Good morning, ladies and gentlemen, and welcome to the Orange Polska first half results call. After the initial presentation, there will be a question and answer session in which we'll have the chance to ask questions either by phone or by web. I will now hand over to the Orange Polska team. Please go ahead. Thank you. Good morning, everyone. Welcome to our call summarizing second quarter and H1 2021 results. Our speakers for today's presentation will be Julien Ducarroz, CEO of Orange Polska, and Jacek Kunicki, our CFO. Let me now hand the floor to Julien to begin the presentation. Good morning, ladies and gentlemen. Welcome everyone to our conference summarizing second quarter and first half of 2021. As usual, I will start with the highlight of our quarter. Jacek will take over more on the financials, and I will come back to summarize our second half of the year. Let me start on slide number five. Those are the key highlights of the quarter. Obviously, one of the main items that you remember that was our announcement of our strategy,.Grow, at the end of June, which we have laid down our priorities for 2024. Just to remind you, for us, this is a natural evolution from the previous plan, with as well some new elements which we believe will help us to accelerate our growth and as well lay down foundations to go even further beyond 2024. Financially, we want to grow faster and in a more sustainable way and sharing benefit of this growth with our shareholder. Financial results in Q2 and in H1 were strong, driven by robust performance of our core telecom services. Commercial results were solid and clearly in a context that was not as easy as we thought at the beginning of the year. I will mention here still the ongoing pandemic for the sales part, but as well, we have to notice that the weather was quite unexpected as well, impacting as well some of our operations, especially when we are talking about fix. I believe that this is more a temporary drop, and we are confident that the demand will come back after the summer break. We have as well revised our offer portfolio, and I will take some minute to talk about it, which I believe is quite important, and it is a lot in line with our strategy of more for more. As you might have noticed as well, the environment is getting hot with inflation, and we believe as well for us, the more for more and create more value is important in this context. As well, we have announced in July some important steps regarding the FiberCo, and we are still fully on track to be operational by the end of August or operational from September. Going on the next slide, number six. Let's start with the overview where we stand after half of the year versus our full year guidance and expectation. Revenue increased by an impressive 4.3%, driven by convergence, our ICT services, and equipment. This dynamic will slow down from Q3, where then it will start to reflect regulatory impact coming from cuts of termination rates, which were not in H1. Growing revenue fueled over 4.5% EBITDA growth. We are very pleased that this growth is derived from improving direct margin, which is the direction we want to take to have this sustainable growth for the long- term. Please note as well that announcing our strategy, we increase our guidance for EBITDA growth this year. We now expect it to grow in the range of low to mid-single digit. Result for the first half confirmed that cuts of termination rate will have a very low impact on the margin. CapEx is slightly higher, which reflect more evenly timing of spending and prolonging slowdown of the real estate market. Our full year plans here also remain unchanged. On page 7, we start to review our commercial performance. Let me start with convergence and fiber. We present here together as fiber is a key driving force for performance in convergence, both in volume and value terms. A strong growth of convergence revenue is fueled almost equally by growth of customer base and growth of ARPU. As I already mentioned, net addition this quarter were affected by low customer activity after lifting pandemic restriction and as well, especially in Q2, due to weather condition. ARPU growth, however, accelerate to 6%, mainly driven by an increasing adoption of fiber. One of the reasons why fiber generate higher ARPU than copper is increasing popularity of higher speed option which are additionally paid. Their share in the total fiber customer base is now 16% versus only 7% a year ago. We can see that the demand of the customer for higher quality and higher speed is clearly growing, which mechanically, as I said, is growing our ARPU. In Q2, we added 48,000 new fiber retail customers. This was more than a year ago. Fiber is now the largest technology in our total fixed broadband base with a share of 30%. This quarter, it overpassed ADSL, which symbolically marks our technological transformation. We went from technology gap to technology edge. Moving to slide number eight. Mobile handset customer base is growing at a steady, healthy pace. In Q2, net additions were 83,000, which was more than last year and comparable to Q1. In prepaid, in Q2, customer base returned to growth after a few quarters of declines. Lifting of pandemic restriction resulted in higher mobility of people, which