with internal and external requirements and guidelines.
 
For Proximus and its major subsidiaries, a highly detailed
 
closing calendar is drawn up, which includes a
 
detailed overview of cross-
divisional preparatory meetings, deadlines for ending
 
specific processes, exact dates and hours when
 
IT sub-systems are locked,
validation meetings and reporting deliverables.
 
For every process and sub-process, 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 or trends, etc. Tests on
 
individual accounting entries are
performed for material or non-recurrent transactions and
 
on a sample basis for others. The combination of
 
all these tests provides
sufficient assurance on the reliability of the financials.
Internal control system
The Proximus Board of Directors is responsible for
 
the assessment of the effectiveness of the systems
 
for internal control and risk
management.
Proximus has set up an internal control system based
 
on the COSO model, i.e. the integrated internal
 
control and enterprise risk
management framework published by the Committee
 
of Sponsoring Organisation of the Treadway Commission
 
(“COSO”) for the first
time in 1992 and updated in May 2013. This COSO
 
methodology is based on five areas:
 
the control environment, risk analysis, control
activities, information & communication and monitoring.
Proximus’ internal control system is characterized by
 
an organization with a clear definition of responsibilities,
 
next to sufficient
resources and expertise, and also appropriate information
 
systems, procedures and practices. Proximus cannot guarantee
 
that this
internal control will be sufficient in all circumstances as
 
risks of misuse of assets or misstatements can never
 
be totally eliminated.
However, Proximus organizes a continuous review and follow-up
 
of all the components of its internal controls and
 
risk management
systems to ensure they remain adequate.
 
Proximus considers the timely delivery to all its internal
 
and external stakeholders of complete, reliable
 
and relevant financial
information in conformity with International Financial
 
Reporting Standards (IFRS) and Belgian Generally
 
Accepted Accounting Principles
(BGAAP). Therefore, Proximus has organized its internal
 
control and risk management systems over its
 
financial reporting in order to
ensure this objective is met.
Control environment
Organization of internal control
In accordance with the bylaws, Proximus has an Audit &
 
Compliance Committee (A&CC) (see caption Independence
 
and expertise in the
accounting and audit domain of at least one member
 
of the Audit and Compliance Committee’).
 
Its role is to assist and advise the Board
of Directors in its oversight on (i) the financial reporting
 
process, (ii) the efficiency of the systems for internal
 
control and risk
management of Proximus, (iii) the Proximus’ internal
 
audit function and its efficiency, (iv) the quality, integrity
 
and legal control of the
Proximus statutory and the consolidated financial statements,
 
including the follow up of questions and
 
recommendations made by the
auditors, (v) the relationship with the Group’s auditors
 
and the assessment and monitoring of the independence
 
of the auditors, (vi)
Proximus compliance with legal and regulatory requirements,
 
(vii) the compliance within the organization with
 
the Proximus’ Code of
Conduct and the Dealing Code.
 
The A&CC meets at least once every quarter.
 
 
 
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Ethics
The Board of Directors has approved a Corporate
 
Governance Charter and a Code of Conduct “A
 
Socially Responsible Company”.
 
All employees must perform their daily activities and their
 
business objectives according to the strictest
 
ethical standards and principles,
using the Group values (Collaboration, Agility and Accountability)
 
as guiding principle.
 
The Code “A Socially Responsible Company”, which is
 
available on www.proximus.com, sets out
 
the above-mentioned principles, and
aims to inspire each employee in his or her daily
 
behaviour and attitudes. The ethical behaviour is
 
not limited to the text of the Code. The
Code is a summary of the main principles and is thus not
 
exhaustive.
 
In addition, Proximus in general, and the Finance department
 
in particular, has a tradition of a high importance
 
to compliance and a strict
adherence to a timely and qualitative reporting.
Policies and procedures
The principles and the rules in the Code “A Socially Responsible
 
Company” are further elaborated in the
 
different internal policies and
procedures. These Group policies and procedures are available
 
on the Proximus intranet-sites. Every policy has
 
an owner, who regularly
reviews and updates if necessary. Periodically, and at
 
moment of an update, an appropriate communication is
 
organized.
In the financial reporting domain, general and more
 
detailed accounting principles, guidelines and instructions
 
are summarized in
reference material available on the Proximus intranet-sites.
 
In addition, the Corporate Accounting department regularly
 
organizes
internal accounting seminars to update finance and non-finance
 
staff on accounting policies and procedures.
Roles & responsibilities
Proximus’ internal control system benefits from the fact
 
that throughout the whole organization, roles and
 
responsibilities are clearly
defined. Every business unit, division and department has
 
its vision, mission and responsibilities, while on
 
individual level everybody has a
clear job description and objectives.
The main role of the Finance Division is to support
 
the divisions and affiliates by providing accurate,
 
reliable and timely financial
information for decision making, to monitor the business
 
profitability and to manage effectively corporate financial
 
services.
 
The team of the Corporate Accounting department assumes
 
this accounting responsibility for the mother company
 
Proximus and the
major Belgian companies. They also provide the support
 
to the other affiliates. For this centralized support, the
 
organization is
structured according to the major (financial) processes.
 
These major processes include capital expenditures
 
and assets, inventories,
contracts in progress & revenue recognition, financial accounting,
 
operational expenditures, provisions & litigations, payroll,
 
post-
employment benefits and taxes. This centralized support,
 
organized around specific processes and IFRS standards,
 
allows for in depth
accounting expertise and ensures compliance with group
 
guidelines.
 
The consolidation of all different legal entities into the
 
Consolidated Financial Statements of the Proximus
 
Group is done centrally. The
Consolidation department defines and distributes information
 
relating to the implementation of accounting standards,
 
procedures,
principles and rules. It also monitors changes in
 
regulations to ensure that the financial statements
 
continue to be prepared in
accordance with IFRS, as adopted by the European Union.
 
