Slide 1: Orange financial results Q1 2017
#Q1_2017 Orange financial results Ramon Fernandez Deputy CEO, Chief Financial and Strategy Officer 27 April 2017
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Orange. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there c
Slide 3: Section one: Financial results overview
Section one Financial results overview
Slide 4: Q1 2017 Group achievements
YoY Revenue € 10.1 bn +0.8% +€85m YoY Q1 2017 Group Adjusted EBITDA* € 2.6 bn +2.0% +€50m achievements YoY Capex € 1.5 bn +2.1% +€30m YoY 265 m yoy : comparison with the same period of the previous year, on a comparable basis unless otherwise specified Group * see slide 23 for EBITDA adjustments cus
Slide 5: Convergence, the bedrock of our commercial performance
Convergent B2C customer base in m Convergence, % % of broadband B2C customer base France Spain Poland the bedrock of +10% +7% +39% our commercial 5.5 5.6 3.02 3.07 0.74 performance 5.4 2.98 0.67 5.2 2.94 0.60 0.57 5.1 57% 2.88 82% 0.53 38% 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16
Slide 6: Another quarter of organic growth, mostly driven by Spain
Another quarter of Group revenue growth yoy +1.0% organic growth, +0.8% +0.8% +0.6% +0.5% mostly driven by +0.1% +0.0% Spain -0.2% -0.9% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 revenue evolution, telecom (in €m) YoY 13 9 101 3 1 10,070 Q1 2017 +0.8% +0.6% -2 -36 revenue* +€248m +€85
Slide 7: Growth in adjusted EBITDA driven by revenue growth and cost containment
Growth in adjusted Adjusted Ebitda growth (telecom, yoy in %) +4.8% EBITDA driven by +2.2% revenue growth +1.6% +1.7% +0.1% +1.6% and cost -1.2% -1.6% containment -2.1% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Adjusted EBITDA evolution (telecom, in €m) -29 2,611 YoY Q1 2017 85 +2.2% Adj
Slide 8: Sustained investment efforts to keep our competitive advantage in connectivity
Sustained % of population covered by 4G and yoy growth investment efforts to keep our 100% 99% 98% 91% 89% 83% 80% competitive +1pt +10pt +13pt +4pt +8pt +11pt +15pt advantage in Belgium Poland Moldova Spain France Romania Slovakia connectivity FTTH connectable homes YoY YoY Spain 10.0 m +35% Q1 201
Slide 9: Section two: Business review
Section two Business review
Slide 10: Q1 2017 France
Q1 2017 France BB and fixed wholesale continue to support revenue trend improvement +1.6% Q1 17 Q1 16 cb yoy cb Broadband ARPU in m€ Quarterly ARPU, €/month 33.5 33.6 33.4 33.4 Revenues 4,427 4,431 -0.1% mobile services 1,576 1,629 -3.3% 33.1 mobile equipment fixed services 147 2,564 144 2,523 +2.5%
Slide 11: France commercial performance
Q1 2017 France commercial performance Strong net adds in mobile and broadband despite a very competitive environment Mobile contract net adds (in ‘000s) and churn rate Fixed BB net adds (in ‘000s) net adds excl M2M quarterly churn rate in % FTTH ADSL and others +165 12.8% 11.5% +96 +110 +116 +130 +7
Slide 12: Q1 2017 Spain
Q1 2017 Spain Very strong performance driven by solid growth in customer base and in ARPU +3.0% in m€ Q1 17 Q1 16 cb yoy cb Broadband ARPU 31.7 31.6 Quarterly ARPU, €/month Revenues 1,290 1,189 +8.5% 30.9 30.8 mobile services 654 605 +8.1% 30.6 mobile equipment fixed services 135 500 119 466 +14.1%
Slide 13: Spain commercial performance