fueled activation of new prepaid cards. You might remember I was commenting that we were not performing so well on prepaid in the past due to the closing of the border or the restriction to enter the country, which clearly we see now that it's getting better and our prepaid is getting back to growth. We are very pleased to say that in Q2, ARPU in mobile-only services was growing both in postpaid and in prepaid. In postpaid handset offer, it increased by 1.8%. This turnaround has taken place both in B2C and B2B and is an outcome of our strategy focus on value. In Q2, it was also supported by partial return of roaming in this growth. In prepaid, ARPU was growing for a few quarters, but in Q2, it accelerated to 6%, also as a result of our pricing strategy and growing share of customer with unlimited voice and text bundle. Here we also benefit from higher roaming. With our different action, we are able to minimize the impact of unfavorable impact of new cash back regulation. Going to the next page where I just wanted to take one minute to show you a bit more operation and how we came with a new, I would say, design of our offer. We continue to adopt the more for more policy, which is especially important in this increasingly inflationary environment. It's done either through straightforward price increase or changes in the tariff structure in such a way that we will encourage customer to choose more valuable packages. In May, we increased our four mobile subscription plan by PLN 5. It's on the left side of the chart. In exchange, we are offering increased data as a package and also subsidized OTT content. We lowered the barrier for 5G availability as we see that the penetration or the adoption of 5G smartphone is increasing in our portfolio. Change to converged offer were introduced a few days ago. They were not simple price hikes. Instead, we restructure our package to promote higher-end option and TV content. Our value strategy is also supported in our smartphone price list as we subsidize handsets in the high-end tariff and earn a margin in the low-end option. As always, new subscription prices apply only to new signed contract with customer. The term of existing contract do not change. In prepaid, we have recently introduced another increase of pay-as-you-go tariff. More importantly, however, we aim to generate more value from unlimited services, where a top-up allow unlimited voice and text and a defined data allowance for a given period of time. This option are growing in popularity. They are now responsible for majority of prepaid traffic and revenue with above average ARPU. We have also modified our pricing in a more for more strategy. All these changes were made very recently. We expect positive impact to gradually contribute to our result and help to tackle the inflation pressure. Going on the next slide, number 10. A brief update on the FiberCo. I remind you that we signed the transaction in April. In July, we just concluded some important step toward making FiberCo operational. It's a good timing for an update regarding this very strategic transaction for us. First and more important, we obtained debt financing for PLN 3.1 billion that will finance more than 80% of FiberCo network rollout CapEx. Please note that obtaining this financing was equally crucial for the success of this transaction as finding right equity partner. This is a major development to facilitate operating activities of FiberCo. Of course, this debt will not be guaranteed by Orange Polska and will not be on our balance sheet. Secondly, we carved out and transferred almost 700,000 fiber household out of our existing footprint to FiberCo. It ensures that the FiberCo will generate cash flow from the start of its operation. This means that we will now pay FiberCo monthly access fee for around 170,000 customers that have active services on this footprint. On the other end, we will render some services to FiberCo, so the net impact of this flow will be balanced. We are now only awaiting regulatory approval, and we expect closing of this transaction by the end of August. Now, let's go to the financial with Jacek. Thank you, Julien. Good morning, everyone. Let's start the financial review on Slide 12, where we present the highlights of our performance. Our financial results for Q2 were strong, confirming our growth ambitions. Revenue expansion accelerated, fueled by all key product lines. Strong growth of the core business is especially encouraging as it benefits our profitability. Profitable revenue expansion allowed us to post an almost 4% EBITDAaL growth in Q2. The EBITDAaL increased in Q2 despite a high comparable base from last year when it was supported by strong positive one-off cost savings executed to mitigate the impact of the pandemic. After two quarters of the year, our EBITDAaL is up by 4.6% and well on track to meet our full-year objectives. The economic CapEx was slightly above last year. This stems mainly from a more even timing of our investment, as well as from a persistent weakness of the real estate market. Finally, cash generation is solid this year. The H1 organic cash flow was stable year-over-year. This is a good result as we remember that last year, the anti-crisis legislation allowed us to delay over PLN 120 