• Communiqué Orange : full year 2021 financial results

    Источник: Nasdaq GlobeNewswire / 17 фев 2022 01:31:08   America/New_York

    Press release
    Paris, 17 February 2022

    Financial information at December 31, 2021

    Orange achieves all of its 2021 targets and expects to generate organic cash flow of at least 2.9 billion euros in 2022

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 11,1480.5 %2.1 % 42,5220.8 %0.6 %
    EBITDAaL 3,179(0.7)%(0.1)% 12,566(0.5)%(0.9)%
    Operating Income     2,521(54.5)%(54.3)%
    Consolidated net income     778 (84.6)%
    eCAPEX (excluding licenses) 2,106(6.2)%(6.3)% 7,6607.8 %7.4 %
    EBITDAaL - eCAPEX 1,07312.3 %14.7 % 4,906(11.3)%(11.6)%
    Organic cash-flow (telecom activities)     2,401 (3.7)%
    • Revenues up 0.8%1 for the full year 2021, driven by the solid performance of Africa & Middle East (+10.6%) and a strong increase in equipment sales (+8.5%)
    • Excellent performance in Fiber: 11.8 million fiber (FTTH) customers (+22.1%) out of 56.5 million connectable households (+19.7%). In France, the FTTH customer base recorded a year-on-year increase of 31.7%.
    • EBITDAaL 0.5% lower for the year, in line with the target

    Excluding the 2021 employee shareholding program, EBITDAaL was up 0.8% as a result of the notable performances in Africa & Middle East and Europe excluding Spain, which offset the decline in Spain, the Enterprise segment and France. Excluding co-financing, France posted year-on-year EBITDAaL growth of 1.5% with a very strong commercial performance.

    • eCAPEX rose 7.8% in 2021 to 7.7 billion euros, in line with the target, after the high level of co-financing and the pandemic-related slowdown in investment seen in 2020. eCAPEX began to decline in the second half of the year.
    • Organic cash-flow from telecoms activities stood at 2.4 billion euros, fully in line with the goal to exceed 2.2 billion euros.
    • The Shareholders' Meeting of 19 May 2022 will decide on the distribution of a dividend of 0.70 euros per share.

    Orange has set itself the following targets for 2022:

    • EBITDAaL to increase by 2.5% to 3%
    • eCAPEX no greater than 7.4 billion euros2
    • Organic cash flow from telecoms activities of at least 2.9 billion euros
    • Net debt/EBITDAaL ratio for telecoms activities unchanged at around 2x in the medium term
    • Maintaining the dividend for the financial year 2022 at 0.70 euros including an interim dividend of 0.30 euros in December 2022

    For 2023, Orange confirms all of its commitments including organic cashflow from telecoms activities of at least 3.5 billion euros.

    Commenting on the publication of these results, Stéphane Richard, Chairman and Chief Executive Officer of the Orange group, said:

    “The Group’s results reflect a solid 2021 performance. Indeed, Orange has delivered on its commitments and is confirming all its objectives for 2023, including organic cashflow of between 3.5 and 4 billion euros. Thanks to our investments, today we’re the uncontested European fiber optic leader with a vast network of over 56 million connectable households across the Group’s footprint.

    Our European leadership in convergence has also been confirmed with 11.5 million clients, and the integration of TKR in Romania and the process that is well under way in Belgium to acquire Voo are further reinforcing this.

    In France, our largest market, our commercial performance has been very strong and customer satisfaction is constantly growing.

    The dynamic in our Africa zone has been remarkable, with a 11% increase in revenues. With over 44 million 4G clients, mobile data continues its development generating revenues in this segment that are up 25%.

    Our ambitious moves into cybersecurity and banking are paying off. With revenues of 800 million euros, cybersecurity has delivered a 14% growth in 2021 while Orange Bank now has 1.7 million clients in Europe.

    Finally, our operational efficiency program “Scale Up” is well under way and we are driving our efforts forward in this regard.

    The Group’s commercial performance has also been excellent, actively contributing to the achievement of our 2021 objectives in a context marked by important challenges: the move from copper to Fiber, the transition to providing IT services and also the turnaround of the situation in Spain. So, excluding non-operational factors such as the employee share offer, our margin and organic cash-flow are growing.

    I’d like to express my gratitude to all of the Group’s teams right around the world who, thanks to their relentless application, have allowed us to deliver this excellent performance.

    With my mandate as Chairman and Chief Executive drawing to a close in the coming weeks, it is with pride that I look upon everything that we have accomplished over these past twelve years. I am confident about Orange’s future, that of a solid company that has shown itself capable of capturing new growth opportunities while at the same time strengthening its network leadership."

    ___________________________________________________________________________________

    The Board of Directors of Orange SA met on February 16, 2022 to review the consolidated financial statements for the year ended December 31, 2021. The Group's statutory auditors performed their audit procedures on those financial statements and the audit report relating to their certification will be issued at the beginning of March 2022

    More detailed information on the Group's financial results and performance indicators is available on the Orange website at https://www.orange.com/en/consolidated-results.

