Orange Polska Sa

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

Thank you, Leszek. Good morning and welcome to our conference summarizing second quarter of 2026. And let's start on slide four. I am very pleased to share with you on our progress for first six months of the year. within this time we were focused on our priorities set in lead the future strategy pursuing brave commercial agenda investing in our network and implementing transformation initiatives for our operations and it all starts with profitable growth which was excellent across all our business lines Firstly, in core telecom services, we successfully combined healthy pace of growth of customer basis and improving our port dynamics. And I am very happy that Orange Polska was the leader in mobile number portability for the second consecutive quarter, with net gain for Q2 of 20,000 customers. Secondly, it was a particularly good quarter for B2B. Revenues in IT and IS increased by as much as 50% in second quarter thanks to an accumulation of contracts won. In addition, we signed the first major contract for the defense area which we see as a significant milestone for future developments. And finally wholesale sustained very strong momentum, growing revenues by double digits despite lack of national roaming contract which expired last year. These strong commercial achievements were combined with progress in our transformation program as we strive towards high efficiency and it is visible through indirect costs which were flat if we compare year over year and all that is translated into strong financial results in H1 revenue growth exceeded 7% and EBITDA growth exceeded 6% and as a consequence of strong first half of the year. We are confident in the right execution of our strategy and we are more optimistic regarding our future prospects. Let's review these achievements in more details and I will start with commercial activity on next slide. So our commercial performance in Q2 was successful both in volume and value. These trends are key to today's value creation, but also give us confidence for quarters to come. And starting with mobile, where results were particularly excellent, net customer additions exceeded 80,000. and as I have mentioned already, we were again the winner of number portability with a big advantage. This demonstrates the strength of our multi-brand strategy and also confirms that customers continue to value the quality and our always-on connectivity. For the mobile ARPO growth improved exceeding 2% as we monetize our value strategy. It was driven by acceleration in the main brand on consumer market and an improvement in B2B. And as a result, we have reached a well-balanced volume value growth in mobile which was not that evident in the previous quarters. Moving on to fiber, customer base increased 10% year on year. Net customer additions were similar to a year ago and we see it as a very strong achievement despite fierce competition which we see in these areas. In second quarter, we increased our footprint for high-speed broadband by 900,000 households in hybrid fiber co-ops, HFC technology, of getting access to one of the wholesaler's networks. Over the time, these footprints will be further increasing and will be gradually upgraded to FCTH standard. And this new infrastructure creates a new fishing pool for us for growth in our very high broadband services. Strong mobile and fiber were accompanied by further growth growth in convergence with the pace of growth in line with lead with future strategy convergence remains key to value creation on consumer market it already penetrates our customer base in a very high proportion and that's why we are focusing on reaching new households not yet using our services with fiber or mobile services and we are quite successful with that in the first half of 2026 the number of households where Orange is present with our services was growing offering promising prospects for the future and strong results of core telecom services were accompanied by strong performance in B2B and wholesale and I would like to zoom in on it on next slide, slide six. So common feature of these two business lines is that their revenues include both recurrent streams and the boosts from particular big deals. And if we want to achieve strong growth, we need both of these streams. And we see it well reflected in results of the second quarter. Starting with the business market, if you remember our priorities for 2026 that we were presenting in February, one of them was to achieve profitable growth in B2B. And I am pleased to confirm that this is clearly happening. It is driven by constantly improving trend in telco services and the accumulation of contracts won in ITNS. And additionally we have signed a first major contract in the defense sector and I hope that this will open new market opportunities for value creation. I'm switching to wholesale. it sustained great momentum in H1 with particularly high 17% growth revenue growth in Q2 and this is despite the absence of revenue from national roaming contract it was driven by consistent growth in wholesale fiber access and big deals in infrastructure rentals This should remind us that wholesale is our strategic line of business, complementing our retail operations and balancing our risk profile. And now we have discussed all three business lines which build growth of our revenues and margin. And the missing element for EBITDA is cost transformation. and I invite you to look on next slide, on slide seven. Under the Lead the Future, we have launched a new wave of transformation focused on improving efficiency, expanding margins, and strengthening our cash generation. It covers all areas of our business, and you can see the pie chart on the slide illustrating it. Its key levers are automation, processes re-engineering, and opportunities from integrating AI in our operations. And the key measure of its overall progress is the evolution of indirect cost, indirect so it is not directly linked to revenues and our aim to keep these costs flat despite growing business and despite growing investments in our networks. This enables high operating leverage and as a result allows us to to floor our revenues in EBITDA and consequently into the cash. And we are very pleased that this transformation is progressing well and that underlying indirect costs were flat year over year if we look on first six months of this year. Now you have seen that strong H1 results were a combination of strong commercial execution and also a solid progress in our cost transformation. It allows us to be more optimistic regarding the future. And just to illustrate it on the next slide, as a consequence, we are raising our full year guidance in most areas so for revenues for EBITDA and for organic cash flow following the exceptional revenue growth to date we now expect full year revenues to grow by low to mid single digit in percentage this will translate into EBITDA that we expect to grow at above 6%, so an important improvement versus our initial estimate. We have decided to guide above 6% as the perfect execution in the second part of the year could see us landing above this level. And finally, we are raising operating OSPF cash guidance to at least 1.2 billion zloty this means that we plan it to grow by more than 20% in 2026 this guidance is underlining our determination to grow our financial outputs and to create values for our shareholders. This is all for me as for now and I hand over the floor to Jacek to walk you through the details of our financial results.

Thank you, Ludmila. Good morning, everyone. Let's start the financial review on slide 10 with the highlights of our performance I am very pleased with our financial results in Q2. We have increased our revenues, profits and cash generation. Revenues were up by 12% year-on-year. A solid, consistent development of core telecom services was coupled with exceptional growth of revenues from IT and IS. High top line was coupled with cost savings. and in turn, this drove the 3% EBDA growth in the second quarter. This is a strong achievement, especially as we note that the second quarter of 2025 included a 75 million zloty positive one-off from the rollout agreement, so the comparable base was very high. Solid revenue and EBDA in Q2 enabled us to achieve excellent results for the first semester with 7.5% revenue uplift and a 6% growth of the EBDA. High operating results were coupled with CAPEX discipline and as a result we have significantly increased our net income by 24% year-on-year and our organic cash flow by 43% year-over-year