million of payroll tax payments to the third quarter of 2020. Let's now review our results in more detail, starting with the top line. Our revenues expanded by a strong 4.5% in the second quarter. They were supported by positive dynamics in all major product lines. Firstly, convergence. Revenues from these services grew by almost 15%. This is a strong performance with the pace of the increase accelerating in comparison to the previous quarters. It results from a combination of a solid customer base uptake coupled with an accelerating ARPO growth. Secondly, mobile only. These revenues expanded by 3.5%, and this is the first increase in this category since we began to report it separately. It results from a continued increase in the number of mobile-only clients, as well as from a growing ARPO, which benefited from a partial recovery of roaming in the second quarter. Thirdly, ICT revenues. These were up 13% year-on-year. Their growth reflects the contribution of Craftware new entity and also organic development in all of our subsidiaries. Revenues from equipment rose by 7% year-on-year, first since the lockdown second quarter of quarter of 2020. Finally, our energy retail business contributed to the revenue development in this year, this quarter, after a challenging 2020. Looking ahead, our revenue dynamics will slow down in the second half of the year due to the cuts of the mobile and fixed termination rates. The impact of these cuts on profits on EBITDAaL will be immaterial, and EBITDAaL will continue to benefit from the growing direct margin driven primarily through the core business. Let's now take a closer look at our profitability. We're pleased to report an almost 4% EBITDAaL growth in Q2. This is a strong achievement considering the high comparable base of Q2 of last year, when our profitability was boosted by large one-off cost savings executed in the wake of the pandemic and through the actions to mitigate its impact. The EBITDAaL increase this year was achieved as we converted the growth of the core service revenues to profits, benefiting from higher operating leverage. It's visible in the expansion of the direct margin. Indirect costs increased year-over-year in the second quarter. This unusual performance, as I mentioned, reflects a very low comparable base of last year when, facing the uncertainty of the COVID crisis, we executed exceptional cost savings efforts. It included a one-off release of PLN 64 million of HR provisions back then in 2020, as we curtailed the Jubilee Awards. It also included an all-out freeze on advertising as our shops were closed last year. On the contrary, this year we invested into commercial activity in order to maximize the sales, to support the sales. Obviously, we're continuing our ongoing cost savings plan. This is mainly contributing to an underlying decrease of labor costs, CRM subcontracting, as well as a decrease in general expenses. The EBITDA growth has enabled us to increase the net income. Let's now look at this on Slide 15. We posted PLN 116 million of net income in Q2, growing at more than 2x year-over-year. It resulted from a higher EBITDA, which we've already analyzed, as well as from lower depreciation. The depreciation was down year-on-year, mainly as we are able to use our assets more efficiently and for a longer time than originally estimated. On the other hand, we posted a higher net income tax in Q2. This is linked with more profits before tax, as well as with the write-off of certain deferred tax assets on losses from prior periods. As you can see, our Q2 performance was strong in all of the areas of the income statement. Now let's take a look at CapEx on page 16. Our economic CapEx in H1 was slightly higher year-on-year and in line with our full year plans. This year, some of our investment projects are more evenly spread through the year. On the other hand, the real estate market continues to be very challenging, and this is visible in low asset disposals. When you look at different CapEx categories, you will see a decrease in mobile CapEx. This reflects the fact that we have completed spectrum reforming projects, which reallocated capacity from legacy technologies to the 4G. This also reflects the delay of the 5G spectrum auction, which we hope will be initiated soon. Now over to cash flow on page 17. We generated around PLN 360 million of organic cash flows in H1. This was roughly stable year-over-year. This is a strong achievement considering that last year we benefited from a delayed payment of over PLN 120 million of payroll taxes, as the anti-crisis shield allowed us to pay this in the third quarter of the year. This limited the working capital requirements last year, while in 2021, we have a larger need for working capital requirement, especially as we have rebounded the sales of handsets in installments. The underlying cash generation is positive. We're particularly pleased that the growth of the EBITDA has translated into an increase of the operating cash flow before working capital. This was up by 7% year-over-year in the first semester. Solid cash generation has translated into a further decrease of our leverage. It now stands at 1.8x the EBITDA, so well within our long-term leverage corridor. This concludes the financial review. Let me