Belgacom Group I 2007 >

ENABLE I COMMIT I BUILD

Letter by the CEO >01 How we manage CSR >02 > Table of Socio-economic impact of telecommunications >04 Our customers >06 How we manage network roll out >10 contents Mobile phones, masts and health >12 corporate social responsibility 2007 Environmental impact of our operations >14 Supply chain >17 Our employees >18 Community involvement >22 About CSR reporting >25 Independent Assurance Report >26 Achievements and commitments >28 Global Reporting Initiative guidelines >30

In October 2007, we organised a Diversity week in our Headquarters. More than 740 employees participated actively expressing their own creativity in music, theatre, sculpture, photography in different ways. Most of the pictures that illustrate this CSR Report witness of this creativity.

PHOTOGRAPHER: véronique janssens - CUSTOMER EXPERIENCE MANAGER WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER: véronique janssens - CUSTOMER EXPERIENCE MANAGER WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Belgacom Group I 2007 >

3. Figures are significantly 2006, lowerthanin report becausethe Co 2. Figures were at notconsolidated Group level. 1. Including2,753 Telindus employees. Percentage of womeninseniormanagement Percentage of womeninmiddlemanagement Total revenue Financial Total investment social Social investment Percentage of womenintopmanagement 4. Skynet figures were not available. CO (x 2 (GWh) -0.4% emissions 1000 l) (network) (office) (Benzine) (x (x (ton) 1000 l) 2 2 2 emissionsfrom buildings emissionsfrom company vehicles emissionsfrom networks

(Mio EUR) (MioEUR)

1000 l)

(total employees) (in kEUR) (Fg) (‘000)

23%buildings 24%vehicles 53%networks

(‘000) (ton) (ton)

(ton) (in kEUR)

Diesel andoilconsumption

-8% 2 conversion factor isnowbasedonourreal energy mix. 22%oil 78%diesel 277,093 16,335 49,288 14,680 75,771 19,654 305.53 40,707 30.9% 20.3% 32.8% 11.9% 3,432 4,253 5,458 94.97 2,383 5,334 1,000 60.08 5,251 11.50 2005 959 n.a. Waste production -3,144 10,000 15,000 20,000

5,000 3 3 2

0 259,463 05 18,180 14,403 17,651 332.00 44,240 82,328 40,847 30.6% 19.6% 40.1% 14.0% 10.7% 3,569 4,311 6,100 83.53 2,237 4,716 1,000 57.48 5,238 2006 9.97 973 06 3 3 1

(ton) 07 300,556 18.5% 28.4% 16.8% 13,818 38,499 89,087 14,507 17,833 385.37 39,188 9.90% 3,946 4,620 6,065 81.26 2,070 3,811 50.75 5,136 12.48 29% 2007 958 550 4 4 4 4 carrier activities. Since2005, ithasbeen intheworld’s topteninthissector. Alongside, Belgacom ICS, ajointventure betweenBelgacom andSwisscom, isresponsible for international > > NetworksandITservicesare centralised within a singleunit: theServiceDelivery Engine (SDE). > Professional clientsare entitledtotheservicesof theEnterprise BusinessUnit(EB). > Private clientsare takencare of by the Consumer BusinessUnit(CB). structure basedonfour pillars: To fulfilourmission, wehave reviewed ourentire organisation andcreated, in2007, anewoperating Our organisation being used. television services, atevery momentof theday, wherever theplace, andwhatever typeof equipmentis At theforefront of technology, weprovide ourclients, private orprofessional, withtelephone, internetand Our mission networks, fixed ormobile. investments inleading-edge technology, weare abletooffer onall ourclientshigh-capacitysolutions the principal supplierof integrated telecommunications servicesinBelgium. As aresult of ourcontinuous Combining ourstrong backgroundasatelecomoperator andthemultiples talentsof ourteams, weare Belgacom Group: Whoarewe? Staff (S&S)brings together andSupport allthehorizontal the functionsthatsupport Group’s activities. www.belgacom.com Group onourinternetsite: More information ontheBelgacom

WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Belgacom Group I 2007 >

Key performancesindicators GWh Total fixedchannels access Oil Net income Total CO Total CO Employee turnover rate Water GWh Total movieproduction investment ‘Tax Shelter’ Diesel Gas Accident Frequency rate Number of basestations Environment Total mobileactive customerbase Waste Total number of employees Employment Total CO Percentage of women 3. Figures are significantly 2006, lowerthanin report becausethe Co 2. Figures were at notconsolidated Group level. 1. Including2,753 Telindus employees. Total investment social Social investment Percentage of womenintopmanagement Percentage of womeninseniormanagement Percentage of womeninmiddlemanagement Total revenue Financial 4. Skynet figures were not available. CO (x 2 (GWh) -0.4% emissions 1000 l) (network) (office) (Benzine) (x (x (ton) 1000 l) 2 2 2 emissionsfrom buildings emissionsfrom company vehicles emissionsfrom networks

(Mio EUR) (MioEUR)

1000 l)

(total employees) (in kEUR) (Fg) (‘000)

23%buildings 24%vehicles 53%networks

(‘000) (ton) (ton)

(ton) (in kEUR)

Diesel andoilconsumption

-8% 2 conversion factor isnowbasedonourreal energy mix. 22%oil 78%diesel 277,093 16,335 49,288 14,680 75,771 19,654 305.53 40,707 30.9% 11.9% 20.3% 32.8% 3,432 4,253 5,458 94.97 2,383 5,334 1,000 60.08 5,251 11.50 2005 959 n.a. Waste production -3,144 10,000 15,000 20,000

5,000 3 3 2

0 259,463 05 18,180 14,403 17,651 332.00 44,240 82,328 40,847 30.6% 14.0% 19.6% 40.1% 10.7% 3,569 4,311 6,100 83.53 2,237 4,716 1,000 57.48 5,238 2006 9.97 973 06 3 3 1

(ton) 07 300,556 16.8% 18.5% 28.4% 13,818 38,499 89,087 14,507 17,833 385.37 39,188 9.90% 3,946 4,620 6,065 81.26 2,070 3,811 50.75 5,136 12.48 29% 2007 550 958 4 4 4 4 carrier activities. Since2005, ithasbeen intheworld’s topteninthissector. Alongside, Belgacom ICS, ajointventure betweenBelgacom andSwisscom, isresponsible for international > > NetworksandITservicesare centralised within a singleunit: theServiceDelivery Engine (SDE). > Professional clientsare entitledtotheservicesof theEnterprise BusinessUnit(EB). > Private clientsare takencare of by the Consumer BusinessUnit(CB). structure basedonfour pillars: To fulfilourmission, wehave reviewed ourentire organisation andcreated, in2007, anewoperating Our organisation being used. television services, atevery momentof theday, wherever theplace, andwhatever typeof equipmentis At theforefront of technology, weprovide ourclients, private orprofessional, withtelephone, internetand Our mission networks, fixed ormobile. investments inleading-edge technology, weare abletooffer onall ourclientshigh-capacitysolutions the principal supplierof integrated telecommunications servicesinBelgium. As aresult of ourcontinuous Combining ourstrong backgroundasatelecomoperator andthemultiples talentsof ourteams, weare Belgacom Group: Whoarewe? Staff (S&S)brings together andSupport allthehorizontal the functionsthatsupport Group’s activities. www.belgacom.com Group onourinternetsite: More information ontheBelgacom

WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Letter by the CEO

“For us, Corporate Social Responsibility is not about altruism. It’s about good management.”

Enable, Commit, Build Our success as a company implies a lot more than making profits. We know we have many other responsibilities, and we are determined that every aspect of our contact with the world we work in should be as positive as possible. That, we believe, is the measure of true success. Our commitment with CSR reflects our conviction that as a leading provider of products and services to the public, we must match our business excellence with a sensitive awareness of the world we operate in. Particularly since the essence of our business is enhancing communication between people, we are acutely conscious of the broader needs of the people we serve. In 2007 we formalised this commitment by establishing our first formal corporate social responsibility report. This time last year, I said we were engaging on our CSR journey. Now one year later, we have made progress in establishing our CSR governance bodies and defining our CSR strategy. We articulated our CSR Strategy around two main axes: significantly contribute to building an inclusive e-society; and be an enabler of a sustainable growth. Our engagement is to develop technologies, products and services that are accessible by everyone irrespective of age, ability or circumstances; and that respect environment and help us and our customers managing our and their climate change impact. It may appear ambitious but the challenges of our 21st Century are neither less ambitious nor less crucial: for the wellness of our communities, it is essential that the technological progresses are accessible to every citizen; for the wellness of our planet, it is crucial that we all together face the climate change challenge. In translating our CSR strategy into actions, we defined six concrete commitments that will be supported by each member of our Management Committee: enhance access to communications; earn the trust of the customer; ensure transparent communication on health & online safety; embed CSR into company culture; increase energy and carbon efficiency; and invest in our community. For us, CSR is not merely a question of altruism or risk management. Fundamentally, it is about good management. My ambition is that it becomes a valuable management tool that tunes our performance more finely to the world we operate in. We see no contradiction in our determination to be a successful business and a socially-responsible business. CSR and business objectives are complementary, not contrary. Corporate Social Responsibility is a way of improving not just the business, but also the way we do business. This CSR report details our progress. It shows achievements. It also shows areas where we have not yet set benchmarks, or have not met the benchmarks we did set. And it indicates the commitments we have made for the future. We will continue building the systems and establish the structures to ensure that Belgacom Group's operations bring real and long-lasting advantages to everyone that our business touches.

Didier Bellens President and CEO

LETTER BY THE CEO - 1 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group > How we manage CSR

Belgacom Our Business principles and our Code of Conduct underpin our approach to business and to corporate social responsibility. These principles cover corporate and individual behaviours and are communicated to employees in different ways, for example in induction material and training, team briefings and on the corporate website of the Group. More information on our Business principles, Corporate Governance and Code of conduct on www.belgacom.com

CSR Strategy telecom groups; the CSR team and CSR Opco We have developed a Group CSR Strategy met to shape the CSR programme for the year that states our objective to be recognised as a 2008, identifying planned actions that could fit leading responsible business in Belgium. Based into the defined strategy. on clear Business principles, we aim to: In translating our CSR strategy into actions, > maintain high ethical standards; we reviewed the feedback we have received > understand and respond to our stakeholders’ from our stakeholders and we conducted priorities; benchmarking research with other > ensure our operating standards are telecommunication operators already active in consistent across the Group. CSR and recognised as leaders in this area, in order to identify the relevant issues. Finally we More specifically, we want to deliver on two conducted interviews with the members of the promises: Belgacom Management Committee (BMC). > promote an inclusive e-society; > enable a sustainable growth. This process led to the definition of six Group commitments. Our engagement is to develop technologies, > Enhance access to Communications products and services that are accessible > Earn the trust of the customer by everyone irrespective of age, ability or > Ensure transparent communication on circumstances; and that respect environment Health & Online safety and help us and our customers managing our > Embed CSR into Company Culture and their climate change impact. WE SAID > Increase Energy and carbon efficiency > Community Investment > we would set up a Group CSR CSR governance Department; A cornerstone of our approach is the These commitments have been approved by the Belgacom Management Committee > we would develop a Group CSR Strategy; development of an internal governance and reporting structure, centred around two (BMC) on 11th February 2008. Each member > we would develop and implement a CSR entities – the CSR department and the CSR of the BMC will act as sponsor for each of internal communication plan; Operating Committee (CSR Opco). These the commitments that will be translated into > we would further identify stakeholders committees headed by the Vice-President actions by the CSR team and the CSR Opco. and build a stakeholder engagement strategy (by end 2008); Group CSR report directly to the CEO and the Belgacom Management Committee (BMC). Management Systems > we would build CSR management Our goal is to build, by the end of 2008, a systems and structures (by end 2008). Over time, this network will become the Belgacom Group CSR management system knowledge base for CSR throughout the Group, that reflects Belgacom’s organisational identifying and promoting best practices, structure and provides the framework sharing perspectives on key issues, and bringing for measurable performance on CSR. In WE HAVE strong operational experience to bear as addition to the Business Principles, Group specific CSR initiatives are brought forward. As > established a Group CSR Department CSR reporting templates will be developed and created a CSR Operating Committee well as reporting to and supporting these two by the CSR team to measure and report (CSR Opco); Group entities, an ongoing objective of the CSR key environmental and social impacts in a > developed a Group CSR Strategy ; team is to build awareness and commitment to consistent way. Some of the data gathered CSR in the workforce. > started to communicate more so far are presented in subsequent sections proactively about our CSR Engagement. In order to transform our CSR Strategy into of this report. Belgacom’s CSR management actions, we benchmarked our issues with other system will set the overall direction and

