Orange Polska Sa

Thank you for standing by. Let me welcome you to Orange Polska conference call in which we will present our results in the third quarter of 2026. My name is Leszek Iwaszko and I'm in charge of investor relations. The format of the call will be 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. Let me now pass the floor to Ludmila to start.

Thank you Leszek. Good morning and welcome to our conference on our summarizing on our achievements for third quarter of this year and I would like to start with slide four. Being very pleased to say that the first quarter was very successful for Orange Polska. Our results illustrate a perfect combination of excellent commercial growth and the increased efficiency. Performance of all our business lines was strong. In core telco services, we are consistently growing customer basis and R4. In B2B, growth of IT and S revenues was robust as we have captured numerous opportunities on the market. and finally in wholesale we delivered another very solid quarter boosting momentum of monetization of our infrastructure. These commercial achievements were combined with progress in our transformation program as we strive toward higher efficiency and it is visible through indirect costs which were lower if we look year on year a perfect mix of these two two companies resulted in a truly remarkable financial results with revenues growing at 8% and EBITDA at almost 16% in a single quarter our EBITDA has increased by 140 million zloty this is even slightly more than in the entire year 2025 clearly we are well positioned to deliver a very strong 2026 also a few weeks ago we finalized acquisition of Nexera one of the major fiber costs in Poland and this underlines our commitment to invest in fiber infrastructure and to straighten our fiber core joint venture. Let's review now this achievement starting from commercial activity. Our commercial strategy delivered strong results in both volume and value and across all key services. I will start with mobile. Net customer additions exceeded 80,000, which is very consistent with previous quarters in 2026. For the consumer market, this was the best quarter in more than five years thanks to excellent contribution from all brands and all offers. This again demonstrates the strength of our offering and our execution along the entire customer journey. Mobile ARPOG growth improved to 2.6% as we monetize our value strategy. We now have reached a very well balanced volume value growth in mobile, which was not that evident in the preceding previous quarters. In Fiverr, net ads stand out. They reached 48,000 this quarter, the highest in almost three years. It is an outcome of consistent marketing efforts and also our ability to adjust to high competition through local approach, through geo-targeting activities and effectively responding to the needs for higher speeds for Internet and for content, both linear content and OTT. And an important element of this success is also our footprint expansion into HFC, Hybrid Fiber Coax Infrastructure, of a third-party player, which we started in the second quarter, and it was further increased in the third quarter. and over time this footprint will be upgraded to fiber FTTH standard. Strong mobile and finance and fiber was accompanied by further growth in conversions with the pace of growth in line with our lead the future approach. We are now focusing more on reaching new households where we don't have yet customers using our services if we're speaking about fiber or mobile and further cross-selling to this household conversion services. In both fixed broadband, if we speak fixed broadband only, and in convergence, our poor growth accelerated it is now about 5% and we are persistent in applying our value strategy. These trends are key for today's value creation and also they give us confidence for the future. Moving forward and talking about our fiber infrastructure I would start with Svetlovod Investits who just finished its fifth year of operations and we are very satisfied with its performance. If we benchmark versus other European Fiber co-players its development is exemplary on the European scale. The footprint rollout is on track, and Svetlovodsk Investits is very efficiently converting the HomePass into their active services. There are already close to 900,000 active customers on its network, which implies 34% of take-up. This translates into the dynamic growth of financial results. After nine months of this year, EBITDA of Svetlovodsk Investits exceeded 150 million zloty, growing 40% year on year. Acquisition of Nexera will open a new chapter in our operations. Both networks of Nexera and of Svetlovodsk are highly complementary, fully built in FTTH technology and located in attractive regions with very limited overlap between different infrastructure players and now we are very much focused on integration aligning the processes between companies transferring best practices to be able to monetize this infrastructure effectively via more efficient use of resources this will enable Nexera to grow faster than it was demonstrating in the past so we are very happy with Nexera acquisition it was a model process in M&A we received approval for transaction from European Commission and we managed to keep their entire debt of Nexera on its balance sheet We are also very happy with our cooperation with our partner, EPG, our partner in this venture, and together we are committed to invest into digital infrastructure to the benefit of Polish digital economy. At this moment, thank you, and I am passing the floor to Jacek to give insights on our financials.

