Orange Sp/Adr

Hello to all of you. Welcome to Orange Q1 2026 Results Conference. For your information, this conference will be recorded. The call today will be hosted by Christelle Edman, our CEO, Laurent Martinez, our CFO, with other members of Orange Executive Committee for the Q&A session after the presentation. So let's start with the presentation. Christelle Edman, the floor is yours.

Good morning. Thank you for joining our Q1 results presentation. Before getting into our Q1 results, I would like to mention that last week in France, we announced entering into exclusive negotiation with the Altice France Group for the acquisition of SFA, jointly with Boot Telecom and the Free Iliad Group. Our joint offer reflects a total enterprise value of 20.35 billion euros for the Altice France assets under consideration. Orange's share within the split of price and value between buyers would be around 27%. This transaction would help sustain and strengthen the entire digital economy and the telecommunications sector in France. There is no certainty, though, that this process will result in an agreement. In parallel, in Spain, we already received the approval of the antitrust authorities, and we are confirming a closing of Mass Orange's transaction in Q2. Back to our results. The year 2026 started with the presentation of our new strategic plan, Trust the Future. This plan was well received, and we are now fully focused on its execution. In Q1, we reported very strong financial results, with group revenues up by plus 3.5% and EBITDA up at plus 6.6%. This is fueled by a very robust retail services performance, growing plus 1.1% in France and in Europe, and plus 13% in Middle East and Africa. We also accounted for significant positive wholesale non-recurring items in France. These items were mostly anticipated and therefore already integrated into our guidance. Excluding these effects, the underlying growth in group revenues is circa plus 2.5%, and circa plus 3.5% in EBITDA. Based on these solid results, we are upgrading our EBITDA growth guidance from circa 3% to above 3%, while fully confirming the rest of the 26 guidance. Lastly, I would like to emphasize that in the current volatile environment, Orange remains very solid and highly resilient. We closely monitor conflict situations, particularly in the Middle East, always prioritizing the safety of our employees. Additionally, we are well-edged regarding energy in Europe and benefit from a high level of solar power adoption in Africa and the Middle East. As a result, our exposure to the indirect impacts of the crisis is limited. Let's now review our strong Q1 results. Revenues reached €10.1 billion and grew by 3.5%, driven by retail growth across all geographies and the expected positive wholesale non-recurring items in France. EBITDA is up 6.6% this quarter, reflecting growth in retail services, continuous efficiency efforts and the positive effect of wholesale non-recurring items. We maintain discipline on eCAPEX with eCAPEX to sales around 15% in line with our guidance. This solid first quarter gives us strong confidence in achieving our 2026 guidance with an EBITDA growth now expected to be above 3%. Q1 was a dynamic quarter marked by the launch of several strategic Trust the Future initiatives in our three core ambitions, customer intimacy, innovative growth, and excellence at scale. In Customer Intimacy, we introduced two AI assistants in France, Charlie, the 24-7 conversational assistant dedicated to answering our social clients, and my AI assistant, Maya, an assistant helping orange sales teams better understand customer needs. We also launched new loyalty programs in France. Regarding innovative growth, we announced more than 10 innovative offers at the Orange Business Summit, including Europe's first anti-drone-as-a-service solution, sovereign collaboration tools, and an AI-powered cybersecurity offer. In terms of excellence at scale, Orange Business announced a partnership with Tech Mahindra to accelerate digital transformation for our international customers. And in France, we began decommissioning 2G and corporate networks, closing 900,000 households, while implementing our new organization to boost efficiency. Trust the Future is in action. I will now hand over to Laurent for the business review, starting with France on slide 8.

Thank you, Christelle. Moving to France, the competitive environment remains generally stable on the high end and slightly improved on the low end. In the first quarter, our efficient commercial strategy led to robust commercial performance. We recorded the lowest churn on fixed broadband and convergence since Q2 2022, and mobile churn improved by more than one point. Net ads remained strong with 55,000 in fixed, a record since Q4 2021, 40,000 in mobile, and 15,000 in convergence. Convergent ARPO is up by 0.3 euro year-on-year and fixed broadband ARPO is stable, both sustained by our cross-sell strategy. Mobile-only ARPO is down by 0.8 euro, still reflecting the mixed effects related to the competitive landscape over the past year. On the financial slide, revenues reached 4.4 billion euros, up by 2.3% year-on-year. Retail services, excluding PSTN, increased by 1.1%. The strong performance of fixed broadband and convergence, driven by our focus on our customer loyalty and multi-service approach, offset the expected decline in PSTN services this quarter. We increased our NPS to above 34%, widening the gap versus the number 2 to 11 points, while reducing churn across all segments. On the wholesale side, revenues increased by 6%, mainly due to the positive impact of circa 100 million euros, wholesale non-recurring items, which include significant co-financing anticipated in our plan. These strong results give us confidence in achieving our target of stable plus EBITDA growth in 2026 in France. Turning to Africa and Middle East, which continues to deliver a very strong performance, demonstrating our positive momentum. Revenues increased double digits for the 12th quarter in a row, driven by money, 4G, fixed broadband and B2B. Remarkably, two-thirds of our countries are up double-digit growth in terms of revenues. Looking forward, we are very comfortable on our high single-digit EBITDA growth outlook for 2026. Let's continue with Europe. Europe received a solid start of the year with revenue up 2.2% year-on-year. Services remain strong and fueled by good commercial momentum, balance between volume and value. Over the quarter, net ad remains robust, with 66,000 in mobile, 51K in FTTH, and 21K in convergence. Convergent Arco is up by 4.2% in Cuba and in Poland. IT and IS is up by 12%, mainly driven by Belgium and Poland. Wholesale growth was driven notably by low-margin activities such as international interconnection. Thanks to this robust result, we confirm the low-to-mid single-digit illegal growth outlook for 2026. Moving to orange business, in a market environment that remains very challenging, IT and IS revenue growth was driven by strong equipment sales, and sustainable growth within Orange Cyber Defense of more than 9% in the quarter. We announced a new partnership with TechMindRA and the launch of 14 new innovative offers at the Orange Business Summit. Overall, we continue to actively drive the transformation of Orange Business and we confirm our outlook for continued improvements. Turning to Mass Orange, the acquisition process, as you know, is well advanced, with a recent clearance by the antitrust authorities, and we are expecting a closing in the second quarter of this year. Total revenues are up by 1.2% year-on-year, driven by B2B, equipment sales and wholesale services, offsetting the expected mixed impact on the services in a challenging market environment. Over one year, total clients is up 2%. significantly with over 400,000 mobile lines, with a limited reduction during the first quarter of 2026. Synergies are on track, and the 2026 outlook remains confirmed. I will now hand over to Christelle for the guidance update.