Orange Polska S.a. · GPW:OPL
Orange Polska — Q1 2022 Earnings Presentation
24 slides from Orange Polska's earnings presentation, Apr 26, 2022
Slide 1: Orange Polska 1Q 2022 results
Orange Polska 26 April 2022 1Q 2022 results .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: 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 Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 31 March 2022 (available at https://www.orange
Slide 4: Highlights & Business review
Highlights & Business review Julien Ducarroz Chief Executive Officer 4
Slide 5: 1Q 2022 key messages
1Q 2022 key messages Support for Ukraine ▪ Free pre-paid starters with dedicated offers ▪ Providing facilities to host refugees ▪ Grassroot support initiatives from OPL employees and Orange Foundation Commercial performance ▪ Solid commercial results despite unstable macro environment; strong demand
Slide 6: We are actively supporting refugees from Ukraine
We are actively supporting refugees from Ukraine Dedicated commercial offers ▪ c.400k free pre-paid starters activated by refugees ▪ Free voice/sms, 30GB data, free 100min calls to Ukraine ▪ Distribution at the border, reception points, railway stations, post ▪ Calls to Ukraine 80% cheaper for all O
Slide 7: 1Q'22 financial results in line with guidance
1Q’22 financial results in line with guidance 2022 flat/low single digit very small decline growth (energy guidance due to regulatory PLN 1.7-1.9bn prices as key MTR/FTR cuts uncertainty) 1Q 2022 Results Revenues EBITDAaL eCAPEX in PLN 2.93 bn 722 m 245 m YoY +0.4% +1.8% -45% 7
Slide 8: Solid commercial performance: ARPO growth coupled with customer base expansion
Solid commercial performance: ARPO growth coupled with satisfactory customer base expansion in all key areas PLN Fibre HHC with 17.2% adoption PLN Mobile-only handset ARPO Convergence ARPO +4% yoy 6.2 M 113.7 rate 28.0 +2.9% yoy Growing convergence Strong demand for Orange fibre Solid net customer a
Slide 9: Value strategy is continuously on top of our agenda
Value strategy is continuously on top of our agenda High monetisation potential of previous price increases Our ARPO is growing in all key categories: (yoy in 1Q 2022) (mobile-only handset customer base*) +4% Convergence Customers on latest tariffs +3% Mobile-only +3% Pre-paid Customers with monetis
Slide 10: ICT performance underscores demand for digitisation
ICT performance underscores demand for digitisation ICT revenue split by key domains ▪ 1Q strong revenue growth driven by +24% ▪ Strong performance of software subsidiaries (BlueSoft and Craftware) Security IT Infrastructure ▪ Cloud adoption in customer business and technology ecosystems i.a. Networ
Slide 11: Financial review
Financial review Jacek Kunicki Chief Financial Officer 11
Slide 12: Good financial performance in 1Q 2022
Good financial performance in 1Q 2022 in PLNm 1Q’22 yoy ▪ Strong performance of core telco services and IT/IS revenues 2,931 +0.4% ▪ MTR/FTR cuts affected legacy wholesale EBITDAaL 722 +1.8% ▪ Growth driven by core revenues and cost savings ▪ Affected by surging energy prices % of revenues 24.6% +0.
Slide 13: 1Q revenue +0.4% yoy with strong performance in most major lines
1Q revenue +0.4% yoy Revenue evolution with strong performance (yoy change in %) 8.3% in most major lines 4.3% 6.7% 7.2% 7.1% 4.1% 4.5% 3.3% 2.9% Total reported 0.4% Core telecom services* 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 Revenue evolution breakdown in PLNm ▪ Core telecom services* (+7% yoy) Strong per
Slide 14: 1Q EBITDAaL +1.8% yoy as strong underlying performance offset energy prices
1Q EBITDAaL +1.8% yoy EBITDAaL evolution as strong underlying (yoy change in %) performance has offset 8.1% 6.6% surging energy prices 5.3% 3.8% 1.8% ▪ Direct margin up 2% yoy: ▪ Driven by strong revenue 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 performance ▪ Includes negative scope impact (connectivity costs f
Slide 15: Organic Cash Flow up 17% yoy leading to net debt reduction
Organic Cash Flow up Cash flow evolution breakdown 17% yoy leading to net in 1Q 2022 in PLNm debt reduction yoy change +35 -84 +118 -4 -32 +33 783 +61 OCF generation driven by: -482 ▪ EBITDAaL growth +20 ▪ Lower cash capex -151 231 ▪ Less favourable timing of working capital Net cash from Change Cas
Slide 16: Summary
Summary Julien Ducarroz Chief Executive Officer 16
Slide 17: Summary
Summary Solid 1Q results, in line with our plans with a strong underlying performance Focus on commercial growth both in volume and value Continuation of savings and transformation actions Acceleration on Green agenda: new PPA contract and boosting efforts related to circular economy We reiterate ou
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: Details of bottom line evolution in 1Q 2022
Details of bottom line evolution in 1Q 2022 in PLNm 1Q’22 1Q’21 Change EBITDAaL 722 709 +13 D&A of PPE and intangible assets -504 -576 +72 Add-back interest expense on lease liabilities 17 13 +4 Adjustment for the costs related to acquisition, disposal and -4 -10 +6 integration of subsidiaries Gains
Slide 21: Details of organic cash flow evolution in 1Q 2022
Details of organic cash flow evolution in 1Q 2022 in PLNm 1Q’22 1Q’21 Change Net cash flow from operating activities 783 748 +35 before change in working capital Change in working capital 61 145 -84 Net cash flow from operating activities 844 893 -49 CAPEX -294 -423 +129 Change in CAPEX payables* -2
Slide 22: We successfully combine growth with social responsibility
We successfully combine growth with social responsibility Environment Social Governance We have clear climate/environmenal We make new technologies a Our corporate governance is goals and tangible results supporter of economic and social designed to provide responsible ▪ Climate goals and performanc
Slide 23: 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 24: 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