Slides
Page 1
H1 2025 Results July 2025
Page 2
BUSINESS UPDATE
Page 3
3 Accelerating transformation from TelCo to TechCo bringing more value to our customers beyond best-in-class connectivity H1 2025 Key Highlights – Business Developments FiberCo Debt financing closed and equity well advanced Focus on smart capital allocation (from passive infra to IT) Strategic insurance partnership with Zurich 10-year largest retail insurance distribution deal in Spain Leveraging IA / Advanced analytics for personalized services Accelerating TelCo-to-TechCo transformation Universal retailer logic, Device-as-a-Service model New businesses (e.g. retail advertising, energy…) Accelerated B2B momentum Increased success with B2B and public administrations with innovative services (private networks, IoT, cybersecurity…) New TV experience OrangeTV renewed, including native integration with all OTT, materially enhancing customer experience ESG rating MasOrange leads the Fitch ESG rating among European operators with a 79 score
Page 4
4 Best-in-class connectivity Best-in-class entertainment Best-in-class offering beyond telco “DaaS” Finance & Insurance Alarms and Energy 1st in Global Score of Customer Experience with Fixed Network Orange brand ranks 1st in all Customer Experience categories Top customer experience Multiple content partnerships Sports offering, including football Flexible bundles providing multiple customizable options for Pay-TV customers Device financing Enabling loyalty & growth 5.3m clients in H1 25 (customer lifetime value +12% YoY) Insurance Strategic partnership with Zurich; clients H1 25 876k (+14% YoY) Energy Imminent partnership with provider; clients H1 25 358k (+80% YoY) Home security Improves churn (c.10yr alarm lifecycle vs. c.5yr telco); clients H1 25 21k (+18% YoY) Established partnerships with industry leaders Established partnerships with industry leaders Enhanced value proposition beyond best-in-class connectivity MasOrange is on a good path to unlock multiple value pools thanks to partner alliances, best-in-class technology and deep customer understanding
Page 5
5 A key milestone in the Spanish insurance sector Key highlights AI-driven personalization and growth • MasOrange and Zurich have signed a 10-year strategic alliance, marking the largest insurance distribution agreement in Spain in recent history • More than 32 million customers of both companies will benefit from the best cross-offerings of insurance and telecom services • Zurich becomes the insurance provider for MasOrange’s client offering across all its brands • Cumulative objective: >7.5m premiums with a volume of >€1.5B • MasOrange customers to benefit from personalized, 100% digital insurance offers with the best user experience, thanks to advanced data analytics and process excellence • Significant growth opportunity for the commercialization of insurance linked to growth of device sales • Potential to revolutionize the insurance sector through the use of MasOrange’s technology and AI based on the largest telco customer base Strategic retail insurance distribution partnership with Improving customer experience by offering personalized products while providing AI-driven services to our partners
Page 6
6 Tech-based customer-centric model leveraging network effects: increasing loyalty, high entry barriers and offering significant growth potential Device-as-a-Service: Unparalleled value proposition 3 Strong Pillars LA TIENDA+ 300 1,000 SKUs Dynamic pricing No inventory risk (drop shipping model) Growing portfolio Universal retailer logic Customer repeat Ability to bundle together with economies of scale Superior economics Partnership with Cetelem Best-in-class AI credit scoring No credit risk retained Up to 48 months interest-free financing Partnership with Zurich From device & home insurance to payment protection, eHealth… Comprehensive insurance proposal Long-term megatrends driving growth (ownership to usership) Spain’s largest customer base (32 million) Best-in-class data analytics & customer knowledge
Page 7
7 Mar-24 Jun-25 • Device financing combining up to 48 months and insurance • Option to provide interest-free financing • Partnerships with Non-Shielded Shielded The Device-as-a-service model allows to reach a significant churn reduction and higher revenue visibility Device distribution strategy increasing customer loyalty (1) FMC Residential – excluding digital brands (Pepephone & Simyo) - (2) Extragroup churn – FMC Residential June 25 Description Value Proposition Key KPIs (June 2025) • Largest retailer in the smartphone market in Spain • High number of quality products • Dynamic competitive prices • Goal: “one-stop-shop for any consumer electronics product” Description Benefit 5.3m DaaS ~300 Different devices Customers with DaaS (%)1 +6pp LTM Churn (%)2 (11)pp Non-DaaS DaaS
Page 8
8 Strong growth in B2B market Complete best-in-class offering with limited legacy technology revenues to protect Growth in ARPU driven by innovation and new services such as cybersecurity, VPN, cloud… Public Funds tailwind with significant share allocated to telecoms, datacentres, cybersecurity… Strong track record of contract wins in the Public Administration and Enterprise segments New contracts Extensions Renewals Growth in B2B and public administration is accelerating due to our innovation strategy and improved go-to market approach MasOrange is building strong credentials in an underrepresented sector with massive growth potential B2B contracts won in H1 2025 (examples)
Page 9
9 All the reference partners in the audiovisual world New TV experience Personalization of profiles, including parental control Simplicity of use with quick access to content Navigation enriched with automatic playback of featured videos and additional content information Ultimate football experience, improving image quality with True Motion technology and reducing signal delay with Low Latency Most advanced Infinity Homebox 4K, HDR10+ and Dolby Vision WiFi 6 decoder, Dolby Atmos by Bang & Olufsen sound for a 360° immersive experience Multi-device experience with enhanced always-on features, such as recording, Start Over, Time Shifting OrangeTV(1) renewed with native integration with all OTT becoming the most modern platform in the Spanish market (1) Also available for Masmovil Yoigo and Jazztel clients What is new?
