Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Q1 2006 Earnings Presentation
13 slides from Orange Sa's earnings presentation, Apr 27, 2006
Slide 1: 1Q 2006 Results - Cautionary Statement
1 Q 2006 A p r i l 2 7 th, 2 0 0 6 Cautionary Statement y This presentation contains forward-looking statements and information on France Telecom's objectives, notably for 2006. Although France Telecom believes that these statements are based on reasonable assumptions, these forward-looking statemen
Slide 2: 1Q06: our environment; on-going business transformation
1Q06: our environment • Confirmation of increased pressure in major European markets, with aggressive new offers More cost from competitors for the same x Mobile: more aggressive abundance voice offers from sub-scale and non-integrated players (France, UK) market share x Internet: Aggressive triple-
Slide 3: 1Q06: key figures; Group revenues by segment
1Q06: key figures Actual Comparable Actual % Comparable Euro millions 1Q05 Basis - 1Q05 1Q06 change Basis - % chg Revenues 11,621 12,542 12,813 10.3% 2.2% Gross Operating Margin 4,376 4,668 4,671 6.7% 0.1% As a % of revenues 37.7% 37.2% 36.5% G.O.M. before commercial expenses 5,766 6,343 6, 499 As a
Slide 4: 1Q06 revenues: Personal
1Q06 revenues: Personal Total France Telecom mobile Total France Telecom broadband customers* mobile customers (000) 72.6m 84.3m 86.5m 2,244 53.7m 54.1m 50.4m Western European countries 1,547 Eastern Europe 20.7m 643 19.9m 15.2m 316 Africa, Middle-East, other emerging 11.7m countries 93 7.0m 10.7m 4
Slide 5: 1Q06 revenues: Personal France; Personal UK
1Q06 revenues: Personal France €2,391m / 2.7% actual / 2.9% on a comparable basis 1Q05 - 1Q06 revenues analysis Euro millions + 116 + 24 2,391 + 19 2,324 +9 - 100 1Q 05 on a Customer base CTR Impact Voice revenues* Non-Voice Equipments & 1Q 06 comparable basis Impact Revenues others y 22.5m customer
Slide 6: 1Q06 revenues: Personal Spain; Poland & ROW
1Q06 revenues: Personal Spain €803m / 6.6% on a comparable basis 1Q05 - 1Q06 revenues analysis Euro millions + 74 +8 +4 803 - 21 - 16 753 1Q 05 on a Customer Base CTR Impact Voice Revenues* Non-voice Equipment & 1Q 06 comparable basis Impact revenues others y 10.5m customers, +10.3% yoy, - strong gr
Slide 7: 1Q06 revenues: Home; Home France
1Q06 revenues: Home €5,562m / - 0.3% actual / -2.0% on a comparable basis 1Q05– 1Q06 revenues analysis Euro millions 5,674 +48 +45 5,581 +2 5,562* - 73 + 11 -1.7% - 40 +2% -9 + 5.6% -4.8% -5% 1Q05 actual Forex impact Perimeter 1Q05 on a Home France Home Poland Home UK Home Spain Home ROW 1Q06 Impact
Slide 8: 1Q06 revenues: Home France - Consumer Services
1Q06 revenues: Home France ADSL market share % Number of Livebox (000) 50,0% 2,131 49,8% 1,559 48,3% 48,1% 990 627 416 4Q05 1Q06 1Q05 2Q05 3Q05 4Q05 1Q06 Net adds MS Market Share Consumer Services ARPU Euros 26.7 27.1 + 1.7% 4,0 5,1 + 26.2% 10,5 9,2 - 12.3% 12,2 12,9 + 5.6% End of March 05 End of Ma
Slide 9: 1Q06 revenues: Home France calling services; Enterprise
1Q06 revenues: Home France - Consumer Services - Calling Services and Internet Access €1,155m / -0.5% on a comparable basis 1Q05 - 1Q06 revenues analysis Euro millions +28 1,160 +109 1,155 -27 -38 -77 1Q 05 CTR Impact PSTN volume Broadband VoIP Narrowband 1Q 06 and tariff mix Internet Internet & Tel
Slide 10: 1Q06: Gross Operating Margin; Capex
1Q06: Gross Operating Margin Actual Comparable Euro millions 1Q05 Basis - 1Q05 1Q06 Revenues 11,621 12,542 12,813 Non labour expenses 4,941 5,520 5,857 as a % of revenues 42.5% 44.0% 45.7% Of which commercial expenses* 1,390 1,675 1,828 as a % of revenues 12.0% 13.4% 14.3% Labour expenses 2,303 2,35
Slide 11: Conclusion; Glossary (1)
Conclusion • A tough but anticipated environment x Mobile maturing markets spurring competitive pressure x Home broadband market consolidation not achieved 1Q 2006 x No favorable change in regulatory context and pending uncertainties in line with • Leadership confirmed on new fast growing Telecom ma
Slide 12: Glossary (2); Glossary (3)
Glossary (2) y French Retail ADSL Market Share (ARCEP definition): starting from 1Q06, quarterly French ADSL market share presentation will be based on ARCEP High-speed Internet Observatory methodology. Until the end of 2005, the figures published by France Telecom covered intermediate markets (such
Slide 13: A p r i l th,
1 Q 2006 A p r i l 2 7 th, 2 0 0 6 13