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Orange 2018 Integrated Annual Report
Useful links and contacts
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Working at Orange
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Follow us on Facebook
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Contacts
Investors and analysts
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Orange 2018 Integrated Annual Report
21 stakeholders, 47 participants and five major topics —
we are delighted to present 21 à la Une, the Orange
stakeholder review.
We hope you enjoy it.
6
Summary
P. 8 to 25
Orange at a glance
Orange is strong and accelerating its transformation, by Stéphane Richard
Creating shared value for the long term
Key considerations
Social and economic impact
P. 26 to 67 Our areas of excellence today
We’ve come a long way since launching the Essentials2020 plan and our hard
work has paid off. Today, Orange is one of the largest telecoms operators in
the world with a foundation of ever-more efficient network infrastructure and
unmatched expertise in customer and employee experience. Our success is
based on an inclusive approach to innovation and robust financial performance.
Cutting-edge networks
Unmatched customer experience
Digital and caring employer
Transforming innovation into progress each day
Highlights
Financial results
Non-financial results
Performance in 2018
P. 68 to 103 Our choices for a better tomorrow
We will continue to create value, leveraging our areas of excellence to deploy
our multi-service operator strategy.
Working to develop digital inclusion and responsible uses
Investing and innovating in networks
Guiding businesses through their own digital transformation
Taking mobile financial services to the next level
Creating and distributing content for tomorrow’s world
Shaping smart services for everyday living
Helping to drive the environmental and energy transition
P. 104 to 115 Governance
Strong corporate governance
Balanced compensation for senior executives
Our ethically responsible commitment
P. 116 to 125 Our integrated approach
Stakeholder dialogue
Identifying the most relevant issues for Orange and partners
Risk management
P. 126 to 133
Indicators
Orange 2018 Integrated Annual Report
Part I
Our areas of
excellence today
Part II
Our choices for
a better tomorrow
8
Orange at a glance
—
6 business activities
Connectivity for individuals and businesses
Digital transformation for businesses
Operator services
Cybersecurity
Mobile financial services
Content
2018 revenues
Employees
Customers
Homes connectable
to very high-speed
broadband
€41.4 billion 151,000
264 million
32.5 million
4G customers
worldwide
Retail customers
with broadband and
mobile convergence
packages
Mobile network
quality in France
Homes using
Orange TV services
in Europe
56.2 million 10.9 million
No.1
9.6 million
Active Orange
Money customers
Orange Bank
customers
in France
Investment
excluding licences
Investment
in research and
innovation
15.1 million
248,000
€7.4 billion
€700 million
Orange 2018 Integrated Annual Report
27 countries across the world
We operate in Europe (Belgium, France, Luxembourg, Moldova, Poland, Romania,
Slovakia and Spain) and Africa and the Middle East (Botswana, Burkina Faso, Cameroon,
Central African Republic, Côte d’Ivoire, Democratic Republic of the Congo,
Egypt, Guinea-Bissau, Guinea, Jordan, Liberia, Madagascar, Mali, Mauritius, Morocco,
Niger, Senegal, Sierra Leone and Tunisia).
Orange Business Services is available worldwide.
10
Orange
is strong and
accelerating its
transformation
—
Stéphane Richard
Chairman and Chief Executive Officer
Orange 2018 Integrated Annual Report
Stéphane Richard
@srichard
#FY_2018 has been a year of #acceleration of our
revenue growth and adjusted EBITDA, in a highly
competitive environment. This performance
illustrates the superiority of our networks and the
quality of our services. Congrats and thank you
to all @orange teams
08:00 - 21 Feb 2019
12
The outstanding
quality of our networks
has made us the
number one operator
for convergence
in Europe.
—
Our results in 2018 confirmed the effectiveness of
our strategy – based on leveraging the quality of
our networks and enhancing our services. We are
now in a position to build on these two strengths
and the success of our Essentials2020 strategic
plan in order to take the Group’s growth and
transformation to the next level.
The huge amount of work we have undertaken since
launching the Essentials2020 plan has delivered solid
results. We are back on track for growth thanks to
the two fundamental decisions that have set Orange
apart from other European operators.
The first choice was very high-speed fixed and mobile
broadband. In fixed services, Orange was the first
European operator to make the clear and decisive
choice to roll out Fibre to the Home (FTTH), bringing
very high-speed fixed broadband to customers in
all its operating countries. In France, we are the only
operator so far to have massively invested in very
high-speed fixed broadband, building nearly 70% of
the country’s fibre network. The second significant
choice we made, also before any of our competitors,
was convergence. Years ago, we realised that the
European market would increasingly, and more
rapidly, gravitate towards fixed/mobile convergence.
The idea behind it is simple: it makes a lot of sense
for a family or business to have one carrier that
provides all their landline and mobile services. And
for us, this naturally presents a fantastic opportunity
to nurture customer loyalty. You can see the effects
of these two pioneering decisions regarding fibre and
convergence in our figures.
Orange has been the fibre optic leader in Europe
for three years now and today has 29 million homes
connectable to FTTH. We have also invested
substantially in mobile networks. We are a leading
provider of 4G, with more customers than any of
our competitors in seven of our eight operating
countries in Europe. We have set up 4G networks in
12 countries in Africa and the Middle East, and, in
2018, topped the mobile network ranking in France
for the eighth year running. The outstanding quality of
our networks has made us the number one operator
for convergence in Europe, where this strategy has
become widespread. We now provide convergence
packages in all our operating countries in Europe and
have almost 11 million contracts so far.
It was our solid performance in all these countries
that helped us bounce back in 2016. Our revenues,
EBITDA and operating cash flow continued to pick up
pace in 2018, despite persistently fierce competition.
Going forward, we will be speeding up the roll-out
of very high-speed fixed and mobile broadband. It
is a powerful driver for our company’s growth and
Orange 2018 Integrated Annual Report
Stéphane Richard
@srichard
The main strength of a company like @orange is
its employees. So when I meet people that are
as motivated and full of energy as those I met in
Bordeaux today, I feel extremely confident for our
company’s future.
10:38 – 7 May 2018
14
We broadened
our range of services,
making bold moves
to diversify into several
forward-looking
sectors.
—
a big part of our commitment to society alongside
the French State and local authorities. In the mobile
segment, Orange is preparing the ground for 5G,
a disruptive technology that will open the door to
new uses, with 10 times faster throughput than
4G. We are doing this in several ways, such as by
carrying out new large-scale pilots in Europe with our
technology specialist partners. We started trialling 5G
on the ground in 2018 and will be carrying out other
tests between now and 2020 to prepare to bring 5G
to our individual and business customers.
By tapping into the quality of our networks, we
broadened our range of services, making bold moves
to diversify into several forward-looking sectors.
We have upgraded Orange Business Services’
business model and expanded our expertise by
making targeted acquisitions in strategic areas,
such as cloud and cybersecurity technology. Fully
aware of data security threats, we set up Orange
Cyberdefense in 2016, leading the field in France
within two years. The acquisition of British group
SecureData in January 2019 also sets us on a path
to becoming one of Europe’s leaders in cybersecurity
provision.
We also notched up several success stories in
2018 as regards our content. OCS celebrated its
10th anniversary, with almost 3 million customers,
and our improved sports packages in Spain have
significantly boosted sales. We have a clear strategy,
based on offering a wealth of content by partnering
with key players such as HBO and Netflix.
Lastly, the mobile financial services business also
performed well last year. Orange Bank had signed
up 248,000 customers in France by the end of
2018, after opening a record number of accounts
in the fourth quarter, representing a major success.
I believe in this new business line, and our unique
approach – an entirely mobile bank, combined
with the convenience of the Orange store network.
Meanwhile, Orange Money has become one of the
world’s most popular mobile payment solutions,
with more than 15 million active customers – partly
driven by Mowali, the platform we set up with MTN to
enable pan-African mobile payment interoperability.
The quality of our networks, our diversification
strategy and our renewed management team are
three of the reasons why we’re feeling confident
about 2019. It will be a pivotal year for the Group, as
we will be presenting our new strategic plan for 2025.
We live in a world where 3.9 billion people – more
than half the global population – still aren’t connected
to the internet. That is why we will be ramping up our
efforts to bring safe and smart networks and services
to everyone, wherever they are.
Orange 2018 Integrated Annual Report
Stéphane Richard
@srichard
Yesterday @orange brought #5G another step
closer, making France’s first-ever interoperable
data call using the #5G standard. More than
ever, @orange is leading the way to the mobile
network of the future.
10:53 - 26 Oct 2018
16
Creating shared value
for the long term
—
Customer confidence is key to
everything we do
Our core business at Orange is to provide efficient and
intelligent global networks for customers while
ensuring their data is secure and protected.
Building on this foundation of technology and trust, we
provide connectivity solutions to individuals and
businesses. We deliver network resources and
enriched services to our operator customers both in
France and abroad, in addition to guiding business
customers through their own digital transformation.
We are also developing new offers in content, mobile
financial services and cybersecurity.
Digital technology to serve an
advanced, informed and free society
At Orange, our goal is to harness the potential of digital
technology to ensure meaningful progress for people,
society and the planet. We are aware of, and have an
influence on, the technological, economic and social
considerations associated with our operations, and
help our stakeholders to navigate this changing
environment. Our business model is based on
subscriptions, rather than exploiting value from the
data generated by our 264 million customers,
comprising individuals, businesses, local authorities
and operators. That is one significant commitment we
are making to our customers; the other is to offer them
an unmatched experience. Today, we are leveraging
our connectivity, assets, expertise, technology and
skills to diversify into new markets. As a trusted
operator, we must also take into account the deep
inequalities that characterise the digital world. That’s
why Orange defines and implements innovation
in an inclusive and responsible way. We owe the
success of our strategy to the commitment of our
151,000 employees across the world. We therefore
stand by our digital and caring employer promise to
deliver a unique employee experience to match the
experience we aim to give to customers.
Creating value for all our stakeholders
The following figure presents the indicators that
illustrate the financial and non-financial value we are
creating for our stakeholders and for the Group itself.
Our large and highly-skilled workforce is one of our
greatest assets and we are a leading employer in
several countries. The result of an effective innovation
and investment policy, our industrial and intellectual
assets set us apart from our competitors. The
strength of our brand and the extent of our
distribution network also provide a competitive
advantage. Furthermore, outstanding sales
performance across the Group, combined with
operational efficiency, have produced excellent
financial results. With operations in 27 countries,
Orange invests extensively in networks and therefore
plays an essential role in regional development and
people’s daily lives. We maintain excellent
relationships with our suppliers and partners,
promoting responsible and ethical collaboration at
every stage of the value chain. Moreover, the
commitments we have made and the actions we
have taken to reduce our carbon footprint and
develop a circular economy demonstrate our
determination to reduce our environmental impact.
Orange 2018 Integrated Annual Report
Our business model
Technological considerations
Connectivity, network virtualisation,
artificial intelligence, big data and
Internet of Things
Considerations
O ur strategy
Economic considerations
Macroeconomic context,
digital security and
sovereignty, regulation,
competition and
key suppliers
Invest to build an efficient
and intelligent network
O u r services
Stand out by
delivering an
unmatched customer
experience
Connectivity for individuals
and businesses
Wholesale
services
Digital
transformation
of businesses
A trusted, multi-service operator
Content
Cybersecurity
Mobile financial services
and banking services
Monetise
our services
rather than
customer
data
Be a digital
and caring
employer
Take an inclusive
and responsible approach
to innovation
Our servic e s
Diversify to capitalise
on our assets and skills
Social considerations
Digital inclusion, climate change,
human rights, privacy and
data protection, and regional development
18
Our assets
151,000 employees across the world
75,000 customer relationship employees
34,000 employees supporting our networks
2,400 digital developers, integrators and experts
30.4 hours of training per Orange SA employee
People
€7.4 billion net investment excluding licences
€700 million investment in Research & Innovation
6,857 patents including 222 inventions
Industrial
and intellectual
assets
450,000 km of submarine cable and six cable ships owned or co-owned
A powerful brand with strong customer loyalty:
ranked 65th in the BrandZ Top 100 most valuable
global brands
Present locally with 5,326 stores across the world,
Brand
equity and
commercial
assets
including 883 Smart Stores
Orange Money distribution network with 160,000 points of sale
Significant equity: €33.2 billion
Moderate net financial debt: €25.4 billion
A stable and long-term shareholder base: 23% public sector,
5.50% employees and former employees
Financial assets
Our ecosystem
27 countries for consumer services and a global presence
with Orange Business Services
Regions
and society
Six new agreements signed in 2018 for Public Initiative Networks
National and local stakeholder dialogue
€19.6 million paid for goods and services from companies
in France’s sheltered employment sector
116 CSR audits conducted in 2018 under
Suppliers and
partners
Orange contributes to over 50 development projects
the Joint Audit Cooperation (JAC)
in France and Europe
13 research chairs funded
Energy consumption: 5,697 GWh (Scope 1 and 2)
CO2 emissions: 1.4 billion tonnes (Scope 1 and 2)
Environmental management (ISO 14001) certification
for 60% of the Group’s scope
Energy management (ISO 50001) certification in France
Environment
truste d , m u l t i-service o
A
p
e
r
a
t
o
r
Value created
and shared
A major
employer
Leading
the field
€9.1 billion in wages and employee benefit expenses (22% of revenues)
81% of Group employees recommend Orange as an employer
73% of employees in France are Orange shareholders
11,000 recruitments on unlimited contracts across the Group, including
3,200 in France
Gender Equality European and International Standard (GEEIS)
29.8% of women in management networks
264 million customers, including 3,000 multinationals outside France
No.1 in fibre optics in Europe: 29 million connectable homes
56 million 4G customers (coverage in Europe greater than 95%)
No.1 in convergence in Europe: 10.9 million customers
No.1 mobile network in France for the 8th year running (ARCEP)
15.1 million active Orange Money customers and 248,000 Orange Bank
customers
A customer
experience
that makes
the difference
No.1 in customer recommendations in 15 countries
No.1 in customer recommendations in France across all segments
52% of customer interactions in Europe conducted on digital channels
Average broadband speed for fixed internet network users 7.6 times
faster than in 2014
Average broadband speed for mobile internet network users 3.1 times
faster than in 2014
Solid financial
performance
Revenues: €41.4 billion (up 1.3% from 2017)
Adjusted EBITDA: €13 billion (up 2.7% from 2017)
Operating cash flow (adjusted EBITDA-CAPEX): €5.6 billion
(up 1.7% from 2017)
Dividends: €2.1 billion
Contribution
to society
and regional
development
€2.2 billion in operating taxes and licences paid
€0.9 billion in corporate taxes paid
€4.6 billion in network investments
€260 million invested to support entrepreneurship over the last 10 years
€23 million invested by the Foundation in young people and women in difficulty
Contribution to wealth creation: 11% of GDP in Senegal
and Côte d’Ivoire, 2.8% in Niger
Orange is a member of the Global Network Initiative
Responsible
and ethical
working
relationships
throughout the
value chain
€18.6 billion in external purchases (suppliers, etc.)
Responsible supplier relations label in France
264,000 people employed by our suppliers impacted by Joint Audit
Cooperation action plans
Towards
carbon
neutrality and
a circular
economy
Reduction of 3.2% in CO2 emissions and 3.2% in energy
consumption between 2016 and 2018
Energy efficiency: 56.6% reduction in CO2 rate per customer usage
compared with 2006
€800 million saved in energy costs in networks and IT since 2010
15.4% of unwanted mobile devices collected at Group level
In bold: breakdown of the value created by Orange by financial flow.
2018 data
2020
Key
considerations
—
In just a few decades, digital technology has
dramatically changed our daily lives and the
entire economy. Although these changes
continue to provide us with great opportunities
for future growth, they also create new risks and
inequalities. As an operator, Orange finds itself at
the heart of the major technological, economic
and social challenges that will shape the future of
society. Drawing on our expertise and our
position as a leader in the market, we possess all
of the necessary assets to seize these new
opportunities and meet potential challenges
while contributing to sustainable social and
economic development.
Technological considerations
We are using an increasing number of screens,
professional apps that enable us to work on the
move and connected devices and appliances. As a
result, our needs for connectivity are growing,
which calls for the development of fixed and mobile
networks that are more agile and easier to use and
access. Artificial intelligence has progressed as a
result of big data, more sophisticated algorithms,
low-cost processing power and investment from a
variety of sources, predominantly from the US and
Asia. Artificial intelligence improves operational
efficiency across almost all of the Group’s business
lines by optimising networks, resolving user
problems in IT services and tailoring service
delivery to individual needs. It also powers new,
value added services for customers such as virtual
assistants.
Economic considerations
Consolidation in Europe has slowed since the mergers
of 2014 and 2015, even though there are considerably
more telecommunications operators in the region
compared with America or China, for example. Global
competition is extremely fierce and certain operators
are generating new revenue streams by monetising
data. Despite this trend, managing personal data has
become an increasingly important consideration.
In 2018, the European Union’s General Data
Protection Regulation (GDPR) came into force,
providing Member States with a new legal framework
for data management. Lastly, cybersecurity is another
increasingly important area, requiring a strategy to
protect against the growing threats of cyberattacks
and service disruptions.
Social considerations
In 2018, half of the world’s population still did not
have access to the internet and e-illiteracy continued
to be widespread amongst many of those who did
have access. Digital exclusion makes it difficult for
people to access essential services, information and
knowledge; nor can they enjoy its economic benefits,
such as job opportunities and increased purchasing
power. Furthermore, companies nowadays have a
responsibility to protect human rights that goes far
beyond their own actions. They must also ensure
that this same responsibility is also met by their
suppliers and subcontractors. In order to position
ourselves as a trusted operator, we have placed
freedom of expression and data protection as the
foundation for our customer relationships. These
considerations are no less important than network
quality and reliability. The rise of extreme weather
events and the publication of a report by the
Intergovernmental Panel on Climate Change (IPCC)
brought the immediate consequences of climate
change closer to home, underlining the need for
individuals and businesses to reduce their carbon
footprint.
