XML 330 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Segment information
12 Months Ended
Dec. 31, 2019
Disclosure of operating segments [abstract]  
Segment information

Note 1    Segment information

1.1    Segment revenue

(in millions of euros)

  

France

  

Spain

  

Europe

December 31, 2019

Revenue(3)

 

18,154

 

5,280

 

5,783

Convergence services

 

4,397

 

2,092

 

623

Mobile services only

 

2,324

 

1,161

 

2,143

Fixed services only

 

4,086

 

501

 

644

IT & integration services

 

 

6

 

232

Wholesale

 

5,487

 

901

 

1,071

Equipment sales

1,351

620

898

Other revenue

509

0

173

External

 

17,492

 

5,230

 

5,695

Inter-operating segments

 

662

 

50

 

88

December 31, 2018

 

 

 

Revenue(3)

 

18,211

 

5,349

 

5,687

Convergence services

 

4,458

 

2,143

 

467

Mobile services only

 

2,348

 

1,215

 

2,194

Fixed services only

 

4,168 (4)

 

496

 

697

IT & integration services

 

 

1

 

158

Wholesale

 

5,342

 

810

 

1,150

Equipment sales

1,410

684

868

Other revenue

485

153

External

17,615

5,299

5,601

Inter-operating segments

596

50

86

December 31, 2017

 

 

 

  

Revenue(3)

 

18,046

 

5,231

 

5,578

Convergence services

 

4,045

 

2,078

 

305

Mobile services only

 

2,409

 

1,229

 

2,254

Fixed services only

 

4,344 (4)

 

501

 

757

IT & integration services

 

 

 

129

Wholesale

 

5,388

 

754

 

1,133

Equipment sales

 

1,386

 

669

 

840

Other revenue

 

474

 

 

160

External

 

17,463

 

5,177

 

5,496

Inter-operating segments

 

583

 

54

 

82

(1)Including, in 2019, revenue of 5,233 million euros in France, 21 million euros in Spain, 1,077 million euros in other European countries and 1,489 million euros in other countries.

Including, in 2018, revenue of 5,207 million euros in France, 21 million euros in Spain, 665 million euros in other European countries and 1,399 million euros in other countries.

Including, in 2017, revenue of 5,235 million euros in France, 34 million euros in Spain, 654 million euros in other European countries and 1,328 million euros in other countries.

(2)Including revenue of 1,374 million euros in France in 2019, 1,412 million euros in 2018 and 1,530 million euros in 2017.
(3)The description of different sources of revenue is presented in Note 4.1.
(4)Including, in 2019, fixed only broadband revenue of 2,699 million euros and fixed only narrowband revenue of 1,387 million euros.

Including, in 2018, fixed only broadband revenue of 2,565 million euros and fixed only narrowband revenue of 1,603 million euros.

Including, in 2017, fixed only broadband revenue of 2,535 million euros and fixed only narrowband revenue of 1,809 million euros.

(5)Including, in 2019, revenue of 1,289 million euros from voice services and revenue of 2,674 million from data services.

Including, in 2018, revenue of 1,385 million euros from voice services and revenue of 2,612 million euros from data services.

Including, in 2017, revenue of 1,452 million euros from voice services and revenue of 2,700 million euros from data services.

(in millions of euros)

Africa & 

Enterprise (1)

International

Eliminations

Total telecom

Orange Bank

Eliminations

Orange

Middle-East

Carriers

activities

telecom

consolidated

& Shared

activities /

financial

  

Services (2)

  

  

  

  

bank

statements

December 31, 2019

Revenue(3)

 

5,646

7,820

1,498

 

(1,939)

 

42,242

 

 

(4)

42,238

Convergence services

 

 

 

7,111

 

 

7,111

Mobile services only

 

4,230

727

 

(40)

 

10,545

 

 

0

10,544

Fixed services only

 

493

3,963 (5)

 

(178)

 

9,509

 

 

0

9,508

IT & integration services

 

14

2,909

 

(155)

 

3,006

 

 

(3)

3,004

Wholesale

 

780

34

1,077

 

(1,416)

 

7,933

 

 

7,933

Equipment sales

96

187

(6)

3,146

0

3,146

Other revenue

32

421

(142)

992

(1)

991

External

 

5,430

7,437

955

 

 

42,238

 

 

42,238

Inter-operating segments

 

216

383

543

 

(1,939)

 

4

 

 

(4)

December 31, 2018

 

 

 

 

 

Revenue(3)

 

5,190

7,292

1,534

 

(1,879)

 

41,384

 

 

(3)

41,381

Convergence services

 

 

 

7,068

 

 

7,068

Mobile services only

 

3,809

743

 

(37)

 

10,272

 

 

10,272

Fixed services only

 

435

3,997 (5)

 

(189)

 

9,604

 

 

9,604

IT & integration services

 

21

2,312

 

(141)

 

2,351

 

 

(2)

2,349

Wholesale

 

811

35

1,150

 

(1,367)

 

7,931

 

 

7,931

Equipment sales

85

205

-

(7)

3,245

3,245

Other revenue

29

384

(138)

913

(1)

912

External

4,980

6,914

972

41,381

41,381

Inter-operating segments

210

378

562

(1,879)

3

(3)

December 31, 2017

 

  

  

  

 

  

 

 

 

  

Revenue(3)

 

5,030

7,251

1,651

 

(1,926)

 

40,861

 

 

(2)

40,859

Convergence services

 

 

(1)

 

6,427

 

 

6,427

Mobile services only

 

3,600

751

 

(41)

 

10,202

 

 

10,202

Fixed services only

 

431

4,152 (5)

 

(191)

 

9,994

 

 

9,994

IT & integration services

 

7

2,092

 

(150)

 

2,078

 

 

(1)

2,077

Wholesale

 

894

32

1,275

 

(1,411)

 

8,065

 

 

8,065

Equipment sales

 

66

224

 

 

3,185

 

 

3,185

Other revenue

 

32

376

 

(132)

 

910

 

 

(1)

909

External

 

4,779

6,860

1,084

 

 

40,859

 

 

40,859

Inter-operating segments

 

251

391

567

 

(1,926)

 

2

 

 

(2)

1.2    Segment revenue to consolidated net income in 2019

(in millions of euros)

France

Spain

Europe

Africa &

  

  

  

  

Middle-East

Revenue

 

18,154

 

5,280

 

5,783

 

5,646

External purchases

 

(7,036)

 

(2,907)

 

(3,341)

 

(2,465)

Other operating income

 

1,392

 

221

 

148

 

72

Other operating expenses

 

(553)

 

(207)

 

(173)

 

(245)

Labor expenses

 

(3,730)

 

(271)

 

(678)

 

(507)

Operating taxes and levies

 

(893)

 

(160)

 

(84)

 

(495)

Gains (losses) on disposal of fixed assets, investments and activities

 

 

 

 

Restructuring costs

 

 

 

 

Depreciation and amortization of financed assets

(14)

Depreciation and amortization of right-of-use assets

(175)

(298)

(147)

(121)

Impairment of right-of-use assets

Interests on debts related to financed assets(3)

(1)

Interests on lease liabilities(3)

(9)

(12)

(17)

(70)

EBITDAaL (1)

 

7,135

 

1,646

 

1,492

 

1,815

Significant litigations (1)

 

 

 

 

Specific labour expenses (1)

 

(32)

 

 

2

 

Fixed assets, investments and businesses portfolio review (1)

4

56

63

(19)

Restructuring programs costs (1)

(45)

(12)

(55)

(4)

Acquisition and integration costs (1)

0

(5)

Depreciation and amortization of fixed assets

(3,179)

(1,076)

(1,119)

