Press & Investor Day 2015 - orange.com · Press & Investor Day 2015 17 March 2015, Grand Palais,...

ORANGE

Press & Investor Day 2015

17 March 2015, Grand Palais, Paris

Transcription – English

Table of Contents

Introduction and Overview ........................................................................................... 2

Stéphane Richard ............................................................................................................................................................. 2 Digital revolution ....................................................................................................................................... 2 Orange’s strengths .................................................................................................................................... 3 Launch of the ESSENTIELS2020 plan ........................................................................................................... 4 5 levers of action ....................................................................................................................................... 4

Offering enriched connectivity ..................................................................................................... 5 Reinventing the customer relationship ......................................................................................... 8 Building a company model that is both digital and caring ............................................................... 9 Supporting the transformation of business customers ................................................................. 10 Diversifying by capitalizing on our assets .................................................................................... 11

New identity of our brand ....................................................................................................................... 13

Financial Presentation ................................................................................................. 14

Ramon Fernandez .......................................................................................................................................................... 14 Investment Programme ........................................................................................................................... 14 Sales Growth ........................................................................................................................................... 16 Cost Reduction ........................................................................................................................................ 17 Financial Position..................................................................................................................................... 20

Essentiels2020 ............................................................................................................ 21

Stéphane Richard ........................................................................................................................................................... 21

Q&A Session ............................................................................................................... 23

Concluding Remarks .................................................................................................... 33

Stéphane Richard ........................................................................................................................................................... 33

Exemple d’en-tête

2

Introduction and Overview

Stéphane Richard Chairman and Chief Executive Officer

Good morning everyone. Thank you for attending this very special day for Orange. Today, I

am about to present our new strategic plan, which will guide our actions until 2020.

It follows up our Conquests 2015 plan, launched in July 2010. Thanks to Conquests 2015, we

have seen many success stories come to life despite a tough environment. But we did

succeed, thanks to bold choices and a meticulous cost management. Building on these

achievements, as illustrated by our outstanding commercial performance in 2014, we are

now much better armed to write a new page of Orange’s story.

I am pleased to present our new strategic plan with the Executive Committee by my side.

They have been fully committed in setting up this plan with me and I want to thank them all.

This plan is the result of hard collective work. We have discussed it extensively for some time

now, and we are ready and excited to implement it together.

Digital revolution

Let’s now switch to French to discover it.

Because it changes our behaviours, disrupts hierarchies, enriches our imagination, the digital

revolution has completely changed our world, our relationship with the world, our openn ess

to the world. Of course, it has also given rise to new expectations, such as the need for

connectivity, which is now virtually vital. Our smartphone has become an indispensable part

of our daily lives: on average, we consult it 150 times a day, and spend nearly 2.5 hours

looking at it! And this is just an average. Some take that further.

But this revolution has also given rise to new requirements. As we each live in our own way,

depending on our profile, according to our tastes, our particularities, we expect offers and

services to be as flexible and adapted to our needs as possible. Therefore, the challenge is

not only to offer a high-performing network, "ready-to-connect" for everyone, but to offer

services that take into account the reality of the digital life of each person. We must

therefore respond to the new aspirations of our customers for a secure and seamless

connectivity, greater customisation, while enjoying, of course, a good price/quality ratio.

Good value for money. These expectations go hand in hand with the extension of the digital

experience.

The generalisation of video on the Internet and the growing appetite for content have led to

a boom in mobile network traffic, with a 50% rise in traffic every year. It also involves the

doubling of the number of screens in households, from 6 screens on average in 2014 we are

going to have 13 screens in 2022, with increasingly less differentiated fixed/mobile uses.

And finally, there is a new and significant trend: the emergence of connected objects, which

are on the verge of becoming a huge part of our lives in an increasing number of areas . This a

new era is about to begin: the "Internet of things". It is estimated that there will be more

than 25 billion connected objects in the world in 2020. The networks are therefore more

than ever an activity of the future!


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This evolution involves a two-fold challenge: a technical challenge to cope with this explosion

of uses, and an economic challenge for the monetisation of data. There are new expectations

with more and more usages but our industrial environment is changing. There has been a

continuous increase in competition.

We are still in competition with the other telecom operations, including the cable operators

who are now fully present on telecom services, strengthened by several mergers in Europe,

as in France with the takeover of SFR by Numericable. This is in a context where the

European markets are massively evolving towards the fixed-mobile convergence with swift

technological cycles on mobile with the 4G and soon the 5G, and on fixed with fibre.

Regulations are, of course, very present in our mind, but are starting to change. The public

authorities and regulators are becoming aware of the need for investment and are slowly

starting to revise their approaches, by giving more room to investment incentives. In France,

this was reflected by a slight increase in the unbundling tariffs (after an uninterrupted drop

ever since this was set up) and by wholesale prices on optical fibre incorporating a premium

for the primary investor operator. Following this same rationale, the authorities in charge of

competition now accept intra-country consolidation operations, such as in Germany, Ireland

or Austria. They have understood that the aim of consolidation operat ions is not to raise

prices, as competition remains very high, but to better amorti se investments quite simply.

Although they impose significant remedies, there is no longer a dogma on having a minimum

of 4 network operators per country.

However, apart from the competition between operators, we are also seeing the

development of a new form of competition from over-the-top or OTT platforms. Of course,

these actors are partners with which we create value for our customers. However, we must

not be naïve. We must remain vigilant on the temptations and open strategies of the

commoditisation of access. Here again, the European and national authorities are becoming

increasingly aware of the need for equal regulatory, competitive and tax treatment between

OTT and operators, even if this is not always easy to put in place. This is the challenge of the

level playing field and we have been fighting for that in Brussels.

Orange’s strengths

In this context, Orange has many strengths. First of all, the commitment of our employees

and strong proximity with 6,500 shops across the group. Powerful networks, which are

reliable and of increasingly high speed, with fibre, 4G and also our submarine cables. Thirdly,

we have a strong capacity for innovation which is reflected in commercial success, as

evidenced by our mobile finance offerings – Orange Money in Africa and Orange Finanse in

Poland or Homelive in France, our connected home offer. Finally, we have a leading brand,

Orange, which is recognised internationally on the values of quality and confidence over the

world.

With these strengths, Orange can provide digitalisation, which penetrates all areas of life:

family, home, well-being and health, entertainment, work. This is a unique opportunity for

Orange, because it places connectivity and operators at the heart of uses. It is a unique

opportunity, but there is one condition to be met: we must meet the aspirations of our

customers.

Our mission is strong, clear, and assumed: the role of Orange is to be "always in touch" to

connect each person to what is essential in their life. This new approach is the cradle of our

reflection. Instead of thinking on the basis of our technologies, our propositions, our


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networks, we now wish to adopt the points of view of our customers to offer each person

the best experience on a daily basis, for our individual customers as well as for our B2B

customers. What we promise our customers is not only technologies ; it is a "service

rendered" from end to end, with the greatest simplicity of use possible.

Launch of the ESSENTIELS2020 plan

It is therefore entirely natural that at the time of choosing the name for this new strategic

plan, I wanted a name that reflects something that focuses on the essential needs of our

customers, and which also marks the focus of the entire business and of management. A

name which also sets a goal, a clear horizon of 2020, as our actions, our investments, the

dynamics we are now launching are intended to be sustained over the long-term. I am

therefore very pleased to launch our Essentiels2020 plan.

For this strategic plan, we have a central, exacting and strong ambition: to offer each of our

customers an unmatched experience. What is an unmatched or incomparable customer

experience? First, we must start to be excellent on what I call the "basics". This ability to

communicate and to be connected at all times and in all places that are important to our

customers. This is the primary expectation of our customers, and we owe it to them to be

exemplary. The quality of service they perceive must be perfect at every moment of the day,

whether at home or in their place of work, during their daily travel or in public transport.

But we don't want to stop there. We want to go as far as creating enchantment – to surprise

our customers. This will take place, in particular, through a sophisticated and unprecedented

customisation of services and offers. Each customer will be recognised in all his or her

interactions with Orange and accompanied in his or her digital life. Every day, Orange will be

there to meet his or her expectations and even to anticipate customer needs.

Finally, thanks to innovation and by always being on the cutting edge, we will make our

customers discover new digital uses to enrich their daily lives and make their li ves easier. The

historic role of Orange has always been to popularise new technologies to the greatest

number of people. In the era of the digital revolution, this role has become even more

significant.

We want to offer this unmatched Orange experience to all our customers, wherever they

may be. Our international strategy is very clear; it has not changed. Our playing field is

Europe, Africa and the Middle East, and throughout the world for our major corporate

customers with OBS.

In Europe, we continue our path towards convergence in all countries, particularly after the

takeover of Jazztel in Spain and the transfer of EE in the United Kingdom. Africa and the

Middle East remain a growth territory for us. The constitution of a holding company for our

operations in this region will give us greater room for manoeuvre to develop our business.

5 levers of action

For this Essentiel2020 plan, I have decided to place all of the Company's resources at the

service of a single goal. The entire Orange Group – teams and management – will focus on

this goal, which will guide each of our actions. That objective consists in offering all our

customers an unmatched experience – the Orange experience.


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We are going to implement 5 levers to achieve this goal. First of all, the customer experience

begins with the quality of the network, and for this we are going to offer our cus tomers an

enriched connectivity. We are then going to reinvent the relationship we have with our

customers. We are going to mobilise all our employees around a new company model that is

both digital and caring.

We are going to support the transformation of our business customers by offering not only

connectivity, but a high standard of service, by constantly adapting ourselves to the

evolution of its activities. Finally, we are going to diversify by offering new services to our

customers, in an extremely targeted way, where we can create value by capitalising on our

assets, and in 2 areas on which we are legitimate and expected by our customers: mobile

banking and connected objects.

