Slide 1: Orange financial results
#FY2015 Orange financial results Stéphane Richard Chairman and CEO Ramon Fernandez Deputy CEO, Chief Financial and Strategy Officer 16th February 2016
Slide 2: Disclaimer
disclaimer This presentation contains forward-looking statements about Orange. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there c
Slide 3: Section one: 2015 highlights
Section one 2015 highlights
Slide 4: 2015 achievements
2015 Revenue € 40.2 bn -0.1% yoy +0.3% excl. reg. achievements Restated EBITDA* € 12.4 bn +0.1% yoy 30.9% of rev. 2015 includes the consolidation of Jazztel and Meditel and the sale of Orange Armenia yoy : comparison with the same period of the previous year, on a comparable basis qoq : comparison w
Slide 5: 2015 guidance: restated EBITDA
2015 guidance 2015 restated EBITDA of at least €12.3bn € 12.4 bn 30.9% as % of revenues +0.1 pt yoy 5 FY 2015 results, 16th February 2016
Slide 6: 2015 guidance: Net debt / Restated EBITDA
2015 guidance Net debt / Restated EBITDA* around 2x in the medium term 2.01x 2.37x 2.09x 2.01x * calculated by dividing (A) net financial debt, including 50% of the net financial debt of the EE JV in the U.K., by (B) restated EBITDA including 50% of the EBITDA of EE JV (adjusted in 2014 from the adm
Slide 7: 2015 guidance: dividend
2015 guidance 2015 dividend of €0.60 € 0.60 €0.20 interim paid in December 2015, balance of €0.40* to be paid in June 7 * subject to shareholders’ approval FY 2015 results, 16th February 2016
Slide 8: 2015 guidance: M&A policy
2015 Acquisition of Jazztel in Spain guidance Acquisition of Airtel’s subsidiaries in Burkina Faso and Sierra Leone* selective M&A policy, Acquisition of focus on existing footprint Cellcom Liberia* Acquisition of Tigo in DRC* Consolidation of Meditel Disposal of EE Disposal of Telkom Kenya** and Or
Slide 9: #Essentials2020
#Essentials2020 A digital, efficient and responsible company 9 FY 2015 results, 16th February 2016
Slide 10: Focus on investments
Focus on FY 2015 Capex yoy +9.3% 2015 FTTH homes investments connectable (France, Spain, Poland, Slovakia) x2.6 +5 4G countries Morocco Jordan Botswana Cameroon Guinea in 2015 Bissau Spectrum acquisition France Poland Moldova Ivory Coast Jordan Cameroon Romania Orange Digital Investment 10 FY 2015 r
Slide 11: Solid commercial performance across the Group
+4.3m 4G customer base +2.8m x2 2015 +1.4m Solid commercial yoy net adds 18m +0.7m +0.5m performance France Spain Poland Romania Belgium across the Group FTTH customer +398k +601k base driven by VHBB x3 yoy 2015 +142k 1.9m net adds France Spain Poland (VHBB) +4.4m Africa & Middle East +3.9m 110m 201
Slide 12: Section two: Financial results overview
Section two Financial results overview
Slide 13: Positive revenue growth
Positive revenue Group revenue growth yoy yoy growth sustained by yoy ex. reg. improved trend in -0.2% +0.5% +0.1% Europe and steady -0.6% -0.9% growth in Africa and -2.3% the Middle-East -3.8% -3.4% -4.1% -4.0% -4.8% -5.1% Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Fran
Slide 14: Restated EBITDA growing for the second quarter in a row
Restated EBITDA Restated EBITDA evolution (in €m) 12,426 growing for the 12,417 -47 second quarter in 118 -62 a row FY’14 cb revenues direct costs indirect costs FY’15 Group average FTE* Customer service inbound xDSL signalisation rate down -3.9%** yoy calls per customer in for retail market in Q4 2
Slide 15: CAPEX evolution by segment
Consistent with CAPEX evolution by segment (in €m) +298 Essentials2020, increased CAPEX in FTTH to support +72 +117 +65 future growth France Africa & the Europe other Middle-East FTTH homes connectable France Spain Poland following +1.4m +0.6m 5.1m yoy 6.8m Jazztel 0.7m yoy acquisition FY 2015 4G co
Slide 16: Net income Group share multiplied by close to 3
Net income Group share multiplied by close to 3 1 FY 2014 FY 2014 FY 2015 mainly reflects the change of perimeter with in €m historical cb actual consolidation of Jazztel and Meditel and the acceleration restated EBITDA 12,190 12,417 12,426 of copper depreciation in France restatements* -1,078 -1,40
Slide 17: Net debt evolution in 2015
Net debt evolution in 2015 Net debt evolution in €bn €0.5bn other financial items coupons on subordinated notes -2.9 -€0.9bn dividends paid to minority interests 4.2 26.6 spectrum & licences paid 26.1 income taxes paid 25.2 0.1 net financial interests paid 0.3 0.3 0.4 dividends paid to ORA sharehold
Slide 18: Section three: Business review