    Comments on Group key figures

    Revenues

    The Orange group posted 2021 revenues of 42.5 billion euros, a year-on-year increase of 0.8% after 0.5% growth in the fourth quarter.

    Africa & Middle East was the main contributor to this growth, with a year-on-year increase of 10.6%, followed by Europe excluding Spain (+2.6%) and the Enterprise segment (+0.5%). The decline in France (-1.6%) was due to a reduction in Fiber network co-financing compared to 2020.

    Retail services3 continued to expand, driven by convergent services (+1.9% year-on-year) in France and Europe excluding Spain, and mobile-only services (+4.2%) in Africa & Middle East. Fixed only services declined 2.8%. Wholesale revenues were down 6.8% due to co-financing in France, while IT&IS services and equipment sales continued to increase, the latter returning to close to their 2019 level.

    Customer base growth

    There were 11.5 million convergent customers Group-wide at December 31, 2021, up 2.1%4 year-on-year.

    Mobile services had 224.3 million access lines at December 31, 2021, up 4.3% year-on-year, including 82.0 million contracts, an increase of 4.8% compared to a year ago.

    Fixed services totaled 46.4 million access lines at December 31, 2021 (down 1.7% year-on-year), including 11.8 million FTTH access lines, which continued their strong growth (+22.1% year on year). Fixed narrowband access lines were down 13.3% year-on-year.

    Mobile Financial Services had nearly 1.7 million customers in Europe and 0.7 million customers in Africa.

    EBITDAaL

    Group EBITDAaL stood at 12.6 billion euros in 2021 (-0.5%), in line with the objective of "stable but negative" EBITDAaL. This result included an expense of 172 million euros related to the 2021 employee shareholding program that involves approximately 1% of share capital and mainly concerns France and the Enterprise segment. Excluding this program, EBITDAaL was up 0.8%. The still low level of roaming compared to 2019 was also a factor in this result.

    EBITDAaL from telecom activities was 12.7 billion euros, down 0.8%.

    Operating income

    Group operating income stood at 2,521 million euros in 2021, down from 5,537 million euros on a comparable basis in 2020.

    This decrease was mainly due to the recognition in the first half 2021 of a goodwill impairment for Spain amounting to 3.7 billion euros.

    Net income

    The Orange group's consolidated net income totaled 778 million euros in 2021, compared with 5,055 million euros in 2020.

    This decline was linked to lower operating income as well as the 2.2 billion euros in tax income recognized at the end of 2020.

    eCAPEX

    Group eCAPEX was up 7.8% to 7,660 million euros in 2021, following the slowdown in investment related to the public health crisis and the significant co-financing received in 2020. This was in line with the stated target of between 7.6 billion euros and 7.7 billion euros.

    At December 31, 2021, Orange had 56.5 million households with FTTH connectivity worldwide (up 19.7% year on year). In France, the FTTH customer base was up 31.7%.

    Organic cash flow

    Organic cash-flow from telecoms activities stood at 2.4 billion euros in 2021 (versus 2.5 billion euros in 2020), fully in line with the goal to exceed 2.2 billion euros.

    Before allocation of the tax refund received in 2020, organic cash flow amounted to 2.7 billion euros, in keeping with the return to growth that began in 2020.

    Net financial debt

    The Orange group's net financial debt at December 31, 2021 stood at 24.3 billion euros. This increase of 0.8 billion euros compared to 2020, despite the disposal of 50% of Orange Concession, was mainly the result of the tax refund allocation and telecommunication license payments (notably the 5G license in Spain).

    The net debt ratio at December 31, 2021 was 1.91x, substantially in line with the medium-term objective of around 2x.

    “Scale Up” operational efficiency program

    To ensure it achieves its objectives, in 2020 Orange launched the "Scale Up" operational efficiency program, thereby confirming its commitment to generating 1 billion euros in net savings from a defined scope5 of 13.8 billion euros in indirect costs in 2019.

    By 2021 year-end, cumulative net savings of more than 300 million euros had been generated from within that scope versus 2019. These savings were mainly the result of a structural decline in the workforce and a change in working methods precipitated by the pandemic, with positive impacts on the cost base.

    Against a backdrop of inflation and strong pressure on energy prices, Orange expects to achieve cumulative net savings of around 600 million euros by the end of 2022, a further step towards reaching its target of 1 billion euros by the end of 2023.

    Changes in asset portfolio

    On November 3, 2021, Orange completed the disposal of 50% of the capital of Orange Concessions to a consortium comprising La Banque des Territoires, CNP Assurances and EDF Invest. The sale was based on an enterprise value of 2.7 billion euros for 100% of the capital and resulted in Orange renouncing sole control over this entity and its subsidiaries.

