Proximus PLC (PROX) Earnings Call Transcript & Summary

Hello, and welcome to Proximus Capital Markets Day. My name is Anika, and I will be your coordinator for today's event. [Operator Instructions] I will now hand you over to your host, Nancy Goossens, Investor Relations, to begin today's event. Thank you.

Thank you. Welcome all to our Capital Markets Day, be it in a different format than we had planned for. With increasing COVID concerns and the measures being implemented and especially in the best interest of everyone's health and safety, we have decided to keep the Capital Markets Day, yet to turn it into a webcast-only event. So now you can all watch and listen in all safety, either from home or your office. So the event for this afternoon consists of 2 parts: We will start with 3 presentations, followed by a short break, after which we will take your questions in the Q&A session. We start on -- start the Q&A at 2:30 CET. So the first 3 presentations for you: We start with the CEO, Guillaume, who will present the strategy; then the CTO, Geert, will tell you all about the Gigabit Network plans; and then CFO, Sandrine, will take you through the financial outlook and the strategy. Let's start with the first one. Guillaume, you can go ahead.

Thank you, Nancy. Good afternoon to you all, and good morning to those listening from the U.S. or Canada. Welcome you all to our Capital Markets Day. First of all, I hope that you, your families, your friends are in good health. The COVID-19 pandemic has been shaking us all to our core and is a very humbling case for unpredictability for us all. But after careful consideration, I decided with my management team to maintain this Capital Markets Day despite the exceptional circumstances, be it unfortunately not with a live audience in our headquarters in Brussels. This global sanitary crisis impacts us as individuals and impacts the way we work and live. It's also a defining moment for our sector. Our industry demonstrated, more than ever, its customer relevance and the central role it plays in today's world for consumers, companies, governments and more generally, the entire society. Proximus acted swiftly ahead of official guidelines and ahead of peers to protect its employee, to support customers, enduring strict social distancing and confinement, and to enable businesses and public authorities to continue to operate. I strongly believe that we owe it to all our stakeholders to not only support them through the crisis, but also to act now to contribute to better future for all. Moving forward with our transformation and strategic investments is of the essence. It will make us more resilient to face the next unpredictable events in this complex world. So here we are to talk about the future of Proximus, to present our Inspire2022 plan, in an adapted setting as you notice, but with a reinforced conviction about our ability to create and capture value to the benefit of all our stakeholders. Let's first briefly come back on the current crisis. As I said, the crisis is a defining moment for Proximus. Our customers, our employees, our business partners are redefining what is critical for them and every action, every communication is critical. And I am convinced that we did the right things in the last weeks to remind to every individual and every company that Proximus is essential to them. So we took very early, very strong measures to first protect our employees, ensure business continuity with focus on critical sectors. We immediately put in place a Crisis Nerve Center at Exco level to monitor all aspects of the crisis. But as importantly, we managed to communicate the right way, both internally and externally. We took many actions to be true citizens, encouraging people to work from home, limiting customer contacts, postponing meetings. Ahead of government guidelines, we put more than 10,000 employees in home working, restricted all travels, closed our shops before being asked to do so. And in parallel, we took strong actions towards our customers so that they stay connected with their loved ones and also entertained from home, offering free mobile to fix and fix to fix calls, unlimited fixed internet volumes, free extra mobile data and also free access to TV content. But the most important, the most critical aspect of what we are doing during the crisis is our ability to maintain high-quality networks despite exceptional conditions. And this is being noticed, especially by our customers. In this crisis moment, where all our points of reference are lost, there is one thing that I'm fully convinced will remain for the telecommunications industry. Network superiority is key and will remain a key enabler of differentiation in the coming years. And the Proximus networks have been remarkably resilient. We constantly monitor the situation, and we are in daily contact with the regulator to ensure stability and answer to the capacity needs. Last but not least, we are also in sync with the government and the Belgian corona crisis team in order to use our location data and as such, to best monitor the effects of the lockdown measures. I am truly convinced that Proximus can emerge stronger from the crisis, and I am putting 100% of our management focus, first, to contain the effect of the crisis, but also to make sure that Proximus will be in a better position when we are back to more stable and normal business conditions. In that context, our ability to absorb this volume growth and to be essential to our customers will be a key foundation to strengthen our customer relevance. And so far, I trust we are taking an edge compared to our competitors. Next slide. Let's now move to our strategic plan for the coming years. And we first take -- and if we first take a step back and look at how Proximus performed in previous years, we can conclude that we consistently delivered on our guidance. We grew our customer base in Internet, TV and mobile postpaid with convergent offers, and we kept a very strong position in the Enterprise market. Proximus offered an attractive and stable shareholder return. And also very important in the current context and for our future investments, our balance sheet is one of the strongest in the sector. In 2019, we started a transformation journey, which included the Fit for Purpose plan. And after a long negotiation period, the plan switched into execution phase, the first phase being the voluntary departure plan, which resulted in 1,347 FTEs opting for a voluntary leave. We now want to step up and accelerate our transformation. We need to adapt to the evolutions in our sector, and I want to stress 4 macro trends in particular: first, the new investment cycle for next-generation networks with a combination of Fiber, 5G and Edge computing that unlocks new growth and efficiency opportunities; second, the new digital platform economy, fueled by data and the growing role to play for trusted local data-rich players, among which telecom operators have a key role to play; third, the rise of new forms of competition and the increasing pressure in the Enterprise market linked to the software-ization of the network access; and last, the central role in that societal responsibility should take in everything we do. It is true in the battle against digital exclusion and discrimination, in the war against the current global pandemic, but also in the seemingly less immediate threat of climate change. In this fast-changing sector and particularly in those uncertain times, we aim to embrace those trends to embrace change and to lead and not to follow. It's not an evolution of our current strategy, and if we will build on strong foundation, this plan is really a step change in the vision, in the way we see assets, in the way we look at our capabilities and the way we will execute. I have decided to call our strategic plan #inspire2022 to convey our ambition and to inject new energy into the Proximus organization. The 2022 date is important as it is a date we have set to return to profitable growth. As you will see, we sometimes refer to a longer-term horizon of 2025, 2026 when we talk about network investments, of a long-term simplification and transformation like the complete revamp of our IT. So #inspire2022 is our new plan and a new ambition that we stay true to a great sense of purpose, opening up a world of digital opportunities. So people live better and work smarter. And the experience of the pandemic reinforces our belief in this inspiring mission. With this Inspire2022 plan, we raised the bar for Proximus transformation. To put it simply, I want to make Proximus a reference operator in Europe. And we will reach that ambition, thanks to 4 pillars: first, we will built the best Gigabit Network for Belgium through a strong acceleration of our Fiber and 5G rollout plans. In the context of Belgium, this network will be unmatched in term of capabilities, unavoidable on the long run and open to all. Second, we will operate like a digital-native company, becoming leaner, legacy-free and truly fit for the digital world. Third, our plan is a growth plan. Leveraging our customer bases and our technology leadership will grow our profitability through the development of partnerships and ecosystems and get back to profitable growth trends as from 2022. Last, a major pillar of this plan will be to act for sustainability and digital inclusion, and more importantly, to embed this ambition in everything we do. With the executive team, we are managing, and we'll continue to manage for impact. We focus our time and our energy on what makes the difference, and we are setting ourselves for execution excellence. And the last few weeks has been a very good test for that. And last but not least, we will put a renewed focus on capital allocation optimization to fund that journey. So our #inspire2022 plan is, first, an industrial plan, with our ambition to build the future-proof network for Belgium with 100% coverage in high-speed Internet in the long run and a complete review of our operating model. To build the best Gigabit Network for Belgium, we will deploy fiber faster and smarter and seek strategic partners that are willing to cooperate or co-invest with Proximus. Compared to our previous plan, we accelerated the deployment of fiber with more than 800,000 home passed by 2025. This way, we plan to reach 2.4 million of homes passed by 2025 instead of 2030, as was in the original Fiber plans. At cruise speed, in 2023, we will pass as many as 7% of total Belgium premises per year. At the same time, we will strengthen our mobile leadership by leading in 5G. Our network partnership with Orange is the right strategy. It allows us to differentiate, and at the same time, to reduce significantly the cost to deploy. A major shift in our strategy will also rely in our willingness to open our networks and to be wholesale friendly to maximize asset utilization and guarantee long-term return significantly above our cost of capital. Second, to operate like a digital native company, we will fundamentally transform our operating model with 2 important benefits. On one hand, we will drive structural efficiency gains; and on the other hand, construct the leading NPS, Net Promoter Score, meaning top 1 or top 2 in all segments. And by 2025, we will be legacy IT free operator while reducing the total cost of ownership of our IT by 40%. Our ambition is here to operate like a OTT player on our network, thus driving speeds and agility. We also put a lot of energy to achieve a comprehensive skills transformation that will make of Proximus a reference employer for Belgian digital talents. This plan, as I said, is also a growth plan. And despite a lot of headwinds coming from the Enterprise segments, we'll get back to profitable growth as soon as 2022, with accelerated growth trends as from 2023, fueled by our increased investment in Fiber and 5G. We'll grow profitably, not alone, but with and through partners and ecosystems. With the largest telco customer base in Belgium and strong digital assets, like our apps, Proximus has a pivotal role in local ecosystems to enable data-driven innovation in B2B, B2C and B2B2C. We'll carve new paths for growth and generate revenues from new sources to fuel our topline with partnerships asset-light business models. In Enterprise, by embracing the shift to virtualized and cloud services, we'll be the local partner of choice for global hyperscalers, and we are announcing today a strategic deal with Microsoft that allows us to deliver edge computing and enable the digital transformation of our existing customers, which is, as you know, thanks to our unique position in the Enterprise segment, a great opportunity to grow after an unavoidable transition period. Acting for sustainability and digital inclusion and embedding this in everything we do is also fully part of our growth plan. It's a new normal. Also in those abnormal times, we will commit to a net positive CO2 contribution and true circularity by 2030. We continue our efforts in inclusiveness as well as in digital education in Belgium with a focus on jobseekers. Geert will tell you more about it later, but let's zoom a little bit into the first pillar. This is about our ambition to build the best gigabit network for Belgium. I insist, for Belgium. Not only for Proximus, but to the benefit of the whole country. Over the next 10 years, Proximus will be the most and more importantly, the only future-proof network for Belgium. So what's new? First, it's a strong acceleration compared to existing plan. As I said, pulling forward CapEx to the period 2020, 2025, so we get to 2.4 million of home passed by end of this period. Compared to our initial ambition, it's an additional 800,000 home passed to be delivered over the next 6 years. Second is the creation of a unique infrastructure. It cannot be matched by coax cable technology on the long run. This means we have a significant wholesale opportunity to increase the utilization of this network. But I would like to stress that this network approach is brand new for Proximus. I might even say that it's a complete shift in the way we used to see networks. Because as I said, we are building an open network to be used by all partners, being existing operators or even new type of partners. For us, on the long run, this is a massive opportunity to develop wholesale revenues, but also to boost our B2B and B2C value proposition. Last but not least, with this ambition to reach 100% of coverage and with the combination of 5G, Fiber and Edge for a big part of the country, this network will be a catalyst for the Belgian economy and in particular -- particularly in innovation. Of course, this ambition implies that we can deploy in the most efficient way. Our objective is to be able to pass 400,000 homes per year with Fiber as from 2023. For that, we have put in place a new setup that Geert will describe in a minute, but more importantly, we'll be looking for some strategic partners. I insist, we are not talking for pure financial partners, but strategic partners, that will help us reduce the costs to roll out the network. When we talk about the gigabit networks, it, of course, also implies 5G. And to put it simply, we will lead in 5G in Belgium. And I am very happy and proud to announce that we are launching 5G today in more than 30 communes with a coverage of 5% of the population. It's the first concrete proof of our leadership strategy. Proximus will lead in networks. And thus, we'll be the first to launch commercially in Belgium to give our customers a first taste of that technology with devices, price plans and a coverage that is comparable to what we had at 4G launch. But it's just a start. In the coming months, we will use temporary licenses until auctioned spectrum to provide the best 5G gigabit experience. Furthermore, as I said before, our access network sharing agreement with Orange allows us to do -- to do so, sorry, that while -- to be -- sorry, our network sharing agreement with Orange allows us to do that while controlling the overall cost to roll out 5G. You should all be convinced by this, 5G is not just a better 4G. In combination with fiber and edge, this will fundamentally change the way we do business with the network-as-a-service model, offering end-to-end low latency network slices. It's not a small step. This is a creation of a new operating system for the economy, and Proximus will embrace this trend to create value. Talking about value creation. Our network investments are coming at an attractive yields. We have listed some important ones in the right column. As we have said before, our decision to go faster with fiber will depend on the commercial benefits we are seeing in the deployed fiber zones. And the benefits are definitely here. We see higher market shares in our fiber footprints. We see better revenues per customers and higher net promoter score. There is also a great opportunity for wholesale segment going forwards. At the same time, there is another opportunity, as we will, in time, considerably lower the cost to operate our network. And as the last important point where fiber is built, we will obviously avoid having to invest and maintain copper. Of course, networks require an investment phase. But once deployed and as the network fills up with wholesale clients and customers and as copper is being decommissioned, the yield increases. The indicative graph on the right shows the internal return rates that tops the WACC and this for all 3 regions of Belgium. Geert will come back to it in more detail on how we will deliver the best gigabit network for Belgium, while Sandrine will cover in a bit more detail the financial benefits in a few minutes. The second pillar of our plan is that we want to operate like a digital native company, and be truly fit for the digital world. Beyond the usual cost focus and the obvious customer experience improvements that all telecommunication operators pursue, we will fundamentally transform our operating model. We aim to grow our net promoter score in all customer segments and lead in net promoter score in all segments with our different brands by 2022. We go for net OpEx reduction plan of between minus 1% to minus 2% CAGR by 2022 and further efficiencies beyond 2023. And we will achieve this with 6 main transformation levers. The first lever is to revamp our customer journeys with an ambitious objective of close to 100% first time rights. To get there, we will first try to prevent and proactively solve as many issues as possible to avoid any source of complaints or useless interactions. For example, since end of 2019, we can proactively manage and optimize our subscribers home Wi-Fi. And through Wi-Fi improvement recommendations via our My Proximus app, we'll offer the possibility to manage Wi-Fi credentials, share them and control internet access on family devices. We target to have 80% of our customers claiming to have a perfect Wi-Fi coverage by end of 2022. Next, we continue to remodel customer journeys to make them digital-first. In 2019, we tackled the "I become a new customer journey" with great improvements of the customer effort score. This allows us to be quite confident to maintain the same level of commercial permits while strongly reducing the number of physical shops. We already reduced from 231 exclusive shops end of 2017 to 176 as of end 2019. This number will continue to go down to 134 by end of 2021. Finally, for complex questions that cannot easily be solved digitally, we make sure that we can address them first time right. To that end, we have piloted a new model of multi-skilled teams in call centers. All those initiatives are powered by data analytics and AI. We have rolled out the Qualtrics platform that helps us constantly monitor the 6 main customer journeys, allowing us to see very precisely and real-time our customers' experience and perceptions. We collect more than the 30,000 customer feedbacks per month, and proactively contact 6,000 customers about open issues. A second concrete example that we are leveraging advanced analytics to power our Next Best Action CRM systems. Already today, more than 60% of the Next Best Offer in channels are based on advanced analytics. The second lever to transform our operating model is to excel in digital interfaces. We want to be a frontrunner when it comes to digital experience on app and web, and to drive more self-service and satisfaction. This will obviously translate into increased digital adoption, higher satisfaction and lower cost, amongst other, by reduced call volumes. We'll commit to ambitious targets, given the Belgian context. 