Orange 2018 Integrated Annual Report
Orange 2018 Integrated Annual Report
Risks and Opportunities
Technological considerations
Connectivity, network virtualisation,
artificial intelligence, big data and
Internet of Things
Considerations
)
Economic considerations
Macroeconomic context,
digital security and
sovereignty, regulation,
competition and
key suppliers
Social considerations
Digital inclusion, climate change,
human rights, privacy and
data protection and regional development
Consideration s
22
Technological considerations
Opportunities
Risks*
Reduction of network equipment
Increased investments
and maintenance costs
Revenues from
in new network technologies
(5G and fibre)
new business uses (5G, IoT)
Consolidation of leadership
Rise in network operating costs
(4G/5G, FTTx, LoRa® and LTE-M
(network coverage and quality)
Increasingly complex networks
New customers
(extended network coverage)
Convergence and new services
due in particular to their
virtualisation
Connectivity and
network
virtualisation
Revenues from data analysis
Service differentiation/customisation
Cost reductions
(making the customer journey digital)
Creation of new professions
Promotion of the Orange ecosystem
Optimisation of network resources
Less direct customer contact
due to virtual assistants
Cost and scarcity of skills
Greater outsourcing needs
Supplier dependency
Artificial
intelligence
and big data
Revenues from specialised
IoT service platforms
Security breaches in networks,
service platforms or devices
Internet of
Things
Social considerations
Opportunities
Risks*
Additional revenues
New customers
(extended network coverage)
Social utility
Social divides
Digital divides (unequal
access/e-illiteracy)
Digital
inclusion
Development of
Natural disasters
climate-compliant solutions
Environmental responsibility
and impact on infrastructure
Climate
change
Reduction of excessive usages
Social acceptability
Infringement of human rights
Human rights
by a third party with
direct or indirect links to Orange
Inability to adapt to new
ways of working
Health and safety (incl.
electromagnetic fields)
Infringement of
fundamental freedoms due to
injunctions from local authorities
Strengthening the trusted
third party role
Cybersecurity services for
business customers
Disclosure, usurpation,
inappropriate storage
of personal data
Privacy
and data
protection
Technology providers
accessing company data
New customers and revenues
(network coverage and quality)
Quality of essential services
(fixed and mobile networks,
internet and related key services)
Regional
development
Economic considerations
Risks*
Opportunities
Macroeconomic
context
Geopolitical instability
Economic crisis in one
Economic growth
New sources of financing
of Orange’s operating countries
(Socially Responsible Investors)
Regulation
Competition
Mandatory investment
in networks
Licence costs
Tax increases
Drop in regulated prices
Compliance with GDPR/
environmental standards
Additional constraints
Price pressure
Race to deploy fixed networks
(fibre) and mobile networks
(4G/5G)
Lack of new skills
Disintermediation by digital
companies
Disruptive innovation
Revenues from the coverage and
quality of the networks deployed
Costs of priority network access
for established operator and/or the
challenger
Low-carbon and circular economy
products and services
Investment in skills
Improved agility and operational
efficiency
Revenues from innovative
services
Key suppliers
Dominant position of certain
Purchase price reductions
suppliers or partners
through volume
Scarcity of essential natural
Co-developing solutions with
resources
suppliers
Digital
security and
sovereignty
Business interruption
Deterioration of service quality
Unlawful access to data/
cyberattack
Development of cyberdefense
activities
Consolidation of internal
expertise
* We explain how we identify, manage and govern our risks in the
“Integrated Approach” section of this report on page 122.
24
Social and economic
impact
—
Conducting socio-economic impact studies enables us to measure our contribution to the
development of the countries in which we operate. After conducting studies in France and Niger in
2017, we extended the initiative to five other countries in Africa: Cameroon, Côte d’Ivoire, the
Democratic Republic of the Congo, Guinea and Senegal. The studies look beyond the Group’s local
presence alone, measuring the impact of the social and economic footprint on several levels.
Orange 2018 Integrated Annual Report
Orange’s footprint
in six African countries
Local footprint
Simple economic
footprint
Value added
in millions
of euros
Direct jobs
Value added
Induced jobs
Total
footprint*
% of GDP
The analysis framework
Simple economic footprint (local expenditure)
The input-output method, based on the work of
Wassily Leontief for which he won the Nobel Prize in
Economics, is used to analyse the extent to which
the monetary flows generated by our operations
locally drive economic activity and employment
nationally (purchases, wages and tax).
Extended economic footprint
This wider measure builds on the above method,
enabling us to measure the impact of:
our CSR actions, or the value created by our
corporate social responsibility programmes such
as device recycling and Orange Foundation
initiatives to set up and manage Orange villages.
The method estimates the impact of these
programmes on the purchasing power of
beneficiaries who may be offered free access to a
new service or save on household essentials, for
example;
the use of our products and services,
estimating the value created for businesses and
individuals using our infrastructure, products and
services, which increase productivity, accelerate
regional development and contribute to national
GDP growth.
The results
Simple economic footprint
The monetary flows generated by our operations
multiplied local value added by two, and in some
cases three, in the countries studied. The results
expressed in terms of induced jobs were also
significant and present even more marked variations
between countries (×180 in Guinea and ×80 in
Cameroon), which predominantly reflect wage
differences between the countries.
Total footprint
The total footprint is the sum of the local, simple
and extended footprints, expressed here as
Orange’s contribution to GDP per country. This
was considerable: boosting GDP in Cameroon by
7.8%, in Guinea by 8% and as much as 11% in
Côte d’Ivoire. KPMG prepared a reasonable
assurance report to verify the Group’s social value
calculation and the results obtained for Niger and
Senegal, countries of very different sizes.
Both the verification and a methodology note by the
consultancy firm that supported Orange with the
analysis, Goodwill Management, are available
on www.orange.com.
Cameroon
107
601
×3
×80
7.8%
Côte d’Ivoire
530
1,965
×2.1
×46
11%
Democratic
Republic
of the Congo
49
580
×3.5
×150
1.5%
Guinea
112
350
×1.8
×180
8%
Niger
37
531
×1.8
×42
2.8%
Senegal
387
1,789
×2.3
×37
11%
* Source: Goodwill Management
26
Part I
Our areas
of excellence
today
In recent years, Orange has built strong capabilities
including cutting-edge networks, unique expertise in
customer experience, a digital and caring employer promise
and a culture of innovation.
28
Cutting-edge networks
—
Orange 2018 Integrated Annual Report
Offering optimum connectivity
We guarantee our customers the best connectivity,
with optimum throughput, volume and quality through
a mix of submarine cables, land networks, fibre and
radio. Between 2015 and 2018, we invested
€17 billion in our networks to meet a growing range of
emerging needs, including increasing numbers of
screens, VOD services, professional mobile apps, the
Internet of Things and artificial intelligence. We have
primarily focused on extending 4G coverage in
Europe and in Africa and the Middle East, continuing
to deploy fibre and building a submarine information
superhighway.
Stepping up fibre deployment for very
high-speed broadband
Orange is boosting connectivity at home with FTTH
(Fibre to the Home) technology, which makes it
possible to offer individuals data throughput of up to
1 Gbit/s, which will increase to 10 Gbit/s through
equipment upgrades. At the end of 2018, Orange
calculated that 32.5 million homes around the world
were connectable to very high-speed broadband. We
provide broadband and very high-speed broadband
to 14 million homes in Spain and 12 million homes in
France through our fibre networks. In Slovakia, a total
of 467,000 homes now receive FTTH. At the end of
2018, we carried almost 70% of all the fibre optic
rolled out throughout the whole of France and signed
six new agreements for Public Initiative Networks with
local authorities. In Africa and the Middle East, fibre is
distributed in Jordan, Egypt, Côte d’Ivoire, Morocco,
Senegal and Mali. Still on the subject of very high-
speed broadband, but this time in space, in 2018,
Orange finalised an agreement with Eutelsat to offer
high quality internet access via satellite to all its
customers in Europe, especially people living in rural
areas.
4G for everyone
Orange consolidated its footprint in European
4G and 4G+ networks, increasing its coverage to
nearly 100% in certain countries like Belgium and
Poland. We are the leading operator in terms of
customers in seven of our eight operating countries in
Europe. In Slovakia, Orange 4G is available to 94% of
the population. We also signed an agreement with
the government and two other operators to provide
country-wide broadband coverage by 2020.
Orange offers the most widespread mobile coverage
in France, reaching 99% of the population via 3G+
and over 98% via 4G. By the end of 2019, we will
have finished upgrading almost all of our 3G radio
sites into 4G. In Africa and the Middle East, 4G has
outpaced 3G in terms of network data traffic
volumes, now totalling over 2 GB per month per
customer. 4G is currently used by nearly
17 million customers across 12 countries. By 2019,
Orange 4G covered 93% of the population in Egypt,
62% in Senegal and 50% in Botswana.
We will continue to roll out the network, primarily in
Burkina Faso and Sierra Leone. At the same time, we
have deployed a radio network in six countries in
Africa and the Middle East using Long-Term
Evolution-Time Division Duplex (LTE-TDD), a 4G
telecommunications technology, to bring fixed
internet connectivity to homes that are not connected
via ADSL or fibre.
56 million 4G customers
around the world
Our 4G coverage reaches an average of over 95% of Europe’s population
(99.8% in Poland - 99.7% in Belgium - 98.6% in France - 98% in Moldova -
96.9% in Spain - 96.9% in Romania - 94% in Slovakia).
30
“Our situation is rather unusual,
given that most of our people are
based out at sea. By improving
connectivity on our ships, the crews
can now access the internet more
easily, which facilitates business
communication but also helps them
to stay in touch with their friends
and family. That makes a huge
difference on board.”
—
René Kofod-Olsen
Chairman and Chief Executive Officer, Topaz
“To attract and retain a
hyperconnected audience,
the network has to work
flawlessly, even when you’re
three floors underground!”
—
Isabelle Hervouet
Director of Digital in Europe,
Unibail-Rodamco-Westfield
“Operators need to invest
heavily to extend
and improve network quality
and capacity
(4G, 5G, fibre, etc.).”
—
Alexandre Iatrides
Analyst at ODDO BHF Securities
No.1
69%
29
190
34,000
mobile network in France
for the 8th year running
in the ARCEP ranking
of fibre roll-out in France
completed by Orange
million
homes connectable to FTTH
in Europe
thousand kilometres
of fibre optic submarine cable
installed by Orange Marine
since 1985
employees
working solely on networks
throughout the world
32
Orange 2018 Integrated Annual Report
Convergence at the heart of our
strategy
In Europe, deploying our very high-speed broadband
has given us a competitive advantage in fixed/mobile
convergence – an area that we are already
spearheading with 10.9 million customers at
end-2018. The greater pace of growth in mobile
contract and fixed broadband customers was driven
by the success of our Love convergence offers on the
continent. In Poland for example, Orange Love is the
most popular package for homes, exceeding the
1 million customer mark in October 2018.
France heading towards full IP
Orange is currently upgrading its landline network in
France to better satisfy changing customer needs and
guarantee the highest possible quality of service.
Telephony services currently use the old fixed
switched telephone network (STN), but are
increasingly moving towards Internet Protocol (IP)
technology, which has emerged as a global standard.
Since the end of 2018, new fixed telephone lines have
been built using Voice over IP (VoIP) technology. The
STN will continue to run for all existing lines, with
gradual migration scheduled to begin around the end
of 2023.
Connectivity and operator services
Orange sells connectivity solutions to specialist
telephony providers, domestic and international
operators in the wholesale and retail markets as well
as content and internet service providers. In 2018, we
brought all these solutions together within a single
entity named Wholesale International Networks. Our
long-distance land, submarine and satellite network
infrastructure, as well as our local presence throughout
the world, enables us to offer connectivity to over
200 internet service providers serving end users in
over 220 countries. In 2018, in order to make internet
traffic routes more secure and meet ever-increasing
customer demand, we:
opened a single access point between Asia, the
Middle East and West Africa by connecting several
submarine cables via a new land connection
between Marseille and Penmarch in France;
signed an agreement to invest in the MainOne
submarine cable to boost growth in our fixed and
mobile services in Africa, especially in Côte d’Ivoire
and Senegal;
pooled our resources with Google for the new
Dunant submarine cable that will connect France to
the US and consolidate our position as market
leader on the international wholesale capacity
market;
finalised a partnership with PCCW Global to deploy
the PEACE submarine cable (Pakistan & East Africa
Connecting Europe), which will strengthen ties
between the world’s three most populated
continents, connecting Pakistan, Djibouti, Kenya,
Egypt and France.
In 2018, we celebrated 40 years of satellite
communications at Bercenay-en-Othe in France, a
strategic facility that provides connectivity services for
a wide range of business customers. We are also
developing enriched data and connectivity services
for operators. For example, Ethernet Now provides
bandwidth on demand for our wholesale customers,
allowing them to manage their Ethernet connections
via an online platform.
450,000 km
of submarine cable
Orange is a leading provider of intercontinental internet traffic and owns or co-owns
450,000 km of submarine cable throughout the world. That’s enough to wrap around
the Earth 10 times!
34
Unmatched customer
experience
—
The “customer-first” reflex
Our goal is to give our 264 million customers an
unmatched omni-channel experience combining
human and digital resources. Day in, day out, our
frontliners demonstrate ingenuity and commitment to
do just that in our stores, call centres, online, in our
offices and in our customers’ homes. We always aim
to further simplify our services, digitise customer
journeys and customise our responses. At the end
of 2018, Orange was the company the most likely to
be recommended by its customers in 15 out of
23 consolidated countries.
Round-the-clock customer service
with the My Orange app
Using their smartphones, our customers have a simple
way to contact us, safe in the knowledge that
someone is always available to help. This is what the
My Orange app provides for 18.5 million active users
across the world. Customers are empowered and
have the answers at their fingertips. The app allows
them to access important information such as their
data usage and contract details and upgrade or
change their tariff. Our customers in France can now
contact an advisor directly via live chat on the
My Orange app.
883 Smart Stores across
the world
Orange has opened Smart Stores in 16 countries
offering a combination of sales channels for a fluid
and seamless digital-physical experience. The
interactive points of sale, with shop floors ranging
from 20 m² to 1,000 m², offer customers innovative
services and digital support. To complement
our stores, we are continuing to develop an
omni-channel distribution experience with our digital
retail programme, deploying a multitude of initiatives
throughout the world including GPS store localisation,
online stock visibility, in-store collection and online
sign-up. In Jordan for example, the Sweifieh Smart
Store uses electronic price tags to save time and
money and reduce the risk of error. In Egypt,
employees are using multi-service tablets in around
20 stores.
The Chatbot and AI revolution
We are convinced that customer service is one of
our main competitive advantages, particularly with
the use of artificial intelligence and chatbot
technology. In 2018, we launched customer
relationship chatbots in Romania, Jordan and Poland
following the successful launches by Orange Bank in
France and our customer experience teams in Spain.
At Orange Bank, all customer requests made via
the mobile app are first processed by our virtual
assistant Djingo, which passes them on to an advisor
if necessary. Since it was launched, Djingo has had
over 1.5 million conversations with our customers.
Similarly, the chatbot on the Orange Spain app and
website handled around 125,000 conversations on
average per month. Altogether, Orange chatbots
engaged in almost 3 million conversations in 2018. In
2019, we are aiming for 8 million!
Orange 2018 Integrated Annual Report
7 times faster broadband
In 2018, we exceeded the objectives we had set for Essentials2020,
giving our customers smoother and faster internet access on both fixed and mobile
networks. Between 2014 and 2018, we multiplied average broadband
speed for fixed internet network users by seven and average speed across
mobile networks by three.
36
“To respond to changes in our
customers’ purchasing habits and
behaviours we have transformed
the way we develop our services.
We needed to maintain our
customer-first reflex, but also to
think ‘digital’. We have adapted
the Group’s Digital Ready training
programme to our needs here in
Senegal.”
—
Fatoumata Sene
Head of marketing and sales, Orange Senegal
“The support I received in
an Orange accessibility store
taught me to use a mobile phone
and the internet.”
—
Martine Hermans
Member of the charity Rétina France and a
visually impaired person
“An operator’s main source
of value is people. We have to build
relationships based on trust, both
with our employees and our
customers. Without loyal customers
and committed employees, you just
don’t have a business.”
—
Frédéric Colard
Director of Operations at Générale de téléphone
264
18.5
34%
883
78%
million
customers worldwide
million
active users of the My Orange
app, including 3.5 million
in Africa and the Middle East
increase in users
of the My Orange app in Africa
and the Middle East in 2018
Smart Stores Group-wide,
including 269 in France,
535 in Europe and 79 in Africa
and the Middle East
of requests submitted
to Djingo at Orange Spain
were resolved without
any human intervention
38
Orange 2018 Integrated Annual Report
Listening and responding to improve
customer experience
We have fully transformed the way we operate to
place the customer at the centre of our business
and to apply our listening and responding principle
across the Group. Our Essential Voices
programme challenges all employees, whatever
their role in the business, to place greater
importance on customer feedback. The
programme was developed through Group-wide
collaboration and, in 2018, shared best practice
feedback initiatives from Egypt, Spain and Poland
and Orange Business Services. For example,
Orange Business Services Egypt trained all
2,000 employees on how to document the
customer feedback collected in order to share it
across the company and follow up with concrete
actions. This focus on listening has a positive
impact on the customer journey. The AXiOM
programme, which was launched in 2016 and
adopted in all countries that provide Orange
Money services, has allowed us to analyse and
redesign the way customers use our mobile money
transfer and payment system. We put ourselves in
their position and acted on their feedback – for
example by making it easier to open an account and
enabling customers to deposit money anywhere and
at any time. AXiOM has also helped to bring down
the monthly cost of Orange Money-related calls on
the helpline in Mali and has halved the number of
calls to unlock PIN codes in Madagascar. The
listening and responding principle is applied across
the entire business to improve customer experience,
as testified in the “Customer Experience is
Everyone’s Responsibility” video series in which the
camera follows members of the Executive
Committee for a day in the life at Orange.
Analysing data to sharpen
customer insight
To provide an unmatched customer experience
tailored to the individual, we need to know who we are
talking to and understand the way they use our
services. That is what why we collect, process and
analyse customer data. Thanks to our Customer
Experience Management systems, our advisors have
access to information on network issues a customer
may have experienced such as telephone or data
service problems in a given area or past network
incidents. This information enables them to provide
personalised answers and advice and also helps our
marketing and technical departments make informed
decisions about where best to invest to improve the
customer experience.
Developing our skills
The importance we give to actively listening to our
customers and responding accordingly is embodied
by agile working practices and design thinking.
For example, 1,000 employees from Orange Business
Services completed the CX Makers customer
experience training programme. They receive support
from CX partners to integrate this priority right from
the project development stage (proposals, processes,
etc.). Similarly, to keep people at the centre of a
world undergoing widespread digital transformation,
Orange is looking to develop the interpersonal skills
of its employees. The Orange in Touch training
programme covers two main aspects of the
customer relationship: the mindset and how to do
and say things. More than 14,000 employees have
completed the programme in 15 of the Group’s
countries and businesses. In 2019, we will
concentrate efforts on training managers.
3 million
conversations
In 2018, customer relationship chatbots at Orange handled
3 million conversations. In 2019, we aim to reach 8 million.
40
A digital
and caring
employer
—
An employee experience
to match the customer experience
That is the digital and caring employer promise
Orange made to its 151,000 employees to ensure
that each individual feels fully engaged in the
shared ambitions of the Group. Delivering on our
promise means leveraging the appropriate
technology to accelerate progress in the workplace,
prioritising career development and ensuring
working conditions meet the everyday needs of our
employees. The promise demonstrates how we
place people unequivocally at the centre of our
business and requires each individual to be able to
see positive change in their daily lives.
A learning organisation
In 2017, we signed an agreement to champion
employee skills and qualifications. In keeping with
this, we’re continuing to develop the key skills we’ll
need for the future and enhance employability by
preparing people for shifts in their professions. This
will enable them to develop soft and hard skills
(listening and responding, using and securing
data etc.) and priority expertise (cybersecurity, data
and artificial intelligence) according to their needs
and activities. Orange Campus – the Group’s
training centre for managers – will open its doors to
all employees in 2019 to help everyone prepare for
their future workplace, helping them access training
in new professions and even receive certifications
or qualifications. The Group is also developing
new learning experiences by collaborating with
leading partners (schools, universities, businesses,
start-ups etc.) to deliver easy, permanent access
to e-learning via a range of mobile, immersive
and adaptive learning formats.