    On December 24, 2021, Orange Belgium signed an agreement to acquire 75% minus one share of VOO SA based on an enterprise value of 1.8 billion euros for 100% of the capital. The transaction, which is part of the Group's convergence strategy, is expected to generate significant synergies linked to the transfer of VOO's MVNO business to the Orange Belgium network. The acquisition has been submitted for European Commission approval, which is expected in 2022.

    Dividend

    For the fiscal year 2021, the Shareholders' Meeting of May 19, 2022 will decide on the distribution of a dividend of 0.70 euros per share. Taking into account the 0.30-euro interim dividend paid on December 15, 2021, the balance of the dividend to be proposed to the Shareholders' Meeting will be 0.40 euros per share, to be paid in cash on June 9, 2022. The ex-dividend date will be June 7, 2022.

    For fiscal year 2022, the 2023 Shareholders' Meeting will be asked to approve a maintained dividend of 0.70 euros per share. An interim dividend of 0.30 euros per share will be paid in December 2022.

    Review by operating segment

    France

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 4,658(1.5)%(1.8)% 18,092(1.6)%(2.0)%
    Retail services (B2C+B2B) 2,7401.6 %1.6 % 10,8460.8 %0.8 %
    Convergence 1,2003.9 %3.9 % 4,6973.0 %3.0 %
    Mobile only 5774.0 %3.5 % 2,2761.8 %1.4 %
    Fixed only 963(2.4)%(2.1)% 3,872(2.4)%(2.2)%
    Wholesale 1,302(9.3)%(10.3)% 5,313(8.4)%(9.4)%
    Equipment sales 403(5.7)%(5.7)% 1,2263.3 %3.3 %
    Other revenues 21426.2 %26.5 % 7089.6 %9.9 %
    EBITDAaL     6,867(2.9)%(4.1)%
    EBITDAaL / Revenues     38.0 %(0.5 pt)(0.8 pt)
    Operating Income     2,653(28.8)%(30.3)%
    eCAPEX     4,1179.5 %9.9 %
    eCAPEX / Revenues     22.8 %2.3 pt2.5 pt

    Continued acceleration in retail services driven by an excellent commercial performance

    Orange France reached 1.4 million new fiber customers in 2021 as very solid net fiber additions continued, with 351,000 added in the fourth quarter. Fiber remains a powerful customer acquisition tool with more than 53% of new fiber customers also being new to the Group. In early 2022, Orange France crossed the threshold of 6 million fiber customers. These figures illustrate the success of its copper-to-fiber transition strategy, which has allowed it to maintain its fixed-line market share throughout the region.

    In mobile, Orange France posted strong growth in net additions in the fourth quarter (+132,000 excluding M2M), mostly driven by the success of the Orange brand premium plans following the revamp of its offers in October. Despite still-fierce competition in the last quarter of the year, Orange managed to increase all its ARPOs, including the convergent ARPO which rose 1.50 euros year on year and now exceeds 70 euros. At the same time, Orange recorded the lowest churn rate for a fourth quarter in four years.

    The financial results for the fourth quarter reflected this excellent operational performance. Revenues fell 1.5% as a result of lower co-financing levels that affected wholesale services but were stable (+0.2%) excluding co-financing, driven by retail services, where growth continued to accelerate (+1.6% in 4Q, +1.2% in 3Q, +0.4% in 2Q and -0.2% in 1Q). Excluding PSTN,6 retail services even increased 4.0%.

    For the full year 2021, EBITDAaL fell 2.9% due to the co-financing received in 2020. Excluding this co-financing, EBITDAaL rose 1.5% despite the negative impact of around 100 million euros related to the employee shareholding program launched in October.

    eCAPEX increased 9.5% from 2020 when it had dropped sharply due to the pandemic and the level of co-financing received from third parties. Having reached its peak, it began to decline in the second half of the year (-7.9%). Fiber network deployment has now exceeded 80% of 2023 targets, with 28.8 million households connectable to FTTH at the end of 2021 nationwide, including more than 16 million deployed directly in private areas.

    Europe

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 2,833(1.5)%4.3 % 10,579(0.8)%(0.0)%
    Retail services (B2C+B2B) 1,854(1.8)%4.1 % 7,046(2.3)%(1.4)%
    Convergence 7044.1 %5.5 % 2,7200.1 %0.1 %
    Mobile only 721(3.5)%(3.4)% 2,887(4.5)%(5.0)%
    Fixed only 314(13.9)%18.0 % 1,087(7.2)%0.4 %
    IT & Integration services 11516.0 %13.8 % 35215.9 %13.7 %
    Wholesale 509(2.8)%3.3 % 1,886(2.9)%(1.9)%
    Equipment sales 425(1.0)%4.0 % 1,4908.4 %8.4 %
    Other revenues 4531.3 %34.3 % 15717.9 %17.1 %
    EBITDAaL     2,830(2.9)%(3.5)%
    EBITDAaL / Revenues     26.7 %(0.6 pt)(1.0 pt)
    Operating Income     (2,933)nana
    eCAPEX     1,8931.8 %2.5 %
    eCAPEX / Revenues     17.9 %0.5 pt0.4 pt

    Improved profitability

    Revenues in Europe were down 1.5% in the fourth quarter compared to 2020 due to Spain. Excluding Spain they were up 0.5% in the fourth quarter, resulting in annual growth of 2.6% on the previous year.