(972)

Reclassification of translation adjustment from liquidated entities

0

2

Impairment of goodwill

(54)

Impairment of fixed assets

(1)

(15)

89

Share of profits (losses) of associates and joint ventures

0

1

12

Elimination of interests on debts related to financed assets(3)

1

Elimination of interests on lease liabilities(3)

9

12

17

70

Operating Income

 

3,892

 

626

 

382

 

939

Cost of gross financial debt except financed assets

 

 

 

 

Interests on debts related to financed assets(3)

 

 

 

 

Gains (losses) on assets contributing to net financial debt

 

 

 

 

Foreign exchange gain (loss)

 

 

 

 

Interests on lease liabilities(3)

 

 

 

 

Other net financial expenses

 

 

 

 

Effects resulting from BT sale

 

 

 

 

Finance costs, net

 

 

 

 

Income Tax

 

 

 

 

Consolidated net income of continuing operations

 

 

 

 

Consolidated net income of discontinued operations

 

 

 

 

Consolidated net income

 

 

 

 

(1)See Note 1.8. for EBITDAaL adjustments.
(2)Orange Bank's net banking income is recognized in other operating income and amounts to 40 million euros in 2019. The cost of risk is included in other operating expenses and amounts to (10) million euros in 2019.
(3)Presentation adjustments allow the reallocation of the lines of specific items identified in the segment information to the operating revenue and expense lines presented in the consolidated income statement. Interests on debts related to financed assets and interests on lease liabilities are included in segment EBITDAaL. They are excluded from segment operating income and included in net finance costs presented in the consolided income statement.

(in millions of euros)

Enterprise

International

Elimination

Total

Orange

Eliminations

Total

Presentation

Orange

Carriers &

telecom

telecom

Bank (2)

telecom

adjust-

 consoli-

Shared

activities

 activities

activites /

ments(3)

dated financial

  

Services

  

bank

  

  

 

statements

Revenue

 

7,820

1,498

(1,939)

42,242

 

(4)

 

42,238

 

 

42,238

External purchases

 

(3,991)

(2,041)

3,974

(17,806)

(96)

 

5

 

(17,897)

 

 

(17,897)

Other operating income

 

169

2,088

(3,396)

694

43

 

(17)

 

720

 

 

720

Other operating expenses

 

(634)

(63)

1,361

(515)

(29)

 

17

 

(527)

 

(72)

 

(599)

Labor expenses

 

(1,949)

(1,261)

(8,397)

(73)

 

 

(8,470)

 

(24)

 

(8,494)

Operating taxes and levies

 

(115)

(80)

(1,827)

(1)

 

 

(1,827)

 

 

(1,827)

Gains (losses) on disposal of fixed assets, investments and activities

 

 

 

 

277

 

277

Restructuring costs

 

 

 

 

(132)

 

(132)

Depreciation and amortization of financed assets

(14)

(14)

(14)

Depreciation and amortization of right-of-use assets

(104)

(391)

(1,237)

(3)

(1,239)

(1,239)

Impairment of right-of-use assets

(33)

(33)

Interests on debts related to financed assets(3)

(1)

(1)

1

Interests on lease liabilities(3)

(4)

(10)

(122)

(122)

122

EBITDAaL (1)

 

1,191

(261)

0

13,019

(160)

 

1

 

12,860

 

138

 

Significant litigations (1)

 

(49)

(49)

 

 

(49)

 

49

 

Specific labour expenses (1)

 

1

6

(23)

0

 

 

(23)

 

23

 

Fixed assets, investments and businesses portfolio review (1)

0

172

277

277

(277)

Restructuring programs costs (1)

(16)

(31)

(163)

(2)

(165)

165

Acquisition and integration costs (1)

(11)

(8)

(24)

(24)

24

Depreciation and amortization of fixed assets

(399)

(340)

(7,086)

(24)

(7,110)

(7,110)

Reclassification of translation adjustment from liquidated entities

0

10

12

12

12

Impairment of goodwill

(54)

(54)

(54)

Impairment of fixed assets

1

(1)

73

73

73

Share of profits (losses) of associates and joint ventures

1

(7)

8

8

8

Elimination of interests on debts related to financed assets(3)

1

1

(1)

Elimination of interests on lease liabilities(3)

4

10

122

0

122

(122)

Operating Income

 

772

(499)

0

6,112

(186)

 

1

 

5,927

 

 

5,927

Cost of gross financial debt except financed assets

 

(1,108)

Interests on debts related to financed assets(3)

 

 

 

 

 

(1)

Gains (losses) on assets contributing to net financial debt

 

 

 

 

 

5

Foreign exchange gain (loss)

 

 

 

 

 

76

Interests on lease liabilities(3)

 

 

 

 

 

(122)

Other net financial expenses

 

 

 

 

 

15

Effects resulting from BT sale

 

 

 

 

 

(119)

Finance costs, net

 

 

 

 

 

(1,254)

Income Tax

 

 

 

 

 

(1,447)

Consolidated net income of continuing operations

 

 

 

 

 

3,226

Consolidated net income of discontinued operations

 

 

 

 

 

Consolidated net income

 

 

 

 

 

3,226

1.3    Segment revenue to segment operating income in 2018 and 2017

(in millions of euros)

France

Spain

Europe

Africa &

  

  

  

  

Middle-East

December 31, 2018

Revenue

 

18,211

 

5,349

 

5,687

 

5,190

External purchases

 

(7,167)

 

(3,204)

 

(3,412)

 

(2,521)

Other operating income

 

1,377

 

155

 

130

 

68

Other operating expenses

 

(535)

 

(211)

 

(168)

 

(231)

Labor expenses

 

(3,833)

 

(263)

 

(681)

 

(468)

Operating taxes and levies

 

(977)

 

(161)

 

(93)

 

(391)

Gains (losses) on disposal of fixed assets, investments and activities

 

 

35

 

45

 

20

Restructuring and integration costs

 

 

 

 

Adjusted EBITDA(1)

 

7,076

 

1,700

 

1,508

 

1,667

Significant litigations

 

 

(31)

 

 

Specific labour expenses

 

(614)

Investments and businesses portfolio review

Restructuring and integration costs

 

(114)

 

(9)

 

(6)

 

(12)

Reported EBITDA(1)

 

6,348

 

1,660

 

1,502

 

1,655

Depreciation and amortization

 

(3,148)

 

(1,105)

 

(1,164)

 

(906)

Reclassification of cumulative translation adjustment from liquidated entities

 

 

 

 

Impairment of goodwill

 

 

 

 

(56)

Impairment of fixed assets

 

(2)

 

 

1

 

(46)

Share of profits (losses) of associates and joint ventures

 

 

 

 

12

Operating income

 

3,198

 

555

 

339

 

659

December 31, 2017

Revenue

 

18,046

 

5,231

 

5,578

 

5,030

External purchases

 

(7,123)

 

(3,157)

 

(3,368)

 

(2,444)

Other operating income

 

1,453

 

110

 

146

 

73

Other operating expenses

 

(553)

 

(202)

 

(149)

 

(209)

Labor expenses

 

(3,987)

 

(255)

 

(690)

 

(426)

Operating taxes and levies

 

(965)

 

(160)

 

(88)

 

(418)

Gains (losses) on disposal of fixed assets, investments and activities

 

7

 

 

27

 

6

Restructuring and integration costs

 

 

 

 

Adjusted EBITDA(1)

 

6,878

 

1,567

 

1,456

 

1,612

Significant litigations

 

(115)

 

 

 

Specific labour expenses

 

(307)

1

Investments and businesses portfolio review

(1)

Restructuring and integration costs

 

(12)

 

(4)

 

(39)

 

(21)

Other special items

Reported EBITDA(1)

 

6,444

 

1,563

 

1,417

 

1,591

Depreciation and amortization

 

(3,073)

 

(1,008)

 

(1,157)

 

(902)

Effects resulting from business combinations

Reclassification of cumulative translation adjustment from liquidated entities

 

 

 

 

Impairment of goodwill

 

 

 

(19)

 

(1)

Impairment of fixed assets

 

(3)

 

 

(1)

 

(180)

Share of profits (losses) of associates and joint ventures

 

 

 

 

14

Operating income

 

3,368

 

555

 

240

 

522

(1)See Note 1.8. for EBITDA adjustments.
(2)Orange Bank's net banking income is recognized in other operating income and amounts to 43 million euros in 2018. The cost of risk is included in other operating expenses and amounts to (7) million euros in 2018.

