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France Telecom investor day, June 10th 2004:France Telecom investor day, June 10th 2004:

Building the integrated broadband communication services Group

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FT Personal StrategyFT Personal Strategy

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FT / Orange Personal StrategyFT / Orange Personal Strategy

customer focused growth

market basedsegmentation

innovation

newservices

One Orange within One FT

common infrastructure

distribution channels

track record

portfoliostrength

portfolio developmentleveragingleveraging

internationalinternationalassets

top linetop linegrowthgrowth

assets

operational excellenceoperational excellenceOrange commitment to delivering a world class

customer experience

4

FT / Orange Personal StrategyFT / Orange Personal Strategy

customer focused growth

needs basedsegmentation

innovation

newservices

One Orange within One FT

common infrastructure

distribution channels

track record

portfoliostrength

portfolio development top linetop line

growthgrowthleveragingleveraging

internationalinternationalassetsassets

operational excellenceoperational excellence

Orange commitment to delivering a world class customer experience

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Fundamentals of Customer Needs Based SegmentationFundamentals of Customer Needs Based Segmentation

!! Developing greater customer intimacyDeveloping greater customer intimacy

–– Implementing needsImplementing needs--based customer segmentationbased customer segmentation

–– Investing in skills, capabilities and systems Investing in skills, capabilities and systems

–– Disciplined and segmented market research, CRMDisciplined and segmented market research, CRM

!! Differentiation based on customer segmentationDifferentiation based on customer segmentation

–– All the elements of the value propositionAll the elements of the value proposition

–– EndEnd--toto--end touch points of the customer journeyend touch points of the customer journey

!! Innovation to meet customer needsInnovation to meet customer needs

!! Organisation reflecting customer segmentation strategyOrganisation reflecting customer segmentation strategy

Differentiate the customer experience to stimulate usage and increase loyalty

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Fundamentals of Customer Needs Based SegmentationFundamentals of Customer Needs Based Segmentation

NETWORKNETWORK

HANDSETHANDSET

SERVICESSERVICES

RETAILRETAIL

WEBWEB

CALL CALL CENTRESCENTRES

BRAND BRAND AWARENESSAWARENESS

BILLING & BILLING & PAYMENTSPAYMENTS

CARECARE

PROPRO--ACTIVEACTIVECOMMSCOMMS

ACQUISITIONACQUISITION RETENTIONRETENTIONGROWTHGROWTHAWARENESSAWARENESS

Differentiation across all stages of the customer journey

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- Insert video –Customer segmentation -

- Insert video –Customer segmentation -

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Differentiation - Signature DevicesDifferentiation - Signature Devices

! Active involvement in specification and design of phones

! Full multimedia capability– Integrated camera– Color screen– MMS

! Distinctive, user friendly Orange interface

– One touch access to all key services through common icons

! Over 20 Signature devices by year end

! Tailored devices for each customer segment

ExExtension of tension of Signature Series Signature Series in 2004in 2004

Signature devices are easy to use, relevant to the needs of our customers and deliver the best possible customer experience

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Differentiation - Signature DevicesDifferentiation - Signature Devices

!! Increasing share of new Increasing share of new customer contractscustomer contracts

–– 28% UK (Mar 2004)28% UK (Mar 2004)

–– 15% France (Mar 2004)15% France (Mar 2004)

!! Higher ARPU generation Higher ARPU generation than average contract than average contract customercustomer

–– France: 40% higherFrance: 40% higher

–– UK: 25% higherUK: 25% higher

!! Continuing coContinuing co--operation operation with handset vendorswith handset vendors

Orange UK Signature Orange UK Signature DDevice evice EEvolutionvolution

0

10

20

30

40

50

60

70

80

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

0%

5%

10%

15%

20%

25%

30%Monthly Signature deviceadditions ('000's)

% of new customer contracts

Increasing penetration of Signature devices driving usage and ARPU

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Differentiation - Orange World Multimedia ServicesDifferentiation - Orange World Multimedia Services