To make all this possible, we must embark on a business dynamic: a digital business dynamic,

of course, but also a more and more effective business dynamic that is also more

responsible. We are going to use digital tools and the digitalisation of our internal and

external processes, by integrating the tools of Big Data, the Cloud and the opening of our

APIs. We are going to continue to work in an open innovation mode. Also we shall continue

with our Chrysalid operational efficiency programme, for which we set the same level of

ambition as for the previous period. Finally, we will simplify our organisation to have less

layers in the hierarchy and more decentralisation.

We will reach our goals respecting social performance and by being an ethical company,

respectful of the ecosystem and the environment in which we operate.

Providing an enriched connectivity

Let us now move to the first lever of the Essentiels2020 plan: an enriched connectivity. The

Orange experience will firstly be based on an enriched connectivity for all our customers in

all our markets. Because what counts most for all our customers is quality, and the network

performance as they perceive in their main places of life and their daily travel. This involves

access to first-rate infrastructures. We are already the leader in the deployment of fixed and

mobile broadband in most of our countries. We want to broaden that gap. That is why we

will invest over €15 billion in our networks between 2015 and 2018.

This investment effort will be carried out in a targeted way. First, with a clear priority to

investments in high speed broadband, to respond to the explosion of traffic and the

expectations of our customers. These investments are important; they create value for the

next 5 to 10 years to come on mobile, and for the next 20 to 30 year to come on fixed line

operations.

We will then prioritise our investments where we know our customers have genuine needs,

and where we can significantly improve their daily experience, by mobilising all the

technologies available. To intelligently allocate our resources, we will deploy a CEM –

Customer Experience Management tool. This will give us a view on all our customers and

their individual experience of the network. By the systemat ic escalation of information on

the use of our customers, we will be able to better identify the areas in which the coverage is

not satisfactory for our customers, and we shall be better able to detect any malfunctions in

real time. This will enable us to focus our efforts to provide the best experience for our

customers where they need it. For example, when we detect that you have poor mobile

coverage at home, we will contact you either to inform you of the works we are planning to

improve this coverage, or to offer you an alternative solution, via a femtocell. In the same


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spirit, the My Network application will allow each customer, if they wish, to participate in the

improvement of their own quality of service by reporting any difficulties they may encount er.

These initiatives will enable us to prioritise the allocation of network Capex according to

their impact on the customer experience and to track the evolution of uses. Our aim is to

triple the average data flow of our customers on our fixed and mobile networks in all our

countries by 2018 compared to 2014.

In France, regarding fibre, we are going to catch up with and rapidly exceed the geographic

footprint of cable and offer our high speed broadband services to the greatest number of

people by tripling our fibre investment by 2020. We will increase from 3.6 million

connectable households at the end of 2014 to 12 million in 2018 and 20 million in 2022. For

us, the FTTH is clearly a tool for creating value, by the win back of market shares and

fostering the loyalty of our customers, as well as by the improvement of the ARPU, as can be

seen in our 2014 results.

In France, regarding mobile, we will continue our investments in the 4G and we will build on

the quality of our portfolio of frequencies, which is the best of all operators. This will allow

us to maintain our leadership and to respond to the concerns of our customers on the quality

of the mobile network, notably during travel and in the transports, but also inside buildings.

That is the challenge of indoor coverage.

To immediately respond to this expectation of indoor coverage on mobile, we are going to

launch Voice on Wi-Fi, as of this year. The benefit will be immediate for our customers. Once

customers are connected to Wi-Fi, at home, in the office, with friends or on holiday, they will

be able to transmit and receive all their calls in a completely transparent way, as if they were

connected to the mobile network. In major urban areas, by relying on our CEM tools, we are

launching the My City Without Cuts project, which aims for the virtual disappearance of

dropped calls.

In Europe, we have a very clear objective: fixed-mobile convergence. We want to be present

in the homes of our customers. To achieve this, we will be pragmatic and adjust the situation

in each of our countries.

In Spain, we are going to continue the development of our FTTH network and our TV offer, in

particular by the acquisition of Jazztel, currently being examined by the European

Commission: we will double the share of our convergent revenue, which will represent 40%

of revenues by 2018.

However, in Europe, not everything will be carried out by means of acquisitions. In Poland

we will deploy our own fibre network. In Belgium, a country characterised by the strong

presence of cable and where the regulator has decided to put in place a control of these

networks, we are testing the use of cable. We have also announced the launch of a TV offer

for 2015, breaking with the current offerings. In Romania, we are approaching the

households in a different way. Boosted by our leadership position in mobile, we have

opportunistically added a TV offer, thanks to the low price of contents.

This approach will also allow us to better serve our business customers and to develop our

value market shares on the B2B fixed and mobile market in Europe, to move closer to those

of the B2C.

More specifically on mobile, in Europe we are aiming for a 4G coverage in excess of 95% on

our European footprint in 2018. In Africa and the Middle East, the Internet will be


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channelled mainly through mobile, and our challenge is therefore to bring more customers to

mobile data uses. Orange will continue to invest massively in the coverage of territories and

in the increase in bandwidth. We are planning to launch the 3G in 2 additional countries,

Cameroon and Guinea-Bissau. As for the 4G, it will be launched gradually in 4 countries in

2015 and in the majority of countries of this region by 2018. In addition to these

infrastructures, we are launching customised offers with the Orange universe, in order to

popularise the use of mobile data, such as the Klif telephone. This is a smartphone at $40

including a communication pack and 6 months of Internet access, which we just announced

at the Mobile World Congress 2 weeks ago.

To anticipate the future uses of our customers, we must transform the very philosophy of

our networks to make them more agile and to optimise them. Ultimately, we will be able to

make our networks dynamically programmable in real time in order to automatically adapt to

the evolution of traffic and needs. This will first be done with the move to the all-IP, which

will allow the fixed or mobile voice, data, Internet and television services to communicate

everything by IP, i.e. in a single language, a universal language. All-IP" is first of all the

possibility to introduce new convergent voice-data-image services, for the general public and

for the Enterprise market, and to improve our quality of service. This technology will also

allow us to gain in efficiency and in agility and to significantly reduce our network Opex at

the end of the migration programme, thanks to the abolition of the use of RTC and

associated equipment on our copper networks for the benefit of voice over IP.

The virtualisation of our networks will enable us to make the hardware and software

separable, that is, we will be able to remotely re-programme any physical equipment of the

network to give it a new function, without having to physically intervene, or even to install

new equipment, as is currently the case. The development of the Cloud and APIs will also

continue in this evolution towards greater flexibility and openness. Moving forward, the

development of the 5G will allow us to go even further. It will give us the radio infrastructure

adapted to new uses of the mobile Internet and the Internet of things, and will also lead us

towards a fully digital economy.

These developments will give us the agility to respond to the needs of our customers in real

time, while reducing our cost structure and our CO2 emissions.

We will build on this quality of the network to develop uses and meet the expectations of our

customers by offering an experience of enriched and multi -screen content.

That is what we offer with our new TV interface, Polaris, presented on Orange TV in France,

and which allows you to find the same experience consistently on all its screens (TV, tablet,

smartphone, computer), with the option to switch very simply from one screen to the other.

Polaris is an incomparable experience to consume content when you want, on the screen

that you want, designed specifically for an easy and intuitive access to content.

With the launch of the TV stick in Romania, and soon in France, our customers will be able to

have access to Orange TV and the associated content at home, simply by plugging this HDMI

key into their television.

In addition, we have a multi-distribution strategy for OCS and we are pursuing the

enrichment of our package, both in terms of technological innovation and conte nts, with the

recent signature of an exclusive agreement for Sony Picture Television contents.

We cannot talk about TV without mentioning the box. Our box is one of the most performing

on the market. In order to be in a leading position, I announce that our new box will be


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launched out next year, and I will have the pleasure of presenting it to you at the end of next

year, at the next edition of the Show Hello.

Our content strategy is simple: reinforce our role of distributor by favouring a positioning of

aggregator, capable of selecting, promoting, packaging and offering attractive content which

corresponds to the expectations of our customers, in a simple and fluid way.

Thanks to all these innovations, linked with the increase in the bandwidth of our cu stomers,

our ambition is to increase the "Entertainment" revenue of the Group's fixed customers by

50% by the end of 2018.

Reinventing the customer relationship

The second fundamental aspect of our Essentiels2020 strategy is the customer relationship.

To reinvent the customer relationship, we will approach all our activities on the basis of the

experience and uses of our customers, by anticipating their expectations and by responding

to them in a targeted and effective way.

Because the strength of Orange is to address all users, to provide solutions for each market

segment without neglecting any, from digital customers attentive of prices to customers who

are most demanding on the service, including Enterprise customers, from the smallest

professional to the multinational.

We must first simplify the customer journey, limit the steps and intermediaries, with special

attention to the key moments of the interaction, in particular the command. Physical and

digital points of contact should participate in a single, adapted and agile customer

relationship, made possible by the digitalisation of our processes and our services.

Being perfect as far as the customer is concerned means developing a relationship of trust

with our customers. Orange must be the operator that ensures the security of data and

respects the privacy of its customers, and we are going to develop and make accessible to

the greatest number of people flagship services such as Mobile Connect, a simple and

universal solution, with a secure authentication system. Mobile Connect will affect more

than 1 billion users by 2016.