Orange Bank's net banking income is recognized in other operating income and amounts to 73 million euros in 2017. The cost of risk is included in other operating expenses and amounts to (6) million euros in 2017.

(3)Presentation adjustments allow the reallocation of the lines of specific items identified in the segment information to the operating revenue and expense lines presented in the consolidated income statement.
(4)In 2018, mainly related to the effect of the three-year extension of the 2015 French part-time for seniors plans (see Note 6.2).

(in millions of euros)

Enterprise

International

Elimination

Total

Orange

Eliminations

Total

Presentation

Orange

Carriers &

telecom

telecom

Bank(2)

telecom

adjustments(3)

consolidated

Shared

activities

activities

activities /

financial

  

Services

  

  

bank

  

  

 

statements

December 31, 2018

Revenue

 

7,292

1,534

(1,879)

41,384

 

 

(3)

 

41,381

 

 

41,381

External purchases

 

(3,696)

(2,469)

3,990

(18,479)

 

(87)

 

3

 

(18,563)

 

 

(18,563)

Other operating income

 

148

2,146

(3,468)

556

44

(20)

580

580

Other operating expenses

 

(661)

(35)

1,357

(484)

 

(33)

 

21

 

(496)

 

(9)

 

(505)

Labor expenses

 

(1,718)

(1,235)

(8,198)

 

(70)

 

 

(8,268)

 

(806)

 

(9,074)

Operating taxes and levies

 

(120)

(66)

(1,808)

 

(1)

 

 

(1,809)

 

(31)

 

(1,840)

Gains (losses) on disposal of fixed assets, investments and activities

 

80

180

 

 

 

180

 

17

 

197

Restructuring and integration costs

 

 

 

 

 

(199)

 

(199)

Adjusted EBITDA(1)

 

1,245

(45)

13,151

 

(147)

 

1

 

13,005

 

(1,028)

 

Significant litigations

 

(2)

(33)

 

 

 

(33)

 

33

 

Specific labour expenses

 

(68)

(129)

(811)

(1)

(812)(4)

812

Investments and businesses portfolio review

17

17

17

(17)

Restructuring and integration costs

 

(24)

(35)

(200)

 

 

 

(200)

 

200

 

Reported EBITDA(1)

 

1,153

(194)

12,124

 

(148)

 

1

 

11,977

 

 

11,977

Depreciation and amortization

 

(387)

(316)

(7,026)

 

(21)

 

 

(7,047)

 

 

(7,047)

Reclassification of cumulative translation adjustment from liquidated entities

 

1

1

 

 

 

1

 

 

1

Impairment of goodwill

 

(56)

 

 

 

(56)

 

 

(56)

Impairment of fixed assets

 

(2)

(49)

 

 

 

(49)

 

 

(49)

Share of profits (losses) of associates and joint ventures

 

(1)

(8)

3

 

 

 

3

 

 

3

Operating income

 

765

(519)

4,997

 

(169)

 

1

 

4,829

 

 

4,829

December 31, 2017

Revenue

 

7,251

1,651

(1,926)

40,861

 

 

(2)

 

40,859

 

 

40,859

External purchases

 

(3,735)

(2,771)

4,278

(18,320)

 

(63)

 

2

 

(18,381)

 

 

(18,381)

Other operating income

 

169

2,318

(3,741)

528

78

(7)

599

14

613

Other operating expenses

 

(652)

(52)

1,389

(428)

 

(14)

 

8

 

(434)

 

(290)

 

(724)

Labor expenses

 

(1,588)

(1,192)

(8,138)

 

(62)

 

 

(8,200)

 

(374)

 

(8,574)

Operating taxes and levies

 

(139)

(80)

(1,850)

 

(1)

 

 

(1,851)

 

5

 

(1,846)

Gains (losses) on disposal of fixed assets, investments and activities

 

48

88

 

 

 

88

 

(5)

 

83

Restructuring and integration costs

 

 

 

 

 

(167)

 

(167)

Adjusted EBITDA(1)

 

1,306

(78)

12,741

 

(62)

 

1

 

12,680

 

(817)

 

Significant litigations

 

(156)

(271)

 

 

 

(271)

 

271

 

Specific labour expenses

 

(15)

(53)

(374)

(374)

374

Investments and businesses portfolio review

(4)

(5)

(5)

5

Restructuring and integration costs

 

(33)

(58)

(167)

 

 

 

(167)

 

167

 

Other special items

Reported EBITDA(1)

 

1,258

(349)

11,924

 

(62)

 

1

 

11,863

 

 

11,863

Depreciation and amortization

 

(371)

(331)

(6,842)

 

(4)

 

 

(6,846)

 

 

(6,846)

Effects resulting from business combinations

(27)

(27)

(27)

Reclassification of cumulative translation adjustment from liquidated entities

 

(8)

(8)

 

 

 

(8)

 

 

(8)

Impairment of goodwill

 

(20)

 

 

 

(20)

 

 

(20)

Impairment of fixed assets

 

(7)

(190)

 

 

 

(190)

 

 

(190)

Share of profits (losses) of associates and joint ventures

 

1

(9)

6

 

 

 

6

 

 

6

Operating income

 

889

(704)

4,870

 

(93)

 

1

 

4,778

 

 

4,778

1.4    Segment investments

(in millions of euros)

    

France

    

Spain

    

Europe

December 31, 2019

 

  

 

  

 

  

eCapex (1)

 

4,052

 

812

 

869

Elimination of proceeds from sales of property, plant and equipment and intangible assets

 

95

 

185

 

103

Telecommunications licenses

 

0

 

298

 

9

Financed assets

 

144

 

 

Total investments (5)

 

4,291

 

1,296

 

982

December 31, 2018

 

  

 

  

 

  

Capex (2)

 

3,656

 

1,120

 

953

Telecommunications licenses

 

(1)

 

149

 

10

Finance leases

 

1

 

70

 

32

Total investments (6)

 

3,656

 

1,339

 

995

December 31, 2017

 

  

 

  

 

  

Capex (2)

 

3,451

 

1,115

 

897

Telecommunications licenses

 

11

 

10

 

Finance leases

 

1

 

4

 

11

Total investments (7)

 

3,463

 

1,129

 

908

(1)See Note 1.8. for eCapex definition.
(2)See Note 1.8. for Capex definition.
(3)Including investments in tangible and intangible assets in France for 254 million euros in 2019, 275 million euros in 2018 and 285 million euros in 2017.
(4)Including investments in tangible and intangible assets in France for 336 million euros in 2019, 312 million euros in 2018 and 280 million euros in 2017.
(5)Including 2,385 million euros for other intangible assets and 6,181 million euros for tangible assets.
(6)Including 1,895 milliion euros for other intangible assets and 5,883 million euros for tangible assets.
(7)Including 1,893 milliion euros for other intangible assets and 5,677 million euros for tangible assets.

