Middle East & Africa Solid engine of growth #Orange MEA Day2019 - PowerPoint PPT Presentation

Ramon Fernandez Alioune Ndiaye Middle East & Africa Solid engine of growth #Orange MEA Day2019 Deputy CEO, Finance, Performance and Europe CEO of Orange Middle East and Africa London, June 21 st 2019

Disclaimer This presentation may contain forward-looking statements about Orange, notably on objectives and trends related to Orange’s financial situation, investments, results of operations, business and strategy. These forward-looking statements do not constitute a forecast as defined in EU Commission Regulation No. 809/2004 and although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ from the results anticipated in the forward-looking statements include, among others: the success of Orange’s strategy, risks related to information and communications technology systems generally, in particular technical failures of networks, the deterioration of the economic conditions prevailing in particular in France, in Europe and in Africa and in certain other markets in which Orange operates ,fiscal and regulatory constraints and changes, growing banking and monetary regulations requirements and the results of litigation regarding regulations, competition and other matters. More detailed information on the potential risks that could affect our financial results is included in the Registration Document filed on 21 March 2019 with the French Autorité des Marchés Financiers (AMF) and in the annual report (Form 20-F) filed on 16 April 2019 with the U.S. Securities and Exchange Commission. Other than as required by law, Orange does not undertake any obligation to update them in light of new information or future developments. 2

Over 20 years in the region, a key growth asset for the group 2 What drives growth and our sustainable competitive advantage 3 Well-positioned for continued superior performance 4 Q&A #Orange MEA Day 1

Orange MEA at a glance Tunisia (1) Mali 2003 Côte d’Ivoire 1996 Niger (2) 2008 Burkina Faso 2016 Liberia 2016 Sierra Leone 2016 Guinea-B. 2007 2009 Cameroon Botswana Jordan 2000 Egypt 1998 Central African Republic 2008 D.R.C. 2011 Madagascar 1996 1998 OMEA country 2000 2010 Orange MEA footprint (2) 1.0 m € 5.2 bn + 5.1% yoy € 0.66 bn + 12.5% yoy € 1.66 bn + 5.2% yoy 121 m 15.1 m Morocco Date of entry Mauritius Guinea 2000 1997 Senegal 2007 Key Figures 2018 – consolidated perimeter Orange Money fixed broadband mobile active customers customers customers Adj. EBITDA Op. Cash Flow Revenues (1) Under the equity method 4 (2) Mauritius not included in the Orange MEA consolidated perimeter

OMEA – Key driver of growth, margin and operating cash flow growth (cb) 13,005 88% 22% 12% 78% Share of Share of growth (cb) Group 5,563 94 in € m Orange MEA Rest of Group 87% 344 Share of Group 54% 13% 46% Share of growth (cb) Group Share of 544 41,381 87% 76% 13% 24% Share of 2018 group revenues 2018 group adj. EBITDA 2018 group OpCF 5

2017 OMEA revenue growth current perimeter (%) (1) 2009 2010 2011 2012 2013 2014 2015 2016 GDP growth current perimeter (%) (1) 2018 5.1% 2.2% 6.7% 6.3% Over past 10 years, OMEA revenues (1) grew on average faster than GDP 6 (1) Current perimeter: excludes disposals. 2016 acquisitions excluded before 2017 and included thereafter on a proforma basis

CAM MAL SEN MAD BOT NIG Presence in 19 countries with 17 controlling interests MAR SIE EGY OCI RCA (1) JOR #1 or #2 positions built up over 20 years… LIB BIS GUI BUR (points in value, 2018) Relative Value market shares First challenger position in 10 markets (1) Leadership position in 7 markets (1) RDC • • • Orange’s #1 market share relative to the Orange’s market share position relative to the second competitor in the market market leader 4.0 x 3.6 x 2.0 x 1.9 x 1.6 x 1.3 x 1.2 x 0.9 x 0.8 x 0.8 x 0.8 x 0.7 x 0.7 x 0.6 x 0.6 x 0.5 x 0.4 x Note: FY18 figures and year-on-year growth between 2017 and 2018 Source: Orange MEA 7 (1) Countries estimates based on volume market share

