Orange Polska S.a. · GPW:OPL
Orange Polska — Q1 2023 Earnings Presentation
21 slides from Orange Polska's earnings presentation, Apr 26, 2023
Slide 1: Orange Polska 1Q 2023 results
Orange Polska 26 April 2023 1Q 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 31 March 2023 (available at https://www.orange
Slide 4: Highlights & Business review
Highlights & Business review Julien Ducarroz Chief Executive Officer 4
Slide 5: 1Q'23: Strong performance in a challenging environment
1Q’23: Strong performance in a challenging environment Solid commercial performance with focus on value ▪ ARPO growing in all key services ▪ Good customer base expansion in convergence with some slowdown in mono services ▪ Strong demand for high value handsets Excellent financial results with 5.5% y
Slide 6: Outstanding 1Q'23 financial results give us confidence on full-year guidance
Outstanding 1Q’23 financial results give us confidence on full-year guidance 2023 low single digit flat/low single digit guidance PLN 1.5-1.7bn growth growth 1Q 2023 Results Revenues EBITDAaL eCAPEX in PLN 3.14 bn 762 m 225 m YoY +7.1% +5.5% -8.2% 6
Slide 7: Solid commercial performance: ARPO growth coupled with customer base expansion in key areas
Solid commercial performance: ARPO growth coupled with customer base expansion in key areas PLN Convergence ARPO +2.4% PLN Fixed broadband-only ARPO PLN Mobile-only handset ARPO 116.4 yoy 63.0 +3.3% yoy 28.9 +3.2% yoy Higher convergence net Good fibre customer base growth Solid net customer addition
Slide 8: Financial review
Financial review Jacek Kunicki Chief Financial Officer 8
Slide 9: 1Q'23 financial results: a very strong start of the year
1Q’23 financial results: a very strong start of the year in PLNm 1Q’23 yoy ▪ Strong performance of core telco services, wholesale revenues 3,139 +7.1% and IT/IS ▪ Robust increase of equipment sales EBITDAaL 762 +5.5% ▪ Growth driven by strong revenue and direct margin performance % of revenues 24.3%
Slide 10: 1Q revenue +7.1% yoy with strong growth of core telecom services and equipment
1Q revenue +7.1% yoy Revenue evolution with strong growth of core (yoy change in %) 7.1% 8.2% 7.1% telecom services and 6.9% 6.6% equipment 5.0% 6.0% 5.6% 3.4% 0.4% Total reported Core telecom services* 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Revenue evolution breakdown in PLNm ▪ Core telecom services* (+6% y
Slide 11: 1Q EBITDAaL +5.5% yoy fuelled by strong direct margin expansion
1Q EBITDAaL +5.5% yoy EBITDAaL evolution fuelled by strong direct (yoy change in %) margin expansion 5.6% 5.5% 3.9% 4.1% 1.8% ▪ Direct margin up 5% yoy: ▪ Enabled by concerted contribution from core telecom services, 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 wholesale and margin on equipment ▪ Indirect costs up
Slide 12: 1Q Organic Cash Flow impacted by timing of capex and higher working capital
1Q Organic Cash Flow Organic Cash flow evolution breakdown in 1Q 2023 in PLNm impacted by timing of capex and higher yoy change -15 -168 -254 +89 -2 -350 working capital 768 -107 OCF evolution reflects: -736 ▪ EBITDAaL growth ▪ Higher cash capex (mainly +109 -153 -119 payments for 4Q’22) ▪ Increased
Slide 13: Summary
Summary Julien Ducarroz Chief Executive Officer 13
Slide 14: Summary
Summary Very strong start to the year building confidence on full-year guidance Focus on commercial growth both in volume and value Continuation of savings and transformation actions to mitigate inflation impact 5G Focus on 5G: acquisition of licence and network preparation for launch Green agenda:
Slide 15: Q&A
Q&A 15
Slide 16: Appendix
Appendix 16
Slide 17: Detailed evolution from EBITDAaL to net income in 1Q 2023
Detailed evolution from EBITDAaL to net income in 1Q 2023 in PLNm 1Q’23 1Q’22 Change EBITDAaL 762 722 +40 Gains on disposal of assets 86 21 +65 D&A of PPE and intangible assets* -487 -504 +17 Add-back interest expense on lease liabilities 31 17 +14 Adjustment for the impact of employment termination
Slide 18: Details of organic cash flow evolution in 1Q 2023
Details of organic cash flow evolution in 1Q 2023 in PLNm 1Q’23 1Q’22 Change Net cash flow from operating activities 768 783 -15 before change in working capital Change in working capital -107 61 -168 Net cash flow from operating activities 661 844 -183 CAPEX -383 -294 -89 Change in CAPEX payables*
Slide 19: 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 20: 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 21: 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