Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Non-Deal Roadshow (November 2006)
16 slides from Orange Sa's roadshow presentation, November 2006
Slide 1: France Telecom Non deal roadshow
France Telecom Non deal roadshow November 2006 Agenda 1 France Telecom overview 2 Telecom industry revolution or how Broadband & IP are leading to a new ecosystem 3 NExT: France Telecom strategic framework or how to answer to those changes 4 Financials 2 1
Slide 2: A player solidly positioned in its businesses
1 France Telecom overview 2 Telecom industry revolution or how Broadband & IP are leading to a new ecosystem 3 NExT: France Telecom strategic framework or how to answer to those changes 4 Financials 3 A player solidly positioned in its businesses Sa Presence in 220 countries & territories le T s& &I
Slide 3: Europe's leading integrated operator
Following the Acquisition of Amena, Europe’s leading integrated operator… Belgium Netherlands Mobile: 2.96 million Mobile: 1.9 million Fixed-line: 0.55 million Internet: 0.61 million United Kingdom Mobile: 14.96 million Poland Internet: 2.02 million Mobile: 10.42 million Fixed-line: 10.48 million In
Slide 4: The new world: Telecoms, IT and Media converging
Broadband & IP are leading to a new ecosystem The new world: Telecoms, IT and Media are slowly converging Indirect relation with customers (audience) craigslis t through online community access Direct relation with customers based on access A more complex & competitive world but more opportunities f
Slide 5: Consequences on our networks
Consequences on our networks Need for integration and capacity Towards single networks… … with increased capacity & QoS TV 5 Mbits/s TV-HD 10 Mbits/s Mobile Fixed VOD 5 Mbits/s Network Network Video Games 0.2 Mbits/s Music 2 Mbits/s Photo 2 Mbits/s Blogs 2 Mbits/s E-commerce 2 Mbits/s 9 Many new ser
Slide 6: Through NExT, Orange will deliver the best end-to-end customer experience
1 France Telecom overview 2 Telecom industry revolution or how Broadband & IP are leading to a new ecosystem 3 NExT: France Telecom strategic framework or how to answer to those changes 4 Financials 11 Through NExT, Orange will deliver the best end- to-end customer experience Integrate the best port
Slide 7: NEXT is about new usages
NEXT is about new usages Every day live Services Unlimited and converged offers Infotainment NEXT @ Health – Services to individuals 13 NEXT is about growth in emerging countries Emerging market as % of total revenues 12.5% 11.3% 10.9% 9.5% H105 Q305 H106 Q306 Mobile Fixed-line Assets as of February
Slide 8: Implementing NEXT: 2006 key milestones
Implementing X NE T 2006 key milestones Rebranding in Senegal and Mali Orange Unik fixed-mobile Messenger by phone Windows Live FTTH pilot All included High definition TV Rebranding in offers & VoIP Spain Rebranding in France,UK and Free Broadband Netherlands offer in the UK 15 Implementing NEXT ADS
Slide 9: Implementing NEXT: Mobile strategic positions
Implementing NEXT Mobile strategic positions 3.9m mobile broadband customers in Europe ÎIn France, positive impact of MVNO strategy and of Orange customers base growth on mobile revenue 46.4% market share +150% in ÎFollowing product line refreshment, 187k 9 months France contract net additions in
Slide 10: Implementing NEXT: Enterprise and 9M06 results
Implementing Enterprise NEXT Î Continuous decline of voice and Business Everywhere end users in France data legacy partially offset by the (000) development of IPVPN access and Business Everywhere 465 443 ÎDevelopment in services related 420 business with a focus in 408 mobility (Business Everywhe
Slide 11: 7bn euros Organic Cash Flow Generation
7bn euros Organic Cash Flow Generation target confirmed for 2006 In maturing and highly competitive markets, manage a balance between market share and profitability through dynamic cost optimization and driven opex and capex allocation ÎFull year GOM in line with guidance decrease of GOM rate betwee
Slide 12: 1H06: Gross Operating Margin
1H06: Gross Operating Margin Comparable euro millions Actual 1H05 Basis – 1H05 1H06 Revenues 23,665 25,487 25,855 non labour expenses 9,876 10,958 11,850 as a % of revenues 41.7% 43.0 % 45.8 % of which commercial expenses 2,836 3,349 3,585 as a % of revenues 12.0% 13.1% 13.9% labour expenses 4,489 4
Slide 13: 1H06: from Operating Income to Net Income
1H06: from Operating Income to Net Income euro millions 1H05 1H06 Operating Income 6,479 5,334 Total Financial result -1,827 -1,290 Income taxes -1,018 -1,285 Net Result 3,634 2,759 Minority Interests -271 -413 Net Result Group Share 3,363 2,346 Net Result Group Share excluding disposal of assets st
Slide 14: 1H06 organic Cash Flow and Net Debt
1H06 organic Cash Flow euro millions 1H05 1H06 Net Cash provided by operating activities 5,868 6,650 Purchase of tangible and intangible assets, net of change - 2,959 - 3,407 in fixed asset vendors ow Capex -2,713 -3,055 Proceeds from sale of tangible and intangible assets 96 71 Organic Cash Flow *
Slide 15: Net Debt Allocation and Debt Distribution
Net Debt Allocation: Fixed - Floating - by Currency (after swaps) 100% 9% 90% 25% 27% 30% 80% 39% 37% 35% 40% 41% 54% 70% 62% 60% A share capital 50% 91% increase of over 40% 75% 73% 63% 65% 70% €14.8bn explains 30% 61% 60% 59% 46% the increase of 20% 38% fixed debt in 2003 10% 0% 1995 1996 1997 199
Slide 16: Ratings and Net Debt Evolution
S&P, Moody’s and Fitch Ratings A2 / A A3 / A- Baa1 / BBB+ Baa2 / BBB Baa3 / BBB- Ba1 / BB+ mars-02 sept-02 mars-03 sept-03 mars-04 sept-04 mars-05 sept-05 mars-06 sept-06 Moody's Fitch S&P 31 Net Debt Evolution (IFRS on and after 2004) €bn Years 80 12 68 70 61 63.4 10 60 49.8 47.8 47.2 8 50 44.2 40