ORANGE POLSKA S.A. Integrated Report
Orange Polska
2 | Orange Polska Integrated Report 2022 | 3 |
Content
1. About Orange Polska | 4 |
Message from our CEO | 6 |
Our company | 7 |
Our value creation model | 10 |
2. | Strategy | 42 |
.Grow strategy | 45 | |
Q&A with Julien Ducarroz, CEO | 59 | |
3. | Orange Polska in 2022 | 62 |
Q&A with Jacek Kunicki, CFO | 64 | |
Orange Polska key achievements in 2022 | 65 | |
Outputs and outcomes | 66 | |
Financial results | 95 | |
Outlook for 2023 | 103 | |
Orange Polska on WSE | 105 | |
4. | Human capital | 108 |
Organisational culture | 110 | |
Diversity management | 112 | |
Workplace | 116 | |
Remuneration and development | 119 | |
Dialogue and involvement | 120 | |
5. | Society | 124 |
Economic impact | 126 | |
Social engagement | 128 | |
6. | Climate and environment | 142 |
Q&A with Climate Officer | 144 | |
Orange Goes Green | 146 | |
Climate-related Financial Disclosures (TCFD) | 150 | |
Taxonomy | 164 | |
7. | Risk management | 180 |
8. | Corporate governance | 200 |
Letter from the Chairman of the Supervisory Board | 202 | |
Our approach to governance | 204 | |
Our governance structure | 206 | |
Governing bodies' activities in 2022 | 212 | |
Ethics and compliance management | 276 | |
9. | Selected financial data | 280 |
10. | Appendices | 292 |
4 | About Orange Polska | Orange Polska Integrated Report 2022 | 5 |
About Orange
Polska
Orange Polska is a leading provider of telecommunication and ICT services in Poland, operating in all segments of the Polish telecoms market. We own the largest telecom infrastructure in Poland, providing a broad portfolio of products and services for individual, business and wholesale customers on fixed and mobile networks.
6 | About Orange Polska |
Message from our CEO
Orange Polska Integrated Report 2022
Our company
7
Orange Polska shareholders
Dear Stakeholders,
I invite you to read the new edition of Orange Polska's integrated annual report.
Combining financial and non-financial aspects of our results into one document allows us to show you our performance in a wider context, and discuss how we create value for our various
stakeholders, while at the same time building a more sustainable business for the long term. I have a pleasure to say that our last year's edition received the main prize in the Integrated Report category of the Sustainable Development Reports competition organised by the Forum for Responsible Business and Deloitte.
signed power purchasing agreements, we already secured, three years ahead of the plan, our 2025 strategic goal
of CO2 emissions reduction: 65% versus the base year
of 2015. I am very proud of that achievement: it will stabilise our energy costs and make our business operations cleaner and more friendly to the environment. I am also pleased that our OrangeGoesGreen strategy was appreciated by the World Communication Awards in a competition awarding achievements and innovations in the telco industry globally. We got into the final short list as the only company from the European Union. Our climate strategy was seen as holistic with tangible actions and results.
On the other hand the war in Ukraine was clearly a major challenge in our environment. As soon as it started we used our resources to provide help and support actions on different fronts. Now, we are more focused on structural initiatives, aimed at integrating refugees into the Polish education system and labour market.
Orange Polska is a leading provider of telecommunication and ICT services in Poland, operating in all segments
of the Polish telecoms market. The Group owns the largest telecom infrastructure in Poland, providing a broad portfolio of products and services for individual, business and wholesale customers on fixed and mobile networks. We are the biggest fixed-mobile convergent operator
in Poland based on FTTH technology. For business customers we offer end-to-end solutions assisting in digital transformation.
Orange Polska is 50.67% owned by Orange S.A., one of Europe's leading telecom operators. Orange Polska's success is founded on a portfolio of competitive products, a powerful, proactive sales force and outstanding customer care, supported by a robust infrastructure and highly motivated employees. Co-ordinating our efforts around
a lean, agile operating model will ensure that we deliver healthy and sustainable returns to our shareholders.
36.14% | 50.67% |
7.70%
5.49%
Number of shares held
Orange S.A. | 664,999,999 | |
Allianz | ||
Open Pension Fund | 101,008,824 | |
Nationale-Nederlanden | ||
Open Pension Fund | 72,053,524 | |
Other shareholders | 474,295,132 | |
Last year our business faced an accumulation
of exceptional challenges related to the war in Ukraine, the energy crisis and rapidly growing inflation. These constituted a major test of our ability to execute our strategy and deliver growth. Despite those headwinds, we grew our revenues, profits and return on capital employed, while keeping our cash generation solid and our balance sheet healthy. In mid-point of our .Grow strategy implementation we are well on track to reach its objectives.