Page 10
10 Fitch grants MasOrange best-in-class ESG rating With a score of 79, MasOrange obtains the highest ESG score of all European TMT companies Connectivity Mobile coverage: 99% population with 4G, 90% with 5G FTTH coverage: +30m households, including 96% rural coverage Customer Satisfaction Leader in Customer Satisfaction Continuous improvement: -5% reduction in customers’ strikes Environment 100% renewable energy 100% of direct GHG emissions offset +1m refurbished devices installed Talent & Diversity c.8,000 employees Reaching gender equality Digital Inclusion Reach of social programs: +76k persons (e.g. digital education) Child protection in digital space: TúYo solution for children's first mobile phone Governance & Human Rights Protection of Human Rights including the code of ethics, policies, and due diligence processes ESG-linked company’s objectives
Page 11
11 Mobile client distribution based on customer experience Number of clients 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 1X Lines with worst CX shows ~2.5x churn Low ROIC for further improvements Artificial intelligence and advanced analytics allowing to segment customers based on their service experience and to allocate Smart Capex where it creates tangible value and reduces churn CX Index / site from worse to best Churn Limited churn reduction observed for customers with CX > 5 Churn based on CX
Page 12
12 Largest customer base in Spain Advanced Analytics & AI capabilities Best-in-class technology Data & Open Gateway 1 2 3 4 Foundation for future growth MasOrange has solid foundations for future growth
Page 13
FINANCIAL PERFORMANCE
Page 14
141. 2024 figures include Q1 24 for Orange Spain and MASMOVIL standalone (aggregate numbers clean of intercompany transactions) plus Q2 24, Q3 24 and Q4 24 for MASORANGE 2. OpFCF = Adjusted EBITDA – Recurring Net Capex (Adjusted for Restructuring, Integration Capex, FTTH deployment and gain from sale of assets) Strong performance of key commercial and financial metrics. Crystallization of synergies ahead of plan H1 2025 Key Highlights – Main Figures ~7.2m broadband lines >25.8m mobile lines LTM growth in FTTH (+113k), and in mobile contracts (+275k) FMC churn -0.5pp with ARPU flat (Q2 25 vs. Q2 24) Total revenues1 +4.7% YoY driven by organic growth Double-digit growth in new businesses and large accounts Outperforming competition in service revenues (2.7%) ~€163m of synergies crystallized in H1 2025 Completed shutdown of former MASMOVIL mobile network Acceleration of savings in the period EBITDA Margin c.39% Reported EBITDA €1,458m (+17% vs. H1 2024) Sequential improvement of margin OpFCF 2 of 25.1% of revenues OpFCF +20% vs. H1 2024 Recurring Net Capex down to 13.9% of revenues OpFCF conversion 64% of Adjusted EBITDA
Page 15
15 21.280 21.283 21.376 21.456 21.555 6.722 6.729 6.754 6.806 6.836 Q2 24 Q3 24 Q2 25Q1 25Q4 24 Q2 24 Q3 24 Q2 25Q1 25Q4 24 Mobile postpaid excl. M2MFTTH customers We have grown by more than 113k FTTH and 275k postpaid lines over the LTM Growth in customers +O Growth +113k Accumulated LTM +O Growth +275k Accumulated LTM +7k +25k +51k +30k +3k +93k +99k +80k In Thousands In Thousands
Page 16
16 53 22 94 1 2 3 4 5 Total revenues H1 24 Retail Total revenues H1 25Wholesale Equipment MasOrange delivers with 4.7% best practice telco growth in Europe and grows in all revenue segments: Retail services (+1.8%), Wholesale (+8.7%) and Equipment sales (+20.0%) €m Growth in revenues +1.8% +8.7% +20.0% % YoY Growthxx 3,609 3,777 +4.7%
Page 17
17 1.307 1.476 1H242 1H25 H1 25 Adjusted EBITDA, as well as H1 25 Reported EBITDA post double-digit growth YoY €m EBITDA on a first half view Adjusted EBITDA1: First half 1 Adjusted for Restructuring and Integration costs; equivalent to an EBITDAaL of €1,159m in H1 Q24 and €1,323m in H1 25 2 Historical Q1 24 based on aggregated numbers from Grupo MASMOVIL and Orange Spain, clean of intercompany transactions % Marginxx 36.2% 1.244 1.458 1H242 1H25 Reported EBITDA: First half 34.5%39.1% 38.6% +17%+13%
Page 18
