Orange Polska S.a. · GPW:OPL
Orange Polska — Q1 2020 Earnings Presentation
21 slides from Orange Polska's earnings presentation, Apr 29, 2020
Slide 1: Orange Polska 1Q'2020 results
Orange Polska 1Q’2020 results 29 April 2020 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 are presented in the Note 2 to Condensed IFRS Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 31 March 2020 (available at http://orange-ir.pl/resu
Slide 4: Contents
Contents 1. Highlights 2. Financial review 3. Conclusions 4. Q&A session 4
Slide 5: Highlights
Highlights Jean-François Fallacher Chief Executive Officer 5
Slide 6: 1Q performance confirms solid OPL fundamentals built within the Orange.one strategy
1Q performance confirms solid OPL fundamentals built within the Orange.one strategy Strong commercial and financial results in 1Q underscore OPL turnaround… 0.9% yoy revenue increase driven by expanding core telco services and very strong ICT performance Solid commercial volumes, with outstand
Slide 7: Initial impact of COVID-19 pandemic on OPL
Initial impact of COVID-19 pandemic on OPL Mobile voice traffic (in min) +44% Telecom networks more essential than ever: fixed network critical Distribution: c.50% of POS closed since mid March, strong push on online and Feb 20 Mar 20 telesales; sanitary protective measures for employees working in
Slide 8: Strong fibre customer growth in 1Q
Strong fibre customer growth in 1Q VHBB (fibre+VDSL): 42% of total Fibre households connectable – Fibre customer base up 41% yoy broadband customer base (in k) (in k) network rollout on track +2% (in k) 12.8% 12.4% +44 11.3% +47 2,616 4 204 4 393 +33 2,576 3 543 564 520 22% 23% 399 15% 22% 1Q'19 4Q'
Slide 9: Value creation visible through growing customer base, improving ARPO trend and ongoing business transformation
Value creation visible through growing customer base, improving ARPO trend and ongoing business transformation Growing convergence Growing B2C convergent Improving mobile handset Strong mobile post-paid net adds ARPO customers ARPO trend +2,8% +2.8% quarterly churn in +2.5% convergence COMMERCIAL yo
Slide 10: Financial review
Financial review Jacek Kunicki Chief Financial Officer 10
Slide 11: 1Q'20 financial results key highlights
1Q’20 financial results key highlights in PLNm 1Q’20 YoY key points +9% yoy growth of core revenues driven by much revenues 2,804 +0.9% better trend in core telco services and very strong quarter for IT/IS EBITDAaL 676 +6.0% Driven by improving direct margin evolution and further indirect costs
Slide 12: Revenue growth driven by core telecom services and IT/IS
Revenue growth driven by core telecom services and IT/IS Revenue evolution Revenues combining convergence, mono mobile and mono yoy change +9.1%* broadband up 3.3% yoy (vs +1.4% in Q4’19 and in Q3’19) mainly due to better ARPO trend (value strategy and some core +5,4% future-proof monetisation of
Slide 13: 1Q EBITDAaL +6% yoy due to improving direct margin and 4% yoy drop in indirect costs
1Q EBITDAaL +6% yoy due to improving direct margin and 4% yoy drop in indirect costs; no material impact of COVID-19 crisis in 1Q Direct margin: EBITDAaL evolution Reflects much better trend in core service revenues (yoy change in PLNm) and in IT/IS 676 Ongoing pressure from legacy services (P
Slide 14: Bottom line affected by non-cash foreign exchange losses on EURO denominated long-term leasing liabilities
Bottom line affected by non-cash foreign exchange losses on EURO denominated long-term leasing liabilities 1Q’20 1Q’19 in PLNm Change IFRS16 IFRS16 EBITDAaL 676 638 +38 D&A of PPE and intangible assets -608 -583 -25 interest expense on lease liabilities 12 10 +2 adjustments -3 2 -5 gains on disposal
Slide 15: Cash flow in 1Q reflects EBITDAaL growth, seasonally high payments for capex and lower cash proceeds
Cash flow in 1Q reflects EBITDAaL growth, seasonally high payments for capex and lower cash proceeds from sale of assets 1Q’20 1Q’19 in PLNm Change IFRS16 IFRS16 Net cash flow from operating activities 690 630 +60 before change in working capital Change in working capital -95 -101 +6 Net cash flow f
Slide 16: Conclusions
Conclusions Jean-François Fallacher Chief Executive Officer 16
Slide 17: 1Q results confirm our turnaround, while next quarters will require compensating measures
1Q results confirm our turnaround, while next quarters will require compensating measures to limit the impact of the COVID-19 crisis Strong commercial and financial results in 1Q Monetisation of more for more strategy coupled with ongoing cost transformation Illustration of strength of OPL fun
Slide 18: Q&A
Q&A 18
Slide 19: Orange Polska published 2019 Integrated Report
Orange Polska published 2019 Integrated Report available at: http://orange-ir.pl/results-center/annual-reports 19
Slide 20: Glossary (1/2)
Glossary (1/2) 4G fourth generation of mobile technology, sometimes called LTE (Long Term Evolution) ARPO Average Revenue per Offer data user a customer who used mobile data transmission in a given month Revenues from B2C convergent offers (excluding equipment sales). A convergent offer is defined a
Slide 21: Glossary (2/2)
Glossary (2/2) Convergent services, mobile retail and wholesale, fixed broadband, IT and integration services, Growth services equipment and B2B network solutions and adjacent services Households (HH) connectable in fibre Households where broadband access service based on fibre technology can be ren