    For the full year 2021, Europe managed to grow all its customer bases, in particular due to the fourth quarter when, including the integration of TKR, it achieved 58,000 mobile contract net additions excluding M2M and 34,000 fixed broadband net additions, of which 88,000 were fiber net additions.

    The decline in EBITDAaL in 2021 was limited to 2.9%, reflecting a clear improvement in profitability in the second half of the year (with a stable performance) compared to the first half (-5.9%). Europe excluding Spain rose 6.6% for the full year, due in particular to excellent performances in Poland (+5.9%) and Belgium (+9.0%).

    In Spain, revenues were down 4.0% in the fourth quarter. Retail services were still in decline but continued to improve their trend (-5.4% versus -7.9% in the third quarter). Wholesale revenues declined and equipment revenues slowed after the significant catch-up in the preceding quarters, with both having a limited impact on the margin. Revenues for the full year fell 4.7%.

    Sales figures for the quarter reflected the quest for balance between volume growth and value preservation in a particularly intense competitive environment. FTTH and mobile contract net additions remained positive, while fixed broadband net additions and convergent offers were slightly negative. In the year as a whole, offer segmentation and the attention paid to the customer experience resulted in a sharp reduction in the churn rate, a significant improvement in the development of convergent ARPO, and growth in the convergent, mobile contract and FTTH customer bases, while stabilizing that of fixed broadband.

    Spain's 2021 EBITDAaL declined 12.7%, a level similar to that of 2020, due to the repositioning of offers. A clear improvement in the trend between the first and second halves of the year (-16.2% and -9.0%) gives us confidence of continued improvement in 2022 as expected and a return to growth in EBITDAaL from 2023.

    Africa & Middle East

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 1,6879.0 %11.4 % 6,38110.6 %9.4 %
    Retail services (B2C+B2B) 1,46910.8 %12.9 % 5,57912.8 %11.4 %
    Mobile only 1,28410.6 %12.6 % 4,88412.2 %10.5 %
    Fixed only 17814.2 %17.5 % 66417.3 %18.2 %
    IT & Integration services 7(27.8)%(22.5)% 319.0 %23.0 %
    Wholesale 178(1.5)%0.9 % 654(4.7)%(5.8)%
    Equipment sales 312.1 %15.8 % 11216.5 %25.7 %
    Other revenues 9(17.8)%(15.4)% 36(14.5)%(16.1)%
    EBITDAaL     2,26516.8 %15.3 %
    EBITDAaL / Revenues     35.5 %1.9 pt1.8 pt
    Operating Income     1,29127.6 %25.7 %
    eCAPEX     1,0643.8 %2.7 %
    eCAPEX / Revenues     16.7 %(1.1 pt)(1.1 pt)

    Remarkable performance continues

    Africa & Middle East recorded strong growth in revenues in the fourth quarter compared to 2020 (+9.0%).

    This performance was driven by double-digit growth in retail services (+10.8% after +15.0% in the third quarter), thanks to mobile data (+25.2%) and fixed broadband (+23.5%), both of which recorded very strong momentum in customer base growth.

    In the face of changes in Orange Money's market conditions in some of its coverage area, the Group adjusted its commercial strategy, most notably by reviewing its offer pricing. This led to an increase in Orange Money's active customer base and transaction volumes in all countries in the fourth quarter but led to a significant drop in revenues (-17.9%).

    For the full year, EBITDAaL increased 16.8% and operating margin (EBITDAaL as a proportion of revenues) rose 2 points thanks to strict cost control.

    These excellent results enable the Group to confirm all its medium-term goals in Africa & Middle East, in particular double-digit EBITDAaL growth and even faster growth in organic cash flow.

    Enterprise

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 2,0530.7 %0.2 % 7,7570.5 %(0.6)%
    Fixed only 900(5.0)%(4.5)% 3,633(4.8)%(5.7)%
    Voice 269(11.2)%(11.0)% 1,106(10.1)%(10.6)%
    Data 630(2.1)%(1.4)% 2,527(2.3)%(3.3)%
    IT & Integration services 8852.9 %0.9 % 3,1955.4 %3.6 %
    Mobile * 26916.1 %16.1 % 9296.8 %6.8 %
    Mobile only 1641.6 %0.9 % 636(1.2)%(2.0)%
    Wholesale 11(18.7)%(18.7)% 42(7.3)%(7.3)%
    Equipment sales 9465.2 %68.7 % 25039.0 %43.0 %
    EBITDAaL     970(8.3)%(5.2)%
    EBITDAaL / Revenues     12.5 %(1.2 pt)(0.6 pt)
    Operating Income     474(27.5)%(23.7)%
    eCAPEX     318(5.1)%(6.0)%
    eCAPEX / Revenues     4.1 %(0.2 pt)(0.2 pt)

    Accelerated business transformation

    The shift in customers' usage from traditional voice solutions to purely digital communication services accelerated during the pandemic. As a result of growth in IT and Integration Services, despite difficulties in the supply of electronic components, as well as the performance of mobile, revenues for the Enterprise segment were up in the fourth quarter compared to 2020 (+0.7%), and returned to growth for the full year (+0.5%).