! Segmented portal experience

! Personalisation “Your Page” is a key feature– 23% of Orange France customers personalised their

home page– 3.5 times more visits to Orange World

! Simple/transparent pricing of data bundles– Orange France: €6/€10 option

– Orange UK: £4/£6 option

! Commercial success to Q1 2004:– 1.3 million customers in France

– 1.0 million customers in the UK

! Roll-out across the footprint over 2004/2005

Orange World multimedia services contribute to data ARPU growth

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Differentiation - Orange World Multimedia ServicesDifferentiation - Orange World Multimedia Services

!! Distinctive iconDistinctive icon–– One click access to Orange WorldOne click access to Orange World

!! Dynamic homepageDynamic homepage–– Constantly updated, contentConstantly updated, content--richrich

–– Not a static icon menuNot a static icon menu

–– “Add to your page” easy “Add to your page” easy personalisation featurepersonalisation feature

!! Open BrowsingOpen Browsing–– Surf internet without restrictionsSurf internet without restrictions

–– Innovative “Text to a Friend” serviceInnovative “Text to a Friend” service

–– Not a walled gardenNot a walled garden

Orange World multimedia services clearly differentiated from competitors’ offerings

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Increased Usage of New ServicesIncreased Usage of New Services

Orange France MMS evolution

0

1

2

3

4

5

6

7

8

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '040%

5%

10%

15%

20%

MMS UsageMMS enabled

Monthly MMS Monthly MMS Usage (M)Usage (M) % base enabled% base enabled

Orange France MMS evolution

Development of user communities drives usage of new servicesand ARPU growth

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Innovation - M2M Connect PlatformInnovation - M2M Connect Platform

!! Orange first to launch endOrange first to launch end--toto--end solution working end solution working with its partnerswith its partners

!! WebWeb--based panbased pan--European M2M Connect platformEuropean M2M Connect platform

!! Simple and intuitive with single customer interfaceSimple and intuitive with single customer interface

!! Focused endFocused end--toto--end solutions to the vending machine industryend solutions to the vending machine industry

M2M Connect platform delivers a tailored, end-to-end solution

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Innovation - FT Transversal Dynamic Address Book Innovation - FT Transversal Dynamic Address Book

1.1. Check status of contacts Check status of contacts (presence, location, availability)(presence, location, availability)

2.2. Select communication serviceSelect communication service

1.1. Choose communication serviceChoose communication service

2.2. Select addressSelect address

ContactsContactsContacts

IMIM

VoiceVoice

PTTPTTemailemail

SMSSMS

ChatChat

VideoVideoMMSMMS

Simplifying and enriching the customer experience

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Innovation - Needs Based MarketingInnovation - Needs Based Marketing

!! Innovative marketing campaigns clearly targeted to:Innovative marketing campaigns clearly targeted to:–– increase ARPU of our existing customersincrease ARPU of our existing customers–– remove barriers to adoption of new servicesremove barriers to adoption of new services

!! Dedicated inDedicated in--store Orange Coachesstore Orange Coaches

!! Highly successful “Learn” campaignHighly successful “Learn” campaign–– Orange recognised by customers as the only operator in the UK whOrange recognised by customers as the only operator in the UK who will, “teach you o will, “teach you

how to use your mobile phone” (58% agree vs. 26% nearest competihow to use your mobile phone” (58% agree vs. 26% nearest competitor tor -- MillwardMillwardBrown research)Brown research)

!! “Try” campaign drives customer adoption of new services“Try” campaign drives customer adoption of new services–– 801k new “Try” Connections801k new “Try” Connections