18 680 695 705 753 3Q24 4Q24 1Q25 2Q25 Reported EBITDA above LTM average by 6% or c.200bps €m Reported EBITDA: LTM quarterly performance % EBITDA Marginxx €708M LTM Average 37.4% 39.5% 36.1%36.7% 37.6%
Page 19
19 52 68 120 H1 24 H2 24 FY 2024 On track for c.€500m total synergies by 2027 and >€300m by 2025 €m Synergies Very good track to meet our target for the full year 2025 163 H1 25 H2 25 FY 2025 FY 2024 vs. FY 2023 FY 2025 vs. FY 2023 >300 Achievement 2024 Outlook 2025 RR RR 6M 6M 6M 6M
Page 20
20 Operator 1 Operator 2 Operator 3 951 943 931 917 Fixed services quality benchmark; Medux H1 public benchmark Mobile services quality benchmark; Umlaut Q2 private benchmark Outstanding execution of network synergies… … while maintaining leadership in network quality Operator 1 Operator 2 891 883 852 Completed 100% former Masmovil network decommissioning Best-in-class network, on track to synergy targets without compromising customer-centric approach Network synergies and network quality of service FTTH coverage +30m households, including 96% rural coverage Mobile coverage 90% population with 5G 8 37 H1 2024 H1 2025 1.379 4.652 H1 2024 H1 2025 Network synergies; €m MMV nodes decommissioned; # of sites
Page 21
21 Network Sharing National mobile RAN sharing NetCo deal ongoing Best-in-class Network FTTH at the end of investment cycle (<€25m in 2024 and 2025) Coverage +30m households, including 96% rural coverage 5G rollout advanced (>90% population coverage) From Telco to TechCo +65% SW & data internal engineers vs. JV Closing Roll-out of own IT stack to all brands Developing new ventures like Retail Advertising Accelerating Cloud services/democratize data access Embed AI across the business and network MasOrange invests in innovation to accelerate its evolution to a full fledge TechCo Investment strategy
Page 22
22 IT & Tech Capex has increased its weight €m Net CAPEX on a first half view 512 570 1H24 1H25 Net Capex: First half % Capex intensityxx 14.2% 514 526 1H24 1H25 Recurring Net Capex1: First half 14.2%15.1% 13.9% +2%+11% 1 Adjusted for Restructuring, Integration Capex, FTTH deployment and gain from sale of assets
Page 23
23 247 322 278 248 3Q24 4Q24 1Q25 2Q25 Recurring Net Capex1 9% below LTM average and intensity c.150bps below €m Recurring Net CAPEX: quarterly performance % Capex intensityxx 13.3% 16.7% 14.8% €274m LTM Average 14.5% 13.0% 1 Adjusted for Restructuring, Integration Capex, FTTH deployment and gain from sale of assets
Page 24
24 793 949 1H242 1H25 H1 25 Adjusted EBITDA – Recurring Net Capex and Reported EBITDA – Net Capex c.20% growth YoY €m EBITDA – Net CAPEX Adjusted EBITDA1 – Recurring net CAPEX1 1 Adjusted for Restructuring, Integration Capex, FTTH deployment and gain from sale of assets % EBITDA – Net CAPEX Marginxx 21.9% 732 887 1H24 1H25 Reported EBITDA – Net CAPEX 20.3%25.1% 23.5% +21%+20%
Page 25
25 949 503 36 (226) (154) 17 (83) (405) (62) H1 25 Operating Free Cash Flow of €949m, +20% vs. H1 2024 Cash Flow from Operations Unlevered FCF OpFCF Integration and Others FCFLicense and others Income taxes paid Lease liabilities (IFRS16) Change in NWC Net interest paid
Page 26
26 1 Based on LTM Adjusted EBITDA, including long tail Euskaltel and MASORANGE run rate synergies expected to be realized by 2027, including company initiatives Net debt above is nominal and includes debt associated with leases for leverage purposes 2 Subject to NetCo closing (total net debt LTM leverage) Nominal debt position Total net debt LTM leverage of 4.3x; Senior secured net debt LTM leverage of 3.3x Leverage target to be tightened to 2.75x2 Nominal Debt (€m) June 25 TLA 3,915 TLB5 4,300 SSN 2,950 SUN 453 Commercial Papers 447 Other 635 Gross Debt 12,700 Cash 126 Net Debt 12,574 Leases 1,665 Net Debt & Leases 14,239 LTM Reference EBITDA1 3,339 Total Net Debt LTM Leverage 4.3x Senior Secured Net Debt 11,152 Senior Secured Net Debt LTM Leverage 3.3x
Page 27
27 Outlook 2025 reiterated Total revenues Slight growth Run rate synergies year end 2025 >€300m Adjusted EBITDA – Recurring Net Capex Double-digit growth Performance in line with outlook 2025
Page 28
APPENDIX
Page 29