    Revenues for IT and Integration Services now account for more than 41% of Enterprise revenues, an increase of 2 points from 2020.

    This accelerated transition from high-margin legacy activities to the Group's new growth drivers explains the 8.3% decline in 2021 EBITDAaL, which was also affected by the employee shareholding operation at the end of the year. Against this backdrop, 2022 EBITDAaL is still expected to decline slightly and the objective of the future general management of Enterprise will be to return to growth from 2023.

    International Carriers & Shared Services

    In millions of euros 4Q 2021change
    comparable
    basis    		change
    historical
    basis    		 12M 2021change
    comparable
    basis    		change
    historical
    basis
    Revenues 3812.3 %2.9 % 1,5154.2 %4.5 %
    Wholesale 2641.0 %2.0 % 1,0561.0 %1.7 %
    Other revenues 1175.2 %5.1 % 46012.3 %11.5 %
    EBITDAaL     (237)(27.9)%3.0 %
    EBITDAaL / Revenues     (15.6)%(2.9 pt)1.2 pt
    Operating Income     1,217nana
    eCAPEX     243168.1 %82.7 %
    eCAPEX / Revenues     16.0 %9.8 pt6.9 pt

    Revenues from International Carriers and Shared Services grew 2.3% in the fourth quarter. International wholesale services also rose slightly. Other revenues continue to benefit from growth in Orange Marine's cable-laying and survey activities, albeit to a lesser extent than in previous quarters.

    The decline in EBITDAaL in 2021 (-27.9%) was primarily due to increased sponsoring costs related to rights for the 2024 Paris Olympic Games and higher payroll costs related to the 2021 employee shareholding program.

    Mobile Financial Services

    In millions of euros     12M 2021change
    comparable
    basis    		change
    historical
    basis
    Net Banking Income (NBI)     10957.0 %57.8 %
    Cost of bank credit risk     (46)46.3 %46.3 %
    Operating Income     (182)9.3 %7.0 %
    eCAPEX     24(26.8)%(20.1)%

    EBITDAaL improving

    The level of Net Banking Income (NBI) increased strongly from 69 million euros in 2020 to 109 million euros in 2021 (+57.0%). This performance resulted from growth, both in volume and value, of the customer base which reached 1.7 million customers in Europe and 0.7 million in Africa. In France, almost all new customers subscribe to paid offers.

    Growth in NBI drove up EBITDAaL, which improved by 34 million euros in 2021.

    Calendar of upcoming events

    26 April 2022 - Publication of First-Quarter 2022 results
    19 May 2022 - Annual Shareholders Meeting
    28 July 2022 - Publication of First Half-Year 2022 results

    Contacts

    Press:

    Sylvain Bruno
    sylvain.bruno@orange.com
    Tom Wright
    tom.wright@orange.com

    		Financial communication:
    (analysts and investors)

    Patrice Lambert-de Diesbach
    p.lambert@orange.com
    Aurélia Roussel
    aurelia.roussel@orange.com
    Andrei Dragolici
    andrei.dragolici@orange.com
    Louise Racine
    louise.racine@orange.com
    Hong Hai Vuong
    honghai.vuong@orange.com





    Disclaimer

    This press release contains forward-looking statements about Orange’s financial situation, results of operations and strategy. 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. More detailed information on the potential risks that could affect our financial results is included in the Universal Registration Document filed on 17 March 2021 with the French Financial Markets Authority (AMF) and in the annual report (Form 20-F) filed on 18 March 2021 with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Other than as required by law, Orange does not undertake any obligation to update them in light of new information or future developments.

    Appendix 1: financial key indicators

    Quarterly data

    In millions of euros 4Q 20214Q 2020
    comparable
    basis    		4Q 2020
    historical
    basis    		variation
    comparable
    basis    		change
    historical
    basis
    Revenues 11,14811,09710,9170.5 %2.1 %
    France 4,6584,7274,744(1.5)%(1.8)%
    Europe 2,8332,8752,715(1.5)%4.3 %
    Africa & Middle-East 1,6871,5481,5159.0 %11.4 %
    Enterprise 2,0532,0382,0500.7 %0.2 %
    International Carriers & Shared Services 3813723702.3 %2.9 %
    Intra-Group eliminations (464)(463)(477)  
    EBITDAaL (1) 3,1793,2013,182(0.7)%(0.1)%
    o/w Telecom activities 3,2253,2593,241(1.1)%(0.5)%
    As % of revenues 28.9 %29.4 %29.7 %(0.4 pt)(0.8 pt)
    o/w Mobile Financial Services (46)(59)(59)22.1 %22.1 %
    eCAPEX 2,1062,2452,247(6.2)%(6.3)%
    o/w Telecom activities 2,0962,2372,238(6.3)%(6.3)%
    as % of revenues 18.8 %20.1 %20.5 %(1.3 pt)(1.7 pt)
    o/w Mobile Financial Services 109911.8 %11.8 %
    EBITDAaL - eCAPEX 1,07395693612.3 %14.7 %

    (1)  EBITDAaL adjustments are described in Appendix 2.