For the customer relationship, Big Data is the ultimate tool that will enable us to better

understand our customers and propose offers to them which respond to their expectations

and wishes. Imagine that when you enter an Orange shop or call your customer service, your

Orange advisor says: "Hello Mr. Richard, the smartphone you ordered to replace the one

your daughter broke is ready. I can offer you a protective cover if you want. It could be

useful. By the way, I hope you are satisfied with the fibre installation we performed in your

home last week. Did you know that you benefit from the OCS package in your offer? ”

This is what the integration of specific smart data tools in our customer relationship process

in shops or on our digital channels will allow: in all our points of contact, you will be

automatically identified and recognised, and your contact will have access to the entire

history of your relationship with Orange.

The simplification of the customer journey also takes place through the complementarity of

our physical and digital channels. This is something that Orange believes in. We will not

replace a channel by another one. We think we need mutual enrichment and quali ty in our

common journey. Of course, it is always immediately available and very simple to use. So

digital is an essential component of the customer relationship, and is set to make major


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progress. Our goal is that half of all our customers' interactions with Orange in France and in

the rest of Europe pass through the digital channel by 2018, as compared to slightly over 30%

today. It is a benefit for the customer, and also a very effective way to make savings.

And to facilitate the lives of our customers, in France, from 2016 there will only be one

Orange customer service number, regardless of your offer, your problem or your req uest for

information. In Africa and in the Middle East, where prepaid is still the dominant use, the

great majority of customer interactions such as the account status or recharging via Orange

Money are already automated. Thanks to the growth in the fleet of smartphones we actively

support, we can radically improve the ergonomics of these acts of daily life for our customers

and propose new services, in particular by the progressive deployment of an enhanced

version of the "Orange and Me" application.

In a "mobile first" environment, the mobile becomes the preferential point of contact for

sales and services, which leads us to optimise the coverage of our physical retail outlets, but

above all to redesign their role. Our points of sale should become concept-stores, offering a

warm and original experience, organised by universe: home, family, work, well -being, or

entertainment. 20% of our shops will be under the Smart Store concept in France and in

Europe by 2018. Our shops will also be fully integrated in a unified digital -physical journey,

with the possibility via digital to locate shops, to make an appointment online, to check the

availability of a product or even receive customised offers.

Among these Smart Store shops, some will be even more spectacular: the megastores. True

standard bearers of Orange in the territories, these megastores will have an adapted space

to test the products and services, discover our innovations, benefit from customised advice

in all the universes which are important for the customers. We will open 40 megastores in

France by 2018. The first ones will open in 2016.

Orange is a universal brand. It is addressed to everyone, with a proposal tailored to each

one. However, we are well aware that some customers expect a special level of service , and

are ready to pay for it. Two examples among others. They want a premium installation at

home of their Internet access with guaranteed time slots, but also of their domestic network

with verification of the Wi-Fi coverage in all rooms. They want to control the connection of

all their equipment, and install home automation systems such as Homelive, and so on.

Those customers also expect a personalised welcome and privileged access to customer

advisers who are experts in digital, capable of handling their requests from start to finish, or

of remotely taking control of their terminal to resolve a configuration problem. Advisers able

to propose the immediate replacement of equipment if necessary, or to proactively notify

any malfunction of equipment we have detected thanks to Big Data solutions, and of course

provide the solution.

These are just a few examples of services that illustrate the level of attention we want to

offer our most demanding customers and which we are currently testing on the ground. For

these customers, in 2016 we will start launching “first” services in Europe, in France in

particular and in a first African country, Senegal.

Building a company model that is both digital and caring

In order to focus on our customers, listen to them, and be effective in meeting their

expectations, Orange must also give the keys to this success to its employees. This is the

third lever of Essentiels2020. We want to build an employer experience that is similar to the

customer experience. To do so, we want to build a new company model , that is both digital


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and caring. You should not oppose both bodes. Digital will be a progress only if we place the

human at the heart of it, both for our customers and our employees. To illustrate this

ambition, we have set the goal that 9 out of 10 of the Group's employees would recommend

Orange as an employer, as a great company to work for.

This ambition begins with a key issue: securing the skills the Group needs to succeed, with

growing needs in new professions, such as data scientists, for example. To do this, we will

first rely on high-quality and digitalised internal training. Therefore in 2018, 50% of the

training of our employees will take place via a digital training platform.

We will also develop new digital modes of operation and organisation, more agile and more

collaborative, contributing to the quality of life at work. We will apply the same principles as

for our customers: innovate by simplifying and digitalising.

Our employees are the best ambassadors of Orange. To provide the best experience for our

customers, they must have access to simple and effective tools, in particular for in-store

advisers and sellers.

Finally, there is a value within Orange which is dear to my heart and which we must

constantly encourage. This value is commitment. We will strengthen our managerial culture

of trust and responsibility to provide the means for our employees to go the extra mile,

which makes all the difference for the customer.

Another way to develop the commitment and the participation of employees is to promote

employee ownership. Employees currently represent 5% of the Group's capital . Our ambition

is to aim towards 10% of employee shareholding in the long term. I believe that it is thanks

to the commitment of its employees that Orange will succeed in digitalisation.

Supporting the transformation of business customers

Our business customers are familiar with all these transformations, and our role is to

accompany them. This is the challenge of the fourth lever of Essentiels2020. The "digital

revolution" transforms the lives of businesses. It helps them innovate more. It pushes them

to change their processes, their customer relationship, the modes of work and the tools of

their employees.

This transformation is the bearer of opportunities, efficiency and growth. It is beneficial as

far as necessary. But it still remains a major upheaval for businesses, who need to be

accompanied in these new digital modes.

Of course, we must offer our business customers the right connectivity at the right time,

wherever they are. We should give them the best of our fixed and mobile broadband

networks by incorporating solutions to secure and guarantee recovery time. But our role, at

Orange, is no longer only to be a simple provider of connectivity. We must be the trusted

partner of the digital transformation of businesses, in all its components, in complete

security, and with an exemplary customer experience.

We have therefore set ourselves a simple goal: to increase the share of IT services by 10

points in the Orange Business Services income mix by 2020. To achieve this, we must listen

to the needs of our business customers, and the specificities of each industry, their trades,

their processes, their specific constraints in terms of security. We must have tailored

solutions for every business, from SMEs to multinationals.


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In this business activity, we have to focus on 4 main areas in addition to connectivity. Firstly,

in direct line with our historical business as a provider of connectivity, we must provide

digital solutions for the work tools of employees who become more mobile, more connected

and work in a more collaborative way.

The establishment of mobile workstations like tablets and smartphones, whether for

salespersons, technicians, or managers is a growing need for businesses. Previously reserved

for a few managers, these tools have become essentia l for the effectiveness of employees on

the ground or in points of sale, with a new requirement: connection to the business

applications of these employees. For example, Orange accompanied a major household

appliance retailer for the entry of the digital in its stores, by equipping the sales staff with

connected tables, with customised tools according to the needs of each employee. We want

to become a leader in the integration of mobility in the workstation.

The second objective is the improvement of business processes, in particular through

applications and connected objects, which open up new possibilities for businesses. Our

integration know-how will build on our platforms of communicating objects and our data

analysis expertise. Our business customers will be able to benefit from connectivity

solutions, in particular M2M or services and platforms linked to the Internet of things to

collect, store and integrate data from these objects in their business applications.

We are therefore becoming an operator of data, which we make completely anonymous

before rendering it available and secure to third parties, all through an API system .

This leads us to the third area: the provision of private and hybrid cloud services for the

multinationals, and to be a leader in this field in France. The Cloud infrastructure is a key

enabler to provide agility and flexibility to businesses. It is also an area in which companies

need trusted partners to manage their most sensitive data in a secure manner, and with a

very high level of reliability.

Finally, the last business axis, a subject which is an issue of growing importance for

businesses, security in the digital world is cyber-defence. No business would consider leaving

a warehouse in which it stores valuable goods unprotected. The same applies for the digital

world. What is more valuable to a business than its customer data, its website, its tools for

taking orders or customer management, or even its strategic data?

With the takeover of Atheos and the creation of Orange Cyberdefence, the Group is now well

equipped to help other businesses to protect themselves from these new threats, and to

become a global player in the security of multinationals and the leader of cyberdefence in

France.

Diversifying by capitalising on our assets

The trust placed in Orange by our customers also pushes us to meet new expectations. This is

the 5th and final lever of our Essentiels2020 plan: diversification – diversify by capitalising on

our assets. This is not about going off on an adventure to explore areas far from our bases.

On the contrary, we have decided to focus on a very small number of areas in which we can

capitalise on our assets, and in which our customers consider us to be legitimate.

These new playing fields are part of our future growth relays. We have identified connected

objects and mobile finance as the two major transformations in the daily lives of our

customers on which we believe we can provide added value to our customers and create

value. Because these services have many synergies with our main assets: our relationship


12

with our customers, our distribution power, both physical and digital, our networks, our

international presence, our capacity for innovation, the strength of our brand and the values

of trust and security it conveys to our customers

That is why we have set ourselves an ambitious goal for these new activities: to exceed €1

billion in turnover in 2018. These new activities will also benefit from the enriched

connectivity that we are going to propose. For example, the latency time of the fibre is

particularly adapted to connected objects, which must react almost instantly t o commands.

Connectivity is in a way the oxygen of these objects.

The ecosystem of connected objects will generate new positioning and business

opportunities. We want to be present across the entire value chain according to the types of

objects, with the exception of the manufacture of these objects, in particular with the

distribution of objects to enrich our access offers, capitalising on our network of shops to

present these new objects and accompany our customers as a digital coach. The provision of

value-added services around these objects, in particular in the area of health and well -being,

or even in that of the connected home. The success of the beginning of the Homelive offer in

France with more than 10,000 customers a few weeks after it was launched, encourages us

to continue in this direction and to further enrich our services on our various markets in

Europe as of 2015. This ecosystem will continue to expand thanks to a platform of data

derived from these connected objects open to partners who wil l enrich our customer offers.