2 million monthly app users for our servicing app, 30% of e-share of sales, 70% of our bills fully digital and a decrease of commercial and technical goals by 50% by 2022. I also realize that our target for e-sales might look low for some of you coming from other countries, but I can assure you that in the context of Belgium, lagging a little bit behind in terms of digital adoption, those numbers are quite ambitious and will require a transformational approach in the way we operate and deal today with customer journeys. For app usage, as it's key to ensure customer relevance, we are raising the bar and for sure, we'll be leading in Europe with a disruptive strategy. The third transformation domain concerns our Enterprise segment. And as mentioned, sorry, we will transition in that segment in the next 4 years. We have been highly successful in that segment so far, but it requires now that we rethink fundamentally our operating model. We are still too complex and too reliant on physical channels and back end support. And to stay relevant for our customers, we will build and adapt our value proposition with a future-proof portfolio. This will also help us to operate more digitally and turn our Enterprise business into a smart operator, enabling the digital transformation of our customers with ultimately more added value at lower costs. The fourth transformation lever is automation and AI. There is a significant untapped potential from data, artificial intelligence and automation. We have built a very strong internal capabilities in this field. We have several hundreds of data workers, of which about 20 top machine learning experts. As we understood early that data foundations were of the essence, we are removing a lot of traditional hurdles for automation and machine learning. Our machine learning deployment is really at scale. Our initial estimate amounts to a minimum of EUR 100 million of gross savings, cost avoidance and extra revenue uplift on top of our existing Next Best Offer system that I have already mentioned. But we are constantly reassessing as we investigate some really cool and very valuable use cases. In the coming years, we will harvest opportunities in every domain across the value chain from network design to customer value management or energy consumption. It goes without saying that we also increase automation in frontline and in back end support through bots. We aim for a minimum of 200,000 hours of workload reduction per year, thanks to bots. I will not go into details on that slide for the sake of time, but this is just an example of how comprehensive our approach is. I really believe that we are very advanced compared to peers, that we are a clear leader in Belgium for machine learning, at scale, in production. The fifth really important transformation lever is the revamp and modernization of our IT, to make it adaptive and legacy-free. In nontechnical terms, it means that our B2C and B2B services will behave just like an OTT service on our networks. This does not happen with a magic wand. It requires a holistic end-to-end approach and takes time and also a change in organization. I will adapt the organization around IT as from tomorrow to ensure that we put all necessary management focus on that domain. Our objective is to reduce the total IT cost of ownership, OpEx and CapEx, by 40% by 2025, with material savings starting as from this year. We'll achieve that through a combination of: simplification on the business and process sides to increase straight-through processing; second, through architecture improvements with the ambition to go beyond 80% in the reuse of IT components; and thirdly, through agile ways of working at scale in development teams with more than 80% of the team working in agile; and last, through the broad adoption of cloud with more than 30% of all application on public cloud. This will also obviously contribute to our CapEx efficiency and make room for the next generation network investments in fiber and 5G. Last but not least in that domain, our people and their talents and skills are the key enabler to reach our transformation objectives. We try to hire a small amount of people, about 50 of them, in areas where we really need to build new capabilities. And then we invest in training and train-the-trainer systems to spread the new capabilities throughout the organization. And for example, avoid dependency from external coaches in agile or design thinking. More than 2,000 employees will be trained that way. We are also building a plan to reinforce mid- and long-term employability of our workforce with more than EUR 40 million per year of training budget in 2020 and 2021, and see how it can shift for more of our people to the growth areas. In short and at a time where we'll be reinvesting in future-proof network and digital, our employees will also benefit from the opportunities of this industrial plan. As previously mentioned, #inspire2022 is also a growth plan. And the third pillar is to bring this company back to profitable growth as from 2022. It means concretely to get back to growth at revenue level, but also at EBITDA level. And this, despite the transition period I mentioned in our Enterprise business. So what's our plan? We will first rely on our 2 main strategic assets in an increasingly horizontal digital economy approach that are: one, our customer bases with a billing relationship with close to half of the Belgian homes and more than 70% of Belgian Enterprises; and second, our digital reach, that is to say, for the consumer business or apps, Pickx, that we launched last year, and MyProximus, our self-servicing app. Our undisputed network leadership, thanks to our strong plan in fiber and 5G, will gradually fuel the growth of our customer, and we intend to pass the 2.1 million customer internet lines by 2022. The more volumes, more customers, but also higher value, thanks to our ability to tier up our customer base and maintain some pricing power. Customer relevance will be also achieved through the quality of the interfaces and the relevance of the content and functionalities that we will provide. In that domain, we will relentlessly have an innovative, sometimes disruptive approach, and we'll announce more news in that domain in the coming weeks and months. This will boost the usage of our applications massively, and by doing so, we have at least 3 million active monthly users generating valuable log data for Proximus. Let's start first with our entertainment platform. As you know, we completely revamped our entertainment platform in 2019 with the launch of Proximus Pickx. And after some interesting discussions with all of our partners, we now clearly have a content experience that compares with that of over-the-top players like Netflix or Apple TV, and we continuously improve on it. Talking about Netflix, we are one of the first to onboard their top international content on the Pickx platform. In March, we have brought this partnership to a next level with the launch of our All Stars package. All Stars bring together a wide range of theme channels, an extensive offering of films and series on demand, and in addition, Netflix, in a single subscription. We are also looking for new partnerships. And on that front, much more to be announced also in the coming weeks and months. We have the best content from local content players too, both in live and replay. Flemish customers are particularly keen on local content and we, therefore, will offer the Flemish Netflix of DPG media on our platform. We also have a great quality content produced in French-speaking Belgium. By attracting customers on the platform and understanding what they like, thanks to our data, we can recommend relevant local content and reinforce our local entertainment ecosystem. We address the issue of agony of choice between all the available content through qualitative curation and editorialization. We also offer, already today, innovative cloud computing for gaming services through Shadow, and we are looking at further extension of these services on our Pickx platform. To make sure we can bring this innovative and superior experience, we are convinced we need to partner with class-leading platforms. As a small company, we'll be able to leverage attractive platform innovations like voice control, for example. This is why the future Pickx devices will be built upon Android TV operator tier, which means that we fully control the experience as a key device. Last but not least, Proximus will be one of the first operator in Europe to offer Apple TV 4K as a main set-top-box for customers willing to do so. This will be available before summertime. And as from May, all our customers will be able to use Apple TV as a second set-top-box. Our platforms, applications and reach open up new sources of revenues, again thanks to local partnerships. The first nice example that has started to deliver significant revenues is the ePress initiatives. Thanks to the partnership with Rossel in Wallonia and DPG Media in Flanders, we offer our customers free access to the paying digital newspaper subscription. This is even more relevant in difficult times of disruption that we face today. We also play a central role in the creation of local data alliance between telcos and broadcasters. Our ambition here is to create a local technological stack for targeted advertising next to the one of Google and Facebook. We want to bring back local advertising to local platforms, and we do this sharing common capabilities in data, technology, platforms, communication and advertising inventory. In the context of a new EU framework around data, challenge around digital identity and mistrust in some international brands, Proximus is ideally positioned to get advantage of this new digital paradigm where we might see a new value trade-off in between hyperscalers and local players, starting with targeted TV advertising. And Proximus is a frontrunner in those domains that could generate significant value creation in the coming years for us. Next to Pickx, we have, of course, our MyProximus application. Today, this is a servicing app that manages your relationship with Proximus. But we know that some of the current use cases will become less and less relevant as time evolves, like checking your mobile data allowance, for example. And we want to transform MyProximus into an application that plays a central role in the digital daily life of our customers. We don't want to build a platform on the platform where we reference other apps. We want to create end-to-end journey experiences on specific use cases that require strong local ecosystems and trust for data privacy and compliance. Just to give one example, one of those journeys could be planning dinner with a group of people, the family or group of friends living together. So in one single and simple user journey, we bring together multiple partners, family life for agenda planning, local cooking shows on local broadcaster channel, Delhaize, Carrefour, our existing Proximus Pickx platform, a lot of them. Last but not least, the use of the services generates data that further help tune recommendations and service innovation. Let's now switch to our B2B segments. Headwinds in the Enterprise segments are seen on all telecommunication markets. And as you know, we are very strong in this market, but that also unfortunately means that we could have more to lose from disruption. But we don't want to hang to the legacy and wait for disruption to hit us. We take the lead, and we want to further embrace the shift to next-generation ICT. As explained on that slide, we want to be: firstly, proactive in migrating our customers to more modular next-gen solutions; and secondly, radically scale our digital go-to-market. Going forward, our growth in ICT will fuel our topline and progressively compensate the erosion on telco legacy revenues with a shift towards ICT. Of course, this shift from legacy telco to ICT combined to needed investments to transform our Enterprise model will weigh on the contribution of the Enterprise BU in the coming years. But with our new strategy, we want to move faster than previously planned so that we can go back to growth as soon as possible. Moving faster means higher relevance for our customers. As illustrated by the collaboration, we are setting up with Brussels Airport in IOT, end-to-end security solutions and 5G indoor coverage. Proximus will strike many more partnerships like this one, leveraging our unique position in Belgium in the B2B segment. This will be a key factor of success in the battle for customer relevance around the new capabilities offered by 5G networks and fiber networks. Moving faster also means we reinforce our attractiveness as partner of choice for the global tech players to drive value together for local enterprise customers. As proof point of this, it's my great pleasure to unveil that we have just signed a new strategic partnership with Microsoft. After being recognized as Microsoft Partner of the Year last year, we'll be the first operator in Europe to enable edge computing at any location of our network, thanks to the integration and the network capabilities of Microsoft Azure. Combining the high-speed, low-latency and secure fiber and 5G networks from Proximus with the Microsoft Edge compute technology to unlock and enable many innovative new use cases impossible until this day. This strategic partnership will also strengthen the collaboration and joint go-to-market approach between Microsoft and Proximus on key digital transformation domains in Enterprise, such as digital workplace, security and cloud. Our fourth pillar will be to act for sustainability and digital inclusion. On that front, we are demonstrating our commitment to people and to the planet daily at the moment. But we also keep our focus on our longer-term objectives. And acting for sustainability and digital inclusion is simply our duty to remain relevant in society, make our brands, but also protects us from reputational risk. Our first step is that we aim not only to remain CO2-neutral, but to become a net positive, truly circular enterprise by 2030. We want to embed sustainability in everything we do. And by 2025 already, we'll have cut direct carbon emissions by 30% and indirect emissions by 10%. But we move towards 100% green energy and fossil fuel phase out. Circularity will not just be about becoming zero waste in our offices, it's also about how we manage our networks and data centers. You might also have spotted a recent Don't Miss the Call initiative, where we encourage consumers to recycle their mobile phones. And we are well on track to reach our 100,000 phones collected for 2020. Another very important role for Proximus is to continue to support education and allow access to digital for all and to reduce the digital divide. We will do this by supporting digital education with notably our involvement in School19, and by making digital accessible to all, but also improving connectivity in rural and white zones. And this is particularly tangible in these times of confinement. Let's move to another thing that is really important to me. I will relentlessly focus on the quality of our execution. A key driver of success will be our capacity to further change the company culture, starting at management level, with more focus on impact and execution excellence. My direct report organization will be adapted to reflect our strategic choices and facilitate the strategy execution. We have decided to create a Network BU, which includes wholesale activities, a digital platform and experienced team, and we also created an architecture and data team and an IT solutions team, resulting in a flatter organization with more and better focus on networks, IT and digital. The way of working of the Executive Committee is changing with a more hands-on prioritization approach and a follow-up on strategy delivery. The dialogue with our unions is reestablished after the rough patch of the Fit for Purpose plan, and it is absolutely key for us to keep that constructive dialogue for the future. Compliance, ethics, diversity and the highest standards of corporate governance, are historical strength of our company, and we will naturally keep that very much alive. To summarize, our strong #inspire2022 plan will benefit for all of our stakeholders, including our shareholders. This plan is firstly an industrial plan with accelerated investment to take an undisputed leadership -- to take an undisputed leadership in next-generation networks, fiber, 5G and edge computing. Network superiority will be the key foundation of value creation for the Proximus brands, but also beyond. With our new approach, which is to build the gigabit network for Belgium, a network open to all will create new ways to monetize our investments on the medium term. Second, it's a transformational plan. Proximus takes true and concrete commitments like never before to deliver ambitious targets in both customer preference and efficiency gains. In 3 years from now, we want to lead in NPS in all segments. For the next 3 years, we commit to net decrease of indirect OpEx of between minus 1% and minus 2%, with clear and ambitious KPIs on digitalization of our operations. By 2025, we'll be a legacy free IT operator, delivering a decrease of 40% of our core IT spendings. Then this is also a growth plan that will bring Proximus back to profitable growth as from 2022, and despite a B2B segment that will be in a transition period. Leveraging our customer base, our brands and our ability to play a central role in customers and company's daily digital lives. Last, this plan is up to date, embracing the societal trends. Companies have a role to play to help this world be a better place. This is fully embedded in our plan and strategy. And in the current context, but more importantly, in a new society post corona, this will be even more important. This ambitious strategy requires significant financing needs over the next 6 years, so the period 2020-2025. Sandrine will come back to this in more details, but to fund this plan, we'll be using our very strong balance sheets. We will be putting a renewed focus on efficient capital reallocation, allowing for significant disposals as well as exploring down the road strategic partnerships to co-invest in fiber and support fiber coverage extension. Last, with increased finance needs over the next years, our funding strategy and our estimated trajectory of free cash flow, we announced today that we'll be rebasing dividend to a sustainable level, creating a path to return to dividend coverage. But before deep diving into our financial outlook and strategy with Sandrine, I will leave the floor to Geert, our CTO, who will go through our network strategy and ambition in more details.