2 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : WAlTER SCHEEPMANS - ENGINEER ExPERT - TElINdUS

parameters for CSR performance while (Union des Villes et des Communes de “Our engagement is to retaining operational flexibility. Wallonie and Vereniging van Vlaamse Steden en Gemeenten); develop technologies, Sharing best practices > Regulators: we meet on a regular basis with products and services that Belgacom Group is an active member the regulator to discuss issues of interest to of the European Telecommunications are accessible by everyone our business and public policy, and with the Network Operators’ Association (ETNO) Mediateur des Telecoms; irrespective of age, ability and has signed its Sustainibility Charter. This charter, launched in 1996, embodies > Industry organisations: we are an active or circumstances.” ETNO members’ commitment to sustainable member of various organisations, eg. Agoria, development via a sustainable provision Business & Society, FEB, …; of products and services with significant > Investors: The Group reports since 2006 on environmental, social and economic benefit a quarterly basis. Twice a year, following the and a determined effort to integrate their full-year and half-year results, we organise business activities with environmental, social a road show, covering the most important and economic responsibilities – minimising financial centres of Europe and the United where practicable, any negative impact these States. In between the road shows, a wide activities may generate. variety of investors and analysts have the Belgacom Group is an active member of opportunity to talk to senior management Business & Society, a business-led coalition in one-on-one meetings or conference promoting responsible business in Belgium. calls. In addition, we participated in three major international investment conferences. Identify the issues by engaging We also approach retail shareholders by with stakeholders participating in the yearly VFB (Vlaamse CSR requires an understanding of Federatie van Beleggingsclubs en Beleggers) WE WIll stakeholders’ expectations and taking action event. And a dedicated website is an integral to meet those expectations where they are part of the communication channel to the > further implement a CSR internal realistic and legitimate. Our engagement investment world. The “Investor Corner” communication plan; towards stakeholders is mainly carried out contains printable versions of published > identify stakeholders and build a within our business functions: reports, presentations and webcasts of stakeholder engagement strategy conferences, scripts of conference calls and (by end 2008); > Customers: we engage in many ways much more. > build CSR management systems and with our customers as part of our daily structures (by end 2008). operations, through our shops, contact Communication and awareness centres or surveys; Clear understanding of CSR and its issues > Employees: we seek formal feedback from by our employees, and how they relate to For more information, surf on: employees about a wide range of issues their roles within the Group are key factors > www.belgacom.com through surveys and consultation with their of our CSR performance. In 2007, further to > ETNO: www.etno.be representatives. We conducted an Employee existing trainings for specific departments > Business & Society: survey at Group level for the first time in such as Procurement, we started to actively www.businessandsociety.be 2006; communicate about our CSR engagement internally during Top management events, > Contact: > Governments: we meet regularly with [email protected] federal and regional government officials, through the intranet and other internal with representatives of local authorities communication means.

HOW WE MANAGE CSR - 3 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Socio-economic impact Belgacom Group I 2007 Group Belgacom of telecommunications Information and Communication Technologies (ICT) can bring significant social, economic and environmental benefits. We make a direct contribution to the society through direct and indirect jobs our activities create and the associated wealth it generates. We believe that the contribution of ICT goes beyond providing networks and services; and that we can contribute to EU’s sustainable growth and have a key role to play in achieving the i2010 objectives set up by the European Union.

“We believe e-health These i2010 objectives aim to create a single > We launched a trial with the Saint-Jean European information space; to strengthen Hospital in Brussels, in the cardiology might have a positive innovation and investment in research; and department. The objective is to determine if impact on quality of care, to support inclusion, better public service and the general practitioner’s intervention based quality of life through the use of ICT. on a telemonitoring platform and supported patient safety, efficient by a cardiology team in a population use of scarce resources and Digital preservation of Belgium’s of moderate-to-high-risk heart failure financials.” cultural heritage patients will result in a reduction in heart In the framework of EU Commission’s failure related hospitalization and all cause recommendation on digitisation and online mortality as compared to usual care. The accessibility of cultural material and digital trial will last until 2011, the objective is to preservation; and its implementation in allow people to have a better quality of life Belgium, Belgacom Group won the request even with a close follow-up of their disease. for proposal (RfP) to digitise the archived > We started the Bedside terminal proof of newspaper of the royal library. We will concept at the Erasme Hospital in Brussels, effectively start the digitisation works in 2008 in the maternity department. and we will be candidate for the following RfP The objective is to allow women having to planned by the Belgian government for the lie at the hospital for a long time due to digitisation of the 12 federal museums. a difficult pregnancy, to access directly to the Belgacom TV platform, the internet, the Enhance quality of life: phone, and medical information. By doing e-health initiatives so, they can keep in touch more easily The pressure to improve efficiency and service with friends and families and even have exists in all sectors but more specifically in some professional activities if allowed by the health sector. The Belgian Health system the doctor. From the doctors’ perspective, is held in esteem for the quality of its care, its the direct access to the medical file also accessibility, its social fairness and therapeutic increases the efficiency. For the patient, freedom. But the system is expensive and due the implication in their medical follow-up to ageing population, earlier onset and greater increases the quality of the care. prevalence of chronic diseases, the costs of > We started the Careso proof of concept health are expected to dramatically increase together with Ascom and Arco to work in the coming years. The key challenge is to out a solution for Care Registration via a bring costs under control without sacrificing WE SAID Digital Pen and Smart Paper in the Health on the core strengths of our system. > we would further engage with Care market. The purpose of Careso is to stakeholders to study and demonstrate As healthcare is an information intensive help the nurses in gathering information socio economic impact of ICT. sector and as e-health improves speed and linked to care giver and care taker: they automation, we believe e-health might have write on a Form, made on Ordinary paper a positive impact on quality of care, patient with an unique background pattern, they WE HAVE safety, efficient use of scarce resources and use a special Pen (Classic ball pen plus a financials. The Health Care market is asking built-in miniature camera, which captures > launched several projects in the domain for low-end solutions when it comes to the the written strokes and transfers the data of telemedecine; registration of care, and services based on via Bluetooth/USB). A Server knows forms > facilitated sustainable growth a simple and payable solution. In order to and pens, makes the pen data visible on the through dematerialisation and remote further define our long-term strategy in form template and prepares the data for a monitoring. the e-health domain, we launched and/or transfer to the hospital information centre participated in several initiatives in 2007: by using sophisticated character recognition.

4 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : OLIVIER WINkER - ANALYST, SDE:SDV:PSE:SIA: NSI

Optionally, it might even give feedback to a De Lijn: travellers in Antwerp and Ghent can mobile phone. We will start a pilot project pay their journey by SMS-ticketing. This new in 2008. payment system was developed together with > E-prescriptions: Prescriptions are a our mobile subsidiary Proximus Belgacom cornerstone in most health systems. Mobile. It has been voted one of the Top Studies in the USA, France and The 5 products of 2007 by the readers of the Netherlands show that for a population newspaper "De Standaard". of 10 million people, the estimated Besides e-billing, e-payment and mobile health costs (wrong hospitalisation e.g.) payment facilities we already offer to our amount to about 200 Million EUR per customers, we also introduced “e-Invoicing year, due to misinterpretations and errors Start”, a new service which enables smaller in prescriptions that are currently always businesses to offer electronic invoicing to delivered on paper. By switching from paper their customers through our joint-venture prescription to electronic prescription, we with La Poste/De Post called CertiPost. also expect to enhance the follow-up of the patient as the doctor gets feedback Going further we launched together with when the patient collects the medication the energy provider Nuon a “smart meters” in the pharmacy; and to have a better view pilot project for electricity and natural gas of all medication taken (for patients, also, in cooperation with the federation of the if allowed for physicians and pharmacists). Flemish environmental movement, Bond We will launch a pilot project in 2008, once Beter Leefmilieu. This pilot project started legal and ethical implications would have in October 2007 and allows its participants been clarified. – 150 families for this project – to monitor their energy use via a secured access to the > We launched an online professional training internet. solution for the employees at the Cliniques universitaires St Luc, Brussels. This solution How does it work? The smart digital meters allows all the hospital staff to be informed send at regular intervals and securely the of and trained with new procedures, new usage data via the Proximus-network to a techniques even if they are working with data center. Customers can consult their different timetable. usage data at any time via a secure access to the internet. In this way, customers can look > We launched Medega, an internet project at their daily, monthly or annual data and to allow people to access the list of the follow up and compare their usage in detail. doctors who are in stand-by during the They can also ask to be notified by SMS or nights and the weekends. e-mail when their usage rises above a certain Facilitate sustainable growth value, for example. through dematerialisation and The Belgacom Group is providing the end- remote monitoring to-end solution with the smart meters, the ICT can bring a wide range of services software and the website application for helping the community to better manage its consulting the energy usage. This pilot project environmental impact by offering electronic will run until mid 2008. We believe this WE WILL alternatives to existing services. Besides the project could lead to develop new products e-billing and e-payment facilities we offer to and rate plans which take into account the > continue to investigate opportunities our customers, Belgacom launched a West- personal usage profile of customers. This could in e-health domain and define a Group European première in 2007 in cooperation then have both economic and ecological strategy. with the Flemish Public Transport Company benefits.

SOCIO-ECONOMIC IMPACT OF TELECOMMUNICATIONS - 5 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group > Our customers

Belgacom We value a long-term relationship with our customers. Our ability to develop this long-term relationship depends on us providing products and services that are easy to understand and to use at the right price with the best possible service level. This includes our marketing and advertising material, product information and billing.