Collaboration
and collective agility
We want our workplaces to encourage
collaboration, collective agility and creativity. That’s
why we’re transforming our offices into modular
workspaces that promote new ways of working.
Opened in 2018, the Orange Business Services
offices in the La Défense business district near
Paris are a prime example, as is the new Orange
Spain head office, as well as programmes open to
start-ups and co-working solutions like La Villa
Bonne Nouvelle in the French capital. Plazza, our
corporate social network, is used regularly by one
in every two employees, which also helps to
stimulate a collaborative working environment and
break down barriers to information. The Oz
employee innovation programme offers employees
the opportunity to express their ideas and make
them a reality to improve the customer experience
or their own experience at work.
Listening to employees
and labour relations
We conducted our first Group-wide “Your
Employee Barometer” survey in 2017 to evaluate
the extent to which employees feel we are
respecting our digital and caring employer promise,
which helps to improve quality of life at work.
In 2018, over half of all employees took part in the
survey, and we collected more than 18,000 additional
comments. Furthermore, Orange employees in
France take part in a survey assessing working
conditions and psychosocial risk factors, which is
conducted once every three years. The Group also
continues to sign and renew agreements with trade
unions. In France, for example, the new
intergenerational agreement, which was signed in
2018 for the 2019-2021 period, includes measures
to recruit young people, help older employees
prepare for retirement and ensure knowledge
transfer.
Orange 2018 Integrated Annual Report
Top Employer Global
Orange was awarded Top Employer Global certification in February 2019
for the fourth year running. The certification recognises excellence
in the conditions that employers create for their people.
Orange is the only telecoms operator among the 14 Top Employers
in the Global category.
42
“To make equal opportunities
a reality, we need to talk more
about equality. We must lift the
censorship we impose on ourselves
and give young people the chance
to grasp the corporate culture and
the way things are done so they
can progress quicker.”
—
Amélie Kanagasabai
Orange Graduate Programme,
Deputy Manager Rouen Megastore
“The way workplaces are set up
is the tangible demonstration of
the employer’s commitment. The
office has become a stage for the
employee experience, a place where
they can engage and find fulfilment.”
—
Flore Pradère
Intelligence Manager and Business Development,
Offices for the Future JLL
“The things you learn at school
aren’t enough to take you through
your whole career. Everyone –
students, employees, entrepreneurs
and self-employed people – has to
keep learning and expanding their
knowledge every day.”
—
Carolina Diaz-Lönborg
Business Developer, Kokoroe
7%
11,000
> 6,000
87.8%
35,000
of the workforce
is made up of people with
disabilities (Orange SA)
external recruitments
on unlimited contracts across the
Group, including 3,200 in France
interns and work-study employees
joined the Orange group in France
of employees
say they are proud to work
at Orange
employees
took part in the Oz employee
innovation programme
44
44
Orange 2018 Integrated Annual Report
Diversity and gender equality
in the workplace
Orange has been committed to improving gender
equality in the workplace for over ten years.
Today, women account for 36% of the workforce. We
are concentrating on equal pay, work-life balance,
access for women to managerial positions and
gender balance at all levels and in all areas of the
business, particularly in more technical roles.
The fifth Gender Equality and Work-Life Balance
agreement for 2018-2020 was signed unanimously by
trade unions in 2018. All the Group’s operating
countries are working to promote diversity and gender
equality in the workplace. Five subsidiaries obtained
the Gender Equality European and International
Standard (GEEIS) in 2018, which brought the total
number of entities certified to 17. Stakeholder
dialogue for diversity and equality in the workplace
was also deployed in nine countries in 2018 including
Spain and Tunisia. Lastly, Poland launched
Razem.One at the end of 2018. The initiative aims to
raise awareness of the positive impact of gender
equality on business.
Promoting disability inclusion
In December 2018, we signed a partnership
agreement with the French national employment
agency Pôle emploi to promote the employment of
people with disabilities, who now account for 7% of
the workforce. Orange SA is committed to pursuing
its inclusion policy and recruiting 150 disabled
workers between 2017 and 2019. This commitment,
which is shared across the entire Group, was the
motivation behind many Orange subsidiaries and
sites taking part in the United Nations International
Day of Persons with Disabilities.
Equal opportunities and professional
integration
More than 800 employees at Orange are supporting
young people from underprivileged backgrounds into
the world of work. In France and Romania, the Capital
Filles initiative is helping hundreds of girls from
disadvantaged or rural areas find jobs. In France and
Morocco, the Article Un initiative is providing young
people from underprivileged backgrounds the
opportunity to access high-growth industries. In
France, we are also supporting the non-profit Energie
Jeunes to tackle the problem of school dropout rates
and have created the Nos Quartiers ont des Talents
initiative to help qualified young people from
disadvantaged areas into employment.
Recruiting tomorrow’s talent
Orange is deploying an increasing number of
innovative initiatives to recruit the talent that will
ensure the Group’s success for years to come.
In May 2018, we presented our services and diverse
range of career opportunities to the public, students,
partners and local authorities in 11 towns in France at
the Hello Jobs fair. In September 2018, we launched
our first social media recruitment campaign,
#LifeAtOrange, which encouraged our employees to
share the reasons they believed applicants should join
the Group. Lastly, Orange Middle East and Africa is
promoting its diversity policy with a programme
designed to attract and train employees and external
candidates with high potential for management
positions in the region. These initiatives are yielding
results because, for the third year running, Orange
topped the #HappyCandidates survey, which
measures overall satisfaction with the recruitment
process among more than 1,000 employees.
Bloomberg 2019 Gender
Equality Index
Orange is ranked among the 230 top performers for gender equality in the workplace.
46
Transforming
innovation
into progress
each day
—
Inclusive innovation
Orange takes a positive, human and responsible
approach to technology. We believe the digital
revolution brings a wealth of opportunity, as long as it
is inclusive and benefits both society as a whole and
the planet. That’s the only way it will achieve progress
for the entire population. All new products and
services have to be designed to be useful,
easy-to-use and accessible to all. People have to be
the focal point of any development. We have to take
future users into account right from the start and all
the way through to the end stages of everything we
do. Users should not have to adapt to technology; it’s
up to us to make it accessible.
IoT, AI, 5G – networks
and data driving meaningful
progress for people
Such innovation has fostered developments in many
parts of the digital sector. We strive to make
connectivity accessible in any place, at any time, in
particular by rolling out 5G. We aim to optimise and
enrich people’s digital experiences through the
Internet of Things (IoT), data and artificial intelligence
(AI). To achieve this goal, we structure our efforts
around three strategic areas of focus.
Maintaining standards of excellence in our core
technology, our networks, to offer users the best
possible connectivity, whether they are at home, on
the move or at work. We are conducting tests and
trials alongside our partners to prepare for the launch
of 5G in France and Europe. In 2019, we will move
into a pre-commercial phase to gradually roll out the
5G network in 17 cities throughout Europe
(particularly in France, Poland, Belgium, Luxembourg
and Romania), and as a pilot project in Spain. This will
allow thousands of customers to get a first taste of
5G technology.
Making customer relationships even more
practical and streamlined, through AI development.
Virtual assistants are powerful tools that enable us to
build unmatched customer relationships. At the same
time, we are applying breakthroughs in AI to redesign
the business of the future, network management and
mobile banking.
Putting together an offering that makes sense for
our customers, with easy-to-use and effective
communication services – such as those used in
connected homes, smart cities and autonomous
vehicles – and services to businesses that leverage
IoT and Networks as a Service (NaaS).
Influential innovation
Orange has a role to play in the digital and technology
race, in particular by taking part in global
organisations such as the GSMA (the trade body that
represents the interest of mobile operators), where we
spearhead matters relating to interoperability and
identity. The Group is also involved in deploying
ambitious and fast-paced European innovation
policies for ongoing digital development, which has
led to a number of highly productive research
collaborations. The smart speaker Djingo developed
with Deutsche Telekom as part of the European AI
Alliance is a great example of such collaboration.
Combining local agility and global
strength
On a global scale, the strength of the Group gives its
entities access to resources, skills and expertise for
making informed decisions, especially when it comes
to technological choices. Our international status
enables our entities to access the partnerships
established with global giants such as Google,
Facebook and Amazon. Our approach to innovation
meets the needs that are emerging locally within our
operating countries and adapts to issues being raised
in local markets and regional economies.
Orange 2018 Integrated Annual Report
Inclusive innovation
Orange’s answer to the risk of digital exclusion –
to the high-tech gadgets that only a select few can afford –
is inclusive innovation.
This inclusion is native to our innovation in every area:
IoT, artificial intelligence and even networks.
48
Orange 2018 Integrated Annual Report
Integrated research
Research at Orange into disruptive technologies,
new usages and alternative economic models is
shaping the future. Our researchers, working
closely with our own innovators and innovation
communities, are cultivating strategic assets in the
form of skills, intellectual property, standards and
partnerships. This was the framework for our
integrated research in 2018. We were involved in
over 50 projects in France and Europe, including
the AI4EU initiative that unifies Europe’s artificial
intelligence community. We are also taking part in
the European 5G Infrastructure public-private
partnership, which in 2018 launched 5G-CroCo,
a collaborative pan-European project to trial
5G technologies for connected and autonomous
vehicles on motorways.
640 researchers including 140 at doctorate
or post-doctorate level
222 patents filed in 2018
Identified as a Key Innovator by the European
Commission’s Innovation Radar
Winner of two Gold Awards at the fourth
annual Trophées du Droit (intellectual
property)
Accessibility to facilitate
communication for all
One of our top priorities is to design ways for people
to communicate, along with new interfaces that
improve access to digital technologies. We are
committed to enabling digital inclusion for elderly and
disabled people and develop products and services
for the common good. For example the Dot Watch, a
connected watch designed for people with visual
impairments, receives and displays messages and
notifications from a great many applications through a
braille interface.
Spaces and resources to innovate
together
Orange believes that innovation is most effective
when the people who will use it are involved in its
development. In 2018, Orange Business Services
opened a space in its new offices, the Digital
Customer Innovation Centre, dedicated to
collaborative development with customers,
businesses, start-ups and partners. Orange technical
engineers facilitate product and service development
through the Orange Developer programme.
60 application programming interfaces (APIs)
3,000 developers using our APIs each month
Our start-up ecosystem
The Group aims to support 500 start-ups around the
world between now and 2020 through programmes
tailored to their stage of maturity, from the early days
to scaling up through to maturity. We help them
through a variety of programmes, such as the Orange
Fab France start-up accelerator, hackathons and the
Orange Social Entrepreneur Prize Africa and Middle
East, which recognises start-up projects that help
improve the living conditions of local people through
digital. Our corporate fund, Orange Digital Ventures,
invests in around 20 start-ups that have reached
maturity. In 2018, the African branch, Orange Digital
Ventures Africa, selected Africa’s Talking and Yoco to
make its first-ever investments. Within the Group,
Orange offers its employees the possibility of
expressing their entrepreneurial flair by creating
spin-offs or within the Intrapreneurs Studio.
16 countries in which the Orange Fab network is
present throughout the world
First class of graduates from the Women Start
programme run by Orange Fab France in 2018
Over €430 million raised for start-ups backed by
Orange Digital Ventures
€700 million invested
in research and innovation
At 31 December 2018, we held a portfolio of almost 7,000 patents in France
and around the world.
50
Highlights
—
Business
Three strategic
acquisitions in data,
cloud and healthcare
technology
Mobile financial
services
All-mobile personal
loans from Orange
Bank
Content
OCS turns 10!
Orange Business Services has
strengthened its expertise in
data analytics and governance
through the Business & Decision
acquisition. Basefarm has
solidified our strategic position in
the cloud market with
cutting-edge technologies to
manage critical applications and
data analysis, big data and
multi-cloud services. While
Enovacom has enhanced Orange
Healthcare’s range of solutions for
IT system interoperability and
security.
Orange Bank has expanded its
product range with a pioneering
personal loan solution. Customers
can now apply for a loan using the
mobile app and release the funds
whenever they wish up to six
months after their request is
approved. This deal is a first on
the market – and another example
of the innovative, simple and
helpful services we provide for
everyone.
Happy anniversary, OCS! Over
the past decade, it has grown into
a key player in France’s
audiovisual landscape, and
almost 3 million customers now
enjoy its four channels (OCS Max,
OCS City, OCS Choc and OCS
Géants). Such success is down to
the care we take to provide
subscribers with unmatched
content through high profile
partnerships with HBO and
Netflix.
Orange 2018 Integrated Annual Report
Orange Wholesale
& International Networks
is up and running
In 2018, this new division was created to develop our wholesale business
in France and around the world, supporting growth in our BtoC and BtoB
activities, and building network infrastructure with a view to cementing our
strategic position among the world’s leading operators.
52
Highlights
—
Africa
Solar power from
Orange Energy
Networks
Orange is
number one for
fibre in Europe
Partnership
Alongside
the World Cup
winners
Access to energy is one of the
essential needs we are looking to
meet in Africa. By the end of 2018,
Orange Energy kits for homes and
businesses were available in
seven countries (Burkina Faso,
Côte d’Ivoire, Democratic
Republic of the Congo, Guinea,
Madagascar, Mali and Senegal).
These portable systems are a
sustainable source of energy that
everyone can use. Orange Energy
won the AfricaCom award for the
most innovative service in
November 2018.
We continued to roll out our fibre
network at a very brisk pace in
2018. We now have more than
29 million FTTH-connectable
homes in Europe, ranking us in
first place for the third year
running. Our business results
have also hit a record high with
almost 600,000 net sales in
France, 623,000 in Spain and
152,000 in Poland.
In May 2018, Orange became a
prime partner to the Fédération
Française de Football for a
four-year period. So we were
alongside the French national
team, every step of the way to
ultimate victory, at 2018 FIFA
World Cup Russia™. We are also
National Supporter of FIFA
Women’s World Cup France
2019™, and partner of the
Confederation of African Football
since 2008 and until 2024.
Orange 2018 Integrated Annual Report
Road safety
Orange is helping to keep its customers safe with advice on how to use
their phone responsibly on the road. Our television and cinema campaign,
Vous Rapprocher de l’Essentiel (“It’s all about what matters to you”) in France and seven
other countries using the hashtag #LaBonneConduite (meaning driving safely)
raised awareness of the dangers associated with using phones while
driving, riding and walking.
54
2018 financial
results
—
2018 was marked by accelerating growth in
revenues and adjusted EBITDA, up for the third
consecutive year. This progression, along with
excellent commercial performance across all of
our geographic regions, confirmed our strategic
focus on fibre, 4G and convergence has been
effective.
Revenues
Orange Group revenues totalled €41.4 billion in 2018,
an increase of 1.3% compared with 2017. In Africa
and the Middle East, revenues rose by 5.1%. Driven
by convergence, revenues progressed in Spain
by 2.2%, in Europe by 1.7% and in France by 0.9%.
Revenues from bundled services, which were
deployed across all European countries, grew 10%
in 2018, consolidating our position as the leading
operator for convergence in Europe. Revenues from
IT and integration services accelerated sharply
(up 7.2%), driven by cloud and cyberdefense revenues
in the Enterprise market.
Adjusted EBITDA and CAPEX
In 2018, Orange recorded adjusted EBITDA of
€13 billion, a 2.7% improvement on 2017 as a result of
the Group’s growing revenues and cost savings made
under our operational efficiency plan. Between 2015
and 2018, the plan achieved gross savings of
€3.5 billion. The Group’s capital expenditure (CAPEX)
increased by 3.5% in 2018 to €7.4 billion. Investment
was channelled mainly into the deployment of fibre
and mobile services.
This growth was due to a €51-million rise in operating
income and a €353-million improvement in net finance
costs, despite a €257-million rise in corporate income
tax eroding part of this income.
Net financial debt
The Group’s net financial debt equalled €25.4 billion at
the end of 2018, which was €1.6 billion more than the
previous year as a result of our strategy to invest in
developing very high-speed broadband networks and
transforming the services we offer to businesses.
The ratio of net financial debt to adjusted EBITDA from
telecoms activities was 1.93×. This is in line with
our medium-term objective to maintain a ratio of
around 2×.
Dividend
The Board of Directors confirmed the payment of a
€0.70 per share dividend for the 2018 financial year.*
The Board will propose the same amount for the 2019
financial year.
2019 Outlook
The implementation of IFRS 16, which is applicable
from 2019, has prompted us to review our indicators.
Adjusted EBITDA will become EBITDAaL (“after lease”)
and CAPEX will become eCAPEX (economic CAPEX).
The application of the standard does not change the
commitments communicated at the Investor Day in
December 2017.
2019 EBITDAaL growth will be slightly slower than
2018 on a comparable basis due to competitive
markets, particularly in France and Spain, and
losses in online press services and audiobooks.
2019 eCAPEX will be down slightly on 2018 CAPEX
on a comparable basis.
Operating cash flow in 2019 will exceed that
achieved in 2018 on a comparable basis.
The target ratio of net debt** to EBITDAaL for
telecoms activities will remain at around 2× in the
medium term.
Net income
In 2018, Orange’s consolidated net income totalled
€2.2 billion, €118 million more than the previous year.
