Orange Belgium Financial Results Q2 2018 Bold Challenger Orange - PowerPoint PPT Presentation

Orange Belgium Financial Results Q2 2018 Bold Challenger Orange Belgium – Q2 2018 Financial Results Analysts and Investors Roadshow presentation Full Unlimited 1

Disclaimer This presentation might contain forward-looking statements about Orange Belgium in particular for 2018. 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 Orange Belgium – Q2 2018 Financial Results 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 economic situation in Europe and more specifically in Belgium, the impact of price adjustments on the customer base resulting from competitive pressure, the evolution of the customer base, the effectiveness of Orange Belgium’s convergent strategy including the success and market acceptance of the voice and data abundance plans in the business segment and of the Orange Internet & TV offers, of the Orange Belgium brand and other strategic, operating and financial initiatives, Orange Belgium’s ability to adapt to the on-going transformation of the telecommunications industry, regulatory developments and constraints and the outcome of legal proceedings, risks and uncertainties related to business activity. 2

Section one Business review Orange Belgium – Q2 2018 Financial Results Michaël Trabbia Orange Belgium, CEO 3

Orange Belgium’s confirms its commercial success as a Bold Challenger Y Convergent LOVE Retail service o customers revenues Y ) 136 K € 370m H1 2018 +14k Orange Belgium – Q2 2018 Financial Results +6.7% Quarter-on-quarter Year-on-year Total CAPEX ARPO Adjusted EBITDA Mobile contract customers € 77m Mobile only contract € 127m H1 2018 2,355 K € 21.3 / -0.9% yoy +0.1 % -13.1 % + 26k B2C convergent Quarter-on-quarter Year-on-year € 73.7 / +2.4% yoy Year-on-year 4

Orange Belgium’s key growth drivers - the bold challenger 1 3 2 Orange Belgium – Q2 2018 Financial Results Convergence Mobile data Customer monetization experience Double data with Smartphone IoT/M2M Shape & Fix Digital Orange B2C B2B B2C/B2B B2B transformation Thank You 5

Orange LOVE has already attracted 136 thousand B2C & B2B customers and keeps enriching its offer Launch of Love Unlimited 136 K B2C Convergent customers Orange Belgium – Q2 2018 Financial Results 1.5x SIM cards per convergent customer 73.7 € / +2.4 % yoy ARPO* B2C convergent customers Now also available on the SFR network Fixed Phone option In Wallonia Live app 100% coverage * Average quarterly Revenues Per Offer (ARPO) of convergent services are calculated by dividing (a) the revenues from convergent offers billed to the B2C 6 customers (excluding equipment sales) over the past three months, by (b) the weighted average number of convergent offers over the same period.

Increased share of mobile convergent customers in total postpaid base Orange Belgium’s convergent model drives mobile cross-selling LOVE customers +71 Convergent mobile customers 136 K as % of mobile contract customer base (Belgium) ~40 % of gross adds 122 103 were new customers for 10.0% 82 Orange Belgium in 1H 2018 9% 64 9.0% 50 Orange Belgium – Q2 2018 Financial Results 33 8.0% 18 11 5 7.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 6.0% 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 5.0% Convergent mobile customers 4% 4.0% +110 3.0% 207 K 2.0% 186 >50 % 156 1.0% have an out-of 123 96 pocket >25 € 0.0% 74 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 53 2016 2016 2016 2016 2017 2017 2017 2017 2018 2017 28 16 9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 7

The new wholesale regulation was decided end of June 2018 Improved wholesale pricing and better SLAs and operational model Orange Belgium – Q2 2018 Financial Results EC: As of 1 st st of August ust • Implementation of intermediary pricing  Emphasized the need to stimulate more structural, long-term competition Towar ard d beginni nning ng of 2019  Has no objection to the provisional • Improved SLAs price regime, pending the elaboration • Improved operational model of a cost model by the regulators • Single-installer • Internet-only  Urged the Belgian regulators to speed up the implementation of the cost- Develo velopme pment nt of cost st oriented ented mode del on- model going ng, public c consul nsultati ation n expec ected ed end of 2018, 8, impl plem ementati entation n mid-2019 2019 8

Orange Belgium’s key growth drivers - the bold challenger 2 1 3 Orange Belgium – Q2 2018 Financial Results Convergence Mobile data Customer monetization experience Double data with Smartphone IoT/M2M Shape & Fix Orange Digital B2C B2B B2C/B2B B2B Thank You transformation 9