(in millions of euros)

Africa &

Enterprise (3)

International

Eliminations

Total

Orange

Eliminations

Orange

Middle-East

Carriers

telecom

telecom

Bank

telecom

consolidated

& Shared

activities

activities

activities /

financial

Services (4)

and

bank

statements

    

unallocated

    

    

    

    

    

    

    

items

    

    

    

    

December 31, 2019

 

  

  

  

  

  

 

  

 

  

 

  

eCapex (1)

 

987

404

141

7,265

 

28

 

 

7,293

Elimination of proceeds from sales of property, plant and equipment and intangible assets

 

13

5

208

610

 

 

 

610

Telecommunications licenses

 

212

519

 

 

 

519

Financed assets

 

144

 

 

 

144

Total investments (5)

 

1,211

410

348

8,538

 

28

 

 

8,565

December 31, 2018

 

  

  

  

  

  

 

  

 

  

 

  

Capex (2)

 

1,008

353

316

7,406

 

36

 

 

7,442

Telecommunications licenses

 

42

200

 

 

 

200

Finance leases

 

2

31

136

 

 

 

136

Total investments (6)

 

1,052

384

316

7,742

 

36

 

 

7,778

December 31, 2017

 

  

  

  

  

  

 

  

 

  

 

  

Capex (2)

 

1,021

382

282

7,148

 

61

 

 

7,209

Telecommunications licenses

 

297

318

 

 

 

318

Finance leases

 

1

24

2

43

 

 

 

43

Total investments (7)

 

1,319

406

284

7,509

 

61

 

 

7,570

1.5    Segment assets

(in millions of euros)

  

France

  

Spain

  

Europe

December 31, 2019

 

  

 

  

 

  

Goodwill

 

14,364

 

6,872

 

2,665

Other intangible assets

 

3,968

 

1,961

 

1,941

Property, plant and equipment

 

15,308

 

3,673

 

4,109

Right-of-use assets

1,174

1,123

930

Interests in associates and joint ventures

 

3

 

 

5

Non-current assets included in the calculation of net financial debt

 

 

 

Other

 

10

 

17

 

22

Total non-current assets

 

34,827

 

13,645

 

9,673

Inventories

 

463

 

61

 

149

Trade receivables

 

1,477

 

667

 

1,210

Other customer contract assets

432

150

380

Prepaid expenses

 

41

 

401

 

43

Current assets included in the calculation of net financial debt

 

 

 

Other

 

699

 

62

 

74

Total current assets

 

3,113

 

1,341

 

1,855

Assets held for sale

Total assets

 

37,940

 

14,986

 

11,529

December 31, 2018

 

  

 

  

 

  

Goodwill

 

14,364

 

6,840

 

2,581

Other intangible assets

 

3,921

 

1,778

 

2,015

Property, plant and equipment

 

14,306

 

3,730

 

4,150

Interests in associates and joint ventures

 

 

1

 

4

Non-current assets included in the calculation of net financial debt

 

 

 

Other

 

11

 

17

 

15

Total non-current assets

 

32,602

 

12,366

 

8,765

Inventories

 

505

 

79

 

171

Trade receivables

 

1,506

 

699

 

1,227

Other customer contract assets

443

140

363

Prepaid expenses

 

68

 

241

 

35

Current assets included in the calculation of net financial debt

 

 

 

Other

 

776

 

60

 

75

Total current assets

 

3,298

 

1,219

 

1,871

Assets held for sale

Total assets

 

35,900

 

13,585

 

10,636

December 31, 2017

 

  

 

  

 

  

Goodwill

 

14,364

 

6,818

 

2,589

Other intangible assets

 

4,099

 

1,742

 

2,204

Property, plant and equipment

 

13,637

 

3,542

 

4,236

Interests in associates and joint ventures

 

 

1

 

4

Non-current assets included in the calculation of net financial debt

 

 

 

Other

 

4

 

17

 

16

Total non-current assets

 

32,104

 

12,120

 

9,049

Inventories

 

402

 

79

 

149

Trade receivables

 

1,590

 

686

 

1,143

Other customer contract assets

451

132

411

Prepaid expenses

 

76

 

152

 

37

Current assets included in the calculation of net financial debt

 

 

 

Other

 

828

 

64

 

45

Total current assets

 

3,347

 

1,113

 

1,785

Assets held for sale

 

 

 

Total assets

 

35,451

 

13,233

 

10,834

(1)Including tangible and intangible assets for 642 million euros in France in 2019, 632 million euros in 2018 and 565 million euros in 2017.
(2)Including tangible and intangible assets for 1,736 million euros in France in 2019, 2,151 million euros in 2018 and 2,144 million euros in 2017. Intangible assets also include the Orange brand for 3,133 million euros.

(in millions of euros)

Africa &

Enterprise (1)

International

Eliminations

Total

Orange

Eliminations

Orange

Middle-East

Carriers

telecom

telecom

Bank

telecom

 consolidated

& Shared

activities

activities

activities /

financial

Services (2)

and

bank

statements

unallocated

  

  

items

  

  

  

  

December 31, 2019

 

  

  

  

 

  

 

  

 

  

 

  

 

  

Goodwill

 

1,481

2,245

18

 

 

27,644

 

 

27,644

Other intangible assets

 

2,318

695

3,766

 

 

14,649

 

88

 

14,737

Property, plant and equipment

 

3,674

526

1,128

 

 

28,418

 

5

 

28,423

Right-of-use assets

881

314

1,815

6,237

26

6,263

Interests in associates and joint ventures

 

84

1

10

 

 

103

 

 

103

Non-current assets included in the calculation of net financial debt

 

 

685

 

685

 

 

685

Other

 

22

25

19

 

2,104

2,219

 

1,268

(4)

(27)

3,460

Total non-current assets

 

8,461

3,805

6,757

 

2,789

 

79,956

 

1,387

(27)

81,316

Inventories

 

76

60

96

 

 

906

 

906

Trade receivables

 

720

1,067

974

 

(771)

 

5,343

 

1

(24)

5,320

Other customer contract assets

11

237

1,209

1,209

Prepaid expenses

 

87

143

26

 

(16)

 

725

 

5

0

730

Current assets included in the calculation of net financial debt

 

 

10,820

 

10,820

 

10,820

Other

 

968

216

330

 

145

 

2,494

 

3,511

(5)

(3)

6,002

Total current assets

 

1,862

1,723

1,426

 

10,178

 

21,498

 

3,517

 

(28)

24,987

Assets held for sale

Total assets

 

10,323

5,527

8,182

 

12,967

 

101,454

 

4,904

 

(55)

106,303

December 31, 2018

 

 

 

 

 

Goodwill

 

1,542

1,830

17

 

 

27,174

 

 

27,174

Other intangible assets

 

2,106

388

3,780

 

1

 

13,989

 

84

 

14,073

Property, plant and equipment

 

3,443

540

1,519

 

 

27,688

 

5

 

27,693

Interests in associates and joint ventures

 

82

17

 

 

104

 

 

104

Non-current assets included in the calculation of net financial debt

 

 

816

 

816

 

 

816

Other

 

23

23

19

 

3,123

(3)

3,231

 

1,637

(4)

(27)

4,841

Total non-current assets

 

7,196

2,781

5,352

 

3,940

 

73,002

 

1,726

 

(27)

74,701

Inventories

 

82

49

79

 

 

965

 

 

965

Trade receivables

 

761

821

946

 

(631)

 

5,329

 

 

(34)

5,295

Other customer contract assets

8

212

1,166

1,166

Prepaid expenses

 

89

71

82

 

(17)

 

569

 

2

 

