Orange Polska S.a. · GPW:OPL
Orange Polska — Q1 2021 Earnings Presentation
24 slides from Orange Polska's earnings presentation, Apr 22, 2021
Slide 1: Orange Polska 1Q'21 results
Orange Polska 1Q’21 results 22 April 2021 1
Slide 2: Forward looking statement
Forward looking statement This presentation contains 'forward-looking statements' including, but not limited to, statements regarding anticipated future events and financial performance with respect to our operations. Forward-looking statements can be identified by the fact that they do not relate s
Slide 3: Reconciliation of operating performance measure to financial statements
Reconciliation of operating performance measure to financial statements Disclosures on performance measures, including information on data restatements are presented in the Note 2 and 4 to Condensed IFRS Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 31
Slide 4: Highlights & Business review
Highlights & Business review Julien Ducarroz Chief Executive Officer 4
Slide 5: 1Q 2021 key messages
1Q 2021 key messages FiberCo partnership facilitates further fibre expansion ▪Rollout to new 1.7m households independent of OPL balance sheet Solid commercial performance despite pandemic restrictions ▪Strong demand for fibre continues Strong 1Q financial results in line with full-year plans ▪Driven
Slide 6: Strong 1Q financial results benefit from our successful commercial strategy of the last quarters
Strong 1Q financial results benefit from our successful commercial strategy of the last quarters 1Q 2021 Revenues EBITDAaL eCAPEX in PLN 2.92 bn 0.71 bn 0.45 bn YoY +4.1% +5.3% +30% FY 2021 low single digit low single digit PLN 1.7-1.9bn, (depending on guidance growth vs 2020 growth vs 2020 proceeds
Slide 7: FiberCo (Światłowód Inwestycje) as a new concept to continue fibre footprint expansion
FiberCo (Światłowód Inwestycje) as a new concept to continue fibre footprint expansion Strong customer demand, low broadband penetration outside of big cities and good returns on investment c.PLN 1,374m so far motivate us to continue fibre rollout Proceeds for OPL from 50% stake sale c.PLN 2,748m 10
Slide 8: Strong demand for fibre continues, +54k net adds in 1Q
Fibre customer base up 38% yoy Adoption rate reaches 16% Strong demand for and 7% qoq (in k) network rollout fibre continues +63 +54 HHC in m 16% +44 15% +54k net adds in 1Q 725 779 13% 5.0 5.2 564 4.4 ▪ OPL fibre available in 168 cities 1Q'20 4Q'20 1Q'21 1Q'20 4Q'20 1Q'21 ▪ c.50% of the footprint i
Slide 9: Convergence and FBB: solid growth thanks to value
Convergence and FBB: Convergence ARPO growth Convergent customer base up 8% yoy ▪ solid growth thanks accelerating to +5% yoy (in PLN) (in m) to value +5% +42 +20 +18 1.50 109.6 ▪ volumes lower due 104.8 107.1 1.39 1.48 to pandemic restrictions 1Q'20 4Q'20 1Q'21 1Q'20 4Q'20 1Q'21 net adds in k FBB-o
Slide 10: Improving trends in mobile reflect effective value strategy
Mobile handset ARPO trend Mobile handset customer base up by 5% yoy Improving trends improved (in m) in mobile reflect (in PLN) -3% -1% ex. roaming +5% effective value 28.0 27.2 8.10 8.18 27.3 7.81 strategy +62 +110 +88 1Q'20 4Q'20 1Q'21 1Q'20 4Q'20 1Q'21 net adds in k Prepaid ARPO growth reflects h
Slide 11: #OrangeGoesGreen
#OrangeGoesGreen Climate responsibility is an indispensable part of our strategy and our daily activities By 2025 Orange Polska will achieve Orange Polska to -65% reduction in CO2 emissions in Scopes 1 achieve goal of Net and 2 of the GHG Protocol (vs 2015) Zero Carbon by 2040 through the following
Slide 12: Financial review
Financial review Jacek Kunicki Chief Financial Officer 12
Slide 13: 1Q financial results key highlights
1Q financial results key highlights in PLNm 1Q’21 yoy ▪ Driven by growth of convergence, equipment, revenues 2,918 +4.1% IT/IS and energy resale EBITDAaL 709 +5.3% ▪ Growth becomes more sustainable as it is derived from both direct margin and cost savings % of revenues 24.3% +0.3pp eCAPEX 445 +30% ▪
Slide 14: 1Q revenue up 4.1% yoy driven by core telecom services, equipment, IT/IS
1Q revenue up 4.1% yoy Revenue evolution yoy change driven by core telecom services, equipment, IT/IS 2.5% 4.1% 2.8% and energy resale 0.9% -2.7% 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Revenue evolution breakdown in PLNm ▪ Core telecom services* (+4.3% yoy) growth improving as a result of strong +4.3% custom
Slide 15: 1Q EBITDAaL up 5.3% yoy reflecting growing direct margin and cost savings
1Q EBITDAaL up 5.3% yoy EBITDAaL evolution reflecting growing direct (yoy change in PLNm) margin and cost savings +5.3% 709 673 Legacy Growth services services 1Q’20 +20 +16 1Q’21 direct indirect costs margin Improving direct Indirect costs Employment evolution ▪ Direct margin up 1% yoy: margin tren
Slide 16: Net income evolution
Net income evolution supported by ▪ growing EBITDAaL Evolution from EBITDAaL to the bottom line in 1Q 2021 ▪ lower depreciation (PLNm) (PLN 33m impact of asset useful life extension) ▪ lower finance costs yoy change +36 +32 -3 -7* -30** +66 -17 +77 709 -576 +13 -10 -20 -66 -11 39 D&A of Interest Adj
Slide 17: Cash flow generation
Cash flow generation Cash flow evolution breakdown reflects in 1Q 2021 in PLNm ▪ growing EBITDAaL yoy change +37 +240 +7 +9 -17 +276 ▪ working capital 748 +145 supported by different -601 +24 -118 timing of payments 198 Net cash from Change Cash Repayment in Cash Organic operating proceeds of financ
Slide 18: Summary
Summary Julien Ducarroz Chief Executive Officer 18
Slide 19: Summary
Summary 1Q results in line with full-year plans driven by successful volume and value performance in 2H 2020 In 2Q strong focus on commercial activity and further digital transformation FiberCo project allows us to continue fibre rollout and be prepared for upcoming 5G rollout We are well on track t
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: We successfully combine business turnaround with social responsibility
We successfully combine business turnaround with social responsibility Environment Social Governance We implement our business goals We make new technologies a Our corporate governance is with respect for ecology rules and in supporter of economic and social designed to provide responsible harmony w
Slide 23: Glossary (1/2)
Glossary (1/2) 4G fourth generation of mobile technology, sometimes called LTE (Long Term Evolution) ARPO Average Revenue per Offer data user a customer who used mobile data transmission in a given month Revenues from B2C convergent offers (excluding equipment sales). A convergent offer is defined a
Slide 24: Glossary (2/2)
Glossary (2/2) Convergent services, mobile retail and wholesale, fixed broadband, IT and integration services, Growth services equipment and B2B network solutions and adjacent services Households (HH) connectable in fibre Households where broadband access service based on fibre technology can be ren