29 Key Financials €m Actual 1H 2025 PY 1H 2024 vs. PY (abs.) vs. PY (%) Total Revenues 3,777 3,609 168.0 4.7% % Growth 4.7% 0.1% 4.6pp Service Revenues Pre-IFRS 3,294 3,209 85.1 2.7% Equipment Revenues Pre-IFRS 508 394 114.0 28.9% IFRS15 Revenues (25) 6 (31.1) (552.9)% Adjusted EBITDA 1,475 1,307 168.6 12.9% % Margin 39.1% 36.2% 2.9pp Recurring Net Capex (526) (514) (12.3) (2.4)% % Revenue 13.9% 14.2% 0.3pp Adjusted EBITDA – Recurring Net Capex 949 793 156.4 19.7% % Revenue 25.1% 22.0% 3.1pp % Conversion 64.3% 60.1% 4.2pp Integration & Restructuring Opex (22) (57) 35.1 62.0% Loss / Gain from Sale of Assets 3 (6) 9.7 159.6% Reported EBITDA 1,457 1,244 213.5 17.2% % Margin 38.6% 34.5% 4.1pp Integration Capex, FTTH deployment and reductions (44) 2 (46.0) (2,074.1)% Net Capex (570) (512) (58.3) (11.4)% % Revenue 15.1% 14.2% 0.9pp Reported EBITDA - Net Capex 887 732 154.2 21.1% % Revenue 23.5% 20.3% 3.2pp % Conversion 60.9% 58.8% 2.1pp
Page 30
30 • Created in 2019, as a set self contained technology domains exposed in a decoupling microservice architecture • Cloud-native and open-source • Product mentality by design, both as a business support system / platform (BSS) or as individual products • Supports telco and non-telco products delivered by MASORANGE • Leveraged across all brands for new products MasStack – our IT platform Open-source technology No software licenses, low dependency on third parties Cloud native and multi-tenant Created natively in Google Cloud Platform, leveraging its scalability and flexibility Flexible, fully agile operating model Offering daily software releases accelerating agility and time to market Cost competitive 30%-50% lower TOTEX than peers Modular & Productized Consumable modules that can be utilized across different industries Relevant internal team of SW and data engineers as well as data scientists and business analysts >120k Events per second 577 Ks Daily queries WHAT IS MASSTACK? KEY COMPETITIVE ADVANTAGES RELEVANT KPIS 11,800 TBs Storage MasStack is our own developed IT platform that provide us with agility, quality and efficiency
Page 31
31 Disclaimer • Please note that financial data shown in this document is unaudited. • This document and the conference-call webcast (including the Q&A session) (the “Presentation”) may contain forward-looking statements and information (hereinafter, the “Statements”) relating to MASORANGE, or MASORANGE Group (hereinafter indistinctly, “MASORANGE”, the “Company” or the “Group”) or otherwise. These Statements may include financial forecasts and estimates based on assumptions or statements regarding plans, objectives and expectations that make reference to different matters, such as the customer base and its evolution, growth of the different business lines and of the global business, market share, possible acquisitions, divestitures or other transactions, Company’s results and other aspects related to the activity and situation of the Company • The Statements can be identified, in certain cases, through the use of words such as “forecast”, “expectation”, “anticipation”, “aspiration”, “purpose”, “estimates”, “plan”, “believe”, “could”, “foresee”, “intend”, “may”, “will”, “continue”, “ongoing”, “potential”, “predict”, “project”, “target”, “seek”, “should” or “would” or similar expressions or variations of such expressions or by discussions of strategies, plans, objectives, targets, goals, future events or intentions. These Statements include matters that are not historical facts and reflect the current views of MASORANGE with respect to future events, do not represent, by their own nature, any guarantee of future fulfilment, and are subject to risks and uncertainties that could cause the final developments and results to materially differ from those expressed or implied by such Statements. These risks and uncertainties include those identified in the documents containing more comprehensive information filed by MASORANGE before the different supervisory authorities of the securities markets in which its securities are listed. The Statements appear in a number of places throughout this Presentation and include statements regarding the Group’s intentions, beliefs or current expectations concerning, among other things, its results of operations, financial condition, liquidity, prospects, competition in areas of its business, outlook and growth prospects, strategies and the industry in which the Group operates. