Orange Belgium Sa · EURONEXT:OBEL
Orange Belgium Sa — Q4 2021 Earnings Presentation
26 slides from Orange Belgium Sa's earnings presentation, Feb 11, 2022
Slide 1: Q4 2021 Financial Results
Q4 2021 Financial Results Orange Belgium February 11, 2022
Slide 2: Disclaimer
Disclaimer This presentation might contain forward-looking statements about Orange Belgium in particular for 2021. 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 co
Slide 3: Strong EBITDAaL growth of 10.7% in the last quarter of 2021
Q4 2021 Strong EBITDAaL growth of 10.7% in the last quarter of 2021 due to solid growth in retail service revenues and efficient cost management 3
Slide 4: Section one: Q4'21 Highlights
Section Q4’21 one Highlights 4
Slide 5: Go Unlimited becomes Go Extreme
Go Unlimited becomes Go Extreme 5
Slide 6: Acquisition of VOO: creation of a convergent operator
Acquisition of VOO: creation of a convergent operator + Flanders • Acquisition of 75% minus 1 share in VOO • €1.8 bn EV implying pre-synergies of Brussels 9.5x 2021e EBITDAaL • Clear path to value creation: run rate EBITDAaL synergies ~€85m Wallonia • Expected closing in 2022 Covered by OBE mobile n
Slide 7: hey! will offer 25% data boost each quarter in first year
hey! will offer 25% data boost each quarter in first year 7
Slide 8: Gradually opening 5G network
2 Gradually opening 5G network 5G to postpaid customers • Service will 1st be available in areas 1 2in partnership 5G lab in Liege to be opened in 1H’22 nd with La Grand Poste around Antwerp, then Gent, the Coast, Bruges and Part of a network of Orange 5G Lab Leuven will follow • Will be eligible fo
Slide 9: Q4'21 Key achievements
Financial Q4’21 Key achievements Revenues Retail service Operational €361.4 m revenues Belgium +5.3% yoy €242.6 m +5.7% yoy Belgium Cable customers Mobile EBITDAaL contract excl. M2M 394 k eCapex +20.8% yoy €95.1 m (excluding licence 2.7 m Belgium +10.7% yoy fees) +3.9% yoy Net adds €82.6 m Belgium
Slide 10: FY'21 Key achievements
Financial FY’21 Key achievements Revenues Retail service Operational €1,363.5 m revenues Belgium +3.7% yoy €945.1m +4.3% yoy Belgium Cable customers Mobile EBITDAaL contract excl. M2M 394 k eCapex +20.8% yoy €353.0 m (excluding licence 2.7 m Belgium +9.1% yoy fees) +3.9% yoy Net adds €204.1 m Belgiu
Slide 11: Results 2021 exceeding EBITDAaL guidance
Results 2021 exceeding EBITDAaL guidance Q1’21 H1’21 9M’21 FY’21 Guidance Revenues Low single-digit growth -1.0% +3.0% +3.1% +3.7% growth vs. 2020 Initial guidance €320-€340 EBITDAaL Slightly exceed range €161.2m €257.9m €353.0m €70.1m (announced in Q3) eCapex* €200-220 m €36.1m €81.3m €121.5m €204.