571

Current assets included in the calculation of net financial debt

 

 

7,886

 

7,886

 

 

7,886

Other

 

811

174

374

 

51

 

2,321

 

3,687

(5)

6,008

Total current assets

 

1,751

1,327

1,481

 

7,289

 

18,236

 

3,689

 

(34)

21,891

Assets held for sale

Total assets

 

8,947

4,108

6,833

 

11,229

 

91,238

 

5,415

 

(61)

96,592

December 31, 2017

 

  

  

  

 

  

 

  

 

  

 

  

  

Goodwill

 

1,629

1,493

18

 

 

26,911

 

 

26,911

Other intangible assets

 

2,160

342

3,720

 

1

 

14,268

 

71

 

14,339

Property, plant and equipment

 

3,193

479

1,575

 

 

26,662

 

3

 

26,665

Interests in associates and joint ventures

 

70

1

1

 

 

77

 

 

77

Non-current assets included in the calculation of net financial debt

 

 

895

 

895

 

 

895

Other

 

13

22

18

 

3,166

(3)

3,256

 

1,496

(4)

(27)

4,725

Total non-current assets

 

7,065

2,337

5,332

 

4,062

 

72,069

 

1,570

 

(27)

73,612

Inventories

 

78

45

74

 

 

827

 

 

827

Trade receivables

 

690

807

881

 

(613)

 

5,184

 

 

(9)

5,175

Other customer contract assets

210

1,204

1,204

Prepaid expenses

 

67

48

93

 

(19)

 

454

 

1

 

455

Current assets included in the calculation of net financial debt

 

 

8,014

 

8,014

 

 

8,014

Other

 

757

165

268

 

146

 

2,273

 

3,941

(5)

(152)

6,062

Total current assets

 

1,592

1,275

1,316

 

7,528

 

17,956

 

3,942

 

(161)

21,737

Assets held for sale

 

 

 

 

 

Total assets

 

8,657

3,612

6,648

 

11,590

 

90,025

 

5,512

 

(188)

95,349

(3)Including BT shares in the amount of 659 million euros in 2018 and 814 million euros in 2017. All BT shares have been sold in June 2019. (see Note 12.7)
(4)Including 1,259 million euros of non-current financial assets related to Orange Bank activities in 2019, 1,617 million euros in 2018 and 1,464 million euros in 2017 (see Note 16.1.1).
(5)Including 3,098 million euros of current financial assets related to Orange Bank activities in 2019, 3,075 million euros in 2018 and 3,275 million euros in 2017 (see Note 16.1.1).

1.6    Segment equity and liabilities

(in millions of euros)

  

France

  

Spain

  

Europe

December 31, 2019

Equity

 

 

 

Non-current lease liabilities

961

945

788

Fixed assets payables

 

35

 

366

 

251

Non-current employee benefits

 

1,461

 

17

 

34

Non-current liabilities included in the calculation of net financial debt

 

 

 

Other

 

574

 

80

 

301

Total non-current liabilities

 

3,030

 

1,409

 

1,373

Current lease liabilities

170

284

166

Fixed assets payables

 

1,144

 

563

 

407

Trade payables

 

2,682

 

1,051

 

935

Customer contracts liabilities

1,015

98

335

Current employee benefits

 

1,224

 

33

 

110

Deferred income

 

2

 

 

6

Current liabilities included in the calculation of net financial debt

 

 

 

Other

 

781

 

178

 

268

Total current liabilities

 

7,017

 

2,207

 

2,226

Liabilities related to assets held for sale

Total equity and liabilities

 

10,047

 

3,616

 

3,599

December 31, 2018

 

 

 

Equity

 

 

 

Fixed assets payables

 

48

 

119

 

291

Non-current employee benefits

 

1,726

 

11

 

33

Non-current liabilities included in the calculation of net financial debt

 

 

 

Other

 

635

 

126

 

243

Total non-current liabilities

 

2,409

 

256

 

567

Fixed assets payables

 

1,116

 

598

 

398

Trade payables

 

2,598

 

1,055

 

926

Customer contracts liabilities

1,091

66

322

Current employee benefits

 

1,307

 

38

 

102

Deferred income

 

2

 

 

3

Current liabilities included in the calculation of net financial debt

 

 

 

Other

 

846

 

148

 

253

Total current liabilities

 

6,960

 

1,905

 

2,004

Liabilities related to assets held for sale

Total equity and liabilities

 

9,369

 

2,161

 

2,571

December 31, 2017

 

  

 

  

 

  

Equity

 

 

 

Fixed assets payables

75

327

Non-current employee benefits

 

1,601

5

33

Non-current liabilities included in the calculation of net financial debt

 

Other

 

663

134

263

Total non-current liabilities

 

2,339

139

623

Fixed assets payables

 

1,438

532

392

Trade payables

 

2,487

985

843

Customer contracts liabilities

 

1,162

78

280

Current employee benefits

 

1,451

38

109

Deferred income

 

3

3

Current liabilities included in the calculation of net financial debt

 

Other

 

699

126

467

Total current liabilities

 

7,240

1,759

2,094

Liabilities related to assets held for sale

Total equity and liabilities

 

9,579

1,898

2,717

(1)Including in 2019, 101 million euros of non-current financial liabilities, 90 million euros in 2018 and 100 million euros in 2017.
(2)Including in 2019, 4,280 million euros of current financial liabilities related to Orange Bank activities (See Note 16.1).

Including in 2018, 4,835 million euros of current financial liabilities related to Orange Bank activities.

Including in 2017, 4,941 million euros of current financial liabilities related to Orange Bank activities.

(in millions of euros)

Africa &

Enterprise

International

Eliminations

Total

Orange

Eliminations

Orange

Middle-East

Carriers

telecom

telecom

Bank

telecom

 consolidated

& Shared

activities

activities

activities /

financial

Services

and

bank

statements

unallocated

  

  

items

  

  

  

  

December 31, 2019

Equity

 

 

34,432

 

34,432

 

(16)

 

 

34,416

Non-current lease liabilities

785

227

1,490

5,196

29

5,225

Fixed assets payables

 

166

 

 

817

 

 

 

817

Non-current employee benefits

 

68

264

702

 

 

2,544

 

9

 

 

2,554

Non-current liabilities included in the calculation of net financial debt

 

 

33,562

 

33,562

 

 

 

33,562

Other

 

55

39

55

 

849

 

1,954

 

109 (1)

(27)

 

2,035

Total non-current liabilities

 

1,074

530

2,247

 

34,411

 

44,073

 

147

(27)

 

44,192

Current lease liabilities

124

97

422

1,263

4

1,267

Fixed assets payables

 

529

72

135

 

(1)

 

2,848

 

 

2,848

Trade payables

 

1,136

784

763

 

(771)

 

6,581

 

125

(24)

 

6,682

Customer contracts liabilities

123

412

126

(15)

2,094

2,093

Current employee benefits

 

71

407

411

 

 

2,254

 

6

 

2,261

Deferred income

 

36

1

7

 

0

 

51

 

 

51

Current liabilities included in the calculation of net financial debt

 

 

3,950

 

3,950

 

(3)

 

3,947

Other

 

1,211

283

846

 

341

 

3,908

 

4,638

(2)

0

 

8,545

Total current liabilities

 

3,231

2,055

2,710

 

3,503

 

22,950

 

4,773

(28)

 

27,695

Liabilities related to assets held for sale

0

Total equity and liabilities

 

4,305

2,586

4,957

 

72,346

 

101,454

 

4,904

(55)

 

106,303

December 31, 2018

 

 

 

 

 

Equity

 

 

33,151

 

33,151

 

98

 

33,249

Fixed assets payables

 

154

 

 

