Orange Belgium Sa · EURONEXT:OBEL
Orange Belgium Sa — H1 2022 Earnings Presentation
22 slides from Orange Belgium Sa's earnings presentation, Jul 22, 2022
Slide 1: H1 2022 Financial Results
H1 2022 Financial Results Orange Belgium July 22, 2022
Slide 2: Disclaimer
Disclaimer This presentation might contain forward-looking statements about Orange Belgium in particular for 2022. 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: Sustained financial performance despite macro-economic context and competitive environment
H1 2022 Sustained financial performance despite macro- economic context and competitive environment nationwide 3
Slide 4: Section one: H1'22 Highlights
Section H1'22 one Highlights 4
Slide 5: Orange Belgium obtained the maximum amount of key 5G spectrum available in the auction
Orange Belgium obtained the maximum amount of key 5G spectrum available in the auction 5G • Allowing it to provide outstanding coverage and capacity for future 5G services • Providing the best experience to our customers in an efficient and sustainable way • Confirms the start of its phasing out of
Slide 6: Orange Belgium launches its new generation of TV decoders
Orange Belgium launches its new generation of TV decoders Open your eyes to a new digital world of content in continuous evolution • Compact TV Decoder based on Android TV • 4K capable, High- performance chipset • Direct access to the native • Eco-friendly box & applications of content remote provid
Slide 7: Orange Belgium adapts its prices and upgrades the data volume in a more for more strategy
Orange Belgium adapts its prices and upgrades the data volume in a more for more strategy From To From To From To From To While providing 20€ 21€ 30€ 32€ 40€ 43€ adapted offers in a 10€ 11€ 10GB 11GB 15GB 17GB 60GB 70GB segmented approach 1,5GB 2GB From To From To Multi Products 21€ 22€ 31€ 33€ Adva
Slide 8: Orange Belgium launches an Orange Digital Center
Orange Belgium launches an Orange Digital Center, a major hub for initiatives focused on digital inclusion and innovation • Free and open to all, the Orange Digital Center will promote learning based on concrete projects, training courses, workshops and conferences for a wide range of publics • Redu
Slide 9: Regulatory update
Regulatory update Mobile network Broadband, TV, fixed networks ▪ Ran sharing agreement: outcome of the Competition Authority ▪ Market analysis review: CRC initiated the review process procedure expected in Q3 2022 and published an initial questionnaire. A new decision is possible around mid-2023 ▪ I
Slide 10: H1'22 Key achievements
Financial H1'22 Key achievements Revenues Retail service Commercial €677.3 m revenues Belgium +3.3% yoy €490.5 m +6.4% yoy Belgium Cable customers Mobile EBITDAaL contract excl. M2M 417 k eCapex +13.9% yoy €166.8m (excluding licence 2.8 m Belgium +3.5% yoy fees) +3.5% yoy Net adds €86.0 m Belgium +5
Slide 11: Section two: Commercial and Financial Results
Section Commercial two and Financial Results 11
Slide 12: Cable and Mobile Postpaid customer base and net adds
Cable and Mobile Postpaid customer base and net adds 38 39 61 30 29 46 22 41 33 Cable (‘000) 417 394 16 366 2,743 2,775 2,641 2,681 2,594 326 288 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 Customers Net adds Postpaid Customer base (’000) Postpaid Net adds (’000)
Slide 13: Evolution of the B2C Convergent and Mobile only ARPOs
Evolution of the B2C Convergent and Mobile only ARPOs B2C convergent ARPO (€) Mobile Only ARPO (€) 1.5% 0.1% -3.0% -2.0% -3.5% -2.0% -2.5% -2.2% -0.6% -3.5% 20.0 20.2 19.6 20.2 19.9 75.5 74.5 73.7 72.9 73.3 6.6 7.2 6.5 7.0 5.8 6.6 7.2 6.5 7.0 5.8 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H1 2020 H2 20
Slide 14: Revenues: growth driven by increase in retail service revenues
Revenues: growth driven by increase in retail service revenues Revenues (€ m) -0.1% +3.0% +4.3% +3.3% -3.6% 707.6 678.3 655.9 677.3 636.6 460.2 484.3 445.8 460.8 490.5 56.1 76.2 70.0 71.1 71.5 118.8 127.3 113.0 129.0 106.6 15.9 14.6 12.0 23.3 8.8 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 Retail servic
Slide 15: Retail service revenues: continuous growth trajectory
Retail service revenues: continuous growth trajectory Retail service revenues (€ m) +8.0% +3.5% +3.4% +5.2% +6.4% 484.3 490.5 445.8 460.2 460.9 131.5 139.6 106.3 114.4 123.5 290.7 294.5 282.3 296.5 289.4 28.9 30.8 34.5 36.6 39.3 19.9 20.4 20.6 19.7 22.2 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 Conver
Slide 16: Evolution of the Mobile Only and Convergent Services Revenues
Evolution of the Mobile Only and Convergent Services Revenues +34.4% +23.7% +16.2% +14.9% +13.0% +0.6% +2.5% -5.5% -3.7% -2.9% Convergent service revenues (€ m) Mobile only service revenues (€ m) 139.6 131.5 290.7 294.6 296.5 289.4 123.5 282.3 114.4 106.3 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H1 2
Slide 17: Revenues growing by 3.3% yoy
Revenues growing by 3.3% yoy Revenues evolution (€ m) +3.3% Visitor +7.2 roaming +29.7 +1.0 other WHS -3.9 MVNO Convergent -2.0 +677.3 +16.1 service revenues -10.6 Voice / SMS -2.0 -6.3 +7.1 Mobile service revenues +677.3 +4.8 Fixed & IT service +655.9 +1.7 revenues H1 2021 Retail service revenues W
Slide 18: 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) +3.5% +21.5 Retail service revenues +29.7 -12.7 -3.2 +166.8 +0.1 +161.2 Wholesale -6.4 revenues -1.8 Equipment sales and other revenues H1 2021 Revenues Direct Labor Indirect H1 2022 costs costs
Slide 19: H1 2022 eCapex
H1 2022 eCapex eCapex (€ m) excluding spectrum fees +5,8% 86,0 Net debt 81,3 €65.3 m Net debt/EBITDAaL 0.2x H1 2021 eCapex 19
Slide 20: Section three: 2022 guidance
Section 2022 three guidance 20
Slide 21: 2022 guidance confirmation
2022 guidance confirmation Guidance Revenues Low single-digit Outlook growth growth vs. 2021 ▪ Does not include the integration of VOO ▪ Includes Loss of Mobile Vikings EBITDAaL €350-370 m as from April 2022 ▪ Includes Energy costs increase ▪ Includes Labour cost indexation eCapex* €210-230 m * Excl
Slide 22: Section four: Q&A
Section four Q&A 22