Boldly building
a connected world
that people trust
so society blooms
Integrated
annual report
2023
Table of
contents
1 Proximus Group at a glance 04
Foreword by our CEO and our Chairman 05
About us 08
Addressing stakeholder priorities 15
Key figures & highlights 20
2 Report on our activities 23
Overview of bold2025 24
Roll-out #1 gigabit network for Belgium 25
Engineer technology assets to enable digital
ecosystems 29
Foster an engaging culture & empowering ways of
working 32
Delight customers with an unrivalled experience 35
Grow profitably locally and globally through
strong brands 39
Act for an inclusive society and be sustainable
in everything we do 45
3 Non-financial statements 54
Environment 55
Environmental statements 55
EU Taxonomy 68
Table of TCFD 74
Social 76
Social statements 76
Diversity and inclusion statement 88
The Campus project 91
Governance 92
Corporate governance statement 92
Remuneration report 116
Regulatory framework 138
The Proximus Share 142
Contribution to the SDGs 150
GRI and SASB 153
4 Consolidated financial statements 160
5 Consolidated management report 270
Management discussion and analysis of
financial results 271
Risk management report 300
Internal control system 314
Expertise of the Audit & Compliance
Committee members 316
Evolution in research and development
activities 316
Other information 319
6 Auditor’s reports 320
Integrated annual report 2023Proximus Group 2
Integrated reporting
approach 2023
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, while linking this
to our most material topics. The report also contains the full
financial, environmental, social and governance statements and
notes.
Our stakeholders include all individuals and organizations
aected by our operations or with whom we have a relationship.
They include – but are not limited to – enterprises, residential
and wholesale customers, investors, employees, political and
regulatory stakeholders, suppliers, partners, journalists and
opinion formers.
The information in this report refers to Proximus Group, unless
stated otherwise. Proximus Group comprises Proximus SA, its
subsidiaries, as well as the Group’s interests in associates and
joint ventures accounted for under the equity method and joint
operations. We refer you to Note 8 (see page 200) for the list
of subsidiaries, associates, joint ventures and joint operations.
Proximus SA is a Limited Liability Company of Public Law,
registered in Belgium.
Since 2020, Proximus has adopted an integrated reporting
approach. This 2023 report follows the International Integrated
Reporting Council (IIRC) framework, explaining how we
create value for our stakeholders and society in relation to our
ambitions, sense of purpose and goals.
The Audit and Compliance Committee assists and advises
the Board of Directors in its oversight of the eciency of the
systems for internal control and risk management of the
company, of the external auditors’ work, and of compliance with
policies and legal and regulatory requirements.
This report has been prepared in accordance with the current
EU Non-Financial Reporting Directive (NFRD), diversity
information and in reference to the GRI (Global Reporting
Initiative) Standards and to SASB (Sustainability Accounting
Standards Board).
The Corporate Sustainability Reporting Directive (CSRD)
will be applicable to Proximus Group in 2024. In preparation
for the CSRD, we conducted our first double materiality
assessment (DMA) (see page 16), which allows the identification
of both actual and potential positive and negative impacts on
both the value of the company and society & the environment.
At present, we are in the process of integrating the outcome
of this assessment – i.e., the list of material topics – into our
strategy. Accordingly, we will disclose an integrated roadmap
with related policies, actions plans and KPIs in the report for
the 2024 financial year. Proximus also reports on the EU
Taxonomy Regulation.
Since the Annual Report of 2021, Proximus has integrated the
recommendations of the TCFD (Task Force on Climate-related
Financial Disclosure) into its reporting, in order to emphasize
its eorts in identifying and mitigating climate-related risks
and opportunities. We will continue to integrate these TCFD
recommendations in the coming years.
Each year, Proximus completes questionnaires from ESG
rating agencies such as CDP, Sustainalytics, Ecovadis and S&P.
These evaluations enable us to monitor our performance and
define actions to further embed Environmental, Social, and
Governance (ESG) criteria in our processes, policies, strategy
and roadmaps.
Proximus Group Integrated annual report 20233
Proximus Group
at a glance
Foreword by our CEO and our Chairman 05
About us 08
Addressing stakeholder priorities 15
Key figures and highlights 20
Integrated annual report 2023
A year of bold moves, in Belgium and globally
1 1.75 Mio Homes Passed + joint venture’s fiber in the street funnel of 300,000 Living Units
Dear reader,
2023 will be remembered as a pivotal year in
Proximus’ history, and that is no vain claim. It was
a year that saw us resolutely gain the foothold
necessary to become a top-tier international player,
while further bolstering our position in Belgium. The
decisive strategic choices we have made have put us
in a better position than ever, with a view to becoming
both the digital companion of all Belgians and one of
the world leaders in digital communications and digital
identity. Diversifying our growth drivers also gives us
the means to forge ahead with our massive investment
in our networks and in innovation.
Rapid roll-out of fiber and 5G networks
You may remember that at the end of 2022 we launched our
new, three-year strategic plan, bold2025. There was clearly
nothing arbitrary about the choice of the word “bold”, as it
underlines our ambition to “boldly build a connected world
that people trust so society blooms”. This is exactly what we
are doing by continuing the rapid roll-out of our fiber and 5G
networks in Belgium, keeping us well ahead of the competition.
2023 was also a milestone, as now as much as 29% of the
Belgian homes and businesses are now connectable to fiber.
Overall, including also the full contribution of our joint ventures,
34% of homes and businesses were covered with “Fiber in the
street”.
1
We can only make this boast thanks to the remarkable
work of our teams in the field. And the pace is set to accelerate.
Both our employees and our joint venture partners give their
best throughout the year to bring the benefits of fiber to as
many homes and businesses as possible. In this regard, we
welcome the recent announcement by the BIPT that it supports
the idea of evaluating cooperation between the various
operators in Belgium for the roll-out of fiber. This should make
it easier for us to cover less densely populated areas, and also
paves the way for more ecient deployment, in both economic
and environmental terms. That is good news for Belgium’s
competitiveness in an ever-more-rapidly digitizing world.
‘ bold2025 underlines our
ambition to “boldly build a
connected world that people
trust so society blooms”.’
Proximus Group Integrated annual report 20235
When it comes to 5G, things are also moving in the right
direction. Thanks to the current legislative framework, coverage
continues to improve at a steady pace in the country’s three
regions, ensuring that we achieve our 100% indoor coverage
target in the 2025-2026 timeframe. We have never been more
determined to roll out our gigabit networks to all people and
businesses in the country.
A very positive business momentum
Fiber can be hailed for giving us the best fixed network in
Belgium, with download speeds set to rise to 100 Gbps in
2024. We also boast the best mobile network in Belgium.
Furthermore, the fact that Proximus was able to acquire the
largest spectrum share at the 2022 auction guarantees that
we will continue to oer the best mobile experience for years
to come. That being said, everything does not just come down
to the networks. A big shout-out goes out to our teams, who
have been able to leverage this technological lead to bring
the best products and services to market for our customers.
Technologies such as Wi-Fi 6 or digital services like Doktr will
enable us to become the digital companion of all Belgians.
This strategy is paying o, as our business momentum was
extremely solid throughout 2023, thanks to both the superiority
of our network and products, and to our multi-brand strategy in
the residential market (Proximus, Scarlet, Mobile Vikings). This
approach enables us to answer the needs of all consumers,
including those with lower purchasing power. If we add to this
the wholesale agreement signed in 2023 with the new operator
expected in 2024, Proximus is ideally positioned to face the
changing structure of the Belgian market and look to the
future with confidence. We also took the unprecedented step,
a few months ago, of repositioning our commercial oering for
business customers. This now operates under a single, strong
brand: Proximus NXT. Our goal is to ensure that our customers
always stay one step ahead, continuously optimizing their
business models, in a secure, sovereign and sustainable way.
With Proximus NXT, we are gearing up to becoming the number
one technology and ICT partner for business customers in the
Benelux region.
For Proximus, innovation knows no bounds
At Proximus, innovation is deeply rooted in our corporate
culture. In 2023, we were pioneers in bringing sovereign
cloud solutions to market with Microsoft and Google. We
were even the first operator in Europe to oer disconnected
sovereign cloud solutions through our Clarence joint venture, in
association with LuxConnect. This is an essential step forward in
enabling companies to better protect their sensitive data, while
guaranteeing compliance with European regulations. Thanks to
Proximus, Belgium and Luxembourg are at the forefront of this
crucial area for the future.
Innovation at Proximus extends not only to our technology
but also to our people. In 2023, we further explored means
of adjusting our ways of working to respond to an increasingly
hybrid and agile world. For example, a secure chat based on
generative artificial intelligence is now available to all our
employees, complete with sessions to share ideas on how
generative artificial intelligence can improve everyone’s work.
In parallel with our physical move, which saw 6,000 of our
employees relocate, we have continued to adapt and revamp
our corporate culture by encouraging our teams to take more
initiative and dare to challenge our habits. At the same time, our
up-skilling and re-skilling programs are designed to support
our employees in preparing for the jobs of the future. This is
a responsible, forward-looking policy that we have matured
thanks to an ongoing, trust-based dialog with our social
partners.
Another major innovation in 2023 was the launch of the
Supplier Engagement Program, in collaboration with our 150
main suppliers. Thanks to this program, we help our suppliers
set CO
2
reduction targets that are as ambitious as our own.
These targets are even set out clearly in the contracts we have
‘ Both our employees and our
joint venture partners give
their best to bring the benefits
of fiber to as many homes and
businesses as possible.’
Proximus Group Integrated annual report 20236
with them. This approach positions us as a key player in the
climate transition across our entire value chain.
One of the world’s top 3 thanks to Route Mobile
Finally, the most significant event of 2023 was, without a doubt,
our agreement to acquire a majority stake in Route Mobile.
1
This
investment will represent a real turning point for our Group,
parachuting us into the world’s top 3 in digital communications
and digital identity. This is a fast-growing market that sets out to
make the digital space a safe place for everyone, a vision that is
perfectly in line with our societal mission.
With BICS, Telesign and Route Mobile, Proximus Group will have
strong and highly complementary competitive global assets,
both from geographical and product expertise standpoints. This
acquisition also means that, in three or four years’ time, 50%
of our turnover will come from activities that are not linked to
our physical networks. Once the transaction with Route Mobile
is signed and sealed, Proximus Group will gradually take the
1 The agreement remains conditional upon fulfilling the stipulated conditions, including obtaining regulatory and anti-trust approvals and completing the
MTO (mandatory takeover oer).
form of an international tech company, while ramping up its
leadership in the domestic telecoms and ICT market. While
challenges may lie ahead in 2024, we look forward to embracing
them with serenity and confidence. As history has shown many
times , diversifying and internationalizing our activities serve
only to strengthen the resilience of Proximus Group.
Never before has the need for digitalization been so
keenly felt. And never before have we been so prepared to
meet this need in both Belgium and the rest of the world.
#thinkpossible
Guillaume Boutin, Stefaan De Clerck,
CEO Chairman of the Board of Directors
Proximus Group Integrated annual report 20237
About us
1 The agreement remains conditional upon fulfilling the stipulated conditions, including obtaining regulatory and antitrust approvals and completing the
MTO (mandatory takeover oer).
Proximus Group (Euronext Brussels: PROX) is a provider of
future-proof connectivity and digital services, operating in the
Benelux and on international markets.
As a major economic player in Belgium, we make the most
of every opportunity to positively impact the world around
us. The investments we make in our open fixed and mobile
networks are critical for the growth of the Belgian economy
and the development of new digital ecosystems and innovative
solutions.
Through our aliates BICS and Telesign – international
frontrunners in communication platforms and digital identity
– we provide reliable and secure communications experiences
around the world.
In July 2023, Proximus Group signed a definitive agreement
to acquire a majority stake in Route Mobile.
1
Thanks to this
acquisition Proximus Group will become one of the worldwide
leaders in digital communications (CPaaS) and digital identity
(DI), building on the combined strengths of Route Mobile and
Telesign.
Our international activities currently already represent 26% of
Proximus Group’s revenue and will further grow in significance
in the years to come.
By means of our national and international activities, we are
shaping a fair, trustworthy and inclusive digital world, whilst
striving for sustainable growth to the benefit of all of our
stakeholders.
Proximus Group Integrated annual report 20238
Our brands
Through our leading brands, we meet the demands of a wide
range of customers in the residential, enterprise, public sector
and wholesale markets.
Consumer market
Proximus is our reference brand in Belgium, and the leader in
converged connectivity services. With Proximus, we help our
customers get the most out of the digital world through our
superior connectivity solutions, our innovative digital platforms,
and a superior servicing approach.
Scarlet is a ‘no-frills’ brand for customers looking for simple
solutions at the best prices. Scarlet makes quality home and
mobile connectivity aordable for all.
Mobile Vikings is a 100% digital brand oering both mobile
and Internet-at-home. Its high-performing and competitively
priced solutions appeal to young (at heart) digital-savvy
customers.
Tango is the leading alternative operator in Luxembourg,
oering fixed and mobile telephony, Internet, and television
services to residential customers and small businesses.
Doktr is a secure and user-friendly video consultation service
for patients and healthcare professionals.
The 4411 mobility app and the Flitsmeister navigation app are
two services that improve the daily mobility of travelers.
B2C B2B
Domestic (Benelux) International
Proximus Group Integrated annual report 20239
Enterprise market
Proximus NXT is Proximus’ new ICT umbrella brand for
the Benelux region. Together with its partners and aliates,
Proximus NXT helps companies to meet the new challenges
of digitization, such as artificial intelligence, mixed reality and
cloudification in a secure and sustainable manner, leveraging
its unique expertise in next-gen IT services and advanced
connectivity.
Proximus Ada, a fully-owned subsidiary of Proximus, is the
first Belgian center of excellence combining artificial intelligence
and cybersecurity. Proximus Ada’s expertise is used to serve
the Group’s various entities, and therefore benefit their
customers. Through collaborations and partnerships, it strives
to develop a local ecosystem and boost the uptake of digital
technology throughout society.
Davinsi Labs is one of the leading Digital Security & Intelligence
Services players in the Benelux. It oers cybersecurity
and intelligence solutions protecting enterprises against
cyberattacks. In 2023, our aliates Davinsi Labs and Umbrio
joined forces to commercially operate under the name of Davinsi
Labs.
Codit designs, builds and manages data-driven cloud solutions.
Codit connects and aggregates the data derived from apps,
objects and systems, and turns it into value for companies.
Proximus NXT SpearIT is an ICT integrator for mid-sized
companies. It helps customers in their digital transformation of
business processes with a focus on IT stang, data centers and
cloud management.
ClearMedia provides assets such as Infrastructure-as-a-
Service (IaaS), cybersecurity services and digital workplace
solutions tailored to the SME market.
Be-Mobile specializes in smart mobility solutions for public
authorities, road operators, car manufacturers, or enterprises.
Telindus Netherlands guarantees a secure and reliable
ICT infrastructure. Qualified experts in cybersecurity, hybrid
cloud environments and networking ensure the continuity of
organizations is upheld.
Telindus Luxembourg is a market leader in ICT and telecom
services in Luxembourg. Its areas of expertise include ICT
infrastructure, multicloud, fintech solutions, cybersecurity,
enterprise applications, managed services, telecom services and
training.
International
BICS is a communications platform company, oering solutions
from global voice and messaging to CPaaS, fraud prevention,
IoT, roaming and cloud communications. It is one of the key
global voice carriers and the leading provider of mobile data
services worldwide. BICS is headquartered in Brussels, with a
strong presence throughout Europe, Africa, the Americas, Asia
and the Middle East.
Telesign, based in the US, is a fast-growing leader in digital
identity and programmable communications solutions serving
nine of the world’s ten largest digital enterprises. Telesign helps
enterprises connect with their customers, protect online users,
and defend them across the full customer journey. It provides
services in more than 230 countries and territories.
Proximus Group Integrated annual report 202310
Our strategy
The world around us
We exceeded our initial key financial objectives for 2023, while
facing a complex socio-economic environment, including
inflation levels that remained high compared to the previous
decades. Furthermore, the geopolitical context continues to
pose challenges while also underlining the growing importance
of cybersecurity and data sovereignty.
The Belgian market is an evolving market with changing
competitive dynamics. In Flanders, Telenet and Fluvius’ joint
venture Wyre began its fiber roll-out. In Wallonia, Orange
Belgium has acquired a majority stake in VOO. Telecom operator
Digi Communications Belgium announced its commercial start
in 2024.
A new purpose, the compass of our
ESG commitments
In 2023, we initiated our new strategic cycle bold2025. It was
the right time to reflect on our sense of purpose and the bigger
role we wish to play in society.
Our new purpose, ‘Boldly building a connected world that
people trust, so society blooms’, captures the DNA of our
company. It is built on 3 dimensions:
We are actively building a connected world (1) and have a
unique role in ensuring the trustworthiness (2), security and
sovereignty of these digital societies. By investing in digital
accessibility and inclusiveness, and by taking action in the battle
against global warming, individuals, households, companies and
governments will flourish, and society (3) will benefit.
After all, we will create the most value for society by being bold.
We were bold in accelerating our fiber deployment. We were
bold in acquiring full ownership of BICS and Telesign. And we
want to continue to be bold. As a result, we have named our new
strategic cycle for 2023-2025 ‘bold2025’.
‘ We will create the most value
for society by being bold.’
Proximus Group Integrated annual report 202311
As shown below, our purpose is also our compass, guiding us in
all we do and defining our nine commitments in the areas of
environment, society and governance (ESG):
Contributing to the SDGs
The United Nations’ Sustainable Development Goals (SDGs)
define global sustainable development priorities for 2030, and
seek to mobilize governments, businesses and society at large
around a common set of objectives and targets.
As a provider of future-proof connectivity and digital services,
we have a role to play in contributing to these goals. Our nine
ESG commitments are directly linked to seven of the UN’s
SDGs, particularly to SDG 8 (Decent work and economic
growth) and to SDG 9 (Industry, innovation and infrastructure).
In addition, we believe that Proximus, through its operations,
corporate governance, and strategic priorities, can also
make an impact – positive or negative – on SDGs 4 (Quality
education), 5 (Gender equality), 12 (Responsible consumption
and production), 13 (Climate action) and 16 (Peace, justice and
strong institutions). Details on our impact on the SDGs can be
found in the ‘Social statements’.
... a connected world... ... that people trust... ... so society blooms.
Boldly building...
Building the best
gigabit network for Belgium
Developing digital solutions
for everyday life
Connecting people
and devices worldwide
Ensuring cybersecurity for
our customers
Supporting Europe in
achieving sovereignty
Embedding highest ethics
and compliance standards
Going all in in the
fight against global warming
Investing in digital accessibility,
inclusiveness and upskilling
Stimulating an inspiring and
inclusive work environment
Proximus Group Integrated annual report 202312
bold2025: a growth ambition
creating sustainable value
Our bold2025 strategy further reinforces the path taken with
our previous strategic cycle. Proximus Group set out on this
three-year strategic journey in January 2023.
bold2025 relies on three exceptional strengths that form
the foundation of everything we do: our people, our gigabit
network and our technology assets. These strengths enable
us to provide long-term sustainable value to our stakeholders:
customers, society and shareholders.
Act for an inclusive society and
be sustainable in everything we do
Delight customers with
unrivalled experience
Grow profitably, locally and globally,
through strong brands
We deliver great value
for our stakeholders
Foster an engaging culture and
empowering ways of working
Rollout #1 gigabit network for
Belgium
Engineer technology assets to
enable digital ecosystems
through exceptional
strengths
Proximus Group Integrated annual report 202313
Creating value for our stakeholders
Delight customers with unrivalled
experience
We strive to lead in terms of customer experience, both in the
consumer and enterprise markets, building on the superior
quality and performance of fiber and 5G, the latest Wi-Fi
technologies, and our investments in cybersecurity and cloud.
Grow profitably, locally and
globally through strong brands
In the consumer market, our fiber commercialization,
convergent strategy and premium content drive growth. Our
ambition in the enterprise market is to grow our revenues,
balancing lower margin IT revenue with higher margin Telecom
revenue. The development of our international activities gives
access to highly growing, adjacent digital communications
markets. Those international activities are forecasted to be a
source of growth in the coming years.
Act for an inclusive society and be
sustainable in everything we do
We have committed ourselves more than ever to playing our
part in society, aiming for green sustainability, digital inclusion,
education and trust. Beyond our commitments to be circular by
2030 and reach net zero greenhouse gas emissions across our
value chain by 2040, Proximus plays a crucial role in enabling
other sectors to reach net zero. We are bridging the digital divide
by bringing multigigabit connectivity to the Belgian population
as quickly as possible, and building digital trust through
cybersecurity, online fraud prevention and data protection.
Our strengths
Rollout #1 gigabit network for Belgium
Through our investment in fiber, we are acting on our ambition
to extend our fiber footprint to 50% of Belgian premises by end
of 2025. For 5G, our ambition is to cover all major Belgian cities
by the end of 2024, and to cover 100% of the country in the
timeframe 2025-2026.
Engineer technology assets to
enable digital ecosystems
We are delivering a future-proof IT landscape and
infrastructure. We are transforming our technology to develop
new leading app ecosystems. These ecosystems are built on
digital-native user experiences across our digital platforms,
using data, artificial intelligence (AI) and Generative AI.
Foster an engaging culture and
empowering ways of working
We continue to unlock the benefits of agile ways of working.
We enable our people to develop skills by training and coaching
them. We also grow our “Think possible” culture and improve
the way we operate as a group.
Proximus Group Integrated annual report 202314
Addressing stakeholder priorities
Engaging with our stakeholders
We actively engage with our stakeholders on a structured
and regular basis. These interactions are guided by a solid
governance framework and a clear ethical compass, ensuring
that we act responsibly and respectfully.
Our stakeholders influence and shape our business activities.
We seek and integrate their feedback into our strategy and
operations, ensuring that their concerns and suggestions are
appropriately addressed.
As shown below, Proximus Group engages with various
stakeholder groups through a range of initiatives. This diverse
group includes, but is not limited to, employees, enterprise and
residential customers, suppliers, investors, public authorities
and regulatory bodies, and society at large. Further information
on our initiatives and achievements to the benefit of our
stakeholders can be found in Chapter 2 of this report.
Additionally, we consider the interests of our stakeholders
as part of the identification of material topics for Proximus
Group, ensuring our strategies and practices align with their
expectations, ultimately fostering a positive societal impact.
Stakeholder group How we engage
Employees
Management, employees, unions
· Annual survey
· Regular communication with Leadership Squad and CEO
· Internal events
· Digital communication
· Labor relations dialogue
Residential customers · Direct points-of-contact (shops, technicians, contact centers)
· Digital channels and self-service portals
· Communication campaigns
· Consumer surveys and focus groups
Enterprise customers · Account and customer success managers
· Indirect partner channels
· Digital channels and self-service portals
· Customer surveys and focus groups
· Professional fairs and events
Public authorities & regulators
Local authorities, national government, European
policymakers
· Regular meetings
· Industry and trade organizations
Investors · Annual General Meeting
· Quarterly results presentations
· Regular meetings including roadshows, conferences and webinars
Suppliers · On-site supplier audits through JAC (Joint Alliance for CSR)
· Supplier Relationship Management and Supplier Engagement Program
· EcoVadis
Society at large
Media, NGOs, community organizations, academic world,
industry, general public
· Digital channels
· Memberships in associations
· Dialog with NGOs
· Press conferences
· Consumer surveys and reputation tracker
Proximus Group Integrated annual report 202315
Double materiality assessment
The Corporate Sustainability Reporting Directive (CSRD) will
be applicable to Proximus Group in 2024. In preparation for the
CSRD, we conducted our first double materiality assessment
(DMA), in partnership with external consultants, in 2023. The
assessment covered the main activities of Proximus Group,
including the upstream and downstream value chains. Under
the DMA, ESG-related topics and associated impacts, risks and
opportunities were assessed based on two dimensions:
• Impact materiality (inside-out perspective): the impact of
Proximus Group on people, society and the environment;
• Financial materiality (outside-in perspective): external
evolutions (risks and opportunities) – both environmental &
social – that aect the financial performance of Proximus
Group.
This two-fold materiality perspective requested by the CSRD
is the main dierence with regard to our materiality matrix
included in the annual report for the 2022 financial year, as
per the assessment undertaken in 2021. Our previous matrix
combined the impact of the material topics on Proximus’
business success (horizontal axis) and their importance for
stakeholders (vertical axis). Topics that are more related to
Proximus’ business strategy – such as ‘delivering customers
promises’, ‘customer value for money’, ‘support small and
medium business development’ – are not included in the DMA
as they are already embedded in the regular company risk
assessment through the ERM (Enterprise Risk Management)
process. The topic ‘address 5G concerns’ is now embedded in
two of the CSRD topics: ‘Local communities’ and ‘Digital stress &
safe products’. The topic ‘CO
2
emissions and energy’ is now split
into three dierent topics ‘Climate change mitigation’, ‘Climate
change adaptation’ and ‘Energy’ as per the CSRD requirements.
‘Data privacy, data security and cybersecurity’ remains the most
material topic.
Approach
The full double materiality assessment process occurred in
five steps:
1. Definition of the scope of the assessment;
2. Identification of the topics and associated impacts, risks and
opportunities;
3. Assessment of the impact (impact materiality) and the risks
and opportunities (financial materiality);
4. Validation in cooperation with senior leadership and the
Board of Directors;
5. Creation of appropriate documentation and internal
engagement.
To identify the topics and related impacts, risks and
opportunities, several external and internal stakeholders
were consulted via direct (interviews, workshops and bilateral
meetings) and indirect (desk-based research) engagement
methods. The stakeholders were carefully selected on the basis
of their knowledge and their role in Proximus Group’s value
chain.
To take the topic of “Energy” as an example, we identified the
adaptation of energy-ecient technologies like cloud and fiber
as a positive impact. In counter to this, the fact that Proximus
Group is accountable for 57% of the energy consumed in
the telecommunications market in Belgium was identified as
a negative impact. A potential risk identified was the war in
Ukraine and resulting geopolitical supply chain disruptions
leading to potential energy shortages.
Qualitative input was gathered through stakeholder
consultation and then translated to a quantitative ranking.
The assessment of financial materiality was supported by
ranking scores and rationale similar to the existing ERM process
(Enterprise Risk Management). Topics are material if they are
assessed to be so, from an impact perspective, from a financial
perspective, or from both perspectives. Accordingly,
17 material ESG topics were identified.
Proximus Group Integrated annual report 202316
The double materiality matrix was validated by the Proximus
Leadership Squad and the Board of Directors in July 2023, and
will be reviewed and updated at least every two years.
Currently, we are integrating the material topics, including
related impacts, risks and opportunities, into our strategy. This
entails performing a gap analysis and allocating resources
eectively. Accordingly, we will disclose an integrated roadmap
with related policies, action plans and KPIs in the report for the
2024 financial year, ensuring CSRD compliance.
Materiality matrix outcome
16
14
12
10
8
6
4
2
0
0.0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Environmental
Social
Governance
Financial materiality
Impact materiality
Digital stress and safe products
Pollution
Local communities Workers in value chain / human rights
Working rights, fair pay and social dialogue
Climate change adaptation
Technology and
innovation
Diversity, equity
and inclusion
Work-life balance and well-being
Employee upskilling,
reskilling and employability
Energy
Data privacy,
data security &
cybersecurity
Circular economy & waste
Political engagement & lobbying activities
Digital inclusion:
access,
aordability
& skills
Water consumption
Biodiversity
Climate change mitigation
Business conduct
Material from an impact perspective
Material from a financial perspective
Material from both perspectives
Employee health
and safety
Proximus Group Integrated annual report 202317
Definition of ESG material topics
Material topics for Proximus Group
E
Circular economy and waste: The model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and
recycling materials and products for as long as possible to extend their life cycle, reduce the environmental impact of their use, and minimize
waste and the release of hazardous substances across all stages of their life cycle.
Climate change adaptation: The process of adjusting and responding to actual and expected extreme weather events (i.e. heat waves,
flooding, rises in sea level, droughts) and their associated impacts.
Climate change mitigation: The process of reducing CO
2
and other greenhouse gas emissions and limiting the increase in the global average
temperature to well below 2°C and pursuing eorts to limit it to 1.5°C above pre-industrial levels, as laid out by the Paris Agreement.
Energy: The process of managing energy production and consumption along the value chain of the company, including shifting to renewable
sources and implementing energy-ecient systems and products.
S
Data privacy, data security and cybersecurity: Ensuring and constantly reinforcing the security and privacy of customer data through
Proximus products, services, cloud storage systems and innovation. Cybersecurity refers to the protection of electronic devices, networks and
sensitive information from unauthorized access, theft or damage.
Digital inclusion: access, aordability & skills: Provide high-performance aordable connectivity to all, with a particular focus on
disadvantaged groups, incorporating methods for learning and supporting all citizens, young or old, in navigating the complexities of our digital
world, including, but not limited to, customer service, public e-services and employment opportunities.
Digital stress and safe products: Digital stress refers to the negative psychological and physiological eects that can result from excessive or
prolonged use of digital technologies. Safe products are consumer products – including electronics and household goods – that are designed
and manufactured with safety in mind.
Diversity, equity and inclusion: Cultivate a diverse workforce, an inclusive and equitable company culture, and make minorities visible in our
marketing.
Employee health and safety: The anticipation, recognition, evaluation and control of hazards arising in or from the workplace that could
impair the health and well-being of workers, taking into consideration the possible impact on the surrounding communities and the general
environment.
Employee upskilling, reskilling and employability: Appropriately invest in the workforce to ensure that the company continues to innovate,
maintains talent attractiveness, and ensure that sta remain motivated.
Local communities: The environmental and social eects of Proximus’ business operations on local communities, and the opportunities and
risks arising from these eects. This includes communities’ economic, social and cultural rights.
Technology and innovation: Developing or adopting technological solutions that help solve societal challenges, reduce the environmental
impact of customers, or create new market prospects to remain competitive in the market, while also taking into consideration the “low-tech”
trend evident in some customer segments.
Work-life balance and well-being: A satisfactory equilibrium between an individual’s work and private life, and ensuring the physical, social
and mental health of our employees.
Workers in value chain / human rights: Working conditions, equality/non-discrimination, and other rights of workers in the value chain.
Working rights, fair pay and social dialogue: Secure employment, working time, adequate wages, collective bargaining, social dialogue,
freedom of association, the existence of works councils and the information, consultation and participation rights of workers.
G
Business conduct: Corporate behaviors that support transparent and sustainable business practices to the benefit of all stakeholders along
the company’s value chain. This includes corporate culture, management of relationships with suppliers, protection of whistleblowers, and
payment practices, specifically regarding overdue payments to SMEs.
Political engagement and lobbying activities: Activities and commitments related to exerting its political influence with political
contributions, including the types and purpose of lobbying activities.
Topics that are not deemed material for Proximus Group
Pollution: The direct or indirect introduction, as a result of human activity, of pollutants into the air, water or soil that may be harmful to human health
and/or the environment.
Water consumption: Water in terms of how, where, and the quantities extracted, consumed, and discharged along the company’s value chain. Water
consumption includes both surface water and groundwater.
Biodiversity: The integrity of and potential changes to biodiversity and ecosystems along the company’s value chain. This refers to terrestrial and
freshwater ecosystems, and related populations of flora and fauna.
Proximus Group Integrated annual report 202318
Building the best gigabit
network for Belgium
Developing digital
solutions for everyday life
Connecting people and
devices worldwide
Ensuring cybersecurity
for our customers
Supporting Europe in
achieving sovereignty
Embedding highest ethics
and compliance standards
Going all in in the fight
against global warming
Investing in digital accessibility,
inclusiveness and upskilling
Stimulating an inspiring and
inclusive work environment
ESG commitments
Summary table
Material
topics
Contribution
to SDGs
bold2025
strategic
pillars
Employee up/re-skilling &
employability
Diversity, equity & inclusion
Working rights, fair pay & social
dialogue
Employee health & safety
Work-life balance & well-being
Digital inclusion: access,
aordability & skills
Circular economy & waste
Energy
Climate change mitigation
Climate change adaptation
Local communities
Political engagement & lobbying
activities
Business conduct
Workers in value chain, human
rights
Data privacy, data security &
cybersecurity
Digital stress & safe products
Technology & innovation
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
Proximus Group Integrated annual report 202319
Key figures and highlights
1 Excl. spectrum and football rights
2 Excl. M&A transactions and M&A related transaction costs
3 Scope 1, 2 and 3
Key figures
Group
underlying
revenue
€6,042 Mio
Group
underlying
EBITDA
€1,757 Mio
CapEx
1
€1,325 Mio
Free Cash
Flow
(adjusted
2
)
€61 Mio
Number of
employees
11,654
Board of
Directors
50%
women
Leadership
Squad
22%
women
Total CO
2
emissions
3
551.1 KTons
Avoided CO
2
emissions by customers
769.6 KTons
Proximus Group Integrated annual report 202320
Key highlights
1 Overall, also including the full contribution of our joint ventures, 34% of homes and businesses were covered with “Fiber in the street”
2 The agreement remains conditional upon fulfilling the stipulated conditions, including obtaining regulatory and antitrust approvals and completing the
MTO (mandatory takeover oer).
Proximus Group Integrated annual report 202321
Wholesale
agreement
with DIGI
Communications
Belgium
Fiber
Multigig
technology
deployed in Belgium
Definitive agreement to acquire
a majority stake in
Route Mobile
2
Excellent commercial performance:
+ 156,000
mobile
postpaid
net adds
+ 51,000
Internet
customers
+ 65,000
convergent
customers
+ 145,000
fiber
customers
Launch of
Proximus
NXT
Proximus’ new ICT
umbrella brand
5G indoor
coverage
reached
40%
29% homes
and businesses
in Belgium
connectable to
fiber
1
New joint venture Clarence
oers Europe’s first
disconnected
sovereign cloud
solution
77%
employee
engagement
A-listing
award CDP
for
climate change
Proximus Group Integrated annual report 202322
BICS launched
5G Standalone
Roaming Hub
6,000
employees
relocated to new buildings
in Brussels
Adoption of
Generative
AI
into our
operations
Telesign launched
Continuous Trust™ Authority
128,002
mobile phones
collected for
recycling
799,432
fixed devices
refurbished
Report on
our activities
Overview of bold2025 24
Roll-out #1 gigabit network for Belgium 25
Engineer technology assets to enable digital
ecosystems 29
Foster an engaging culture & empowering
ways of working 32
Delight customers with an unrivalled
experience 35
Grow profitably locally and globally through
strong brands 39
Act for an inclusive society and be sustainable
in everything we do 45
Integrated annual report 2023
Overview of bold2025
3 year ambitions Status 2023
Roll-out #1 gigabit network for Belgium
50% fiber coverage by end 2025 (>3 Mio connectable)
1
29% of the total Belgian premises connectable
34% “Fiber in the street”
2
coverage
100% 5G indoor coverage in 2025
1
40% indoor coverage
We anticipate to reach 100% indoor coverage in the 2025-2026 timeframe
Engineer technology assets to enable digital ecosystems
~ €70 Mio reduction in IT TCO (Total Cost of Ownership) by 2025
1
Well on track
Maintain high cybersecurity resilience
3
Cybersecurity resilience index
5
: 95.9%
Foster an engaging culture and empowering ways of working
Reach employee engagement at > 75% by 2025
1
Employee engagement: 77%
Increase % women in management functions
1
24% of women holding a management function
By 2025, 95% of employees will have attended 5 training days or
more/year
1
63% of employees attended 5 training days or more
Delight customers with unrivalled experience
Be number 1 in NPS in respective segments
3
NPS residential convergent customers (Internet + TV + Postpaid): +11
NPS Scarlet: +17
NPS Mobile Viking: +42
Grow profitably, locally and globally, through strong brands
More than 1 Mio fiber connections (residential & business)
1
397,000 fiber connections
Grow domestic revenues
3
4.2% year over year domestic revenues growth
Grow domestic EBITDA as of 2024 with 2025 EBITDA back to the
2022 level
3
-1.7% year over year domestic EBITDA growth, better than expected
More than 35% of Enterprise revenues from IT
3
33% Enterprise revenues from IT
Grow international direct margin at high single digit CAGR
4
4.9% year over year international direct margin growth
Act for an inclusive society and be sustainable in everything we do
Net zero by 2040
4
-1 3% CO
2
emissions scope 1+2
+1% CO
2
emissions scope3
Truly circular by 2030
4
799,432 refurbished fix devices
128,002 mobile devices collected
Contribute to digital inclusion in Belgium
1
13,515 people trained through digital inclusion projects
1
Proximus SA
2
1.75 Mio Homes Passed + joint venture’s fiber in the street funnel of 300,000 Living Units
3
Proximus Domestic
4
Proximus Group
5
The Cyber Security Resilience Index represents the ratio of: [the number of major incidents for which a visible business impact was prevented thanks
to adequate security controls or for which the CSIRT was able to quickly mitigate the impact] on [the total number of major incidents]. This index is
calculated at Group level, excl. BICS and Telesign.
Proximus Group Integrated annual report 202324
Roll-out #1 gigabit network for Belgium
1 1.75 Mio Homes Passed + joint venture’s fiber in the street funnel of 300,000 Living Units
Rolling out the best gigabit network in Belgium is one of
Proximus’ main strategic priorities. We are committed to
investing in a future-proof network that guarantees a secure
connection for everyone at all times. This network plays a crucial
role in supporting the digital acceleration of our society. Fiber
and 5G are undisputed superior technologies in this regard.
We have the ambition of achieving a 50% fiber coverage of
Belgium, equal to more than 3 million homes and businesses, by
the end of 2025. Ultimately, we strive toward a 95% coverage,
or around 6 million homes and businesses. To achieve this
ambition and at the same time enable the ecient roll-out
of fiber in Belgium, we firmly believe in new types of fiber
partnerships. An initiative supported by the telecom regulator
BIPT.
In terms of 5G, Proximus has the ambition to cover all major
Belgian cities by the end of 2024, and to cover 100% of the
country in the 2025-2026 timeframe.
We foster a level playing field for competitors, as our gigabit
network is a fully open-access platform, on which all other
service providers are welcome to oer their own services to their
end customers.
Fiber network
In 2023, we continued to roll out our fiber network at
a high pace, with one home or business being added
every 15 seconds. At the end of the year, the fiber
footprint reached 29% of the total Belgian premises,
representing 1.75 million homes and businesses
connectable to fiber. Overall, including also the full contribution
of our joint ventures, we covered 34% of Belgian homes
and businesses with “Fiber in the street”.
1
Moreover, 64% of
enterprises inside industrial zonings were connectable, and fiber
works were being implemented in 147 cities and municipalities.
Gigabit network investments benefit the whole of Belgian society
Why is the roll-out of fiber and 5G in Belgium important? First of all, it is a real catalyst for the economy. It encourages innovation,
boosts competitiveness, enables new business models, stimulates job creation and supports the digital transformation of the
Belgian education system. This eventually translates into Belgium’s improved Digital Economy and Society Index (DESI) score, a
monitoring index created by the European Commission to track the digital progress of member states.
Yet digitalization also has a downside. Without a fast connection, people can find themselves excluded from government
services, job interviews, school registrations, banking services, and more. Connectivity for all consumers, businesses of all
sizes, public services and cities, wherever they may be, is therefore a priority for Proximus. This is why we make significant
investments to improve connectivity in areas in Belgium where people lack access to a high-performance Internet connection,
with such “white zones” being primarily located in rural areas in Wallonia.
Lastly, gigabit networks are part of our plan to reduce our CO
2
footprint (more information in: ‘Act for an inclusive society and
be sustainable in everything we do’).
‘ We strive toward a 95% fiber
coverage, or around 6 million
homes and businesses.’
Proximus Group Integrated annual report 202325
Innovative technologies
Multigigabit
Proximus launched its Multigig technology across the entirety
of Belgium in July 2023. This technology enables customers to
benefit from the fastest Internet in Belgium in terms of uploads,
downloads and latency, oering superior Internet speeds (up
to 8.5 Gbps download/1 Gbps upload) everywhere that fiber
coverage is available.
Technologies for rural areas
We continue to allocate more resources to oer high-speed
Internet (speed above 30 Mbps) each and every day, even in
those rural areas – so-called “white zones” – where the Internet
speed currently lies below 30 Mbps. By combining fiber with
other innovative technologies, Proximus wants to provide all
Belgians with optimal access to digital services. To this end, we
are trying out various techniques in rural areas where traditional
cable laying is too expensive or not an option whatsoever, such
as aerial fiber installation. And these eorts are paying o: at
the end of 2023, 95.9% of inhabitants had access to high-speed
Internet, compared to 95.3% in 2022.
In the case of aerial fiber installation, the fiber is laid on the
poles of electricity suppliers, which reduces costs in comparison
to cables being run through conventional trenches. In 2023,
we signed an agreement with energy operator RESA. This
complements the partnership we have already had in place
since 2022 with ORES, a large electricity and gas distributor
in Wallonia. We also initiated a proof-of-concept project in
Flanders using the electric poles of Fluvius.
First demonstration of a quantum-safe network
In 2023, we successfully completed a field trial of a quantum-
safe network with our partner Nokia (more information in:
‘Engineer technology assets to enable digital ecosystems’).
Partnering for fiber roll-out
For this huge endeavor – rolling out the #1 gigabit network for
Belgium – we work with partners who are co-investing in fiber
and roll it out in less densely populated areas. Our joint ventures
Fiberklaar in Flanders and Unifiber in Wallonia are focused
on deploying fiber to 2.1 million premises in medium-density
population areas.
The joint venture Glasfaser Ostbelgien (GoFiber) – between
the German-speaking Community of Belgium, Proximus and
Ethias – is undertaking the roll-out of fiber throughout the
region by 2026. Thanks to this public-private agreement, the
first of its kind in Belgium, almost all of the 40,000 premises in
the German-speaking municipalities will have access to the best
broadband available.
Proximus is exploring other partnerships to bring fiber to rural
areas throughout the country.
In October 2023, the BIPT announced its openness to
collaboration agreements with operators for the deployment
of fiber networks. Proximus welcomed this statement, as such
collaborations could facilitate the rapid availability of fiber to all,
benefiting families, businesses, and society as a whole.
‘ We work with partners who are
co-investing in fiber and roll it out
in less densely populated areas.’
Proximus Group Integrated annual report 202326
Phasing-out of our copper network
Our fiber network is replacing the current copper network;
deactivating our copper network enables operational and
energy savings, as well as simpler infrastructural management.
At the end of 2023, there were more than 300,000 homes and
businesses where only fiber is available. The copper we are able
to recover is sold for recycling or reuse.
5G network
We have a strong track record in pioneering mobile
communications to deliver the best possible mobile
experience to our customers. We aim to build on this by
further strengthening our mobile network. This is why 5G
is so important: the faster speed – up to ten times faster
than 4G – enables new applications and ways of working,
such as decentralized clouds and the Internet of Things (IoT).
Additionally, its ultra-low latency allows for the hyper-realistic
rendering of virtual reality images.
Coverage
In 2022, Proximus has secured the largest spectrum share in
the market for the next 20 years, enabling us to increase our
mobile capacity and roll out 5G in an optimal way. This gives us a
head start in terms of network quality and allows us to continue
oering the best mobile experience in Belgium.
In 2023, 5G was mainly available in Flanders. Thanks to the
positive evolution of the legal framework, we were also able
to start our roll-out in Wallonia and the Brussels Region in the
course of 2023. At the end of 2023, we reached 40% national
5G indoor coverage.
Partnerships
Our joint venture with Orange Belgium, MWingz, aims to
develop a mobile access network by sharing telecom equipment.
The frequency spectrums and our core networks remain
discrete, however. This equipment sharing allows us to reduce
each operator’s number of mobile sites by 40% by 2026, while
simultaneously improving the coverage of the shared network
by 20%. The main benefits for end-users and society will be a
better overall mobile experience thanks to a wider coverage,
deeper indoor coverage, and a faster 5G roll-out while reducing
the cumulative total number of sites of both operators.
Proximus is also partnering with Nokia and Ericsson, enabling
us to build an ecient, reliable and sustainable mobile network.
Through our partnership with Nokia, we are upgrading our
Achievements in 2023
• 29% of total Belgian premises connectable (vs. 21% at the end of 2022)
• 467,000 new homes and businesses are connectable to fiber, bringing the total to 1.75 million
(vs. 1.28 million at the end of 2022)
• 34% of Belgian premises covered with “Fiber in the street”
• The fiber roll-out is ongoing in 147 cities and municipalities (vs. 93 at the end of 2022)
Proximus Group Integrated annual report 202327
Mobile Radio Access Network (RAN) equipment, while our
partnership with Ericsson aims at upgrading and modernizing
our Mobile Data Core Network.
Together with Nokia and Ericsson we are also developing
technological innovations that will lead to new opportunities
for our customers. An example of this is 5G slicing, which
allows the network to be broken down into “slices” (or “virtual
networks”) and assigned to specific applications, such as
emergency services in the event of a particular incident. In
2023 the first use case using 5G slicing was tested in our 5G
innovation lab.
Additionally, Proximus is building an ecosystem of partners
(including companies, universities and research centers) in order
to identify and develop relevant and innovative 5G applications
that address today’s societal and business needs. In 2023, we
further worked on several innovative 5G applications (more
information in: ‘Grow profitably locally and globally through
strong brands’).
Achievements in 2023
• 5G indoor coverage: 40% (vs. 11% at the end of 2022)
• 5G available in 337 cities and municipalities (vs. 94 in 2022)
• 264 sites dismantled through MWingz (vs. 72 in 2022)
Addressing health concerns
Proximus is aware of concerns regarding electromagnetic fields and health. We provide information on these topics and
take precautionary measures against any potential negative health impacts. We comply with the legislation in force, both for
networks and for devices, and closely follow developments in scientific research.
The potential health impact of radio waves, particularly those used in mobile telephony, has been the subject of scientific
studies for over 30 years. The vast majority of (inter)national authorities and institutions – including the World Health
Organization (WHO) – agree that when radio frequencies for mobile communication fall below internationally authorized
thresholds, there is no evidence that they have any adverse health consequences. This will not change with 5G.
We provide information about the potential consequences of electromagnetic waves on health and the environment on our
websites. There are also links to information made available by Belgian regional authorities and the WHO regarding scientific
research in this field, as well as responses to concerns about the potential risks of exposure to electromagnetic waves from
mobile phones.
Proximus Group Integrated annual report 202328
Engineer technology assets to enable digital
ecosystems
We are transforming Proximus from a telco company into a tech
company. This transformation requires the implementation
of flexible, cloud-based IT systems capable of supporting
advanced technologies. This is essential to meet the evolving
needs of customers. The ongoing modernization of our IT
systems encompasses data automation, advanced analytics,
and the migration of our operations to the cloud, streamlining
operations and reducing costs.
We also recognize our significant role in cybersecurity and
artificial intelligence. This is why we invest in programs and
expertise to protect our own infrastructure, and have created
Proximus Ada, the first Belgian center of excellence in artificial
intelligence and cybersecurity.
Infrastructure modernization
The process of virtualizing our networks is underway and
progressing according to plan.
In 2023, Proximus introduced Oracle and Netaxis for the
softwarization of its voice platform. This platform is used to
interconnect the Proximus network with all voice telecom
operators. With this project, all voice routing decisions will be
centralized in an easily programmable engine.
Simplification and IT transformation
Our goal is to evolve towards a modular, resilient and cost-
eective IT for a better service to our customers. This year we
delivered a number of projects to achieve this goal. For instance,
we implemented a new billing account management capability,
allowing our customers to manage corrections and preferences
themselves. We have also successfully onboarded fiber
customers to a new servicing platform, marking a further step
in streamlining our IT infrastructure and improving customer
experience. Additionally, we dedicated special attention to
improving the performance and stability of our
digital tools and platforms. This is crucial to ensure a
fully digitally supported sales and servicing journey
for both our customers and customer-facing employees.
We also continued to enhance our digital channels to improve
customer experience and enable an acceleration of e-sales
and e-servicing. As part of this, we introduced a new tool for
our call center agents to identify operational and automation
opportunities, and support agent coaching.
Finally, Scarlet’s IT transformation is well underway. Its IT
systems have been integrated into Proximus’ IT platforms,
with benefits in terms of customer experience and operational
synergies.
Cybersecurity and data protection
Security is one of our top priorities, this is specifically important
when developing new infrastructure and digital services. In
2023, Proximus Group invested €7.2 million in its Corporate
Cyber Security Program. This program aims to make our
company more cyber-resilient, while oering best-in-class
secure services and networks to our customers. Moreover, the
program focuses on protection against business disruption
and the security of our critical infrastructure, such as API and
our private and public clouds. It also boosts our cybersecurity
capacity for coping with the acceleration of threats. To handle
this final issue, in 2023 we continued to make additional
investments in protecting our network against Distributed
Denial of Service attacks, or DDoS attacks.
Artificial intelligence and machine learning capabilities are also
increasingly used in our Corporate Cyber Security Program.
As an example, with the support of the government, Proximus
developed an AI-based solution for its anti-phishing and
anti-fraud platforms (more information in: ‘Act for an inclusive
society and be sustainable in everything we do’).
Proximus Group Integrated annual report 202329
Additionally, we safeguard our company data and our
customers’ privacy by continuously modernizing our Identity
and Access Management (IAM) systems. We are, for instance,
launching a project that will make it easier to manage access to
our applications based on user profiles, enabling us to better
comply with data protection legislation.
Proximus holds a Trusted Introducer Certification and an
ISO 27001 certification that now combines the certifications
on housing and hosting in our data centers, our remote
operations center and our Explore connectivity services oered
to enterprise customers.
Proximus Ada
Center of excellence for artificial
intelligence and cybersecurity
Launched in March 2022, Proximus Ada, a wholly owned
subsidiary of Proximus, is the first Belgian center of excellence
dedicated to artificial intelligence (AI) and cybersecurity. It
is designed to be a pillar of innovation and a center of
expertise for all the companies in Proximus Group, enabling
them to develop and launch new applications but also to
create a more secure digital society and build trust in the digital
economy. Proximus Ada employed 80 experts by the end of
2023.
Proximus Ada further strengthens the cyber-resilience of
companies that are part of Proximus Group through the CSIRT
(Cyber Security Incident Response Team). The CSIRT handled
1,453 security incidents and 22,464 alarms for Proximus in
2023. When we refer to incidents, this could be for instance
phishing mails to customers or employees in our company’s
name. With the general increase in the number of phishing
attacks, experts from the CSIRT have an important role to play
in educating and raising the awareness of our employees. They
hold information sessions on cybersecurity threats and trends
that are detected within Proximus. They have also performed
several simulation exercises to assess Proximus’ ability to
respond to cyberattacks and define actions for improvement.
They closely monitor the Internet to block cybercriminals’
attempts to abuse Proximus and its aliate brands. Finally,
the CSIRT oers its services to other enterprises. In 2023,
it made three interventions against cyberattacks.
In the field of AI, Proximus Ada collaborates with Proximus
NXT and Codit to oer solutions on the Benelux market,
encompassing data foundations, AI algorithms and integration
in a fully secured way. By the end of 2023, they were able to
secure their first two deals. In parallel, Proximus Ada continued
to develop and enhance its AI models to improve Proximus
Group’s operational eciency and customer experience.
Proximus Ada collaborates with external stakeholders to
boost local innovation. For example, in September 2023,
Proximus Ada teamed up with Proximus NXT, ID2Move,
Phoenix-Tech and Deltrian International to launch Wallonia’s
Investing in the future with quantum
cryptography
To stay on top of our game, we are exploring the
promising field of quantum communication. Simply
put, in fiber networks, special “keys” called quantum
keys can be generated and used to encrypt and decrypt
messages. These new encryption techniques have the
ability to make communication flows extremely secure.
In a laboratory test conducted in 2023, we achieved
quantum key distribution (QKD) over a distance of
150 km. We also successfully completed a field trial,
testing quantum-safe communication using fibers
between our data centers in Evere and Mechelen,
achieving a distance of 63 km. In June 2023, together
with Nokia, and utilizing QKD equipment from ID
Quantique, we organized the first demonstration of a
quantum-safe network on an operational fiber network
in Belgium.
‘ Artificial intelligence and
machine learning capabilities are
increasingly used in our Corporate
Cyber Security Program.’
Proximus Group Integrated annual report 202330
first warehouse management project using a drone coupled
with 5G and artificial intelligence. The aim is to use 5G and
artificial intelligence to autonomously fly a drone into a covered
storage warehouse to enable relevant, real-time information
to be transmitted to the company’s stock manager. This project
represents a major step forward in meeting companies’ needs
for drone-based inventory control and management.
Generative AI
Triggered by the arrival of ChatGPT in early 2023,
several Generative AI use cases are already being
developed and assessed by Proximus Ada. For instance,
one of the use cases will make it easier for customers
to find the correct and latest information on all our
products, promotions, methods and procedures through
chatbots. With the help of a writing assistant or a text
translation and correction tool, we can improve the
quality of our chat responses. Generative AI also allows
us to enhance the chat interface on our FAQs, providing
a natural language interface for our customers.
Local ecosystem
The ambition of Proximus Ada extends beyond Proximus
Group. It intends to develop a genuine local ecosystem by
collaborating with universities, higher institutions of applied
sciences, research institutions, public authorities and other
companies. In 2023, one research project on the intersection
of AI & cybersecurity, in cooperation with UCLouvain, was
launched. Proximus Ada has also developed hands-on exercises
in AI for students at the universities of Ghent and Mons to apply
in concrete use cases.
A safer digital space
Proximus Ada wants to build a safer digital space for users and
society. To achieve this, it launched two concrete projects
in 2023. First, it established a partnership with Paradigm
in Brussels (ex-CIRB). As of August 2023, Proximus Ada
cybersecurity experts oer their skills and expertise free
of charge to Brussels Digital Public Spaces (DPS). In these
places, the most vulnerable and least digitally equipped
citizens can use computer equipment and attend IT initiations
and trainings. Proximus Ada experts provide information and
advice on cybersecurity for DPS users and basic training to
DPS employees. The experts also oer a full verification of the
security of DPS infrastructures. By the end of 2023,
191 citizens had participated in these initiations. Second,
Proximus Ada organized free inspiration sessions for secondary
school students regarding AI and its potential.
Achievements in 2023
• Cyber Security Resilience index: 95.9% of major cybersecurity incidents with a potential visible
impact on the business, such as DDoS attacks, were prevented (vs. 98.3% in 2022).
• 1,453 incidents and 22,464 alarms handled by the CSIRT (vs. 764 incidents and 23,590 alarms in
2022)
• The CSIRT prevented 2,088,227 customers from accessing fraudulent websites
(vs. 1,808,008 in 2022)
Proximus Group Integrated annual report 202331
Foster an engaging culture & empowering
ways of working
“Think possible” is not only our brand promise, it is also our
company culture. It is a key success factor in further boosting our
organizational performance and customer-centricity. We also
actively encourage our employees to continuously grow and
develop, which is crucial for constant adaptability to an ever-
changing business context.
To continue retaining and attracting talents, we aim to position
ourselves as a leader in the employer market, oering jobs of
the future – such as artificial intelligence (AI) and cybersecurity
– international development opportunities, and a modern work
environment that promotes diversity, inclusion and well-being.
We are also transforming our workspaces to create a
collaborative and digital campus.
Think possible culture
Our “Think possible” culture is a crucial factor in realizing
our bold2025 strategy. It is the mindset that stimulates our
employees to spot opportunities in every situation. It invites us
to rethink things, to continuously improve, to simplify, and to
challenge the status quo. In 2023 we focused on encouraging
employees to adopt this mentality. We organized “Think
possible Days”, internal communication campaigns, skill
trainings, and a series of toolkits for team leaders. We have also
set up a network of ambassadors and change managers to
further share this culture throughout our company.
New ways of working
Agile way of working
Part of our culture is an agile way of working, which we started
implementing on a large scale at the beginning of 2022.
Embracing agility is not merely about adopting a methodology,
it means cultivating a mindset where adaptability and
continuous improvement become the cornerstones of
innovation, driving Proximus toward customer-
centricity, enhanced collaboration, and a resilient
future in an ever-evolving market landscape.
Campus, our future workplace
The vision of the Campus project is to create an inspiring
digital campus connected to a national network of spaces
enabling us to work smarter, built to foster connections,
collaboration and innovation. All of this is done by involving
employees and other stakeholders in co-creation (more
information in: ‘The Campus project’).
‘ We embrace the new
opportunities that come
with Generative AI.’
Proximus Group Integrated annual report 202332
AI tools for employees
We are committed to providing our employees with the latest
tools and technologies to enhance their work experience.
We therefore embrace the new opportunities that come with
Generative AI and the toolset that this makes available. A
secure chat based on Generative AI is now available to all
employees, with sessions organized to share ideas on how it can
improve their work. We are also testing GitHub Copilot as a
live-coding assistant for developers throughout the company.
This tool automates repetitive and error-prone tasks, resulting in
increased eciency, quality and satisfaction. We have reached
our deployment target of 30% by the end of 2023, with a full
deployment for all developers in 2024, pending a positive
evaluation. Lastly, we are also trialing the use of the personal AI
assistant Oce365 Copilot, which has been deployed to 300
employees in 2023.
Talent development and attraction
Keeping our employees motivated to grow is as important
as ensuring that we recruit the best talents. Each year, we
make significant investments in training programs to support
employees’ personal development.
Upskilling & reskilling our workforce
Our employees have access to a wide range of courses
through our “learning@proximus” platform, which includes
classroom trainings, digital modules or e-books. The subjects
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 (such as network and
connectivity, cybersecurity, data science and the cloud), or even
take a new direction in their careers.
Moreover, we propose an extended catalog with trainings
around topics that support individual development (creative
thinking, well-being and communication, to name but a few) and
an attractive oer of leadership development programs that
support leaders in developing along their journey, whether they
are just starting out or are already experienced leaders. Experts
can also benefit from a specific program on self-leadership,
communication and influencing skills.
Employees who are 50 or older, have access to tailored
development tracks, starting with an assessment of their
skills, competences and aspirations. Furthermore, we regularly
inform our 55+ employees about sustainable employability
and provide those performing heavy work with options to
accommodate their end of career.
We are committed to continuously improving the knowledge
and skills of our engineers, technicians, splicers, and
employees who have direct interactions with customers. This
includes trainings in specific domains like fiber and other new
technologies, as well as focusing on soft skills, such as “problem
solving”, “interacting with customers” and “resilience & stress”.
Of course, we also pay attention to internal mobility possibilities,
and promote candidates internally whenever possible.
Attracting talent
The competitive labor market makes the importance of talent
attraction and recruitment an even greater challenge, and for
this reason we invest in targeted searches in domains such as
sales, technical field, data analysis, UX design, IT architecture
and software development.
Other initiatives like the Graduate Program have oered 18
newly graduated talents the opportunity to benefit from
an extensive learning path. Our IT activities also piqued the
interest of new talent: Proximus Ada, our center of expertise in
cybersecurity & AI, for instance, attracted 16 local talents to jobs
of the future. Our Proximus NXT aliates also welcomed 229
new IT talents.
Mobility benefits
Proximus invests in flexible mobility, not only to achieve its
sustainability ambitions, but also to oer its employees a
broader range of mobility benefits. This year, we took our
goal a step further by restricting orders for new company
Proximus Group Integrated annual report 202333
cars exclusively to electric ones as of July 2023. In order to
stimulate alternatives to company cars, we also integrated the
federal mobility budget into Vaigo, our platform that enables
employees to manage their personal mobility budget, choosing
from numerous modes of transport with full flexibility.
Diversity and Inclusion
Diversity and inclusion are fully embedded in who we are at
Proximus. Promoting diversity and raising awareness about
the importance of inclusion makes a vital contribution to well-
being and creates the best conditions for our employees to
develop both personally and professionally (more information in:
‘Diversity and Inclusion statement’).
Well-being at work
We are creating a positive work environment where people
feel good and valued, where working conditions are adapted
to personal needs, and where employees feel engaged and
actively contribute to our company’s ambitions. Our HR
department is the driving force behind all well-being activities.
It defines a common policy and oers support and advice on all
problems surrounding this topic.
To safeguard our employees’ well-being, we:
• Hold “Speak-Up” surveys – which we do twice a year –
among our employees regarding their experiences at work. In
these we assess all aspects that drive their engagement and
well-being. They serve as a kind of “well-being barometer”
and have helped us identify focus domains and actions that
are required.
• Oer learning opportunities pertaining to mental and
physical health (e.g. personal energy, a balanced workload,
stress management, healthy food).
• Have established a community to exchange items and goods
between employees, with the aim of boosting circularity and
sustainability.
• Oer employees a mental health app with learning
sessions, short tests as well as breathing and meditation
exercises.
• Regularly call on our internal social consultants and
prevention advisors to support our employees in dierent
areas of well-being at work, such as their psychosocial and
ergonomic needs or stress management.
• Oer a series of benefits to our employees and their families
through our Work-Life Community. These range from sport
and health initiatives to complementary services such as the
Proximus Fun Day, school holiday activity camps organized
for children and, through Proximus Anity, discounts on
various brands.
Finally, the new Collective Bargaining Agreement 2023-2024
for Proximus SA employees was approved in February 2023.
Achievements in 2023
• Employee engagement at 77%
• €40.83 million invested in employee re-skilling and upskilling
• 63% of employee have attended 5 training days or more
• 683 internal moves (Proximus SA)
• 424 new hires (Proximus SA)
• Detailed list of key indicators available in the ‘Social statements’ (S1-S4)
Proximus Group Integrated annual report 202334
Delight customers with an unrivalled
experience
Our customers are at the center of everything we do. Our
ambition is to delight our residential and professional customers
by leveraging the superiority of our networks, delivering user-
friendly and personalized experiences, and integrating customer
feedback into our operations.
We want to become the operator with the best brand
recommendation (Net Promoter Score – NPS) for our Proximus,
Proximus NXT, Scarlet and Mobile Vikings brands across all
customer segments on the Belgian telecom market.
Superior connectivity and product
experience
High-speed Internet
With our Multigigabit technology, we oer the fastest Internet
via fiber, setting us apart from our competitors. This Multigig
technology has been integrated into the fiber oerings for our
residential, business and wholesale customers. Depending on
their needs, customers can choose between three superior
Internet speeds, up to 8.5 Gbps download/1 Gbps upload
everywhere that fiber coverage is available. For business
customers, the upload speed oering goes up to 1.5 Gbps.
Thanks to the combined use of Wi-Fi 6, the latest Wi-Fi
technology, and our new Wi-Fi boosters, we continue to improve
Wi-Fi coverage and to guarantee the best experience at
home and in the oce. Our Smart Wi-Fi solution monitors the
Wi-Fi experience of our customers remotely and suggests, by
means of the MyProximus app, proactive actions by which to
improve it. In addition, Smart Wi-Fi manages all connections and
automatically adapts to provide customers with the best Wi-Fi
coverage.
Mobile network experience
Capitalizing on the spectrum acquired in 2022, Proximus
is continuously optimizing its mobile network, to oer
the best experience on the market. We are currently
implementing a huge mobile network modernization project
aimed at improving the mobile experience by increasing capacity
through the roll-out of 5G.
Proximus Pickx
We aspire to position our entertainment platform, Pickx, as the
leading streaming service on the market, providing customers
with a great viewing experience. To establish Pickx as an all-
in-one platform where everyone can easily find their favorite
content and apps, we constantly innovate with new content and
features.
In 2023, for Pickx customers with a Netflix subscription and
using the most recent TV Box, we integrated their personalized
Netflix suggestions on the Pickx homepage on their TV screen.
We also renewed our partnership with the UEFA Champions
League, enabling us to keep oering our customers the best of
European soccer via Pickx.
To support the local advertising ecosystem, we launched
together with DPG Media, a 60-second unskippable advertising
break before any of their recorded programs on Pickx.
Proximus Group Integrated annual report 202335
Worry-free digital first and
human contact
Proximus customers can interact with us in several physical
and digital ways: shop visits, phone calls, email, websites,
MyProximus or MyProximus Enterprise apps, Proximus
Assistant, etc. By improving these customer touchpoints and
oering hassle-free interactions, we are committing ourselves
to exceeding expectations each time a customer contacts us.
Our continuous eorts to optimize our digital tools – while
maintaining a human approach – bring us closer to our
customers, boost customer experience, and eventually drive our
NPS.
Do-it-yourself activations
We want to stimulate customers to install the devices
themselves. This improves the customer experience thanks
to faster activation of their services and it frees up time for
our technicians to help other customers with more complex
installations and services. It also enables us to decrease the
waiting times for new installations.
In 2023, we have launched a new process supporting a number of
brand swaps in do-it-yourself mode between brands of Proximus
Group (for instance a Proximus customer becoming a Scarlet
customer or vice-versa). Where possible, we make this process
even easier for the customer by re-using the same devices.
We see promising results in terms of customer experience.
The Customer Eort Score (CES) for installations done by
customers, which measures how easy it is for customers to
install the devices by themselves, exceeded our ambitions for
2023 and was on par with the CES for installations done by
technicians.
Servicing residential customers and SMEs
In 2023, we continued to focus on enhancing customer-
centricity and operational eciency across all customer
segments. We achieved this, amongst others, by making
increasing use of AI technology.
We further built on our agile model in customer service,
enhancing the strategic shift from expertise-based to customer-
based servicing teams, and improving the way in which
our dynamic circles operate. These circles consist of multi-
disciplinary teams centered around specific customer profiles,
including amongst others SME customers. They are responsible
for the end-to-end servicing experiences of our customers and
have a very positive impact on our customer experience metrics.
Since August 2022, our Proximus Assistant has been
available to our customers via chat (chatbot), and since
March 2023 it has also been available by phone (voicebot).
This automated support oers our customers even greater
flexibility in managing their services and solving technical and
administrative issues. It guarantees a 24/7 response, while
maintaining interactivity and a personalized service.
The Smart Technical Assistant, accessible from our web
pages, enables customers to conduct digital end-to-end
diagnostics and resolve any technical issues in self-servicing
mode prior to speaking with an agent and/or scheduling a
technician appointment, if necessary.
The Proximus.be webshop interface has been further
optimized. Website visitors can now see personalized
suggestions based on their profile.
Net Promoter Score (NPS)
We measure our customers’ brand recommendation
with the NPS, a widely used market research metric. We
ask customers how willing they are to recommend our
brands to friends and family. Their responses give us
insight into their brand loyalty. In the residential market,
Mobile Vikings maintains the highest NPS score of the
mobile market, while Scarlet holds the highest NPS
score of the fixed market. Proximus’ NPS for convergent
customers remained largely positive but came under
pressure due to the inflationary price increases.
In the enterprise market, customers with an account
manager showed a positive evolution in the NPS, mainly
thanks to the good customer service provided by our
account teams.
Proximus Group Integrated annual report 202336
For customers who feel more comfortable with face-to-
face interactions, our store employees play a crucial role.
Customers can ask for their help in one of our 82 shops or via
our partner shops.
For our Business Flex customers, we continued to oer our
five business guarantees tailored to their specific needs such as
24/7 technical support and a same-day repair.
Servicing enterprise customers
Over the past three years, we substantially enhanced our
enterprise customer journeys, making them as eortless
as possible by oering dedicated support models and user-
friendly digital interfaces, such as MyProximus Enterprise and
ServiceNow.
For instance, we revamped the user management and
registration journey enabling 90% of user onboardings on
MyProximus Enterprise to occur automatically through self-
service. Additionally, in 2023, we introduced more than 20 new
functionalities on MyProximus Enterprise. As a result, more
than 50% of all customer interactions for which our customers
contact us, now have a digital alternative. These eorts have
translated into positive results in terms of customer experience,
significantly improving the NPS score for our professional
customers.
