Orange Sa · EURONEXT:ORA

Orange Sa — France Telecom — H1 2003 Earnings Presentation

33 slides from Orange Sa's earnings presentation, Jul 30, 2003

  1. Slide 1: * On a pro forma basis (same perimeter in 2002 and

    * On a pro forma basis (same perimeter in 2002 and excluding forex, REAA +23.5% and Op Profit +46.0% on actual basis) ** See glossary

  2. Slide 2: Q1 2003 | Q2 2003 pro forma revenue

    Qi 2003, | Q2 2003 Pro forma revenue:

  3. Slide 3: Over 5% impact on H1 revenue, but no major threat on cash generation

    Over 5% impact on H1 revenue, but no major threat on cash generation

  4. Slide 4: Pro forma growth accelerating in Q2 and ahead of consensus

    Pro forma growth accelerating in Q2 and ahead of consensus

  5. Slide 5: Pro forma growth accelerating in Q2 (+4.4% vs +3.3% in Q1)

    Pro forma growth accelerating in Q2 (+4.4% vs +3.3% in Q1)

  6. Slide 6: ARPU trends will support future top line growth

    ARPU trends will support future top line growth *Contributive revenues in FT consolidated accounts (Orange statutory revenues: Eur 4360 Mn, + 9.3% pro forma) **Pro forma

  7. Slide 7: Focus on customer value: net new contracts subscribers over 12 months

    Focus on customer value: 1 m net new contracts subscribers over 12 months Source: ART for France

  8. Slide 8: ARPU stabilizing in France

    ARPU stabilizing in France Note: annual rolling ARPU

  9. Slide 9: Strong improvement of pro forma trends (-3.4% in Q1 2003)

    Strong improvement of pro forma trends (-3.4% in Q1 2003)

  10. Slide 10: Improvement of revenues trends in Telephony (-2% in Q2 vs -4.8% in Q1)

    Improvement of revenues trends in Telephony (-2% in Q2 vs -4.8% in Q1) *Pro forma

  11. Slide 11: Slower decline in Q2 for local, Stability for long distance

    Slower decline in Q2 for local, Stability for long distance Note: computation based on traffic interconnected with France Telecom network

  12. Slide 12: Activation & leverage France Telecom's subscriber base

    Activation & leverage France Telecom’s subscriber base: increasing loyalty, stabilizing ARPU, better revenue predictability

  13. Slide 13: ADSL trends above expectations, m lines targeted end 2003

    ADSL trends above expectations, 3 m lines targeted end 2003 *Mass market and SMEs

  14. Slide 14: *Trademark by France Telecom

    *Trademark by France Telecom

  15. Slide 15: Resilience of fixed line confirmed

    Resilience of fixed line confirmed

  16. Slide 16: Both ARPU and subscribers growth drive access revenue increase

    Both ARPU and subscribers growth drive access revenue increase *Contributive revenues in FT consolidated accounts (Wanadoo statutory revenues: 661 million euros / +30%) **Pro forma

  17. Slide 17: Adverse economic context affecting growth

    Adverse economic context affecting growth *Contributive revenues in FT consolidated accounts (statutory revenues for TP group: Pln 4 571 Mn / +3.5% for Equant: $744.3 Mn / +0.6%) **Pro forma

  18. Slide 18: Q2 confirms Q1 achievements

    Q2 confirms Q1 achievements *On a pro forma basis

  19. Slide 19: Even better performance Q2 2003 than in Q1 2003

    Even better performance Q2 2003 than in Q1 2003

  20. Slide 20: Toward Eur4bn gain from sourcing in 2003-2005

    Toward Eur4bn gain from sourcing in 2003-2005 *Additional 15% of total base managed locally

  21. Slide 21: CAPEX down 34% in Q2 and stronger selectivity

    CAPEX down 34% in Q2* and stronger selectivity *On a pro forma basis

  22. Slide 22: Strong contribution from Orange and Fixed in France

    Strong contribution from Orange and Fixed in France

  23. Slide 23: OPEX down 4.6% in Q2

    OPEX down 4.6% in Q2* *On a pro forma basis

  24. Slide 24: Operating working capital improvement expected end 2003

    Operating working capital improvement expected end *: gross, before securitization **: net

  25. Slide 25: TOP is ahead of schedule, an opportunity for organic growth

    TOP is ahead of schedule, an opportunity for organic growth

  26. Slide 26: Two programs managed on similar principles

    Two programs managed on similar principles

  27. Slide 27: Aiming at the upper range of +3 to +5% pro forma growth targets beyond 2003

    Aiming at the upper range of +3 to +5% pro forma growth targets beyond 2003

  28. Slide 28: Top-Line program status and detailed partnership and technology roadmap

    “Top-Line” program status and detailed partnership and technology roadmap available for coming investor day

  29. Slide 29: Target of over EUR 800m revenues in 2003 in Broadband

    Target of over EUR 800m revenues in 2003 in Broadband

  30. Slide 30: WiFi market

  31. Slide 31: Enabling a seamless service with a multi-network company

    Enabling a seamless service with a multi-network company: A case for leverage through cooperation and innovation

  32. Slide 32: Net debt excluding disposals

    *Excluding disposals (EUR 2.7 bn in H1 including Wind proceeds in July)

  33. Slide 33: Strategic flexibility regained and credit ratings improvement

    Strategic flexibility regained and Credit ratings improvement Commitment to Reduce debt by At least EUR15bn over 2003-2005 confirmed Improve top line Growth to boost long Term value

France Telecom — H1 2003 Earnings Presentation on 6ix