The second axis of diversification is mobile finance. Our customers expect to be able to

perform an increasing number of transactions on their mobile, in a simple and fluid manner.

Orange Money, in Africa, and more recently Orange Finanse, in Poland, confirm our

legitimacy in this activity.

The financial services contain 3 separate universes. First, in Africa and the Middle East, we

have a money transfer and payment offer in Orange Money. The service is very successful

with 13 million users today. We are aiming for 30 million users in 2018. Second, in Europe we

have 2 different universes. First, the payment universe, which we are part of with Orange

Cash and contactless payment via the NFC technology. Second, the universe of the mobile

bank, which offers significant growth opportunities and on which we will focus our efforts in

Europe. Our ambition is to launch a wider offer of mobile financial services on our 3 biggest

European markets by 2018. We have Poland, of course, where we have launched the offer

with a promising success. And we are also going to launch this in France and Spain, before

2018.

To support these new services, we will continue to rely on innovation, internally but also by

pursuing our Open Innovation logic. By 2020, our ambition is to have accompanied 500 start -

ups in the world, through one of the Group's open innovation programmes, in a very

operational logic which focuses on the rapid creation of commercial partnerships, or even

capitalistic in some cases.

Via our Orange FAB start-up accelerator, we have already identified some promising projects.

For example, we have acquired a stake in Fenix, a start -up accompanied from the outset and

which designs and manufactures solar batteries to recharge mobiles in a reas where there is

no electrical network. We also have Afrimarket.

External investment is increasingly used as a strategic lever, in particular to anticipate

disruptive innovations, to ensure the settling of a company into the ecosystem and to

contribute to industrial development. In order to go even further and be more responsive,

we have just created our corporate investment fund, Orange Digital Venture. Orange is thus


13

strengthening its links with the digital ecosystem in order to be closer to technolog ical

breakthroughs and participate in the emergence of the digital services of tomorrow.

New identity of our brand

In a moment, I will hand over to Ramon Fernandez who will present the financial modalities

of this strategic plan. But before that, I would like to present the new identity of the Orange

brand that we are launching today. A new identity focused on customer benefits and which

reinforces and accompanies the Essentiels2020 plan.

The role of Orange, our mission, is to "always be in touch to connect what’s essential in your

life". We decided, a few months ago, to redesign our brand to make it even more responsive

to our customers. The Orange brand is very strong. It is envied by our competitors and

trusted by our customers. The idea therefore was not to change the brand. But we want to

make sure that our visual identity evolves by incorporating flexibility and dynamism, showing

that we are able to really respond to the customer and always offer more services.

Let's look at this in a few images now.

[Video presentation.]

As you can see, all our activities are focused on customer usage, which is a definite change

for us. We will have achieved our ambition when technology becomes invisible and its use

transparent, as instinctive as our emotions, as rapid as our thought, as fluid as our

movements. When we can surprise our customers by customised and unexpected attention.

I am now going to give the floor to Ramon, who will provide the details of our investment

rationale. He will speak about the financials of our strategy. You will see that value creation

is at the heart of this strategy.

Thank you for your attention.


14

Financial Presentation

Ramon Fernandez Deputy Chief Executive Officer, Chief Financial and Strategy Officer

Hello everyone. Stéphane has just presented our operational ambitions and our strategic

priority. I am now going to speak about our financial model and our financial balances and

key facts and figures. The transition we are going to experience in 2015-2018 will involve an

unprecedented technological transition. The idea is to build a new network model, with a

new fixed local loop that uses fibre technology, which will replace the local copper loop.

In our sector, we are accustomed to dealing with the succession and overlap of techn ological

generations in mobile, as each one (2G, 3G, 4G and soon 5G) has a life span of around 10

years. As for each generation leap that calls for a substantial initial investment, with

temporary pressure on cash-flow generation, we will know when the time is right to invest,

and at the right quantities in the new generation. We shall therefore efficiently manage this

transition.

The singularity of the period 2015-2018 is that Orange will lead a major transition on the

fixed networks, and will invest in a new generation of fibre networks, with a lifespan of

several decades. These changes are a fantastic opportunity for Orange to make a difference.

Our ability to anticipate, execute and finance these changes is what makes us stand out from

the competition. We will take advantage of that. With the best networks and a service

portfolio that is broader and broader, with our presence on all the segments of the market,

we are going to offer this incomparable customer experience that Stéphane just described to

you, and therefore return to the path of growth.

Investment Programme

Our investments will be the engine of this differentiation. Within our investments, which will

reach a peak of slightly more than 16% of the turnover in 2017, over €15 billion will be

invested in our networks over the period 2015-2018, with priority given to high speed

broadband.

Let me begin with fixed very high broadband and fibre. Approximately one-third of the €15

billion of network investments, i.e. €4.5 billion, will be allocated to th e deployment of fibre.

Let us take the example of France, where this change in the business model is particularly

marked. But the same also holds true in Spain and Poland. In France, our goal is to make

eligible for FTTH the 6 million households in the very dense areas by 2018, and 14 million

households in the less dense areas by 2022, 6 million of which by 2018, with an acceleration

of the coverage in cabled areas in the next 18 months. Our dynamism in FTTH has also

enabled, for the first time in 2014, the total number of fibre customers in France to exceed

that of >100 mb/s VHBB cable customers. In low density areas, the ramp up in broadband will

involve a mix between fibre, copper with VDSL, and satellite solutions.

In this network construction phase, our FTTH investments will be in high growth with

network deployment Capex (excluding customer connections) reaching a peak in 2017 and

then gradually decrease. At the same time, a growing share of our investments, i.e. more

than 40% in 2018 and 60% in 2022, will be dedicated to customer connections. The Capex is


15

fully variable and will only be committed when our customers subscribe to our offers and will

be partly billed to other operators in the event of switches to the competition, as provided

by the regulations.

Such an investment creates value because it allows us to respond quickly to the ever -growing

needs of bandwidth and reveals new usages. Based on our strengths in network expertise,

and the resources we have to finance this industrial transition, we are shifting the

competition field from copper to fibre.

This should lead our competitors to invest via co-financing, in order to best respond to

demand. To have a good return on the capital invested, it should reverse the deflationary

trends of recent years on prices.

Above all, fibre is a driver for growth in the turnover. In retail, fibre and the services it

provides are a tool for the conquest and loyalty of high-value customers. We associate it with

content services through our renewed TV offer. It helps us keep a connection with the client.

With our infrastructure we provide the customer with an attractive and fluid media

environment.

With our efforts of investments in buildings and the quality of our services, we are already

seeing benefits in terms of conquest, ARPU and loyalty.

We are now seeing a re-conquest of several percentage points in our market share in fibre -

equipped buildings in very dense areas. In the less dense areas, beyond the conquest of new

customers, the migration from copper to fibre contributed to defending our market share.

With respect to revenues, we are enjoying a growth in broadband ARPU thanks to a

favourable mix of premium offers, a price difference compared to ADSL on most of our

offers, and a higher consumption of content.

Today, a fibre customer brings an ARPU that is, on average, €5 per month higher compared

to an ADSL customer, and this gap will continue to increase to reach €7 by 2018 . Finally, we

note greater loyalty among fibre customers with a strong appetite for con vergent offers. Our

objective is to have over 60% of our broadband base on convergent offers in 2018, with a

positive crossover impact on our Mobile business.

Fibre will also allow us, in the area of Wholesale, to sustain our network operator b usiness

with the following scheme. During the network construction phase, when we ramp up

investments, wholesale income will grow thanks to the revenue from co-financing the fibre

as well as that of copper unbundling, for as long as the customer does not switch to fibre. In

the long term, the income from the unbundling of copper will be replaced by a recurring

fibre income, certainly lower but related to lower invested capital, as it is co-financed. This

lower income should also be considered against the major gains on network operating costs

per customer as compared to copper, down by around 75%. In addition, the possible

implementation of the Champsaur Report could stimulate investment by all players and

promote the transition from copper to fibre.

That is why fibre will be a major asset for Orange in the creation of value.

This chart illustrates the profitability of fibre, with a favourable gap between the internal

profitability rate and the weighted average cost of capital. Each fibre customer won means

more loyalty, more convergence and more uses, and therefore more ARPU. Moreover, this

profitability is stronger at the outset of deployment, and deployment occurs in very dense

areas first. Due to that higher density, individual connection costs are lowest. It is in these


16

very dense areas that the virtuous effect of re-conquest is the most keenly felt because our

market share is lower than the national average.

Finally, the regulatory framework in France provides a difference in rates of return above the

cost of capital in favour of the first investor, in order to incentivise investment and push the

industry to perform the migration towards fibre by an effect of emulation. Therefore, and

even if this gap has a tendency to decrease over the very long term, the investments in fibre

will contribute positively to the operational cash flow in a few years.

When it comes to mobile very high speed broadband, we will continue our investments in

the 4G, while preparing for the next generation, 5G. Over the period, €5 billion will be

dedicated to mobile access networks, including €1.5 billion devoted to the 4G, with a gradual

drop in Europe where major investments are nearing completion, and a rise in AMEA.

Our mobile Capex will be targeted on the satisfaction of our customers with, for example,

the goal of reaching 100% 4G coverage in 2018 in the French TGVs, and to cover all metros

and all the major highways with 3G or 4G coverage. These €5 billion will be supplemented by

purchases and renewals of frequencies, always with the aim of offering more bandwidth,

more speed and more services to our customers. Overall, we believe that the forthcoming

effort on frequencies will be less than the €2.8 billion paid over the 2011 -2014 period.

