Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Non-Deal Roadshow (June 2006)
15 slides from Orange Sa's roadshow presentation, June 2006
Slide 1: France Telecom Canada – June 2006
France Telecom Canada – June 2006 Agenda Strengths of France Telecom NExT strategic plan FY05 and Q1 06 results 2 1
Slide 2: A player solidly positioned in its businesses
A player solidly positioned in its businesses Sa Presence in 220 countries & territories le T s& &I Ma rk 147 million customers worldwide (1) two rke ti Ne ng 2005 Revenues: €49 billion (2) Customer 203,008 employees (2) Product Factory A world leader in telecommunications R&D R&D A leader on its ke
Slide 3: NExT: a solid strategic framework
Agenda Strengths of France Telecom NExT strategic plan FY05 and Q1 06 results 5 NEXT: … to answer the industry changes and new entrants plans … to anticipate new usage patterns A solid strategic framework 6 3
Slide 4: NEXT is about new usages
NEXT is about new usages New customer needs France Telecom answers Growing role of content Aggregate & distribute all major digital contents / Develop TV, music & and entertainment games on all platforms. Converged offers & Livebox at the heart of our Broadband strategy / More multiplay and Over 7m
Slide 5: Orange HD
open Orange HD HD-TV HD-Voice ADSL access Unlimited VoIP with High Definition standard HD decoder Compatible + Free for all devices Digital HD Option Livebox + VoIP available from customers 69 € + TPS HD option Thomson V1590 SAGEM D45W 10 5
Slide 6: Unlimited mobile at home
unlimited mobile at home All you need is Unlimited mobile calls at home thanks to a connection to the A broadband Internet Access Livebox with a Livebox An Orange broadband contract One out of a range of mobile device compatible with the Livebox 11 unlimited mobile at home What is new… What is diffe
Slide 7: FY 05 results: From Revenues to Gross operating margin
Agenda Strengths of France Telecom NExT strategic plan FY05 and Q1 06 results 13 FY 05 results: From Revenues to Gross operating margin Euro millions FY04 FY04 FY05 actual Pro-forma Revenues 46,158 47,841 49,038 Non labour costs 19,385 20,669 21,860 as a % of revenues 42% 43.2% 44.6% Of which extern
Slide 8: From Gross Operating Margin to Operating Income
From Gross Operating Margin to Operating Income Euro millions FY04 FY05 Chge in EURm Gross Operating Margin 17,923 18,416 + 493 Employee Profit Sharing - 280 - 382 - 102 Share-based payment - 399 - 178 + 221 Amortization - 7,990 - 7,034 + 956 Impairment of goodwill -534 -11 + 523 Impairment of asset
Slide 9: 1Q06: key figures
Financing in FY05 Euro millions FY04 FY05 Net Cash provided by operating activities 12,697 13,374 Purchase of tangible and intangible assets, net of change in - 5,208 - 6,108 fixed asset vendors ow Capex -5,134 -6,045 Proceeds from sale of tangible and intangible assets 199 215 Organic Cash Flow * 7
Slide 10: Conclusion
Conclusion • A tough but anticipated environment x Mobile maturing markets spurring competitive pressure 1Q 2006 x Home broadband market consolidation not achieved x No favorable change in regulatory context and pending uncertainties in line with • Leadership confirmed on new fast growing Telecom fu
Slide 11: Ambition FT 2005 presentation and net debt evolution
December 5 2002, « Ambition FT 2005 » presentation " 15 + 15 + 15 " Refinancing Plan: Thanks to Plan Top Share Capital 23 December 2002: €2.9bn which allows to increase of 28 January 2003: €6.4bn increase Free Cash April 2004 23 January 2004: €2.5bn Flow from the end of 2002 until mid 2004 of around
Slide 12: France Telecom SA Debt Distribution
Net Debt Allocation: Fixed - Floating - by Currency (after swaps) 100% 9.0% 90% 25.0% 27.0% 37.0% 35.0% 30.0% 80% 39.0% 40.0% 41.0% 70% 54.0% A share capital 62.0% 60% increase of over 50% €14.8bn explains 91.0% 40% 63.0% 65.0% 75.0% 73.0% 70.0% the increase of 30% 61.0% 60.0% 59.0% 20% 46.0% fixed
Slide 13: Historical Spreads and Ratings
France Telecom Historical Spreads Asset Swap Spread (bps) 160 140 120 100 80 60 40 20 06/02/2003 9/15/2003 12/29/2003 04/12/2004 7/26/2004 11/08/2004 2/21/2005 06/06/2005 9/19/2005 1/16/2006 05/01/2006 France Telecom 7.25 1/28/2013 France Telecom 3.625 10/14/2015 France Telecom 8 12/20/2017 25 S&P,
Slide 14: Tightened management organization
Managing strong local businesses and taking advantage of global business lines France UK Spain Poland ROE ROW Reinforce country integration on each Personal business Home One manager for Enterprise each geography Group Management Committee will exercise its direct responsibility for of all group bus
Slide 15: France Telecom and its Canadian and US Competitors
Annexe 1 : France Telecom and its Canadian and US Competitors… (1) (2) (2) Ratings (Moody's/S&P) A3/A- Baa1/A- Baa2/BBB+ A2/A A3/A Stable/Positive Stable/Negative Positive/Stable Negative/Negative Stable/Negative Market Cap $55,794 $21,448 $13,957 $59,003 $89,821 Total Revenue for Full Year 2005 $62