    31 December data

    In millions of euros 12M 202112M 2020
    comparable
    basis    		12M 2020
    historical
    basis    		variation
    comparable
    basis    		change
    historical
    basis
    Revenues 42,52242,20142,2700.8 %0.6 %
    France 18,09218,39418,461(1.6)%(2.0)%
    Europe 10,57910,66510,580(0.8)%(0.0)%
    Africa & Middle-East 6,3815,7705,83410.6 %9.4 %
    Enterprise 7,7577,7187,8070.5 %(0.6)%
    International Carriers & Shared Services 1,5151,4541,4504.2 %4.5 %
    Intra-Group eliminations (1,802)(1,801)(1,861)  
    EBITDAaL (1) 12,56612,63512,680(0.5)%(0.9)%
    o/w Telecom activities 12,69612,79912,839(0.8)%(1.1)%
    As % of revenues 29.9 %30.3 %30.4 %(0.5 pt)(0.5 pt)
    France 6,8677,0737,163(2.9)%(4.1)%
    Europe 2,8302,9142,932(2.9)%(3.5)%
    Africa & Middle-East 2,2651,9391,96416.8 %15.3 %
    Enterprise 9701,0581,023(8.3)%(5.2)%
    International Carriers & Shared Services (237)(185)(244)(27.9)%3.0 %
    o/w Mobile Financial Services (131)(165)(160)20.7 %18.3 %
    Operating Income 2,5215,5375,521(54.5)%(54.3)%
    o/w Telecom activities 2,7025,7365,715(52.9)%(52.7)%
    o/w Mobile Financial Services (182)(200)(195)9.3 %7.0 %
    Consolidated net income 778 5,055 (84.6)%
    Net income attributable to equity owners of the Group 233 4,822 (95.2)%
    eCAPEX 7,6607,1037,1327.8 %7.4 %
    o/w Telecom activities 7,6367,0707,1028.0 %7.5 %
    as % of revenues 18.0 %16.8 %16.8 %1.2 pt1.2 pt
    o/w Mobile Financial Services 243330(26.8)%(20.1)%
    EBITDAaL - eCAPEX 4,9065,5325,548(11.3)%(11.6)%
    Organic cash-flow (telecom activities) 2,401 2,494 (3.7)%

    (1)  EBITDAaL adjustments are described in Appendix 2.

    In millions of euros December 31
    2021    		December 31.
    2020
    Net financial debt (1) 24,26923,489
    Ratio of financial debt / EBITDAaL from telecom activities (2) 1.911.83

    (1)  Net financial debt as defined and used by Orange does not include Mobile Financial Services activities, for which this concept is not relevant.

    (2)  The ratio of net financial debt to EBITDAaL for telecoms activities is calculated as the ratio of the Group's net financial debt compared to EBITDAaL for telecoms activities calculated over the previous 12 months.

    Appendix 2: adjusted data to income statement items

    Quarterly data

      4Q 2021 4Q 2020
    historical basis
    In millions of euros Adjusted data,Presentation adjustments,Income statement, Adjusted data,Presentation adjustments,Income statement,
    Revenues 11,148-11,148 10,917-10,917
    External purchases (4,919)(20)(4,939) (4,877)(6)(4,883)
    Other operating income 24353296 201-201
    Other operating expense (217)(92)(309) (174)(47)(221)
    Labor expenses (2,270)(1,255)(3,525) (2,132)(59)(2,190)
    Operating taxes and levies (363)(5)(368) (340)-(340)
    Gains (losses) on disposal of fixed assets, investments and activities na2,1332,133 na155155
    Restructuring costs na(47)(47) na(14)(14)
    Depreciation and amortization of financed assets (21)-(21) (18)-(18)
    Depreciation and amortization of right-of-use assets (388)-(388) (365)-(365)
    Impairment of right-of-use assets 0(31)(31) -(52)(52)
    Interests expenses on liabilities related to financed assets (0)0na (0)0na
    Interests expenses on lease liabilities (34)34na (29)29na
    EBITDAaL 3,179771na 3,1827na
    Significant litigation (45)45na (39)39na
    Specific labor expenses (1,256)1,256na (52)52na
    Fixed assets, investments and business portfolio review 2,133(2,133)na 155(155)na
    Restructuring program costs (78)78na (66)66na
    Acquisition and integration costs (18)18na (21)21na
    Interests expenses on liabilities related to financed assets na(0)(0) na(0)(0)
    Interests expenses on lease liabilities na(34)(34) na(29)(29)