hand the floor back to Julien for the conclusions. Thank you. I would say to conclude and share with you our focus for H2. On H1, we are very pleased with our financial results and as well our commercial. We have observed that especially in Q2, the pandemic constraint on the limited traffic in commercial has certainly impacted a bit our sales compared to our ambition. We have noticed as well that it was reflected in other category and we do believe that there will be a rebound for the back to school period. One of the focus obviously will be on the second part of the year in term of commercial activity, that we plan to be strong. We have laid down a new portfolio that I presented to you, and we believe strongly that with this portfolio and promotion, we will see and catch the rebound of the demand on the market. Obviously for us, we are very close to closing the FiberCo and become operational. This will be as well one of the priority in H2. We are confident and we reconfirm today our full year financial objectives. I think the only thing that remain to be seen is how the pandemic will develop. Regarding back to the office or with the current environment, we believe we will go back to in September in a hybrid mode to our offices. We will focus mainly to get back together the team, rebuild team spirit physically, and still spend some time teleworking for the tasks that are more in front of the computer. That's the summary for H1 and a bit of a perspective for H2. Now we are open to your questions. Thank you. Thank you very much. We will now be opening the floor for questions. If you do have a question, please press star two on your telephone, or you can also type a question if you're signed in via the web. We'll just give it a moment or two. Our first question comes from Pavel Puchalski from Santander Bank Polska. Please go ahead. Hello. Pavel Puchalski here. I've got three questions. First of all, you recently announced incentive program for key employees. Please let me know, what are your incentive program goals for EBITDA and organic cash flow? The communique is not specifying it, and I believe we would all like to get as much info as possible. Thank you for this question, Pavel. I think commenting on that, you will see that the incentive program is perfectly aligned with the new growth strategy. The structure of the goals reflects exactly what we wish to achieve financially through the years. I think it's fair to say it's a big motivation, and it's meaningful for management in terms of the size. Regarding the goals of the incentive program. Well, the revenue and the organic cash flow growth, I think it Well, the EBITDA and organic cash flow growth, I think it's fair to say that it aligns with our plan and it's within the upper range of the guidance that we have given. That's as much specific as I can be. Regarding the share price, obviously, it reflects the, well, hopefully appreciation of the share prices we would like to achieve through execution of the.Grow growth strategy. Okay. Thank you very much. Well, I noticed you are suggesting in 2H, second half of this year, strong focus on commercial activity. Well, is it a suggestion that commercial costs will be higher than usual in the second half? Well, that has got key impact on potential EBITDA. Let me take this one. First of all, when we say that we want to focus on commercial activity, from my perspective, we have seen a weaker than expected Q2. As far as we can know and understand, this was not only an Orange, I would say weaker, but more a demand on the market. I refer here to traffic in overall retail mall. We know as well the total equipment volume on the market that went down. We have noticed that, and probably we will need a bit more time and external analysis to show that probably the consumer market, which is not the case for B2B, but the consumer market, probably in Q2, has focused more on other spending, probably holiday to prepare the summer. We believe that there will be, this is not that they are not interested in telecom, I just think that they have been more focused on other items, and we do expect them to come back in the back to school. Commercially, financially or cost-wise, I don't think this will be material. From an accounting perspective, the commercial costs are spread over the contractual period. I don't expect any impact on our guidance. As we all know as well, when you are doing stronger commercial activity, this is helping you anyway, in the midterm, to confirm the ambition. We are very confident on this strategy. We believe as well that there's been a drop in the sectors driven by customer demand shift on other category. Which is not the case on B2B. B2B has been very good. We commented a bit, but as well the demand. I will not make the same comment for the B2B, which still remain very strong on ICT, and in the mobile, too. Okay. Two last questions from my side. Very similar. Well, are you planning to sign agreement with Viaplay? Because we see it is about to kick off its operations very soon. Secondly, are you planning any further FiberCo or NetCo? Because you still have a lot of assets. I'm not going to comment our strategy as this is a ongoing discussion. We have historically, already in term of content, some very strong