612

 

 

612

Non-current employee benefits

 

64

264

717

 

 

2,815

 

8

 

2,823

Non-current liabilities included in the calculation of net financial debt

 

 

27,461

 

27,461

 

 

27,461

Other

 

59

46

180

 

791

 

2,080

 

98

(1)

(27)

 

2,151

Total non-current liabilities

 

277

310

897

 

28,252

 

32,968

 

106

(27)

 

33,047

Fixed assets payables

 

528

58

138

 

(1)

 

2,835

 

 

2,835

Trade payables

 

1,081

689

917

 

(631)

 

6,635

 

135

(34)

 

6,736

Customer contracts liabilities

127

283

129

(16)

2,002

2,002

Current employee benefits

 

68

398

471

 

 

2,384

 

8

 

2,392

Deferred income

 

44

2

7

 

 

58

 

 

58

Current liabilities included in the calculation of net financial debt

 

 

7,403

 

7,403

 

 

7,403

Other

 

1,069

273

833

 

381

 

3,803

 

5,067

(2)

 

8,870

Total current liabilities

 

2,917

1,703

2,495

 

7,136

 

25,120

 

5,210

 

(34)

 

30,296

Liabilities related to assets held for sale

Total equity and liabilities

 

3,194

2,013

3,392

 

68,539

 

91,239

 

5,414

 

(61)

 

96,592

December 31, 2017

 

  

  

  

 

  

 

 

  

 

  

 

  

Equity

 

 

33,285

 

33,285

 

227

 

 

33,512

Fixed assets payables

208

610

610

Non-current employee benefits

 

77

259

693

2,668

6

2,674

Non-current liabilities included in the calculation of net financial debt

 

 

27,221

27,221

27,221

Other

 

50

31

218

 

836

2,195

107

(1)

(27)

2,275

Total non-current liabilities

 

335

290

911

 

28,057

32,694

113

(27)

32,780

Fixed assets payables

 

530

52

102

 

(1)

3,045

1

-

3,046

Trade payables

 

1,072

694

977

 

(614)

6,444

92

(9)

6,527

Customer contracts liabilities

 

130

271

120

 

(20)

2,021

2,021

Current employee benefits

 

69

348

426

 

2,441

7

2,448

Deferred income

 

87

5

 

(22)

76

76

Current liabilities included in the calculation of net financial debt

 

 

6,216

6,216

6,216

Other

 

905

252

897

 

457

3,803

5,072

(2)

(152)

8,723

Total current liabilities

 

2,793

1,617

2,527

 

6,016

24,046

5,172

(161)

29,057

Liabilities related to assets held for sale

Total equity and liabilities

 

3,128

1,907

3,438

 

67,358

90,025

5,512

(188)

95,349

1.7    Simplified statement of cash flows on telecommunication and Orange Bank activities

(in millions of euros)

2019

    

Telecom 

Orange Bank

    

Eliminations 

    

Orange 

 

activities

telecom 

consoli-

 

activities / 

dated financial 

 

Orange Bank

statement

 

Operating activities

 

  

 

  

 

  

 

  

Consolidated net income

 

3,411

 

(185)

 

 

3,226

Non-monetary items and reclassified items for presentation

 

12,087

 

91

 

1

 

12,180

Changes in working capital

 

 

 

 

Decrease (increase) in inventories, gross

 

69

69

Decrease (increase) in trade receivables, gross

 

(34)

(1)

(10)

(45)

Increase (decrease) in trade payables

 

(92)

(3)

10

(85)

Changes in other customer contract assets and liabilities

(59)

(60)

Changes in other assets and liabilities

 

(87)

(726)

(813)

Other net cash out

 

 

 

 

Operating taxes and levies paid

 

(1,939)

 

0

 

 

(1,939)

Dividends received

 

17

 

 

 

17

Interest paid and interest rates effects on derivatives, net

 

(1,310)

(1)  

0

 

(1)

 

(1,312)

Income tax paid

 

(1,079)

 

0

 

 

(1,079)

Net cash provided by operating activities (a)

 

10,983

(2)

(824)

 

 

10,159

Investing activities

 

  

 

  

 

  

 

  

Purchases (sales) of property, plant and equipment and intangible assets

 

(7,555)

(3)

(28)

 

 

(7,582)

Cash paid for investment securities, net of cash acquired

 

(559)

 

 

 

(559)

Investments in associates and joint ventures

 

(2)

 

 

 

(2)

Purchases of equity securities measured at fair value

 

(39)

 

(5)

 

 

(44)

Proceeds from sales of investment securities, net of cash transferred

 

529

 

 

 

529

Decrease (increase) in securities and other financial assets

 

(2,082)

 

368

 

3

 

(1,711)

Net cash used in investing activities (b)

 

(9,707)

 

335

 

3

 

(9,370)

Financing activities

 

  

 

  

 

  

 

  

Cash flows from financing activities

 

 

  

 

  

 

  

Medium and long-term debt issuances

 

8,351

 

 

 

8,351

Medium and long-term debt redemptions and repayments

 

(4,650)

(4)

 

 

(4,650)

Lease liabilities repayment

(1,395)

(4)

(1,398)

Increase (decrease) of bank overdrafts and short-term borrowings

 

(1,082)

140

(3)

(945)

Decrease (increase) of cash collateral deposits

 

609

(19)

590

Exchange rates effects on derivatives, net

26

 

 

 

26

Other cash flows

 

  

 

 

 

  

Issuances (purchases) of subordinated notes

(357)

 

 

 

(357)

Coupon on subordinated notes

 

500

500

Purchases of treasury shares - Orange Vision 2020 free share award plan

 

(27)

 

 

 

(27)

Capital increase (decrease) - owners of the parent company

 

 

 

 

Other proceeds (purchases) from treasury shares

(7)

(7)

Capital increase (decrease) - non-controlling interests

 

(108)

(5)  

187

(5)  

 

79

Changes in ownership interests with no gain / loss of control

 

(7)

 

 

 

(7)

Dividends paid to owners of the parent company

 

(1,857)

 

 

 

(1,857)

Dividends paid to non-controlling interests

 

(243)

 

 

 

(243)

Net cash used in financing activities (c)

 

(247)

 

305

 

(3)

 

55

Cash and cash equivalents in the opening balance

 

5,081

 

553

 

 

5,634

Cash change in cash and cash equivalents (a) + (b) + (c)

 

1,029

 

(185)

 

 

844

Effect of exchange rates changes on cash and cash equivalents and other non-monetary effects

 

3

 

 

 

3

Cash and cash equivalents in the closing balance

 

6,112

 

369

 

 

6,481

(1)Including interests paid on lease liabilities for (97) million euros.
(2)Including significant litigations paid and received for 5 million euros.
(3)Including telecommunication licenses paid for (334) million euros.
(4)Including repayments of debts relating to financed assets for (17) million euros.
(5)Including 122 million euros in Orange Bank share capital invested by Orange.