Hi to you all. First of all, I hope you and your loved ones are in good health, and will suffer no severe consequences from the virus that is spreading amongst us. In the next part, I will give you some more insights in how we will build the best gigabit network for Belgium. We will build this best-in-class network based on fibers and 5G, bringing the highest download speeds, up to 10 gigabit per second for fibers, up to 3 gigabit for 5G, but also bringing the lowest latency by improving by more than 40% latency of today, also providing the best digital experience. And this not only for today's applications because both fibers and 5G, they are the future-proof technologies ready to support the experiences of the future. Our vision is to build a reference next-generation network for Belgium, and 2 elements are key here: one is partnerships; the other one is openness. Because as such, we want to maximize the return of our existing assets and the ones that we will build. Proximus will contribute to the network for Belgium through proprietary deployments, while we will be open for co-investments and cooperations. This network for Belgium will be a fully open access platform, welcoming all network users and of course, with Proximus as an important anchor. Partnerships are at the core of our network strategy, this to go faster and broader. We want to be the preferred choice for all the network service providers by offering the best network performance and capabilities on mobile and fixed, by ensuring as well the latest innovations like end-to-end slicing and edge computing, by also enabling differentiation for our wholesale partners and this through a seamless digital experience. In addition, we want to welcome as well new partners to explore the opportunities fibers and 5G will bring. Like Guillaume said, to realize the above, we will create a new network business unit. And this network business unit has the task to bring high-speed internet to the whole of Belgium and also to create the necessary ecosystem and the necessary stakeholders support. We'll build this gigabit network for Belgium, like a network-as-a-service for our customers and partners. We'll do this through what we call across domain service orchestrator that will translate the specifications of our customers into end-to-end slices on fibers and 5G. Our edge clouds and also Guillaume referred to it towards the MoU we signed with Microsoft, our edge cloud will extend the infrastructures to where the business really happens. We bring compute, storage and processing closer to our end users, and this will open up a wealth of new service opportunities. It also nicely complements our fiber and 5G connectivity layers, and it will enable an end-to-end architecture ready for ultra-low latency applications. I might invite you as well to have a look at the short video that illustrates how we've been industrializing our rollout capabilities, and how we are ready now to deliver acceleration at scale. This video is available on the website. Should you not have seen it, I invite you to have a look maybe during the break or after this webcast. It illustrates nicely what I will be covering in the next couple of slides. Fiber represents a massive investment for Proximus, and it's therefore critical to prioritize smartly where we deploy. And as you will see in our video, digital tools help us here. The first one is used at the beginning of the chain. It leverages all our data, enriched with external data, this to know the profile of each zone in Belgium, and it calculates the expected return on investments. Based on this input, the algorithm iterates to create addressable clusters with their value. Another essential input is, of course, the cost. How much will it cost to deploy in a specific zone? To know this, we use another tool that estimates the design of the network in a fully automated way. This takes into account the topology of the zone, the infrastructure of our existing networks, as such to calculate, for example, the meters of cable that we will need to deploy, the number of boxes, optical flexibility points, et cetera. Once we have decided on our optimal planning, we want to move as fast as possible. And for this, we leverage a multitude of deployment methods. Facade mounting, when feasible, is highly welcomed by communes and cities. As you can see in the picture there, we do our utmost to ensure the discreet positioning, which is hardly visible. Also facade mounting goes fast, and it's less disturbing for citizens. Our fiber machine is ready to scale. This year, and of course, depending on the duration of the current crisis, we'll achieve a pace of 1 home passed every 43 seconds and a customer activated every 2 minutes. And we want to go further. We will increase our deployment speed to more than 400,000 homes passed per year, which is around 7% of the whole country in only one year. And this will enable us to reach the point of 2.4 million homes passed by 2025. This is accelerating our initial plan by 5 years. So we stand here at 2.4 million homes in 2025, where originally, this was foreseen by 2030. On the build, we have many initiatives that are ongoing to further reduce our costs. To do so, we tune our processes constantly. We reviewed material reuse. We adapted the design of our network. We do termination when we have a sale. We look as well at introducing alternative deployment methodologies and ways to reduce the trenching costs and ways to reduce trenching cost to model. We also will leverage 5G Fixed Wireless Access technology to optimize the gigabit coverage. To ensure the necessary build capacity, we've signed recently an MOU with all our construction partners. We commit together to a joint effort to make an efficient fiber rollout to keep up with the volume pace and to bring a positive experience to the Belgian municipalities and to ensure the sourcing of trained technical manpower. In addition, we're also engaging with regions and cities and other stakeholders to further facilitate the fiber build in Belgium. We became better in filling the network. If we consider a zone that was built in mid-2017, and we take a picture 1 year later, we see that it was about filled 19%. For zones built 1 year later, it's not 18%, but about 28% filled. If we keep up with this expected ramp-up, we will have more than 1 million active lines by 2026. Our network is as well designed to outperform the TCO of all the other technologies with a 50% lower cost than the copper network. This lowest TCO is enabled by 2 major initiatives: first one, improved operations. Fibers allows us to do a fully remote provisioning. Proactive monitoring of each individual customers and accurate diagnostics up to the centimeters. Moreover, automation and orchestration of the network deployment allow to drastically lower the cost to operate the new network. Second initiative, copper retirements. We decommissioned the copper within 5 years after construction. Once we notify to the BIPT, we stop the selling of the copper products, and then as a last step, we triggered the forced migrations before the copper is fully phased out. On the next slide, you see the pictures, the coverage pictures that we aim to get by 2025. So in the upcoming years, we will complement fibers through a multi-technology approach. We'll deploy ultra vectoring up to 250 megabits to upgrade our copper network, and we will complement this with mobile, where and when it's needed. We also will leverage the cable regulatory framework in challenging profitability coppers areas. To enable this multi-gigabit revolution, we need to rely on a hyperscale backbone network. This deployment started 3 years ago and will be finalized in 2021. This new backbone allows to increase the capacity by a factor 10 to sustain the needs of the all the future gigabits applications. Proximus, by the way, was the very first in Europe to introduce Nokia's multi-terabit routers that we're using in the core of this hyperscale backbone. This new transport network allows to simplify and out phase, at the same time, all the more energy hungry legacy generations. And with virtualization and distributed functions, this offers a top resilient backbone with high-scale protection against attacks and unforeseen incidents, like the one we encounter right now. We're also proud to announce that we're launching 5G today as the first operators in Belgium. This commercial launch brings a first taste of 5G to our customers. We have an initial coverage of more than 30 Belgian commune cities across the country to start with. We're using the 2.1 gigahertz spectrum available today, prior to the new 3 gigahertz spectrum auction. With this offering, we bring up to 30% better experience than the current 4.5 gig. Now this launch is only a start. As soon as we will get the new temporary spectrum awarded by BIPT, we will be able to improve further the 5G experience and increase the speed while bringing other 5G enterprise use cases. And when the 5G spectrum will be finally auctioned, we will be able to demonstrate the 5G full experience with broad coverage and a broad range of 5G enterprise use cases, including the end-to-end slicing. In the last weeks, we also got to the positive news, we can move on with our mobile sharing partnership. Our RAN sharing partnership is a milestone with clear benefits in term of experience. We'll leap forward in mobile network density, thanks to sharing, with 20% more sites than in stand-alone and providing a broad, deep indoor coverage, higher speeds and longer battery duration. This mobile sharing partnership will allow to reduce our total cost-of-ownership on the mobile network by EUR 35 million to EUR 40 million per year savings, and is driving value. Each operators bears 40% less sites while enjoying a greatest grid. Common grids with higher radio quality, lower operating costs. Furthermore, network sharing also generates environmental benefits as it reduces the number of antenna sites, leading to less visual pollution and decreases the total energy consumption by approximately at 20%. We keep fully our network leadership position by differentiating on what matters. Spectrum is not shared. By example, we can independently decide on re-farming. Coverage and capacity differentiation remains through unilateral sites, unilateral band additions. New mobile technologies and features can be launched independently. The mobile core is not shared, allowing end-to-end service differentiation through slicing, edge and lower breakouts. We are building together the network for Belgium through partnerships and openness to maximize the return by obtaining low costs through mutualization of our assets, enabling more future business, delivering synergies between fixed mobile and securing a high utilization rate. We're building together the network for Belgium to go faster, broader and more efficiently. We'll build the best-in-class and only future-proof network, delivering fibers and 5G acceleration as our commitment, forming a new network business unit as a catalyst and becoming the open network of reference. And with this, I want to hand over to Sandrine for the financial outlook.