The monthly instructions for consolidation set forth not
 
only the schedules for
preparing accounting information for reporting purposes, but
 
also includes detailed deadlines and items requiring
 
particular attention,
such as complex issues or new internal guidelines.
Skills & expertise
 
 
 
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Adequate staffing is a matter to which Proximus
 
pays careful attention. This requires not only sufficient
 
headcount, but also the
adequate skills and expertise. These requirements are taken
 
into account in the hiring process, and subsequently
 
in the coaching and
formation activities, facilitated and organized by
 
the Proximus Corporate University.
For financial reporting purposes, a specific training cycle
 
was put in place, whereby junior as well as
 
senior staff have to participate
mandatory. These internally and externally organized accounting
 
seminars cover not only IFRS but local accounting
 
rules & regulations,
Tax and Company law & regulations as well. In addition,
 
the knowledge and expertise is also kept up
 
to date and extended for more
specific domains for which staff is responsible (revenue
 
assurance, pension administration, financial products,
 
etc.) through attendance
to seminars and self-study. Furthermore, employees also
 
attend general training session on Proximus new
 
business products &
services.
Risk analysis
Major risks and uncertainties are reported in the caption
 
‘Risk Management’.
Risk mitigating factors and control measures
 
Mitigating factors and control measures are reported
 
in the caption ‘Risk management.
 
 
 
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Information and communication
Financial reporting IT systems
The accounting records of Proximus and most of its affiliates
 
are kept on large integrated IT systems. Operational
 
processes are often
integrated in the same system (e.g. supply chain management,
 
payroll). For the billing systems, which are not integrated,
 
adequate
interfaces and a monitoring system have been developed.
 
For the consolidation purposes, a specific consolidation
 
tool is used.
The organizational set-up and access management are
 
designed to support an adequate segregation of
 
duties, prevent unauthorized
access to the sensitive information and prevent unauthorized
 
changes. The set-up of the system is regularly subject to
 
the review by the
internal audit department or external auditors.
Effective Internal communication
Most of the accounting records are kept under IFRS
 
as well as local GAAP. In general, financial information
 
delivered to management
and used for budgeting, forecasting and controlling
 
activities is established under IFRS. A common financial
 
language used throughout
the organization
 
positively contributes to an effective and efficient
 
communication.
Reporting and validation of the financial results
The financial results are internally reported and validated
 
on different levels. On the level of processes,
 
there are validation meetings
with the business process owners. On the level of
 
the major affiliates, a validation meeting is organized
 
with the accounting and
controlling responsible. On Proximus group level, the consolidated
 
results are split per segment. For every segment, the
 
analysis and
validation usually include comparison with historical figures,
 
as well as budget-actual and forecast-actual
 
analysis. Validation requires
(absences of) variances to be analyzed and satisfactorily
 
explained.
Afterwards, the financial information is reported and explained
 
to the Executive Committee (monthly) and presented
 
to the A&CC
(quarterly).
Supervision and assessment of internal control
The effectiveness and efficiency of the internal control
 
are regularly assessed in different ways and by different parties:
Ÿ
Each owner is responsible for reviewing and improving
 
its business activities on a regular basis: this includes
 
a.o. the process
documentation, reporting on indicators and monitoring of
 
those.
Ÿ
In order to have an objective review and evaluation
 
of the activities of each organization department,
 
Proximus’ Internal Audit
department conducts regular audits across the Group’s operations.
 
The independence of Internal Audit is ensured via
 
its direct
reporting line to the Chairman of the A&CC. Audit assignments
 
performed may have a specific financial processes
 
scope but
will also assess the effectiveness and efficiency of
 
the operations and the compliance towards the applicable
 
laws or rules.
Ÿ
The A&CC reviews the quarterly interim reporting and
 
the specific accounting methods. The main disputes
 
and risks facing the
Group are considered; the recommendations of internal
 
audit are followed-up; the compliance within
 
the Group with the Code
of Conduct and Dealing Code is regularly discussed.
Ÿ
Except for some very small foreign affiliates, all legal
 
entities of the Proximus Group are subject to an external audit.
 
In
general, this audit includes an assessment of the internal
 
control, and leads to an opinion on the statutory
 
financials and on
the (half-yearly and annual) financials reported
 
to Proximus for consolidation. In case the external
 
audit reveals a weakness or
identifies opportunities to further improve the internal
 
control, recommendations are made to management.
 
These
recommendations, the related action plan and implementation
 
status are at least annually reported to the A&CC.
 
 
 
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Expertise of the Audit & Compliance Committee
members
Proximus has an Audit & Compliance Committee which
 
consists of five non-executive directors, the majority of
 
whom must be
independent. In line with its charter, it is chaired by
 
an independent director.
 
A majority of the members of the Audit & Compliance Committee
 
has
 
extensive expertise in accounting and audit. The Chairwoman
 
of
the Audit & Compliance Committee, Mrs. Catherine Vandenborre
 
holds a degree in Business Economics as well as
 
degrees in Tax and
Financial Risk Management. The Chairwoman and
 
the majority of the members exercised several board
 
or executive mandates in large
Belgian or international companies.
Evolution in research and development activities
 
The world around us is changing faster than ever before.
 
We are ready for this as research on new
 
technologies and innovation is in the
DNA of Proximus.
Fiber as solution for customers’ future needs
To prepare customers’ future needs, we continuously
 
invest in an innovative high speed fiber network
 
using the newest state of the art
fiber technologies. In the frame of our #inspire2022 strategy,
 
we committed to connect 4.2 million homes and businesses
 
to fiber by
2028.
The ambition is also to expand our fiber roll-out with
 
the goal of covering the entire Brussels-Capital
 
Region by the end of 2026.
 
Proximus is the first operator to add 25G capabilities
 
to its commercial network in Belgium. Together with
 
Nokia, we have deployed the
first live network based on Nokia’s 25G Passive Optical
 
Network (PON) technology. 25 Gigabit PON is the latest
 
generation, boosting
both download and upload speeds on fiber networks
 
to unprecedented levels around 200 times faster
 
than the most advanced
broadband networks of ten years ago. This technological
 
breakthrough shows the virtually unlimited capacity
 
of fiber. In fact, the
innovation makes our network the fastest in the world,
 
earning Proximus the global award for Fiber Operator
 
of the Year, an
acknowledgement issued by the Broadband World Forum
 
(BBWF). This confirms the potential of our fiber network
 
to become a key
driver of the digital economy and the society we
 
stand for.
 