Percentage differences are expressed on a comparable basis
* Subject to the approval of the Annual Shareholders’ Meeting
** Excluding IFRS 16 leases
Orange 2018 Integrated Annual Report
€41.4
€13
€2.2
17.9%
€5.6
billion
consolidated revenues
billion
adjusted EBITDA
billion
consolidated net income
investment in telecoms
as a percentage of consolidated
revenues
billion
operating cash flow
56
Key Performance
Indicators
Annual data
In millions of euros
Revenues
Of which:
France
Spain
Europe
Africa & Middle East
Enterprises
International Carriers & Shared Services
Intra-Group eliminations
Adjusted EBITDA*
Of which telecom activities
As % of revenues
France
Spain
Europe
Africa & Middle East
Enterprises
International Carriers & Shared Services
Of which Orange Bank
Operating income
Of which telecom activities
Of which Orange Bank
Consolidated net income
Net income attributable to equity owners of the Group
CAPEX (excluding licences)
Of which telecom activities
As % of revenues
Of which Orange Bank
Operating cash flow
2018
2017
comparable
basis
2017
historical
basis
Change
comparable
basis
Change
historical
basis
41,381
40,837
40,859
1.3%
1.3%
18,211
5,349
5,687
5,190
7,292
1,534
(1,882)
13,005
13,151
31.8%
7,076
1,700
1,508
1,667
1,245
(45)
(147)
4,829
4,997
(169)
2,158
1,954
7,442
7,406
17.9%
36
5,563
18,048
5,232
5,593
4,940
7,308
1,633
(1,917)
12,660
12,721
31.2%
6,879
1,568
1,460
1,585
1,306
(77)
(62)
7,191
7,131
17.5%
60
5,469
18,046
5,231
5,578
5,030
7,251
1,651
(1,928)
12,680
12,741
31.2%
6,878
1,567
1,456
1,612
1,306
(78)
(62)
4,778
4,870
(93)
2,040
1,843
7,209
7,148
17.5%
61
5,471
0.9%
2.2%
1.7%
5.1%
(0.2)%
(6.1)%
-
2.7%
3.4%
0.6 pts
2.9%
8.4%
3.3%
5.2%
(4.7)%
39.7%
(136.3)%
3.5%
3.9%
0.4 pts
(40.4)%
1.7%
0.9%
2.3%
2.0%
3.2%
0.6%
(7.1)%
-
2.6%
3.2%
0.6 pts
2.9%
8.5%
3.6%
3.4%
(4.6)%
40.6%
(136.3)%
1.1%
2.6%
(80.9)%
5.8%
6.0%
3.2%
3.6%
0.4 pts
(40.4)%
1.7%
Net financial debt
Ratio “net financial debt/Adjusted EBITDA
for telecom activities”
31 December 2018
31 December 2017
25,441
1.93×
23,843
1.87×
Consolidated revenues
France
Spain
Europe
Africa & Middle East
Enterprises
International Carriers & Shared Services
Share performance in 2018
Total shareholder return*
42.6%
12.8%
13.5%
12%
16.7%
2.4%
110.00
105.00
100.00
95.00
90.00
85.00
80.00
Dec
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
Jun
2018
July
2018
Aug
2018
Sept
2018
Oct
2018
Nov
2018
Dec
2018
Share price at 31/12/2018 - €14.16
France CAC 40
Orange
Stoxx Europe 600 Telecom
*Base 100: 1 January 2018 (dividends reinvested)
58
2018 non-financial results
—
Non-financial criteria are vital to long-term performance. That’s why Orange places corporate social
responsibility at the heart of its strategy and takes into account the impacts of its operations on
employees, society and the environment. Orange also ensures that human rights are protected not only
internally, but also externally by customers and suppliers.
Human rights
Orange was one of the first companies to sign the
United Nations Global Compact in 2000 and it actively
strives to promote human rights and labour standards,
protect the environment and fight corruption. We have
made strong commitments with our trade unions to
protect the fundamental rights of employees in all our
operating countries. As we are well aware, we have a
responsibility to ensure everyone within our sphere of
influence – suppliers and service providers in particular
– complies with our high standards, and as such we
were a founding member of the Joint Audit
Cooperation (JAC) initiative. The initiative brings
together 16 telecoms operators to monitor, assess
and develop CSR implementation throughout the
telecoms supply chain. Lastly, to address growing
concerns over freedom of expression and internet
privacy, we are part of the Global Network Initiative,
which aims to protect online privacy in a context of
growing surveillance.
Employees
In 2018, we hired 11,152 people on unlimited
contracts, 12% more than the previous year. At
year-end, the Group had 150,711 active employees,
with 147,123 on unlimited contracts and 3,588 on
temporary contracts. With 4,887 people on
work-study contracts in France in 2018, we are also
supporting the professional integration of young
people. Our diversity policy is in line with in our digital
and caring employer promise. Gender equality,
disability inclusion and equal opportunities are
priorities across all our entities.
Society
Digital technologies are a strong driver of social
and regional development. At Orange, we are
expanding our network coverage, but also working
to overcome the digital divide often created by age,
vulnerability and disability. We also support
entrepreneurs in all our operating countries and
subsidiaries, particularly through our Orange Fab
network that comprises 16 start-up accelerators
across four continents. Lastly, our connectivity
solutions enable us to deliver essential services in
finance, energy access, agriculture, health and
online education.
The environment
We are reducing the environmental impact of our
products and services across their entire life cycle
by integrating the circular economy in all our
processes and operations. By 2020, we aim to
collect 30% of unwanted mobiles from customers
in Europe. In 2018, we reached 15.4%, which took
the total number of mobiles collected since 2010 to
13 million. We are also working to minimise the
impact of our networks and IT systems that
represent 82.1% of our energy use and 80.2% of
CO2 emissions.
The Green ITN 2020 programme, which has been
deployed across most of our operating countries,
has slowed the growth of our energy consumption
(Scope 1 and 2) to 0.45% compared with 2017
levels, despite a continuing rise in usages (4% in
the most representative countries).
Orange 2018 Integrated Annual Report
29.8%
120
≈500
83.3%
116
of women
in management networks
(executive and leadership)
Chief Compliance Officers
and Compliance Officers
and 70 Ethics Advisors
and Coordinators
start-ups
supported by Orange
programmes
Group waste recovery rate in 2018,
up 1.2 points on 2017
CSR audits
carried out in 2018 under
the Joint Audit Cooperation
60
60
Environmental performance
Employee distribution
Environmental performance
(energy)
Units
2018
2017
2016
Facilities presenting a risk
Fuel tank units
Energy consumption – Scope 1
Fuel oil (all buildings and all uses)
Gas
Coal
Gasoline-LPG for company cars
Diesel for company vehicles
Total Energy Scope 1
CO2 emissions from fuel oil, gas and coal
CO2 emissions from vehicles
Scope 1 CO2 emissions (energy only)
CO2 emissions from greenhouse gases
(refrigerants)
CO2 not emitted due to carbon mitigation
Scope 1 CO2 emissions
Energy consumption – Scope 2
Electricity
Of which green energy
Scope 2 CO2 emissions
Total CO2 emissions (Scope 1 + Scope 2)
Energy consumption – Scope 3
Distance travelled by plane
Distance travelled by train
Scope 3 CO2 emissions
Total CO2 emissions (Scope 1 + 2 + 3)
France(1)
Rest of the
world
Group
Values
Group
Values
Group
Values
units
1,886
2,369
4,255
4,228
5,150
m³
m³
tonnes
litres
litres
GWh
tonnes CO2
tonnes CO2
tonnes CO2
tonnes CO2e
tonnes CO2e
tonnes CO2
GWh
GWh
tonnes CO2
tonnes CO2
km
km
tonnes CO2
tonnes CO2
14,867
16,312,785
NA
2,117,244
19,336,065
556
72,545
58,213
130,758
52,064
56
3,880,188
66,931
3,682,356 19,995,141
56
5,997,432
10,706,507 30,042,572
*1,340
219,321
96,891
316,212
784
146,776
38,678
185,454
72,163
17,884,871
71
3,408,576
31,845,400
1,373
229,349
95,687
325,036
68,219
20,237,227
52
3,963,869
32,569,408
1,365
223,045
99,000
322,045
0
0
130,758
17,478
(2,229)
200,703
17,478
(2,229)
*331,461
6,723
(2,154)
329,606
5,516
(2,185)
325,376
2,190
0
100,732
231,491
2,168
526
942,411
1,143,114
*4,357
526
*1,043,144
1,374,605
4,299
493
1,001,900
1,331,506
4,523
451
1,094,090
1,419,466
155,693,541
78,416,014
28,770
90,870,556 246,564,097 250,765,793 253,654,993
94,097,363 106,460,338
12,617,816 91,033,830
47,517
*46,170
47,041
17,401
260,261
1,160,515 *1,420,775
1,378,547
1,466,983
NA: non applicable.
As the values have been rounded to the nearest million, Group data may not represent the sum exact of the data published for France
and the Rest of the World.
(1) Data for France includes Orange France, head office, Orange Marine and entities of Orange Business Services operating in France.
* Data reviewed by KPMG: reasonable assurance.
Employees by business line
Customers
Innovation
Support departments
Content & multimedia
IT systems
Networks
Others
Employees by geographical area
France
Spain
Poland
Other European countries
Africa
Asia-Pacific
Americas
Gender equality in the workplace
% of women in the active workforce
% of women in managerial positions
% of women in management networks
2018
49.7%
2.4%
13.3%
0.3%
9.7%
22.5%
2.1%
2018
60.9%
3.8%
9.0%
8.3%
11.6%
4.0%
2.4%
2018
36.1%
30.6%
29.8%
2017
49.3%
2.4%
13.6%
0.4%
9.4%
23.4%
1.5%
2017
62.1%
3.6%
9.9%
7.3%
11.2%
3.7%
2.2%
2017
36.1%
29.9%
28.5%
2016
48.9%
2.3%
13.1%
0.4%
9.1%
23.9%
2.3%
2016
62.9%
3.4%
10.3%
6.8%
10.7%
3.5%
2.4%
2016
36.1%
29.4%
27.3%
62
Performance
in 2018
—
France
Orange France generated revenues of €18.2 billion in
2018 (up 0.9%*), posting growth for the second year
running. This performance, which represented 42.6%
of the Group’s consolidated revenues, was driven by
the success of our convergence services, which grew
by 10.2%.* The convergence customer base in
France also rose to 6.1 million, up 2.6% on the
previous year.
The Group is leading the high-speed and very
high-speed fixed and mobile broadband markets.
Orange was the first operator to have invested
massively in fibre, and it continues to accelerate the
roll-out of very high-speed broadband. At the end of
2018, we had 2.6 million FTTH customers (up 29.7%
year on year), with growth concentrated mainly in rural
areas and public initiative networks. In 2018, we
signed six new agreements with local authorities to
operate fibre optic networks.
While subscriber numbers continued to rise,
downward price pressure accentuated competition in
the mobile market. This resulted in a 2.6%* drop in
revenues despite a rise in net sales for both the
Orange and Sosh brands. We continued to roll out 4G
in 2018, achieving network coverage of 98.6% (2.7
points higher than the previous year). For the eighth
year running, the French telecoms regulator ARCEP
ranked our 4G network as the best in France. It is the
scale of this network investment that sets us apart
from our competitors, totalling €9 billion between
2015 and 2018.
EBITDA in France grew for the fourth year running
to reach €7 billion (up 2.9%*).
In October 2018, Orange launched a new HD TV
set-top box that delivers high definition content.
The box is ultra-compact, and its recycled plastic
case, sustainable cardboard packaging and small
size illustrate our approach to eco-design,
optimising material use and transport. It is also
designed to be easy to refurbish and recycle,
thereby halving its carbon footprint.
Europe
Orange operates in seven European countries
outside France generating total revenues of over €11
billion. We have almost 50 million mobile customers
in the region (up 1.7% year on year), and 7.4 million
fixed broadband customers (up 4.4% year on year).
Underpinning this strong performance are the
ongoing rollout of very high-speed mobile and fixed
broadband, the introduction of new offers and our
convergence strategy. Orange’s convergence
customer base now stands at 4.8 million, 9.6%
higher than in 2017.
Revenues in Spain, where we have operated for
20 years, grew by 2.2%* to €5.3 billion. Our multi-
brand strategy, coupled with a strong focus on
convergence packages and the rollout of cutting-
edge networks continued to yield excellent results.
Despite persistently aggressive pricing, adjusted
*Change on a comparable basis
Orange 2018 Integrated Annual Report
A new eco-design
set-top box
In France, Orange has launched a new TV HD set-top box that delivers high-definition
content. The ultra-compact box is designed to be easy to repair and recycle,
thereby halving its carbon footprint.
64
Orange 2018 Integrated Annual Report
The number of very high-speed broadband
customers grew by 27.6% to nearly 2.9 million,
driven by national and international football-themed
TV packages and excellent net sales in fibre. The
Orange FTTH (Fibre to the Home) customer base
was the fastest growing on the market. We launched
Orange Series, which holds exclusive broadcast
rights to a range of series, some in 4K. We also
signed new agreements to further enhance our offers
in content, for example with the FlixOlé platform.
Adjusted EBITDA rose substantially by 8.4%* to
reach €1.7 billion.
In Poland, where Orange celebrated 20 years of
service, 1.2 million customers had signed up to the
Love mobile, TV and internet package, up around
20% on 2017. We continued rolling out our FTTH
network, with nearly 3.4 million homes now
fibre-ready. Revenues were back on the rise in the
last two quarters of 2018 based largely on mobile
services, equipment sales and electricity sales
through Orange Energia.
In Belgium, we enriched our convergence package
with TV content via the Orange TV app. With Love
internet and TV, the Group is now the first operator
in Belgium to offer a cable package to customers
across the country. In Luxembourg, Love now
includes a 1Gbit/s high-speed fibre package and an
LTE fixed Home Box package.
In Central Europe, Orange Romania won several
awards in 2018 for network quality and has
extended 4G coverage to 96.9% of the country,
3.6 points higher than the previous year. We are
also leading the field in innovation, ground testing
the first 5G network in Europe in Cluj and launching
Alex, the only chatbot on the Romanian market. In
Slovakia, we concentrated on expanding
high-speed broadband coverage, particularly via
the FTTH network with 467,000 fibre-ready homes,
while continuing to develop our 4G network.
In Moldova, the Group focused on developing fixed
services and convergence packages and confirmed
its leadership in the mobile market.
Africa and the Middle East
Orange operates in 17 countries in Africa and the
Middle East, 19 including joint ventures. The Group
is present on mobile markets, except in Senegal,
Côte d’Ivoire, Jordan and Morocco where it also
delivers fixed broadband and landline telephone
services to nearly 123 million customers. One in
every ten people in Africa is an Orange customer.
With revenues of €5.2 billion in 2018, up 5.1% on a
comparable basis, Orange consolidated a return to
growth for the second year running. Driving this
performance were robust sales in mobile services,
particularly Orange Money and data, which rose by
7.6% in 2018 and accounted for 73% of revenues.
Growth in the region was largely boosted by the
development of data usage, made possible by the
rollout of 4G in 12 countries in the region,
connecting 16.7 million customers, and the
deployment of fibre networks in six countries.
*Change on a comparable basis
of revenues in Europe
(excluding France)
retail convergence
customers in Europe
(excluding France)
€11 billion
4.8 million
122.6 million
2 billion
1 person in 10 in Africa
is an Orange customer
transactions completed
via Orange Money
mobile customers in Africa and the
Middle East, including
16.7 million 4G customers
66
Orange 2018 Integrated Annual Report
Orange invests €1 billion each year in networks in
Africa and the Middle East. Orange Money, the
mobile financial service that was launched in 2008,
contributed significantly to the Group’s
performance. The service is available in 15
countries in Africa and has 15.1 million active
customers, up 35% and generating almost 2 billion
transactions in 2018. New initiatives in the region
accounted for a third of this growth. Revenues in
Egypt and Morocco grew in 2018 by 8.7% and
4.1%, respectively. Côte d’Ivoire also returned to
growth, with revenues up 1.8% in the fourth
quarter.
Our ambition is to be a multi-service operator and
key partner in our operating countries as
businesses in Africa and the Middle East enter the
digital age. Already established among the region’s
leading telecoms operators, Orange aims to meet
the population’s essential needs in financial
services, education, agriculture, health and energy.
Enterprises
Year-on-year growth remained relatively flat for
Enterprises, which recorded revenues of €7.3 billion
in 2018 (down 0.2%), with a 1.2%* increase on
2017 figures in the fourth quarter. Conventional
telephony and data services dropped 2.4%,* as did
annual revenues from mobile services (2.3%),*
however performance bounced back in the fourth
quarter of 2018, with a 2.5% improvement on the
same period in the previous year.
cyberdefense and the cloud, which rose by 12%
and 10%, respectively. In 2018, Orange confirmed
its leadership position in SD-WAN networks when it
signed a major agreement with Siemens. Nova
Veolia and its subsidiary Birdz also chose to place
their trust in Orange Business Services to support
their move to digitise Veolia’s remote smart
watermeter reading services in France. We also
signed a contract with Enedis to manage and
improve the security of their wide area network.
Furthermore, we continued to pursue our strategy to
diversify into new services when in early 2019 we
acquired the UK-based company SecureData in an
effort to become one of Europe’s leading
cybersecurity providers.
International Carriers & Shared
Services
International Carriers & Shared Services generated
revenues of €1.5 billion in 2018. The 6.1%* drop
(down 2.7%* in the fourth quarter) reflected the
slowdown in international carrier voice services to
Africa and Maghreb. CAPEX rose by 11.9% due, in
part, to increasing investment in submarine cables,
including the Kanawa cable that connects French
Guiana, Martinique and Guadeloupe. In broadband
and data transmission services, Orange has
deployed new points of presence (PoPs), particularly
in Romania, to expand broadband coverage and
enhance connection speed and security.
Revenues from IT and integration services were up
by 4.8%,* spurred on by strong growth drivers like
*Change on a comparable basis
Cybersecurity:
Orange invests in Morphisec
Orange Digital Ventures is investing in the start-up Morphisec in order to promote
the development of proactive and simple solutions to emerging digital threats. The
Morphisec solution will be rolled out in certain Orange
operating countries to protect network security.
Part II
Our choices for
a better
tomorrow
Our leadership in terms of connectivity forms
the foundation for our multi-service operator strategy.
By developing networks, guiding businesses through their digital
transformation and scaling up mobile financial services,
content and smart services for everyday living, we are reinforcing
our ability to create value in the years to come.
70
Working to develop digital
inclusion and responsible uses
—
In a world where new technologies are becoming more prevalent each day, limited internet access
and e-illiteracy create a form of exclusion. As the range of uses increases, additional support is required
to avoid people falling victim to excessive use and addiction. At Orange, we’re doing our bit to improve
accessibility and make it safer to use digital technologies.
Empowering people through inclusion
Digital technologies can contribute significantly to
individual and collective transformation, provided
they are accessible and controlled. Orange has
developed a number of initiatives to widen access,
empower people through acquiring useful skills and
promote a safe and worry-free digital experience in
our operating countries. We offer a broad range of
digital applications that benefit all individuals in their
daily lives. It was these deep-rooted beliefs that
drove us to launch Orange Money inclusive financial
services in Africa ten years ago. Today, millions of
people excluded from the banking system are able to
make transactions using their mobile phones.
Stakeholder dialogue
and collaborative exchange
for more effective action
As part of our stakeholder dialogue, we launched a
consultation in France in 2018 on Vulnerability and
Digital Technologies (Précarité et numérique).
We measured expectations and put in place concrete
actions such as developing an offering for the most
vulnerable people. Inclusion is also one of the 13
topics covered by the cross-sector Digital Society
Forum, created by the Group to bring together
experts, businesses, charities and individuals to
explore the impact of digital technology on society.
Universal connectivity
To ensure that everyone can enjoy the benefits of
digital technology, Orange continues to develop
regional coverage and connect up the most isolated
areas. One example is the Public Initiative Networks
scheme to bring broadband to rural areas in France.
We are also extending and improving the quality of
our global internet network by investing in
450,000 kilometres of submarine cable. Through
inclusive design, we are developing products and
services that are as intuitive and accessible as
possible to meet the needs of the elderly and
people with disabilities. Our Autonomy programme,
which is unique in Europe, and run through
259 Autonomy-certified stores in France, brings
accessibility into the 21st century by developing
dedicated services, training advisors and adapting
the distribution network.
In 2018, Orange Spain launched Serena, an
emergency remote assistance service for the
elderly that can be accessed through an app or via
a button on the handset. Orange Polska runs tech
workshops and helps elderly customers master
digital technologies throughout the year. Lastly, we
have signed the French digital inclusion charter and
channelled funds into a number of programmes
including a government initiative to improve access
to training for the digitally excluded.