Thank you, Luzmila. Good morning, everyone. Let's start the financial review on Friday with the highlights of our performance. I am very pleased with the financial results of Q3. We have achieved outstanding growth of revenues, profits and cash generation. Revenues were up 8% year-over-year, as all business engines delivered very strong performance. Excellent revenue growth, especially from the core telco business, was coupled with strong cost savings. This combination drove the EBITDA to an impressive 16% growth in the third quarter. This translated into a 44% growth of the net income in Q3 standalone or plus 30% on the year-to-date basis, as our value creation model combines top-line growth with strong operating leverage. Our year-to-date capex was broadly stable year-on-year and in line with our full-year plans. further translated the growing profits into the higher cash flow and the year-to-date organic cash flow is up by 30% year-on-year. My takeaway from the year-to-date achievement is that our value creation model is working very well and we're creating a lot of value for shareholders. Let's now review The sources of these achievements, starting from revenues. Q3 revenues grew by almost 8%. This reflected a very consistent performance of core telecom services and a strong growth in more project-driven areas such as IT and IS and wholesale. First, revenues from core telecom services. they increased by 5.5% this dynamic has accelerated in comparison to the previous quarters as we are consistently growing our customer bases and improving the ARPO dynamics Core Telecom Services stood behind almost two-thirds of the direct margin growth that you will see on the next slide then IT and IS revenue rose by 24% marking another super strong quarter for this area of business. It reflected numerous big wins, especially for IT infrastructure in both commercial and public sectors. This demonstrates that we are able to grab market opportunities due to our large portfolio of competences. 2026 looks to be a tremendous year for IT and IS. Finally, wholesale revenues grew by 13% year on year, driven both by the fibre access sold in an open model and also by high revenue from the fibre backhaul contract signed last year. To sum up, First, we achieved very strong revenue dynamic from all business engines with consistent development of the core telco complemented by the big contracts. This is the driving wheel of our business model, so we are very pleased with both the speed and the sources of revenue growth. For Q4, we expect even stronger growth of core telco service revenues while we note that the comparable base for wholesale will be more challenging than in Q3 due to the fact that we had an accumulation of big contracts in the last quarter of 2025. Let's now look at how we turned higher revenues into profitability on slide 10. Of Q3, EBDA exceeded 1 billion zloty for the first time ever on a quoted basis increasing by as much as 15.6% European this outstanding dynamic was enabled by perfect execution both in commercial growth and in cost transformation direct margin increased by over 100 million zloty or 6% an outstanding dynamic that followed strong revenue dynamics across all business lines. It reflected growth of the high margin areas, such as core telco services and wholesale, coupled with exceptional increase of IT and IS revenues. This was coupled with very good dynamic of indirect costs, which were 35 million zloty down year-on-year in Q3. We gained a lot from the cost transformation program and achieved efficiency gains in network operations, workforce, property costs and GNAs. We also benefited from higher sale of copper as we stepped up copper decommissioning of the copper network this year and from about 20 million higher margin from the fiber network rollout as we are becoming ever more efficient in this continued program to roll out the FTTH. This excellent Q3 enabled us to reach over 9% EBDA growth over the 9 months. We are obviously very happy about this achievement. It is in line with our full year guidance. Following Q2 results, we guided for above 6% EBDA growth and we said that perfect execution could lead us to achieve 1 or 2% higher growth, meaning even 7 or 8% on an annual basis. And perfect execution in Q3 has evidently put us on track to reach this kind of excess. Now, let's look at the cash generation on the next page. We generated close to 900 million of organic cash flow in the nine months of the year. It was 200 million or 30% more than in the comparable period of last year. This was a very strong result driven by the outstanding EBITDA growth and coupled with higher cash from real estate disposal. It was partly offset by higher working capital as we sold more handsets in installments and we increased inventory levels ahead of the Q4 peak commercial season. The main takeaway today from cash analysis is that commercial growth coupled with high operating leverage drove the 30% growth of cash flows and we are perfectly positioned to achieve cash generation well above 1.2 billion zloty. That is all from me, and I hand the floor back to Ljubljana.