ORANGE | CIK:0001038143 | 3

  • Filed: 4/24/2018
  • Entity registrant name: ORANGE (CIK: 0001038143)
  • Generator: Merrill
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1038143/000110465918025968/0001104659-18-025968-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1038143/000110465918025968/oran-20171231.xml
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    • ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

    NOTE 1   Segment information

    1.1 Segment revenues

     

     

     

    Europe

     

     

     

     

     

     

     

     

    (in millions of euros)

    France

    Spain 

    Poland 

    Belgium & Luxembourg 

    Central European countries 

    Eliminations Europe 

    Total

    Africa & Middle-East 

    Enterprise (2)

    International Carriers & Shared Services (3)

    Eliminations 

    Total telecom activities

    Orange Bank 

    Eliminations telecom activities / bank 

    Orange consolidated financial statements 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2017

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues (1)

    18,052 

    5,371 

    2,674 
    1,251

    1,749 

    (19) 

    11,026 

    5,030 

    7,252 

    1,651 

    (1,914) 
    41,097

    -
    (1)

    41,096 

    Mobile services 

    6,450 

    2,769 

    1,160 
    1,021

    1,376 

    (15) 

    6,311 

    4,207 

    857 

    - 

    - 

    -

    -

    -

    - 

    Mobile equipment sales 

    727 

    559 

    283 
    117

    166 

    1 

    1,126 

    79 

    151 

    - 

    - 

    -

    -

    -

    - 

    Fixed services 

    10,315 

    2,041 

    1,074 
    89

    150 

    (3) 

    3,351 

    672 

    - 

    - 

    - 

    -

    -

    -

    - 

    Other revenues 

    560 

    2 

    157 
    24

    57 

    (2) 

    238 

    72 

    - 

    - 

    - 

    -

    -

    -

    - 

    Voice services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    1,452 

    - 

    - 

    -

    -

    -

    - 

    Data services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,700 

    - 

    - 

    -

    -

    -

    - 

    IT & integration services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,092 

    - 

    - 

    -

    -

    -

    - 

    International Carriers 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    1,374 

    - 

    -

    -

    -

    -

    Shared services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    277 

    - 

    -

    -

    -

    - 

    External 

    17,470 

    5,318 

    2,638 
    1,222

    1,725 

    - 

    10,903 

    4,779 

    6,861 

    1,083 

    - 
    41,096

    -

    -

    41,096 

    Inter-operating segments 

    582 

    53 

    36 
    29

    24 

    (19) 

    123 

    251 

    391 

    568 

    (1,914) 
    1

    -
    (1)

    - 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2016 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues (1)
    17,945
    5,014
    2,644
    1,242
    1,648
    (7)
    10,541
    5,245
    7,353
    1,812
    (1,978)
    40,918

    -

    -
    40,918

    Mobile services

    6,506 

    2,630 

    1,222 
    1,021

    1,344 

    (6) 

    6,211 

    4,331 

    887 

    - 

    - 

    -

    -

    -

    - 

    Mobile equipment sales 
    684
    508
    249
    122
    122

    -
    1,001
    79
    95

    -

    -

    -

    -

    -

    - 

    Fixed services 

    10,178 

    1,872 

    1,068 
    73

    134 

    (1) 

    3,146 

    754 

    - 

    - 

    - 

    -

    -

    -

    - 

    Other revenues 

    577 

    4 

    105 
    26

    48 

    - 

    183 

    81 

    - 

    - 

    - 

    -

    -

    -

    - 

    Voice services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    1,515 

    - 

    - 

    -

    -

    -

    - 

    Data services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,789 

    - 

    - 

    -

    -

    -

    - 

    IT & integration services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,067 

    - 

    - 

    -

    -

    -

    - 

    International Carriers 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    1,527 

    - 

    -

    -

    -

    - 

    Shared services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    285 

    - 

    -

    -

    -

    - 

    External 

    17,371 

    4,978 

    2,611 
    1,225

    1,629 

    - 

    10,443 

    4,971 

    6,933 

    1,200 

    - 
    40,918

    -

    -
    40,918

    Inter-operating segments 

    574 

    36 

    33 
    17

    19 

    (7) 

    98 

    274 

    420 

    612 

    (1,978) 

    -

    -

    -

    - 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2015

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues (1)
    18,104
    4,253
    2,831
    1,235
    1,648
    (4)
    9,963
    4,899
    7,379
    1,915
    (2,024)
    40,236

     

     

    40,236 

    Mobile services 
    6,792
    2,403
    1,314
    1,006
    1,358
    (3)
    6,078
    3,953
    908

    -

    -

    -

     

     

    -

    Mobile equipment sales

    641 

    470 

    154 
    128

    115 

    - 

    867 

    78 

    92 

    - 

    - 

    -

     

     

    - 

    Fixed services 

    10,102 

    1,375 

    1,215 
    80

    130 

    (1) 

    2,799 

    770 

    - 

    - 

    - 

    -

     

     

    - 

    Other revenues 

    569 

    5 

    148 
    21

    45 

    - 

    219 

    98 

    - 

    - 

    - 

    -

     

     

    - 

    Voice services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    1,547 

    - 

    - 

    -

     

     

    - 

    Data services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,817 

    - 

    - 

    -

     

     

    - 

    IT & integration services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    2,015 

    - 

    - 

    -

     

     

    - 

    International Carriers 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    1,555 

    - 

    -

     

     

    - 

    Shared services 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    360 

    - 

    -

     

     

    - 

    External 

    17,501 

    4,215 

    2,800 
    1,220

    1,626 

    - 

    9,861 

    4,601 

    6,956 

    1,317 

    - 
    40,236

     

     

    40,236 

    Inter-operating segments 

    603 

    38 

    31 
    15

    22 

    (4) 

    102 

    298 

    423 

    598 

    (2,024) 

    -

     

     

    - 

     

    (1)

    Description of product lines presented in Note 4.1.

    (2)

    Including, in 2017, revenues of 5,235 million euros in France, 34 million euros in Spain, 21 million euros in Poland, 634 million euros in other European countries and 1,328 million euros in other countries.

    Including, in 2016, revenues of 5,203 million euros in France, 27 million euros in Spain, 17 million euros in Poland, 596 million euros in other European countries and 1,510 million euros in other countries.