Thank you, Geert. Ladies and gentlemen, good afternoon and good morning to those following from America. Indeed, it's a very unimaginable timing for us to take you through our strategy and quite a short and unpredictable situation, and we really hope that you and your family are safe at home. However, we feel it's important to share with you how we see the shape of our financial trajectory, including this year, as well as the expected impact of our accelerated transformation and how we plan to fund this ambitious strategy. So let me take you through the key underlying components of our financial strategy, and I will further deep dive in each of them as we go further into the presentation. We aim to turn the company back to growth while we ensure a sustainable return for our shareholders. For 2020 and 2021, before taking into account the COVID-19 impact, we expected some limited financial pressure, largely coming from the enterprise part of our company. Indeed, as Geert explained, we will massively transform our enterprise business units. This in -- our portfolio, our go-to-market, our digitalization, and we aim to return to growth with a strong strategic shift from telco business to ICT. We will try to guide you for the current year in the very unpredictable new environment. We will increase our IT investments in the short-term with the ambition to strongly decrease the full IT cost afterwards. And as largely explained by Geert, we will accelerate our network investments. We will achieve our fiber coverage ambition earlier than initially planned, and we aim to build the best 5G network. We will look at what it means in terms of global CapEx. I will take you through our strong cost reductions forecast as well -- and through the expected profile of our domestic top line and EBITDA trajectory with a return to growth as of 2022. This strategy requires significant financing needs over the next 6 years, so the period 2020-2025. We have a very strong balance sheet, and we will fund such needs through efficient capital reallocation as well as exploring down the road strategic partnerships to co-invest in fiber and support fiber coverage expansion. With the increased finance needs over the next years, our funding strategy and our estimated trajectory of free cash flow, we announced today that we rebased our dividend to a sustainable level, creating a path to return to dividend coverage. I will take you now through these components in more detail. Let me first zoom in on our financial expectations for the coming years. So to do so, we distinguish 2 time periods. The first part is over the next 2 years. So covering 2020, 2021. And after this period, so starting as of 2022, our ambition is to return the company back to growth. So for this year and the next, we expected, and again, this is before any impact from the current sanitary crisis, we expected some negative impacts for our B2B business. However, it's not to the tunes of what we've seen for some of our peers in the rest of Europe. But at the same time, the erosion of our legacy products, such as fixed voice, continues. And we did not expect them to be fully compensated by the strong ambitions we have set for our consumer segments in this period. The expected positive evolution in our consumer segment is mainly based on our segmented and convergence approach, and this, for our 2 brands, which proved successful over the past years, as well as the new B2C revenues, such as e-Press, which will support this growth ambition. However, all in all, we expected the Domestic revenue and EBITDA to be slightly down during this 2-year period. Again, before taking into account any COVID-19 impact. And this was amplified by impact of no margin revenue decrease such as inbound revenue, for instance. RCS will be progressively replacing SMS and this, in spite of the cost efforts, we will deliver. I will come back later on the COVID-19 impacts on our business and financial and how we are taking actions to contain it. As of 2022, we see multiple factors to support a return to growth. We will capture the benefits of our NPS improvements as well as fiber acceleration, both in terms of market share and revenue per customer. We expect some new revenue streams through our partnership approach, and we will see as well some trends reversing, specifically in the B2B with our shift to ICT. We also expect a positive evolution for our wholesale business, thanks to our open network strategy. Throughout the entire 2020-2025 period, the objective is to relentlessly focus on decreasing our costs, specifically what we call the indirect costs, which are excluding the OpEx directly supporting our ICT growth strategy. On our cost efficiency program, we leave no stone unturned. We have a very structured, data-driven approach with work streams to address all major cost buckets. And I won't name them all, but they are in all cost categories and all parts of the company from the workforce cost to advertising, the network, the call center, the shops, et cetera, et cetera. So Guillaume already explained the 6 transformation levers around 1, simplified customer experience and offers on one side. And two on the other side, the transformation approach on internal processes and enablers. So how these 6 transformation levers will support how we deliver on our cost ambition. Our total addressable OpEx base is what we call indirect OpEx, which for 2019 totaled EUR 1.535 billion. This addressable base excludes the B2B ICT billable workforce expenses, considering our growth ambitions in this area. With all of the identified cost efforts, we target an indirect OpEx reduction by 1% to 2% CAGR over the next 3 years, while we reinvest to support our ambitious growth trajectory. You can see on the chart that over the period 2019-2022, we will more than compensate for the indexation that we have to undergo on wages, even if this becomes less because of the decreasing headcount, it remains an important rise in cost on which we have little to no influence. However, thanks to the workforce reduction we have announced and all other savings that will more than compensate for the reinvestments, we're convinced to be able to bring down the indirect OpEx. Regarding reinvestments. These are, for example, the hiring of new profiles, some OpEx related to the mobile network sharing, as well as OpEx related to fiber. Let's now move to CapEx. So to support our growth ambition, it's vital to have the best networks in Belgium and to transform our IT systems, as this was explained earlier by Guillaume and by Geert. This is translated into an increase in CapEx needs over the coming years. By 2025, our ambition is to reach 2.4 million homes passed with fiber, with the annual CapEx not passing the EUR 1.3 billion bar. This by leveraging potential partnerships which we think are also essential to continue to build fiber beyond 2025 and expand coverage in an economical way. I want also to highlight that what you see on the chart for 2020 is pre-COVID-19 crisis, and I will come back to it later on. An important ambition that we have to limit the overall CapEx increase as much as possible, is by rebalancing our total CapEx envelope over the coming years. Compared to where we were for 2019, the CapEx for fiber will more than double by 2022. In 2022, there will also be more CapEx for mobile. As we have communicated before, the mobile network sharing agreements will also require some initial investments, which will be concentrated in the period 2021 to 2023. The IT transformation we have talked about will require some temporary additional CapEx means, largely concentrated over the next 2 years. At the same time, we will have a very strong discipline on all other CapEx, which will decrease by 25% during that same period. The rebalancing towards fiber CapEx will increase over the years so that by 2025, this part will represent about 40% of our total CapEx envelope. A very important driver for our decision to increase the fiber CapEx is the positive results that we have generated from our current fiber footprint. Based on the obtained results, we are confident that the acceleration of fiber investments will bring strong benefits on our market position, on revenues, and on our cost to operate. And of course, as we replace copper by fiber, we avoid spending CapEx on renewing and upgrading copper. What we have seen in the covered zones so far, in the consumer market, in the fiberized zone, we obtained double as many gross customer gains versus that same zone in copper, and the average revenue per customer increases by more than 7%. We also see a very nice NPS uplift for this copper, a trend which we think will be improving as we continue to mature and improve our processes and services. For example, monitoring of the line, care calls, WiFi, actions, et cetera. In the enterprise market, we migrated 60% of our EBU mono sites to fiber, and we have observed a 26% increase of our fixed data ARPU for mono sites enterprises. With this acceleration versus our previous fiber rollout plan, we can generate a better return as we also accelerate the operating benefits. For example, we will obtain our ambitious higher market share sooner, and we will be able to benefit from much lower network cost to operate, which is realized 5 years after the rollout in a fiber zone. Of course, we also compare it to a situation of no fiber investment, in which case, we would face a slow but inevitable erosion of our customer base. So overall, we have tangible evidence that supports our investment decision and its expected solid return. Our fiber network is open for other operators, and we have had commercial wholesale prices for fiber-to-the-home since 2017. The Belgium regulator, the BIPC, decided in 2018 to regulate the wholesale prices and the regime of fair pricing. This means that we have flexibility to set the prices, but there must be a link with the underlying cost of providing the service. We therefore maintain a permanent dialogue with the regulator on the positioning of our wholesale offer. On the slide, you see our recently updated prices to offer an attractive proposition to the market, offering a great opportunity to other operators selling FTTH services. These prices are the rental for a bit streamlined up to one of our technical buildings and they're excluding the IT. It includes now the 1 gigabit line speed that Proximus will launch in April. The regulator has welcomed recent price decreases in our wholesale offer. We feel comfortable that the pricing is in line with the fair pricing rule. We discussed the prices with BIPC and the regulator did not raise any objections to apply these prices as of 12th of March. The BIPT continuously monitors the conditions of the offer and thus, we intend to manage the offer also in the future in a correct dialogue with the regulator. We have confidence in a profitable rollout to the benefit of our retail and wholesale customers. BIPT has planned to issue a draft decision on the FTTH rental prices in the second quarter and a final approval in Q4 for this year. Turning to the topic on how we will fund the strategy and the related increase in CapEx. In total, we need to find extra funding for EUR 1.4 billion over the next 6 years. This is largely related to the higher CapEx, but also, as we have communicated to the cash out related to the headcount reduction plan. We plan to have a balanced approach, meaning that we will leverage the strength of our balance sheet while at the same time, keeping a sound financial position. [Technical Difficulty] On top of the EUR 1.7 billion debt, which will mature between 2022 and 2025, that we need to refinance, we plan to increase the total debt by up to EUR 600 million and extend a maturity, which was 5 years at the end of 2019. Under our assumptions, we can maintain an adjusted ratio below 2x, so under the S&P metrics, that's the EUR 1.7 billion that I have just mentioned. And as such, maintaining a strong credit rating. Beyond the planned debt increase, we also plan to dispose of various assets. This way, we will reallocate less production capital to our long-term accretive fiber plan. We comfortably identified up to EUR 700 million of possible proceeds. We still have large real estate assets, for example. So while we have concrete plans, it's a bit too premature to be more precise on the nature at this stage. We will come back to you in due time, yet know that especially in the current environment, there is no immediate time pressure to execute this plan. You could ask yourself the question whether it's the right time to accelerate our investments and increase our debt, considering the unprecedented crisis that we are in. I would like to reassure you that we have no short-term dependency on debt capital markets. We have a EUR 700 million revolving credit facility with a syndicate of relationship banks that we can draw down to cover our short-term financing needs, and it can replace the commercial paper issuance that we would normally do to cover such short-term financing needs. Our first bonds to refinance matured in March 2022. And as I just said, there is no need in case the market turned illiquid to execute asset disposal before 2023. And in other words, we could fund our plan via debt increase up to EUR 600 million before starting the execution of our disposal program. In this context, we can still commit to an attractive dividend for our shareholders. Therefore, in spite of the strong pressure on free cash flow generation following the CapEx increase, we will intend to return a stable dividend of EUR 1.2 per share over the financial results of 2020, 2021 and 2022, which you should take as a floor. Considering the magnitude of the acceleration as well as the shorter EBITDA profile, we have re-based our dividend to a sustainable level creating a path to return to free cash flow dividend coverage. This shouldn't be -- there shouldn't be any impact in the total cash return in 2020 as the plan is to maintain a EUR 0.50 per share of interim dividend this year in December and EUR 0.70 in April the next year. This slide is just to show you the complete new dividend policy for the coming 3 years. And I won't read it aloud, of course, but this way, you have the full version. It's also published on the website and has been approved by our Board. But before moving to our guidance for this year, I would like to talk a bit on the potential impact from COVID-19. And while it's very difficult to have a clear view of what the overall impact will be, it is clear that it will influence our business in many ways. As Guillaume said [Technical Difficulty] and we are promoting our digital channel. We have limit customer operations to strict necessary. Besides this other areas [Technical Difficulty] ICT project installations are being delayed, and we also see that the most effective -- affected economic sectors are asking for credit notes or service interruptions, or payment delays and that is specifically true in the SE and ME markets. We also see lower growth gains, as well as we see some lower churn levels in some parts of our portfolio. We have put in place a bi-weekly finance committee to track and assess and decide on all part of the business that have impacts on financials, as well as on the working capital and to make sure we have a coordinated approach and also make sure we take into account the situation of our customers. At the same time, we have thoroughly reviewed where we can take some cost containment actions, reducing external workforce cost, delaying some initiatives, stopping some discretionary costs. Sometimes stopping operations, which is the case for all noncritical field activities, whether in deployment of our network or whether [Technical Difficulty] we have run the first quantification and sensitivity analysis. And as you can imagine, we have more data every day. So in a scenario of a Q2 hit, what we can say is that the impact we see on our revenue and EBITDA, which is linked to the temporary advantages that we have granted to our customers, which is linked to the roaming traffic, which is plummeting, which is also linked to the ICT impact as well is more or less compensated by the decrease of CapEx. Therefore, in the current environment, and as you can imagine that we have reflected whether we should or we should not withdraw the guidance for 2020. We have decided to guide for 2020 on a group EBITDA minus CapEx. As I said, we have made an estimate of the crisis impact for the full Q2. If it was to be prolonged, we consider that CapEx adjustment would compensate the negative impact of EBITDA. So for 2020, we estimate that the EBITDA minus CapEx to end between EUR 780 million to EUR 800 million. This will lead to the overall financial picture, including our view beyond 2020. We aim to drive growth for domestic EBITDA by 2022 based on a turnaround in top line and lowering our costs. Beyond 2022, we intend to further grow as our top line is expected to continue to grow, and we see further decreases in our Domestic OpEx. The table also recaps our capital allocation. Our CapEx is expected to go up, as explained earlier, with a maximum annual CapEx of EUR 1.3 billion. Our total funding needs over the next years, we will cover by increasing our debt while keeping the S&P adjusted ratio below 2x EBITDA and by looking into disposing some of our assets. And on the bottom of the table are intended dividend of EUR 1.2 per share over the next 3 years is considered as a [ fluke ]. With that, let me give the floor back to Guillaume.

