Orange Belgium Sa · EURONEXT:OBEL
Orange Belgium Sa — Q4 2020 Earnings Presentation
40 slides from Orange Belgium Sa's earnings presentation, Feb 5, 2021
Slide 1: Q4 2020 Financial Results
Q4 2020 Financial Results Orange Belgium February 5, 2021
Slide 2: Disclaimer
Disclaimer This presentation might contain forward-looking statements about Orange Belgium in particular for 2020. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently co
Slide 3: Q4'20: Strong commercial and financial results despite COVID-19 crisis
Q4’20: Strong commercial and financial results despite COVID-19 crisis 2020 guidance achieved 3
Slide 4: COVID-19 impact
Section one COVID-19 impact 4
Slide 5: Initiatives to help everyone stay connected during COVID-19
Orange Belgium announced various initiatives to help everyone staying connected when fighting the COVID-19 pandemic Q4’20 initiatives: 1 5GB free data /month to all mobile customers until year-end 50GB of free internet on top of 2 the existing mobile data amount for FlyBox Orange Belgium shops remai
Slide 6: COVID-19 impact in Q4'20 on revenues and EBITDAaL
COVID-19 impact in Q4’20: €38.3m total impact on revenues yoy – mitigated on the EBITDAaL Commercial Revenues EBITDAaL lower acquisition of mobile Lower incoming Lower incoming SMS have no - €13.8m customers and convergence SMS impact on EBITDAaL Declining roaming is lower handset sales
Slide 7: Q4 2020 Highlights
Section two Q4 2020 Highlights 7
Slide 8: Go Plus: data boost & extra discounts combined with convergence
Go Plus: data boost & extra discounts combined with convergence +60% more data Go Plus price discount in combination with €4 /mobile convergence subscription 8
Slide 9: Go Plus Unlimited: highly attractive special edition
Go Plus Unlimited: highly attractive special edition 9
Slide 10: Orange Belgium launches its first Internet-only offer
Orange Belgium launches its first Internet-only offer 10
Slide 11: The city of Bruges launches Smart Parking solutions
The city of Bruges launches Smart Parking solutions We believe a relevant usage of technology can help overcome major societal issues 11
Slide 12: First telecom operator to launch SIM card of 100% recycled plastic
1st telecom operator worldwide to launch a SIM card made of 100% recycled plastic 12
Slide 13: Real-life 5G innovations in the port of Antwerp
Orange Belgium and its industrial partners showcase real-life innovations in the port of Antwerp, made possible by 5G 13
Slide 14: Nokia is selected for its future mobile radio network
Nokia is selected for its future mobile radio network Orange Belgium has selected Nokia to progressively renew its existing 2G/3G/4G mobile radio network and for the roll-out of 5G Orange Belgium will fully upgrade its existing 2G/3G/4G radio network by 2023 Goal: roll out a best-in-class, energy-ef
Slide 15: Q4 2020 Key achievements
Q4 2020 Key achievements Mobile contract excl. M2M Cable customers Net additions Mobile contract 20.3% 2.6 m 326 k excl. M2M +26 k of total postpaid +2.4% yoy Cable mobile base is customer +22 k +26.3% yoy convergent Belgium Belgium Belgium Belgium Revenues Retail service EBITDAaL eCapex revenues €3
Slide 16: Results 2020 within guidance
Results 2020 within guidance Q1’20 H1’20 9M’20 FY’20 Guidance Revenues * Slight decrease in revenues vs. 2019 on a comparable +1.9% -3.0% -2.2% -3.5% growth basis EBITDAaL €310-330 m €62.2m €148.2m €237.6m €323.5m Slight decrease vs. 2019 eCapex (including the RAN sharing -4.8% -18.7% -10.3% -
Slide 17: Operational Results
Section three Operational Results 17
Slide 18: Cable net adds returned to pre-lockdown levels
Cable net adds returned to pre-lockdown levels 25 20 25 21 22 16 17 17 8 326 288 305 280 Cable (‘000) 258 216 233 200 180 +22k +26.3% Cable customer Cable net adds customers yoy Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * variation 41 33 39 40 38 35 25 30 Convergent
Slide 19: Growth of the mobile postpaid customer base
Growth of the mobile postpaid customer base supported by success of the GO portfolio, despite highly competitive environment 2,579 2,588 2,594 2,615 2,641 31 9 21 352 385 396 430 458 26 Customer base (‘000) Net adds (‘000) 33 33 33 7 28 11 2,227 2,202 2,198 2,186 2,183 -2 -4 -3 -12 -24 Q4 2019 Q1 20
Slide 20: Mobile prepaid: slower decline in Q4
Mobile prepaid: slower decline in Q4 -14% Customer base (‘000) -8 Net adds (‘000) -16 -21 -21 532 511 -28 483 475 459 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * *Impacted by COVID-19 20
Slide 21: Average mobile data usage above 5 GB
Mobile: Average mobile data usage above 5 GB +15% +38% Average mobile data +79% 5.2 GB usage (GB) (excl. MVNO) Average mobile data usage (smartphone), +35% 5.2 +55% 4.5 4.5 15% yoy 3.7 +57% 3.2 +120% 2.5 1.8 0.3 1.3 1.3 0.9 0.3 0.6 0.5 0.9 0.1 EoP 2013 EoP 2014 EoP 2015 EoP 2016 EoP 2017 EoP 2018 Eo
Slide 22: Slight decrease in ARPOs
