Orange Polska Sa

Good morning. Thank you for standing by and let me welcome you to Orange Polska conference call, in which we will summarize our results in the first quarter of 2026. My name is Leszek Iwaszko and I'm in charge of investor relations. The format of the call will be a presentation by the management team, followed by a Q&A session. Speakers for today will be our CEO, Ludmila Klimok, and CFO, Jacek Kunicki. Let me now pass the floor to Ludmila to begin the presentation.

Thank you, Leszek. Good morning and welcome to our conference summarizing the quarter of 2026. I will start with slide four. I'm very happy to report that we have started the year very well, both commercially and financially. Our commercial performance was solid. as we achieved healthy growth of customer bases and ARPOR across all subscription services. I am particularly pleased that in the first quarter Orange was a leader in mobile number portability with big advantage to our competitors. Moreover, in line with our balanced volume value approach, We uplifted prices for all our services in the first quarter, which will fuel our growth for future. It was also another good quarter for our wholesale operations. We generated a very solid 6% revenue growth despite the multi-year national roaming contract, which is now over. as from beginning of 2026. And we also see a very good pipeline for Q2. It confirms that wholesale is our strategic growth engine, complementing our retail operations and improving our risk profile. Our financial results were outstanding as we close the quarter with close to 10% EBDA growth and significant improvement in cash generation. And I propose to zoom on highlights of our commercial activity on the next slide. Our commercial performance, commenting on it for first quarter, reflected very strong customer demand and our focus on value, as well as the intensive market competition, especially in Fiverr. In convergence, both customer volumes and ARPO grew at a good pace, with 4% growth of customer base, which is in line with a run rate that we projected in LibreFuture strategy, with ARPOR increasing by more than 4%, benefiting from our value approach in pricing, with good demand for content and services, popularity of higher speed fiber packages. Fiber customer base increased 10% year on year. It is a very good dynamic considering intensive and diverse competitive landscape. Fixed broadband R4 is up with 3.7% year on year. which reflects a solid growth, which is normalized after an exceptional performance in 2025. Mobile had another strong quarter with net customer additions of above 70,000. As I already mentioned for the first time in a few years, we were the winner of number portability by a big advantage. The win was driven by our main orange brand on the consumer market in postpaid and prepaid, but also new, our B brand new and flex were strongly contributing. We achieved this thanks to combination of bold local marketing actions with our superior connectivity and comprehensive service. Mobile ARPO continues to reflect 5% growth of the main brand and changing the mix of customer base towards lower ARPO in B brand. These are very solid results achieved despite challenging competitive environment. Successful commercial activity is our main priority, is an anchor of our lead with future strategy and value creation. And we have quite a busy commercial agenda for second quarter, so you need to stay tuned. Thank you as for now, and I hand over the floor to Jacek.

Thank you, Ljubljana. Good morning, everyone. Let's start the financial review on slide 7 with the highlights of our performance. Our financial results in the first quarter were excellent across the board. Revenues increased almost 3%, driven by solid core telco and wholesale dynamics. The EBITDA grew by 9.5% year-over-year. Its outstanding dynamics reflect a strong underlying growth, as well as a one-time gain from VAT relief for prior years' bad debts. The net income reached almost 300 million zloty in Q1, growing by over 50% year-on-year. It was driven up by a strong EBITDA and by high gain on real estate disposal. Next, the 300 million Zloty e-CAPEX figure for Q1 reflects a slow start of investment due to harsh weather conditions in winter, as well as the already mentioned proceeds from high property disposals. Finally, the organic cash flow improved by 175 million year-on-year, due to the strong EBITDA growth combined with low capex. Q1 naturally reflects a seasonally high working capital requirement, so it is the year-on-year comparison that really matters, And this quarter, it is very strong. Let's now review our Q1 results in more detail, starting with the top line. Q1 revenues grew 3% year-over-year, fueled by progress in all key business lines. Revenues from core telecom services increased by nearly 5% year-over-year, and this is in line with our expectations. I will break this item down into two elements, so that we have a proper understanding of the trend. Firstly, all postpaid services, so conversions, fixed broadband and mobile postpaid, their combined revenues grew nearly 6% EURN, so exactly as much as in the prior periods, were keeping a very solid trend. This was fueled by the consistent growth of their customer bases and their respective ARPUs. Secondly, prepaid, where we record just over 200 million zloty of quarterly revenues. Their dynamics have naturally slowed down versus the elevated trends that we recorded in 2025. And just to bring this into the perspective, prepaid revenue dynamics were usually flat to negative, as customers progressively migrate to postpaid. However, in 2025, we lifted prepaid revenue to a double-digit year-over-year growth, with price hikes for almost the entire customer base that were done in Q1 of 2025. This is highly value-accretive, as most of these additional revenues are now recurrent. However, we are now measuring the year-on-year progress versus a much higher comparable base and prepaid is back to its flattish growth status, however, on the increased level. Then, revenues from wholesale posted a solid 6% year-over-year growth, despite the end of the national roaming contract. Here, we benefited from the fibre backhoe deal signed in H2 of 2025, although its contribution was much lower than in Q4 of last year. We benefited from infrastructure rental services, as well as from a consistent 40% year-on-year growth in the number of fibre accesses that we sell through our wholesale customers. Finally, revenues from IT and IS have increased by 7%, due to higher value of integration and networking projects realized by the B2B. To sum up on the revenues, we are satisfied with the pace of revenue growth in Q1. Secondly, we see good prospects for Q2 in the key lines of business, with strong trends in the B2C and solid project pipelines both in the B2B and wholesale areas. Let's now take a look at profitability on slide nine. Our Q1 EBDA increased by an outstanding 9.5% year on year. It is driven by a 6% underlying growth, reflecting strong business trends. Our direct margin grew by 4.5% year over year, benefiting from a strong growth of core telecom services, wholesale, and IT and IS. We're pleased with the very solid dynamics in the B2C and with the improving trend of margin in B2B, where margin recovery is amongst our top priorities for 2026. We've also built up an encouraging pipeline of projects for the second quarter both in the B2B area and in wholesale. These are strong assets in the face of an unstable macro and supply environment, so we are optimistic ahead of Q2. Our indirect costs were flat year-over-year, preserving our high operating leverage. We benefited from efficiency gains in network operations, in employment optimization, and lower cost of property maintenance. Our transformation program is accelerating, and so we should enjoy its further benefits in the future. Apart of the strong underlying performance, the EBDA has also benefited from a 28 million one-time gain related to the GAT relief on prior years' bad debt. Let me briefly explain this last item as well as its consequences. So, we sell overdue receivables through factoring. So far, we were paying the nominal amount of VAT on these, despite selling them below face price value. We have obtained a favorable court ruling And we can now pay VAT in proportion to what we recovered through factory. As a result, we have recovered the overpaid VAT for 2019 and 2020. There is an additional 45 million more to be recovered over the course of the next two to three years. As a consequence, we've also modified our GAT settlement for current bed debts and adjusted our balance sheet accordingly. Finally, from Q1 onwards, we're also recognizing slightly lower bed debt costs in the current P&L. As a takeaway, we are pleased with the Q1 EBITDA. What is particularly encouraging are its strong underlying trends and the commercial pipeline that we have developed for Q2. We're now clearly aiming at the upper end of the 2026 EBDA guidance. Thank you, and I hand the floor back to Mila.