Thank you, Geert. Thank you, Sandrine. Just a quick word of conclusion before we take a break and dial-in for the Q&A. I think you understood it. Our plan for Proximus is first, an industrial plan. The truly ambitious investment plan in future networks, driven by the very DNA of this company. It's also growth and development plan, for Proximus and its employees. And beyond that, an accelerator of the country's digital competitiveness. Proximus is building the best gigabit network for Belgium, investing faster and smarter in fiber and 5G. This network will be unmatched in terms of capabilities and unavoidable in the long run and open to all. With this new approach, we create new ways to monetize our investments on the medium term. We are also making concrete commitments to transform into a leaner, legacy-free company, truly fit for digital world. Then this network is also a growth plan. And out technology leadership, we will further develop partnerships and local ecosystems, but welling us back to profitable growth trends as from 2022. And we will also embrace our societal role with these difficult times more than ever and embed sustainability and digital inclusion in everything we do. The sense our value-accretive investment plan, we leveraged the strength of our balance sheet whilst keeping in very short while keeping a very sound position. And the renewed focus on capital allocation will dispose of various assets. Last, our plan allows us to commit to a net active dividend for shareholders. I will be uncompromising on execution excellence, even more than in the current difficult circumstances where our responsibility is huge. Tomorrow is built today. We need to look forward. This is a conviction that is shared by our Board, our management team and all Proximus employees. Many thanks to all of you, and we'll take your questions in a moment. [Break]