Streamlined portfolio of postpaid subscriptions to improve customer mix Unlimited data as from 40 € - Unlimited calls as from € 20 Orange Belgium – Q2 2018 Financial Results 10

4G smartphone penetration increased to 65 % of total customer base Orange Belgium invested heavily to offer its customers a top 4G network Active smartphone penetration % of active smartphone users / total base Orange Belgium – Q2 2018 Financial Results 79% 70% 63% 56% 48% 4G coverage: 99.9% EoP 2Q14 EoP 2Q15 EoP 2Q16 EoP 2Q17 EoP 2Q18 (Belgian population) Active 4G smartphone penetration % of active 4G smartphone users / total base 65% 53% 39% 23% 8% EoP 2Q14 EoP 2Q15 EoP 2Q16 EoP 2Q17 EoP 2Q18 Source : Open Signal 11

Avg mobile data usage of smartphone users accelerated to +46% YTD The launch of more abundant offers has stimulated data usage in H1 2018 Orange Belgium’s average mobile data usage per month +46% Orange Belgium – Q2 2018 Financial Results +35% +26% Thanks to: +55% Eagle unlimited • +56% Abundant data tariff plans • 2.620 Double data for all LOVE customers • 2.010 +120% 1.800 1.800 1.670 1.330 1.330 1.290 1.290 1.140 880 880 860 550 510 110 250 290 EoP 2013 EoP 2014 EoP 2015 EoP 2016 EoP 2017 EoP 2016 EoP 2Q17 EoP 2017 EoP 2Q18 On total user base On smartphone user base • • 12

4G launch Orange Belgium Growth in total mobile data traffic re-accelerated to +77% yoy thanks to increase smartphone customer base and individual usage 91 % % 4G data 4G users 84 % % 1.9 million Orange Belgium – Q2 2018 Financial Results 4G data 65 % of 4G 72 % % total base 4G data Total traffic up >10 times since 4G 4G launch 3G 3G 3G Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 14 14 14 15 15 15 15 16 16 16 14 16 17 17 17 17 18 18 13

despite impact of EU-roaming Sound mobile only ARPO growth thanks to customer mix improvement Mobile only contract excl. M2M ARPO (in € ) -0.9% 21.9 21.5 21.2 21.1 21.3 Orange Belgium – Q2 2018 Financial Results Mobile only blended excl. M2M ARPO (in € ) +1.5% 18.6 18.4 18.1 18.2 18.1 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Mobile only prepaid ARPO (in € ) 6.0% 7.7 7.4 7.2 7.0 7.0 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 14

mobile contract net adds picked up in the second quarter: +26K qoq supported by convergent and attractive mobile only offers Quarterly customer base evolution (in ‘000) Quarterly net adds (in ‘000) +90 +5 29 B2C Mobile 180 convergent 163 14 26 137 21 109 89 15 Orange Belgium – Q2 2018 Financial Results 17 29 26 24 19 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 9 contract excl. M2M -7 0 -3 -4 Mobile only 2,182 2,179 2,178 2,166 2,175 -12 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 B2C mobile convergent Mobile only contract Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 -74 +22 649 607 589 582 575 Mobile only prepaid -8 -6 -18 -28 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 -41 15 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

Orange Belgium continues to build strong IoT partnerships First commercial offer on Orange Belgium’s mobile IoT network launched Orange Belgium – Q2 2018 Financial Results Orange Belgium’s Narrow Band-IoT (NB-IoT) and LTE-M network can connect millions of everyday objects to the Internet as it is designed for IoT applications that are low cost, use low data rates, and require long battery lives 16

Orange Belgium and Medialaan signed a 5 year full MVNO agreement adding 365k customers to its network as of spring 2019 Medialaan is the largest Flemish broadcaster Orange Belgium – Q2 2018 Financial Results This full MVNO agreement is more than just a contract. It is the start of a strong long-term partnership based on a shared vision and the complementarity of both companies 17

Orange Belgium’s key growth drivers - the bold challenger 3 1 2 Orange Belgium – Q2 2018 Financial Results Convergence Mobile data Customer monetization experience Double data with Smartphone IoT/M2M Shape & Fix Digital Orange B2C B2B B2C/B2B B2B transformation Thank You 18