Exhibit 2: Key Figures for European Telecom Companies

Market Enterprise
Cap
Value
EUR b
EUR b
Telecom Italia (TI)
76.04
114.87
Deutsche Telekom (DT)
67.91
119.06
France Telecom (FTE)
54.41
100.94
British Telecom (BTY)
23.92
37.61
Swisscom (SCM)
18.00
18.79
Koninklijke KPN NV (KPN 15.99
23.61
Telekom Austria (TKA)
5.89
9.91
Average
Source:finance.yahoo.com - March 5, 2004

P/E
12.01
12.01
11.11
10.17
15.04
12.8
27.54
14.38

EV/Sales EV/EBITD
A
3.62
1.98
2.14
1.32
2.03
1.91
2.45
2.21

34.55
6.12
5.7
4.14
7.64
4.71
6.76
9.95

Beta

EV/MktCap

0.79
1.43
2.00
1.37
0.53
1.73
0.64
1.21

1.51
1.75
1.86
1.57
1.04
1.48
1.68
1.56
RF
MKT RISK P

Beta
Assets
0.52
0.82
1.08
0.87
0.51
1.17
0.38
0.76
4%
5%
7.82%

Assumptions
Growth rates
fix
mobile
intl
Depreciation
Income Statement
Sales
EBITDA

1%
1%
1%
0%

Cost of debt
Tax rate
Payout ratio

5%
34%
50%

2003
5,454

2004
5,509

2005
5,455

2006
5,510

2007
5,456

2008
5,511

Depreciations
Provisions
EBIT
Interest
Taxes
Minority interest
Net Income

1,109
1,113
28
2,250
787
0
1,463
27
208
154
1,074

1,120
1,124
28
2,273
787
0
1,486
26
496
156
808

1,131
1,135
29
2,295
787
0
1,508
26
504
157
821

1,143
1,147
29
2,318
787
0
1,531
26
512
159
835

1,154
1,158
29
2,341
787
0
1,554
26
520
160
848

1,166
1,170
29
2,365
787
0
1,578
26
528
162
862

Statement of cash flows

Net income

1,074

808

821

835

848

862

154

156

157

159

160

162

787
0
733
1,282
485
797
440

787
0
0
1,750
787
963
404
78
-1,000
0
-1,482
-518

787
0
0
1,765
787
978
411
79
0
0
-489
489

787
0
0
1,780
787
993
417
79
0
0
-497
497

787
0
0
1,796
787
1,009
424
80
0
0
-504
504

787
0
0
1,811
787
1,024
431
81
0
0
-512
512

4,381
78
110
4,569

4,381
78
-408
4,051

4,381
78
81
4,540

4,381
78
577
5,036

4,381
78
1,082
5,541

4,381
78
1,594
6,053

2,548
446
1,050
525
4,569

1,952
524
1,050
525
4,051

2,362
602
1,050
525
4,540

2,780
682
1,050
525
5,036

3,204
762
1,050
525
5,541

3,635
843
1,050
525
6,053

Fix
Mobile
Intl
EBITDA

Minority interest
Depreciation
Provisions
WCR
Cash flow from operation
Capex
Free cash flow
Dividend
Dividends to minority
Equity
D Debt
Cash flow from financing
Change in cash
Balance sheet
Fixed Assets
WCR
Cash & ST invest.

Book equity
Minority interest
Provisions and pensions
Debt (interest bearing)

0
0
-440

=
+

FCF
DIV
Var Equity
Var Debt
Var Cash

100
100
0
0
0

100
50
0
-20
30

100
50
-50
0
0

-100
50

-150

-100
50
150
0
0

# shares
Earnings
RF
Mkt Risk Premiupm
Beta Assets
Cost of capital

400 m
808 m
4%
5%
0.76
7.800%

Belgacom as a cash cow

Value
Price/sh

10,359
25.90

Payout
RORE
Div
g
Value
Price/share

50%
8%
404
4.00%
10,632
26.58

Key figures for European telecom companies

$/
Billion USD
Telecom Italia (TI)
Deutsche Telekom (DT)
France Telecom (FTE)
British Telecom (BTY)
Swisscom (SCM)
Koninklijke KPN NV (KPN)
Telekom Austria (TKA)