Mobile Leadership
We have a strong track record in pioneering mobile
 
communications, delivering the best possible mobile
 
experience for our customers
and we will continue to do so. In 2021, we started
 
the consolidation of our Radio Access Network
 
(RAN), which has already shown
positive results in terms of coverage gain, throughput
 
and customer experience. In parallel we continued
 
our investments to improve the
quality of our legacy mobile network by adopting advanced
 
technical solutions to optimize network performance
 
based on automation
and autonomy.
 
Our 5G ambition is to be recognized as the go-to partner
 
for 5G products and services by offering the broadest
 
5G coverage and highest
performing network in Belgium.
 
In order to further accelerate the development
 
of 5G use cases, we launched a dedicated 5G innovation
platform offering a better insight into the possibilities
 
of 5G.
 
It allows us to cocreate with our technological, wholesale
 
partners and
enterprise customers, both public and private, towards
 
the development of relevant innovative solutions that answer
 
today’s societal
 
 
 
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and business needs. A variety of 5G use cases have been
 
successfully developed and demonstrated in
 
multiple domains, such as
industrial applications, construction, entertainment, healthcare,
 
agriculture.
 
The capabilities to innovate within the 5G domain have
 
been expanded, 2 additional 5G innovation incubators
 
have been launched, one
in the industry 4.0 domain, the other one in the Logistics
 
domain.
Customer experience
To continuously improve the experience of all our
 
customers, we launched multiple projects in 2021 to
 
boost the VDSL performance of
our customers directly connected to the central offices
 
and who didn’t enjoy yet the latest improvements
 
of VDSL technologies. We also
implemented machine learnings techniques to predict
 
performance of VDSL lines and, as such, for instance,
 
provide HD TV services to
households who didn’t have yet access to it.
Data driven company to the benefit of our customers
The use of automation, advanced analytics and artificial
 
intelligence enables us to offer highly qualified services.
 
With strong personalization and authentication approach,
 
we make our customer smile. We embed digital in everything
 
we do and guide
our customers through their journey to become digital,
 
cloud enabled, data driven and end-to-end secure.
We have set up a partnership with Tourism Wallonia
 
to stimulate tourism in Wallonia through better understanding
 
and analysis of
touristic sites (e.g. Villers-la-Ville and le Pays des Lacs).
 
Here we use a unique combination of both data
 
from on-site sensors (Internet of
Things) and more macro data like our own network data, financials
 
partner
 
and open data
 
The Proximus data centres are evolving to green data
 
centres with high availability using the newest
 
cloud technologies and the most
advanced security concepts.
 
We use advanced analytic and AI too, based on real
 
time performance measurements, assess the stability and
 
quality of our platforms
and services, allowing fast detection, root cause analysis
 
and even prevention of degradation
Trusted curator of TV content
We are a trusted curator of TV content, presenting it
 
through a multiscreen content navigator and delivering
 
novel personalized
recommendations. We excel in user experience on our
 
Pickx TV platform by differentiating and keeping
 
a close relationship with our
customers. The Proximus decoders have been enriched
 
with several new features.
 
Thanks to the collaboration with Apple TV, Proximus
 
customers can use the Apple TV app to buy or rent
 
movies, subscribe to Apple TV+
and Apple TV channels, as well as enjoy Apple Music, Apple
 
Arcade and thousands of other apps, including games,
 
fitness and education,
all through one device. Thanks to the integration of
 
the Proximus Pickx app, customers get access
 
to the Pickx TV platform, offering a
personalized content experience available on every screen.
Analytics, the Internet of Things and other applications
Proximus is Belgium’s leading Internet of Things (IoT)
 
connectivity provider using different wireless technologies
 
(LTE, LoRa,
 
NB-IoT,
LTE-M). However, Proximus does not limit its use of
 
IoT to connectivity. With our data-driven solutions, we
 
help our customers to
innovate by connecting applications and devices, aggregating
 
different data streams, providing insights into their
 
data, or automating
processes.
 
With our smart end-to-end ICT solutions, we do more
 
than just tailor our offerings to different segments.
 
We strongly believe
technology can act as a force for good. That’s why
 
we continuously leverage our technology to address
 
critical societal and
environmental challenges, aiming to improve the lives of
 
people everywhere while delivering true value.
 
 
 
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Together with partners, we develop smart solutions
 
in specific domains such as:
Smart health
Proximus has strengthened its strategic focus on the healthcare
 
market. Through connectivity, ICT and security solutions
 
and services,
Proximus aims to become a major partner in the digital
 
transformation and innovation of the medical industry.
Smart building and smart energy
Responding to the issue of climate change, Proximus offers
 
IoT solutions and data analytics to help customers
 
make smarter use of
energy and reduce their carbon footprints. The energy
 
transition, particularly the contribution of buildings to
 
a more sustainable world, is
at the heart of our initiatives. That is why we onboarded
 
new partners (such as MeetDistrict, Mapwize and
 
Be-Park) that enable us to
offer our customers a large range of smart building
 
solutions.
E-education
To respond to the growing need for better connectivity
 
in education, Proximus and Signpost, the Belgian
 
market leader for ICT solutions
in education, signed a strategic cooperation agreement
 
in April 2021. End 2021, we already provided 44
 
schools with a fiber connection.
Ten other schools signed a DSL contract.
Smart cities
Cities such as Antwerp, Brussels, Genk, Ghent and the
 
coastal cities were eager to call on our Realtime
 
Crowd Management during the
COVID-19 pandemic. This service monitors crowd flows based
 
on anonymized and aggregated data from cell phones.
Proximus affiliate Be-Mobile specializes in smart solutions
 
for sustainable mobility. Be-Mobile connects vehicles
 
with road infrastructure.
An example would be smart traffic lights that are
 
tuned to real-time traffic volumes to enable better
 
traffic flow. Be-Mobile also
connects vehicles with other road users. These can be
 
passenger cars, but also logistics transport or
 
public transport.
Open innovation
Proximus believes in open innovation where, together
 
with partners, we combine our assets to create
 
new ecosystems and products
which achieve a higher value for all parties involved
In B2B, we partnered with Besix (smart buildings)
 
and i.Leco (energy transition) to create Aug.e, a smart
 
building application
 
platform.
 