“Every one irrespective of age, ability or circumstances can enjoy the benefits of telecommunications.” We have Launched new initiatives allowing the possibility to call one international our customers to understand more destination of their choice (France, Germany, clearly the costs related to the use Italy, Luxembourg, the Netherlands, Spain, the of our services United kingdom or the United States) free of Customers are often confused about the charge off-peak. costs of calls, especially when travelling Proximus launched Pay&Go International, a abroad. They also regularly wonder if they are prepaid formula for customers with friends benefiting from the right tariff plan. Every one or family abroad. It allows calls and SMS at of our contact points with our customers is the national rate to their chosen country equipped to provide the best adapted tariff in Europe. In addition, for each minute of plan for every customer. That is what we call calls to the selected country, the customer Tariff Check Up. Moreover, once a year, we automatically receives a free call minute to provide a written indication of the cheapest Proximus numbers. plan for each fixed-line and mobile post-paid customers calculated in line with usage; and Enhanced access to our services we call some customers proactively to offer We further expanded our range of broadband them a better tariff plan. rate plans Belgacom ADSL Budget (EUR 20/ Proximus launched Vodafone Passport, a month for 1Mbps). By doing this we continue new price model on the Belgian market, to propose decreasing prices on the market providing simple, cheaper rates for mobile for broadband products going from ADSL GO calls while abroad when using one the at EUR 41,75/month, then the ADSL Light Vodafone networks. The customer pays a fixed at EUR 31,55/month and now the Budget. amount of EUR 0.99, and can then call at the For customers who require only surfing same rate as at home. This initiative not only and e-mailing, we also introduced several allows the customer to better understand the ADSL packages without fixed line. The few cost of his calls but also offers a substantial remaining narrowband subscribers can now decrease of price. As an additional service to choose between the various ADSL packages, WE SAID our customers not using it, we alert them by which means that Belgacom will be able to > we would launch at least two new SMS when they’re abroad and when they stop its dial-up service soon in 2008. initiatives to ensure clearer and easier to exceed their allowance, we encourage them understand costs for customers; Late in 2007, we took a major step in the to subscribe to Vodafone Passport to save convergence of products and services, with > we would join the Safer Internet money. Framework for safer mobile use for the launch of a combined fixed and mobile younger teenagers and children. Belgacom introduced HappyTime internet offer. It offers customers the ability International, offering its customers to combine their ADSL service with the

6 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : GINO BERTIN - FIx MOBILE CONVERGENCE

new Mobile internet offer. This allows our Through our Belgacom internet Academy, customers to access the internet anytime, all new ADSL customers can benefit from one anywhere - at home and on the move. day of free internet training. We organised nearly 1,000 sessions in 2007, involving some We also introduced several packs with 1,000 9,000 customers. attractive rate reductions to residential sessions of Belgacom Internet customers who choose several products or For people with impaired hearing, we offer Academy organised services. The “internet + TV Pack” and the on-demand TV news with sign language and “internet + TV + Mobile Pack” are available we tested end 2007 a videotelephony service, in two versions: one with ADSL Light, for employing a videophone with a high quality which a phone line is needed, and another screen. Ninety members of Deaf associations with ADSL Go, which needs no phone line. (Fédération francophone des sourds de Belgique) and of the CM (Christelijke In 2007 we further adapted to our Mutualiteit) participated in this operational customers’profile by launching segmented test, and 40 Belgacom employees participated offers: the first one allows women have their to the technical test. own mobile offer with attractive conditions that reflect their calling behaviour, and For children who are chronically sick or provides “tailored” content, with market suffering a long-term illness, Bednet vzw and Take Off asbl aim to develop a virtual leaders Sanoma Magazines Belgium and network. It enables them to connect Proximus joining forces; the second one with their own teacher and classmates at called MobiSud is a virtual mobile operator school, and to continue their involvement operating on the Proximus network. It is by distance learning, overcoming the risks targeted at Belgium’s Maghreb communities. of falling behind in their schoolwork or The Belgacom TV platform also welcomes the of social exclusion. Bednet and Take off Moroccan channel “TVM International”. provide hardware, software and an internet Developed or supported initiatives connection between classroom and home, and can be extended to hospital if required. It is to bridge the digital gap free-of-charge for all parties. In 2007, about Telecommunications have dramatically 30 children have benefited from the support changed the way we communicate. For us, of Bednet and 15 children benefited from Take it is important that every one irrespective of Off’s action. We provided both associations age, ability or circumstances can enjoy the with ADSL lines and technical installations. benefits of telecommunications. Therefore we have developed or supported several initiatives to help bridging the digital gap.

OUR CUSTOMERS - 7 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group Belgacom

BELGACOM-CUSTOMER CARE WON THE BELGIAN CONTACT CENTRE AWARD 2007 Belgacom-Customer Care won the Belgian Contact Centre Award 2007 with its “Defining and implementing a winning balance” programme. This project made it possible to combine a reduction of more than a million calls with an increase in revenues, better client satisfaction, and improved services to the customer.

Joined the European Framework every 2 months (5 to 10, depending on for Safer Mobile Use by Young the subscription). By December 2007, our Teenagers and Children customers had downloaded 2.5 million i-Tunes songs as part of their internet subscription. Access control solutions for age-restricted content are part of our standard offer to On Belgacom TV, the adult content is our fixed and mobile customers since years protected by default with the parental now. In 2007 however, we decided to join control and the parental control is by default the European Framework for Safer Mobile activated at the highest level. Use by Younger Teenagers and Children. This framework puts forward a series of On the internet, the parental control on recommendations to ensure that younger internet is available on request in our package teenagers and children can safely access Norton Security, via an easy download. content on their mobile phones. Specific approaches addressed by the Framework Listened to our customers include access control mechanisms; every day classification of commercial content; fighting Our contact centres and helpdesks receive illegal content on the internet; and raising millions of calls every year from our awareness and education. The text of the customers, most frequently with requests for “We continued our fight Framework was developed during a series of information about our products and services. against spam and viruses high-level group meetings, organised under But customers also call in order to complain. the auspices of the European Commission, and At Belgacom Fixed Line Services, the average and stimulated legal use of overseen by GSM Europe. number of complaints per month represents content on the internet.” 4% of all incoming calls, and at Proximus it Responsible use and content represents 2.5%. WE HAVE Besides this initiative, we continued our fight More than half the Fixed Line Services against spam and viruses and stimulated legal complaints concern subscription fees, > launched 3 new initiatives to ensure use of content on the internet. More than Belgacom TV and promotion. Against the better price understanding: Vodafone one million mailboxes can benefit from our target we set handling 80% of complaints Passport; Happy Time International, state-of-the-art anti-virus and anti-spam within 10 working days and 100% within 30 Pay&Go International; service, free of charge. And we stimulated working days, we handled 82% of residential > signed the Safer Internet Framework. legal download of music, by providing our complaints and 76% of professional complaints ADSL customers with legal i-tunes credits within 10 working days in 2007, and only

8 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

82% residential complaints are handled within 10 working days

ICE - CONTACT WITH FRIENDS OR FAMILY IN CASE OF EMERGENCY In their daily tasks, emergency services are often confronted with a simple question when saving someone’s life. They often simply don’t know who to call. In 2007, we participated in a jointly initiative lead by the Institut Belge pour la Sécurité Routière (IBSR) promoting the use of a single In Case of Emergency (ICE) number. By encoding this number in their contact list, every one allows the emergency services to know who to call if they look into the mobile phone contact list. As the system is becoming more widely used around the world - so it will work when being abroad too.

3% of residential complaints and 6% of and Marketing Communication Practice” as professional complaints were still pending after a framework for responsible advertising in WE WILL 30 working days. At Proximus, more than half Belgium. The basic principles of the Code are > develop guidelines and processes to the complaints concern billing, basic products that all Advertising should be legal, decent, gradually implement a responsible and contracts. In 2007 we beat our target of honest and truthful. The Code states that all marketing culture covering branding, handling 75% of complaints within 5 working marketing communication should be prepared new product launch, customer protection…; days and almost reached our target of 90% with a due sense of social and professional within 10 working days: we handled 81.6% of responsibility. The Federation des Entreprises > make our customer communications on price and products fully transparent; the residential complaints within 5 working de Belgique (FEB/VBO) represents the ICC days and 88.4% of the complaints within (International Chamber of Commerce) in > continue to promote social inclusion 10 working days. At Telindus, complaints Belgium. by facilitating access to technology through products, prices, programs and concerning billing account for 69% of the Nevertheless, we had to drop an advertising sponsoring; total. Our 2007 target of an average of 60 days campaign for Belgacom TV based on > increase our efforts to protect children to handle and close complaints was met in comparisons with digital television after a against any type of undesired content 45% of cases, and treatment time by 37% in court ruling on a competitor’s complaint. on the internet and on television; comparison with 2006. The judge decided that the campaign > enhance our mobile customers' We have also created in 2007 a Customer was legal, but did not meet all necessary protection against undesirable SMS and Experience department which has received the conditions. MMS service-provider practices; mission of putting itself into the customer’s > develop a CSR checklist to be used in shoes before any product launch. the Products & Services product launch process to be sure any CSR concern is Marketed and communicated identified; > continue to inform our customers about our products and services in a the green impact of many telecom responsible way products. Responsible marketing means making sure our communications are always legal, decent, fair, honest, truthful and sensitive to the views of different groups in society. More info on the framework: We proactively submit most of our adverts to www.gsmworld.com/gsmeurope/ the JEP (Jury for Ethical Advertising Practices) documents/eur.pdf and follow its recommendations. The JEP uses “the Consolidated ICC Code of Advertising

OUR CUSTOMERS - 9 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > How we manage Belgacom Group I 2007 Group Belgacom network roll out Connectivity is an important element to include more people in our increasingly digital world. To allow customers to benefit from the growing opportunities offered by ICT, we continuously invest in extensive and technologically advanced networks. We recognise that these investments can raise concerns from communities, about the coordination of the public works with other companies, about the visual impact of base stations or about health issues.

We have Expanded broadband access in all three Regions - Brussels, Flanders and Our Broadway project, in preparation for Wallonia - to improve this. Belgacom’s future needs, made progress. We continued bringing fibre to the street Installed more base stations cabinet (in ROPs - Remote Optical Platforms) By the end of 2007, our mobile network had and rolling out the VDSL platform to the 3,946 sites, up 10% in a year, as a result of customer - reaching our target of national the expansion of our business and the roll- coverage of 58% at the end of 2007, up 13% out of our 3G network. The Proximus GSM/ on 2006. Phase I, covering 61% of the national GPRS network covers 99.8% of the Belgian footprint, will be completed by the end of population and our UMTS 3G network covers March 2008, activating 14,300 ROP’s with 84.4%, far above our legal deployment VDSL equipment, and allowing us to offer obligations. HDTV to our customers thanks to higher bitrates. The national coverage target for The essential components of a mobile the end of 2008 is 65%. Potential access to telecom network are the base stations and Belgacom TV was stable at 80% of Belgian their antennas that transmit and receive 99.7% households during 2007. calls and data. The radius of coverage from a base station ranges from 5 kilometres in broadband coverage by end 2007 By the end of 2007, our new technology flat countryside to less than 100 metres meant that broadband accessibility reached in town centres or inside buildings. Each 99.7% of Belgian households, exceeding base station can handle only a certain the target of 99.4%. As our offer evolves number of simultaneous calls, so zones from basic broadband services towards with intense telephone traffic require a more extensive communications (VoIP, greater density of base stations. Deploying Videotelephony), new entertainment (iDTV, our network requires a balance between VoD), and full personalization via home technical and commercial imperatives, but networks and security, a flexible higher- we strive to take always maximum account performance network is needed to provide of the interests of communities on location adequate capacity. This is why we launched selected and design for each new base an analysis in 2006 of how to move to a core station. We need permission from landlords infrastructure based on IP, the communication to build base stations on their property protocol used on the internet. The analysis and we must engage with communities WE SAID focuses on more than just a network upgrade and local authorities to obtain consent. or expansion; it also looks at the impact on > we would extend broadband coverage The average time to obtain consent is 248 to 99.4% of Belgian households; process and systems optimization. days nationwide, but this varies from region > we would organise at least one telecom The main issue we face when deploying our to region. More than 50% of the permits day per Region. fixed network concerns the coordination of requested in 2007 related to technical public works, and we are involved in initiatives modifications of existing stations, rather than

10 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

the construction of new sites, and this trend number of integrated sites since last year, and will intensify in 2008. an intensified search for new techniques to we haVe be deployed in coming years. the number of > extended our broadband coverage to as Vodafone’s partner network in Belgium, shared sites remained stable. 99.7% of the Belgian households; we apply its responsible network deployment > participated in 20 health sessions with policy, with its guidelines on legal compliance, Complied with our public health local and national government bodies, environmental impact, radio frequency obligations including the Belgacom telecom Days, emissions, site planning and selection, although the deployment of base stations and 29 sessions with people living near communication and consultation, and rarely generates controversy, we have taken base stations. landlord relationships. numerous initiatives to provide full public we regularly evaluate the satisfaction of information. In the health field, we cooperate our landlords through telemarketing surveys with the Belgian federal government’s website we wIll and by visiting them. the global average www.infogsm.be, which is managed by the satisfaction level through the surveys “mobile telephony” sub-committee of the > continue the roll-out of the VDSl platform in order to reach a target of increased form 82.87% to 83.75% between Commission for the Safety of the Consumers. national coverage of 65%; 2006 and 2007. Besides this, the main all new base stations or technical > enhance our communication to our indicator we are monitoring is the average modifications to existing stations are stakeholders. lease reconduction intention which indicates the subject of a mandatory health report the probability of renewal after lease expiry certifying to the Belgian Institute for Postal date. It slightly decreased from 82.91% to services and telecommunications that they 82.04% from 2006 to 2007. on another meet Belgian standards. During 2007, we hand, the satisfaction rate of our landlords is submitted more than 1,000 of such reports. 95% as monitored by our visits to landlords two months after site activation. these visits we also regularly respond to request from will be extended in 2008 to include major public bodies to take part in information technical modifications on existing sites, sessions, and in 2007 we were involved in and 462 landlords will be contacted via 20 health sessions with local and national telemarketing by the end of January 2008. government bodies, including the Belgacom telecom Days, and 29 sessions with people living near base stations. we also continued to 84.4% Minimised site impact on the landscape inform our staff on health matters, organising UMTS-3G network coverage we ensure that our base stations are eight internal information sessions - in by end 2007 integrated as far as possible in the addition to the precise information that all countryside. In addition to the legal obligation of our staff can access to on the company’s More information to be found in the to share sites among operators wherever Intranet. Corporate Responsibility section of technically possible, we have continued our www.belgacom.com. efforts to integrate base stations, leading to a slight increase from 552 to 626 in the

how we manage network roll out - 11 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group > Mobile phones, masts and health

Belgacom The rapid growth of mobile technology has brought personal, business and social benefits. However, some people are concerned about the health effects from the electro magnetic fields (EMF) emitted by handsets and base stations. We recognise this concern and address it by engaging with local communities as part of our network deployment process and by closely monitoring the evolution of research in this field. This section presents significant reviews and research published during the financial year 2007.

