Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — FY2006 Earnings Presentation
25 slides from Orange Sa's earnings presentation, Feb 1, 2007
Slide 1: Form 6-K France Telecom
SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 February 1, 2007 Commission File No. 1-14712 FRANCE TELECOM (Translation of registrant’s name into English) 6, place d’Alleray, 7
Slide 2: France Telecom FY 2006 preliminary results
france telecom FY 2006 preliminary results February 1st, 2007
Slide 3: Cautionary statement
cautionary statement this presentation relates to France Telecom’s preliminary results for 2006 which are still in the process of being reviewed by the statutory auditors. France Telecom’s 2006 financial statements, which will be published on March 6, 2007, may differ from these preliminary results,
Slide 4: 2006: financial commitments achieved
2006: financial commitments achieved organic more than 7 Bn euros FY06 targeted Cash EUR 7.15 Bn (6.95 Bn euros including Pages Jaunes until Flow sale closing) EUR 18.54 Bn, in line with guidance (-1/-2 points versus GOM 35.9% GOM rate 2005 GOM rate) -1.4/-1.6 point* EUR 6.73 Bn, capex 13% of in lin
Slide 5: 2006: major operational achievements
2006: major operational achievements 5.8 million mobile 4.1 million Livebox 97.6 million broadband in Europe mobile subscribers subscribers (o/w 3.4m in France, (+15.1% yoy) in Europe ie 58% ADSL (+269% yoy) customers equipped) 577k IPTV clients in 486k Business France, 64k Unik phones Everywhere en
Slide 6: 2006: key milestones
2006: key milestones Orange leadership confirmed on innovation and convergence “Net & Mobile” Orange Messenger by Rebranding in Senegal, Unik fixed- Guinea & Mali mobile phone Rebranding in Autumn Collection: France, UK, more convergence, Netherlands more content and Enterprise High definition busin
Slide 7: 2006: key figures
2006: key figures unaudited preliminary figures Actual* FY05 Actual % Comparable FY06 change Basis % chg (in euro billions) FY05 Comp. Basis revenues 48.1 51.1 51.7 +7.5% +1.2% gross Operating Margin 18.0 19.0 18.5 +3.3% -2.6% -1.4pt as a % of revenues 37.3% 37.3% 35.9% / -1.6 pt** net Income, Group
Slide 8: 2006: group quarterly trend
2006: group quarterly trend 2006 quarterly revenues growth and cumulated GOM growth rate (on a comparable basis) trend 38.3% 38.7% 37.6% 37.5% +2.0% +1.2% +1.0% 36.8% +0.5% 36.4% 36.5% 35.9% 1Q06 2Q06 3Q06 4Q06 1Q 2Q 3Q 4Q cumulated GOM rate 2006 cumulated GOM rate 2005 revenues quarterly growth rat
Slide 9: 2006: group revenues by segment
2006: group revenues by segment: +1.2% growth on a comparable basis unaudited preliminary figures (in euro millions) +1,364 +71 51,702 +2,908 51,105 -444 -394 48,082 * +115 +5.2% -1.9% -4.9% 2005 Forex Impact Perimeter 2005 on a Personal Home Enterprise Eliminations 2006 Impact comparable basis €51,
Slide 10: Personal 2006: sustained performance in maturing and emerging countries
personal 2006: sustained performance in maturing countries and strong growth in emerging countries 2006 revenues analysis unaudited preliminary figures (in euro millions) +25 + 834 27,745* + 2,801 26,381 + 101 + 132 + 285 23,535 +44 +1.0% +0.4% +4.1% +17.2% +13.7% 2005 actual Forex Impact Perimeter
Slide 11: Personal 2006: main achievements
personal 2006: main achievements strong take up of Broadband subscribers base in Europe broadband 3.6 million subscribers in France (3x since the end of 2005) 931k subscribers in the UK (3x since the end of 2005) 422k subscribers in Spain (5x since the end of 2005) containment of churn level relativ
Slide 12: Home 2006: fair performance in France thanks to ADSL development
home 2006: fair performance in France thanks to ADSL development - 2006 revenues analysis unaudited preliminary figures (in euro millions) +303 22,931 22,534 +94 22,487* +85 -178 0 -198 -100 -1.0% -6.1% +0.1% -15.2% FY05 actual Forex impact Perimeter FY05 on a France Poland UK Spain Other ROW FY06 I
Slide 13: Home KPI's 2006 (1)