In the field of drones, in addition to the 6th network
 
partnership between Proximus, SkeyDrone and DroneMatrix,
 
we are developing a
partnership with Helicus for the implementation
 
of BVLOS medical drone flights. Recently, we have
 
also begun to explore the area of
image and video processing, analytics and edge computing.
Besides healthcare, Azure Cloud, edge computing, smart
 
retail and smart energy are just a few examples
 
of the wide range of topics and
technical innovations we are collaborating on with our partners.
One example of B2C is our partnership with Belfius
 
that has given birth to Banx, the digital app for sustainable
 
banking.
Next to these corporate partnerships, Proximus collaborates
 
intensively with universities and university
 
colleges. This way we gain
access to academic insights and innovative technologies. In
 
return, academic institutions can use our data, infrastructure
 
and resources
to put their ideas into practice. We have ongoing
 
collaboration projects at the ULB/VUB (Brussels),
 
UCLouvain (Louvain-la-Neuve), KU
Leuven (Leuven) and UGent (Ghent) in the domains of
 
security, mobile and fixed networking, AI, IoT
 
and digital inclusion.
 
Thanks to exclusive partnerships, we continuously extend
 
and trigger our own research & development
 
carried out in the various
Proximus labs and mastered by our innovation
 
teams.
Sustainability
Digital innovations will shape the future of our
 
economy and society. Besides increasing the digital
 
possibilities of our customers, we also
 
 
 
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want to have an impact on societal and ecological
 
challenges.
 
Sustainability is one of the 4 pillars of our business
 
strategy. This has ensured that Proximus is internationally
 
regarded as a 'best
practice' company for its own sustainability efforts but
 
also for the strict social, ethical and environmental
 
standards that we impose to
our suppliers. Proximus has received a gold medal
 
from EcoVadis for its efforts and activities in the field
 
of sustainable
development/sustainability for the fifth time in a row
 
and our current score even places us in the top
 
5% of companies evaluated by
EcoVadis
 
Also, climate change is one of the most pressing issues
 
of our time and a major concern of society. Our
 
ambition is to be a leading
company in the fight against climate change and we
 
are committed to further reducing our impact on
 
the environment and enabling our
customers to reduce theirs through our products & services.
 
We have made it a priority to provide our customers
 
with a green, reliable network that allows for the
 
best connection quality while
reducing its impact on the environment as much as possible
 
by applying the principles of circular economy
 
in the design of the network
itself. Our network, like our buildings for that matter,
 
operates exclusively with electricity from renewable
 
sources. And this since we
joined RE100, a global initiative bringing together the world's
 
most influential businesses and driving the transition
 
to 100% renewable
energy.
 
In order to adapt to technological developments and
 
to its users' needs, our network is constantly evolving.
 
The accelerated optical fiber
roll-out allows to recover copper cables for recycling
 
or reuse for other purposes. Fiber is also beneficial
 
for the environment as it is
more energy efficient than copper and has a longer lifespan.
 
 
 
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International operations
We operate internationally through BICS and TeleSign.
BICS
BICS continuously invests in advancing its global communication
 
solutions portfolio addressing both telco, enterprise
 
and cloud
segments. Today, BICS is focusing its R&D on delivering
 
5G services, (e-)SIM and IoT technology, digital communication
 
services and a
strong fraud, security and analytics offering. BICS
 
continues to monitor market evolution and customer
 
needs to enhance its services,
features and overall product portfolios.
TeleSign
TeleSign has invested considerable time and resources
 
into building a world-class research and development
 
organization that
continually enhances its market-leading services.
 
Today, its research and development efforts are focused primarily
 
on building industry leading digital identity solutions,
 
addressing all
primary use cases, enhancing deployment flexibility, and
 
providing seamless integration across cloud and
 
on-premises applications.
TeleSign regularly releases updates to its services which incorporate
 
new features and enhance existing ones
 
 
 
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Other information
 
Rights, commitments and contingencies as of 31 December
 
2021
Disclosures related to rights, commitments and contingencies
 
are reported in note 34 of the consolidated financial
 
statements.
Diversity & Inclusion Statement
Diversity & Inclusion Statement is reported in chapter
 
CH3.1 Governance & Compliance of the Annual
 
report
.
Use of financial instruments
 
Disclosures related to the use of financial instruments
 
are reported in note 32 of the consolidated
 
financial statements.
 
Circumstances which may considerably impact the development
 
of
the Group
Circumstances which may considerably impact the development
 
of the Group are reported in the sections
 
“Risk Management” and
“Internal Control” of this management report.
 
Treasury shares
 
Disclosures related to treasury shares are reported in
 
note 18 of the consolidated financial statements.
Capital management
The purpose of the Group’s capital management is to
 
maintain net financial debt and equity ratios that allow
 
for security of liquidity at all
times via flexible access to capital markets, in order
 
to be able to finance strategic projects and to offer
 
an attractive remuneration to
shareholders.
 
Over the two years presented, the Group did not
 
issue new shares or any other dilutive instruments.
 
Post-balance sheet events
Disclosures related to post-balance sheet events
 
are reported in note 39 of the consolidated financial
 
statements.
 
On behalf of the Board of Directors,
 
 
 
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Brussels, 17 February 2022
Guillaume Boutin
 
Stefaan De Clerck
Chief Executive Officer
 
Chairman of the Board of Directors
 
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Statutory report of the joint auditors
 
to the shareholders’ meeting of
Proximus NV van publiek recht/Proximus
 
SA de droit public for the year
ended 31 December 2021 - Consolidated financial statements
In the context
 
of the statutory
 
audit of the
 
consolidat
 
ed financial
 
statements
 
of Proximus
 
NV van publiek
recht/Proximus
 
SA de droit public
 
(“the company”)
 
and its subsidiaries (jointly
 
“the group”),
 
we hereby submit
 
our
statutory audit
 
report. This report
 
includes our report
 
on the consolidated
 
financial statements
 
and the other legal
and regulatory
 
requirements.
 
