Orange Belgium’s
relation with the investor
and analyst community

Orange Belgium Investor Relations team aims to create a trustful and long-standing relationship with the financial markets and all its participants by being a reliable and timely source of relevant financial and strategic information about the company, its performance and the market it operates in. In doing so the IR-team plays an important role in assisting both investors and management in their decision-making.

Share

Orange Belgium’s shares (ISIN: BE0003735496) are listed on Compartment A of Euronext Brussels. Compartment A comprises the listed companies with a market capitalization above 1 billion euros.

Share price evolution in 2017

The euro area economy recovered strongly in 2017 with solid GDP growth and falling unemployment rates across the region, which in turn positively boosted household consumption. Furthermore, the headwinds from tighter fiscal policy dissipated. Against this positive macroeconomic background, a number of political events, such as the elections in France and Germany and the ongoing Brexit discussion, caused some uncertainty, that, in retrospect, have not really had an impact on the course of the solid economic trajectory.

This explains why the Stoxx Europe 600, a benchmark of major companies across the EU continent, was up 7.7% all through 2017. However, the European telecom stocks ended 2017 as one of the worst-performing sectors in Europe with a 3.6% price decline of the Euro Stoxx 600 telecom index. This has been the second year in a row the telecom sector stands among the worst performing sectors in Europe. While European telecom companies have been meeting consensus revenue and EBITDA expectations, this has not been sufficiently compelling to offset concerns about rising investments needs and uncertainty about the regulatory framework.

Key figures (in €)

Brussels Stock Exchange data

* number of shares

At the end of 2017, Orange Belgium’s share price stood at 17.50 euros, implying a decline of 11.9 % year-on-year, thereby underperforming both the wider market as well as its European telecom peers. The year 2017 started nevertheless positively on the back of investor optimism on the outcome of the wholesale cable regulation and on corporate tax cuts in Belgium. The publication of the full year 2016 results was positively welcomed by the financial market community with in particular the resumption of the dividend. The loss of the MVNO contract with Lycamobile negatively impacted investor sentiment. The results’ publication in April was labeled as in line with expectations, but the lack of news flow on the cable regulation dwindled Orange Belgium’ share price. As such the publication of the consultation document by the Belgian regulators was welcomed early July, but while investors hoped this consultation would provide some clarity it still left several scenarios open. Towards the end of 2017, the market increasingly started to focus on the prospects for 2018, balancing a strong commercial momentum of both the mobile and fixed services with the anticipated impact of lower MVNO revenues, the final impact of roaming regulation and lack of profitability of the regulated cable wholesale model.

Orange Belgium vs STOXX Europe 600 Telecommunications vs BEL 20

Shareholders’ structure

Orange Belgium’s shareholders’ structure in terms of institutional holding by region and style remained balanced in 2017. The Orange Group, indirectly via its 100 % subsidiary Atlas Services Belgium, remained the largest shareholder with a stake of 52.91%. In 2017, institutional investors from the UK remained the majority holders of the Orange Belgium share, closely followed by investors from Continental Europe (excl. Belgium), North America, Belgium and the rest of the world. In 2017 investors from the UK and the rest of the world reduced their position in favor of investors based in North America and Belgium. Deep Value, Value and Index investors dominate Orange Belgium’s investment style landscape. The portion of Yield investors has increased in 2017. The vast majority of Orange Belgium’s institutional ownership is held by Low and Medium turnover investors.

According to Orange Belgium’s bylaws, an increase above (or decrease below) the following thresholds requires a declaration to Orange Belgium notified to anske.deporre@orange.com and the Financial Services and Markets Authority (FSMA) notified to trp.fin@fsma.be:

• 3% statutory threshold, as set out by the articles of association of the Company;
• 5% or each multiple of 5%, as set out by the Belgian law.

Orange S.A. (previously named ‘France Télécom’), holds via its 100% subsidiary Atlas Services Belgium S.A., 31,753,100 shares, representing 52.91% of the total share capital of Orange Belgium S.A. The number of shares held by Orange S.A. (France Télécom) has not changed since 2009.

On 9 May 2014, Orange Belgium received a transparency declaration from Boussard & Gavaudan, stating that, as of 18 April 2014, Boussard & Gavaudan Asset Management LP holds 1,810,714 shares, representing 3.02% of the total share capital of the Company. No other notification was received since then.

On 19 January 2015, Orange Belgium received a transparency declaration from Schroders Plc, stating that, as of 15 January 2015, Schroders Investment Management holds 3,105,040 shares, representing 5.17% of the total share capital of the Company. No other notification was received since then.