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are based on potentially inaccurate assumptions and are not guarantees of future performance and the Group’s actual results of operations, financial condition and liquidity and the development of the industry in which the Group operates may differ materially from those made in or suggested by the forward-looking statements contained in this Presentation due to various risks and uncertainties. In addition, even if the Group’s results of operations, financial condition and liquidity, and the development of the industry in which it operates are consistent with the forward-looking statements or projections contained in this Presentation, those results or developments may not be indicative of results or developments in subsequent periods • Except as required by applicable law, MASORANGE does not assume any obligation to publicly update the Statements to adapt them to events or circumstances taking place after the date hereof, including changes in the Company’s business or business development strategy or any other unexpected circumstance • This Presentation may contain summarized, non-audited or non-GAAP financial information. The information contained herein and therein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Neither this document nor the conference-call (including the Q&A session) nor any of their contents constitute an offer to purchase, sale or exchange any security, a solicitation of any offer to purchase, sale or exchange of any security, or a recommendation or advice regarding any security • THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF, AND SHOULD NOT BE CONSTRUED AS, ANY OFFER, INVITATION OR RECOMMENDATION TO SELL OR SUBSCRIBE FOR, UNDERWRITE OR OTHERWISE ACQUIRE, ANY SECURITIES OF THE COMPANY OR A SUCCESSOR ENTITY OR ANY SUBSIDIARY OR AFFILIATE RELATED, DIRECTLY OR INDIRECTLY, TO THE COMPANY, NOR SHOULD IT OR ANY PART OF IT FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION WITH, ANY INVESTMENT DECISION, ANY CONTRACT TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES OF THE COMPANY, NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER. THIS PRESENTATION IS INTENDED TO PROVIDE A GENERAL OVERVIEW OF THE BUSINESS AND OPERATIONS OF THE GROUP AND DOES NOT PURPORT TO DEAL WITH ALL ASPECTS AND DETAILS IN RESPECT THEREOF. ANY OFFER OF SECURITIES OF THE COMPANY WILL BE MADE BY MEANS OF A PROSPECTUS THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND ITS MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. ANY PERSON CONSIDERING THE PURCHASE OF ANY SECURITIES OF THE COMPANY MUST INFORM HIMSELF INDEPENDENTLY BASED SOLELY ON SUCH PROSPECTUS (INCLUDING ANY SUPPLEMENT THERETO) AND ADVICE FROM ITS OWN LEGAL, ACCOUNTING AND TAX ADVISERS AS IT DEEMS RELEVANT. THIS INFORMATION IS BEING MADE AVAILABLE TO YOU SOLELY FOR YOUR INFORMATION AND BACKGROUND AND IS SUBJECT TO AMENDMENT WITHOUT NOTICE. THIS INFORMATION (OR ANY PART OF IT) MAY NOT BE COPIED, REPRODUCED OR REDISTRIBUTED, PASSED ON, OR THE CONTENTS OTHERWISE DIVULGED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (EXCLUDING THE RELEVANT PERSON’S PROFESSIONAL ADVISERS) OR PUBLISHED IN WHOLE OR IN PART FOR ANY PURPOSE • This Presentation does not constitute an offer to sell securities or the solicitation of an offer to buy securities in the United States, nor shall there be any offer or sale of securities in any jurisdiction in which such offer or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any securities offered by the Company will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any applicable state or local laws and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration. Neither this document nor any related presentation nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, into the United States, other than to qualified institutional buyers under Rule 144A under the Securities Act.