Orange Polska S.a. · GPW:OPL
Orange Polska — Q3 2021 Earnings Presentation
24 slides from Orange Polska's earnings presentation, Oct 26, 2021
Slide 1: Orange Polska 3Q'21 results
Orange Polska 3Q’21 results 26 October 2021 .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 Notes 2 and 3 to Condensed IFRS Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 30 September 2021 (available at https:/
Slide 4: Highlights & Business review
Highlights & Business review Julien Ducarroz Chief Executive Officer 4
Slide 5: 3Q 2021 performance key messages
3Q 2021 performance key messages Strong financial results ▪ Good ARPO trends continue ▪ Revenue growth affected by regulatory impact (immaterial impact on profits) Steady commercial performance ▪ Strong fibre results Return to office work in sanitary regime ▪ Hybrid model implemented with minimum 2
Slide 6: Strong 9M financial results, in line with the full year plans
Strong 9M financial results, in line with the full year plans 9M 2021 Revenues EBITDAaL eCAPEX in PLN 8.76 bn 2.26 bn 1.09 bn YoY +3.9% +5.3% -9.9% FY 2021 PLN 1.7-1.9bn, low single digit low-to-mid single (depending on guidance growth digit growth proceeds from asset disposal) 6
Slide 7: Convergence
▪ convergence Convergence ARPO up 7% yoy Convergent customer base up 6% yoy revenues fuelled by (in m) (in PLN) growth of ARPO and +7% +6% customer base 111.4 113.2 1.44 1.52 1.53 ▪ good demand for 105.5 fibre continues: 53k +31 +14 +14 net adds in 3Q 3Q'20 2Q'21 3Q'21 3Q'20 2Q'21 3Q'21 net adds in
Slide 8: Mobile
Mobile: Mobile-only handset ARPO Mobile handset customer base up growing due to roaming by 5% yoy ▪ Steady growth of (in PLN) (in m) +2.5%* +5% customer base 8.27 8.36 ▪ ARPO dynamics 28.3 7.99 27.6 27.7 helped by roaming +110 +83 +91 recovery 3Q'20 2Q'21 3Q'21 3Q'20 2Q'21 3Q'21 net adds in k *excl.
Slide 9: Financial review
Financial review Jacek Kunicki Chief Financial Officer 9
Slide 10: Strong financial performance in 3Q/9M
Strong financial performance in 3Q/9M in PLNm 9M’21 yoy 3Q’21 yoy ▪ Driven by convergence, mobily-only, roaming revenues 8,757 +3.9% 2,885 +3.3% recovery and IT/IS ▪ MTR/FTR cuts affect wholesale EBITDAaL 2,256 +5.3% 791 +6.6% ▪ Fuelled by profitable revenue expansion ▪ Full-year guidance confirmed
Slide 11: 3Q revenue up 3.3% yoy driven by retail telecom services and IT/IS
3Q revenue up 3.3% yoy Revenue evolution yoy change driven by retail telecom services and IT/IS 6.8% 8.3% 3.6% 4.3% 2.3% 4.1% 4.5% 3.3% 2.8% Total reported -2.7% ▪ Core telecom services* (+8% yoy) Core telecom services* Growth improving due to strong ARPO 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 (commercial va
Slide 12: EBITDAaL +6.6% yoy in 3Q and +5.3% yoy in 9M
EBITDAaL +6.6% yoy in 3Q EBITDAaL evolution (yoy change in %) and +5.3% yoy in 9M ▪ Direct margin up 5% yoy: 5.3% 6.6% ▪ Driven by growth of core telecom 3.8% services & IT/IS 0.4% -4.1% ▪ Helped by low comparable base: covid-related provisions in 3Q’20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 ▪ Indirect costs
Slide 13: 3Q net income reflects strong operating activity and gain
3Q net income reflects Evolution from EBITDAaL to the bottom line in 3Q 2021 (PLNm) strong operating activity and gain yoy change related to FiberCo +49 +72 +31 -3 -48 +11 +112 +1,421 +1,533 transaction +1,421 1,586 ▪ Growing EBITDAaL 791 -546 ▪ Lower depreciation ▪ PLN 28m impact of extension of ec
Slide 14: EBITDAaL translates into strong cash generation
EBITDAaL translates into Cash flow evolution breakdown strong cash generation in 9M 2021 in PLNm yoy change +192 +106 +29 +50 -59 +318 2,252 +302 9M OCF up 76% yoy driven by: -1,533 ▪ 5% EBITDAaL growth +82 -367 736 ▪ Lower working capital requirement (partly due to timing) Change Net cash from Cash
Slide 15: Summary
Summary Julien Ducarroz Chief Executive Officer 15
Slide 16: Summary
Summary 9M results confirm our growth ambitions In 4Q focus on high commercial season We are well on track to reach our full-year financial objectives Focus to adapt to the new, inflationary environment 16
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: Settlements between OPL and FiberCo
Settlements between OPL and FiberCo Current picture of settlements between OPL and Światłowód Inwestycje (FiberCo) Revenues wholesale ▪ telco services: infrastructure rental, transmission network Costs labour costs ▪ investment process and network maintenance interconnect costs ▪ BSA access fee per
Slide 20: Details of bottom line evolution in 9M and 3Q 2021
Details of bottom line evolution in 9M and 3Q 2021 in PLNm 9M’21 9M’20 Change 3Q’21 3Q’20 Change EBITDAaL 2,256 2,143 +113 791 742 +49 D&A of PPE and intangible assets -1,664 -1,862 +198 -546 -618 +72 Add-back interest expense on lease liabilities 40 47 -7 13 15 -2 Adjustment for the impact of emplo
Slide 21: Details of organic cash flow evolution in 9M and 3Q 2021
Details of organic cash flow evolution in 9M and 3Q 2021 in PLNm 9M’21 9M’20 Change 3Q’21 3Q’20 Change Net cash flow from operating activities 2,252 2,060 +192 741 654 +87 before change in working capital Change in working capital 302 196 +106 207 4 +203 Net cash flow from operating activities 2,554
Slide 22: We successfully combine growth with social responsibility
We successfully combine growth 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 with the envir
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 HHC (Households connectable) in fibre Households where broadband access service based on fibre technology can be re