Orange Polska Sa

Leszek, please go ahead.

Good morning. Thank you for standing by. Let me welcome you to Orange Polska conference call in which we will summarize our achievements in 2025. My name is Sascha Kiwaszko and I'm in charge of investor relations. The format of the call will be a presentation made by the management team followed by a Q&A session. Speakers for today will be our CEO, Ludmila Klimok, and CFO, Jacek Kunicki. So I'm passing the floor to Ludmila to begin the presentation.

Thank you. Thank you, Leszek. Good morning. Happy to welcome you at our conference summarizing last year's results. And let's start. In March last year, we have presented you our new four-year strategy, Lead the Future. And today I'm very pleased to say that 2025 was a strong start. We have progressed in all key pillars of our strategy. and prepared a solid ground for next years. First on the line is our commercial performance that was excellent in both retail and wholesale. In retail, we uplifted both customer base and ARPOR, In the wholesale, we started to benefit from new important business development streams. And commercial growth is essential pillar for value creation in our plan. Second to mention is network. In order to win customers we are committed to bring first class connectivity at home, at work, on the move and in 2025 we significantly progressed in 5G coverage. Already 85% of Polish population can enjoy 5G with better quality, higher speed, better latency. Orange fiber is now reaching almost 10 million homes. It's two-thirds of households in Poland, and we have added one million last year. And the third important contributor to our results was transformation, transformation and efficiency, one of the main pillars of Lead the Future. We increase our efficiency by better cost and by better CapEx management. increasing profit margins and improving cash conversion as a result. We have initiated a new transformation program last year that brought the first results, but we expect more to come in next years. Lead the Future is focused at value creation for our shareholders, and in 2025 we clearly demonstrated it by growing our financials. I'm very proud that we delivered 47% in total shareholder return through growth of our share price and paid dividend. Speaking about financials, let's have a look on how we have performed versus guidance. So here you see the slide illustrating it. We did very well. Growth rates on revenue and EBITDA was overachieved. We promised the range of low single digit. In both cases, we achieved mid-single. We overachieved on revenues thanks to positive dynamic in ITNS and in wholesale, but the main engine of revenue growth is our core telco services with strong 6.5% growth. EBITDA benefited from strong profitability of COTELCO and wholesale, but also combined with cost efficiencies. For e-CAPEX guidance, it is met at the low end of the range. Despite low than expected sales of real estate, we managed our investments very efficiently. As you see, our growth story is developing faster than originally expected. And let's see what were the main commercial performance drivers for this. So looking on commercial parts, 2025 was very strong. We attracted new customers, and simultaneously we grew ARPO in all key services in a very balanced way. In convergence, both customer base and ARPO increased by a solid 4%. For fiber... Customer base increased by 10% and ARPO by almost 5%. And I'm very pleased with this performance in convergence and fiber as the competition here continues to be the most intense. We estimate so that we further increase Improved our market share in high-speed broadband. So orange is the cinnamon of fiber. Mobile performance in 2025 was exemplary. Almost 350,000 customers joined us with mobile postpaid offer. It's almost 4% growth, the highest number in a few years. And both segments were contributing, consumer and business, and also all brands were contributing to this performance. ARPOR increased by less than 1% and it is explained by a strong contribution of more than 5% growth of ARPOR for main brand, which is diluted by an increasing share of the B brand in our total customer base. Pace of growth in all services is in line with what we set for us as an ambition in Lead the Future and it is demonstrating that we have right strategy and we are navigating well in the competitive environment in Poland. So to zoom on our commercial tools, let's move to the next slide. Our focus in Lead the Future is on building new relationships, reaching new families with our services and further using it as a pool for further growth with additional services and with conversions. In 2025, we achieved it by pursuing a bold marketing plan We visibly improved our marketing communication, refreshing the main brand in order to reach younger segment. Changed the visual identity of our prepaid products and our B brand new also received a new format. We put together We put also higher focus on standalone offers. Our new multi-seam family offer proved to be very successful in second part of the year. We boosted the content proposition for our fiber and TV offer, making it significantly more attractive. And these elements combined with AI-enabled tailored offers contributed to customer loyalty for the existing base and allowed us also to attract new customers. On the value side, we further pursued our more-for-more strategy. ARPO benefited from a good demand for a higher data plan in mobile and also higher speeds for fiber offer. Customers with higher speed options in fiber already account for almost half of our customer base. As a result, the number of orange households where we are present with our services was growing. reversing multi-year trend and this represents a fundamental change for us that is also offering very promising prospects for future. This was about retail. Let's now look at wholesale on slide eight. Last year was particularly strong for our wholesale line of business, both our own and also in our co-owned fiber corp, Svetlovod Investitie. As you see on the slide, we have recorded a solid increase. 