Slide 12: Section two: Operational Results
Section Operational two Results 12
Slide 13: Cable customer base continues its growth
Cable customer base continues its growth 25 23 21 22 17 17 17 12 8 Cable (‘000) 394 382 366 349 326 305 280 288 258 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Customers Net adds 13
Slide 14: Success of the Go portfolio supported mobile postpaid growth
Success of the Go portfolio enhanced the convergent strategy and supported mobile postpaid growth 2,743 37 Postpaid Net adds (‘000) 2,718 Postpaid customer base (‘000) 2,641 2,664 2,681 26 24 23 17 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 14
Slide 15: Evolution of the ARPOs: slight yoy variations
Evolution of the ARPOs: slight yoy variations Quarterly B2C convergent ARPO (€) Quarterly mobile only ARPO (€) -0.3% 0.6% -0.6% -2.8% -2.7% -3.1% -1.3% -3.1% -3.4% -4.0% 73.6 73.8 73.6 73.1 72.7 19.8 19.6 19.6 20.5 19.9 6.9 6.4 6.5 7.1 6.8 6.9 6.4 6.5 7.1 6.8 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
Slide 16: Regulatory update
Regulatory update Mobile network - Towercos Broadband, TV, fixed networks ▪ Ran sharing agreement: outcome of the Competition Authority ▪ Market analysis review: CRC initiated the review process procedure expected in Q1 2022 and published an initial questionnaire. A new decision is ▪ EMF norms: poss
Slide 17: Section three: Financial Results
Section Financial three Results 17
Slide 18: Revenues: growth driven by increase in retail service revenues
Revenues: growth driven by increase in retail service revenues 2.0% Revenues (€ m) 18.0% +7.5% +3.3% +5.3% -7.2% -1.0% 13.0% Q4 2020 361.4 343.0 346.3 330.4 325.4 67.0% 229.5 242.6 229.0 241.7 231.9 3.0% 17.0% 42.9 25.7 45.4 Q4 2021 41.0 29.0 13.0% 63.4 58.1 65.9 63.1 67.0% 54.9 7.2 5.5 6.5 13.0 10.
Slide 19: Retail service revenues: continuous growth trajectory
Retail service revenues: continuous growth trajectory 7.1% Retail service revenues (€ m) 4.6% 25.2% +3.0% +1.9% +4.9% +4.8% +5.7% Q4 2020 241.7 242.6 229.5 229.0 231.9 63.1% 64.8 66.7 57.9 60.4 63.1 7.7% 4.0% 27.5% 144.9 141.2 141.1 149.1 147.4 Q4 2021 16.3 17.2 17.3 17.9 18.7 10.4 10.2 10.4 9.9 9.8
Slide 20: Convergent service revenues: strong continuous growth
Convergent service revenues: attractiveness of the Love offers results in strong continuous growth -0.8% -0.4% +1.8% -3.7% -4.8% +20.0% +16.9% +15.5% +14.6% +15.1% Convergent service revenues (€ m) Mobile only service revenues (€ m) 63.1 64.8 66.7 144.9 141.2 141.1 149.1 147.4 57.9 60.4 Q4 2020 Q1 2
Slide 21: Revenues growing by 5.3% yoy
Revenues growing by 5.3% yoy Revenues evolution (€ m) +5.3% +361.4 +5.5 +1.0 MVNO +13.1 +0.9 SMS -2.2 Other -0.3 +8.8 Convergent service revenues Mobile only +2.6 service revenues +343.0 +1.7 Fixed & IT service revenues Q4 2020 Retail service revenues Wholesale Equipment sales Q4 2021 revenues + Oth
Slide 22: EBITDAaL increase supported by retail service revenue growth and cost management
EBITDAaL increase supported by retail service revenue growth and cost management EBITDAaL evolution (€ m) +10.7% +18.3 -6.1 Retail service revenues +13.1 +0.4 -3.4 +95.1 Equipment sales and other +5.5 revenues +85.9 Wholesale -0.3 revenues Q4 2020 Revenues Direct Labor Indirect Q4 2021 costs costs c
Slide 23: Q4 2021 eCapex
Q4 2021 eCapex eCapex (€ m) excluding spectrum fees +16.4% 22.8% 20.7% 82.6 7.2 70.9 10.2 Net debt €69.5 m 75.3 60.7 Net debt/EBITDAaL 0.2x Q4 2020 Q4 2021 Cable capex incl. CPE, IT & Network, etc. Core capex Total capex to total revenues ratio 23
Slide 24: Section four: 2022 guidance
Section 2022 four guidance 24
Slide 25: 2022 guidance
2022 guidance Guidance Revenues Low single-digit Outlook growth growth vs. 2021 ▪ Does not include the integration of VOO ▪ Covid-19 impact is still present EBITDAaL €350-370 m ▪ Renewal of spectrum in Q2 2022 ▪ Loss of Mobile Vikings as from April 2022 eCapex* €210-230 m ▪ Energy costs increase ▪ L
Slide 26: Section five: Q&A
Section five Q&A Next financial communication: 22 July 2022 26