Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Q1 2009 Earnings Presentation
29 slides from Orange Sa's earnings presentation, Apr 29, 2009
Slide 1: April 29, 2009
April 29", 2009 Rirance telecom orange”
Slide 2: Cautionary statement
cautionary statement « This presentation contains forward-looking statements about France Telecom’s business, in particular for 2009. Although France Telecom believes these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertaintie
Slide 3: Highlights
1Q09 highlights
Slide 4: Key financial achievements
1Q09 key financial achievements cash flow in line with full year objective despite deteriorating economic environment 1a08 igo in millions of euros CB actual basis key points = most of the regions except revenues 12,639 12,685 +0.4% France have been facing economic deterioration EBITDA 4,498 4,300 4
Slide 5: Resilience of Group revenue confirmed vs. GDP
resilience of Group revenue confirmed vs. GDP evolution in Orange footprint composite weighted GDP growth on Orange footprint* 41% —@— Group organic growth -1.7% 1Q08 2Q08 3Q08 4Q08 1Q09 difference GDP/ +0.5pt +1.6pt +1.0pt +1. Spt +2.1pt Group growth * source : IMF, France Telecom estimates rv insi
Slide 6: Resilience of France and enterprise partly offsets slowdown in Spain, Poland and ROW
resilience of France and enterprise partly offsets slowdown in Spain, Poland and ROW in millions of euros Group revenues France personal home eliminations UK personal home eliminations Spain personal home Poland personal home eliminations ROW Enterprise International carrier & SS eliminations * ona
Slide 7: EBITDA evolution impacted by forex, lower revenue growth and higher customer investments
1Q09 EBITDA evolution impacted by forex, lower revenue growth and higher customer investments EBITDA in millions of euros 4,629 123 8 ee content -89mé interconnect - S9m€ 1 1Q08 actual forex perimeter 1Q08CB revenue opex 1Q09 insight « forex impact of -409m€ in revenues but only -123m€ on EBITDA » l
Slide 8: Improvement of labour costs offset by interconnection and commercial costs
improvement of labour costs offset by interconnection and commercial costs in millions of euros & % of revenues = 1Q08 CB labour costs (2,286) 18.1% o/w profit sharing & share base payments (94) (1,832) interconnection 14.5% (685) other IT&N 5.4% general, properties, and others (1,481) 11.7% o/w res
Slide 9: CAPEX
1Q09 CAPEX close monitoring of investments since the beginning of the year to adjust to country by country activity level insight ———————————_. lions of euros (in % of revenues) 1,461 = real estate operation in 1Q08 9 real estate 11 S36) » CAPEX prioritization in all operation 145 1,230 countries le
Slide 10: Spanish operations
spanish operations repurchase of France Telecom Espana minorities according to the terms of the shareholder agreement 7 transaction details = as per the liquidity agreement, the Group and Amena main minority shareholders agreed on the repurchase of the remaining 18.2% after several weeks of negotiat
Slide 11: Business performance
1Q09 business performance
Slide 12: France financials
1Q09 France financials good revenue performance driven by mobile mobile revenues: +7.4% yoy Fran in millions of euros in millions of euros 1Q08CB 1Q09 var 86 +103 +44 2,645 + -42 _ total France 5,789} 5,912 1% 2,462 a. , personal 2,462 | 2,645 | +7,4% home 3,602 | 3,559 | -1.2% eliminations 276 -292
Slide 13: France KPIs
1Q09 France KPIs strong contract net adds in mobile and resilience of PSTN ADSL market share ADSL market share mark 464% 465% 46,7% 468% 468% net adds ADSL market share 436% 435% 436% 436% 435% 49.4% 49.5% 49.5% 49.4% 49.2% —_—— 42.6% 1008 © 2008. «S 3Q08-S 4Q08 = 1009 49.7% 51.3% 51.7% 46.7% market
Slide 14: UK financials
1Q09 UK financials mobile revenue trend in line with 4Q08 in a slowing market in millions of euros in millions of euros 1Q08CB 1Q09 var 31 1,204 — , 48 8 1,208 total 1,261 | 1,253 | -0.6% personal 1,204 1,208 +0.4% home 73 60 | -18.3% 4108 customer regulatory voice non voice equipment 4Q09 eliminati
Slide 15: UK KPIs