In total, our investment efforts, slightly up as compared to the previous period, will allow us

to offer connectivity of excellent quality. This will provide new services that broaden the

scope of our income in a series of concentric circles.

In this respect, we already have an integrated offer of content with our accesses: TV on fibre,

games and music on mobile, and a fluid shared Cloud space on fixed and mobile. We will

therefore be well equipped to resist the competition from traditional players and the OTT s.

Sales Growth

In order to once again achieve sustainable growth, our Essentiels2020 plan is based on this

investment effort. We will optimise our resources with a gradually changing mix of activity

that I will now present. From 2015 to 2018, the evolution of our sales will result from the

combination of 4 different factors.

First, the decline in legacy activities:

- with the unavoidable drop in voice over RTC income. This will lead to the end of the

marketing of these services, which we contemplate from the end of 2017 in France .

At that point, Orange will only market new generation voice services in France,

exclusively on IP. We will also initiate this process in 5 other countries.

- There will also be a decrease in national roaming in France from 2015 and its

virtually total stoppage in 2018.

- Finally, there will be a reduction in Enterprise connectivity income.

The second factor is the maturity of our activities such as mobile voice or ADSL, for which the

differentiation by the customer experience will allow us to bolster value. These activities also

constitute the foundation on which we will develop our growth activity, capitalising on our

customer base.


17

Third, the growth in very high speed broadband, which will be bolstered by a strong

acceleration in investment, in particular in fixed and in 4G.

Fourth, our new activities: mobile financial services and connected objects. These will be

developed with the help of the clear synergies between our core business and these relays

for growth. Our ambition is to take a leading position on these new services, r elying in

particular on the direct contact we have with the 244 million customers who already trust us,

and whose needs we are familiar with.

In the field of mobile finance, the prospects for growth are significant. In Africa, mobile

penetration is significantly higher than the banking penetration in most countries. Orange

now has a customer base of nearly 100 million people to propose these new services to. We

are already familiar with 4 of the value-creating levers of Orange Money:

- It is a new source of revenues: In Ivory Coast, Orange Money generates €2 of

additional ARPU per active user.

- It is a tool to foster loyalty: again in Ivory Coast, Orange Money customers have a

churn 3 times lower than the other customers.

- It is a differentiating service for customer acquisition.

- And, finally, the costs of recharging prepaid phone credits are 4 to 10 times lower

when the customer recharges via Orange Money.

In the Europe region, capitalising on the success enjoyed in the AMEA region, we are

launching Orange Money in Romania this year. And on our 3 largest European markets, our

ambition is to launch enriched mobile finance offers in partnership with players offering us

banking or digital know-how, as we have already successfully implemented in Poland. At

Group level, mobile finance will be a significant contributor to our growth in revenues, with a

sales objective of €400 million in 2018, that is, 10 times more than in 2014.

As Stéphane mentioned, Orange also wants to be a major player in the ecosystem of

connected objects in Europe. I will not go over the details, but these new services are

essential for our future, and will have even greater impact beyond the horizon of the plan.

Their operating margin rate is lower than that of our traditional connectivity a ctivities, but

these services contribute to sales and EBITDA, and require lower investments.

Connected objects and M2M services will contribute to the growth of our revenues, with

nearly €600 million at Group level over the plan period. On the whole, our ambition is to

achieve sales of €1 billion with these new services by 2018, thereby contributing to a return

to growth in our revenues.

In 2018, our Group sales will be higher than in of 2014. All that I am saying is, of course, on a

like for like scope.

Cost Reduction

Orange will also continue to curtail its costs. The Chrysalid programme has allowed us to

achieve the €3 billion in gross savings one year ahead of time for the period 2011-2014.

Based on our experience, our ambition is to generate €3 billion in additional gross savings,

the bulk of which will be on operating costs.


18

We will extend the existing programmes. I am thinking in particular of our mobile

infrastructure sharing initiatives – over 50% of all our sites were already shared at the end of

2014 – or for fixed infrastructure, as in Spain with the fibre. We will also continue the

pooling of platforms between our countries, to reduce customer intervention costs, and to

renegotiate the costs of international network access, as was the case in North America.

We are also taking new initiatives to increase our efficiency through two areas of priority.

First, in connection with our ambition to offer an unmatched customer experience, we will

take a new step in the digitalisation of our processes and customer interactions. For

example, I can mention the increase in the number of online sales transactions, a significant

increase in self-care which allows for a significant cut in call rates, or the digitalisation of

sales processes in the B2B relationship. We will optimise the meshing of sales points with

larger shops that better suit the customer experience. This is central ambition for

Essentiels2020.

Secondly, we will accelerate simplification in all areas, in particular in our offers, services and

information systems. As an example, I can mention the rationalisation of the portfolio of

offerings in all our European regions; the virtualisation of servers; the de-commissioning of

older network technologies, enabled by the migration to the All-IPCC; the pooling of the OBS

network with that of Orange Spain, which will reduce access and backbone costs ; the

simplification of the back-office activities that we have initiated in Poland; and local

initiatives aimed at reducing energy costs.

All these initiatives of the Chrysalid programme generate further cost reductions. From an

analytical standpoint, things will change as follows.

First, direct costs will remain under control. Part of these costs will increase in connection

with the rise in sales. Another portion will drop, notably because of the transformation

projects I just mentioned. These costs will change in connection with the change in the mix,

in particular the growth in distribution activities linked to sales of handsets and connected

objects; the development of content in Europe, in particular with the increased penetration

of convergent offers incorporating TV; the increase in our customer base in AMEA; and the

evolution of OBS activities with the shift to IT and services. These effects will be offset in part

by the reduction of commissions through the rationalisation of indirect distribution channels

in Europe.

Our indirect costs will continue to decline. Payroll over sales will drop by 1.6 points in 2018,

at Group level and in France. Our employment policy will allow us to adjust our resources to

business needs while respecting the social contract. This transformation in France will

involve over 25,000 retirements by 2020, but of course we will hire from outside to bring in

new expertise. In 2015 and 2016, we will recruit 1,900 people each year.

Outside of France, we will combine our headcount efforts with salary moderation policies

that will nevertheless take into account inflation, in particular in the AMEA region. Finally, to

improve our effectiveness, we will develop digital tools specific to the HR function that will

ensure a better orientation of skills.

Excluding payroll, indirect costs will also decline. In France, the decline in absolute value will

be 10 %. At the Group level, by 2018, there will be a further drop in advertising expenses,

overheads, and real estate expenses, excluding AMEA. In a context of development of

networks and of continuous improvement of quality, the network costs will be stable at

Group level.


19

All of these effects will make it possible to improve the indirect costs-sales ratio by 2 points

over the period 2014-2018 and even by 2.4 points in France. Combined with the margin

profile of our new activities, this will enable us to regain the growth of our EBITDA.

Therefore, the 2018 EBITDA will be higher than that of 2014, following a trough in 2015.

Let us now see how the various segments will change.

In France, RTC voice will continue to drop and the income from the roaming contract with

Iliad will gradually decrease to virtually disappear as of 2018. These decreases will be

partially offset by several growth relays, which will, throughout the market range, help fuel

the increase in the mobile installed base and broadband ARPU, with the ramp up of fibre

capabilities, broadband and wholesale sales. Growth will also be bolstered by 4G and new

services. And Orange France will continue its efforts to decrease indirect costs.

Therefore, despite the decline in RTC voice and national roaming, sales should be flat from

2017 and then grow. The margin rate will be higher than that of 2014 each year, and in value

terms, EBITDA will be stable in 2015 and then grow through cost control, if you exclude the

impact of roaming.

In Europe, our strategy to re-conquer households tailored to each market will enable a

return to growth in sales and EBITDA. We will capture a larger share of the expenditure of

households and businesses through our convergent offers, which we will enrich with new

services. We will also contribute to the consolidation of infrastructure between operators.

Our ambition is to have access to an infrastructure everywhere in Europe, with organic

deployment such as in Poland, Spain and Slovakia, with access to third-party infrastructure

through partnerships or regulations, such as in Belgium and, in certain cases, with targeted

M&A operations.

As you know, Orange actively participates in the intra-market consolidation with the

acquisition of Jazztel in Spain, and the disposal of EE to British Telecom.

In Europe, we are expecting a return to a growth in sales and EBITDA from 2016. The 2018

EBITDA will be higher than its 2014 level.

In Africa and the Middle East – a growth region – the whole economy of the region is set to

make progress, even if occasional difficulties can still arise. GDP growth is expected to reach

over 5% per annum. The population will reach almost 1 billion people in 2018. Purchasing

power and per capita income will also rise. These are essential elements for the success of

our activities, with the deployment of 4G and Orange Money, which should see its revenues

multiplied by 4 over the period.

In terms of costs, we will continue with the adaptation of our industrial model by

strengthening the pooling of resources, and by sharing infrastructure (on an active or passive

basis). We will also pool network supervision and other activities such as the Orange Serv ices

Grouping, based in Abidjan in Ivory Coast.

Finally, the creation of a holding company bringing together all of our operations in the area

as of this year will allow us to be poised to grow in the region. AMEA will experience a

growth in sales of approximately 20% from 2014 to 2018. EBITDA growth should be even

greater than that.

At OBS, we will see a gradual recovery and a change in the business model. OBS will take

advantage of the increase in cyber-defence and Cloud, two supports essential to the IT and

Service Integration branch, the weight of which in OBS sales will increase by 10 points by


20

2020. This business will certainly have a lower EBITDA margin than that of connectivity

services, but also requires less investment. OBS sales will stabilise from 2016 and EBITDA

from 2017.

