Orange Sa · EURONEXT:ORA
Orange Sa — Q3 2017 Earnings Presentation
25 slides from Orange Sa's earnings presentation, Oct 26, 2017
Slide 1: Orange financial results Q3 2017
#Q3_2017 Orange financial results Ramon Fernandez Deputy CEO, Chief Financial and Strategy Officer 26 October 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: Group Q3 2017 achievements
Q3 2017* 9m 2017* Revenue € 10.3 bn +0.9% +€95m +1.0% +€317m Q3 2017* 9m 2017* Q3 2017 Group Adjusted EBITDA** € 3.6 bn +2.1% +73€m +2.2% +203€m achievements Q3 2017* 9m 2017* Capex € 1.6 bn +2.5% +39€m +2.8% +134€m yoy : comparison with the same period of the previous year, on a comparable basis un
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 +9% +4% +57% our commercial 5.7 5.9 3.07 3.09 3.09 0.86 0.95 performance 5.4 5.5 5.6 59% 2.98 3.02 83% 0.60 0.67 0.74 47% 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q1
Slide 6: Continued revenue growth in most of our footprint
Continued Group revenue growth yoy revenue growth in +1.4% +1.0% +0.8% most of our +0.8% +0.6% +0.9% +0.5% footprint +0.1% +0.0% -0.9% -0.2% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q3 revenue evolution, telecom (in €m) Q3 2017 9m 2017 38 29 -10 Q3 2017 +0.9% +1.0% 83 5 10,2
Slide 7: Strong growth in adjusted EBITDA, underlying trend more than offset EU roaming impact
Strong growth in Adjusted Ebitda growth (telecom, yoy in %) Adj. EBITDA growth adjusted EBITDA, Adj. EBITDA growth excl. EU roaming impact +4.8% +3.5% +3.1% +4.7% underlying trend +1.6% +1.7% +1.6% more than offset +2.2% +2.5% +2.3% +0.1% -1.2% EU roaming impact -2.1% -1.6% Q1’15 Q2’15 Q3’15 Q4’15 Q
Slide 8: Sustained investment efforts to keep our competitive advantage in connectivity
Sustained 4G coverage investment Population covered in %, yoy evolution in pp efforts to keep 99.8% 99.6% 98% 94.6% 93.8% 90.9% 83% our competitive +2.4pt +0.1pt +2pt +5.6pt +10.2pt +16.6pt +6pt advantage in Poland Belgium Moldova Spain France Romania Slovakia connectivity VHBB connectable homes yoy
Slide 9: Section two: Business review
Section two Business review
Slide 10: France
Q3 2017 France Total revenues growth confirmed, with growth in fixed compensating pressure in mobile Broadband ARPU +1.6% +1.6% in m€ Q3 17 yoy cb 9m 17 yoy cb Quarterly ARPU YoY evolution +1.4% +1.4% Revenues 4,529 +0.2% 13,408 +0.2% +0.8% 33.9€ mobile services 1,635 -1.6% 4,800 -2.0% mobile equipm
Slide 11: France commercial performance
Q3 2017 France commercial performance Outstanding commercial performance on mobile net adds, mostly on high end offers 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 11.5% 11.4% +96 +108 +130 +73 +320 +
Slide 12: Spain
Q3 2017 Spain Solid revenue growth driven by growth in customer base and ARPU +4.5% in m€ Q3 17 yoy cb 9m 17 yoy cb Broadband ARPU Revenues 1,371 +6.4% 3,999 +7.9% 32.0 32.2 Quarterly ARPU, €/month 31.7 31.6 mobile services 734 +7.5% 2,070 +7.7% 30.8 32.2€ mobile equipment 136 +7.2% 407 +11.0% fixed
Slide 13: Spain commercial performance
Q3 2017 Spain commercial performance A balanced value vs. volume approach on a very competitive environment 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 +67 +61 +40 17.3% 19.9% +8 -11 +194 +199 +196 +141 +137 +1
