Orange Polska S.a. · GPW:OPL
Orange Polska — Q3 2024 Earnings Presentation
21 slides from Orange Polska's earnings presentation, Oct 24, 2024
Slide 1: Orange Polska 3Q 2024 results
Orange Polska 24 October 2024 3Q 2024 results .Grow Orange People 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: Highlights & Business review
Highlights & Business review Liudmila Climoc Chief Executive Officer 3
Slide 4: Solid 3Q'24 commercial performance and financial results
Solid 3Q’24 commercial performance and financial results Consistent commercial momentum ▪ Good pace of net customer additions and ARPO growth in all key telecom services ▪ Challenging environment on the business market Solid financial results ▪ Strong revenue from core telecom services offset by dec
Slide 5: 3Q'24 commercial performance sustained good balance between volume and value growth
3Q’24 commercial performance sustained good balance between volume and value growth PLN Convergence ARPO +5.0% yoy PLN Fixed broadband-only ARPO PLN Mobile-only handset ARPO 126.0 66.8 +3.5% yoy 30.3 +1.6% yoy Higher convergence net Good fibre customer base growth Solid net customer additions custom
Slide 6: Financial review
Financial review Jacek Kunicki Chief Financial Officer 6
Slide 7: Solid 3Q/9M'24 financial results
Solid 3Q/9M’24 financial results in PLNm 3Q’24 yoy 9M’24 yoy ▪ Growth rate of core telco services accelerated revenues 3,105 -0.3% 9,309 -1.8% (+6.1% yoy), helping to stabilise top line in 3Q EBITDAaL 867 +3.1% 2,520 +3.9% ▪ Strong margin from core business ▪ Major headwinds from CPI and energy resa
Slide 8: 3Q revenue stable yoy with strong growth from core telecom services
3Q revenue stable yoy with Revenue evolution strong growth from core (yoy change in %) 6.1% telecom services 4.6% 3.8% 4.2% 4.7% 3.3% -0.3% Total reported -1.8% -3.1% -0.3% Core telecom services* 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 ▪1 Core telecom services* (+6.1% yoy) Revenue evolution breakdown Strong p
Slide 9: 3Q EBITDAaL +3.1% yoy with strong growth of margin from core business
3Q EBITDAaL +3.1% yoy EBITDAaL evolution with strong growth of (yoy change in %) margin from core business 4.9% 3.8% 2.3% 2.3% 3.1% 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 EBITDAaL evolution breakdown (yoy change in PLNm) +3.1% ▪ Solid and improving performance of direct 1 margin from core business (+PLN 55m
Slide 10: Solid 9M Organic Cash Flow and balance sheet
Solid 9M Organic Cash Organic Cash flow evolution breakdown in 9M 2024 in PLNm Flow and balance sheet yoy change +162 -310 +65 -51 -50 -184 2,650 -172 OCF evolution mainly reflects: -1,505 ▪ EBITDAaL growth 134 -443 664 ▪ increase of working capital in 9M’24 linked with ICT projects and higher capit
Slide 11: Summary
Summary Liudmila Climoc Chief Executive Officer 11
Slide 12: Summary
Summary Solid commercial performance and financial results in 9M on track with full- year outlook In 4Q full concentration on the highest commercial season 5G Focus on new 5G spectrum acquisition process 12
Slide 13: 2024 guidance reminder
2024 guidance reminder 2024 Revenues yoy flat/low single digit decline EBITDAaL yoy low-to-mid single digit growth eCAPEX PLN 1.7-1.9bn 13
Slide 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix 15
Slide 16: EBITDAaL evolution breakdown in 9M'2024
EBITDAaL evolution breakdown in 9M’2024 EBITDAaL evolution breakdown in 9M (yoy change in PLNm) +3.9% ▪1 Solid and consistent performance of +169* -66 direct margin from underlying business -82 +73 2,520 ▪2 Cost transformation & efficiency 2,426 initiatives** compensate headwinds from CPI and energy
Slide 17: Reconciliation of operating performance measure to financial statements
Reconciliation of operating performance measure to financial statements Disclosures on performance measures have been presented in the Note 2 to Condensed IFRS Quarterly Consolidated Financial Statements of the Orange Polska Group for the 3 months ended 30 September 2024 (available at https://www.or
Slide 18: Details of bottom line evolution in 3Q and 9M 2024
Details of bottom line evolution in 3Q and 9M 2024 in PLNm 3Q’24 3Q’23 Change 9M’24 9M’23 Change EBITDAaL 867 841 +26 2,520 2,426 +94 Gains on disposal of assets 11 11 0 75 125 -50 D&A of PPE and intangible assets* -522 -494 -28 -1,535 -1,483 -52 Add-back interest expense on lease liabilities 37 36
Slide 19: Details of organic cash flow evolution in 3Q and 9M 2024
Details of organic cash flow evolution in 3Q and 9M 2024 in PLNm 3Q’24 3Q’23 Change 9M’24 9M’23 Change Net cash flow from operating activities before change in 904 852 +52 2,650 2,488 +162 working capital Change in working capital* -44 48 -92 -172 138 -310 Net cash flow from operating 860 900 -40 2,
Slide 20: Glossary (1/2)
Glossary (1/2) 4G/LTE Fourth generation of mobile technology, sometimes called LTE (Long Term Evolution) 5G Fifth generation of mobile technology, which is the successor to the 4G mobile network standard Fibre customer base (retail + wholesale)/ Total households connectable to our fibre network (own
Slide 21: Glossary (2/2)
Glossary (2/2) Fixed broadband-only Revenues from fixed broadband offers (excluding B2C convergent offers and equipment sales) including services TV and VoIP services FTE Full time equivalent FTR Fixed termination rate HHC (Households connectable) in fibre Households where broadband access service b