A major project we have been working on over the last few years
is the complete redesign of the “quote-to-bill” journey. This
includes a set of IT tools used to quote, order and invoice mobile,
fixed or ICT solutions to our customers. The first results of these
eorts are expected to be visible as from 2024.
Transforming MyProximus into Proximus+
In 2024, Proximus plans to launch Proximus+ for its residential
and small enterprise customers, an enriched version of the
MyProximus app. The app will include all features previously
available in MyProximus to manage telco products, and will also
oer services in domains like mobility, energy and healthcare.
Small enterprises will be able to access both Proximus+ and
MyProximus Enterprise. Medium-sized and large enterprises will
continue to use MyProximus Enterprise.
‘ More than 50% of all enterprise
customer interactions, now have a
digital alternative.’
Proximus Group Integrated annual report 202337
Anchoring continuous improvement on customer feedback
Proximus actively seeks valuable customer feedback and
has multiple channels in place for gathering and analyzing it
eectively.
Through “Voice of the Customer”, our customer feedback
platform, we collect and analyze residential and enterprise
customer feedback. This allows us to act swiftly. In 2023,
we further rolled out dashboards for all customer-facing
employees and launched several surveys for our enterprise
customers.
Together with some of our key enterprise customers we set
up an executive advisory board to capture feedback on strategic
topics and foster a closer customer relationship. We are also
developing new capabilities by constantly measuring and
capturing customer feedback through market research, digital
surveys, data analytics, customer events, etc.
Additionally, we use the customer experience dashboard for
residential and small enterprise customers, to map and track
the drivers of customer satisfaction and dissatisfaction, enabling
root cause analysis and the preparation of action plans. This
allows us to greatly improve our customers’ journeys, with a
primary focus on fiber provisioning, administrative and technical
assistance.
We organize dedicated design thinking sessions and focus
groups to co-create or test solutions together with our
customers. As an illustration, a beta version of Proximus+ was
tested by 35,000 employees and customers in 2023.
Achievements in 2023
Net Promoter Scores (NPSs):
• Residential convergent customers (Internet + TV + postpaid): +11
• Scarlet: +17
• Mobile Vikings: +42
Proximus Group Integrated annual report 202338
Grow profitably locally and globally
through strong brands
1 The agreement remains conditional upon fulfilling the stipulated conditions, including obtaining regulatory and anti-trust approvals and completing the
MTO (mandatory takeover oer).
Our bold2025 strategy is a growth plan in which we monetize
our investments in our core business and explore new paths for
growth at both local and international levels.
In the consumer market, our multi-brand strategy and our
network and product superiority drive growth. In the enterprise
market, we aim to become the leading Benelux technology
player by leveraging our connectivity superiority and further
building on our IT foundations. Growth will also come from
wholesale, thanks to our open network strategy.
Internationally, BICS and Telesign provide a unique growth
pathway for Proximus Group. With the agreement to buy
a majority stake in Route Mobile
1
we aim to accelerate that
growth and to become one of the worldwide leaders in digital
communications.
Activities in Benelux
Despite challenging market conditions in 2023, we delivered an
excellent commercial performance, driven by our multi-brand
strategy and our network and product superiority.
Residential market
A multi-brand strategy
In Belgium, our multi-brand strategy (Proximus, Mobile Vikings
and Scarlet) allows us to address all needs of the market, from
value seekers to price-conscious consumers.
Proximus
The roll-out of the fiber Multigigabit technology across the
whole of Belgium is one of our growth drivers. From July
onward, it was integrated into the Flex Fiber packs. Existing Flex
Fiber customers received an upgrade of their Internet speeds. In
parallel, we launched several advertising campaigns
focusing on fiber to build awareness and associate
the Proximus brand with fiber.
In addition, we have continued to shift our residential
customers towards flexible oers tailored to their
needs, the so-called Flex packs, combining TV, Internet and
mobile. The number of residential Flex packs had increased to
1.054 million by the end of 2023 (vs. 927,000 by the end of
2022).
Customers with a mobile subscription included in their Flex
pack saw their data volume significantly increase. Mobile-only
customers could also choose new mobile tari plans with
significantly more data volume and higher speeds thanks to the
progressive roll-out of Proximus’ 5G network.
The 3
rd
strongest brand in Belgium in 2023
According to the 2023 Kantar’s Brand Z study, Proximus
is the third strongest brand in Belgium, after Samsung
and Google. This great result shows that we are
succeeding in translating our purpose – Boldly building
a connected world that people trust so society blooms
– into reality.
Mobile Vikings
Mobile Vikings is a 100% digital brand oering both mobile and
Internet-at-home, focused on delivering the best data oers.
In 2023, Mobile Vikings started distributing an Internet Box
integrating the latest Wi-Fi 6 technology for maximum coverage
at home. On the mobile side, the operator launched the Global
Data Pass. This enables mobile customers to activate a bundle
of data for use when travelling in 28 countries outside the EU.
Proximus Group Integrated annual report 202339
Furthermore, based on customer usage insights, Mobile Vikings
increased the mobile data volume in some tari plans without
increasing prices. Customers with subscriptions starting at €15
can also enjoy 5G at no extra costs. In October 2023, Mobile
Vikings was recognized with a silver Ee Award for its Internet-
at-home launch campaign.
Scarlet
Given the current economic context, Scarlet is more than ever
committed to its mission to provide aordable telecoms to all
Belgian households. In order to cope with evolving digital needs,
Scarlet boosted the speed of its Internet products at the start of
2023, both in standalone and in packs. To protect its customers
from bill shocks, Scarlet also blocked data roaming outside of
Europe, unless the customer explicitly requests it. Since July
2023, new Scarlet customers are serviced on Proximus’ IT
systems. With this change, Scarlet products are now compatible
with fiber technology, oering the same speed and price on both
copper and fiber (for Internet Loco, Trio and Trio Mobile).
Existing Scarlet customers are gradually being moved to the
Proximus IT environment. With this change, they will also
benefit from fiber (upon migration), a new self-service app, and
many other benefits.
Additionally, Scarlet launched a new ad campaign titled “There
is no ‘but’ when choosing Scarlet”, promoting its straightforward,
competitive and transparent service in a humorous way.
Tango (Luxembourg)
In 2023, Tango put in place a set of actions that significantly
contributed to their profitable growth. For instance, they
revamped their broadband promotions, placing a greater focus
on higher-end products to enhance their product mix and cater
to the evolving demands of their customers. Likewise, they
simplified their mobile portfolio and revamped their high-end
oers to boost their competitiveness in the market and increase
the share of their premium oerings.
Beyond telecom: premium content, sponsoring
and apps
Entertainment & sports
Our premium content on our digital entertainment platform
Proximus Pickx was another driver of growth this year
(more information in: ‘Delight customers with an unrivalled
experience’). At the end of 2023, we had 1.24 million monthly
active users on our Pickx app & web platform (1.24 million
monthly active users at the end of 2022).
Proximus not only broadcasts entertainment and sports events
on Pickx, but also sponsors Belgian music and sports. In this
respect, we have been a loyal partner of the largest Belgian
summer festivals for many years. In 2023, we extended our
deals with Graspop Metal Meeting, Rock Werchter, TW Classic,
Werchter Boutique, Pukkelpop, Les Francofolies de Spa and Les
Ardentes for at least three more years.
In addition to the festivals, Proximus is proud to support
partners such as the opera house La Monnaie, BOZAR, AB,
the Queen Elisabeth Music Chapel, the Queen Elisabeth
Competition, Klarafestival (VRT), Festival Musiq3 (RTBF) and
the MIA’s (VRT).
In 2023, we also renewed our partnerships with cycling race
organizer Flanders Classics and with the UEFA Champions
League.
Apps
In 2023, we continued to enhance our digital solutions designed
to make our customers’ lives easier.
Our customers use the MyProximus app to check their telco
usage, manage their products and bills, and get access to a
Proximus Group Integrated annual report 202340
number of additional digital solutions. At the end of 2023, there
were 1.119 million monthly active users of MyProximus (vs.
1.175 million at the end of 2022).
We expanded the ecosystem around our Doktr app. This
is a secure and user-friendly video consultation service for
patients and healthcare professionals implemented in close
collaboration with key local healthcare ecosystem players. We
partner with mutualities (CM-MC and Solidaris), private insurers
(AG Insurance and Vanbreda), GP associations (Domus Medica)
and occupational medicine (Cohezio). In collaboration with
Solidaris Wallonie, Doktr also oers online consultations with
registered psychologists. At the end of 2023, the Doktr app had
106,000 registered users (vs. 68,000 at the end of 2022).
Our Banx digital banking app, in partnership with Belfius, oers
customers a complete digital banking experience while also
encouraging them to make more conscious and sustainable
choices.
Enterprise market
In the enterprise market, we aim to become the leading Benelux
technology player by leveraging our connectivity superiority and
further building on our IT capabilities with cloud, cybersecurity
and data as key strategic domains. The combination of smart
telco value management, IT growth and continuous innovation
will drive our success in this market.
Launch of Proximus NXT
In 2023, Proximus Enterprise became Proximus NXT. This
new name is synonymous with a strategy that highlights our
IT expertise beyond our telecom DNA. It reflects our know-
how in next generation technologies and embodies our desire
to collaborate in an open ecosystem, built together with our
customers and partners.
Proximus NXT oers a whole range of services, including cloud,
data and cybersecurity, which together enable companies’
digital development. For these services, we partner with big
global tech companies including Google, Microsoft and Amazon,
local IT partners, and our specialized subsidiaries: Proximus NXT
SpearIT, Codit, ClearMedia, Davinsi Labs, Telindus Netherlands
and Telindus Luxembourg.
Cloud and security
A few of the milestones with regard to cloud and security that
we have reached this year include:
• Joining forces with Google Cloud in 2023 to be the first
in Europe to deliver Google Distributed Cloud Hosted, a
disconnected sovereign cloud solution. With this partnership
and Clarence, the joint venture created with LuxConnect
in October 2023, Proximus enables government bodies
and regulated enterprises to benefit from the powerful
capabilities and benefits of a public cloud whilst complying
with data sovereignty regulations. We ensure full data
sovereignty in Europe. In 2022, Proximus also entered into a
unique partnership with Microsoft to oer Microsoft Encrypted
Cloud. With the Microsoft and Google oer, Proximus has a
unique Sovereign Cloud oering to bring to the market.
• Delivering state-of-the-art SASE (Secure Access Service
Edge) solutions including Fortinet, Cisco, Netskope and Palo
Alto to enterprise customers. SASE combines the network
and security management of on-premise, private and public
clouds. These solutions are increasingly gaining in importance,
as traditional firewalls are unable to suciently protect cloud
data.
• Rolling out Managed Detection and Response (MDR)
solutions using technologies from leading providers, such
as Microsoft, Fortinet and Palo Alto, while simultaneously
expanding the use of our existing Splunk-based environment.
• Being selected by VITO (the Flemish Institute of
Technological Research) as one of its preferred partners for
network and security services. This is an important recognition
of our expertise and experience and reinforces our ambition
to claim an undisputed leadership position in the Benelux IT
market. We are committed to providing optimal support to all
interested public bodies and to creating an innovative, secure
and future-proof IT environment.
‘ With the Microsoft and Google
oer, Proximus has a unique
Sovereign Cloud oering to bring
to the market.’
Proximus Group Integrated annual report 202341
Data and AI
We are strengthening our capabilities to design, build and run
data-driven solutions using Microsoft Azure. These solutions
support a wide range of data analytics usages, ranging
from fully integrated Internet of Things (IoT) environments
to customer-specific use cases. In 2023, we focused on
building scalable solutions and including AI capabilities within
our solutions, allowing data analysis and prediction with an
unprecedented level of eciency.
Proximus NXT is also collaborating with Proximus Ada. Our
ambition is to become the reference for AI and Generative AI
in Belgium and Luxembourg. (more information in: ‘Engineer
technology assets to enable digital ecosystems’).
5G innovation
5G is widely considered to be a key enabler of digital
transformation in almost every industry, making it a significant
long-term growth driver for Proximus. We have several 5G
innovation hubs in partnership with A6K and Fabriek Logistiek,
Howest University of Applied Sciences and VIVES University
of Applied Sciences, where industry customers and partners
develop innovative use cases and test their 5G projects. These
use cases span multiple domains, and encompass industrial
applications, construction, entertainment, transport & logistics,
healthcare and agriculture, to name but a few areas.
In 2023, we explored 12 new 5G use cases, for example:
• With the Port of Antwerp-Bruges, DroneMatrix and
SkeyDrone, we launched a network of autonomous drones
that will provide extra pairs of eyes to help coordinate smooth,
safe and sustainable operations in the Antwerp port area.
• With cashless payment provider EventPay we tested 5G
slicing capabilities to ensure smooth mobile payment
transactions during the Wintermonde event at
Dendermonde. The network set-up included a dedicated
slice on the 5G public network with a guaranteed capacity for
payment and without the risk of network saturation.
• We supported UZ Brussel in creating high-tech ambulances
for inter-hospital transport. The medical transport team is in
direct contact with the hospitals via a Proximus 5G connection
for monitoring patients during transfer. By using cameras
and headsets for all occupants and “augmented reality” (AR)
glasses, it provides an innovative way to connect patients,
ambulance workers and remote medical experts in real time.
• For the broadcaster RTBF we deployed a private 5G network
that guarantees very high performance and data security.
This 5G private connection ensures the quality and stability
of its live audio and video streams, whether it is for news
broadcasts or for events like “Viva for Life”.
Proximus Group Integrated annual report 202342
Zoom on the SME market
Our new organizational model for the SME market, introduced
in 2022, allows us to focus more on SMEs given their specific
needs compared to those of large enterprises and residential
customers. We oer them a range of relevant solutions, such as
Business Flex, Business Booster and Enterprise Pack Together.
Our aliate ClearMedia oers IT solutions tailored to their
needs. The Multigig technology was made available to SMEs.
Since August 2023 it has been integrated into the Business Flex
Fiber and Enterprise Pack Together packs. Also in 2023,
we developed Secure Net in co-creation with our customers.
Secure Net is a standardized security solution for SMEs to
protect their business from cyberthreats.
Wholesale market
Proximus’ open network welcomes wholesale partners in a
non-discriminatory way, fostering a level playing field between
competitors. Throughout the year, we gave our wholesale
partners access to our Multigig fiber technology.
We also made an agreement with Digi Communications Belgium
and Citymesh Connect to provide wholesale access to our
mobile network at a national level. This agreement highlights
our mobile excellence and proves the strength of our open
network strategy, allowing us to capture value out of the
capacity, coverage and performance of our gigabit networks.
At the end of 2023, over 40 fiber partners and around a dozen
Mobile Virtual Network Operators (MVNO) use the Proximus
network. We have over 600 active roaming agreements in
place, including Voice over LTE (4G), 5G and IoT coverage.
Worldwide activities
BICS
Our BICS subsidiary oers a wide range of services, from global
voice and messaging to IoT, roaming and cloud communications,
CPaaS (communications platforms as a service) and fraud
prevention.
BICS continued to partner with leading global players in 2023.
For instance, it renewed its MTN GlobalConnect partnership,
a pan-African digital wholesale and infrastructure services
company, through which it collaborates on international mobility
and connectivity for Africa. BICS also partnered with the
network software provider Mavenir to launch a new Voice over
LTE (4G) solution that helps operators prepare for the phase-
out of 2G and 3G services around the world. Another strategic
partner is Microsoft: together they help enterprises avoid
network “lock-ins” and enable devices to roam through private
and public mobile networks around the world without the need
for complex operator agreements.
Furthermore, BICS has strengthened its network with a new
SDN (software-defined networking) controller developed by
Achievements in 2023
• Active residential and business fiber lines: 397,000 (vs. 252,000 at the end of 2022)
• Residential Flex pack subscriptions: 1.054 million (vs. 927,000 by the end of 2022)
• Wholesale agreement with DIGI Communications Belgium and Citymesh Connect
• Detailed information on our excellent commercial performance in the ‘Management discussion’
Proximus Group Integrated annual report 202343
Nokia. The new intelligence module automates optimal trac
routing on the network, improving overall performance for
consumers while laying the groundwork for use cases such as
5G network slicing and bandwidth calendaring.
A range of innovations are being developed at BICS, including
its 5G Standalone Roaming Hub, which announced its first
full-service 5G Standalone connection in October 2023. BICS’s
hub makes it easy for operators to allow data, texts and calls to
be carried across a 5G mobile network. Moreover, they benefit
from additional fraud and intelligence security, on top of the
Secure Edge Protection Proxy (SEPP) standard requirements
for 5G Standalone. Established on BICS’s next generation data
roaming network (IPX), the hub opens the door for operators to
easily access the business opportunities and innovation oered
by 5G Standalone.
Telesign
Our Telesign subsidiary oers digital identity and programmable
communications solutions.
In 2023, Telesign launched the Continuous Trust™ Authority,
a new global initiative that aims to provide a collection of
resources, insights and experts working together to oer a
deeper understanding of the critical role of trust in the digital
economy (more information in: ‘Act for an inclusive society and
be sustainable in everything we do’).
In 2023, Telesign has developed numerous product innovations:
• The “self-service” feature allows businesses of any size to
connect, protect, and defend their customer relationships
using the same services that Telesign already provides to the
biggest, most sophisticated companies in the world.
• The launch of Breached Data enables businesses to
determine at critical moments if and when a phone number
and any associated data attributes have been subject to a data
breach. The Telesign solution helps to detect vulnerabilities
in account password resets, unauthorized purchases, account
takeover attacks, and synthetic identity creation. 
• The introduction of email into the Messaging API: The channel
expansion supports programmatic email delivery and oers
businesses the flexibility to seamlessly communicate across
six channels – SMS, MMS, RCS, WhatsApp, Viber & email –
using a single API. 
• The incorporation of Automatic Speech Recognition (ASR)
into the Voice API: With ASR, businesses users can deploy
interactive voice response systems to enhance customer
convenience, accessibility and operations.
Route Mobile
In July 2023, the Proximus Group signed an agreement to
acquire a majority stake in Route Mobile, a strong player in the
field of digital communications that is focused on emerging
markets such as Africa, Asia-Pacific and Latin America.
Building on the combined strengths of Route Mobile and
Telesign, the Group is paving the way to become one of the
worldwide leaders in CPaaS (communications platforms as
a service) and digital identity. On 31 December 2023, the
agreement remained conditional upon fulfilling the stipulated
conditions, including obtaining regulatory and antitrust
approvals and completing the MTO (mandatory takeover oer).
More information on our website: ‘Investors call 17 July 2023’.
Achievements in 2023
• BICS introduced its 5G Standalone roaming hub
• Telesign launched Breached Data
• Agreement to acquire a majority stake in Route Mobile
Proximus Group Integrated annual report 202344
Act for an inclusive society and be sustainable
in everything we do
We act as an enabler for the digital society by building
digital trust and promoting digital inclusion through Internet
connectivity and digital skilling. That is why Proximus is a driving
force behind DigitAll, which aims to create a prosperous and
inclusive Belgium, where everyone has equal opportunities
to enjoy the benefits of digitalization. We oer first-class
cybersecurity services and local expertise, supporting European
sovereignty with sovereign cloud solutions in Belgium and
Luxembourg. Our goal is to reach net zero by 2040, while
helping our customers reduce their emissions. Additionally, we
strive to become truly circular by 2030 through transformative
changes in our operations.
Contributing to a green transition
As a telco and tech company, Proximus has a dual role to play in
the fight against climate change. We need to reduce greenhouse
gas emissions and move toward a circular economy, while at the
same time we are also developing technologies and solutions to
support the transition to a greener society.
Status on Net Zero
In 2022, the SBTi (Science Based Targets initiative) validated
our near-term and long-term greenhouse gas emission
reduction targets. Concretely, we have committed to achieving
net zero GHG emissions across our entire value chain by 2040,
from a 2020 base year, ten years ahead of the 2050 ambitions
pursued by Belgium. This target means an eective reduction
of at least 90% of all our emissions (direct and indirect), and the
use of carbon removal technology for the remaining emissions
(less than 10%).
Near-term targets:
• Reduce absolute scope 1 and 2 GHG emissions by 95% by
2030 (from a 2020 base year);
• Continue to source 100% renewable electricity annually;
• Reduce absolute scope 3 GHG emissions by 60%
by 2030 (from a 2020 base year).
Long-term targets:
• Maintain a minimum of 95% absolute scope 1 and
2 GHG emission reductions from 2030 through
2040 (from a 2020 base year);
• Reduce absolute scope 3 GHG emissions by 90%
by 2040 (from a 2020 base year).
Reaching our net zero target means we need to
work on all three scopes. However, for a telco and
tech company like Proximus, most of the work lies in
reducing scope 3 emissions.
Scope 1 and 2: direct and indirect emissions
To achieve the targets related to scopes 1 and 2 – i.e. our own
direct and indirect emissions linked to electricity and fossil
fuels – we are acting on three fronts.
Firstly, we are continuing to source green electricity by
maximizing self-production through solar panels and by
gradually moving toward the right mix of Power Purchase
Agreements (PPAs). This is in line with the global initiative
RE100, led by the Climate Group, to accelerate change toward
renewable energy. In this respect, we signed a PPA with Engie
in October 2023 that will contribute to securing approximately
20% of Proximus’ green electricity and reduce exposure to a
volatile electricity market.
Secondly, we are closely monitoring our electricity
consumption, and implementing measures to keep it under
control, despite the increasing demand for bandwidth and
data, and the resulting rise in electricity usage in our networks
and data centers. For instance, when upgrading old network
equipment like voice switches, we incorporate energy-ecient
technologies. We are also simplifying our network by replacing
buildings storing technical equipment with extremely compact
and more electricity-ecient units. Through Mwingz, our
Proximus Group Integrated annual report 202345
joint venture with Orange Belgium, we have continued the
consolidation of our mobile sites, switching o 264 mobile sites
in 2023. Furthermore, we maintained a consistent Power Usage
Eciency (PUE) of 1.47 in our data centers throughout 2023,
indicating a 25% reduction in power usage over the past decade.
Collectively, these initiatives resulted in a net saving of 10 GWh,
representing an additional 3% net saving in 2023.
Thirdly, to become net zero, we are progressively eradicating
the use of fossil fuels by replacing fossil fuel heating systems
with alternative technologies. This represents an investment
of €17 million throughout the period 2021-2030. Additionally,
we are intensifying the electrification of our management fleet.
Since July 2023, employees have only been able to choose from
a range of electric vehicles. However, the heavy-duty vans in our
technical fleet remain a challenge, as no suitable alternatives
are currently available on the market. Finally, bicycles are
increasingly being used by our technicians and for store
deliveries. Thanks to the CULT project (Collaborative Urban
Logistics & Transport), deliveries in the center of Antwerp are
now almost entirely emission-free. We have reduced our CO
2
emissions by 95% and our delivery driving kilometers by 25%.
The CULT project was launched in Brussels in 2023.
Scope 3: indirect emissions resulting from our
value chain
Our scope 3 emissions are highly concentrated in the
“Purchased Goods and Services” activities and represent 19
times the amount generated by our own operations. These
account for approximately 95% of our total CO
2
emissions
in 2023. To reach our emission reduction targets, we are
transitioning towards sustainable sourcing as a standard
practice, which impacts the way we operate, as well as the ways
we engage with our suppliers.
Internally, we are progressively transforming the way we
operate to avoid carbon emissions by sourcing less, namely by
shifting toward circular business models wherever possible.
Furthermore, we aim to source in the “right” way, meaning we
integrate environmental criteria into our procurement decisions.
Through our Supplier Engagement Program, we collaborate
with our top 150 suppliers, which collectively represent 85%
of our scope 3 emissions (category 1 “Purchased Goods and
Services” and category 2 “Capital Goods”) in 2023. We support
them in establishing emission reduction targets that are just
as ambitious as our own, and in disclosing their progress in this
respect on an annual basis. These goals are integrated into
contractual clauses. With these actions, we position ourselves
Scope 1
5%
- 27.4 KTons
Direct emissions
from fossil fuel
combustion and
refrigerant gases
Scope 2
0%
- 0 KTons
Own indirect emissions
from electricity usage
Proximus’ operations 4%
• Fuel & energy (excl. 1 & 2)
• Waste
• Business travel
• Employee commuting
Procurement 86%
• Goods & services
• Upstream transportation
and distribution
Customer use of products 10%
• Leased assets
• Downstream transportation
and distribution
• Use of sold products
• End-of-life treatment of sold devices
Scope 3
95%
- 523.7 KTons
Proximus' indirect emissions
in the value chain
523.7 KTons
551.1 KTons
Breakdown of Proximus Group CO
2
footprint in 2023, scope 1, 2, 3
Proximus Group Integrated annual report 202346
as a key enabler for climate action across our value chain. By
2025, our ambition is to have suppliers with validated emission
reduction targets account for 35% of these scope 3 emission
categories.
Truly circular by 2030
One of the biggest levers for reducing global emissions is the
adoption of principles from the circular economy. According to
a study by the OECD (Organization for Economic Co-operation
and Development), roughly 50% of emissions can be linked
to our usage of manufactured goods and raw materials. Our
commitment to be truly circular by 2030 will drive internal
change and contribute to achieving net zero emissions. Our
ambition is to reuse or recycle up to 90% of waste by 2025,
and to reach zero waste by 2030. In 2023, Proximus recycled
or reused 84% of its waste, compared to 87% in 2022. More
concretely, we can act in three main domains: devices, network
& data centers, and buildings.
With regard to fixed devices, we rely on eco-design. For
example, in 2022 we launched an Internet box with a casing
entirely made of recycled plastics.
We also continue to encourage consumers to return their
mobile devices to us. In 2023, we collected 128,002 mobile
phones for refurbishment or recycling, representing a 24%
return rate on the 528,000 devices sold, which is aligned with
our commitment to the GSMA (organization representing the
interests of mobile operators worldwide) pledge on mobile
device recycling. We also refurbished 799,432 devices, such as
modems, decoders, power supplies and Wi-Fi boosters in 2023.
With repairs and updates, more than 90% of our modems
and decoders are perfectly reusable. We return these devices
to the market up to four times before they are recycled by
trusted partners. Lastly, we oer our equipment “as-a-service”,
meaning we lease it. We retain the ownership, collect it after
use, and subsequently refurbish or recycle it.
Besides refurbishment of our devices, we reduce plastics and
paper in our packaging, for example by using less packaging
for smaller devices and opting for recycled cardboard and plant-
based inks.
We adhere as well to circular economy principles when
modernizing our infrastructures. For instance, when we replaced
our copper network with fiber, we were able to recover 590 tons
of copper cable, subsequently selling it for recycling or reuse.
We also share a mobile network with Orange, through the joint
venture Mwingz, which, once fully operational, will enable us to
reduce the number of base stations by 40% and the electricity
consumption by 20%, compared to a standalone scenario (more
information in: ‘Roll-out #1 gigabit network for Belgium’).
Finally, a good example of our commitment to the circular
economy on the buildings side is the Campus project (more
information in: ‘The Campus project’).
Transition to a greener society
As a telco and ICT provider, Proximus is well placed to enable its
customers and society at large to reduce their greenhouse gas
emissions.
‘ We refurbished 799,432 devices,
such as modems, decoders, power
supplies and Wi-Fi boosters.’
Proximus Group Integrated annual report 202347
On the consumer market, Proximus provides valuable
information to its customers on its websites and engages in
various initiatives to encourage sustainable practices:
• Proximus stimulates the adoption of eco-responsible
behaviors through its Use-Reuse-Recycle program. We
help our customers to make greener purchasing decisions
(e.g. by opting for the Fairphone). To extend the life of a
smartphone, we oer our customers the option of adding
a screen protector or taking out insurance against broken
screens. And we provide them with a temporary phone during
the reparation.
• In September 2023, to accelerate the collection of
smartphones and tablets, we launched a trade-in project
where customers can recover the residual value of their
devices when they return them to a Proximus shop.
On the enterprise market, Proximus, along with its partners
and customers develops innovative digital solutions that
optimize the use of resources and reduce CO
2
emissions. For
example, we now connect more than 1.7 million smart meters
to accurately measure and enhance energy consumption in
households. Additionally, we are introducing new connectivity
equipment that is highly ecient, oering more bandwidth,
while consuming less power. Moreover, our cloud oerings
give high priority to power eciency and are coupled with
cloud optimization services, enabling customers to move their
applications to the cloud while simultaneously reducing energy
consumption.
We also have a partnership with GoodPlanet to collect mobile
phones in schools. In 2023, the collection day in Wallonia was
combined with an awareness-raising workshop for children
on “the life of my GSM”. We plan to extend these workshops to
schools in Flanders and Brussels.
In 2023, emissions avoided by customers through Proximus
solutions reached 769.6 kilotons of CO
2
. This figure is higher
than Proximus’ total carbon footprint (551.1 kilotons in 2023).
(more information in: ‘Environmental statements’.)
Biodiversity
Even if Proximus’ eect on biodiversity is not very material
due to the nature of our activities, we are committed to taking
action to better preserve biodiversity. In collaboration with
our consulting partner Beeodiversity, we have defined the key
factors influencing biodiversity, along with their dependencies
and impacts. In our direct operations, these factors include the
location of sites in or near sensitive areas, network activities and
material requirements.
However, our upstream supply chain clearly has the biggest
impact with regards to our sector due to raw material extraction
and carbon emissions. So including biodiversity in our Supplier
Code of Conduct, engaging with our suppliers to reduce their
carbon emissions, acting on the circular economy and the
modernization of our network will therefore reduce the impact
of our activities.
In 2024, we will work with our stakeholders and peers to
develop a common standard, approach, strategy and mitigation
plans.
‘In 2023, emissions avoided by
customers through Proximus
solutions reached 769.6 kilotons
of CO
2
.’
Proximus Group Integrated annual report 202348
Compliance & recognition
Promoting digital inclusion
In a world that is becoming increasingly reliant on digital
solutions, we have a responsibility to ensure that everyone can
use and benefit from this digitalization. First and foremost, we
do this by deploying a network for all Belgians and ensuring our
digital services and products are safe, inclusive and accessible.
Secondly, we do so by helping people to acquire the skills they
need to seize digital opportunities. Digital inclusion is a complex
and multi-faceted challenge that we cannot tackle alone. For
this reason, we join forces with partners to achieve a greater
impact.
Access to digital for all
Connectivity and equipment
Proximus has the ambition of oering 100% gigabit coverage
across the country and is making significant investments to
improve connectivity in rural zones (more information in:
‘Rollout #1 gigabit network for Belgium’).
Schools are an important target group in our fiber roll-out. By
the end of 2025, we aim to connect nearly all secondary schools
and large elementary schools in Belgium to fiber. We cover
part of the connection costs and provide our expertise in Wi-Fi
solutions and security to schools. This initiative is part of our
partnership with Signpost to support the digital transformation
of the Belgian education system. By the end of 2023, 292
schools had already been connected to Proximus’ gigabit
network.
Our partnership with Bednet and ClassContact allows over
1,000 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.
Aordability
Thanks to the wide range of products in our portfolio, we are
able to ensure that everyone can find a suitable solution. Scarlet
Poco has the cheapest fixed Internet oer in Belgium, while
Mobile Vikings oers unlimited Internet-at-home at competitive
prices. We also grant social taris to 150,000+ persons in
unfavorable economic situations.
Achievements in 2023
• Electricity savings of 10 GWh
• 128,002 smartphones collected for refurbishment or recycling
• 799,432 refurbished fixed devices
• 20% of our electricity coming from wind power
• Detailed list of key indicators available in the ‘Environmental statements S6’
A LIST
2023
CLIMATE
Proximus Group Integrated annual report 202349
During the 2023 earthquakes in Turkey, Syria and Morocco, we
oered free calls and texts to facilitate communication with
victims, families and friends.
Inclusiveness
Proximus works with partners to improve the accessibility of
its platforms, products and services for people with disabilities.
For instance, we test the accessibility of new smartphones and
tablets in collaboration with the Passe Muraille association,
active in the inclusion of persons with disabilities. Our online
catalog features icons indicating devices that have been adapted
for users with disabilities.
Our websites Proximus.be and Proximus.com, as well as our
MyProximus and Pickx platforms, are accessible to people with
hearing and visual impairments. We also oer adapted subtitles
and audio descriptions on several channels on the Pickx
TV platform and intend to further extend this functionality to
other channels and programs in our video-on-demand catalog.
By 2024, 25% of programs in this catalog should have audio
descriptions, and 25% should also have adapted subtitles.
Empowering through education
Proximus has a long-term partnership with MolenGeek,
School19 and Technobel. MolenGeek is an organization that
helps less privileged jobseekers with an entrepreneurial mindset
to build their careers in the digital world, while School19 is the
first free Belgian coding school. Technobel oers ICT training
courses to those seeking employment, as well as information
and awareness initiatives for citizens, schools and professionals.
These collaborations are focused on enhancing the digital skills
of jobseekers to improve their prospects on the labor market.
We also work with research centers and universities such
as A6K (Charleroi), Howest University of Applied Sciences and
VIVES University of Applied Sciences. Together we set up 5G
innovation labs, which are also made available to students.
These labs support various educational programs, and allow
researchers and students to discover, test and build new use
cases, with complementary technologies such as IoT, artificial
intelligence, virtual reality, Edge computing, etc.
Supporting SMEs
SMEs do not always have the digital maturity to thrive in a
digital and more globalized economy. Proximus supports
entrepreneurs in their digital transformation, with training,
coaching and solutions adapted to their needs. Business Booster
encompasses a variety of digital and coaching solutions to assist
SMEs’ enhancement of their online presence and increasing of
their visibility on digital platforms.
Proximus Group Integrated annual report 202350
Building digital trust
Our role as a major tech company is to build trust in digital by
taking a lead in cybersecurity, (online) fraud prevention and data
protection.
We are actively involved in developing a safer digital society,
being acutely aware that the use of our networks and services
may result in a risk to data security and privacy. Cybercrime has
now become the fastest-growing form of criminal activity, with
examples ranging from cyberbullying to identity and data theft.
Fraud prevention at international level
BICS
BICS’s proactive fraud protection solutions blocked over
617 million fraudulent attempts in 2023, saving operators an
estimated €87 million in one year alone. Cumulatively, their
services have saved the industry over €2.3 billion in attempted
telecoms fraud.
BICS actively participates in international industry bodies
focused on fraud prevention, such as the i3Forum, GSMA,
BEREC, MEF, etc., promoting pan-industry collaboration
in the fight against fraud. In 2023, based on its expertise in
telecoms fraud awareness and protection, BICS was elected as
a board member of the i3Forum, an organization driving global
collaboration and innovation between international service
providers, voice carriers and technology partners.
In 2023, BICS was also re-confirmed as fully compliant with
the GLF Code of Conduct, a strictly monitored industry
initiative established to prevent fraudulent activities within the
telecommunications sector.
Telesign
In May 2023, as part of Telesign’s commitment to making
the digital world a safer place, the organization launched the
Continuous Trust™ Authority.
Achievements in 2023
• 292 schools connected to our network
• 24 devices tested for accessibility, 75% of tested devices accessible for at least 5 disabilities
• 1,949 jobseekers trained via MolenGeek, School19 and Technobel
• 27 new signatories of DigitAll’s Digital Inclusion Charter
• Detailed list of key indicators available in the ‘Social statements S6’
DigitAll
The digital divide is ever widening. Digital exclusion does not only aect vulnerable groups, but
rather all strata of society. Proximus, together with BNP Paribas Fortis, is a driving force in DigitAll, an ecosystem of more than
100 companies, social organizations and governmental bodies dedicated to advancing digital inclusion in Belgium. By signing
the Digital Inclusion Charter, they make a firm commitment to taking action to close the digital divide and create awareness.
DigitAll re-launched its social media awareness campaign in the summer of 2023, with the aim of once again drawing
attention to the digital divide and encouraging organizations and citizens to take action.
Proximus Group Integrated annual report 202351
This initiative was developed by Telesign to help shape a new
digital future that allows people to conduct business online
safely and without fear of data or digital theft. The Continuous
Trust™ Authority aims to provide a collection of resources,
insights, and experts working together to oer a deeper
understanding of the critical role of trust in the digital economy.
It includes:
• Trust Index – An annual research report on trends in
consumer trust and the impact on brands;
• Trust Certified Badge – Provides businesses with a visual way
of reassuring their customers that they have complied with
stringent fraud protection standards;
• Trust Alliance – A group of thought leaders sharing best
practices on fraud detection and prevention to help brands
develop more trusted digital platforms.
Cybersecurity and fraud prevention at
national level
Proximus’ own infrastructure is continuously protected by
350 experts across the Group (more information in: ‘Engineer
technology assets to enable digital ecosystems’), who also oer
cybersecurity and intelligence solutions that protect enterprises
against cyberattacks (more information in: ‘Grow profitably,
locally and globally, through strong brands’). For instance,
Proximus’ Security Operations Center (SOC) monitored
3.5 billion remarkable logs for our enterprise customers in 2023,
leading to 57,000 notable events of which 11,600 incidents
needed a remediation.
In addition, Proximus is a driving force in Belgium’s cybersecurity
programs. We are heavily involved in the “StopPhishing”
project, a government initiative that encourages telco operators
to implement anti-phishing and anti-fraud platforms for SMS,
email and voice calls. Since mid-October 2023, a co-investment
in which we have participated has led to the development of
an AI-based detection solution to protect our customers from
fraudulent SMSs. Over a one-month period, we multiplied by 50
the number of fraudulent SMSs blocked. In 2024, we will extend
this approach to email and calls.
Proximus also collaborates with the Centre for Cyber Security
Belgium (CCB) on the Belgian Anti-Phishing Shield (BAPS)
project. This engages all Belgian telecom operators in blocking
malicious websites that have been identified and verified by the
Centre for Cyber Security.
The sharing of knowledge and experience is fundamental to
enhancing cyber resilience within organizations and the further
protection of individuals. In 2023, Proximus handled 1,083
requests from law enforcement authorities to block access to
websites. We cooperate closely with judicial authorities and help
them in their investigations into criminal oenses, such as the
possession and distribution of child pornography.
We grow and share our expertise via a series of collaborations:
• On a national level, we remain a committed partner of
BEAlert, a 24/7 public warning system used by the Belgian
authorities to broadcast news and information in the event of
a crisis.
• The Belgian Cyber Security Coalition, of which we are co-
founders, is a collaboration platform for cybersecurity experts
from public authorities, the academic world and the private
sector. Its objectives are to raise awareness, facilitate the
exchange of expertise, and share policy recommendations.
• We cooperate closely with other European telecom operators
through the ETIS platform, where we preside over the
security working group. We also work together with the
European Network & Information Security Agency
(ENISA) to gain a better understanding of the regulatory
environment and its evolutions.
• We also engage with NATO, Europol (Cyber Crime Centre)
and Interpol (Global Cybercrime Expert Group) to stay up to
date on new cyberthreats.
Proximus Group Integrated annual report 202352
Cybersecurity awareness
Building awareness remains the best means by which to
mitigate the risk of attack, and for this reason each year our
Cyber Security Incident Response Team (CSIRT) experts
conduct information sessions for our employees, sharing
insights on the trends and threats that CSIRT monitors at
Proximus. We noticed an increase in social engineering
attacks against our employees, with 650 attempts in 2023
compared to 199 in 2022. As a response to phishing attacks,
we have intensified employee training through more frequent
and varied internal phishing simulations. Additionally, we
encourage employees to report suspicious emails to our CSIRT.
These reports allow the Centre for Cybersecurity Belgium
to proactively prevent other organizations from becoming
victims of phishing. The CSIRT posts warnings on social
media whenever a new phishing campaign that impersonates
Proximus is detected. We also advise people on how best to
protect themselves against cyberthreats via this channel.
To raise awareness of Internet safety among young people,
Proximus takes part in the Internet Safe & Fun Days
twice a year. For 13 years our employees, trained by partner
organization Child Focus, have been visiting primary schools
with the aim of making children aware of safe and responsible
Internet usage.
We also teamed up with the Centre for Cyber Security Belgium
and the Cyber Security Coalition for the 9
th
National Cyber
Security Awareness Campaign. In 2023 the focus of the
campaign was on phishing, one of the fastest growing digital
menaces of our times.
Together with Paradigm (ex-CIRB), which manages the digital
transformation of the Brussels Region, our Ada cybersecurity
experts oer their skills and expertise to the Brussels Digital
Public Spaces (DPS) free of charge. In these places, vulnerable
citizens who have limited access to digital resources can use
computer equipment and attend IT initiations and cybersecurity
trainings (more information in: ‘Engineer technology assets to
enable digital ecosystems’).
Achievements in 2023
• BICS reconfirmed as compliant with the GLF Code of Conduct
• Continuous Trust™ Authority initiative launched by Telesign
• StopPhishing: 50x increase in blocking fraudulent SMS thanks to AI
• Internet Safe & Fun Days reached 5,512 children in 104 schools (vs. 4,600 children in 111 schools
in 2022)
Proximus Group Integrated annual report 202353
Non-financial
statements
Environment 55
Social 77
Governance 92
Contribution to the SDGs 150
GRI and SASB 153
Integrated annual report 2023
Environment
Environmental statements
General note to the environmental
statements
The environmental statements describe the key indicators,
scoping, boundaries, calculation methodologies and reporting
standards for all environment domains. The indicators with a tick
mark are subject to external limited assurance by Deloitte.
Scope of the environmental
statements
We measure all activities that are subject to operational
control and material for Proximus Group. These include
Proximus, Proximus Media House, BICS, Telesign Corporation,
Connectimmo, Proximus ICT, Davinsi Labs, Codit, ClearMedia,
Telindus - ISIT, Umbrio, Proximus Luxembourg, Mobile Vikings,
Be-Mobile, Doktr and Proximus ADA. All figures reported are
Proximus Group based except when mentioned dierently.
Proximus Group Integrated annual report 202355
E1: Energy
E1
Energy Unit 2019 2020 2021 2022 2023 ✔*
Total energy consumption within the organization TJ 1,808 1,652 1,571 1,625 1,618
✔
Evolution total energy consumption
(vs. previous year)
% -4% -9% -5% 3% 0%
Evolution total energy consumption (vs. 2020) % - - -5% -2% -2%
Evolution total energy consumption (vs. 2007) % -29% -35% -38% -36% -36%
Total fuel consumption within the organization
from non-renewable sources
TJ 525 384 391 446 405
✔
E1.1 Heating: natural gas TJ 105 62 73 71 62
✔
E1.1 Heating: heating oil TJ 35 46 25 38 28
✔
E1.2 Vehicle fleet: diesel TJ 373 262 259 261 213
✔
E1.3 Vehicle fleet: petrol TJ 12 15 30 69 97
✔
Vehicle fleet: CNG TJ - - 4 5 5
✔
Total fuel consumption within the organization
from renewable sources
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 organization TJ 1,283 1,267 1,180 1,180 1,213
✔
Electricity consumption within the organization in GWh GWh 357 352 328 329 337
Evolution electricity consumption
(vs. previous year)
% -3% -1% -7% 0% 3%
Evolution total energy consumption (vs. 2020) % - - -7% -7% -4%
Evolution electricity consumption (vs. 2007) % -23% -24% -29% -29% -27%
Fixed and mobile network GWh 268 272 251 253 255
Data Centers GWh 53 51 53 49 53
Oces + Shops GWh 36 28 24 27 29
% electricity consumed from renewable sources with
GoOor own production (RE100 Belgium/Group)
% 100/100 100/100 100/100 100/100 100/100
E1.4 Energy eciency ratio – Net Revenue based TJ/€Mio 0.321 0.304 0.284 0.278 0.270
✔
Energy eciency ratio – FTE based TJ/FTE 0.140 0.140 0.136 0.140 0.139
✔
E1.5 Energy savings network TJ 40 29 22 36 45
PUE data centers Ratio 1.60 1.56 1.49 1.49 1.47
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202356
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
2023.
• 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 Eectiveness, a ratio describing how
eciently a data center uses energy, focusing on how much
the computing equipment uses compared to the cooling and
other overhead that occurs.
Notes
• E1.1: The significant decrease in natural gas and heating oil
consumption is due to the decision to lower the temperature
in technical rooms to 16°C and the temporary measure to
lower the temperature in the oce buildings to 19°C during
the energy crisis.
• E1.2: The shift towards Plug-in hybrid vehicles (PHEV) and
electric vehicles (EV) causes a decrease of 18% in diesel
related carbon emissions.
• E1.3: The number of PHEVs doubled in 2023 compared to
2022 with a 40% increase of petrol consumption as result.
• E1.4: Previous years were adjusted with net revenue as the
basis
• E1.5: Significant increase mainly due to decommissioning of
street cabinets (for copper distribution) after FTTH rollout
and phasing out of legacy technology (SDH, Switching).
Savings due to RAN sharing were not available at the time of
publication and are therefore not included in these figures.
Proximus Group Integrated annual report 202357
E2: Emissions
E2 Emissions Unit 2019 2020 2021 2022 2023 ✔*
CO
2
e emissions scope 1, 2 and 3 KTons 779.3 554.6 536.0 551.4 551.1
✔
Evolution CO
2
e emissions scope 1, 2 and 3 (vs. previous
year)
% -8% -29% -3% 3% 0%
Evolution CO
2
e emissions scope 1, 2 and 3 (vs. 2020
baseline) - SBTi Net-Zero
% - - -3% -1% -1%
CO
2
e emissions scope 1 and scope 2market based K Tons 36.9 27.4 26.6 31.5 27.4
✔
Evolution CO
2
e emissions scope 1 and 2 (vs. previous year) % -5% -26% -3% 18% -1 3%
Evolution CO
2
e emissions scope 1 and 2 (vs. 2020 baseline) -
SBTi Net-Zero
% - - -3% 15% 0%
Evolution CO
2
e emissions scope 1 and 2 (vs. 2007 baseline) % -79% -83% -84% -81% -83%
CO
2
e carbon credits obtained KTons 40.1 27.4 26.6 5.9 6.7
E2.1 Carbon intensity (scope 1 and 2)- Net Revenue based
Tons CO
2
e/
€Mio
6.5 5.0 4.8 5.4 4.6
✔
E2.2 Carbon intensity (scope 1 and 2)- FTE based
Tons
CO
2
e/FTEs
2.9 2.4 2.3 2.7 2.4
✔
CO
2
e emissions scope 1 - heating, refrigerants and fleet fuel KTons 36.0 26.6 26.6 31.5 27.4
✔
E2.3 CO
2
e emissions scope 1 - heating KTons 9.2 7. 2 6.4 7.3 5.6
✔
E2.4 CO
2
e emissions scope 1 - refrigerants KTons 0.3 0.3 0.2 1.2 0.4
✔
CO
2
e emissions scope 1 - fleet fuel KTons 26.5 19.1 20.1 22.9 21.5
✔
CO
2
e emissions scope 2 - electricity - market based method KTons 0.9 0.8 0.0 0.0 0.0
✔
E2.5 CO
2
e emissions scope 2 - electricity - location based method KTons 62.5 70.4 52.2 53.9 45.4
CO
2
e emissions scope 3 - 12 relevant categories KTons 742.4 52 7.2 509.4 519.9 523.7
✔
Evolution CO
2
e emissions scope 3 (vs. 2020 baseline) - SBTi
Net-Zero
% - - -3.4% -1.4% -0.7%
Scope 3 - category 1 - purchased goods and services KTons 460.4 440.6 421.7 43 7.3 449.5
Scope 3 - category 2 - capital goods KTons 199.8 0.0 0.0 - -
Scope 3 - category 3 - fuel and energy related activities (not in
scope 1 and 2)
KTons 9.3 8.7 8.9 15.1 14.5
Scope 3 - category 4 - upstream transportation and
distribution
KTons 2.9 3.4 4.0 4.1 4.2
E2.6 Scope 3 - category 5 - waste disposal K Tons 1.0 0.7 0.5 0.6 0.6
Scope 3 - category 6 - business travel KTons 1.8 1.6 0.4 1.4 1.3
E2.7 Scope 3 - category 7 - employee commuting KTons 5.4 2.8 1.3 2.5 3.1
E2.8
Scope 3 – category 9 - downstream transportation and
distribution
KTons / / 0.7 0.7 0.9
E2.5 Scope 3 - category 11 - use of sold products KTons 4.5 13.4 19.8 2.9 2.4
Scope 3 - category 12 - end of life treatment of sold products KTons / / 0.01 0.01 0.01
E2.5 Scope 3 - category 13 - downstream leased assets KTons 5 7.4 55.9 52.1 55.4 47.1
Scope 3 - Category 15 - investments KTons N.A. 0.1 0.1 0.1 0.1
Scope 3 - category 8, 10, 14 - not applicable KTons N.A. N.A. N.A. N.A. N.A.
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202358
Definitions
• CO2e emissions scope 1+2+3: The CO2e consumption
represents a CO2 equivalent emission figure of all greenhouse
gases combined, i.e., CO2, CH4, N2O, HFCs, PFCs, SF6. The
gases of primary interest for Proximus are CO2 and HFCs, but
CH4 and N2O 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 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.
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.
• The Science Based Targets initiative (SBTi) has validated
that the corporate greenhouse gas emissions reduction
targets submitted by Proximus have been deemed to be in
conformance with the SBTi Criteria and Recommendations
(version 5). The SBTi’s Target Validation Team has
classified Proximus’ scope 1 and 2 target ambition and has
determined that it is in line with a 1.5°C trajectory.
Proximus commits to reduce absolute scope 1 GHG
emissions by 95% by 2030 from a 2020 base year.
Proximus also commits to continue sourcing 100%
renewable electricity annually until 2030. Proximus further
commits to reduce absolute scope 3 GHG emissions by
60% by 2030 from a 2020 base year.
• The Science Based Targets initiative also assessed
Proximus’ near- and long-term targets against the SBTi
net zero criteria (version 5) and approved our submitted
targets.
• Near-term targets
Proximus commits to reduce absolute scope 1 GHG
emissions by 95% by 2030 from a 2020 base year.
Proximus also commits to continue sourcing 100%
renewable electricity annually until 2030. Proximus
further commits to reduce absolute scope 3 GHG
emissions with 60% by 2030 from a 2020 base year.
• Long-term targets
Proximus commits to maintain a minimum of 95%
absolute scope 1 and 2 GHG emission reductions by
2030 through 2040 from a 2020 base year. Proximus
commits to reduce absolute scope 3 GHG emissions by
90% by 2040 from a 2020 base year.
• Carbon credits: 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).
Notes
• E2.1: The decrease of 15% is mainly due to the 13% decrease
of our Scope 1 carbon emissions in 2023 compared to 2022.
The net revenue increased by 2.4%. Previous years were
adjusted with net revenue as the basis.
• E2.2: The decrease of 13% is due to the 13% decrease of our
Scope 1 carbon emissions in 2023 compared to 2022. The
number of FTEs increased by 0.2%.
• E2.3: The significant decrease is due to the decision to
lower the temperature in technical rooms to 16°C and the
temporary measure to lower the temperature in the oce
buildings to 19°C during the energy crisis.
• E2.4: The significant decrease is due to less decommissioning
of installations, a less intense summer compared to 2022 and
the implementation of various measures to reduce reliability
problems.
• E2.5: The decrease is caused by a significant reduction in the
Belgian electricity grid emission factor considered in 2023 vs.
2022.
• E2.6: A general reduction of waste is observed, with the
highest contribution coming from the reduction of waste
associated with excavation works (soil and rubble). This is the
consequence of a reduced number of interventions on the
copper network and an increase in outsourcing of these works
via strategic partnerships.
• E2.7: The increase is caused by a change in the method of
calculation for some aliates.
• E2.8: The increase is driven by a higher number of
downstream deliveries.
Proximus Group Integrated annual report 202359
Notes
Overview of our Scope 1, 2 and 3 standards
Scope (GHG Protocol) +
activity
Possible impact
from Proximus
Scope/% vs.
Group total
GWP Source emission
factors
External
assurance level
Scope 1 – Direct emissions
Car fleet fuel High Proximus Group/
100%
AR5 IPCC Base Carbone + Bilan
Carbone
Limited
Heating of building
installations
High Proximus Group/
100%
AR5 IPCC Gas: GHG protocol
heating fuel: Base
Carbone + Bilan Carbone
Limited
Cooling of building
installations-refrigerants
High Proximus Group/
100%
AR5 IPCC Bilan Carbone Limited
Scope 2 – Indirect emissions
Emissions released during the
generation of electricity that
is purchased by the company.
This includes also EV charging.
High Proximus Group/
100%
AR5 IPCC IEA (CO
2
emissions from
electricity – highlights)
- 2022
Limited
Scope 3 – Cat. 1
Resource extraction,
transportation and production
of purchased goods and
services
Medium Proximus Group/
100%
AR5 IPCC Supplier-delivered Life
Cycle Assessments
(Product-level), Bilan
Carbone + Ademe, IEA,
Carnegie Mellon EIO-
LCA, CO
2
emissions on
supplier-level
Limited
Scope 3 – Cat. 2
Capital goods Medium Proximus Group/
100%
AR5 IPCC Integrated in Scope 3 –
Cat. 1
Limited
Scope 3 – Cat. 3
Extraction, production and
transportation of direct fuels
and electricity purchased by
Proximus Group, non-reported
in scopes 1 and 2. Network
losses, among others, are
included in transportation.
High Proximus Group/
100%
AR5 IPCC Bilan Carbone, IEA Limited
Scope 3 – Cat. 4
Transportation of
subcontractors for network
operations, subcontracted
warehousing
Low Proximus Group/
100%
AR5 IPCC Bilan Carbone
EEIO model
(other subcontractors
fall within Cat.1)
Limited
Scope 3 – Cat. 5
Treatment of waste flows Medium Proximus Group/
100%
AR5 IPCC Bilan Carbone, Defra Limited
Scope 3 – Cat. 6
International travel
by airplane or train
Low Proximus in
Belgium/ 100%
AR5 IPCC Ocial figures of travel
agency, Defra
Limited
Proximus Group Integrated annual report 202360
Scope 3 – Cat. 7
Employee commuting
Company cars are accounted
for in scope 1. Homeworking
has been removed following
SBTi Net Zero guidelines.
High Proximus Group
100%
AR5 IPCC Bilan Carbone Limited
Scope 3 – Cat. 9
Outbound transportation from
the warehouse to customers
and shops
Low Proximus in
Belgium/ 100%
Supplier-level emission
factors, otherwise
integrated in Scope 3
Cat. 1
Limited
Scope 3 – Cat. 11
Energy consumption of
customers’ Proximus devices
(sold mobile phones)
High Proximus Group/
100%
AR5 IPCC Bilan Carbone, IEA Limited
Scope 3 – Cat. 12
End-of-life treatment of
mobile phones
Low Proximus Group/
100%
AR5 IPCC Bilan Carbone Limited
Scope 3 – Cat. 13
Energy consumption of
customers’ Proximus devices
(leased modems, TV decoders,
ONTs, and Wi-Fi boosters)
Medium Proximus in
Belgium/ 98%
AR5 IPCC Bilan Carbone, IEA Limited
Scope 3 – Cat. 15
Activities from Joint Ventures
Mwingz, Fiberklaar and
Unifiber
N.A. Proximus in
Belgium/ 100%
AR5 IPCC N.A. Limited
Scope 3 – Cat. 8, 10, 14
N.A. N.A. N.A. AR5 IPCC N.A. N.A.
Proximus Group Integrated annual report 202361
Definitions
• Carbon avoidance: 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 the solution or product to carbon
avoidance;
• The direct margin on the products or solutions (used to
estimate Proximus’ contribution to the avoidance).
• Dematerialization: suppressing the use of physical material
by, for example,oering 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 to consume energy
and space more eciently. IoT solutions will also help to
monitor how rooms are used and to adjust their function
whenever possible.
E3: Avoidance of Carbon Emissions through our products & services
E3 Carbon Abatement Unit 2019 2020 2021 2022 2023 ✔*
Total KTon CO
2
e / 465.19 501.9 741.4 769.6
Broadband enabled homeworking KTon CO
2
e / 372.5 382.2 612.2 629.0
Dematerialisation & device leasing K Ton CO
2
e / 41.2 63.2 66.5 69.1
E3.1 Online conferencing & collaboration KTon CO
2
e / 32.9 36.6 34.4 39.7
Cloud & IP communication KTon CO
2
e / 1.3 1.5 1.6 1.8
Proximus & public cloud KTon CO
2
e / 3.9 4.0 1.6 1.8
E3.2 Vehicle & trac management KTon CO
2
e / 7.4 8.7 9.1 7. 5
E3.3 Smart building & metering KTon CO
2
e / 5.9 5.7 16.1 20.7
* In scope for limited assurance 2023
Notes
• E3.1: Online Conferencing increase is driven by a higher
number of teleconferencing systems provided to our
customers in 2023 vs. 2022.
• E3.2: Vehicle & trac decrease is linked to a calculation
methodology change (shorter yearly distance considered for
heavy goods vehicles).
• E3.3: Emission avoidance increase associated to the Smart
building & metering solution is mainly driven by the large-
scale deployment of smart electricity and gas meters in
Belgium.
Proximus Group Integrated annual report 202362
E4: Circularity
E4 Circularity Unit 2019 2020 2021 2022 2023 ✔*
E4.1 Total waste - Belgium KTons 13.6 10.78 8.70 6.97 5.39
✔
% of hazardous waste - Belgium % 8.7% 5.4% 3.5% 2.7% 4.1%
✔
E4.2 % waste reused/recycled - Belgium % 87% 88% 89% 87% 84%
✔
E4.1
Non-hazardous waste - recycled or reused -
Belgium
KTons 10.60 8.82 7.45 5.86 4.30
✔
E4.3 Recycled copper cables - Belgium KTons / / 0.86 0.63 0.59
✔
Non-hazardous waste - with energy recovery
- Belgium
KTons 1.80 1.32 0.95 0.92 0.86
✔
E4.2
Hazardous waste - recycled or recovered -
Belgium
KTons 1.20 0.57 0.30 0.19 0.22
✔
E4.4 Paper consumption - Belgium KTons 0.65 0.59 0.38 0.29 0.34
E4.5 Water consumption - Belgium ‘000L 109,392 87,551 77,8 23 62,919 78,812
Total collected mobile phones & refurbished
fix devices - Belgium and Proximus
Luxembourg
Number / / 9 07,194 776,914 927,43 4
✔
E4.6
Total mobile phones collected - Belgium and
Proximus Luxembourg
Number 31,475 72,764 80,406 121,042 128,002
✔
Mobile phones collected in Proximus SA and
Proximus Luxembourg for reuse and recycling
Number 19,255 64,941 70,830 103,435 109,279
✔
Mobiles phones collected in schools with
GoodPlanet Belgium for reuse and recycling
Number 12,220 7,8 23 9,576 17,607 18,723
✔
Number of refurbished computers oered to
schools as reward for mobile phone recycling -
Belgium
Number 189 239 432 349 351
E4.7 Total refurbished fix devices - Belgium Number 336,000 409,476 826,788 655,872 799,432
✔
Number of refurbished Internet Boxes- Belgium Number 140,000 164,340 178,520 143,970 1 77,759
✔
Number of refurbished Internet Boxes/number
of new installed Internet Boxes - Belgium
% 26% 32% 28% 25% 31%
Number of refurbished TV Boxes - Belgium Number 196,000 245,136 314,407 244,990 211,987
✔
Number of refurbished TV Boxes/number of
new installed TV Boxes - Belgium
% 39% 41% 51% 38% 53%
Number of refurbished remotes - Belgium Number / / 8,348 31,789 17,120
✔
Number of refurbished PSU’s - Belgium Number / / 231,357 173,385 329,139
✔
Number of refurbished Wi-Fi boosters - Belgium Number / / 78,400 46,460 39,775
✔
Number of refurbished PABX - Belgium Number / / 9,250 5,929 3,966
✔
Number of refurbished network equipment -
Belgium
Number / / 6,506 6,363 8,501
✔
Number of refurbished ONT's - Belgium Number / / / 2,986 11,185
✔
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202363
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 recover.
• Recycled copper cables: Most copper cables come from our
network operations. These are combined with other cables
that are recuperated in our operations.
• Water consumption: Water consumption is measured based
on periodic bills.
• PSUs: 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.
• ONT: The Optical Network Terminal is a device that converts
the optical signal coming through the fiber into separate
signals for TV, voice and data.
Notes
• E4.1: A general reduction of waste is observed, with the
highest contribution coming from the reduction of waste
associated with excavation works (soil and rubble). This is the
consequence of a reduced number of interventions on the
copper network and an increase in outsourcing these works
via strategic partnerships.
• E4.2: 97% of the hazardous waste is related to batteries.
In 2023 there was a reduction of general waste quantities,
whilst the quantities of hazardous waste slightly went up,
resulting in a higher % of hazardous waste.
• E4.3: The copper cable numbers consist of 508 tons collected
by our network department and 82 tons from other sources.
• E4.4: The increase in paper consumption is mainly driven by
higher levels of occupancy at the oces.
• E4.5: The increase in water consumption is mainly driven by
higher levels of occupancy at the oces.
• E4.6: The mobile phones collected consist of 125,724 devices
by Proximus SA and 2,278 devices by Proximus Luxembourg.
• E4.7: Since this year, this KPI consist only of fix devices: as
of this year, we don’t include refurbished mobile phones
anymore in this calculation. We have corrected the numbers
of the previous years accordingly. This year, the focus was put
on refurbishment of Internet Boxes and PSUs, which resulted
in much higher volumes. That means some less focus was put
on other categories, which explains the decreased volumes.
Network equipment will vary year over year, as the inflow is
hard to predict. ONTs were started up in October 2022, so this
first full year gives a higher result compared to last year.
Proximus Group Integrated annual report 202364
E5: Supply Chain
E5 Supply Chain Unit 2019 2020 2021 2022 2023 ✔*
E5.1
% of total spend at suppliers with an
EcoVadis sustainability scorecards -
Proximus SA
% 32% 55% 56% 68% 47%
✔
E5.2
Number of total on-site audit operations in
collaboration with JAC since its inception
Number 661 741 812 910 1060
Number of annual on-site audit operations
in collaboration with JAC
Number 84 80 71 98 150
✔
% of total spend at Proximus suppliers
submitted to on-site audit operations in
collaboration with JAC - Proximus SA
% / / / / 19%
✔
% of emissions represented by suppliers
with 1,5°C science-aligned emission
reduction targets - Proximus SA
% / / 16% 18% 29%
E5.3
% of total spend at targeted suppliers with
a completed Climate Maturity Assessment -
Proximus SA
% / / / / 76%
E5.3
% of total spend at targeted suppliers with
Climate clauses within their contracts -
Proximus SA
% / / / / 13%
% of buyers who have received training
on sustainable procurement practices -
Proximus SA
% / / 100% 100% 100%
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202365
Definitions
• JAC: The Joint Alliance for CSR (JAC) is a non-profit
association of 27 global telecom operators. The association
aims to verify, develop, and assess the Corporate
Social Responsibility (CSR) implementation across the
manufacturing centers in the supply chain of suppliers in the
Information Communication Technology (ICT) industry.
• Ecovadis: Ecovadis is an established, commercial platform for
organizations to assess and distribute ESG (Environmental
Social Government) evaluations. We consider those suppliers
that have a valid scorecard on the EcoVadis platform, publicly
share this scorecard, and when the scorecard does not date
back further than 3 years.
• 1.5°C Science-aligned emission reduction targets are
targets that are either Science Based Target initiative
validated targets aligned with 1.5°C climate science or publicly
disclosed targets that are aligned with the SBTi technical
criteria without being validated by the SBTi itself.
• Climate Maturity Assessment: The climate maturity
assessment is an assessment methodology designed by
Proximus NV that scores a supplier on its performance
related to carbon accounting, carbon reduction targets and
its renewable energy roadmap. This assessment results in a
climate maturity level used by Proximus to engage a supplier
based on its current performance.
• Climate Clauses: The climate clauses are custom clauses
designed by Proximus NV requiring a formal commitment
to taking action in establishing carbon accounting, carbon
reduction targets and a renewable energy roadmap on a
specified timeline.
Notes
• E5.1: The large year-over-year decrease in the percentage
of spend at suppliers with a valid EcoVadis scorecard stems
from a change in the definition of the metric. Proximus has
become more stringent and also accepts EcoVadis scorecards
as valid given the last available scorecard does not date back
further than 3 years and it exceeds a minimum score of 45 out
of 100. This resulted in a lower number of valid scorecards. A
retro-active re-baselining of previous years’ numbers was not
possible.
• E5.2: The large year-over-year increase in number of on-site
audit operations stems from a post-covid surge of audits
executed. The large number of audits compared to pre-covid
times stems for an increase in the number of members in the
Joint Alliance for CSR (JAC).
• E5.3: With the operational launch of our Supplier
Engagement Program we have for the first time sent out
and followed up on a Proximus-launched Climate Maturity
Assessment. Based on the Maturity Level resulting from that
assessment we have started the amendment of Climate
Clauses to lower-maturity suppliers’ contracts.
Proximus Group Integrated annual report 202366
E6: Environmental management system
Proximus’ environmental management system is made up of
dierent components. There are dierent 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 Proximus
Leadership Squad.
• 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 2022-2025, approved
by 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 Proximus Leadership Squad
• Integrated management system, ISO9001 certificate and
ISO14001 certificate for our Data center in Machelen and the
activities of Telindus Netherlands
• Environmental and sustainability clauses in purchasing
procedures
• Regional permits for 5G roll-out in Flanders, Brussels and
Wallonia.
• Noise studies and control measurements to ensure
compliance with noise standards and limit disturbance for
neighbors
• Soil survey for high-risk installations
• E-learning module on the impact of mobile and wireless
telephony on the health of employees
• Creation and communication towards concerned employees
of a toolbox concerning PFAS matters and good sorting
of waste in dierent waste streams (PMC, WEEE, residual
waste…).
Proximus Group Integrated annual report 202367
EU Taxonomy
Introduction to EU Taxonomy
The EU Taxonomy is a classification system which establishes
a list of that qualify as environmentally sustainable and that
feeds into the Action Plan on Financing Sustainable Growth
supporting the European Green Deal. By providing a common
language for sustainable activities, the EU Taxonomy is meant
to drive financial flows towards the transition to a low carbon,
resilient and sustainable future society.
The ICT sector, defined as those industries that
intend to
fulfil or enable the function of information processing and
communication by electronic means
is partially covered in the
Taxonomy Regulation because of the ICT industry’s relative size
in the economy and particularly the role data centers play given
their significant energy consumption.
Being a critical player in enabling climate change mitigation,
Proximus is ahead of the curve with regards to sustainable
investments, notably with its fiber and 5G networks.
Nevertheless, the current Taxonomy’s narrow scope, which
excludes the core activities of the telecom industry, doesn’t
allow us to highlight our most sustainable activities (more
information in: ‘Act for an inclusive society and be sustainable in
everything we do’).
Outcome of Taxonomy eligibility &
alignment
Overall, and in line with its peers, Proximus has limited eligibility
as the Taxonomy crucially leaves out telecom networks from
the targeted activities. Amongst these eligible activities, most
are not aligned with the Taxonomy as Proximus does not meet
some of the Technical Screening Criteria defined at this stage.
EU Taxonomy
KPIs
Total 2023
(€M)
*
Eligible
(%)
**
Aligned
(%)
***
Turnover € 6,042 0% 0%
CapEx € 1,325 0% 0%
OpEx € 2,091 0% 0%
* More information in: ‘Consolidated financial statements’, p. 160.
** Considering all six environmental objectives.
*** Considering climate change mitigation and climate change
adaptation.