Orange 2018 Integrated Annual Report
One in two people
have no access to
the internet
We are expanding our network coverage, supporting
education and training initiatives and developing digital
services to address essential universal needs in all our
operating countries.
72
Offering essential services adapted
to the needs of users
Digital technologies are being used as the basis
for a growing number of initiatives in areas such as
health or agriculture. Orange Egypt launched the
M-Diabetes mobile app in 2014 in collaboration with
the health and telecommunications ministries and the
International Telecommunication Union to help
combat diabetes and high blood pressure.
In April 2018, a web and mobile-based platform called
M-Makity was made available in Guinea to enable
farmers to access advice, monitor prices and buy and
sell products among themselves. The m-Women
programme offers mobile services to empower
women, addressing their essential needs in
agriculture, health, education and personal finance.
Using digital technology in education,
training and professional integration
Five years ago, the Orange Foundation launched its
Digital Schools programme in 12 countries in Africa.
More than 130,000 children can now access core
educational content using tablets. #SuperCoder
workshops that initiate young people to coding have
been deployed in 20 countries with the support of
Orange employees who have coached more than
10,000 young people since 2014. Through the Grande
école numérique africaine programme launched this
year, we are going further to promote the
development of digital skills in Africa. Two initiatives
have been rolled out so far — the Sonatel Academy,
the first free coding school in Senegal for
18- to 30-year olds and the Orange Developer Centre
in Tunisia, which is also free and teaches young
people software development. We are also helping
children with autism to communicate better by
designing tablet-based learning tools. And lastly, the
Orange Foundation uses digital technology to
empower unqualified young people and women
looking to break out of long-term unemployment to
access work.
532 schools in Africa have received interactive
educational kits since 2014
Promoting digital solidarity
Employees can sponsor people, volunteer or share
their skills. In 2018, three programmes — Digital
Centres for vulnerable women, Solidarity FabLabs
and Local Missions for young people in difficulty —
trained nearly 60,000 people across the world.
700 skills-based volunteering missions in 2018
Supporting safe and worry-free
digital usage
The misuse of digital technologies can result in
abusive practices and negative consequences,
particularly for teenagers. Orange offers technical
solutions such as parental control and special
children’s tariffs, and provides information for both
young people and their parents. Orange France has
created the website Bien vivre le digital (making digital
technology work for you), which presents advice and
best practice for digital technology. Orange Spain set
up a similar initiative in 2018 called FamilyON, which
promotes the safe and responsible use of technology,
encourages parents and children to talk to each other
and helps families develop digital skills.
Orange 2018 Integrated Annual Report
8,000 employees
voluntarily support the
Orange Foundation
8,000 employees, working with the Orange Foundation,
take part in training, mentoring and promoting inclusion of young
people and the most vulnerable across 30 countries.
74
Investing
and innovating
in networks
—
Orange wants to offer the most advanced
connectivity to its customers anytime, anywhere.
We are now the leading operator in seven of our
eight European operating countries, a position
we’re aiming to maintain with our 5G network.
We are also looking to offer smooth and enriched
digital experiences via network virtualisation, the
Internet of Things, artificial intelligence and data.
Leading the European
market in 5G
5G will make new video formats (4K, 8K and 360°)
more accessible and promote new experiences
using virtual, augmented and mixed reality, for
instance. It will enable new everyday applications
across all sectors of the economy and smart cities.
It also offers an alternative way for people to access
very high-speed internet in countries where fibre
infrastructure is not widespread. Throughout Europe,
Orange trialled a number of real-life usage scenarios
to demonstrate the way in which this technology will
completely revolutionise the customer experience.
In 2018, we conducted an initial field test alongside
Samsung and Cisco for very high-speed internet in
the home via 5G to complement existing fibre in
Romania.
In partnership with Ericsson and the vehicle testing
group UTAC CERAM, we also trialled 5G in smart
and autonomous vehicles. At the same time, Orange
opened its 5G Lab to its partners so they could test
their products and services. In addition, Orange
Polska and Orange France successfully trialled the
first commercial 5G base station to verify equipment
capacity and integration into the network. 5G will be
gradually rolled out across existing 4G radio sites so
that it will eventually be operational in 17 cities
around Europe in 2019, including in France, Spain,
Poland, Belgium, Luxembourg and Romania.
This will allow thousands of customers to get a first
taste of 5G technology in 2019, before it is
commercially available from 2020 onwards when
smartphones are compatible.
Network virtualisation
and automation
We are looking to make our networks virtual in
order to satisfy the growing demand from our
business customers for flexibility and
responsiveness in the face of changing uses. These
changes to the infrastructure will, among other
things, improve agility and the speed of
implementation and adaptation. The technology
separates the hardware from the software,
transforming network functions into software, which
makes it possible to automate, program, and
control the network in a centralised and remote
way. We are therefore deploying infrastructure with
standardised servers that host network
functionalities as software. We have already started
to virtualise networks in our operating countries and
will continue to do so over the coming years, in
particular with cutting-edge 5G services.
Orange Business Services supports many of its
business customers through the process, such as
Siemens AG, which adopted an SD-WAN network
in 2018 to bolster the quality of its communication
activities across its 1,500 sites spread over
94 countries. At the same time, we are working to
automate the design and operation of our networks
by using probes, robots and AI algorithms to
improve the quality of how we monitor and manage
the customer experience. Such features are
described as a Self-Organising Network (SON) and
are deployed in state-of-the-art mobile networks.
Orange 2018 Integrated Annual Report
Data throughput
10 times greater with 5G
than with 4G
5G will bring about the speed and data capacity necessary to further
develop and extend ground-breaking commercial applications,
services and opportunities such as virtual reality,
augmented reality and autonomous vehicles.
76
“Used in conjunction with other
technology, the Internet of Things
helps to improve the quality of
life of patients suffering with
chronic illnesses. We used artificial
intelligence and IoT to create a
connected wristband that detects
and predicts epileptic fits and sends
alerts to friends, family, doctors and
paramedics in real time.”
—
Firas Rhaiem
Founder and CEO, Epilert (Tunisia)
“We are keen to continue
offering a greater quality of service
and customer experience by
developing new applications,
in particular 5G connectivity and
improving our IoT solutions to
support the growth of businesses.”
—
Olga Surugiu
International Operations Director, Orange Moldova
“The single most important factor
hampering a region’s prospects
is digital isolation. The Kanawa
submarine cable has brought us very
high-speed broadband, which goes
one step towards providing citizens
with better connectivity.”
—
Antoine Karam
French Guiana senator
17
300
6
17
2020
million devices and appliances
are connected to our networks
business customers
use our LoRa® network
agreements
for Public Initiative Networks
cities in Europe
will be equipped with 5G in 2019
in France, Spain, Poland, Belgium,
Luxembourg and Romania
when 5G
will begin commercial
deployment
78
Setting the bar in Europe for the
Internet of Things
The Internet of Things is a major focus in the Group’s
diversification strategy. We aim to establish a solid
presence across the entire value chain of connected
devices and appliances, including connectivity
solutions, distribution, value added services and data
management. We support our individual and business
customers by deploying networks that meet the
needs of connected devices. Built using LoRaWAN™
and LTE-M (Long-Term Evolution for Machines)
technology, they help in particular to minimise the
amount of energy used by connected devices and
appliances by improving network access from inside
buildings. LoRaWAN™ technology covers 95% of the
population in mainland France, five cities in Slovakia
and several areas of Romania. Orange is also
pursuing its strategy to develop LTE-M in Europe;
after its initial launch in France, Romania and Belgium,
it will be available in Spain in 2019. These
developments in our 4G network make it easier to
transfer enriched data to mobile devices inside
buildings and at underground locations. We also sell
connected devices in our bricks and mortar and
online points of sale, and offer people in Europe
services in the connected home, healthcare and
well-being. Lastly, Orange Business Services
supports its business customers through their
changing ways of working to boost efficiency and
innovation by offering end-to-end IoT solutions
adapted to their field. In 2018, Orange Business
Services launched “Smart Tracking”, a range of
solutions to locate and track goods and equipment,
both inside and outside buildings.
Extending our footprint to boost
inclusion
In France, Orange is committed to increasing very
high-speed network coverage in all regions in order to
reduce digital exclusion and inequalities. This is how
we help improve inclusion in sparsely populated areas
through Public Initiative Networks (PINs) – projects
run by local authorities to put a communication
network in place, most often using fibre optics.
Orange is proactively pursuing an ambitious
investment strategy, sometimes drawing on its own
equity, which is proving successful. In 2018, five new
fibre optic operating agreements were signed with
local authorities in France (Bourgogne-Franche-
Comté, Gironde, Vienne-Deux-Sèvres, Orne and Var).
We were also selected following a tender process in
Guadeloupe, the only PIN project with submarine
cable. At end-2018, our PINs had installed
345,000 connectable sockets – 100,000 more than
the previous year. In terms of mobile networks, since
the Orange Connected Territories programme was
launched in 2016, nearly 10 million people living in
rural and sparsely populated areas have gained
access to Orange 4G. Furthermore, as agreed in the
New Deal signed with the French State in
January 2018, we are working alongside other
operators to deploy a further 5,000 4G sites in rural
areas and 500 sites to improve 4G services. In line
with this vision to reducing the digital divide, the
Kanawa submarine cable connected in 2018 makes it
possible to anticipate increased traffic and diversify
connection points in order to ensure a better quality of
service in the French overseas territories of French
Guiana, Martinique and Guadeloupe.
Orange 2018 Integrated Annual Report
450 million pieces
of data processed
Orange plays a key role in developing the Internet of Things
in Europe, processing 450 million pieces of data every minute.
80
Guiding businesses through
their own digital transformation
—
We believe innovation is essential to grow a business. We position our customers at the heart of
everything we do and work with them to develop a more secure and connected digital landscape.
Drawing on our dual focus as both a network operator and digital services integrator, we bring together
the range of expertise necessary to support them throughout their data “journey”.
Orange strongly believes that businesses will draw
greater value from the way they use innovations in
data, artificial intelligence and soon 5G, as well as
their ability to apply such progress to their business
models, than from the technology itself.
Developing new services
with IoT
The Internet of Things (IoT) has made it possible to
collect data and monitor business activity more easily
than ever before, which in turn has led to the creation
of new, more flexible and more responsive services.
Birdz, a subsidiary of Veolia, has chosen Orange’s
LoRa® network to connect a total of more than
3 million smart water meters throughout France to
improve services and help its customers bring down
the cost of their utility bills. The goal is to connect over
70% of meters to enable remote reading by 2027.
In 2018, Orange Business Services launched
Datavenue Market, Europe’s first IoT marketplace
selling IoT components and connectivity with the
LoRa® network.
120,000 connected vehicles
enabled by Orange
Transporting data via smart
virtual networks
Orange Business Services pioneers
Software-Defined Wide Area Network (SD-WAN)
solutions through the cloud using specific software
to centrally operate them.
This lets our customers orchestrate their own
networks from end to end, connect to the cloud,
adjust their bandwidth, download and activate virtual
network features (such as security, BGP and
acceleration) in real time through a dynamic
gateway. That’s what Siemens did when they asked
us to transform their network infrastructure. This
helps to facilitate their migration to the cloud and roll
out an IoT setup connected to their industrial
equipment.
220 countries and regions covered by
Orange’s IP VPN network
Helping businesses migrate
to the cloud
An increasing number of companies are using a
multi-cloud environment (public, private and hybrid)
to store data and applications. We aim to become
one of the world’s leading suppliers of multi-cloud
services and generate over 50% of our revenues
from the cloud outside France by 2022. This is why
we’ve set up strategic partnerships with other key
providers in the industry, including VMware and
Microsoft Azure. The acquisition of Basefarm in
August 2018 strengthened our strategic position
by enriching our expertise in state-of-the-art
technology for data management, critical
application management, big data and multi-cloud
services.
No.1 supplier of cloud services in France
2,200 cloud experts
Orange 2018 Integrated Annual Report
Five keys for the
future transformation
of companies
The future of networks
The future of work
Artificial intelligence data analysis
Cyberdefense
Sector-specific innovation
82
“We chose Orange Business
Services because we see it as a
prime partner with the ability to
deliver seamless worldwide
SD-WAN coverage with the highest
degree of security standards. We
also focus on providing quality
of service, local support and an
attractive price-performance ratio.”
—
Frederik Janssen
Head of Siemens IT Infrastructure Portfolio
and Strategy
“Migrating to the cloud with support
from Orange Business Services led
to a technological breakthrough
that allowed IT to focus even more
on serving the different entities and
boosting the business.”
—
Emeric Jego
Cloud Infrastructure and
IT Support Manager, Logic-Immo
Solving our customers’ key data challenges
so they can thrive in
new business ecosystems
“The savings from Orange Business
Services’ IoT solution will have a
significant impact on our bottom
line, as around half of a vessel’s
operating costs are related to fuel.”
—
Evgeny Stepanov
Chief Technology Officer, Dobroflot
Collect
Transport
Store &
process
Analyse
Share &
create
Consulting
Integration
Protect
84
Unlocking the potential
of data
Organisations and companies see data as an
essential asset. To realise the full potential of data, it is
essential to choose the right analytical tools. We
developed Live Data Hub by tapping into our
expertise in the fields of smart cities and data. The
solution was launched in 2018 to guide local
authorities through the implementation of their data
strategy. They are able to better understand their area
by collecting, aggregating, analysing and visualising
all their data on a secure platform hosted in France. In
partnership with Sanoïa, Orange Healthcare leverages
machine learning to monitor chronic health problems.
Patients suffering from rheumatoid arthritis were
asked to wear special movement sensors, which
collected a total of 15 million data sets. Analysing this
information made it possible to accurately detect
flare-ups 96% of the time. In June 2018, we finalised
the takeover of Business & Decision, bolstering our
skills in data analysis and governance in France and
around the world and forging our position as one of
Europe’s leading data service providers.
2,400 IoT and data experts
Working together to share
and create value
We deploy solutions that enable our customers to
interact and work together, both in their teams and on
the move, in the most flexible and effective way.
Orange Business Services has set up a collaborative
platform in the cloud for ICADE, with instant
messaging, voice services, online conferencing, an
interactive whiteboard and secure document sharing.
On behalf of Carsat, France’s regional retirement and
occupational health fund, we organised 67 creathons
during which 1,500 people took part in defining new
managerial strategies, furthering collaborative
development and encouraging bottom-up
suggestions. Our healthcare solutions help to improve
the patient experience. Enovacom, acquired by
Orange Healthcare in 2018, launched ENOVACOM
Data Repository to bring together patient information
on a single technological base that is able to
communicate with all the software used by healthcare
facilities.
800 experts integrating communication and
collaborative solutions
Anticipating threats to protect
critical assets
Workplaces are implementing increasingly complex
technology, and cyberattacks are becoming more
and more elaborate and intrusive. This is why it is
essential to possess the most effective detection
capabilities possible. Orange Cyberdefense screens
over 50 billion events each day so as to be able to
react swiftly. This data is fed into our machine
learning databases to draw up a variety of different
attack scenarios that inform analysts in our
monitoring centres. In 2018, New Zealand’s
cybersecurity unit CERT NZ chose Orange
Cyberdefense to optimise its strategy with
automated threat intelligence services. Building on
this strong momentum, we announced last year that
we would soon be entering the market in Morocco to
meet the needs of companies located in French-
speaking countries in Africa. Orange also continued
to develop its acquisition strategy by taking over the
British-based company SecureData.
No.1 cyberdefense operator in France
1,500 cybersecurity experts
Orange 2018 Integrated Annual Report
Qualified to support
critical operators
This accreditation granted by the French State authorises us to
support France’s critical network operators (including energy,
transport and other essential services for people) to detect
security incidents.
86
Taking mobile financial services to
the next level
—
Mobile financial services are key to our multi-service operator strategy. Our goal is to provide simple
financial solutions, along with a smooth and bespoke customer experience accessible to all.
A decade of innovation in
financial services
Introduced in 2008, Orange Money set us on our
path to becoming a multi-service operator. A decade
on, millions of people in Africa and the Middle East
are using it to carry out financial transactions from
their mobile phones. Orange Money is a digital wallet
linked to a mobile telephone number that can be
used to carry out financial transactions from mobile
phones. Our customers can keep their money safe in
their digital wallet, transfer funds, pay utility bills,
taxes and school fees and, in some countries, take
out insurance and loans. In 2017, we launched
Orange Bank, a pioneering service fully developed
in-house for telecoms and mobile uses. Orange
Bank is a one-stop shop combining all the financial
services that our rivals – traditional banks, online
banks, neo-banks, fintech companies,
supermarkets, hypermarkets and GAFAM – have to
offer. We are also teaming up with and investing in
several fintech start-ups through Orange Digital
Ventures. In 2018, for instance, we acquired stakes
in Aire in the United Kingdom (solvency analysis),
Yoco in South Africa (payment terminals and
solutions for small retailers) and Africa’s Talking in
Kenya (communication and payment APIs). Also
in 2018, Orange and NSIA applied for a banking
licence from the Central Bank of West African States,
with a view to expanding the choice of mobile
financial services we offer.
Suited to the varying maturity of
each market
We adapt our mobile financial service strategy, and
the range of existing solutions, to each operating
country. In countries with a lot of banking services
on offer (France, Spain, Belgium, Poland and
Slovakia), we offer a comprehensive range of digital
services through Orange Bank. In countries where
banking is less developed like in Romania, we
provide payment and credit services using solutions
based on Orange Money. And in countries where
only a small percentage of the population has a bank
account (in Africa and the Middle East), we meet
customers’ basic banking needs by offering daily
services to make deposits, transfers, withdrawals
and payments. In some countries, we are also using
Orange Money’s solid reputation to offer microcredit,
savings and insurance solutions in partnership with
microfinance institutions. Orange Money, which was
initially introduced as a way to enhance customer
loyalty, is now used for up to 20% of our mobile
phone top up sales.
Synergies across the business
Our diversification into mobile financial services, in
particular with Orange Bank, is increasing customer
loyalty and opening up new revenue streams by
promoting sales of connected devices
(smartphones, smart watches, etc.) at a time when
sales of SIM-only plans are on the rise. Meanwhile,
Orange 2018 Integrated Annual Report
“The Group’s strengths as a
telecoms operator and its marketing
strategy adapted to each of its
operating countries put
Orange in an unrivalled position
compared to traditional banks
and neo-banks.”
—
Paul de Leusse
Deputy Chief Executive Officer
for mobile financial services
8888
“Regulation in general and GDPR
in particular have had a strong
impact on the banking sector,
kick-starting extensive change
throughout the industry. Banks are
now extracting greater value from
their data, providing ever-more
online services, and investing in
their customers’ trust.”
—
Aurélie Goncalves
Banking Sector Manager, Business & Decision
“Helping to improve financial
inclusion in Africa is one of
the pillars of our strategy as
a multi-service operator.”
—
Alassane Diene
Director of mobile financial services
Orange MEA
“Djingo is ushering in a new
age of customer relationships.
It speaks to customers in
natural language, and provides
an optimal service as a result.”