1.2164
Market Cap Enterprise P/E forw EV/Sales EV/EBITDA Beta
92.5
139.73
12.01
3.62
34.55
0.79
82.6
144.82
12.01
1.98
6.12
1.432
66.18
122.78
11.11
2.14
5.7
1.999
29.1
45.75
10.17
1.32
4.14
1.365
21.9
22.86
15.04
2.03
7.64
0.528
19.45
28.72
12.8
1.91
4.71
1.733
7.16
12.06
27.54
2.45
6.76
0.638

Source:finance.yahoo.com - March 5, 2004

Exhibit 2: Key Figures for European Telecom Companies

Market Cap Enterprise
EUR b
Value
EUR b
76.04
114.87
67.91
119.06
54.41
100.94
23.92
37.61
18.00
18.79
15.99
23.61
5.89
9.91

Telecom Italia (TI)

Deutsche Telekom (DT)
France Telecom (FTE)
British Telecom (BTY)
Swisscom (SCM)
Koninklijke KPN NV (KPN)
Telekom Austria (TKA)
Average
Source:finance.yahoo.com - March 5, 2004

P/E

EV/Sales

EV/EBITDA

Beta

12.01
12.01
11.11
10.17
15.04
12.80
27.54
14.38

3.62
1.98
2.14
1.32
2.03
1.91
2.45
2.21

34.55
6.12
5.7
4.14
7.64
4.71
6.76
9.95

0.79
1.43
2.00
1.37
0.53
1.73
0.64
1.21

EV/MktCap
1.51
1.75
1.86
1.57
1.04
1.48
1.68

EV/MktCap
1.51
1.75
1.86
1.57
1.04
1.48
1.68
1.56

Beta Asset
0.52
0.82
1.08
0.87
0.51
1.17
0.38
0.76

2001

2002

2003 Source

6422
1085
5337
3188
2075
625
5888
551
5337

5454
0
5454
3108
2181
626
5915
461
5454

F-3
F-3
F-3
p 52
p 55
p 57

Inter-segments
Revenues recurrent

5467
0
5467
3422
2077
606
6105
638
5467

EBITDA
Fixed line
Mobile
International
EBITDA recurrent
Non recurrent expenses
EBITDA

1136
853
37
2026
62
1964

1008
1006
6
2020
764
2341

1109
1113
28
2250
897
1353

p 52
p 55
p 57

829

859

787

EBIT
EBIT recurrent
EBIT

1197
1135

1161
1482

1463
566

Financial costs
Consolidation

26
25

25
12

1146
1084

1124
1445

1432
535

429
102

203
99

208
154

615
553

822
1143

1070
173

Revenues
Revenues total
Non recurrent revenues
Revenues recurrent
Fixed line
Mobile
International
Sum

Depreciations and amortisation

Earnings befores taxes

recurrent
total
Taxes
Minority interests
Net Income
recurrent
total
Number shares
EPS recurrent

p 52, 55, 57

33.2%
41.1%
6.1%

31.6%
48.5%
1.0%

39.6%

14.0%

F-3

27 F-3
4 F-3

400
401
402
1.5375 2.049875 2.661692

35.7%
51.0%
4.5%

38.9%

2001
5,127
1,230
808
7,165

2002
4,601
1,084
1,612
7,297

2003
4,381
1,518
110
6,009

Book equity
Minority interests
LT Interest bearing debt
Pensions
Provisions
Other LT debt
ST interest bearing debts
Other ST debts

2,630
205
827
1,252
195
54
474
1,528
7,165

2,978
293
547
1,545
209
61
78
1,586
7,297

2,548
446
371
840
210
49
154
1,391
6,009

Fixed Assets
WCR
Cash and ST investment

5,127
-352
808
5,583

4,601
-563
1,612
5,650

4,381
78
110
4,569

Book equity
Pensions
Provisions
Minority interests
Interest bearing debt

2,630
1,252
195
205
1,301
5,583

2,978
1,545
209
293
625
5,650

2,548
840
210
446
525
4,569

Fixed Assets
Current Assets (non cash)
Cash

2002
88
99

2003
153
154 in balance sheet

in balance sheet

2001

2002

2003

1687

1062

1030

0
62
1749

1085
764
741

0
897
1927

Variation WCR
Cash flow from operation

29
1658

-310
1372

733
297

Cash flow from investment activities

-1104

710

-485

Free cash flow

554

2082

-188

Dividend
D Capital
D Minority interest
D Debt

296
0
28
313
45

663
0
-11
-605
-1279

440
-325
0
-57
-822

599
601
-2
599

803
521
281
802

-1010
-764
-246
-1010

Cash flow from operation activities before WCR

Cash flow from operation activities
Non recurrent
Revenues
Non recurrent expenses
Recurrent Cash flow from operation activities