Given the lack of turnover, CapEx and OpEx linked to eligible
activities within Proximus’ overall business, the outcome
of our EU Taxonomy alignment exercise shows that our
eligibility and alignment are immaterial for Proximus in
2023. Nevertheless, Proximus is committed to continue
progressing towards our sustainability ambitions through
numerous initiatives such as the roll-out of energy-ecient
and futureproof telecom networks which in turn will allow
our customers to realize energy eciency gains for their own
activities.
Detailed assessment of relevant activities
Compared to its Annual Report 2022, Proximus has performed
an updated assessment of the FY2022 exercise, including all six
environmental objectives of the Taxonomy for FY2023.
Through this exercise, seven activities as defined in the EU
Taxonomy have been identified as potentially eligible. The
activities have been mapped based on the detailed descriptions
in the regulation.
Out of the previously mentioned activities, EV charging
stations and the smart building & metering IoT services have
been assessed as eligible.
Proximus Group Integrated annual report 202368
Detailed assumptions for retained eligible activities:
• Activity 6.15 focuses on infrastructure that will enable zero
emissions road transport which is fully in line with Proximus’
EV charging stations activities. Although the development
of EV charging stations is currently a pilot project, this activity
is part of Proximus’ strategic ambition which is expected to
grow in the coming years.
• Activity 8.2 focuses on solutions that are predominantly
aimed at the provision of data and analytics enabling GHG
emission reductions which is the case of Proximus’ smart
building & metering activities. Similarly, to EV charging
stations, these activities are still relatively small but are also
part of Proximus’ strategic ambition and are expected to grow
in the coming years.
These eligible activities represent very small amounts of
turnover, CapEx and OpEx, thus resulting in 0% eligibility after
rounding o. We cannot refer to the financial statements for
the eligible activities, as we do not have that level of granularity
available in the financial statements.
Data center activities, ICT consulting services, Proximus Media
House, manufacture of electrical and electronic equipment
and repair, refurbishment and related activities, have not been
1 Paragraph 159 of “Commission Notice on the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act
establishing technical screening criteria for economic activities that contribute substantially to climate change mitigation or climate change adaptation and
do no significant harm to other environmental objective” https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202300267
assessed as eligible for Proximus because of the following
interpretations of the EU Taxonomy Regulation:
• Eligible activities are only those for which Proximus has direct
ownership of: a lot of the above-mentioned activities are
outsourced via strategic partnerships.
• Eligible activities should be directly aimed at adapting society
to a changing climate (for activities falling under the “Climate
Change Adaptation” environmental objective), at leakage
reduction (for activities falling under the “Sustainable Use of
Water and Marine Resources” environmental objective) or at
transitioning towards a circular economy (for activities falling
under the “Circular Economy” environmental objective). For
those specific activities, our impact is assessed as crucial
yet indirect, as a key communication enabler for the specific
solutions.
Proximus’ core business, the development and management
of telecommunication networks, is excluded from the current
Taxonomy Regulation’s scope
1
.
The eligible activities have then been assessed against the
Technical Screening Criteria (Substantial Contribution, Do No
Significant Harm (DNSH) to the other objectives and Minimum
Safeguards) and they are considered as not aligned:
Taxonomy
activity
Proximus
Activity
Climate
Change
Mitigation
Climate
Change
Adaptation
Water and
marine
resources
Circular
economy
Pollution
prevention
Bio-
diversity
6.15 Infrastructure enabling road
transport and public transport
EV Charging
Stations
✔ ✔
8.1 Data processing, hosting and
related activities
Data Centres
✔ ✔
8.2 Data-driven solutions for GHG
emissions reductions
IoT Activities
✔
8.2 Computer programming,
consultancy and
related activities
ICT Consulting
✔
8.3 Programming and broadcasting
activities
Proximus
Media House
✔
1.2 Manufacture of electrical and
electronic equipment
Internet Box,
TV Box, etc.
✔
5.1 Repair, refurbishment and
remanufacturing
Refurbished
devices
✔
Proximus Group Integrated annual report 202369
• Still a pilot, EV Charging stations activity cannot yet be fully
assessed.
• As for the IoT activities, no full life-cycle GHG emission
analysis is formally completed for the moment.
• Finally, Proximus as a Group is partially aligned with the
minimum safeguards as the criteria on human rights and
corruption, bribe solicitation and extortion are met. Yet a few
publications eorts need to be addressed for Proximus to be
fully aligned with the other minimum safeguards conditions.
Looking forward
Sustainable change is one of the key pillars at Proximus. We are
undertaking strong actions to support the transition towards
a sustainable society. Proximus will be able to showcase its
sustainability credentials and engagement in a broader sense
as part of the upcoming Corporate Sustainability Reporting
Directive (CSRD), that will require large companies to report on
their environmental and social impacts from FY 2024 onwards.
Regardless of the limited eligibility for the of Proximus under
the EU Taxonomy Regulation and the absence of its core
activities within the framework, we believe that the telecom
industry and its network infrastructure is a critical enabler for
climate mitigation solutions, both for our customers and for
society.
Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processeswith minimal waste from the fuel
cycle.
NO
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating orindustrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
NO
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrialprocesses such as hydrogen production
from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
NO
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels.
NO
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
NO
Proximus Group Integrated annual report 202370
Proportion of turnover from products or services associated with Taxonomy-aligned - disclosure covering
year 2023
Financial
year 2023
Year
Substantial Contribution
Criteria
DNSH criteria
(‘Does Not Significantly Harm’)(h)
Economic
Activities (1)
Code (a) (2)
Turnover (3)
Proportion of Turnover,
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) turnover, year N-1 (18)
Category enabling
activity (19)
Category transitional
activity (20)
Text Currency %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of
environmentally
sustainable activities
(Taxonomy-aligned)
(A.1) 
€ 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0%
Of which Enabling € 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% E
Of which
Transitional
€ 0 0% 0% N N N N N N N 0% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(g)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
6.15
Infrastructure
enabling road
transport and
public transport
CCM
6.15
€ 0 0% EL EL EL 0%
8.2 Data-driven
solutions for
GHG emissions
reductions
CCM
8.2
€ 0 0% EL EL EL 0%
Turnover of
Taxonomy-
eligible but not
environmentally
sustainable
activities (not
Taxonomy-aligned
activities) (A.2)
€ 0 0% 0% 0% 0% 0% 0% 0% 0%
A. Turnover of
Taxonomy eligible
activities
(A.1+A.2)
€ 0 0% 0% 0% 0% 0% 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of
Taxonomy-non-
eligible activities
€ 6,042
M
100%
TOTAL* 100%
* While we refer to the financial statement for the total amounts (see ‘Consolidated financial statements’, p. 160), we cannot refer to the financial
statements for the eligible activities, as we do not have that level of granularity available in the financial statements.
Proximus Group Integrated annual report 202371
Proportion of CapEx from products or services associated with Taxonomy-aligned - disclosure covering year
2023
Financial
year 2023
Year
Substantial Contribution
Criteria
DNSH criteria
(‘Does Not Significantly Harm’)(h)
Economic
Activities (1)
Code (a) (2)
CapEx (3)
Proportion of CapEx,
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) CapEx, year N-1 (18)
Category enabling
activity (19)
Category transitional
activity (20)
Text Currency %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
CapEx of
environmentally
sustainable activities
(Taxonomy-aligned)
(A.1) 
€ 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0%
Of which Enabling € 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% E
Of which
Transitional
€ 0 0% 0% N N N N N N N 0% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(g)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
6.15
Infrastructure
enabling road
transport and
public transport
CCM
6.15
€ 0 0% EL EL EL 0%
8.2 Data-driven
solutions for
GHG emissions
reductions
CCM
8.2
€ 0 0% EL EL EL 0%
CapEx of Taxonomy-
eligible but not
environmentally
sustainable activities
(not Taxonomy-
aligned activities)
(A.2)
€ 0 0% 0% 0% 0% 0% 0% 0% 0%
A. CapEx of
Taxonomy eligible
activities
(A.1+A.2)
€ 0 0% 0% 0% 0% 0% 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-
non-eligible activities
€ 1,325
M
100%
TOTAL* 100%
* While we refer to the financial statement for the total amounts (see ‘Consolidated financial statements’, p. 160), we cannot refer to the financial
statements for the eligible activities, as we do not have that level of granularity available in the financial statements.
Proximus Group Integrated annual report 202372
Proportion of OpEx from products or services associated with Taxonomy-aligned - disclosure covering year
2023
Financial
year 2023
Year
Substantial Contribution
Criteria
DNSH criteria
(‘Does Not Significantly Harm’)(h)
Economic
Activities (1)
Code (a) (2)
OpEx (3)
Proportion of OpEx,
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) OpEx, year N-1 (18)
Category enabling
activity (19)
Category transitional
activity (20)
Text Currency %
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y; N;
N/EL
(b) (c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx of
environmentally
sustainable activities
(Taxonomy-aligned)
(A.1) 
€ 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0%
Of which Enabling € 0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% E
Of which
Transitional
€ 0 0% 0% N N N N N N N 0% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(g)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
6.15
Infrastructure
enabling road
transport and
public transport
CCM
6.15
€ 0 0% EL EL EL 0%
8.2 Data-driven
solutions for
GHG emissions
reductions
CCM
8.2
€ 0 0% EL EL EL 0%
OpEx of Taxonomy-
eligible but not
environmentally
sustainable activities
(not Taxonomy-
aligned activities)
(A.2)
€ 0 0% 0% 0% 0% 0% 0% 0% 0%
A. OpEx of
Taxonomy eligible
activities
(A.1+A.2)
€ 0 0% 0% 0% 0% 0% 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-
non-eligible activities
€ 2,091
M
100%
TOTAL* 100%
* While we refer to the financial statement for the total amounts (see ‘Consolidated financial statements’, p. 160), we cannot refer to the financial
statements for the eligible activities, as we do not have that level of granularity available in the financial statements.
Proximus Group Integrated annual report 202373
Table of Task Force on Climate-Related
Financial Disclosures (TCFD)
As climate change stays highly important, in 2023, we continued
the implementation of the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD), an
international framework to financially assess climate risk and
opportunities. Proximus is an ocial supporter of the TCFD
recommendations.
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.
• Corporate governance statement, p. 92
• Sustainability governance, p. 98
• Risk management report, p. 300
• Risk Management & Compliance Committee, p. 311
• CDP Climate Change responses 2023: C1.1a, C1.1b, C1.2
b Describe management’s role in assessing and managing
climate-related risks and opportunities.
• Sustainability governance, p. 98
• Remuneration report: short-term and long-term variable remuneration, p. 122
• Environmental management system, p. 67
• CDP Climate Change responses 2023: C1.2
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.
• Applying high ethical standards, p. 112
• Environmental risk and climate change, p. 306
• Sourcing & supply chain, p. 311
• CDP Climate Change responses 2023: C2.1a, C2.3, C2.3a, C2.4, C2.4a
b Describe the impact of climate-related risks and
opportunities on the company’s businesses, strategy, and
financial planning.
• Contributing to the UN Sustainable Development Goals, p. 12
• Act for an inclusive society and be sustainable in everything we do, p. 45
• Addressing stakeholder priorities, p. 15
• EU taxonomy, p. 68
• CDP Climate Change responses 2023: C3.1, C3.3, C3.4
c Describe the resilience of the company’s strategy, taking
into consideration dierent climate-related scenarios.
• Environmental risk and climate change, p. 306
• Operational risk, p. 309
• CDP Climate Change responses 2023: C2.3a, C2.4a, C3.1, C3.2, C3.2a, C3.2b
Proximus Group Integrated annual report 202374
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.
• Risk management report, p. 300
• Environmental risk and climate change, p. 306
• CDP Climate Change responses 2023: C2.2, C2.2a, C3.1, C3.2
b Describe the company’s processes for managing climate-
related risks.
• Act for an inclusive society and be sustainable in everything we do, p. 45
• Risk management report, p. 300
• CDP Climate Change responses 2023: C2.2, C2.2a, C3.1, C3.2
c Describe how processes for identifying, assessing, and
managing climate-related risks are integrated into the
company’s overall risk management.
• Risk management report, p. 300
• CDP Climate Change responses 2023: C2.2
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.
• Act for an inclusive society and be sustainable in everything we do, including a
status on our net zero and truly circular ambitions, p. 45
• Environmental statements, p. 55
• CDP Climate Change responses 2023: C4.1a, C4.1b, C9.1
b Disclose Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks.
• Status on our net zero and truly circular ambitions, p. 45
• Emissions, p. 58
• Abatement of carbon emissions through our products & services, p. 62
• CDP Climate Change responses 2023: C6.1, C6.3, C6.5, C6.5a
c Describe the targets used by the company to manage
climate-related risks and opportunities and performance
against targets.
• Environmental statements, p. 55
• CDP Climate Change responses 2023: C4.1, C4.1a, C4.1b, C4.2a, C4.2c, C4.3a,
C4.3c, C4.5a
Proximus Group Integrated annual report 202375
Social
Social statements
General note to the social statements
The social statements describe 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.
Scope of the social statements
The scope of these statements is limited to the activity of
Proximus SA, unless stated otherwise. It does not include
activities linked to our Belgian aliates. The numbers are
expressed in FTE unless stated otherwise. Full-year data are
reported.
Proximus Group Integrated annual report 202376
S1: Workforce
S1 Workforce Unit 2019 2020 2021 2022 2023
✔*
Total number of employees (FTE)
for the Proximus Group
Number 12,931 11,423 11,532 11,634 11,654
BICS Number 467 468 450 503 514
Telesign Number 322 425 504 704 782
Proximus Group excl.BICS and TeleSign Number 12,143 10,530 10,577 10,427 10,358
Total number of employees and
workers (FTE)
Number 10,556.2 8,824.0 8,796.2 8,615.70 8,484.50
Employees Number 9,651.6 8,180.3 8,796.2 8,615.70 8,484.50
Workers Number 904.6 643.7 0.0 0.0 0.0
Total number of employees (FTE)
by gender
Number 10,556.2 8,824.0 8,796.2 8,615.7 8,484.5
Female Number 3,232.7 2,629.5 2,633.5 2,627.6 2,581.6
Male Number 7,323.5 6,194.5 6,162.7 5,988.1 5,902.9
Total number of employees (FTE)
per level
Number 10,556.2 8,824.0 8,796.2 8,615.7 8,484.5
Top management Number 153.5 164.0 167.0 166.0 156.5
Female Number 35.5 39.0 37.0 37.0 37.0
Male Number 118.0 125.0 130.0 129.0 119.5
Senior management Number 914.8 899.4 953.0 1,059.4 1,074.9
Female Number 234.0 239.4 268.6 313.5 316.8
Male Number 680.8 660.0 684.4 745.9 758.1
Middle management Number 2,171.7 2,060.9 2,155.2 2,109.6 2,094.9
Female Number 57 7.2 571.1 614.9 615.7 620.4
Male Number 1,594.5 1,489.8 1,540.3 1,493.9 1,474.5
Lower management Number 605.7 539.2 524.5 520.4 489.8
Female Number 235.2 209.2 199.2 207.8 191.5
Male Number 370.5 330.0 325.3 312.6 298.3
Sales Number 1,516.6 1,123.1 1,087.8 1,049.1 1,077
Female Number 643.0 435.0 403.9 37 7.6 381.2
Male Number 873.6 688.1 683.9 671.5 695.8
Employees Number 5,194.0 4,037. 5 3,908.7 3,711.2 3,591.35
Female Number 1 ,507. 8 1,135.9 1,109.9 1,076.0 1,034.65
Male Number 3,686.1 2,901.6 2,798.8 2,635.2 2,556.7
S1.1
Total number of employees (FTE)
by employment contract. by gender
and by region
Number 10,556.2 8,824.0 8,796.2 8,615.7 8,484.5
Defined duration Number 164.8 131.8 99.0 118.0 131.0
Female Number 58.8 65.8 33.0 43.0 52.0
Male Number 106.0 66.0 66.0 75.0 79.0
Brussels Number 3 7.8 28.8 2 7.0 26.0 21.0
Flanders Number 68.0 7 7.0 42.0 56.0 86.0
Wallonia Number 59.0 26.0 30.0 36.0 24.0
Replacement contract Number 0.0 0.0 1.0 2.0 1.0
Female Number 0.0 0.0 0.0 1.0 0.0
Male Number 0.0 0.0 1.0 1.0 1.0
Brussels Number 0.0 0.0 0.0 0.0 0.0
Flanders Number 0.0 0.0 0.0 1.0 0.0
Wallonia Number 0.0 0.0 1.0 1.0 1.0
Statutory Number 2,768.8 1,879.1 1,7 37.6 1,544.8 1,401.5
Female Number 512.6 336.6 318.3 290.6 265.4
Male Number 2,256.6 1,542.5 1,419.3 1,254.2 1,136.1
Proximus Group Integrated annual report 202377
Brussels Number 1,226.1 955.3 897.1 843.3 788.2
Flanders Number 779.3 424.5 384.2 316.1 279.6
Wallonia Number 763.4 499.3 456.3 385.4 333.7
Undefined duration Number 7,622.6 6,813.1 6,958.6 6,950.9 6,9 47.0
Female Number 2,661.5 2,22 7.1 2,282.2 2,293.0 2,263.2
Male Number 4,961.1 4,586.0 4,676.4 4,657.9 4,683.8
Brussels Number 4,956.8 4,551.2 4,645.2 4,674.0 4,661.4
Flanders Number 1,312.1 1, 127.4 1,180.0 1,150.1 1,149.7
Wallonia Number 1,353.7 1,134.6 1,133.4 1,126.8 1,135.8
Total number of employees (FTE)
by language
Number 10,556.2 8,824.0 8,796.2 8,615.7 8,484.5
Dutch Number 5,625.4 4,7 17.5 4,700.3 4,593.2 4,543.1
French Number 4,900.4 4,088.7 4,078.6 4,006.9 3,926
German Number 30.4 17.8 17. 3 15.5 15.3
Total number of employees (FTE)
by age group
Number 10,556.2 8,824.0 8,796.2 8,615.7 8,484.5
Under 30 Number 861.3 838.9 758.2 695.1 689.4
30-50 Number 5,917.9 5,038.4 4,869 4,683.20 4,084.5
Over 50 Number 3,777.1 2,946.8 3,169 3, 237. 30 3,710.6
Total number of employees (FTE)
by employment type. by gender
Number 10,556.2 8,824.0 8,796.2 8,615.70 8,484.5
Full time Number 9,125.9 8,093.7 8,063.9 7, 89 4.00 7,7 28. 8
Female Number 2,499.6 2,202.3 2,224.7 2,234.30 2,186
Male Number 6,626.3 5,891.4 5,839.2 5,659.70 5,542.8
Brussels Number 5,623.3 5,224.4 5,245.5 5,203.60 5,105.4
Flanders Number 1,701.1 1,423.3 1,413.8 1,343.10 1,334.6
Wallonia Number 1,801.5 1,446.0 1,404.6 1,347.30 1,288.8
Part time Number 1,430.3 730.3 732.3 721.7 755.7
Female Number 733.1 4 27. 2 408.8 393.3 395.6
Male Number 697. 2 303.1 323.5 328.4 360.1
Brussels Number 597.4 310.9 323.8 339.7 368.2
Flanders Number 458.3 205.6 192.4 180.1 181.7
Wallonia Number 374.6 213.9 216.1 201.9 205.7
Percentage of total employees
covered by collective bargaining
agreements
% 98.5% 98.1% 98.1% 98.1% 98.1%
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202378
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, a long-term
illness, students and sub-contractors.
• Proximus Group: Proximus SA and its subsidiaries that
constitute Proximus Group.
• Employees: any member of sta not belonging to the
“statutory employee” category.
• Statutory employee: any employee who is permanently
appointed to a grade by the appointing authority of Proximus.
• 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.
• 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 eect. Negotiations about a CA are driven
by a list of requirements drafted by the representative
unions. 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,
2021-2022 and 2023-2024.
Notes
• S1.1: the increase of the number of employees having a
defined duration contract is mainly due to a recruitment
campaign in Sales.
• 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.
Proximus Group Integrated annual report 202379
S2: Well-being, satisfaction and retention
S2 Well-being, satisfaction and retention Unit 2019 2020 2021 2022 2023
✔*
S2.1
Results from employee engagement
survey
Average score 56% 71.5% 70% 71% 77%
% total workforce who received reviews
S2.2
Total number and rate of
employee turnover (FTE) during the
reporting period, by gender and age
group
% (Number)
7.6%
(807)
24.7%
(2,179.7)
4.4%
(388.7)
5.9%
(506.2)
5.1%
(432.6)
Female % (Number)
6.5%
(208.5)
30.5%
(803.3)
3.8% 
(100.7)
4.4%
(116.5)
4.5%
(116.5)
Male % (Number)
8.2% 
(598.5)
22.2%
(1,376.4)
4.7% 
(288)
6.5%
(389.7)
5.4%
(316.1)
Under 30 % (Number)
14.8% 
(128.1)
20.1%
(168.9)
13.4%
(101.6)
14.7%
(102.0)
16.8%
(115.6)
30-50 % (Number)
3.2% 
(189.1)
16.1%
(810.7)
2.8% 
(135.6)
4.2%
(194.5)
3.8%
(156.3)
Over 50 % (Number)
13% 
(489.8)
40.7%
(1,200)
4.8 % 
(151.5)
6.5%
(209.7)
4.3%
(160.7)
Total number and rate of new
employee hires (FTE) during the
reporting period, by gender and age
group
% (Number) 2.9% (308.8) 5.2% (458.9) 5.0% (442.5) 5.3% (455.3) 5% (424.3)
Female % (Number) 3.1% (101.8) 6.2% (161.9) 5.5% (146.0) 5.7% (150.5) 4.8% (123.8)
Male % (Number) 2.8% (207.0) 4.8% (297.0) 4.8% (296.5) 5.1% (304.8) 5.1% (300.5)
Under 30 % (Number)
18.8%
(162.00)
32.9% (276.0) 28.1% (213.0) 29.2% (202.8) 36.7% (253)
30-50 % (Number) 2.3% (133.5) 3.5% (175.9) 4.5% (217.5) 4.9% (228.5) 3.8% (156)
Over 50 % (Number) 0.4% (1 3.3) 0.2% (7.0) 0.4% (12.0) 0.7% (24.0) 0.4% (15.3)
S2.3
Total number of employees that
returned to work in the reporting
period after parental leave ended,
by gender
Number 340 537 231 276 277
Female Number 181 261 119 126 126
Male Number 159 276 112 150 151
S2.4
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 342 274 525 220 271
Female Number 180 136 259 112 124
Male Number 162 138 266 108 147
Return to work and retention rates of
employees that took parental leave,
by gender
%
Return to work % 95.2% 88.6% 96.7% 96.5% 91.1%
Female % 95.8% 85.6% 96.0% 98.4% 96.9%
Male % 94.6% 91.7% 97.4% 94.9% 91.9%
Retention rates % 95.5% 76.8% 87. 2% 92.1% 94.1%
Female % 95.7% 72.0% 85.2% 90.3% 90.6%
Male % 95.3% 82.1% 89.3% 93.9% 91.5%
S2.5 Work-life balance %
Working from home % N.A. 55.0% 76.0% N.A.
Good physical and mental well-being % N.A. 55.0% 56.0% 78.0% 81.0%
Good work-life balance % 69.0% 68.0% 73.0% 79.0% 82.0%
Proximus Group Integrated annual report 202380
S2.6 Gender pay quality assessment %
Management
Fixed
Remuneration
in €
N.A. N.A. €146,617.7 €162,841.0 € 171,908
Male % N.A. N.A. 100.1% 100.11% 100.17%
Female % N.A. N.A. 99.8% 99.61% 99.46%
Employees
Fixed
Remuneration
in €
N.A. N.A. €55,765.3 € 62,348 € 63,495
Male % N.A. N.A. 101.4% 101.08% 101%
Female % N.A. N.A. 97.1% 97.7 2% 97.8 8%
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202381
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. We calculate the
average score of all well-being questions in Speak Up. 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.
• Gender pay: is an analysis of the remuneration structure by
level. This KPI is about percentage and fixed remuneration.
Percentage (%): 100% is 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.
Notes
• S2.1: for the first time, the survey was sent to all colleagues
in the 16 companies of the Proximus group in Belgium and
internationally. Eight out of ten colleagues took part. We
see a general increase for all business units on the complete
engagement pillar vs. 2022.
• S2.2: 2020 was an exceptional year due to the
transformation plan. Since 2021, we notice that the normal
turnover figures for the years prior to 2020 are returning.
• S2.3: in 2023, 277 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 line with previous KPI
• S2.5: three days of homeworking are authorized per week
for employees whose function allows it. Following the
introduction of a new mobility management system, we are
unable to calculate the percentage of homeworking days for
2023.
• The question on mental-physical well-being is no longer
asked as such in our annual employee’s survey, we now
calculate the average score of all well-being questions. We
look at well-being from a more holistic perspective, including
having trusting relationships at work, receiving appreciation,
feeling energized, having fun at work besides work-life
balance & being supported to remain resilient. New items
have been added to reflect this broader view and we see that
our employees overall feel well at Proximus.
• S2.6: in 2023, female managers received 0.54% less than
the average salary for their status, while female employees
received 2.28% less than the average for their status. This
dierence is due to the fact that women working at Proximus
work more part-time than full-time compared with their male
colleagues. The dierence is therefore not due to a dierent
pay policy for men and women.
Proximus Group Integrated annual report 202382
Definitions
• Internal moves: all moves that were introduced via a
selection procedure. The following moves are considered
internal moves: lateral move, promotions, mobility Board
lateral move, mobility Board promotion, mutation, demotion,
securisation (change for a sale employee from fixed-term
contract to a permanent contract) & securisation + promotion.
• Training hours: average hours of training that the
organization’s employees (FTEs) have undertaken during the
reporting period.
• % total workforce who received career/skills trainings:
the number of employees with at least 1 training (formal or
informal) divided by the number of employees.
Notes
• S3.1: the method of calculating moves has been revised (see
definition) and the figures have been recalculated since 2018.
• S3.2: the increase is a direct consequence of the rise in
learning hours. This is due to the introduction of a KPI, which
encouraged the business, the team leaders and the learning
partners to focus much more than previous on training every
employee. Which clearly had the desired result.
S3: Training and development
S3 Training and development Unit 2019 2020 2021 2022 2023
✔*
S3.1
Total number of internal moves
(function changes) during the
reporting period
Number 621 1,385 887 1,342 683
S3.2
Average hours of training that the
organization’s employees (FTEs) have
undertaken during the reporting
period, by gender and employee
category
Hours 39 39.5 41.3 42.3 53.4
Female Hours 30 34.5 30.8 36.3 53.5
Male Hours 42 41.7 45.8 44.9 53.4
Executive Hours 37 26.1 26.3 47.7 39.4
Senior management Hours 38 32.3 30.3 42.4 51.7
Middle management Hours 38 30.3 32.2 41.6 54.7
Lower management Hours 41 30.8 30.7 40.8 51.3
Employees Hours 39 46.5 50.6 42.6 53.8
S3.3
% total workforce who received
trainings on diversity, discrimination
& harassment
% 7.4%
S3.3
% total workforce who received
career/skills training
% 99.52%
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202383
S4: Health and Safety
S4 Training and development Unit 2019 2020 2021 2022 2023
✔*
S4.1 Safety figures by gender (Proximus Group)
Injury rate (IR) Rate 0.000007 0.000008 0.000004 0.00001 0.000009
Female Rate 0.000008 0.000002 0.000001 0.000008 0.000005
Male Rate 0.00001 0.00001 0.000005 0.00001 0.00001
Occupational disease rate (ODR) Rate 0.0000007 0.0000005 0.0000003 0.00000007 0.00000007
Female Rate 0 0.0000002 0 0.0000002 0
Male Rate 0.000001 0.0000006 0.0000005 0 0.0000001
Lost day rate (LDR) Rate 0.0001 0.0002 0.0001 0.0001 0.0001
Female Rate 0.0001 0.000004 0.000009 0.000010 0.00002
Male Rate 0.0001 0.0002 0.0002 0.00015 0.0002
Absentee rate (AR) Percentage 7.9% 6.3% 6.3% 7. 1% 7. 3%
Female Percentage 11.6% 8.2% 8.2% 9.4% 9.9%
Male Percentage 6.2% 5.5% 5.4% 6.1% 6.1%
Work-related fatalities Number 0 0 0 1 1
Female Number 0 0 0 0 0
Male Number 0 0 0 1 1
S4.2
Injury rate (IR) and work-related fatalities
for all workers (excluding employees)
whose work. or workplace. is controlled by
Proximus Group
Number
Injury rate Number 28 15 10 10 12
Work-related fatalities Number 0 0 0 0 0
% sites with health & safety risk
assessment
%
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202384
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 o work taken by the aected
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.
Notes S4.1 and S4.2
• 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 and other topics such as psychosocial risks.
• In 2023, we were involved in setting up Campus. We prepared
the new Boréal building to accommodate sta in a safe and
comfortable environment during the move.
• We have an occupational medical surveillance program for
workers who are exposed to occupational risks. Together
with our aliate DOKTR and our medical partner Cohezio we
launched the program in 2023 to do the occupational medical
surveillance on a digital way, using a special smartphone
App so that doctor and employee can talk to and see each
other via digital way. In 2023, we implemented a new Yearly
ActionPlan by conducting 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 for our
on-site technicians, facilities handyman and warehouse
employees and for our technicians who travel by cargo
bike. We put in place e-learnings with VIAS on road safety
(danger of electric cars, electric bikes, scooters, etc.), we
also carried out e-learning “Are you sitting comfortably?”
at oce/at home/ in the car, psychosocial risk analysis in
dierent departments, introducing an App to support mental
well-being, defining preventive measures for third-party
aggression for customer facing employees, and we organized
training on firefighting and BA4/BA5 training for working
safely on electrical installations.
• We will also continue to implement the VCA/VCO policies
and continue to review our policy on ergonomics and analyse
the risks related to the use of dierent 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.
Proximus Group Integrated annual report 202385
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 oer 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.
Notes
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.
• S5.1: we received only 1 complaint from the Jury on Ethical
Practices which was justified, which remains notably low,
as it has been for the past years. The referenced complaint
concerns only Proximus SA advertisements.
S5: Responsible Marketing
S5 Training and development Unit 2019 2020 2021 2022 2023
✔*
S5.1
Number of # complaints from JEP
(# of which justified)
Number
(Number)
2 (1) 1 (0) 2 (0) 1 (1) 1 (1)
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202386
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 oered to schools
collecting old smartphones.
• Digital inclusion projects (# persons reached): number of
people (students, teachers, seniors) trained by the initiatives
we support (MolenGeek, School19, Technobel, Internet Safe
& Fun).
• Tested devices accessible for at least 5 categories of
disability: percentage of tested smartphones and tablets
that are accessible for at least 5 categories of disability (6
categories of disability in total are tested by Proximus).
• Percentage of devices tested for accessibility for at least
for 5 disability categories): % of tested devices during the
reporting year compared to all devices added to the oering
during the reporting year.
Notes
• S6.1: we invest € 374,391 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), disabled people (Passe Muraille),
and in the Digital Inclusion Alliance, DigitAll.
• S6.2: our employees spent 2,453 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: we aim to test all the new devices that we integrate into
our oer. This increase of the percentage of accessible tested
devices (at least for 5 disability categories) shows that we are
on the right track.
S6: Digital inclusion
S6 Digital inclusion Unit 2019 2020 2021 2022 2023
✔*
Community investment
S6.1 Community investment € N.A. N.A. 436,191 469,332 374,391
S6.2 Community investment Hours N.A. N.A. 2,961 2,295 2,453
Access to digital Numbers
Donated laptops Numbers N.A. N.A. 445 259 351
Donated Wi-Fi codes Numbers N.A. 24,693 2,581 N.A. N.A.
Digital education Numbers
Total number of people trained through digital
inclusion projects
Numbers 12,524 10,400 14,144 8,594 15,515
S6.3 Digital accessibility %
Tested devices accessible for at
least 5 disability categories
(percentage of devices)
% 44% 73% 55% 52% 75%
✔
Percentage of accessible tested devices (at
least for
5 disability category)
% N.A. N.A. 61% 86% 96%
✔
* In scope for limited assurance 2023
Proximus Group Integrated annual report 202387
Diversity and 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
as well as its purpose and results are described below.
Strategic orientation regarding
diversity & inclusion
Proximus believes that a diverse workforce, through its
employees’ unique talents, experiences and all other
characteristics unrelated to someone’s abilities, will help it
reach a more diverse marketplace while fostering business
sustainability.
Therefore, Proximus has a Policy on Diversity and Equal
Opportunities, which is part of the Code of Conduct and thus
applies to all employees.
With this policy, Proximus wants to stimulate a positive and
safe work environment where each individual’s authenticity is
respected and valued and where all employees are treated on
a fair and equal basis, regardless of their background, which for
Proximus means:
• Treating all applicants and employees equally, based solely
on relevant competencies and objective criteria;
• Promoting a mindset of respect and openness throughout all
levels of the organization;
• Demonstrating behavior free from any form of racism,
intolerance, discrimination, harassment or other attitude likely
to negatively aect the dignity of men, women and x at the
workplace;
• Incorporating diversity in all aspects of the way it runs
business, without any form of intolerance.
Within Proximus, specific teams are in charge of monitoring
compliance with the Policy and of taking the correct measures in
case of non-compliance.
Diversity & inclusion in our leadership
and employee communities
Proximus is particularly conscious of the importance of diversity
at all levels of the organization. To reinforce its commitment
to recruiting employees with an inclusion and growth mindset
and displaying behavior in line with its “Think possible” culture,
Proximus has put in place a non-discrimination clause for
each new application. When new employees join the company,
Proximus takes measures to ensure that they become
ambassadors of its corporate culture. For example, elements
of its inclusion program are integrated into the employee
onboarding tool, presented on welcome days and in all relevant
training sessions for team leaders, experts, trainees, etc.
Proximus also developed a new training on unconscious bias
and will push a mandatory training module to all employees in
2024 to create awareness about the importance of diversity &
inclusion within its community.
While putting in place well-balanced and talented mixed teams,
Proximus reinforces its capacity for innovation and fosters its
learning and feedback culture, the engagement of its employees
and their creativity towards the future challenges of a digital
world.
Proximus Group Integrated annual report 202388
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 sexual orientation.
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.
Proximus has also decided to extend its gender strategy
through the following actions:
• International days celebrations (International day of Women
and Girls in Science on 11/02, International Women day on
08/03, International day of Transgender visibility on 31/03);
• Parity of the members of the Proximus Board of Directors
after new appointments in 2023;
• Celebrations organized during diversity month (May) via
various blog posts on the intranet and social networking sites;
• Actions in the frame of the International day against
homophobia, transphobia and biphobia on 17 May;
• Continued collaboration with Open@Work on the
development of an LGBTQIA+ policy;
• Review of the training oer related to D&I and addition of
metadata to facilitate searches;
• Review of our recruitment approach to make recruiters more
aware of “unconscious biases” during the recruitment process
and help them set them aside;
• Analysis of the remuneration structure by level (pay equity
check);
• Launch of and promotion around the new MS Oce 365
functionality enabling employees to make their pronouns
visible on their profile cards to make the workplace more
inclusive and comfortable for everyone;
• Organization of a Top Women Tech event to attract
international female profiles and promote digital (“STEM”)
functions within Proximus;
• Ocial launch of our new corporate visual identity.
Proximus has extended its ambition of being the most active
company in the promotion of women in the digital world and
reached its target of recruiting 30% of women with a university
degree in technical areas by the end of 2023.
Within the framework of its Collective Agreement 2023-2024,
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 has also taken
additional initiatives to communicate its diversity and inclusion
vision, strategy and actions via a live keynote by an international
speaker who was introduced to our Proximus Leadership
Team and to all employees, a video made by 3 members of our
Proximus Leadership Squad to raise the awareness around D&I,
internal CEO communications to all employees, dierent social
media and posts on the corporate website of Proximus.
We also completely reviewed and redesigned the diversity &
inclusion pages on our corporate website and on our intranet.
They provide information regarding events, celebrations and
more on the topic of diversity and inclusion at Proximus and
worldwide.
In 2023, we also launched an inspiring internal and external
employer branding campaign with a focus on raising awareness
about our relevant strategy and actions and strengthening
Proximus’ position on diversity & inclusion. The campaign was
an unprecedented success, with over 8,400 video views by our
employees and millions of views on social networks.
We have continued to strengthen our partnership with
Google, extending our #IamRemarkable community
through the organization of new sessions all year long. The
#IamRemarkable initiative centers around a 90-minute
workshop empowering participants to openly discuss and
enhance their personal and professional achievements, oering
tools for skill development and encouraging them to challenge
biases related to self-promotion.
We will continue to set up supportive networking groups so that
everyone can feel a sense of belonging within our community.
Proximus Group Integrated annual report 202389
With regards to gender diversity, this approach is also reflected
in female representation at dierent levels of our company:
Proximus Group also has a very diverse workforce in terms of
culture with 70 nationalities.
A culture allowing everyone to
reconcile activities during dierent
phases of life
Proximus wants to create conditions that allow its employees
to reconcile various aspects of their professional and private
lives with dierent phases of life by oering opportunities for
internal job change and development opportunities, work-from-
home, 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 project, experienced talents from some organizations can
be made available to other organizations that are looking for
specific experience and/or talent.
We oer support to employees who are 50 or older in their
personal development by oering skill assessments through a
personal scan, allowing them to evaluate and act on the results
if desired. Furthermore, we regularly inform our 55+ employees
about sustainable employability and provide those performing
heavy work with options to accommodate their career goals.
Promoting a culture of inclusivity and
respect in the workplace
Our superior ethical business practices are set out in the Code of
Conduct. Through this document we want to enable conditions
in which dierences are recognized and respected, and where
all employees are given equal opportunities. This document
is applicable to every member of our diverse community and
exemplified by all managers, team leaders and employees.
Working conditions
Proximus is committed to creating working conditions that
promote fair employment practices 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 apply 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 that context.
50%
of the
Board of
Directors
22%
of the
Leadership
Squad
24%
of the
members of the
Leadership
Te a m
32%
of all
employees’
population
Proximus Group Integrated annual report 202390
The Campus project
The vision of the Campus project is to create an inspiring digital
campus connected to a national network of spaces enabling us
to work smarter, and built to foster connections, collaboration
and innovation. And this is all done through the involvement of
employees, partners and other stakeholders in co-creation.
Campus became a reality in 2023
Our Campus journey began in 2021 and became a concrete
reality in 2023, with the relocation from the Proximus
headquarters in the center of Brussels to an adjacent building,
Boreal, and to our building in Evere. This move impacted more
than 8,000 employees and contractors.
With the goal of ensuring an optimal employee experience
throughout the moving process, change management practices,
such as co-creation sessions, briefing sessions and guided
tours of Boreal were applied as of the beginning of 2023.
The feedback of employees was continuously measured and
improvement actions put in place.
The Proximus Art Collection, displayed across all floors of
Proximus’ headquarters, also needed to be relocated. Each
artwork received meticulous handling and was transported with
great care to an art warehouse. Consisting of more than 500
artworks by national and international artists, the Proximus Art
Collection is one of the largest corporate collections in Belgium.
A sustainable workspace
The Campus project helps us to achieve our green ambitions
and the aim of being sustainable in everything that we do. For
instance, by optimizing our use of oce space, we reduce energy
consumption and costs. We also opted to use a combination of
new, old and refurbished furniture, services and technology.
In 2022, Proximus and Immobel have reached binding
agreements regarding the redevelopment of Proximus’
headquarters in Brussels. In December 2023, they agreed to
extend the initially foreseen closing period by nine months,
whereby Immobel has the sole right to call the transaction in Q3
2024.
Reshaping the way we work
Campus is not merely a story about buildings, but rather one
about transforming our culture. We are completely reshaping
how we work to be more ecient and eective, while at the
same time ensuring the well-being of our employees.
To welcome everyone in the best environment, the Boreal
building and our building in Evere have been renovated with
a particular emphasis on their needs. Focus groups provided
us with a better understanding of the ways in which dierent
groups work, their needs and workspace preferences, plus the
balance between home and oce tasks.
This also led to the launch of new tools, such as Microsoft
Teams Rooms, improving the employee experience for hybrid
meetings.
And Campus is not just limited to Brussels. At the beginning
of 2024, a pilot was launched in two of our regional Campus
oces, where we have rolled-out, tested and measured the
success of new workspaces aligned with the Campus vision.
Continued deployment will happen in the remaining Campus
regional oces by the end of 2024.
Proximus Group Integrated annual report 202391
Governance
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 Ocer and the
Leadership Squad. Proximus is committed to comply with legal
and regulatory obligations and best practices.
Proximus governance model
At Proximus, we know that doing business the right way is our
license to operate. 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 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 Ocer (CEO) who takes primary
responsibility for operational management including, but not
limited to, day-to-day management;
• a Leadership Squad which assists the CEO in the exercise of
his duties.
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 act ethically.
Board of Directors
The Board of Directors is composed of no more than fourteen
members, including the person appointed as Chief Executive
Ocer. The CEO is the only executive member of the Board. All
other members are non-executive directors.
Directors are appointed for a renewable term of up to four
years. Proximus does not apply an age limit for its directors,
but 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 also
applies 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 takes 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 today has the right to nominate seven
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
Proximus Group Integrated annual report 202392
at any time the Board needs to have at least three independent
directors.
Proximus is proud to have a gender parity between male
and female within 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.
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 Gender* Age Position Term
Stefaan De Clerck M 72 Chairman 2013 - 2025
Guillaume Boutin M 49 Chief Executive Ocer 2019 - 2024
Karel De Gucht M 70 Director 2015 - 2025
Béatrice de Mahieu F 51 Director 2022 - 2026
Audrey Hanard F 38 Director 2022 - 2026
Ibrahim Ouassari M 45 Director 2021 - 2025
Claire Tillekaerts F 67 Director 2022 - 2026
Members of the Board of Directors appointed by the General Shareholders’ Meeting
Name Gender* Age Position Term
Pierre Demuelenaere
1
M 65 Independent Director 2011 - 2023
Cécile Coune
2
F 61 Independent Director 2023 - 2027
Martin De Prycker
3
M 69 Independent Director 2015 - 2027
Catherine Rutten
3
F 55 Independent Director 2019 - 2027
Joachim Sonne M 49 Independent Director 2019 - 2024
Agnès Touraine
4
F 69 Independent Director 2014 - 2023
Catherine Vandenborre F 53 Independent Director 2014 - 2026
Luc Van den hove M 64 Independent Director 2016 - 2024
* F: Female / M: Male
1. The mandate of Mr. Pierre Demuelenaere ended at the AGM of 19 April 2023.
2. By decision of the AGM of 19 April 2023, Mrs. Cécile Coune was appointed until the AGM of 2027.
3. By decision of the AGM of 19 April 2023, the mandates of Mr. Martin De Prycker and Mrs. Catherine Rutten were extended until the AGM of 2027.
4. Mrs. Agnès Touraine resigned on 1 December 2023.
Proximus Group Integrated annual report 202393
Attendance Board of Directors and Committee meetings
In 2023 fourteen meetings of the Board of Directors were
held, six meetings of the Audit & Compliance Committee, five
of the Nomination & Remuneration Committee and two of the
Transformation & Innovation Committee.
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:
Gender Nationality
7 women 7 men 11 Belgian 2 French
1 German
Members of the Board of Directors appointed by the General Shareholders’ Meeting
Name Board (total 14) ACC (total 6) NRC (total 5) TIC (total 2)
Stefaan De Clerck 14/14 6/6 5/5 2/2
Guillaume Boutin 13/14
Cécile Coune
1
10/10 3/3
Karel De Gucht 13/14 5/6
Béatrice de Mahieu 14/14 2/2
Pierre Demuelenaere
2
4/4 1/1
Martin De Prycker 14/14 5/5 2/2
Audrey Hanard 11/14
Ibrahim Ouassari 14/14 2/2
Catherine Rutten 14/14 6/6
Joachim Sonne 14/14 6/6
Claire Tillekaerts 14/14 5/5
Agnès Touraine
3
10/12 2/2
Catherine Vandenborre 13/14 6/6
Luc Van den hove 11/14 4/5 2/2
ACC: Audit & Compliance Committee; NRC: Nomination & Remuneration Committee; TIC: Transformation & Innovation Committee
1. Appointed on 19 April 2023
2. Mandate ended on 19 April 2023
3. Resignation on 1 December 2023
Proximus Group Integrated annual report 202394
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, plus one meeting dedicated to the
aliates.
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. This charter is published on the corporate website.
The Board Charter stipulates, among other things, that
important decisions should have broad support, understood
as a qualitative concept indicating eective 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.
The members of the committees are appointed by the Board
of Directors, after consultation with the Nomination and
Remuneration Committee, for a renewable term of, in principle,
three years (Bylaws & Charters | Proximus Group).
Given the strong evolution of the international pillar of
Proximus, the Board of Directors decided at its meeting of
14 December 2023 to create an International 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 and non-financial reporting processes;
• Eciency of the systems for internal control and risk
management of the company;
• The company’s internal audit function and its eciency;
• 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.
Critical concerns are communicated to the Board via the Audit
& Compliance Committee. External audit reports comprise
financial & IT security risks. Internal audit reports cover
financial, compliance, IT and network security risks. The Audit
& Compliance Committee is informed of all discussions and
decisions taken by the management in the Risk Management
Committee.
The Audit & Compliance Committee meets at least once every
quarter.
The members of the Audit & Compliance Committee (composed
of non-executive members of which two are female and three
are male), are: Mrs. Catherine Vandenborre (Chairwoman),
Proximus Group Integrated annual report 202395
Messrs. Stefaan De Clerck, Karel De Gucht, 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.
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-ocio 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
Leadership Squad 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 Leadership
Squad;
• 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
Leadership Squad through Key Performance Indicators.
The members of the Nomination & Remuneration Committee
(composed of non-executive members of which two are female
and three are male) are: Messrs. Stefaan De Clerck (Chairman),
Pierre Demuelenaere (until 19 April 2023), Martin De Prycker,
Luc Van den hove, Mrs. Claire Tillekaerts and Mrs. Cécile Coune
(as of 20 April 2023).
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-ocio 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 over time 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
(composed of non-executive members of which two are female
and four are male) are: Messrs. Stefaan De Clerck (Chairman),
Martin De Prycker, Ibrahim Ouassari, Luc Van den hove,
Mrs. Agnès Touraine (until 1 December 2023) and Mrs. Béatrice
de Mahieu.
Proximus Group Integrated annual report 202396
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 their 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.
Relationship Agreement
In accordance with article 8.7. of the 2020 Corporate
Governance Code, Proximus concluded in December 2022
a Relationship Agreement with its majority shareholder, the
Belgian State. This agreement, that does not impact the
autonomy of Proximus, nor the competences of its corporate
bodies, has the aim to create a framework for the exchange
of information, in full respect with the European and Belgian
financial legislation. This Relationship Agreement is published
on the company’s website.
Conflict of interest
A general policy on conflict of interest applies within the
company. It prohibits the possession of financial interests that
may aect personal judgment or professional tasks to the
detriment of 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.
The Board and each individual director must respect all the
rules relating to conflicts of interest between the company and
a director. In case of conflict of interest, the meeting in which the
conflict of interest is reported and the matter which gave rise
to the conflict is published in the annual report of the relating
financial year.
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 16 February 2023 to
have a conflict of interest in connection with his performance
evaluation for 2022, item on the agenda of that Board meeting.
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.
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 Oering. This Code aims to create awareness
about possible improper conduct by employees, ocers 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 members of the Board and key
employees were requested to sign an adavit that they had
read, understood and agreed to comply with the requirements
of the related legislation. Closed periods are defined and
communicated by the Group Compliance Oce to those
concerned.
Proximus Group Integrated annual report 202397
Sustainability governance
The commitment of embedding sustainability in everything
we do is achieved by integrating it in operational management
under the supervision of the Board of Directors and under
the responsibility of the CEO and the Leadership Squad in
the capacity of the Corporate Aairs Lead as Sustainability
Champion.
By regularly introducing a variety of sustainability topics at
the Board and its committees we ensure that Board members
acquire the right skills and experience and keep up to date
with environmental, social & governance matters. While
sustainability is an integral part of our strategy and treated as
such in all strategic reviews with the Board, more specifically,
the sustainability ambitions, goals and roadmaps are equally
discussed and defined at Board level. Through the CEO Activity
Report, achievements are reported bi-monthly to the Board
who also reviews progress on a quarterly basis as part of the
strategic review. Sustainability related risks, including but
not limited to climate-change risks, are part of the Audit &
Compliance Committee’s oversight of risk management.
Next to the Board reporting lines, sustainability roadmaps
are assessed on a quarterly basis within the Leadership
Squad allowing fact-based discussions and prioritization.
These roadmaps have been translated into key sustainability
initiatives and are managed jointly by the business units and
the sustainability team. A monthly status is made to a steering
committee, while KPIs and budget are reported quarterly to the
strategic management team.
The sustainability impact is integrated into every file or initiative
that comes on the agenda of the Leadership Squad meetings.
Our sustainability ambitions are reflected in the management
incentives (more information in: ‘Remuneration report’).
In preparation of the Corporate Sustainability Reporting
Directive, an analysis of current sustainability governance
and processes is being undertaken and improvements will be
implemented throughout 2024.
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 Statements.
Detailed non-financial figures can be found in the
‘Environmental statements’ 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 the
non-financial Statements.
The bold2025 strategy ambitions and 2023 achievements can
be found in ’Report on our activities’.
Evaluation of the Board
The Board evaluates its performance and interaction with the
executive management at least every three years. The latest
evaluation took place at the end of 2021 together with external
partner Guberna. The Board members were invited to answer
an extensive questionnaire, followed by an interview between
Guberna and each individual Board member. The Board
members were asked their opinion on corporate governance at
Proximus, the functioning of the Board and of the committees.
Guberna concluded in 2022 that the assessment was overall
positive and identified as main strengths a well-balanced
composition of the Board, the high quality of information flow
to the Board, a Board culture stimulating the decision-making in
the interest of the company and an excellent leadership by the
Board’s Chair. As a result of the evaluation, the Board approved
and implemented an action plan. The first element is to increase
the visibility for the Board on the governance of the aliates.
To this end an additional yearly board is dedicated to this topic.
The Board further decided to include in the management
reporting to the Board a step-back of important investment
files, comparing the business case with the results achieved.
The Board also organized a benchmark on board and executive
compensation and organized special onboarding sessions for
the new members after the AGM of April 2022 and April 2023.
Starting from the need for new competences, the Board did
develop a competence dashboard, taking potential gaps into
account when deciding on profiles for new directors.
Proximus Group Integrated annual report 202398
Non-executive directors regularly evaluate their interaction
with the executive management and meet at least once a year
without the CEO. At the beginning of every year, the committee
chairs submit their annual reports to the Board.
Competences of the Board of Directors
Telecom and media
Digital transformation and digital inclusion
lnnovation and tech
National security and cybersecurity
Finance, audit and risk
Regulatory and legal expertise
Governance and Human rights
Sales and marketing
Human capital and DEI
Operations and supply chain
Climate change and energy
International experience
Executive management experience
Proximus Group Integrated annual report 202399
Leadership Squad
Chief Executive Ocer
In its meeting of 27 November 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.
Moreover, the Board has delegated broad powers to the CEO.
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.
Leadership Squad members
The members of the Leadership Squad 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 Leadership Squad are determined by the
CEO. The Leadership Squad’s role is to assist the CEO in the
exercise of his duties.
The Leadership Squad aims to decide by consensus, but in the
event of disagreement, the view of the CEO will prevail.
The Leadership Squad generally meets on a weekly basis.
In 2023, the Leadership Squad, in addition to the CEO, was
composed of the following members:
Name Gender Age Position
Jim Casteele M 52 Consumer Market Lead
Anne-Sophie
Lotgering
F 49 Enterprise Market Lead
Ben Appel
1
M 49 Corporate Aairs Lead
Dirk Lybaert
2
M 63 Corporate Aairs Lead and
Secretary General
Antonietta
Mastroianni
F 50 Digital & IT Lead
Mark Reid M 52 Finance Lead
Geert Standaert M 53 Network & Wholesale Lead
Renaud Tilmans M 55 Customer Operations Lead
Jan Van Acoleyen M 61 Human Capital Lead
1 Ben Appel joined Proximus on 16 August 2023
2 Dirk Lybaert left the Proximus Leadership Squad on 1 September
2023, he remains the Secretary General of Proximus
Diversity at the Leadership Squad
The diversity characteristics for the Leadership Squad can be
visualized as follows:
Gender
2 women
7 men
Nationality
5 Belgian 2 French
1 Scottish
1 Italian
Proximus Group Integrated annual report 2023100
Board of Auditors
Composition
The Board of Auditors of the company is composed as follows:
• Deloitte Auditors SRL, represented by Mr. Koen Neijens, also
Chairman of the Board of Auditors;
• Mr. Jan Debucquoy, Member of the Court of Auditors;
• Mr. Dominique Guide, Member of the Court of Auditors;
• Luc Callaert SRL, represented by Mr. Luc Callaert.
Deloitte Auditors SRL, represented by Mr. Koen Neijens and Luc
Callaert SRL, represented by Mr. Luc Callaert 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 Luc Callaert SRL for
the audit of the consolidated financial statements will expire at
the annual General Shareholders’ Meeting in 2025.
Additional fees paid to the auditors
In accordance with the provisions of article 3:65 §3 of the
Belgian Code of Companies and Associations, Proximus
declares the supplementary fees that it granted during the
2023 financial year to two auditors, members of the Joint
Auditors: Deloitte Auditors SRL and Luc Callaert SRL.
The Group spent an amount of €856,896 during the year 2023
for non-mandate fees for Deloitte Auditors SRL, the Group’s
auditors. This amount is detailed as follows:
Amount spent by the Group for non-mandate fees for
Deloitte Auditors SRL
(in €) Auditor Network of auditor
Other mandatory audit
missions
151,838 578,008
Tax advice
Other missions 113,460 13,590
Total 265,298 591,598
In 2023 the Group did not spend an amount for non-mandate
fees to Luc Callaert SRL.
Amount spent by the Group for non-
mandate fees for Luc Callaert SRL
(in €) Auditor
Other mandatory audit
missions
0.00
Tax advice
Other missions
Total 0.00
Proximus Group Integrated annual report 2023101
Members of the Board of Directors
Guillaume Boutin
Mr. Guillaume Boutin has been Chief Executive Ocer since 1 December 2019 and presides over the
Leadership Squad 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 Leadership Squad as Chief Consumer Market Ocer 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 Ocer.
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 a Board member of Connectimmo.
He is also a member of the Orientation Council of Euronext 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 of Law
from the Catholic University of Leuven.
Cécile Coune
Mrs. Cécile Coune has led a dual executive career, operating as a CEO for more than 15 years in the financial
sector while working as a partner in a leading law firm.
From 2012 to 2018, Cécile Coune was at the helm of Aviabel, a Belgian company specialized in aviation
insurance and reinsurance, until its takeover by international player AXIS Capital Ltd. A lawyer by training, she was
also an associate and then partner at Liedekerke law firm from 2004 to 2012. Prior to that, she spent almost 17 years in the insurance
industry, most of which was spent at Chubb, an American multinational company, where she became Managing Director for Belgium
Proximus Group Integrated annual report 2023102
and Luxembourg at a very young age and an executive member of the Board of Directors of Chubb Europe. She also headed AXA Art
(Benelux), a subsidiary of the AXA Group specialized in art insurance.
She is currently an independent director, serving on the board and committees of several major companies, including QBE Europe and
Credendo GSR.
As a member of various business associations and networks both on international and national level, Cécile Coune is also socially
committed to diversity and inclusion. She is the co-founder and member of Women on Board since 2009, and the co-founder,
member and honorary chairwoman of European Women on Boards since 2013. She is a mentor at Duo for a Job, an association that
promotes the integration of young people with an immigrant background into the labor market, and an independent director of OFC,
the French-speaking branch of Broeders van Liefde, an organization that is mainly active in the field of mental health.
She is a strong believer in ESG requirements and has recently obtained a certification in Sustainable Finance from the Cambridge
Institute for Sustainability Leadership.
Cécile Coune has won several awards and honors. She was honored to be decorated in 2017 with the rank of Commander of the Order
of the Crown by His Majesty Philippe, King of the Belgians, for her contribution to Belgian society.
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 Aairs 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 (Master
of Laws, 1976) – where he teaches European Law. He serves as a Director on the Boards of ArcelorMittal SA, 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).
Béatrice de Mahieu
Béatrice de Mahieu is an expert in innovation, digitalization and transformation.
Since starting her career in 1999, Béatrice de Mahieu has worked successively for major telecommunications,
technology and media companies (Telenet, Microsoft, Lagardère, etc.), where she has contributed to growth
strategies and digital transformation.
In 2011, Béatrice de Mahieu started working as a mentor and investor for technology and digital start-ups, guiding them in their search
for investors, strategy development and growth.
Proximus Group Integrated annual report 2023103
Today, she is the CEO of BeCode, a social impact coding school in Belgium that teaches tech and digital skills to motivated individuals
in vulnerable professional situations. From 2019 to September 2021, she was the CEO of Co.Station Belgium (a coworking space for
tech start-ups and innovation hubs), where she created and developed several open innovation ecosystems.
Béatrice de Mahieu is currently a member of the Board of Directors of Proximus, FinTech Belgium, Slimme Regio Vlaanderen,
BeeFounders, a member of the Investment Committee of Miles Ahead (start-up studio in artificial intelligence and deep tech) and a
member of the Advisory bBoard of Veolia Belux.
She has a strong social commitment to digital inclusion, regularly supports initiatives in this field within the King Baudouin Foundation
and is a member of the Board of Directors of Les Petits Riens and United Fund for Belgium.
Béatrice de Mahieu holds a degree in Applied Communication from the “Institut des Hautes Etudes et des Communications Sociales”
(IHECS) and is co-author of “Pimento Map: assessing the strength of your business plan” (2014) and “Shiftmakers: l’art du (self)
leadership dans les années 2020” (2022).
Passionate about healthy food and sustainable wine, she also graduated from the Institute for Integrative Nutrition in New York and is
a co-founder of Chill Living Wines, a project promoting organic, biodynamic and natural wines.
Martin De Prycker
Mr. Martin De Prycker is a partner of the Qbic Fund, an inter-university fund, supporting university spin-o
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 o 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 multibillion 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 currently a member of the Board of Directors of several companies, including EVS, Arkite, Faktion and Fraudbuster/Calltic.
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.
Proximus Group Integrated annual report 2023104
Audrey Hanard
Mrs. Audrey Hanard is a Partner at Dalberg Global Advisors, a mission-driven strategy advisory firm
focusing on sustainable impact. She works with her clients, who are NGOs, UN agencies, governments and
foundations to improve educational and employment outcomes globally by developing, implementing and
measuring impactful strategies in support of inclusive development. In doing so she leverages 10+ years of
experience advising corporate, government and philanthropic clients on those topics as a manager with McKinsey &
Co, and with Telos Impact.
Audrey Hanard is currently the Chair of the Board of Directors of bpost, the leading Belgian postal and e-commerce operator
employing 36,000 sta worldwide. She is also Board member and was the President of Be education, an organization supporting
initiatives that contribute to improving the quality of education in Belgium. She previously was the President of the Friday Group, a
think tank of young Belgian talents from dierent professional backgrounds determined to inspire Belgian policy through diversity.
Audrey Hanard holds a MSc in Business Engineering from the Université Libre de Bruxelles (Solvay Brussels School, ULB) and a Master
of Public Administration from Columbia University (School of International and Public Aairs).
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, Meta, Microsoft, Salesforce,
Amazon, PwC and Proximus are investing in MolenGeek.
In 2018 Ibrahim was an expert of Horizon 2020 NMBP Advisory Group for DG Research & Innovation of the European Commission,
whose mission is to help us in particular to ensure the impact of the R&I investments 2021-2027 in the fields of industrial technologies
and improve societal involvement.
Proximus Group Integrated annual report 2023105
Catherine Rutten
Mrs. Catherine Rutten is Vice-President International, Government Aairs & Public Policy at Vertex
Pharmaceuticals since 1 July 2020. From September 2013 until end of June 2020 she was the CEO of
pharma.be, the association of innovative biopharmaceutical companies in Belgium. From 2003 to 2013 she
was a 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 Aairs at the Belgian branch of
BT. She started her career as a lawyer, member of the Brussels Bar, in 1994.
She is a 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.
Joachim Sonne
Mr. Joachim Sonne has over 20 years of 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 the 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.
Claire Tillekaerts
From October 2006 until June 2022, Mrs. Claire Tillekaerts has been the general manager of Flanders
Investment & Trade, the government agency supporting Flemish companies in their eort to deploy business
internationally abroad and assisting foreign companies seeking to set up business or expand operations in
Flanders, the northernmost region of Belgium. From 1 May 2012 on, she was appointed CEO of FIT by the
government of Flanders until 30 June 2022. Claire Tillekaerts has been an independent barrister at the Ghent Court
of Law for 2 decades, along with a six-year academic teaching commission at the University of Ghent.
In 2001, she was commissioned to establish the law department at the Hogeschool Gent, in a bid to bring about the merger with other
centers of higher education, an assignment combined a.o. with that of advisor at the creation of the Ghent University Association and
with establishing international research fundings.
Claire Tillekaerts holds a Master of Law and a postgraduate degree in Management Studies.
She is member of the Board of Directors of imec, ORSI Academy and the Belgian National Orchestra and is President of the Board of
Directors of the Flanders International Film Festival (Ghent), President of the Belgian National Bank Council of Regency and member
of the Belgian National Bank Remuneration and Appointments Committee.
Proximus Group Integrated annual report 2023106
Agnès Touraine (member until 1 December 2023)
Mrs. Agnès Touraine is CEO of Act III Consultants, a management consulting firm dedicated to digital
transformation.
Previously, Mrs. Touraine served as the 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 the 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, GBL, SNCF and previously
Darty Plc as well as Neopost SA. She is also a member of non-profit organizations boards such as The French-American Foundation
and IDATE. Until July 2019 she was the Chairwoman of the Board of Directors of IFA (French Governance Institute).
Catherine Vandenborre
Mrs. Catherine Vandenborre is the Chief Financial Ocer at Elia Group. 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. Since 6 September 2023,
Catherine has taken on the role of ad interim CEO of Elia Group.
Catherine holds a degree in Business Economics from 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 Ocer (CEO) of imec since 1 July 2009. He spent his
entire career in the domain of chip technology and digital technologies, enabled by semiconductors. He joined
imec when it was founded in 1984, as part of the starting team.
Under his guidance imec has become the world-leading R&D center on nanoelectronics, an organization with a
sta of more than 5,500 people, operating with an annual budget of around €845 million (2023) and with oces in Belgium, the
Netherlands, the US, Japan and India. Imec is the world’s leading research center in the field of chip technology and digital applications
such as healthcare, automotive, artificial intelligence, cybersecurity and 5G/6G connectivity.
Currently, Mr. Van den hove is also a professor of Electrical Engineering at the University of Leuven. He is a member of the Board of
Proximus and a member of the Technology Board Committee of ASML. He is a member of the US Academy of Engineering.
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 nanoelectronics 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.
Proximus Group Integrated annual report 2023107
Members of the Leadership Squad
Guillaume Boutin
Mr. Guillaume Boutin has been Chief Executive Ocer since 1 December 2019 and presides over the
Leadership Squad 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 Leadership Squad as Chief Consumer Market Ocer 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 Ocer.
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.
Ben Appel
Mr. Ben Appel holds the position of Proximus’ Group Corporate Aairs Lead since mid-August 2023 and has
the following responsibilities: Legal, Regulatory, Public Aairs, Group Communications, Internal Audit and
Risk Management, Security Governance & Investigations, Sustainability and Data Protection.
He is a member of the Board of Directors of BICS, Telesign and MWingz.
After starting his career as a lawyer Ben joined the Vlaamse Media Maatschappij (later renamed Medialaan and DPG Media) in 2004.
Between 2011 and 2023, he was the Director of Public & Legal Aairs at DPG Media. In addition, he is a much sought-after speaker
as well as a guest lecturer on topics such as telco & media regulation, competition law, regulators, legal management, etc. Mr. Appel
holds a Master of Law by the University of Antwerp (1998) and a management course on innovation at the University of Antwerp.
Jim Casteele
Mr. Jim Casteele is the Consumer Market Lead of Proximus since 1 March 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 Proximus Group in various disciplines such as strategy & innovation, product management, partnerships and pricing.
He is a Board member of Proximus Luxembourg, Be-Mobile and the Chairman of the Boards of Proximus Media House and Mobile
Vikings.
Mr. Casteele holds a degree as a Civil Engineer in Electronics (University of Ghent) as well as a degree in General Management (Vlerick
Leuven Ghent Management School).
Proximus Group Integrated annual report 2023108
Anne-Sophie Lotgering
Mrs. Anne-Sophie Lotgering is Proximus’ Enterprise Market Lead since July 2020.
Previously, she was the Chief Marketing and Digital Ocer, 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 the General Manager for
Central & Eastern Europe at Microsoft Services.
She is a Board member of Proximus Luxembourg, Belgian Mobile ID, Conscia and Chairwoman of Proximus ICT. Mrs. Lotgering is a
graduate of the Sorbonne in Paris.
Antonietta Mastroianni
Mrs. Antonietta Mastroianni has been a distinguished member of the Proximus Leadership Squad since April
2021, serving as the Chief Digital & IT Ocer. Prior to her tenure at Proximus, she held pivotal roles across
various organizations: Group CIO and CDIO at the Danish TDC, Head of IT, Digital, and Business Partner at
Swiss Sunrise, and assumed several roles at Swisscom and H3G Italy.
An influential IT leader, Mrs. Mastroianni has two decades of international telecom experience, utilizing technology to spearhead
organizational growth, performance, and profitability. Her focus encompasses digital and agile transformation, exploring the impact
of leading-edge technology on business, technology, and product innovation, as well as IT and telco transformation. Her expertise
has been cultivated across multiple European countries, including Italy, Switzerland, Denmark, and Belgium, and she is also a council
member of ETIS.
Currently, Mrs. Mastroianni also holds the VC Finance seat on the Board of Directors of Gaia-X and is a Board Observer at Lumine
Group. She additionally serves as the Chairwoman of the Board of Directors at Proximus Ada.
Mrs. Mastroianni pursued her studies in Computer and Automation Engineering at the University of Siena and is a member of the Order
of Engineers of the province of Caserta. In 2022, she was honored with the Telco Women of the Year Award by NetworkX, and in 2021,
she was recognized as the Telco CxO of the Year by 5G World.
Mark Reid
Mr. Mark Reid is the Proximus’ Finance Lead since May 2021. Before joining Proximus, Mr. Reid served as
the Chief Financial Ocer of the Central European Region of Liberty Global, based in Zurich, for five 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, the UK & the US. He is a Board member of BICS, Telesign, MWingz and the Proximus Pension
Fund.
Mr. Reid holds an honors degree in Aeronautical Engineering from Glasgow University. He is a chartered accountant with certification
from the Chartered Institute of Management Accountants (CIMA).
Proximus Group Integrated annual report 2023109
Geert Standaert
Geert Standaert joined Proximus in 1994 and has held various key functions in the organization since. He
currently serves as the Network & Wholesale Lead, a position he has held since March 2012. As a member
of the Leadership Squad, he leads the Network Business Unit and oversees all Network & Telco Platform
activities, including Carrier & Wholesale operations.
