Strengthening our customer excellence
The priority is to create value in our core business. We will continue our fiber and 5G investments and strengthen our satellite offer. We will accelerate the use of data and AI to offer our customers an ever more personalized experience. We will strengthen our commercial strategy and pursue a reasonable increase in prices to partially offset inflation.
Capitalizing on our infrastructure
We will innovate in new industrial business models to foster agility, resilience, and performance while modernizing our networks at the right pace. We continue to invest to deploy infrastructure that is adapted to our retail customers. Finally, we are accelerating our TowerCo value creation.
Repositioning Orange Business Services and strengthening our position in cybersecurity
The internet, along with cloud and collaborative software, have revolutionized companies’ digital uses, calling into question the traditional Telco B2B operator model. We’re transforming our model to adapt and refocus our portfolio of secure connectivity offers. Our transformation plan is based on 4 levers: simplify, refocus, digitally transform, and accelerate cybersecurity.
Continuing to grow in Africa and the Middle East
Orange Middle East and Africa has become the Group’s leading growth region, achieving €7 billion in revenue in 2022. Encouraged by sustained market growth and exponential increase in uses, our strong regional ambition is driven by mobile data, the business segment, fixed very high-speed broadband and financial services with Orange Money. We’re aiming to maintain revenue growth above 7% per year reach € 8.4 billion in revenue in 2025.
Environmental policy
We’re aiming for net zero carbon emissions by 2040, achieving a 30% reduction in our CO2 emissions by 2025 compared to 2015 on scopes 1 and 2, and a 45% reduction by 2030 compared to 2020 on scopes 1,2 and 3. We’re focused on strengthening our network energy performance of with initiatives such as the Green ITN program, using more renewable energies such as solar, and accelerating the circular economy by refurbishing, repairing, and recycling equipment wherever we operate.
2025 goals
First of all, we are projecting a slight growth in Group EBITDAaL over the 2022-2025 period. In addition, a decrease in our eCapex will fuel a continued increase in our organic cash flow to reach €4 billion by 2025, with a growth in return on capital employed, ROCE, over the period. Our balance sheet policy will remain unchanged, and we confirm a net debt ratio target of around 2x EBITDAaL in the medium term. Our 2023 goal is to generate organic cash flow of at least €3.5 billion thanks to a slight growth in our EBITDAaL and a sharp drop in our eCapex. In terms of shareholder compensation, we propose a dividend for the 2022 financial year of €0.70 per share, increasing the floor for the 2023 financial year to €0.72 per share and including an interim payment of €0.30 per share in December 2023. Finally, we propose to increase the floor to €0.75 per share for the 2024 financial year, to be paid in 2025. This commitment to a continuous increase in our dividends demonstrates our confidence in our outlook for increasing cash flows.
Renewed governance to deepen shareholder relations
As you know, 2022 marked a profound transformation in Orange’s governance to better equip us for the challenges ahead, following the company’s Board of Directors decision that it was better to separate the roles of Chair and Chief Executive Officer.
As soon as I took office as Chair of your Board of Directors, I wanted to encourage regular shareholder dialog. That’s why, from the second half of 2022, I have continued to meet our corporate shareholders as well as individual shareholders – whether employees, through employee shareholding funds, or as individuals; in particular, I met the representatives of the Orange shareholders’ advisory committee (CCAO).
… supporting Orange’s strategy
As you know, the role of the Board of Directors is to validate the strategy and monitor its implementation. Christel Heydemann, as Chief Executive Officer, has the broadest leadership powers when it comes to appointing the members of the Executive Committee, agreeing investments, and implementing our industrial and innovation policies that will allow Orange to remain a world leader in digital communication infrastructures, ever faithful to its purpose.
Thanks to everyone’s efforts and diligent management, Orange achieved its financial goals in 2022. Despite a context of high inflation and geopolitical instability, which meant we had to increase our prices across our footprint to ensure value creation as well as a strong customer base, these 2022 results constitute a solid foundation to implement, with determination, our new “Lead the Future” strategic plan. Orange is now pursuing long-term business growth and lasting organizational transformation to become ever more agile, while respecting our social commitments. This has led the Board of Directors to propose an increase in the 2023 dividend to €0.72, including an interim payment of €0.30 in December 2023, and propose a dividend of €0.75 in 2024. I am hopeful that the Orange share price will continue to rise.
With the support of the members of the Board of Directors, you can count on my determination and ambition in serving Orange and supporting Christel Heydemann and her teams as, together, we face the challenges that lie ahead.