I hope you can hear me now. We've been having difficulty with the audio whilst you're here. We trying to [indiscernible]. So I hope it's a bit better. My understanding is that the [indiscernible] for Sandrine's section was not very clear from your perspective. So I suggest that if you have difficult questions, you can ask them now as we are opening the line for your questions now. Operator, can you show them how to do this? Thank you.

Welcome back to the Proximus Capital Markets Day. [Operator Instructions] Our first question is coming from the line of Ruben Devos from KBC Securities.

Yes, hello, do you hear me? There have been some technical issues, and I'm not sure whether you hear me right now?

We can hear you clearly.

Okay. Great. I've got some questions. The first one actually relates to the network business unit. So it's interesting to see that you decided to create a new unit there. I was curious whether you could walk us through sort of the thought process for the setup of that new structure?

[Technical Difficulty] Until then, we will take a question from Ulrich Rathe from Jefferies.

So my first question would be strategic partners. You talked about the intent to partner strategically. The first -- and I think it's already in the guidance. Could you confirm that? And also, are you actually in talks with any material partners? And you made a comment during the prepared remarks that you're not looking for financial partners, could you explain the thought process behind that? And my second question, if I may, just start with 2. When you talk about return to revenue growth by 2022, could you sort of drill that down into the division? Does this essentially mean that all units will be sort of closer to growth or contributing to growth? Or is that a trajectory that's very heavily weighted to one of the operating divisions.

I will first answer on the question that strategic partners. Indeed, what I've mentioned during the presentation is that we are not looking for pure and only financial partners. We will be looking for partners that bring -- they could bring also financial interest, but they have to bring the way to get efficiencies for the rolling out of the network in every aspect of it. So that's really important in the type of parts that we are looking for. That's one. Second, I cannot be specific in where we are in terms of discussions today. But we are in talks with several of them, but I cannot update more that as of today, I hope to come back with more news in the coming months. I think for the second question you had on the growth. Indeed, we need -- we want to return to growth patterns as from 2022, both on revenue and EBITDA. And this growth will be mostly driven by the consumer business unit and the wholesale business unit. As you know and as we explained, we have a transition period to go through on the B2B segment.

Okay. Could you just put one sentence in why exactly financial partners are not a good idea, given that you are driving up leverage in the firm right now?

I'm not -- I'll let Geert answer your question, yes. Geert, you want to?

Okay. So on the first question. Yes, so what is the organization of that or business units looking like? So in fact, in there, we will have -- we will run and operate all the infrastructure, it means the fixed network, it means the mobile network, the transport network, as well as data centers. And for data centers, this includes the whole management of what we will be running in our own data centers, what we will be running in the public cloud and what we will move into our ex cloud infrastructures. It will include as well the network IT cost and all the intelligence platforms that are running on top of the networks. Now the main tasks as set is here to support in the acceleration of building the gigabit networks in Belgium, initiating the partnerships in connections, and ensuring that we get the necessary support of different stakeholders meaning at regional level and at city level to ensure that we get, what I would call, a fiber-friendly regulation with respect to governments, et cetera.

And just to come back on the last part of the second question, sorry, because we are experiencing some difficulties in terms of sound here. So I'm not saying that there is no value in bringing pure financial partners. I was saying that in terms of priorities, we'd like first to strike agreements and deals with partners that could bring in addition to financial capabilities, efficiency and synergies in terms of fiber rollout.

The next question is coming from Ruben Devos.

I've got two. Just the first one related to the new network business unit. Interesting to see that setup. I was curious whether you could walk us through sort of the thought process for the setup of that new structure. And in the presentation, you also pointed asset monetization across partner footprints. I was wondering whether you could add some color on that comment, please. And then secondly, just regarding the mobile network on agreements. We've had an update from the competition authorities a few weeks ago. At this stage, I was wondering whether you could share your thoughts on the legal risk still. Is there much risk, in your view, that you would need to award concessions of any kind? And apart from the regulator's view is there a possibility that you could ultimately come to sort of commercial agreement with the operators?

Okay. So Ruben, this is Geert. I hope that you hear me now because I was -- I got a thumbs up here, okay. Thanks. So with respect to the network business unit, so the domain that the network business unit will cover is, in fact, all the infrastructure part. It's the fixed part, mobile part, the transport part, but as well the data centers. And as we have announced on our data centers, this includes public cloud, but it includes now as well, our edge cloud architectures that we will build up. This network business unit will be operational as of tomorrow. And the task we see there is, of course, the acceleration of the fiber rollout to ensure that with respect to the deployment acceleration, we can give there the necessary -- do all the necessary to keep up with the acceleration in pace of deployments. But as well, what we do in this unit is all the interaction, the initiation of partnerships discussions and ensuring that we get the necessary stakeholder support from cities, communes, regional level, this to create a regulation, which is fiber-friendly. Second question with respect to the mobile network sharing agreements. Okay, we'll have Geert give you an answer on that one.

The next question is coming from Nicolas Cote-Colisson from HSBC.

Can I come back on your co-investment scheme because it took years to establish a work in procedure in France. So how far do you think this could be achieved in Belgium and how is it reflected in your CapEx budget? Because I'm not clear if the target which has been presented to us includes or doesn't include co-investment. And maybe a second question is just to come back on your comments, Sandrine, because you were cutting off. Just on COVID -- just, yes, on the specific effect of COVID, could you repeat the comment you made on Slide 79 about EBITDA minus CapEx? Did you say that the lower EBITDA due to COVID impact is not fully offset by the delayed CapEx? And also, if you could repeat your comment about the roaming or the impact of the COVID on roaming.

Okay. Nicolas, I will start answering your question. So on the CapEx budget co-investment, what we are announcing is taking into account at the very long term, the impact on the co-investments. So not on the first 3 years. So till 2022, there are no benefits of co-investment, it's only starting late in the plan and to certain level of assumptions. And your second question regarding the COVID -- so sorry about the sound issues we have here. I understand that indeed, you were not able to clearly understand what I said about the COVID impact. So maybe I should repeat this indeed. What I said is that what we see today is that we have impact on our financials, which are coming from the fact that we have taken some favorable and temporary proactive measures for our customers by providing them mobile data and unlimited call and unlimited fixed internet, so this has a negative impact on our revenue. What we see as well is that the traffic for roaming is really strongly decreasing. So this means that we are losing revenue on the roaming side. We don't have any more out of bundle. This has an impact, especially in the non-EU zones, but also in the roaming and the instant roaming domain. What we see as well is that there are delays for the ICT project installations. So all these 3 elements have impact. Of course, we also expect to see that the small enterprise, the medium enterprise, which are in the most affected economic sectors such as restaurants, hotels, et cetera, we see some of them asking for a service interruption or credit notes or payment delays. So we expect to see a bit of increase of bad debt as well. What we see as well is that we have lower churn that will also lower gross gains. So when we try and assess what is the impact of all this in front of all the actions that we are taking on the costs, and we are taking some proactive actions on cutting some cost and cutting some discretionary costs and -- but we also see that operations have stopped. Anything which is related to field activities and deployment or provisioning, this has stopped. So combining all that, we expect to see a negative EBITDA impact, but at the same time, we expect as well to see a lower level of CapEx. And all in all, that's why we guide on a group EBITDA minus CapEx, and we expect that more or less the impact of negative EBITDA is compensated by the decrease of CapEx, and that's why we've provided with a range of EUR 780 million to EUR 800 million.

Can I just have a very quick follow-up on BICS? Can you tell us about your intentions regarding the minority stake you have -- sorry, the minority stakes outside your stake? And how much the transit business is important to you for your future plan? And maybe how TeleSign is doing?