In addition to his role within the company, Mr. Standaert is also a member of the Board of Directors for Fiberklaar, Unifiber, and OLV
Hospital Aalst. His educational background comprises a Master in Civil Engineering, which he obtained from the University of Ghent.
Renaud Tilmans
Mr. Renaud Tilmans is the Customer Operations Lead. He joined the Leadership Squad 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 dierent 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 Proximus Group, Mr. Tilmans is since 26 September 2019 Chairman of the Board of Directors of Proximus Luxembourg. He is
also a member of the Board of Fiberklaar.
Mr. Tilmans is a civil engineer, a degree obtained from the UCL (Louvain-la-Neuve) and holds degrees in IT and management.
Jan Van Acoleyen
Mr. Jan Van Acoleyen is the Human Capital Lead of Proximus. He joined Proximus in May 2016, after a
long career in various international HR management roles, mainly in high-tech companies such as Alcatel,
Agfa-Gevaert and Barco. As an HR leader, he acquired extensive experience in organizational and cultural
transformations.
Mr. Van Acoleyen has a Master in Educational Studies from the University of Leuven 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, independent member of the Board of Vlaeynatie, independent
member of the Board of BeCode, and member of the Board of Experience@Work. Within Proximus Group he is a Board member of
BICS, MWingz, Proximus Pension Fund and is the Chairman of the Remuneration Committee of BICS as well as Chairman of the Board
of Be-Mobile.
Proximus Group Integrated annual report 2023110
Chief Executive Ocers of BICS and Telesign
BICS
Matteo Gatta
Mr. Matteo Gatta was appointed as CEO of BICS in 2021 and has spearheaded the company’s transformation
from a traditional wholesale carrier to a global leader in digital communications, cloud communication
services, mobility and IoT. He aims to make BICS a true communications platform company and a reference
partner for mobile operators and enterprises, globally.
He has acquired over 20 years of experience in mobile and internet access services and software development, having held various
positions in Italy, the UK and Belgium.
Matteo has served as the CEO of telecom provider Scarlet, Director of Network Strategy, Innovation & Partnerships at Proximus, and
as a Board member of Proximus Luxembourg, previously Tango – Telindus, and Tessares.
He was also a founding director of the IoT technology alliance, LoRa Alliance. As the CEO of BICS, he is accelerating the company’s
growth and diversification strategy.
Telesign
Christophe Van de Weyer
Before joining Telesign, Christophe held senior leadership positions at Proximus Group, serving as Managing
Director of its ICT subsidiaries across Belgium, Luxembourg, and The Netherlands, as well as Chief Operating
Ocer of Proximus Enterprise Business Unit. He also led numerous strategic projects at the Proximus Group
level, including sovereign cloud strategy and roadmap, and strategic partnerships with hyperscalers.
Prior to Proximus, Christophe Van de Weyer spent almost 20 years at the global management consulting firm Bain & Company.
During his tenure, he served as a partner for nine years and held various leadership roles within Bain’s telecom and tech practice.
He completed the Stanford Executive Program at Stanford Graduate School of Business and holds a Master in Commercial
Engineering from University of Leuven.
Proximus Group Integrated annual report 2023111
Compliance & Ethical standards
Role of compliance at Proximus
The Group Compliance Oce is responsible for coordinating
compliance activities within Proximus Group, and aims to
promote, at all levels, ethical conduct in line with best-in-
class standards and business practices, respect of values and
compliance with laws, internal and external rules, and policies.
The Group Compliance Oce also prevents unlawful or
unethical behavior and ensures an appropriate response in case
such behavior occurs.
Our culture of ethics and compliance is led and driven by the
highest level of our company with a firm commitment to zero-
tolerance of corruption and bribery, and to other best business
practices.
Our compliance program is a key building block for our
Environmental, Social and Governance strategy.
The Proximus Code of Conduct was approved by the Proximus
Board of Directors. All employees are expected to 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 and other compliance policies can
be found in the Compliance section of our corporate website.
The top and middle management promotes the right culture
regarding compliance and ethics. Proximus takes a strong
stance against corruption, Code of conduct and privacy rules
violations and runs a zero-tolerance policy. Our employees
attend mandatory training on the application of the principles
of the Code of Conduct, Anti-corruption & Conflict of interest
and GDPR. In 2022, these e-learnings respectively achieved a
completion rate of 92%, 93% and 93%. An update is planned
for 2024.
We communicate our values and the behavior we expect
to external employees and business partners through our
Suppliers Code of Conduct.
Organization of compliance activities
The Group Compliance Oce is managed by the Audit, Risk and
Reputation Lead, who reports to the Chairperson of the Audit
and Compliance Committee (ACC).
The ACC Charter (available on our corporate website)
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’s policies and procedures.
The Compliance Program
The Proximus Code of Conduct reflects the fundamental
principles and rules that form the basis of our commitment to
being a responsible company and to contribute to the economic,
social and environmental development of our society. The
Code of Conduct applies to all Group employees. Proximus
employees follow mandatory training on the application of the
principles of the Code of Conduct and use it as a reference in
their daily work.
Proximus has also developed a set of Policies that formally
compile the behavioral guidelines that Proximus employees
are expected to follow as well as the existing restrictions on
key topics such as Insider Trading, Anti-Bribery and Corruption,
Economic Sanctions and Human Rights.
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. Proximus has a Public Aairs
policy defining how to engage with public authorities.
Proximus Group Integrated annual report 2023112
In a joint eort, Group Legal and the Compliance Oce have
prepared a Corporate Handbook for Proximus aliates,
detailing governance, and compliance principles. In addition,
aliates ensure appropriate compliance programs are
established to comply with their local and sectoral laws and
regulations.
Proximus has established reliable reporting channels for internal
and external stakeholders that guarantee the protection of
internal whistleblowers from sanctions and help ensure possible
misconduct is reported, thoroughly investigated, and clarified. The
whistleblowing cases handled in 2023 were thoroughly analyzed
by the Compliance Oce and the Investigations Department, and
appropriate action has been taken.
Regarding insider trading, Proximus uses a tool (InsiderLog) that
allows lists of insiders to be dealt with automatically.
To ensure compliance with the constantly evolving sanctions
and embargoes the Proximus Compliance Oce has
implemented a new tool to screen third parties for sanctions
(Dow Jones – Risk Center).
Proximus has asked its suppliers and business partners to
subscribe to a Code of Conduct. This code is based on the Ten
Principles of the UN Global Compact. It covers compliance with
the law in general and our anti-bribery/corruption policies,
including provisions against anti-competitive practices and
conflicts of interest.
Controls are carried out by the Group Compliance Oce and/or
by policies owners to verify their correct application. The Group
Compliance Oce supports policy owners with the creation,
review and implementation of their compliance control plan.
Non-compliant business behavior is addressed immediately
and reported to the Audit and Compliance Committee (joint
reporting of Security Governance & Investigations, Corporate
Protection & Prevention and the Group Compliance Oce). Red
flags identified during our third-party business relationships due
diligence processes are escalated to the right stakeholders to
ensure they are addressed in a timely and appropriate manner.
Negative results and related actions are also reported to the
Audit & Compliance Committee.
Incidents and policy improvements are integrated in an action
plan which is part of the Compliance oversight.
KPIs
Results
2022
Results
2023
Number of cases investigated by the
Investigations Department for violation
of policies/Code of Conduct
38 51
*
Number of whistleblowing cases 8 10
Number of dismissals resulting from
investigations
6 8
Number of warnings resulting from
investigations
16 18
* The increase is notably linked to new cases of internal fraud detected and to an
audit carried out on the activation of Proximus TV packages.
Achievements in 2023
• Adoption of integrated tool for policy management used by all policy owners
• Implementation of second line controls with policies owners
• Update of the whistleblowing policy to comply with EU and Belgian regulation
• Implementation of a new channel for whistleblowing, with a tool and external filtering
• Adoption of the corporate handbook by new aliates
• Compliance management successfully audited for ISAE3000 and ISO9001/ISO27001
• Development of a new and more comprehensive Suppliers Code of Conduct
• Ongoing communication campaigns via the intranet for our employees, on topics related to
compliance, such as conduct, anti-bribery and human rights
Proximus Group Integrated annual report 2023113
Private customer data
We apply strict rules and policies within our company, complying
with the GDPR and e-privacy directives.
Proximus adapted its Privacy Ambassador network to the
new ‘Agile ways of working’ organization across dierent
business units to ensure the highest level of awareness and
accountability for privacy compliance. These Ambassadors
follow a comprehensive training program about privacy and
data protection.
We are constantly improving 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.
Substantial resources are available to support the Legal Privacy
team and the Data Protection Ocer in the performance of data
protection reviews. The Legal Privacy Team and Data Protection
Ocer share valuable tools and content about privacy
regulations, increasing awareness across the company.
In 2022, a new mandatory e-learning focusing on putting GDPR
into practice was introduced to all employees of Proximus
Group. It achieved a completion rate of 93%. The e-learning
modules remain available within the learning library accessible
for each employee.
Proximus oers individuals the possibility to launch their data
subject requests via email, letter and a dedicated web form. Our
customers can continue to indicate their privacy preferences
within the privacy settings of the MyProximus app and website.
By end of 2023, Proximus had handled approximately 13,300
data subject requests.
For certain processing activities, Proximus collects prior consent
from its customers before processing their data for other
purposes such as targeted advertisement. Proximus processes
its customers’ personal data according to the opt-in method
after obtaining their prior consent. Here is the evolution of the
numbers of consents recorded by Proximus for some of these
purposes in 2023:
• Decrease in consents for targeted advertising on TV: approx.
15,000;
• Decrease in consents for use of web trac data for marketing
purposes: approx. 63,000.
In addition, in 2023, Proximus registered a few hundred general
opt-outs for processing of personal data for direct marketing.
Human Rights
Respecting human rights is a fundamental value for Proximus.
People are entitled to be treated with respect, care and dignity.
Our Code of Conduct, policies and procedures 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.
Proximus is committed to creating working conditions which
promote fair employment practices and where 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.
Sustainable supply chain
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 new and more
comprehensive Supplier Code of Conduct, which is in line with
national and international legislation and follows the standard
set by the Responsible Business Alliance (RBA).
Proximus is an active member of the JAC (Joint Alliance for CSR)
initiative. The JAC is a global alliance of telecom operators, who
monitor, assess, share and develop sustainability practices for
their suppliers and tiers through risk audits, assessments and
Proximus Group Integrated annual report 2023114
surveys. Currently, JAC, encompasses a total of 27 telecom
operators, together representing more than 50% of worldwide
telecom turnover. Audits are performed by recognized third
parties on the premises of suppliers’ and supplier tiers’
manufacturing centers in the Information Communication
Technology (ICT) industry.
We integrate ESG criteria into our supplier selection process
and in our contracts. We monitor our key suppliers on these
ESG criteria by obliging them to undergo a validated evaluation
by third-party assessment organizations. We accomplish this
by inviting them to deliver an EcoVadis self-assessment and by
publishing their emission reduction roadmap publicly.
Within the JAC, an on-going human rights due diligence exercise
is undertaken with major supply chain partners to monitor
potential occurrence and/or impact of non-respect of UN
Guiding Principles on Business and Human Rights. We recognize
our corporate responsibility to respect these principles. We
commit to “know and show” to mitigate potential human rights
impacts beyond our direct control and influence the behavior of
suppliers and their stakeholders.
Proximus Group Integrated annual report 2023115
Remuneration report
The remuneration policies of the Directors and of the Leadership
Squad 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.
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
Leadership Squad. A slightly adapted version of the Proximus
Remuneration Policy has been approved during the General
Meeting of Shareholders of Proximus on 19 April 2023 and is
available on the corporate website of Proximus (Remuneration
policy | Proximus Group).
Unless otherwise stated, 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 2023 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 Ocer (“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 with the exception of his mandate as Chairman of
the Board of Directors of TeleSign US, as per American market
practices.
Chairman of
the Board of
Directors
Non-executive
Director
Annual fixed compensation € 50,000 € 25,000
Attendance fee to meetings
Board of Directors € 10,000 € 5,000
Committee as Chairman of the
Committee
€ 5,000 € 5,000
Committee as member of the
Committee
€ 2,500 € 2,500
Allowance for communication costs € 4,000 € 2,000
The non-executive Directors are thus 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.
Proximus Group Integrated annual report 2023116
• 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, the Pension Fund and Proximus ART. He is
member of the Board of ConnectImmo, our immo-aliate. He
does not receive any fees for these mandates.
Remuneration granted to the members of
the Board of Directors in 2023
The total amount of the remunerations granted in 2023 to all
the members of the Board of Directors, Chairman included, is
amounting to gross € 1,491,432.
Given the strong evolution of the international pillar of
Proximus, the Board of Directors decided at its meeting of
19 December 2023 to create an International Committee as
of 2024 with the purpose to ensure Board oversight on all
international activities of the Group.
The overview of the individual gross amounts paid out to the
Directors in 2023, based on their activities and attendance to
Board and Committee meetings, is presented in the table on the
following page.
Board of Directors
Meetings Attendance rate
14 94%
Audit & Compliance Committee
Meetings Attendance rate
6 97%
Transformation & Innovation Committee
Meetings Attendance rate
2 100%
Nomination & Remuneration Committee
Meetings Attendance rate
5 96%
Proximus Group Integrated annual report 2023117
Remuneration granted to the members of the Board of Directors in 2023
Directors Annual fix compensation Attendance fees
1
Allowance
2
TOTAL 2023
Cécile Coune
3
€ 17,603 € 5 7,50 0 € 1,403 € 76,505
Stefaan De Clerck € 50,000 € 190,000 € 7,163 € 247,163
Guillaume Boutin - - - -
Karel De Gucht € 25,000 € 7 7, 500 € 2,000 € 104,500
Béatrice de Mahieu € 25,000 € 75,000 € 2,000 € 102,000
Pierre Demuelenaere
4
€ 7,4 6 6 € 22,500 € 592 € 30,558
Martin De Prycker € 25,000 € 8 7,50 0 € 2,000 € 114,500
Audrey Hanard € 25,000 € 55,000 € 2,000 € 82,000
Ibrahim Ouassari € 25,000 € 75,000 € 2,000 € 102,000
Catherine Rutten € 25,000 € 85,000 € 2,000 € 112,000
Joachim Sonne € 25,000 € 85,000 € 2,000 € 112,000
Claire Tillekaerts € 25,000 € 82,500 € 2,000 € 109,500
Agnès Touraine
5
€ 22,877 € 55,000 € 1,830 € 79,707
Catherine Vandenborre € 25,000 € 95,000 € 2,000 € 122,000
Luc Van den hove € 25,000 € 70,000 € 2,000 € 97,000
TOTAL € 347,945 € 1,112,500 € 30,987 € 1,491,432
1 Extraordinary remunerated Board meetings on 9 February, 13 March, 27 June, 13 July, 16 July and 8 December 2023
2 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 3,163 € in 2023.
3 Appointed on 19 April 2023
4 Mandate ended on 19 April 2023
5 Resigned on 1 December 2023
Remuneration granted to the members of the Board of Directors over 5 years
Total 2019 Total 2020 Total 2021 Total 2022 TOTAL 2023
€ 1,243,509 € 1,231,116 € € 1,192,366 € 987,72 3 € 1,491,432
year-over-year variance -1.0% -3.1% -17. 2% +51.0%
The table above 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.
Proximus Group Integrated annual report 2023118
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. We indeed consider
the promotion of our Think possible culture as key to realize
our strategy. Think possible is first and foremost a mindset
that makes us see opportunities everywhere. It is also a set
of principles and behaviours that guide us in finding the best
solutions for our customers.
It is therefore critical to have a competitive and market attractive
Global Rewards Program for both the Leadership Squad
members and all other members of the Top Management, as
well as for the entire workforce. The competitiveness of our
Global Rewards Program is regularly assessed by using the
services of a human capital and employee benefits consulting
company.
Our company has innovative, competitive and market attractive
remuneration policies and practices that are regularly assessed
and updated through close cooperation with universities, salary
benchmark reports from specialized companies and external
human resources fora. The practices used for the remuneration
of our employees – wages and working conditions included –
are based on the principles of non-discrimination and fairness
and 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 dierences, in its dynamics and
structure, compared to the private sector. These dierences
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 sta members and has introduced new elements that
have made it possible to harmonize policies between statutory
and contractual sta 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 to meet our commitment to
participate in the creation of an inclusive, safe, sustainable and
prosperous digital Belgium;
• To oer a fair and equitable remuneration to our sta (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 our culture “Think possible”;
• 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, oering them to live intuitive and meaningful
experiences, to create a place of work where these talents can
be the best version of themselves and to get them ready to
win our company’s challenges of today and tomorrow;
• 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.
hospitalisation and homeworking facilities), social assistance
and well-being initiatives oered to all employees, Leadership
Squad members included.
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.
Proximus Group Integrated annual report 2023119
Remuneration of the members of the Leadership Squad
Decision-making process
The remuneration program of the Leadership Squad 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, critical skills and market practices.
Competitiveness of the remuneration of the
Leadership Squad
The remuneration policies and practices applicable to the
Leadership Squad 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 Leadership Squad, the company did decide
in the past not to comply with this provision taking into account
its specific shareholdership, having the Belgian State as majority
shareholder. Nevertheless, in view of our Group’s increasing
internationalization, our company is considering introducing
share-based compensation in the future, which would also
enable a better compliance with the Belgian Corporate
Governance Code.
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 Leadership Squad. 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 Leadership Squad 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 and by our company’s
commitment to contribute to an inclusive, safe, sustainable and
prosperous digital Belgium. 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 Leadership Squad against both the BEL
20 companies (financial sector excluded) and a set of peer
companies in the European Telecommunications and ICT sector.
This analysis – carried out by specialized and independent
external consultants – aims to ensure that the global
remuneration of each member of the Leadership Squad 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. As a company, we ambition to
position ourselves on the market median, which is our reference.
To distinguish ourselves from other employers, our company
seeks to dierentiate in the total package oered, 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 Leadership Squad included,
with regard to the choice of the pay-out means of their variable
compensation.
Unless otherwise stated, all the amounts mentioned in this
report are gross amounts before employer’s social contribution.
Proximus Group Integrated annual report 2023120
Remuneration structure of the Leadership Squad
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.
The remuneration of the members of the Leadership Squad is
built upon the following components:
Fixed remuneration
Short-term variable remuneration
Long-term variable remuneration
Group insurance premiums
Other benefits
One-o and exceptional bonuses
Current variable remuneration policy is aligned for all
Leadership Squad members, CEO included. The target
percentage of both the short-term and the long-term variable
remuneration amounts to 40% of the fixed remuneration.
The CEO and the other members of the Leadership Squad do
not receive any remuneration in the form of Proximus shares
or Proximus stock options. But in view of our Group’s increasing
internationalization, our company is considering introducing
share-based compensation in the future, which would also
enable a better compliance with the Belgian Corporate
Governance Code.
Fixed remuneration
The fixed remuneration consists of a fixed salary earned by the
CEO and by the other members of the Leadership Squad 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
Leadership Squad 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 Leadership Squad 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
Short-term variable
Long-term variable
Group insurance premiums
Other benefits
Relative importance of the various components of the on-target remuneration before employer’s social contribution (end 2023)
CEO
Other Leadership
Squad members
48% 19% 19% 7% 7%
46% 19% 19% 11% 5%
Proximus Group Integrated annual report 2023121
Short-term variable remuneration
Purpose and components of the short-term variable
remuneration
The members of the Leadership Squad, 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 Leadership Squad members, CEO
included, and amounts to 40% of the fixed remuneration.
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 eorts 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
Leadership Squad, on top of the individual performance (for
40%), and this in line with our company values.
Fixed remuneration in k€ before employer’s social contribution over 5 years
As for the CEO, the amounts reported for most of 2019 (€ 385 k) were paid to the former CEO, Mrs. Leroy, while one month
in 2019 (€ 44 k) and the amounts reported since 2020 were paid to the current CEO, Mr. Boutin. The increase from 2022 to
2023 is due to the five indexes which had to be applied in 2022 and the two indexes in 2023. Indeed, Proximus follows the
public sector indexation system. In practice, this means that as soon as the pivot index is exceeded, salaries are automatically
increased by 2% two months after the index is exceeded.
As for the other members of the Leadership Squad, the increase from 2022 to 2023 is also mainly due to the five indexes
of 2022 and the two indexes in 2023 but is also resulting from the changes in the composition of the Leadership Squad.
Following the retirement of Mr. Dirk Lybaert in September 2023 (resulting in an early payment of vacation pay), a new member
has joined the Leadership Squad in August 2023, Mr. Ben Appel.
Since 2022, fees are paid by TeleSign US to Guillaume Boutin for his mandate as Chairman of the Board of Directors of
TeleSign US, amounting to 75,000 USD, as is common practice in the United States. These fees are not included in the fixed
remuneration reported in this document, which focuses on the compensation items related to Proximus S.A.
The roles acted ad interim as CEO or as other member of the Leadership Squad are not taken into consideration for current report.
2019 2020 2021 2022 2023
CEO
Other Leadership Squad members
429
507
513
549
587
2,632
2,166
2,535
3,056
3,341
Proximus Group Integrated annual report 2023122
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). They focus on our domestic
market (Belgium, The Netherlands and Luxemburg).
The amounts of short-term variable remuneration mentioned in
the current report are the ones paid out to the Leadership Squad
members in the course of 2023 and are thus related to the
results of the Group KPIs of the 2022 performance year.
The Remuneration Committee recommended the following
set of Strategic Goals to the Board of Directors for the 2022
performance year:
Built the best
Gigabit Network
for Belgium
Grow Profitably
through partners &
ecosysyems
Operate like a
‘Digital Native’
company
Act for Green
and Digital
Society
2022
Proximus Strategic Goals
30% 25%
25% 20%
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 reflected in our STI KPIs. The
chosen KPIs show our company’s commitment to contribute to
a more green, circular and safe society. In the 2022 framework,
dedicated metrics on CO
2
emissions reduction have been added.
The weight of the ESG-related KPIs in the overall STI framework
has increased from 15% in 2021 to 20% in 2022, in line with the
increased importance of climate change and digital inclusion on
the societal agenda.
A detailed definition for each of the STI KPIs can be found in the
table on the following page.
Proximus Group Integrated annual report 2023123
Strategic Goal 2022 KPI nature STI KPI
2022
Weight KPI Definition
Sustainable Growth
Financial EBITDA 15%
Underlying EBITDA generated by the business domestic
operations.
Mixed
Net Acquisition
Value
10%
Annualized value generated/destroyed by gains and losses
of customers in the mass- and professional markets.
Financial Indirect OpEx 5%
Indirect OpEx spent in the observed year. Defined as the
Total domestic OpEx minus the Direct domestic OpEx.
Digital company
Non-Financial NPS 5%
Net Promoter Score, computed as the weighted average of
NPS results per customer segment.
Non-Financial
Customer
Excellence
10%
This KPI consists of 3 sub-KPIs. They only relate to the
Proximus brand, excluding Scarlet and Mobile Vikings.
1. Customer Eort Score Fiber (incl. migrations from
copper to fiber and new fiber customers).
2. Customer Eort Score Technical Assistance.
3. Contact Centre Volumes (calls, mails, chats): the
increasing volume of digital-first interactions is
expected to deflate Contact Centre Volumes and to
have a positive impact on customer experience.
Non-Financial
Digital
Company
10%
This KPI consists of 4 sub-KPIs:
1. E-share of Sales: digital penetration of our sales
volumes.
2. MyProximus Usage: monthly number of users of the
MyProximus App.
3. Pickx Usage: monthly number of Proximus Pickx users
(App + Web).
4. Major Incidents: number of major IT/Telco incidents
occurred in Proximus networks.
Gigabit network
Non-Financial Fiber Construction 10%
Deployment of our new Fiber network: incremental
number of Fiber Homes Passed realised in the observed
year. Including deployment from Proximus itself and its
Joint Ventures partners.
Non-Financial Fiber Filling Rate 10%
Ratio between the Park of Activate Fiber Homes and the
Park of Homes Passed that are eligible for Fiber Activation.
Non-Financial 5G Deployment 5%
Growth of new vendor Nokia 5G macro sites park realised
in the observed year.
Green & Digital Society
Non-Financial Green 5%
This KPI consists of 2 sub-KPIs:
1. CO
2
Emissions: Direct and Up- & Downstream CO
2
emissions related to Proximus’ business activities.
2. Returned devices: number of mobile and fixed devices
collected for refurbishment or recycling.
Non-Financial Digital Society 5%
This KPI consists of 2 sub-KPIs:
1. Cyber Security Resilience: a measure of our business
resilience against cyber security threats/attacks.
2. Fiber Connectable High School Sites: Percentage of
High School sites connected or connectable within 12
months to the Proximus fiber network in Belgium.
Non-Financial Employees 10%
Measure of our employees’ engagement, agility,
empowerment, accountability and strategic alignment with
respect to our company.
Total 100%
Proximus Group Integrated annual report 2023124
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 have
been 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 0% in case of
underperformance versus target at year end.
The EBITDA and the Indirect OpEx 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 Leadership Squad and are discussed at the 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 Leadership Squad.
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 Leadership Squad 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 Leadership
Squad 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.
ESG-related metrics are part of the individual annual
targets, such as climate change KPIs (aiming to reduce our
environmental footprint, that of our customers and that of our
suppliers), a positive influence on (digital) society, governance
KPIs or parameters with a social responsibility dimension.
Our company wants to encourage permanent awareness and
climate-friendly behaviour and management.
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 dierentiation between the
members of the Leadership Squad 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 eectively paid to the CEO
and to the other members of the Leadership Squad 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 Leadership Squad 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.
The Board of Directors ensures that the amount allocated
for individual performance is consistent with the company’s
performance. However, since 2023 (performance year 2022),
there is no longer an overall ceiling directly linked to the
Group KPI results for the total individual short-term variable
remuneration allocated to the Leadership Squad members
Proximus Group Integrated annual report 2023125
others than the CEO. Allocations are made individually on the
basis of actual performance against individual targets, which is
more in line with market practice for this level of responsibility.
2022 performance year Objectives of the Short-term variable remuneration weight % weight
CEO and other members of the
Leadership Squad
Group KPI Sustainable Growth 18% 30%
Digital company 15% 25%
Gigabit network 15% 25%
Green & Digital Society 12% 20%
Personal objectives 40%
Total target 100% 100%
Short-term variable remuneration in k€ before employer’s social contribution over 5 years
In 2023, a short-term variable remuneration has been allocated to the CEO for a total amount of gross € 301,633. The
increase noticed in 2023 is mainly due to the indexation applied on the fixed remuneration in 2022. The amounts reported
for 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 eectively allocated in 2023 to the other members of the Leadership Squad
(2022 performance year) amounts to gross € 1,756,326. As for the CEO, the increase noticed in 2023 is mainly due to
the indexation applied on the fixed remuneration in 2022 but is also resulting from the changes in the composition of
the Leadership Squad in 2021 (the short-term variable remuneration eectively paid in 2022 was not related to a full
performance year for two members) and from the fact that there is no longer an overall ceiling directly linked to the Group
KPI results for the total individual short-term variable remuneration (as explained above). The other 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 Leadership
Squad, including possible hiring bonuses, and from (iii) the exceptional bonus paid in 2020 to our former Chief Financial
Ocer, 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 Leadership Squad (before his nomination as CEO).
2019 2020 2021 2022 2023
CEO
Other Leadership Squad members
1,756
1,403
1,124
1,807
1,071
302
276
266
459
216
Proximus Group Integrated annual report 2023126
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 Leadership Squad included,
with regard to the choice of pay out means of their variable
remuneration. 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.
Long-term variable remuneration
Purpose and components of the long-term variable
remuneration
Our company wants to encourage its Leadership Squad, as
well as the other members of its top management, to generate
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.
To achieve this ambition, the remuneration policy of our
Leadership Squad, 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 Leadership Squad, 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 Leadership Squad 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 has been
reviewed in 2019, 2022 and 2023.
Long-term Performance Value Plan
The long-term incentive plan oered 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.
Leadership Squad 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
Leadership Squad.
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.
Proximus Group Integrated annual report 2023127
We keep the future in mind
In order to reflect the high ESG (Environmental, Social and
Governance) ambitions of our Group in our LTI KPIs as well, a
fourth KPI, specifically related to ESG matters, has been added
to the original ones since 2022. This way, encouraging ESG
innovation, we want to increase the focus on our eorts to
evolve towards a more sustainable society. This ESG KPI will be
reviewed over the years in line with our ESG concerns and long-
term commitment to contribute to the necessary changes.
Therefore, in 2023, 4 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;
• 2 non-financial KPIs: the Reputation index of Proximus and an
ESG (Environmental, Social and Governance) KPI.
2023
Long-term variable remuneration
Key Performance Indicators
Total shareholder
return
25%
Proximus’
reputation
25%
Group
free cash flow
25%
ESG KPI
25%
The KPIs have been given dierent 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. The weight of each KPI has been reviewed with the
introduction of the ESG KPI as 4
th
KPI. 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
Total shareholder
return
25%
1
This criterium 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 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.
Group free cash flow
25%
1
The Group Free Cash Flow KPI will measure Proximus’ healthy financial evolution over the years. Group
Free Cash Flow targets are defined by Proximus’ Board of Directors in line with the 3-year plan. This KPI is
assessed annually against the objectives set and the annual result is expressed as a percentage between 0
and 175.
Reputation index
25%
2
The Reputation Index is a holistic, measurable and actionable KPI enabling Proximus to fully integrate the
concept of reputation into its long-term strategy. It measures the perception about “the company behind
the brand” among a representative sample of the general public, (co-) responsible for telecom decisions in
their household.
A third-party company reports the annual results which are expressed as a percentage between 0 and 175.
ESG KPI
25% This ESG KPI reflects the high ambitions of Proximus to evolve towards a more sustainable society. The
KPI currently covers the companywide CO
2
emissions reduction as well as a gender balance metric, but
additional ESG metrics could be considered to enrich the ESG KPI, in line with Proximus societal ambitions,
strategy and sustainability on the long term.
1 40% for the Tranche 2020 and 2021, 25% as from the Tranche 2022
2 20% for the Tranche 2020 and 2021, 25% as from the Tranche 2022
Proximus Group Integrated annual report 2023128
For the Reputation Index, the ESG KPI and the Group Free Cash
Flow, 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 on the long-term.
Each year, an annual result is calculated on the basis of the
weighted average of the 4 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
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.
The CEO and the other members of the Leadership Squad did
not receive any Proximus shares nor Proximus stock options
over the last 5 years. But in view of our Group’s increasing
internationalization, our company is considering introducing
share-based compensation in the future, which would also
enable a better compliance with the Belgian Corporate
Governance Code.
Long-term variable remuneration granted in k€ before employer’s 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. Since
2021, the amount allocated refers to full-year performances. The former CEO, Mrs. Leroy, was not eligible to long-term
variable remuneration. In 2023, a long-term variable remuneration has been granted to the CEO for a total amount of gross €
229,903, which will vest in May 2026, therefore cannot be paid before May 2026.
The total long-term variable remuneration eectively granted to the members of the Leadership Squad others than the CEO
was amounting to gross € 1,154,000 in 2022 and to gross € 1,282,784 in 2023.
The year-to-year variations for the CEO and the other members of the Leadership Squad are mainly resulting from the
indexation applied on the fixed remuneration in 2022.
2019 2020 2021 2022 2023
CEO
Other Leadership Squad members
916
1,098
1,154
1,283
1,055
19
204
205
230
0
Proximus Group Integrated annual report 2023129
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 Leadership Squad participate in a
complementary pension scheme entirely financed by Proximus
which consists of a “Defined Benefit Plan” oering pension
rights 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 Leadership Squad
= 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 = the legal pension ceiling
Other group insurances
The CEO and the other members of the Leadership Squad
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 Leadership Squad 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 Leadership Squad 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 in 2023 is estimated to 15% of his fixed
remuneration.
As for the other members of the Leadership Squad, the average
premiums paid by our company for their group insurances in
2023 amounted to about 25% of their fixed remuneration if we
do not consider the exceptional payment which had to be made
in September 2023 upon retirement of Mr. Dirk Lybaert (cfr the
note hereafter mentioned).
Other benefits
Our Group wants to stimulate its executives by oering 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 Leadership Squad 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 oer of green alternatives to car use for our
employees, members of the Leadership Squad 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. For 2023, this ratio is estimated to 15% for the CEO
and to 19% for the other members of the Leadership Squad.
Proximus Group Integrated annual report 2023130
Other benefits in k€ before employer’s taxes over 5 years
The amounts reported for the CEO for 2019 were paid to the former CEO, Mrs. Leroy. The amounts reported since 2020
were paid to the current CEO, Mr. Boutin. The increase since 2020 is mainly due to specific advantages related to the foreign
executive status of current CEO.
The significant increase in other benefits for members of the Leadership Squad in 2021 was mainly due to specific advantages
related to the foreign executive status of several members, including the specific costs related to the recruitment of two
members from abroad, like the relocation costs.
2019 2020 2021 2022 2023
CEO
Other Leadership Squad members
338
330
443
136
146
88
89
86
55
18
Group insurance premiums in k€ before employer’s taxes over 5 years
The amounts reported for 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 Leadership Squad are mainly resulting from the changes in the
composition of the Leadership Squad. The increase noticed in 2023 is mainly due to a very specific situation: even though
Mr Lybaert retired in September 2023 after a full career, he retired before the age stipulated in the general contract signed
with our insurer, implying an additional payment (€ 266 k) by the company in his complementary pension plan. The increase
noticed in 2023 is also the consequence of the multiple indexes of 2022 and 2023.
2019 2020 2021 2022 2023
CEO
Other Leadership Squad members
1,101
744
657
468
529
85
77
69
79
157
Proximus Group Integrated annual report 2023131
One-o and exceptional bonuses
The Board of Directors may, in exceptional circumstances
and upon recommendations made by the Nomination &
Remuneration Committee, grant one-o bonuses to one or
more members of the Leadership Squad.
This may be necessary, for example, in the case of additional
responsibilities exceptionally assumed by a member of the
Leadership Squad when a Leadership Squad position is vacant,
or in the event that a sign-on or a special retention bonus would
be necessary due to market circumstances.
At Leadership Squad level, oering a hiring bonus is common
practice in order to attract talented people and convince them
to join us. In the “war for talent”, hiring bonuses are increasingly
common on the market, and are becoming part of employment
contracts. In addition to their attraction function, exceptional
one-shot variable remuneration is also often granted as
financial compensation for the potential loss of variable
remuneration (short- and long-term) when the related people
resign from their current job.
If granted, such bonuses are reported together with the
variable remuneration and are included in the total variable
remuneration allocated to the other Leadership Squad
members at the time these possible exceptional bonuses are
earned. Consequently, if contractual promises for the future
exist at the time of publication of this report, they will only be
taken into account at the time these will be earned.
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 Leadership Squad, the
employment contracts of those members appointed as
from 1 January 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 Leadership Squad 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.
Proximus Group Integrated annual report 2023132
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 Leadership
Squad members
Our company and the other members of the Leadership Squad
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 Leadership Squad 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 Leadership Squad
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).
General overview
The charts below reflect the remuneration allocated to the
members of the Leadership Squad 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).
All amounts reported for 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-
CEO 2019 2020 2021 2022 2023
Fixed remuneration € 429,498 52% € 5 07,492 45% € 512,537 45% € 549,015 46% € 58 7,2 26 45%
Short-term variable
remuneration
€ 215,661 26% € 458,833 41% € 265,614 23% € 276,019 23% € 301,633 23%
Long-term variable remuneration € 0 0% € 18,833 2% € 203,996 18% € 208,073 17% € 229,903 18%
Group insurance premiums € 1 57,43 3 19% € 78,550 7% € 69,007 6% € 76,962 6% € 85,470 7%
Other benefits € 1 7,61 9 2% € 55,083 5% € 86,402 8% € 88,660 7% € 87,8 23 7%
SUBTOTAL (excl. employer’s
social contribution)
€ 820,211 € 1,118,791 € 1,137,556 € 1,198,729 € 1,292,055
Termination benefits € 0 0% € 0 0% € 0 0% € 0 0% € 0 0%
TOTAL (excl. employer’s social
contribution)
€ 820,211 € 1,118,791 € 1,137,556 € 1,198,729 € 1,292,055
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). Since 2021, he is entitled to 12 months short- and long-term variable remuneration
(in 2023, respectively € 301,633 gross STI and € 229,903 gross LTI).
Proximus Group Integrated annual report 2023133
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 a short-term
variable remuneration target 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. The
increase in fixed remuneration in 2022 and 2023 is due to the
multiple indexes which had to be applied in 2022 (five) and in
2023 (two). The reported fixed remuneration of 2023 does not
include the fees paid by TeleSign US for his Chairman mandate
(amounting to 75,000 USD).
All these amounts are gross amounts before employer’s social
contribution.
The increase of fixed remuneration in 2022 and 2023 is mainly
due to the multiple indexes which had to be applied in 2022
(five) and in 2023 (two) but is also resulting from the changes
in the composition of the Leadership Squad. Following the
retirement of Mr. Dirk Lybaert in September 2023 (resulting in
an early payment of vacation pay), a new member has joined the
Leadership Squad in August 2023, Mr. Ben Appel. The amount
reported in 2023 for the Group insurance premiums includes
the additional payment made by our company upon retirement
of Mr. Lybaert due to his specific situation. The increase since
2021 of the Other benefits is mainly due to specific advantages
45% 23% 18% 7% 7%
43% 22% 16% 14% 4%
Fixed remuneration
Short-term variable
Long-term variable
Group insurance premiums
Other benefits
Relative importance of the various components of the remuneration eectively allocated in 2023 before employer’s social contribution
CEO
Other
Leadership
Squad members
Other members of the
Leadership Squad
2019 2020 2021 2022 2023
Fixed remuneration € 2,632,038 48% € 2,166,045 39% € 2,534,773 43% € 3,055,941 46% € 3,340,675 43%
Short-term variable remuneration € 1,070,733 20% € 1 ,807, 39 0 33% € 1,123,605 19% € 1,402,844 21% € 1,756,326 22%
Long-Term variable remuneration € 1,055,000 19% € 916,375 17% € 1 ,0 97, 703 19% € 1,154,000 17% € 1,282,784 16%
Group insurance premiums € 529,369 10% € 468,275 9% € 6 57,3 19 11% € 743,750 11% € 1,101,269 14%
Other benefits € 145,588 3% € 135,648 2% € 442,935 8% € 329,817 5% € 33 7,82 8 4%
SUBTOTAL
(excl. employer’s social
contribution)
€ 5,432,728 € 5,493,733 € 5,856,335 € 6,686,352 € 7,818,882
Termination benefits € 0 0% € 0 0% € 0 0% € 0 0% € 0 0%
TOTAL (excl. employer’s social
contribution)
€ 5,432,728 € 5,493,733 € 5,856,335 € 6,686,352 € 7,818,882
Remuneration overview of the other members of the Leadership Squad
Please note that an additional role has been created at Leadership Squad level in 2021 in order to support our digital
transformation and ambitions.
Proximus Group Integrated annual report 2023134
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
Leadership Squad are not taken into consideration for current
report. All these amounts are gross amounts before employer’s
social contribution.
Wages and working conditions:
internal comparisons, and company
performance
The global working conditions of our senior management, CEO
and members of our Leadership Squad included, are highly
similar to the working conditions of all other employees.
Besides being limited, the few dierences in benefits that exist
between top management and Leadership Squad 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 Leadership Squad as to oer
market conform conditions. The dierences in benefits between
the members of the Leadership Squad and the rest of the
employees are generally more related to the status of foreign
executive of several members of the Leadership Squad 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.
1 Defined-duration contracts have been excluded from the scope due to the diculty in accurately calculating the annual remuneration package for such
contracts. It is however important to note that these contracts adhere to the same remuneration policy as the undefined-duration contracts, represent a
minority among our workforce and are not in the lowest pay range, what ensures consistency and integrity in the ratio calculation.
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 SA) on a full-
time basis is equal to 29.1 in 2023. This ratio is measured by
comparing the highest (the CEO one) and lowest remuneration,
1
taking into account the total target remuneration package
(including base pay, premiums, variable pay, group insurances
and benefits), excluding employer’s social contributions. Taking
the fees paid by TeleSign US to the CEO for his Chairman
mandate into consideration would bring this ratio to 30.7.
Considering the scope of our organization, where everyone
has a role to play but with very dierent levels of strategic
responsibility, such a ratio is consistent and below market
practices.
The table on the following page 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 Leadership Squad) between 2019 and
2023.
Proximus Group Integrated annual report 2023135
The year-over-year evolution (2023 vs. 2022) of the CEO total
target remuneration and the average remuneration of the
company’s employees is +4%. This increase is due to the two
indexes which had to be applied in 2023.
The Pay ratio portraying the gap between the CEO’s
remuneration and the average remuneration of the company’s
employees is equal to 13 in 2023. This ratio is measured by
comparing the total target remuneration package (including
base pay, premiums, variable pay, group insurances, benefits
and employer’s social contributions) of the CEO with the average
remuneration of the company’s employees. Taking the fees
paid by TeleSign US to the CEO for his Chairman mandate into
consideration would bring this ratio to 13.7.
The Pay ratio portraying the gap between the CEO’s
remuneration and the median remuneration
1
of the company’s
employees is equal to 14.9 in 2023. This ratio is measured
by comparing the CEO and median remuneration, taking into
account the total target remuneration package (including base
pay, premiums, variable pay, group insurances and benefits),
excluding employer’s social contributions. Taking the fees
paid by TeleSign US to the CEO for his Chairman mandate into
consideration would bring this ratio to 15.7.
1 Defined-duration contracts have been excluded from the scope due to the diculty in accurately calculating the annual remuneration package for such
contracts. It is however important to note that these contracts adhere to the same remuneration policy as the undefined-duration contracts, represent a
minority among our workforce and are not in the lowest pay range, what ensures consistency and integrity in the ratio calculation.
Evolution of the pay ratios over the last 3 years
2021 2022 2023
Pay ratio CEO vs. lowest
remuneration
27.3 2 7.9 29.1
Pay ratio CEO vs. average
remuneration
12.6 12.9 13.0
Pay ratio CEO vs. median
remuneration
16.0 14.9 14.9
Company performance
The table below shows the company’s performance between
2019 and 2023.
Company performance over years,
including the year-over-year evolution
(€ million) Underlying revenue Underlying EBITDA
2023 6,042 +2.2% 1,757 -1.6%
2022 5,909 +5.9% 1,786 +0.8%
2021 5,578 +1 .8% 1,772 -3.5%
2020 5,479 -3.6% 1,836 -1.8%
2019 5,686 1,870
For more information, please see the Proximus Financial Report.
Average remuneration of the company’s employees over years, including the year-over-year evolution
2019 2020 2021 2022 2023
Average remuneration* € 81,802 € 86,677 € 87,400 € 93,471 € 96,833
Year-over-year evolution +6% +1% +7% +4%
* 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 (Leadership Squad excluded) of Proximus SA at the closing date of the period (for 2019, 2020, 2021
and 2022) and with the average number of full time equivalents employees (Leadership Squad excluded) of Proximus SA of the involved year (for 2023).
Proximus Group Integrated annual report 2023136
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 Leadership
Squad only in accordance with its Remuneration Policy,
approved by the General Meeting of Shareholders of Proximus
for the first time on 21 April 2021 and slightly adapted in 2023.
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
A slightly adapted version of the Remuneration Policy document
detailing the general principles governing our company
remuneration policy applicable to the members of its Board
of Directors and its Leadership Squad has been submitted to
the votes of our shareholders at the General Assembly of
19 April 2023. The shareholders have shown their support and
confidence in our Remuneration Policy by a substantial majority
(85.4%), which strengthens the choices we have made in this
domain for the future.
The Remuneration Report of 2022, also submitted to the votes
of our shareholders at the General Assembly of 19 April 2023,
has been approved by 83.8%. This excellent result reinforces
our beliefs that we are right to adopt an open and transparent
dialogue with our shareholders on remuneration matters
and governance in general. Since the 2022 report, we have
adopted even more transparency and gone even further in the
preparation and level of details of the disclosed information, as
the opinion and trust of our shareholders are essential to us.
Proximus Group Integrated annual report 2023137
Regulatory framework
Cable & broadband regulation
The Belgian regulators’ decision of 29 June 2018 on the
broadband and TV market analysis 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” model for the FTTH monthly rental fees.
Concerning the Proximus wholesale fiber pricing, BIPT
concluded on 9 March 2021 that the rates that Proximus
applies for FTTH wholesale monthly rental fees are fair and
are in line with the regulation it set in 2018. These are the
access prices other operators pay for using Proximus’ FTTH
fiber optic network.
The European regulatory framework foresees that the
regulators must review markets that are susceptible to ex-ante
regulation on a regular basis (every five years). Technical and
competitive developments as well as the evolution of needs
and consumption habits must be considered.
On 10 October
2023, BIPT adopted a communication in which it explained
to postpone its ongoing review process until mid-May 2024,
possibly extendable, to take into account possible new FTTH
cooperation agreements that could be concluded by that time.
Cooperation agreement roll-out
FTTH networks
In its communication of 10 October 2023, BIPT
acknowledged the need for further collaboration between
operators to roll out FTTH in Belgium since duplicating FTTH
infrastructures may have a significant economic cost. BIPT
is prepared to assess any agreement or draft agreement
the operators
would intend
to conclude. BIPT will pay
particular attention to the fact that these agreements are
designed in such a way as to ensure eective and sustainable
competition for the benefit of end-users.
Radio spectrum
Belgium
The multi-band spectrum auction that was closed in July 2022
has enabled Proximus to secure 285 MHz for €600 million in
the 700 MHz, 900 MHz, 1400 MHz, 1800 MHz, 2100 MHz and
3600 MHz bands.
All these licenses are valid for 20 years, except the 3600 MHz
band which will expire earlier by 6 May 2040. Most of these
licenses have started in the course of 2023.
Altogether Proximus currently owns a total of 345 MHz, which
includes also (in addition to the spectrum listed above) spectrum
in the 800 MHz and 2600 MHz bands.
Spectrum bands Start date End date
700 MHz 01/09/2022 31/08/2042
800 MHz 30/11/2013 29/11/2033
900 MHz 01/01/2023 31/12/2042
1400 MHz 01/07/2023 30/06/2043
1800 MHz 01/01/2023 31/12/2042
2100 MHz 01/01/2023 31/12/2042
2600 MHz 01/07/2012 30/06/2027
3600 MHz 01/09/2022 06/05/2040
For the years to come, Proximus has secured a spectrum
amount that ensures excellent network quality and will allow us
to continue providing the best customer experience.
On the next page a full overview of the sector spectrum
allocation in Belgium.
Proximus Group Integrated annual report 2023138
On 19 December 2023, BIPT announced that the spectrum cap
of the 3400-3800MHz band will be raised to 120Mhz. This will
allow all operators to bid for the 3410-3430MHz band (20MHz)
that will become available at the latest in May 2025 and will be
valid until 6 May 2040. The auction is expected to take place in
2024.
International roaming
On 4 April 2022, the European Council adopted a new
legislative act to extend the existing roaming regulation until
30 June 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), are capped at €2 per
Gigabyte (Gb) from 2022 progressively down to €1 in 2027.
Furthermore, wholesale caps for voice and SMS are lowered
based on a two-step glide path in 2022 and 2025. The
Commission has been tasked with reviewing the regulation and
its first report is scheduled for 30 June 2025.
€excl. VAT 2023 2024 2025 2026 2027-2032
Voice call/min 0.022 0.022 0.019 0.019 0.019
SMS 0.004 0.004 0.003 0.003 0.003
Data/GB 1.8 1.55 1.3 1.1 1
2025 taris and beyond subject to Commission review by 30 June 2025
Spectrum holdings in Belgium (# MHz)
NRB
Citymesh*
Citymesh Mobile**
Telenet
Orange Belgium
Proximus
0 50 100 150 200 250 300 350 400
700 MHz
800 MHz
900 MHz
1400 MHz
1800 MHz
2100 MHz
2600 MHz
3400-3800 MHz
20
45
10
20 20 20 30 30 30 40
20 20 20 45
10
100
100
100
50 50 40
20
10 30 10 30 50
20 20 15 40 3030
* The 2600 MHz frequencies are owned by Citymesh Air and the 3600 MHz frequencies by Citymesh Safety Drones and Citymesh Integrator
(valid until 6/5/2025)
** Citymesh Mobile SA/NV is the legal entity that has been co-created by Citymesh SA/NV and DIGI for the acquisition of spectrum during the
multiband auction in 2022. In 2023, Citymesh SA/NV has also transferred 2x15MHz in the 2600 MHz band to Citymesh Mobile SA/NV.
Proximus Group Integrated annual report 2023139
Coverage and quality of mobile
networks
Through its “Atlas” project, BIPT publishes detailed information
on the coverage of mobile and fixed networks in Belgium and
the quality of the user experience on these networks.
Atlas indicates the coverage of each of the three mobile
operators (Telenet/Base, Orange and Proximus) individually
on the map of Belgium. It shows dierent coverage levels
(very good/deep indoor, good/indoor, satisfactory/outdoor).
For 4G, Proximus has the most extensive coverage for all
coverage levels, both in terms of territory and population.
BIPT is preparing an update of the mobile Atlas in early 2024.
At the beginning of 2023 BIPT published a “drive test and
train test study” on the quality of mobile user experience
oered by the three mobile operators. The study concludes
that, compared to the previous year, the performance of
mobile networks in Belgium, the first signs of saturation
of the 4G mobile networks. This is mostly related to the
increase
in
4G capable connected devices. Operators
are trying to mitigate the impact by modernizing existing
technologies and investing in new 5G technology. It highlights
that, based on international experience, Belgian mobile
operators oer very good quality. For example, in drive tests,
Proximus shows excellent results for call setup success
rates, call setup times, video streaming success rates and
web browsing times and, in train tests, Proximus achieved
the highest score for 17 of the 21 indicators measured. BIPT
prepares an update for early 2024.
Net neutrality
On 30 June 2023, BIPT adopted its report on net neutrality
monitoring in Belgium, covering the period from 1 May 2022 to
30 April 2023. BIPT’s opinion is that there are no major reasons
of concern in Belgium regarding open internet access.
Universal service – social taris
The law providing a legal basis for the new social tari regime
was published on 4 October 2023 and will enter into force on
1 March 2024. The current regime will gradually be replaced
by a basic Internet plan (30Mbps/4Mbps, 150GB) available
for the beneficiaries at a maximum price of €19/month, with
an option to have a bundle with TV at maximum total price of
€40/month. Eligibility requirements have been aligned to those
applicable in the energy sector.
The system is mandatory for operators that have their own
broadband network and a turnover of minimum €50 million.
Proximus, Telenet and Orange will be obliged to oer this basic
Internet plan to new social subscribers. Other operators may
choose to oer this new social tari.
The current system remains applicable for existing users
unless they switch operators or request for the new system
(grandfathering).
Proximus Group Integrated annual report 2023140
EU Digital Market Act and Digital Services Act
The EU’s Digital Markets Act (DMA) became applicable
on 2 May 2023. The new law is aimed at large online
marketplaces, app stores, search engines, social networks
and cloud platforms, which will have until March 2024 to
implement the new restrictions.
The DMA prohibits various unfair practices identified in
a number of earlier competition cases by the EU against
Internet giants. These include, among others, not favoring
their own services over third parties using their online
platforms, not re-using data obtained from competing sellers
on the platforms and allowing alternative payment services
and app installations for access to their platforms.
In addition, the so-called gatekeepers must notify the
European Commission of all acquisitions, regardless of size.
If it identifies competition concerns,
the Commission has
the additional power to impose remedies
. Violations of the
DMA can result in fines of up to 10% of turnover and 20%
for repeat oences. On 6 September 2023 the European
Commission designated, for the first time, six gatekeepers –
Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft –
under the Digital Markets Act. In total, 22 core platform
services provided by gatekeepers have been designated.
The six gatekeepers had six months to ensure full compliance
with the DMA obligations for each of their designated core
platform services.
On 4 October 2022, the Council of the EU gave its formal
approval to the new Digital Services Act (DSA). The Digital
Services Act sets a new level of accountability for online
platforms to remove illegal and harmful content, while also
increasing transparency on how algorithms are used and
introducing protection for minors from personalized ads. It
will cover a range of online intermediary services, including
ISPs, hosting companies and large search engines and
online marketplaces. Very large providers will also face extra
regulatory requirements.
Proximus Group Integrated annual report 2023141
The Proximus share
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 2023
Proximus closed 2023 at €8.51, or 5.4% lower than the
last closing price of 2022.
The Proximus share had a good start to the year following
the release of the new strategic plan bold2025 on
16 January, including the disclosure of Proximus’
mid-term guidance.
Despite its strong results for the full-year 2022, and first half
of 2023, the Proximus share suered in that period due to
the overhang of uncertainties around the potential disruption
of the announced new entrant and fiber overbuild risks. The
announcement of Proximus rebasing its dividend (eective
from cash perspective in 2025) also had a negative impact on
Proximus’ share price. On top of this, in the heavy investment
cycle Proximus is going through, FCF generation remains central
to the debates around the Proximus’ investment case.
Since mid-July 2023, the Proximus share price has been
following a positive trend with several catalysts at play.
In July, Proximus announced the agreement to acquire a
majority stake in Route Mobile. This acquisition enables
Proximus to become a leading global communication platform
by joining capabilities with Telesign.
At the end of August, Proximus signed a mobile roaming
agreement with DIGI and Citymesh.
Early October, the BIPT confirmed that it will assess any
agreement between operators for a fiber framework, opening
the path towards a more ecient Fiber roll-out in Belgium.
Mid-November, Xavier Niel, through his investment vehicle
Carraun, announced the acquisition of a 6% interest in
Proximus, with the related press release validating Proximus’
strategy, both domestically and internationally.
In parallel, Proximus delivered strong operational results in the
second half of 2023 while using its pricing power to reflect the
inflationary environment it operates in.
These catalysts enabled the Proximus share price to rebound
from its summer low of €6.42 to €8.51 at the end of 2023,
marking a 32.5% increase. Additionally, Proximus distributed a
dividend of €1.20 per share over the course of 2023.
20%
10%
0%
-10%
-20%
-30%
-40%
31 Dec 31 Jan 28 Feb 31 Mar 30 Apr 31 May 30 Jun 31 Jul 31 Aug 30 Sep 31 Oct 30 Nov 31 Dec
Proximus share price evolution 2023 vs.
3 indices (in %- rebased)
—— Proximus (PROX-BRU)
—— Belgium BEL-20 (BEL20-ENX)
—— STOXX Europe 600/Telecommunications (Capped) - SS (SXKP-STX)
—— STOXX Europe 600 (SXXP-STX)
(Source: Nasdaq)
Proximus Group Integrated annual report 2023142
Key figures on the Proximus share
Share information 2014 2015 2016 2017
2018
IFRS15
2019
IFRS16
2020 2021 2022 2023
Share price high 32.29 35.67 31.74 32.81 28.10 28.17 2 7.1 2 19.16 18.65 9.85
Share price low 20.78 27.93 25.31 26.42 19.31 21.96 15.01 15.95 8.474 6.42
Share price at 31 December 30.10 30.00 2 7.36 27.35 23.62 25.52 16.21 17.14 8.996 8.51
Annual trading volume
(number of shares)
178,802,905 179,825,076 15 7, 368,090 147,754,799 169,849,252 168,509,614 206,692,812 199,060,570 259,157,56 7 225,296,344
Average trading volume per
day (number of shares)
701,188 702,442 612,327 579,431 650,763 660,822 804,252 774,555 1,008,395 883,515
Number of outstanding
shares
321,230,597 322,003,751 32 2, 63 7,103 322,638,989 322,703,817 322,982,509 322,690,026 322,741,364 322,392,507 322,623,702
Weighted average number
of outstanding shares
320,119,106 321,767,821 3 22, 31 7,201 322,777,440 322,649,917 322,918,006 322,752,015 322,751,990 322,552,465 322,442,197
Market capitalization at 31
December (billion €)
1
9.67 9.66 8.83 8.82 7.62 8.24 5.23 5.53 2.90 2.75
Key data per share - on reported basis
EBITDA 5.48 5.12 5.38 5.49 5.56 5.19 5.95 5.66 5.66 5.54
Earnings
2
2.04 1.50 1.62 1.62 1.58 1.16 1.75 1.37 1.40 1.11
Price/earnings at 31
December
3
14.73 20.03 16.86 16.90 15.00 22.09 9.27 12.48 6.43 7.67
Ordinary dividend (gross)
4
1.00 1.00 1.00 1.00 1.00 1.00 0.70 0.70 0.70 0.70
Interim-dividend (gross) 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Gross dividend yield
3
4.98% 5.00% 5.48% 5.48% 6.35% 5.88% 7.4 0% 7.00% 13.34% 14.10%
Key data per share - on underlying basis
EBITDA 5.15 5.38 5.57 5.65 5.78 5.79 5.69 5.49 5.54 5.45
Earnings 1.85 1.68 1.71 1.72 1.71 1.76 1.75 1.38 1.50 1.26
Price/earnings at 31
December
16.28 1 7.8 7 15.96 15.92 13.78 14.51 9.25 12.44 6.00 6.75
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)
Proximus Group Integrated annual report 2023143
Our shareholders
Proximus’ main shareholder is the Belgian Government, owning
53.51% of the company’s shares. Proximus held 4.56% of its
own shares end-2023. The free float represented 41.93% or
nearly 142 million shares, about 53% of which was held by
institutional shareholders.
Proximus’ main institutional shareholders are located in the
United States and Benelux, followed by Nordics and UK.
Proximus share ownership – 31 December 2023
Number of shares % shares % Voting rights % Dividend rights Number of shares
with voting rights
Number of shares
with dividend rights
Belgian state 1 80, 887,569 53.51% 56.07% 55.95% 180, 887, 56 9 18 0, 88 7,569
Proximus own
shares
15,401,433 4.56% 0.00% 0.21% 0 693,702
Free-float 141,736,133 41.93% 43.93% 43.84% 141,736,133 141,736,133
Total 338,025,135 100.00% 100.00% 100.00% 322,623,702 3 2 3, 317,4 04
Source: Shareholder analysis November 2023
% of identified institutional shareholders - Nasdaq
Institutional shares per geography
US 55%
Nordics 8%
Benelux 14%
Rest of Europe 6%
France 4%
Germany 2%
UK 9%
Rest of the world 2%
Belgian
government
53.51%
Proximus shares ownership
Free-float
41.93%
Own shares 4.56%
Proximus Group Integrated annual report 2023144
Evolution of treasury shares
End of period 2022 15,632,628
Changes through liquidity contract 228,449
Discount Purchase Plan employee 2,746
End of period 2023 15,401,433
End-2023, Proximus held 15,401,433 treasury shares,
representing 4.56% of the total number of shares. In the course
of 2023, 2,746 treasury shares were used in a Discounted Share
Purchase Plan, and no options were exercised.
1
The voting rights of all treasury shares are suspended by law.
Proximus has 14,707,731 treasury shares that are not entitled to
dividend rights and 693,702 treasury shares that are entitled to
dividend rights.
Under Belgian law, companies are prohibited from owning more
than 20% of their outstanding share capital.
1 For more information, please see ‘Remuneration Report’.
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 2023, Blackrock Inc, Carraun Telecom Holdings Limited and
The Goldman Sachs Group, Inc notified the changes in their
Proximus shareholding as listed below.
To Proximus’ knowledge, no other shareholder owned 3% or
more of Proximus’ outstanding shares as of 31 December 2023.
Notifications of important shareholdings to be made according
to the Law of 2 May 2007 or Proximus’ bylaws should be sent to
• FSMA at trp.[email protected]
• Proximus at investor.relations@proximus.com
Proximus Group Integrated annual report 2023145
Voting rights Total incl. equivalent financial
instruments
Date on which
threshold was
crossed
Notified on Notifier
Reason for
notification
# voting rights
after the notified
transaction
% voting rights
in total of
338,025,135
voting rights
# voting rights
after the notified
transaction
% voting rights
in total of
338,025,135
voting rights
22/12/2023 28/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 1,316,420 0.39% 26,438,011 7. 82%
21/12/2023 28/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 1,319,287 0.39% 26,682,604 7.89%
19/12/2023 27/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 1,764,364 0.52% 26,626,708 7.88%
8/12/2023 15/12/2023 The Goldman Sachs
Group, Inc.
>7.5 1,271,520 0.38% 28,977,900 8.57%
7/12/2023 14/12/2023 The Goldman Sachs
Group, Inc.
<3% 9,842,934 2.91% 30,507,389 9.03%
5/12/2023 11/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 10,585,822 3.13% 31,281,707 9.25%
4/12/2023 8/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 3,109,203 0.92% 31,259,904 9.25%
30/11/2023 8/12/2023 The Goldman Sachs
Group, Inc.
>7.5% 5,678,811 1.63% 29,235,692 8.65%
16/11/2023 23/11/2023 Carraun Telecom
Holdings Limited
>5% 0 0.00% 20,300,000 6.01%
16/11/2023 22/11/2023 The Goldman Sachs
Group, Inc.
>7.5% 1,282,014 0.38% 25,913,762 7.67%
10/11/2023 14/11/2023 Carraun Telecom
Holdings Limited
>5% 20,300,000 6.01% 20,300,000 6.01%
9/11/2023 15/11/2023 The Goldman Sachs
Group, Inc.
<7. 5% 2,893,505 0.86% 25,324,231 7.49%
8/11/2023 14/11/2023 The Goldman Sachs
Group, Inc.
>7.5% 11,426,479 3.38% 32,121,799 9.50%
25/09/2023 27/09/2023 Blackrock Inc. <3% 8,589,294 2.54% 9,318,926 2.76%
21/09/2023 25/09/2023 Blackrock Inc. <3% 9,520,561 2.82% 10,275,190 3.04%
4/09/2023 6/09/2023 Blackrock Inc. <3% 8,522,781 2.52% 9,329,372 2.76%
1/09/2023 4/09/2023 Blackrock Inc. <3% 9,339,884 2.76% 10,146,475 3.00%
6/07/2023 7/07/202 3 Blackrock Inc. <3% 8,490,205 2.51% 9,109,478 2.69%
4/07/2023 6/07/2023 Blackrock Inc. <3% 9,923,178 2.94% 10,548,541 3.12%
29/06/2023 30/06/2023 Blackrock Inc. >3% 10,186,052 3.01% 10,818,600 3.20%
28/06/2023 29/06/2023 Blackrock Inc. <3% 9,842,087 2.91% 10,474,635 3.10%
26/06/2023 27/07/ 2023 Blackrock Inc. >3% 11,335,188 3.35% 12,089,818 3.58%
22/06/2023 26/06/2023 Blackrock Inc. <3% 8,979,597 2.66% 9,642,457 2.85%
20/06/2023 21/06/2023 Blackrock Inc. >3% 11,124,291 3.29% 11,818,669 3.50%
19/06/2023 21/06/2023 Blackrock Inc. <3% 10,006,609 2.96% 10,599,100 3.14%
16/06/2023 20/06/2023 Blackrock Inc. >3% 10,739,524 3.18% 11,330,915 3.35%
13/06/2023 14/06/2023 Blackrock Inc. <3% 8,102,858 2.40% 9,046,600 2.68%
12/06/2023 13/06/2023 Blackrock Inc. >3% 10,743,991 3.18% 11,664,332 3.45%
Proximus Group Integrated annual report 2023146
9/06/2023 13/06/2023 Blackrock Inc. <3% 10,085,590 2.98% 10,981,929 3.25%
7/06/2023 9/06/2023 Blackrock Inc. >3% 11,268,812 3.33% 1 2, 107,21 5 3.58%
6/06/2023 8/06/2023 Blackrock Inc. <3% 8,440,664 2.50% 8,938,410 2.64%
24/05/2023 25/05/2023 Blackrock Inc. >3% 12,636,348 3.74% 13,194,641 3.90%
23/05/2023 24/05/2023 Blackrock Inc. >3% 9,731,707 2.88% 10,284,980 3.04%
19/05/2023 22/05/2023 Blackrock Inc. <3% 8,932,034 2.64% 9,773,604 2.89%
18/05/2023 22/05/2023 Blackrock Inc. <3% 9, 274,705 2.74% 10, 157,60 6 3.00%
15/05/2023 16/05/2023 Blackrock Inc. >3% 10,675,436 3.16% 11,282,487 3.34%
12/05/2023 15/05/2023 Blackrock Inc. <3% 10,135,710 3.00% 10,768,829 3.19%
28/04/2023 2/05/2023 Blackrock Inc. >3% 11,579,232 3.43% 12,436,579 3.68%
25/04/2023 27/04/2023 Blackrock Inc. <3% 9,300,947 2.75% 10,080,954 2.98%
4/04/2023 6/04/2023 Blackrock Inc. <5% 13,849,060 4.10% 14,781,651 4.37%
31/03/2023 3/04/2023 Blackrock Inc. <5% 16,726,980 4.95% 17,690,185 5.23%
29/03/2023 31/03/2023 Blackrock Inc. >5% 17,385,368 5.14% 18,454,770 5.46%
17/03/2023 20/03/2023 Blackrock Inc. <5% 13,702,480 4.05% 15,409,240 4.56%
3/02/2023 6/02/2023 Blackrock Inc. <5% 15,629,000 4.62% 17,059,359 5.05%
2/02/2023 3/02/2023 Blackrock Inc. <5% 15,525,107 4.59% 16,606,330 4.91%
1/02/2023 3/02/2023 Blackrock Inc. <5% 16,050,142 4.75% 17,006,776 5.03%
27/01/2023 30/01/2023 Blackrock Inc. >5% 1 7,33 2,01 3 5.13% 18.272.503 5.41%
13/01/2023 17/01/2023 Blackrock Inc. <5% 13,697,117 4.05% 17,097,22 7 5.06%
12/01/2023 13/01/2023 Blackrock Inc. <5% 15,295,266 4.52% 16,612,554 4.91%
9/01/2023 11/01/2023 Blackrock Inc. <5% 15,930,325 4.71% 17, 281 ,751 5.11%
Proximus Group Integrated annual report 2023147
Shareholder remuneration
Dividend policy
With 2023, Proximus closed its first year of bold2025, a
strategy setting out an ambitious path for future growth and
value creation for Proximus Group, continued investment
in the #1 gigabit network for Belgium, enhanced customer
experience, next-generation products and services, and further
international development, whilst balancing the need to keep a
sound financial position.
In line with the announced shareholder return policy at its
Capital Markets Day of 16 January 2023, Proximus intends to
return a stable gross 2023 dividend of €1.20 per share. Over
the results of 2024 and 2025, Proximus will rebase its dividend
level to €0.60 per share. The rebased sustainable dividend
level incorporates all currently known macro and inflationary
headwinds, as well as expected changes in market structure.
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 on the 2023 result
On 22 February 2024, the Board of Directors approved the
decision to propose to the Annual General Shareholders’
Meeting of 17 April 2024 a gross dividend on the 2023 result
of €1.20 per share, of which €0.50 interim dividend per share
was paid in December 2023.
After approval by the Annual Shareholders’ Meeting, the normal
dividend of €0.70 per share will be paid on 26 April 2024, with
record date on 25 April 2024 and ex-dividend date on 24 April
2024.
This brings the total declared dividend over the 2023 result to
€388 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 “question & answer”
session.
Throughout 2023, Proximus has organized several roadshows
with top management. Furthermore, Proximus has participated
in several major international investment conferences.
In all these activities, management is supported by the Investor
Relations team (IR).
The Proximus IR team oers 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.com/
investors.