!! Segmented advertising campaignsSegmented advertising campaigns

A results focused approach to marketing

- Insert video – Advertising Orange France

- Insert video – Advertising Orange France

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224 229

39 44

£263 £273

Q1 03 Q1 04

15.8%

11.4% 11.0%

15.9%12.8% 11.3% 10.1%

17.2% 16.4% 16.3% 16.2% 16.2%14.0%

11.5%

UK Denmark Netherlands Belgium Switzerland France Slovakia

Q1 2003 Q1 2004

340 335

4735€375 €382

Q1 03 Q1 04

Improved Usage TrendsImproved Usage Trends

Annual Rolling ARPUAnnual Rolling ARPU !! ARPU growth in France and UK for ARPU growth in France and UK for more than 4 quartersmore than 4 quarters

!! Voice ARPU rising in the UK and Voice ARPU rising in the UK and stable in France despite price stable in France despite price pressures, reflecting increase in pressures, reflecting increase in usageusage

!! Growth trend in voice usage in the Growth trend in voice usage in the UK (+3.2% yUK (+3.2% y--oo--y) and France y) and France (+11% y(+11% y--oo--y)y)

France (€)

NonNon--voice revenues as a % of Total Netvoice revenues as a % of Total Networkwork RevenuesRevenues

UK (£)

Focus on quality customers is delivering higher usage. Non-voice will be a key driver to top-line growth

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Innovation - Mobile Broadband EvolutionInnovation - Mobile Broadband Evolution

!! EDGE and 3G will allow a qualitative leap in customer EDGE and 3G will allow a qualitative leap in customer perception of multimedia servicesperception of multimedia services

!! EDGE is a marginal investment on our existing 2G EDGE is a marginal investment on our existing 2G networks allowing national coveragenetworks allowing national coverage

!! 3G will provide greater capacity and a richer multimedia 3G will provide greater capacity and a richer multimedia experienceexperience

!! 3G will be introduced progressively3G will be introduced progressively

!! Dual mode EDGE/3G handsets will be prevalent Dual mode EDGE/3G handsets will be prevalent long termlong term

EDGE and 3G are complementary technologies allowing introductionof mobile broadband services without rupture in the business model

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FranceFranceBelgiumBelgium

FranceFranceCommercial 3G launch

in ten major cities

UKUKCommercial launch in ten major cities, major raillines and airports,

3G3G

BelgiumBelgium SlovakiaSlovakiaNetherlandsNetherlands

SwitzerlandSwitzerlandSwitzerland DenmarkDenmark

20042004 20052005 20062006

Innovation - Mobile Broadband EvolutionInnovation - Mobile Broadband Evolution

France 3G RollFrance 3G Roll--OutOutUK 3G RollUK 3G Roll--OutOut! 56% 3G population coverage at launch! 64% 3G population coverage by end 2004

! 33% 3G population coverage at launch! 20 major cities covered at 3G launch

3G launch: UK and France H2 2004

EDGEEDGE Romania, SlovakiaRomania, Slovakia

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Innovation - Interoperable Videotelephony

!! Genuinely new service for customers enabled by 3GGenuinely new service for customers enabled by 3G!! Community building is the key success factorCommunity building is the key success factor

–– Orange/France Telecom strongly placed to bring together Orange/France Telecom strongly placed to bring together communities of userscommunities of users

–– 3G 3G VideotelephonyVideotelephony interoperability with interoperability with MaLigneMaLigne and and Wanadoo Wanadoo –– Faster uptake of Faster uptake of videotelephonyvideotelephony

!! VideotelephonyVideotelephony will represent a richer P2P alternative will represent a richer P2P alternative –– Voice functionality to evolve in a Voice functionality to evolve in a videotelephonyvideotelephony environmentenvironment

Innovation - Interoperable Videotelephony

Orange and France telecom offering innovative, interoperable services from launch

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!! Market based segmentationMarket based segmentation!! Customer differentiationCustomer differentiation!! Signature devices Signature devices !! OrangeWorldOrangeWorld servicesservices!! Innovation with FTInnovation with FT!! Needs basedNeeds based marketingmarketing!! 3G service innovation3G service innovation!! Leverage FT groupLeverage FT group