World Health Organisation Similarly, in 2006, in a review of the impact of The WHO research database, which had been base stations and wireless technologies, WHO 2 updated in September 2007, already listed concluded that “Considering the very low nearly 2,800 studies on electromagnetic exposure levels and research results collected fields, and 40% of these referred to mobile to date, there is no convincing scientific telecommunications. evidence that the weak radio frequency signals from base stations and wireless Over the last ten years, national and networks cause adverse health effects.” international independent expert panels have reviewed this literature on a regular WHO and national bodies continually review basis, and have consistently concluded that the current science and define further scientific research has not demonstrated any research needed to conduct an even more “WHO and national bodies public health risks associated with either comprehensive health risk assessment, and mobile phone masts or the phone handsets WHO updated the research agenda for continually review the themselves, where the emissions are within radio frequency fields in 2006. Worldwide current science and define internationally accepted exposure guidelines. investment in scientific research on the possible health effects of electro-magnetic These reviews also highlight the need for further research needed fields totals more than US$250 million, and further research. According to WHO, “All WHO will review the entirety of the data on to conduct an even more reviews conducted so far have indicated that radio frequency and report on its findings exposures below the limits recommended in comprehensive health risk within 3 years. the International Commission on Non-Ionizing assessment.” Radiation Protection 1998 electromagnetic fields guidelines, covering the full frequency Interphone range from 0-300 GHz, do not produce any INTERPHONE is a series of multi-national known adverse health effect. However, there case-control studies of the relation between are gaps in knowledge that still need to be mobile telephone use and brain cancer risk, filled before better health risk assessments co-ordinated by the International Agency for can be made.” Expert reviews published in Research on Cancer (IARC). 2007 are in line with this statement, including Since 2004, INTERPHONE has been publishing in recommending further research. studies on the possible association between Other reviews of evidence to date also offer the use of mobile phones and the incidence of some reassurance. In 2005, WHO concluded1 head and neck tumours. Collaborative national that electromagnetic hypersensitivity “has studies conducted under the INTERPHONE no clear diagnostic criteria and there is umbrella conclude that there is no evidence no scientific basis to link electromagnetic of an association between mobile phone hypersensitivity symptoms to electromagnetic use of up to 10 years and acoustic neuroma, field exposure”. It found that electromagnetic meningioma or glioma. Insufficient data exist hypersensitivity is characterized by a variety for firm conclusions to be drawn on long-term of non-specific symptoms that differ from usage, and INTERPHONE will analyse the data individual to individual, that the symptoms from national studies in 13 countries to make are certainly real and can vary widely in further assessments. The report is expected in their severity, and that “whatever its cause, 2008. electromagnetic hypersensitivity can be a 2,800 disabling problem for the affected individual”. The International Agency for studies on electromagnetic fields But, it said, electromagnetic hypersensitivity Research on Cancer are listed in the World Health “is not a medical diagnosis, nor is it clear that IARC, which routinely conducts reviews of Organisation database it represents a single medical problem.” commonly-used materials, is aiming to create

12 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : ANNICk DEVEIRMAN - CORPORATE SERVICE MANAGER - PROxIMUS

a formal classification of the cancer-causing frequency signals have not been found to potential of radio frequency fields from a cause cancer. However research is underway review of the science as from September to investigate whether there are likely to be 2008. This is expected to be a key input to the any subtle, non cancer effects on children and subsequent WHO health risk assessment of adolescents. The results of this research will exposure to radio frequency fields. need to be considered in due course." - Irish Department of Communications, Energy and European Commission Natural Resources, March 2007. Report of European Commission experts said3 in March the Expert Group on the Health Effects of 2007 “No health effect has been consistently Electromagnetic Fields on their review of the demonstrated at exposure levels below the scientific evidence for adverse health effects limits of the International Committee on Non- in radio frequencies range 300 Hz to 300 Ionising Radiation Protection established in GHz, and their consultation with government, 1998”. However, they added, «the data base citizens and industry. for evaluation remains limited especially for “None of the research supported by long-term low-level exposure.” In the second the programme and published so far quarter of 2008, the Commission is planning demonstrates that biological or adverse to review the implementation of the 1999 health effects are produced by radiofrequency EU Recommendation covering general public exposure from mobile phones" - Uk Mobile exposure electromagnetic fields. Telecommunications and Health Research Programme, September 2007. 2007 Report Expert Reviews Published of studies supervised by the independent During 2007 scientific management committee established “On the basis of current scientific knowledge by the Uk government. The report also notes no long-term effects can be identified that measurements of radio signals from base as a result of prolonged exposure.” - stations show exposures to be well below Netherlands Health Council, February 2007 those set by international guidelines. Electromagnetic Fields: Annual Update 2006, “No evidence of detrimental health effects focused on electromagnetic fields and health were obtained in the studies on cell cultures, on mobile phone and cordless fixed phone laboratory animals, voluntary persons, or technologies. theoretical modelling.” - HERMO, Finland, The current weight of evidence, including November 2007 Health Risk Assessment of from recent laboratory studies, radio Mobile Communications, the fourth in a series mechanistic studies, and epidemiological of national research programmes since 1994, 1. Fact sheet 296: Electromagnetic Hypersensitivity. studies, is against the existence of non- and based on the research needs listed in the thermal effects from radio waves - Swedish WHO Research Agenda and review of recent 2. Fact Sheet 304: Electromagnetic Fields and Public Health: Base Stations and Wireless Technologies. Radiation Protection Authority's Independent literature. Expert Group on Electromagnetic Fields, 3. European Commission’s Scientific Committee March 2007 Recent Research on EMF and on Emerging and Newly Identified Health Risks Updated Opinion on “Possible effects of Health Risks: fourth annual report, reviewing Electromagnetic Fields on Human Health”. the health effects of radio waves in relation to their previous annual reviews. Further information “So far no adverse short or long-term health can be found on > www.infogsm.be effects have been found from exposure to the > www.who.int radio frequency signals produced by mobile > www.iarc.fr phones and base station transmitters. Radio

MOBILE PHONES, MASTS AND HEALTH - 13 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Environmental impact Belgacom Group I 2007 Group Belgacom of our operations Climate change is now widely recognized as the major sustainability challenge we are facing. As an ICT Group, we are in a quite unique position as our products and services can help addressing Climate change issues while our energy needs increase due to our business growth. Limiting our contribution to the climate change is therefore a priority. Our operations fall from environment point of view in four main categories: the fixed and mobile networks; the offices and the fleet we use to support customers and run our business; the commuting of our staff every day; and the waste produced by our activities.

We have Managed to keep our CO2-eq Used less fuel emissions constant We lowered the total fuel consumption of The CO2-eq emissions associated with power our fleet by 4% vs 2006 and the average CO2 consumption of our networks accounted for emission related to new orders was lowered from 53% of our CO2-eq emissions in 2007. In 165gr/km to 159gr/km at Belgacom SA. In order order to limit this CO2-eq emission increase, to achieve those results, we made significant we deployed energy-efficient network efforts to reduce the daily travels of our 2,700 cooling methods (free-air cooling) in 55 new field technicians, and promoted heavily customer locations, helping us to limit the increase of self-management tools. We also developed CO2-eq emissions to 8.2%, resulting in 89,087 remote diagnostic and trouble resolution tools ton CO2-eq. for our call centers - 90% of DSL/TV customer service cases are managed remotely. In the meantime, we further decreased CO2 –eq emissions related to energy use in our To further promote environment friendly cars, offices by 13% vs 2006, thanks to continued our fleet department enhanced their cost focus on building optimization programs: model to take into account fuel efficiency we sealed unused spaces; we repaired and and CO2 emission levels with corresponding renewed old roofs and installed double glass; taxes and costs, so that fuel efficient and we further replaced heating fuel oil by gas and environment friendly cars become more continue to remove asbestos in Connectimmo affordable for our drivers. Fuel efficient and buildings. Finally we installed solar heating for environment friendly cars get a financial tap water in 8 sites. bonus, others a financial penalty, and hybrid Belgacom SA also took a new initiative by cars become affordable also for the lower purchasing 25% of its energy needs from leasing budgets. In 2007 we applied this -0.4% green sources. This green energy is produced principle for the selection of our "Best Buy" total CO -eq emissions from the Electrabel’s Alpenergie hydraulic and standard car offer. In 2008, we will apply 2 projects. this policy to all orders of company cars. WE SAID In order to increase Climate change issue Produced less waste and used less awareness among our employees, we hosted > we would roll out energy efficient paper an international conference on climate cooling methods at large scale; We commit ourselves not only to reduce change impacts on business, and we presented > we would purchase 25% of energy the Environmental impact of our energy Al Gore’s movie “An inconvenient truth” in our needs from green sources; consumption but we are fighting against any premises. > we would investigate the possibility of a adverse environmental impact or enhancing ISO 14000 certification at Group level; any positive contribution to the environment. > we would establish a study to monitor We do not manufacture handsets or network CO emissions at Group level. 2 equipment but we produce waste through the packaging of the products and services we put

14 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : DIDIER BLANC, DEPT JUSTICE BMB/MCS

on the market, through raw material due to the expansion works on our networks. In 2007, total CO2 emissions (in tons) Benzine consumption (000L) we produced less waste than one year earlier: 200 – 15,000 – 14,507 tons, a decrease of 18% compared to 12,000 – 150 –

2006. 40,707 40,847 39,188 Vehicles 9,000 –

The business model for mobile phones in 100 – 49,288 44,241 38,499 Buildings 6,000 – Belgium is different from other European Networks 50 – countries where mobile phones are subsidized. 3,000 – 14,354 14,403 13,818 75,771 82,328 89,087 Consumers have to buy their handsets and, 0 – 0,000 – as a consequence, replace their mobile 05 06 07 05 06 07 phones every 18 to 24 months on average. The renewal of mobile phones and batteries “We commit ourselves not only to reduce the Environ- obviously raises the question of recycling and reuse of these devices and their components. mental impact of our energy consumption but we are Anticipating the European directive on waste fighting against any adverse environmental impact or electrical and electronic equipment (WEEE), Belgian legislation has actually stipulated enhancing any positive contribution to the environment.” a recovery obligation for manufacturers and importers of electric and electronic WE HAVE appliances. Since 2001, Recupel for household > rolled out free air cooling in appliances, Val-I-Pac and FOST Plus for 55 locations; packaging and Bebat for batteries take care > purchased 25% of Belgacom SA of our obligations in terms of recycling and electricity from green sources reuse. Our Logistic department developed a since September 2007 (certified RELOOP system that makes sure all assets of hydroelectricty from Alpenergie); Belgacom or products that are returned from > reviewed our priorities and have clients are reused, recycled or treated in a way not pursued the idea of ISO 14000 that is least harmful to the environment. certification; > identified potential suppliers for the We have renewed printers and reviewed CO2 audit and will perform the audit printing policies, helping us to achieve a 19% in 2008; reduction in printing paper consumption > managed to keep our CO2-eq emissions vs 2006. Most of our Proximus employees constant vs 2006; no longer receive a paper bill but only an > used less fuel (-4% vs 2006); electronic bill and all field technicians now work on portable PC and most documents 25% > produced less waste (-18% vs 2006) and are electronic, thereby saving up to 16 Million of Belgacom SA electricity used less paper (-19% vs 2006). paper sheets per year. from certified green sources

