Orange Polska S.a. · GPW:OPL
Orange Polska — Q2 2024 Earnings Presentation
25 slides from Orange Polska's earnings presentation, Jul 24, 2024
Slide 1: Orange Polska 2Q 2024 results
Orange Polska 2Q 2024 results 24 July 2024 .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: Highlights & Business review
Highlights & Business review Liudmila Climoc Chief Executive Officer 3
Slide 4: Solid 2Q'24 commercial performance and financial results
Solid 2Q’24 commercial performance and financial results Strong commercial momentum ▪ Very good net customer additions in all key telecom services ▪ Coupled with steady pace of ARPO growth ▪ FiberCo JV progresses well with c.1.9m HHC and 0.5m customer lines Solid financial results with c.4% yoy EBIT
Slide 5: Very solid growth of customer bases and ARPO across all key services
Very solid growth of customer bases and ARPO across all key services sustained in 2Q; mobile stands out PLN Convergence ARPO +4.0% yoy PLN Fixed broadband-only ARPO PLN Mobile-only handset ARPO 123.3 66.0 +3.1% yoy 29.8 +1.7% yoy Strong convergence Solid fibre customer growth in a Better net custome
Slide 6: Bringing the best quality connectivity infrastructure to the Polish society
Bringing the best quality connectivity infrastructure to the Polish society mobile fixed FTTH from OPL available to >50% of Polish HHs 5G 2,000 base stations rollout 28% population coverage Own OPL network: since 2022 on c-band FTTH HHC* (m) growth thanks to EU 280 cities subsidised projects and M&A
Slide 7: Financial review
Financial review Jacek Kunicki Chief Financial Officer 7
Slide 8: Solid 2Q/1H'24 financial results
Solid 2Q/1H’24 financial results in PLNm 2Q’24 yoy 1H’24 yoy ▪ Growth rate of core telco services accelerated revenues 3,123 -3.1% 6,204 -2.5% (+4.7% yoy) offset by decline in energy resale and IT&IS EBITDAaL 854 +3.8% 1,653 +4.3% ▪ Driven by good growth of core business & efficiency gains % of reve
Slide 9: 2Q revenue with strong growth core telecom services and decline in energy resale and IT&IS
2Q revenue with strong Revenue evolution growth core telecom (yoy change in %) services and decline in 5.5% 4.6% 4.7% 3.8% 4.2% energy resale and IT&IS 5.0% 3.3% -0.3% Total reported Core telecom services* -1.8% -3.1% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Revenue evolution breakdown in PLNm ▪ Core telecom s
Slide 10: 2Q EBITDAaL +3.8% yoy with solid growth of margin from core business
2Q EBITDAaL +3.8% yoy EBITDAaL evolution with solid & consistent (yoy change in %) growth of margin from 3.1% 4.9% 3.8% 2.3% 2.3% core business 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 EBITDAaL evolution breakdown (yoy change in PLNm) +3.8% ▪1 Solid and consistent performance of direct margin from underlying b
Slide 11: Solid 1H net income with yoy dynamics affected by high comparable base
Solid 1H net income with Net income level 1H 2021- 1H 2024 yoy dynamics affected by (PLNm) high comparable base 1,517 509 458 368 356 309 155 117* 1H'21 2H'21 1H'22 2H'22 1H'23 2H'23 1H'24 *Net income before gain related to FiberCo transaction Net income evolution in 1H 2024 ▪1 +4.3% yoy EBITDAaL gr
Slide 12: 1H eCapex reflects full pace of 5G rollout and phasing of proceeds
1H eCapex reflects full pace of 5G rollout and phasing of proceeds from property disposal Investment areas (in PLNm) Fibre net of disposed rollout to 76 77 FiberCo 201 Mobile network 177 ▪ Growth in mobile reflects full pace of 5G network rollout in core and Fixed & core network 229 234 RAN renewal
Slide 13: Solid 1H Organic Cash Flow and balance sheet
Solid 1H Organic Cash Organic Cash flow evolution breakdown in 1H 2024 in PLNm Flow and balance sheet yoy change +110 -218 +173 -48 -30 -13 1,746 -128 OCF evolution reflects: -1,026 120 ▪ EBITDAaL growth -301 411 ▪ Lower cash capex (less payments for prior year’s capex) ▪ Increase in working capital
Slide 14: Summary
Summary Liudmila Climoc Chief Executive Officer 14
Slide 15: Full-year guidance updated
Full-year guidance updated 2024 original 2024 updated guidance guidance flat/low single digit decline Revenues yoy % solid growth of core telecom services low single digit growth offset by energy resale and IT&IS low-to-mid single digit growth EBITDAaL yoy % low single digit growth solid contributio
Slide 16: Summary
Summary Solid commercial performance and financial results in 1H allowing to improve our full-year profit outlook Focus on increasing customer bases and the value we provide through exceptional customer experience New EU subsidised fibre rollout program entering execution phase Preparation for new m
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: EBITDAaL evolution breakdown in 1H'2024
EBITDAaL evolution breakdown in 1H’2024 EBITDAaL evolution breakdown in 1H (yoy change in PLNm) +4.3% ▪1 Solid and consistent performance of direct margin from underlying business +62 -43 +106 1,653 1,585 -57 ▪2 Cost transformation & efficiency initiatives* compensate headwinds from CPI and energy r
Slide 20: 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 Interim Consolidated Financial Statements of the Orange Polska Group for the 6 months ended 30 June 2024 (available at https://www.orange-ir
Slide 21: Details of bottom line evolution in 2Q and 1H 2024
Details of bottom line evolution in 2Q and 1H 2024 in PLNm 2Q’24 2Q’23 Change 1H’24 1H’23 Change EBITDAaL 854 823 +31 1,653 1,585 +68 Gains on disposal of assets 22 28 -6 64 114 -50 D&A of PPE and intangible assets* -508 -502 -6 -1,013 -989 -24 Add-back interest expense on lease liabilities 38 35 +3
Slide 22: Details of organic cash flow evolution in 2Q and 1H 2024
Details of organic cash flow evolution in 2Q and 1H 2024 in PLNm 2Q’24 2Q’23 Change 1H’24 1H’23 Change Net cash flow from operating activities before change in 925 868 +57 1,746 1,636 +110 working capital Change in working capital* -11 197 -208 -128 90 -218 Net cash flow from operating 914 1,065 -15
Slide 23: We successfully combine growth with social responsibility
We successfully combine growth with social responsibility Environment Social Governance CO2 emissions reduction goal met 2 years We make new technologies a supporter of Responsible management and in advance (-65% in 2025 vs 2015) social development supervisions to achieve strategic goals ▪ CO2 emiss
Slide 24: 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 25: 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