Proximus Group Integrated annual report 2023148
Financial calendar
1
10 April 2024 Start of quiet period ahead of Q1
2024 results
17 April 2024 Annual General Shareholders’
Meeting (AGM)
26 April 2024 Dividend payment (to be approved
by the AGM)
26 April 2024 Announcement Q1 2024 results
10 July 2024 Start of quiet period ahead of Q2
2024 results
26 July 2024 Announcement Q2 2024 results
9 October 2024 Start of quiet period ahead of Q3
2024 results
25 October 2024 Announcement Q3 2024 results
1 Note that these dates may be subject to change.
Proximus Group Integrated annual report 2023149
Contribution to the SDGs
Proximus supports the 10 principles of the UN Global
Compact and has been working towards advancing the
Sustainable Development Goals (SDGs) for several years.
In 2022, we performed a more precise mapping of our
business model and sustainability strategy to the SDGs
with the goal of creating greater focus and clarity. In 2023,
with the launch of our new strategy bold2025, we reviewed
the analysis and added SDG 16 (Peace, justice and strong
institutions).
SDG description SDG sub-target Proximus actions Level of
contribution
Sense of
contribution
Link to
material topics
Ensure inclusive
and equitable
quality
education
and promote
lifelong learning
opportunities
for all
4.4
By 2030,
substantially
increase the number
of youth and adults
who have relevant
skills, including
technical and
vocational skills,
for employment,
decent jobs and
entrepreneurship
Employee development:
Wide range of training programs and courses at our Proximus Academy
Attractive oer of leadership development programs
Specific support to 50+ sta, Experience@work program, ...
Continuous up-skilling of field and customer-facing employees
€40.83 million invested in employee re- and up-skilling
63% of employees have attended 5 training days or more
Medium Enhancing
positive
impact
Employee
up-skilling,
re-skilling &
employability
Capacity building:
Supporting Bednet and ClassContact, two associations that allow children living with long-term
illnesses to continue their education at home or in the hospital
Academic Connect: end 2023, 292 schools connected to Proximus gigabit network
Proximus Ada experts providing cybersecurity initiations to Brussels residents and inspiration
sessions on AI to secondary school students
Medium Enhancing
positive
impact
Digital inclusion:
Access &
Skilling
Employment:
18 recent Master’s graduates hired for our Proximus Graduate Program and around 68 internships
Founding partner of Technobel and partnerships with MolenGeek and School19 resulting in 1,949
jobseekers trained via MolenGeek, School19 and Technobel
Medium Enhancing
positive
impact
Employee
up-skilling,
re-skilling &
employability
Digital inclusion:
Skilling
Achieve gender
equality and
empower all
women and girls
5.1
End all forms of
discrimination
against all women
and girls everywhere
Equal remuneration for women and men:
Proximus respects the equal pay principle. Since 2021, a gender pay equality assessment is
performed, showing that the dierence between female and male workers is not due to a dierent
pay policy but to the fact that women work more part-time than full-time compared to men
Medium Enhancing
positive
impact
Diversity, equity
& Inclusion
Working rights,
fair pay and
social dialogue
Parental leave and child care:
Proximus oers conditions that allow its employees to reconcile the dierent aspects of their
professional and private lives during their dierent life phases: parental leave, home working, part-
time schedules, sick childcare, childcare cost intervention, transition allowance, scholarship, children’s
holidays oer, kids’ days, support of social consultants in case of dicult personal situation.
Medium Enhancing
positive
impact
Diversity, equity
& Inclusion
Work-life
balance and
well-being
Working rights,
fair pay and
social dialogue
Workplace harassment:
Proximus has a policy on diversity and equal rights whichapplies to all employees of Proximus
Group. Diversity & Inclusion is alsopart of the Code of Conduct which is applicable to allemployees
and part of mandatory training. Within Proximus, specific teamsare in charge ofmonitoring
compliance with the Charter and of taking approriate actions in case of violations. Specific training
is given to front-line employees on how to deal with and report aggressive customers. Incidents,
including violence or harassment from thirds (e.g. customers in shops) and any corrective action, are
reported quarterly to the Audit & Compliance Committee.
Medium Enhancing
positive
impact
Diversity, equity
& Inclusion
Business
conduct
Proximus Group Integrated annual report 2023150
Non-discrimination:
Proximus has the ambition of being the most active company in promoting the employment of
women in the digital world and reached its target of recruiting 30% of women with a university
degree in technical areas by the end of 2023.
Medium Enhancing
positive
impact
Diversity, equity
& Inclusion
Inclusive supply chain:
Our Supplier Code of Conduct requires suppliers to respect and support the protection of the human
rights of workers (including non-discrimination), as well as individuals and communities aected by
their activities.
Medium Enhancing
positive
impact
Workers in value
chain / human
rights
5.5
Ensure women’s
full and eective
participation and
equal opportunities
for leadership at all
levels of decision-
making in political,
economic, and public
life
Female representation at the dierent levels of our company:
50% of the Board of Directors
24% of the Leadership Team
24% of women holding a management function
32% of all employee population
Medium Enhancing
positive
impact
Diversity, equity
& Inclusion
Promote
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment
and decent work
for all
8.2
Achieve higher
levels of economic
productivity through
diversification,
technological
upgrading and
innovation, including
through a focus on
high-value added
and labour-intensive
sectors
As the major provider of connectivity services, digital services and ICT solutions in Belgium, Proximus
contributes to Belgium’s sustainable economic growth by:
- Building the gigabit network for Belgium with fiber & 5G;
- Enabling the digital transformation of its enterprise customers;
- Supporting the development of new ecosystems, new business models and job creation (e.g. co-
founder of Flanders Technology & Innovation);
- Pioneering sovereign cloud solutions;
- Supporting the development of artificial intelligence and cybersecurity expertise in Belgium with
Proximus Ada.
High Enhancing
positive
impact
Digital inclusion:
Access
Technology &
innovation
Data privacy,
data security &
cybersecurity
8.5
By 2030, achieve
full and productive
employment and
decent work for all
women and men,
including for young
people and persons
with disabilities, and
equal pay for work of
equal value
Proximus Group employs 11,654 employees. Proximus SA welcomed 424 new hires, including
233 in shops and contact centers.
For our employees, we are committed to fair pay, equal opportunities and training & development
opportunities. We ensure a safe and secure working environment and promote well-being at work.
By signing our Supplier Code of Conduct, our suppliers agree to adhere to the same level of
commitment as ours.
Proximus collaborates with several adapted work companies, oering the possibility to
approximately 200 people with disabilities to carry out activities related to device refurbishing.
High Enhancing
positive
impact
Working rights,
fair pay and
social dialogue
Workers in value
chain / human
rights
Build resilient
infrastructure,
promote
inclusive and
sustainable
industriali-
zation and foster
innovation
9.1
Develop quality,
reliable, sustainable
and resilient
infrastructure,
including regional
and transborder
infrastructure, to
support economic
development and
human well-being,
with a focus on
aordable and
equitable access
for all
With its gigabit network, Proximus builds the future-proof and sustainable digital infrastructure of
Belgium and commits to oer a high-performance internet to all Belgians.
Through to its various brands and social taris, Proximus oers products and services that are
aordable for everyone.
Proximus collaborates with academia, partners, and customers to foster the development of
innovative products and services (e.g. 5G use cases), while also creating smart solutions that help
industries to become more sustainable.
Proximus invests to ensure its cybersecurity resilience, and protects and secures personal data for its
own operations and those of its customers.
At the same time, Proximus is aware of the public’s concerns about the network rollout and is doing
its best to address them:
- Health concerns linked to radiation & electromagnetic fields: compliance with the legislation,
follow-up of scientific research, info on website;
- Digital stress linked to digital addiction: advices on website;
- Visual pollution of the landscape: 40% fewer antennas thanks to Mwingz;
- Works in the street: agreements with utilities companies to optimize road works; aerial fiber
deployment.
High Enhancing
positive
impact
Minimizing
negative
impact
Digital inclusion:
access,
aordability
Technology &
innovation
Data rivacy, data
security and
cybersecurity
Digital stress
and safe
products
Local
communities
Proximus Group Integrated annual report 2023151
Ensure
sustainable
consumption
and production
patterns
12.2
By 2030, achieve
sustainable
management and
ecient use of
natural resources
Between 2007 and 2023, we reduced our electricity consumption by 27%, through:
- eciencies on fixed networks and buildings;
- sharing the mobile access network with Orange Belgium.
Since 2019, Proximus has been only sourcing renewable electricity and is increasingly buying its
electricity from local sources.
By 2030, Proximus will have completely banned the use of fossil fuels in its operations (e.g. fossil
free building heating systems, bike deliveries). Since July 2023, only electric company cars are
available in the management fleet.
Through eco-design, refurbishment, reuse and recycling, we extend our devices’ lifecycle. F.i. our
newest Internet Box has a casing made entirely of recycled plastics. Compared to the previous
model, it uses 24% less electricity and has a 30% lower environmental footprint.
We also enable our customers to reduce their environmental impact. In 2023, emissions avoided by
customers through Proximus solutions reached 769.6 kilotons of CO
2
.
High Enhancing
positive
impact
Energy
Climate change
mitigation
12.5
By 2030,
substantially reduce
waste generation
through prevention,
reduction, recycling,
and reuse
Proximus aims to be truly circular by 2030:
- We collect old mobile phones for refurbishing and recycling;
- Proximus and Orange Belgium share a part of their mobile access networks;
- Old copper network is recycled;
- We propose leasing business models to our enterprise customers. On the residential market, this
leasing model is applied to our modems and decoders, 90% of which are refurbished and put back
in circulation up to four times. However, consumers are not yet ready to lease their smartphones.
The challenge lies in motivating them to bring back the phones they don’t use anymore.
Proximus is working towards 90% re-used or recycled waste by 2025 and zero waste by 2030. In
2023, Proximus recycled or re-used 84% of its waste.
High Enhancing
positive
impact
Circular
economy &
waste
Take urgent
action to combat
climate change
and its impacts
13.1
Strengthen resilience
and adaptive capacity
to climate-related
hazards and natural
disasters in all
countries
Proximus implements TCFD recommendations. In 2022, for the first year, we used scenario analysis
in our disclosure of climate-related risk and opportunities which we started to integrate into the
Enterprise Risk Management (ERM) process.
In 2023, in preparation to the Corporate Sustainability Reporting Directive (CSRD) we performed a
double materiality assessment including climate change adaptation.
Also, Proximus developed business continuity plans at corporate level for threats like power
interruptions or natural disasters linked to climate change.
High Enhancing
positive
impact
Climate change
adaptation
13.2
Integrate climate
change measures
into national policies,
strategies and
planning
Proximus committed to achieve net zero GHG emissions by 2040.
In 2022, Proximus was the first large company in Belgium and third telco worldwide to have its net
zero targets validated by the SBTi (overall target, near-term and long-term targets).
Through its Supplier Engagement Program, Proximus is also acting on its value chain by actively
engaging with its suppliers to commit themselves to reducing their carbon footprint.
High Minimizing
negative
impacts
Climate change
mitigation
Promote just,
peaceful and
inclusive
societies
16.3
Promote the rule of
law at the national
and international
levels and ensure
equal access to
justice for all
Proximus has a strong governance model, embedding the highest ethics and compliance standards.
To further reduce any risk of Belgian labor law violation in the context of the large-scale fiber
deployment, Proximus and its joint venture partners adopted a specific social responsibility charter.
Proximus cooperates closely with the judicial authorities and helps them in their investigations in
the context of criminal oences such as the possession and distribution of images related to child
pornography.
Medium Enhancing
positive
impact
Business
conduct
16.5
Substantially reduce
corruption and
bribery in all their
forms
A relationship agreement with the Belgian state and a public aairs policy ensure that the rules of
engagement with the majority shareholder and with public authorities are clear.
Proximus takes a strong stance against corruption, Code of conduct violations and privacy and runs a
zero tolerance policy. Employees attend mandatory training on those topics.
Suppliers and business partners are asked to subscribe to Proximus Supplier Code of Conduct, based
on the 10 principles of the United Nations Global Compact.
Medium Enhancing
positive
impact
Business
conduct
Political
engagement
& lobbying
activities
16.7
Ensure responsive,
inclusive,
participatory and
representative
decision-making at
all levels
Proximus actively engages with its stakeholders on a structured and regular basis. Their feedback is
integrated into Proximus strategy and operations, ensuring that their concerns and suggestions are
appropriately addressed.
Medium Enhancing
positive
impact
Business
conduct
Proximus Group Integrated annual report 2023152
GRI and SASB
GRI content index
GRI content index
Statement of use Proximus has reported the information cited in this GRI content index for the period 1 January 2023 - 31 December 2023
with reference to the GRI Standards.
GRI 1 used GRI 1: Foundation 2021
GRI STANDARD # DISCLOSURE REFERENCE
General disclosures
GRI 2: General
Disclosures 2021
2-1 Organizational details About us (p. 8)
Consolidated financial statements (p. 160)
2-2 Entities included in the organization’s
sustainability reporting
Integrated reporting approach 2023 (p. 3)
2-3 Reporting period, frequency and contact point Consolidated financial statements (p. 160)
The report is published in March 2024
The contact point is Corporate Aairs Proximus,
Boulevard du Roi Albert II, 27 B - 1210 Brussels
2-4 Restatements of information Consolidated financial statements (p. 160)
Environmental statements (p. 55)
Social statements (p. 76)
2-5 External assurance Audit & Compliance Committee (p. 95)
Board of Auditors (p. 101)
Auditor’s reports (p. 320)
2-6 Activities, value chain and other business
relationships
Proximus Group at a glance (p. 4)
Addressing stakeholder’s priorities (p. 15)
Sustainable Supply Chain (p. 114)
Grow profitably locally and globally through strong
brands (p. 39)
Key highlights (p. 20)
2-7 Employees Social statements (p. 76)
2-8 Workers who are not employees Social statements (p. 76)
2-9 Governance structure and composition Proximus governance model (p. 92)
Committees of the Board of Directors (p. 95)
Board of Directors (p. 92)
Composition of the Board of Directors (p. 93)
Members of the Board of Directors (p. 102)
Members of the Leadership Squad (p. 108)
Competences of the Board of Directors (p. 99)
2-10 Nomination and selection of the highest
governance body
Board of Directors (p. 92)
Committees of the Board of Directors (p. 95)
Competences of the Board of Directors (p. 99)
2-11 Chair of the highest governance body Board of Directors (p. 92)
2-1 2 Role of the highest governance body in
overseeing the management of impacts
Sustainability Governance (p. 97)
Proximus Group Integrated annual report 2023153
2-1 3 Delegation of responsibility for managing
impacts
Sustainability Governance (p. 97)
2-14 Role of the highest governance body in
sustainability reporting
Sustainability Governance (p. 97)
Double materiality assessment (p. 16)
2-15 Conflicts of interest Conflict of interest (p. 97)
2-16 Communication of critical concerns Audit & Compliance Committee (p. 95)
The Compliance Program (p. 112)
2-17 Collective knowledge of the highest
governance body
Sustainability Governance (p. 97)
2-18 Evaluation of the performance of the highest
governance body
Evaluation of the Board (p. 98)
2-19 Remuneration policies Remuneration report (p. 116)
2-20 Process to determine remuneration Nomination and Remuneration Committee (p. 96)
Remuneration report (p. 116)
2-21 Annual total compensation ratio Remuneration report (p. 116)
2-22 Statement on sustainable development
strategy
Foreword by our CEO and our Chairman (p. 5)
Act for an inclusive society and be sustainable in
everything we do (p. 45)
2-23 Policy commitments Compliance & Ethical standards (p. 112)
Sustainable supply chain (p. 114)
The Compliance Program (p. 112)
Human Rights (p. 114)
Proximus governance model (p. 92)
Role of compliance at Proximus (p. 112)
2-24 Embedding policy commitments Proximus governance model (p. 92)
Sustainable supply chain (p. 114)
Compliance & Ethical standards (p. 112)
2-25 Processes to remediate negative impacts Report on our activities (p. 23)
Addressing stakeholder priorities (p. 15)
Compliance and ethical standards (p. 112)
Risk management report (p. 300)
2-26 Mechanisms for seeking advice and raising
concerns
The Compliance program (p. 112)
2-27 Compliance with laws and regulations Risk management report (p. 300)
Consolidated financial statements (p. 160)
2-28 Membership associations VBO/FEB, VOKA, ETNO, Agoria, BECI, UWE, GSMA,
ETIS, FITCE, Cyber Security Coalition, Guberna,
Center on Regulation in Europe, #embrace dierence,
Open@work, Women on board, #iamremarkable,
Belgian Association of Marketing, JAC (Non-
exhaustive list)
2-29 Approach to stakeholder engagement Addressing stakeholder priorities (p. 15)
2-30 Collective bargaining agreements Social statements: S1 (p. 76)
GRI 3: Material Topics
2021
3-1 Process to determine material topics Double materiality assessment (p. 16)
3-2 List of material topics Double materiality assessment (p. 16)
Proximus Group Integrated annual report 2023154
Material topic: Technology & innovation
3-3 Management of material topics Engaging with our stakeholders (p. 15)
Report on our activities (p. 23)
Sustainability governance (p. 98)
Risk management report (p. 300)
Evolution in R&D activities (p. 316)
GRI 203: Indirect
Economic Impacts 2016
203-1 Infrastructure investments and services
supported
Overview of bold2025 (p. 24)
Roll-out #1 gigabit network for Belgium (p. 25)
Grow profitably, locally and globally, through strong
brands (p. 39)
Material topic: Business conduct
3-3 Management of material topics Engaging with our stakeholders (p. 15)
Role of compliance at Proximus (p. 112)
The Compliance Program (p. 112)
Proximus governance model (p. 92)
Sustainability governance (p. 98)
GRI 205: Anti-
corruption 2016
205-2 Communication and training about anti-
corruption policies and procedures
The Compliance Program (p. 112)
Own indicator Number of cases investigated by the
Investigations Department for violation of
policies/code of conduct
The Compliance Program (p. 112)
Own indicator Number of whistleblowing cases The Compliance Program (p. 112)
Own indicator Number of dismissals resulting from
investigations
The Compliance Program (p. 112)
Own indicator Number of warnings resulting from
investigations
The Compliance Program (p. 112)
Material topic: Circular economy & waste
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
Sustainability governance (p. 98)
Overview of bold2025 (p. 24)
Environmental statements: E4 (p. 63)
Engaging with our stakeholders (p. 15)
GRI 301: Materials 2016 301-2 Recycled input materials used Environmental statements: E4 (p. 63)
Own indicator Number of refurbished fix devices Environmental statements: E4 (p. 63)
Own indicator Number of mobile devices collected Environmental statements: E4 (p. 63)
Own indicator Number of refurbished computers oered to
schools as reward for mobile phone recycling
- Belgium
Environmental statements: E4 (p. 63)
Material topic: Energy
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
Contributing to a green transition (p. 45)
Sustainability governance (p. 98)
Environmental statements: E1 (p. 55)
Engaging with our stakeholders (p. 15)
Risk management report (p. 300)
GRI 302: Energy 2016 302-1 Energy consumption within the organization Environmental statements: E1 (p. 55)
302-3 Energy intensity Environmental statements: E1 (p. 55)
302-4 Reduction of energy consumption Environmental statements: E1 (p. 55)
302-5 Reductions in energy requirements of products
and services
Environmental statements: E1 (p. 55)
Proximus Group Integrated annual report 2023155
Material topic: Climate change mitigation
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
Contributing to a green transition (p. 45)
Sustainability governance (p. 98)
Environmental statements: E2 (p. 58); E3 (p. 62)
Engaging with our stakeholders (p. 15)
Risk management report (p. 300)
GRI 305: Emissions 2016 3 05-1 Direct (Scope 1) GHG emissions Environmental statements: E2 (p. 58)
305-2 Energy indirect (Scope 2) GHG emissions Environmental statements: E2 (p. 58)
305-3 Other indirect (Scope 3) GHG emissions Environmental statements: E2 (p. 58)
305-4 GHG emissions intensity Environmental statements: E2 (p. 58)
305-5 Reduction of GHG emissions Environmental statements: E2 (p. 58); E3 (p. 62)
Material topic: Circular economy & waste
3-3 Management of material topics Truly circular by 2030 (p. 47)
Sustainability governance (p. 98)
Environmental statements: E4 (p. 63); E5 (p. 65)
Engaging with our stakeholders (p. 15)
GRI 306: Waste 2020 306-3 Waste generated Environmental statements: E4 (p. 63)
306-4 Waste diverted from disposal Environmental statements: E4 (p. 63)
Material topic: Work-life balance and well-being
3-3 Management of material topics Foster an engaging culture & empowering ways of
working (p. 32)
Well-being at work (p. 34)
Proximus governance model (p. 92)
Sustainability governance (p. 98)
The Compliance Program (p. 112)
Social statements: S2 (p. 80)
Engaging with our stakeholders (p. 15)
GRI 401: Employment
2016
401-1 New employee hires and employee turnover Social statements: S2 (p. 80)
401-3 Parental leave Social statements: S2 (p. 80)
Material topic: Employee upskilling, reskilling & employability
3-3 Management of material topics Foster an engaging culture & empowering ways of
working (p. 32)
Upskilling & reskilling our workforce (p. 33)
Sustainability governance (p. 98)
Social statements: S3 (p. 83)
Engaging with our stakeholders (p. 15)
GRI 404: Training and
Education 2016
404-1 Average hours of training per year per employee Social statements: S3 (p. 83)
404-2 Programs for upgrading employee skills and
transition assistance programs
Foster an engaging culture & empowering ways of
working (p. 32)
404-3 Percentage of employees receiving regular
performance and career development reviews
Performance review, development and career
coaching are closely linked to our culture. Our
performance review process 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 indicator (€) million invested in employee re- and up-
skilling in 2023
Foster an engaging culture & empowering ways of
working (p. 32)
Proximus Group Integrated annual report 2023156
Material topic: Diversity, equity & inclusion
3-3 Management of material topics Diversity and inclusion statement (p. 88)
Proximus governance model (p. 92)
Sustainability governance (p. 98)
The Compliance Program (p. 112)
Social statements: S2 (p. 80)
Engaging with our stakeholders (p. 15)
GRI 405: Diversity and
Equal Opportunity 2016
405-1 Diversity of governance bodies and employees Corporate governance statement (p. 92)
Social statements: S1 (p. 77)
405-2 Ratio of basic salary and remuneration of
women to men
Social statements: S2 (p. 77)
Material topics: ‘Digital inclusion: access, aordability & skills’ and ‘Local communities’
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
Promoting digital inclusion (p. 49)
Sustainability governance (p. 98)
Social statements: S6 (p. 87)
Engaging with our stakeholders (p. 15)
Risk management report (p. 300)
GRI 413: Local
Communities 2016
41 3-1 Operations with local community engagement,
impact assessments, and development
programs
Promoting digital inclusion (p. 49)
Social statements: S6 (p. 87)
413-2 Operations with significant actual and potential
negative impacts on local communities
Roll-out #1 gigabit network for Belgium (p. 25)
Material topic: Digital stress & safe products
3-3 Management of material topics Roll-out #1 gigabit network for Belgium (p. 25)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
Material topic: Data privacy, data security & cybersecurity
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
Building digital trust (p. 51)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
Private customer data (p. 114)
Operational risks (p. 309)
GRI 418: Customer
Privacy 2016
41 8-1 Substantiated complaints concerning breaches
of customer privacy and losses of customer
data
Proximus reported 3 personal data incidents to the
Belgian Data Protection Authority.
Own indicator Number of data subject requests handled Private customer data (p. 114)
Material topic: Workers in value chain, human rights
3-3 Management of material topics Act for an inclusive society and be sustainable in
everything we do (p. 45)
The Compliance Program (p. 112)
Sustainable supply chain (p. 114)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
GRI 414: Supplier Social
Assessment 2016
414-1 New suppliers that were screened using social
criteria
The Compliance Program (p. 112)
Sustainable supply chain (p. 114)
414-2 Negative social impacts in the supply chain and
actions taken
Proximus societal responsibility charter for fiber roll-
out (website)
Own indicator Number of on-site audits in collaboration with
JAC
Environmental statements: E5 (p. 65)
Proximus Group Integrated annual report 2023157
Material topic: Political engagement & lobbying activities
3-3 Management of material topics The Compliance Program (p. 112)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
Material topic: Climate change adaptation
3-3 Management of material topics Environmental risk and climate change (p. 306)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
Material topic: Employee health & safety
3-3 Management of material topics Foster an engaging culture & empowering ways of
working (p. 32)
Well-being at work (p. 34)
Sustainability governance (p. 98)
Social statements: S4 (p. 84)
Engaging with our stakeholders (p. 15)
Material topic: Working rights, fair pay & social dialogue
3-3 Management of material topics Foster an engaging culture & empowering ways of
working (p. 32)
Diversity & Inclusion statement (p. 88)
Human rights (p. 114)
Sustainability governance (p. 98)
Engaging with our stakeholders (p. 15)
Proximus Group Integrated annual report 2023158
SASB index
To ensure our identified priorities are aligned with the SASB
sector-specific topics we linked our material topics to the SASB
relevant topics for the Telecommunication Services industry.
See table below:
SASB topics Proximus Material topics Reference/Comments
Energy Management Energy
Climate change mitigation
Act for an inclusive society and be sustainable in everything we do (p. 45)
Environmental statements (p. 55)
Environmental risk and climate change (p. 306)
Customer privacy Data privacy, data security &
cybersecurity
Act for an inclusive society and be sustainable in everything we do (p. 45)
Building digital trust (p. 51)
Private customer data (p. 114)
Operational risks (p. 309)
Data Security Data privacy, data security &
cybersecurity
Engineer technology assets to enable digital ecosystems (p. 29)
Act for an inclusive society and be sustainable in everything we do (p. 45)
Building digital trust (p. 51)
Cyber Security Incident Response Team - CSIRT
Materials Sourcing & Eciency Circular economy & waste Act for an inclusive society and be sustainable in everything we do (p. 45)
Environmental statements (p. 55)
Competitive Behaviour Business conduct Role of compliance at Proximus (p. 112)
The Compliance Program (p. 112)
Consolidated financial statements (p. 160)
Risk management report (p. 300)
Systemic Risk Management Technology and innovation
Digital incluson: access
Local communities
Roll-out #1 gigabit network for Belgium (p. 25)
Operational risks (p. 309)
Proximus Group Integrated annual report 2023159
Consolidated
financial
statements
Integrated annual report 2023
Proximus Group 161 Integrated Annual Report 2023
Consolidated Financial
Statements
Prepared under International Financial Reporting Standards for each of the two years ended 31 December 2023 and 2022.
Consolidated Balance Sheet .............................................................................................................................................. ...................... ................................ ................ 163
Consolidated Income Statement .......................................................................................................................................................................................................... 164
Consolidated Statement of Comprehensive Income ............................................................................................ .......... ......... .......... .......... .......... .......... .......... . 165
Consolidated Cash Flow Statement .................................................................................................. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 1 6 6
Consolidated Statement of Changes in Equity ............................................................................................................................................................................. 168
Notes to the Consolidated Financial Statements ........................................................................................... ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 1 6 9
Note 1. Corporate information ....................................................................................................... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 1 6 9
Note 2. Material accounting policy information ........................................................................................... .................. ................. ................. .................. ............. 170
Note 3. Goodwill ............................................................................................................................................................................................................................................ 190
Note 4. Intangible assets with finite useful life .............................................................................................................................................................................. 194
Note 5. Property, Plant and Equipment ................................................................................................ ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 1 96
Note 6. Leases ................................................................................................................................................................................................................................................. 197
Note 7. Contract cost ................................................................................................................. .. ... .. ..... ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 1 99
Note 8. Investments in subsidiaries, joint operations, joint ventures and associates ................................................. ..... ..... ..... ..... ..... ..... ..... ..... ..... .. 2 00
Note 9. Equity investments measured at fair value ................................................................................................................................................................... 209
Note 10. Income taxes .................................................................................................................................................................................................................................210
Note 11. Assets and liabilities for pensions, other post-employment benefits and termination benefits ...................................................... 212
Note 12. Other non-current assets ..................................................................................................................................................................................................... 220
Note 13. Inventories ..................................................................................................................................................................................................................................... 220
Note 14. Trade receivables and contract assets ........................................................................................................................................................................... 221
Note 15. Other current assets ................................................................................................................................................................................................................ 224
Note 16. Non-current assets held for sale ...................................................................................................................................................................................... 224
Note 17. Cash and cash equivalents ...................................................................................................... ....... ........ ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... ...... 22 5
Note 18. Equity ................................................................................................................................................................................................................................................ 225
Note 19. Interest-bearing liabilities ....................................................................................................................................................................................................... 227
Note 20. Provisions ...................................................................................................................................................................................................................................... 234
Note 21. Other non-current payables ............................................................................................ ....... ........ ....... ........ ....... ....... ........ ....... ........ ....... ........ ....... .......... . 235
Note 22. Other current payables ......................................................................................................... ........ ....... ........ ....... .......... ....... ........ ....... ........ ....... ........ ....... ...... 23 5
Note 23. Net revenue ..................................................................................................................... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 23 6
Note 24. Other operating income ....................................................................................................... ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 23 9
Proximus Group 162 Integrated Annual Report 2023
Note 25. Costs of materials and services related to revenue........................................................................... .. ... .. ... .. ... .. ... .. .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. ... .. . 23 9
Note 26. Workforce expenses ........................................................................................................ ................. .................. ................. ................. .................. ................. 240
Note 27. Non-Workforce expenses ......................................................................................................... ............... ............. ............ ............ ............. ............ ............. ... 241
Note 28. Depreciation and amortization ......................................................................................... ............. ............ ............... ............ ............. ............ ............. ........ 241
Note 29. Net finance cost ......................................................................................................................................................................................................................... 242
Note 30. Earnings per share .................................................................................................................................................................................................................... 243
Note 31. Dividends paid and proposed .............................................................................................................................................................................................. 244
Note 32. Additional disclosures on financial instruments ........................................................................................................................................................ 244
Note 33. Related party disclosures ...................................................................................................................................................................................................... 258
Note 34. Rights, commitments and contingent liabilities .................................................................................................. ...................... ...................... ........... 261
Note 35. Share-based Payment ........................................................................................................................................................................................................... 265
Note 36. Relationship with the auditors ............................................................................................................................................................................................ 266
Note 37. Segment reporting .................................................................................................................................................................................................................... 266
Note 38. Recent IFRS pronouncements ........................................................................................................................................................................................... 269
Note 39. Post balance sheet events ................................................................................................................................................................................................... 269
Proximus Group 163 Integrated Annual Report 2023
Consolidated Balance Sheet
(EUR million)
As at 31 December
ASSETS Note 2022
2023
NON-CURRENT ASSETS 8,589
8,932
Goodwill 3 2,595
2,592
Intangible assets with finite useful life 4 1,779
1,702
Property, plant and equipment 5 3,531
3,834
Right-of-use assets 6 277
307
Lease receivable 7
10
Contract costs 7 111
111
Investments in associates and joint ventures 8 43
90
Deferred income tax assets 10 5
4
Equity investments measured at fair value 9 1
3
Pension assets 11 140
187
Other non-current assets 12 99
92
CURRENT ASSETS 1,952
2,220
Inventories 13 187
159
Trade receivables 14 938
866
Contract assets 14 137
167
Current tax assets 24
12
Other current assets 15 269
202
Cash and cash equivalents 17 299
716
Non-current assets held for sale 16 99
99
TOTAL ASSETS 10,541
11,153
LIABILITIES AND EQUITY Note
EQUITY 18 3,308
3,300
Shareholders' equity attributable to the parent 18 3,307
3,300
Non-Controlling interests 18 1
0
NON-CURRENT LIABILITIES 4,231
4,794
Interest-bearing liabilities 19 2,676
3,308
Lease liabilities 6 199
210
Liability for pensions, other post-employment benefits and termination benefits 11 361
337
Provisions 20 136
137
Deferred income tax liabilities 10 181
197
Other non-current payables non-interest-bearing 21 (*) 86
45
Other non-current payables interest-bearing 21 (*) 592
559
CURRENT LIABILITIES 3,002
3,059
Interest-bearing liabilities 19 588
611
Lease liabilities 6 73
88
Liability for pensions, other post-employment benefits and termination benefits 11 52
40
Trade payables (**) 1,483
1,433
Contract liabilities 22 127
126
Tax payables 16
58
Other current payables non-interest-bearing 22 (*) 638
666
Other current payables interest-bearing 22 (*) (**)
25
37
TOTAL LIABILITIES AND EQUITY 10,541
11,153
(*) "Other non-current payables" have been split into "Other non-current payables non-interest-bearing and interest-bearing"; "Other current payables" have been
split into "Other current payables non-interest-bearing and interest-bearing"
(**) The "Trade payables" that are interest-bearing payables have been reclassified into "Other current payables Interest-bearing"
Proximus Group 164 Integrated Annual Report 2023
Consolidated Income Statement
(EUR million) Note 2022
2023
Net revenue 23 5,853
5,993
Other operating income 24 60
56
Total income
5,914
6,048
Costs of materials and services related to revenue 25 -2,186
-2,198
Workforce expenses 26 -1,301
-1,343
Non-workforce expenses 27 -601
-722
Total operating expenses before depreciation and amortization -4,088
-4,262
Operating income before depreciation and amortization 1,826
1,786
Depreciation and amortization 28 -1,179
-1,185
Operating income 647
601
Finance income 4
10
Finance costs -53
-119
Net finance costs 29 -49
-110
Share of loss on associates 8.3 -20
-30
Income before taxes 578
461
Tax expense 10 -128
-104
Net income 450
357
Attributable to: 18
Equity holders of the parent (Group share) 450
357
Basic earnings per share (in EUR) 30 1.40
1.11
Diluted earnings per share (in EUR) 30 1.40
1.11
Weighted average nb of outstanding ordinary shares 30 322,552,465
322,442,197
Weighted average nb of outstanding ordinary shares for diluted earnings per share 30 322,552,465
322,442,197
Proximus Group 165 Integrated Annual Report 2023
Consolidated Statement of Comprehensive
Income
(EUR million) Note 2022
2023
Net income 450
357
Other comprehensive income:
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations 10
-5
Cash flow hedges:
Gain/(Loss) taken to equity 204
-14
Transfer to profit or loss for the period 0
-4
Total before related tax effects 215
-22
Cash flow hedges:
Gain/(Loss) taken to equity -51
3
Transfer to profit or loss for the period 0
1
Income tax relating to items that may be reclassified -51
4
Total of items that may be reclassified to profit and loss - net of related tax effects 163
-18
Items that will not be reclassified to profit and loss
Remeasurement of net defined benefit obligations 11 125
50
Total of items that will not be reclassified to profit and loss 125
50
Total before related tax effects 125
50
Related tax effects
Remeasurement of net defined benefit obligations -19
-12
Income tax relating to items that will not be reclassified -19
-12
Total of items that will not be reclassified to profit and loss, net of related tax effects 106
38
Total comprehensive income 719
377
Attributable to:
Equity holders of the parent 719
378
Pr
oximus Group 166 Integrated Annual Report 2023
Consolidated Cash Flow Statement
As at 31
December
(EUR million) Note
2
022
2023
Cash flow from operating activities
Net income 450
357
Adjustments for:
Depreciation and amortization 4/5/6 1,179
1,185
Increase / (decrease) of provisions 20 -19
2
Deferred tax expense/ (income) 10 -24 8
Loss / (gain) from investments accounted for using the equity method 8.3 20
30
Fair value adjustments on financial instruments 29 1
-2
Adjustments for finance cost and (income)
29 0
-1
Loss / (gain) on disposal of other participating interests and enterprises accounted for
using the equity method
0
9
Loss / (gain) on disposal of property, plant and equipment 24 -4 -6
Operating cash flow before working capital changes 1,602
1,581
Change in:
Inventories -55 28
Trade receivables -62
74
Other assets 120
-78
Trade payables 52
10
Other liabilities 92
37
Net liability for pensions, other post-employment benefits and termination benefits 11 -31 -32
Decrease/(increase) in working capital, net of acquisitions and disposals of subsidiaries
116
39
Net cash flow provided by operating activities 1,717
1,620
Cash flow from investing activities
Cash paid for acquisitions of intangible assets and property, plant and equipment 4/5 -1,441 -1,453
Cash paid for acquisitions of, and loan granted to other participating interests 8.4 -30
-90
Cash paid for acquisition of consolidated companies, net of cash acquired 8.4 -3
0
Net Cash received from sales of property, plant and equipment and other non-current
assets
13
33
Net cash used in investing activities -1,461
-1,510
Cash flow before financing activities 256
110
Lease payments excluding interest paid 6 -89
-92
Free cash flow 167
18
Cash flow from financing activities other than lease payments
Dividends paid to shareholders 31 -387
-387
Dividends to and transactions with non-controlling interests 18.2 2
0
Net Sale/ (purchase) of treasury shares -5 2
Proximus Group 167 Integrated Annual Report 2023
Asset financing arrangement issuance 19.3 65
0
Asset financing arrangement repayment 19.3 -18
-10
Cash received for matured cash flow hedge instrument related to long term debt 0
132
Debt issuance (2) 19.3 477
1,239
Debt repayment (2) 19.3 -252
-577
Cash flows used in financing activities other than lease payments -119
399
Exchange rate impact 1
-1
Net change of cash and cash equivalents 50
417
Cash and cash equivalents at 1 January 249
299
Cash and cash equivalents at the end of the period 17 299
716
Additional information
(A) Net cash flow from operating activities includes the following cash movements :
Interest paid -51
-101
Interest received 2
8
Income taxes paid -4
-49
(B) 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
(2) Debt includes non-current and current debts
Proximus Group 168 Integrated Annual Report 2023
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
trans- lation
Stock
Compen-
sation
Retained
Earnings
Share'rs'
Equity
Non-control.
interests
Total Equity
Balance as at 1 January 2022 1,000
-422
100
-7
-102
7
0
2,403
2,978
0
2,978
Total comprehensive income and expense 0
0
0
154
106
10
0
450
719
0
719
Dividends to shareholders (relating to 2021) 0
0
0
0
0
0
0
-226
-226
0
-226
Interim dividends to shareholders (relating to 2022) 0
0
0
0
0
0
0
-161
-161
0
-161
Acquisition of Non-Controlling interests 0
0
0
0
0
0
0
2
2
1
3
Treasury shares
Sale of treasury shares 0
-3
0
0
0
0
0
-2
-5
0
-5
Stock options
Stock forfeited 0
0
0
0
0
0
0
0
0
0
0
Total transactions with equity holders 0
-3
0
0
0
0
0
-388
-390
1
-390
Balance as at 31 December 2022 1,000
-425
100
147
4
16
0
2,465
3,307
1
3,308
Total comprehensive income 0
0
0
-13
38
-5
0
357
378
0
377
Dividends to shareholders (relating to 2022) 0
0
0
0
0
0
0
-226
-226
0
-226
Interim dividends to shareholders (relating to 2023) 0
0
0
0
0
0
0
-161
-161
0
-161
Treasury shares
Sale of treasury shares 0
6
0
0
0
0
0
-4
2
0
2
Total transactions with equity holders 0
6
0
0
0
0
0
-391
-385
0
-385
Balance as at 31 December 2023 1,000
-419
100
134
42
11
0
2,432
3,300
0
3,300
Proximus Group 169 Integrated Annual Report 2023
Notes to the consolidated financial statements
Note 1. Corporate information
The consolidated financial statements at 31 December 2023 were authorized for issue by the Board of Directors on 22th February
2024. 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, Scarlet and Mobile
Vikings 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 11,654 at 31 December 2023 and 11,634 at 31
December 2022. For the year 2023, the average headcount of the Group was 160 management personnel and 11,490 employees; for
the year 2022 the average headcount of the Group was 168 management personnel and 11,361 employees.
Proximus Group 170 Integrated Annual Report 2023
Note 2. Material accounting policy information
Note 2.1. Basis of preparation
The accompanying consolidated financial statements as of 31 December 2023 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.
Note 2.2. Changes in accounting policies
The Group does not anticipate the change in the application of standards and interpretations. The accounting policies applied are
consistently with those of the previous financial years and applied the new or revised IFRS standards and interpretations as adopted by
the European Union that became mandatory on 1 January 2023 and that are detailed as follows.
New standards and Amendments to standards:
IFRS 17 - Insurance Contracts (and related amendments such as Amendments to IFRS 4 Insurance contracts)
Extension of the Temporary Exemption from Applying IFRS 9)
Amendments to IAS 1 - Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies
Amendments to IAS 8 - Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
Amendments to IAS 12 - Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
Amendments to IAS 12 – International tax reform - Pillar Two Model Rules
The adoption of these new and amended standards has limited impact on the financial statements of the Group.
The Group has adopted the amendments to IAS 1 with regard to disclosures of accounting policies with material accounting policy
information. The amendments replace significant accounting policies by material accounting policy information. The amended standard
considers that an accounting policy information is material if, when considered together with other information included in an entity’s
financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial
statements make on the basis of those financial statements. Accounting policy information that relates to immaterial transactions,
other events or conditions is immaterial and need not to be disclosed.
According to IFRS 17, the Group is mainly self-insurer except for the handsets insured that meet the criteria of fixed fee contracts for
which IFRS 15 is applied.
Pillar Two
The Pillar Two Model Rules released on 20 December 2021 are part of the Two-Pillar Solution to address the tax challenges of the
digitalisation of the economy that were agreed by 137 member jurisdictions of the OECD/G20 Inclusive Framework on BEPS and
endorsed by the G20 Finance Ministers and Leaders in October 2021. The Pillar Two Model Rules are designed to ensure large
multinational enterprises (MNEs) pay a minimum level of tax on the income arising in each jurisdiction where they operate.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where the Group is active, including in Belgium
where the Group is headquartered. The legislation will be effective for the Group’s financial year beginning 1 January 2024.
IAS 12 has been amended and now includes a temporary exception to recognising and disclosing information about deferred tax assets
and liabilities that are related to tax law that is enacted or substantively enacted to implement the Pillar Two legislation. The Group
applies this temporary exception.
Proximus Group 171 Integrated Annual Report 2023
The Group assessed the Group's potential exposure to Pillar Two income taxes using the most recent tax filings, Country-by-Country
Reporting and financial statements for the constituent entities in the Group. Considering final FY23 data was not yet available at the
moment of the assessment, the Group made an assessment of the Group's potential exposure to Pillar Two using the FY22 tax filings,
Country-by-Country Reporting and financial statements for the constituent entities in the Group excluding future acquisitions, including
the potential Route Mobile transaction. This potential transaction, which would bring new jurisdictions into the Group with potential
impacts, is not part of the current assessment.
The Group's assessment indicates that:
The Group is in scope of the enacted or substantively enacted legislation, given its consolidated revenues.
In most of the jurisdictions, the Simplified Pillar Two effective tax rate is above 15% and/or at least one of the other
Transitional CbCR Safe Harbour tests is met (Routine Profits test and/or the Simplified De-Minimis test).
There are only a limited number of jurisdictions where the Transitional CbCR Safe Harbour relief does not apply. However, the
Group does not expect a material Pillar Two top-up tax exposure in those jurisdictions.
Note 2.3. Operating segments
The Group’s operating segments are the Group’s components whose operating results are regularly reviewed by its Leadership Squad,
the Group’s chief operating decision makers (CODM), to make decisions about resources to be allocated to the segments and assess the
performance.
The internal profitability reports, that are regularly reviewed by the CODM to allocate resources to segments and assess performance,
are organised based on the nature of products and services provided and geographical area. As a result, the Group operating segments
are defined 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.
Note 2.4. 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.
Note 2.5. 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.
Proximus Group 172 Integrated Annual Report 2023
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 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.
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.
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. Unrealised profits and losses are eliminated to the extent of Proximus interest in the entity.
Note 2.6. 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.
Proximus Group 173 Integrated Annual Report 2023
Note 2.7. 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 potential risks and opportunities associated with climate change to which the Group is exposed, as well as broader sustainability
considerations, are presented in the Group's non-financial statements. Based on the information currently available to it, management
has exercised its judgment in concluding that the main areas potentially affected by climate change, i.e. the useful life of the Group's
assets and provisions, are currently and in the short term not significantly affected. These judgments are monitored on an ongoing basis
as part of the Group's risk management process, given that the future impacts of climate change depend on environmental, regulatory,
and other factors beyond the Group's control, not all of which are currently known.
Note 2.8. 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.
Assessment of control on entities incorporated in the context of fiber network deployment
In the context of 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, Proximus co-created three
separate companies, Fiberklaar, Unifiber and Glasfaser Ostbelgien, to help it accelerating the fiber roll-out in respectively Flanders,
Wallonia and in the German-speaking Community.
These three companies have for business to engineer, design, build, maintain, upgrade, own, deploy, run and market a passive
wholesale Point-to-Point Fiber-To-The-Home network in the Footprint (the "FTTH Network"), with a minimum rollout speed, a
coverage ambition for the defined footprint, certain technical qualities (speed, capacity…). The networks to be built will be open and
neutral, i.e. available to all Service Providers under non-exclusive and non-discriminatory terms to allow Service Providers
(Proximus for instance) to compete on downstream markets.
In its assessment of the type of control its exercises on these companies (control alone, joint control or significant influence),
Proximus identified what the companies’ relevant activities were, how the decisions about these activities were taken and whether
it obtained variable return from its interaction with them, via, among others, the exercise of its voting rights. Other facts and
circumstances were also considered in the assessment, such as the companies’ social purposes, the nature of the companies’ other
shareholders, the existence of pre-agreed and negotiated contexts and the companies’ dependency to their shareholders as
sources of cash flows contributing to the continuity of their operations.
Proximus concluded that it was not controlling alone those three entities as the decisions about the activities identified as relevant
within the context of the arrangements signed with the co-investors are not taken alone by Proximus. These decisions were about
essentially the approval of the budget, the appointment and dismissal of senior management, the commercialization of the offer,
the building of the network. Furthermore, Proximus expected, based on the information available to it when it concluded that it was
not controlling these entities, that it would not substantially be the only source of cash flows contributing to the continuity of the
operations of the arrangements by these entities.
Proximus Group 174 Integrated Annual Report 2023
On that basis, the Group concluded that the investments in Fiberklaar, Unifiber and Glasfaser Ostbelgien, qualify currently and
respectively as associate, joint venture and associate. These conclusions are monitored periodically to the light of those criteria,
underlying facts, governance and existing agreements between shareholders or with the companies.
Note 2.9. Key sources of estimation uncertainty
Claims and contingent liabilities and assets (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 Group
considers that estimating useful life is a major source of uncertainty, particularly for tangible and intangible assets whose useful life
is particularly sensitive to technological evolution and the Group's strategic decisions. The Group regularly monitors economic,
strategic and technological indicators in order to adjust useful lives where necessary. The effect of changes in useful life are
recognized prospectively.
Note 2.10. Foreign currency translation
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.
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.
Note 2.11. 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
Proximus Group 175 Integrated Annual Report 2023
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.
Note 2.12. 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.
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
is allocated 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.
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.
Note 2.13. Intangible assets with finite useful life
Intangible assets consist primarily of the Global System for Mobile communication (“GSM”) license, the Universal Mobile
Telecommunication System (“UMTS”) license, 4G and 5G spectrum 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 and subsequently stated at cost less
accumulated amortization and impairment losses. 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 residual value of such intangible assets is assumed to be zero.
The Group capitalizes:
The football broadcasting rights, and all other multi-seasonal sport broadcasting rights, for the full contract duration together
with the recognition of the corresponding liability (for the full contract duration)
For contracts with other TV channels, the costs for the total contract duration, as the content is deemed to be sufficiently
identifiable (a major part of the content is already produced) for the non-cancellable duration of the contract (generally 18
months-3 years)
Proximus Group 176 Integrated Annual Report 2023
Certain costs incurred in connection with developing or purchasing software for internal use and certain media production costs
when they are identifiable, when the Group controls the asset and when future economic benefits from the asset are probable
The unique licence fee (fixed amount) due in connection with the spectrum licences granted to Proximus.
The Group considers the annual fees due in connection with the spectrum licences granted to Proximus to be variable (contingent)
payments and therefore expenses them as incurred. The net present value of these annual fees is disclosed in note 34.
The Group enters 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 that 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 company continues to monitor the related accounting rules and guidance in this domain where there is limited authoritative
literature.
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, 4 G and 5G spectrum 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 Over the license period SPECTRUM 2600 MHZ 15 SPECTRUM 800 MHZ 20 SPECTRUM 1800 MHZ 2G 20 SPECTRUM 2100 MHZ 3G 20 SPECTRUM 900 MHZ 20 SPECTRUM 1400 MHZ 20 SPECTRUM 700 MHZ 20 SPECTRUM 3600 MHZ 17 years 8 months Customer bases, trade names, patents 3 to 20 and software acquired in a business combination Software 5 Broadcasting rights for sport seasons Over the contract period Rights to use, and other broadcasting rights Over the contract period (usually from 2 to 5)
Pro
ximus Group 177 Integrated Annual Report 2023
The amortization period and the amortization met
hod 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.
Note 2.14. 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)Land and buildings Land Indefinite Buildings and building equipment 22 to 33 Facilities in buildings 3 to 10 Leasehold improvement and advertising equipment 3 to 10 Technical and network equipment Cables and ducts 15 to 20 Switches 8 to 10 Transmission 6 to 8 Radio Access Network 6 to 7 Mobile sites and site facility equipment 5 to 10 Equipment installed at client premises 2 to 8 Data and other network equipment 2 to 15 Furniture and vehicles Furniture and office equipment 3 to 10 Vehicles and smartcables 3 to 10
T
he 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.
Assets and associated liabilities classified as held for sale
The Group classifies assets (or disposal group) as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through a continuing use. This condition is met when the asset (or disposal group) is available for immediate sale
Proximus Group 178 Integrated Annual Report 2023
in its present condition, the sale is highly probable and expected to occur within one year. Assets and associated liabilities held for sale
(or disposal group) are recorded at the lower of their carrying value or fair value less costs to sell and are classified as current assets.
The Group no longer amortizes non-current assets classified as held for sale.
Note 2.15. 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.
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.
Note 2.16. 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.
Note 2.17. 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.
Proximus Group 179 Integrated Annual Report 2023
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.
Note 2.18. 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.
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.
Note 2.19. 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.
Proximus Group 180 Integrated Annual Report 2023
Note 2.20. Financial instruments
Note 2.20.1. 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
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.
Note 2.20.2. 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.
Proximus Group 181 Integrated Annual Report 2023
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
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, except for those to which hedge accounting is applied.
Note 2.20.3 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 Group 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.
The same methodology is applied for contract assets.
TeleSign calculates the expected credit losses for trade receivables based on a combination of factors considering historical
losses adjusted for current market conditions, customer’s financial condition, disputes, the current aging and incorporating
relevant forward-looking data.
BICS considers experience and reasonable and supportable information about future expectations to define provision rates on
an individual case basis. Following indicators are used by BICS:
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
Proximus Group 182 Integrated Annual Report 2023
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.
Note 2.20.4. 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.
Note 2.20.5. 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 calculated using the market interest rates at the reporting date.
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.
Note 2.20.6. 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.
Note 2.21. Trade receivables
Trade receivables are measured in the balance sheet at amortized costs (SPPI model applies) less any allowance for expected credit
losses.
Proximus Group 183 Integrated Annual Report 2023
Note 2.22. 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.
Note 2.23. 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.
Note 2.24. 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 options to reduce its risks associated
with interest rates fluctuations related to future bonds emissions and 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).
The group used:
An IRCS to reduce the Group exposure to interest rate and foreign currency fluctuations on a long-term debt denominated in
JPY
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
A zero-cost collar swaption to protect the value of its existing pre-hedging interest rate swap against interest rates fluctuations
When these hedging instruments are designated in a cash flow hedge relationship, the effective portion of changes in their fair value is
recognized in other comprehensive income and gradually reclassified to profit or loss through financial result, in the same period during
which the hedged item hits the Group profit or loss through the interests paid. The derivatives to which the Group does not apply hedge
accounting are consequently carried at fair value, with changes in fair value recognized in profit or loss through financial result.
The 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 contingent foreign exchange forward transaction to limit its exposure to the variability in cash flows that is
attributable to the currency risk related to a highly probable future transaction (business combination) that will be settled in
foreign currency. The Group applies hedge accounting to this hedging transaction. The changes in intrinsic value are recognized
in the cash flow hedge reserve (OCI), while the changes in time value and forward element are recognised in the cost of
hedging reserve (OCI).
Proximus Group 184 Integrated Annual Report 2023
The Group contracted derivatives (forward foreign exchange contracts) to hedge its exposure to currency fluctuations for highly
probable forecasted transactions. The Group applied cash flow hedge accounting for part of these hedging transactions.
For hedging transactions to which the Group does not apply hedge accounting, the derivatives are consequently carried at fair
value, with changes in fair value recognized in profit or loss through financial result. When the underlying is recognized in the
balance sheet and relates to costs recorded in operating income or to capitalized expenditures, the changes in fair value
recognized in profit or loss are reclassified to the operating income when the hedging instrument matures.
For hedging transactions to which hedge accounting is applied, the effective portion of the gains and losses on the hedging
instrument is recognized via other comprehensive income until the hedged transaction occurs. If the hedged transaction leads
to the recognition of an asset, the carrying amount of the asset at the time of initial recognition is adjusted with the amount
previously recognized via other comprehensive income. If the hedge transaction relates to costs recorded in operating income,
the amount previously recognized via other comprehensive income are reclassified in operating income when the costs related
to the underlying service are recognized in profit and loss. The ineffective portion of a cash flow hedge is always recognized in
profit or loss.
The Group applied 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).
The Group entered into a Virtual Power Purchase Agreement where it pays a fixed price and receives the spot price for a contractually
specified part of the electricity produced by a specific offshore wind farm. The purchase of the electricity is virtual meaning that there is
no physical delivery of the power being purchased (net settlement in cash). The objective of the transaction is to reduce the Group’s
exposure to the volatility of the electricity price and at the same time to receive several Energy Attribute Certificates (EACs)
corresponding to the agreed upon green electricity volume. Derivatives embedded in non-derivative host contracts that are not financial
assets are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely
related to those of the host contract and the host contract is not measured at fair value through profit or loss. The Group considers the
VPPA as a hybrid instrument with a non-financial host contract for the purchase of the EACs and an embedded derivative related to
power. As the power component of the hybrid contract is not closely related to the host contract, it is measured separately and at Fair
Value through P&L. The purchase of EACs qualify for own use exemption and the related costs are expensed as the EACs are received.
Note 2.25. Net gains and losses on financial instruments
Dividends, interest income and interest charges arising from financial instruments are posted to the finance income (costs).
Note 2.26. 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 delivered at contract inception
and which revenue is recognized at a point in time and services to be delivered over the duration of the contract, usually 24 months, the
revenue of which being recognized over the duration of the contract. 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.
Proximus Group 185 Integrated Annual Report 2023
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.
Note 2.27. 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.
Note 2.28. 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.
For some contracts, 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.
Note 2.28.1. 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 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. 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.
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) and bikes
Proximus Group 186 Integrated Annual Report 2023
Other: primarily consists of ICT equipment and cloud infrastructure from partnership with HCL
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.
Advances paid on top of the scheduled reimbursements are deducted for the long term debt
The lease liabilities are included in Interest-bearing loans and borrowings (see Note 19).
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.
Note 2.28.2. 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 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 Group 187 Integrated Annual Report 2023
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 material
finance lease out contracts.
Note 2.29. Provisions
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.
Note 2.30. 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 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.
Note 2.31. 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.
Note 2.32. Revenue
When Proximus enters a new contract, it determines the contract duration, the transaction price, the performance obligations included
in the contract and the stand-alone selling price for each promise identified.
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).
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
Proximus Group 188 Integrated Annual Report 2023
goods or services that are substantially the same and that have the same pattern of transfer to the customer. Identifying the
performance obligations requires judgment and a thorough understanding of the contract promises and how they interact with each
other.
Performance obligations are identified when following criteria 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 fulfils 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
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). To assess whether it acts as principal or agent
in a
transaction, when another party is involved, Proximus determines whether it controls the goods and services before they are transferred
to its end customer. To this extent, Proximus analyses the legal terms of the contracts and their substance through the prism of the
indicators of control. Proximus takes also into consideration other facts and circumstance to complete its understanding of the situation.
When the Group acts as agent the commission only is recognized in revenue.
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
Proximus Group 189 Integrated Annual Report 2023
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.
Note 2.33. 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.
Proximus Group 190 Integrated Annual Report 2023
Note 3. Goodwill
(EUR million) Goodwill As at 31 December 2021 2,588 Purchase price allocation of Mobile Vikings 1 Effect of movements in foreign exchange 6 As at 31 December 2022 2,595 Effect of movements in foreign exchange -4 As at 31 December 2023 2,592
Compared to year-end 2022 the goodwill decreased by EUR 4 million due to the USD/EUR conversion of the TeleSign. 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.
As at 31 December 2023, all businesses acquired were fully allocated to one single operating segment, to the exception of the goodwill
allocated to BICS and TeleSign. The goodwill arising on the acquisition of control of TeleSign by BICS has been allocated in 2021
between BICS and TeleSign in proportion to the synergies expected from the business combination for each of the two companies
individually. These synergies were identified at the date of the takeover of TeleSign by BICS.
The carrying amount of the goodwill is allocated to the operating segments as follows:
As at 31 December (EUR million) 2022 2023 Domestic 2,188 2,188 International Carrier Services 299 299 TeleSign 109 105 Total 2,595 2,592
Goodwill Impairment Test outcome
General comments
The valuation of the different segments is performed essentially on basis of a discounted free cash flow method (income valuation
technique). The cash flows considered are those of the FCF Three-Year Plan (2024 - 2026) presented by the management to the
December 2023 Group Board of Directors for approval. Subsequent years were extrapolated based on growth rates that are specific to
each segment.
Some of the markets in which the Group operates are undergoing significant change. Extrapolating cash flow projections beyond the
three-year period using a steady rate might not accurately reflect mid to long term benefits. If deemed appropriate, the Group extends
its three-year plan by subsequent years to capture all relevant impacts.
Proximus Group 191 Integrated Annual Report 2023
Management is confident that its projections are reliable and can demonstrate its ability, based on past experience, to accurately
forecast cash flows over longer periods. Management is, however, aware that events outside its control may affect the accuracy of its
projections.
The Group reviews annually the growth rate and the weighted average costs of capital in the light of the market economics.
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 reliability of the impairment test outcome depends on the accuracy of the budgeting exercises on which it is based. The Group's FCF
Three-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 Group estimates a separate post-tax weighted average cost of capital for each segment. It takes into consideration:
The specificities of the segment activities. These specificities are different enough from one segment to another one to justify
separate calculations.
The relative weight of the segment capital structure components, including a risk premium specific to its inherent risks.
Other risks, such as the country risk, market risk & industry risk, 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 segment, considered for the purpose of the exercise as a separate entity.
TeleSign
The recoverable amount of TeleSign has been estimated based on its value in use.
The cash flows considered are those of the Free Cash Flows (FCF) Three-Year Plan (2024 - 2026) presented by the management to
the December 2023 Group Board of Directors. TeleSign operates in a growing market in both CPaaS and Digital Identity and
management believes the medium-term growth is higher than the long term-growth. Consequently, for the purposes of impairment
testing, the valuation exercise was extended by a further six years (until 2032). The cash flows generated over these six additional years
were assumed to grow at a Compound Annual Growth Rate (CAGR) of 33 %, The terminal value, calculated from 2032 onwards,
assumed a growth rate of 2.0%. All these assumptions taken together result in an implicit growth rate of 8.52% applied to the terminal
value calculated from 2027 onwards.
The Free Cash Flows for the period 2024 to 2032 were discounted on basis of a post-tax weighted average costs of capital of 10.86%
(9.70 % in 2022).
The key variables influencing Telesign value in use are:
The direct margin and EBITDA, which are mainly impacted by the transaction volumes for identity and communication
solutions and the mobile network termination prices, as these affect production costs and the overall pricing of TeleSign
solutions.
The long-term growth
The post-tax weighted average cost of capital (WACC).
Sensitivity analyses performed revealed that no reasonable possible changes in the key assumptions would reduce the value in us
e to
be equal to the carrying amount.
The pre-tax weighted average costs of capital were 12.15% in 2023 and 12.36 % in 2022.
Proximus Group 192 Integrated Annual Report 2023
BICS
The recoverable amount of BICS has been estimated based on its value in use.
The key variables used in determining BICS value in use were:
The direct margin
The capital expenditures
The long-term growth rate
The post-tax weighted average cost of capital (WACC)
BICS direct margin is highly sensitive to its voice and messaging activities, transaction volumes, mobile network termination
prices and market prices for terminating the traffic in the different countries, as well as to the pricing of mobility and capacity
products.
The valuation model assumes a growth rate of 0.0%, unchanged compared to 2022, for the years beyond the years covered by the
FCF Three-Year Plan (2024 - 2026) presented by the management to the December 2023 Group Board of Directors.
The calculated post-tax weighted average costs of capital for BICS were 10.26% in 2023 and 9.70 % in 2022. The pre-tax weighted
average costs of capital were 13.52 % in 2023 and 12.36 % in 2022.
Sensitivity analyses performed revealed that no reasonable possible changes in the key assumptions would reduce the value in use to
be equal to the carrying amounts.
Domestic
The recoverable amount of Domestic has been estimated based on its value in use.
The cash flows considered are those of the Free Cash Flows (FCF) Three-Year Plan (2024 - 2026) presented by the management to
the October 2023 Group Board of Directors for approval. However, to better capture the expected long-term positive effects of the
ongoing roll-out fibre project, management considered a period of 14 years for the fibre related free cash flows, followed by a terminal
value for the years thereafter. This extended period considers the time required to deploy the fibre optic network and to realize the
positive effects of customer migration to the new network. These free cash flows are mainly a mix between the direct result of the long-
term business plans negotiated with the co-owners of the entities specifically created to accelerate the rollout of optical fibre (see note
8.3) and the two most likely scenarios for the continued rollout of optical fibre, with or without consideration of the BIPT council
communication of 10 October 2023 on possible cooperation agreements to roll out of a fiber network in Belgium. The weights assigned
to each of the two scenarios reflect their probability of occurrence.
The free cash flows projections are impacted by following key parameters:
The fiber deployment speed
The speed of customer migration to the fiber network
The Group ability to monetize the fiber investments (ability to upsell the average revenue per customer, to win-back market
share and to attract other OLOs as wholesale customers)
The size and importance of comparable fiber networks
Fiber roll-out building costs, including impact of inflation and level of interest rates
The funding policy of the JVs and the related equity injections from their shareholders
The free cash flow is also dependent to
The post-tax weighted average cost of capital (WACC)
The growth rate in the terminal value
Proximus Group 193 Integrated Annual Report 2023
The valuation model assumes following growth rates for the Domestic EBITDA (Earnings Before Interests, Taxes, Depreciation and
Amortization) segment:
For the years 2024 to 2026, a compound annual growth rate of 1.10% (0.24 % in 2022 for the years 2023 to 2027)
For the years 2027 to 2037, for the fibre related activities, a compound annual growth rate of 1.52% (1.96% in 2022 for the
years 2028 to 2037)
The terminal value (calculated for the years after 2027 for the non-fiber activities and after 2037 for the fiber related activities) was
based on a free cash growth rate of 0.43 %, unchanged from 2022. The combination of all these assumptions resulted in an implied
free cash flows growth rate for the years beyond the FCF Three-Year Plan (fiber and non-fiber related activities) of 1.36%.
Assumptions made regarding these parameters are based on Proximus experience, the learning curve and available market information
(interest rates, inflation, and European benchmarks on “Fiber-To-The-Home” networks).
Based on the information available to it, management is confident that its projections beyond the Three-Year Plan are reliable because
they are based on realistic and achievable assumptions. The evolution of these parameters will be closely monitored. Management
understands that, in the current volatile market environment, deviations could occur despite the remedies that will be taken to address
them.
To capture these risks, an additional 1.0 % size risk premium (0.5% in 2022) was included in the cost of equity. These changes were
taken to reflect the current exceptional market conditions but do not constitute a permanent change in the calculation methodology per
se. As a result, the calculated post-tax weighted average costs of capital for Domestic amounted to 5.55% in 2023 (5.63 % in 2022).
The pre-tax weighted average costs of capital were 6.82% in 2023 and 6.86 % in 2022.
Next to these specific considerations, 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.
Taking into account all the inputs and assumptions listed above, the impairment test of the Domestic segment showed an excess of EUR
1.4 billion at December 31, 2023 of the segment recoverable amount over its carrying amount.
A sensitivity analysis performed on following key parameters, each taken separately (i.e. all other variables being unchanged), show that
Domestic recoverable value equals its carrying amount with
a post-tax weighted average costs of capital of 6.5%
an implied growth rate in the terminal value of 0.46%
While each of these parameters taken in isolation is unlikely to lead to an impairment of the goodwill allocated to the Domestic
segment, an unfavourable combination of several of these parameters could result in an impairment. Such as, if WACC would increase
by 0.5% and the implied growth rate would decrease to 1%, there would be an immaterial impairment.
Proximus Group 194 Integrated Annual Report 2023
Note 4. Intangible assets with finite useful life
Other Intangible intangibles Customer Fixed & Software and (EUR million) Licenses base & TV rights Total Mobile applicationsIntangibles trade namenetworkunder constructionCost As at 1 January 2022 427 934 553 566 2,521 98 5,098 Additions 618 2 29 86 281 15 1,032 Acquisition of subsidiary 0 3 0 0 0 0 3 Derecognition -150 0 -21 -4 -83 -9 -268 Reclassifications 0 0 0 -11 14 -1 2 Foreign exchange adjustment 0 5 0 0 1 0 6 As at 31 December 2022 895 945 561 637 2,734 103 5,874 Additions 0 0 106 61 264 19 450 Derecognition -134 0 -43 -31 -48 -6 -261 Reclassifications 0 0 0 1 2 -2 0 Foreign exchange adjustment 0 -3 0 0 -1 0 -4 As at 31 December 2023 761 941 624 667 2,951 113 6,058 Accumulated amortization and impairment As at 1 January 2022 -326 -797 -269 -404 -1,969 -68 -3,833 Amortization charge for the year -35 -54 -137 -63 -225 -11 -525 Derecognition 150 0 21 4 83 9 267 Reclassifications 0 0 0 11 -12 0 -1 Foreign exchange adjustment 0 -2 0 0 0 0 -3 As at 31 December 2022 -211 -854 -384 -452 -2,124 -70 -4,095 Amortization charge for the year -37 -21 -142 -74 -240 -11 -525 Derecognition 134 0 43 31 48 6 261 Foreign exchange adjustment 0 2 0 0 1 0 3 As at 31 December 2023 -114 -873 -483 -495 -2,316 -75 -4,356 Carrying amount as of 31 December 684 91 176 185 610 32 1,779 2022 Carrying amount as of 31 December 647 69 141 172 635 38 1,702 2023
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”).
Proximus Group 195 Integrated Annual Report 2023
The Group possesses the following licenses in Belgium and Luxembourg.