    31 December data

      12M 2021 12M 2020
    historical basis
    In millions of euros Adjusted data,Presentation adjustments,Income statement, Adjusted data,Presentation adjustments,Income statement,
    Revenues 42,522-42,522 42,270-42,270
    External purchases (17,950)(23)(17,973) (17,684)(6)(17,691)
    Other operating income 73053783 604-604
    Other operating expense (535)(165)(700) (560)(229)(789)
    Labor expenses (8,626)(1,291)(9,917) (8,465)(25)(8,490)
    Operating taxes and levies (1,890)(36)(1,926) (1,924)-(1,924)
    Gains (losses) on disposal of fixed assets, investments and activities na2,5072,507 na228228
    Restructuring costs na(331)(331) na(25)(25)
    Depreciation and amortization of financed assets (84)-(84) (55)-(55)
    Depreciation and amortization of right-of-use assets (1,481)-(1,481) (1,384)-(1,384)
    Impairment of right-of-use assets 0(91)(91) -(57)(57)
    Interests expenses on liabilities related to financed assets (1)1na (1)1na
    Interests expenses on lease liabilities (120)120na (120)120na
    EBITDAaL 12,566744na 12,6806na
    Significant litigation (134)134na (211)211na
    Specific labor expenses (1,276)1,276na (12)12na
    Fixed assets, investments and business portfolio review 2,507(2,507)na 228(228)na
    Restructuring program costs (422)422na (83)83na
    Acquisition and integration costs (51)51na (37)37na
    Interests expenses on liabilities related to financed assets na(1)(1) na(1)(1)
    Interests expenses on lease liabilities na(120)(120) na(120)(120)

    Appendix 3: economic CAPEX to investments in property, plant and intangible investment

    In millions of euros 4Q 20214Q 2020
    historical
    basis    		 12M 202112M 2020
    historical
    basis
    eCAPEX 2,1062,247 7,6607,132
    Elimination of proceeds from sales of property, plant and equipment and intangible assets 64179 163444
    Telecommunication licenses 213922 926969
    Financed assets 1668 40241
    Investments in property, plant and equipment and intangible assets 2,3993,415 8,7898,787

    Appendix 4: key performance indicators

    In thousand, at the end of the period December 31
    2021    		 December 31
    2020
    Number of convergent customers 11,533 11,295
    Number of mobile accesses (excluding MVNOs) (1) 224,311 215,026
    o/wConvergent customers mobile accesses 20,937 20,272
     Mobile only accesses 203,375 194,754
    o/wContract customers mobile accesses 82,026 78,300
     Prepaid customers mobile accesses 142,285 136,726
    Number of fixed accesses (2) 46,365 47,168
     Fixed Retail accesses 31,119 31,501
      Fixed Broadband accesses 23,491 22,701
      o/wVery high‑speed broadband fixed accesses 12,302 10,113
       Convergent customers fixed accesses 11,533 11,295
       Fixed accesses only 11,958 11,405
      Fixed Narrowband accesses 7,628 8,800
     Fixed Wholesale accesses 15,246 15,667
    Group total accesses (1+2) 270,676 262,194

    2020 data is presented on a comparable basis.

    Key indicators by country are presented in the "Orange investors data book 4Q 2021," available at www.orange.com under Finance/Results: www.orange.com/en/consolidated-results

    Appendix 5: glossary

    Key figures

    Data on a comparable basis: data based on comparable accounting principles, scope of consolidation and exchange rates are presented for previous periods. The transition from data on an historical basis to data on a comparable basis consists of keeping the results for the period ended and then restating the results for the corresponding period of the preceding year for the purpose of presenting, over comparable periods, financial data with comparable accounting principles, scope of consolidation and exchange rate. The method used is to apply to the data of the corresponding period of the preceding year, the accounting principles and scope of consolidation for the period just ended as well as the average exchange rate used for the income statement for the period ended. Changes in data on a comparable basis reflect organic business changes. Data on a comparable basis is not a financial aggregate as defined by IFRS and may not be comparable to similarly-named indicators used by other companies.

    EBITDAaL or “EBITDA after Leases”: operating income (i) before depreciation and amortization of fixed assets, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets, share of profits (losses) of associates and joint ventures, (ii) after interest on debts related to financed assets and on lease liabilities, and (iii) adjusted for significant litigation, specific labor expenses, fixed assets, investments and businesses portfolio review, restructuring programs costs, acquisition and integration costs and, where appropriate, other specific elements. EBITDAaL is not a financial aggregate as defined by IFRS standards and may not be directly comparable to similarly-named indicators in other companies.

    eCAPEX or “economic CAPEX”: (i) acquisitions of property, plant and equipment and intangible assets, excluding telecommunications licenses and financed assets, (ii) less the price of disposal of property, plant and equipment and intangible assets. eCAPEX is not a financial performance indicator as defined by IFRS standards and may not be directly comparable to indicators referenced by similarly-named indicators in other companies.