1Q09 UK KPIs volume and value improvement despite higher competitive intensity non sms contract WW prepaid Mi sms 15,756 15,850 268 271 vows : 16= +19% 19 36%| | 5,722 (410%) | 6,298 | sox asm) 45 = Hote asses “ a ] 1Q08 1Q09 1Q08 1Q09 insight « follow up on transformation programs with direct contr
Slide 16: Spain financials
1Q09 Spain financials resistant relative performance in a rapidly deteriorating market Spain revenu in millions of euros ~—1Q08CB 1Q09 var total Spain 994 954 -4.1% personal 827 783 | 5.4% home 167 171 | 42.4% insight «revenues excl. regulatory impact decreased by -1.3% «voice revenues drop due to s
Slide 17: Spain KPIs
1Q09 Spain KPls mobile customer base increase in a slowing market quarterly net adds evolution (000s) mobile customer base mix (000s) MW contract © prepaia rae - 11,426 = ed prepaid 6 7%) 7 contract _ co 1Q08 2Q08 3Q08 4Q08 1Q09 a a end of 1Q08 end of 1Q09 insight «increased contract customer base t
Slide 18: Poland financials
1Q09 Poland financials increasing regulatory effects putting pressure on revenues Poland ri u revenues: -4.5% yoy % excl. regulatory impacts) inmilions ofeues _1Q08CB __1Q09 var total Poland 1,008 960 | -4.7% personal 466 445 45% home 585 S75 1.8% eliminations “43 -60 4Q0B customer regulatory voice
Slide 19: Poland KPIs
1Q09 Poland KPIs improved mix in mobile customers and slowdown in fixed line loss mobile customer base mix WY contract 1 prepaid 14,007 13,681 one coe — end of 1Q09 end of 1Q08 insight = contract customers up 11% at over 6.3 million, representing more than 46% of the customer base = broadband custom
Slide 20: ROW
1Q09 ROW market position maintained in a tougher competitive environment in millions of euros: 1Q08CB 1Q09 var total ROW 2,037 | 2,028 | -0.4% « Africa & Middle East 807 847 | +5.0% = European countries 1,108 | 1,068 -3.6% «other 170 173 | +1.7% eliminations 24 -22 insight = Africa & Middle East: +5
Slide 21: Enterprise financials
1Q09 enterprise financials resilient positive trend despite increased economic pressure on corporates insight enterprise revenues: +0.4 = revenue growth of 0.4% yoy (+1.3% excluding in millions of euros 1Q08CB 1Q09 var equipment resale) total enterprise 1,919 ]1,926 | +0.4% = legacy: contained decre
Slide 22: Enterprise KPIs
1Q09 enterprise KPIs sustained growth in value added services businesses supported by a high quality of service business everywhere end users in France XoIP connections in France in thousands in thousands C124%> 23 605 709 10 || end of 1Q08 end of 1Q09 end of 1Q08 end of 1Q09 quality of service and
Slide 23: Outlook
outlook
Slide 24: Resilience of France Telecom despite new deterioration of macro-economic forecast
resilience of France Telecom despite new deterioration of macro-economic forecast weighted GDP IMF forecast on Orange footprint Jan 09: full year 2009 GDP _-1% forecast 1Q09 estimate -1.7% April 09 : full year 2009 GDP -2.5% forecast ‘source : IMF cr macro-economic insight —_~ XN IMF has lowered GDP
Slide 25: 2009 cash flow guidance confirmed
2009 cash flow guidance confirmed cash flow guidance confirmed ongoing actions to secure organic cash flow generation and preserve market share = maintain the level of 2008 organic cash flow: 8bn€ (before possible spectrum acquisition) » revenues : specific marketing offers launched to respond to do
Slide 26: Appendices
appendices
Slide 27: Glossary (1)
glossary “) ADSL market « number of France Telecom's DSL Internet customers divided by the number of DSL Internet share customers in the market ARPU + for mobile: revenues of the network generated over the last twelve months (excluding (Average revenues from mobile virtual network operators - MVNOs)
Slide 28: Glossary (2)
glossary 2) net financial debt Mature markets Subscriber Acquisition ‘Subscriber Retention Costs (SRCs) 28 + total financial liabilities excluding liabilities linked to operations (converted at the year-end closing rate), less i) derivative instruments carried in assets for trading, cash flow hedges
Slide 29: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FRANCE TELECOM Date: April 29, 2009 By: /S/ Stéphane Pallez Name: Stéphane Pallez Title: Group Deputy Ch