—
Jean-Philippe Desbiolles
VP Watson France
160,000
€2
200
1,000
€350
Orange Money points of sale
worldwide
average monthly additional ARPU
generated by active Orange Money
customers
Orange stores
authorised as intermediaries
in banking operations
and payment services in France
Orange advisors and managers
certified to act as intermediaries
in banking operations and
payment services in France
million
raised by the fintech companies
in which Orange Digital Ventures has
invested since 2015
90
we are also taking advantage of the strength of our
brand and the reach of our store network to market
and distribute mobile financial services. Furthermore,
we use data from our telecoms and banking
customers, in accordance with European, national
and banking-sector regulations, to offer bespoke
services that simplify account opening procedures
and help swiftly approve personal loans for example.
Orange Money – a catalyst
for inclusion
In 2018, Orange went even further by teaming up with
PAMF (Première Agence de Microfinance) in
Madagascar to use Orange Money to provide savings
and credit services. More than 350,000 loans have
been granted.
Interoperability is key to boosting mobile money
transactions, reinforcing financial inclusion and
assisting Africa’s economic development. To
accelerate the continent’s development and
interoperability, Orange and MTN set up a joint
venture, Mowali, in 2018, with the aim of simplifying
money transfers.
Mowali makes financial exchanges between
individuals and States, non-governmental
organisations and companies smoother and safer. In
10 years, Orange Money has become a world leader
of mobile money. Our distribution network consists of
160,000 points of sale throughout Africa that serve
39.2 million Orange Money customers, including
15.1 million monthly users.
Orange Bank, the bank
for right now
Orange Bank provides financial services that are
suited to what customers want (including bank
accounts, standard and premium bank cards,
authorised overdrafts, a complementary insurance
package and savings accounts). These banking
services harness the unique possibilities of mobile
technology. For example, customers can pay with
their card or mobile phone, temporarily block their
card, check their balance in real time and ask
questions, which our virtual assistant Djingo answers
24/7. Orange Bank’s point of differentiation also
comes from its Orange store network, where
customers can speak to advisors who have trained
as intermediaries in banking operations and payment
services. In 2018, Orange Bank added a new
personal loan service enabling customers to go
through the entire process – from applying for the
loan to using the funds – on the app. After having
been extended to the French overseas territories of
Martinique, Guadeloupe, French Guiana, Mayotte
and Reunion Island, Orange Bank will be launching
in Spain in 2019.
Over 1.5 million conversations between
our customers and Djingo since it was
launched
248,000 Orange Bank customers
at end-2018
Orange 2018 Integrated Annual Report
Orange Money
celebrates its 10th
anniversary!
Almost 2 billion transactions were made using Orange Money
in Africa and the Middle East in 2018.
92
Creating and
distributing
engaging content
for tomorrow’s
world
—
As a content operator and distributor, the Orange
group makes outstanding content available
across communities. Orange Content connects
people throughout the world to their interests in
increasingly innovative ways.
Aggregator-distributor
As a content aggregator and distributor, Orange is
well positioned to satisfy its customers’ appetite for
entertainment. We aggregate our own pay-TV
packages while also working with partners to provide
access to the most popular third-party content
(Canal+, beIN SPORTS and Netflix). At the end of
2018, 9.6 million homes in Europe had signed up to
Orange TV services. As a result, content distribution in
TV, VOD, music and gaming is a key aspect of our
convergence strategy, helping to showcase our very
high-speed broadband access, fibre and 4G services.
Cinema and series production,
co-production and publishing
In 2007, the Orange group created its cinema
subsidiary, Orange Studio, to pursue its ambition to
co-produce independent, diverse content and
acquire the rights to French and European films. In
2018, we invested in two international series, The
Name of the Rose and Devils, which are to be
broadcast on OCS in 2019. These new series, which
mark the beginning of the Orange Studio-OCS
alliance to create original content, are the first “OCS
Originals”. Orange Studio is also pursuing efforts to
expand its catalogue and has begun distributing
films internationally under an agreement with UGC.
Furthermore, it is taking proactive steps to identify
and support audiovisual and film talent in Africa.
Ten years after it was set up, OCS now provides four
themed series and cinema channels and an
on-demand service to its 2.9 million subscribers.
The OCS package is dedicated entirely to films and
series. Its success is the result of alliances with the
best production studios, well-defined themes and
outstanding series such as those produced by HBO,
for which OCS is the exclusive broadcaster in France
(Game of Thrones and Westworld). OCS also
supports independent French drama with its OCS
Signature label, a collection of 26-minute episodes
made by directors given the opportunity to work with
complete creative freedom. Orange reaffirmed that
support at the end of 2018, when its subsidiary OCS
signed an agreement with the film industry to invest
€125 million over a three-year period (2019-2021) in
French and European film production and open the
way to reforming the French release window,
enabling OCS to broadcast films sooner.
TV, music and gaming content
distribution
The Orange group is developing content services in
Europe, particularly for television, which form part of
our convergence offer. We are deploying Netflix
across our operating countries under the framework
agreement signed at the end of 2017. In Spain, we
have renewed distribution rights with the Spanish
football league (La Liga) and the UEFA Champions
League to offer customers football-themed TV
packages. We have also launched Orange Series,
which holds exclusive broadcast rights to a range of
series, some in 4K. Our other European businesses
are developing their content services too. In Slovakia,
for example, a satellite service and Orange Sports
channel were launched in August 2018. In Africa, we
are expanding our TV services and have taken our first
steps in the world of production; a highlight being in
Senegal with Diamond House. Orange also maintains
distribution partnerships with subscription VOD
services in the region.
Orange 2018 Integrated Annual Report
“In entering distribution
and co-production, Orange is present
at every stage of the value chain,
upstream with Orange Studio
and downstream with OCS.”
—
David Kessler
Managing Director, Orange Content
94
“Content distribution is no
longer enough. Nowadays,
creating value for our
customers and subsidiaries
means integrating new digital
technologies and creating social,
intuitive, engaging and unique
experiences for our customers.”
—
Serge Laroye
Deputy Director, Orange Content
“OCS is proud to broadcast
the final season of one
of the biggest series of the last
10 years, Game of Thrones.”
—
Guillaume Jouhet
CEO, OCS
© 2019 Home Box Office, Inc. All Rights Reserved. HBO ®
And All Related Programs Are The Property Of Home Box Office, Inc.
“Consumers have never had more
freedom of choice when it comes to
audio content. A single, customised,
premium audio service through any
platform makes it easier than ever
before to enjoy a highly personalised
experience, wherever you are.”
—
Hans-Holger Albrecht
CEO, Deezer
9.6
2.9
14
3
€15
million homes connected
to Orange TV in Europe
million people
signed up to OCS
films
co-produced in 2018
by Orange Studio, including
nine distributed or co-distributed
projects
won grants from the
Orange XR fund, which recognises
augmented, virtual or mixed
reality writing projects
million
invested by Orange Studio to
co-produce films, acquire rights
to film catalogues, acquire or
develop series and distribution rights
96
In France, Orange has developed close ties with the
Canal+ group and has renewed its distribution
agreement with beIN Sports. 2018 also saw the
release of a brand new ultra-compact set-top box
compatible with the latest technologies (TV Ultra HD,
Dolby Atmos and Wi-Fi connection to the Livebox).
In 2018, Orange continued to enhance its video
game streaming service on Orange TV. Unlimited
packages and freemium games (free to play, but
charges for additional features) on mobile went
from strength to strength. As a result, Orange
Juegos was reintroduced in Spain and Orange Jeux
continued to perform well in nine African countries,
where it now has more than a million subscribers.
The music market continued to gain ground in 2018
with growth driven by streaming services. Pursuing
a partnership that was first established in 2010,
Orange reinvested in Deezer, whose paying
customer numbers in Spain, Romania, Luxembourg
and Côte d’Ivoire continue to rise. The Group is also
deploying its Orange Radio service in 17 countries,
including 14 in Africa and the Middle East.
Support for the arts
In 2017, Orange invested €601 million in support for
the arts, €100 million of which was channelled into
cinema. Our focus is to provide support for
screenwriting, an essential link in the production
chain, through grants or endowment funds created
with the SACD (association of authors and
composers working in creative production) in
France and the French-language young creators’
fund established by the French Cultural Centre in
Yaoundé at the end of 2017. In 2018, the SACD and
OCS launched the SACD/OCS Signature fund to
discover new screenwriting talent for television.
Tomorrow’s content
and immersion
Offering customers a unique, cutting-edge content
experience has always been a priority for Orange.
This is why we work with start-ups and give them a
chance to test their ideas on potential customers.
Wevr, for example, is a virtual reality video hosting
platform funded by Orange Digital Ventures. We are
also actively developing virtual reality. The “Orange
VR Experience” content distribution portal offers a
selection of the best 360° videos from Hollywood
and independent studios.
The Orange XR grant, which supports immersive
reality screenwriting projects, awarded grants to
three projects in 2018 at a Cannes Film Festival
fringe event. Lastly, Orange continues to support
the rise in popularity of eSports, particularly in
Africa where the Group organised the Orange
eSports Experience in 2018, the first Pan-African
video game tournament, which brought together
12 countries for the finals in Dakar. In 2018, we also
became one of the largest eSports operators in
Belgium when we signed a partnership with the
Sector One team and GameForce Masters, the
largest eSports tournament in the Benelux.
Orange 2018 Integrated Annual Report
€100 million
will be invested over the next five years in international
co-production to create original content.
98
Shaping smart services
for everyday living
—
Orange draws on its expertise in IoT, artificial intelligence, 5G and cybersecurity to develop smart
services that make people’s lives easier by responding to their everyday needs.
Connected Home, Protected Home
Orange is now offering Connected Home
and Protected Home, a comprehensive offer for a
smooth-running, secure home.
maintenance of security equipment, the mobile app,
emergency or security call-out for confirmed
incidents and a guard and access control service if
required.
The Connected Home package helps families
control their home devices remotely, for example
managing heating and lighting or programming
household appliances from a single mobile app or
using our voice-controlled virtual assistant, Djingo.
The service, which is integrated into the new Livebox,
requires no subscription or additional equipment. It
can be used with a broad range of connected devices
and appliances sold through Orange or partners
including Philips Hue, Bosch and Netatmo.
The Protected Home package was developed in
response to one of our customers’ major concerns:
home security. Homes are connected to a remote
surveillance station that will trigger an emergency
call-out to the address in case of an intrusion. The
package includes six services – round-the-clock
surveillance by an approved remote station, the
provision and professional installation and
Djingo
Djingo is a virtual assistant that offers an intuitive
and secure voice interface for services provided
by Orange and its partners. It is controlled via a
smart speaker, microphone-equipped remote
control or smartphone. In France today, customers
can ask Djingo to access information and
entertainment services such as Deezer, Orange
Radio, Orange TV and Météo France weather. In
the future, they will also be able to access services
provided by trusted partners selected by Orange.
Djingo will also allow people to access Amazon’s
virtual assistant Alexa, to offer a wide range of
additional services. Lastly, Djingo will offer
services to businesses – taking and producing
notes, emailing them out and ultimately managing
business communication services such as call
distribution, telephone conference organisation
and appointment bookings.
Orange 2018 Integrated Annual Report
2.6 million homes
in France will be eligible for the Connected Home and Protected
Home packages when they are launched.
100
Telemedicine
Telemedicine is the practice of consulting a doctor
remotely via videoconference. Since 2018, five
telemedicine procedures in France have been
eligible for the same State health insurance cover as
traditional procedures. Orange Healthcare has
developed a number of projects under the French
Government’s digital health programme that aims to
modernise the health system using innovative
technology and services. We provide partners with
technological expertise in everything from document
transfer to managing critical emergencies. 5G, the
preferred system for state-of-the-art telemedicine,
will better enable remote services through faster
connections and smoother communication for
videoconference consultations, but also for critical
uses such as emergency triage. But our actions are
not limited to 5G. We are providing healthcare
stakeholders with comprehensive technical support
including data hosting, interoperability of IT systems,
security, network infrastructure and project
management.
Digital citizenship
We have developed a civic tech service that
encourages people to participate in and contribute
to non-profit organisations and companies at a local,
regional and national level. “Le Vote” is a free mobile
app for users and a website for polling organisers.
The service offers a transparent and secret virtual
ballot, without storing any personal data on the
service’s data base. Decentralised blockchain
technology ensures both the organisation and the
results of polls are secure. The service enables local
councils to send notifications to local voters, inviting
them to take part in advisory polls.
Solar energy
Nearly 600 million homes and businesses in rural
Africa have no access to electricity. Orange Energy is
fulfilling essential needs on the continent, bringing
power, communication and access to information to
people’s homes. The service uses solar energy to
enable people to study, work and access all the
entertainment and online services they require. With
an Orange solar kit, a family can light their home,
charge mobile phones and power a radio or even a
television. To subscribe to the service, customers
must have an Orange SIM and pay a usage fee. The
kit is then installed in their home. Customers pay for
what they use, can see how much credit they have left
and recharge using Orange Money. Orange Energy
was first launched in 2017 in the Democratic Republic
of the Congo and Madagascar, before being rolled
out in Côte d’Ivoire, Guinea, Mali, Senegal and
Burkina Faso at the end of 2018. We aim to sell
50,000 kits in Africa by the end of 2019.
2 in 3 people in Africa have no access
to electricity
10,000 solar kits sold in 2018
7,500 Orange Energy customers in five
countries at the end of 2018
Orange 2018 Integrated Annual Report
350,000 Orange Energy
customers by 2021
As nearly 600 million homes and businesses in rural Africa have
no access to electricity, we aim to reach 350,000 Orange Energy
customers by 2021.
102
Helping to
drive the
environmental
and energy
transition
—
The rapid growth of digital uses presents a
challenge in terms of sustainability. By optimising
equipment, using renewable energies and
developing the circular economy, we are rising to
this challenge because we firmly believe that we
can reduce the impact of digital technologies.
One of the commitments we made at COP21 was to
reduce CO2 emissions per customer usage by 50%
between 2006 and 2020. In 2017, we achieved that
objective and in 2018 we exceeded it, having reduced
these emissions by 56.6%. We also reduced our
overall carbon footprint by 3.2% in the two years to
2018.
Reducing overall energy
consumption
Our networks consume energy and generate
CO2 emissions. To tackle these issues, we are
deploying the Green ITN 2020 programme that drives
the development of energy efficient solutions. In Africa
and the Middle East, our Energy Services Company
(ESCO) programme helps avoid 80,000 tonnes of
CO2 emissions each year and we are aiming to fulfil
over 30% of our energy requirements from renewable
sources by 2030. In addition, Orange has deployed
an environmental management system that has been
recognised with ISO 14001 certification across
two thirds of the Group’s global businesses. We are
also working to increase the energy efficiency of our
buildings and transport, looking particularly at limiting
business travel.
2.7 million tonnes of CO2 emissions avoided
between 2010 and 2018
2,800 solar power stations supply our mobile
telephone systems in Africa
The largest company car-sharing pool in Europe
Pursuing our circular economy
strategy
Our strategic steering committee for the circular
economy has defined an action plan to reduce the
environmental impact of our projects and services
throughout their lifecycle. In 2018, we created an
exchange platform to redeploy set-top boxes and
boost second-hand mobile sales. We have also
opened an internal repair centre in Senegal and put in
place systems to collect and recycle unwanted
devices that are customised to handle different types
of waste and adapt to different markets.
1.6 million unwanted mobiles collected
in Europe
20,000 set-top boxes repaired in Poland and
redeployed in Senegal
Driving the transition with digital
technology
Digital technologies hold the key to monitoring,
reading and analysing consumption and enable us to
offer customers innovative and sustainable
alternative solutions, such as urban services adapted
to people’s needs, company car pool management,
energy efficiency in buildings, street light
optimisation, etc.
Preserving biodiversity
Orange supports a number of scientific programmes
such as the Mont-Blanc Research Centre for Alpine
Ecosystems, which studies the impact of climate
change on biodiversity. As a partner of the Euro-Argo
project, our cable ships are installing autonomous
profiling floats to monitor oceans in real time. We also
prioritise wildlife conservation when deploying our
networks, for example taking into account the
tortoise nesting season in the installation schedule for
the Kanawa submarine cable in Guiana.
Orange 2018 Integrated Annual Report
CO2
Working towards
carbon neutrality
in 2050
Orange is actively involved with international organisations
such as the International Telecommunications Union to ensure
the industry contributes to limiting global warming
to 1.5°C. We also participate in business networks like
the Net Zero Initiative, which is working to establish a common
benchmark for corporate carbon neutrality that is approved
by an independent scientific committee.
Governance
To achieve its long-term performance goals,
Orange has put in place a stable, robust and balanced
governance structure that incorporates corporate social
responsibility at every level.
106
Strong governance
—
Orange has put in place a stable, robust and experienced governance team to steer the Group’s
strategy and achieve its long-term performance goals. Every level of governance is structured in a
balanced way that includes independent directors and directors representing our main shareholders
(public sector and employees). Members are chosen to ensure a more diverse range of skills,
international experience and a more balanced representation of men and women.
Core and complementary
expertise on the Board
of Directors
The Board of Directors sets the Group’s major
strategic, economic, social, financial and
technological policies and oversees their effective
implementation by senior management. At the end
of 2018, the Board was made up of 15 members,
each appointed for a four-year term of office.
Together they bring the general business skills and
specialist areas of expertise required to achieve the
Group’s strategy and ambitions.*
Such complementarity and diversity enrich the
Board’s discussions and guarantee its strength.
The French Works Council representative has also
been joined this year by a representative from the
Global Works Council. They both sit on the Board
as non-voting members.
At the end of 2016, the independent director
Charles-Henri Filippi was also appointed lead
director. In this capacity, he ensures that the Board
is able to carry out its responsibilities effectively
and maintains smooth relations with senior
management. He is responsible, in particular, for
identifying potential conflicts of interest, ensuring
the governance system is able to manage crisis
situations and is involved in evaluating the Board.
The lead director is the point of contact for senior
management in compliance-related matters and
reports to all members of the Board on the
effectiveness of the compliance procedures and risk
levels. He also attends a meeting of the Risks
Committee each year and engages with the Group’s
investors and shareholders.
In 2018, in addition to its regular activities – which
include assessing operational performance, financial
results, risk factors, the budget and setting the
compensation of the Group’s corporate officers – the
Board concentrated on the “New Deal” agreement to
deploy very high speed fixed and mobile broadband
in France, the Basefarm acquisition to accelerate
the international development of the Group’s cloud
activities and bids for 5G licences in Spain. As set
out in its Internal Guidelines, the Board also
conducted a self-assessment of its operating
practices and its committees in 2018. The
assessment confirmed that the various governing
bodies work effectively together and that their
members are highly engaged. The
recommendations mainly concerned growing the
business, monitoring succession planning of its
corporate officers, ensuring the diversity of profiles
on the Board and providing support to directors on
important areas of innovation.