D cash
D ST investment

Number of shares

400,000,000

Cancellation of 2003
buyback

Shareholders
Belgian State
ADSB
Dexia
KBC
Sofina
Belgacom
Public
Total

200,000,001
177,619,040
3,750,000
3,750,000
2,500,000
12,380,950
0
399,999,991
9
399,932,160
67,840
187,619,040

50.00% 200,000,001
44.40% 177,619,040
0.94%
3,750,000
0.94%
3,750,000
0.63%
2,500,000
3.10%
0
0.00%
0
387,619,041

51.60%
45.82%
0.97%
0.97%
0.64%
0.00%
0.00%

Buy back 2004

Amount
Price per sha
Number shar
200,000,001
0
3,750,000
3,750,000
2,500,000
38,095,238
139,523,802
387,619,041

Buy back 2004

1000000000
26.25
38,095,238
51.6%
0.00%
0.97%
0.97%
0.64%
9.83%
36.0%

Telecom Italia
Deutsche Telecom
France Telecom
British Telecom
Swisscom
KPN
Telekom Austria
Average

0%
Beta Equity EV/MktCap
0.79
1.51
1.43
1.75
2
1.86
1.37
1.57
0.53
1.04
1.73
1.48
0.64
1.68
1.21

D/E
0.51
0.75
0.86
0.57
0.04
0.48
0.68

BetaAsset
0.52
0.82
1.08
0.87
0.51
1.17
0.38
0.76

2.5

BetaEquity

TaxRate

1.5

0.5

0
1

1.1

1.2

1.3

1.4

1.5
EV/MktCap

1.6

1.4

1.5
EV/MktCap

1.6

1.7

1.8

1.9

Valuation
Risk-free interest rate
Market risk premium
Beta asset
rA
# shares
Earnings 2004
Payout
EPS 2004
Value as cash cow
g min
DPS 2004
Value as cash cow
g min + 1%
Value

5%
6%
0.87
10.22%
400 m
808 m
50%
2.02
19.77
5.11%
1.01
19.77
5.61%
21.91

Assumptions:
Risk-free interest rate
Market risk premium
Beta asset
rA
Long term growth rate

5%
6%
0.87
10.22%
3%

Free cash flow unlevered

VU
PVTS
V
Share buy back
Pension & prov
Financial debt
Minority
Equity value
Price per share

12,931
179
13,110
1,000
1,050
525
1,639
8,896.10
22.24

V
Share buy back
Pension & prov
Financial debt
Minority
Equity value
Price per share

13,450
1,000
1,050
525
1,681
9,193.60
22.98

Using the WACC

Assumptions
Tax rate
Risk-free interest rate
Market risk premium

34%
5%
6%

Sales
EBITDA
Earnings

2004
980
13,272

5,509
2,273
808

2005
995
13,633

Comparables
EV/Sales
EV/EBITDA
P/E

2006
1,011
14,016

2.35
5.69
11.02

Beta asset

2007
1,026
14,423

2008
1,041

Beta asset
rA
Long term growth rate
Leverage L=D/V

0.87
10.22%
3%
25%

WACC calculation
Using MM
rE
WACC traditional

9.35%
11.37%
9.35%

Free cash flow unlevered

V
Share buy back
Pension & prov
Financial debt
Minority
Equity value
Price per share

14,686
1000
1050
525
1,836
10,275.11
25.69

2004
980
15,079

2005
995
15,493

2006
1,011
15,932

2007
1,026
16,396

2008
1,041

0.50
0.75
1.00
1.25

Long term growth rate

1%
2%
25.13
29.12
19.61
22.10
15.75
17.42
12.90
14.08

3%
34.70
25.35
19.50
15.50

4%
43.07
29.78
22.18
17.26