    Including, in 2015, revenues of 5,206 million euros in France, 26 million euros in Spain, 16 million euros in Poland, 592 million euros in other European countries and 1,539 million euros in other countries.

    (3)

    Including revenues of 1,530 million euros in France in 2017.

    Including revenues of 1,711 million euros in France in 2016.

    Including revenues of 1,812 million euros in France in 2016.

    1.2 Segment revenues to segment reported EBITDA

     

     

     

    Europe

     

     

     

     

     

     

     

     

     

     

    (in millions of euros)

    France

    Spain 

    Poland 

    Belgium
    & Luxembourg     

    Central
    European
    countries     

    Eliminations
    Europe     

    Total

    Africa &
    Middle-East     

    Enterprise 

    International
    Carrier
    & Shared
    Services     

    Elimination
    telecom
    activities     

    Total
    telecom
    activities     

    Orange
    Bank     (2)

    Eliminations
    telecom
    activities
    / bank     

    Total 

    Presentation
    adjustments     (3)

    Orange
    consolidated
    financial
    statements

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2017 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues 

    18,052 

    5,371 

    2,674 

    1,251 

    1,749 

    (19) 

    11,026 

    5,030 

    7,252 

    1,651 

    (1,914) 

    41,097 

    - 

    (1) 

    41,096 

    -
    41,096

    External purchases 

    (7,110) 

    (3,282) 

    (1,509) 

    (820) 

    (1,034) 

    25 

    (6,620) 

    (2,444) 

    (3,735) 

    (2,771) 

    4,266 

    (18,414) 

    (63) 

    2 

    (18,475) 

    -
    (18,475)

    Other operating income 

    1,460 

    110 

    71 

    26 

    80 

    (6) 

    281 

    79 

    169 

    2,366 

    (3,739) 

    616 

    78 

    (7) 

    687 
    14
    701

    Other operating expenses 

    (548) 

    (202) 

    (59) 

    (16) 

    (81) 

    - 

    (358) 

    (209) 

    (652) 

    (53) 

    1,387 

    (433) 

    (14) 

    7 

    (440) 
    (290)
    (730)

    Labor expenses 

    (3,988) 

    (255) 

    (398) 

    (131) 

    (159) 

    - 

    (943) 

    (426) 

    (1,588) 

    (1,191) 

    - 

    (8,136) 

    (62) 

    - 

    (8,198) 
    (374)
    (8,572)

    Operating taxes and levies 

    (965) 

    (160) 

    (72) 

    (8) 

    (8) 

    - 

    (248) 

    (418) 

    (139) 

    (80) 

    - 

    (1,850) 

    (1) 

    - 

    (1,851) 
    5
    (1,846)

    Gains (losses) on disposal 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 
    (5)
    (5)

    Restructuring and integration costs 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 
    (167)
    (167)

    Adjusted EBITDA (1)

    6,901 

    1,582 

    707 

    302 

    547 

    - 

    3,138 

    1,612 

    1,307 

    (78) 

    - 

    12,880 

    (62) 

    1 

    12,819 
    (817)

     

    Significant litigations 

    (115) 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    (156) 

    - 

    (271) 

    - 

    - 

    (271) 
    271

    -

    Specific labour expenses

    (307) 

    - 

    1 

    - 

    - 

    - 

    1 

    - 

    (15) 

    (53) 

    - 

    (374) 

    - 

    - 

    (374) 
    374

    -

    Investments and businesses portfolio review

    - 

    - 

    - 

    (1) 

    - 

    - 

    (1) 

    - 

    - 

    (4) 

    - 

    (5) 

    - 

    - 

    (5) 
    5

    -

    Restructuring and integration costs

    (11) 

    (4) 

    (49) 

    10 

    - 

    - 

    (43) 

    (21) 

    (33) 

    (59) 

    - 

    (167) 

    - 

    - 

    (167) 
    167

    -

    Reported EBITDA (1)

    6,468 

    1,578 

    659 

    311 

    547 

    - 

    3,095 

    1,591 

    1,259 

    (350) 

    - 

    12,063 

    (62) 

    1 

    12,002 

    -
    12,002

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2016 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues 

    17,945 

    5,014 

    2,644 

    1,242 

    1,648 

    (7) 

    10,541 

    5,245 

    7,353 

    1,812 

    (1,978) 

    40,918 

    - 

    - 

    40,918 

    -
    40,918

    External purchases 

    (7,003) 

    (3,156) 

    (1,475) 

    (805) 

    (937) 

    15 

    (6,358) 

    (2,575) 

    (3,748) 

    (2,943) 

    4,362 

    (18,265) 

    (16) 

    - 

    (18,281) 

    -
    (18,281)

    Other operating income 

    1,501 

    127 

    61 

    33 

    58 

    (8) 

    271 

    124 

    173 

    2,445 

    (3,802) 

    712 

    20 

    - 

    732 
    7
    739

    Other operating expenses 

    (517) 

    (203) 

    (60) 

    (6) 

    (58) 

    - 

    (327) 

    (270) 

    (688) 

    (68) 

    1,418 

    (452) 

    (2) 

    - 

    (454) 
    (89)
    (543)

    Labor expenses 

    (4,149) 

    (249) 

    (375) 

    (130) 

    (148) 

    - 

    (902) 

    (460) 

    (1,608) 

    (1,207) 

    - 

    (8,326) 

    (14) 

    - 

    (8,340) 
    (526)
    (8,866)

    Operating taxes and levies 

    (971) 

    (184) 

    (70) 

    (18) 

    (9) 

    - 

    (281) 

    (406) 

    (140) 

    (95) 

    - 

    (1,893) 

    - 

    - 

    (1,893) 
    85
    (1,808)

    Gains (losses) on disposal 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 
    59
    59

    Restructuring and integration costs 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 
    (499)
    (499)

    Adjusted EBITDA (1)

    6,806 

    1,349 

    725 

    316 

    554 

    - 

    2,944 

    1,658 

    1,342 

    (56) 

    - 

    12,694 

    (12) 

    - 

    12,682 
    (963)

     

    Significant litigations 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    10 

    - 

    10 

    - 

    - 

    10 
    (10)

    -

    Specific labour expenses

    (435) 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    (17) 

    (73) 

    - 

    (525) 

    - 

    - 

    (525) 
    525

    -

    Investments and businesses portfolio review

    - 

    - 

    - 

    17 

    (17) 