Year of Acquisition Net book Start of Description Period Payment method acquisition value value Amortization (EUR million) 2011 4G 20 5 2012-2027 completed 7/1/2012 2013 800 Mhz spectrum 120 59 2013-2033 completed 11/30/2013 2022 SPECTRUM 1800 MHZ 2G110 104 2023-2043 over the period 1/1/2023 2022 SPECTRUM 2100 MHZ 3G145 137 2023-2043 over the period 1/1/2023 2022 SPECTRUM 900 MHZ 57 55 2023-2042 over the period 1/1/2023 2022 SPECTRUM 1400 MHZ 109 106 2023-2043 over the period 7/1/2023 2022 SPECTRUM 700 MHZ 123 115 2022-2042 over the period 9/1/2022 2022 SPECTRUM 3600 MHZ 56 52 2022-2040 over the period 9/1/2022 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 4 2020-2035 upfront+yearly 10/1/2020 2020 3600Mhz spectrum 8 6 2020-2035 upfront+yearly 10/1/2020 Total 761 647
The first phase of the spectrum auction, organized by regulator BIPT, concluded on 20th June 2022. Proximus acquired substantive
spectrum rights in the 900 MHz, 1800 MHz and 2100 MHz band, as well as in the newly auctioned 700 MHz and 3600 MHz bands,
essential for a large-scale 5G deployment. These spectrum licenses represent a total investment of EUR 491 million for a period of 20
years (18 years for the 3600 MHz band) which is recognized as intangible fixed asset and payable by annual installments over the same
period. In addition to this spectrum package Proximus secured on the 20th of July 2022 45 Mhz of spectrum in the 1400 MHz band for
a total investment of EUR 109 million for a period of 20 years.
The customer bases, trade names and patents were recognized mainly because of the purchase price allocation performed when the
Group acquired control over Bics, Telesign and Mobile Vikings.
In 2023, the Group acquired TV rights for an amount of EUR 106 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.
Proximus Group 196 Integrated Annual Report 2023
Note 5. Property, Plant and Equipment OthertangibleNetworkforLandandMobileTechnicalassetsandassets(EURmillion)FixedNetworkconvergedTotalbuildingsNetworkequipmentunderservicesconstructionCost Asat1January2022 541 9,091 1,535 37 1,342 265 12,812Additions 6 682 100 3 85 13 891 Derecognition -18 -446 -158 0 -88 -10 -720 Classified as held for sale -364 0 0 0 -18 0 -383 Reclassifications 0 0 0 0 4 -5 -2 Exchange adjustment 0 0 0 0 1 0 1 Asat31December2022 166 9,327 1,477 40 1,325 263 12,599Additions 6 669 103 2 88 12 878 Derecognition -17 -541 -593 0 -122 -130 -1,402 Reclassifications 0 0 4 0 5 -9 0 Asat31December2023 155 9,455 991 43 1,296 136 12,075AccumulateddepreciationandimpairmentAsat1January2022 ‐337 ‐6,634 ‐1,237 ‐24 ‐1,025 ‐244 ‐9,500Depreciation charge for the year -9 -335 -103 -4 -111 -7 -569 Derecognition 16 449 158 0 84 10 717 Subsidiaries reclassified as held for sale 272 0 0 0 12 0 284 Reclassifications 0 0 0 0 1 0 1 Asat31December2022 ‐59 ‐6,519 ‐1,182 ‐28 ‐1,040 ‐240 ‐9,068Depreciation charge for the year -9 -353 -90 -5 -110 -5 -572 Derecognition 15 541 593 0 122 130 1,400 Asat31December2023 ‐53 ‐6,332 ‐679 ‐33 ‐1,028 ‐116 ‐8,241Carryingamountasof31December2022 107 2,808 295 12 286 23 3,531Carryingamountasof31December2023 102 3,123 312 10 268 20 3,834
(*) see note 16
The carrying amount of tangible fixed assets increased by EUR 304 million to EUR 3,834 million, mainly driven by the strong ramp-up
of fiber deployment, and the Mobile network upgrade and consolidation, supporting the Group growth and efficiency ambitions.
Per December 2023, the gross carrying amount of fully depreciated property, plant and equipment that is still in use amounts to EUR
5,740 million, the majority of which is related to technical and network equipment..
Proximus Group 197 Integrated Annual Report 2023
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 cars, utility cars & bikes). 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 2022 135 89 43 7 274 New contracts 12 8 24 20 63 Depreciations -25 -30 -25 -4 -84 Contract modifications/disposals/reassessments 4 25 -1 -3 25 As at 31 December 2022 126 91 41 20 277 New contracts 40 10 37 16 103 Depreciations -27 -29 -26 -6 -88 Contract modifications/disposals/reassessments -2 16 1 -1 16 As at 31 December 2023 137 89 53 29 308
In 2022 two new asset groups had emerged: bikes on the one hand (in category ‘Fleet’) and cloud infrastructure from our partnership
with HCL on the other hand (in category ‘Other’). The bikes (representing 1% of the Fleet figures) are optional leases for employees
meeting specific criteria (like opting for an electric or hybrid company car).
In 2023 the increase in new building contracts is driven by the lease of ‘Boreal’, the office that will serve as Group headquarters during
the makeover of the ‘Towers'. This contract makes 2023 an exception in the year-over-year downward trend of building leases. The
breakthrough of electric cars leads to a significant increase in the purchase price of new fleet contracts.
Partnership with HCL Technologies
In 2021 Proximus entered a partnership with HCL Technologies whereby that company operates and maintains Proximus' private cloud
infrastructure. The partnership foresaw a transition phase, that started in October 2021 and that was finished in February 2022.
HCL and Proximus concluded an asset financing arrangement (nominal amount of EUR 65 million) for the infrastructure that remains in
the Proximus data centres and under Proximus control. On 31 December 2023 the carrying amount of the concerned assets is EUR 41
million (see Note 5, “Technical Equipment”).
New cloud infrastructure that has been purchased by HCL (nominal amount of 18 million in 2022 and 13 million in 2023) and used by it
in the context of the partnership, qualified as a lease. On 31 December 2023 the carrying amount of the right of use is EUR 25 million
and is reported under the caption ”Other” in the table above.
Proximus Group 198 Integrated Annual Report 2023
The carrying amounts of lease liabilities and the movements during the period are disclosed below
(EUR million) Buildings Mobile sitesFleet Other Sub-leasesTotal As at 1 January 2022 134 85 42 5 8 273 New contracts 12 8 24 20 0 63 Contract modifications/disposals/reassessments 4 21 0 -1 1 25 Interest expenses 1 1 0 0 0 2 Capital Reimbursements -25 -30 -25 -10 0 -90 Interest Reimbursements -1 -1 0 0 0 -2 As at 31 December 2022 126 83 40 13 9 272 New contracts 40 10 37 15 0 103 Contract modifications/disposals/reassessments -2 16 2 -1 0 16 Interest expenses 3 3 1 0 0 7 Capital Reimbursements -26 -29 -26 -14 2 -93 Interest Reimbursements -3 -2 -1 0 0 -5 As at 31 December 2023 138 82 53 14 11 298 Current portion 27 25 22 10 5 90 Non-current portion 111 57 31 4 6 208
There is no material cash outflow in 2023 relating to leases that have not commenced on 31 December 2023.
(EUR million) 2022 2023 The following are the amounts recognized in profit or loss:Depreciation -84 -88 Interest expenses -2 -7 Total -86 -95 The Group had total cash outflows for leases ofRepayment of lease liabilities (cash out for financing activities) -90 -93 Interest expenses (in the operating cash flow) -2 -5 Total -92 -98
The maturity table of the undiscounted expected future cashflows to the lease liabilities are disclosed below:

(EURmillion) 2023 2024 2025 2026 2027 2028 2029‐2048 TotalAsat31December2022 Undiscounted lease payments 86 50 40 30 19 13 41 277Asat31December2023Undiscounted lease payments 96 65 54 32 18 54 318
Proximus Group 199 Integrated Annual Report 2023
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 in 2023 and 2022 are as follows:
As at 31 December (EUR million) 2022 2023 Balance as at 1 January 110 111 Decrease/ Increase in contract assets relating to existing contracts in the opening balance Normal evolution -67 -68 New contract costs 67 68 Balance as at 31 December 111 111
The portion of the balance as at 31 December 2023 and 2022 of the contract costs deferred within the year and deferred more than
one year are as follows:
As at 31 December (EUR million) 2022 2023 Contract costs 111 111 Deferred within 12 months 56 56 Deferred beyond 12 months 55 55
Proximus Group 200 Integrated Annual Report 2023
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
(the percentage in the table below represents the percentage of shares held by the Group):
Country of Name Registered office 2022 2023 incorporation Proximus SA under Public Law Bld du Roi Albert II 27 Belgium Parent 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 VAT NL 30135115 Proximus Luxembourg SA 18 rue du Puits Romain Luxemburg 100% 100% 8070 Bertrange VAT LU 15605033 Proximus ICT SA Koning Albert II laan 27 Belgium 100% 100% 1030 Brussels VAT BE 0826.942.915 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 SA Rue du Gouverneur Général Eboué 24 France 100% 0% F-92130 Issy Les Moulineaux (3) Flitsmeister BV Landjuweel 24 The Netherlands 93% 93% 3905 PG Veenendaal VAT NL 55408567 Cascador BV Koning Albert II laan 27 Belgium 100% 100% 1030 Brussels VAT BE 0648 964 048
Proximus Group 201 Integrated Annual Report 2023
Country of Name Registered office 2022 2023 incorporation 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 Belgacom International Carrier Chancery House 5th floor , Lislet, Geoffrey StreetMauritius 100% 100% Services Mauritius Ltd Port Louis 1112-07 (1) Belgacom International Carrier Bld du Roi Albert II 27 Belgium 100% 100% Services SA 1030 Brussels VAT BE 0866.977.981 (1) Belgacom International Carrier Eichweisenring 11 Germany 100% 100% Services Deutschland GMBH 70567 Stuttgart VAT DE 812.710.228 (1) Belgacom International Carrier 2 New Bailey, 6 Stanley Street, Salford United Kingdom 100% 100% Services UK Ltd Greater Manchester M3 5GS (1) Belgacom International Carrier Wilhelminakade 173, unit 41 32 The Netherlands 100% 100% Services Nederland BV 3072 AP Rotterdam VAT NL 808.026.628.B01 (1) Belgacom International Carrier Corporation trust center - 1209 Orange street United States 100% 100% Services North America Inc USA - 19801 Willington Delaware (1) Belgacom International Carrier C/O Tricor Singapore Pte Ltd Singapore 100% 100% Services Asia Pte Ltd 9 Raffles Place, #26-01 Singapore 048619 (1) Belgacom International Carrier Avenida da Republica, 50, 10th floor Portugal 100% 100% Services (Portugal) SA 1069-211 Lisboa VAT PT 505.146.720 (1) Belgacom International Carrier Via della Moscova 3 Italy 100% 100% Services Italia Srl 20121 Milano VAT IT 13276650150 (1) Belgacom International Carrier Calle Salvatierra, 4, 2c Spain 100% 100% Services Spain SL 28034 Madrid (1) Belgacom International Carrier Gesellschaftsstrasse 27 Switzerland 100% 100% Services Switzerland AG 3001 Bern VAT CHE-109.559.886 (1) Belgacom International Carrier Wildpretmarkt 2-4 Austria 100% 100% Services Austria GMBH 1010 Wien (1) Belgacom International Carrier Drottninggatan 30 Sweden 100% 100% Services Sweden AB 411-14 Goteborg (1) Belgacom International Carrier #409 Raffine Higashi Ginza, 4-14 Japan 100% 100% Services JAPAN KK 10-10 Shirokanedai 3-Chome, Minato-ku Tokyo 108-0071 (1) Belgacom International Carrier 5/F Manulife Place China 100% 100% Services China Ltd 348 Kwun Tong Road, Kowloon Hong Kong (1)
Proximus Group 202 Integrated Annual Report 2023
Country of Name Registered office 2022 2023 incorporation Belgacom International Carrier 1 Margaret Street - Level 11 Australia 100% 100% Services Australia Pty Ltd Sydney NSW 2000 Australia VAT AU93.604.062.900 (1) Belgacom International Carrier Dubai Internet City United Arab. 100% 100% Services Dubai FZ-LLC Emirates Premises 306 - Floor 03- Building 02 -PO box 502307 Dubai (1) Belgacom International Carrier Highveld Technopark South Africa 100% 100% Services South Africa Proprietary Ltd 119 Witch-Hazel Avenue Highveld Technopark (1) Belgacom International Carrier 5th Floor, West Wing, ICEA Lion Center Kenya 100% 100% Services Kenya Ltd Riverside Park, PO Box 10643 00100 Nairobi (1) Belgacom International Carrier Rue du Colonel Moll 3 France 100% 100% Services France SAS 75017 Paris VAT FR87.422.588.285 (1) Belgacom International Carrier Level 6, Menara 1 Dutamas Malaysia 100% 100% Services Malaysia 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 100% 100% Marina del Rey, CA 90292 TeleSign Corporation 13274 Fiji Way , Suite 600 United States 100% 100% Marina del Rey, CA 90292 TeleSign UK 2 New Bailey, 6 Stanley Street, Salford United Kingdom 100% 100% Greater Manchester M3 5GS TeleSign Mobile Ltd 2 New Bailey, 6 Stanley Street, Salford United Kingdom 100% 100% Greater Manchester M3 5GS TeleSign Doo Tresnjinog cveta 1 Serbia 100% 100% 11070 Novi Beograd TeleSign Netherlands B.V. 2 New Bailey, 6 Stanley Street, Salford United Kingdom 100% 100% Greater Manchester M3 5GS TeleSign Singapore Pte. Ltd. 1 Robinson Road, #17-00 Singapore 100% 100% AIA Tower Singapore (048542) TeleSign (Beijing) Technology Co., Ltd.Office 1551, 15/F, Office Building A, Parkview P.R. China 100% 100% Green, 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 Codit Switzerland AG The Circle 6 Switzerland 100% 100% 8058 Zurich VAT CHE-335.776.516
Proximus Group 203 Integrated Annual Report 2023
Country of Name Registered office 2022 2023 incorporation Codit Integration Ltd. 25 Cabot Square United Kingdom 100% 100% E14 4QZ London 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 Krommewetering 7 The Netherlands 100% 100% 3543 AP Utrecht VAT NL 30246968 Votijnit Lda. (Codit Portugal) Edificio LACS Anjos, Rua Febo Moniz, 27 Portugal 100% 100% 1150-152 Lisboa 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 VAT NL 58566317 Mobile Vikings NV Kempische Steenweg 309 - box1 Belgium 100% 100% 3500 Hasselt VAT BE 0886,946,917 Telesign Belgium Koning Albert II laan 27 Belgium 100% 100% 1030 Brussels (2) VAT BE 0781.957.877 3M Digital Networks Private Limited 45/B, Subam Complex, 1st A Main 3rd Floor, India 100% 100% (Mobtexting) Rear Wing, Sarakki Indl Layout, J P Nagar, Phase-3, Bengaluru, Karnataka 560 078 (1) (2) U72200KA2012PTC066750 Proximus Ada Koning Albert II laan 27 Belgium 100% 100% 1030 Brussels (2) VAT BE 0781.848.902 Doktr Koning Albert II laan 27 Belgium 80% 80% 1030 Brussels (2) VAT BE 0787.949.212 Proximus Luxembourg Infrastructure 18 rue du Puits Romain Luxemburg 100% 100% 8070 Bertrange VAT LU 34353281 (2) Proximus d.o.o Tresnjinog Cveta 1/9 Serbia 100% Beograd-Novi Beograd (4) BICS South Korea LLC #401, 4F, 23 Jong-ro 12-gil South Korea 100% (Gwancheol-dong), Jongno-gu, Seoul (4) Telesign Colombia S.A.S Cr71 B N°49 A27- Sec 2 Colombia 100% Bogota DC Tax ID 9016318595 (4)
(1) Entity of BICS Group
(2) Entity created/acquired in 2022
(3) Entity liquidated in 2023
(4) Entity created in 2023
Proximus Group 204 Integrated Annual Report 2023
Note 8.2. 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 and its share in Mwingz costs from third parties, based on its ownership interest. Revenues from the sale of joint operation
services to Proximus and Orange Belgium are eliminated.
Note 8.3. Investments in joint ventures and associates
(EUR million) 2022 2023 Carrying amount 43 90Profit / (loss) of continuing operations -20 -30
Proximus Group 205 Integrated Annual Report 2023
The Group had interests in the following joint ventures and associates:
Country of Name Registered office Group's participating interests incorporation 2022 2023Associates Belgian Mobile ID SA/NVMarkiesstraat 1Belgium15%15% 1000 Brussel VAT BE 541.659.084 (2)Synductis CV Brusselsesteenweg 199 Belgium 17% 17% 9090 Melle VAT BE 502.445.845 (2) Experience @ work CVBAMinderbroedersgang 12Belgium30%30%2800 MechelenVAT BE 627.819.632TessaresSA/NVAvenue Jean Monnet 1Belgium23%23%1348 Ottignies-Louvain-la-NeuveVAT BE 600.810.278Co.station Belgium NV Sinter-Goedeleplein 5 Belgium 20% 0% 1000 Brussel VAT BE 599,786,434 (3) 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 aug.e NV (former I.Leco NV) Berkenlaan 8C Belgium 38% 48% 1831 Machelen VAT BE 471,967,356Belgian Parking Register NVKardinaal Mercierlaan 1ABelgium50%50%9090 MelleVAT BE 0778.406.687Ads&Data Harensesteenweg 226Belgium 11% 11% 1800 Vilvoorde VAT BE 0809.309.701(2) Glasfaser Ostbelgien Klötzerbahn 24 Belgium 50% 50% 4700 Eupen VAT BE 0791.811.295 (1) FTI NV (Flanders Belgium 11% Technology&Innovation) Green Energy Park Research Park 160 1731 Zellik VAT BE 11003,648,706(4) Clarence S.A. 202, Z.A.E.Wolser F. Luxemburg 40% 3290 Bettembourg VAT LU 35.288.286 (4) Joint ventures Unifiber Midco SAWaterloo Office ParkBelgium50%50% Drève Richelle 161 D, Boite 20 1410 Waterloo 0771.814.647 RPR/RPMUnifiber SA Waterloo Office ParkBelgium 50% 50% Drève Richelle 161 D, Boite 20 1410 Waterloo 0771.870.372 RPR/RPM
(1) Entity created in 2022
(2) Significant influence as proximus has a board member
(3) Entity liquidated in 2023
(4) Entity created in 2023
Proximus Group 206 Integrated Annual Report 2023
Fiberklaar was co-created in March 2021 with EQT Infrastructure to accelerate the roll-out of fiber in Flanders. Fiberklaar works to
design, build, maintain, and upgrade the fiber network across the region to accelerate super-fast and stable fiber connectivity in
Flanders. Fiberklaar’s target is to connect 1.5 million homes and businesses in Flanders by 2028. Proximus holds 49.66% of Fiberklaar
and the arrangement qualifies as an associate under IAS 28.
Unifiber was co-created in July 2021 with Eurofiber to accelerate the roll-out of fiber in Wallonia. Unifiber works to design, build,
maintain, and upgrade the fiber network across the region to accelerate super-fast and stable fiber connectivity in Wallonia. Unifiber’s
target is to connect 0.6 million homes and businesses in Wallonia by 2028. Proximus holds 49.99% of Unifiber and the arrangement
qualifies as joint venture under IAS 28.
In September 2022, Proximus co-created “Glasfaser Ostbelgien” or GO Fiber, a public-private partnership with the German-speaking
Community and Ethias. Its objective is to connect almost all of the 40,000 homes and businesses in this region, including in the so-
called “white zones”. Proximus owns 49.96% of Glasfaser Ostbelgien. The arrangement qualifies as associate under IAS 28.
Contingencies and commitments in relation with the joint-ventures and associates fiber entities (Fiberklaar, Unifiber and Glasfaser
Ostbelgien):
Imposed to the fiber entities
After the roll-out period, Fiberklaar and Unifiber are required to meet the net debt/EBITDA target ratios defined in their
shareholders' agreements. Available cash must be used to meet these targets as a matter of priority before any distribution to
shareholders.
Imposed to the fiber entities’ shareholders
Proximus has a contractual obligation to financially support entities Fiberklaar and Unifiber by acquiring a predefined volume of
fiber connections for the already deployed areas. This will be done by the complete migration of its customer base and the
phasing out of its copper network within a few years after the completion of the fiber rollout. For Glasfaser Ostbelgien, there is
no predefined volume, but there is still the migration commitment.
Upon the occurrence of a "Flip Over Event" (such as the achievement of the deployment of the network on a targeted number
of households, a predefined date, etc.), the shareholders of the fiber entities are obliged to transfer the minimum number of
shares required to Proximus for the latter to obtain control by having the majority of the shareholding. If necessary, and in the
most limited way possible, adaptations could be made to the shareholders’ agreements to ensure control at Proximus after
Flip Over. The earliest change of control is expected to occur in 2028.
At the timing of the Flip Over, Proximus has the right to acquire the number of shares necessary to own at least 50% plus one
and up to 75% minus one of Glasfaser Ostbelgien Shares. It is also granted a call option to extend its shareholding to 60% of
Fiberklaar Midco shares.
Fiberklaar,Unifiber and and Glasfaser Ostbelgien will maximize their funding through debt and operating cash flows. The
shareholders will supplement the remaining financing needs with a capital injection, pro rata to their share.
All shares held by Midco Unifiber and Midco Fiberklaar in Unifiber and Fiberklaar are pledged to financial institutions as part of
the financing arrangements obtained by Unifiber and Fiberklaar. The same applies to the shares held in Glasfaser Ostbelgien
Proximus
Group 207 Integrated Annual Report 2023
Changes in associates and joint venture:
(EUR million) Unifiber SA Fiberklaar BV Other Associates Total Carrying amount As at 1 January 2022 9 22 3 34 Investments 0 30 -1 29Profit for the year -7 -13 0 -20 As at 31 December 2022 2 39 2 43 Investments 15 60 2 77Loss for the year -7 -21 -2 -30 As at 31 December 2023 11 77 2 90
Summar
y of balance sheet, profit and loss and other comprehensive income of the material joint venture and associate
Unifiber Fiberklaar (EUR million) 2022202320222023Non‐currentassets 54 188223 492Currentassets 32 2633 31Cash and cash equivalents 21143226Totalassets 86 214256 523Equity 10 2688 180Non‐currentliabilities 57 153120 290Interest-bearing liabilities 57151120290Currentliabilities 18 3548 53Totalliabilitiesandequity 86 214256 523
‐16 ‐28
Total income 0112Total operating expenses before depreciation and amortization -3-4 -11-15Depreciation and amortization 0-1 -1-1Finance income 0103Interests and debt charges on financial instruments at amortized costs -5 -18 -4-18Profit or loss from continuing operations -8 -21 -16-28Totalcomprehensiveincome -8 -21% ownership 50%50%50%50%Share held in Equity 5134490Harmonization and retreatment -3 -2 -5 -12Carryingamount 2 1139 77
Proximus Group 208 Integrated Annual Report 2023
Note 8.4. Acquisitions and disposal of subsidiaries, joint ventures and associates
Entities incorporated in 2023.
Clarence
Clarence is a joint venture between Proximus and LuxConnect with the objective of creating a disconnected sovereign, cloud solution.
Acquisitions and disposals of 2023
EDPNET
In March 2023 Proximus acquired the activities and assets of Belgian and Dutch EDPNET. Immediately after this acquisition, the Belgian
Competition Authority (BCA) however informed Proximus of the opening of an ex officio investigation into a possible abuse of
dominance by Proximus by means of the acquisition. Proximus, which contested the allegations of abuse of dominance, cooperated in
good faith with the investigators of the BCA. Eventually and to avoid a lengthy procedure, Proximus and Citymesh entered in November
2023 into and completed an agreement pursuant to which Proximus divested EDPNET Belgium to Citymesh. Further to this agreement,
the BCA has terminated its abuse of dominance proceeding. The appeal filed by Citymesh against the assignment of EDPNET to
Proximus was terminated.
Acquisitions in process in 2023 with high probability of finalization in 2024
Route Mobile
Proximus Group has signed a definitive agreement to acquire through Proximus Opal, a ∼58% interest in Route Mobile, a global
company specialized in CPaaS services, listed on NSE and BSE in India with a market capitalization of EUR 1.1 billion. As part of the
agreement, some of the founding shareholders of Route Mobile will reinvest in a minority stake in Proximus Opal, a subsidiary of the
Proximus Group and the holding company of Telesign, Proximus' US-based affiliate. Building on the combined strengths of Route
Mobile and Telesign, the Group is paving the way to become one of the worldwide leaders in the fields of digital communications
(CPaaS) and digital identity.
More specifically:
Proximus Group will acquire 57.56% of the shares (on a fully diluted basis) in Route Mobile through Proximus Opal, for an
initial INR 59,224 million (EUR ∼643,0 million) cash consideration for a price per share of INR 1,626.40
The acquisition of the majority stake in Route Mobile will, in accordance with Indian regulations, trigger a mandatory takeover
offer (“MTO”) for up to 26% of the total shares outstanding of Route Mobile at the same price per share. Depending on the
outcome of the MTO, the stake held by Proximus Opal could further increase to around 75% of Route Mobile's shares. If MTO
is fully adopted, the stake could rise to around 84%, but as Indian regulator SEBI prescribes a minimum threshold of 25%
public shareholding for all listed companies, Proximus Opal would need to sell stakes back to 75% within 12 months
Total cash consideration for this part of the operation, will be determined by the effective MTO take-up. The acquisition of the majority
stake in Route Mobile and the MTO will be followed by a reinvestment of EUR ∼299.6 million by some of the founding shareholders of
Route Mobile, for up to 14.5% of the shares of Proximus Opal. Considering the reinvestment, the net cash consideration for Proximus
prior to MTO amounts to EUR ∼343.4 million.
The agreement remains conditional upon realization of the conditions provided for in the agreement, including the receipt of regulatory
and anti-trust approvals and the completion of the MTO on certain shares of Route Mobile. Proximus expects to close the transaction
during the first semester of 2024.
Proximus Group 209 Integrated Annual Report 2023
Entities incorporated in 2022
Proximus Ada
In March 2022 Proximus established the wholly owned subsidiary Ada, an innovation and expertise centre dedicated to artificial
intelligence and cybersecurity. The entity started its activities in April 2022. Proximus Ada employed around 52 experts in artificial
intelligence and cybersecurity on 31 December 2022.
Doktr
On 1 July 2022, Proximus transferred the activities related to the Doktr application to this new company, Doktr SRL. Doktr aims to
become an integral part of the healthcare offering, facilitating video consultations in an accessible, secure and user-friendly manner.
Glasfaser Ostbelgien
See note 8.3.
Acquisition of 2022
BICS-3m Digital Networks Pvt Ltd
BICS acquired 100% of the shares of a Communications Platform as a Service (CPaaS) specialist, 3m Digital Networks Pvt Ltd, an
international communications enabler, by its fully owned Singaporean subsidiary. The acquisition will add a range of cloud-native
communications solutions to BICS portfolio, including AI-enabled voice, multi-channel messaging and advanced analytics services.
Note 9. Equity investments measured at fair value
At 31 December 2023 and 2022, the group held participating interests in non-quoted companies, the fair value amounted to EUR 1
million in 2022 and EUR 3 million in 2023.
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.
Proximus Group 210 Integrated Annual Report 2023
Note 10. Income taxes
(EUR million) As at 31 December 2022 2023 Accelerated depreciation -40 -37 Fair value adjustments on acquisition -20 -18 Statutory provision not retained under IFRS -8 -10 Remeasurement of financial instruments to fair value -52 -51 Deferred taxation on sales of property, plant and equipment -7 -8 Post-employment, termination and other benefits -19 -37 Deferred taxation on contract assets & contract costs -61 -69 Gross deferred income tax liabilities -209 -229 Fair value adjustment on fixed assets 11 11 Provisions for liabilities and charges 11 12 Other 10 13 Gross deferred income tax assets 32 36 Net deferred income tax assets / (liabilities), when grouped per taxable entity, are as follows : Net deferred income tax liability -181 -197 Net deferred income tax asset 5 4
The movements in 2023 of the deferred tax position are as follows(EUR million) As at 31 December 2022 -176 Decrease recognized through other comprehensive income -7 Increase recognized in income statement -10 As at 31 December 2023 -193
The 2023 deferred tax expense in the profit or loss is mainly the consequence of the increase in the post-employment and termination
benefits, the increase of the revenue from contracts with customers (IFRS15) and the remeasurement to FV of the financial
instruments. This expense is partially offset by the decrease of the deferred tax on temporary differences.
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 and other assets carried forward available for such companies amounted to EUR 46 million at 31 December
2023 (EUR 22 million in 2022) of which 41 million have no expiration date. The use of the Belgian tax losses carried forward is limited in
use of 1 million per year and 70% for the surplus in the same year. The offset of US tax losses is generally limited to 80% of the taxable
income.
Proximus Group 211 Integrated Annual Report 2023
In the income statement, deferred tax income/ (expense) relate to the following:
Year ended 31 December (EUR million) 2022 2023 Accelerated depreciation 5 3 Fair value adjustments on acquisition 14 2 Remeasurement of financial instruments to fair value 0 -3 Deferred taxation on sales of property, plant and equipment 0 -1 Fair value adjustment on fixed assets -1 0 Post-employment, termination and other benefits 7 -5 Tax losses carried forward -3 0 Contract assets and contract cost -5 -8 Other 7 2 Deferred tax expense of the year 25 -10
The consolidated income statement includes the following tax expense:
As at 31 December (EUR million) 2022 2023 Current income tax expense -153 -94 Deferred income tax 25 -10 Income tax expense reported in consolidated income statement -128 -104
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) 2022 2023 Income before taxes 578 461 At Belgian statutory income tax rate of 25% 145 115 Lower income tax rates of other countries 1 2 Non-taxable income -24 -27 Non-deductible expenditures for income tax purposes 5 11 Non-deductible losses from joint ventures and associates 8 7 Other -5 -4 Income tax expense 128 104 Effective income tax rate 22.22% 22.61%
The 2023 effective income tax rate amounts to 22.61% which is higher compared to the effective income tax rate of 22.22% in 2022.
The non-taxable income mainly relates to the application of general principles of tax law such as the patent- and innovation income
deduction applicable in Belgium.
Proximus Group 212 Integrated Annual Report 2023
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) 2022 2023 Termination benefits and additional compensations in respect of restructuring programs 116 82 Defined benefit plans for complementary pension plans net liability / (net asset) -140 -187 Other pension plans 1 1 Post-employment benefits other than pensions 295 293 Net asset recognized in the balance sheet 140 187 Net liability recognized in the balance sheet 413 377 Net liability (current) 52 40 Net liability (non-current) 361 337
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.
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 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 and
the discount rate. The staff turnover is considered 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. The provision for termination benefits
was entirely booked 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 and discount rate. The staff turnover assumption is considered to be zero in the
calculation. In 2022, the liability for termination benefits has also been updated to reflect the fact that Proximus can de facto no longer
withdraw to offer certain benefits to employees in existing programs. The provision has been increased by EUR 22 million in 2022.
Proximus Group 213 Integrated Annual Report 2023
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) 2022 2023 Benefit Obligation 116 82 Benefit obligation in excess of plan assets 116 82
The movement in the net liability recognized in the balance sheet is as follows :
As at 31 December 2022 2023 At the beginning of the year 140 116 Total expense (income) for the period 22 2 Payment to the participants -46 -35 At the end of the year 116 82
The liability for termination benefits and additional compensations was determined using the following assumptions:
As at 31 December (EUR million) 2022 2023 Discount rate 3.20% 3.20% Future price inflation 3.00% 2.60%
Sensitivity analysis
An increase or decrease of 0.5% in the effective discount rate involves a fluctuation of the liability by approximately EUR1 million.
The Group expects to pay an amount of EUR 21 million for termination benefits and additional compensations in 2024. The payments in
2023 amounted to EUR 35 million.
Proximus Group 214 Integrated Annual Report 2023
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 considering 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 2023, 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 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) 2022 2023 Defined Benefit Obligation 716 785 Plan assets at fair value -857 -971 Deficit / (surplus) -140 -187
Proximus Group 215 Integrated Annual Report 2023
The components recognized in the income statement and other comprehensive income are as follows :
Year ended 31 December (EUR million) 2022 2023 Current service cost - employer 52 45 Net interest -1 -6 Recognized in the income statement 50 39 Remeasurements Actuarial (gains)/losses from changes in financial assumptions -192 -19 Actuarial (gains)/losses from changes in demographic assumptions 20 0 Actuarial (gains) / losses arising from experience adjustments 22 38 Actuarial (gains) / losses related to return on assets, excluding amounts included in the net interest 88 -69 cost Recognized in other comprehensive income -61 -50 Total -11 -12
The movement in the net liability recognized in the balance sheet is as follows:
Year ended 31 December (EUR million) 2022 2023 At the beginning of the year -79 -140 Expense for the period recognized in the income statement 50 39 Remeasurement recognized in other comprehensive income -61 -50 Contributions paid -50 -35 Net deficit/ (Net surplus) -140 -187
Change in plan assets :
As at 31 December (EUR million) 2022 2023 At the beginning of the year 904 857 Interest income 10 30 Return on assets, excluding amounts included in the net interest expense -88 69 Contributions paid 50 35 Benefits payments and expenses -19 -20 At the end of the year 857 971
Proximus Group 216 Integrated Annual Report 2023
Change in the defined benefit obligation:
As at 31 December (EUR million) 2022 2023 At the beginning of the year 825 716 Service cost 52 45 Interest cost 9 24 Benefits payments and expenses -19 -20 Actuarial losses/ (gain) -150 19 At the end of the year 716 785
The pension liability was determined using the following assumptions:
As at 31 December (EUR million) 2022 2023 Discount rate 3.50% 3.30% Future price inflation 3.00% 2.60% Nominal future salary increase 4.15%-4.25% 3.10%-3.85% Nominal future baremic salary increase 4.00%-4.15% 3.60%-3.75% Mortality BE Prospective IA/BE BE Prospective IA/BE
The staff 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 13.36 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.
We expect, that considering the current uncertainties on the market, the level of discount rate to remain comparable in 2024 and that
the inflation will slightly evolve but remain relatively high still for a relatively long period of time,
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 6% to 7%.
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%.
Proximus Group 217 Integrated Annual Report 2023
Plan assets
The assets of the pension plans are detailed as follows:
As at 31 December (EUR million) 2022 2023 Equity instruments 48.2% 49.9% Debt instruments 36.2% 35.8% Convertible bonds 4.8% 4.5% Other (property, infrastructure, Private equity funds, insurance deposits) 10.8% 9.8%
The actual return on plan assets is as follows:
As at 31 December (EUR million) 2022 2023 Actual return on plan assets -79 100
The investment strategy of the Pension Fund is defined to optimize the return on investment within strict limits of risk control and
considering the profile of the pension obligations. The relatively long duration of the pension obligations (13.36 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 2023 the portfolio was invested by about 49.9% in listed equities (in Europe, US and Emerging Markets), about 35.8% in
fixed income (government bonds, corporate bonds, and senior loans) and about 4.5% 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 less than
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 33 million to this Defined Benefit Plan in 2024.
Other pension plans
The Group also operates another defined benefit plan with a more limited amplitude, being a Defined Benefit Obligation EUR 6 million
and plan assets of EUR 5 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.
Proximus Group 218 Integrated Annual Report 2023
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) 2022 2023 Defined Benefit Obligation 295 293 Net liability recognized in the balance sheet 295 293
The components recognized in the income statement and other comprehensive income are as follows:
Year ended 31 December (EUR million) 2022 2023 Current service cost - employer 4 3 Interest cost 3 10 Recognized in the income statement 7 13 Remeasurements Actuarial losses from changes in financial assumptions -61 1 Effect of experience adjustments -3 -1 Recognized in other comprehensive income -63 0 Total -56 13 .
The movement in the net liability recognized in the balance sheet is as follows:
As at 31 December (EUR million) 2022 2023 At the beginning of the year 365 295 Expense for the period recognized in the income statement 7 13 Remeasurement recognized in other comprehensive income -63 0 Payment to the participants -14 -15 At the end of the year 295 293
Proximus Group 219 Integrated Annual Report 2023
The liability for post-employment benefits other than pensions was determined using following assumptions:
As at 31 December 2022 2023 Discount rate 3.50% 3.30% Future cost trend (index included) 3.00% 2.60% 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 11.88 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 6%.
If the future cost trend increases (or decreases) by 0.5%, the defined benefit obligation would increase (or decrease) by around 6%.
If a 1-year age correction would be applied to the mortality tables, the defined benefit obligation would change by around 4%.
The Group expects to contribute an amount of EUR 16 million to these plans in 2024.
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 because 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.
Proximus Group 220 Integrated Annual Report 2023
Note 12. Other non-current assets
As at 31 December (EUR million) Note 2022 2023 Other derivatives 32.1 83 71 Other financial assets at amortized cost 16 21 Total 99 92
Other derivatives relate essentially to
A 10-year forward starting interest rate swap for a notional amount of EUR 500 million entered on February 2022 to cover
the Group exposure to the variability in cash flows attributable to the long-term interest rate risk associated with a highly
probable forecasted transactions, being a 10-year bond to be issued in April 2025. The Group applies hedge accounting to this
swap. The fair value of this financial instrument amount to EUR 58 million as at 31 December 2023 and EUR 82 million at year
end of 2022.
A zero-cost collar swaption entered by the group in 2023 to protect the value of its existing pre-hedging interest rate swap
against interest rates fluctuations. The fair value of this financial instrument amount to EUR 13 million as at 31 December
2023.
Other financial assets concern LT cash guarantees and LT receivables non-trade.
Note 13. Inventories
As at 31 December (EUR million) 2022 2023Gross Net Gross Net Written offWritten offamount amount amount amount Raw materials, consumables and spare parts 62 -6 56 55 -6 48 Work in progress and finished goods 23 0 23 21 0 21 Goods purchased for resale 111 -3 108 95 -5 89 Total 196 -9 187 171 -12 159
‘Raw materials, consumables, and spare parts’ are mainly materials for the gigabit network, like cables and installation tools.
‘Work in progress and finished goods’ contain mainly projects which are not yet completed.
Goods purchased for resale are CPE’s (customer premises equipment), like smartphones/tablets and their related accessories (43%),
equipment for internet and TV at home (decoders (13%), modems (23%), TV’s (2%)), ICT equipment (11%), terminals (5%) and PABX
(3%).
Proximus Group 221 Integrated Annual Report 2023
Note 14. Trade receivables and contract assets
14.1 Trade receivables
As at 31 December (EUR million) 2022 2023 Trade receivables 938 866 Trade receivables - gross amount 1,025 952 Loss allowance -87 -86
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 2023, Proximus Group received bank and parent
guarantees of EUR 7 million (in 2022, EUR 2 million) as securities for the payment of outstanding invoices.
14.2 Contract assets
As at 31 December (EUR million) 2022 2023 Contract assets gross 145 176 Settled within 12 months of the reporting period 104 127 Settled after 12 months of the reporting period 40 49 Loss allowance -8 -10 Contract assets net 137 167
Proximus Group 222 Integrated Annual Report 2023
The evolution of the gross amount of the contract assets during the year, can be explained as follows:
As at 31 December (EUR million) 2022 2023 Balance at 1 Jan 127 145 Decrease in contract assets relating to existing contracts in the opening balance -143 -165 Normal evolution -122 -142 Anticipated termination -21 -23 New contract assets 161 197 Balance at 31 Dec 145 176
Contract assets are mainly generated by contracts containing joint mobile and fixed-line telephony offers with a subsidized handset and
services to be provided over a 24-month period (see note 2). The increase in the balance of contract assets compared with 2022 is
mainly due to the increase in the number of Proximus SA contracts in force at the end of 2023, and to the increase in the price of
handsets included in the offers.
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.
For BICS segment, the 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 to net the risk and other internal and external sources.
For TeleSign, the expected credit losses for trade receivables are based on a combination of factors considering historical losses
adjusted for current market conditions, customer’s financial condition, disputes, the current aging and incorporating relevant forward-
looking data.
Proximus Group 223 Integrated Annual Report 2023
The analysis of trade receivables that were past due but not impaired is as follows:
As at 31 December Past due Gross Not Loss Net carrying receivables / past 90-180-allowance amount < 30 30-60 60-90 > 360 (EUR million) contract assets due 180 360 days days days days days days Trade receivables 2021 977 -98 879 519 77 44 26 46 45 123 2022 1,025 -87 938 593 86 42 25 60 10 123 2023 952 -86 866 557 85 25 16 49 25 110 2023 % loss allowance on trade receivables 9% 2% 2% 7% 11% 16% 21% 34% The loss allowance on contract assets was asfollow:Contract assets 176 -10 167 167 2023 % loss allowance on contract asset 6% 6%
The closing loss allowances for trade receivables and contract assets as at 31 December 2023 reconciles to the opening loss
allowances as follows:
The evolution of the allowance for doubtful debtors is as follows:
(EUR million) Trade receivablesContract assets Total As at 31 December 2022 87 8 95 Increase in loss allowance through income statement 34 2 36 Receivables written off as uncollectible -33 0 -33 Other movements -1 0 -1 As at 31 December 2023 86 10 96
Proximus Group 224 Integrated Annual Report 2023
Note 15. Other current assets
As at 31 December (EUR million) Note 2022 2023 VAT receivables 7 6 Derivatives 32.1 125 2 Prepaid expenses 103 153 Accrued income 8 4 Other receivables 26 36 Total 269 202
In 2023, derivatives relate essentially to a contingent foreign exchange forward transaction entered by the Group to limit its exposure to
the variability in cash flows that is attributable to the currency risk related to a highly probable future transaction (business combination)
that will be settled in foreign currency. The Group applies hedge accounting to this transaction.
In 2022, derivatives relate essentially to a 10-year and a 7-years forward starting interest rate swaps for a total notional amount of EUR
1.1 billion entered on February and November 2022 to cover the Group exposure to the variability in cash flows attributable to the long-
term interest rate risk associated with two highly probable forecasted transactions, being respectively a 10-year bond to be issued in
November 2023 and a 7-year bond to be issued in March 2023. The bonds were issued as planned and the Group applied hedge
accounting to these swaps.
Prepaid expenses are mainly composed of ICT fees (EUR 75 million in 2023 versus EUR 66 million in 2022), spectrum interests (EUR 35
million in 2023 versus EUR 3 million in 2022) (see also Note 29 and 32.2 for P&L impact of spectrum interests), renting expenses on
real estate, software and mobile sites (EUR 8 million in 2023 versus EUR 8 million in 2022), hardware-, software- and infrastructure
maintenance expenses (EUR 8 million in 2023 versus 9 million in 2022), SaaS contracts (EUR 6 million in 2023 versus EUR 5 million in
2022) and consultancy fees (EUR 3 million in 2023 versus 4 million in 2022).
Note 16. Non-current assets held for sale
In March 2022, Proximus and Immobel have reached binding agreements regarding the redevelopment of Proximus’ headquarters in
Brussels. As a result of these agreements, Proximus acquired rights and gave commitments to cede the Proximus headquarters for
approximately EUR 143 million in December 2023, and to enter into a lease-back agreement of a part of the renovated buildings.
Due to concerns raised by Immobel related to the current macro-economic situation, both parties have agreed after further
negotiations to extend the initially foreseen closing period by nine months, whereby Immobel has the sole right to call the transaction in
Q3 2024.
Immobel has agreed to an irrevocable payment of EUR 30 million in December 2023. In case Immobel decides to exercise the call
option, this amount will be deducted from the acquisition price. In the meantime, Proximus maintains full ownership of the headquarter
building.
In the event that Immobel decides not to confirm the transaction, Proximus will re-evaluate at that moment the appropriateness of
qualifying the property as held for sale.
Proximus Group 225 Integrated Annual Report 2023
The assets of Proximus Towers are classified as held for sale at December 2023 for their book value (EUR 99 million).
Technical (EUR million) Land and buildingsTotal equipment Cost 364 18 383 Depreciation -272 -12 -284 Carrying amount as of 31 December 2023 92 6 99
Note 17. Cash and cash equivalents
As at 31 December (EUR million) Note 2022 2023 Term account at amortized costs 32.4 10 488 Cash at bank and in hand 32.4 288 227 Total 299 716
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 financial institutions, sovereign & supranational agencies, money market funds
counterparties with a long-term credit rating of minimum 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 2023, 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 New
Commercial Code of Companies and Associations. 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 Group 226 Integrated Annual Report 2023
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 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 to incorporate the amendments made to the 1991 Law.
On 31 December 2023, the number of treasury shares amounts to 15.401.433 (15,632,628.in 2022).
In 2023 and 2022, the Group sold respectively 2,746 and 10,229 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).
Number of shares (including treasury shares): 2022 2023 Number of treasury shares: 2022 2023 As at 1 January 338,025,135 338,025,135 15,283,771 15,632,628 As at 31 DecemberSale under a discounted share purchase plan -10,229 -2,746 Purchase / (Sale) of treasury shares 359,086 -228,449 338,025,135As at 31 December As at 1 January338,025,13515,632,628 15,401,433
Note 18.2 Non-controlling interests
In 2023 and 2022, the non-controlling interests related to Doktr only.
Proximus Group 227 Integrated Annual Report 2023
Note 19. Interest-bearing liabilities
Note 19.1 Non-current interest-bearing liabilities
As at 31 December (EUR million) Note 2022 2023 Unsubordinated debt (bonds, notes) 2,239 2,881 Credit institutions 400 400 Other loans 37 27 Total 2,676 3,308
In 2021, Proximus entered a partnership with HCL Technologies whereby that company operates and maintains Proximus' private cloud
infrastructure. Other loans consist in the long-term part of the asset financing arrangement (nominal amount of EUR 65 million
received by Proximus in 2022. As at 31 December 2023, Proximus had already repaid this financial liability for EUR 28 million (EUR 18
million by year-end 2022) resulting from the partnership, for the infrastructure that remains in the Proximus datacenters and under its
control.
On March 2023, Proximus issued an EUR 500 million bond carrying an annual fixed coupon of 4.00% with a 7-year maturity due 8
March 2030. The cash flow hedge for a nominal amount of EUR 500 million was unwound at that date and resulted in a payment of
EUR 20 million received from the hedge counterparty.
On the 10th of November 2023, Proximus successfully priced a EUR 750 million bond transaction. The bond carries a coupon of
4.125% and has a 10-year maturity due on the 17th of November 2033. The related cash flow hedge for a nominal amount of EUR
600 million was unwound at that date and resulted in a payment of EUR 111 million received from the hedge counterparty.
A bond of EUR 600 million will mature in April 2024 and was transferred from non-current to current interest-bearing liabilities.
All long-term debt is unsecured. During 2023 and 2022 there have been no defaults or breaches on loans payables.
Unsubordinated debentures in EUR and in JPY are issued by Proximus SA. The capital is repayable in full on the maturity date.
Over the two years presented, an interest rate and currency swap (IRCS) was used to manage the currency and interest rate exposure
on the JPY unsubordinated debentures. The swap 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 32.1).
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. In the tables below, the effective interest rates of the debts concerned by these
hedges incorporates the effects of these hedges when they matured.
Proximus Group 228 Integrated Annual Report 2023
Non-current interest-bearing liabilities as at 31 December 2023 are summarised as follows:
Interest Carrying Nominal Measurement Interest rate Effective Maturity datepayment / amount amount under IFRS 9 payable interest rate repriceable(EUR million) (EUR million) (b) Unsubordinated debentures Floating rate borrowings JPY (a) 11 11 Amortized cost Dec-26 Semi-annually 3.76% 3.76% Fixed rate borrowings EUR 150 150 Amortized cost Mar-28 Annually 3.19% 3.22% EUR 499 500 Amortized cost Oct-25 Annually 1.88% 2.05% EUR 150 150 Amortized cost May-40 Annually 1.50% 1.52% EUR 733 750 Amortized cost Nov-36 Annually 0.75% 1.05% EUR 495 500 Amortized cost Mar-30 Annually 4.00% 3.60% EUR 100 100 Amortized cost Sep-31 Annually 1.75% 1.78% EUR 743 750 Amortized cost Nov-33 Annually 4.13% 2.75% Credit institutions Fixed rate borrowings EUR 400 400 Amortized cost Mar-28 Annually 1.23% 1.04% Other loans EUR 27 27 Amortized cost Nov-28 Monthly 3.04% 3.04% Total 3,308 3,338
(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 2023
Proximus Group 229 Integrated Annual Report 2023
Non-current interest-bearing liabilities as at 31 December 2022 are summarized as follows:
Interest Carrying Nominal Measurement Interest rate Effective Maturity datepayment / amountamountunder IFRS 9payableinterest raterepriceable(EUR million) (EUR million) (b) Unsubordinated debentures Floating rate borrowings JPY (a) 11 11 Amortized cost Dec-26 Semi-annually 2.34% 2.34% Fixed rate borrowings EUR 150 150 Amortized cost Mar-28 Annually 3.19% 3.22% EUR 599 600 Amortized cost Apr-24 Annually 2.38% 2.46% EUR 498 500 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 732 750 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% Other loans EUR 37 37 Amortized cost Nov-28 Monthly 3.04% 3.04% Total 2,676 2,698
(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 2022
Proximus Group 230 Integrated Annual Report 2023
Note 19.2 Current interest-bearing liabilities As at 31 December (EUR million) 2022 2023 Current portion of amounts payable > 1 year Unsubordinated debt (bonds, notes) 100 600 Credit institutions 1 0 Other loans 10 10 Credit institutions 0 1 Unsubordinated debt (bonds, notes) 477 0 Total 588 611
A bond of EUR 600 million will mature in April 2024 and was transferred from non-current to current interest-bearing liabilities.
The Group repaid in May 2023 a bond of EUR 100 million which was transferred from non-current to current interest-bearing liabilities
in 2022.
The other loan represents the current portion part of the asset financing arrangement with HCL.
In 2022, the other unsubordinated debt represented a drawn and outstanding amount of EUR 477 million euros of the Commercial
Paper program. As at 31 December 2023, this Commercial Paper was unused.
The tables below detail the current portion of the unsubordinated debentures maturing within one year.
Current interest-bearing liabilities as at 31 December 2023 are summarized as follows: Interest Carrying Nominal Measurement Interest rate Effective Maturity datepayment / amountamountunder IFRS 9payableinterest raterepriceable(EUR million) (EUR million) Current portion of interest-bearing-liabilities > 1 year Unsubordinated debentures Fixed rate borrowings EUR 600 600 Amortized cost Apr-24 Annually 2.38% 2.46% Other loans EUR 10 10 Amortized cost Nov-28 Monthly 3.04% 3.04% Interest-bearing-liabilities Credit institutions Fixed rate borrowings EUR 1 1 Amortized cost Daily Daily 8.90% 8.90% Total 611 611
Proximus Group 231 Integrated Annual Report 2023
Current interest-bearing liabilities as at 31 December 2022 are summarised as follows:
Carrying Nominal Measurement Interest Interest rate Effective amountamountunder IFRS 9Maturity datepayment / payableinterest raterepriceable(EUR million) (EUR million) Current portion of interest-bearing-liabilities > 1 year Unsubordinated debentures Fixed rate borrowings EUR 100 100 Amortized cost May-23 Annually 2.26% 2.29% Other loans Fixed rate borrowings EUR 10 10 Amortized cost Nov-28 Monthly 3.04% 3.04% Credit institutions Fixed rate borrowings EUR 1 1 Amortized cost Oct-23 Monthly 0.60% 0.60% Interest-bearing-liabilities Unsubordinated debt (bonds, notes) Fixed rate borrowings Jan & Feb EUR 477 477 Amortized cost At inception 1.55%-1.97% 1.55%-1.97% 2023Total 588 588
Proximus Group 232 Integrated Annual Report 2023
Note 19.3 Information about the Group financing activities related to interest bearing
liabilities
As at 31 Cash flow Cash flow Non-cash As at 31 December issuance repayments changes December (EUR million) 2022 2023 Long-term Unsubordinated debt (bonds, notes) 2,239 1,238 0 -597 2,881 Credit institutions 400 0 0 0 400 Other loans 37 0 0 -10 27 Derivatives held for trading 1 0 0 1 3 Current portion of amounts payable > one year Unsubordinated debt (bonds, notes) 100 0 -100 600 600 Credit institutions held to maturity 1 0 -1 0 0 Other current interest-bearing liabilities 0 Credit institutions 0 1 0 0 1 Other loans 10 0 -10 10 10 Unsubordinated debt (bonds, notes) 477 0 -477 0 0 Total liabilities from financing activities excluding lease liabilities 3,265 1,239 -587 5 3,921 Lease liabilities current and non-current 272 0 -92 119 298 Total liabilities from financing activities including lease liabilities 3,536 1,239 -679 123 4,219
Proximus Group 233 Integrated Annual Report 2023
As at 31 Cash flow Cash flow Non-cash As at 31 December issuance repayments changes December (EUR million) 2021 2022 Long-term Unsubordinated debt (bonds, notes) 2,337 0 0 -97 2,239 Credit institutions 401 0 -1 0 400 Other loans 0 65 0 -28 37 Derivatives held for trading 3 0 0 -2 1 Current portion of amounts payable > one year Unsubordinated debt (bonds, notes) 0 0 0 100 100 Credit institutions held to maturity 1 0 0 0 1 Other current interest-bearing liabilities Credit institutions 150 0 -150 0 0 Other loans 0 0 -19 28 10 Unsubordinated debt (bonds, notes) 100 477 -100 0 477 Other loans 1 0 -1 0 0 Total liabilities from financing activities excluding lease liabilities 2,992 543 -270 1 3,265 Lease liabilities current and non-current 273 0 -89 87 272 Total liabilities from financing activities including lease liabilities 3,265 543 -359 88 3,536
The cash flow issuance of EUR 1,238 million corresponds to the cash obtained by Proximus from the two bonds emissions (March and
November 2023), net of all directly related costs of issuance.
The non-cash changes in 2023 refer to the transfer of a EUR 600 million bond from non-current to current.
The non-cash changes in 2022 refer to the transfer of a EUR 100 million bond 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.
The cash flow movements in relation with the current and non-current other loans in 2023 and 2022 relate to the short-term and
long-term part of the asset financing arrangement (nominal amount of EUR 65 million) foreseen in the context of that partnership with
HCL Technologies (see note 19.1).
Proximus Group 234 Integrated Annual Report 2023
Note 20. Provisions
Workers' Dismantling (EUR million) Litigation Illness days Other risks Total accidents pylons As at 1 January 2022 26 36 15 44 32 153 Additions 2 5 0 0 9 15 Utilisations -2 -6 0 -1 -6 -16 Withdrawals 0 -7 -1 -4 -4 -17 Unwinding 1 0 0 0 -2 0 Transfer 0 0 0 3 -3 0 As at 31 December 2022 26 29 14 41 25 136 Additions 1 7 0 0 7 15 Utilisations -2 -1 0 -2 -1 -6 Withdrawals 0 -4 -1 0 -6 -11 Unwinding 1 1 0 0 1 3 As at 31 December 2023 26 32 13 40 27 137
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 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 2024-2050. The provision for restoration costs is
estimated at current prices and discounted using a discount rate of 3.3% based on the expected timing to settle the obligation.
The provision for other risks includes mainly the environmental risks and sundry risks.
Proximus Group 235 Integrated Annual Report 2023
Note 21. Other non-current payables
As at 31 December (EUR million) 2022 2023 Other non-current payables non-interest-bearing 86 45 Other non-current payables interest-bearing 592 559 Total 679 604
The interest-bearing liabilities include spectrum licenses. This non-current interest-bearing payable is settled through annual
instalments over the life of the license (note 4 and 29). The interest on the payable is calculated on the outstanding long-term debt. The
legal interest rate used is equal to the average of the 1-year EURIBOR interest rate for the month of December of the previous year,
rounded up to the nearest quarter % and increased by 2%.
The non-interest-bearing liabilities include broadcasting and content rights payable over the part of the contract duration that is more
than one year (mostly less than 5 years), the fair value of the part of the Virtual Power Purchase Agreement (see note 2) that will settle
in more than one year (EUR 2.6 million) and the part of the spectrum licenses that is non-interest-bearing.
The transfer of long-term debts to short-term debts was greater than the new additions in 2023, which explains the decrease in the
balance of other non-current debts.
Note 22. Other current payables
As at 31 December (EUR million) 2022 2023 VAT payables 48 42 Payables to employees 121 121 Accrual for holiday pay 94 97 Accrual for social security contributions 51 51 Advances received on contracts 15 41 Other taxes 141 108 Deferred income 3 11 Accrued expenses 25 44 Other debts non-interest-bearing 139 150 Other debts interest-bearing 25 37 Subtotal Other current payables 663 703 Contract Liability 127 126 Total 790 829
Proximus Group 236 Integrated Annual Report 2023
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 part of the contract liability as of 31 December 2022 recognized in
revenue in 2023 is disclosed in Note 23.
The decrease of the caption “other taxes” is linked to a decrease of withholding tax, property tax and tax on pylons. The increase of the
accrued expenses is due to the increase of the accrued interest payables. The irrevocable payment from Immobel (30 million) is
included in the “advances received”.
The other debts interest and non-interest-bearing are mainly payables linked to broadcasting and spectrum.
Tax on pylons
Local taxes on mobile network equipment have been levied by certain provinces and municipalities for over 20 years in Belgium.
Proximus has consistently challenged the legality of these taxes in all regions, based on a variety of legal arguments. The European
Court of Justice ruled in two Proximus cases of December 2015 that a tax on pylons is not, per se, in contradiction with European law.
Proximus continues to launch legal proceedings with respect to taxes on pylons received from municipalities and provinces in the three
regions based on other arguments.
Provisions are recorded based on assessments of the legal proceedings of outside counsel based on prevailing case law. Interest
charges for unpaid tax bills are recorded monthly at the legal tax rate.
The position recognized in the Financial Statements reflects management’s best estimate of the probable outcome.
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) 2022 2023 Net revenue recognized at one point in time 622 710 Net revenue recognized over time 5,231 5,283 Total 5,853 5,993
The disaggregation of net revenue is based on types of goods and services delivered and market and type of customers as follows:
Proximus Group 237 Integrated Annual Report 2023
As at 31 December (EUR million) 2022 2023 Domestic Residential Customer services revenues (X-play) (1) 1,782 1,880 Prepaid 41 35 Terminals (2) 231 279 Lux. Telco (3) 131 135 Other 56 46 Total Residential 2,241 2,375 Business Services (4) 1,587 1,622 Products (5) 272 299 Lux. Telco (3) 27 25 Total Business 1,887 1,945 Wholesale Fixed & Mobile wholesale services (6) 140 142 Interconnect (7) 140 116 Total Wholesale 280 258 Other 9 32 Total Domestic 4,416 4,610 BICS 1,130 1,050 TeleSign 473 496 Eliminations -166 -163 Total Net Revenue 5,853 5,993 (1) Customer services revenues (X-play): 'Play' is a subscription to either Fixed Voice, Fixed Internet, dTV or Mobile Postpaid (paying Mobile cards). A 4-Play customer subscribes to all four services. 'X-Play' is the sum of single play (1-play) and multi-play (2-play + 3-play + 4-play). (2) Terminals: corresponds to devices for Fixed Voice, Data, Mobile and related accessories. This excludes PABX, IT products and TV CPE. (3) Luxembourg Telco: including Fixed & Mobile services, Terminals & Other (4) Business Services: corresponds to Fixed Data, Fixed Voice, Mobile & IT (5) Business Products: corresponds to Terminals & IT (6) 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) (7) 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, 2023 and 2022.
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.
Unfulfilled performance obligations at 31 December 2023
Proximus Group 238 Integrated Annual Report 2023
Expected timing of recognition (EUR million) 2024 2025 > 2025 Transaction price allocated to performance obligations that are unsatisfied at reporting 201 66 36 dateRelated to contract liabilities 74 17 36 Related to contract assets 127 49 0
Unfulfilled performance obligations at 31 December 2022
Expected timing of recognition (EUR million) 2023 2024 > 2024 Transaction price allocated to performance obligations that are unsatisfied at reporting 172 54 45 date Related to contract liabilities 68 14 45 Related to contract assets 104 40 0
The increase in the balance of contract assets (see note 14.2) compared with 2022 is mainly due to the increase in the number of
Proximus SA contracts in force at the end of 2023, and to the increase in the price of handsets included in the offers.
Proximus Group 239 Integrated Annual Report 2023
Note 24. Other operating income
As at 31 December (EUR million) 2022 2023 Gain on disposal of intangible assets and property, plant and equipment 5 6 Miscellaneous reinvoicing and recovery of expenditures 50 45 Other income 5 4 Total 60 56
“Miscellaneous reinvoicing and recovery expenditures” includes compensation for network damage by third parties as well as employee
and third-party contributions for sundry services.
Note 25. Costs of materials and services related to revenue
As at 31 December (EUR million) 2022 2023 Purchases of materials 487 554 Purchases of services 1,699 1,644 Total 2,186 2,198
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 88 million in 2023
and of EUR 68 million in 2022. It includes mainly modems, WIFI boosters and set top boxes installed on client premises.
Proximus Group 240 Integrated Annual Report 2023
Note 26. Workforce expenses
As at 31 December (EUR million) 2022 2023 Salaries and wages 717 766 Social security expenses 173 177 Pension costs 51 45 Post-employment benefits other than pensions and termination benefits 25 3 External Workforce 259 282 Other workforce expenses 76 71 Total 1,301 1,343
Workforce expenses are expenses related to own employees as well as to external working parties.
Salaries & wages and social security expenses are shown net of work performed by the enterprise that is capitalized for an amount of
EUR 152 million in 2023 and EUR 142 million in 2022. The lower increase of social security expenses, compared to salaries & wages, is
partially linked to post-covid discounts granted by the government (until medio 2023).
Post-employment benefits other than pensions and termination benefits include the impact of the FFP transformation plan that was
implemented in 2019 (2023 EUR 1 million, 2022 EUR 24 million).
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).
Proximus Group 241 Integrated Annual Report 2023
Note 27. Non-Workforce expenses
As at 31 December (EUR million) 2022 2023 Service and capacity contracts and non-lease components of renting contracts 59 83 Maintenance 109 116 Utilities 75 111 Advertising and public relations 103 105 Administration, training, studies and fees 144 156 Telecommunications, postage costs and office equipment 25 28 Loss allowance 27 34 Taxes other than income taxes 29 15 Other Non-Workforce expenses 29 73 Total 601 722
The increase in Other Non-Workforce expenses is mainly related to mergers & acquisitions.
Note 28. Depreciation and amortization
As at 31 December (EUR million) 2022 2023 Amortization of licenses and other intangible assets 525 525 Depreciation of property, plant and equipment 569 572 Depreciation of right of use 84 88 Total 1,179 1,185
Proximus Group 242 Integrated Annual Report 2023
Note 29. Net finance cost
As at 31 December (EUR million) 2022 2023 Finance income 410Interest income on financial instruments At amortized costs 3 7 Other finance income 1 2 Finance costs -53-119Interests and debt charges on financial instruments at amortized costs Unsubordinated debentures -48 -51 Lease interests -4 -8 Short term debt -1 -9 Long term payables -2 -32 Discounting charges On provisions 0 -2 On pensions and other post-employment benefits 5 -7 Impairment losses On investments in associate and joint ventures -1 0 Fair value adjustments of financial instruments Not in a hedge relationship - FVTPL 0 -9 Other finance costs -2 -3 Total -49 -110
The increase of the interests on the unsubordinated debentures by EUR 3 million resulted from the issuance of new bonds in March and
November 2023 (EUR 19 million). This increase was largely offset by the positive remeasurement to fair value of the zero collar
swaption (EUR 13 million) entered by the Group to protect the value of its existing pre-hedging interest rate swap against interest rates
fluctuations and by the positive impact of the amortization of the two interest-rates hedges which were unwound in March and
November 2023 when the corresponding bonds were issued (EUR 4 million).
Interest charges on long-term payables is mainly due to the acquisition of new spectrum licences in 2022 (see note 4 and 32.2), for
which the Group has opted for deferred payment, and from the higher interest rates, which are variable and revised annually (see note
21).
The increase in short term debt compared to 2022 results from more intensive use of the commercial papers throughout 2023 and
higher interest rates paid on these balances.
The loss on pensions and other post-employments benefits (EUR - 7 million) results mainly from the effect of the changing market
conditions, notably the increase in discount rates on the obligations. In 2022, the effect of the changing market conditions led to a gain of
EUR 5 million.
The loss on the fair value adjustment of financial instruments not in a hedge relationship results mainly from the negative
remeasurement to fair value of the Virtual Power Purchase Agreements (EUR - 6 million), the remeasurement to fair value of the
liability relating to the put option granted to the former owner of Be-Mobile on their own shares (EUR - 2 million).
Proximus Group 243 Integrated Annual Report 2023
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 2022 2023 Net income attributable to ordinary shareholders (EUR million) 450 357 Adjusted net income for calculating diluted earnings per share (EUR million) 450 357 Weighted average number of outstanding ordinary shares 322,552,465 322,442,197 Weighted average number of outstanding ordinary shares for diluted earnings per share 322,552,465 322,442,197 Basic earnings per share (EUR) 1.40 1.11 Diluted earnings per share (EUR) 1.40 1.11
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 2023 and 2022.
Proximus Group 244 Integrated Annual Report 2023
Note 31. Dividends paid and proposed
2022 2023 Dividends on ordinary shares: Proposed dividends (EUR million) 388 388 Number of outstanding shares with dividend rights 323,086,209 323,317,404 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 2022 have been effectively paid in April 2023, net of the interim dividend paid in December 2022. The
interim dividends for 2023 have been paid in December 2023.
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.
As at 31 December (EUR million) Note 2022 2023 Non-current assets Derivatives held-for-hedging 12 82 58 Derivatives held-for-trading 0 13 Other derivatives 12 2 0 Current assets Derivatives held-for-hedging 15 123 2 Derivatives held-for-trading 15 1 2 Total assets 208 76 Non-current liabilities Derivatives held-for-trading 0 3 Other derivatives 21 1 0 Current liabilities Derivatives held-for-hedging 1 1 Derivatives held-for-trading 1 2 Total liabilities 3 5
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.
Proximus Group 245 Integrated Annual Report 2023
As at 31 December 2023 Fair value (EUR million) Asset Liability Forward foreign exchange contracts 2 -1 Interest rate swaps 58 0 Derivatives qualifying for hedge accounting 60 -1 Virtual Power Purchase Agreement (VPPA) 0 -3 Zero collar swaption 13 0 Forward foreign exchange contracts 2 0 Non-deliverable currency option 0 -1 Derivatives not qualifying for hedge accounting 16 -5 Total 76 -5
As at 31 December 2022 Fair value (EUR million) Asset Liability Forward foreign exchange contracts 0 -1 Interest rate swaps 205 0 Derivatives qualifying for hedge accounting 205 -1 Interest rate and currency swaps 2 0 Interests and currency related - other derivatives 0 -1 Forward foreign exchange contracts 1 -1 Derivatives not qualifying for hedge accounting 3 -2 Total 208 -3
The group entered a forward interest rate swap for a notional amount of EUR 500 million on February 2022 to cover the Group
exposure to the variability in cash flows attributable to the long-term interest rate risk associated with a highly probable forecasted
transactions, being a 10-year bond to be issued in April 2025 (Note 12). The Group applies hedge accounting to this swap (cash flow
hedging). The fair value of this instrument amounted to EUR 58 million in 2023 and EUR 82 million in 2022.
The group entered forward interest rate swaps for a total notional amount of EUR 1.1 billion on February and November 2022 to cover
the Group exposure to the variability in cash flows attributable to the long-term interest rate risk associated with two highly probable
forecasted transactions, being respectively a 10-year bond to be issued in November 2023 and a 7-year bond to be issued in March
2023 (Note 15). The Group applied hedge accounting to these swaps (cash flow hedging). The bonds were issued, and the hedges
settled in 2023, as planned. The fair value of these hedges amounted to EUR 123 million as at 31 December 2022 and were settled in
2023 for a total amount of EUR 131 million.
