Slide 1: Orange financial results Q3 2019
Orange financial results #Q3_2019 29 October 2019 Ramon Fernandez Deputy CEO, Finance, Performance and Europe
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Orange, notably on objectives and trends related to Orange’s financial situation, investments, results of operations, business and strategy. Although we believe these statements are based on reasonable assumptions, they are subje
Slide 3: Section one: Q3 2019 highlights
Section one Q3 2019 highlights
Slide 4: Group achievements 9m 2019: revenue and EBITDAaL
9m 2019 Revenue (9m 19) EBITDAaL (9m 19) Q3 2019 Group € 31.2 bn € 9.6 bn achievements 2019 yoy growth +0.8% 2019 yoy growth +0.9% +0.7% +0.6% +0.5% +0.4% +0.2% Q1 19 Q2 19 Q3 19 9M -0.1% Q1 19 Q2 19 Q3 19 9M yoy : comparison with the same period of the previous year, on a comparable basis unless ot
Slide 5: Investment efforts accelerated as fiber roll-out in France speeds up
Q3 19 Network highlights Investments efforts accelerated as fiber 4G coverage above 95 % of N°1 roll-out in France 4G population in all European countries 4G in 15 MEA countries mobile network for the 9th year in a row speeds up 5G Launch of 4 “5G Orange cities” in Europe VHBB** connectable lines •
Slide 6: Solid commercial momentum driven by Convergence, VHBB and 4G
Convergence 4G Solid commercial 10.7m +4% yoy 65.3m +22% yoy momentum driven customers* *Group. In France, Open only customers by Convergence, New Livebox 5 in France VHBB and 4G VHBB +25% 7.4m yoy Pricing power in France : customers , o/w 7.1 m FTTH from 1 to 2Gbps :+€2/month TV +5% VHBB > 100 Mbps
Slide 7: Section two: Business review
Section two Business review
Slide 8: Q3 2019 France
Q3 2019 France Growth in convergent and wholesale services. Slight growth in total revenues excluding digital content offers in €m Q3 19 yoy cb 9M 19 yoy cb Revenues 4,548 -0.4% 13,423 -0.8% Retail services 2,702 -2.0% 8,077 -2.0% Q3’19 yoy growth excl. ePresse/Audio book : Convergent services* 1,10
Slide 9: Q3 2019 France: commercial performance
Q3 2019 France: commercial performance Solid performance in mobile, fixed and convergence with decrease in churn in mobile 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 14.3% 12.1% +71 +65 +68 +49 +41
Slide 10: Q3 2019 Spain
Q3 2019 Spain Preserving value, focusing on efficiency in €m Q3 19 yoy cb 9m 19 yoy cb 84% Convergence as % of broadband B2C customer base Revenues 1,310 -2.5% 3,934 -1.2% Retail services 933 -4.7% 2,822 -2.7% Convergent services* 518 -3.9% 1,567 -2.1% 77% Fiber penetration in BB customer base Mobil
Slide 11: Q3 2019 Europe
Q3 2019 Europe Convergence driving solid trends in retail services; wholesale services still impacted by the loss of MVNO revenues last year Q3 19 yoy cb 9m 19 yoy cb Revenue evolution (in €m) in €m Revenues 1,446 +1.4% 4,235 +1.3% Retail services 931 +3.0% 2,699 +3.0% -12 1,446 Convergent services
Slide 12: Q3 2019 Africa & Middle East
Q3 2019 Africa & Middle East 8 countries out of 17 with double digit growth in €m Q3 19 yoy cb 9m 19 yoy cb Revenues Retail services 1,447 1,220 +7.6% +10.2% 4,185 3,509 +6.3% +8.7% 22.5m 4G customers +49% yoy Mobile only services 1,090 +9.9% 3,132 +8.3% Fixed only services 126 +11.9% 366 +11.7% IT
Slide 13: Q3 2019 Enterprise
Q3 19 Enterprise Revenue growth still driven by IT&IS as well as data resilience in €m Q3 19 yoy cb 9m 19 yoy cb Revenues 1,946 +1.8% 5,716 +1.0% Fixed only services 977 -2.0% 2,956 -1.9% Cybersecurity Voice 314 -7.9% 964 -7.1% +25% yoy organic** growth in 9m19 Data 663 +1.0% 1,992 +0.8% IT & integr
Slide 14: Section three: 2019 guidance
Section three 2019 guidance
Slide 15: Guidance 2019
Excluding the impact from the network Guidance sharing deal with Vodafone in Spain 2019 EBITDAaL Slight growth eCAPEX (1) Slight decrease from 2018 peak Operating Cash Flow (2) Growth Net debt (3) / EBITDAaL (telecom) Around 2x in the medium term Floor of €0.70 (4) Dividend December 4th, 2019 (5) 20
Slide 16: Section four: Appendices
Section four Appendices
Slide 17: Convergent B2C customer base in million
Convergent B2C customer base in million % of broadband B2C customer base Convergence, France* Spain Poland 5.77 3.12 3.12 3.08 3.06 3.04 1.33 the bedrock of 5.70 5.73 85% 84% 1.28 1.31 55% 1.24 61% our strategy 5.61 5.65 1.18 55% 55% Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q3 18