These parts
 
should be considered
 
as integral
 
to the report.
We, members
 
of the joint auditors,
 
were appointed
 
in our capacity
 
as statutory auditor
 
by the shareholders’
 
meeting
of 17 April 2019, in accordance
 
with the proposal
 
of the board of directors
 
issued upon recommendation
 
of the audit
and compliance
 
committee.
 
Our mandate
 
will expire
 
on the date
 
of the shareholders’
 
meeting deliberating
 
on the
financial statements
 
for the year
 
ending 31 December
 
2021.
Deloitte
 
Bedrijfsrevisoren/réviseurs
 
d’Entreprises
 
has performed
 
the statutory
 
audit of the
 
consolidated
 
financial
statements
 
of Proximus
 
NV van publiek
 
recht/Proximus
 
SA de droit public for
 
12 consecutive
 
years. CDP Petit
 
& Co
has
 
performed
 
the statutory
 
audit of the
 
consolidated
 
financial
 
statements
 
of Proximus
 
NV van publiek
 
recht /
Proximus
 
SA de droit public for
 
3 consecutive
 
years.
 
Report on the consolidated financial statements
 
Unqualified opinion
We have audited
 
the consolidated
 
financial statements
 
of the group,
 
which comprise the
 
consolidated
 
balance sheet
as at 31 December
 
2021, the consolidated
 
income statement,
 
the consolidated
 
statement
 
of other comprehensive
income, the consolidated
 
statement
 
of changes in equity
 
and the consolidated
 
cash flow
 
statement
 
for the year then
ended, as well
 
as the summary
 
of significant
 
accounting
 
policies and
 
other explanatory
 
notes. The
 
consolidated
balance sheet
 
shows total
 
assets of 9
 
233 million EUR
 
and the consolidated
 
income statement
 
shows a profit
 
for the
year then
 
ended of 445
 
million EUR.
In our opinion, the consolidated
 
financial statements
 
give a true and fair
 
view of the group’s
 
net equity and financial
position as
 
of 31 December
 
2021 and of
 
its consolidated
 
results and
 
its consolidated
 
cash flow
 
for the
 
year then
ended, in accordance
 
with International
 
Financial Reporting
 
Standards (IFRS)
 
as adopted by the European
 
Union and
with the legal
 
and regulatory
 
requirements
 
applicable in
 
Belgium.
Basis for the unqualified opinion
We conducted
 
our audit
 
in accordance
 
with International
 
Standards
 
on Auditing
 
(ISA), as
 
applicable
 
in Belgium.
 
In
addition, we
 
have applied
 
the International
 
Standards
 
on Auditing
 
approved
 
by the IAASB
 
applicable
 
to the current
 
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financial year,
 
but not yet approved
 
at national level.
 
Our responsibilities
 
under those standards
 
are further described
in the “Responsibilities
 
of the joint
 
auditors
 
for the
 
audit of the
 
consolidated
 
financial
 
statements”
 
section of our
report. We
 
have complied
 
with all ethical
 
requirements
 
relevant
 
to the statutory
 
audit of consolidated
 
financial
statements
 
in Belgium,
 
including those
 
regarding
 
independence.
We have obtained
 
from the board
 
of directors and
 
the company’s
 
officials the explanations
 
and information
necessary for
 
performing
 
our audit.
We believe that
 
the audit evidence
 
obtained is sufficient
 
and appropriate
 
to provide a basis
 
for our opinion.
 
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Key audit matters
Key audit
 
matters are
 
those matters
 
that, in
 
our professional
 
judgment, were
 
of most significance
 
in our audit
 
of the
consolidated financial
 
statements
 
of the current
 
period. These matters
 
were addressed
 
in the context
 
of our audit
 
of
the consolidated financial
 
statements as
 
a whole and in
 
forming our opinion
 
thereon, and we do
 
not provide a
separate opinion on these matters.
Key audit matters
 
How our audit
 
addressed the key
 
audit matters
We addressed
 
this key
 
audit matter
 
by applying the
following controls
 
and substantive
 
test procedures
 
to
the material revenue streams:
We tested
 
the design and
 
operating effectiveness
 
of
the relevant
 
key controls
 
in place in
 
the revenue
 
cycle,
as well as
 
in the IT
 
environment in
 
which billing, rating
and other relevant
 
support systems
 
reside, including
the change
 
control procedures
 
in place
 
around
systems that
 
support material revenue
 
streams;
We performed tests
 
of details on a sample of
individual revenue
 
transactions, tracing
 
these back
 
to
order documentation and
 
cash receipts; and
We performed
 
a substantive
 
analytical review.
Additionally we assessed
 
the appropriateness of the
group's accounting policies with
 
respect to revenue
recognition
 
and assessed
 
compliance with
 
the
applicable
 
accounting standards.
Revenue recognition
 
on telecommunication
 
activities
The accuracy of revenue
 
is an inherent risk
 
in the
telecommunications industry.
 
This is driven by the
complexity of
 
billing systems,
 
the magnitude
 
of volumes
of data in
 
combination with different
 
products on the
market and
 
price changes during
 
the year.
 
The correct
application of revenue recognition accounting
 
standards
 
to
the separate elements
 
of a customer’s
 
contract is complex
and requires judgement
 
by management.
The details
 
on revenue
 
recognition are
 
included in
 
notes
2 ‘Significant
 
accounting policies’,
 
14.2 ‘Contract
 
Assets’,
22 ‘Other
 
current payables
 
and contract
 
liabilities’ and 23
‘Revenue’.
 