AcceleratingTop-Line Growth

AcceleratingTop-Line Growth

Top-Line Growth is our Key FocusTop-Line Growth is our Key Focus

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FT / Orange Personal StrategyFT / Orange Personal Strategy

customer focused growth

market basedsegmentation

innovation

newservices

One Orange within One FT

common infrastructure

distribution channels

track record

portfoliostrength

portfolio developmentleveragingleveraging

internationalinternationalassets

top linetop linegrowthgrowth

assets

operational excellenceoperational excellence

Orange commitment to delivering a world class customer experience

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Focusing on Operational ExcellenceFocusing on Operational Excellence

!! Aggressive focus on productivity and cost reduction Aggressive focus on productivity and cost reduction is new for mobile operatorsis new for mobile operators–– Orange ahead of the game after successful implementation of TOP Orange ahead of the game after successful implementation of TOP

program from Q4 200program from Q4 20022–– Continued rationalisation of OPEX to increase investment in markContinued rationalisation of OPEX to increase investment in marketingeting

!! Leveraging common infrastructure across the FT / Leveraging common infrastructure across the FT / Orange groupOrange group–– Build once, deploy everywhereBuild once, deploy everywhere–– Rationalise multiple platforms/functions where it makes senseRationalise multiple platforms/functions where it makes sense–– Single platforms provide basis for integrated servicesSingle platforms provide basis for integrated services–– Faster time to market and greater top line growthFaster time to market and greater top line growth

Continued delivery of TOP objectives

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One Orange within One FTOne Orange within One FT

!! Achievement of TOP objectives during 2003Achievement of TOP objectives during 2003–– Improved CAPEX management processImproved CAPEX management process–– CAPEX benchmarking CAPEX benchmarking -- Over €900m CAPEX saving in 2003Over €900m CAPEX saving in 2003

vs. initial budgetvs. initial budget–– Roaming capture rate increased 11% yRoaming capture rate increased 11% y--oo--y and International y and International

traffic carriage by FTtraffic carriage by FT Networks & CarriersNetworks & Carriers increased by 8%increased by 8%–– Group marketing campaigns generated €107m savingGroup marketing campaigns generated €107m saving

!! Continuing to deliver operational excellence in 2004 Continuing to deliver operational excellence in 2004 & 2005& 2005–– Further CAPEX savingsFurther CAPEX savings–– 10% expected saving on IT spend in 2005 and 20% expected 10% expected saving on IT spend in 2005 and 20% expected

saving on service platform spendsaving on service platform spend–– Internalisation of OPEX spend within FT group Internalisation of OPEX spend within FT group

Reinvestment of savings from rationalisation and centralisation in top line initiatives and customer investment

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FT / Orange Personal StrategyFT / Orange Personal Strategy

customer focused growth

market basedsegmentation

innovation

newservices

One Orange within One FT

common infrastructure

distribution channels

track record

portfoliostrength

portfolio developmentleveragingleveraging

internationalinternationalassets

top linetop linegrowthgrowth

assets

operational excellenceoperational excellence

Orange commitment to delivering a world class customer experience

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FT / Orange Balanced Growth Portfolio

Poland

UKDenmark

Switzerland NetherlandsBelgium

France

Slovakia

Cameroon Cote D'Ivoire

Romania

Egypt

Botswana

Madagascar

0%

25%

50%

75%

100%

0% 10% 20% 30% 40% 50% 60% 70%

Orange operations y-o-y revenue growth (%)

Wire

less

Pen

etra

tion

Rem

aini

ng (%

)

ARPU / usage growthARPU / usage growthdriven marketsdriven markets

Customer growthCustomer growthdriven marketsdriven markets

FT / Orange Balanced Growth Portfolio

Orange portfolio shows balance between customer driven and usagedriven markets, delivering long term top-line growth

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FT/Orange PortfolioFT/Orange Portfolio

