Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Cheuvreux conference (October 2009)
10 slides from Orange Sa's conference presentation, Oct 1, 2009
Slide 1: France Telecom
France Telecom Gervais Pellissier Deputy CEO and CFO October 1st 2009
Slide 2: Revenue growth for the Group continues to outperform GDP evolution
revenue growth for the Group continues to outperform GDP evolution with different performance among the geographies organic revenue growth per quarter organic revenue growth per geography vs weighted GDP growth in 1H09 in % 1H09 organic growth 1H09 organic growth group organic growth composite weigh
Slide 3: Strong cost control leading to EBITDA margin recovery in 2Q
in spite of lower revenues, strong cost control leading to EBITDA margin recovery in 2Q EBITDA margin evolution (in ppt) insight FY08 margin improvement due 0,4 pp* to continued growth resilience +0.2 pp (+2.9%) and cost optimisation in Spain, UK and Enterprise 1Q09 decrease mainly driven by lower r
Slide 4: EBITDA delivery sustained by Orange 2012 transformation plan
EBITDA delivery is sustained by Orange 2012 transformation plan that will deliver €1.5bn savings savings by 2011 in current portfolio (pipe) in billions of euros insight 1.7 plan managed at Group level with capex (20%) dedicated country teams feeding project portfolio opex (80%) beyond cost cutting,
Slide 5: Limited impact of capex reduction on growth capacities
limited impact of capex reduction on growth capacities, thanks to tight prioritization and following strong investment levels over the last 3 years CAPEX evolution in millions of euros 3,134 € -378m capex cut 13 3,069 -78 163 120 139 60 179 2,528 1H08 forex perimeter 1H08 CB real broadbandnarrowband
Slide 6: 2009 cash flow guidance and 2009-2011 ambition all confirmed
2009 cash flow guidance and 2009-2011 ambition all confirmed 2009 organic maintain the level of 2008 organic cash flow: 8bn€ cash flow (before possible spectrum acquisition) guidance capex to sales ratio should be slightly below 12% 2009 ordinary dividend will be equal or above 45% of Group organic
Slide 7: Joint venture between France Telecom and Deutsche Telecom will create new #1 UK player
joint venture between France Telecom and Deutsche Telecom will create the new #1 player in the UK mobile market UK mobile subscribers market shares (2008PF combined)¹ insight clear market leader with pro forma + 37% market share (>28 m subs) best customer offering with enhanced coverage quality and
Slide 8: Over £3.5bn NPV of synergies, net of integration costs
over £3.5bn NPV of synergies, net of integration costs annual run- run-rate opex and net capex savings (£ (£m) post 2014 over £3.5 Bn of net opex and capex 100 545 savings : 155 35% opex run rate of synergies £445m 145 34% per annum capex run rate of 145 33% synergies of £100 Network Distribution Ot
Slide 9: Key governance principles – joint control and streamlined decision making
key governance principles – joint control and streamlined decision making equal representation from France Telecom and Deutsche Telekom board 2 representatives from France Telecom, 2 representatives from Deutsche Telekom of directors 2 executive directors (CEO and COO) Deutsche Telekom nominates fir
Slide 10: Strong value creation for shareholders
strong value creation for shareholders FCF per share accretive from 2010 ¹ EPS accretive since 2011 ¹ Free cash flow per share + 4.4% + 4.2% double digit EPS accretion from 1st + 2.1% + 2.2% full year of operation (2011) circa 11% accretion by 2014 2011 2012 2013 2014 joint ownership of a larger, mo