Financial Position

I would like to end with a few words on our financial situation, which will remain robust in a

situation where we still emphasise dynamic management of our portfolio while paying close

attention to our balance sheet. We could consider some consolidation deals, notably in

market transactions. We could also step out from some countries where that is rational, such

as Uganda as recently occurred.

The Group intends to continue to reduce its debt – to deleverage prior to disposal of our

acquisitions. The combination of the Jazztel and EE transactions is part of this deleveraging

trend. This leads us to reaffirm our goal of net debt over EBITDA, which is 2 in the medium

term, compatible with the payment of a dividend of at least €0.60 over the period, without

excluding a possible increase in connection with the return to growth in EBITDA.

I am now going to hand over to Stéphane, who will conclude on our commitments and

provide his conclusion.


21

Essentiels2020


Thank you, Ramon. I would like to conclude by presenting the general framework, the major

indicators we want to follow and which will allow us to assess the achieveme nt of this

Essentiels2020 plan.

The first two indicators are global and synthetic indicators on the central ambition of

Essentiels2020 on the digital experience of our customers. First, an indicator of leadership in

customer recommendation, reflected by the "Net Promoter Score" or NPS. This commonly

used indicator encompasses all the levers of the plan. We want to be N°1 in NPS with 3 out of

4 customers by 2018 and to remain so. This is a particularly challenging objective to reach,

and to maintain over time, in a highly competitive context.

Then an indicator that measures the power of the Orange brand: the Brand Power Index. We

are aiming for a progression of this indicator by 2018, under the effect in particular of our

new brand identity and especially of the proof we will give our customers concerning the

improvement of their digital experience.

For the rest, we have chosen for each lever the indicator that we consider to be the most

meaningful in relation to our ambition. First, for the lever on enriched connectivity, the

indicator we have selected is an indicator of excellence of network performance, which is an

essential component of the experience of our customers and on which our customers'

expectations are high. We will measure this indicator by the evolution of the average data

flow of our customers. We have set ourselves an ambitious goal to at least triple the average

data flow of our customers for our fixed and mobile networks in all our countries by 2018

Second, for the lever on the customer relationship, we have chosen an indicator that reflects

the improvement of the experience of our customers in their digital interactions with

Orange. It is the rate of digitalisation via the web or applications dedicated to our customers,

of all interactions with our customers. We are aiming for a rate of digital isation of 50% by

2018, as compared to a little over 30% currently.

Third, for the lever on the digital and caring company model, we have chosen an indicator

that is symmetrical to the one we have chosen for our customers, based on

recommendation. Our goal for 2018 is ambitious. Our aim is that 9 out of 10 employees

recommend Orange as an employer.

Fourth, for the lever on the Business market, we have chosen to measure the success of the

transformation of the business model of our Business activity towards services. Our aim is to

increase the share of IT services by 10 percentage points in the OBS income mix by 2020

Finally, for the last lever, the indicator we have selected will allow us to measure the success

of our diversification in new services, with connected object and finance. Our objective is

that these new services contribute for over $1 billion to the Group's turnover.

These strategic objectives must also be reflected on a financial level. Our fina ncial objectives

are as follows. First, our 2018 turnover will be higher than our 2014 turnover, with a low

point reached in 2016. That means that we aim to return to growth in our revenues. Second,


22

our 2018 EBITDA will be higher than that of 2014, with a low point in 2015. That low point

corresponds to the range of €11.9-12.1 billion. That means that our profitability and EBITDA

generation of the Group will be back to growth again.

Third, we will maintain a solid balance sheet, with a net debt to EBITDA ratio of 2 in the

medium term. Fourth, concerning the dividend, we will pay a dividend of at least €0.60 in the

period, without excluding a possible increase in connection with the return to growth in the

EBITDA.

I hope that you have understood that the ambition of Orange is to offer everyone a unique

customer experience each day, by designing the digital services that will allow them to

benefit from what's essential, in complete confidence.

[Video presentation.]


23

Q&A Session Stéphane Richard

I suggest we open up our Q&A Session, facilitated by Patrice Lambert.

From the floor, StéphaneBeyazian

I have 2 questions. First, regarding mobile ARPU in France, what have you scheduled for the

time being? What about the monetisation capacity of 4G? Some statements were made by

one of your competitors talking about aggressiveness on the mobile market. What have you

budgeted in your plan? Second, regarding fibre in France, what is your capacity to gain

market share thanks to fibre? What is your experience in the areas you have already

equipped fibre in terms of re-conquest of market share?

Delphine Ernotte Cunci

On mobile revenues, our plan does not take on board possible consolidation on the French

market. It is cautious from that point of view. Conversely, it does not take into account

another sudden disruption of mobile prices in France. However, we carry on the strategy we

have already implemented in recent years – being competitive for market entry (with Sosh).

We have 2.5 billion Sosh customers and that will have double-digit growth each year. Second,

we will differentiate through the network and the customer relationship and the

monetisation of the quality of our network. We expect to conquer an additional 1 million

customers for the upper market at the end of 2018 for the very mobile market. All of this in

order to continue to be the leader on the value market share and to ensure that this share

increases during the plan.

Regarding fibre, we aim to gain market share thanks to fibre. We see that where we have

deployed fibre and were the first to do so we gain market share (7 points immediately). Then

there is a kind of erosion. But for those buildings where we are the first to deploy fibre, we

are gaining market share. For the period of the plan, as for mobile, we want to strengthen

our position on the top market and on broadband. We want to conquer an additional 1

million customers on this broadband market, especially through fibre. We want to stabilise

our volume market share while being stronger for the upper market than what we are today.

Ariel Gomez

I have 2 questions. First, you mentioned a 50% increase on the budget for household

content. Is that an increase in ARPU? Except for the delta mentioned by Ramon Fernandez,

that is, to move from €5 to €7. Is that an increase with a constant axis? Second, the

promotion of employee share ownership from 5% to 10%. How will that occur? Will you

increase capital?

Stéphane Richard

For the 50% figure, the objective is to increase entertainment revenues in France. We would

like to achieve this through video mainly. You know that we are N°1 for video on demand in

France. With fibre we have a very strong increase in this content. There is also gaming. We

have revisited the gaming offering, enriching the content. Especially with the arrival of very

high broadband, this generates an additional ARPU and much higher consumption in terms of

content. We are talking about fixed content. Those trends are already to be observed. We


24

already have double-digit growth of these revenues. We are talking about overall revenue

reflected in the rise of ARPU.

Ramon Fernandez

Regarding employee share ownership, we have a clear objective to move from 5% today to

10%. We will set up recurring actions from next year onwards to achieve that objective. As to

the exact practicalities, we will talk about this later on. Issuing new shares could be a feasible

scenario. There is an agreement by the State on one outlook. You know that the offer

reserved to employees is no longer there. We are now back to a conventional system for

other groups for employee share ownership.

Nicholas, HSBC

I have a question on fibre in France, where your regulatory framework is very specific. There

is flexibility for competitors. In your business plan, what are your assumptions for 2020?

What about the risk that fibre entails on infrastructure?

Pierre Louette

Regarding the regulatory framework for fibre, we are lucky to have one. In some countries,

such as Spain, we do not have a detailed regulatory framework. In Spain, this is done in an

undisciplined manner and it is not easy to be a competitor in Spain. In France, the framework

favours risk taking and investment. Some people will be favoured if they move quickly to co -

funding. In our fibre deployment plan, in the French projections, we have €4 billion of co -

funding that corresponds to the investments intents initially expressed and even

strengthened by the new shareholders.

Frédéric, Merril Lynch

I have a question on the new €3 billion cost saving plan you announced. If I associate that

with your increased revenue objective for 2018 versus 2014, we can expect a positive impact

on EBITDA. Would you please explain why we do not find part of this impact in the EBITDA?

Ramon Fernandez

If you watch Orange very closely, you know that Chrysalid shows growth in cost reductions:

€3 billion of Chrysalid led to a net cost reduction of €900 million in 2013 and over €700

million in 2014. There is therefore some gymnastics involved in moving from one to the

other. That is quite significant. We will continue with the same level of ambition for our

operational efficiency programmes. These are not just cost saving programmes but will

introduce more efficiency and this will be translated on direct and indirect costs through this

maintained effort. I gave you the indirect costs related to revenues. For direct costs, it is

more difficult to tell. With all these new activities you have some support costs. With the

convergence, we offer more services on our TV channels. In that case, we will have to pay a

bit more for content. The operations in Africa will take place to a large extent with a notable

rise in revenues and will go along with an increase in direct costs.

We know that it is very important to work on our costs base. In the last 2 years, we showed

that Orange was able to work and reduce its costs. We will continue along that line.

However, if we are able to develop new businesses that generate EBITDA and revenues, it is

not because the costs related to those activities will increase that we will prevent ourselves

from developing that.


25

From the floor

We are interested in content. Fibre is a wonderful instrument for developing content, and

Free has announced a compatible box. Has Orange any announcements to make on the 4K

compatible module? Second, is there a deadline for the launch in France of the Chromecast

stick? Will there be more advanced features than on the standard stick in the market?

Mari-Noëlle Jego-Laveissiere

Regarding 4K, we have limited content and do not have many TVs that allow us to ben efit

from 4K. 4K is part of the Orange roadmap and it will be in 2016 probably once we have

enough available content and available TV sets. For the TV stick, we already have one in

Romania and will continue with this offer in France and other territories in the months to

come. I cannot be more specific than that.

Stéphane Richard

4K is of great interest. However, you know that the amount of available content is limited. It

is a kind of communications operation. When we announce innovation, we want to ensur e

that it is really available for our users. We are perfectly in line, especially for the next box, to

be able to receive all these contents.