Slide 14: Poland
Q3 2017 Poland Fixed BB performance reflects the success of VHBB strategy and convergent offers yoy in m€ Q3 17 yoy cb 9m 17 yoy cb FTTH connectable 2.2m homes Revenues 661 -1.3% 1,986 -1.0% -7.1% -6.6% +83% mobile services 288 873 mobile equipment 65 +13.3% 211 +28.7% fixed services 271 -1.7% 802 -
Slide 15: Belgium & Luxembourg
Q3 2017 Belgium & Luxembourg Solid customer net adds driven by convergence and attractive data offers yoy in m€ Q3 17 yoy cb 9m 17 yoy cb Mobile contract 2.3m customers in Belgium Revenues 316 +1.7% 934 +1.5% +0.6% +1.2% +2.2% mobile services 259 771 mobile equipment 29 +4.4% 82 -1.9% excl. M2M fixe
Slide 16: Central European countries
Q3 2017 Central European countries Solid service revenue growth boosted by data monetization and equipment sales yoy in m€ Q3 17 yoy cb 9m 17 yoy cb 4.2m 4G customers Revenues 447 +6.9% 1,290 +5.8% +2.6% +2.0% +48% mobile services 353 1,026 mobile equipment 41 +44.8% 113 +40.7% fixed services 38 +17
Slide 17: Africa & Middle East
Q3 2017 Africa & Middle East Revenues growth kept improving driven by Data and Orange Money in m€ Q3 17 yoy cb 9m 17 yoy cb New business drivers continue to Revenues 1,264 +3.1% 3,756 +2.2% sustain growth mobile services 1,062 +4.7% 3,151 +4.0% mobile equipment 17 +36.1% 53 +16.5% fixed services oth
Slide 18: Enterprise
Q3 2017 Enterprise Revenues almost stabilized, sustained by mobile equipment growth in m€ Q3 17 yoy cb 9m 17 yoy cb +17% yoy Revenues 1,778 -0.5% 5,393 -1.3% Cyberdefense voice 362 -3.4% 1,090 -4.5% Q3 revenue growth data 666 -3.8% 2,040 -3.3% IT&IS 488 +0.8% 1,515 +2.3% Cloud +37% yoy mobile 263 +1
Slide 19: Section three: 2017 guidance
Section three 2017 guidance
Slide 20: 2017 guidance confirmed
Group adjusted EBITDA 2017 > 2016 comparable basis 2017 Net debt / Adjusted Around 2x guidance EBITDA Telecom in the medium term confirmed 2017 dividend* Dividend €0.65 December 7th, 2017** *subject to shareholders’ approval 2017 interim of €0.25 **ex-date December 5th, record date December 6th, pay
Slide 21: Investor Day 7 December 2017
Uv VU = Investor Day ACE TTT 67 December 2017
Slide 22: Appendices
Appendices
Slide 23: 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 Q2’17 Q3’17 Mobile customers (excl. MVNOs) 28,612 28,966 29,508 30,033 30,489 31,150 31,624 Contract 24,581 25,069 25,759 26,486 27,090 27,842 28,433 M2M 4,277 4,611 5,115 5,711 6,228 6,829 7,068
Slide 24: Revenues yoy evolution
Revenues yoy evolution Group yoy France Africa & the Middle-East 2% 1% 10% +1.4% +0.2% 8% +1.0% +0.9% 0% +0.8% +0.8% 6% 1% +0.5% +0.6% +3.1% -1% 4% +0.1% 0.0% -0.2% 2% 0% -2% 0% -0.6% -0.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 16 17 14 15 16 17 -1% Europe Enterprise +3.9% -2% -2.3% 5%
Slide 25: EBITDA adjustments
EBITDA adjustments in €m Q3’16 cb Q3’17 actual 9m’16 cb 9m’17 actual Adjusted EBITDA 3,548 3,622 9,397 9,599 Restructuring and integration -10 - -350 -75 Litigations -3 - 37 -61 Labour related -34 -29 -114 -87 o\w Senior Part Time -34 -29 -114 -106 Portfolio review and others - - -8 -5 Reported EBIT