In order to preserve the positive Mark-to-Market value of the existing pre-hedge for April 2025, Proximus entered in May 2023 a
swaption collar. The trade was structured as a zero-cost collar swaption, so that there was no upfront premium to be paid. The Group
does not apply hedge accounting to this transaction. The fair value of this financial instrument amounted to EUR 13 million as at 31
December 2023.
On 17 July 2023, Proximus Group has signed a definitive agreement to acquire through Proximus Opal, a 58% interest in Route Mobile,
a global company specialized in CPaaS services, listen on NSE and BSE in India with a market capitalization of EUR 1.1billion. At the
signing of the deal the Group entered a derivative foreign exchange forward contract in a hedge accounting relationship, in order to
Proximus Group 246 Integrated Annual Report 2023
hedge against exposure to changes in the Indian rupee exchange rate for the purchase consideration between signing and closing. The
Group applies hedge accounting to this hedging transaction.
The acquisition of the majority stake in Route Mobile will, in accordance with Indian regulations, trigger a Mandatory Takeover Offer
(MTO) for up to 26% of the total shares outstanding. Proximus Group entered an EUR/INR option for this MTO process. The Group
does not apply hedge accounting to this hedging transaction. This hedging instrument is remeasured to Fair Value through P&L
(financial result).
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 19). The value of the IRCS was immaterial in 2023.
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 Leadership Squad 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 2023:
(EUR million)NoteGain taken to equityTransfer to profit or loss for the period Cash flow hedge on foreign currency transactionsOCI20Interest rate swapsOCI-120Amortization of cumulated remeasurements of settled interest rate swap OCI0-3Changes in other comprehensive income in relation with cash flow hedges -10 -3
The amount of EUR – 12 million corresponds to the negative remeasurement to fair value of the interest rate hedges during the year,
two of which settled respectively in March and November 2023.
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.
Proximus Group 247 Integrated Annual Report 2023
Proximus' non-current interest-bearing liabilities (including their current portions) as at 31 December 2023 and 2022 were mainly
fixed-rate debts, as shown in the tables below. These tables also show the average interest rate of these debts, as well as their average
time to maturity and the effect of the interest rate and currency swap agreements (IRCS) on the bond labelled in JPY. Lease liabilities
and current interest-bearing liabilities are not considered in these two tables.
As explained in note 32.1, the Group entered forward interest rate swap in 2022 to cover its exposure to the variability in cash flows
attributable to the long-term interest rate risk associated with bonds to be issued in 2023 and 2025. The weighted average interest
rates shown in the tables below include the effects of the settled hedges on the corresponding bonds.
As at 31 December 2023 Direct borrowing IRCS agreements Net obligations Weighted Weighted Weighted Average Amount Amount Average Notional average average Average time average time to payable payable time to amount interest rate interest rate to maturity interest rate maturity(receivable)(receivable)maturity(1)(1)(1)(EUR million)(in years) (EUR million)(in years) (EUR million)(in years) EUR Fixed 3,900 1.97% 7 3,900 1.97% 7 Variable 11 3.76% 2.96 11 3.76% 3 JPY Fixed 11 5.04% 3 -11 -5.04% 2.96 Total 3,911 1.98% 7 0 3,911 1.98% 7 (1) Weighted average interest rate taking into account last repriced interest rates for floating borrowings.
As at 31 December 2022 Direct borrowing IRCS agreements Net obligations Weighted Weighted Weighted Average Amount Amount Average Notional average average Average time average time to payable payable time to amountinterest rate interest rate to maturityinterest rate maturity(receivable)(receivable)maturity(1)(1)(1)(EUR million)(in years) (EUR million)(in years) (EUR million)(in years) EUR Fixed 2,750 1.37% 7 2,750 1.37% 7 Variable 11 2.34% 4 11 2.34% 4 JPY Fixed 11 5.04% 4 -11 -5.04% 4 Total 2,761 1.38% 7 0 2,761 1.37% 7 (1) Weighted average interest rate taking into account last repriced interest rates for floating borrowings.
The Group issued two bonds in 2023 for a notional amount of EUR 1,250 million and repaid a maturing bond for an amount of EUR 100
million. The Group acquired spectrum licences in 2022 (see Note 4) and the corresponding unique fees (fixed amounts) are payable in
annual instalments over the duration of the contractual rights acquired. The interest rate applicable to the outstanding liabilities is
variable (see note 21) and revised annually. The Group does not hedge its exposure to the variability in cash flows attributable to
changes in this interest rate.
Proximus Group 248 Integrated Annual Report 2023
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 and TeleSign segment. Indeed, their activities generate payments to and receipts from the companies they interact with in
various foreign currencies. Next to these, Proximus as well as several 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 2023 and 2022, 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
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/CHF, EUR/SDR, EUR/ZAR, EUR/AUD
and EUR/HKD, currency pairs to which it is exposed in its operating activities, for the year 2023.
Foreign currency (in EUR)Effect in P&L if foreign currency against EUR moves by :Closing rateGroup's net position as at 31/12/2023-15.0%-10.0%-5.0%-2.5%2.5%5.0%10.0%15.0%1 EUR = xxx-USD-80,466-53,644-26,822-13,41113,41126,82253,64480,4661.11-831,755GBP143,56395,70947,85423,927-23,927-47,854-95,709-143,5630.87-1,813,552CHF293,772195,84897,92448,962-48,962-97,924-195,848-293,7720.93-592,694SDR108,24372,16236,08118,041-18,041-36,081-72,162-108,2430.822,336,372ZAR-17,223-11,482-5,741-2,8712,8715,74111,48217,22320.351,484,197AUD-136,893-91,262-45,631-22,81622,81645,63191,262136,8931.634,973HKD-86-58-29-14142958868.63Total310,909207,273103,63651,818-51,818-103,636-207,273-310,909
Notes:
Net position, in the table above, is defined as the sum, for all Group entities whose functional currency is the euro, of cash
positions in foreign currencies, customers’ and suppliers’ invoices expressed in foreign currencies, and forward currency
purchase and sale contracts. Foreign currency positions are expressed in their respective currencies (not translated in EUR).
+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
Proximus Group 249 Integrated Annual Report 2023
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 considering 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.
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 32.2). However, the Group does not anticipate non-performance by any of these counterparties as it only deals
with prime financial institutions, 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 favour of some of its
institutional or governmental clients. It had granted bank guarantees for an amount of EUR 102 million as at 31 December 2023 (EUR
40 million at 31 December 2022), including an guarantee of USD 46 million in connection for the Route Mobile acquisition.
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 always guarantee the solvency and financial flexibility of the
Group. For this purpose, Proximus entered committed bilateral credit agreements with different maturities and into a committed
sustainable linked Syndicated Revolving Facilities for a total amount of EUR 750 million (EUR 751 million in 2022). 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.
Proximus Group 250 Integrated Annual Report 2023
The table below summarizes the maturity profile of the Group’s non-current (and related current portions) interest-bearing liabilities at
each reporting date. This maturity profile is based on contractual undiscounted interest payments and capital reimbursements. 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 2023 and 2022, respectively). Lease liabilities (for the leasing liabilities maturity profile, see note 6),
derivatives and current interests-bearing liabilities are not considered in this table.
(EUR million) 2023 2024 2025 2026 2027 2028-2040 As at 31 December 2022 Capital 111 610 509 18 7 1,555 Interests 47 44 30 20 20 97 Total 158 654 539 38 27 1,652 As at 31 December 2023 Capital 610 509 18 7 2,805 Interests 95 81 71 71 342 Total 705 590 89 77 3,147
The cash outflows expected in 2023 for the reporting year 2022 are impacted by Proximus short term commercial papers and treasury
loans.
The table below summarizes the repayment of spectrum liabilities (see note 4 and 21) and interest payments on the outstanding
balance. The interest shown in this table is calculated based on a rate of 5.75% for 2024 and 5% for the remaining maturities.
Spectrum liabilities are included in the current and non-current interest-bearing liabilities.
Bank credit facilities at 31 December 2023
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
750 million (EUR 751 million in 2022). These facilities are provided by a diversified group of Belgian and international banks. As at 31
December 2023, there were no outstanding balances under any of these facilities. A total of EUR 750 million (EUR 751 million in 2022)
of credit lines was therefore available for drawdown as at 31 December 2023.
To secure the funding of the announced Route Mobile acquisition, Proximus has entered a bridge facility of EUR 850 million with an
international bank for a period of 12 months (with the option to extend for another 6 months).
The Group also uses a EUR 5 billion Euro Medium-term Note (“EMTN”) Program and a EUR 1 billion Commercial Paper (“CP”) Program.
As at 31 December 2023, there was an outstanding balance under the EMTN Program of EUR 3,500 million, whereas the Commercial
Paper Program was fully undrawn with an outstanding amount of EUR 0 million.
Proximus Group 251 Integrated Annual Report 2023
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 2022 2023 Investments, Cash and cash equivalents 16 / 17 299 716 Derivatives (current and non-current) 12 208 72 current assets 2 0 Assets 509 787 Non-current liabilities (*) 19.1 -2,876 -3,518 Current liabilities (*) 19.2 -662 -699 Liabilities -3,538 -4,217 Net financial position (*) -3,030 -3,429 Of which Leasing liabilities 272 298 Adjusted financial position (**) -2,758 -3,131 (*) 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, 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%.
Proximus Group 252 Integrated Annual Report 2023
Note 32.4 Categories of financial instruments
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 2023, the carrying amount 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 268 million, or 7%, their fair value (EUR 401 million in 2022, or 17%).
The 2023 and 2022 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 respectively 31 December 2023 and 31
December 2022 for similar debentures with the same remaining maturities.
The Group did not reclassify, during the period, financial instruments from one category to another.
Proximus Group 253 Integrated Annual Report 2023
The following table shows the classifications under IFRS 9 for each class of assets and financial liabilities as at 31 Dec 2023:
Classification under Carrying amount As at 31 December 2023 (EUR million) Note Fair value IFRS 9 under IFRS 9 ASSETS Non-current assets Equity investments 9 FVOCI 3 3 Other non-current assets Derivatives held for trading 32.1 FVTPL 13 13 Derivatives held-for-hedging 32.1 Hedging instrument 58 58 Other financial assets Amortized cost 6 6 Current assets Trade receivables 14 Amortized cost 866 866 Interests bearing Other receivables Amortized cost 15 15 Non-interests bearing Other receivables Amortized cost 19 19 Derivatives held for trading 32.1 FVTPL 2 2 Derivatives held-for-hedging 32.1 Hedging instrument 2 2 Cash and cash equivalents Short-term deposits 17 Amortized cost 488 488 Cash at bank and in hand 17 Amortized cost 227 227 LIABILITIES 32.1 Interest-bearing liabilities Unsubordinated debt (bonds, notes) 19.1 Amortized cost 2,881 2,684 Credit institutions 19.1 Amortized cost 400 370 Other loans 19.1 Amortized cost 27 27 Non-interest-bearing liabilities Derivatives held for trading 32.1 FVTPL 3 3 Other non-current payables 21 Amortized cost 43 43 Other amounts payable, interest-bearing Amortized cost 559 559 Current liabilities Interest-bearing liabilities, current portion Unsubordinated debt (bonds, notes) 18 Amortized cost 600 597 Other loans 19.1 Amortized cost 10 10 Interest-bearing liabilities Credit institutions Amortized cost 1 1 Trade payables Amortized cost 1,433 1,433 Other current payables Derivatives held for trading 32.1 FVTPL 1 1 Derivatives held for trading 32.1 FVTPL 1 1 Derivatives held-for-hedging 32.1 Hedging instrument 1 1 Other debt FVTPL 5 5 Other amounts payable Amortized cost 453 453 Other amounts payable, interest-bearing Amortized cost 37 37 FVTPL: Financial assets/liabilities at fair valuethrough profit and lossFVTOCI: Financial assets at fair value through other comprehensive income
Proximus Group 254 Integrated Annual Report 2023
The following table shows the classifications under IFRS 9 for each class of assets and financial liabilities as at 31 Dec 2022:
Classification under Carrying amount As at 31 December 2022 (EUR million) Note Fair value IFRS 9 under IFRS 9 ASSETS Non-current assets Equity investments 9 FVOCI 1 1 Other non-current assets Other derivatives 32.1 FVTPL 2 2 Derivatives held-for-hedging 32.1 Hedging instrument 82 82 Other financial assets Amortized cost 7 7 Current assets Trade receivables 14 Amortized cost 938 938 Interests bearing Other receivables Amortized cost 8 8 Non-interests bearing Other receivables Amortized cost 17 17 Derivatives held for trading 32.1 FVTPL 1 1 Derivatives held-for-hedging 32.1 Hedging instrument 123 123 Cash and cash equivalents Short-term deposits 17 Amortized cost 10 10 Cash at bank and in hand 17 Amortized cost 288 288 LIABILITIES Non-current liabilities Interest-bearing liabilities Unsubordinated debt (bonds, notes) 19.1 Amortized cost 2,239 1,887 Credit institutions 19.1 Amortized cost 400 352 Other loans 19.1 Amortized cost 37 37 Non-interest-bearing liabilities Other derivatives 32.1 FVTPL 1 1 Other non-current payables 21 Amortized cost 85 85 Other amounts payable, interest-bearing Amortized cost 592 592 Current liabilities Interest-bearing liabilities, current portion Unsubordinated debt (bonds, notes) 19.2 Amortized cost 100 99 Credit institutions 19.2 Amortized cost 1 1 Other loans 19.2 Amortized cost 10 10 Interest-bearing liabilities Unsubordinated debt (bonds, notes) 19.2 Amortized cost 477 477 Trade payables Amortized cost 1,483 1,483 Other current payables Derivatives held for trading 32.1 FVTPL 1 1 Derivatives held-for-hedging 32.1 Hedging instrument 1 1 Other debt FVTPL 3 3 Other amounts payable Amortized cost 415 415 Other amounts payable, interest-bearing Amortized cost 25 25 FVTPL: Financial assets/liabilities at fair value through profit and lossFVTOCI: Financial assets at fair value through other comprehensive income
Proximus Group 255 Integrated Annual Report 2023
Figures for 2022 have been adjusted to bring them into line with the presentation of figures for 2023. The adjustments are as follows:
Other non-current payables that are interest-bearing have been isolated from the other non-current payables.
Trade payables that are interest-bearing payables have been reclassified into "Other current payables Interest-bearing”.
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:
Derivatives in Level 2
These 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 and also the zero-collar swaption entered into to
preserve the positive Mark-to-Market value of the existing pre-hedge for April 2025. 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 2023 for similar debentures with
the same remaining maturities.
The financial instruments classified among the level 3 category include:
Virtual Power Purchase Agreement
The power component of the Virtual Power Purchase Agreement, entered in 2023, is an embedded derivative instrument where
Proximus has agreed to pay a fixed price for the associated electricity and to receive the electricity spot price with a monthly net
settlement in cash. There is no physical delivery of the electricity.
The valuation of the power component of the VPPA is considered as a ‘level 3’ fair value. It is determined using a discounted cash
flow model. The main factors determining the fair value of the VPPA agreement are the discount rates (level 2), the estimated
electricity volume based on the historical power production of the windfarm (level 3) and the forward market prices of electricity
(level 2 & level 3).
Put option
The put option is the right granted to the former owner of Be-Mobile to sell its own remaining shares to Proximus at specific times
for a price to be determined in accordance with contractually agreed terms. The elements on which the valuation is based are not
directly or indirectly observable on the market. The instrument fair value is very depending on Be-mobile realistic present and
future performances.
Proximus Group 256 Integrated Annual Report 2023
Fair values measurement at end of the As at 31 December 2022 reporting period using :Classification under Fair value IFRS 9 (EUR million) Note Level 1 Level 2 Level 3 ASSETS Non-current assets Equity investments 9 FVOCI 1 1 Other non-current assets Derivatives held for trading 32.1 FVTPL 2 2 Derivatives held-for-hedging 32.1 Hedging instrument82 82 Current assets Non-interest-bearing receivables Derivatives held for trading 32.1 FVTPL 1 1 Derivatives held-for-hedging 32.1 Hedging instrument123 123 LIABILITIES Non-current liabilities Interest-bearing liabilities Unsubordinated debt (bonds, notes) except for their 19.1 Amortized cost 2,239 1,887 "non-closely related" embedded derivatives Credit institutions 19.1 Amortized cost 400 352 Other loans 19.1 Amortized cost 37 37 Non-interest-bearing liabilities Other derivatives 32.1 FVTPL 1 1 Current liabilities Interest-bearing liabilities, current portion Unsubordinated debentures except for their "non-19.2 Amortized cost 100 99 closely related" embedded derivatives Credit institutions 19.2 Amortized cost 1 1 Other loans 19.2 Amortized cost 10 10 Interest-bearing liabilities Unsubordinated debt (bonds, notes) 19.2 Amortized cost 477 477 Non-interest-bearing liabilities Other derivatives 32.1 FVTPL 1 1 Derivatives held-for-hedging 32.1 Hedging instrument1 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
Proximus Group 257 Integrated Annual Report 2023
Fair values measurement at end of the As at 31 December 2023 reporting period using : Classification under Fair value IFRS 9(EUR million) Note Level 1 Level 2 Level 3 ASSETS Non-current assets Equity investments 9 FVOCI 3 3 Other non-current assets Derivatives held for trading 33.1 FVTPL 13 13 Derivatives held for hedging 32.1 Hedging instrument58 58 Current assets Non-interest-bearing receivables Derivatives held for trading 32.1 FVTPL 2 2 Derivatives held-for-hedging 33.1 Hedging instrument2 2 LIABILITIES Non-current liabilities Interest-bearing liabilities Unsubordinated debt (bonds, notes) except for their 19.1 Amortized cost 2,881 2,684 "non-closely related" embedded derivatives Credit institutions 19.1 Amortized cost 400 370 Other loans 19.1 Amortized cost 27 27 Non-interest-bearing liabilities Other derivatives 32.1 FVTPL 2.54 2.54 Current liabilities Interest-bearing liabilities, current portion Unsubordinated debt (bonds, notes) 19.2 Amortized cost 600 597 Other loans 19.2 Amortized cost 10 10 Interest-bearing liabilities Credit institutions 19.2 Amortized cost 1 1 Non-interest-bearing liabilities Other derivatives 32.1 FVTPL 2 1 Derivatives held-for-hedging 33.1 Hedging instrument1 1 Other debt FVTPL 5 5 FVTPL: Financial assets/liabilities at fair value through profit and loss FVTOCI: Financial assets at fair value through other comprehensive income
Proximus Group 258 Integrated Annual Report 2023
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) 2022 2023 Revenues 151 97 Costs of materials and services related to revenue -132 -121 Net finance costs 0 -26 Dividends received 340 245
Proximus SA position with its subsidiaries and joint operations As at 31 December (EUR million) 2022 2023 Trade receivables 24 21 Trade payables -33 -26 Interest-bearing receivables/liabilities -801 -695 Other receivables and liabilities 0 -551
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 4.62%. The
remaining 41.86% 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. The Group also acquired substantive
spectrum rights (note 4 intangible assets with finite useful life) in the spectrum auction organised by regulator BIPT, a State-related
entity. 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
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
Proximus Group 259 Integrated Annual Report 2023
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 2022 the Banx project was started up and had a minor impact on the consolidated figures,
Banx is a fully digital Belgian banking experience, imagined by Proximus, powered by Belfius. Banx raises the bar for digital banking and
allows users to monitor the impact of their purchases on the planet. The banking app aims to encourage users to make more conscious
and sustainable choices.
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 2023 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, except for the CEO. All members of the Board of Directors, except for 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, except for 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 and Proximus ART. He is
member of the Board of Connectimmo, our real estate affiliate. He does not receive any fees for these mandates.
For the performance of their Board mandates, the non-executive Directors do not receive any variable performance-based
remuneration, nor do the receive benefits linked to complementary pension plans or any other group insurance.
The total remuneration for the Directors amounted to gross EUR 1,491,432for 2023 to gross EUR 987,723 for 2022. 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:
2022 2023 Board of Directors 7 14 Audit and Compliance Committee 4 6 Nomination and Remuneration Committee 4 5 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 2023, a total gross amount (included the long-term performance-based payments) of EUR 9,110,937
(before employer social security costs) was paid or granted in aggregate to the members of the Leadership Squad, Chief Executive
Officer included. In 2023, the members of the Leadership Squad were Guillaume Boutin, Dirk Lybaert (until 1 September 2023), Ben
Proximus Group 260 Integrated Annual Report 2023
Appel (as of 16 August 2023), Geert Standaert, Renaud Tilmans, Jan Van Acoleyen, Anne-Sophie Lotgering, Jim Casteele, Antonietta
Mastroianni and Mark Reid.
For the year ended 31 December 2022, a total gross amount (included the long-term performance-based payments) of EUR
7,885,081 (before employer social security costs) was paid or granted in aggregate to the members of the Leadership Squad, Chief
Executive Officer included. In 2022, the members of the Leadership Squad were Guillaume Boutin, Dirk Lybaert, Geert Standaert,
Renaud Tilmans, Jan Van Acoleyen, Anne-Sophie Lotgering, Jim Casteele, Antonietta Mastroianni and Mark Reid.
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 2025 (granted in 2022) or in May 2026 (granted in 2023) depending on the achievement of company
driven performance criteria which consist of the Group free cash flow, the reputation index, the company’s Total Shareholder
Return compared to a predefined group of other European telecom operators and an Environmental, Social and Governance
KPI.
As at 31 December EUR 2022 2023 Short-term employee benefits 5,702,296 6,411,511 Post-employment benefits 820,712 1,186,739 Performance based payments 1,362,073 1,512,687 Total 7,885,081 9,110,937 * 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.
Proximus Group 261 Integrated Annual Report 2023
Note 34. Rights, commitments and contingent liabilities
Note 34.1. 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 labor 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 way 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.
The telecommunications industry and related service businesses are characterized by the existence of many 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 also include proceedings before the Belgian Institute for Postal services and
Telecommunications ("BIPT"), appeals against decisions taken by the Belgian competition Authority, and proceedings with the tax
administrations.
Note 34.1.1. 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, many documents were seized (electronic data such as a full copy of mailboxes 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 advice 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, 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 advice 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 about 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.
Proximus Group 262 Integrated Annual Report 2023
Based on the facts and information available per end December 2023, management recorded no provision for this case.
Note 34.1.2. 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
between 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 several 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 the income statement of the second quarter 2009.
Proximus filed an appeal against the ruling of the Competition Authority with the Court of Appeal of Brussels, contesting many
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. This “pourvoi en cassation” was
rejected on 12th of January 2023, meaning that the procedure before the Brussels Court of Appeal further continues.
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 Belgian 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.
Following the settlements with Telenet, KPN, BASE Company and Orange, the only remaining claimants are BT, Verizon and Colt
Telecom.
Per end December 2023, management kept a provision for this case based on their best estimate and information available.
Note 34.1.3. GDPR case Telesign
On 23rd June 2023, NOYB (a non-profit privacy activist organisation) representing 9 (currently unnamed) complainants has made
public that it has filed a complaint in connection with the activities of Telesign before the Belgian Data Protection Authority (BDPA).
In its complaint, NOYB alleges that Proximus failed to answer adequately and timely the access requests of 2 complainants, that BICS
did not properly inform data subjects about the processing of their personal data, misused electronic communication data for other
purposes than those allowed by the regulatory framework and transferred personal data to a US company without respecting the
Proximus Group 263 Integrated Annual Report 2023
conditions set after the so-called “Schrems II decision”, and that Telesign did not properly inform data subjects about the processing of
their personal data, lacks a valid legal basis, applies unlawful profiling and automated decision making, and does not respect the
conditions of the aforementioned “Schrems II decision” when transferring personal data to the US and further to their customers.
To date, Proximus neither any of its subsidiaries has received any communication from the BDPA in relation to this complaint.
Nonetheless, Proximus Group wishes to stress its continued commitment to act in accordance with relevant data protection regulation,
and it can already state that Telesign and BICS have a data privacy program in place that considers global laws and regulations,
including the General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA). Proximus, BICS and
Telesign also constantly review internal policies and practices, for compliance with the evolving regulatory landscape.
Proximus, BICS and Telesign believe that they have objective arguments to counter the complaint on the merits. Based on the facts and
information available, management recorded no provision for this case.
Note 34.1.4. Tax proceedings
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 2018. BICS filed appeals against the assessments with the competent Indian
Courts opposing the view of the Indian tax authorities that Indian withholding taxes are due on the payments. Furthermore, BICS
opposed 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. For the period 1 April 2007 to 31 March 2008 and the period 1 April 2011 to 31 March 2012, the Income
Tax Appellate Tribunal annulled the withholding tax assessment and referred the case back to the Indian tax authorities which may
initiate new withholding tax assessments for those years by 31 March 2024. For the other periods, the Indian competent Courts issued
positive judgments, annulling the withholding tax assessments. The Indian tax authorities have not appealed against the court decisions
yet. Though the limitation to file an appeal has lapsed, the tax authorities can still file an appeal along with an application for
condonation of delay. Such an application for condonation of delay is generally allowed by the Indian Courts. Management assesses that
the position as recognized in the financial statements reflects the best estimate of the probable outcome.
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”).
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 EU General 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 this decision with the Court of Justice of the EU
(hereafter 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. On
20 September 2023, the EU General Court determined that the European Commission was correct to find, in 2016, that the Belgian tax
scheme relating to excess profit infringes EU State aid rules. On 30 November 2023, BICS introduced an appeal before the CJEU
against the decision of the EU General Court. Management assesses that the position as recognized in the financial statements still
reflects the best estimate of the probable outcome.
Proximus Group 264 Integrated Annual Report 2023
Note 34.2. Capital expenditure commitments
At 31 December 2023, the Group had contracted commitments of EUR 708 million (intangible assets EUR 35 million; tangible assets
EUR 673 million). Investments will occur mainly during the year 2024 (€565 million).
At 31 December 2022 the contracted commitments amounted EUR 977 million (intangible assets EUR 19 million; tangible assets EUR
958million)
In addition, by acquiring certain spectrum rights in 2022, the group committed to pay annual fees, that it considers to be variable and
contingent, for a net present value of EUR 270 million. The “annual fee" is a spectrum availability fee and is subject to an annual
indexation adjustment.
The tangible assets are mainly related to commitments related to technical and network equipment related to the further accelerated
investment plan for Fiber.
Note 34.3. 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 5,2 million per end of 2023.
Note 34.4. Other rights and commitments
At 31 December 2023, the Group has the following other rights and commitments:
Note 34.4.1. Guarantees
The Group received guarantees for EUR 7 million from its customers to guarantee the payment of its trade receivables and guarantees
for EUR 30 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 204 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.
Note 34.4.2. Partnership with HCL Technologies
In 2021 Proximus entered a partnership with HCL Technologies whereby that company operates and maintains Proximus' private cloud
infrastructure. The partnership foresaw a transition phase, that started in October 2021 and that was finished in February 2022.
HCL and Proximus concluded an asset financing arrangement (nominal amount of EUR 65 million, carrying amount of EUR 40 million,
see Note 5) for the infrastructure that remains in the Proximus datacenters and under Proximus control which is recognized as a finance
lease for which Proximus has an obligation to repurchase the assets. On top of that financing for existing assets the partnership includes
a lease for the renewal of infrastructure (nominal amount of €31 million, carrying amount of €25 million, see Note 6).
Note 34.4.3. Partnership between BICS and Ooredoo Group
BICS has entered into multiyear contractual agreements whereby BICS will manage end-to-end traffic for operators. These
agreements include a commitment (subject to satisfying certain conditions on ongoing basis) from BICS to send inbound traffic to certain
Proximus Group 265 Integrated Annual Report 2023
operators for an aggregated amount not exceeding EUR 50 million per annum with a maximum duration of 3 years, of which 2 years
remaining.
Note 35. Share-based Payment
Discounted Share Purchase Plans
In 2023 and 2022, the Group launched Discounted Share Purchase Plans.
Under the 2023 and 2022 plans, Proximus sold respectively 2,746 and 10,299 shares to the senior management of the Group at a
discount of 16.66% compared to the market price (discounted price for EUR 6.12 per share in 2023 and for EUR 13.47 in 2022). The
cost of the discount is below EUR one million in 2023 and in 2022 and was recorded in profit or losses workforce expenses (see note
26). This has a dilutive effect.
Performance Value Plan
In 2019, 2020 and 2021 Proximus launched tranches of the “Performance Value Plan” for its senior management. Under this Cash-
Settled 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.
In 2022 and 2023, Proximus launched tranches of the “Performance Value Plan” for its senior management. Under this Cash-Settled
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 4 KPI’s which are: the Proximus’ Total Shareholder Return compared to a group of peer
companies (25%), the group Free Cash Flow (25%), the Reputation Index (25%) and the Environmental, Social and Governance (ESG)
(25%). The final KPI is the average of the intermediary results of the 3 calendar years.
The fair value of the tranches 2021, 2022 and 2023 amounted respectively to EUR 5, 4 and 5 million as of 31 December 2023 based
on actual calculation. The annual charge of these tranches amounted to respectively EUR 2 million each.
Proximus Group 266 Integrated Annual Report 2023
Note 36. Relationship with the auditors
The Group expensed for the Group’s auditors during the year 2023 for an amount of EUR 2.621.416 for audit mandate and control
missions and EUR 127.050 for other missions.
This last amount is detailed as follows:
EUR Auditor Network of auditorAudit mandate 1,289,967 601,603 Other Control Missions 151,838 578,008 Other missions 113,460 13,590 Total 1,555,265 1,193,200
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 Leadership Squad.
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)
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
business operations (see definitions).
Intercompany transactions between legal entities of the Group are invoiced on an arm’s length basis.
Proximus Group 267 Integrated Annual Report 2023
As at 31 December 2023Proximus Group underlying by segment Lease Reported depreciatio(EUR million) Incidental UnderlyingDomesticBICS TeleSign Eliminations (IFRS 16) n and interest Net revenue 5,993 0 0 5,993 4,610 1,050 496 -163 Other operating income 56 0 -7 49 55 1 2 -9 TOTAL INCOME 6,048 0 -7 6,042 4,665 1,051 497 -172 Costs of materials and services -2,198 -1 6 -2,193 -1,184 -783 -380 154 related to revenue Direct margin 3,851 -1 -1 3,849 3,481 268 117 -18 Workforce expenses -1,343 0 14 -1,329 -1,166 -82 -84 3 Non workforce expenses -722 -89 49 -762 -679 -60 -38 15 TOTAL OPERATING EXPENSES -2,064 -89 62 -2,091 -1,845 -142 -122 17 OPERATING INCOME before 1,786 -90 62 1,757 1,636 127 -5 0 depreciation & amortization Depreciation and amortization -1,185 0 0 -1,185 -1,123 -43 -19 0 OPERATING INCOME 601 -90 62 572 513 84 -25 0 Net finance costs -110 Share of loss on associates -30 INCOME BEFORE TAXES 461 Tax expense -104 NET INCOME 357 Attributable to: 0 Equity holders of the parent (Group 357 share) Non-controlling interests 0
Proximus Group 268 Integrated Annual Report 2023
As at 31 December 2022Proximus Group underlying by segment Lease Reported depreciatio(EUR million) Incidental UnderlyingDomesticBICS TeleSign Eliminations (IFRS 16) n and interest Net revenue 5,853 0 0 5,853 4,416 1,130 473 -166 Other operating income 60 0 5 56 62 2 1 -9 TOTAL INCOME 5,914 0 5 5,909 4,478 1,132 473 -174 Costs of materials and services -2,186 1 0 -2,187 -1,118 -869 -360 159 related to revenue Direct margin 3,728 1 5 3,722 3,360 263 114 -15 Workforce expenses -1,301 0 -36 -1,265 -1,111 -85 -71 2 Non workforce expenses -601 83 -13 -671 -584 -58 -41 13 TOTAL OPERATING EXPENSES -1,902 83 -49 -1,936 -1,695 -143 -112 15 OPERATING INCOME before 1,826 84 -44 1,786 1,665 120 1 0 depreciation & amortization Depreciation and amortization -1,179 0 0 -1,179 -1,085 -76 -18 0 OPERATING INCOME 647 84 -44 607 580 44 -17 0 Net finance costs -49 Share of loss on associates -20 INCOME BEFORE TAXES 578 Tax expense -128 NET INCOME 450 Attributable to: 0 Equity holders of the parent (Group 450 share) Non-controlling interests 0
Proximus Group 269 Integrated Annual Report 2023
In respect of geographical areas, the Group realized EUR 3,912 million net revenue in Belgium in 2022 and EUR 4,080 million in 2023
based on the country of the customer. The net revenue realized in other countries amounted to EUR 1,942 million in 2022 and EUR
1,913million in 2023. More than 90% of the segment assets are located in Belgium.
Note 38. Recent IFRS pronouncements
The Group does not early adopt the standards or interpretations that are not yet effective at 31 December 2023.
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
2024 or later:
Newly issued standards, interpretations and amendments:
Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current (2024)
Amendments to IAS 1 – Non-current liabilities with covenants (2024)
Amendments to IFRS 16 – Lease liability in a sale and lease back (2024)
Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements (2024)
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 2024.
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.
Consolidated
management
report
Management discussion and analysis of
financial results 271
Risk management report 300
Internal control system 314
Expertise of the Audit & Compliance
Committee members 316
Evolution in research and development
activities 316
Other information 319
Integrated annual report 2023
Proximus Group 271 Integrated annual report 2023
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 adjustments. 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 adjustments, i.e., revenues and costs
that are unusual or not directly related to Proximus’ business
operations, and which had a significant impact on the year-on-
year variance of the Proximus Group revenue or EBITDA. In
addition, following the application of the IFRS 16 accounting
standard, the definition of “underlying” was adapted to include
lease depreciation & interest 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.
Remark: “Underlying Revenue” corresponds to “Total Income”, excluding adjustments.
Rounding
In general, all figures are rounded. Variances are calculated from
the source data before rounding, implying that some variances
may not add up.
(EUR million) 2022 2023 2022 2023
Reported
5,914 6,048 1,826 1,786
Adjustments
-5 -7 -40 -29
Underlying
5,909 6,042 1,786 1,757
Adjustments
-5 -7 -40 -29
Lease Depreciations
-83 -84
Lease Interest
-2 -7
Transformation
39 14
Acquisitions, mergers and disposals
-5 -6 7 48
Litigation/regulation
-2 -1
Revenues
Ebitda
Proximus Group 272 Integrated annual report 2023
Key Figures - 10-year overview
(1) Earnings Before Interests, Taxes, Depreciation and Amortization.
(2) Cash flow before financing activities but after lease payments.
(3) FCF adjsuted to exclude M&A transactions and M&A related transactions costs.
(4) i.e. excluding Treasury shares
(5) No difference between basic and diluted earnings per share
(6) Accounting view (not cash view)
(7) Net debt excluding lease liabilities, Proximus definition
(8) Capex was restated for years 2020 and 2021
2018: IFRS15
2019, 2020, 2021, 2022, 2023: IFRS15&16
Income Statement
(EUR million)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Reported income 6,112 6,012 5,873 5,802 5,829 5,697 5,481 5,579 5,914 6,048
Revenue adjustments 248 17 3 24 21 11 2 1 5 7
Underl y ing revenu e 5,864 5,994 5,871 5,778 5,807 5,686 5,479 5,578 5,909 6,042
Reported EBITDA (1) 1,755 1,646 1,733 1,772 1,794 1,676 1,922 1,828 1,826 1,786
Lease depreciation and interest N/A N/A N/A N/A N/A 84 84 82 84 90
EBITDA adjustments 102 -88 -63 -51 -70 -278 1 -26 -44 -62
Underl y ing EB ITDA (1) 1,653 1,733 1,796 1,823 1,865 1,870 1,836 1,772 1,786 1,757
Depreciation and amortization -821 -869 -917 -963 -1,016 -1,120 -1,116 -1,183 -1,179 -1,185
Oper ating income (EB IT) 933 777 816 809 778 556 805 645 647 601
Net finance income / (costs) -96 -120 -101 -70 -56 -47 -48 -54 -49 -110
Share of loss on associates -2 -2 -1 -2 -1 -1 -1 -10 -20 -30
Income bef or e t axes 835 655 715 738 721 508 756 581 578 461
Tax expense -154 -156 -167 -185 -191 -116 -174 -137 -128 -104
Non-controlling interests 27 17 25 30 22 19 18 1 0 0
Net income (Gr ou p share) 654 482 523 522 508 373 564 443 450 357
Cash flows (EUR million) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Cash flows from operating activities 1,447 1,386 1,521 1,470 1,558 1,655 1,515 1,621 1,717 1,620
Cash paid for Capex -916 -1,000 -962 -989 -1,099 -1,091 -1,089 -1,137 -1,441 -1,453
Cash flows from / (used in) other investing activities 180 22 0 -189 -8 12 9 -168 -20 -57
Lease payments N/A N/A N/A N/A N/A -78 -82 -79 -89 -92
Fr ee cas h f l ow (2) 711 408 559 292 451 498 352 237 167 18
Adj u st ed Fr ee Cash Flow (3 ) 408 454 559 517 501 504 354 376 181 61
Cash flows from / (used in) financing activities other than lease payments -364 -608 -764 -256 -444 -515 -363 -299 -119 398
Net increase / (decrease) of cash and cash equivalents 347 -200 -205 36 7 -17 -13 -62 50 416
Balance sheet (EUR million) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Balance sheet total 8,522 8,283 8,117 8,527 8,671 8,978 8,779 9,233 10,541 11,153
Non-current assets 6,339 6,386 6,372 6,735 6,850 7,160 7,120 7,548 8,589 8,932
Investments, cash and cash equivalents 710 510 302 338 344 327 313 249 299 716
Shareholders' equity 2,779 2,801 2,819 2,857 3,005 2,856 2,903 2,978 3,307 3,300
Non-controlling interests 189 164 162 156 148 142 123 0 1 0
Liabilities for pensions, other post-employment benefits and termination benefits 504 464 544 568 605 864 645 508 413 378
Net financial position (incl. lease liability) N/A N/A N/A N/A N/A -2,492 -2,639 -3,013 -3,030 -3,429
Net financial position (excl. lease liability as from 2019) -1,800 -1,919 -1,861 -2,088 -2,148 -2,185 -2,356 -2,740 -2,758 -3,131
Proximus share 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Weighted average number of ordinary shares (4) 320,119,106 321,767,821 322,317,201 322,777,440 322,649,917 322,918,006 322,752,015 322,751,990 322,552,465 322,442,197
Basic earnings per share - as reported (EUR) (5) 2.04 1.50 1.62 1.62 1.58 1.16 1.75 1.37 1.40 1.11
Total dividend per share (EUR) (6) 1.50 1.50 1.50 1.50 1.50 1.50 1.20 1.20 1.20 1.20
Data on employees 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Number of employees (full-time equivalents) 14,187 14,090 13,633 13,391 13,385 12,931 11,423 11,532 11,634 11,654
Average number of employees over the period 14,770 14,040 13,781 13,179 13,161 13,007 11,544 11,445 11,529 11,650
Underlying revenue per employee (EUR) 410,746 426,958 425,997 438,413 441,238 437,173 474,647 487,381 512,534 518,604
Total income per employee (EUR) 413,826 428,194 426,201 440,240 442,870 438,005 474,783 487,451 512,936 519,163
Underlying EBITDA per employee (EUR) 111,923 123,467 130,315 138,325 141,681 143,801 159,057 154,814 154,912 150,844
Total EBITDA per employee (EUR) 118,798 117,251 125,743 134,483 136,342 128,856 166,467 159,721 158,394 153,326
Ratios - on reported basis 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Return on Equity 23.5% 17.2% 18.6% 18.3% 16.9% 13.1% 19.4% 14.9% 13.6% 10.8%
Direct margin 60.4% 60.5% 61.8% 62.7% 63.5% 64.6% 65.3% 64.2% 63.0% 63.7%
Net debt / EBITDA (7) 1.03 1.17 1.07 1.18 1.20 1.30 1.23 1.50 1.51 1.75
EBITDA Margin 29% 27% 30% 31% 31% 29% 35% 33% 31% 30%
Ratios - on underlying basis 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Return on Equity 21.8% 18.9% 19.4% 19.2% 18.4% 19.9% 19.5% 15.5% 14.6% 11.8%
Direct margin 57.8% 59.6% 61.8% 62.5% 63.4% 64.6% 65.3% 64.2% 63.0% 63.7%
Net debt / EBITDA (7) 1.09 1.11 1.04 1.15 1.15 1.17 1.28 1.55 1.54 1.78
EBITDA Margin 28% 29% 31% 32% 32% 33% 34% 32% 30% 29%
CAPEX 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total CAPEX (8) 994 1,002 949 1,092 1019 1035 1237 1246 1923 1328
Capex excl Spectrum and Football right 912 927 949 1,002 1019 1027 1000 1203 1,305 1,325
Proximus Group 273 Integrated annual report 2023
2. Proximus Group
Revenue
The Proximus Group ended the year 2023 with total
underlying revenue of EUR 6,042 million, an increase on
the previous year of 2.2% or EUR 133 million.
Within the mix, the underlying Domestic revenue was up by
4.2% to a total of EUR 4,665million.
The Residential revenue totaled EUR 2,396 million, up year-
on-year by +6.0%. This was mainly driven by a +5.5%
increase for revenue from Customer Services, with a strong
commercial performance throughout 2023 driving growth in
the main customer bases, further supported by price
indexations. Especially convergent revenue was up strongly,
up by +9.4%. Moreover, revenue from Terminals was up by
EUR 48 million from the year before.
The 2023 revenue of the Business unit ended +3.1% above
the 2022 base. Business Services revenue improved its trend
in 2023 from the preceding year, up by +2.2%, with higher
revenue from IT Services (+6.8%), Fixed Data (+4.4%) and
1
Provides a view on the business performance, filtering out the
currency effects by using a constant currency.
Mobile services (+1.2%) more than offsetting the ongoing but
moderating Fixed Voice revenue erosion. It was also a strong
year for customer IT equipment installations, posting a year-
on-year revenue increase of +14.1%.
Proximus’ Wholesale unit posted 2023 revenue of EUR 258
million, -8.0% or EUR -23 million down from 2022. This is
fully driven by a EUR -24 million decrease in low-margin
interconnect revenue. Revenue generated by Fixed and Mobile
wholesale services was up by +0.9%.
Telesign contributed to the growth in 2023 Group revenue
while BICS cycled against an exceptional second half of 2022.
Both International segments have been impacted by currency
headwinds.
Telesign posted EUR 497 million of revenue over 2023, a
year-on-year increase of +5.1% impacted by foreign exchange
headwinds (+8.5% on a constant currency basis
1
), resulting
from growing revenue from both Digital Identity and
Communication services (CPAAS).
BICS came back from an exceptional 2022, which still partially
benefitted from elevated post-Covid travel and in the second
half of the year, a very beneficial regional mix. For 2023, BICS
posted revenues of EUR 1,051 million, down year-on-year by
-7.2% or EUR -81 million. This partly reflects USD currency
Group underlying revenue
EUR 6,042M
Up 2.2% YoY
Proximus posted an overachievement of its full year 2023 revenue and EBITDA guidance.
The Domestic segment delivered an excellent commercial momentum
Underlying Domestic revenue was up by 4.2% to a total of EUR 4,665 million for full-year 2023.
Internationally, Telesign delivered 5.1% revenue growth, and BICS, cycling against high comparable, -7.2%
mainly driven by low-margin Legacy Voice.
Significant inflationary effects on Proximus OPEX were mitigated by the multi-year cost efficiency program.
The Domestic segment EBITDA decreased by -1.7% year-on-year, including a return to growth in the fourth
quarter.
Despite its lower revenue, BICS posted a growing EBITDA of +5.5% year-on-year. Telesign closed the year
at EUR -5 million, reflecting OPEX investments in its growth strategy.
The underlying Group EBITDA for the year 2023, totalled EUR 1,757 million, down by -1.6%.
Group CapEx for the full year 2023 totaled EUR 1,325 million, excluding spectrum and football rights.
Proximus Group generated FCF of EUR 18 million in 2023, or EUR 61 million on adjusted basis.
Proximus Group 274 Integrated annual report 2023
headwinds on BICS’ topline (-5.8% on constant currency
basis). BICS’ year-on-year revenue decrease was primarily
driven by the loss of high volume-low margin traffic in Legacy
Voice services and to a lesser degree by lower Core services
revenue, while posting an increase in Growth services revenue.
Group revenue by segment (underlying, M€)
Proximus Group 275 Integrated annual report 2023
Direct Margin
Over the full year 2023, Proximus Group posted an
underlying direct margin of EUR 3,849 million, i.e.,
up by EUR 127 million or 3.4% on full-year 2022,
with Domestic contributing significantly to this
uplift. The Domestic direct margin was up by 3.6%
to a total of EUR 121 million. Compared to the
preceding year, BICS’ direct margin was positive by
+1.9%, reaching EUR 268 million, and Telesign
grew its direct margin by +3.0%, totaling EUR 117
million.
Direct Margin (underlying, M€)
Group underlying direct margin
EUR 3,849M
Up 3.4% YoY
Proximus Group 276 Integrated annual report 2023
Operating expenses (OPEX)
Steep inflation significantly impacted the Proximus Group
operating expenses, up from the previous year by 8.0%,
reaching a total of EUR 2,091 million.
The Domestic OPEX totaled EUR 1,845 million, a 8.9% increase.
The steep inflationary impact, costs related to the company’s
growing customer base and transformation related OPEX where
partially offset by a slightly lower headcount and especially by
significant cost efficiencies. In 2023, Proximus’ company-wide
cost program delivered EUR 95 million of its total 3-year
ambition of EUR 220 million.
BICS posted EUR 142 million OPEX for 2023, a decrease of -
1.2% compared to 2022, following good cost containment
initiatives and a favorable year-on-year impact of performance-
related labour expenses.
Telesign’s operating expenses totaled EUR 122 million, EUR 10
million higher than 2022, driven by the anticipated significant
investment to realize its growth plan. This includes amongst
others increased marketing expenses as well as additional
employee hiring, with headcount increasing year-on-year by 78
FTEs. Overall, the OPEX trend turned positive since mid-2023,
reflecting Telesign being beyond its OPEX investment peak.
Operating expenses (underlying, M€)
Headcount evolution (in FTE per YE)
Operating Expenses increased for 2023, reaching a
total of EUR 2,091M for the Proximus
Group.
Proximus Group 277 Integrated annual report 2023
Underlying EBITDA
The underlying Group EBITDA for the year 2023 totaled EUR
1,757 million, down by -1.6% or EUR -29 million on the previous
year, mostly resulting from the inflationary cost increase within
the Domestic segment.
Group EBITDA by segment (underlying, M€)
The Domestic operations of Proximus posted EUR 1,636 million
EBITDA, a year-on-year decrease of -1.7%, mainly driven by
higher operating costs, for a large part offset by a strong growth
in direct margin.
In a normalizing comparable context, BICS closed 2023 with
EBITDA of EUR 127 million, up +5.5%. BICS’ segment margin as
percentage of revenue further improved, with 12.0% for 2023,
compared to 10.6% the previous year. Telesign closed the year
2023 with a negative EBITDA of EUR -5 million.
Group EBITDA evolution (underlying, M€)
Group underlying EBITDA
€ 1,757
Down -1.6% YoY
Proximus Group 278 Integrated annual report 2023
Reported EBITDA
Operating lease excluded, and other adjustments included, the
Proximus Group reported EBITDA of EUR 1,786 million,
compared to EUR 1,826 million in 2022, a year-on-year
decrease by 2.2%.
In 2023, the Proximus Group recorded a net of EUR 29 million in
adjustments, compared to EUR 40 million net positive EBITDA
incidentals for 2022.
The lease depreciation and interest for 2023 were EUR -6 million
lower year-on-year, totaling EUR -91 million. (As of 2019,
following the application of IFRS 16, these expenses are excluded
from the reported EBITDA). This was partly offset by
transformation costs of EUR 14 million and adjustments for M&A
related costs for EUR 48 million.
Reported and underlying EBITDA (M€)
Depreciation and amortization
In 2023, the Group depreciation and amortization totaled 1,185
million, including lease depreciation. This was slightly above the
EUR 1,179 million for 2022.
Depreciation and amortization incl. lease depreciation (M€)
Net finance cost
The full-year 2023 net finance cost totaled EUR 110 million
including lease interests, EUR +60 million above one year ago,
mainly explained by interest on Spectrum license (of which part is
not recurring) and by some hedging activities.
Net finance cost incl. lease interest (M€)
Proximus Group 279 Integrated annual report 2023
Tax expense
The 2023 tax expenses amounted to EUR 104 million, leading to
an effective tax rate of 22.6%. The difference with the Belgian
statutory tax rate of 25% is the result of the application of
general principles of Belgian tax law, such as the patent income
deduction and other R&D incentives.
Tax expense (M€) and ETR
Net income
The year-on-year Proximus Net income (Group share) decreased
by -20.6%, due to lower EBITDA, higher net finance costs and
higher share of loss on associates, partly offset by lower tax
expenses.
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
€ 357M
Net income
Proximus Group 280 Integrated annual report 2023
CAPEX
Overall, the Proximus Group accrued CAPEX totaled EUR 1,328
million for 2023, compared to EUR 1,923 million for 2022, which
included EUR 618 million of capex for acquired mobile spectrum.
Excluding spectrum and football broadcasting rights the
Proximus Group accrued CAPEX over the year 2023 totaled EUR
1,325 million, in line with its provided guidance for the year. The
year-on-year increase of EUR 20 million from 2022 was largely
driven by customer related CAPEX. Following an increased level
of customer installations over 2023, more specifically for fiber,
the customer-related CAPEX increased, covering customer
equipment and activation costs.
Fiber-deployment related investments now accounted for 29%
of the total CAPEX compared to 35% in 2022. By end-2023,
Proximus was deploying Fiber in 147 cities and municipalities in
Belgium. Compared to end-2022, Proximus increased its
footprint by 36% in 2023, reaching 1,748,000 premises with
fiber.
Moreover, the Mobile network (RAN) consolidation between
Proximus and Orange Belgium is ongoing, led by the created
joint-operation Mwingz with CAPEX incurring following the pace
of the mobile site consolidation.
In line with its strategy, Proximus also significantly invests in
digitalization and IT.
Accrued CAPEX (M€)
(excl. spectrum and football rights)
Free Cash Flow
The total FCF over the year 2023 totaled EUR 18 million, or
EUR 61 million when adjusted for acquisitions and M&A-
related transaction costs. The decrease from the comparable
adjusted 2022 FCF of EUR 181 million (EUR 167 million
reported FCF) was mainly due to higher payments for taxes,
Spectrum interests, Equity Injections in the Fiber joint ventures
Fiberklaar and Unifiber, the two entities created to deploy Fiber
in the Flanders and Walloon regions, respectively. And, to a
lesser extent, cash CAPEX.
This was in part offset by a favourable change in business
working capital, the irrevocable payment received from the
headquarter transaction with Immobel (30M€) and reversing
effect of early leave and fit for purpose transformation plans.
€ 61M adjusted FCF
Proximus Group 281 Integrated annual report 2023
Net financial position
At the end of December 2023, Proximus’ adjusted net financial
position was EUR -3,131 million (including re-measurements to
fair value), keeping a very sound net debt/EBITDA ratio of 2.6X
(as per S&P definition).
Evolution of Adjusted Net Financial Position (excl. lease liabilities)
(M€)
* Mainly remeasurement to fair value of cash flow hedge instrument for future LT debt
Proximus Group 282 Integrated annual report 2023
3. Domestic
Domestic revenue by unit (underlying, M€)
For its Domestic operations, Proximus posted revenue of
EUR 4,665 million in 2023, an increase of 4.2% or EUR 187
million from the year 2022. The Residential unit accounted for
about 51% of the total Domestic revenue, the Enterprise unit
42% and the Wholesale segment 6%.
With Proximus deploying Fiber in 147 cities end-2023, the
product superiority of Fiber becomes an increasingly relevant
sales proposal for Proximus’ Domestic market. Over the year
2023, the number of activated Fiber customers increased by an
additional 145,000, comprised of a mix of Residential and
Business, new customers and migrated copper customers. This
compares to an increase of 106,000 activated Fiber customers in
2022. By end-2023 the Fiber customer base totaled 397,000.
While cord-cutting is starting to show in Belgium, Proximus
achieved to mitigate the erosion of its TV customer base to
1,674,000.
Residential revenue
Revenue generated by Proximus Residential customers
totaled EUR 2,396 million over 2023, up by 6.0% or EUR 135
million compared to 2022.
Through its three complementary brands, Proximus, Scarlet and
Mobile Vikings, that address the different needs of the residential
market, Proximus achieved in 2023 strong growth in its Internet
and Mobile Postpaid base, while the Fixed Voice base continued
its steady decline, as a consequence of the ongoing change in
customer needs. In particular convergent offers, combining Fixed
and Mobile services, sustained a strong performance, supported
by the success of Proximus’ Flex offers. Besides a growing base in
its main products, the residential revenue also benefitted from
inflation-based price changes on a broad selection of Proximus
services to mitigate the inflationary pressure on the company’s’
cost base.
When zooming-in on the Residential operational results, 2023
was especially successful for Mobile Postpaid, with the number of
Mobile Postpaid cards for the year up by 135,000. Proximus’
mobile growth was supported by its new Mobile portfolio
1,783,000
Fixed Internet customers
Up 47,000 in 2023
Domestic revenue of EUR 4,665 million in 2023, up by 4.2% from 2022.
Proximus delivered a very strong commercial momentum supported by its complementary brands.
Residential revenue over 2023 totaled EUR 2,396 million, up by 6.0%.
Business revenue increased to EUR 1,953 million for 2023, a 3.1% growth from 2022.
Wholesale revenue of EUR 258 million in 2023, a -8.0% decline compared to 2022, fully related
to Interconnect revenue erosion, with no material margin impact.
Proximus posted EUR 1,636 million Domestic EBITDA, limiting its year-on-year decline to -1.7%
Proximus Group 283 Integrated annual report 2023
launched in May 2023, leading to a re-dynamized Flex offering.
Moreover, the complementary mobile offers of Scarlet and
Mobile Vikings brands contributed to the success in Mobile. By
end-December 2023, Proximus’ Residential Mobile Postpaid
base reached a total of 2,855,000 cards, up by 5.0% from end-
2022.
Postpaid cards (‘000)
The Prepaid base continued its inherent declining trend,
stimulated by the attractive mobile Postpaid offers. Proximus
saw the Mobile Prepaid base shrink in 2023 by 71,000 cards,
leading to a total number of Prepaid cards of 533,000 by end-
December 2023.
Strongly supported by Proximus’ expanding Fiber footprint, the
Residential segment managed to accelerate the growth of its
Internet customer base, up by 47,000 customers in a
competitive market. This is an increase by 2.7% compared to one
year ago, with end-2023 the Residential Internet base totaling
1,783,000 internet lines, being a mix of customers on the
historical copper network and a growing number of customers on
the new Fiber technology.
Prepaid cards (‘000)
Fixed Internet customers (‘000)
Fixed Voice customers (‘000)
The revenue generated by customers subscribing to Proximus’
different product lines is referred to as Customer services revenue
or X-Play revenue. For 2023, 79% of the total Residential revenue,
i.e., EUR 1,880 million was generated by Customer services (X-
play), an increase of 5.5% or EUR 97 million compared to 2022.
The overall ARPC for 2023 of EUR 55.4 represents an increase of
5.6% from one year back. This was mainly the result of two
inflation-based price adjustments, effective 1 January 2023 and 1
July 2023.
In the mix, it is especially revenue from Convergent customers
which showed strong growth, up by 9.4% year-on-year reaching
EUR 1,137 million. In 2023, Proximus grew its convergent base by
65,000 customers, reaching a total of 1,112, up by 6.2% from 12
months back.
The main growth driver of the Convergent revenue is the strong
increase in the convergent 3-Play and 2-Play customer base.
Proximus grew its convergent 3-Play base by 29,000 customers,
reaching 452,000 customers by end-2023. This was combined
with 5.9% growth in 3-Play ARPC to EUR 88.0. This resulted in a 3-
Play convergent revenue growth of 14.7% to a total of EUR 461
million.
In continuation of the successful launch of offers combining Mobile
with Internet mid-2022, and the decreased relevance of TV for
certain customer segments, the dual-play customer base grew by
55,000 customers in 2023.
The uptake of 2 and 3-Play convergent offers largely explains the
steady downward trend in the number of 4-Play customers, down
by 20,000 to a total base of 511,000.
With the number of customers subscribing to Proximus’ convergent
offers rising, Proximus’ base of Fixed-only customers decreased to
860,000 by end-2023. These customers generated in 2023, an
ARPC of EUR 47.3, a EUR 2.3 increase from previous year.
The number of customers having only a Mobile subscription is stable
compared to 2022. By end-2023, the Residential unit counted a
Mobile postpaid-only base of 868,000 customers, Proximus,
Scarlet and Mobile Viking brands combined. These Mobile-only
Proximus Group 284 Integrated annual report 2023
customers generated an ARPC of EUR 23.3, slightly up (+1.7%)
compared to the previous year.
In addition to the above-described revenue from Customer services,
the Residential segment revenue also includes revenue from
Terminals, Mobile Prepaid, its Luxembourg telecom business and
Other revenue.
For 2023, the total revenue from Terminals totaled EUR 279
million, up 20.9% or EUR 48 million above 2022.
Driven by the decrease in the Proximus Prepaid base, revenue from
Mobile Prepaid continued its eroding trend, with revenues down to
EUR 35 million for 2023.
Proximus’ Luxembourg telecom revenue came in strong over 2023
for the Residential side, up by 2.8% to EUR 4 million revenue,
mainly resulting from a higher number of mobile and fixed
subscriptions and an increase in mobile device sales.
Proximus Residential posted EUR 46 million in its Other revenue, a
year-on-year stable amount.
79% Residential revenue generated by X-Play Customers
Proximus Group 285 Integrated annual report 2023
Residential revenue build up (underlying, M€)
Convergent Revenue (‘000)
Up 9.4%
Convergent revenue
2.8M
customers, of
which 1.1M
convergent
Strong Customer
trend to move to
2-Play and 3-Play
convergent offers
Average revenue
per Customer
€55.4
Total Convergent
customers
Up 6.2%
Convergence rate
68.0%
Average
RGU
2.51
Proximus Group 286 Integrated annual report 2023
Customers per X-play (‘000)
Average Revenue per Customer (€)
Average Revenue Generating Units per Customer
Customer Revenues (M€)
Proximus Group 287 Integrated annual report 2023
Business revenue
Proximus’ Business segment increased its revenue to EUR 1,953
million for 2023, a 3.1% growth compared to 2022. With this an
improved growth rate was achieved from 1.7% for 2022,
reflecting the successful transformation of the Proximus
Business unit into a convergent player. This was especially
reflected in the 2023 revenue from Services, up by 2.2% on the
previous year. Revenue growth was achieved for IT services,
Fixed Data and Mobile services, more than offsetting the ongoing
erosion in Fixed Voice revenue.
Revenue (M€)
Revenue from products was up year-on-year, fully driven by IT
equipment revenue, which in the first half of the year still
benefited from a catch-up in previously delayed customer
installations due to global chipset supply chain issues in
2021/2022.
Revenue per product (M€)
Proximus Group 288 Integrated annual report 2023
Mobile services
The Business Mobile service revenue for 2023 totaled EUR
471 million, representing a 1.2% growth compared to 2022.
Proximus maintained a solid customer Mobile customer base,
totaling 1,808,000 cards excl. M2M, up by 10,000 Postpaid
cards over the past twelve months or 0.6%. Moreover, the
Mobile ARPU stabilized over 2023 (+0.2%), compared to a
decline by -3.0% for the year before.
The Business unit continued to grow its M2M park with an
additional 264,000 M2M cards activated over the year. At
end-December 2023, Proximus M2M base totaled 4,225,000
M2M cards. This is an increase of 6.7% on the previous year.
Machine-to-Machine cards (‘000)
Mobile services revenue (M€)
Mobile postpaid cards (‘000)
Mobile postpaid ARPU (€)
Fixed Data
The revenue from Fixed Data services accelerated its positive
trajectory in 2023, posting an increase by 4.4% from the
previous year, totaling EUR 481 million for 2023.
Within the Fixed Data revenue mix, the revenue growth was
mainly driven by further improving revenue from Internet
services. This was explained by a progressing Broadband ARPU,
EUR 46.2 for 2023, up 7.5% on the previous year, mainly
benefitting from the price indexations, improved price tiering and
a growing share of Fiber in the total internet park. Over 2023, the
Business Internet base slightly progressed to 440,000, up by
0.4% compared to one year back.
Revenue from Data connectivity was maintained fairly stable,
with the eroding legacy revenue being offset by growing new
data connectivity services, supported by Proximus’ growing point-
to-point fiber park.
Fixed Data revenue (M€)
3,960
4,225
2022 2023
6.7%
Mobile postpaid cards
(excluding M2M)
Up 10,000
Proximus Group 289 Integrated annual report 2023
Fixed Internet subscriber base (‘000)
Fixed Internet ARPU (€)
IT Services
Proximus’ Business unit posted for its IT Services revenue of EUR 417 million, up 6.8% compared to the previous year. High-value
recurring services continued to grow, with especially good performance in Cloud, Security and Smart Mobility services. The sequential
growth in IT recurring services reflects the ongoing transformation of the Business unit into a convergent player, with focus on higher-
margin next generation IT services.
IT Services Revenue (M€)
Fixed Voice
The Business segment posted EUR 252 million in Fixed Voice
revenue for 2023, a year-on-year decline of 6.6%.
The cause of the Fixed Voice revenue erosion remains the
ongoing steady decrease of the Fixed Voice park, down by -
9.8% in 2023. Over the year, the Business Fixed Voice base
decreased by 61,000 Fixed Voice lines, resulting in a total base
of 566,000 by end-2023. This was driven by an ongoing
rationalization by customers on Fixed-line connections, lower
usage, and technology migrations to VoIP.
This was partially offset by a 2.2% increase in the Fixed Voice
ARPU, resulting from inflation-based price indexations,
bringing the Fixed Voice ARPU to EUR 27.6.
Fixed Voice revenue (M€)
Fixed Voice park (‘000)
Fixed Voice ARPU (€)
Proximus Group 290 Integrated annual report 2023
Products
The revenue from Products for 2023 was up by EUR 27 million
from 2022, or +9.8%. Whereas revenue from Mobile Terminals
was somewhat down year-on-year (-2.3%), IT hardware
revenue increased by +14.1%, with support in the first half of
2023 from the catch-up on some previously delayed product
contracts following the difficult worldwide chip supply chain
situation.
Products Revenue (M€)
Wholesale revenue
For its Wholesale operations, Proximus posted EUR 258 million
revenue in 2023, down 8.0% or EUR -23 million on 2022.
The decline in revenue is entirely due to a EUR -24 million drop in
Interconnect revenue, with no material margin impact. Part of this
reflects the EU regulation which lowered the Fixed & Mobile
Termination rates as of January 1
st
2023. The largest part,
however, is the result of an ongoing decrease in traditional SMS
usage, being replaced by over-the-top applications.
Revenue generated by Fixed and Mobile wholesale services was
up by 0.9%, totaling EUR 142 million. This mainly reflects higher
revenue from roaming services and an increase revenue from
services towards Mwingz and Proximus’ Fiber Joint Ventures.
Revenue (M€)
Domestic Direct Margin
Proximus’ Domestic operations posted a direct margin of
EUR 3,481million, up by +3.6% or EUR 121 million on the
previous year. Among other things, this reflected the solid
customer growth for Proximus’ main services, including Internet
and Mobile, and was strongly supported by inflation-based price
increases.
Proximus Group 291 Integrated annual report 2023
Domestic direct margin (underlying, M€)
Proximus Group 292 Integrated annual report 2023
Domestic OPEX
Domestic operating expenses (underlying, M€)
The Domestic operating costs were up by 8.9% to EUR 1,845
million. The increase from 2022 resulted from a significant
inflationary impact on the Domestic cost base, as well as
higher costs to support the customer growth, especially for
Fiber, and an increase in transformational costs. This was in
part offset by the company’s ongoing cost-efficient program,
which delivered a total of EUR 95 million in savings in 2023.
The Domestic workforce expenses totaled EUR 1,166 million
for 2023, an increase of 4.9% on the year before. This was
driven to a high degree by the automatic adjustment of wages
to inflation. In addition to a carry-over impact of 5 wage
indexations in the course of 2022, 2023 was affected by 2
additional inflation-based salary indexations
2
of 2% each. End-
2023, Proximus’ Domestic headcount came to 10,358 FTEs, a
decrease of -69 FTEs compared to 10,427 FTEs end-2022
because of natural outflow and retirement offsetting new
hiring.
The Domestic non-workforce expenses were up by 16.3% for
2023, representing a year-on-year increase by EUR 95 million.
About 1/3
rd
of this increase was related to the rise in energy
cost, in addition to other general inflationary effects on costs
such as maintenance, rental, … Moreover, in line with the
company’s strong customer gain, Proximus’ customer related
cost was up year-on-year, including amongst others higher
contact center volumes, commercial means and billable
manpower related to delivered customer IT-services.
Domestic EBITDA
Domestic EBITDA (underlying, M€)
2
Public wages in Belgium were automatically adjusted to the higher
cost of living on 1 February 2022, 1 April 2022, 1 June 2022, 1
The Domestic segment of Proximus posted EUR 1,636 million
EBITDA, a year-on-year decrease of -1.7%.
This resulted from the higher cost base, more than offsetting
the increase in Direct Margin. The Domestic EBITDA margin as
percentage of revenue was slightly down by 2.1 p.p. on the
previous year, reaching 35.1% for 2023.
September, 1 December 2022, 1 January 2023 and 1 December 2023,
with a 2% increase in each instance.
Proximus Group 293 Integrated annual report 2023
4. BICS
Revenue
For BICS, 2023 was in general marked by a normalizing trend
from an exceptional 2022 which was partly boosted by post-
Covid travel uptake, and partly by a favorable destination mix.
The BICS revenue for 2023 amounted to EUR 1,051 million, a
year-on-year revenue decrease by -7.2%, including substantial
USD currency headwinds (-5.8% at constant currency).
BICS’ total year-on-year revenue decrease by EUR -81 million
was primarily driven by Legacy services, down over 2023 by EUR
-70 million or -11.1%. This was linked to currency headwind, the
impact of the roll-out of VoLTE in roaming by Mobile operators
which accelerates the erosion of international voice volumes and
an unfavorable destination mix whereby a specific country
generated high revenue in 2022 but with negligible margin
contribution.
Revenue from BICS Core services (messaging, mobility, and
infrastructure), decreased from the previous year by -3.9% or
EUR -17 million, mostly due to lower messaging volumes
following a less favorable destination mix and, to a lesser extent,
by a structural change in the messaging market with a move to
OTT solutions.
For BICS’ Growth services such as cloud communication and IoT a
total revenue of EUR 72 million was posted, an increase by 8.2%
on 2022.
Revenue by product group (M€)
Revenue by customer segment (M€)
Direct margin
With the decrease in revenue mainly related to low-margin
legacy services, BICS achieved to post for 2023 a +1.9% direct
margin growth, totaling for 2023, EUR 268 million. With BICS
having a structural natural hedging on Direct Margin level, the
USD headwind remains mitigated; with Direct Margin on
constant currency growing by 2.8% for 2023.