home KPI’s 2006 (1) strong ADSL customers growth ADSL 5.9 million Orange ADSL customers in France (estimated market share around 49.5% in France - 385K net additions in 4Q06 - 1.46 million net additions in FY06 total number of lines up to 27.74 million in 2006 (+1% yoy) fixed lines total number of F
Slide 14: Home KPI's 2006 (2)
Home KPI’s 2006 (2) Spain: ongoing migration from PSTN to ADSL and LLU: 640k ADSL customers continued 350 local exchanges unbundled at the end of 2006 (68% deployment coverage); 55% of total ADSL base are LLU subscribers; of LLU UK: Deployment of unbundling in line with FY objective in mature 485 lo
Slide 15: Enterprise 2006: ICT services revenues growth above market growth
enterprise 2006: ICT services revenues growth above market growth 2006 revenues analysis unaudited preliminary figures (in euro millions) +281 8 ,046 -54 7 ,785 -20 +83 +2 7 ,652 +184 -609 FY 05 Actual Forex Impact Perimeter Impact FY 05 on a comparable CTR Impact * Business Network Advanced Busines
Slide 16: 2006: group Gross Operating Margin by segment
2006: group Gross Operating Margin by segment gross Operating Margin unaudited preliminary figures (in euro millions) +1,024 19,039 +245 18,539 17,953 * +62 -441 -306 -0,9 GOM -1.3 GOM -2.8 GOM rate points rate points rate points yoy yoy yoy 37.3% 37.3% 35.9% FY05 actual Forex impact Perimeter FY05
Slide 17: 2006: headcounts
2006: headcounts group Headcounts, end of period headcounts in France 203,008 198,185 194,927 191,036 7,886 net departures*, in line with FY06 objectives ~ 49% of our 2006-2008 French program FY05 FY05 CB** June 06 FY06 headcounts down by 3.6% vs 2005 on a comparable basis** * permanent headcount; *
Slide 18: 2006: stability of net income group share on comparable terms
2006: stability of net income group share on comparable terms unaudited preliminary figures (in euro billions) 2005 2006 net income group share on comparable terms 3.9 3.9 / 4.1 main elements impacting the comparability: gain on asset disposal and result of discontinued activities +1.8 +3.3 impairme
Slide 19: 2006 financing: organic cash flow slightly ahead of expectations
2006 financing: organic cash flow is slightly ahead of expectations unaudited preliminary figures (in euro billions) 2005 2006 organic Cash Flow 7.48 7.15 of wich Gross Operating Margin 17.95* 18.54 of which Working Capital Requirements + 1.00 0.02 of which capex - 6.03* - 6.73 of which Early Retire
Slide 20: 2007 trends confirmed
2007 trends confirmed In a moderate market growth on main western European markets: nearly stabilisation of the gross operating margin rate in 2007 capex rate in % of revenues maintained around 13% organic cash flow of €6.8Bn excl. Pages Jaunes confirmed end of 2006 Net Debt / GOM: ~ 2.27 objective
Slide 21: France Telecom FY 2006 preliminary results
france telecom FY 2006 preliminary results February 1st, 2007
Slide 22: Glossary (1)
glossary (1) ARPU – Consumer Fixed Services (HCS segment): average annual revenue per line for the Consumer Fixed Services is calculated by dividing the average monthly revenues on the basis of the last twelve months by the weighted average number of customers over the same period. The weighted aver
Slide 23: Glossary (2)
glossary (2) French Retail ADSL Market Share (ARCEP definition): starting from 1Q06, quarterly French ADSL market share presentation will be based on ARCEP High-speed Internet Observatory methodology. Until the end of 2005, the figures published by France Telecom covered intermediate markets (such a
Slide 24: Glossary (3)
glossary (3) Non labour expenses: operating expenses excluding labour expenses. Operating expenses excluding labour expenses included in the calculation of GOM, include external purchases and other operating expenses (net of other operating income). Non labour expenses are net of capitalized costs.
Slide 25: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FRANCE TELECOM Date: February 1, 2007 By: /S/ PIERRE HILAIRE Name: Pierre Hilaire Title: Director of Fin