Orange Belgium Financial results FY 2016 Analysts and Investors - PowerPoint PPT Presentation

Orange Belgium Financial results FY 2016 Analysts and Investors Roadshow presentation 09 February 2017

Disclamer This presentation might contain forward-looking statements about Orange Belgium in particular for 2017. 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 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 Orange Belgium – FY 2016 Financial results

Section one Business review Michaël Trabbia Orange Belgium, CEO 3 Orange Belgium – FY 2016 Financial results

Adjusted EBITDA Total service revenues € 315.7m Orange Belgium reached the high € 1 093m end of its 2016 financial target ( € 300.2m excl. Walloon pylon tax) +14.4% +0.7% (+1.1% excl. Walloon pylon tax) Year-on-year  Year-on-year 1) Adj. EBITDA: € 280-300m Excl. Walloon pylon tax: € 300.2m • Capex € 168m 2) Mobile capex: around € 145m  2016 mobile capex: € 148.8m • -13.2% Year-on-year 4 Orange Restricted

2016 key events CRC finalized cable Festive rebranding into wholesale regulation Orange Belgium Board decision Orange Telenet MVNO Installation of a new Closing Walloon pylon Belgium rebranding termination agreement Executive team tax agreement Q1 2016 Q2 2016 Q3 2016 Q4 2016 Average mobile data Accelerated uptake of IBPT confirms Orange UEFA EURO 2016 usage > 1GB Orange Internet + TV quality of service Launch new prepaid National launch Orange Launch new postpaid “Tempo” portfolio Internet + TV offer “Animals” portfolio 5 Orange Belgium – FY 2016 Financial results

Orange Belgium’s key growth drivers starting to pay off 1 2 3 Mobile data Fixed convergence Customer monetization opportunity experience 6 Orange Belgium – FY 2016 Financial results

Leading 4G Rich device network portfolio Segmented 360° services mobile data portfolio 7 Orange Restricted

A proud 4G & 4G+ network leader developing new use cases, anytime, everywhere during the customer journey 99.6% 91.9% 99.9% 54% 4G Outdoor 4G Indoor 4G+ Brussels 4G+ National population National population Population coverage National population coverage coverage coverage 8 Orange Belgium – FY 2016 Financial results

Orange Belgium spectrum portfolio Spectrum portfolio more than sufficient to cover anticipated data growth Ending ng Year ar Tota tal 91. 1.4 4 MHz 85 MHz 92. 2.4 4 MHz 5G 700 MHz Attribution conditions to be decided… 4G 4G 10 10 10 800 MHz 2033 33 2G & 3G 11.6 10.2 12.4 900 MHz 2021 21 2G & 4G 25 25 25 2021 21 1800 MHz 3G 3G 2021 21 19.8 19.8 20 2100 MHz 4G 4G 2027 27 25 20 25 2600 MHz 9 Orange Belgium – FY 2016 Financial results

5G in preparation at Orange Belgium Focusing on capacity and preparation of core mobile network and backhauls Orange Belgium’s 5G Timeline: Investment path Peak 4G capex 2014-2015 Sufficient spectrum for 4G but extra spectrum needed for 5G 2G/3G/4G fully upgraded Spectrums network Investor Relations Meanwhile, increasing radio capacity siddy.jobe@orange.co  Multi Carrier aggregation m  Fiber backhauls NB-IOT /LTE M +32 2 745 80 92 roll out  Cell densification 10 Orange Belgium – FY 2016 Financial results

Active smartphone users reached 2.000.000 at the end of 2016 4G, and increasingly 4G+, takes the highest sales share Orange Belgium’s active smartphone penetration is catching up with EU averages 4G 85% 70% 68% 61% 48% 55% 32% 16% EU average EU average 2014 2015 2016 2014 2015 2016 % of active smartphone users / total base % of active 4G smartphone users / total base 11 Orange Belgium – FY 2016 Financial results

