Orange results 2022 & new strategic plan.
- 22Q4:
- Scale Up cost savings plan reaches EUR 700m cumulative indirect cost savings since 2019 (excl inflation EUR 1b)
- Guidance 2023: EBITDA AL slight growth, ecapex strong decrease (15% of rev from 18% in 2022), organic CF (telecom) >= EUR 3.5b, leverage AL mid-term ~2x, dividend 72c
- Launches new strategic plan Lead the Future:
- 4 Pillars
- Generate value from core (FTTH, Data, AI, 5G, 4G Home, satellite in FR (with Eutelsat), merger Spain with MasMovil [Belgium with VOO]; to raise ARPO)
- Capitalise on infra (to add 5m fiber lines in Europe, 2m in MEA; RAN sharing; raise 3rd-party operator hosting rate from 1.37 to 1.5 by 2026 for TOTEM pylons; to decommission copper in FR and 2G/3G in Europe by 2030; to expand 4G & 5G in Africa; increase use of Data & AI; Network Integration Factories for automation & virtualisation)
- Transform OBS (accelerate growth in Enterprise, stgrengthen position in cybersecurity, OBS to rename as Orange Business, to be leader in next-gen connectivity solutions, plans far-reaching program of cost optimization to return to EBITDA AL growth by 2025 at the latest, Orange Cyberdefence rev 2025 EUR 1.3b)
- Growth in MEA (2020-2025 rev CAGR 7%, increased profitability; Orange Money (2022: 29m active users, EUR 100b in transactions) to expand beyond transfers & payments, also to non-subs)
- 3 Guiding principles: performance, excellence, trust
- ESG:
- CO2 emissions -30% (scope 1, 2) by 2025 from 2015, -45% (scope 1, 2, 3) by 2030 from 2020, net zero carbon by 2040
- Recycling to 30% by 2025 (currently 23.1%)
- Business model transformation: simpler, faster, more efficient, agility, simplification of processes
- Extends Scale Up cost savings program by additional EUR 600m by 2025 (on base of EUR 11.8b)
- Targets 2025: EBITDA AL CAGR LSD, increased capex discipline, organic CF EUR 4b in 2025, leverage AL mid-term 2x, ROCE 2025 up from 2022 (to grow by 100-150 bp by 2025), dividend 75c over 2024
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