The macroeconomic environment continues to be very demanding and uncertain: Poland's economic growth in 2023 is expected to slow down to less than 1%, inflation to stay at a double-digit level, and the war beyond our eastern border unfortunately continues. While we believe the demand for our services will remain solid, high inflation will significantly impact our operating costs. I am confident, however, that we are well prepared to face the challenge and will be able to adapt and extract the maximum value from our assets.
From recovery to sustainable growth
In June 2021 we presented our .Grow strategy for 2021-2024. It was a successor to a previous strategy called Orange. One, which was successfully concluded in 2020. Orange. one was a breakthrough strategy which allowed us to reverse multi-year negative trends in sales and profitability, and deliver
Total1,312,357,479
turnaround. The .Grow strategy is an evolutionary step to accelerate sales and profit growth, while laying the foundation for growth beyond 2024. Orange Polska is in midway
of implementation of its .Grow strategy. Despite numerous headwinds, coming mainly from macro environment, and intensifying competition, Orange is perfectly on track with all its financial and operational ambitions.
2022 was a particular year for the pillar of our strategy related to responsibility. We made exemplary progress in our #OrangeGoesGreen programme. Owing to newly
Julien Ducarroz
President and CEO of Orange Polska
.Grow strategy
(2021-2024)
Convergent value strategy focused on the household & new wholesale strategy to maximise value
#OrangeGoesGreen
Safe digital inclusion
People diversity
e | |||||
r | |||||
o | |||||
C | |||||
e | |||||
s | |||||
i | |||||
x | i | m | |||
a | |||||
M |
R
e
s
p o n s ibility
N | ||||||||||
e | ||||||||||
w | O | |||||||||
p | ||||||||||
p | ||||||||||
o | ||||||||||
r | ||||||||||
t | ||||||||||
u | ||||||||||
n | ||||||||||
i | ||||||||||
t | ||||||||||
i | ||||||||||
e | ||||||||||
s | ||||||||||
l | ||||||||||
a | ||||||||||
i | ||||||||||
t | ||||||||||
t | e | n | ||||||||
o | ||||||||||
P | ||||||||||
e | ||||||||||
s | ||||||||||
a | ||||||||||
e | ||||||||||
l | ||||||||||
e | ||||||||||
R |
Next level of ICT
acceleration...
...enhanced by 5G as a catalyst for new business
Digital transformation
Simplification & effciency
Orange People
8 | About Orange Polska |
Orange Group mission
As a trusted partner, Orange gives everyone the keys to a responsible digital world.
Our values
Close | Simple | Positive | Bold |
• I'm close to the | • I constantly simplify | • I collaborate | • I challenge the status |
customer | • I work in an agile | • I appreciate | quo and propose |
• I'm close to the team | way and effectively | work of others | improvements |
• I build relations based | • I communicate | • I share passion | • I experiment and |
on trust & respect | in an open and | and I care about | take risk |
effective way | world around | • I look for innovation |
Orangein Polska 2022 innumbers
Orange Polska Integrated Report 2022 | 9 |
Convergent | Mobile accesses | Fixed broadband | TV customers | Fixed voice lines |
customers (B2C) | (SIM cards) | access (retail) | (retail) | |
in '000 |
1,625 | 17,630 | 2,804 | 955 | 2,572 |
(+4.7% yoy) | (+4.9% yoy) | (+2.1% yoy) | (-4.0%yoy) | (-4.8%yoy) |
o/w handset offers | o/w fibre | o/w IPTV technology | ||
8,723 | 1,171 | 821 | ||
(+3.5% yoy) | (+24% yoy) | (+15.6% yoy) | ||
o/w pre-paid | ||||
5,064 | ||||
(+2.2% yoy) | ||||
Revenues
PLN 12.49 bn
+4.7% yoy
Market cap
PLN 8.7 bn
at year end
EBITDAaL | Net income |
PLN 3.08 bn | PLN 724 mn |
+3.9% yoy | +2.6x yoy on comparable basis (yoy comparison |
excludes impact related to FiberCo transaction in 2021) |
ROCE | Net debt to | Employees | Phishing attempts |
6.5% | EBITDAaL | (in FTEs) | blocked by our |
1.3x | 9,764 | CyberShield | |
+1.5x yoy | ~ 5 mn | ||
eCAPEX | Organic Cash Flow | Cash dividend |
PLN 1.72 bn | PLN 822 mn | PLN 0.35 per share |
-1.0% yoy | -5.2% yoy | +40% yoy to be paid |
in 2023 from 2022 profits* |
CO2 reduction | Renewable electricity as % of total | Digital education |
14% yoy | electricity consumption | programmes for: |
12% | >6.5k children & | |
x2 yoy | >21k teachers |
*Management Board's recommendation, subject to approval of the General Meeting of Shareholders
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Orange Polska SA published this content on 23 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2023 14:58:09 UTC.