    - 

    - 

    16 

    47 

    (4) 

    - 

    59 

    - 

    - 

    59 
    (59)

    -

    Restructuring and integration costs

    (166) 

    (127) 

    - 

    (16) 

    - 

    - 

    (143) 

    (36) 

    (74) 

    (80) 

    - 

    (499) 

    - 

    - 

    (499) 
    499

    -

    Other special items 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    (8) 

    - 

    (8) 

    - 

    - 

    (8) 
    8

    -

    Reported EBITDA (1)

    6,205 

    1,222 

    725 

    317 

    537 

    - 

    2,801 

    1,638 

    1,298 

    (211) 

    - 

    11,731 

    (12) 

    - 

    11,719 

    -
    11,719

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2015 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues 

    18,104 

    4,253 

    2,831 

    1,235 

    1,648 

    (4) 

    9,963 

    4,899 

    7,379 

    1,915 

    (2,024) 

    40,236 

     

     

    40,236 

    -
    40,236

    External purchases 

    (7,063) 

    (2,736) 

    (1,501) 

    (793) 

    (925) 

    12 

    (5,943) 

    (2,335) 

    (4,089) 

    (3,022) 

    4,755 

    (17,697) 

     

     

    (17,697) 

    -
    (17,697)

    Other operating income 

    1,491 

    107 

    75 

    7 

    44 

    (8) 

    225 

    58 

    164 

    2,466 

    (3,816) 

    588 

     

     

    588 
    54
    642

    Other operating expenses 

    (591) 

    (163) 

    (72) 

    - 

    (60) 

    - 

    (295) 

    (179) 

    (424) 

    (36) 

    1,085 

    (440) 

     

     

    (440) 
    (629)
    (1,069)

    Labor expenses 

    (4,274) 

    (235) 

    (419) 

    (134) 

    (139) 

    - 

    (927) 

    (418) 

    (1,614) 

    (1,253) 

    - 

    (8,486) 

     

     

    (8,486) 
    (572)
    (9,058)

    Operating taxes and levies 

    (929) 

    (158) 

    (72) 

    (39) 

    (14) 

    - 

    (283) 

    (358) 

    (147) 

    (66) 

    - 

    (1,783) 

     

     

    (1,783) 

    -
    (1,783)

    Gains (losses) on disposal 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

     

     

    - 
    178
    178

    Restructuring and integration costs 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

    - 

     

     

    - 
    (172)
    (172)

    Adjusted EBITDA (1)

    6,738 

    1,068 

    842 

    276 

    554 

    - 

    2,740 

    1,667 

    1,269 

    4 

    - 

    12,418 

     

     

    12,418 
    (1,141)

     

    Significant litigations 

    (23) 

    - 

    - 

    54 

    - 

    - 

    54 

    - 

    - 

    (481) 

    - 

    (450) 

     

     

    (450) 
    450

    -

    Specific labour expenses

    (472) 

    - 

    10 

    - 

    - 

    - 

    10 

    - 

    (29) 

    (81) 

    - 

    (572) 

     

     

    (572) 
    572

    -

    Investments and businesses portfolio review

    1 

    - 

    (1) 

    - 

    (8) 

    - 

    (9) 

    (123) 

    22 

    162 

    - 

    53 

     

     

    53 
    (53)

    -

    Restructuring and integration costs

    (99) 

    (22) 

    (31) 

    (9) 

    - 

    - 

    (62) 

    (15) 

    (27) 

    31 

    - 

    (172) 

     

     

    (172) 
    172

    -

    Reported EBITDA (1)

    6,145 

    1,046 

    820 

    321 

    546 

    - 

    2,733 

    1,529 

    1,235 

    (365) 

    - 

    11,277 

     

     

    11,277 

    -
    11,277

     

    (1)

    Report to Note 1.7 for EBITDA adjustments.

    (2)

    Orange Bank's net banking income is recognized in other operating income and amounts to 73 million euros as at December 31, 2017 (21 million euros as of December 31, 2016). The cost of risk is included in other operating expenses and amounts to (6) million euros as at December 31, 2017 ((2) million euros as of December 31, 2016).

    (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.

    1.3 Segment reported EBITDA to segment operating income and segment investments

     

     

     

    Europe

     

     

     

     

     

     

     

     

    (in millions of euros)

    France

    Spain 

    Poland 

    Belgium
    & Luxembourg     

    Central
    European
    countries

    Eliminations
    Europe     

    Total

    Africa &
    Middle-East     

    Enterprise (1)

    International
    Carriers
    & Shared
    Services     (2)

    Elimination
    telecom
    activities

    Total
    telecom
    activities     

    Orange
    Bank

    Eliminations
    telecom
    activities /
    bank     

    Orange
    consolidated
    financial
    statements

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2017 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Reported EBITDA 

    6,468 

    1,578 

    659 

    311 
    547

    - 

    3,095 

    1,591 

    1,259 

    (350) 

    -

    12,063 
    (62)

    1 
    12,002

    Depreciation and amortization 

    (3,073) 

    (1,009) 

    (606) 

    (230) 
    (321)

    - 

    (2,166) 

    (902) 

    (370) 

    (331) 

    -

    (6,842) 
    (4)

    - 
    (6,846)

    Effects resulting from business combinations 

    - 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    -

    - 
    (27)

    - 
    (27)

    Reclassification of cumulative translation

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    adjustment from liquidated entities

    - 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    (8) 

    -

    (8) 

    -

    - 
    (8)

    Impairment of goodwill 

    - 

    - 

    - 

    (19) 

    -

    - 

    (19) 

    (1) 

    - 

    - 

    -

    (20) 

    -

    - 
    (20)

    Impairment of fixed assets 

    (3) 

    - 

    (1) 

    - 

    -

    - 

    (1) 

    (180) 

    1 

    (7) 

    -

    (190) 

    -

    - 
    (190)

    Share of profits (losses) of associates and joint ventures 

    - 

    - 

    - 

    - 

    -

    - 

    - 

    14 

    - 

    (8) 

    -

    6 

    -

    - 
    6

    Operating income 

    3,392 

    569 

    52 

    62 
    226

    - 

    909 

    522 

    890 

    (704) 

    -

    5,009 
    (93)

    1 
    4,917

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2016 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Reported EBITDA 

    6,205 

    1,222 

    725 

    317 
    537

    - 
    2,801

    1,638 

    1,298 

    (211) 