Throughout 2017 Orange Belgium received several transparency declarations from Norges Bank (the Central Bank of Norway), stating that it has crossed up and down the 3% statutory threshold. The latest notification in 2017 occurred on 4 December 2017, informing that, as of 1 December 2017, Norges Bank held 1,933,395 shares (previous declaration: 1,778,764 shares), representing 3.22% of the total share capital of the Company (previous declaration: 2.96%). A new notification notice was received on 3 January 2018 stating that, as of 2 January 2018, Norges Bank held 1,650,514 shares (previous declaration: 1,933,395 shares), representing 2.75% of the total share capital of the Company (previous declaration: 3.22%).

To Orange Belgium’s knowledge, no other shareholder owned 3% or more of Orange Belgium’s outstanding shares as at 31 December 2017.

Shareholder remuneration

The Orange Belgium Group aims to balance the appropriate cash returns to equity holders with the requirement of maintaining a balanced and sound financial position, while leaving sufficient leeway to continue to invest in its convergent strategy and the build out of its network.

Considering the financial and commercial performance of 2017 and the mid-term outlook, the Board of Directors will propose the Annual General Meeting of Shareholders on 2 May 2018 to distribute an ordinary gross dividend for the financial year 2017 of 0.50 euro per share. If approved, the payment of the gross ordinary dividend of 0.50 euro will be done on 16 May 2018 (ex-dividend date 14 May 2018; record date 15 May 2018).

Liquidity contract

On July 31, 2014 Orange Belgium announced that from August 1, 2014 onwards, it has entered into a liquidity contract with a financial institution and provided them with the mandate to trade the Orange Belgium shares on a strictly discretionary basis on behalf and for account of Orange Belgium. Those transactions are executed on the central book orders of the regulated market of Euronext Brussels. The purpose of this contract is to foster regular and liquid trading. The trading of own shares was authorized by the ordinary Annual General Meeting of shareholders of Orange Belgium on May 7, 2014. In the framework of this liquidity contract Orange Belgium held 141,500 treasury shares on December 29, 2017.

Investor Relations

The aim of Orange Belgium’s Investor Relations team is to create a trustful relationship with the financial markets by being a reliable source and provide relevant information that assists both investors and management in their decision-making.

In order to realize this objective, Orange Belgium’s Investor Relations team has developed a year round communication program, entailing:

• formal management and investor relations presentations of the quarterly and full year results that can be followed live, through a webcast and/or via audio conference calls;
• regular investor meetings in Europe (Brussels, Paris, Geneva, Barcelona, Milan, Frankfurt and Luxembourg), the UK, the US and Canada. These investor meetings allow to bring together institutional investors and analysts, and Orange Belgium’s Chief Executive, Chief Financial Officer and Investor Relations & Treasury Director to discuss the results and outlook of Orange Belgium’s business performance. In 2017 Orange Belgium’s management and investor relations team met close to 200 investors in one-to-one meetings and group meetings, spending in total 25 days to roadshows and industry conferences in 9 different countries.
• hosting reversed roadshows and analyst visits where top management is present;
• responding to enquiries from shareholders and analysts through our Investor Relations team; and through our website section dedicated to shareholders and analysts: https://corporate.orange.be/en/financial-information. The Investor Relations team in cooperation with the Corporate Communication team prepares the annual report that is presented in the framework of the Annual General Meeting.

For the fourth year in a row Orange Belgium’s Investor Relations efforts have been rewarded as Orange Belgium was elected as Winner of the Extel 2017 IR Awards for Belgium in the category “Best Corporate on IR“ Mid- & Small caps. Orange Belgium’s Director of Investor Relations & Treasury Siddy Jobe was also elected for the fourth year in a row as winner for Belgium in the category “Best IR Professional” Mid- & Small caps.

Investor Relations
T. +32 (0)2 745 80 92
E ir@orange.be

Analyst Coverage

The number of brokerage firms that have actively published equity research notes on Orange Belgium stood at 21 and shows a good mix of local and international analyst coverage. Each quarter the analysts are polled for the estimates, providing the company with a detailed overview of the market expectations. This consensus is made publicly available on Orange Belgium’s website.

Financial Calendar

07-Feb-18	Financial results Q4 2017 (7:00 am CET) – Press release
07-Feb-18	Financial results Q4 2017 (2:00 pm CET) – Audio conference call/webcast
30-Mar-18	Start quiet period
20-Apr-18	Financial results Q1 2018 (7:00 am CET) – Press release
20-Apr-18	Financial results Q1 2018 (10:00 am CET) – Audio conference call
02-May-18	Annual General Meeting of Shareholders
14-May-18	Ex-dividend date*
15-May-18	Record date dividend*
16-May-18	Payment date dividend*
29-Jun-18	Start quiet period
20-Jul-18	Financial results Q2 2018 (7:00 am CET) – Press release
20-Jul-18	Financial results Q2 2018 (2:00 pm CET) – Audio conference call/webcast
28-Sep-18	Start quiet period
24-Oct-18	Financial results Q3 2018 (7:00 am CET) – Press release
24-Oct-18	Financial results Q3 2018 (10:00 am CET) – Audio conference call

*Subject to AGM approval