Slide 1: H1 2003: Quick return to profitability
Hi 2003; Quick return to profitability “Topline Successful program Refinancing launched Program Pro forma revenue growth) accelerating, QU: +3.3%, O27 +4149 === HA: + 3.9% 7 a REAA* 4247775) Operaungimcome 446.195" REAA iii 269.675 in H4 ~~ ~~ ~~ Strong Weciease 5 e, Positive in NegDebt: ae ie Netin
Slide 2: H1 2003: TOP Program ahead of targets & REAA-CAPEX improvement
Hi 2003: TOP Program ahead of targets & REAA-CAPEX improvement y Euros in millions +69)67% a mete at 1914 H102 —-H102Proforma Opex gain Capex gain Revenue gain —-H103 Improved performance quarter after quarter Zz
Slide 3: Top-Line program launched
> "Top-Line” program launched Fixed line Frances Stabilize ARPU) New broadband, onions.) = Wanadoo; Develop ADSL Services to Orange: corporate Grow ARPU Intemational: Fixed-Mobile-Interm Improve &. rationalize! Toperability-coopel Aiming at the upper range of +3 to +5% pre ‘ma revenue growth targets
Slide 4: H1 2003: Successful Refinancing & Deleveraging Program
Hi 2003: Successful Refinancing & Program i >» 14 Bn euros debt refinancing G)Net Debt (Bn Euros) program —Net Debt /REAA ratio a0) Debt maturity schedule * en80. - i — 2003: 9.2 Bn euros 700 2004: 9.5 Bn euros eo20 2005: 9.4 Bn euros as : 2006: 4.2 Bn euros 2007 - 2033: 26.6 Bn euros 020 =™ ° Avera
Slide 5: New segment presentation
new segment presentation Orange: Orange Wanadoo Wanadoo Fixed Line, 7 m Fixed-line, & Data Servis ae Distribution, in France Networks, arge Customel and Operators - Fixed Line, > eae oice & Data Serv. | > TP Group outside France > Other Intemational 6 segments instead of 4: towards more transparency
Slide 6: Orange: key operating figures
Orange: key operating figures* ( A continuing improvement in REAA - CAPEX f= Euros in millions: TBREAA [410p Income TGREAA - CAPEX H1 2002 H1 2003 * Pro forma figures Orange has benefited from TOP implementation 8
Slide 7: Key operating figures
5; Key operating figures* REAA improved by 347 Mn euros Euros in millions” GIREAA [EX1Op. Income GGREAA - CAPEX 3,687 Pro forma figures H1 2002 A major upturn
Slide 8: Fixed-line, Distribution, Networks, Large Customers and Operators
Fixed-line, Distribution, Networks, Large Gustomers. and Operators: Market Share* Fi group ADSL revenue contribution™ Euros in millions 9 25.0% 827% 82,0% Ae 805 79% 718% ee G4 637% aay OS O4HH O37 il Dec 01 Mar02 June02 Sept02 DecO2 Mar03 Juneo3 —-«%12002«azz00e © asz002 © azo atzoos ae 200 * : com
Slide 9: Fixed-line, Distribution, Networks, Large Customers and Operators: A proactive marketing approach
Fixediline, Distribution, Networks, large Gustomers, and|Operators: A proactive marketing approach, Innovate * Trademark by France Telecom
Slide 10: Wanadoo: key operating figures
Wanadoo: key operating figures* & Keeping momentum > Main H1 initiatives Euros in millions = Top Line + New Narrowband offers MBREAA + WiFi product launch in May [9)0p. Income [GIREAA - CAPEX + Success of Internet Directories Offers e — Top Program + Optimization of customer care services + Sales an
Slide 11: Equant: key operating figures
Equant; key operating figures* & Turnaround under way Euros in millions > Main H1 initiatives GBIREAA ~ Top Line op. Income + Introduction of GPRS and Video over IP'in product portfolio. |i e ies + Improvement on Direct Network and 64 Integration services ~ TOP Program + Significant reduction of acc
Slide 12: TP Group: key operating figures
TP Group: key operating figures* & Margin improvements Euros in millions: > Main H1 initiatives = Top Line 0p. Income + Fixed Line revenue erosion contained, TGREAA-CAPEX 956 market share gain 876 + Improvement in Mobile Market share and customer base = TOP Program + Reduction of OPEX (suppliers, co
Slide 13: Other International: key operating figures
Other International: key operating figures* & Euros in millions: increased profitability > H1 highlights =e — significant changes in perimeter - * Egypt activities transferred to GGIREAA-CAPEX 292 Orange in July 2002 FTML network transferred to Lebanese government in August 2002 * Casema soldin Janu
Slide 14: Net Debt
Net Debt ‘ Strong deleveraging on all fronts & Euros in millions: 68.019 Cash Collateral : 1,096 Mm€ Wind proceed: 4.5Bn€ Deo2002 Capita creaee Free Cash Flow NetOigpoeds Forecinpact —Gherz_ June 2000, Debt/REAA ratio already below 3 end of H1 EG
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights & Fan Euros in billions) Hi 2003 2002 Hi 2003 2002 Long Term Assets 86.307 92,740 Shareholders’ equity 4.652 -9,951 ohwhlahignacal 24385 27675 — winority interests 9,630 9,780 Currents Assets 19.976 13,847 Long term liabilities 51,784 61,876 fj of which financial of which Ca
Slide 16: 2003 guidance
2003 guidance +3 to+5Y5 2 Growth pro forma * Excluding disposals (EUR 2.7 bn in H1 including Wind proceeds in July)
Slide 17: H1 achievements have built a stronger company
Hi achievements have built & aistronger company) G48 Brie 3x15 f Program Isa success | Operational / Pxcelleneg provement underw. a an cing] A profitability t Orange) Accelerated Growth momentum ai = Benefits For all stakeholders =
Slide 18: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FRANCE TELECOM Date: September 2 nd , 2003 By: / S / P IERRE H ILAIRE Name: Pierre Hilaire Title: Direct