    -

    11,731 
    (12)

    - 
    11,719

    Depreciation and amortization 

    (2,823) 

    (946) 

    (623) 

    (210) 
    (335)

    - 
    (2,114)

    (1,056) 

    (376) 

    (359) 

    -

    (6,728) 

    -

    - 
    (6,728)

    Effects resulting from business combinations 

    - 

    - 

    - 

    - 

    -

    - 

    -

    - 

    - 

    - 

    -

    - 
    97

    - 
    97

    Reclassification of cumulative translation

     

     

     

     

     

     

     

     

     

     

     

     

     

    -

     

    adjustment from liquidated entities

    - 

    - 

    - 

    - 

    -

    - 

    -

    - 

    1 

    13 

    -

    14 

    -

    - 
    14

    Impairment of goodwill 

    - 

    - 

    (507) 

    - 

    -

    - 
    (507)

    (265) 

    - 

    - 

    -

    (772) 

    -

    - 
    (772)

    Impairment of fixed assets 

    (1) 

    - 

    - 

    - 

    -

    - 

    -

    (204) 

    (1) 

    (1) 

    -

    (207) 

    -

    - 
    (207)

    Share of profits (losses) of associates and joint ventures 

    - 

    - 

    - 

    6 

    -

    - 
    6

    (45) 

    - 

    (7) 

    -

    (46) 

    -

    - 
    (46)

    Operating income 

    3,381 

    276 

    (405) 

    113 
    202

    - 

    186 

    68 

    922 

    (565) 

    -

    3,992 
    85

    - 
    4,077

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2015 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Reported EBITDA 

    6,145 

    1,046 

    820 

    321 
    546

    - 

    2,733 

    1,529 

    1,235 

    (365) 

    -

    11,277 

     

     
    11,277

    Depreciation and amortization 

    (2,705) 

    (771) 

    (687) 

    (201) 
    (331)

    - 

    (1,990) 

    (1,034) 

    (367) 

    (369) 

    -

    (6,465) 

     

     
    (6,465)

    Effects resulting from business combinations 

    - 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    6 

    - 

    -

    6 

     

     
    6

    Impairment of goodwill 

    - 

    - 

    - 

    - 

    -

    - 

    - 

    - 

    - 

    - 

    -

    - 

     

     

    -

    Impairment of fixed assets 

    (12) 

    - 

    3 

    - 
    (27)

    - 

    (24) 

    - 

    - 

    (2) 

    -

    (38) 

     

     
    (38)

    Share of profits (losses) of associates and joint ventures 

    - 

    - 

    - 

    (1) 

    -

    - 

    (1) 

    (32) 

    (3) 

    (2) 

    -

    (38) 

     

     
    (38)

    Operating income 

    3,428 

    275 

    136 

    119 
    188

    - 

    718 

    463 

    871 

    (738) 

    -

    4,742 

     

     
    4,742

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2017 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Investments in property, plant and equipment and intangible assets 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Capex (3)

    3,451 
    1,115
    443

    188 
    266

    -
    2,012
    1,021
    382

    282 

    -

    7,148 
    61

    -
    7,209

    Telecommunications licenses 

    11 
    10

    -

    - 

    -

    -
    10
    297

    -

    - 

    -

    318 

    -

    -
    318

    Finance leases 

    1 
    4
    11

    - 

    -

    -
    15
    1
    24

    2 

    -

    43 

    -

    -
    43

    Total investments (4)

    3,463 

    1,129 

    454 

    188 
    266

    - 

    2,037 

    1,319 

    406 

    284 

    -

    7,509 
    61

    - 
    7,570

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2016 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Investments in property, plant and equipment and intangible assets 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Capex (3)

    3,421 

    1,086 

    455 

    168 
    251

    - 

    1,960 

    962 

    336 

    277 

    -

    6,956 
    15

    - 
    6,971

    Telecommunications licenses 

    - 
    51
    719

    - 
    9

    -
    779
    742

    -

    - 

    -

    1,521 

    -

    -
    1,521

    Finance leases 

    - 
    4
    4

    - 

    -

    -
    8
    4
    24

    55 

    -

    91 

    -

    -
    91

    Total investments (5)

    3,421 

    1,141 

    1,178 

    168 
    260

    - 

    2,747 

    1,708 

    360 

    332 

    -
    8,568
    15

    -
    8,583

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2015 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Investments in property, plant and equipment and intangible assets 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Capex (3)

    3,097 

    864 

    463 

    193 
    263

    - 

    1,783 

    922 

    325 

    359 

    -
    6,486

     

     
    6,486

    Telecommunications licenses

    954 

    25 

    - 

    76 
    13

    - 

    114 

    217 

    - 

    - 

    -
    1,285

     

     
    1,285

    Finance leases

    - 

    5 

    13 

    - 

    -

    - 

    18 

    - 

    23 

    2 

    -
    43

     

     
    43

    Total investments (6)

    4,051 

    894 

    476 

    269 
    276

    - 

    1,915 

    1,139 

    348 

    361 

    -
    7,814

     

     
    7,814

     

    (1)

    Including investments in tangible and intangible assets of 285 million euros in France in 2017.

    Including investments in tangible and intangible assets of  248 million euros in France in 2016.

    Including investments in tangible and intangible assets of 236 million euros in France in 2015.

    (2)

    Including investments in tangible and intangible assets of 280 million euros in France in 2017.

    Including investments in tangible and intangible assets of 329 million euros in France in 2016.

    Including investments in tangible and intangible assets of 353 million euros in France in 2015.

    (3)

    Capex relate to tangible and intangible investments except telecommunication licenses and financial leases and they are used internally 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.

    (4)

    Including 1,893 million euros for other intangible assets and 5,677 million euros for tangible assets.

    (5)

    Including 3,007 million euros for other intangible assets and 5,576 million euros for tangible assets.

    (6)Including 2,771 million euros for other intangible assets and 5,043 million euros for tangible assets.

