Slide 1: Orange financial results #Q3_2020
Orange financial results #Q3_2020 29 October 2020 Ramon Fernandez Deputy CEO, Finance, Performance and Development 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Orange's financial situation, results of operations and strategy. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to
Slide 3: Section one: Q3 2020 highlights
Section one Q3 2020 highlights 3
Slide 4: Q3 2020 key achievements
Q3 2020 key achievements France Europe/MEA Poland Record FTTH net adds Record FTTH net adds Spain 1.1m customers Best mobile net Record sales of Excellent Back to positive net premium card adds since Q218 commercial adds FBB, mobile, TV ~60% new customers performance More for more Multi- Services 5G
Slide 5: Q3 2020 financial achievements
Q320 Revenue EBITDAaL eCapex Q3 2020 €10.6bn €3.6bn €1.7bn financial +0.8% yoy in Q3 -0.4% yoy in Q3 +0.9% yoy in Q3 achievements Negative Q3 EBITDAaL impact related to crisis (€m) yoy : comparison with the same period of the previous year, on a comparable basis unless otherwise specified All Group
Slide 6: Section two: Business review
Section two Business review 6
Slide 7: Q3 2020 France
Q3 2020 France Resilience of our retail services and a strong growth of wholesale revenues Q3 20 quarterly ARPOs (in €) and growth, yoy: in €m Q3 20 yoy cb 9M 20 yoy cb Revenues 4,693 +3,1% 13,717 +2.1% Retail services 2,691 -0,4% 8,068 -0.1% Q3 Retail excl. digital Convergent Convergent services* 1
Slide 8: Q3 2020 France: commercial performance
Q3 2020 France: commercial performance Excellent performance in FTTH and mobile Mobile contract net adds (in ‘000s) and churn rate Fixed BB net adds (in ‘000s) net adds excl M2M quarterly churn rate in % FTTH ADSL and others 12.1% 13% +95 +90 +125 54% +65 +49 +37 +61 +360 +47 of broadband B2C +29 +2
Slide 9: Q3 2020 Europe
Q3 2020 Europe Effective marketing refresh driving commercial turnaround; total revenues trend improving QoQ, despite greater impact from roaming and after-effect of stronger IT&S in earlier quarters in €m Q3 20 yoy cb 9m 20 yoy cb Revenue evolution (in €m) Revenues 2,636 -3.7% 7,864 -3.3% 2,737 Ret
Slide 10: Q3 2020 Spain
Q3 2020 Spain Back to positive net adds paving the way to better financials in the medium term in €m Q3 20 yoy cb 9m 20 yoy cb 85% Convergence as % of broadband B2C customer base +1pt yoy Revenues 1,237 -5.6% 3,739 -5.0% Retail services 860 -7.7% 2,639 -6.5% Convergent services* 488 -5.8% 1,508 -3.8
Slide 11: Q3 2020 Africa & Middle East
Q3 2020 Africa & Middle East Back to revenue growth target in €m Q3 20 yoy cb 9m 20 yoy cb 30.9 m +37% +19% Data revenue growth Q3 20 Revenues 1,474 +5.1% 4,320 +4.2% 4G customers yoy Retail services 1,263 +7.1% 3,707 +6.9% Mobile only services 1,116 +6.0% 3,280 +6.1% Fixed only services 140 +15.3%
Slide 12: Q3 2020 Enterprise
Q3 2020 Enterprise Improved quarterly trend in an environment still challenged by Covid in €m Q3 20 yoy cb 9m 20 yoy cb Revenues 1,898 -1.7% 5,757 -1.4% Fixed only services 952 -2.0% 2,910 -1.6% +5% yoy growth in 9m20 Voice 303 -3.4% 935 -3.0% Data 649 -1.3% 1,975 -0.9% IT & integration services 734
Slide 13: Specific Topics
Specific Topics - Focus on FTTH monetisation in France - Infrastructure strategy execution update 13
Slide 14: Cumulated co-financing proceeds received as of Q3 amount to €2.4bn
Cumulated Co-financing proceeds* received as of Q3 20 amounts to € 2.4 Bn in private areas, slightly less than 50% of total long-term estimated potential ** Total Co-financing potential in Private areas (very dense and medium dense areas): - Co-financing proceeds accelerated thanks to the setting up
Slide 15: Delivering on the creation of a European tower company
Delivering on the creation of a European tower company Managing mobile passive infrastructure as an independent business to capture market growth • Carved-out entity under Orange ownership with dedicated management accountable for performance • Appropriate governance and contractual relationships wi
Slide 16: European Fibercos: creating leading FTTH wholesaler entities
European Fibercos: creating leading FTTH wholesaler entities Execution on track : signing target in H1 21 for both French and Polish entities Key principles: • Orange Concessions : 4.4 m lines in PIN (rural) areas . Sale of a co-controlling stake • Orange Poland : 2.4 m lines in low and mid dense ar
Slide 17: Conclusion
Conclusion 17
Slide 18: Guidance 2020
Guidance 2020 2020 EBITDAaL, yoy Around -1% eCAPEX incl. RAN sharing deals, yoy decrease Organic Cash Flow (telecom) > €2.3bn Net debt / EBITDAaL (telecom) Around 2x in the medium term Guidance € 0.70, out of which € 0.40 interim dividend Dividend* update to be paid on Dec. 9th. *Subject to sharehol
Slide 19: Appendices
Appendices 19
Slide 20: FTTH roll-out and eCAPEX in France
COVID crisis and 45.7m VHBB** connectable lines transfer of assets drove lower FTTH connectable lines in France FTTH connectable lines in Spain FTTH connectable lines in Poland eCAPEX, despite +43% +6% +20% acceleration in 20.9m 14.8m 4.8m FTTH rollout 14.6m 14.0m 4.0m Q3 19 Q3 20 Q3 19 Q3 20 Q3 19
Slide 21: Convergent B2C customer base in million
Convergent B2C customer base in million % of broadband B2C customer base Convergence, France* Spain Poland 5.82 3.04 3.00 2.99 2.95 2.96 1.44 the bedrock of 5.80 5.80 5.80 84% 85% 1.39 1.41 54% 64% our strategy 5.77 1.33 1.37 55% 61% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19