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Goodwill impairment
 
test
Per 31 December
 
2021, goodwill amounts to
2 588
million EUR and relates to the
 
Group’s three Cash
Generating Units (‘CGU’), respectively Domestic CGU
 
(2
188 million
 
EUR), International
 
Carrier Services
 
(‘ICS’)
CGU (298 million
 
EUR) and Telesign CGU
 
(102 million
EUR).
The annual impairment testing
 
of goodwill was
important for our
 
audit because it relies on
 
a number of
critical judgements,
 
such as the
 
determination of the
 
CGU
as well as estimates
 
and assumptions used in a
discounted free cash
 
flow model to determine the
CGU’s recoverable
 
value. The group uses
 
a business plan
reflecting the future strategy
 
and using external sources
for macro-economic assumptions
 
such as inflation and
long-term industry growth rate, as well as group specific
assumptions on tax rates,
 
capital spending and discount
rates.
The details on the accou
 
nting for goodwill and
 
the
disclosure requirements
 
under IAS
 
36 -
Impairment
 
of
assets
are included in note 2
 
‘Significant accounting
policies’ and 3
 
‘Goodwill’ of the
 
consolidated financial
statements.
We
 
assessed the
 
facts and
 
circumstances
 
with respect
to
the shareholding structure of Telesign and read the
minutes of board of directors meetings regarding
 
the
 
US
listing process to confirm our understanding.
We
 
assessed
 
the available
 
information
 
with
 
reference
to
the recoverable
 
value of the CGU, both
 
related to Fair
Value Less Costs to Sell and
 
through Value In Use.
We challenged the key
 
assumptions, methodologies and
data used by the group in its
 
determination of the
recoverable value,
 
for example by
 
analysing sensitivities
in the group’s discounted cash flow model
and
benchmarking
 
with
 
external
 
macro-economic
 
data
to
determine if they were
 
reasonable and consistent
 
with
the current economic climate.
We
 
assessed
 
the historical
 
accuracy
 
of management’s
estimates.
Additionally, we
 
assessed the sensitivities of assumptions
on the CGU’s
 
headroom and verified
whether
 
a
reasonable
 
possible change
 
in
 
assumptions
could cause the
carrying amounts to exceed
 
its recoverable
 
value. We
assessed the adequacy of the company’s
 
disclosures in
the consolidated financial
 
statements.
 
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Responsibilities of the board of directors for the preparation of the consolidated financial statements
The board of directors is responsible for
 
the preparation and fair presentation
 
of the consolidated financial statements
in accordance with International Financial Reporting
 
Standards (IFRS) as adopted by the European Union
 
and with the
legal and regulatory
 
requirements applicable in Belgium and for such internal
 
control as the board of directors
determines is necessary to enable the preparation
 
of consolidated financial statements that
 
are free from material
misstatement, whether due to fraud
 
or error.
In preparing the consolidated financial statements,
 
the board of directors is responsible for
 
assessing the group’s
ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using
the going concern basis of accounting unless the board of directors
 
either intends to liquidate the group or to cease
operations, or has no other realistic alternative
 
but to do so.
Responsibilities of the joint auditors for the audit of the consolidated financial statements
Our objectives are to obtain
 
reasonable assurance about whether
 
the consolidated
 
financial statements
 
as a whole
are free from material misstatement,
 
whether due to fraud or error,
 
and to issue a statutory auditor’s report
 
that
includes our opinion. Reasonable assurance is a high level of assurance,
 
but is not a guarantee that an audit conducted
in accordance with ISA will always detect
 
a material misstatement when it exists.
 
Misstatements can arise from
 
fraud
or error and are considered
 
material if, individually
 
or in the aggregate, they could
 
reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated
 
financial statements.
During the performance of our audit, we comply with the legal, regulatory
 
and normative framework as applicable to
the audit of consolidated financial statements
 
in Belgium. The scope of the audit does not comprise any assurance
regarding the future viability of the company nor regarding the efficiency or effectivenes
 
s
 
demonstrated by the board
of directors in the way that the company’s
 
business has been conducted or will be conducted.
As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
identify and assess the risks of material misstatement
 
of the consolidated financial statements, whether
 
due to
fraud or error, design and perform audit procedures
 
responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide
 
a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
 
from an error,
 
as fraud may involve collusion, forgery,
intentional omissions, misrepresentations,
 
or the override of internal control;
obtain an understanding of internal
 
control relevant to the audit in order
 
to design audit procedures that are
appropriate in the circumstances, but
 
not for the purpose of expressing an opinion on the effectiveness
 
of the
group’s internal
 
control;
evaluate the appropriateness of accounting
 
policies used and the reasonableness of accounting estimates and
related disclosures made by the board of directors;
conclude on the appropriateness of the use of the going concern
 
basis of accounting by the board of directors and,
based on the audit evidence obtained, whether a material uncertainty
 
exists related to events or
 
conditions that
may cast significant doubt on the group’s
 
ability to continue as a going concern. If we conclude that
 
a material
uncertainty exists, we are required
 
to draw attention in our
 
statutory auditor’s report to the related
 
disclosures in
the consolidated financial statements
 
or, if such disclosures
 
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of
 
our statutory auditor’s report.
 
However,
 
future events
or conditions may cause the group to cease to
 
continue as a going concern;
evaluate the overall presentation,
 
structure and content of the consolidated
 
financial statements, and whether the
consolidated financial statements
 
represent the underlying transactions and events
 
in a manner that achieves fair
presentation.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus NV van publiek recht/Proximus SA
 
de droit public |
31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
344
obtain sufficient appropriate audit
 
evidence regarding the financial information
 
of the entities and business
activities within the group to express an opinion on the consolidated
 
financial statements. We are
 
responsible for
the direction, supervision and performance of the group audit. We
 
remain solely responsible for our audit opinion.
We communicate with the audit
 
and compliance committee regarding,
 
amongst other matters, the planned scope and
timing of the audit and significant audit findings, including any significant
 
deficiencies in internal control that we
identify during our audit.
We also provide those the audit and compliance committee
 
with a statement that we
 
have complied with relevant
ethical requirements regarding
 
independence, and we communicate with them about all relationships
 
and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated
 
to the audit and compliance committee, we determine
 
those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the key
audit matters. We
 
describe these matters in our report unless law or regulation
 
precludes any public disclosure about
the matter.
Other legal and regulatory requirements
 