    1.4 Segment assets

     

     

     

    Europe

     

     

     

     

     

     

     

     

    (in millions of euros)

    France

    Spain

    Poland

    Belgium &
    Luxem- bourg

    Central
    European
    countries

    Eliminations
    Europe

    Total

    Africa &
    Middle-East

    Enterprise (1)

    International
    Carriers & Shared
    Services     (2)

    Eliminations
    telecom
    activities
    and
    unallocated
    items

    Total
    Telcom
    activities

    Orange
    Bank

    Eliminations
    telecom
    activitie
    / bank

    Orange
    consolidated
    financial
    statements

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2017

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Goodwill
    14,364
    6,818
    245
    348
    2,180

    -
    9,591
    1,629
    1,493
    18

    -
    27,095

    -

    -
    27,095

    Other intangible assets
    4,099
    1,742
    1,260
    304
    640

    -
    3,946
    2,160
    342
    3,720
    1
    14,268
    71

    -
    14,339

    Property, plant and equipment
    13,637
    3,542
    2,551
    810
    875

    -
    7,778
    3,193
    479
    1,575

    -
    26,662
    3

    -
    26,665

    Interests in associates and joint ventures

    -
    1

    -
    4

    -

    -
    5
    70
    1
    1

    -
    77

    -

    -
    77

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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    888
    888

    -

    -
    888

    Other 

    4
    17
    13

    -
    3

    -
    33
    13
    22
    18

    3,412 (3)
    3,502

    1,496 (4)
    (27)
    4,971

    Total non-current assets
    32,104
    12,120
    4,069
    1,466
    3,698

    -
    21,353
    7,065
    2,337
    5,332
    4,301
    72,492
    1,570
    (27)
    74,035

    Inventories
    402
    79
    52
    25
    72

    -
    228
    78
    45
    74

    -
    827

    -

    -
    827

    Trade receivables
    1,590
    686
    670
    185
    289
    4
    1,834
    690
    807
    881
    (618)
    5,184

    -
    (9)
    5,175

    Prepaid expenses
    76
    152
    16
    11
    10

    -
    189
    67
    187
    93
    (19)
    593
    1

    -
    594

    Current assets included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    8,014
    8,014

    -

    -
    8,014

    Other
    828
    64
    21
    4
    27
    (1)
    115
    757
    165
    268
    147
    2,280

    3,941 (5)
    (152)
    6,069

    Total current assets
    2,896
    981
    759
    225
    398
    3
    2,366
    1,592
    1,204
    1,316
    7,524
    16,898
    3,942
    (161)
    20,679

    Total assets
    35,000
    13,101
    4,828
    1,691
    4,096
    3
    23,719
    8,657
    3,541
    6,648
    11,825
    89,390
    5,512
    (188)
    94,714

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2016

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Goodwill
    14,364
    6,818
    232
    362
    2,160

    -
    9,572
    1,709
    1,496
    15

    -
    27,156

    -

    -
    27,156

    Other intangible assets
    4,269
    1,861
    1,299
    320
    713

    -
    4,193
    2,103
    327
    3,694

    -
    14,586
    16

    -
    14,602

    Property, plant and equipment
    13,054
    3,313
    2,420
    830
    874

    -
    7,437
    3,270
    487
    1,662

    -
    25,910
    2

    -
    25,912

    Interests in associates and joint ventures

    -
    1

    -
    6

    -

    -
    7
    111
    1
    11

    -
    130

    -

    -
    130

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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    980
    980

    -

    -
    980

    Other 

    4
    16
    13
    1
    1

    -
    31
    13
    21
    18

    4,427 (3)
    4,514

    1,552 (4)
    (27)
    6,039

    Total non-current assets
    31,691
    12,009
    3,964
    1,519
    3,748

    -
    21,240
    7,206
    2,332
    5,400
    5,407
    73,276
    1,570
    (27)
    74,819

    Inventories
    433
    73
    37
    31
    64

    -
    205
    84
    50
    49
    (2)
    819

    -

    -
    819

    Trade receivables
    1,515
    729
    512
    176
    223
    9
    1,649
    701
    784
    864
    (549)
    4,964

    -

    -
    4,964

    Prepaid expenses
    70
    92
    18
    12
    11

    -
    133
    66
    189
    95
    (14)
    539
    1

    -
    540

    Current assets included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    7,899
    7,899

    -

    -
    7,899

    Other
    766
    12
    9
    1
    11
    (1)
    32
    638
    150
    385
    204
    2,175

    3,452 (5)

    -
    5,627

    Total current assets
    2,784
    906
    576
    220
    309
    8
    2,019
    1,489
    1,173
    1,393
    7,538
    16,396
    3,453

    -
    19,849

    Total assets
    34,475
    12,915
    4,540
    1,739
    4,057
    8
    23,259
    8,695
    3,505
    6,793
    12,945
    89,672
    5,023
    (27)
    94,668

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2015

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Goodwill
    14,364
    6,818
    769
    362
    2,159

    -
    10,108
    1,117
    1,467
    15

    -
    27,071

     

     
    27,071

    Other intangible assets
    4,378
    2,222
    707
    347
    743

    -
    4,019
    1,936
    322
    3,672

    -
    14,327

     

     
    14,327

    Property, plant and equipment
    12,294
    2,768
    2,583
    840
    897

    -
    7,088
    3,504
    505
    1,732

    -
    25,123

     

     
    25,123

    Interests in associates and joint ventures
    1
    1

    -

    -

    -

    -
    1
    155
    1
    4

    -
    162

     

     
    162

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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    1,392
    1,392

     

     
    1,392

    Other 

    5
    15
    12
    1
    2

    -
    30
    13
    22
    18
    3,167
    3,255

     

     
    3,255

    Total non-current assets
    31,042
    11,824
    4,071
    1,550
    3,801

    -
    21,246
    6,725
    2,317
    5,441
    4,559
    71,330

     

     
    71,330

    Inventories
    370
    67
    57
    21
    63

    -
    208
    71
    59
    55

    -
    763

     

     
    763

    Trade receivables
    1,614
    903
    422
    194
    177
    4
    1,700
    728
    703
    759
    (628)
    4,876

     

     
    4,876

    Prepaid expenses
    67
    43
    20
    17
    12

    -
    92
    71
    179
    94
    (8)
    495

     

     
    495

    Current assets included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    6,086
    6,086

     

     
    6,086

    Other
    824
    30
    27
    2
    13

    -
    72
    360
    140
    504
    192
    2,092

     

     
    2,092

    Total current assets
    2,875
    1,043
    526
    234
    265
    4
    2,072
    1,230
    1,081
    1,412
    5,642
    14,312

     

     
    14,312

    Assets held for sale

    -

    -

    -

    -

    -

    -

    -

    -

    -
    5,788

    -
    5,788

     

     
    5,788

    Total assets
    33,917
    12,867
    4,597
    1,784
    4,066
    4
    23,318
    7,955
    3,398
    12,641
    10,201
    91,430

     

     
    91,430

     

    (1)

    Including in 2017 tangible and intangible assets of 565 million euros in France, 541 million euros in 2016, and 577 million euros in 2015.