agreement in place. As always, those are moving a little bit. It's not a fundamental shift. There is some asset that has moved from one platform to another. Certainly, we are looking at it carefully. As well, this is a quite costly activity, so we looked very carefully, and for the moment, we have no comment to make on the commercial intention. The second point regarding more asset deal, I will say, let us come back once the FiberCo will be operational, and we will start not focus anymore on legal and financial aspect with the team, but on the operation. We will contemplate and come back to comment on what would be the next, if any, move related to infrastructure in general. Okay. Thank you very much. Thank you. Thank you. We also have a question from Dominik Niszcz from Trigon. Please go ahead. Hello. Congrats on very good results, in particular your ARPU growth. Actually, I had similar question to Pavel on this commercial activity. Maybe just a second question on 5G auction. Can you share with us your understanding of the reasons behind delay of the auction? Do you see significant risk that the rules may be changed compared to the first proposal last year? How do you see this process delay? Thank you, Dominik, for the question. While obviously I'm not in a position to comment to detail this, because this is not happening on our yard, but this is more the government and authorities that are in discussion, and they announce that they will not start sooner than after the holiday. We end of August or September. What we know, and it's public information, I will say that this is, as there is a sequences of getting a good understanding on the cybersecurity law as a prerequisite to start the auction. My understanding is that they have not yet found, as you know, that this is a law that required many parties within the government to agree upon, that probably they have not yet found a common ground. I don't think it's fundamentally on the condition of the 5G, which we don't expect them to change dramatically compared to the first version. I think it's rather the first checking box, which is cybersecurity law that is still in discussion within the authorities. Is your CapEx plans in the strategy can still change depending on the cybersecurity bill, or you think you are quite secure with the guidance? Well, thank you for the question. We've commented that during the strategy day that today, we don't know the cybersecurity regulations. It's very difficult to comment on that. Obviously, we are aware that there are some regulations that might be, I would say, happening. We're taking that into account in our various decisions. We think that, well, first of all, it has taken quite a long time to develop those cybersecurity regulations. Even if they were to be, I would say, addressed, their execution would not be immediate, and it would be quite likely for the impact of those to be spread over quite a long time. That's I would say my comment. Obviously, the guidance itself was given, I would say, subject to any potential changes or any potential impact of the cybersecurity regulations once we would know them. As I mentioned, what we could expect is even if they were to be addressed, they would rather not be immediately executable, and they would be spread over some time. Okay. Thank you for that. Maybe the final question on the regulations. We seem to be behind Western Europe on 700 MHz. Recently we saw Spain. Do you think we will know something this year about the distribution of spectrum on 700 MHz or together with cybersecurity bill? Yeah. I think we do expect to have more news on this. Regarding the commercialization, which is at the end, probably what we are looking for more, it will require some cleaning and preparation of the spectrum. From this perspective, anyway, it is not for the coming, probably two years that we will see 700 live. After, obviously, there is different scenario for this spectrum. I do agree with your assessment that we should know more together with the package of the cybersecurity and the auction. Mm-hmm. Okay. Many thanks. Thank you. Just a reminder, if you have a question, please press star two or type a question if you're signed in via the web. Our next question comes from Anna Kai at Pekao. Please go ahead. Hi. Hello, everyone. Thank you for taking my question, and congratulations to the team on great results. I have a little bit similar question, but more in a sense of strategic thinking about your tower infrastructure, because very recently, Orange joined the trend set up by Deutsche Telekom and Vodafone and announced the creation of European tower co called TOTEM, and they carved out towers in France and Spain. How are you thinking about your tower infrastructure going forward, especially taking into account the recent activity of Cellnex on Polish market, and after 5G auction you will need to roll it out. In general, or maybe in more detail, what are your thoughts about your strategic assets? Thank you. Thank you. Thank you for the question. I think it's fair to say that, first of all, today, we're still extremely focused on executing the FiberCo transaction. As you remember, we've had the signing phase. We've now concluded on the financing, on the carve-out, and we expect to have the closing