Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Investor Day (June 2004)
30 slides from Orange Sa's investor day presentation, Jun 10, 2004
Slide 1: Building the integrated broadband communication services Group
France Telecom investor day, June 10th 2004: Building the integrated broadband communication services Group 1
Slide 2: FT Personal Strategy
orange’ Fl) Personal Strategy
Slide 3: FT / Orange Personal Strategy
FT / Orange Personal Strategy portfolio market based leveraging development segmentation top line international growth assets portfolio new strength services customer track focused innovation record growth distribution One Orange channels within One FT common infrastructure operational excellence Or
Slide 4: FT / Orange Personal Strategy
FT / Orange Personal Strategy portfolio needs based leveraging development segmentation top line international growth assets portfolio new strength services customer track focused record growth innovation distribution One Orange channels within One FT common infrastructure operational excellence Ora
Slide 5: Fundamentals of Customer Needs Based Segmentation
Fundamentals of Customer Needs Based Segmentation ! Developing greater customer intimacy – Implementing needs-based customer segmentation – Investing in skills, capabilities and systems – Disciplined and segmented market research, CRM ! Differentiation based on customer segmentation – All the elemen
Slide 6: Fundamentals of Customer Needs Based Segmentation
Fundamentals of Customer Needs Based Segmentation AWARENESS ACQUISITION GROWTH RETENTION BILLING & RETAIL NETWORK PAYMENTS BRAND WEB HANDSET CARE AWARENESS CALL PRO-ACTIVE SERVICES CENTRES COMMS Differentiation across all stages of the customer journey 6
Slide 7: Insert video – Customer segmentation
- Insert video – Customer segmentation - 7
Slide 8: Differentiation - Signature Devices
Differentiation - Signature Devices Extension of Signature Series in 2004 ! Active involvement in specification and design of phones ! Full multimedia capability – Integrated camera – Color screen – MMS ! Distinctive, user friendly Orange interface – One touch access to all key services through comm
Slide 9: Differentiation - Signature Devices
Differentiation - Signature Devices Orange UK Signature Device Evolution ! Increasing share of new customer contracts 80 30% – 28% UK (Mar 2004) 70 Monthly Signature device additions ('000's) 25% 60 – 15% France (Mar 2004) % of new customer contracts 20% 50 ! Higher ARPU generation 40 15% than avera
Slide 10: Differentiation - Orange World Multimedia Services
Differentiation - Orange World Multimedia Services ! Segmented portal experience ! Personalisation “Your Page” is a key feature – 23% of Orange France customers personalised their home page – 3.5 times more visits to Orange World ! Simple/transparent pricing of data bundles – Orange France: €6/€10 o
Slide 11: Differentiation - Orange World Multimedia Services
Differentiation - Orange World Multimedia Services ! Distinctive icon – One click access to Orange World ! Dynamic homepage – Constantly updated, content-rich – Not a static icon menu – “Add to your page” easy personalisation feature ! Open Browsing – Surf internet without restrictions – Innovative
Slide 12: Increased Usage of New Services
Increased Usage of New Services Orange France MMS evolution Monthly MMS Usage (M) % base enabled 8 20% 7 6 MMS Usage 15% MMS enabled 5 4 10% 3 2 5% 1 0 0% Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Development of user communities drives usage of new services and ARPU growth 12
Slide 13: Innovation - M2M Connect Platform
Innovation - M2M Connect Platform ! Orange first to launch end-to-end solution working with its partners ! Web-based pan-European M2M Connect platform ! Simple and intuitive with single customer interface ! Focused end-to-end solutions to the vending machine industry M2M Connect platform delivers a
Slide 14: Innovation - FT Transversal Dynamic Address Book
Innovation - FT Transversal Dynamic Address Book 1. Choose communication service 2. Select address PTT PTT IM IM email email 1. Check status of contacts (presence, location, availability) Voice Voice Contacts Contacts SMS SMS 2. Select communication service Chat Chat MMS MMS Video Video Simplifying
Slide 15: Innovation - Needs Based Marketing
Innovation - Needs Based Marketing ! Innovative marketing campaigns clearly targeted to: – increase ARPU of our existing customers – remove barriers to adoption of new services ! Dedicated in-store Orange Coaches ! Highly successful “Learn” campaign – Orange recognised by customers as the only opera
Slide 16: Insert video – Advertising Orange France
- Insert video – Advertising Orange France