(in millions of euros)

2018

 

Telecom

Orange Bank

Eliminations

Orange

 

activities

telecom

consoli-

 

 

    

activities /

dated financial

 

    

    

Orange Bank

     

statement

 

Operating activities

Consolidated net income

 

2,326

(168)

 

 

2,158

Non-monetary items and reclassified items for presentation

 

11,457

40

 

 

11,497

Changes in working capital

 

 

 

Decrease (increase) in inventories, gross

(152)

(152)

Decrease (increase) in trade receivables, gross

(122)

25

(97)

Increase (decrease) in trade payables

158

44

(25)

177

Changes in other customer contract assets and liabilities

12

12

Changes in other assets and liabilities

(95)

(81)

(176)

Other net cash out

Operating taxes and levies paid

(1,776)

(1)

(1,777)

Dividends received

51

51

Interest paid and interest rates effects on derivatives, net

 

(1,259)

 

 

(1,259)

Income tax paid

 

(928)

 

 

(928)

Net cash provided by operating activities (a)

 

9,672

(1)

(166)

 

 

9,506

Investing activities

 

  

  

 

  

 

  

Purchases (sales) of property, plant and equipment and intangible assets

 

(7,655)

(2)

(37)

 

 

(7,692)

Cash paid for investment securities, net of cash acquired

 

(284)

 

(284)

Investments in associates and joint ventures

(6)

(6)

Others purchases of assets available for sale

Purchases of equity securities measured at fair value

(90)

(14)

(104)

Sales of investment securities, net of cash transferred

 

110

 

 

110

Decrease (increase) in securities and other financial assets

 

(501)

77

 

(152)

 

(576)

Net cash used in investing activities (b)

 

(8,426)

26

 

(152)

 

(8,552)

Financing activities

 

  

  

 

  

 

  

Cash flows from financing activities

Medium and long-term debt issuances

 

5,214

 

 

5,214

Medium and long-term debt redemptions and repayments

 

(4,095)

(3)

 

 

(4,095)

Increase (decrease) of bank overdrafts and short-term borrowings

 

(251)

56

 

152

 

(43)

Decrease (increase) of cash collateral deposits

 

203

5

 

 

208

Exchange rates effects on derivatives, net

7

7

Other cash flows

Coupon on subordinated notes

(280)

(280)

Purchases of treasury shares - Orange Vision 2020 free share award plan

(101)

(101)

Other proceeds (purchases) from treasury shares

3

3

Capital increase (decrease) - non-controlling interests

(87)

(4)

155

(4) 

68

Changes in ownership interests with no gain / loss of control

 

(6)

 

(6)

Dividends paid to owners of the parent company

 

(1,860)

 

 

(1,860)

Dividends paid to non-controlling interests

 

(246)

 

 

(246)

Net cash used in financing activities (c)

 

(1,499)

216

 

152

 

(1,131)

Cash and cash equivalents in the opening balance

 

5,333

477

 

 

5,810

Cash change in cash and cash equivalents (a) + (b) + (c)

 

(253)

76

 

 

(177)

Effect of exchange rates changes on cash and cash equivalents and other non-monetary effects

 

1

 

 

1

Cash and cash equivalents in the closing balance

 

5,081

553

 

 

5,634

(1)Including significant litigations paid and received for (174) million euros.
(2)Including telecommunication licenses paid for (422) million euros.
(3)Including finance leases liabilities repayments for (123) million euros.
(4)Including 101 million euros in Orange Bank share capital invested by Orange.

(in millions of euros)

2017

    

Telecom 

Orange 

Eliminations

    

Orange 

activities

Bank

telecom

consoli-

  activities / 

 dated

Orange

financial

 Bank

  statement

Operating activities

  

  

  

  

Consolidated net income

2,134

(94)

2,040

Non-monetary items and reclassified items for presentation

 

11,474

 

38

 

 

11,512

Changes in working capital

 

 

 

 

Decrease (increase) in inventories, gross

 

(14)

 

 

 

(14)

Decrease (increase) in trade receivables, gross

 

(271)

 

 

9

 

(262)

Increase (decrease) in trade payables

 

375

 

46

 

(9)

 

412

Changes in other customer contract assets and liabilities

 

112

 

 

 

112

Changes in other assets and liabilities

 

(120)

 

284

 

 

164

Other net cash out

 

 

 

 

Operating taxes and levies paid

 

(1,931)

 

(3)

 

 

(1,934)

Dividends received

 

55

 

 

 

55

Interest paid and interest rates effects on derivatives, net

 

(1,328)

 

 

 

(1,328)

Income tax paid

 

(584)

 

1

 

 

(583)

Net cash provided by operating activities (a)

 

9,902

(1)

272

 

 

10,174

Investing activities

 

  

 

  

 

  

 

  

Purchases (sales) of property, plant and equipment and intangible assets

 

(7,311)

(67)

 

 

(7,378)

Cash paid for investment securities, net of cash acquired

 

(34)

 

 

(34)

Others purchases of assets available for sale

 

(43)

 

 

 

(43)

Purchases of equity securities measured at fair value

 

(7)

 

 

 

(7)

Sales of investment securities, net of cash transferred

 

515

 

 

 

515

Decrease (increase) in securities and other financial assets

 

(1,082)

 

(63)

 

151

 

(994)

Net cash used in investing activities (b)

 

(7,962)

 

(130)

 

151

 

(7,941)

Financing activities

 

  

 

  

 

  

 

  

Cash flows from financing activities

 

  

 

  

 

  

 

  

Medium and long-term debt issuances

 

2,450

 

 

 

2,450

Medium and long-term debt redemptions and repayments

 

(2,728)

(3)

 

 

(2,728)

Increase (decrease) of bank overdrafts and short-term borrowings

 

964

 

136

 

(151)

 

949

Decrease (increase) of cash collateral deposits

 

(1,138)

 

11

 

 

(1,127)

Exchange rates effects on derivatives, net

 

(66)

 

 

 

(66)

Other cash flows

 

 

  

 

  

 

Coupon on subordinated notes

 

(282)

 

 

 

(282)

Other proceeds (purchases) from treasury shares

 

(4)

 

 

 

(4)

Capital increase (decrease) - non-controlling interests

 

(66)

(4)

100

(4)

 

34

Changes in ownership interests with no gain / loss of control

 

1

 

 

 

1

Dividends paid to owners of the parent company

 

(1,729)

 

 

 

(1,729)

Dividends paid to non-controlling interests

 

(236)

 

 

 

(236)

Net cash used in financing activities (c)

 

(2,834)

 

247

 

(151)

 

(2,738)

Cash and cash equivalents in the opening balance

 

6,267

 

88

 

 

6,355

Cash change in cash and cash equivalents (a) + (b) + (c)

 

(894)

 

389

 

 

(505)

Effect of exchange rates changes on cash and cash equivalents and other non-monetary effects

 

(40)

 

 

 

(40)

Cash and cash equivalents in the closing balance

 

5,333

 

477

 

 

5,810

(1)Including significant litigations paid and received for (30) million euros.
(2)Including telecommunication licenses paid for (617) million euros.
(3)Including finance leases liabilities repayments for (96) million euros.
(4)Including 65 million euros in Orange Bank share capital invested by Orange.

The table below shows the reconciliation between net cash provided by operating activities (telecom activities), as shown in the simplified statement of cash flows, and organic cash flow from telecom activities.

    

2019

    

2018

    

2017

Net cash provided by operating activities (telecom activities)

 

10,983

 

9,672

 

9,902

Purchases (sales) of property, plant and equipment and intangible assets

 

(7,555)

 

(7,655)

 

(7,311)

Lease liabilities repayments (1)

 

(1,395)

 

 

Finance lease liabilities repayments (1)

 

 

(123)

 

(96)

Debts relating to financed assets repayments

 

(17)

 

 

Elimination of telecommunication licenses paid

 

334

 

422

 

617

Elimination of significant litigation paid (and received)

 

(5)

 

174

 

30

Organic cash flow from telecom activities

 

2,345

 

2,490

 

3,142

(1)The effects of IFRS 16 application are described in Note 2.3.1.