Responsibilities of the board of directors
The board of directors is responsible for
 
the preparation and the content of the directors’
 
report on the consolidated
financial statements, the statement
 
of non-financial information attached
 
to the directors’ report on the consolidated
financial statements and other matters disclosed in the annual report
 
on the consolidated financial statements.
Responsibilities of the joint auditors
As part of our mandate and in accordance with the Belgian standard complementary to the International Standards on
Auditing (ISA) as applicable in Belgium, our responsibility is to verify,
 
in all material respects, the director’s report
 
on
the consolidated financial statements,
 
the statement of non-financial information
 
attached to the directors’ report
 
on
the consolidated financial statements
 
and other matters disclosed in the annual report
 
on the consolidated financial
statements, as well as to report on these matters.
Aspects regarding the directors’ report on
 
the consolidated financial statements
 
and other information disclosed in
 
the annual
report on the consolidated financial statements
In our opinion, after performing the specific procedures on
 
the directors’ report on the consolidated
 
financial
statements, this report is consistent
 
with the consolidated financial statements
 
for that same year and has been
established in accordance with the requirements of article 3:32 of the Code of companies and associations.
In the context of our statutory audit of
 
the consolidated financial statements
 
we are also responsible to consider,
 
in
particular based on information that we became aware
 
of during the audit, if the directors’ report on the consolidated
financial statements and other information
 
disclosed in the annual report on the consolidated financial statements
 
are
free of material misstatement,
 
either by information that is incorrectly
 
stated or otherwise misleading. In the context
of the procedures performed, we are not aware of such
 
material misstatement.
The non-financial information as required by
 
article 3:32, § 2 of the Code of companies and associations, has been
disclosed in a separate report, attached
 
to the directors’ report on the consolidated
 
financial statements. This
statement on non-financial information
 
includes all the information required by article 3:32, § 2 of the
 
Code of
companies and associations and is in accordance with the consolidated
 
financial statements for the financial year then
ended. This
 
non-financial information has been established by the
 
company in accordance with the GRI Standards
reporting principles. In accordance with article 3:80 § 1, 5° of the Code of companies and
 
associations we do not
express any opinion on the question whether this non-financial information
 
has been established in accordance with
GRI standards – Core Option reporting principles mentioned
 
in this non-financial information.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus NV van publiek recht/Proximus SA
 
de droit public |
31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
345
Statements regarding independence
No services, incompatible with the statutory audit of consolidated financial statements as referred to by the law,
have been performed and our audit firms and, if applicable, our networks
 
remained independent from the
company during the performance of our mandate.
The fees for the additional non-audit services compatible with the
 
statutory audit, as defined in article 3:65 of the
Code of companies and associations, have been properly
 
disclosed and disaggregated in the notes to the
consolidated financial statements.
Single European Electronic Format (SEF)
In accordance with the draft standard
 
on the audit of the compliance of the financial statements with the Single
European Electronic Format ("ESEF"), we have
 
also performed the audit of the compliance of the ESEF format
 
and the
tagging with the technical regulatory standards
 
set out in the European Delegated Regulation No.
 
2019/815 of 17
December 2018 ("Delegated Regulation").
The board of directors is responsible for
 
the preparation, in accordance with the ESEF requirements,
 
of the digital
consolidated financial statements
 
as an electronic file in ESEF format (“digital
 
consolidated financial statements”)
included in the annual financial report.
Our responsibility is to obtain sufficient and appropriate
 
evidence to conclude that the format and the tagging of the
digital consolidated financial statements comply,
 
in all material respects, with the ESEF requirements as stipulated by
the Delegated Regulation.
Based on our work, in our opinion, the format and the tagging of information
 
in the digital consolidated financial
statements included in the annual financial report
 
of Proximus NV van publiek recht/Proximus
 
SA de droit public as of
31 December 2021 are, in all material respects,
 
prepared in accordance with the ESEF requirements
 
as stipulated by
the Delegated Regulation.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
 
Proximus NV van publiek recht/Proximus SA
 
de droit public |
31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
346
Proximus NV van publiek recht/Proximus
 
SA de droit public | 31 December 2021
Other statements
This report is consistent with our additional
 
report to the audit and compliance committee referred to in article
11 of Regulation (EU) No 537/2014.
Signed at Brussels.
The joint
 
auditors
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
 
CDP Petit & Co BV/SRL
Represented
 
by Geert Verstraeten
 
Represented
 
by Damien Petit
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus Group
 
I
Integrated annual report
 
2021
I
347
Deloitte Bedrijfsrevisoren/Réviseurs
 
d’Entreprises BV/SRL
Registered Office: Gateway
 
building,
Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem
 
VAT BE
0429.053.863
 
-
 
RPR
 
Brussel/RPM
 
Bruxelles
 
- IBAN BE86
5523 2431 0050 - BIC GKCCBEBB
Member of Deloitte Touche
 
Tohmatsu Limited
SRL CDP PETIT & Co
Square de l’Arbalète
 
6 1170 Brussel/Bruxelles België
Tel. + 32 2 660 70 46
VAT
 
BE 0670.625.336
www.cdp-partners.be
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus NV van publiek recht/Proximus SA
 
de droit public |
31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
348
Independent assurance report on the limited
 
review performed on a
selection of non-financial performance indicators
 
published in the
“Integrated
 
Annual Report 2021” of Proximus SA de droit
 
public / NV van
publiek recht for the year ended 31 December 2021
To the
 
board of directors
We have been engaged to conduct a
 
limited assurance engagement on on a selection of non-financial
performance indicators (the “Non-Financial Data”) published in the “Integrated Annual Report 2021” of
Proximus SA de droit public
/ NV van publiek recht
 
(“Proximus”)
 
for the year ended
 
31 December
 
2021. The Non-Financial
 
Data have
 
been
defined following
 
the
Global Reporting
 
Initiative
(GRI) standards
 
and Proximus’
 
internal non
 
-financial reporting
guidelines.
The Non-Financial
 
Data have been
 
selected by Proximus
 
management
 
and are as follows:
Energy efficiency indices (energy consumption vs total revenue and vs FTE) – Group
Electricity (Terajoules)
 
– Group
Heating (Terajoules)
 
– Group
Vehicle fleet fuel (Terajoules)
 
– Group
CO2 emissions scope 1 and 2 (KTons) – Group
CO2 emissions scope 1 – heating, refrigerants and fleet fuel (KTons)
 
– Group
CO2 emissions scope 2 - electricity – market based method (KTons) – Group
CO2 emissions scope 3 – all reported categories
 
– i.e. category 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12 and 13 (KTons)
Carbon intensity (vs FTE and vs Revenues) – Group
Waste (KTons)
 