* For more information on the duties of the Board of Directors, see
Section 5.2.1.3 of the 2018 Registration Document
Orange 2018 Integrated Annual Report
The Board of Directors in 2018
Average number of years of service
Average age
Number of meetings
Collective attendance rate
Gender representation
Committee meetings
3.8 years
54.3 years
11 (8 in 2017)
91.5%
41.5% women / 58.5% men
8 for the Audit Committee, 7 for the Governance
and Corporate Social and Environmental Responsibility
Committee, 3 for the Innovation and Technology Committee
Composition
Chairman and Chief Executive Officer
Stéphane Richard
Independent directors
Directors representing the public sector
Directors representing employees
Director representing employee
shareholders
*replacing Lucie Muniesa from 14 March 2019
**replacing Hélène Marcy from 4 May 2018
Alexandre Bompard
Charles-Henri Filippi
Christel Heydemann
Helle Kristoffersen
Bernard Ramanantsoa
Mouna Sepehri
Jean-Michel Severino
Bpifrance Participations
(represented by Nicolas Dufourcq)
Hélène Dantoine*
Anne Lange
Sébastien Crozier
Fabrice Jolys
René Ollier
Luc Marino**
108
Orange 2018 Integrated Annual Report
Orange 2018 Integrated Annual Report
Active specialised committees
Three committees provide proposals,
recommendations and opinions in their respective
areas of expertise to inform the Board of Directors’
discussions and decisions. They are the Audit
Committee, the Governance and Corporate Social
and Environmental Responsibility Committee and the
Innovation and Technology Committee. The members
of the committees are chosen to reflect the principles
of balance and diversity that apply within the Board.
These three committees are chaired by independent
directors, two by women, and all include one director
representing employees and one representing the
public sector. In 2018, the Audit Committee worked
on financial reporting, internal control, risk
management, the Code of Ethics and strategic
development projects, including interests in Africa and
the Middle East. The Governance and Corporate
Social and Environmental Responsibility Committee
assessed the compensation of the Group’s corporate
officers, the governance system and the effectiveness
of the Board of Directors. It also continued to review
the Group’s corporate social responsibility actions.
The Innovation and Technology Committee focused
on our digital identity, rich communication services
(RCS), the relationship with Google and the way
artificial intelligence is transforming our relationships
with customers.
A renewed Executive Committee
dedicated to our strategy
The Executive Committee coordinates the
implementation of Group’s strategy, monitors
operational, social and technical targets and
optimises the allocation of resources. The Committee
has 15 members (see next page). The Chairman and
Chief Executive Officer works alongside two
Delegate Chief Executive Officers with clearly
defined areas of expertise and a lead director with
important responsibilities and significant authority,
ensuring robust corporate governance that strives
for efficiency and performance while guaranteeing
a balance of power.
To accelerate the implementation of our multi-service
operator strategy, seven new members joined the
Executive Committee in 2018, bringing expertise in
the key areas of cybersecurity, digital transformation
and mobile financial services. The new team is also
more international, with the addition of directors from
high-growth regions such as Spain and the Middle
East and Africa. Through an approach based on
dialogue and collaboration, the Executive Committee
has identified the priorities to ensure it is prepared for
the challenges ahead. We have developed a
transformation plan which is broken down into
tangible projects, each of which is steered by a
member of the Committee. Every two months, the
Committee invites Business Unit directors to its
meetings to maintain regular and direct
communication with operations across the world.
Beyond Orange SA: the Orange
programme for directors
As well as placing great importance on governance at
Group level, Orange also strives for excellence within
its entities. To consistently improve the management
and supervision of its subsidiaries and joint ventures,
Orange continuously maintains a dynamic
programme — including training courses,
conferences and debates, tools and shared standards
highlighting best practices — for members of its local
boards of directors and supervisory boards. Orange
firmly believes that by applying the highest standards
of governance, it can improve performance.
“Renewing our management team
is a decisive step in Orange’s
transformation. Today, we are pushing
back the boundaries of digital services
by confirming our goals of diversification
into financial services, cybersecurity and
the connected home.”
—
Stéphane Richard
Chairman and Chief Executive Officer
110
5 6
1 2
9
12
10
15 13 8
4 1
11
14
7
3
1.
2.
3.
4.
5.
6.
7.
8.
9.
Stéphane Richard
Chairman and Chief Executive Officer
Ramon Fernandez
Delegate Chief Executive Officer, CEO
Finance, Performance and Europe
Gervais Pellissier
Delegate Chief Executive Officer, Group
Transformation and President of Orange
Business Services
Fabienne Dulac
Deputy Chief Executive Officer, Orange
France
Mari-Noëlle Jégo-Laveissière
Deputy Chief Executive Officer, Technology
and Global Innovation
Laurent Paillassot
Senior Executive Vice-President, Orange
Spain
Christine Albanel
Senior Executive Vice-President, Corporate
Social Responsibility, Diversity, Partnerships
and Inclusiveness, Deputy Chairwoman of
the Orange Foundation
Jérôme Barré
Senior Executive Vice-President, Orange
Wholesale and International Networks
Hugues Foulon
Senior Executive Vice-President, Strategy
and Cyber Security activities
10. Nicolas Guérin
Senior Executive Vice-President, Group
General Secretary and Secretary of the
Board of Directors
11. Valérie Le Boulanger
Senior Executive Vice-President, Human
Resources
12. Béatrice Mandine
Senior Executive Vice-President, Internal
and External Communication for the Group
and Brand
13. Alioune Ndiaye
Senior Executive Vice-President, Orange
Middle East and Africa
14. Helmut Reisinger
Senior Executive Vice-President, Orange
Business Services
15. Paul de Leusse
Deputy Chief Executive Officer, Mobile
Financial Services
112112
Compensation
balanced
equally between
financial and
non-financial
performance
targets
—
The Orange compensation policy for senior
executives reflects the desire to integrate a
focus on corporate social responsibility in the
Group’s governance, strategy and performance
targets for the short, medium and long term.
women, the Employee Barometer and the change in
CO2 rate per customer usage since 2019. They help
to better reconcile short-term operational
profitability targets with longer-term objectives to
create value and defend shareholder interests. The
policy applies to all senior executives in order to
ensure they are working towards the same targets,
which are aligned with the strategy.
The three pillars of executive
compensation
The compensation of Orange’s corporate officers is
made up of three components.
Fixed compensation
The fixed compensation of corporate officers is
determined based on the level and complexity of
their responsibilities, their experience and
professional background, and market analysis for
comparable positions.
Variable compensation
Variable compensation is intended to give
corporate officers an incentive to fulfil the annual
performance targets set by the Board of Directors
in line with the corporate strategy. The variable
component is split into levels of performance with a
balanced weighting between financial (50%) and
non-financial (50%) criteria. The variable
component is determined using specific objectives
and quantitative performance measures, including
for non-financial indicators.
A considered compensation policy
Each year, the compensation of Orange’s corporate
officers is assessed by the Board of Directors on
the basis of recommendations made by the
Governance and Corporate Social and
Environmental Responsibility Committee. It is also
subject to approval at the annual Ordinary
Shareholders’ Meeting as part of shareholders’
Say on Pay.
Another way we implement our Corporate Social
Responsibility (CSR) strategy is by incorporating
non-financial performance criteria into the
compensation packages of corporate officers and
members of the Executive Committee. These
criteria include workforce participation rates for
Multi-year variable compensation in cash or
performance shares
Corporate officers benefited from two cash-based
long-term incentive plans (LTIPs), which ended in
2017 and 2018, respectively. In 2017, the Board of
Directors decided to update their approach to
LTIPs in order to improve retention of corporate
officers and more closely connect their interests
with those of the company and the expectations of
shareholders. The plan now awards performance
shares, which vest on the basis of criteria that take
into account the direct contribution of executives to
the long-term overall performance of the company.
It is also open to employees in key positions
throughout the Group.
Orange 2018 Integrated Annual Report
Compensation of corporate officers:
quantitative, measurable criteria
Chairman and
Chief Executive Officer
Delegate Chief Executive Officers
Fixed
component
50%
Long-term
incentive
plan
20%
Annual
variable
component
30%
Annual variable compensation
Fixed
component
45.9%
Long-term
incentive
plan
17.4%
Annual
variable
component
36.7%
Financial criteria
30%
20%
Non-financial criteria
33%
17%
Operating cash flow
Change in revenues
Employee experience indicators
BtoC and BtoB customer experience indicators
114
Our ethically
responsible
commitment
—
In an increasingly demanding business
environment where regulation is becoming
increasingly stringent, where stakeholders have
higher expectations and more closely scrutinise
business conduct, and where penalties are
becoming harsher, Orange is helping to build
trust into tomorrow’s world.
Our Ethics
& Compliance policy
The Executive Committee leads our ethics and
compliance policy. The approach we take to
managing non-compliance risks is consistent with
the requirements of anti-corruption laws in France
(Sapin II Law), the United States (Foreign Corrupt
Practices Act) and the United Kingdom (Bribery Act).
Our network of Chief Compliance Officers and
departmental Compliance Officers oversees the
implementation of action plans at Group, divisional
and entity level. We develop tools, procedures and
programmes that all employees can refer to and use
to learn more about the issues and do the right thing
when dealing with situations relating to transparency.
These include our Code of Ethics, Anti-Corruption
Policy, a specific intranet site, awareness-raising
e-learning modules and other literature, an
application for declaring gifts and other benefits
received or offered, information about preventing
and dealing with conflicts of interest, a Group
whistleblowing mechanism and a method to assess
third parties. In 2018, we introduced new training
and awareness tools including booklets on the
prevention of corruption and the UN-Orange
e-learning module for anti-corruption certification.
We continued to tighten and adapt our internal
control procedures as part of our continuous
improvement process, and Sofrecom, an Orange
group consulting firm, earned ISO 37001 certification
for its anti-bribery management system.
Duty of care
Orange’s Duty of care plan fulfils the requirements
signed into French law on 27 March 2017 regarding
corporate duty of care. It is primarily geared to
identifying and assessing the risks generated by our
business and preventing or mitigating those risks. It
also includes procedures for evaluating
subsidiaries, subcontractors and suppliers, and for
assessing whistleblowing mechanisms. A kit has
been sent to the Group’s 15,000 managers to
familiarise them with this law and raise awareness
with their teams.
Responsible purchasing
We require our suppliers to meet our ethical, social
and environmental standards, and apply similar
standards throughout their own supply chains, in
particular through a Charter of Commitments and
Supplier Code of Conduct. Orange was one of
the 128 companies awarded a place on the
2019 Supplier Engagement board by the Carbon
Disclosure Project for their efforts to reduce the
environmental impacts of their supply chains.
Data protection
As a trusted operator, Orange believes it is
especially important to protect personal data.
Changing regulatory framework has given Orange
the opportunity to strengthen the technical and
organisational measures that it has adopted, and
further share a culture of data protection. A network
of data protection delegates and points of contact in
the different business lines offer guidance in the
implementation of these protective measures.
Orange 2018 Integrated Annual Report
Five ethical principles
All Group executives, managers and employees are required to behave with integrity,
quality and impartiality in their dealings with customers and suppliers;
protect corporate assets; refrain from engaging in or enabling insider trading;
report breaches to Orange’s anti-corruption policy; and avoid conflicts of interest.
116
Our integrated
approach
To ensure our approach is consistent with our stakeholders’
expectations, we underpin our strategy with dialogue.
This helps to identify and prioritise the risks
involved in implementing the strategy and take targeted
measures to prevent them.
118
Stakeholder
dialogue
—
Regular and structured dialogue
Underpinning our CSR strategy with dialogue
ensures our approach is consistent with our
stakeholders’ expectations. So far, we have
conducted more than 50 consultations to identify
and prioritise the risks associated with social and
environmental issues affecting our operating
countries. Picking up on the “weak signals” is
particularly important to this process. Stakeholder
dialogue is also an excellent way to seize innovation
opportunities and anticipate potential growth areas,
proposing solutions to support local economic and
social development.
Group-level consultations on
strategic priorities
Group-level consultations are conducted on
strategic issues that are transversal to Orange.
Universal action points are adopted throughout the
business as a result. For example, we established a
roadmap and a strategic monitoring committee for
the transition to a circular economy following the
2017 consultation. Similarly, the consultation on
vulnerability and digital technology enabled us to
develop strategies to combat digital exclusion and
put together a plan for the most vulnerable people.
In 2018, the scope of the Group-level consultation
on diversity and gender equality in the workplace
was extended to Spain and Tunisia following their
Gender Equality European and International
Standard (GEEIS) certifications. The next
Group-level dialogue will explore the theme of young
people and business, inviting stakeholders to reflect
on their expectations, fears and desires.
Country and entity-level
consultations
Country-level consultations are conducted by our
national subsidiaries to identify their own internal and
external CSR priorities. The process may be
renewed in certain countries to adjust policies to any
new risks or opportunities identified. In some cases,
an entity may initiate a consultation, as was the case
with the Orange Bank CSR policy consultation
launched in October 2018.
The Digital Society Forum,
a “think-and-do tank” exploring
the impact of digital technology
on society
The Digital Society Forum is an open, collaborative
platform, launched by Orange in 2013 to give
everyone the chance to understand and better adapt
to digital life. As a think-and-do tank, it brings
together universities, businesses and representatives
of civil society to explore the main themes affecting
people’s everyday lives. These diverse points of view
are shared with the public through participative
regional and international workshops to generate
new ideas for concrete courses of action. More than
1,000 suggestions have been collected in France
over the last five years. All the content produced is
published on the forum’s special website.
In 2018, the Digital Society Forum continued its
international development launching in Côte d’Ivoire.
In 2017, Senegal also held its first regional
participative workshops. Furthermore, the forum has
integrated a new theme, digital inclusion, which was
discussed in France at the 13th round table in
November 2018 and in Morocco at the launch of the
Digital Society Forum in April 2019.
Orange 2018 Integrated Annual Report
Our stakeholders
Internal
Orange employees
Employee representatives
Public sector
International organisations
Regulatory bodies
Ministries
Local authorities
Economic agents
Customers
Shareholders and investors
Other financial institutions
Suppliers
Professional associations
Business partners
Distributors
Universities and training centres
Property owners
Civil society
Opinion leaders
Specialists
CSOs/NGOs
Social entrepreneur networks
Media
General public
120
Identifying the most relevant issues
for Orange and partners
—
Orange engages in structured and continuous
dialogue with internal and external stakeholders.
This identifies the issues that matter most to our
various audiences and determines our strategic
decisions and commitments.
A standardised approach
Our approach to stakeholder dialogue is based on
the principles of the AA1000 standard:
Inclusivity — identifying active local stakeholders
Materiality — identifying the most relevant issues
for both Orange and its partners
Responsiveness — forming action plans
for the short, medium and long term
We use the salient points from this dialogue to
develop the materiality matrix (see opposite).
By comparing the importance of these issues for
stakeholders and their impact on our own
performance, we are able to identify our key priorities
more easily.
Developments in 2018
Our 2018 materiality matrix incorporates the growing
focus of stakeholders on environmental and
regulatory issues as well as matters relating to
emerging technologies (5G, Internet of Things, etc.).
The matrix reflects these shifts in two ways:
A number of issues have been repositioned. For
example, stakeholders’ concerns over climate
change were accentuated as a result of increasingly
frequent extreme climate events in 2018. At Orange
too, climate change has been given greater
importance with the Group’s commitment to
achieving carbon neutrality. Digital inclusion, which
has become a pillar of our identity and sustainable
performance, is now positioned as a high priority for
the Group.
Certain titles have been reworded to better reflect
the core issues. For example, “Safe and responsible
use of digital technology (child protection and
exposure to screens)” more accurately represents
the priority Orange gives to protecting children. Last
year’s title “Human rights and digital services” has
become “Human rights and freedom of expression”,
which better expresses the responsibility of digital
services to protect democracy and prevent
misinformation.
The maturity factor
This year, we added an additional angle to the
materiality matrix: the Group’s maturity in each of
the issues identified. The maturity assessment was
predominantly based on the findings of three leading
ratings agencies (ISS oekom, Vigeo and EcoVadis).
We then incorporated our Carbon Disclosure Project
(CDP) climate change score and an assessment
provided by our internal experts. Orange was
deemed mature, performing well in the areas of
employee experience and network quality and
reliability. We continue to develop greater maturity in
other priority areas such as digital inclusion and
customer relationships and trust, to ensure we meet
our objectives.
Orange 2018 Integrated Annual Report
Our materiality matrix
Ethics and the customer relationship
Environment
Society
Employee experience
Degree of maturity
s
n
o
i
t
a
t
c
e
p
x
e
r
e
d
o
h
e
k
a
t
S
l
Electromagnetic
fields
Safe and
responsible
use of digital
technology
(child protection
and exposure
to screens)
Social and
economic footprint
and local jobs
Energy and climate
change
Human rights
and freedom
of expression
Customer
relationships
and trust
Digital
inclusion
Network and
service quality
and reliability
Privacy and
data protection
Financial
inclusion
Transparent products
and services
Access to
essential needs
Supplier
relationships
Ethics and
anticorruption
Circular economy and eco-design
of products and services
Occupational health
and safety
Skills
development
Quality of life
at work
Diversity and equal
opportunities
Labour relations
Philanthropy
j
s
e
r
r
o
u
e
a
M
a
M
j
s
t
e
n
t
a
n
c
a
fi
t
r
i
n
o
g
p
m
s
y
r
s
e
è
V
r
T
i
i
s
t
e
n
t
a
n
c
a
fi
t
r
i
n
o
g
p
m
S
i
I
Biodiversity
Significant
Very significant
Major
Impact on Orange’s performance
122
Managing
risks to support
sustainable
performance
—
Our strategy and operations expose us to a
number of risks* that can affect our
stakeholders, prevent us from achieving our
targets, invoke legal liability or undermine trust
in our brand. Several years ago, we put in place a
structure, procedures and systems to detect
risks and take targeted measures to prevent and
mitigate them.
Our internal control and risk management systems
address the various operational, legal, financial and
non-financial risks we face (see table on the
following page). They are based on an organisation
and procedures that have been put in place by
Senior Management, the Executive Committee and
employees. The goal is to provide reasonable
assurance that we will meet our operating targets,
comply with current laws and regulations and
disclose reliable financial and non-financial
information. The systems are defined, deployed,
managed and assessed by the Group Audit,
Control and Risk Management Department
(DACRG) based on processes certified under the
ISO 9001 quality management standard.
Group-wide involvement
Within this integrated approach to audit, control
and risks, the DACRG sets out the Group’s risk
management strategy and implements it by:
anticipating risks relating to the strategic plan
and identifying emerging risks;
leading the risk mapping and assessment
process on behalf of the Executive Committee’s
Risk Committee;
supporting subsidiaries and entities when they
prepare their own risk maps and following up
their action plans. It does this in conjunction with
the relevant departments (in particular the Group
CSR Department regarding non-financial risks),
and the network of risk managers and internal
control officers in the subsidiaries and entities.
At least once a year, each department identifies and
maps the risks faced by its stakeholders within its
scope and prepares additional action plans to
mitigate those risks more effectively. Progress on
these plans, the list of significant events and
updates to the risk map are discussed during
internal control reviews in each department.
At the same time, subsidiaries and entities roll out
and continuously improve their risk management
system by:
training subsidiary directors and CEOs in risk
management;
aligning internal audit scopes with the principal
risks;
circulating policies and practices defined and
identified by the Group;
setting up self-assessment processes.