ENVIRONMENTAL IMPACTS OF OUR OPERATIONS - 15 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Belgacom Group I 2007 Group Belgacom

PHOTOGRAPHER : GEERT DEGEzELLE - BuSINESS CONSuLTANT MANAGER TELINDuS

Waste production (in tons) 20,000 –

15,000 –

10,000 –

5,000 –

0,000 – 19,654 17,651 14,507 05 06 07 -18% waste production

WE WILL In the meantime we further promoted e-bill > continue the deployment of energy tyre pressure on fuel consumption and among our customers resulting in 280,000 efficient cooling methods; corresponding emissions; fixed lines customers and 30,000 mobile > start deployment of photovoltaic panels, > promote eco-driving, by enabling 30 customers no longer receiving any paper bill. and continue assessing opportunities employees to follow a 1-year training. We also promoted e-mail-based marketing vs to use green energy sources in our We will use results to assess the fuel paper-based marketing towards our customers. operations; and emissions savings related with fuel- efficient driving techniques; Every month, an adsl.be newsletter is sent to > perform a CO2 audit at Group level; > further assess options to increase the 500,000 Belgacom ADSL customers e.g. > analyze options to define, within the flexibility offered by our mobility plan; ETNO framework, a standard KPI We treated 87,418 tons of soil in our soil on energy efficiency and use it to > start a collection program for PMD treatment centres, an increase of 37% vs benchmark our energy efficiency vs (plastic, metal and drink cartons) in 2006. We continued to undertake significant other European telecom operators; Belgacom headquarters; soil remediation projects: during a soil > continue to implement quick win energy > launch a study to assess ways to lower remediation project in Hasselt, we took the saving initiatives with payback lower packaging waste, by replacing plastic by security tape for-example; opportunity to investigate the remains of an than 4 years; old monastery from the 17th century that > continue our “Building Optimization > initiate a foil collection & recycling used to be located on the Belgacom premises. Program” to seal unused space and thus program, mainly in our distribution centres; During those investigations, archaeologists save on utilities & cleaning; could gain better insight in the housing and > deploy a new dispatch application in > further push penetration of e-bill in 2008 via dedicated marketing actions; way of living of the nuns at that time. But order to optimize travel routes of our they also found prehistoric artefacts (7000 technicians; > initiate at least 2 soil remediation BC) like stone tools and pottery of the iron > organize on-site checks of tyre pressure, projects; age (pre-roman times). They are by the oldest take corrective actions and raise driver > enable our employees to benefit from traces ever found in Hasselt. awareness about the influence of correct discount and financing on solar panels.

16 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD > Supply chain We do not own any manufacturing facilities. We buy network equipment, phones and services from a large number of suppliers. Through our supply chain management, we try to ensure that the working conditions in our supply chain meet internationally recognized human rights standards. And we control repair centres regarding environmental procedures and recycling of spare parts from defective devices. Ethical purchasing is a standard condition in Proximus contracts . The Code of Ethical Purchasing (CEP) sets out the labour and environmental standards we expect our suppliers to meet. The CEP is based on international standards, including the Universal Declaration of Human Rights and the International Labour Organisation (ILO) Conventions on Labour Standards.

PHOTOGRAPHER : PATRICk VAN PUYMBROECk - SENIOR TEST MANAGER 84% purchase orders sent out electronically

We have WE HAVE > organised a seminar with Business & “Ethical purchasing is Started to develop a Group-wide code of ethi- Society to further raise awareness of cal procurement, based on the code of ethical a standard clause in Belgacom SA buyers on ethical purchasing; purchasing used by Proximus. This code will > started to source fair trade coffee; Proximus contacts.” be finalised in 2008 and included in all new contracts at group-level. > started to develop a Group-wide code of ethical procurement. In the meantime, we continued to raise the awareness of social and environmental issues by training our buyers. For instance, a seminar was organised with Business and Society WE WILL to further raise awareness of Belgacom SA buyers. > finalise the CSR training of all Group procurement buyers; We also have started to source fair trade > inform suppliers on Belgacom CSR policy products, by installing a fair trade coffee during supplier's day and forums; machine in Proximus main building. > source more fair trade products; We continued to promote e-supply and to > continue efforts to develop e-flow and reduce usage of paper and faxes. At Belgacom thereby limit use of paper/fax; WE SAID SA, 84% of our purchase orders were sent out > finalize a Group-wide procurement electronically, an increase of 29% vs 2006. policy, including ethical & CSR aspects; > we would continue efforts to promote End 2007, we selected another set of 500 > integrate Vendor's compliance towards and encourage ethical purchasing and suppliers to receive their orders electronically sourcing within the Group; CSR as an explicit evaluation during via CertiPost. In addition to e-Ordering, sourcing & selection projects; > we would develop a group-wide Code of Belgacom Procurement is pushing to receive > integrate a CSR clause in all new contracts. ethical procurement. from the suppliers their invoice electronically via CertiPost.

SUPPLY CHAIN - 17 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group > Our employees

Belgacom Long lasting organisations are built on solid foundations and our employees are our most valuable asset to pursue our vision to build a new customer centric organisation and deliver the convergence strategy we designed in 2006. This new organisation rests on four pillars: two customer-oriented business units to approach the specific market segments (Consumer and Enterprise), one network and IT entity, and one entity incorporating the staff and support services.

PHOTOGRAPHER : DIDIER BLANC, DEPT JUSTICE BMB/MCS We have Started building our new customer Organised workshops with business segmented organisation leaders to manage Cultural change Collaboration between the affiliates really We believe that changes we are going started in 2007. Four entities have been through will only be successful if they created grouping similar functions from the are accompanied by a change in mindset. 3 affiliates to better serve our customers Therefore we started workshops with business in this increasingly convergent market: leaders to define the attitudes Belgacom Consumer Business Unit (CBU), Enterprise Group needs in the future to deliver the Business Unit (EBU) Service Delivery Engine strategy of convergence. Based on these (SDE), and Staff & Support. The existing results, we will define Group Corporate values. hierarchical structure within the affiliates still We aim to build coherence between the exists, but we defined and implemented a strategy, the brand and the employee. functional matrix structure related to this new organisation. Concerned teams and employees Surveyed our employees for the have been allocated/mapped to the top level second time at Group level organisation structure, we supported the More than 11,000 Belgacom Group employees implementation of this matrix organisation by took the opportunity to express their opinion WE SAID intensive communication and we organised and feelings about their organisation and specific workshops with top management job as well as about the changes our Group > we would put in place a new customer is going through. The overall satisfaction segmented organisation; to answer practical questions (recruitment, evaluation) and to share experiences. rate and commitment of our employees > we would focus on change management (expressed under the form of an index) and cultural change to deliver We aim to integrate the Staff & Support dropped from 84 in 2006 to 70.5 in 2007. convergence strategy; teams of the affiliates within Belgacom Even if our employees widely recognized the > we would develop a change SA, after respecting the legal requirements organisational transformation as a necessity, management and cultural change of Information and Consultation for each these results clearly highlight a situation of strategy to facilitate the transformation legal entity. Therefore we started ad-hoc discomfort about how these changes are process of the Group; information and consultation platform experienced. This is especially true at Telindus > we would develop a strategy to increase at which representatives of almost each and Proximus. Even if such reactions are visibility and process transparency of company its union and management vacancies across the Group; of course inherent to all change processes, delegation are present. Union delegation they are also a strong signal. Business Units > we would develop a new pillar in consists of 32 participants. The negotiations will identify the tangible actions needed to training and development - House of are led by external professional negotiators prepare teams for and guide them through development 3 on innovation with wich are also mediators from the federal Vlerick and Solvay Business School; these changes in 2008. administration. This is an exceptional way > we would launch a diversity action plan. of working to ensure that everybody will be represented.

18 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : DIDIER BLANC, DEPT JUSTICE BMB/MCS

Increased visibility and process and another 113 employees updated their transparency of vacancies across knowledge in this field; 266 employees NEw OPPORTUNITIES FOR the Group followed the Fire fighting training STATUTORy EMPLOyEES We launched a “Group HR corner” on the In these efforts we managed to maintain our We have a statutory relationship with Group’s Intranet. This unique entry point for occupational accidents (Frequency rate as the majority of our employees. In 2007, all our employees allow them to access easily defined in the code of well being at work) at we agreed with the unions to allow the common HR information and tools. Within the same level compared with 2006, (12.48 in people who are in reconversion to apply this intranet site, the open positions Group- 2007 and 12 in 2006) far below the Belgian for a job in federal administrations. More than 1,000 personal profiles wide are now available for all employees. average frequency rate. have been introduced in “Selor”, an As from now, the employees from all affiliates Offered room for self-development electronic tool specially developed for can also access to the HR helpdesk via one this project, recruitment is ongoing. unique phone number or one unique template and a balanced life available on the “HR corner”. This is the first The balance between private and professional step to the standardization of the HR support. life is a matter of personal choice. It is the foundation for employee growth. In order to Continued to promote a safe and help all employees achieve that balance, we healthy work environment offered a wide variety of solutions, such as It is a key challenge for us to foresee in the teleworking, holiday camps for children, a best safely and healthy environment to work childcare service during the summer months for our employees. Through a systematic and a sick child home-care service, numerous approach of risk analysis, surveys and field health care benefits and all kinds of social visits, we developed a dynamic risk model welfare benefits. Those initiatives have been which is the base for continuous improvement awarded by the Prize “Entreprises Familles in this field. We developed several projects Admises” (family-friendly companies) by the aiming at keeping the awareness high “Ligue des Familles”. among our employees: we realised two Our employees can also give free reign to their security movies (“gardeners” and “power”) creative talent outside working hours in The 70.5 and edited a DVD about working in heights; Pulse, free hobby workshops that stimulate satisfaction rate of our employees 112 employees followed First Aid training our employees’ creativity and team spirit. (index)

OUR EMPLOYEES - 19 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Belgacom Group I 2007 Group Belgacom

89% employees followed at least one training course

The Pulse is an initiative that was started by We organised a first certification of the The pulse – Key FIGures For 2007 a group of enthusiastic employees and offers trainers in collaboration with the KUL. Every 64 different courses were organized: an impressive range of course and workshops, trainer will receive courses on didactical about 2 per working week in 2007 from photography and video-making to aspects and then give a lesson that will be > 1,188 bookings over the year 2007 painting, drama and even disco dancing. evaluated by an examiner. The objective is > 515 different people have attended one The course and workshops are held in the to ensure that all trainings given by the BCU or more courses/sessions Belgacom Creativity Centre, where employees have an equivalent quality: 56 trainers have > These people have expressed 88% can use a professional photography and video been certified the first year; a second wave of satisfaction on the courses (via the BCU studio as well as music studio free of charge. 50 trainers is foreseen in 2008. survey tools) During the Week of Diversity, we welcomed Launched a Diversity action plan. > Belgacom Group Award 2006 – several expositions, concerts and other Employee Award went to The Pulse team Further to the development of our Diversity activities perfomed by the Pulse employees; strategy in 2006, we established a Diversity and as a Christmas gift, every Group employee Operational Committee. This Operational received a cookbook bringing together recipes Committee is responsible for implementing from employees of the cooking studio. the Diversity strategy. In 2007, we launched We value our employees’ skills and an Internal communication campaign (incl. competencies and aim at developing them a dedicated Intranet site) promoting Diversity by offering a wide range of trainings and and raising awareness among our employees. development possibilities. The Belgacom We launched the Winc initiative, a women Corporate University has for objective to network has been created that will bring support performance, culture of enterprise, together business women with diverse roles & WE HAVE personal development and career evolution responsibilities and provide them a platform of opportunities to grow personally and > started building our new customer of the employees. In 2007, 89% of employees segmented organisation; followed at least one training course, with an professionally through leadership, education, networking and recognition. 3 events have > organised workshops with business average of 34 training hours per employee. been organised, with the objective to: make leaders to manage Cultural change; This is little less than in 2006 (93.7% of our new business contacts and build a strong > increased visibility and process collaborators followed at least a training, women community with a passion for transparency of vacancies across the with an average of 37.5 training hours per Group; learning and growing; facilitate opportunities employee); the difference is mainly due to the to network with inspiring business leaders > offered room for self-development and changes within the Group. For instance, the (women & men); enhance business a balanced life; third pillar of our leadership program, House understanding; sharing experiences; identify > launched a Diversity action plan. of Development 3, has been organised once role models and mentors; break the glass and then put on hold for update. ceiling; and build the inclusive culture.