– Belgium
% of hazardous waste – Belgium
% waste reused/recycled – Belgium
Non-hazardous waste - recycled or reused (KTons)
 
– Belgium
Non-hazardous waste - with energy recovery (KTons)
 
– Belgium
Hazardous waste - recycled or recovered
 
(KTons)
 
– Belgium
Total collected/refurbished
 
devices (including DTMC) – Group
Number of cases investigated by the investigations department
 
for violation of policies/code of conduct
Number of whistleblowing cases
Cyber Security Resilience Index – Group
Number of job seekers supported by Proximus initiatives in Belgium
Percentage of accessible tested devices (at least for 5 disability categories)
Based on our
 
work as
 
described in
 
this report,
 
nothing has
 
come to our
 
attention
 
that causes
 
us to believe
 
that the
non-financial
 
performance
 
indicators
 
related to Proximus
 
SA de droit public/
 
NV van publiek recht
 
identified above,
have not been
 
prepared,
 
in all material
 
respects,
 
in accordance
 
with the GRI
 
standards.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
Proximus SA de droit public
 
/ NV van publiek recht |
NFI 31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
349
Responsibility of the board of directors
The board of directors of Proximus
 
is responsible for the Non-Financial Data and the references
 
made to it presented
 
in
the Integrated Annual Report 2021 as
 
well as for the declaration that its reporting
 
meets the requirements of the GRI
standards and of Proximus’ internal
 
non-financial reporting guidelines.
This responsibility includes the selection and application of appropriate
 
methods for the preparation of the Non-
Financial Data, for ensuring the reliability of the underlying information
 
and for the use of assumptions and reasonable
estimations. Furthermore, the board of directors
 
is also responsible for the design, implementation and
 
maintenance
of systems and procedures relevant
 
for the preparation of the Non-Financial Data that
 
is free from material
misstatement, whether due to fraud
 
or error.
Nature and scope of our engagement
Our responsibility is to express a conclusion on the Non-Financial
 
data based on our procedures. We conducted
 
our
engagement in accordance with the International
 
Standard on Assurance Engagements
 
ISAE 3000
Assurance
Engagements Other than Audits or Reviews of Historical
 
Financial Information
, issued by the International Auditing and
Assurance Standards Board (IAASB), in order
 
to state whether anything had come to
 
our attention that causes us
 
to
believe that the ESG KPI’s
 
have not been prepared, in all material respects,
 
in accordance with the applicable criteria.
We apply International Standard
 
on Quality Control 1 and, accordingly,
 
maintain a comprehensive system
 
of quality
control including documented policies and procedures
 
regarding compliance with ethical requirements,
 
professional
standards and applicable legal and regulatory
 
requirements.
Applying these standards, our procedures are
 
aimed at obtaining limited assurance
 
on the fact that the ESG KPI’s
 
do
not contain material misstatements.
 
The procedures performed in a limited assurance
 
engagement vary in nature and
timing from, and are less in extent than for,
 
a reasonable assurance engagement and consequently,
 
the level
 
of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that would
 
have been
obtained had a reasonable assurance engagement been performed.
The scope of our work has been limited to the Non-Financial Data
 
covering the year 2021 and including only the values
retained within the scope of reporting defined by
 
Proximus. The reporting scope covers
 
Proximus SA de droit public /
NV van publiek recht and its subsidiaries Telindus
 
-ISIT BV, Proximus
 
Luxembourg SA and BICS SA (the “Group”).
 
Our
conclusion as formulated below covers
 
therefore only these Non-Financial Data
 
and not all information
 
included in the
Integrated Annual Report
 
2021.
Our work was performed on the data gathered
 
and retained in the reporting scope by Proximus
 
SA de droit public / NV
van publiek recht. Our conclusion covers
 
therefore only these Non-Financial Data
 
and not all information included
 
in
the Document.
The scope of our work included, amongst others, the following procedures:
Obtaining an understanding of the Company’s
 
business, including internal control relevant
 
to collection of the
information used to prepare the Non-Financial Data.
 
This included discussions with the Company’s management
responsible for operational performance
 
in the areas
 
responsible for the data underlying the Non-Financial Data,
mentioned in the table above.
Considering the risk of material misstatement of the Non-Finacial Data;
Performing analytical procedures; and
Examining, on a sample basis, internal and external supporting evidence to
 
validate the reliability of the Non-
Financial Data and performing consistency checks on the consolidation
 
of the Non-Financial Data.
Our report is made solely to the Company’s directors,
 
as a body, in accordance with ISAE
 
3000. Our work has been
undertaken so that we might
 
state to the Company those matters
 
we are required to state
 
to them in this report and
for no other purpose. To
 
the fullest extent permitted by law,
 
we do not accept or assume responsibility to anyone
other
 
than the Company and the Company’s directors
 
as a body for our work, this report, or for the conclusions
 
we
have formed.
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4
 
Proximus NV van publiek recht/Proximus SA
 
de droit public |
31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
350
Independence
In conducting our engagement, we have
 
complied with the independence and other ethical requirements of the
 
Code
of Ethics for
 
Professional Accountants issued by the
 
International Ethics Standards Board for
 
Accountants (IESBA), which
is founded on fundamental principles of integrity,
 
objectivity, professional
 
competence and due care, confidentiality
and professional behavior,
 
and with the Belgian legal and regulatory framework.
Signed at Zaventem.
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Represented by Koen Neijens
 
proximus-2021-12-31p3i0
 
proximus-2021-12-31p3i2
 
proximus-2021-12-31p5i4 proximus-2021-12-31p379i6
Proximus SA de droit public
 
/ NV van publiek recht |
NFI 31 December
Proximus Group
 
I
Integrated annual report
 
2021
I
351
Deloitte Bedrijfsrevisoren/Réviseurs
 
d’Entreprises
 
BV/SRL
Registered Office:
 
Gateway building,
 
Luchthaven Brussel
 
Nationaal 1 J,
 
B-1930 Zaventem
VAT BE
 
0429.053.863 - RPR
 
Brussel/RPM Bruxelles
 
- IBAN BE86
 
5523 2431 0050
 
- BIC GKCCBEBB