Slide 1: Orange financial results Q3 2018
#Q3_2018 Orange financial results Ramon Fernandez Deputy CEO, Finance, Performance and Europe 25 October 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements about Orange, particularly objectives and trends regarding Orange’s financial situation, investments, results of operations, business and strategy. These forward-looking statements do not represent forecasts within the meaning of Eu
Slide 3: Section one: Q3 2018 highlights
Section one Q3 2018 highlights
Slide 4: 9m 2018 achievements: Group revenue and adjusted EBITDA
9m 2018 Group Revenue Adjusted EBITDA* achievements € 30.6 bn € 9.7 bn +1.2% +1.2% +1.3% +3.2% Revenue +0.6% yoy Q3 Adj. EBITDA +3.0% yoy +2.2% +2.1% Revenue +1.3% yoy 9m Adj. EBITDA +3.2% yoy FY’17 (IAS18) FY’17 (IFRS15) 9m’18 FY’17 (IAS18) FY’17 (IFRS15) 9m’18 Adj. EBITDA Adj. EBITDA telecom telec
Slide 5: Sustained investment efforts to keep our competitive advantage in connectivity
4G coverage Sustained Population covered in %, yoy evolution in pts investment Poland 99.8% Nº1 efforts to keep Belgium France 99.7% 98.3% Orange mobile our competitive Moldova 98.0% network in France recognized by advantage in Spain 96.7% ARCEP as the best network for the 8th connectivity Romania S
Slide 6: Solid commercial momentum driven by VHBB and 4G
Solid commercial VHBB customers in million 4G customers* in million momentum driven by VHBB and 4G 5.9m 53.4m +36% yoy +25% yoy 5.9 53 5.5 50 5.1 46 48 4.8 43 4.3 4.0 36 3.7 33 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 17 17 17 17 18 18 18 17 17 17 17 18 18 18 VHBB > 100 Mbps in million 9.4 Broadban
Slide 7: Convergence, the bedrock of our strategy
Convergent B2C customer base in million Convergence, % of broadband B2C customer base France Spain Poland the bedrock of 6.10 6.12 3.09 3.08 3.14 3.13 3.12 1.14 1.18 6.04 our strategy 5.98 60% 83% 85% 1.03 1.09 55% 5.85 0.95 59% 47% Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q3 17 Q
Slide 8: Section two: Business review
Section two Business review
Slide 9: Q3 2018 France
Q3 2018 France Strong Retail services growth driven by convergent services in €m Q3 18 yoy cb 9m 18 yoy cb Convergent B2C ARPO Revenues 4,572 +0.9% 13,524 +1.2% Quarterly ARPO in € ePresse/Audio Book Retail services 2,755 +2.1% 8,238 +2.4% 65.1 64.8 65.1 Convergent services* 1,126 +10.7% 3,322 +12.3
Slide 10: Q3 2018 France commercial performance
Q3 2018 France commercial performance Strong net adds in mobile and broadband despite a very competitive environment Mobile contract net adds (in ‘000s) and churn rate Fixed BB net adds (in ‘000s) net adds excl M2M quarterly churn rate in % FTTH ADSL and others 11.4% 14.3% +85 +68 +108 +320 +57 +36
Slide 11: Q3 2018 Spain
Q3 2018 Spain Fixed Broadband net-adds back to positive trend supported by FTTH and the success of football offers in €m Q3 18 yoy cb 9m 18 yoy cb Revenues 1,340 +0.5% 3,974 +2.2% 85% Convergence as % of broadband B2C customer base +2pts yoy Retail services 973 -0.2% 2,893 +1.7% Convergent services*
Slide 12: Q3 2018 Europe
Q3 2018 Europe Convergence driving better trends in retail services in €m Q3 18 yoy cb 9m 18 yoy cb Mobile contract customer base, ex-M2M (in ‘000s) Revenues 1,411 +1.6% 4,185 +1.3% Convergent Mobile-only Retail services 886 +2.6% 2,615 +1.9% +1.1% Convergent services* 122 +52.9% 335 +56.7% Mobile o
Slide 13: Q3 2018 Africa & Middle East
Q3 2018 Africa & Middle East Continued revenue growth sustained by solid Retail dynamic in €m Q3 18 yoy cb 9m 18 yoy cb Revenues 1,310 +3.7% 3,834 +5.0% Retail services Mobile only services 1,079 964 +6.7% +6.5% 3,148 +7.6% 2,821 +8.1% 15.1m 4G customers** +57% yoy Fixed only services 113 +7.3% 318
Slide 14: Q3 2018 Enterprise
Q3 2018 Enterprise Underlying revenue stabilizing, with growth for IT&IS, and data and voice under pressure in €m Q3 18 yoy cb 9m 18 yoy cb Cyberdefense Revenues Fixed only services 1,785 992 -2.2% -3.0% -5.1% 5,314 2,988 -0.7% -2.7% -3.8% YTD revenue growth +16% yoy Voice 342 1,040 Data 650 -1.9% 1
Slide 15: Section three: 2018 guidance
Section three 2018 guidance
Slide 16: Short and mid-term guidance
Short and mid-term guidance 2018 2019-2020 Adjusted EBITDA Higher growth rate vs 2017 Growth CAPEX €7.4bn (peak) Decrease Operating Cash Flow * Higher growth rate vs 2017 Growth Net debt / Adjusted EBITDA (telecom) Around 2x in the medium term €70 cent** ( +€5 cent) Dividend December 6th, 2018*** Ne
Slide 17: Appendices
Appendices
Slide 18: Appendix: B2C + B2B Orange customers in France
Appendix: B2C + B2B Orange customers in France Mobile KPIs (in thousands) Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Mobile customers (excl. MVNOs) 29,508 30,033 30,489 31,150 31,624 31,777 32,012 32,482 32,836 Contract 25,759 26,486 27,090 27,842 28,433 28,821 29,184 29,720 30,170 M2M 5,
Slide 19: EBITDA adjustments
EBITDA adjustments in €m Q3 17 cb Q3 18 9m 17 cb 9m 18 Adjusted EBITDA 3,581 3,687 9,372 9,671 restructuring and integration -15 -74 -77 litigations -6 -61 -38 labour related -29 -91 -87 -115 o\w Senior Part Time -29 -91 -106 -115 portfolio review and others - - - - Reported EBITDA 3,552 3,574 9,151