1.8    Definition of operating segments and performance indicators

Accounting policies

Segment information

The decisions regarding the allocation of resources and the performance assessment of the component parts of Orange (hereinafter referred to as "the Group") are made by the Chairman and Chief Executive Officer (main operational decision-maker) at operating segment level, mainly consisting of the geographical establishments. The operating segments are:

–  France (Enterprise excluded);

–  Spain;

–   Poland, Belgium and Luxembourg and each Central European countries. The Europe aggregate combines the operating segments of this area;

–   Sonatel subgroup (gathering Sonatel entities in Senegal, Orange Mali, Orange Bissau, Orange in Guinea and Orange in Sierra Leone), the Côte d'Ivoire subgroup (including Orange Côte d'Ivoire entities, Orange in Burkina Faso and Orange in Liberia) and each of the other countries in Africa and Middle East. The Africa and Middle East aggregate combines the operating segments of this area;

–  Enterprise;

–  the activities of International Carriers & Shared Services (IC&SS), which contain certain resources, mainly in the areas of networks,  information systems, research and development and other shared Group activities, as well as the Orange brand;

–  Orange Bank.

The use of shared resources, mainly provided by IC&SS, is taken into account in segment results based either on the terms of contractual agreements between legal entities, external benchmarks or by allocating costs among all the segments. The supply of shared resources is included in other revenues of the service provider, and the use of the resources is included in expenses of the service user. The cost of shared resources may be affected by changes in contractual relationships or organization and may therefore impact the segment results disclosed from one year to another.

Changes in operating performance indicators used in 2019

The Group applies the new standard IFRS 16 "Leases" prospectively from January 1, 2019.

The standard evolution has led the Group to change the key operating performance indicators used in 2019. EBITDAaL (for "EBITDA after Leases") and eCapex (for "economic Capex") are the new indicators used by Group's management.

Adjusted EBITDA, reported EBITDA and CAPEX remain the performance indicators used before 2019.

The new operating performance indicators are used by the Group:

–  to manage and assess its operating and segment results; and

–   to implement its investment and resource allocation strategy.

The Group’s management believes that the presentation of these indicators is relevant as it provides readers with the same management indicators as those used internally.

EBITDAaL corresponds to operating income before depreciation and amortization of fixed assets, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets, share of profits (losses) of associates and joint ventures, and after interests on debts related to financed assets and on lease liabilities, adjusted for:

–  significant litigation;

–  specific labor expenses;

–  fixed assets, investments, and businesses portfolio review;

–  restructuring program costs;

–  acquisition and integration costs;

–  and, where appropriate, other specific elements.

The measurement indicator allows for the effects of certain specific factors to be isolated, irrespective of their recurrence and the type of income and expense, when they are linked to:

–  significant litigation:

Significant litigation expenses correspond to risk reassessments regarding various litigations.

Associated procedures are based on third-party decisions (regulatory authority, court, etc.) and occurring over a different period to the activities at the source of the litigation. By their very nature, costs are difficult to predict in terms of their source, amount and period;

–  specific labor expenses:

Regardless of the departure plans included under restructuring costs, certain changes in the working hours of employees may have a negative impact on the period during which they are agreed and implemented. This primarily relates to the change in assumptions and the aging effect for the various part-time for seniors plans (TPS) in France;

–  fixed assets, investments and businesses portfolio review:

The Group constantly reviews its fixed assets, investments and businesses portfolio: as part of this review, decisions to dispose of or to sell assets are implemented, which by their very nature have an impact on the period during which it takes place. Since January 1, 2019 the Group includes the gains and losses on disposal of fixed assets (see Note 8.1) under the “review of fixed assets, investments and businesses portfolio”;

–  restructuring programs costs:

The adjustment of Group activities in line with changes in the business environment may also incur other types of transformation costs. They include restructuring costs (see Note 5.3) and depreciation of right-of-use assets (see Note 9.2). These actions may have a negative effect on the period during which they are announced and implemented. For illustrative purposes, and not limited to, this could include some of the transformation plans approved by the internal governance bodies;

–  acquisition and integration costs:

The Group also incurs costs which are directly linked to the acquisition and integration of entities. These are primarily legal and advisory fees, registration fees and earn-outs;

–   where applicable, other specific elements that are systematically specified in relation to income and/or expenses.

EBITDAaL is not a financial aggregate as defined by IFRS and is not comparable to similarly titled indicators used by other groups. It is provided as additional information only and should not be considered as a substitute for operating income or cash flow provided by operating activities.

eCapex relate to acquisitions of property, plant and equipment and intangible assets excluding telecommunications licenses and financed assets minus the price of disposal of fixed assets. They are used internally as an indicator to allocate resources. eCapex are not a financial aggregate defined by IFRS and may not be comparable to similarly-titled indicators used by other companies.

The Group uses organic cash flow from telecom activities as an operating performance measure for telecom activities as a whole. Organic cash flow from telecom activities corresponds to net cash provided by operating activities minus (i) lease liabilities repayments and debts related to financed assets repayments, (ii) purchases and sales of property, plant and equipment and intangible assets net of the change in fixed assets payables, (iii) excluding effect of telecommunications licenses paid and excluding effect of significant litigations paid (and received). Organic cash-flow from telecom activities is not a financial aggregate defined by IFRS and may not be comparable to similarly-titled indicators used by other companies.

Operating performance indicators used in 2018

Reported EBITDA corresponds to operating income before depreciation and amortization, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets and share of profits (losses) of associates and joint ventures.

Adjusted EBITDA corresponds to reported EBITDA, adjusted for significant litigation, specific labor expenses, review of the investments and business portfolio, restructuring and integration costs and, where appropriate, other specific elements.

This measurement indicator allows for the effects of certain specific factors to be isolated from reported EBITDA, irrespective of their recurrence and the type of income or expense, when they are linked to:

–  significant litigation:

Significant litigation expenses correspond to risk reassessments regarding various litigations. Associated procedures are based on third- party decisions (regulatory authority, court, etc.) and occurring over a different period to the activities at the source of the litigation. By their very nature, costs are difficult to predict in terms of their source, amount and period;

–  specific labor expenses:

Regardless of the departure plans included under restructuring costs, certain changes in the working hours of employees may have a negative impact on the period during which they are agreed and implemented. This primarily relates to the change in assumptions and the aging effect for the various part-time for seniors plans (TPS) in France;

–  investments and businesses portfolio review:

The Group constantly reviews its investments and businesses portfolio: as part of this review, decisions to sell assets are implemented, which by their very nature have an impact on the period during which the sale takes place. The corresponding gains (losses) on disposal affect either reported EBITDA or the net income from discontinued operations;

–  restructuring and integration costs:

The adjustment of Group activities in line with changes in the business environment may also incur other types of transformation costs. These actions may have a negative effect on the period during which they are announced and implemented. For illustrative purposes, and not limited to, this could include some of the transformation plans approved by the internal governance bodies;

–  where applicable, other specific elements that are systematically specified in relation to income and/or expenses.

Adjusted EBITDA and reported EBITDA are not financial aggregates as defined by IFRS and are not comparable to similarly titled indicators used by other groups. They are provided as additional information only and should not be considered as a substitute for operating income or cash flow provided by operating activities.

CAPEX relate to the acquisition of tangible and intangible assets excluding telecommunications licenses and investments financed through finance leases and are used internally as an indicator to allocate resources. CAPEX are not a financial aggregate defined by IFRS and may not be comparable to similarly-titled indicators used by other companies.

Assets and Liabilities

Inter-segment assets and liabilities are reported in each operating segment.

Non-allocated assets and liabilities for the telecommunications business, mainly include external financial debt, external cash and cash equivalents, current and deferred tax assets and liabilities, as well as equity. Financial debt and investments between these segments are presented as non-allocated elements.

For Orange Bank, the line “Other” includes the assets and liabilities listed above, as well as the loans and receivables and debts related to the Bank’s activity.