The Executive Committee’s Risk Committee also
examines the Group’s risk management system
once a year. The Board of Directors’ Audit
Committee is tasked with ensuring the
effectiveness of internal control and risk
management systems (including those relating to
financial security laws).
Under the French Afep-Medef Code as amended in
June 2018, the Audit Committee now also reviews
exposure to social and environmental risks.
* For more information about risks, see the Duty of care plan and
Section 2.1 (Risk factors) of the 2018 Registration Document.
Orange 2018 Integrated Annual Report
Board of Directors
Audit Committee
Monitors the effectiveness of internal control and risk management systems
Executive Committee
Risk Committee
Reviews the yearly risk management report
Puts forward suggestions to the Executive Committee regarding risk management and the quality of internal control
Delegate Chief Executive Officer
Finance, Performance and Europe
Group Audit, Control and Risk Management
Department (DACRG)
Internal
audit
(independent)
Internal
control
Risk
management
Fraud
& Revenue
Assurance
General
control
Credit
management
Defines, deploys, manages and assesses the Group’s internal control and risk management systems
on behalf of the Executive Committee
Implements processes certified under ISO 9001 (2015) with an integrated approach to audit, control and risks
In cooperation with
Group Corporate
Social Responsibility
Department
Other Group Departments including
those responsible for security,
data protection, compliance,
human resources, procurement,
insurance, etc.
Lead and support
Communicate
Operating subsidiaries/entities
Roll out and continuously improve risk management and internal control systems
Identify, assess, mitigate and report the risks within their scope
124
Risk
Description & impact
Examples of protection/prevention measures
Breach of integrity or
confidentiality of data or
information
Unlawful access through cyberattacks or injunctions from authorities may
compromise data integrity, confidentiality or storage and potentially invade individuals’
privacy or compromise business continuity
The Group Security Department oversees a comprehensive security system. It also contributes to improving measures to
protect infrastructure, products and services by implementing a Security by Design approach (to address security issues
right from the design phase) and rolling out targeted mechanisms to protect and supervise networks and the IT system.
The Data Protection Officer coordinates all privacy-related programmes and measures.
The Group helps develop cybersecurity skills at the Orange Cyberdefense Academy.
The Group is improving digital inclusion and addressing other social issues by expanding its network and developing
specific packages and services, and through the Orange Foundation and Duty of care plan.
It runs employee training and awareness programmes on a regular basis, and the Governance and Corporate Social and
Environmental Responsibility Committee ensures employees adhere to charters and policies and oversees compliance
programmes (ethics, anti-corruption, CSR, etc.).
The associated management and control systems undergo regular internal and external assessments.
Damage to the Group’s image and reputation due to non-compliance with internal and
external rules
Sanctions against the company and/or its employees
Damage to Group property and assets
Ethical breach
Overreliance
on a supplier
Deterioration in quality or performance due to failure on the part of a key supplier
Contractual terms imposed by a monopoly supplier
Business interruption or the need to review our strategy, in particular regarding
new technologies
The purchasing policy, steered by the Global Procurement & Supply Chain Department, includes a risk assessment in
the supplier selection and monitoring process. The Group conducts regular audits of its suppliers and closely monitors
suppliers at risk of bankruptcy. The Group updates its procurement strategy and frequently reviews its choice of
suppliers in light of market threats and opportunities.
Disruptive business models or
innovation
Infrastructure obsolescence
Loss of contact with customers
Drop in performance due to disruptive technology, business models or regulation that
could affect the appeal or profitability of our products and services
The Group’s investment policy focuses heavily on research and innovation.
The Technology and Global Innovation Department, based at Orange Gardens (the Group’s eco-campus for internal and
open innovation), gathers strategic intelligence on the digital ecosystem, takes part in standard-setting bodies
(e.g. GSMA) and supports the Group’s large-scale transformation projects.
Failure to adapt
and/or diversify
Financial losses
Decline in employee morale
Damage to our image and reputation
The Group continues to make progress towards its strategic development goals, led by the various relevant
departments including its new Transformation Department. The practical measures it is taking to do so include entering
into partnerships with key industry stakeholders, investing in ventures that will further our strategic innovation and
diversification priorities, and working on projects aimed at improving the Group’s working methods.
Geopolitical and
macroeconomic instability
Major business disruption
Lack of key or rare skills
Threat to the security and safety of people and property
Breaches of fundamental freedoms resulting from injunctions from local authorities
Decline in financial performance
Orange uses monitoring systems to anticipate a number of eventualities (including national conflicts, international
tensions, financial crashes, etc.) and to take appropriate steps to avoid or mitigate the risks and protect people and
assets.
Loss in quality or disruption or interruption of services provided due to a technical
malfunction, operational failure, cyberattack, damage to our infrastructure or
injunctions from authorities
Delayed launch or discontinuation of new businesses or transformation initiatives
Major business interruption
Increased reliance on suppliers
Decline in employee morale
Orange factors resilience into its solutions right from the design phase, using a variety of mechanisms (Secure by
Design, backups, thorough acceptance tests, etc.).
The Business Continuity Management System (BCMS) run by the Security Department is deployed across our business
units. The system includes backup sites, system redundancy, business recovery plans, etc.
The Group implements a strategic workforce planning policy and is reinforcing job-related training (Cyberdefense
Academy, Sonatel Academy, etc.) to make sure it has the new expertise it needs. As and when required, it also invests in
or acquires specialised businesses.
Non-compliance with laws,
regulations or
obligations (contractual or
otherwise)
Additional costs to achieve compliance, in particular in areas where the legal
framework remains in flux (IoT, AI, blockchain, etc.)
Litigation, administrative, civil or criminal sanctions at either the local
or international level, revocation of business licences
The Group Legal Department supervises all our regions and business operations, including special programmes and
units focusing on present and future key issues, e.g. the European General Data Protection Regulation, duty of care,
compliance with international economic sanctions, international anti-corruption laws, Task Force on Climate-related
Financial Disclosures (TCFD), etc.
Health and safety of people
Deterioration in working conditions
Physical and mental harm to employees, customers and partners
Exposure of people to phenomena that science has not conclusively ascertained to be
entirely safe (electromagnetic waves, prolonged exposure to screens, etc.)
Restrictions on the use of mobile devices, jeopardising the telecommunications
sector’s business model, litigation
The Group pursues a proactive risk prevention policy with its own budget and special agreements. The policy has led to
the application of the social contract and our pledge to be a digital and caring employer, the occupational health office’s
initiatives and the implementation of our Duty of care plan.
The Group ensures its equipment and devices meet all current health requirements and supports public and private
epidemiological research programmes (conducted by the WHO, SCENIHR, etc.). It develops tools to measure wave
intensity and circulates safety information to employees and customers, in particular through programmes on the
responsible use of technology and websites designed to support families (betterinternetforkids.eu, bienvivreledigital.fr,
etc.).
126
126
Our Essentials2020 indicators
Orange 2018 Integrated Annual Report
Indicator Objective Description
Actions
Customer
experience
Become and
remain No.1
in Net Promoter
Score (NPS)
for 3 out of 4
customers
by 2018
NPS is the customer recommendation metric that
most accurately reflects the degree of customer loyalty
to a brand. It is measured by asking customers
whether they would recommend a company to family
or friends. The score is calculated by deducting the
percentage of those who would not recommend a
brand (detractors) from those who would (promoters),
broken down by country and relevant segment. The
indicator reflects the percentage of customers in
countries and segments where Orange ranks as the
No.1 recommended operator.
Deployment of
networks that can
keep up with
customer usage
Innovative and
competitive services
Digital tools for
simple and smooth
customer interactions
Customer
experience
Offering
enriched
connectivity
Improve
Orange’s Brand
Power Index
(BPI) in our
various markets
by 2018
This indicator is measured using the Brand Equity
model developed by the specialised consultancy firm
Millward Brown. It shows predisposition for the brand
after stripping out specific commercial factors, taking
into account how meaningful, different and prominent
the brand is in customers’ minds. It is a means of
measuring the power of the Orange brand and the
engagement of consumers.
Unification of the
brand identity across
the world
Consistency between
communication
campaigns, the brand
identity and customer
experience
Triple the average
data throughput
of our customers
on both fixed
and mobile
networks
by 2018 compared
with 2014
Calculated in Mbps:
Based on external and independent measurements
of average data throughputs delivered by our 3G
and 4G networks, respectively.
Based on queries to fixed internet databases of active
customers (ADSL and fibre), and measurement of
the data throughput configured for each.
Average data throughputs reflect our capacity to offer
our customers richer connectivity, in line with growing
data usage (streaming, HDTV, etc.).
Deployment of mobile
networks to improve
quality and increase
coverage where
customers need it
Deployment of very
high-speed
broadband networks
to meet the needs of
individuals
Reinventing
the customer
relationship
Conduct 50%
of customer
interactions in
Europe via digital
channels
by 2018
The share of digital in all customer interactions
(purchase, management, service) in France and the
rest of Europe across all channels (digital channels, call
centres, stores).
Tools and processes
for a bespoke
experience in stores,
online and in call
centres
Digital tools for
simple and smooth
customer interactions
Percentage of customers
who rank Orange as
the No. 1 recommended operator
Results
2015
2016
2017
2018
47%
55%
68%
57%*
*The objective of 75% was not met overall, but the Group remains leader in 15 countries
out of 23 (scores not measured in Luxembourg or the Central African Republic). Orange
also scores particularly well in France where it is No. 1 across all segments (mobile,
broadband, convergence and low cost).
Number of
countries where
Brand Power Index
is improving
2015 8/9
2016 6/9
2017 6/10
2018 7/10
Average throughput of fixed
and mobile networks
Percentage of customer interactions
via digital channels
2014 reference year
2015 × 1.8
2016 × 2.5
2017 × 3.2
2018 × 7.6
2014
2015
2016
2017
2018
Broadband
and convergence
Mobile
Fixed
networks
Mobile
networks
14/23
11/23 vs 2014
14/24 vs 2014
15/25 vs 2014
× 1.4
× 1.9
× 2.5
× 3.1
30%
32.5%
40%
45%
52%
128
Indicator Objective Description
Actions
Building a
company model
that is both
digital
and caring
Reach 90%
of employees
recommending
Orange as an
employer
in 2018
Orange is committed to building a caring and
digital employer model. It conducts employee
surveys both in France and around the world to
measure the percentage of employees who
would recommend Orange as an employer.
This percentage has been measured twice a year
since 2010 in a survey conducted by an
independent firm. In 2017, for the first time in
France, all employees were asked to take part in
an online Employee Barometer. Previously, only
a sample of 4,000 employees answered the
survey by phone. This survey was implemented
outside of France in 2011. The questionnaire
– 49 questions structured into the 3 priorities that
make up the Orange promise – has been adapted
and standardised to apply to all Group
employees.
Developing new skills
Improving collective agility
by simplifying processes
and facilitating more
collaborative working
methods
Enhancing employee
engagement through
employee share ownership,
contributing to innovation
and intrapreneurial
programmes
Guiding
businesses
through their
own digital
transformation
Increase the share
of IT & integration
services in the
Orange Business
Services revenue
mix by
10 percentage
points by 2020
Orange wants to be the trusted partner for
companies undergoing digital transformation
that requires them to reshape their business
models, services and offers. Orange will
measure the success of the transformation of its
enterprise business model through the share of
IT and integration services in the Orange
Business Services revenue mix (excluding the
mobile segment in France).
Support to business
customers on IT migrations
to the cloud
Skills development in
artificial intelligence and data
analysis
Delivery of cybersecurity
solutions for customer
infrastructure
Diversifying
by capitalising
on our
assets
Successfully
diversify into new
services to exceed
€1 billion in
revenues
in 2018
Orange is diversifying and exploring new regions
in order to better anticipate the key needs of its
customers and develop new services (in
particular financial and IoT-related services).
Development of complete
solutions based on connected
devices and appliances and
service platforms (smart cities,
connected cars, smart homes)
Broadening the scope of
Orange Bank mobile financial
services in France
Launch of Orange Bank
outside France
Percentage of employees
who would recommend Orange
as a great place to work in France
and around the world
Share of IT & integration services
in the Orange Business Services
revenue mix
Revenues from new services
Orange 2018 Integrated Annual Report
Results
2014 85%
2015 86.9%
2016 81%
2017 83%
2018 81%
2014
2015
2016
2017
2018
2015
2016
2017
2018
France
International
84.3%
86.2%
France and international
28.4%
30%
32.2%
33.2%
36.3%
€228 million in revenues
€323 million in revenues
and other income
€615 million in revenues
and other income
€862 million in revenues
and other income
130
Group indicators
Indicator
Definition
Actions
Financial indicators
Increase adjusted
EBITDA in 2018
versus 2017 on a
comparable basis
Adjusted EBITDA corresponds to operating income
before depreciation and amortisation, before impacts
related to acquisitions of controlling interests, before
impairment of goodwill and assets, and before share
of profits of associates and joint ventures, adjusted
for major disputes, specific labour expenses, review
of the portfolio of shares and operations, and
restructuring and consolidation costs.
Revenue growth and further progress
in our operational efficiency plan
Adjusted EBITDA
Orange 2018 Integrated Annual Report
Data
2018
(up 2.7% on a comparable basis)
€13 billion
Increase operating
cash flow in 2018
versus 2017 on a
comparable basis
Operating cash flow is equal to adjusted EBITDA
minus CAPEX (on tangible and intangible assets
excluding telecommunication licences and
investments through finance leases).
Our continued efforts to reduce costs
and tightly control investments
Operating cash flow
2018
€5.6 billion
(up 1.7% on a comparable basis)
Maintain the ratio
of net financial debt
to adjusted EBITDA
in telecom activities
at around 2×
in the medium
term
Net debt is calculated as the amount of financial
liabilities, excluding operational liabilities (converted
into euros at the exchange rate at the end of the
reporting period), including derivatives (assets and
liabilities), minus cash collateral deposits, cash and
cash equivalents and investments at fair value.
Growth in adjusted EBITDA and
careful management of our balance
sheet
Non-financial indicators
Reduce CO2
emissions by 50%
per customer
usage between
2006 and 2020
Orange has actively controlled and reduced the
environmental impact of its operations since 2007.
Orange set a new objective at the COP21 climate
conference in late 2015. From 2016, the CO2 emissions
generated by the 10 main countries accounting for 90%
of the Group’s internal emissions (networks, buildings,
vehicles) are calculated based on customer usage (base
year: 2006). The method for calculating this indicator
has been devised and audited by independent bodies.
The indicator measures different types of usage (voice,
data, TV, internet, etc.).
Monitoring the energy used by
networks and pooling equipment
with other operators
Cutting CO2 emissions generated
by buildings, vehicles and travel
Extending ISO 14001 certification
across the entire Group
Engaging with international
standards organisations (ITU, ETSI,
Cenelec, etc.)
Embedding circular economy
principles in our processes by 2020
Net debt/adjusted EBITDA of
telecom activities
2018
1.93×
Reduction of CO2 emissions
per customer usage
2016
2017
2018
2020
48.23%
50.03%
56.59%
50%
132
Indicator
Definition
Actions
Increase
the number of
entrepreneurs
supported by our
initiatives to boost
local economic and
social development
by 15% per year
As part of our position as an operator
engaged in the communities of our operating
regions and in addition to our Open Innovation
programme, we support the development of
new forms of business and entrepreneurship
at the local level. We provide support directly
through targeted actions implemented by
Orange, as well as indirectly by helping to
drive momentum in local digital landscapes.
Promoting the creation of business
incubators in Africa
Supporting emerging start-ups in Africa
and the Middle East through the annual
Orange Social Entrepreneur Prize since 2011
Helping create venture funds
Supporting start-ups with a number of tools
for guidance (Orange Fabs, etc.)
Increase the
involvement of
women in our
management
networks to 35%
by 2020
Collect 30%
of unwanted
mobiles from
customers
in Europe
by 2020
By 2020, conduct
supplier audits
as part of the Joint
Audit Cooperation
(JAC) as follows:
– Tier 1: 10%
– Tier 2: 35%
– Tier 3: 50%
– Tier 4: 5%
Ensuring women are able to access
managerial positions is a top priority in our
workplace diversity policy.
Deploying a range of initiatives to identify
new talent among women
Training managers to limit unconscious bias
and the impact of stereotypes
Ensuring gender balance within talent pools
(as part of Orange Graduate Programme
recruitment, for example)
Natural resources are finite, which is why
Orange has embedded the concept of a
circular economy directly in its processes. In
particular, this means recycling or reusing
equipment and handsets, especially unwanted
mobiles. Percentages refer to the number of
mobiles collected as a proportion of the
number of mobiles sold in Europe.
Working with our suppliers to extend
lifecycles and reuse the maximum amount of
network hardware by taking a modular
approach
Offering commercial incentives and
organising eco-citizenship initiatives across
our distribution networks and with partners
(public authorities, business customers, etc.)
In 2011, Orange decided to set up an
association of telecoms operators, known as the
Joint Audit Cooperation (JAC). We also agreed
to be audited by the JAC. It verifies, assesses
and improves the way suppliers implement CSR
principles by drawing up corrective action plans
when necessary. The KPIs were reworked in
2016 to steer audits more towards covering the
deepest levels of the supply chain, which are
often where most cases of non-compliance are
found. Tier 4 was covered in 2018. Working
more closely with Tier 1 suppliers naturally led to
a reduction in the number of audits needed,
allowing us to focus on the next levels.
Cooperating with the JAC, which helps us
benefit from a larger panel of audited
suppliers
Working with our Tier 1 and 2 suppliers to
reach the deeper levels of the supply chain
Implementing a full audit process across our
own portfolio of suppliers
Creating the JAC Academy in 2018 to train
our Tier 1 suppliers in JAC audits to further
spread the initiative among their own
suppliers
Orange 2018 Integrated Annual Report
Numbers of entrepreneurs
supported by our social and
economic development initiatives
Percentage of women in our
management networks
Percentage of unwanted
mobiles collected
Data
2015
2016
2017
2018
2015
2016
2017
2018
2020
2015
2016
2017
2018
2020
150
239
435
≈500
25.2%
27.3%
28.5%
29.8%
35%
14%
15.3%
15.2%
15.4%
30%
Pre-2015
average
Tier 1 40%
Tier 2 49%
Tier 3 5%
2015
2016
2017
2018
Tier 1
Tier 2
Tier 3
21%
48%
31%
Tier 1
Tier 2
Tier 3
16%
55%
29%
Tier 1
Tier 2
Tier 3
31%
45%
24%
Tier 1
Tier 2
Tier 3
Tier 4
24%
69%
6%
1%
2020
Tier 1
Tier 2
Tier 3
Tier 4
10%
35%
50%
5%
Orange - Communication and Brand Department
78, rue Olivier de Serres – 75015 Paris (France)
+33 (0)1 44 44 22 22
A French société anonyme with a share capital of €10,640,226,396
Registration number 380 129 866
(Paris Trade and Companies Register)
Copywriting and graphic design
Pelham Media & Studio L’Éclaireur
Translation
Alto International
Credits
Stéphanie Jayet, Getty Images, Nicolas Gouhier, Studio Harcourt Paris, French Senate, Orange brand site
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