Q1 2017 Spain commercial performance Convergence and FTTH driving solid growth in fixed and mobile customer base Mobile contract net adds and churn rate Fixed BB net adds (in ‘000s) net adds in ‘000s quarterly churn rate in % FTTH ADSL and others +55 +45 +61 +40 17.2% 19.5% +67 +230 +211 +199 +194 +
Slide 14: Poland
Q1 2017 Poland Focus on Broadband and convergence with solid FTTH and Wireless for fixed take-up Q1 17 Q1 16 cb yoy cb YoY in m€ Revenues 652 649 +0.5% mobile services mobile equipment 287 73 307 44 -6.6% +65.0% 9.5m Mobile contract customers +11% fixed services 262 277 -5.4% other revenues 30 20 +5
Slide 15: Belgium & Luxembourg
Q1 2017 Belgium & Luxembourg Successful launch of the convergent offer LOVE. ARPU still growing thanks to ‘more for more’ strategy in m€ Q1 17 Q1 16 cb yoy cb Belgium contract ARPU growing despite EU roaming Quarterly ARPU, €/month and yoy growth Revenues 307 309 -0.7% mobile services 253 254 -0.4%
Slide 16: Central European countries
Q1 2017 Central European countries Solid revenue growth boosted by data monetization and smartphone penetration 8.1m customers in m€ Q1 17 Q1 16 cb yoy cb mobile contract +3% Revenues 409 396 +3.2% yoy mobile services 331 327 +1.2% mobile equipment 31 25 +20.5% fixed services 35 33 +6.9% other reven
Slide 17: Africa & Middle East
Q1 2017 Africa & Middle East Customer base upturn confirmed in Q1 while revenues growth impacted by calendar effect in m€ Q1 17 Q1 16 cb yoy cb New business drivers continue to Revenues 1,239 1,231 +0.7% sustain growth mobile services 1,038 1,012 +2.6% mobile equipment fixed services 17 165 17 187 +
Slide 18: Enterprise
Q1 2017 Enterprise Pressure on voice, ongoing growth of IT and integration services in m€ Q1 17 Q1 16 cb yoy cb +15% yoy Security Revenues 1,796 1,832 -2.0% revenue growth voice 358 383 -6.4% data 688 706 -2.6% IT&IS 510 497 +2.6% Cloud mobile 240 246 -2.7% revenue growth +19% yoy Revenues per segme
Slide 19: Section four: 2017 guidance
Section four 2017 guidance
Slide 20: 2017 guidance
Group adjusted EBITDA 2017 > 2016 comparable basis 2017 Net debt / Adjusted Around 2x guidance EBITDA Telecom in the medium term confirmed 2017 dividend * June 2017** €0.65 2016 balance of €0.4* *subject to shareholders’ approval Dividend December 2017 **ex-date June 12th, record date June 13th, pay
Slide 21: Appendices
Appendices
Slide 22: Appendix: B2C + B2B Orange customers in France
Appendix: B2C + B2B Orange customers in France Mobile KPIs (in thousands) Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Mobile customers (excl. MVNOs) 28,612 28,966 29,508 30,033 30,489 Contract 24,581 25,069 25,759 26,486 27,090 M2M 4,277 4,611 5,115 5,711 6,228 Excluding M2M 20,305 20,457 20,644 20,775 20,862 Pre
Slide 23: EBITDA adjustments
EBITDA adjustments in €m Q1’16 actual Q1’16 cb Q1’17 Adjusted EBITDA 2,569 2,548 2,598 restructuring and integration -113 -112 -5 litigations 39 39 15 labour related -30 -30 -24 o\w Senior Part Time -30 -30 -24 portfolio review and others -16 -6 -6 Reported EBITDA 2,449 2,439 2,578 23
Slide 24: Revenues yoy evolution
Revenues yoy evolution Group yoy France Africa & the Middle-East +1.0% -0.1% 1% +0.8% +0.8% 0% 10% +0.5% +0.6% 8% +0.1% 0.0% 6% -0.2% -1% 0% 4% -0.6% +0.7% 2% -0.9% -2% 0% -1% Q1 16 Q2 Q3 Q4 Q1 17 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 14 15 16 17 Europe Enterprise -2% -2.3% +4.5% 5% 2% 1% 0% -3% -3.4% 0% -3.8%