20 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : DIDIER BLANC, DEPT JUSTICE BMB/MCS Belgacom has been awarded the Prize “Entreprises Familles Admises” (family- friendly companies) by the “Ligue des Familles”.

More than 200 people attended to each event. In October, we organised a Diversity week to create awareness for Diversity along hours our employees. More than 740 employees 34 participated actively in conferences training hours per employee from external speakers on different topics (marketing, HR, customer care & operations…). In terms of recruitment and selection, we financially supported Interface 3, a diversity recruitment project: answering a real need for technicians, we supported the creation of an ICT training mainly addressed to women, unemployed, with a low level of education. After a selection based on several criteria, we offered 900 hours trainings, including 6 weeks in enterprise, to 11 women and 5 men of which half are from migrant origin. WE WILL Every 2 months, we evaluate the progress and for those who will succeed, a job opportunity > finalise Staff & support integration; will be offered. If the experience is positive, > define Group Corporate values to build the same kind of training could be launched coherence between the strategy, the for shop vendors in 2008. brand and the employee; > continue the standardization of the HR Besides this initiative, we offered all HR support for all affiliates; employees responsible for recruitment and internal selection a 3 days intensive training > continue to promote a safe and healthy work environment. in collaboration with Randstad Diversiy. The objective is to apply recruitments practices without discrimination that stimulate diversity. Surf on Finally, we have been awarded the “Equal and Diversity” Label by the Federal Government. www.belgacom.com

OUR EMPLOYEES - 21 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group > Community involvement

Belgacom We play an important role in Belgium’s economic and social development, and we believe we cannot remain indifferent to the growing needs of the society around it. Over and above any legal obligations, we have spontaneously taken part in patronage and partnership initiatives to help protect children and people with mental health problems, to support medical research, training and education of disadvantaged and unemployed people, and management schools, and to protect the environment. The full description of the projects we support is available on www.belgacom.com.

PHOTOGRAPHER : SOPHIE COLLETTE - MARkET ANALYST We have Supported social projects through Belgacom has started to distribute without our employees and funding charge furniture that it replaces in the We encourage social commitment among Belgacom Towers. In total about 20,000 desks, our employees through The Helping Hand cupboards or drawer units were given to initiative, which provides up to 5,000 EUR in associations and schools across Belgium. financial support for new social projects in charitable associations where our employees Trained about 2,200 people with work as volunteers with people who are ICT skills disadvantaged, handicapped or sick. In We are also partnering with social 2007, 71 requests have been approved by organisations aiming at providing ICT skills the Helping Hand jury and have received to under or unemployed people. Associated assistance. initiatives in this field are: > the Belgian Employability Alliance, which TRANS-MISSION Launched by our mobile subsidiary in 2002, shares a strong commitment to support Trans-Mission is an independent organisation the Proximus Foundation selected 41 Belgian the EU’s Jobs and Growth Partnership by that aim to mobilise young people to the world non-profit associations in 2007 that benefit providing skills training for employability social stakes and give them the possibility to from a total 500,000 EUR in support. The to disadvantaged groups: young under-and be involved in different projects. 70% of the projects were selected by an independent jury youngsters between 16 and 25 years are ready unemployed workers, older at-risk workers of Belgian celebrities, experts and Proximus to be involved in a social project but only 12% and people with disabilities; are really doing it. The objective of TM is to employees and customers. > Technobel, an ICT training centre in the support them by proposing projects and follow- Besides these specific programs, we regularly up. In 2007, Belgacom started to support the south of Belgium introduced higher-level welcomed sales from NGO’s over the year. association via sponsoring, in 2008 a closer training in 2007, and became a CISCO collaboration will be put in place. During the Christmas period, we hosted a Academy. It also continued its mission of Christmas sale of United Fund for Belgium, raising ICT awareness, particularly among an initiative we also fund. smaller companies, and Belgacom has agreed to help with an ambitious new Distributed refurbished PC’s and project in 2008 to boost competitiveness given furniture to schools and employment in the region; As part of our efforts to reduce the digital > Formation Insertion Jeunes, a Brussels gap, in 2007 we offered 350 recycled personal based centre for unskilled job-seekers in the computers to organisations providing ICT WE SAID ICT field. Hundred young people received training for disadvantaged people; and 900 training and many of them were also helped > we would review our Community refurbished PCs, without charge to 100 to find jobs; Investment policy by end of 2008. schools through the Proximus PCs for schools program. > the Network for Training Entrepreneurship

22 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER : DENIS LEMAL - TECHNICAL ACCOUNT MANAGER

(NFTE), which encourages young people internet security guidelines for children. We from financially disadvantaged backgrounds will also launch new initiatives in 2008. RESPONSIBLE yOUNG DRIVERS to increase their social and professional As a structural partner of Responsible Young skills in pursuit of opportunity and an active, Supported athletes with Drivers (www.ryd.be), we offered, for the second entrepreneurial role in their own lives and intellectual disabilities consecutive year, the proceeds from the first in business. In 2007 it trained about 400 We encourage the Special Olympics Belgium million SMS messages sent by our mobile people. as a springboard to fulfillment, self-confidence customers to mark the New Year’s Eve celebrations. and recognition for athletes with intellectual The Responsible Young Drivers promote safe We also made donations to the Queen Paola driving among young drivers. We also welcomed disabilities. The Special Olympics proves that Foundation, the fundraising organization 2 awareness and recruitment actions to the RYD will-power supported with encouragement that supports projects to help young people actions: People from the RYD came at Belgacom can overcome almost any challenge. with problems to reintegrate into society; towers to request volunteers for their year end Belgacom backed the Belgian delegation to action, and an invitation to a “clean party”: no and partnered with Piazza dell’Arte, a mobile the Special Olympics World Summer Games drugs, no alcool but concerts, dj’s, etc… educational organization that provides in Shanghai in October 2007 with a blog opportunities to be creative using multimedia that followed the daily performances and technology. A bus equipped with PCs offers experiences of our athletes. It also welcomed one-week internet training sessions at schools the delegation back home with due ceremony. in disadvantaged areas and at youth centre. Our Belgian athletes have brought 72 medals Partnered with Children protection from Shangai. organizations The Belgacom Group supported other sporting In 2007, we continued to support Child Focus, movements that promote values shared the European Centre for Missing and Sexually by our company: team spirit, expertise, WE HAVE Exploited Children, with finance, and with the responsibility and self-confidence. Sport, use of a building in Brussels. We also provided like any form of communication, brings > supported social projects through our employees and funding; Child Focus with a new phone exchange, people closer together, and this is also what and with funding to celebrate its tenth Belgacom is striving for. > distributed refurbished PC’s and given anniversary. We have completely renovated furniture to schools; and expanded the space in the building they Helped research in medical and > trained about 2,200 people with ICT use. environmental fields skills; Aware of the importance of research, we also > partnered with Children protection Belgacom is a key partner of Action Innocence, recognize its vital contribution to healthcare. We organizations; an NGO that helps preserve children’s dignity funded the Erasmus Foundation with its annual > supported disabled athletes; and integrity on the internet by raising "Belgacom Research Grant” for young doctors to > helped research in medical and awareness in schools urging children to “surf work on a biomedical research project. the internet with care.” In 2007 Belgacom environmental fields. produced 20,000 mousepad summarizing

COMMUNITY INVOLVEMENT - 23 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb I 2007 Group Belgacom

“The Special Olympics We also engaged our customers in the Pink Ribbon campaign against breast cancer, proves that will- in partnership with Samsung. We gave the power supported with Association against Breast Cancer EUR10 for each GSM sold by Samsung, generating EUR encouragement can 93,350 so far. overcome almost any We also supported research in environment challenge.” through our engagement with the International Polar Foundation. Even if our impact on the environment is less direct than many industrial companies, we are naturally concerned by the environment and global warming. The International Polar Foundation informs the public about polar research and promotes understanding of climate change. 500 employees were invited to attend the 400 young people trained by NFTE public presentation of the Princess Elisabeth Station. Invested in movie production in Belgium We contributed to the financing of movies WE WILL including: Glenn, l’Antartique en Héritage, > study the opportunity to create a Brendan & the Secret of kells, Los , and Silence Belgacom Group Foundation, based on de Lorna. We are proud to record that “Ou existing success of Proximus Foundation est la main de l’homme sans tête”, a film we & Helping Hand; This report is also available on decided to invest in, obtained two awards at > start a study to identify key needs to www.belgacom.com the Namur Film Festival 2008 - best actress, address, this helps us to review our for Cécile de France, and best art direction. social investment policy at Group level.

24 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD > About CSR reporting this is the second belgacom group Corporate Social Responsibility (CSR) Report. it covers the year ended 31st December 2007.this printed version is primarily aimed at stakeholders with particular interest or professional involvement in Corporate Social Responsibility.