Market ShareMarket Share PositionPositionPro formaPro formaRevenue Revenue growthgrowth

Pro formaPro formaEBITDA EBITDA growthgrowth

20032003EBITDA EBITDA marginmargin

49%49% 4%4% 43%43%UKUK 26%26% 11 7%7% 20%20% 34%34%BelgiumBelgium 33%33% 22 16%16% 37%37% 37%37%RomaniaRomania 47%47% 22 42%42% 55%55% 51%51%SwitzerlandSwitzerland 18%18% 33 16%16% 277%277% 26%26%SlovakiaSlovakia 56%56% 11 21%21% 26%26% 43%43%DenmarkDenmark 12%12% 33 7%7% 300%300% 19%19%NetherlandsNetherlands 9%9% 55 16%16% -- 8%8%PolandPoland 33%33% 22 29%29% -- --EgyptEgypt 53%53% 11 30%30% 25%25% 52%52%AfricaAfrica//OtherOther 34%34% 46%46% 43%43%

20032003 MarketMarket PositionPosition RevenueRevenue andand EBITDA (2003EBITDA (2003--2002)2002)

FT/Orange has developed a strong international portfolio

!! All of our operations are achieving #1 or #2 positions except DeAll of our operations are achieving #1 or #2 positions except Denmark and the Netherlands nmark and the Netherlands (Switzerland #2 by value)(Switzerland #2 by value)

!! RebrandingRebranding in the Netherlands led to impressive customer growthin the Netherlands led to impressive customer growth!! As of Q1 2004, all operations contribute positive Op. FCFAs of Q1 2004, all operations contribute positive Op. FCF

FranceFrance 11 21%21%

Source: Mobiles Communication / global mobile as of Source: Mobiles Communication / global mobile as of DecDec. 31th, 2003. 31th, 2003

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Track Record in International GrowthTrack Record in International Growth

! Double digit customer and revenue growth in all key RoW operations! Western European operations still enjoy double digit customer

and revenue growth! Romania is now Orange #3 market in terms of customers

! Double digit customer and revenue growth in all key RoW operations! Western European operations still enjoy double digit customer

and revenue growth! Romania is now Orange #3 market in terms of customers

52%52%

36%36% 38%38%

21%21%

11%11% 12%12%

29%29%

54%54%50%50%

39%39% 37%37%

19%19% 16%16% 15%15%

RomaniaRomania Africa/OtherAfrica/Other NetherlandsNetherlands EgyptEgypt BelgiumBelgium SwitzerlandSwitzerland SlovakiaSlovakia

Customer GrowthCustomer Growth Revenue Growth (ProRevenue Growth (Pro--forma)forma)

Note: Q1 2004 year-on-year.

International should represent Orange's second highest revenue contribution within the next 2-3 years

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Footprint Portfolio DevelopmentFootprint Portfolio Development

! Consolidate / rationalise on existing footprint

! Assess selected growth opportunities

– New licences

– Acquisitions

– Focus on existing regional clusters

! Ensure coherence with France Telecom group footprint

!! Consolidate / rationalise on existing footprintConsolidate / rationalise on existing footprint

!! Assess selected growth opportunitiesAssess selected growth opportunities

–– New licences New licences

–– AcquisitionsAcquisitions

–– Focus on existing regional clustersFocus on existing regional clusters

!! Ensure coherence with France Telecom group footprintEnsure coherence with France Telecom group footprint

Opportunistic approach to footprint expansion driven by need to create demonstrable shareholder value

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ConclusionConclusion

Delivering on Commitments and Fixed/Mobile ConvergenceAccelerating Profitable Growth

Leadership through Innovation and Integration with FT

customer focused growth

market basedsegmentation

innovation

newservices

One Orange within One FT

common infrastructure

distribution channels

track record

portfoliostrength

portfolio developmentleveragingleveraging

internationalinternationalassets

top linetop linegrowthgrowth

assets

operational excellenceoperational excellence