Slide 17: Improved Usage Trends
Improved Usage Trends Annual Rolling ARPU ! ARPU growth in France and UK for £263 £273 more than 4 quarters €375 €382 35 47 39 44 ! Voice ARPU rising in the UK and stable in France despite price pressures, reflecting increase in usage 340 335 224 229 ! Growth trend in voice usage in the UK (+3.2% y-
Slide 18: Innovation - Mobile Broadband Evolution
Innovation - Mobile Broadband Evolution ! EDGE and 3G will allow a qualitative leap in customer perception of multimedia services ! EDGE is a marginal investment on our existing 2G networks allowing national coverage ! 3G will provide greater capacity and a richer multimedia experience ! 3G will be
Slide 19: Innovation - Mobile Broadband Evolution
Innovation - Mobile Broadband Evolution UK Commercial launch in ten major cities, major rail lines and airports, Belgium Slovakia Netherlands 3G France Commercial 3G launch Switzerland Denmark in ten major cities 2004 2005 2006 EDGE Romania, Slovakia Belgium France UK 3G Roll-Out France 3G Roll-Out
Slide 20: Innovation - Interoperable Videotelephony
Innovation - Interoperable Videotelephony ! Genuinely new service for customers enabled by 3G ! Community building is the key success factor – Orange/France Telecom strongly placed to bring together communities of users – 3G Videotelephony interoperability with MaLigne and Wanadoo – Faster uptake of
Slide 21: Top-Line Growth is our Key Focus
Top-Line Growth is our Key Focus ! Market based segmentation ! Customer differentiation ! Signature devices ! OrangeWorld services Accelerating ! Innovation with FT Top-Line Growth ! Needs based marketing ! 3G service innovation ! Leverage FT group 21
Slide 22: FT / Orange Personal Strategy
FT / Orange Personal Strategy portfolio market based leveraging development segmentation top line international growth assets portfolio new strength services customer track focused innovation record growth distribution One Orange channels within One FT common infrastructure operational excellence Or
Slide 23: Focusing on Operational Excellence
Focusing on Operational Excellence ! Aggressive focus on productivity and cost reduction is new for mobile operators – Orange ahead of the game after successful implementation of TOP program from Q4 2002 – Continued rationalisation of OPEX to increase investment in marketing ! Leveraging common infr
Slide 24: One Orange within One FT
One Orange within One FT ! Achievement of TOP objectives during 2003 – Improved CAPEX management process – CAPEX benchmarking - Over €900m CAPEX saving in 2003 vs. initial budget – Roaming capture rate increased 11% y-o-y and International traffic carriage by FT Networks & Carriers increased by 8% –
Slide 25: FT / Orange Personal Strategy
FT / Orange Personal Strategy portfolio market based leveraging development segmentation top line international growth assets portfolio new strength services customer track focused innovation record growth distribution One Orange channels within One FT common infrastructure operational excellence Or
Slide 26: FT / Orange Balanced Growth Portfolio
FT / Orange Balanced Growth Portfolio 100% Madagascar Egypt Cameroon Cote D'Ivoire Wireless Penetration Remaining (%) Customer growth 75% driven markets Romania Botswana Poland 50% Slovakia France 25% Belgium Switzerland Netherlands ARPU / usage growth UK driven markets Denmark 0% 0% 10% 20% 30% 40%
Slide 27: FT/Orange Portfolio
FT/Orange Portfolio 2003 Market Position Revenue and EBITDA (2003-2002) Pro forma Pro forma 2003 Revenue EBITDA EBITDA Market Share Position growth growth margin France 49% 1 4% 21% 43% UK 26% 1 7% 20% 34% Belgium 33% 2 16% 37% 37% Romania 47% 2 42% 55% 51% Switzerland 18% 3 16% 277% 26% Slovakia 56
Slide 28: Track Record in International Growth
Track Record in International Growth ! ! Double Double digit digit customer customer and and revenue revenue growth growth in in all all key key RoW RoW operations operations ! ! Western Western European European operations operations still still enjoy enjoy double double digit digit customer custom
Slide 29: Footprint Portfolio Development
Footprint Portfolio Development ! Consolidate / rationalise on existing footprint ! Assess selected growth opportunities – New licences – Acquisitions – Focus on existing regional clusters ! Ensure coherence with France Telecom group footprint Opportunistic approach to footprint expansion driven by
Slide 30: Conclusion
Conclusion portfolio market based leveraging development segmentation top line international growth assets portfolio new strength services customer track focused innovation record growth distribution One Orange channels within One FT common infrastructure operational excellence Delivering on Commitm