13% of wholesale revenue growth, excluding legacy services. Much better dynamic versus previous years. And I will mention three drivers that were contributing to it. First is a new fiber backhaul contract, which was bringing results in the last four months of 2025. In 2026, this year, it will help us to fill the gap left by national roaming contract which has expired in 2025. Second is their accelerated growth of revenues from access to our fiber network to other operators and accordingly growing monetization of our infrastructure. We reported an impressive 36% growth of wholesale customers on our network, a result of opening of our network for wholesale, which took place in the second part of 2024. And the third pillar or driver is services which we render to our FiberCo, to Svetlovod's Investition. like lease of infrastructure, delivery of services, network maintenance. They are growing in line with the growing scale of FiberCo. Speaking about our 50% co-owned FiberCo, 2025 was a very important milestone year. It marked completion of the initial investment program, which was set in 2021. In line with our plan, fiber core network reached 2.4 million households. In 2026 new program has started with fully secured financing and we are very pleased with operational and with financial dynamic. Despite the fact that Fiber Core is still at a very early stage of development, significantly investing into the network expansion, Shvyat Vovut Investitie EBITDA of last year exceeded 140 million zloty with a margin of 35%. We expect this to increase along with growing network saturation. And obviously, we plan to strengthen it further by Nexera deal. Of course, subject to regulatory approval, which we are awaiting now, this acquisition is expected to be highly synergetic. Now, switching to connectivity on slide nine. In 2025, we reinforced our commitment to provide the fastest, most reliable and trusted connectivity in Poland. And I want to start from mobile. We made big progress in 2025. Major projects of radio access modernization, which we have started several years ago, is now almost finished. It is making our network more energy efficient and will enable usage of new spectrum bands for 5G. For 5G, it was the second year of rollout on C-band spectrum. We are covering now already 60% of population in Poland, meaning that we are very much advanced on the market. Rollout on 700 megahertz spectrum aiming wide coverage has started just six months ago, and we are already at 64% population coverage. With these both spectrum bands, we boosted 5G coverage to 85% by end of last year from below 40% a year ago. And we, as well, we have completed the commissioning of obsolete 3G, allocating frequencies to 4G and enabling us to increase network capacity and improve the quality of services which we are providing. In fiber, we are investing both in the reach, in the coverage of the network, but also in service quality. Orange fiber from quality perspective was again validated by independent benchmarks where our fiber network is ranked again number one in 2025. Fiber reach continues to grow fast. We have added another million households to the coverage, reaching 10 million homes in total. It was mostly delivered by Svetlovod Investitie and also by access to other third parties' FiberCourse networks. Our own build is targeting wide zones with projects supported by EU subsidies. rollout as well accelerated in 2025 as we have invested almost 90 million zloty in this project and it will be completed this year in 2026 with investment effort of over 120 million. Let's zoom now on transformation. With Lead the Future we have initiated a new wave of transformation. You remember the ambition of our transform and innovate pillar to boost efficiency which will be leading to improve profit margins. We will achieve it through automation, through process reengineering and opportunities which are arising from integrating AI in our operations. Firstly, in sales and customer care operations, here digital channels are progressing and we see them being much more efficient and much better responding to customer expectations to be served online fast with seamless experience and as a result we are approaching 30% in share of digital sales with ambition to reach 35% by 2028. My Orange App is our key asset here contributing to this target. We are constantly improving it, adding new functionalities and using AI for personalization. In customer care, we are making another step change with AI agents. For instance, in 2025, we launched an agent which helps our advisors to provide optimal remedy for technical problem solving. These reduce number of contacts and improving customer experience. We are working on more agentic solutions to be implemented in this year, 2026, for better quality and better productivity. Secondly, in network operations, we improved cost efficiency last year and we are aiming to do more. To reduce cost of service delivery and network maintenance, we use more remote tools, self-installation, boxless solutions for content and TV, and AI-supported dispatching of technicians. We have started progressive decommissioning of legacy Kappa network. targeting first areas with less customers, less usage, and accordingly less profitable. And recent deregulation decision will allow us to do it at a much better speed. And finally, we are reducing costs across all our functions, making ourselves better. leaner and more agile. In recent months we have made several organizational changes aiming to streamline our operations and as a part of this process we signed a new social plan with our social partner under which number of employees will be reduced by 12% over the next two years. And finally, I want to stop at the moment at our sustainability agenda and achievements. I'm convinced that growth and responsibility go together and our actions bring a real difference and contribute to the development of Polish society and economy. And we are very proud of our progress in 2025. In today's fast-changing world, there is a growing need for education on responsible and safe use of technology. And here we concentrate our energy. the number of beneficiaries of various digital programs was growing and exceeded 200,000 last year. And as well, last year, our Orange Foundation has celebrated 20 years anniversary, a proof of our long-term commitment for society and for digital inclusion. On environmental area, in 2025, we significantly reduced the CO2 emissions. Actually, we almost reached our goal, which we set for 2028. This was possible as all the electricity we consumed came from non-emission sources. and finally in 2025 we reinforced our efforts in the area of circular economy thanks to newly launched platform we significantly improved the collection of used handsets and also we significantly increased the share of refurbished fixed devices that we we distribute it brings a positive impact on environment, but also is improving our cost base. So, and this being said, I want to pass the floor to Jacek to give more deep dive on our financials.