Total data traffic increased by 68% in 2016 80% of total data consumption is 4G/4G+ traffic 4G/4G+ users 1.4 million 48% 4G & 4G+ Orange Belgium 4G launch Total traffic up 5.5 times 3G 3G since 4G launch apr- mei- jun- jul- aug- sep- okt- nov- dec- jan- feb- mrt- apr- mei- jun- jul- aug- sep- okt- nov- dec- jan- feb- mrt- apr- mei- jun- Jul- Aug- Sep- jan- feb- mrt- Oct- Nov- Dec- 14 14 14 14 14 14 14 14 14 15 15 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 14 14 14 16 16 16 12 Orange Belgium – FY 2016 Financial results

Browsing Messaging Gaming Streaming Mobile data usage continues to grow linearly As customers fully embrace the benefits in their daily lives and work 1.5 GB 1 GB 1,330 880 860 550 510 290 250 110 EoP 2013 EoP 2014 EoP 2015 Indicative EoP 2016 usage Total users base Mobile data users base • • 13 Orange Belgium – FY 2016 Financial results

Belgian mobile prices remain among the most attractive according to the IBPT mobile price level benchmark Orange Belgium’s new portfolio leads the way for higher data users € /mo mont nth 42 € 45 40 33 € 35 30 26 € 26 € 24 € IBPT T bench chma mark, k, 25 22 € 22 € 21 € 21 € heav avy user er profile ofile 20 € 18 € 20 6H voice, unlimited 17 € SMS, 1GB 15 10 = 5 0 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 UK BE LU FR NL DE 14 Orange Belgium – FY 2016 Financial results * IBPT prices benchmark report - December 2015 and 2016

New simplified Animal portfolio Clear focus on customer experience, convergence and mobile data monetization The following roaming-options can be added to the tariff plans: - Transborder (12.1 € for 250 min. roaming, 250 min. international, 250 SMS, 250 MB) 15 Orange Belgium – FY 2016 Financial results - EU Traveler (24.2 € for 500 min. roaming, 500 min. international, 500 SMS, 500 MB)

2017 New postpaid portfolio is delivering on expectations Close to half of the new SIM-only customers opt for a tariff plan of minimum 25 euros to benefit from more data Launch date new Animal portfolio Postpaid SIM only gross adds New data centric portfolio October 2016 <25 € bundle gross adds >=25 € bundle gross adds 16 Orange Belgium – FY 2016 Financial results

4G and data usage are driving postpaid ARPU growth Ability to monetize mobile data confirmed Postpaid ARPU increased YoY in Q4 2016 +1.8% ARPU growth of 1.8 % despite impact of roaming regulation Q2 2016 Q3 2016 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q4 2016 17 Orange Belgium – FY 2016 Financial results Postpaid ARPU, annual rolling (incl. visitor roaming)

Close to 100K 4G postpaid net additions each quarter Seventh consecutive quarter in a row of postpaid growth 4G Postpaid quarterly net adds in Belgium (‘k) 28 Postpaid net adds 18 4G Postpaid net adds 9 9 8 8 3 -5 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 18 Orange Belgium – FY 2016 Financial results Orange Belgium active customers excl. M2M & MVNO

Orange Belgium’s key growth drivers starting to pay off 1 2 3 Mobile data Fixed convergence Customer monetization opportunity experience 19 Orange Belgium – FY 2016 Financial results

3-play prices further increased according to IBPT price level benchmark Current Belgian prices rank among the highest in Europe Recentl tly announced price 74 € 74 74 € 74 increases not even included 75 71 € 70 € 70 66 € 65 +1.99% 99% 59 € IBPT PT benchmark, k, very 60 January 10 th , 2017 high broadband 55 > 100 Mbps + TV + fixed voice 50 39 39 € /49 49 € 41 € 45 +4.7% 7% 39 € 40 November 16 th , 2016 = 35 30 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Orange FR DE NL BE Belgium 20 Orange Belgium – FY 2016 Financial results * IBPT prices benchmark report - December 2015 and 2016

Belgium consumers are attracted by very high speed broadband Compared to EU averages Belgium consumers are leading the pack Fixed broadband subscriptions comparison 70% 51% 63% 44% VS 37% 26% 22% 19% 21% 19% 15% 11% 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 21 Orange Belgium – FY 2016 Financial results Source: EU digital agenda – Broadband indicators July 2016