Section three Business review
Slide 19: Q4 2015 France financials
Q4 2015 France financials Strong financial performance supported by revenue recovery Q4 15 yoy cb FY 15 yoy cb Positive growth of total mobile revenues (services & equipment), +0.5% in Q4 2015 in €m Revenues 4,862 -0.1% 19,141 -0.8% – Mobile customer base growth and continuous customer mix improveme
Slide 20: Q4 2015 France mobile KPIs
Q4 2015 France mobile KPIs Ongoing mobile contract momentum and continued strong customer retention yoy contract net adds excl. M2M (in ‘000s) contract churn rate +6 pts 95% of customers repriced on post April 2013 tariff plan 19.4% 19.0% +5 pts 18.5% 17.6% 46% of consumer voice contract are on Open
Slide 21: Q4 2015 France fixed KPIs
Q4 2015 France fixed KPIs FTTH accelerating BB customer base growth FTTH net adds (in ‘000s) ADSL* net adds (in ‘000s) BB conquest share 41%** 10.7m +3.7% yoy broadband customers +121 30% +4 pts yoy +116 49% of BB customers have a 4P offer 22% +4 pts yoy +95 +85 39% of consumer BB customers are on p
Slide 22: Q4 2015 Spain
Q4 2015 Spain +6.2% restated EBITDA growth in H2 driven by improving service revenue and synergies in €m Q4 15 yoy cb FY 15 yoy cb Revenues 1,189 -0.7% 4,253 -2.3% excl. regulation -0.6% -1.5% 84.6% o/w mobile services o/w mobile equipment 626 +0.7% 104 -31.4% 2,403 470 -4.5% -11.3% 5.1m 4G customer
Slide 23: Q4 2015 Poland
Q4 2015 Poland A 2nd quarter of improving mobile trends; momentum building up in very high broadband in €m Q4 15 yoy cb FY 15 yoy cb Mobile services revenues improving at -1.9% yoy in Q4 (-5.2% in Q2, -2.8% in Q3) Revenues 686 -5.1% 2,831 -2.9% – customer base up +1.8% yoy, with contract share impro
Slide 24: Q4 2015 Belgium & Luxembourg
Q4 2015 Belgium & Luxembourg Revenue growth ramping up in Q4; full year restated EBITDA now stabilized in €m Q4 15 yoy cb FY 15 yoy cb Consolidated revenue growth ramping up at +2.3% this quarter, vs. +0.6% last quarter Revenues 323 +2.3% 1,235 -1.1% Strong mobile contract net adds in Belgium, drive
Slide 25: Q4 2015 Central European countries
Q4 2015 Central European countries Solid revenue growth in Q4, driven by Romania’s performance at +7.4% yoy in €m Q4 15 yoy cb FY 15 yoy cb 3rd quarter of revenue growth in a row, at +2.9% yoy in Q4, after +3.2% in Q3 and Revenues 422 +2.9% 1,648 +1.4% +1.8% in Q2 excl. regulation +3.1% +3.5% – Roma
Slide 26: Q4 2015 Africa & Middle East
Q4 2015 Africa & Middle East Solid revenue growth driven by data usage, EBITDA margin nearly flat despite tax hurdles in €m Q4 15 yoy cb FY 15 yoy cb FY15 revenues growth sustained and EBITDA margin nearly stabilised Revenues 1,312 +2.8% 4,899 +5.1% – revenue growth at 5.1% yoy, driven by Ivory Coas
Slide 27: Q4 2015 Enterprise
Q4 2015 Enterprise Enterprise revenue in Q4 is above yearly trend, supported by favourable macroeconomics, resilience of legacy business and continuous growth of IT Services, allowing EBITDA stabilisation in €m Q4 15 yoy cb FY 15 yoy cb voice revenues in line with overall 2015 trend as migration t
Slide 28: Section four: 2016 guidance
Section four 2016 guidance
Slide 29: 2016 guidance
Restated EBITDA 2016 > 2015 comparable basis 2016 Net debt / around 2x Restated guidance EBITDA in the medium term Dividend €0.60* interim payment €0.20 in December 2016 M&A selective with focus policy on existing footprint 29 * subject to shareholders’ approval FY 2015 results, 16th February 2016
Slide 30: Appendices
Appendices
Slide 31: EBITDA restatements
EBITDA restatements Q4’14 Q4’15 FY’14 FY’15 in €m cb actual cb actual EBITDA restated 3,020 3,063 12,417 12,426 rationalization of distribution networks and real estate restructuring -352 -89 -439 -172 1 optimization portfolio review 0 -15 0 45 litigations -99 -37 -399 -450 2 350m€ fine on the B2B m
Slide 32: Revenues yoy evolution
Revenues yoy evolution Group France 0.3% Africa & the Middle-East yoy yoy ex. reg. +0.5% -0.1% +0.3% +3.0% +0.1% -0.2% -0.6% +2.8% -0.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -2.3% Europe Enterprise -4.1% -4.0% -3.4% -4.8% -0.9% -5.1% -3.8% -0.4% -1.0% Q1 13 Q2 13 Q
Slide 33: High liquidity at the end of 2015 with smooth repayment profile
High liquidity at the end of 2015 combined with a smooth repayment profile Bonds*/bank loans/leases repayments end of 2015 Current rating of long term debt (in €bn) Moody’s Baa1 stable bonds bank loans & others 13.4 S&P BBB+ stable 3.6 3.7 Fitch ratings BBB+ stable 2.8 2.4 2.0 12.9 Gross debt struct