Slight decrease in ARPOs Quarterly B2C convergent ARPO (€) Quarterly mobile only ARPO (€) +1.6% -1.6% -2.5% -1.9% -1.5% -3.0% -3.0% -3.1% -4.0% -4.6% 76.7 75.9 75.6 75.4 73.6 20.4 20.3 20.5 19.7 7.4 19.8 6.9 6.7 6.4 6.9 6.9 6.7 6.4 7.4 6.9 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * Q4 2019 Q1 202
Slide 23: Regulatory update (1/2)
Regulatory update (1/2) 30 Sept 2020: BIPT launched a consultation on the monthly wholesale tariffs for access to the Proximus fiber network. Decision expected Q1 2021 Consultation on one-time fees launched Q1 2021, decision expected Q4. Fiber wholesale tariffs 8 Oct 2020: BIPT launched a cons
Slide 24: Regulatory update (2/2)
Regulatory update (2/2) 13 Oct 2020: BIPT granted four operators (Orange, Proximus, Telenet and Cegeka) temporary usage rights in the 3.6GHz-3.8GHz band for 5G services Dec 2020: publication of the Royal Decree permitting the BIPT to extend the license duration beyond 15 March 2021 for the 900,
Slide 25: Q4'20 update: Simplification, Digitalization, Empowerment
Q4’20 update Simplification Digitalization Empowerment Successful on-going migration Non-physical sales channels New agile teams for digital from legacy offer to GO offers boosted transformation Nokia selected for its future New and unique customer Scale-up of agility to major IT mobile
Slide 26: Financial Results
Section four Financial Results 26
Slide 27: Retail service revenues: continuous growth trajectory
Retail service revenues: continuous growth trajectory +6.5% +4.6% +2.1% +2.6% +3.0% Retail service revenues (€ m) 222.8 224.8 230.6 229.5 221.0 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * Retail service revenues yoy (comparable basis) *Impacted by COVID-19 27
Slide 28: Convergent service revenues: strong continuous growth
Convergent service revenues: attractiveness of the Love offers results in strong continuous growth +47.7% +35.8% +33.2% +27.6% +20.0% Convergent service revenues (€ m) 54.6 56.5 57.9 48.2 51.7 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * Convergent service revenues yoy *Impacted by COVID-19 28
Slide 29: Success of convergence impacts mobile only service revenues
Success of convergence impacts mobile only service revenues -2.5% -3.9% -3.7% -3.7% -7.2% Mobile only service revenues (€ m) 150.5 148.4 142.3 149.7 144.9 Q4 2019 Q1 2020 Q2 2020 * Q3 2020 * Q4 2020 * Mobile only service revenues yoy *Impacted by COVID-19 29
Slide 30: Orange Belgium Group: Q4 2020 strong EBITDAaL growth continues
Orange Belgium Group: Q4 2020 strong EBITDAaL growth continues +8.1% -3.5% 1,363.1 323.5 1,314.9 299.2 369.5 85.9 +7.9% 343.0 -7.2% 79.6 EBITDAaL (€ m) Revenues (€ m) 337.2 +7.2% 335.3 -0.6% 89.4 83.4 328.7 302.8 -7.9% +9.7% 86.0 78.4 327.7 333.9 +1.9% +7.6% 57.8 62.2 2019 2020 2019 2020 Comparable
Slide 31: Retail service revenues increased by 3.0% yoy
Retail service revenues increased by 3.0% yoy Revenues evolution (€ m) -7.2% +6.7 Convergent MVNO +9.7 service revenues +3.4 -0.7 Other +369.5 Fixed & IT service +2.7 revenues -13.8 SMS Mobile service -5.6 revenues -2.2 Roaming + -13.2 -20.0 +343.0 Q4 2020 Retail service revenues Wholesale Equipment
Slide 32: Higher retail service revenues and cost efficiencies boost EBITDAaL
Higher retail service revenues and cost efficiencies boost EBITDAaL EBITDAaL evolution (€ m) +7.9% +85.9 Retail service +1.9 +79.6 +6.7 revenues +3.1 Wholesale -13.2 revenues +27.8 + Equipment sales and other -20.0 revenues -26.5 Q4 2019 Revenues Direct Labor Indirect Q4 2020 Reported costs costs co
Slide 33: Q4 2020 eCapex
Q4 2020 eCapex eCapex (€ m) +16.1% 16.5% 16.5% 70.9 61.1 10.2 8.3 Net debt €144.9 m 60.7 52.7 Net debt/EBITDAaL 0.5x Q4 2019 Q4 2020 Cable capex incl. CPE, IT & Network, etc. Core capex Total capex to total revenues ratio 33
Slide 34: Cable operations – Another quarter of positive EBITDAaL
Cable operations – Another quarter of positive EBITDAaL Revenues Variations €39.3 m +28% EBITDAaL: €7.0 m +€3.7 m eCapex: €10.2 m +22% Operating cash flow: - €3.2 m +€1.9 m 34
Slide 35: Dividend
Section five Dividend 35
Slide 36: Proposal to pay dividend of €0.50 for financial year 2020
Proposal to pay dividend of €0.50 for financial year 2020 Maintaining a balanced and sound financial position Orange Belgium aims to provide an appropriate cash returns to equity holders while maintaining a balanced and sound financial position, thereby leaving sufficient leeway to continue to inves
Slide 37: 2021 guidance
Section six 2021 guidance 37
Slide 38: 2021 guidance
2021 guidance Guidance Revenues growth Low single-digit growth vs. 2020 Outlook COVID-19 impact in 2021: EBITDAaL €320-340 m financial and operational Wholesale price stable vs 2020 eCapex guidance includes RAN eCapex €200-220 m sharing implementation 38
Slide 39: Q&A
Section seven Q&A 39
Slide 40: Q4 2020 Financial Results
Q4 2020 Financial Results Orange Belgium February 5, 2021