    (2)

    Including in 2017 tangible and intangible assets of 2,144 million euros in France, 2,203 million euros in 2016, and 2,251 million euros in 2015. Intangible assets also include the Orange brand for 3,133 million euros.

    (3)

    Including in 2017, 814 million euros of BT shares, and 1,709 million euros in 2016. (See Note 11.7)

    (4)

    Including in 2017, 1,464 million euros of non-current financial asset, and 1,523 million euros in 2016. (See Note 15.1.2)

    (5)

    Including in 2017, 3,096 million euros of loans and receivables of Orange Bank, and 3,091 million euros in 2016. (See Note 15.1.1)

    1.5 Segment equity and liabilities

     

     

     

    Europe

     

     

     

     

     

     

     

     

    (in millions of euros)

    France

    Spain

    Poland

    Belgium
    & Luxembourg

    Central
    European
    countries

    Eliminations
    Europe

    Total

    Africa &
    Middle-East

    Enterprise

    International
    Carriers & Shared
    Services

    Eliminations
    telecom
    activities
    and
    unallocated
    items

    Total
    Telcom
    activities

    Orange
    Bank

    Eliminations
    telecom
    activities /
    bank

    Orange
    consolidated
    financial
    statements

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2017

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Equity

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    32,715
    32,715
    227

    -
    32,942

    Non-current fixed assets payables
    75

    -
    132

    -
    195

    -
    327
    208

    -

    -

    -
    610

    -

    -
    610

    Non-current employee benefits
    1,601
    5
    30

    -
    3

    -
    38
    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
    663
    134
    135
    69
    59

    -
    397
    50
    31
    218
    792
    2,151

    107 (1)
    (27)
    2,231

    Total non-current liabilities
    2,339
    139
    297
    69
    257

    -
    762
    335
    290
    911
    28,013
    32,650
    113
    (27)
    32,736

    Current fixed assets payables
    1,438
    532
    209
    56
    127

    -
    924
    530
    52
    102
    (1)
    3,045
    1

    -
    3,046

    Trade payables
    2,487
    985
    371
    213
    254
    4
    1,827
    1,072
    694
    977
    (618)
    6,439
    92
    (9)
    6,522

    Current employee benefits
    1,451
    38
    57
    30
    22

    -
    147
    69
    348
    426

    -
    2,441
    7

    -
    2,448

    Deferred income
    1,142
    78
    134
    62
    71

    -
    345
    217
    271
    125
    (19)
    2,081

    -

    -
    2,081

    Current liabilities included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    6,216
    6,216

    -

    -
    6,216

    Other
    681
    126
    319
    109
    39
    (1)
    592
    905
    252
    938
    435
    3,803

    5,072 (2)
    (152)
    8,723

    Total current liabilities
    7,199
    1,759
    1,090
    470
    513
    3
    3,835
    2,793
    1,617
    2,568
    6,013
    24,025
    5,172
    (161)
    29,036

    Total equity and liabilities
    9,538
    1,898
    1,387
    539
    770
    3
    4,597
    3,128
    1,907
    3,479
    66,741
    89,390
    5,512
    (188)
    94,714

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2016

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Equity

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    32,889
    32,889
    285

    -
    33,174

    Non-current fixed assets payables
    322

    -
    155

    -
    208

    -
    363
    221

    -

    -
    1
    907

    -

    -
    907

    Non-current employee benefits
    1,895

    -
    31
    1
    2

    -
    34
    70
    312
    713
    (1)
    3,023
    6

    -
    3,029

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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    29,420
    29,420

    -

    -
    29,420

    Other
    695
    151
    66
    69
    59

    -
    345
    56
    33
    177
    853
    2,159

    102 (1)
    (27)
    2,234

    Total non-current liabilities
    2,912
    151
    252
    70
    269

    -
    742
    347
    345
    890
    30,273
    35,509
    108
    (27)
    35,590

    Current fixed assets payables
    1,293
    539
    226
    69
    98

    -
    932
    418
    46
    104
    1
    2,794
    6

    -
    2,800

    Trade payables
    2,355
    886
    327
    168
    223
    9
    1,613
    1,073
    665
    1,008
    (549)
    6,165
    46

    -
    6,211

    Current employee benefits
    1,369
    36
    44
    32
    22

    -
    134
    68
    348
    342

    -
    2,261
    5

    -
    2,266

    Deferred income
    1,171
    76
    127
    59
    71

    -
    333
    235
    293
    116
    (14)
    2,134

    -

    -
    2,134

    Current liabilities included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    4,666
    4,666

    -

    -
    4,666

    Other
    663
    103
    221
    138
    23
    (1)
    484
    828
    234
    792
    253
    3,254

    4,573 (2)

    -
    7,827

    Total current liabilities
    6,851
    1,640
    945
    466
    437
    8
    3,496
    2,622
    1,586
    2,362
    4,357
    21,274
    4,630

    -
    25,904

    Total equity and liabilities
    9,763
    1,791
    1,197
    536
    706
    8
    4,238
    2,969
    1,931
    3,252
    67,519
    89,672
    5,023
    (27)
    94,668

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2015

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Equity

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    33,267
    33,267

     

     
    33,267

    Non-current fixed assets payables
    584

    -
    180

    -
    205

    -
    385
    35

    -

    -

    -
    1,004

     

     
    1,004

    Non-current employee benefits
    2,017

    -
    55

    -
    3

    -
    58
    60
    290
    717

    -
    3,142

     

     
    3,142

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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    29,780
    29,780

     

     
    29,780

    Other
    750
    168
    84
    73
    60

    -
    385
    148
    34
    183
    1,111
    2,611

     

     
    2,611

    Total non-current liabilities
    3,351
    168
    319
    73
    268

    -
    828
    243
    324
    900
    30,891
    36,537

     

     
    36,537

    Current fixed assets payables
    1,252
    470
    233
    129
    111

    -
    943
    399
    40
    95
    (1)
    2,728

     