So we do not comment on the intention and the evolution of the shareholdership on -- of BICS. The transit business is worldwide. So it's -- what we see today on the impact of the crisis on BICS is different depending on the geographies and is quite minimal at this stage, but it's also factored in the global guidance that I have just given to you. And what was your last question, Nicolas? I missed what you said, the last?

Just on how TeleSign was working. If it was something -- an area you would expand in the future.

Yes. Well, in TeleSign, before crisis, we saw very nice traction with the increased usage of the OTT app these days, the TeleSign usage, specifically authentication is also high. Now TeleSign had some nice growth ambition to develop new products. And with the current crisis, these are potentially developments which are being slowed down.

This is Geert coming back on the question for the sharing deal with Orange. So 2 weeks ago, indeed, we got the confirmation from the Belgian Competition Authority that they saw no more reasons to continue the suspension of the deal. So we are starting now to integrate the business. This being said, there is, of course, still the investigation by itself. And for that, we received, last week, a questionnaire from the competition council, which is the normal, typical questionnaire for all competition-sensitive deals. So our assessment is that for the moment, our position is that we don't expect legal issues at the end. We are still in that position.

The next question is coming from the line of Michael Bishop from Goldman Sachs.

Just a couple of questions, please. Firstly, picking up on your guidance for domestic revenue declines in '20 and '21, it sounds like the majority of that is driven by your commentary around the Enterprise segment. So I was just wondering if you could flesh that out a bit and just explain exactly what pressure you see in Enterprise. And I think you mentioned that it wouldn't be necessarily as bad as some of the peers we've seen in Europe. Could you just elaborate on that comment as well because we clearly have a sort of, I guess, a range of almost flat to minus 10% in Europe in B2B over the last few years as people see this migration. And then the second question is around your confidence with the fiber acceleration around wholesale deals. Could you just give us a bit more granularity on that? Because I guess I'm struggling to see, given how low potentially cable wholesale is, whether given your wholesale pricing, which is materially higher, how you can drive a lot of incremental volume, particularly from the existing players, such as the likes of Orange Belgium.

Yes, this is Bart speaking. For your first question, it is indeed so that we are, as already confirmed by as well, Guillaume and Sandrine, we're planning a transformation the B2B business. Why is that so? Because we have been very successful in the past years, and we have built a strong leadership in the B2B but we also expect some fundamental changes in the market. Of course, there is fixed voice, the continued erosion of fixed voice that is happening. But in mobile, where we have a strong leadership, we expect also some competitive pressure on the shorter term on the ARPU and also because of the all including bundles. And then in fixed data, we actually plan a proactive migration of our fixed data, explore customers to the next-generation connectivity, being the SD-WAN. And that, together with migration to -- or growth in ICT, we will have a portfolio mix shift that is going to impact us in the first years, until we get back to growth. And maybe there, I can just -- how would I say, clarify a little bit for strategy because your question is how we -- do we compare with other operators in Europe? I can tell you that Proximus B2B has always been -- I mean, has been very successful in the past years because our strategy has always been based on differentiation and anticipation to stay ahead of competition. And we have the firm ambition to continue to do so. The foundation of our strategy has always been and will always be our network leadership and this is again confirmed by our substantial investments in fiber and 5G. They are the only future-proof technologies. We have also always driven differentiation to convergence, convergence fixed mobile, voice data, but also with ICT. And within there, I think it's important for us always to build on our strong, reliability: the reliability of our networks, the SLAs, which has again been proven in these difficult times that we're living today. Now it is our ambition to increase our relevance to our customers. And therefore, we have the ambition to be the trusted and the preferred partner of our customers in the digital transformation, and therefore, we invest in our relevance to our customers, next to the connectivity. So we invest in cybersecurity, we invest in IOT and data analytics and application integration and move to public cloud. And therefore, we are going through an important transformation again in our business model. So one, we go to a new industry segment and go-to-market, where we adapt our sales and marketing and solutions portfolio, depending on the customer industry and size. We have this proactive move to our fixed data -- of our fixed data customers to the next-generation solutions being SD-WAN, which will have on the shorter term an impact, but on the longer term, we'll secure our customers. We have, of course, a fiber and 5G acceleration, where we built on specific use cases, as for instance, the Brussels Airport, the Port of Antwerp, of VRT but this also takes some time to be rolled out. We have -- we're really focusing on the migration to public cloud. And so Guillaume has elaborated on our partnership with Microsoft, where we will indeed be one of the first operators to merge our assets, being our network assets with the Microsoft Edge computing. And we will further reinforce our leadership in cybersecurity. And for all that, around all that, we will build strong professional services to take the integrator role in the current, fast and exponentially evolving technology. So that's a little bit -- how would I say, some context on the evolution of the B2B business.

On the fiber acceleration and the wholesale opportunity, what we are doing with the acceleration of our investments in fiber that we are building the best gigabit network for Belgium. It means that on the long run, this network cannot be matched in terms of capabilities, cannot be matched by coax, cannot be matched by copper, it's going to be the unavoidable network for Belgium in terms of ultra-high speeds and ultra-low latency. So the ambition of Proximus is to build that network, and we are building that network for the next 70 years. It means that we want to maximize the utilization of that network in the long run. And given the specificities and the capabilities of that network, I'm very confident that we will maximize the utilization of that fiber network on the long term. This is one. Second, this is really a shift of mindset. We just created a Network Business Unit in order to maximize the monetization of our network assets, as I said, longer term, but also shorter term. And we do see some also opportunities to better monetize our mobile 5G network. We launched our mobile network tomorrow in 5G. And this network will be also open for partners and for other operators if they want to access it. So it's a total shift in the way we are looking at our assets and the way we want to monetize that asset going forward. That's how we see the wholesale opportunity, shorter term and longer term.

And maybe just one quick follow-up on the 2020 and '21 guidance. Could you give us any indication around what sort of level of pressure you see on domestic revenues across the divisions?

On the breakdown of the revenue, I will let Sandrine answer the question.

Yes. I think -- I don't know if it was heard, but what I said before is that before any impact of the COVID-19, our guidance, at least for 2020, would have been on a slight -- very slight decrease of our revenue for domestic revenues and it's excluding terminals. And I'm not breaking it down by businesses, but I think you understood that we were expecting some pressure on the B2B segment. As for the Consumer, we have quite strong ambition on the consumer, but we expect it to be hit down the road by the fact that RCS will progressively replace the SMS. And that is putting us away some pressure without any margin impact, but it's putting pressure as well on the top line for the Consumer segment.

The next question is coming from Roshan Ranjit from Deutsche Bank.

Great. Two from me, please, on the fiber investment. You guided to fiber CapEx being around, I think, 40% by 2025. Just on some rough calculations, I guess, in the near-term ramp-up, that is closer to 25% or 30% on my calculations. Correct me if I'm wrong there. Is it fair to assume then that the bulk of the CapEx -- fiber CapEx run at the moment is still fiber to the business parks, which you had said back in 2016 was the focus? And can you give us an update as to what coverage of the fiber business parks you have got to, please? And secondly, when you have brought forward the residential coverage to 50% by 2025, you've also got a slide showing the super vectoring and also use of cable. Is it fair to assume then that you see basically residential fiber coverage topping out at 50%? Or is that just the kind of longer-term target by 2025 and there's scope to go even further beyond that? [Technical Difficulty]

Yes. So I'll repeat because I think that was, again, a problem. I hope you hear me now.

Yes.

Yes? Okay, thanks. So with respect to your second question on the residential profits. The 50% by 2025, this is not where we are going to end. So we are planning to go beyond that. But there, the partnerships will play a crucial role. The super vectoring is something that we will do to ensure that in meanwhile, we can keep up with the demand of our customers. With respect to your question on the business side, there, it is assets that today, we have covered most of the industrial zones. So there, we're still have to continue part of that. But the investments related to that, they become more minus. Of course, what you have in Belgian topology is that also big part of enterprise sites is in the high-dense areas. And as such, while we will implement the Fiber-To-The-Home, of course, we connect as well enterprise sites on fibers.

So just a follow-up. So basically, bulk of the business park investments done, that's on the way down. And then clearly, residential fiber is going to be picking up?

So with respect to B2B. So as I said there, industrial zones, that's almost done. And then the other part, we will do -- we will take along, while we are doing the deployment of our Fiber-To-The-Home rollout. So in Belgium, there is about 25% to 30% of enterprise sites that are sitting mainly in industrials zones. But the rest, we will take along with the normal Fiber-To-The-Home rollout, unless that there are, of course, critical needs. Then of course, we take those reactively and then we handle that with our point-to-point fiber offer.

The next question is coming from the line of Paul Sidney from Crédit Suisse. We will move on to the next question coming from Nayab Amjad from Citi.

So on Slide 14, we can see that the IRR versus the average cost of capital is the highest for Brussels, followed by Flanders and then Wallonia. Does that imply that you've been building more fiber in Brussels and Wallonia -- sorry, Brussels and Flanders, because the IRR is higher there? And my second question is that you mentioned that you had the regulator input on current wholesale prices by Proximus. Can you elaborate on the discussions with the regulator further and how do you see the FTTH wholesale prices going forward, given that cable wholesale prices have been cut? And my final question is on B2B. What proportion of revenue is related to the SME segment?

So may I done your question on the IRR. So the way we've calculated that is that we've taken into account our assumptions of the country coverage and it's actually higher in Brussels and it's also where we have the highest population density. So typically, it's where the average home passed unit cost is the lowest and that's why you have an IRR which is higher. And I could say, for Wallonia, it's the inverse. That's where the density is the lowest in the country and that's why you have this lower level. I'll take your third question as well on the exposure to the SME segment. We typically do not give this number, but I think with the exception of the COVID impact, we're ready to share with you that the combination of the SE market and ME segment market represents a bit more than 20% of our revenue.