Mari-Noëlle Jego-Laveissiere

Netflix has some 4K content. Less than 1% of TV sets are equipped with 4K. It is the refore a

niche for the time being, but one that we closely monitor. We are interested in 4K

nevertheless. You need a high throughput and this new usage is good for fibre. Among all

operators we are the most interested in promoting the circulation of 4K.

Vincent Maulay, ODDO

Regarding cost reduction, the €100 million guidance on indirect costs is an implicit guidance.

What about indirect costs? You have reduced costs already and can we expect an increase

because digitisation does not allow the reduction of physical costs. What about cross-border

synergies? You have shown some preliminary interest in Telecom Italia. At the Barcelona

Congress, I saw that equipment manufacturers are not as bullish. Would you comment on

that?

Ramon Fernandez

This type of exercise is always a bit sensitive. You have found €100 million but it is not always

possible to find a precise figure. We say the revenues for 2018 will be above that of 2014 but

we do not specify where revenues will be in 3 years’ time. It is difficult to do that. We are

comfortable with saying that in 2018 we will be above the level of 2014. Stéphane even said

that the low point would be reached in 2016. However, to tell you the exact amount of

indirect costs in 2018 is difficult. For staff costs, there will be a contribution but it is far fro m

being the only one. In 2014, the reduction in staff expenses accounted for less than half of

the indirect costs. We therefore have an impact on all our costs lines. I said that in France we

will have 10% of indirect costs at the end of the plan, and all budget lines will be impacted.

We will continue in a very systematic way, paying attention to all processes and all lines of

costs – direct and indirect. In that way, we can strengthen our Group’s capacity and have this

margin at the end of the plan. Be reassured, our approach is a systematic one.


26

For the direct costs, you have several activities like mobile, financial services or content. This

will exert some pressure on direct costs. But this will be offset by other actions on

operational efficiency, pooling of networks and so on. All of that will help contain the

pressure. But it is a good pressure. It goes along with increasing revenues. We said that

EBITDA would be above 2014 levels in 2018, with a low point in 2015.

Stéphane Richard

Regarding your question on cross-border alliances and your question on direct and indirect

costs, in some countries, the drop in direct costs was linked to a change in the market model.

Indirect costs include the subsidy costs of terminals. We went from this model to the Spanish

model where Telefonica and Vodafone said they would no longer subsidise handsets. That

has an impact on direct costs. We are more cautious and that is not the way we see things.

We may be reducing costs linked to subsidisation of handsets but we believe there is still a

significant market segment on subsidised offers. It is not in our strategy or vision to migrate

towards a completely subsidy free model for handsets. Even in Spain, operators who

announced that they would no longer grant subsidies are re-injecting different types of

subsidies in the market.

We are not in favour of the disappearance of subsidised handsets. This will remain a part of

the market, and we want to manage that in a profitable way in terms of acquisition of

subscribers, especially for the mid- and upper-market. That is a priority for us.

Regarding the cross-border aspect, I confirm the non-existence of any possible discussions

whatsoever with the managers or shareholders of Telecom Italia. That is quite clear. With

Telecom Italia, as for other European operators, I have the opportunity to exchange my views

on the situation in Europe, on possible projects we may have here and there – but nothing

more. That question is a European matter. In the current fragmentation of the lan dscape,

with 28 regulators, it is not possible to have a single European telecoms area in terms of

spectrum, networks, Internet or roaming. It is therefore difficult to make projections. Maybe

one day in Europe we will achieve this unification of the land scape. In that case we can ask

this question again. With a fully inter-connected Internet network between the operators,

that would push towards greater consolidation. It is also a matter of size for sourcing, which

can weigh on this digital ecosystem. Today, there is no interest in cross-border consolidation.

It may be different in the future.

You mentioned the de-localisation of European datacentres. This is again a European matter

– it is not a national issue. Europeans do not want all their data going to US servers or

elsewhere. It is less of a problem for a French person to know that their personal data will be

on an Italian or British server. In Europe, there is a capacity to control the ownership of that

data. That is the issue. In the long-term, beyond 2020, we can discuss this matter again.

Laurent Calixte

You have probably seen Elise Musset’s show on the payment of dividends to shareholders.

The State is asking a lot of Orange’s dividends. Will the State decrease those demands or will

it keep asking for a high level of dividends as a fuel for the economy? How do you convince

various shareholders that dividends are OK but investing is also good because it is concerned

with the future?


27

Stéphane Richard

When we distributed €1.40 in dividend the price of the share was €8. Now, that we are

distributing €0.60, the price of the share is €15. The fundamentals that explain how the

market values a share is therefore not only based on the dividend issue. You have projects,

growth perspectives, outlooks, and all of these elements also count.

The State is not behaving differently from other shareholders. It participates in a company

and expects a return on its investment in a sector that, for the past 10 to 15 years, has not

had a great yield and profitability profile. That is inherent to the nature of our activities. We

have investment cycles, and we are in a good investment cycle today. The State, like any

other shareholder, expects from us that, given our cash flow, part of this should pay a return

on the capital it has invested in us.

The State is behaving like any other shareholder and does not have specific requirements. Of

course, it needs the dividend as any shareholder does. But contrary to urban legend, there is

no fundamental difference between the State as a shareholder and Orange’s other major

shareholders.

We want to find a balance between a return policy towards our shareholders that should be

attractive – we are an industry that requires capital – and our commitment to meet the

target. We are part of the standards of the industry here, with many different comparables.

At the same time, we want to be able to spend what is necessary to prepare our future. The

level of investment is extremely high in this company, and that is where the balance lies. I

am not in favour of a stop and go as far as dividends policy is concerned. We should not

create a feeling of insecurity about the payment of dividends. It is not a political debate even

though the social partners have their own analysis of things. We are talking about an

economic situation, and the responsibility of a company is that it has a consistent, long

lasting viewpoint vis-à-vis all its shareholders. That is why the subject of the remuneration of

capital is an important one. It is part of the different long-term choices we have made. We

want a fair remuneration policy vis-à-vis our shareholders and we believe that it is fair today.

Andrew Lee, Goldman Sachs

First, regarding the €1 billion in new service revenues you mentioned, they are from services

that have relatively nascent demands today. How have you sized the market that you are

going to be taking a share from? Which markets do you expect to get a majority of those

revenues from? Second, regarding the cost cutting of 10% in indirect costs in France, you

highlighted that it was hard to calculate exactly what absolute number that would be. Would

you talk about your delivery over the next couple of years of indirect cost reductions versus

the last couple of years? Should we expect a similar run rate? Is the guidance you have given

based on visibility you have today or is the cost cutting opportunity becoming harder? Should

we see the 10% as a base minimum?

Stéphane Richard

Your first question is about where are we going to find the revenues coming from the new

services – what I call diversification – from which markets and from which countries. Your

second question is about the rhythm of cost reductions.


28

Andrew Lee, Goldman Sachs

The first question is about how you size the market. These are relatively nascent services and

we have not seen much of that demand come through yet . Therefore, how have you got to

the €1 billion figure?

Ramon Fernandez

On the €1 billion additional revenues coming from these new services we have, we have

roughly €600 million coming from IOT and M2M and we have €400 million coming from

financial services. You have also seen that we were expecting that revenues coming from the

African market would be multiplied by 4. In 2014, we have roughly €50 million of revenues.

Looking at the Financial Services, you have 400 that is divided basically in 2 parts: half for

Africa/Middle East, and half for Europe, where we started operations in Poland last October

with quite a good rhythm now. That is the basic picture. It is both ambitious but at the same

time we already have a strong basis. It is interesting to see what is happening in Africa with

inter-operability, with new corridors between France and the West African market to be

opened. A lot is going to happen there.

Laurent Paillassot

In Europe, regarding the profit pool in which we are playing in retail banking, if you just take

2 countries (France and Spain) it is €47 billion of net banking product and €27 billion in Spain.

It is therefore a large profit pool in which we are about to play. In Poland, we have launched

in 6 months, and have 100,000 new customers on Orange Finanse. If you take the figures for

France, where we have a base of 27 million mobile customers and 10 million broadband

customers, we have a potential to grab a significant market share in mobile banking. To

complete on AMEA, as we said, a large potential for growth, which would come from the

number of users: 13 million to 30 million in 2018. We are also working on building new usage

across bill payments, with partnerships with retailers. We are also working on international

transfers. We will also build value by adding new services such as micro credit, insurance and

savings with partners. The potential is beyond the 2018 horizon because growth in financial

services takes time to build but is very stable over time. That is our strategy.

Pierre Louette

On the less creative, cost cutting side, there is a lot of hope to come in cost cutting and

transformation in this company. The performance over the past 5 years is quite significant,

and you have noticed it. We need to give a special retribution to France but all geographies

have contributed, and support staff also. In the indirect cost basis, where can we do more?

We have seen what happens with the number of personnel leaving the company: 25,000 will

walk away in the coming years. This has many consequences, even on the G&A side, which is

still costly in a Group like ours. The number of people leaving will reduce the number of

square metres we need, the number of cars we use, etc. Just for France, it was 25,000 cars in

the last years, and that is going to be decreasing.

You want to bear in mind that there is going to be a 20% reduction to 2018 in the G&A

intervention costs. Call centre costs: a 20% reduction. That is a big number. It is also because

of the way the pubic changes and the way the public interacts with us. Stéphane and Ramon

have described the electronic-CRM, which is also going to bring a lot of reductions.

