Orange Polska S.a. · GPW:OPL
Orange Polska — Q3 2020 Earnings Presentation
21 slides from Orange Polska's earnings presentation, Oct 29, 2020
Slide 1: Orange Polska 3Q'2020 results
Orange Polska 3Q’2020 results 29 October 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, including information on data restatements for the year 2019 in connection with changes in accounting policies, have been presented in the Notes 2 and 3 to Condensed IFRS Quarterly Consolidat
Slide 4: Contents
Contents 1. Highlights 2. Financial review 3. Conclusions 4. Q&A session 4
Slide 5: Highlights
Highlights Julien Ducarroz Chief Executive Officer 5
Slide 6: Good 9M results driven by resilient core services and mitigating measures
Good 9M results driven by resilient core services and helped by our mitigating measures: full-year EBITDAaL growth guidance maintained 2020 guidance/ 9M 2020 outlook Revenue PLN 8.42bn ▪ Strong performance of core telecom services growth +0.2% yoy ▪ IT/IS in 3Q affected by pandemic related market sl
Slide 7: 3Q proved our relative resilience to the pandemic; cautious outlook
3Q proved our relative resilience to the pandemic; cautious outlook for the future due to potential economic impact of the prolonged pandemic Limited impact of the pandemic on performance to date: ▪ high demand for fixed broadband maintained ▪ much lower roaming impacted mobile revenues and margin ▪
Slide 8: Another record quarter for fibre fuels turnaround in fixed broadband
Another record quarter for fibre fuels turnaround in fixed broadband Improving total FBB net additions driven by Fibre customer base up 40% yoy Fibre accounts for 25% of total resilient sales and low churn (the best quarter ever) broadband customer base (in k) (in k) (in k) +54 +3% +44 +39 662 24 60
Slide 9: Value creation visible through strong commercial performance and cost optimisation
Value creation visible through strong commercial performance and exceptional cost optimisation Growing convergence Growing B2C convergent Mobile handset ARPO trend Strong mobile post-paid net adds ARPO customers affected by roaming excl. COMMERCIAL convergence roaming +0.7% 245 yoy change 63% 64% -0
Slide 10: Financial review
Financial review Jacek Kunicki Chief Financial Officer 10
Slide 11: 3Q'20 financial results key highlights
3Q’20 financial results key highlights in PLNm 9M’20 yoy 3Q’20 yoy key points ▪ Strong performance of core telecom services revenues 8,425 +0.2% 2,793 -2.7% ▪ ICT affected by market slowdown and higher comparable base EBITDAaL 2,143 +5.3% 742 +0.4% ▪ Direct margin affected by roaming and additional
Slide 12: Revenue decline reflects slowdown in IT/IS while core telecom services performed well
Revenue decline reflects flagged slowdown in IT/IS while good performance of core telecom services was maintained Revenue evolution ex. IT/IS +3.5% in 3Q yoy change vs +4.8% in 1H ▪ Fixed broadband only revenues continue rebounding (+2% yoy) driven by robust ARPO performance (+6.3% yoy) core +5.4%*
Slide 13: 3Q EBITDAaL flat yoy despite negative impact of the pandemic
3Q EBITDAaL flat yoy despite negative impact of the pandemic: cost savings offset decline in the direct margin ▪ Direct margin affected by the pandemic: EBITDAaL evolution ▪ Reflects strong performance of core telecom (yoy change in PLNm) services ▪ Affected by pandemic related much lower roaming 73
Slide 14: 3Q bottom line reflects much lower gains on asset disposals
3Q bottom line reflects much lower gains on asset disposals in PLNm 9M’20 9M’19 Change 3Q’20 3Q’19 Change EBITDAaL 2,143 2,036 +107 742 739 +3 D&A of PPE and intangible assets -1,862 -1,750 -112 -618 -592 -26 add-back interest expense on lease 47 51 -4 15 18 -3 liabilities adjustments -2 -12 +10 5 -
Slide 15: Cash flow in 3Q includes shift of c.PLN 120m payments from 2Q
DRAFT Cash flow in 3Q includes shift of c.PLN 120m payments from 2Q* while yoy dynamics reflects record real estate proceeds a year ago in PLNm 9M’20 9M’19 Change 3Q’20 3Q’19 Change Net cash flow from operating activities 2,060 1,951 +109 654 707 -53 before change in working capital Change in workin
Slide 16: Financial leverage down to 2.0x
Financial leverage down to 2.0x Debt after hedging breakdown net debt evolution fixed vs floating in PLNm interest rate currency exposure 6,087 100% fixed 100% PLN -418 5,727 +58 end Organic Debt & end Dec 2019 cash flow derivatives MtM Sep 2020 ▪ 1.7 years – debt average duration valuation change 2
Slide 17: Conclusions
Conclusions Julien Ducarroz Chief Executive Officer 17
Slide 18: 9M results prove strong fundamentals; full-year plans confirmed
9M results prove strong fundamentals of our business and ability to adapt. Full-year plans confirmed NPS#1 ▪ Strong commercial and solid financial results in 3Q illustrate the strength of our fundamentals and ability to adapt to unprecedented challenges ▪ Taking into account strong performance in 9M
Slide 19: Q&A
Q&A 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