    Organic Cash Flow (telecoms activities): for the perimeter of the telecoms activities, net cash provided by operating activities, minus (i) lease liabilities repayments and debts related to financed assets repayments, and (ii) purchases and sales of property, plant and equipment and intangible assets, net of the change in the fixed assets payables, (iii) excluding effect of telecommunication licenses paid and significant litigations paid or received. Organic Cash Flow (telecoms activities) is not a financial aggregate defined by IFRS and may not be comparable to similarly-named indicators used by other companies.

    Retail services (B2C + B2B): aggregation of revenues from (i) Convergent services, (ii) Mobile only services, (iii) Fixed only services and (iv) IT & integration services (see definitions). Retail Services (B2C+B2B) revenues include all revenues of a given scope excluding revenues from wholesale services, equipment sales and other revenues (see definitions).

    Performance indicators

    Fixed retail accesses: number of fixed broadband accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and other broadband accesses (satellite, Wimax and others)) and fixed narrowband accesses (mainly PSTN) and payphones.

    Fixed wholesale accesses: number of fixed broadband and narrowband wholesale accesses operated by Orange.

    Convergence

    Convergent services: customer base and revenues from B2C Convergent retail offers, excluding equipment sales (see definition) defined as an offer combining at least a broadband access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a mobile voice contract (excluding MVNOs).

    Convergent ARPO: average quarterly revenues per convergent offer (ARPO) calculated by dividing revenues from retail Convergent services offers invoiced to B2C customers generated over the past three months (excluding IFRS 15 adjustments) by the weighted average number of retail Convergent offers over the same period. ARPO is expressed by monthly revenues per convergent offer.

    Mobile only services

    Mobile only Services: revenues from mobile offers (mainly outgoing calls: voice, SMS and data) invoiced to retail customers, excluding convergent services and equipment sales (see definitions). The customer base includes customers with a contract excluding retail convergence, machine-to-machine contracts and prepaid cards.

    Mobile only ARPO: average quarterly revenues from Mobile only (ARPO) calculated by dividing revenues from Mobile only retail services (excluding machine-to-machine and IFRS 15 adjustments) generated over the past three months by the weighted average of Mobile only customers (excluding machine-to-machine) over the same period. The ARPO is expressed as monthly revenues per Mobile only customer.

    Fixed only services

    Fixed only services: revenues from fixed retail offers, excluding B2C convergent offers and equipment sales (see definitions). It includes (i) fixed narrowband services (conventional fixed telephony), (ii) fixed broadband services, and (iii) business solutions and networks (with the exception of France, for which essential business solutions and networks are supported by Enterprise). For the Enterprise segment, fixed-only service revenues include sales of network equipment related to the operation of voice and data services. The customer base consists of fixed narrowband and fixed broadband customers, excluding retail convergence customers.

    Fixed only broadband ARPO: average quarterly revenues from fixed only broadband (ARPO) calculated by dividing the revenue from fixed only broadband retail services (excluding IFRS 15 adjustments) generated over the past three months by the weighted average of fixed only broadband customers over the same period. ARPO is expressed as monthly revenues per fixed only broadband customer.

    IT & integration services

    IT & Integration services: revenues from unified communication and collaboration services (Local Area Network and telephony, advising, integration and project management), hosting and infrastructure services (including Cloud Computing), applications services (customer relations management and other applications services), security services, video conferencing offers, machine-to-machine services (excluded connectivity) as well as sales of equipment related to the above products and services.

    Wholesale

    Wholesale: revenues from other carriers consists of (i) mobile services to other carriers including incoming traffic, visitor roaming, network sharing, national roaming and Mobile Virtual Network Operators (MVNOs), and (ii) fixed services to other carriers including national networking, services to international carriers, high-speed and very high-speed broadband access (fiber access, unbundling of telephone lines and xDSL access sales) and the sale of telephone lines on the wholesale market.

    Equipment sales

    Equipment sales: revenues from all mobile and fixed equipment sales, excluding (i) equipment sales associated with the supply of IT & Integration services, (ii) sales of network equipment related to the operation of voice and data services in the Enterprise operating segment, and (iii) equipment sales to dealers and brokers.

    Other revenues

    Other revenues: revenues including (i) equipment sales to brokers and dealers, (ii) portal, (iii) on-line advertising revenues, (iv) corporate transversal business line activities, and (v) other miscellaneous revenues.

    1         Unless otherwise stated, the changes presented in this press release are on a comparable basis
    2 Before taking into account the pending acquisition of Voo in Belgium
    3 Retail services (B2C and B2B). See definition in the attached glossary.
    4 Unless otherwise stated, the changes presented in this press release are on a comparable basis
    5         Scope corresponding to Group indirect costs excluding (i) Africa & Middle East and Mobile Financial Services, and (ii) labor expenses, other network expenses and IT expenses for Enterprise IT and integration services.
    6 Revenue related to the public switched telephone network.

    Attachment


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