Going to other indirect costs, the network is a continuous effort. In Africa, in Europe and all

the geographies, a lot of efforts have been done and they will continue. More than 50% of


29

our antennas are shared today, and that will be a growing number. Sometimes, the costs of

those materials are decreasing. There is another figure I can share – the number of handsets

that we buy. Over a period of 5-6 years we will see a decrease from 50 million units we were

buying to 25 million units. That tells a lot about the kind of money we spend in acquiring

those terminals.

There is more to come in all of those directions and there is a quite certainty that we will

reach our target.

Isabelle, IFP

Back to what the Wall Street Journal explained this weekend. They were talking about Daily

Motion and said you were going to enter exclusive negotiations with this Hong Kong partner.

You met him in November. Are you going in this direction? Are we talking about the same

amount you mentioned? If you could explain the financial participation of Daily Motion. They

are leaders in France but they are losing money and they are not yet profitable.

Stéphane Richard

The Wall Street thought they should mention these discussions we were having with PCCW.

What can I say about Daily Motion? First, the situation of the company. Daily Motion is

growing a lot (+30% per year). But in spite of this it is a small company compared to its main

competitor, YouTube. YouTube is 50 times bigger. Daily Motion is therefore not the leader in

France regarding the VOD market; YouTube is the leader. Dai ly Motion is a beautiful platform

and a great brand. It is N°2 in the sector but it is very small compared to their main

competitors. The challenge as shareholders of Daily Motion is to ensure that the gap does

not increase, and that Daily Motion thanks to its investments and its ability to monetise new

audiences remains in the race. They are lagging behind at the moment because of the

presence of YouTube.

Second, I do not think that the future of Daily Motion is French. Generally speaking,

economic patriotism in the Internet sector has no sense. Internet, by definition, is global. It

covers the whole planet. Thinking that we could have a French sanctuary, when you are

talking about Internet activities is meaningless. If you want to kill successful companies, let’s

go on like this. I am convinced that the future of Daily Motion is global, is international. The

share of its revenues in France is 20%.

Things are therefore not happening in France only and Daily Motion should not stay in its

present economic model. Daily Motion broadcasts videos online for free. The fact that they

are discovering new pools of viewers is interesting. That is what is of interest in our work

with PCCW, which is a powerful stakeholder in Asia. It can give us access to the Chinese

market. The main competitor, Daily Motion, faces serious problems in entering the Chinese

market. That is the present situation.

We have not signed an exclusivity agreement with PCCW. We are not negotiating in an

exclusive negotiation framework with PCCW. We want to work on other options. So far, the

idea is to keep the majority of the capital of Daily Motion if we sign, for example with PCCW.

PCCW would only be a minority shareholder, even if we sign with them. Therefore Daily

Motion will remain French. And we will ensure that decision-making processes remain in

France. But we do not want to kill the company, which is a good success even though it has

grown over the past 10 years without enough results. That is specific to Internet companies.

We would like to help Daily Motion grow further but we have to look outside France . We


30

need partners to reach new zones where growth perspectives are greater. We will not find

these in France.

From the floor, Dimitri Kallianiotis

I have 3 short questions. First, on the deployment of fibre you have ambitious objectives: 12

million households in 2018. How many of those households will be connected by Orange and

how many by others? The mobile sector in France: you said that in 2018 roaming should stop

with Iliad. Are you going to share networks as SFR and Bouygues are doing together ? Last, on

Africa and the holding you have created, what meaning will you give to this campaign?

Delphine Ernotte Cunci

The numbers given to you were the numbers of connected customers. Most of these

customers in the French market will be connected via Orange. I cannot give you a detailed

number but that is the deployment situation in France.

Stéphane Richard

Regarding roaming, we were clear that we do not expect any revenues from roaming a fter

2018. The contract stops in 2017 and we are not speculating here. Afterwards, there are 2

hypotheses. Either this roaming will go on and be extended, but that is not what we want.

But if that is the situation in 2 to 3 years, we will see. Again, we do not want this. We then

have the issue of sharing the networks. We like sharing networks. We do it a lot. Half the

radio sites of the Group are in network sharing situations, and we have good experience in

that field. Is this adapted to the Orange situation in France? I am not sure to be frank. In

France today we have a mobile sector that is shared by SFR and Bouygues. Orange has the

best network, the best coverage and the biggest network of sites. Then you have Free, which

has to buy the frequencies. Why should we share the exceptional assets we have with

another operator? The others will be free. We will not share the network with Bouygues and

SFR; the Competition Authorities would not allow us to do that and we do not want that

anyway.

We are therefore very open but at ease. But as of today I do not see the point for Orange to

share a network with another operator in France. We have our development projects,

investments, critical size and can make the investments we need to constantly improve the

quality. It is also a differentiating element for us. In France, it is not in our interests to take

this direction. That is not the starting point for us.

As to the African holding, I will ask Marc to provide the details.

Marc Rennard

Today, our participations are within 6 holdings in 5 different countries. The project is to

group our 23 participations before end June in one holding, that would be the property of

Orange at 100%. We want more visibility in AMEA. We are looking for more flexibility. In all

these African and Middle East countries we have 250 operators. So one day there will be

consolidation. That is highly probable. We want room for manoeuvre. We have no specific

projects at the moment. We are not looking for partners. But we would like to be ready j ust

in case.


31

From the floor, Stéphane Schlatter

I have 3 questions. You said that the convergence offers were very important for your

strategy in Europe. How will you implement this in countries where you have no fixed

infrastructures, like Romania and Belgium? Second, what about the return to growth in

Europe? How will you reach that objective given the difficult environment in Belgium and

Poland for Orange? Orange spends millions in socially responsible investments. What return

do you expect from that?

Gervais Pellisier

As to the deployment of convergence in Europe, we have organised operations in Spain, in

particular, but Spain is a synthesis of 3 different movements: organic developments,

partnerships with Vodafone, and an acquisition. We have another model in Belgium. Today,

there is not much on sale. Belgacom – I do not see how we could keep Mobistar and buy

Belgacom. That would be a different story all together. The only possibility we have in

Belgium is to break the duopoly of installation that exists today by asking the regulators to

break this duopoly. Between Belgium and Spain we have 2 different models.

Poland is closer to the French model. Here, we know what we are going to do, and we will do

that in Romania, in Slovakia, in Moldavia and Luxembourg. That is how we are going to build

our offer to access fixed networks and convergence.

When you are a mobile operator you work with individual customers. They choose something

in a shop and then take out a subscription. Selling Internet and TV at home is a different

model. Without a fixed infrastructure in Romania, we now have 170,000 households for our

TV offer. It is with these 2 dimensions that we are going to change the European countries

and get them closer to what we are doing in France, Spain and Poland.

Stéphane Richard

As to your question on corporate social responsibility, Christine?

Christine Albanel

We have a strong commitment on the social responsibility of the company , with our

Foundations which have a budget of €23 million. We have 15 Foundations in 30 different

countries. The main target here is digital for the service of society. We insist a lot on

education and training via digital tools and for digital tools. For example, we have a

programme in 5 different African countries (Senegal, Cameroon, Niger, Madagascar and

Tunisia), with 130 schools equipped with tablets and low cost servers. Pupils can have access

to all sorts of different content, including video. We have financed the translation in French

of those videos.

We want to be useful but it is a challenge for the brand. Stéphane has presented the new

brand: listening and responding. That is our social responsibility commitment. We also have a

challenge on communication and reputation in France and French regions but also in

countries where media coverage is very high as far as our actions are concerned. It is a

reputation tool that develops trust. The digital economy more than any other is based on

trust. Trust is a new currency and a political challenge, especially in North Africa and the

Middle East where, unfortunately, you have lack of stability in fiscal and political matters. It

also has political consequences.


32

The last challenge is internal. We mobilise all of our employees on these programmes. We

have more than 7,000 volunteers on these different programmes in Orange. It is a way of

increasing pride in belonging to a Group such as ours.

Olivier Bellin

You announced that OBS should improve its financial situation pretty soon. But the manager

announced in 2012 that he was going to make €500 million in Cloud computing. In spite of a

serious restructuring of your Cloud activities in 2014, you have not yet reached that target. Is

this the reason why you are planning to buy another Cloud operator?

Thierry Bonhomme

What you are saying about Cloud infrastructure activities is part of what Stéphane presented.

It covers growth in these OBS services. We have had a 2-digit growth rate over the past few

years. It has been more difficult than expected. Some customers have decided to keep their

private data centres. It is slower than expected because the world of applications is also

evolving slowly, especially specific applications.

Our ambition is to continue this 2-digit growth rate. This will contribute to the +10 point of

the mixed income of services within OBS. In France, we want to be leaders in the Cloud

activities. We are finalising the start of the Cloud start up. This acquisition is to meet the

needs of operators for their own data centres. It is an open source offer to develop our

services on the network. It is also what we will offer our customers in the infrastructure

sector.


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Concluding Remarks


One last word on our cost structures, and then an invitation. First of all, we have decided to

continue the Chrysalid bottom-up approach. All the mechanisms thanks to which Chrysalid

was able to do much more than expected are still on the table. I would also like to highlight

the fact that here Orange delivered, in 2013 and 2014 in particular, more than what was

expected. Management – myself and all the other operational and functional managers – are

fully committed. They will go on working to develop operational efficiency. All that I have

said so far on the Essentiels2020 plan will enable us, thanks to digitalisation, updating of

networks and so on, to work on these cost structures. I do not want anyone to doubt this.

Now, an invitation. We have talked about the customer’s Orange experience. I would

therefore like to invite you to have your own Orange experience. The Grand Palais is close to

the world’s most beautiful avenue. I will therefore invite you to walk down Orange Avenue.

Please come with me to this wonderful Orange Avenue.

Press & Investor Day 2015 - orange.com · Press & Investor Day 2015 17 March 2015, Grand Palais,...

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