Slide 1: Orange Financial Results FY 2022
Orange Financial Results #FY_2022 16th February 2023 Christel Heydemann CEO Ramon Fernandez Deputy CEO Finance, Performance and Development 1 FY22 results 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Orange's financial situation, results of operations and strategy. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to
Slide 3: Section One: FY 2022 highlights
Section One FY 2022 highlights FY22 results 3
Slide 4: Q4 Key highlights
Q4 Key highlights Strong Q4 fueled solid FY financial results: guidance reached Q4 EBITDAaL up +8.5% yoy Increase in customer satisfaction NPS* improvement in France, churn reduction in France, Spain, Poland Orange Money back to growth Commercial momentum of TOTEM: new agreement with Iliad in France
Slide 5: Our commitments for environment, digital inclusion and diversity
Our commitments for environment, digital inclusion and diversity Digital inclusion develop connectivity and inclusive services Ambitions FTTH connectable homes 64.9 m 69m / 2023 Orange Digital Centers 18 25 / 2025 Beneficiaries of digital skills training 1m 2.5m / 2025 Environment reduce our CO2 eq.
Slide 6: 2022 financial achievements
2022 financial achievements Revenue EBITDAaL eCapex FY 2022 Q4 2022 FY 2022 Q4 2022 FY 2022 Q4 2022 €43.5bn €11.4bn €13.0bn €3.4bn €7.4bn €2.2bn +0.6% +1.3% +2.5% +8.5% -0.7% +8.9% yoy yoy yoy yoy yoy yoy Organic Cash Flow Net debt / EBITDAaL FY 2022 FY 2022 €3.1bn 1.93x +27.4% yoy (Telecom) (Teleco
Slide 7: Section Two: Financial results overview
Section Two Financial results overview FY22 results 7
Slide 8: Revenue sustained growth
FY 2022 revenue growth contribution per segment (yoy in €m) Revenue +0.6% +0.2% +6.4% sustained growth 43,471 14 -27 43,195 414 +2.3% -193 -73 140 -1.1% -1.5% FY 21 cb France Spain other MEA Enterprise Others FY 22 European countries Q4 2022 FY 2022 FY 2022 revenue evolution per activity (yoy in €m)
Slide 9: EBITDAaL reaching €13bn in line with guidance
EBITDAaL FY 2022 Group EBITDAaL evolution per segment (yoy, in€m) reaching +2.5% €13bn in line +11.3% +59.7% 12,963 with guidance -186 +10.0% 141 +5.4% 262 +5.8% 13 19 +0.4% -18.8% Q4 2022 FY 2022 12,645 25 92 -47 yoy yoy Group +8.5% +2.5% -4.0% EBITDAaL +€269m +€318m yoy yoy Telecom* +7.9% +2.4% FY
Slide 10: Net income
FY 2022 Group net income evolution (yoy, in €m) +€1,839m -138 -303 1,412 Net income 2,885 -2,464 2,617 up 778 318 129 FY 21 EBITDAaL cb Impairment Non recurring Financial Income Tax Disposal others FY 22 of goodwill operating result of assets items (adjustments)* 1 2 3 Includes FY 2022 1 • the base
Slide 11: Scale Up cost efficiency program
€1bn net indirect cost savings reached (excluding inflation) in 2022, one year in advance Scale Up €1bn cost net indirect cost savings vs 2019 net indirect cost savings vs 2019 excluding inflation €0.7bn efficiency program >€0.3bn >€0.1bn 2019 2020 2021 2022 €700m Breakdown of €700m cumulated net in
Slide 12: eCapex decrease
eCapex decrease FY 2022 FY 2022 yoy Q4 2022 yoy FTTH deployment peak eCapex -0.7% +8.9% passed -€56m €183m €7.37bn FY 2022 eCapex evolution per segment (yoy in €m) FY 2022 FTTH connectable homes per segment (in m HH) -0.7% MEA 7,426 Central Europe 3.2 7,371 4.7 47 Poland 7.1 58 7 -365 64.9m HH 33.5
Slide 13: Organic Cash Flow reaching €3.1bn
Organic Cash Flow (OCF)* reaching €3.1bn in 2022 (in €m) Organic 5,745 +€0.7bn Cash Flow* -219 -804 yoy -1,033 strong growth -630 3,058 up +27.4% EBITDAaL -eCapex change in net financial income taxes paid other operational OCF* 2022 (telecom activities) working capital interests paid** items (incl.
Slide 14: Section Three: Business Review
Section Three Business Review 14 FY22 results 14
Slide 15: Q4 2022 France
Q4 2022 France EBITDAaL increase in €m Q4 22 yoy cb FY 22 yoy cb Revenues 4,691 +0.1% 17,983 -1.1% +2.4% Net Promoter Score** Retail services 2,762 +0.8% 10,976 +1.2% Q4 Retail services Wholesale 1,260 -2.1% 4,938 -6.6% growth excl. PSTN improvement by +6 pts YoY Equipment sales 431 +2.0% 1,323 +4.2
Slide 16: Q4 2022 Europe
Q4 2022 Europe Retail fueling EBITDAaL growth in €m Q4 22 yoy cb FY 22 yoy cb Retail services confirming growth Revenues 2,873 +2.1% 10,962 +0.6% thanks to price increases yoy Retail services 1,902 +2.9% 7,388 +1.5% Wholesale +2.9% 466 -6.9% 1,828 -7.0% Equipment sales 455 +7.1% 1,559 +4.0% EBITDAaL
Slide 17: Q4 2022 Spain
Q4 2022 Spain Confirming back to EBITDAaL growth in 2023 in €m Q4 22 yoy cb FY 22 yoy cb Recovery plan fueling EBITDAaL improvement Revenues 1,204 +2.3% 4,647 -1.5% -1.5% Retail services 790 -0.2% 3,136 -1.9% Wholesale 234 +2.4% 878 -2.4% -6.7% Equipment sales 179 +15.5% 632 +1.7% EBITDAaL 1,111 -4.