     
    2,728

    Trade payables
    2,491
    847
    271
    170
    215
    4
    1,507
    1,086
    638
    1,133
    (628)
    6,227

     

     
    6,227

    Current employee benefits
    1,292
    47
    48
    36
    21

    -
    152
    69
    347
    354

    -
    2,214

     

     
    2,214

    Deferred income
    1,220
    89
    127
    70
    67

    -
    353
    208
    270
    94
    (9)
    2,136

     

     
    2,136

    Current liabilities included in the calculation of net financial debt

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -
    4,667
    4,667

     

     
    4,667

    Other
    748
    65
    232
    126
    16

    -
    439
    515
    201
    1,350
    401
    3,654

     

     
    3,654

    Total current liabilities
    7,003
    1,518
    911
    531
    430
    4
    3,394
    2,277
    1,496
    3,026
    4,430
    21,626

     

     
    21,626

    Total equity and liabilities
    10,354
    1,686
    1,230
    604
    698
    4
    4,222
    2,520
    1,820
    3,926
    68,588
    91,430

     

     
    91,430

     

    (1)

    Including in 2017, 100 million euros of non-current financials liabilities, and 95 million euros in 2016.

    (2)

    Including in 2017, 4,660 million euros of liabilities related to operations of Orange Bank, and 281 million euros of current financial liabilities. (See Note 15.1)

    Including in 2016, 4,364 million euros of liabilities related to operations of Orange Bank, and 143 million euros of current financial liabilities.

     

     

     

    1.6

    Simplified statement of cash flows on telecommunication and Orange Bank activities

     

     

     

     

     

     

     

     

     

     

     

     

     

    2017

     

        

     

     

        

     

        

    Eliminations 

        

    Orange 

     

     

     

     

     

     

     

    telecom 

     

    consoli- 

     

     

    Telecom 

     

     

     

     

    activities / 

     

    dated financial 

    (in millions of euros)

     

    activities

     

     

    Orange Bank

     

    Orange Bank

     

    statement

    Operating activities

     

      

     

     

      

     

      

     

      

    Consolidated net income

     

    2,237

     

     

    (94)

     

     —

     

    2,143

    Non-monetary items and reclassified items for presentation

     

    11,517

     

     

    25

     

     —

     

    11,542

    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

     

    372

     

     

    46

     

    (9)

     

    409

    Changes in other assets and liabilities

     

    (151)

     

     

    283

     

     —

     

    132

    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)

     

     

    14

     

     —

     

    (1,314)

    Income tax paid

     

    (584)

     

     

     1

     

     —

     

    (583)

    Net cash provided by operating activities (a)

     

    9,902

     

     

    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)

    Investments in associates and joint ventures

     

     —

     

     

     —

     

     —

     

     —

    Others purchases of assets available for sale

     

    (43)

     

     

     —

     

     —

     

    (43)

    Purchases of equity securities measured at fair value

     

    (7)

     

     

     —

     

     —

     

    (7)

    Proceeds from 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)

     

     

     —

     

     —

     

    (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)

    Proceeds (purchases) from treasury shares

     

    (4)

     

     

     —

     

     —

     

    (4)

    Capital increase (decrease) - owners of the parent company

     

     —

     

     

     —

     

     —

     

     —

    Capital increase (decrease) - non-controlling interests

     

    (66)

     

     

    100

    (1)  

     —

     

    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)

    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) Of which 65 million euros invested by Orange.

     

      

     

     

      

     

      

     

      

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2016

     

     

     

     

     

     

     

    Eliminations

     

    Orange

     

     

     

     

     

     

     

    telecom

     

    consolidated

     

     

     

    Telecom

     

     

        

    activities/

     

    financial

     

    (in millions of euros)

        

    activities 

    Orange Bank

        

    Orange Bank 

    statements 

    Operating activities

     

     

     

     

     

     

     

     

     

    Consolidated net income

     

    3,177

     

    86

     

     —

     

    3,263

     

    Non-monetary items and reclassified items for presentation

     

    10,123

     

    (104)

     

     —

     

    10,019

     

    Changes in working capital

     

     

     

     

     

     

     

     

     

    Decrease (increase) in inventories, gross

     

    (62)

     

     —

     

     —

     

    (62)

     

    Decrease (increase) in trade receivables, gross

     

    113

     

     —

     

     —

     

    113

     

    Increase (decrease) in trade payables

     

    83

     

     2

     

     —

     

    85

     

    Changes in other assets and liabilities

     

    (562)

     

    (205)

     

     —

     

    (767)

     

    Other net cash out

     

     

     

     

     

     

     

     

     

    Operating taxes and levies paid

     

    (1,896)

     

    (1)

     

     —

     

    (1,897)

     

    Dividends received

     

    236

     

     —

     

     —

     

    236

     

    Interest paid and interest rates effects on derivatives, net

     

    (1,345)

     

    11

     

     —

     

    (1,334)

     

    Income tax paid

     

    (906)

     

     —

     

     —

     

    (906)

     

    Net cash provided by operating activities (a)

     

    8,961

     

    (211)

     

     —

     

    8,750

     

    Investing activities

     

      

     

      

     

      

     

      

     

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

     

    (8,306)

     

    (9)

     

     —

     

    (8,315)

     

    Cash paid for investment securities, net of cash acquired

     

    (1,244)

     

    55

    (1) 

     —

     

    (1,189)

     

    Investments in associates and joint ventures

     

    (17)

     

     —

     

     —

     

    (17)

     

    Others purchases of assets available for sale

     

    (12)

     

     —

     

     —

     

    (12)

     

    Purchases of equity securities measured at fair value

     

    (1)

     

     —

     

     —

     

    (1)

     

    Proceeds from sales of investment securities, net of cash transferred

     

    4,588

     

     —

     

     —

     

    4,588

     

    Decrease (increase) in securities and other financial assets

     

    (65)

     

    105

     

    27

     

    67

     

    Net cash used in investing activities (b)

     

    (5,057)

     

    151

     

    27

     

    (4,879)

     

    Financing activities

     

      

     

      

     

      

     

      

     

    Cash flows from financing activities

     

     

     

     

     

     

     

     

     

    Medium and long-term debt issuances

     

    3,411

     

    27

     

    (27)

     

    3,411

     

    Medium and long-term debt redemptions and repayments

     

    (2,667)

     

    (27)