Selection of the information group and its impact on jobs; radio frequency Clarity: information is made available in a included in this report fields and health. We aim to cover all the manner that is understandable and accessible in this report, we aim to provide a balanced issues raised in the appropriate places in our to stakeholders using the report. account of our performance on the socio- reporting. this report focuses on the issues economic, ethical and environmental issues material at group level. Scope and data which are the most relevant to belgacom at the data included in this report cover group level. these issues have been identified Responsiveness belgacom group’s activities in belgium. the through research, benchmarking with other We use the knowledge gained from stakeholder international carrier activities of the belgacom telecom operators, stakeholder engagement, engagements to explore possible actions and group abroad, provided by its subsidiary media tracking and other methods. See “How solutions. Where these are possible we make iCS (international Carrier Services) and the we manage CSR” section of this report for an an appropriate commitment and publish it in international operations of telindus are not explanation of the process we used to assess this report. on occasion we will not agree with included in the scope of this report. the issues that are material to the belgacom a criticism or not be able to respond with a an independent assurance review was group. solution. in this situation we explain our view conducted on the policies and measures clearly and publicly. Further information on our provided in this report by ernst&Young Reporting guidelines business and financial performance, corporate bedrijfsrevisoren bCVba/Reviseurs We took the global Reporting initiative governance, regulatory issues and directors’ d’entreprises SCCRL (“ernst&Young”). as it is (gRi:g3) sustainability guidelines into remuneration is provided in our annual Report our 2nd year of reporting and our procedures account when preparing this report. an index for the year ended 31st December 2007. this to collect data are not yet established, no of conformance with the g3 guidelines is report is also available on www.belgacom.com. assurance is being given on quantitative data attached at the end of this report. all references to “belgacom group”, “the group” in the report. Consequently, ernst&Young’s and “we” in this report mean belgacom group assurance statement does not provide Completeness and its subsidiaries. assurance on those elements. We identify our stakeholders by assessing who Stakeholder Inclusiveness: the selection of is impacted significantly by the company and content of report draws upon the outcomes Disclaimer who could have an impact on the company. of stakeholder engagement processes and if this report has been drawn up for the Stakeholder engagement helps us understand stakeholder engagement processes that inform purpose of informing our stakeholders on the issues of concern to our stakeholders. decisions about the report are consistent with the belgacom group’s performance and in addition we use press reviews, internal the scope and boundary of the report. commitment with respect to CSR. nothing in documentation and the results of different this document is intended to extend or amend Sustainability Context: the report presents employee surveys in order to identify key the belgacom group’s existing obligations the organization’s performance in the wider Corporate Social Responsibility issues. We also to its customers, shareholders, employees, context of sustainability. this context is defined use media scans and consumer surveys to track suppliers, shareholders and investors or other by a benchmark analysis and a press review. public opinion and topical issues concerning stakeholders. all references to external Web the belgacom group. Balance: the report reflects positive and links in this report are provided purely for negative aspects of the organization’s information purposes. performance to enable a reasoned assessment Materiality the belgacom group is not responsible for the there is no natural basis for comparing of overall performance. the report discloses reasonableness, accuracy or completeness of the significance of one issue with another. both favorable and unfavorable results and the information available on these Web sites, nevertheless it is important to be able to topics. nor does their mention in this report constitute prioritise effort and resources. to make these Comparability: the reported information tacit approval or endorsement by the belgacom judgements we assess the extensive list of is presented in a manner that enables group of such sites or the products or the issues for significance in three areas: stakeholders to analyze changes in the services offered therein. the belgacom group > the level of concern and interest among organization’s performance over time, and accepts no liability with regard to any such stakeholders most affected by our operations could support analysis relative to other information that has been or will be provided > our impact on society and the environment organizations. the report and the information by external parties via their Web sites. > Financial and reputational impact on our contained within it can be compared on a year- business to-year basis. We welcome your feedback on our CSR the assessment process is not an exact science Timeliness: reporting occurs on a regular engagement and your views on this and requires judgement. our assessment on schedule and information is available in time report. Please contact: 31 December 2007 indicated that the most for stakeholders to make informed decisions. Mrs Concetta Fagard material issues for the belgacom group are: M. Jean-Luc Van Kerckhoven clear pricing; content standards; energy use; E-mail: [email protected] handset recycling; transformation of belgacom

about CSR RepoRting - 25 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Independent Assurance Report

To the management of BELGACOM SA

Engagement and responsibilities We have been engaged by BELGACOM SA de droit public (“BELGACOM”) to perform a limited assurance engagement on BELGACOM’s Corporate Social Responsibility Report 2007 (“the Report”). The scope of the Report, including any inherent limitations that could affect the reliability of the information contained therein, is set out in the section “scope and data” of the Report. The Report covers BELGACOM’s activities in Belgium (including Belgacom SA de droit public, Belgacom Mobile SA, Telindus SA, Belgacom Skynet SA and Skynet I-Motion Activities SA and Connectimmo SA). The Report is the responsibility of the management of BELGACOM. Our responsibility as independent auditor is to provide limited assurance on whether the topics discussed in the Report address the key Corporate Social Responsibility issues affecting BELGACOM, whether the reporting procedures and principles used are appropriate and consistently applied and whether the description of the policy and management systems provides a reasonable reflection of the efforts made by BELGACOM. A limited assurance engagement provides less assurance than an audit. Limitations in our engagement Our engagement did not include verification or review of any of the quantitative information contained in the Report. In the section “scope and data” of the Report, an explanation for the reasons of this limitation is provided. Criteria and reporting principles There are currently no generally accepted criteria for reporting sustainability performance in Belgium. The Report, which is the responsibility of BELGACOM’s management, has been prepared in accordance with the internal reporting criteria detailed in the section “Reporting guidelines” of the Report, which are primarily derived from the Sustainability Reporting Guidelines of the Global Reporting Initiative (“GRI”). Scope of work performed We conducted our procedures in accordance with the International Standard for Assurance Engagements 3000 (“ISAE 3000”): “Assurance Engagements other than Audits or Reviews of Historical Financial Information” and the Code of Ethics, issued by the International Federation of Accountants (“IFAC”).

26 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb We have performed the procedures deemed necessary to provide a reasonable basis for our conclusions. Our principal procedures can be summarized as follows: > Obtain an understanding of the key Corporate Social Responsibility (“CSR”) expectations regarding BELGACOM by reviewing press information and internal documentation ; > Assessing the acceptability of the reporting principles used by BELGACOM > Evaluating the procedures at BELGACOM Corporate level and at operational level to identify CSR issues relevant for internal and external stakeholders; > Evaluating the existing procedures to define report content and to ensure whether the key Corporate Social Responsibility issues affecting BELGACOM are being addressed in the Report; > Conducting interviews with responsible company officers of the Group and its subsidiaries, mainly for the purpose of assessing whether the descriptive data related to policy and management of BELGACOM, provides a reasonable reflection of the efforts made by BELGACOM; > Reviewing internal documents related to policy and management; > Assessing the materiality and comprehensiveness of the topics discussed in the Report and the clarity of presentation; > Evaluating the overall view of the Report by testing its contents against the guidelines issued by the Global Reporting Initiative. Conclusions Based on the procedures performed, nothing came to our attention that causes us to believe that: > The topics discussed in the Report do not address the key Corporate Social Responsibility issues affecting BELGACOM SA de droit public; > The reporting procedures and principles used, are not appropriate and consistently applied; > The description of the policy and management systems of BELGACOM does not provide a reasonable reflection of the efforts made by BELGACOM.

Brussels, 25 March 2008 Ernst & Young Bedrijfsrevisoren SCCRL Represented by Harry Everaerts Partner

Independent AssurAnce report - 27 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Achievements we said we have we will (by end 2008) Established a Group CSR Department We would set up a Group CSR Department Further implement a CSR internal communication plan; and created a CSR Operating Committee (CSR Opco) We would develop a Group CSR Strategy Developed a Group CSR Strategy Identify stakeholders and build a stakeholder engagement strategy We would develop and implement a CSR internal Started to communicate more proactively about our CSR Engagement Build CSR management systems and structures How we manage CSR communication plan We would further identify stakeholders and build a stakeholder engagement strategy (by end 2008) We would build CSR management systems and structures (by end 2008) We would further engage with stakeholders to study and Launched several projects in the domain of telemedecine Continue to investigate opportunities in e-health domain and define a Group strategy Socio-economic impact demonstrate socio economic impact of ICT of telecommunications Facilitated sustainable growth through dematerialisation and remote monitoring Launched 3 new initiatives to ensure better price understanding: We would launch at least two new initiatives to ensure Develop guidelines and processes to gradually implement a responsible marketing culture Vodafone Passport; Happy Time and Happy Time International, Pay&Go clearer and easier to understand costs for customers covering branding, new product launch, customer protection… International We would join the Safer Internet Framework for safer Signed the Safer Internet Framework Make our customer communications on price and products fully transparent mobile use for younger teenagers and children Our customers Continue to promote social inclusion by facilitating access to technology through products, prices, programs and sponsoring Increase our efforts to protect children against any type of undesired content on the internet and on television Enhance our mobile customers' protection against undesirable SMS and MMS service-provider practices Develop a CSR checklist to be used in the P&S product launch process to be sure any CSR concern is identified. Continue to inform our customers about the green impact of many telecom products. We would extend broadband coverage to 99.4% Extended our broadband coverage to 99.7% of the Belgian Households Continue the roll-out of the VDSL platform in order to reach a target of national coverage of 65% of Belgian households How we manage Participated in 20 health sessions with local and national government network rollout We would organise at least one telecom day per Region bodies, including the Belgacom Telecom Days, and 29 sessions with people Enhance our communication to our stakeholders living near base stations We would roll out energy efficient cooling methods at large Rolled out free air cooling in 55 locations Continue the deployment of energy efficient cooling methods scale Purchased 25% of Belgacom SA electricity from green sources since We would purchase 25% of energy needs from green sources Start deployment of photovoltaic panels, and continue assessing opportunities to use green energy sources in our operations September 2007 (certified hydroelectricty from Alpenergie) We would investigate the possibility of a ISO 14000 Reviewed our priorities and have not pursued the idea of ISO 14000 Perform a CO audit at Group level certification at Group level certification 2

We would establish a study to monitor CO2 emissions at Identified potential suppliers for the CO2 audit and will perform the audit Analyze options to define, within the ETNO framework, a standard KPI on energy efficiency Group level in 2008 and use it to benchmark our energy efficiency vs other European telecom operators.

Managed to keep our CO2-eq emissions constant vs 2006 Continue to implement quick win energy saving initiatives with payback lower than 4 years. Used less fuel (-4% vs 2006) Continue our “Building Optimization Program” to seal unused space and thus save on utilities & cleaning Environmental impact Produced less waste (-18% vs 2006) and used less paper (-19% vs 2006) Deploy a new dispatch application in order to optimize travel routes of our technicians Organize on-site checks of tyre pressure, take corrective actions and raise driver awareness of our operations about the influence of correct tyre pressure on fuel consumption and corresponding emissions Promote eco-driving, by enabling 30 employees to follow a 1-year training. We will use results to assess the fuel and emissions savings related with fuel-efficient driving techniques. Further assess options to increase the flexibility offered by our mobility plan Start a collection program for PMD (plastic, metal and drink cartons) in Belgacom headquarters Launch a study to assess ways to lower packaging waste, by replacing plastic by security tape for-example. Initiate a foil collection & recycling program, mainly in our distribution centres Further push penetration of e-bill in 2008 via dedicated marketing actions. Initiate at least 2 soil remediation projects. Enable our employees to benefit from discount and financing on solar panels We would continue efforts to promote and encourage Organised a seminar with Business & Society to further raise awareness of Finalise the CSR training of all Group procurement buyers. ethical purchasing and sourcing within the Group Belgacom SA buyers on ethical purchasing Started to source fair trade coffee Inform suppliers on Belgacom CSR policy during supplier's day and forums. We would develop a group-wide Code of ethical Started to develop a Group-wide code of ethical procurement. Source more fair trade products Supply chain procurement. Continue efforts to develop e-flow and thereby limit use of paper/fax Finalize Group-wide procurement policy, including ethical & CSR aspects Integrate Vendor's compliance towards CSR as an explicit evaluation during sourcing & selection projects. Integrate a CSR clause in all new contracts. We would put in place a new customer segmented Started building our new customer segmented organisation Finalize Staff & support integration organisation We would focus on change management and cultural Organised workshops with business leaders to manage Cultural change Define Group Corporate values to build coherence between the strategy, the brand and the employee. change to deliver convergence strategy We would develop a change management and cultural change strategy to facilitate the transformation process of Continue the standardization of the HR support for all affiliates Our employees the group We would develop a strategy to increase visibility and Increased visibility and process transparency of vacancies across the Continue to promote a safe and healthy work environment process transparency of vacancies across the Group Group We would develop a new pillar in training and development - House of development 3 on innovation with Vlerick and Offered room for self-development and a balanced life Solvay Business School We would launch a diversity action plan Launched a Diversity action plan.