Slide 18: Q4 2022 Africa & Middle East
Q4 2022 Africa & Middle East Double digit EBITDAaL growth Orange Money back to growth (yoy revenue growth) in €m Q4 22 yoy cb FY 22 yoy cb Revenues 1,756 +5.7% 6,918 +6.4% +5.7% Retail services 1,550 +6.5% 6,112 +7.2% Wholesale 167 -1.0% 663 +1.1% Equipment sales 25 -13.8% 104 -6.6% EBITDAaL 2,584 +
Slide 19: Q4 2022 Enterprise
Q4 2022 Enterprise OBS EBITDAaL decrease reduced in H2, recovery plan to be accelerated in €m Q4 22 yoy cb FY 22 yoy cb Solid annual growth in IT&IS Revenues 2,136 +0.9% 7,930 +0.2% Fixed only services 866 -6.7% 3,466 -6.7% IT & integration services 1,010 +9.8% 3,489 +6.6% Mobile 260 -3.2% 975 +5.0%
Slide 20: FY 2022 TOTEM
FY 2022 TOTEM Robust growth of external hosting revenues in €m Q4 22 yoy cb FY 22 yoy cb Revenues 188 +25.0% 685 +14.9% Commercial success in Q4 Wholesale 188 +25.0% 685 +14.9% Hosting commercial contract with Iliad in France EBITDAaL 371 +5.4% eCAPEX 142 +68.6% External hosting revenues growth : +1
Slide 21: Section Four: Guidance
Section Four Guidance 21 FY22 results 21
Slide 22: Guidance
Guidance 2022 objectives achieved confirming the Organic Cash Flow ramp-up towards 2023 2022 objectives fully 2023 achieved Growth EBITDAaL yoy, cb Growth +2.5% Slight growth between +2.5 to +3% eCAPEX ≤ €7.4bn €7.37bn Strong decrease Organic Cash Flow ≥ €2.9bn €3.1bn ≥ €3.5bn (telecom) Net debt / A
Slide 23: Solid trend of Organic Cash Flow growth
Solid trend of Organic Cash Flow growth towards at least €3.5bn in 2023 Organic Cash Flow weight on Executive Team remuneration (in €bn) scheme : 50% >2.6 * Guidance >2 >2.3 >2.2 ≥ 2.9 ≥ 3.5 achieved 3.1 2.7 * 2.5 2.3 2.4 2019 2020 2021 2022 2023 *Before allocation of the tax refund received in 2020
Slide 24: Q&A
Q&A FY22 results 24
Slide 25: Annexes
Annexes 25 FY22 results 25
Slide 26: Convergent B2C customer base in million
Convergent B2C customer base in million % of broadband B2C customer base Convergence, France 53% 5.95 85% 3.02 Spain Poland 1.62 69% the bedrock of 5.91 5.91 5.91 53% 5.92 3.01 2.99 2.98 1.59 our strategy 1.58 2.96 85% 5.91 5.91 5.91 5.92 5.95 67% 1.56 1.55 1.62 3.02 3.01 2.99 2.98 2.96 1.55 1.56 1.
Slide 27: Change in net income
Change in net income FY 2021 FY 2021 FY 2022 (in millions euros) historical cb actual EBITDAaL 12,566 12,645 12,963 Adjustments* 623 (399) Depreciation & amortization of fixed assets (7,074) (7,035) Impairment of goodwill & fixed assets (3,719) (874) Share of profit (losses) of associates and JV 3 (
Slide 28: Adjustments
Adjustments FY 2021 FY 2021 FY 2022 (in millions euros) historical cb actual Restructuring programs costs (422) 12635.25 (177) Acquisitions and integration costs (51) (74) Significant litigations (134) (9) Specific labour expenses (1,276) (372) o\w Senior Part Time (1,262) (367) Fixed assets, invest
Slide 29: Change in net debt
Change in net debt FY 2021 FY 2022 (in millions of euros) Historic actual EBITDAaL - eCAPEX (telecom activities) 5,060 5,745 Change in eCAPEX payables (205) 65 Change in working capital requirements 120 (284) 1 Net interest paid (including dividends received) (997) (804) Income taxes paid (955) (1,0
Slide 30: Finance table details by segment
Finance table details by segment France Europe Spain in €m Q4 22 yoy cb FY 22 yoy cb in €m Q4 22 yoy cb FY 22 yoy cb in €m Q4 22 yoy cb FY 22 yoy cb Revenues 4,691 +0.1% 17,983 -1.1% Revenues 2,873 +2.1% 10,962 +0.6% Revenues 1,204 +2.3% 4,647 -1.5% Retail services 2,762 +0.8% 10,976 +1.2% Retail se