Direct margin (M€)
Proximus Group 294 Integrated annual report 2023
EBITDA
Despite inflation and the effect of the 1 January 2023 wage
indexation, BICS achieved to bring operating expenses down
year-on-year by -1.2% following good cost containment
initiatives and a favorable year-on-year impact of performance-
related labour expenses. Following the increase in Direct Margin,
combined with lower operating expenses, the 2023 EBITDA was
up by +5.5% to EUR 127 million. The EBITDA margin as a
percentage of revenue improved to 12.0%, from 10.6% in 2022.
EBITDA (M€)
Proximus Group 295 Integrated annual report 2023
5. Telesign
Revenue
Revenue (M€)
Compared to a strong 2022, Telesign posted a year-on-year
revenue increase by 5.1%, totaling for 2023 EUR 497 million.
On a constant currency basis
3
, the Telesign revenue was up by
+8.5%. This reflects strong performance of both the
Communications business and Digital Identity.
Communications revenue grew by high single digit year on
year, driven by largest customers including Meta, Microsoft,
and gaming vertical, while end-2023 Telesign was facing
some general sector macro headwinds and an accelerated
move of customers to omnichannel message delivery.
Digital Identity revenue also grew by high single digit year on
year, negatively impacted by negative performance of several
top identity accounts. In USD, digital identity Direct Margin
grew double digit.
Direct Margin
Direct margin (M€)
Telesign’s 2023 direct margin was up by 3.0% year-on-year
to EUR 117 million. On a constant currency basis, this was
+9.4%, reflecting strong performance in both
Communications and Digital identity segments.
3
Provides a view of the business performance, filtering out the
currency effects by using a constant currency.
Proximus Group 296 Integrated annual report 2023
EBITDA
EBITDA (M€)
Investments in go-to-market and the R&D organization to
support Telesign’s growth ambitions impacted the operating
expenses which increased by EUR 10 million year-on-year, to a
total of EUR 122 million for 2023. This impact started to fade as
of mid-2023. These investments in Telesign’s growth strategy
were reflected in its EBITDA, totaling EUR -5 million for 2023,
compared with an EBITDA of 1 million a year ago.
Proximus Group 297 Integrated annual report 2023
6. Definitions
A2P: Application to Person messages
Adjusted Net Financial Position: is the Net Financial Position from which lease liabilities are excluded.
ARPC: Average underlying revenue per (residential) customer.
Adjusted Free Cash Flow: Free Cash Flow adjusted to exclude M&A transactions and M&A related transaction costs.
Annualized full churn rate of X-play: a cancellation of a customer is only taken into account when the customer
cancels all its plays.
ARPU: Average Revenue per Unit.
BICS: 100% subsidiary of Proximus. Global voice carrier and leading provider of mobile data services worldwide.
Providing global mobile connectivity, seamless roaming experiences, fraud prevention and authentication, global
messaging and the Internet of Things.
o BICS legacy: represents mainly voice services.
o BICS core: represents messaging, mobility (roaming, signaling & Mobile IP) and infrastructure services.
o BICS growth: represents cloud communication enablement, SIM for things (travel SIM & IOT services) and
fraud services.
Business: unit addressing the professional market including Corporates, Medium and Small Enterprises (including
businesses with less than 10 employees).
CapEx: this corresponds to the acquisitions of intangible assets and property, plant and equipment, excluding Right of
Use assets (leasing).
Convergence rate: convergent residential customers taking both Fixed and Mobile services of Proximus. The
convergence rate refers to the percentage of convergent customers on the total of multi-play customers.
Cost of Sales: the costs of materials and charges directly related to revenues.
Direct margin: the result of cost of sales subtracted from the revenues, expressed in absolute value or in % of
revenues.
Direct OpEx: refers to billable OpEx, for example OpEx directly linked to revenues of a Business project.
Domestic: segment defined as the Proximus Group excluding BICS, Telesign and Eliminations.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization; corresponds to Revenue minus Cost of sales,
workforce and non-workforce expenses.
Adjustments (Revenue/EBITDA):
o The lease depreciations and interests in the Operating Expenses, with the exception of leases that would
qualify as finance leases on the basis of the criteria applied to a lessor under IFRS 16.
o Transformation: costs of employee transformation programs, the effect of settlements of post-employment
benefit plans with impacts for the beneficiaries, or pre-identified material(*) one-shot projects (such as
rebranding costs)
o Acquisitions, mergers and disposals: gains and losses on disposal of buildings or consolidated companies,
M&A-related transaction costs, deferred M&A purchase price and impairment losses on goodwill.
o Litigation/regulation: Material (*) financial impacts of litigation files, fines and penalties and of law changes
(one-off impacts relative to previous years)
(*) The materiality threshold is met when exceeding individually EUR 5 million. No threshold is used for adjustments in
a subsequent quarter if the threshold was met in a previous quarter.
EBIT: Earnings Before Interest & Taxes, corresponds to EBITDA minus depreciation and amortization.
Fixed Data Services (Business): Total revenues from Fixed Data, consisting of Broadband, Data Connectivity
(including Explore solutions and SD-WAN) and TV.
Proximus Group 298 Integrated annual report 2023
Fixed Voice park: PSTN, ISDN and IP lines. For Business specifically, this also contains the number of Business Trunking
lines (solution for the integration of Voice and Data traffic on one single Data network).
Fixed Voice Services (Business): Total revenues from Fixed Voice access lines and traffic, as well as fixed telephony
systems installed at customer premise or serviced from the cloud.
Free Cash Flow: this is cash flow before financing activities and after lease payments (since 2019).
Internet ARPU (Business): total Internet underlying revenue, excluding activation and installation fees, divided by the
average number of Internet lines for the period considered, divided by the number of months in that same period.
Internet park: ADSL, VDSL and Fiber lines. For Residential, this also includes Scarlet and Mobile Vikings.
IT Services revenue (Business): Information Technology (IT) Services, including Managed, Integration and Consultative
services, which enable users to access, store, transmit, and manipulate information, with the help of unified
communications, computers, as well as necessary enterprise software, middleware, storage, and audio-visual systems.
Proximus’ IT solutions include, but are not limited to, Security, Cloud, Smart Network, Advanced Workplace and Smart
Mobility solutions. It also includes recurring equipment sales to support these services.
IT Products revenue (Business): Revenues from one-shot IT products (boxes, hardware) or one-shot licenses, with the
change of ownership towards the customer.
Mobile ARPU (Business): monthly ARPU is equal to total Mobile services revenues (excl. M2M & network services),
divided by the average number of active cards for that period, divided by the number of months of that same period.
Mobile cards: refers to active Voice and Data cards, excluding free Data cards. Postpaid customers paying a monthly
subscription are by default active. Prepaid customers are considered active when having made or received at least one
call and/or sent or received at least one SMS message in the last three months. An M2M card is considered active if at
least one Data connection has been made in the last month.
Mobile-only (Residential): Refers to Mobile Postpaid whereby no other recurring subscriptions are bought. Mobile
Prepaid is not included in the Customer services revenue but reported separately.
Mobile Services revenue (Business): Total revenues from Mobile Services including traditional mobile services, using
the mobile network connectivity, as well as IoT (including M2M) and Next Generation Communication (including
network services as well as new innovative solutions).
Multi-play customer: two or more Plays, not necessarily in a Pack.
Net Financial Position: refers to the net amount of investments, cash and cash equivalents minus any interest-bearing
financial liabilities and related derivatives, including re-measurement to fair value and lease liabilities. The net financial
position does not include the “other current & non-current payables interest-bearing”.
Network Services (Business): focuses on optimizing the interaction between Enterprise customers and its
stakeholders, for which revenues are independent from the number of Postpaid cards.
Non-workforce expenses: all operating expenses excluding workforce expenses and excluding depreciation and
amortization.
Net Revenue Retention rate (NRR): success indicator of the existing customer base, calculating the percentage of
recurring revenue retained from existing customers compared to 12 months back.
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.
Reported revenues: this corresponds to the TOTAL INCOME.
Residential: unit addressing the residential market, including the Customer Operations Unit.
Proximus Group 299 Integrated annual report 2023
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.
Sales Booking: defined as the estimated monthly direct margin value of a won opportunity recorded within the CRM
system. The nature of these bookings can vary between monthly recurring opportunities or short-term commercial
opportunities.
Terminals: this corresponds to devices for Fixed Voice, Data, Mobile and related accessories. This excludes PABX, IT
products and TV CPE.
Underlying: refers to revenue and EBITDA (Total Income and Operating Income before Depreciation and Amortization)
corrected for the EBITDA Adjustments in order to properly assess the ongoing business performance.
Wholesale: unit addressing the telecom wholesale market including other telecom operators (incl. MVNOs) and ISPs.
Wholesale fixed & mobile services includes all solutions that Proximus offers to other operators. These services
include fixed internet and data connectivity services, fixed telephony and mobile (incl. MVNO and Roaming) services
(excl. Interconnect)
Wholesale Interconnect is the process of connecting an operator network with another operator network. This then
allows the customers of one operator to communicate with the customers of another operator. Interconnect includes
fix voice, mobile voice and mobile SMS/MMS services.
Workforce expenses: expenses related to own employees (personnel expenses and pensions) as well as to external
employees.
X-Play: the sum of single play (1-play) and multi-play (2-play + 3-play + 4-play).
Proximus Group 300 Integrated annual report 2023
Risk Management Report
Each activity within the Proximus Group’s activities is exposed to
a variety of risks that have the potential to impact the financial
performance of the Group. Proximus has implemented a risk
management methodology that follows ISO 31000 – Risk
Management Guidelines. Proximus’ Risk Management System
aims to identify and assess risks and opportunities in various
domains and, wherever possible, to manage or mitigate them to
an acceptable level of residual risk to safeguard the Group’s
assets and protect its financial strength and reputation.
Financial risk management objectives and policies are reported
in Note 32 of the consolidated financial statements, published
on the Proximus website. Risks related to important ongoing
claims and judicial procedures are reported in Note 34 of these
statements.
The enterprise, operational, sustainability and reporting risks are
detailed below. Please note that this is not an exhaustive
analysis of all potential risks that Proximus may face.
Sustainability matters are also assessed on the impact they
could have on people, society, and the environment (more
information in: ‘Double materiality assessment’).
Enterprise-wide risks
Proximus Group’s Enterprise Risk Management (ERM) is a
structured framework designed to identify, assess, respond to,
and report on strategic and business risks. These risks refer to
potential adverse events or circumstances that could
significantly impact the achievement of Proximus' strategic
objectives.
ERM is seamlessly integrated into Proximus' annual strategic
planning cycle. A bottom-up identification and prioritization
process is conducted every two years. This process involves
thorough desk research, in-depth interviews, and surveys
among management and subject matter experts. All relevant
risks and opportunities are prioritized based on their potential
impact and likelihood, considering both quantitative and
qualitative factors.
Each member of the Leadership Squad takes ownership of a
sub-set of the prioritized risks and identifies the key internal
stakeholders accountable for the follow-up measures.
The risk prioritization and risk treatments are reviewed at least
once per year or when context changes. The ERM report, which
provides an overview of major risks and their respective
treatment plans, is thoroughly reviewed, and validated by the
Leadership Squad, consisting of the CEO, and the Audit and
Compliance Committee. The key findings and outcomes are
then communicated to the Board of Directors.
Among the risks identified by the latest ERM exercise, the
following risk categories were prioritized):
• Monetization of fiber investments
• Proximus Group international growth
• Human capital: Talent attraction, retention and
development
• Operating model evolution and cost control
• Belgian telecom market competitive dynamics –
residential market
• Belgian ICT market competitive dynamics – enterprise
market
• Regulatory and legal risks
Monetization of fiber investments
Fiber optic is widely recognized as the superior and most
future-proof fixed connectivity technology. On top of offering
the highest speeds in download and upload and low latency,
fiber is also highly reliable and secure.
During the past years, Proximus has significantly increased
investments to accelerate the deployment of a performant fiber
network fully open and non-discriminatory with the ability to
co-use fiber assets with competition and maximize the network
utilization. Proximus’ Gigabit Fiber network standalone
deployment focuses on areas with highest population density.
Proximus has created the joint ventures Fiberklaar (in Flanders)
and Unifiber (in Wallonia), with the experienced industrial and
financial partners EQT Infrastructure and Eurofiber,
respectively, to expand the fiber rollout to medium-dense
areas. In the German-speaking Community, a region with
typically very low population density, Proximus, Ethias and the
government of the German-speaking Community have set-up
GoFiber, a public-private partnership and joint venture that will
bring fiber in the German-speaking municipalities by end 2026.
Challenges in obtaining the needed permits from municipalities
or quality and compliance issues in operations could impede the
speed of the deployment. Proximus management has
strengthened governance and puts a strong focus on quality
standards and compliance across both standalone and joint
ventures footprints. Among others, Proximus issued a societal
responsibility charter for fiber roll-out in March 2023.
Proximus Group 301 Integrated annual report 2023
Proximus ambitions to provide gigabit network coverage to
100% of premises in Belgium, maximizing fiber coverage even
in remote areas, to:
• Support current and future customer needs (remote
work, connected homes, next generation videos,
gaming…) and enable ARPU uplift;
• Retain and grow market share across residential and
enterprise customers;
• Attract new wholesale market opportunities;
• Simplify the operating model and reduce operating
costs, by stopping to sell copper and ultimately
phasing out copper at the latest 5 years after the
deployment of fiber in a given area.
Should part of these benefits not materialize the turnover and
profitability of Proximus could be significantly affected.
Beyond city centers, construction costs increase, making the
deployment of fiber networks economically more difficult.
Although Proximus remains the only player having started the
roll-out of FTTH (Fiber-To-The-Home) at large scale in
Belgium, roll-out of competing FTTH networks could negatively
impact the profitability of Proximus’ investment by putting
pressure on both wholesale and retail prices. Telenet and
Fluvius set up Wyre, a joint infrastructure company with plans
of covering up to 78% of all homes in Flanders and parts of
Brussels with fiber (FTTH) by 2038. The roll-out of Wyre
started in the summer of 2023. Orange has also announced an
ambition of up to 66% coverage in Wallonia and Brussels,
adding to the overbuild risk. BIPT's announcement in October
2023, stating it is ready to evaluate fiber cooperation between
the different operators in Belgium, opens the door for an
effective and rational collaboration and co-investment
framework potentially to the benefit of all stakeholders
reducing financial risks associated with the investment of
further rolling-out FTTH.
Scaling the number of fiber activations & roll-out can be
challenging in a tight labour market (see also ‘Human capital:
Talent attraction, retention and development’ below). The
rollout of other infrastructure works may have a negative
impact on the available capacity for Proximus. Not retaining the
right talent for our deployment capacity could lead to delays in
roll-out and activations, which could have an impact of the
timing of the benefits and the cost of roll-out. Proximus and its
partners are taking several measures to mitigate this risk:
transfer resources from copper to fiber, increase capacity via
outsourcing partners and by upskilling our existing employees,
structurally reducing the workload via self-install and flattening
out seasonality via pro-active migrations.
Most Belgian consumers already have access to higher speed
internet through VDSL or cable. Satisfaction levels are high on
average and there is some confusion on which technology cable
operators offer. Proximus mitigates the risk of a lack of demand
by promoting fiber and its benefits. Advertising campaigns have
created a strong brand association of fiber with Proximus. To
reinforce the technological superiority, the multi-gig fiber
technology has been made available in July 2023 in all areas
where there is fiber coverage.
Inflation impacts the cost of the roll-out (see also ‘Operating
model evolution and cost control’ below). Rising costs need to
be balanced with strong commercial results, price increases and
additional efficiencies. Competitive dynamics, ahead of or after
the arrival of Digi on the Belgian market, might lead to pressure
on market prices, and/or make price tiering and upselling more
difficult. Proximus focuses on product superiority, customer
experience and a multi-brand strategy to mitigate that risk (see
also ‘Belgian telecom market competitive dynamics –
residential market’ below).
There is also a customer retention risk related to the potential
customer experience issues during the migration of Proximus
and the Other Licensed Operator’s (OLO) customers to fiber
e.g., too long installation delays in some periods of high demand
vs available personnel. Proximus management is monitoring
the fiber migration customer effort and fiber customer
experience closely and taking corrective actions, among others
through dedicated Fiber Migration and In-Home Experience
agile teams.
Copper cost avoidance is an important value driver for
Proximus. Delays in deployment or gaps in deployment zones
could impact Copper outphasing as the full benefits only come
when we can fully cut the last copper line. For the few
customers that cannot be migrated to fiber, Proximus needs an
alternative with Fixed Wireless Access or another technology.
Copper outphasing is also an important element in Proximus’
sustainability roadmap. Delays in copper outphasing would thus
affect both profitability and sustainability goals. The risk is
mitigated through careful planning of customer migrations and
the allocation of dedicated resources, including both personnel
and IT investments.
FTTH is a regulated activity in Belgium. Pricing and access
conditions for FTTH are monitored and/or set by the regulator.
Adverse or negative regulatory decisions on the FTTH pricing
and/or access conditions could negatively impact the
profitability of Proximus’ investment by putting pressure on
both wholesale and retail prices and/or make the commercial
positioning of FTTH more difficult.
Proximus Group 302 Integrated annual report 2023
Proximus Group international growth
The development of the international activities of the Proximus
Group through BICS and Telesign, fully owned since 2021, gives
access to highly growing, adjacent digital communications
markets. Those international activities are forecasted to be a
major source of growth in the coming years.
Profitable growth in competitive and fragmented digital
communications market depends on the ability to maintain and
grow the business with existing customers and attract new
customers in a cost-effective way. It also depends on the ability
to adapt to changing technology standards and customer
preferences. Competition is likely to further increase from
established competitors and new market entrants, making scale
an important factor for success.
The Proximus Group (through Proximus Opal) has signed a
definitive agreement to acquire a ∼58% interest in Route
Mobile, a global company specialized in CPaaS services, listed
on NSE and BSE in India. The deal is expected to generate
substantial value thanks to the high complementarity of Route
Mobile and Telesign, both in terms of product offerings and
geographic coverage. The combined strengths of Route Mobile
and Telesign would allow the Proximus Group to become one
of the worldwide leaders in the fields of Communications
Platform as a Service (CPaaS) and digital identity. Should the
deal closing fail, this would significantly impact the Proximus
Group’s growth prospects in CPaaS and digital identity.
Significant synergies are expected 3 years post-closing. Failure
to realise the expected synergies would limit the Group EBITDA
growth.
Telesign relies on data acquired from third parties to build its
models, and design and improve its products. If there is 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.
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.
Next to Telesign, and Route Mobile post-closing, Proximus
Group’s international growth also relies on the success of BICS.
BICS operates in a fast-changing and competitive environment,
putting its business model under constant challenge. BICS’
carrier activities could suffer from a slowing of the messaging &
roaming market growth or an acceleration of the voice market
decline. BICS adapts to this environment by striving for inorganic
market consolidation and by upgrading its offer to latest
technology (e.g., 5G standalone roaming), by addressing new
customer segments (enterprises) and by investing in new
growth domains (such as IoT, Security or Data Intelligence).
Those investments are made possible by cost reduction
initiatives in the legacy and core business (automation,
customer tiering, etc.).
Proximus Group’s international business is subject to many laws
and regulations (e.g., competition and privacy laws in Europe
and beyond). The Proximus Group strives for strict compliance
and strong controls. Litigations or regulatory or governmental
inquiries could negatively impact BICS’ reputation. Rules
changes may also affect revenues and profitability.
The international business could also be affected by geopolitical
instability through slowing growth, sanctions, market access
restrictions or business continuity issues in conflict areas (own
personnel or critical suppliers).
Finally, the performance can be impacted by current and future
economic conditions outside of Proximus Group’s control. A
recession may increase the number of bad debts; this is
mitigated through strict credit risk management. Risks from
foreign currencies are hedged to the extent that they are liable
to influence the Group’s cash flows (see ‘Foreign currency risk’).
Human capital: Talent attraction,
retention, and development
Failure to recruit, sustainably employ, engage, and retain a
talented workforce could impact Proximus competitiveness and
ability to reach its strategic goals.
The Belgian labour market remains under pressure, with a low
unemployment rate especially in the north of the country,
leading to a longer time to recruit for a broad range of profiles
e.g., field technicians, shop employees or ICT consultants.
To mitigate the risk on talent attraction, Proximus runs various
communication actions both on employer branding and
recruitment topics (campaigning, ‘always on’ approaches on
Proximus Group 303 Integrated annual report 2023
Social Medias, presence on external jobsites, events, ...).
Recruitment channels have been diversified: referral by
employees (with a reward in case of successful recruitment),
internships, student jobs, etc. Proximus also leverages strong
ties with external partners such as local agencies and recruiting
offices to source needed skills and develop new sourcing pools.
The evolution towards Total Talent Management, integrating
both internal & external resources, will play a critical role in our
sourcing strategy, thanks to the Flecs-MSP Program and its
future evolution with the launch of direct sourcing of
freelancers.
Our Proximus Ada subsidiary helps Proximus grow its talent
pool in Data Science/AI and cybersecurity and our ICT
subsidiaries leverage on their strong positioning to attract IT
talents. Proximus SA, BICS and Telesign also diversify their
talent sourcing geographically, among others through Proximus
Doo and Telesign Doo, subsidiaries in Serbia. A successful
closing of the Route Mobile transaction would also open new
sourcing options in India.
In a context of workforce cost increase (see ‘Operating model
evolution and cost control’ below), failure to adapt the current
workforce’s skills to ever-evolving needs would hinder
Proximus’ ability to execute its strategic plan. A Strategic
Workforce Planning program and a skills mapping exercise
allow Proximus to anticipate recruitment, upskilling and
reskilling needs on short and long-term. To secure future-proof
skills and to guarantee sustainable employment to existing
employees, Proximus invests extensively in training programs
and internal mobility, providing many opportunities for upskilling
and development. A dedicated project has been started in 2023
to optimize the use of Generative AI for productivity gains, in a
secure and ethical way.
Thanks to the focus on internal mobility, 683 employees
changed jobs internally in 2023. With the evolution of Proximus
as a Group and its internationalization, synergies initiatives
between the recruitment teams have been initiated (common
job fairs, common projects such as internship) and will be
further developed (intragroup referral program,
internationalization of the graduate program). The importance
of intragroup mobility is gaining in importance with a dedicated
framework being setup that will be ready by 2024.
To boost employee engagement, our Think Possible company
culture stimulates agile ways of working for more
empowerment, customer-centricity, simplification, and
innovation. The transformation is supported by dedicated
training, thorough internal communication and the daily support
of agile coaches, scrum masters and change managers. In
October 2023, a new evaluation system and a new
remuneration system (i.e., a simpler salary increase system to
ease market alignment and an optimized bonus system) in line
with the desired cultural transformation have been presented
to employees of Proximus SA. Those systemic changes,
effective as from 2024, increase the focus on performance,
based on mutual trust and clear feedback.
Eligible Proximus SA employees are allowed up to 3 days of
homeworking per week. Proximus offers employees a coherent
set of user-friendly and secure digital tools that can be used on
any device, allowing more flexibility and hybrid ways of working.
Specific attention was put on effective hybrid working in the
context of the move out of the Proximus Headquarters in the
last quarter of 2023. (more information in: ‘Campus program’).
Diversity, equity and inclusion policies and initiatives further
contribute to the employees’ well-being and sense of belonging
(more information in: ‘Social statements’).
Operating model evolution and cost
controlment
With a challenging socio-economic and geopolitical context and
inflation levels that remain high compared to the previous
decades, costs need to be managed thoroughly.
Joint ventures, partnerships and an increasingly global footprint
are an opportunity to gain scale and reduce operating costs vs
standalone operations. This also makes for a more complex
Group structure for Proximus that brings higher compliance
risks and more third-party risks. The Proximus Group’s
governance structure and control mechanisms are being
adapted gradually to better deal with this increased complexity.
To compensate the general effects of inflation, the Proximus
Group implements a strict cost control discipline and cost
reduction programs. While being on track for the period 2019-
2025 cost reduction ambition, failing to achieve remaining cost
efficiencies would lead to a decrease in profitability. Proximus is
continuously looking for ways to increase and accelerate the
savings realization without adversely affecting customer
experience, e.g., through Generative AI solutions. To limit the
inflationary pressure, long-term relationships with suppliers,
contract protections, advanced ordering, multi-sourcing, and
hedging mechanisms are used.
For Proximus SA and its Belgian subsidiaries, the unique Belgian
system of automatic salary indexation to protect employees’
purchasing power, and Proximus’ obligation to index as soon as
the pivotal index is reached, led to 2 salary indexations in 2023.
Next to strict cost management, Proximus SA is countering this
impact via price indexations. Should Proximus’ brand power not
be strong enough, the inability to compensate part of the cost
increase through targeted price increases would weigh on the
Proximus Group 304 Integrated annual report 2023
margins. Price indexations’ potential churn impact is mitigated
by a more-for-more strategy and commercial results remained
strong after the previous price indexations.
By sharing parts of the mobile network infrastructure with
Orange, Proximus benefits from efficiencies in network
operations and ensures sustainable investments in new
network technologies. Proximus aims for 100% 5G coverage in
the 2025-2026 timeframe. Next to unexpected extra costs of
maintaining the legacy network and upgrading it to meet
capacity demands, significant delays in the RAN swaps could
weaken Proximus’ mobile leadership position. Proximus closely
monitors and follows up on the progress with its partners and
suppliers.
Although the telecom sector’s resilience has been
demonstrated in the past years, a deteriorating economic
climate could lead to declining spending of customers in both
the Consumer and Enterprise market and higher bad debt.
Social tariffs and no-frills offers help keep essential telecom
services affordable to all. Struggling customers are offered
adapted payment plans. Churn and bad debt evolutions are
followed up very closely by management, with no worrying
evolutions noted to date.
Inflation can also have a positive commercial impact as
Proximus NXT or BICS customers look for digitalization or
outsourcing options to reduce their own operating costs.
Belgian telecom market competitive
dynamics – residential market
The Belgian market is an evolving market with changing
competitive dynamics that might impact market value going
forward. Proximus has demonstrated its ability to adapt to
changing market conditions in the past. Failure to continue to
adapt and mitigate the impact of a changing market structure
and pricing dynamics could significantly impact Proximus
domestic EBITDA.
As mentioned above (see ‘Operating model evolution and cost
control‘), it is critical for Proximus to maintain its brand strength
and the resulting ability to monetize investments and to index
prices to compensate for cost increases.
Proximus’ Belgian connectivity revenues are at risk from
increased competition particularly in Wallonia & Brussels where
Proximus has a large market share. Orange Belgium has
acquired a majority stake in VOO. Telenet and Orange have
respective commercial wholesale agreements providing access
to each other’s HFC and FTTH networks for a 15-year period,
leading to increased convergent competition across the country.
Following the 2022 spectrum auction with conditions favouring
a new entrant, Citymesh and Digi joined forces to acquire
spectrum and set up a joint venture for the network company to
address business and private individuals respectively. Digi
Communications Belgium announced its commercial start in
2024. Digi could put pressure on the Belgian telecom
consumer prices to gain market share. Digi could also raise
expectations on digital customer experience in the sector. In
August 2023, Proximus reached an agreement with Digi
Communications Belgium and Citymesh Connect on mobile
wholesale services and mobile infrastructure. This agreement
mitigates the potential revenue impact on the Proximus Group
through wholesale revenues.
Proximus’ superior fiber technology versus cable helps to
mitigate the churn risk in fiber zones and strengthen the brand,
reduce exposure to price disruption and maintain pricing power.
Proximus has also been consistently improving its multi-play
value propositions, and structurally improving customer
experience and customer service, translating in NPS gains and
reduced churn.
Keen on providing the best mobile experience to its customers,
Proximus has kept full control of its core network and spectrum
assets. Proximus managed to secure more spectrum, in all
bands, than other mobile players during the spectrum auctions
of 2022. This strength mitigates the churn and pricing risk for
Proximus as it allows Proximus to differentiate and guarantee a
superior mobile experience for the next 20 years.
Next to competitive dynamics, evolving customer needs, like the
acceleration of the “cord cutting” trend, i.e., customers
cancelling their digital TV subscriptions, would impact revenues
and customer stickiness as well as cost per digital TV customer
due to the high fixed costs. “Over the top” competition
(streaming services) drives the cost up for exclusive content.
The high quality of Proximus’ digital TV offer, the content
sharing strategy for sports rights and the partnerships with
streaming services mitigate those risks. Network/product
superiority and relevant digital services through the Proximus
app all contribute to mitigate the risk on customer stickiness and
brand relevance.
The multi-brand strategy of Proximus also contributes to the
risk mitigation. Scarlet and Mobile Vikings have very strong NPS
scores and a convergent offer complementary to the Proximus
brand offer. Scarlet addresses the price-sensitive segment and
Mobile Vikings offers attractively priced mobile and Internet to
young-at-heart digital-savvy customers.
Finally, Proximus domestic financial performance could be
impacted by disruptive technologies and new business models.
Should Proximus not be able to adapt fast and well enough, it
Proximus Group 305 Integrated annual report 2023
would impact market shares and profitability. Proximus
develops new revenue streams in domestic ICT and in faster
growing geographies in the digital communications market to
diversify and limit the risk on Proximus’ top and bottom line.
Belgian ICT market competitive dynamics
– enterprise market
On the domestic B2B mobile market, Proximus enjoys a solid
market share. Intensifying price-based competition could lead
to lower revenues and margins in the Corporate and Small &
Medium Business segments.
Citymesh, as part of European IT company Cegeka, is looking to
monetize its mobile spectrum investments, acquired in a joint
venture with Digi. The loss of key customers could impact brand
perception and Proximus’ pricing power. In fixed connectivity,
the range of Explore (convergent service platform) and SD-
WAN solutions is managed to answer evolving customer needs
whilst limiting revenue impact through targeted and proactive
migrations to next-gen solutions. Fixed voice erosion could
further accelerate and impact revenues and margins beyond
current forecasts. Proximus mitigates the telecom churn and
value erosion risks through its network leadership, good
customer relationship management and a strong portfolio of
convergent ICT solutions.
In the cluttered and competitive ICT market, the launch of
Proximus NXT in June 2023 creates a strong brand to build a
leadership position in the Benelux. Proximus NXT aims to be the
preferred technology partner to help enterprise customers
address their cybersecurity needs and seize opportunities
brought by cloudification, advanced data analytics, Generative
AI, etc. Proximus NXT combines the telecom foundations of
Proximus with unique ICT expertise and an ecosystem of
partners.
Failure to effectively address evolving customer needs, new
technologies, and market developments within the enterprise
sector in a timely manner, or a failure to introduce competitive
products or services, could result in lower revenues and
reduced profitability for Proximus NXT. These risks, if realized,
would ultimately have a negative impact on the overall financial
performance of Proximus, affecting both its top and bottom
line.
With the evolving European regulation on Corporate
Sustainability and the increasing focus of enterprise customers
on ESG, failure by Proximus to meet the required standards
could prevent Proximus NXT from getting some contracts or
even from participating in a selection process. The Proximus
Sustainability governance ensures continuous improvement in
ESG, sets high standards for internal teams, and ensures that
ESG achievements and commitments of Proximus are properly
reflected and communicated to the market.
Regulatory and legal risks
Proximus’ policies and procedures are designed to comply with
all applicable laws, accounting and reporting requirements,
regulations, and tax requirements, including those imposed by
foreign countries, the EU, as well as applicable labour laws. The
complexity of the legal and regulatory environment in which
Proximus operates 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 way they are
interpreted or applied, may result in damage to Proximus’
reputation, civil and criminal liability, fines and penalties,
increased tax burden or cost of regulatory compliance and
restatements of Proximus’ financial statements. Proximus is
subject to significant regulation and supervision, which could
require it to make additional expenditures or limit its flexibility,
affect its financial results in general and otherwise adversely
affect its business.
Proximus may be sued by third parties for infringement of
proprietary rights. The telecommunications industry and related
service businesses are characterized by the existence of a large
number of patents and trademarks. Litigation based on
allegations of patent infringement or other violations of
intellectual property rights is common. As the number of
entrants into the market grows and the overlap of product
functions increases, the possibility of an intellectual property
infringement claim against Proximus increases. In addition, the
Group may be sued for copyright or trademark infringement for
purchasing and distributing content through various fixed line or
wireless communications and other media, such as through its
portals. Any such claims or lawsuits, with or without merit, could
be time-consuming, result in costly litigation and diversion of
technical and management personnel, cause product shipment
delays or delays in the granting of patent applications or require
the Group to develop non-infringing technology or to enter into
royalty or licensing agreements. Such royalty or licensing
agreements, if required, may not be available on commercially
reasonable terms or at all.
If a successful claim of product infringement were made against
the Group or it could not develop non-infringing technology or
license the infringed or similar technology in a timely manner
and on a cost-effective basis and commercially reasonable
terms, operating revenue and net profit could decline.
Proximus Group 306 Integrated annual report 2023
The outcome of pending disputes involving Proximus with or
before Belgian Government bodies could adversely affect
Proximus’ operating revenue and net profitof 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.
Environmental risk and climate
change
In 2022, Proximus started integrating climate risk structurally
into the Enterprise Risk Management (ERM) processes and opted
to conduct a separate climate risk process in the years when the
ERM exercise is not taking place. In preparation to the Corporate
Sustainability Reporting Directive” we performed a double
materiality assessment and are reinforcing our processes linked
to climate risk.
Proximus has a clear strategy to reduce CO
2
emissions and has
put in place a scientifically validated action plan developed based
on the new 'Net Zero' standard of Science Based Targets to
achieve net zero greenhouse gas emissions by 2040.
Though implementing actions to mitigate climate change is
essential, Proximus also needs to take steps to adapt to ongoing
and future environmental climate changes. Understanding and
(financially) assessing our climate change risks and potential
vulnerabilities is key to avoiding disruption to our network and
our customers. At the same time, it provides a momentum to
reflect on how we can offer more value to society and our
customers. Both aspects inform our overall business strategy.
Physical risks as well as risks arising from transitioning to a low
carbon economy have been assessed. They were analyzed
across three climate scenarios that project three different
temperature paths increase: divergent net zero (+1.5°c), delayed
transition (+1.8°c) and current policies (+3°C). They were
additionally analyzed over three time-horizons: short-term (0-3
years), medium-term (3-10 years) and long-term (10-25 years)
in accordance with the recommendations of the TCFD (Task
Force on Climate-related Financial Disclosures). The magnitude
of impact scales used for the risk assessment was from “ low” for
impacts with a value less than € 100,000 to “very high” for
impacts that exceed € 12.5 M.
In the context of climate change risks, the standard Proximus risk
management methodology (1. research and workshops for risks
and opportunities identification; 2. analysis of financial,
operational, and reputational impact; 3. prioritization and action
plans) is applied with the involvement of relevant stakeholders
from the Technical, Tax, Legal, Regulatory, HR, Procurement,
Strategy, Business operations, and Facilities domains.
Proximus Group 307 Integrated annual report 2023
An overview of the climate change risks that could have a material financial impact
Risk Causes
Climate change related risk
Policy
ambit
ion
Short
-term
until
2025
Medi
um-
term
2025-
2035
Long
-term
2035-
2050
Policy
changes
1. Introduction of climate change related policies
by governments
These policies could result in a price increase, for
example by putting a price on CO2 emitted. Extra
flat taxes are also a possibility.
1,5°C
Low
High
High
1,8°C
Low
High
High
3 °C
Low
Low
Low
Market
2. Competition for scarce green energy supply
Energy prices have seen a massive price increase
due to geopolitical reasons. The move away from
fossil fuels also has an influence on pricing of
energy as green energy is in high demand.
1,5°C
Medium
High
High
1,8°C
Medium
High
High
3 °C
Low
Low
Low
Market
3. Increased outsourcing & supply chain risk as
they are also exposed to climate change impact
Climate change is one of the driving factors
influencing the economy. Climate change could
trigger pandemics, political uncertainty, raw
materials shortage, … with influence on our
partners.
1,5°C
Medium
Medium
High
1,8°C
Low
Medium
High
3 °C
Low
Medium
Mediu
m
Reputation
4. External stakeholder perception may not be in
line with Proximus efforts
Perceived inactivity/inconsistency of a company
with regards to climate change can lead to
customer churn, missed sales opportunities, lower
demand for products & services, regulatory fines,
…. Example: debate around roll-out 5G and climate
impact.
1,5°C
Medium
High
High
1,8°C
Low
Medium
High
3 °C
Low
Low
Mediu
m
Extreme
weather
events
5. Infrastructure damage
Extreme weather events will become more
frequent and widespread, even in unexpected
areas. These events will cause major disruption and
damage to IT systems and assets.
1,5°C
Low
Low
Low
1,8°C
Low
Medium
Mediu
m
3 °C
Low
Medium
High
An overview of the short-term climate change opportunities that could have a material financial impact:
Eco smart
products &
services
Development of low emission goods & services
There is a growing market interest in products-as-a-service and products with a lower footprint in terms of
carbon emissions and material usage.
Eco smart products &
services
Development of new products & services through innovation that can enable customers to reduce their CO
2
emissions
Solutions to decarbonize other sectors create existing and new business opportunities. Use of fiber & 5G as
enablers for IoT, Big data & Cloud solutions with a potential to reduce carbon emissions such as
smart agriculture, smart building, energy reduction, …
Proximus Group 308 Integrated annual report 2023
Markets
Green financing
New opportunities can also be captured through underwriting or financing green bonds and infrastructure (e.g.,
low-emission energy production, energy efficiency, grid connectivity, or transport networks)
Reputation
Talent attraction
Talent is moving to sustainable companies: the majority of younger generations want to work for a company
with strong sustainability/ESG action.
Approach of Proximus regarding the identified risks:
1. Introduction of climate change
related policies by governments
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 2022, 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 68 and 74.
The most important action for mitigating this impact is
ensuring our net-zero action plan is fully implemented.
Proximus is proud that its near-term and long-term
greenhouse gas emissions reduction targets have been
validated by the Science Based Targets initiative (SBTi).
Proximus commits to reduce its absolute scope 1 and 2
greenhouse gas emissions by 95% by 2030 and to maintain a
minimum of 95% reduction through 2040 (from a 2020 base
year). To this end, Proximus will eliminate fossil fuels from its
fleet and buildings and continue sourcing 100% renewable
electricity. At the same time, Proximus is working on energy-
efficiencies throughout its technical buildings, mobile & fixed
network, and data centers. Proximus also commits to further
reduce absolute scope 3 greenhouse gas emissions by 60%
by 2030 and by 90% by 2040 (from a 2020 base year).
These are very ambitious targets knowing that scope 3
greenhouse gas emissions, which include all indirect activities
throughout the value chain, represented 94% of the
company’s CO₂ emissions last year. To reach this ambitious
objective, Proximus is reaching out to its suppliers to
encourage them to set SBTi validated targets, source
renewable energy and implement a decarbonization pathway.
Proximus’ circular ambition and implementation of circular
principles, like eco-design, repair, refurbishment and lifecycle
extension will further open the pathway to achieving its net-
zero ambition.
2. Competition for scarce green energy
supply
The electricity prices worldwide have skyrocketed in recent
months due to geopolitical factors. Climate change is also
undoubtedly one of the factors influencing the price. The
forced move away from fossil fuels additionally implies a lower
guarantee of continuously delivered electricity. Proximus has
committed to use only green electricity is already using 100%
green electricity today. To mitigate the supply risk, 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. We will continue to invest in energy
efficiency measures. For example, in the next five years, data
traffic is expected to increase by 400%, a growth of about
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.
3. Increased outsourcing & supply
chain risk as they are also exposed
to climate change impact
Proximus depends on the partnership with its suppliers to
provide the equipment needed to ensure business continuity
and a sustainable supply chain. Thus, working with suppliers
that could fail to meet Proximus needs, or depending too much
on few specific suppliers, may lead to delayed or failed
deliveries, loss of revenue, regulatory fines or damage to our
reputation. Therefore, we analyse 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 reach its climate targets. In this regard, we
evaluate future acquisitions. We also engage with suppliers
and customers. 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 secure more sustainable supply chains
themselves. We already screen the sustainability performance
Proximus Group 309 Integrated annual report 2023
of our suppliers through the Joint Alliance for CSR (JAC) and
EcoVadis. We have a strict follow-up of critical supplier
contractual liability through a holistic Supplier Code of Conduct
(SCoC) and rigid Service Level Agreement (SLA) clauses. We
are sourcing sustainably: the sustainability component counts
for 20% of the tenders we issue. And lastly, through our
Supplier Engagement Program, we set detailed expectations
and KPIs for our suppliers and implement clear, binding
commitments.
4. External stakeholder perception
may not be in line with Proximus
efforts
We regularly monitor the evolution of our reputation through
market research. We put our circularity and CO2 reduction
efforts forward in our corporate communication, in our
commercial advertising, in our shops, on our packaging, etc.
Sustainability is also a cornerstone of our employer brand.
Through internal communication, we turn our employees into
ambassadors. And finally, we also communicate our progress
on Environmental KPI’s on a periodic basis (at least annually) to
investors and analysts.
The above-mentioned validation of our targets by the Science
Based Targets initiative (SBTi), our internal sustainability
governance and Board oversight (more information in:
‘Sustainability governance’) add to our credibility. Regular
stakeholder dialogue allows us to focus our actions and
communication efforts on the most material topics for our
stakeholders.
Through MyFootprint available on our MyProximus app, we
invite our residential customers to track and reduce their own
carbon footprint. We engage with peers, public authorities,
Belgian enterprise federations (e.g., Agoria) and international
sector associations (e.g. ETNO) to encourage collective action
and to put forward the positive role of our sector in helping
companies and public authorities reduce their environmental
footprint. Striking examples are our Smart energy, Smart
buildings, or Smart mobility solutions.
To preserve our reputation, all our carbon abatement claims
must be supported by credible and verified calculation
procedures.
5. Infrastructure damage
Climate change is one of the driving factors influencing
extreme weather events. In the coming years, extreme
weather events will become more frequent and widespread,
devastating areas that typically do not experience them and
amplifying the destruction in areas that do.
These events could cause major disruption and damage to IT
systems and assets. Data centres could be significantly
impacted, and critical infrastructure could be put at risk. To
anticipate and implement measures to protect Proximus
infrastructure against these extreme weather events, we use
expert input from scientists, such as the OFDA/CRED
International Disaster Database (http:// www.emdat.be) and
Université Catholique de Louvain, as well as performing our
own annual climate change scenarios risk assessment analysis.
Operational risks
Operational risk relates to risks arising from systems,
processes, people and external events that affect the
operation of Proximus’ businesses. It includes product life cycle
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 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
Proximus Group 310 Integrated annual report 2023
Resilience and business continuity
Business Continuity Management is developing its ability to
detect, prevent, minimize, and deal with the impact of
disruptive events so that business critical services and
functions can be operated at an acceptable level. The
approach is in line with the good practice standards and
Belgian regulations on telecom and critical infrastructure. This
is achieved via the development of business continuity plans at
corporate level for threats like power interruptions,
ransomware attack or natural disasters linked to climate
change. Building and ensuring the resilience of our network,
platforms and IT systems remains a top priority to minimize the
customer impact in case of incidents. These priorities are
managed by the corresponding business units. The business
continuity board is the steering committee which defines the
priorities, the scope and validates the outcome. The level of
preparedness is submitted annually to the Audit and
Compliance Committee.
Security
The escalating global cyber threats, along with the rise of
increasingly sophisticated and targeted cyber-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, services, business flows, systems and networks.
The confidentiality, availability, and integrity of the data of
Proximus and its customers are also at risk.
We are 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.
Proximus cyber security program sets important emphasis on
Identity & Access Management, for privileged users, business
users, partners, and vendors, on securing Proximus critical
infrastructure such as API, private and public clouds and DDoS
protection, on protecting against advanced disruptive malware
(such as ransomware) and extending the monitoring and
detection capabilities. Artificial Intelligence and Machine
Learning capabilities are increasingly used in Proximus’ cyber
security.
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. 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 the European Telecom Operators platform (ETIS),
GSMA, the Belgian Cyber Security Coalition and FIRST.
Furthermore, Proximus also acts to protect its customers
against fraud. With the support of the government, Proximus
invests in anti-phishing and anti-fraud platforms (SMS, email,
interconnect security)..
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.
Proximus began its GDPR compliance journey with a GDPR
readiness assessment conducted by an external company back
in 2016. Since this exercise, Proximus has 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., implementing a 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 is constantly improving its Privacy Review
Process to ensure privacy risks are identified early on and
swiftly acted upon.
As part of rendering the management of data subject requests
more efficient, 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.
Proximus carefully handles and documents the complaints it
receives regarding the protection of its customers’ data, which
come from the following sources:
• Concerned customers themselves
• Consumer organizations such as Test Aankoop/Test
Achats
• Bodies such as the Belgian Data Protection Authority
or the Belgian Telecom Mediation Service
Proximus Group 311 Integrated annual report 2023
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. Global instability, logistics
disruptions, energy crisis, climate induced natural disasters, etc.
increases the risk on our supply chain resilience.
Any breach of relevant legislation or non-compliance with
international standards for human rights by our suppliers could
lead to legal action and negatively impact Proximus’
reputation.
Risk mitigation is done via multi-sourcing, tier 2 management,
improved inventory management (advanced ordering, better
forecasts, etc.), demand reduction and product and process
reengineering. Thanks to enhanced Supplier Relationship
Management (SRM) we continuously assess risks together with
the partnering supplier, hence reducing vulnerability and
ensuring continuity. The relationship with key suppliers is
assessed and documented by means of meeting minutes and
surveys, which lay down the common strategies.
We continuously monitor risks through a SCRM by Sphera,
alerting the appropriate stakeholder in any case of disruption in
the supplier chain.
EcoVadis conducts sustainability performance evaluations, risk
assessments, and audits for national direct suppliers, while
major global suppliers undergo these processes through the
Joint Alliance for CSR (JAC) initiative.
We strictly follow-up on critical suppliers’ contractual liability
through our Supplier Code of Conduct and Service Level
Agreement clauses.
Thanks to our active monitoring and risk mitigation actions,
Proximus’ supply chain has proved resilient in previous crises
and financial impact was limited.
Legacy Network Infrastructure
In 2004, Proximus was the first operator in Europe to launch
an ambitious fiber-to-the-curb program, paving the way for
the 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 a massive increase in the number of kilometers in
the access part of the network.
With the rise in customer needs, we see for the coming year a
continuous increase of data consumption on our networks, and
this is 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 avoid having to
replace this ageing technology.
Risk Management & Compliance
Committee
In 2023, the Risk Management and Compliance Committee
(RMC) held four sessions. The related decisions were reported
to the Leadership Squad and the Audit & Compliance
Committee. RMC meetings provide an opportunity to review
files in which decisions must 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 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 to ensure that
Proximus only accepts risk which it is adequately compensated
for (risk/return optimization).
Since 2022, sustainability topics including climate change risks
have been included on the agenda of the Risk Management
Committee.
Proximus Group 312 Integrated annual report 2023
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 Proximus Group to accomplish these
objectives through its 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 Internal Audit Lead 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.
Since 2020, Proximus Internal Audit department, in accordance
with IIA Standard 1312 - External Quality Assessment, has been
certified by IFACI/IIA.
Financial reporting risks
In the area of financial reporting, besides the general enterprise
risks impacting the financial reporting the main risks identified
include new transactions and evolving accounting standards,
changes in tax law and regulations, and the financial statement
closing process.
New transactions and evolving
accounting standards
New transactions can have a significant impact on the financial
statements, either directly in the income statement or in the
notes. Inappropriate accounting treatment can result in
financial statements which fail to provide a true and fair view.
Changes in legislation (e.g., pension age, customer protection)
can also significantly impact the reported financials. New
accounting standards may require the gathering of new
information and the adaptation of complex (billing) systems. If
not adequately foreseen, the timeliness and reliability of the
financial reporting could be jeopardized.
It is the responsibility of the Corporate Accounting department
to follow developments in the area of evolving standards (both
local General Accepted Accounting Principles (GAAP) and
International Financial Reporting Standards (IFRS)).
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, in compliance with internal and external
standards, are 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 Leadership Squad are
informed on a regular basis about new and upcoming financial
reporting standards and their potential impact on Proximus’
financials.
Changes in tax law and regulations
Changes in tax laws and regulations (corporate income tax,
VAT, etc.) and their application by the tax authorities can
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
Proximus Group 313 Integrated annual report 2023
domestic laws. Failure to comply with the various laws and
regulations, changes in laws and regulations or the way 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 impact 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 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. The combination of all
these tests provides sufficient assurance on the reliability of
the financials.
Proximus Group 314 Integrated annual report 2023
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.
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.
Proximus Group 315 Integrated annual report 2023
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
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.
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.
Proximus Group 316 Integrated annual report 2023
Afterwards, the financial information is reported and explained
to the leadership squad (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:
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.
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.
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.
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.
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
Proximus is dedicated to exploring and developing future-
defining technologies. Our commitment extends to actively
engaging in an open innovation approach, fostering close
collaboration with customers, suppliers, and partners. Through
partnerships, we consistently broaden and stimulate our
research and development efforts conducted in various
Proximus labs, skilfully led by our innovation teams.
Proximus Ada
In 2023, Proximus Ada continued its development, positioning
itself as a center of excellence in artificial Intelligence (AI) and
cybersecurity. It is designed to be a pillar of innovation and a
center of expertise for all the companies in Proximus Group.
In AI, Proximus Ada leveraged the rise of Generative AI and
conducted research on various Large Language Model (LLM)
applications for Proximus and external customers.
More information in: ‘Engineer technology assets to enable
digital ecosystems’.
Proximus Group 317 Integrated annual report 2023
AI and Generative AI
Building on the AI experience of Proximus Ada and the cloud
expertise of Codit, Proximus has launched an AI offer for
enterprise customers through open innovation. We help
customers develop AI projects in three key domains: Generative
AI, anomaly detection & forecasting, and computer vision. Our
support ranges from discovery training to the rollout of
complex AI solutions. Read, for instance, the example below on
the computer vision-assisted inventory management solution.
Proximus has also embraced Generative AI apps to support the
productivity of its employees, boost customer experience, and
drive innovation. Multiple projects leveraging Generative AI
technology include enhancing search engines of internal
applications, and assisting in various tasks, such as writing,
correction, summarization, and text translation. Additionally, the
company is enhancing its Proximus Digital Assistant chatbot to
provide better customer experience.
5G, a driver of innovation
On 5G, we are developing technological innovations that will
lead to new opportunities for our customers. An example of
this is 5G slicing that we developed with our partners Nokia &
Ericsson. In 2023, our 5G innovation lab successfully tested the
first use case of 5G slicing, demonstrating its potential for real-
world applications such as emergency services.
Furthermore, we believe in empowering our customers and
partners by providing them with live testing environments to
stimulate the development of innovative 5G use cases. In
addition to its existing 5G innovation Hubs - A6K in Wallonia,
Howest University of Applied Sciences and Fabriek Logistiek -
Proximus also set up a new 5G Hub in partnership with VIVES
University of Applied Sciences in July 2023.
In 2023, we explored 12 new 5G use cases. More information in:
‘Grow profitably locally and globally through strong brands’.
A very telling use case we implemented in 2023 is the launch of
Wallonia’s first warehouse management project using a drone
coupled with 5G and artificial intelligence. Proximus teamed up
with several partners to develop a computer vision-assisted
inventory management solution that will make it possible for
the first time to fly a drone autonomously into a covered
storage warehouse, so that relevant, real-time information can
be transmitted to the company’s stock manager.
In the field of drones, we are continuing to develop our
partnership with Helicus for the future implementation of
Beyond Visual Line of Sight (BVLOS) medical drone flights. We
will further focus on the implementation of real use cases in the
area of image and video processing, analytics and edge
computing.
Quantum technology
Quantum technology will play an essential role in cybersecurity.
Today, Proximus is part of an ecosystem that includes industrial
partners and academic experts, and that is working on the
contribution of quantum research to strengthening data
protection and network security. This ecosystem also aims to
unite stakeholders across various domains of quantum
technology and to inform the market about the possibilities of
this promising field.
Proximus is advancing the development of Quantum Safe
Networks through Quantum Communications. Our approach
combines Quantum Key Distribution (QKD) and Post-Quantum
cryptography (PQC) to further strengthen network security. In
2023, we achieved a major milestone by validating the first
quantum-safe network on a production fiber network in
Belgium, showcasing our leadership in quantum technology.
To develop our employees' skills for the future, we have
launched a learning program called ‘Quantum Discovery Track’.
As of 2023, proficiency in quantum technology was achieved by
at least 70 Proximus employees.
Smart solutions
Together with its partners, Proximus delivers end-to-end
solutions enabling its customers to innovate by connecting
applications and devices, aggregating different data streams,
providing insights into their data, and automating processes.
Smart health
Proximus actively participates in various innovative projects in
healthcare. This includes monitoring for heart failure patients at
the ASZ hospital, preventive care at IDEWE Group, and the
exploration of extended reality with projects in Virtual Reality
for training purposes and Augmented Reality to support remote
assist use cases. A notable use case is the launch of the 5G
connected ambulance at UZ Brussel, where caregivers wear
smart glasses to support telemedicine. Surgeons also utilize
smart glasses to stream surgeries via a Proximus 5G connection
to the outside world.
Smart building and smart energy
In response to the challenge of climate change, Proximus
provides IoT and data analytics solutions to assist customers in
making smarter use of energy and reducing their carbon
Proximus Group 318 Integrated annual report 2023
footprints. Our focus on the energy transition, particularly the
role of buildings in creating a more sustainable world, is at the
heart of our initiatives. This is why we collaborate with
experienced partners such as Digital HQ and Aug.e, to offer a
broad range of smart building solutions to our customers.
Furthermore, our solutions contribute to creating smart
workplaces for customers, enhancing the comfort and well-
being of their employees.
Sovereign Cloud
To address customer concerns about protecting their data,
Proximus has strengthened its strategic focus on sovereign
cloud solutions. These solutions allow customers to fully
benefit from the advantages of the cloud, while substantially
increasing the protection of the data and preventing 3rd party
access, including access by the cloud provider.
In 2022, Proximus was one of the first operators in the world
selected by Microsoft to create a sovereign cloud. In March
2023, Proximus and Google Cloud joined forces to establish a
highly secure sovereign cloud. A first in Europe. This Google
platform, aimed to be physically isolated (i.e. not connected to
the public cloud or the internet), will be hosted in the data
centers of our partner LuxConnect and operated by Proximus,
through the Clarence joint venture
Internal initiatives supporting
innovation
The Design Thinking Center of Excellence is a dedicated team
of Design Thinking specialists. They translate the Design
Thinking methodology for employees and design standardized
tools to scale its implementation within the organization.
Annually, they train 900 employees and offer coaching for an
average of 16 strategic projects.
The Innovation Accelerator is about identifying and supporting
innovative initiatives that have the potential to become new
revenue sources, particularly in fields adjacent to our core
business. This accelerator places a premium on initiatives with
long-term growth potential, prioritizing foresight over
immediate impact.
The Proximus Innovation Committee is a central hub for
innovation within the company, fostering internal alignment and
promoting collaboration and knowledge sharing. The
Committee also handles collaboration opportunities and
funding requests from external organizations. This dual role
makes it a key contributor to Proximus’ innovation strategy,
integrating both internal and external innovation efforts.
The Customer Experience Challenge is an annual company-
wide hackathon that encourages cross-departmental
collaboration to generate innovative ideas and enhance
customer experience. The 2023 theme was “Delighting our
customers, boosting NPS,” with a focus on the Residential and
SME segments.
The Proximus Innovation Challenge is a series of hackathons
where participants with diverse backgrounds collaborate to
generate new ideas, share a learning journey and develop
prototypes with business value in just a few days. In 2023,
HackaWatt, the hackathon dedicated to energy efficiency was
organized in partnership with MolenGeek.
International operations
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 strong
fraud, security and analytics offering. BICS continues to monitor
market evolution and customer needs to enhance its services,
features and overall product portfolios.
A range of innovations are being developed at BICS at, including
its 5G Standalone Roaming Hub, which announced its first full
service 5G Standalone connection in October 2023.
More information in: ‘Grow profitably locally and globally
through strong brands’.
Telesign
Telesign’s 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.
In 2023, Telesign has extended its research and development
initiatives with the introduction of the Breached Data product.
This innovative addition to Telesign’s Identity product family
involves scanning the Dark Web to catch intrusions and protect
identities. The Breached Data product enables customers to
determine if and when a phone number – and any associated
data – has been compromised in a breach. The goal is to help
our customers proactively prevent account takeovers, fake
users, and synthetic identity fraud before financial, operational,
or reputational loss occurs.
Proximus Group 319 Integrated annual report 2023
Other information
Rights, commitments and contingencies
as of 31 December 2023
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.
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,
Brussels, 22 February 2024
Guillaume Boutin Stefaan De Clerck
Chief Executive Officer Chairman of the Board of Directors
Auditor’s
reports
Integrated annual report 2023
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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 2023 - Consolidated financial statements
In the context of the statutory audit of the consolidated 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 20 April 2022, 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 2024.
Deloitte Bedrijfsrevisoren / Réviseurs d’Entreprises BV/SRL has performed the statutory audit of the
consolidated financial statements of Proximus NV van publiek recht / Proximus SA de droit public for 14
consecutive periods. Luc Callaert BV/SRL has performed the statutory audit of the consolidated financial
statements of Proximus NV van publiek recht / Proximus SA de droit public for 2 consecutive periods.
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 2023, 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 11 153 million EUR and the
consolidated income statement shows a profit for the year then ended of 357 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 2023 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 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.
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.
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Key audit matters
How our audit addressed the key audit matters
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 ‘Material accounting policy information’,
14.2 ‘Contract Assets’, 22 ‘Other current payables
and contract liabilities’ and 23 ‘Net Revenue’.
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.
Goodwill impairment test
Per 31 December 2023, goodwill amounts to
2 5952million EUR and relates to the group’s three
Cash Generating Units (‘CGU’), respectively
Domestic CGU (2 188 million EUR), International
Carrier Services (‘ICS’) CGU (299 million EUR) and
Telesign CGU (105 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,
especially with respect to the ongoing fiber roll-out
project which impacts free cash flows over a longer
period than the typical forecast period of three
years. The group uses a business plan reflecting its
strategy and using internal and external sources for
macro-economic assumptions such as inflation and
long-term industry growth rate, as well as group
We obtained an understanding, evaluated the
design of controls over the group’s goodwill
impairment review process.
We performed audit procedures that included
evaluating the appropriateness of the determination
of the CGU’s identified and tested the allocation of
assets and liabilities to the carrying value of each
CGU.
We assessed the available information with
reference to the recoverable value of the CGU:
• We challenged the key assumptions,
methodologies, key areas of judgement 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
models and benchmarking with external macro-
economic data to determine if they were
reasonable and consistent with the current
economic climate.
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specific assumptions on tax rates, capital spending
and discount rates.
The details on the accounting for goodwill and the
disclosure requirements under IAS 36 - Impairment
of assets are included in note 2 ‘Material
accounting policy information’ and 3 ‘Goodwill’ of
the consolidated financial statements.
• We challenged management’s methodology to
determine the recoverable value, including the
way how the fiber roll-out strategy was
incorporated in the free cash flows, the
mechanical accuracy of the model and the
appropriateness of other assumptions applied.
• We involved our valuation specialists to challenge
the determination of the discount rate given the
sensitivity of the Domestic model.
• We assessed the historical accuracy of
management’s estimates.
• 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.
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
effectiveness demonstrated by the board of directors in the way that the company’s business has been
conducted or will be conducted.
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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.
• 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 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.
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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 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 director’s 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. The 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.
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.
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Single European Electronic Format (ESEF)
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 of the tagging with the technical regulatory standards as defined by 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
consolidated financial statements in the form of 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 SA as of 31 December 2023 are, in all
material respects, prepared in accordance with the ESEF requirements as stipulated by the Delegated
Regulation.
Other statements
This report is consistent with our additional report to the audit 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
Represented by Koen Neijens
Luc Callaert BV/SRL
Represented by Luc Callaert
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Independent assurance report on selected environmental, social and
governance information published in the Integrated Annual Report 2023 of
Proximus SA de droit public / NV van publiek recht for the period ending
31 December 2023
To the board of directors
We have been engaged by Proximus SA de droit public / NV van publiek recht (“the Company”) to conduct a
limited assurance engagement on selected environmental, social and governance information (“Selected
Information”) published in the Integrated Annual Report of the Company for the year ending
31 December 2023. In preparing the Selected Information, the Company applied the Applicable Criteria set
out in the note “GRI and SASB” in the section “Non-Financial statements” of the Integrated Annual Report.
The Selected Information needs to be read and understood together with the Applicable Criteria.
The Selected Information in scope of our engagement are listed in the table below and are identified
with in the Integrated Annual Report:
Selected information
Applicable criteria /
Basis of Reporting
Total fuel consumption within the organization from non-renewable sources
(including natural gas, heating oil, diesel, petrol and CNG)
GRI 302-1
Total fuel consumption within the organization from renewable sources
GRI 302-1
Electricity consumption within the organization
GRI 302-1
Energy efficiency ratio – Net Revenue based
GRI 302-3
CO2e emissions scope 1 – heating
GRI-305-1
CO2e emissions scope 1 - refrigerants
GRI-305-1
CO2e emissions scope 1 - fleet fuel
GRI-305-1
CO2e emissions scope 2 - electricity - market based method
GRI-305-2
Scope 3 – including 12 relevant categories (category 1,2,3,4,5,6,7,9,11,12,13 and
15)
GRI-305-3
Carbon intensity
GRI-305-4
Total waste - Belgium
GRI-306-4
Non-hazardous waste - recycled or reused - Belgium
GRI-306-4
Hazardous waste - recycled or recovered - Belgium
GRI-306-4
% waste reused/recycled - Belgium
GRI-306-4
% of hazardous waste – Belgium
GRI-306-4
Non-hazardous waste - with energy recovery - Belgium
GRI-306-4
Total collected mobile phones & refurbished fix devices - Belgium and Proximus
Luxembourg
Own indicator - linked
to GRI 301
Number of job seekers supported by Proximus initiatives in Belgium
Own indicator
Percentage of accessible tested devices (at least for 5 disability category)
Own indicator - linked
to GRI 413
Number of cases investigated by the Investigations Department for violation
of policies/Code of Conduct
Own indicator - linked
to GRI 205
Number of whistleblowing cases
Own indicator - linked
to GRI 205
Cybersecurity resilience index
Own indicator
Proximus NV van publiek recht / SA de droit public | 31 December 2023
Proximus Group
328
Integrated annual report 2023
% of total spend at suppliers with an EcoVadis sustainability scorecards -
Proximus SA
Own indicator - linked
to GRI-308
Number of annual on-site audit operations in collaboration with JAC
Own indicator - linked
to GRI-414
% of total spend at Proximus suppliers submitted to on-site audit operations in
collaboration with JAC - Proximus SA
Own indicator - linked
to GRI-308
Based on our work done as described in this report, nothing has come to our attention that causes us to
believe that the abovementioned Selected Information as published in the Company’s “Integrated Annual
Report 2023”, has not been prepared, in all material respects, in accordance with the Applicable Criteria.
Responsibility of the board of directors
The board of directors of the Company is responsible for the preparation of the Selected Information and
the references made to it presented in the “Integrated Annual Report 2023” as well as for the declaration
that its reporting meets the requirements of the Applicable Criteria.
The board of directors is also responsible for:
• Selecting and establishing the Applicable Criteria.
• Preparing, measuring, presenting and reporting the Selected Information in accordance with the
Applicable Criteria.
• Designing, implementing, and maintaining internal processes and controls over information relevant to
the preparation of the Selected Information to ensure that they are free from material misstatement,
including whether due to fraud or error.
• Providing sufficient access and making available all necessary records, correspondence, information and
explanations to allow the successful completion of the Services.
• Confirming to us through written representations that you have provided us with all information relevant
to our Services of which you are aware, and that the measurement or evaluation of the underlying
subject matter against the Applicable Criteria, including that all relevant matters, are reflected in the
Selected Information.
Our responsibilities
Our responsibility is to express a conclusion on the Selected Information based on our procedures. We
conducted our engagement in accordance with International Standard on Assurance Engagements ISAE 3000
(Revised) 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 Selected Information has not been prepared, in all
material respects, in accordance with the Applicable Criteria.
Applying these standards, our procedures are aimed at obtaining limited assurance on the fact that the
Selected Information 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.
Our work was performed on the data gathered and retained in the reporting scope by the Company as
mentioned above. Our conclusion covers therefore only the abovementioned Selected Information and not
all information included in the Integrated Annual Report. The limited assurance on the Selected Information
was only performed on the Selected Information covering the year ending 31 December 2023.
Proximus NV van publiek recht / SA de droit public | 31 December 2023
Proximus Group
329
Integrated annual report 2023
We are required to plan and perform our work to address the areas where we have identified that a material
misstatement of the description of activities undertaken in respect of the Selected Information is likely to
arise. The procedures we performed were based on our professional judgment. In carrying out our limited
assurance engagement on the description of activities undertaken in respect of the Selected Information, we
performed the following procedures:
• Perform analytical review procedures and consider the risks of material misstatement of the Selected
Information.
• Through inquiries of management, obtain an understanding of the Company, its environment, processes
and information systems relevant to the preparation of the Selected Information sufficient to identify and
assess risks of material misstatement in the Selected Information, and provide a basis for designing and
performing procedures to respond to assessed risks and to obtain limited assurance to support a
conclusion.
• Perform procedures over the Selected Information, including recalculation of relevant formulae used in
manual calculations and assessment whether the data has been appropriately consolidated.
• Perform procedures over underlying data on a statistical sample basis to assess whether the data has
been collected and reported in accordance with the Applicable Criteria, including verifying to source
documentation.
• Perform procedures over the Selected Information including assessing management’s assumptions and
estimates.
• Accumulate misstatements and control deficiencies identified, assessing whether material.
• Read the narrative accompanying the Selected Information with regard to the Applicable Criteria, and for
consistency with our findings.
We apply International Standard on Quality Management 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.
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 behaviour.
Inherent limitations of the Selected Information
We obtained limited assurance over the preparation of the Selected Information in accordance with the
Applicable Criteria. Inherent limitations exist in all assurance engagements.
Any internal control structure, no matter how effective, cannot eliminate the possibility that fraud, errors or
irregularities may occur and remain undetected and because we use selective testing in our engagement, we
cannot guarantee that errors or irregularities, if present, will be detected.
The self-defined Applicable Criteria, the nature of the Selected Information, and absence of consistent
external standards allow for different, but acceptable, measurement methodologies to be adopted which
may result in variances between entities. The adopted measurement methodologies may also impact
comparability of the Selected Information reported by different organisations and from year to year within
an organisation as methodologies develop.
Proximus NV van publiek recht / SA de droit public | 31 December 2023
Proximus Group
330
Integrated annual report 2023
Use of our report
This report is made solely to the board of directors of Proximus SA de droit public / NV van publiek recht’s in
accordance with ISAE 3000 (Revised) and our agreed terms of engagement. Our work has been undertaken
so that we might state to the board of directors those matters we have agreed to state to them in this report
and for no other purpose.
Without assuming or accepting any responsibility or liability in respect of this report to any party other than
the Company and its board of directors, we acknowledge that the board of directors may choose to make
this report publicly available for others wishing to have access to it, which does not and will not affect or
extend for any purpose or on any basis our responsibilities. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than Proximus SA de droit public / NV van publiek recht’s
and its board of directors as a body, for our work, for this report, or for the conclusions we have formed.
Signed at Zaventem.
The statutory auditor
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Represented by Koen Neijens
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