Orange Polska S.a. · GPW:OPL
Orange Polska — Q3 2022 Earnings Presentation
22 slides from Orange Polska's earnings presentation, Oct 25, 2022
Slide 1: Orange Polska 3Q 2022 results
Orange Polska 25 October 2022 3Q 2022 results .Grow Orange People 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 have been presented in the Note 2 to Condensed IFRS Interim Consolidated Financial Statements of the Orange Polska Group for the 9 months ended 30 September 2022 (available at https://www.oran
Slide 4: Highlights & Business review
Highlights & Business review Julien Ducarroz Chief Executive Officer 4
Slide 5: 3Q 2022 key messages
3Q 2022 key messages Worsening macro environment ▪ CPI continues to accelerate and has exceeded 17% ▪ Deteriorating macroeconomic outlook (GDP, FX, wage pressures) Resilient and good commercial performance continues ▪ Solid customer net additions and ARPO growth in all key subscription services ▪ Nu
Slide 6: 9M 2022 strong financial results
9M 2022 strong financial results 2022 low single digit flat/low single digit guidance PLN 1.7-1.9bn growth growth 9M 2022 Results Revenues EBITDAaL eCAPEX in PLN 9.1 bn 2.3 bn 0.9 bn YoY +4.0% +3.8% -18% 6
Slide 7: Solid and consistent performance in all key subscription services
Solid and consistent performance in all key subscription services: ARPO growth coupled with customer base expansion Fibre HHC with 17.7% PLN Mobile-only handset ARPO PLN Convergence ARPO +2.1% yoy 6.8 M adoption rate 28.9 +2.1% yoy 115.6 Steady growth pace of Strong demand for Orange fibre Good net
Slide 8: Value strategy and further cost transformation necessary
Value strategy and further cost transformation necessary to combat growing inflationary pressure Inflation is accelerating… …and we need both topline and costs measures to address it CPI >17% yoy value strategy cost savings 8
Slide 9: Financial review
Financial review Jacek Kunicki Chief Financial Officer 9
Slide 10: Strong financial results in 3Q/9M
Strong financial results in 3Q/9M in PLNm 3Q’22 yoy 9M’22 yoy ▪ Strong performance in all major lines revenues 3,123 +8.2% 9,109 +4.0% ▪ Comparable basis for MTR/FTR EBITDAaL 822 +3.9% 2,342 +3.8% ▪ Margin from key revenue lines mitigated surging energy prices % of revenues 26.3% -1.1pp 25.7% -0.1pp
Slide 11: 3Q revenue +8.2% yoy with strong performance in all major lines
yoy growth no longer affected by negative 3Q revenue +8.2% yoy Revenue evolution reg. impact (comparable MTR/FTR) with strong performance (yoy change in %) 8.3% 8.2% 7.1% in all major lines 7.2% 6.9% 5.0% 3.3% 2.9% 3.4% ▪ Acceleration of revenue dynamics due to Total reported 0.4% solid growth in ma
Slide 12: 3Q EBITDAaL +3.9% yoy mainly due to very good direct margin
3Q EBITDAaL +3.9% yoy EBITDAaL evolution mainly due to very good (yoy change in %) direct margin performance 6.6% 8.1% 5.6% 3.9% 1.8% ▪ Direct margin up 3% yoy: ▪ Driven by expanding direct margin 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 in all key revenue lines ▪ Indirect costs growth limited to 2% EBITDAaL e
Slide 13: Cash generation in 9M 12% higher yoy
Cash generation in 9M Cash flow evolution breakdown in 9M 2022 in PLNm 12% higher yoy driven by EBITDAaL growth and yoy change +113 -241 +214 +19 -15 +90 lower cash capex 2,365 +61 -1,319 +101 -382 826 Net cash from Change Cash Repayment in Cash Organic operating proceeds of finance cash flow activi
Slide 14: Summary
Summary Julien Ducarroz Chief Executive Officer 14
Slide 15: Summary
Summary Strong 9M results confirm our growth ambitions and ability to adapt to a challenging environment We are well on track to reach our full-year objectives In 4Q focus on high commercial season All hands on board to minimise future impact of accelerating inflation 15
Slide 16: Q&A
Q&A We invite you to join our action to reduce energy consumption this winter: www.orange.pl/razemdlaplanety/energia 16
Slide 17: Appendix
Appendix 17
Slide 18: Details of bottom line evolution in 3Q and 9M 2022
Details of bottom line evolution in 3Q and 9M 2022 in PLNm 3Q’22 3Q’21 Change 9M’22 9M’21 Change EBITDAaL 822 791 +31 2,342 2,256 +86 D&A of PPE and intangible assets -516 -546 +30 -1,526 -1,664 +138 Add-back interest expense on lease liabilities 27 13 +14 65 40 +25 Adjustment for the costs related
Slide 19: Details of organic cash flow evolution in 3Q and 9M 2022
Details of organic cash flow evolution in 3Q and 9M 2022 in PLNm 3Q’22 3Q’21 Change 9M’22 9M’21 Change Net cash flow from operating activities before change in 734 741 -7 2,365 2,252 +113 working capital Change in working capital -4 207 -211 61 302 -241 Net cash flow from operating 730 948 -218 2,42
Slide 20: We successfully combine growth with social responsibility
We successfully combine growth with social responsibility Environment Social Governance We have clear climate/environmental We make new technologies a Our corporate governance is goals and tangible results supporter of economic and social designed to provide responsible ▪ Climate goals and performan
Slide 21: Glossary (1/2)
Glossary (1/2) 4G/LTE Fourth generation of mobile technology, sometimes called LTE (Long Term Evolution) 5G Fifth generation of mobile technology, which is the successor to the 4G mobile network standard Fibre customer base (retail + wholesale)/ Total households connectable to our fibre network (own
Slide 22: Glossary (2/2)
Glossary (2/2) Fixed broadband-only Revenues from fixed broadband offers (excluding B2C convergent offers and equipment sales) including services TV and VoIP services FTE Full time equivalent FTR Fixed termination rate HHC (Households connectable) in fibre Households where broadband access service b