     

     —

     

    (2,694)

     

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

     

    90

     

    44

     

     —

     

    134

     

    Decrease (increase) of cash collateral deposits

     

    (888)

     

     4

     

     —

     

    (884)

     

    Exchange rates effects on derivatives, net

     

    201

     

     —

     

     —

     

    201

     

    Other cash flows

     

     

     

     

     

     

     

     

     

    Coupon on subordinated notes

     

    (291)

     

     —

     

     —

     

    (291)

     

    Proceeds (purchases) from treasury shares

     

     2

     

     —

     

     —

     

     2

     

    Capital increase (decrease) – owners of the parent company

     

    113

     

     —

     

     —

     

    113

     

    Capital increase (decrease) - non-controlling interests

     

    (104)

     

    100

    (2) 

     —

     

    (4)

     

    Changes in ownership interests with no gain / loss of control

     

    (16)

     

     —

     

     —

     

    (16)

     

    Dividends paid to owners of the parent company

     

    (1,596)

     

     —

     

     —

     

    (1,596)

     

    Dividends paid to non-controlling interests

     

    (259)

     

     —

     

     —

     

    (259)

     

    Net cash used in financing activities (c)

     

    (2,004)

     

    148

     

    (27)

     

    (1,883)

     

    Cash and cash equivalents in the opening balance

     

    4,469

     

     —

     

     —

     

    4,469

     

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

     

    1,900

     

    88

     

     —

     

    1,988

     

    Exchange rates changes on cash and cash equivalents and other non-monetary effects

     

    (102)

     

     —

     

     —

     

    (102)

     

    Cash and cash equivalents in the closing balance

     

    6,267

     

    88

     

     —

     

    6,355

     

     

    (1)

    Corresponded to Orange Bank cash acquired.

    (2)

    Of which 65 million euros invested by Orange.

    1.7 Transition from adjusted EBITDA to reported EBITDA

    In 2017, the significant litigation-related expenses correspond to the reassessment of the risk related to various disputes. The significant litigation-related expenses in 2015 notably included a fine of  350 million euros relating to a dispute concerning competition in the Enterprise market.

    The specific labor expenses predominantly reflect the impact of changes in assumptions and experience adjustments of the various “part-time for seniors plans” (TPS) in France. In 2015, these mainly related to the one-year extension of the 2012 TPS plan (see Note 6.2).

    The review of the investments and business portfolio in 2016 included the gains on disposal of Fime in the amount of 49 million euros. In 2015, the review of the investments and business portfolio primarily included the gains on disposal of Dailymotion in the amount of 170 million euros (see Note 3.2) and the impact of the restructuring of the asset portfolio.

    The restructuring and integration costs are presented in Note 5.3.

    The other specific items in 2016 included the costs of the non-completed Bouygues transaction.

    Change in the presentation of segment information in 2017

     

     

    Change in operating segments in Africa and the Middle East

    With effect from 2017, decisions regarding the allocation of resources and the assessment of the performance of the various components of Orange will be made by the Chairman and Chief Executive Officer (main operational decision-maker) at the following levels in Africa and the Middle East: sub-group Sonatel (combining the Sonatel entities in Senegal, Orange Mali, Orange Bissau, Orange in Guinea and Orange in Sierra Leone), sub-group Côte d’Ivoire (combining the entities Orange Côte d’Ivoire, Orange in Burkina Faso and Orange in Liberia) and each of the other countries in Africa and the Middle East, which shall henceforth constitute operating segments. The segment information presented in the consolidated financial statements of the Group remained unchanged. This change has no impact with regard to goodwill testing.

    Management of the Enterprise market in France

    The presentation of segment information has been changed to better reflect the management of the Enterprise market in France. The operating income and expenses of mobile services and mobile equipment sales to businesses employing more than 50 people, until now included in the France operating segment, have been integrated within the activities of the Enterprise segment. This change had no impact on the Group's income statement. Only the presentation of the revenues and operating expenses of the France and Enterprise segments has been amended, with an adjustment to the intragroup eliminations. At December 31, 2016, the impact of this transfer on revenues was (1,024) million euros for the France segment and 955 million euros for the Enterprise segment. At December 31, 2015, the impact of this transfer on revenues was (1,037) million euros for the France segment and 974 million euros for the Enterprise segment. This impact resulted in an increase in operating income of the Enterprise segment of 328 million euros in 2016 and 337 million euros in 2015.

    This change also affected the composition of the France and Enterprise Cash Generating Units (CGUs). For instance, the goodwill originally assigned to the France CGU was partially reassigned to the Enterprise CGU and estimated at 1 billion euros based on the future expected cash flows of the transferred activity.

    The presentation of previously presented 2016 and 2015 segment data has been amended to reflect these changes.

    Accounting policies

     

    Segment information

     

    Decisions on the allocation of resources and the performance assessment of Orange component parts (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 locations. Thus, the operating segments are:

    ■    France (excluding Enterprise);

    ■    Spain, Poland, Belgium, Luxembourg, and each Central European country (with a subtotal combining the countries in that zone);

    ■    the sub-group Sonatel (combining the Sonatel entities in Senegal, Orange Mali, Orange Bissau, Orange in Guinea and Orange in Sierra Leone), the sub-group Côte d’Ivoire (combining the entities Orange Côte d’Ivoire, Orange in Burkina Faso and Orange in Liberia) and each of the other countries in Africa and the Middle East (with a sub-total combining the countries in that zone);

    ■    Enterprise;

    ■    activities of International Carriers and Shared Services (IC&SS), which comprise certain resources, mainly in the areas of networks and information systems, research and development and other shared competencies, 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, or 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 taken into account for the calculation of the service user’s EBITDA. 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.Adjusted EBITDA and reported EBITDA are operating performance indicators 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 pertinent as it provides readers with the same management indicators as those used internally.

    Reported EBITDA corresponds to operating income before depreciation and amortization, effects associated with takeovers the reversal of translation reserves of 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:

    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:

    Independently 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 various “part-time for seniors plans” (TPS) in France.

    ■    review of the investments and business portfolio:

    The Group regularly reviews its investments and business portfolio: as part of this review, decisions to dispose of assets are implemented, which by their very nature have an impact on the period during which the disposal 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 or implemented; for instance but not limited to, 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 telecommunication 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.

    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.

    The other accounting policies are presented within each note to which they refer.