We would review our Community Investment policy by end Supported social projects through our employees and funding Study the opportunity to create a Belgacom Group Foundation, based on existing success of Proximus Foundation & Helping Hand of 2008 Distributed refurbished PC’s and given furniture to schools Start a study to identify key needs to address, this helps us to review our social investment policy at Group level. Community involvement Trained about 2,200 people with ICT skills Partnered with Children protection organizations Supported disabled athletes Helped research in medical and environmental fields

28 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Commitments we said we have we will (by end 2008) Established a Group CSR Department We would set up a Group CSR Department Further implement a CSR internal communication plan; and created a CSR Operating Committee (CSR Opco) We would develop a Group CSR Strategy Developed a Group CSR Strategy Identify stakeholders and build a stakeholder engagement strategy We would develop and implement a CSR internal Started to communicate more proactively about our CSR Engagement Build CSR management systems and structures How we manage CSR communication plan We would further identify stakeholders and build a stakeholder engagement strategy (by end 2008) We would build CSR management systems and structures (by end 2008) We would further engage with stakeholders to study and Launched several projects in the domain of telemedecine Continue to investigate opportunities in e-health domain and define a Group strategy Socio-economic impact demonstrate socio economic impact of ICT of telecommunications Facilitated sustainable growth through dematerialisation and remote monitoring Launched 3 new initiatives to ensure better price understanding: We would launch at least two new initiatives to ensure Develop guidelines and processes to gradually implement a responsible marketing culture Vodafone Passport; Happy Time and Happy Time International, Pay&Go clearer and easier to understand costs for customers covering branding, new product launch, customer protection… International We would join the Safer Internet Framework for safer Signed the Safer Internet Framework Make our customer communications on price and products fully transparent mobile use for younger teenagers and children Our customers Continue to promote social inclusion by facilitating access to technology through products, prices, programs and sponsoring Increase our efforts to protect children against any type of undesired content on the internet and on television Enhance our mobile customers' protection against undesirable SMS and MMS service-provider practices Develop a CSR checklist to be used in the P&S product launch process to be sure any CSR concern is identified. Continue to inform our customers about the green impact of many telecom products. We would extend broadband coverage to 99.4% Extended our broadband coverage to 99.7% of the Belgian Households Continue the roll-out of the VDSL platform in order to reach a target of national coverage of 65% of Belgian households How we manage Participated in 20 health sessions with local and national government network rollout We would organise at least one telecom day per Region bodies, including the Belgacom Telecom Days, and 29 sessions with people Enhance our communication to our stakeholders living near base stations We would roll out energy efficient cooling methods at large Rolled out free air cooling in 55 locations Continue the deployment of energy efficient cooling methods scale Purchased 25% of Belgacom SA electricity from green sources since We would purchase 25% of energy needs from green sources Start deployment of photovoltaic panels, and continue assessing opportunities to use green energy sources in our operations September 2007 (certified hydroelectricty from Alpenergie) We would investigate the possibility of a ISO 14000 Reviewed our priorities and have not pursued the idea of ISO 14000 Perform a CO audit at Group level certification at Group level certification 2

ACHIEVEMENTS - COMMITMENTS - 29 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > Global Reporting Initiative guidelines

Indicator Compliance Pag. Nr. Indicator Compliance Pag. Nr. 1. Strategy and Analysis Aspect: market presence 1.1 Core Yes P1 EC6 Core Yes 1.2 Core Yes P1-2-3 EC7 Core No 2. Organizational profile Aspect: indirect economic impacts Front EC8 Core Yes P10-11 2.1 Core Yes Cover Environmental Performance Indicators 2.2 Core Yes P6-9 Aspect: materials 2.3 Core Yes P25 EN1 Core Yes 2.4 Core Yes P32 EN2 Core Yes 2.5 Core Yes P25 Aspect: energy 2.6 Core Yes P32 EN3 Core Yes P14 2.7 Core Yes P25 Partial (no source EN4 Core P14 2.8 Core Yes P25 specification) 2.9 Core Yes P2-3 EN5 Additional Partial P14 2.10 Core Yes P9 EN6 Additional Yes P14 3. Report parameters EN7 Additional Yes P14-15 Report profile Aspect: water 3.1 Core Yes P25 Partial (no source EN8 Core 3.2 Core Yes P25 indication) 3.3 Core Yes P1 EN9 Additional No 3.4 Core Yes P25 EN10 Additional No Report scope and boundary Aspect: biodiversity 3.5 Core Yes P25 EN11 Core No 3.6 Core Yes P25 EN12 Core No 3.7 Core Yes P25 EN13 Additional No 3.8 Core Yes P25 EN14 Additional No 3.9 Core No EN15 Additional No 3.10 Core No P25 Aspect: emissions, effluents, and waste 3.11 Core No P25 EN16 Core Yes P14 GRI content index EN17 Core Yes P14 3.12 Core Yes P30-31 EN18 Additional Yes P14 Assurance EN19 Core Yes 3.13 Core Yes P25 EN20 Core No 4. Governance, commitments and Engagement EN21 Core No Governance EN22 Core Partial P14-15-16 4.1 Core Yes P2 EN23 Core No P14 4.2 Core Yes P2 EN24 Additional No 4.3 Core Yes P2 EN25 Additional No 4.4 Core Yes P25 Aspect: products and services 4.5 Core No P2-3 EN26 Core Yes 4.6 Core Yes P2 EN27 Core No 4.7 Core No P2 Aspect: compliance 4.8 Core No P2 EN28 Core No 4.9 Core Yes P2 Aspect: transport 4.10 Core No P2 EN29 Additional No P14 Commitments to external initiatives Aspect: overall 4.11 Core No P25 EN30 Additional No 4.12 Core No P25 Social Performance Indicators 4.13 Core Yes P3 Labor Practices and Decent Work Performance Indicators Stakeholder engagement Aspect: employment 4.14 Core Yes P3 LA1 Core Partial (not categorized) 4.15 Core Yes P25 LA2 Core No 4.16. Core Yes P3 LA3 Additional No 4.17 Core Yes Aspect: labor/management relations Economic Performance Indicators LA4 Core No Aspect: economic performance LA5 Core No EC1 Core Yes Aspect: occupational health and safety EC2 Core Yes LA6 Additional No Partial (occupational EC3 Core No LA7 Core P19 accidents) Partial (indirect assistance EC4 Core of government through tax LA8 Core No benefits)

30 - CORPORATE SOCIAL RESPONSIBILITY 2007 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Indicator Compliance Pag. Nr. TELECOMMUNICATIONS SECTOR SPECIFIC GUIDELINES LA9 Additional No Indicator Gerapporteerd Pag. Nr. Aspect: training and education Category: Internal Operations LA10 Core Partial (not categorized) P20 Investment LA11 Additional Yes P20 IO1 Telecom specific No LA12 Additional No IO2 Telecom specific No Aspect: diversity and equal opportunity Health and Safety LA13 Core Partial (gender) Partial (fire safety, IO3 Telecom specific P11 LA14 Core No certifications) Human Rights IO4 Telecom specific Yes P12 Aspect: investment and procurement practices IO5 Telecom specific Yes P12 HR1 Core No IO6 Telecom specific Yes P12 HR2 Core Yes Infrastructure HR3 Additional No P17 IO7 Telecom specific Yes P11 Aspect: non-discrimination IO8 Telecom specific Partial (shared sites) P11 HR4 Core No Category: Providing Access Aspect: freedom of association and collective bargaining Access to Telecommunication Products and Services: HR5 Core No P18 Bridging the Digital Divide1 Aspect: child labor PA1 Telecom specific Yes P10 Partial (code of ethical P4, 7, HR6 Core P17 PA2 Telecom specific Yes purchasing) 22,-23 Aspect: forced and compulsory labor PA 3 Telecom specific No HR7 Core No P17 PA 4 Telecom specific Yes Aspect: security practices PA 5 Telecom specific Partial HR8 Additional No PA 6 Telecom specific Yes Aspect: indigenous rights Access to Content HR9 Additional No PA 7 Telecom specific Yes P7 Society Performance Indicators Customer Relations Aspect: community PA 8 Telecom specific Partial P11-12 SO1 Core Yes P4, 7, 22 PA 9 Telecom specific No Aspect: corruption PA 10 Telecom specific Yes P6 SO2 Core No PA 11 Telecom specific Yes P6 SO3 Core No Category: Technology Applications SO4 Core No Resource Efficiency Aspect: public policy TA 1 Telecom specific No SO5 Core No TA 2 Telecom specific No P5 SO6 Additional No TA 3 Telecom specific No Aspect: anti-competitive behavior TA 4 Telecom specific No SO7 Additional Yes TA 5 Telecom specific No Aspect: compliance SO8 Additional No Product Responsibility Performance Indicators Aspect: customer health and safety PR1 Core No PR2 Additional No Aspect: product and service labeling PR3 Core Partial (base stations, handsets) P10-11 PR4 Additional No PR5 Additional No P8-9 Aspect: marketing communications PR6 Core Yes P9 PR7 Additional No P9 Aspect: customer privacy PR8 Additional No Aspect: compliance PR9 Core No

GLOBAL REPORTING INITIATIVE GUIDELINES - - 31 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb > General information

Corporate name and legal form Objects of the Company The autonomous public-sector company Belgacom As described in the Article 3 of the Articles of is a Société anonyme de droit public/Naamloze Association, the Company’s objects are: vennootschap van publiek recht (limited liability 1. to develop services within the field of company under public law) as defined by the Law telecommunications in Belgium or elsewhere; of 21 March 1991 on the reform of certain public- 2. to take all actions aimed at promoting, directly or sector commercial undertakings and organized indirectly, its activities or ensuring optimal use of under the laws of Belgium. its infrastructure; 3. to acquire participating interests in bodies, The Company is subject to the statutory and companies or associations – whether regulatory provisions of commercial law applicable existing or to be created, Belgian, foreign or to companies limited by shares in all matters not international, and public or private sector – that expressly determined by (or by virtue of) the Law of may contribute, directly or indirectly, to the 21 March 1991 or specific legislation of any kind. achievement of its corporate objects; Registered Office 4. to provide radio and television broadcasting Boulevard du Roi Albert II/Koning Albert II-laan, 27 services. 1030 Brussels Belgium Disclaimer VAT BE 0202.239.951 This communication contains forward-looking Brussels Register of Legal Entities statements, including statements about the Brussels Trade Registry 587.163 Company’s beliefs and expectations. These Consultation of the issuer’s documents statements are based on the Company’ s current The public documents concerning the issuer can be plans, estimates and projections, as well as its consulted at the registered office. expectations of external conditions and events. Date of constitution Forward-looking statements involve inherent risks The company was established as an autonomous and uncertainties and speak only as of the date public sector company, governed by the Law of they are made. The Company undertakes no duty 19 July 1930 setting up the Belgian National to and will not necessarily update any of them in Telephone and Telegraph Company, the RTT (Régie light of new information or future events, except des Téléphones et Télégraphes/Regie van telegraaf to the extent required by Belgian law. The Company en -telefoon). The transformation of Belgacom into cautions investors that a number of important a SA of public law was implemented by the Royal factors could cause actual results or outcomes Decree of 16 December 1994, which was published to differ materially from those expressed in any in the Belgian Official Gazette on 22 December forward-looking statements. 1994, and went into effect on the same day. Editor-in-chief: Concetta Fagard Bd du Roi Albert II/Koning Albert II-laan, 27 B - 1030 Brussels Content: Concetta Fagard Vice President Corporate Social Responsibility Jean-Luc Van Kerckhoven Corporate Social Responsibility Manager Contact : [email protected] Conception: Frédéric Herzeele Corporate Communication Manager Franck Vanbelle Corporate Content & Publication Manager Design and prepress: Chris Communications - www.chriscom.be Printing: Snel Pictures: Jean-Michel Byl and Belgacom

Printed on certified paper.

32 WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb Belgacom Group I 2007 >

(Mio EUR) (MioEUR)

1000 l)

(total employees) (in kEUR) (Fg) (‘000)

23%buildings 24%vehicles 53%networks

(‘000) (ton) (ton)

(ton) (in kEUR)

Diesel andoilconsumption

5,000 3 3 2

0 259,463 05 18,180 14,403 17,651 332.00 44,240 82,328 40,847 30.6% 14.0% 19.6% 40.1% 10.7% 3,569 4,311 6,100 83.53 2,237 4,716 1,000 57.48 5,238 2006 9.97 973 06 3 3 1

WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb ENABLE I COMMIT I BUILD

PHOTOGRAPHER: véronique janssens - CUSTOMER EXPERIENCE MANAGER WorldReginfo - 1eecfb1d-0076-45e5-a171-cbd1a4b7a2cb