Orange Sa · EURONEXT:ORA
Orange Sa — Q3 2021 Earnings Presentation
17 slides from Orange Sa's earnings presentation, Oct 20, 2021
Slide 1: Orange financial results #Q3_2021
Orange financial results #Q3_2021 26 October 2021 Ramon Fernandez Deputy CEO, Finance, Performance and Development 1 Q3 21 Results 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 2021 highlights
Section One Q3 2021 highlights Q3 21 Results 3
Slide 4: Q3 key highlights
Q3 21 key highlights Enterprise MEA OCD obtains the highly demanding Spain Safety Visa from the French IS 12% revenue growth security agency Fostering digital inclusion with 51% pop. coverage with 5G OBS & Siemens partner 2 new Orange Digital Centers to develop IT-OT convergence (total 8) From 5 to
Slide 5: Moving forward with our infrastructure projects
Moving forward with our infrastructure projects All projects on track Totem Orange Concessions Poland fiberCo European mobile Leading fiber platform 50/50 joint venture on passive infrastructure in French rural areas 2.4m FTTH lines by 2025 (France and Spain) Carve-out completion in Q4 2021 Closing
Slide 6: Q3 financial achievements
Q3 21 financial achievements Revenue EBITDAaL eCapex €10.5bn €3.6bn €1.7bn -0.4% -0.7% -1.0% yoy in Q3 yoy in Q3 yoy in Q3 +1.3% +4.5% In line with FY 21 guidance excluding co-financing in France Yoy: comparison with the same period of the previous year, on a comparable basis unless otherwise specif
Slide 7: Section Two: Business Review
Section Two Business Review 7 Q3 21 Results 7
Slide 8: Q3 2021 France
Q3 2021 France Retail services keep accelerating 3.7% in €m Q3 21 yoy cb 9M 21 yoy cb Nearly stabilization of revenues Revenues 4,483 -4.1% 13,433 -1.7% excl. cofi. at -0.4% yoy in Q3 1,2% Retail services 2,723 +1.2% 8,106 +0.5% Wholesale 1,291 -15.4% 4,011 -8.1% Equipment sales 300 -0.4% 823 +8.4%
Slide 9: Q3 2021 Europe
Q3 2021 Europe Solid commercial performance in Europe. Other European Countries revenues growing +2% yoy o/w retail services +5.7% yoy Q3 Revenue evolution (in €m) in €m Q3 21 yoy cb 9M 21 yoy cb Revenues 2,583 -1.1% 7,747 -0.6% Retail services 1,741 -1.0% 5,192 -2.5% -54 11 -4 Wholesale 452 -5.0% 1
Slide 10: Q3 2021 Spain
Q3 2021 Spain Good commercial performance while pursuing operational transformation in €m Q3 21 yoy cb 9M 21 yoy cb Revenues 1,176 -4.4% 3,544 -4.9% Retail services 792 -7.9% 2,407 -8.8% Simplification of brands ongoing Wholesale 228 -1.4% 671 -1.4% Equipment sales 156 +11.9% 466 +18.1% is joining O
Slide 11: Q3 2021 Africa & Middle East
Q3 2021 Africa & Middle East Double digit growth in €m Q3 21 yoy cb 9M 21 yoy cb #1 engine of revenues growth for the Group Revenues 1,652 +12.0% 4,694 +11.2% Retail services 1,450 +15.0% 4,110 +13.6% * Wholesale 166 -6.3% 476 -5.9% Equipment sales 26 13.2% 81 +23.2% All our footprint growing Other
Slide 12: Q3 2021 Enterprise
Q3 2021 Enterprise Revenues down due to voice decline Growth engines in €m Q3 21 yoy cb 9M 21 yoy cb -1.4% +0.4% Revenues 1,864 5,704 +14% yoy in 9M Fixed only services 899 -5.2% 2,733 -4.7% IT & integration services 745 +2.1% 2,311 +6.4% Mobile 220 +3.5% 660 +3.5% > +8% yoy in 9M Revenue evolution
Slide 13: Section Three: Guidance
Section Three Guidance 13 Q3 21 Results 13
Slide 14: Guidance 2021 confirmed
Guidance 2021 confirmed 2021e 2021e before tax refund After tax refund allocation allocation EBITDAaL, yoy Around +1% Flat - eCAPEX ~ €7.3bn € 7.6 -7.7bn Organic Cash Flow (telecom) > €2.6bn > €2.2bn Net debt / EBITDAaL (telecom) Around 2x in the medium term Around 2x in the medium term Dividend €0.
Slide 15: Annexes
Annexes 15 Q3 21 Results 15
Slide 16: Normalisation of eCapex after H1 catch-up
Normalisation 54.9m VHBB** connectable lines of eCapex after o/w H1 catch-up 53.8m FTTH connectable lines FTTH connectable VHBB connectable FTTH connectable lines in France lines in Spain lines in Poland +31% 27.4m +4% +17% Q3 2021 15.9m 5.6m yoy -1.0% Q3 2021 eCapex -€18m 20.9m 15.2m 4.8m €1.7bn Q3
Slide 17: Convergent B2C customer base in million
Convergent B2C customer base in million % of broadband B2C customer base Convergence, France Spain Poland the bedrock of 5.88 3.03 1.53 3.01 3.02 1.52 54% 5.84 5.85 5.86 3.00 64% 1.48 1.50 our strategy 53% 85% 86% 67% 2.96 5.82 1.44 Q3 20 Q3 20 Q4 20 Q1 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q