Orange Sa · EURONEXT:ORA
Orange Sa — Non-Deal Roadshow (2013)
20 slides from Orange Sa's roadshow presentation, 2013
Slide 1: France Telecom Orange roadshow & conference presentation
France Telecom Orange roadshow & conference presentation
Slide 2: Key financials
key financials today changes with Led
Slide 3: Key financials
key financials var. Q1 12 Q1 13 comp key in €m cb actual basis points -€250 m regulation impact revenues 10,721 10,280 -4.1% Q1 excl. regulation: -1.8% yoy vs -1.1% in Q4 12 restated EBITDA* 3,346 3,124 -6.6% -€88m regulation impact in % of rev. 31.2% 30.4% -0.8pt limited margin erosion CAPEX
Slide 4: Delivering on cost efficiency and commercial agility
delivering on cost efficiency and commercial agility continued pressure on revenues in France & Poland, growth in Spain and RoW … – revenues -4.1%* yoy, -1.8%* yoy ex reg – reprice spreading in mobile customer base in France & Poland, ARPU evolution kept under control – contract renegotiations in
Slide 5: Commercial agility and delivering on cost efficiency
2 commercial agility and delivering on cost efficiency
Slide 6: Recent developments in French regulation
recent developments in French regulation mobile fixed clear competition authority’s €0.90 PSTN rental price increase statement from June 4th − on network sharing potential − national roaming agreement framework validated VHBB − government plan: subsidies from state and local authorities to roll out
Slide 7: Sustained investments preserving our network edge
sustained investments preserving our network edge sustained investments… … to leverage network differentiation acceleration of 4G largest 4G spectrum network rollout − up to 150Mbits* download best H+ network coverage 50 cities covered in April − 65% of the population already 1m mobile custome
Slide 8: Orange France offering optimised
Orange France offering optimised Origami Zen Origami Play Origami Jet high-end plans with subsidized handset, value added 14.90€ 29.90€ 39.90€ 49.90€ from 139.99€ 159.90€ 01/2014 services, content, unlimited text (1) 14.99€ 29.99€ 31.99€ 39.99€ unlimited voice, 1h, no data 6Go, H+/4G, unlimited unli
Slide 9: Adapting our business models to market evolution
adapting our business models to market evolution low-cost high-end best network best speed as option best speed included in offers web only multichannel customer management customer management (shops & web & call centres) personalized contact and offer review handset distribution & subsidy value-add
Slide 10: In 2013, 2x accelerating OPEX decrease in France
in 2013, 2x accelerating OPEX decrease in France, with a decrease of indirect costs Orange France OPEX base* in m€ -€135m -€284m >-€500m ~14,000 13,881 13,597 direct costs ~4,400 ~4,300 ~3,950 indirect cost indirect costs ~9,600 ~9,600 ~9,650 decrease in France in 2013 2010 2011 2012 2013 10 * exclu
Slide 11: Natural attrition: a lever to reduce indirect costs in France
natural attrition: a lever to reduce indirect costs in France acceleration expectations for 2013-2015 of retirement attrition in France* FTEs evolution in France - ~-11k employees expected to leave the company (without the effect of the new Senior Part Time plan) -30k + ~+4k recruitments 2012 2013 2
Slide 12: Actions for indirect costs reduction in France
actions for indirect costs reduction in France key initiatives of Chrysalid program indirect distribution costs reduced chasing non-quality costs through customer experience optimization call centre outsourcing decreased improved customer intervention: - back-office & management support optimization
Slide 13: Delivering on cost efficiency
delivering on cost efficiency accelerating Opex decrease with indirect costs stabilization yoy change in Group Opex base, in €m +56 indirect costs +18 direct costs -58 -108 -219 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 H1 12: +74 H2 12: -167 13
Slide 14: Conclusion
conclusion today changes with Led
Slide 15: 2013 guidance confirmed
2013 guidance confirmed 2013 OpCF above €7bn maintain a strong balance sheet and secure access to close to 2x net debt / EBITDA by year-end 2014 debt markets sustainable and yield- €0.20 balance of 2012 dividend to be paid in June* oriented dividend policy at least €0.80 dividend for 2013 (unchanged
Slide 16: Appendix
appendix today changes with Led
Slide 17: Key financial achievements
key financial achievements FY12 Variation in €m actual cb Key points regulation impact: €-916m revenues 43,515 -2.7% FY excl. regulation: -0.6% yoy regulation impact €-316m restated EBITDA* 13,785 -7.4% negative impact from EC decision €-122m and forfait social €-40m in % of rev 31.7% -1.6pt
Slide 18: FY 2012 revenues
FY 2012 revenues pressure in H2 partly offset by sound revenue trends in Europe, Spain and Africa & Middle-East FY12 YoY growth, ex. reg % yoy % yoy cb in €m actual cb ex.reg +6.2% Africa & Middle-East +4.4% Group revenues 43,515 -2.7% -0.6% +4.8% Spain +2.4% France 21,431 -5.0% -2.3% 0.0% Spain
Slide 19: CAPEX
CAPEX higher CAPEX in 2012 to support growth in Spain and consolidate our network leadership in France FY12 55% of Group Capex allocated to networks CAPEX ∆ vs in €m actual to sales FY11cb Group CAPEX 5,818 13.4% +0.6pt 3.138 network 3.182 France 2,712 12.7% 1.0pt 1.157 IT 1.210 Spain 473 11.8% 1
Slide 20: Details on revenues
details on revenues 1Q13 in €m actual % yoy cb % yoy cb excl.reg Group revenues 10,280 -4.1% -1.8% France 5,068 -6.1% -3.4% mobile services 2,157 -8.1% -2.9% mobile equipment sales 119 -3.5% -3.5% fixed services 2,662 -4.3% -3.4% other 131 -11.6% -11.6% Spain 989 0.8% 3.3% mobile services 741 -2.3%