Orange Polska S.a. · GPW:OPL
Orange Polska — Q3 2023 Earnings Presentation
22 slides from Orange Polska's earnings presentation, Oct 24, 2023
Slide 1: Orange Polska 3Q 2023 results
Orange Polska 24 October 2023 3Q 2023 results .Grow Orange People 1
Slide 2: Forward looking statement
Forward looking statement This presentation contains 'forward-looking statements' including, but not limited to, statements regarding anticipated future events and financial performance with respect to our operations. Forward-looking statements can be identified by the fact that they do not relate s
Slide 3: Reconciliation of operating performance measure to financial statements
Reconciliation of operating performance measure to financial statements Disclosures on performance measures have been presented in the Note 2 to Condensed IFRS Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 30 September 2023 (available at https://www.or
Slide 4: Highlights & Business review
Highlights & Business review Liudmila Climoc Chief Executive Officer 4
Slide 5: 3Q'23 performance on track with full-year plans
3Q’23 performance on track with full-year plans Solid commercial performance with focus on value ▪ Steady pace of ARPO growth coupled with solid customer base expansion in all key services ▪ Strong demand for high value handsets continues Good financial results with EBITDAaL growth of 2.3% ▪ Strong
Slide 6: 9M 2023 strong financial results
9M 2023 strong financial results 2023 low-to-mid single low single digit guidance PLN 1.5-1.7bn digit growth growth 9M 2023 Results Revenues EBITDAaL eCAPEX in PLN 9.48 bn 2.43 bn 902m YoY +4.1% +3.6% +0.7% 6
Slide 7: Good ARPO growth coupled with solid customer base expansion in all key services
Good ARPO growth coupled with solid customer base expansion in all key services PLN Convergence ARPO +3.8% PLN Fixed broadband-only ARPO PLN Mobile-only handset ARPO 120.0 yoy (vs +3.3% in 1H) 64.5 +4.0% yoy (vs +3.8% in 1H) 29.9 +3.5% yoy (vs +3.2% in 1H) Solid convergence Good fibre customer base
Slide 8: Acquisition of 5G spectrum unlocks new business opportunities
Acquisition of 5G spectrum unlocks new business opportunities Map of Polish spectrum ▪ OPL secured 15-year reservation for a 100 MHz block of spectrum in 3400–3800 MHz band ▪ Price of PLN 487m to be paid by the year end OPL Play T-Mobile Plus New spectrum significantly improves capacity of our mobil
Slide 9: Financial review
Financial review Jacek Kunicki Chief Financial Officer 9
Slide 10: Strong 3M/9M'23 financial results
Strong 3M/9M’23 financial results in PLNm 3Q’23 yoy 9M’23 yoy ▪ Strong performance of core telco services revenues 3,115 -0.3% 9,478 +4.1% and equipment offset by drop in IT/IS and energy resale EBITDAaL 841 +2.3% 2,426 +3.6% ▪ Growth driven by direct margin performance % of ▪ Inflation impact on co
Slide 11: Flat yoy 3Q revenue reflects drop in IT/IS and energy resale
Flat yoy 3Q revenue Revenue evolution reflects drop in IT/IS and (yoy change in %) 8.2% energy resale while core 6.6% 7.1% 5.5% telecom services remain 5.0% 6.0% 5.6% 5.0% 4.6% strong Total reported -0.3% Core telecom services* 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 ▪ Core telecom services* (+5% yoy) Revenue
Slide 12: 3Q EBITDAaL +2.3% yoy fuelled by direct margin expansion
3Q EBITDAaL +2.3% yoy EBITDAaL evolution fuelled by direct margin (yoy change in %) expansion 5.5% 3.9% 4.1% ▪ Direct margin up 3% yoy: 3.1% 2.3% ▪ Strong contribution from core telecom services, equipment and energy resale business 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 ▪ Indirect costs up 3% yoy: ▪ Inflati
Slide 13: Strong 9M Organic Cash Flow and sound balance sheet structure
Strong 9M Organic Cash Organic Cash flow evolution breakdown in 9M 2023 in PLNm Flow and sound balance sheet structure yoy change +123 +77 -252 +84 -10 +22 OCF evolution reflects: +138 2,488 ▪ EBITDAaL growth -1,571 ▪ Lower spectrum fees (last UMTS instalment paid in 3Q’22) +185 -392 848 ▪ Reduced w
Slide 14: Summary
Summary Liudmila Climoc Chief Executive Officer 14
Slide 15: Summary
Summary Strong 9M results confirm our ability to deliver growth in a challenging environment In 4Q focus on high commercial season Continuation of value strategy and transformation to mitigate inflation impact in 2024 5G Focus on 5G rollout following obtaining a licence 15
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: Details of net income evolution in 3Q and 9M 2023
Details of net income evolution in 3Q and 9M 2023 in PLNm 3Q’23 3Q’22 Change 9M’23 9M’22 Change EBITDAaL 841 822 +19 2,426 2,342 +84 Gains on disposal of fixed assets 11 15 -4 125 85 +40 D&A of PPE and intangible assets* -494 -516 +22 -1,483 -1,526 +43 Add-back interest expense on lease liabilities
Slide 19: Details of organic cash flow evolution in 3Q and 9M 2023
Details of organic cash flow evolution in 3Q and 9M 2023 in PLNm 3Q’23 3Q’22 Change 9M’23 9M’22 Change Net cash flow from operating activities before change in 852 734 +118 2,488 2,365 +123 working capital Change in working capital 48 -4 +52 138 61 +77 Net cash flow from operating 900 730 +170 2,626
Slide 20: We successfully combine growth with social responsibility
We successfully combine growth with social responsibility Environment Social Governance We have clear climate/environmental We make new technologies a supporter Our corporate governance is goals and tangible results of economic and social development designed to provide responsible ▪ Climate goals:
Slide 21: Glossary (1/2)
Glossary (1/2) 4G/LTE Fourth generation of mobile technology, sometimes called LTE (Long Term Evolution) 5G Fifth generation of mobile technology, which is the successor to the 4G mobile network standard Fibre customer base (retail + wholesale)/ Total households connectable to our fibre network (own
Slide 22: Glossary (2/2)
Glossary (2/2) Fixed broadband-only Revenues from fixed broadband offers (excluding B2C convergent offers and equipment sales) including services TV and VoIP services FTE Full time equivalent FTR Fixed termination rate HHC (Households connectable) in fibre Households where broadband access service b