… reinforced by successful integration of 2016 acquisitions… 16 pt Skills in fast integration to Orange standards Clusters’ involvement Key success factors (1) Q1-19 vs. Q1-18 EBITDAaL margin growth Revenue growth Q1-19 vs. Q1-18 10% 12% 14% 16% 18% 20% 22% 24% 8% 6% Recent acquisitions outperformed Orange MEA portfolio… 2% 0% 20 pt 4% 12 pt 8 pt 4 pt 0 pt -4 pt -8 pt growth … helping boost overall Orange MEA +3.5m 2018 yoy evolution in mobile customer base Democratic OMEA Growth : 5% Republic 3/4 2018 contribution to growth of Congo in Orange Money user base Sierra Leone Burkina 1/3 2018 contribution to revenues Faso growth (cb) Liberia Bubble size proportional to revenues in € m 8 (1) Normalised EBITDAaL

… with financial exposure under strict control… Operations € 5.2 bn XAF Other XOF 2018 OMEA Healthy balance sheet monetary areas EBITDA debt / Adj. OMEA 2018 net 0.9x External funding Intra-group Debt revenues funded mostly with local debt Intra-group debt (in euros) 28% 47% 47% 72% Local debt 6% (in local currencies) 9

… and improving contribution to value creation OMEA Operating ROCE* evolution = ∕ -5% -2% Year n-1 OMEA Net Operating Assets +47% +63% Year n OMEA Adj. EBIT evolution +3.6pt +2.6pt Year n FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 16 FY 17 FY 18 10 * ROCE (n) = Adj. EBIT (n) / Net Operating Assets (n-1)

1 Over 20 years in the region, a key growth asset for the group Growth and sustainable competitive advantage drivers #Orange MEA Day 4 Q&A 3 Well-positioned for continued superior performance 2

…with total retail revenues growing steadily 6% 31% Money Data Q4’18 18% Q1’16 3% 23% 15% 8% Q4’18 Q1’16 50% 64% Acceleration of data and Orange Money Solid performance while service mix radically transformed … 82% 4% 2016 8% 2017 2018 Growth in revenues Contribution A t ransformation of service mix… Voice stabilization (share of retail revenues %) (share of retail revenues) (weight in FY18 revenues) (comparable basis) 12

2.7 2018 2.7 +6% 2016 cb 1.0 2018 2017 cb 2.6 x6 0.7 0.8 2.8 +49% Data revenues growth since 2016 … fuelled by Data, 1st engine of growth… 2017 2016 Data Mobile ARPU 107 110 104 17 2016 11 3 2018 and smartphone penetration Volume thanks to 4G 2017 (in € ) 121 121 110 3.8 3.5 3.3 4G customers (in msubs) Mobile customers (in msubs) Data revenue (in € bn) Smartphone penetration: 50% Middle East & North Africa MEA mobile revenue (in € bn) 30% Central and West Africa “ Sanza ” Orange 20USD feature phone 13

Orange Money total base … then Orange Money, 2nd engine of growth… 2017 2018 2016 135 +147% OM customer (in million) OM active customer (in million) 26% penetration in telecom base 28% 33% 2016 2017 2018 +6pt other mobile customers OM customers 334 241 +36% +81% Steady growth of Orange Money active base Orange Money Strong increase in revenues 12 15 8 2016 2017 2018 29 34 39 (in € m) 14

Data contribution 2016 0.62 0.65 +6% 48% 66% 64% 2018 2017 2016 12.5% 2018 2017 2018 11.7% 12.4% … and B2B, 3rd engine of growth … € 0.65bn B2B revenues in 2018 68% large accounts 32% other to B2B growth 0.61 2017 B2B revenues B2B B2B contribution to total revenues 2016 ICT Digitalisation Multi-services (in € bn) Our customers Our strategy  Governments  Enterprises  International organisations 15

… fuelling growth with new model of sustainable competitive Our differentiating assets as key success factors in Africa advantage... Reliable and extensive networks Regional/Local operating model € 1.6 bn spectrum on balance sheet Experienced management team 45,000 km of undersea cables Women and men: employer of choice 900,000 points of sales Partnerships with start-ups & companies Strong and renowned brand 16

5 transformation streams OMEA Operational Headquarters Dakar Orange Bank Africa Headquarters MOWALI CECOM Shared Service Centers Technocenter OCI Group Headquarters New operating model with 4 clusters Abidjan OMEA sourcing MENA Regional Headquarters Sonatel Group Casablanca 5 1 Network Operating Center … thanks to unique combination of regional scale and local agility… 4 2 3 Adapt our business model to the • • • upcoming challenges of the continent • • • • Evolve our innovation model toward greater efficiency and improved TTM Win the war for talent against competitors and other industries Strengthen our regional anchorage • • • • • MENA region Combine the best of the two worlds: Sonatel group advantage of scale and greater agility OCI group CEA region 17