of the transaction and the operationalization of the cooperation soon. This is what is really on top of our agenda and what is right now consuming most of the energy regarding the infrastructure. We wish to first of all focus on the execution. Now, going to assets, and obviously this includes towers, as we mentioned, we will be looking for additional ways to create shareholder value, if we can. Obviously, that will mean that towers will jump higher up in our agenda as soon as we finalize the FiberCo project. We will analyze the options that we have at hand and see if any of those options can be beneficial to shareholders. Obviously, that would include a scenario or an option of the cooperation with the group project, with TOTEM. It's a bit early today to conclude if we see additional shareholder value in this or not. Okay? We will need to come back to you when we have a bit more analysis done with our thoughts on that. Definitely it is an asset that we will be considering. Thank you. Thank you. you. Thank you for that. I understand that as of now, you're staying open-minded and you'll have a closer look at it short- term in the future. Yes. Thank you. Thank you. Just a final reminder, if you have a question, please press star two or type a question if you're signed in via the web. We have a question from Rabit Mubi at Citi. Please go ahead. Hi. Thank you for the opportunity. Just two from my side. Firstly, on your B2C convergence net adds. If you see the convergence net add, it's been trending down. Your run rate has been particularly down when I compare it to 2018 or 2019 levels. I'm not taking 2020 into account given it's been a special year. I know you said that the market demand has already been low, but just wanted to understand, is it also because of the increased focus on convergence by your peers? This is the kind of run rate we should assume going forward, or you think trends will change on that side? Secondly, sorry if I missed this earlier and it has already been mentioned on the call. About this proceeding by the regulator on some of your revenues which have been charged. Will that have any impact on your revenue growth in future? These are the kind of revenues you won't be able to charge in future? Okay. I will answer the first part on the comment of the net adds for convergence, and I will leave Jacek to comment on the proceeding with authorities of competition. Well, on the net adds of convergence, first of all, convergence for us, as you know, it's coming out of our operation of fix and as well migration from legacy business as well to a mobile customer family household. That we are providing a lot of package where everything sits under one roof. I would say mechanically, because we have seen this lower demand on the market of telco in general, whether it is handset, whether it is mobile voice on the consumer side being lower than we expected. We do expect that this has been across the sector, at least the indirect indicator we have tend to show the same trend. I would say from this perspective, it's normal that the net adds are being slowing down. If we look for the future, I'm fully confident that once people will come back to our shop online, we will see back the same momentum we had in the past. We are deploying heavily. We have a new, very, I would say, attractive footprint that being put online with the POPC and the FiberCo will start as well in low competition area from September, as soon as we are ready to be operational. I see absolutely no reason not to see back the dynamic we had in the past, and I do not believe that our lower net add than expected is a result of activities of the market, but rather of low activity or low demand. What is as well specific to fiber, not to forget, is that the last few weeks has been quite disruptive in term of operation due to the weather condition. You might know that in Poland there's some record numbers of storms. This is impacting our operation as well, both from an installation repair, but as well deployment, because our team has to focus on more activities to visit the customer than on activities to deploy new. This is just a temporary slowdown that I expect it will come back in Q3 and Q4. Now Jacek on the proceedings. On the proceedings, yes, we confirm we have been informed about two proceedings by the Office of Competition and Consumer Protection regarding the sale of value-added services on the mobile. We're analyzing those claims instituted by the Office of Competition and Consumer Protection, as some of them were of very recent. Together with the office, we will be working for solutions that will be satisfactory to the office, and at the same time will be in line with the interest of our customers and of our company. That's all that we can comment and say as this is an ongoing proceeding and a dialogue with the office. Got it. Thank you. Very clear. Thank you. Thank you. you. There are no more questions, so I'll now hand back to Orange Polska for closing remarks. Thank you very much for listening to us, for being with us today. That concludes our conference. Talk to you. If you have any follow-up questions, you know how to reach us. Otherwise, talk to you in October. Thank you. Bye. Thank you very much. Thank you. Thank you very much.