On the regulatory framework for FTTH, you know that since 2018, we are under the regime of fair pricing and we did update, as Sandrine mentioned during her presentation, our prices to offer an attractive proposition for other operators to access our FTTH services. And in detail, now we have a price of EUR 23 for 150 megabit per second. We have EUR 28 for wholesale fiber line at 500 megabit per second, and we have an offer at EUR 36 for fiber line at 1 gigabit per second, all prices being excluding VAT. And what I can say today that the regulator has welcomed the recent price decreases in our wholesale offer and that we feel comfortable that the pricing is in line with a fair pricing rule. And we have discussed the prices with BIPT and the regulator did not raise any objections. Of course, BIPT continuously monitors the conditions of the offer. And thus, we intend to manage the offer also in the future in a correct dialogue with the regulator. But today, we have a comfort in profitable rollout to the benefit of our retail and wholesale customers for our fiber network. In terms of planning, BIPT has planned to issue a draft decision on the FTTH vendor prices in Q2 and a final approval in Q4 for this year.

Just wanted to follow-up on my first question. Given the IRR is higher in Flanders, would you be building more fiber there as compared to Wallonia?

That's not in our intention. We have a global approach for the country.

The next question is coming from Paul Sidney from Crédit Suisse. We will have to move on to the next question. The next question is coming from Emmanuel Carlier from Kempen.

A couple of questions. One on free cash flow and a few small ones on the fiber rollout. So on free cash flow, I think you mentioned that the intention is to cover the dividend by the free cash flow in the near term. But if I look at your guidance for EUR 1.3 billion in CapEx and EBITDA only returning to growth by 2022, it looks like the dividends will not be covered at all by 2022. And it might take, yes, towards 2023 or even 2024. So could you maybe just clarify that a little bit? And maybe it is related to disposals, which you include in the free cash flow? So that's question one. And then on the fiber rollout, could you share with us the cost per fiber home today and how you expect it to evolve? Then another question on the fiber rollout is how many homes will you cover by 2025, if you exclude any partnership? And then lastly, do you consider to use in some regions, the cable network as a starting point and use that starting point then to move towards fiber like some of your peers are trying to meet?

So Emmanuel, it's Sandrine. I will clarify the point on your first question. I don't think we have said that we had the intention to cover dividend in the near term. I think we have the intention to return to dividend coverage, but this is certainly in the midterm, so your assumptions is correct. It's not something that will happen over the next years.

Okay. Then with respect to the fiber rollout costs, yes, you've seen our cost for fibers to the home plans today is around EUR 850. What I can give you as a guidance is that by 2025, we want to do 2.4 million of homes. And we will have deployed around EUR 2.5 billion of capital to cover these homes passed. When you then -- another point that I can give you is that to do the 2.4 million homes passed and activate 800,000 customers on that by the same years that we plan for a total of around 3 billion to get that done. With respect to the request on the coverage target by 2025, this is our target and that target remains with or without our partnerships. But as such, we have initiated some of those stocks right now. And we are pretty confident that some of these will lead to a positive outcome. Then on your last question with respect to cable. Yes, indeed, it is our intention in those copper zones where it's hard for us to reach the necessary hygienic speeds that we will use the cable network. We are in interaction with the cable operators today. There is still some discussion ongoing with respect at which level of we can connect on the technology. These discussions are ongoing. Now the intention is there to use it for about 10% to 15% of the population to use this technology. Is this a starting point to move forward afterwards, mainly for those regions, we believe will not be the first ones that we will be tackling in fiber but of course, we're looking towards also the evolution of other technologies like fixed wireless access, and this might be, in time, a complementary technology.

And do you intend to use the cable network to upgrade it towards fiber?

No. So we where we're using the cable network, it's really the intention there. That at this stage, that these are the zones where it's, typically, the cost to deploy fiber is too high. And so there is no intention at this stage there to bring fiber in these zones.

The next question comes from Matthijs Van Leijenhorst from Kepler Chevreux.

Yes. Three questions from my side. The first one is you foresee quite a significant step-up in your Internet net adds. I was wondering where you expect this net adds will come from? Secondly, it's regarding your infrastructure. You're putting this in a separate entity. What is your view on spinning off or ultimately, monetizing these infrastructure assets like we see in some other countries. And last but not least, this -- in the context of this virus, it basically has shown that telecommunication networks are pretty vital for modern society. And in this respect, do you foresee policymakers to reassess their approach towards telecommunication providers. So moving away from protecting consumers to more incentivizing investments, for example? What is your view on the regulatory environments, given the current context?

Good afternoon. This is Jim Casteele. I'm going to take the first question on the ramp-up of the internet net adds. So indeed for the coming years, we have ambitions to further increase our internet penetration with 2.1 million homes by 2022. As you have seen in the presentation of Sandrine and Geert, we have quite a good performance on growth gains in fiber zones versus our VDSL zones. Next to that, with the launch of 5G as a brand to reconfirm the premium-ness of the Proximus brand. And as you know, we also invest quite a lot in our digital platforms because that's where we really create the relevance of the brand based on essential connectivity. So the investment that we did, on one hand, on the fixed entertainment platform, for instance, also now by having [ set-top ] experience on Apple TV. And next to that, also there is the fact that we're going to evolve on [indiscernible] servicing applications towards certification that plays a central role in the daily lives of our customers. So I think all these elements together will give us further boost on our brands, and it will allow us to rely on the [ structure ] we have on internet.

Could you split it per region?

[indiscernible] the ambition is to do this nationwide, as a fiber network we're going to build out in the country.

On the second question on the network business units, there is no intention today to carve out the network from the service part of Proximus. The reason why we decided to create that Network BU is to really have the full management team focusing on the rollout of the network. It's also a way for us to change the mindsets in which we see our networks in order to monetize them in a better way and ensure on the long run that we will be value-accretive in terms of rolling out those future-proof networks. That's for the second question. For your third question on the policymakers... [ Audio Gap ] I can tell you that in some cities, we've obtained those agreements, that for example, we get a permit to cover a large part of the city. Now this type of frameworks, MOUs with the cities, we would like to get these realized, I would say, at the different regional levels. That is a part that is linked with getting permits to do the structured fiber cabling into the MDUs. But where we're making progress and where, of course, we believe that once we can get these policies in place, this will, for sure as well, help us in our cost reduction initiatives.

And a very quick follow-up on that. You don't include any partnership debt in your CapEx guidance?

So as I said on the CapEx guidance, we have not included any partnership benefit over the next 3 years. Over the period until 2025, we captured some benefit at the end of the period, but to a level which is quite minimal as part of the total investment.

The next question is coming from Simon Coles from Barclays.

Can you hear me? Just on edge computing, you've mentioned that quite a few times. Is that part of the ICT growth that you're talking about, which helps enterprise start to recover in -- from say, 2022 or 2023 onwards? And then just secondly, you seem to be a lot more willing to embrace allowing wholesale partners to use your fixed and mobile networks. But we've obviously seen that be deflationary in other European markets. Is there any reason that makes you believe Belgium will be more resilient or rational?

On your first question, so it's indeed so that the enterprise plan, there is an ambition to grow our ICT business next to the telco business. That remains, of course, very important. And we see -- so we plan also a shift in our portfolio mix. On average, where today, on our domestic business, ICT represents about 40% of the total and telco, 60%. So it might -- so we have a -- might shift to 70-30. So -- sorry, from 70-30 to 60-40. Now what is important is that this growth, again, comes together with a lot of relevance towards our customers that will also, at the same time, protect our core telco business. So when I talked about cybersecurity, when I talked about IoT, data analytics, application, integration, move to public clouds, all those different and integration services. All those services are, of course, very important to what I said in the beginning, to differentiate ourselves and sustain our leadership in the market by bringing much more relevance to our customers than our competitors do for the time being.

On your second question on the -- the resilience of the Belgian markets for mobile offers. The only thing I can say that we will be also a rational player in terms of wholesale pricing to access our network, which would help maintaining a rational market overall.

The next question is coming from Stefaan Genoe from Degroof Petercam .

Yes. Two questions. You mentioned in the call that for the Wallonia, the southern part of the country, you'd rather target a stable market share and given your high market share already. Can you indicate what kind of potential change in competitive environment you have taken into account if Providence would acquire VOO? And related to that, does your business plan also take into account, say, potential new entrant in mobile? And then the second question, I assume that the EBITDA guidance you talked about in the press release and in the recommendation, does not include capital gains from the sale of buildings?

So this is Jim Casteele talking again. So on your first question related to potential changes in competitive environments. Of course, we know what is going to happen with Providence and VOO. So yes, we have taken that into account in our ambitions. The way we address this as a company, and as you know, we have a multi-brand strategy with Proximus and Scarlet that allows us to cover the whole part of the market. Scarlet being the brand which is a no-frills brand that targets more the price-seekers segment and at the same time, what we're doing now, intensively strengthening the Proximus brand, as I said, and through the digital platforms that we're building, but at the same time, also making sure that the Proximus brand more and more also becomes a purposeful brand. We are actually building a brand that is more resilient to disruptions in the market by making sure that we act on a societal level next to on an industrial level, like we have been doing over the last years. I think there, everything we do related to sustainability is something that really will also help in building a relationship with our customers that goes beyond what a traditional company is doing. So these are the elements that we put in place to make sure that we can face the markets ahead of us. And then on the question related to a potential new entrant, I think Guillaume is going to take over that.

On your second question on the -- so our outlook does not include a potential disruption linked to a new entrant on the mobile market. Clearly, on your question, our EBITDA guidance does not include, indeed, capital gains of sale of buildings.

The next question is coming from the line of Paul Sidney from Crédit Suisse.

Yes, Paul Sidney. Sorry, I was having difficulties earlier. I have two questions. [indiscernible] the thinking behind this in your numbers [indiscernible]

Paul, sorry, we cannot hear you. Your line is breaking up quite badly.

Is that better?

We're very sorry. We cannot hear you properly. Could you try to repeat your question?

Hello, can you hear me now? Okay, I think I'm -- hello?

It's not working very well. We're very sorry about that. We have no further questions, so I will hand you back to your host to conclude today's conference.

Do you hear me? Yes. Thank you all for your participation. You can send your questions or call me or [ Lee ] obviously, afterwards, especially Paul. So we will be in contact directly. Thank you very much. Have a nice day. Bye.

Thank you for joining today's call. We are sorry for the technical issues. You may now disconnect.