Orange S.A. (ORA) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, dear shareholders, good afternoon, and welcome to the Combined Shareholders' Meeting of Orange. It is an honor for me to chair this AGM as an essential annual event in the life of your company. It is also a great opportunity for myself, our CEO and the Board of Directors to present our achievements and projects and answer your questions. The Board of Directors, which met just before this assembly, finalized the answer to the 54 questions that we received in written form, about the Forum for Responsible Investment with 10 questions. CFE- CGC Orange and ADEAS, 28 questions; Orange Equities FCPE, 4 additional questions; Employees and shareholders, 2 questions; and from [indiscernible] 11 questions; and CFE-CGC Orange and ADEAS, 9 questions. As authorized by the commercial code and to make time for discussion with you who are here with us today, I suggest you look at the dedicated pages of the AGM on our website, orange.com. Now, here are some legal notices for our holding of this meeting. In accordance with the law and Article 21 of Orange's articles, I will Chair this meeting, which is held on first notice. The preliminary notice was published in the BALO on 26th of February 2024, followed by the notice in the BALO on the 26th of April as well as the Actu-Juridique.fr website. All relevant legal information has therefore been published. The required quorum has been met already for the ordinary and extraordinary shareholders meeting. The provisional quorum is 73.3 -- 76.3%, sorry. We will inform you of the final quorum at the end of the meeting. I now declare this AGM open. We have 2 shareholders with the highest number of votes are Bpifrance and the French investment agency, APE. However, we decided that the third largest shareholders of Orange Actions employee share ownership fund will be -- will act as scrutineer because it represents more than 10% of the voting -- votes. Jerome Henique will join us. And for Orange Actions, Madam Nadia Zak Calvet, who is the Chairwoman of the Supervisory Board. And Nicolas Guerin will be -- will act as the Secretary of the meeting. Joining me on stage, Christel Heydemann, who is the Chief Executive Officer; Laurent Martinez, Executive Vice President; and Nicolas Guerin, Secretary General of the Group and Secretary of the Board of Directors. Board of Directors also here today with us as well as the members of the Executive Committee. I would like to take this opportunity to pay tribute to the work achieved by all our directors as well as the various committees, in particular, the governance and the CSR committees chaired by Anne-Gabrielle Heilbronner, they are responsible for implementing our governance policies and the recommendations resulting from an independent evaluation. In 2023, the Board of Directors committed to support the group's transformation strategy. The objective is to become more resilient, more efficient, responsive and agile. We want to enable growth in an extremely competitive market wherever we operate. The Board approved the ambitious strategic plan, Lead the Future. It is ambitious but realistic. Christel Heydemann will tell you more about this in her presentation. But at this stage, all the objectives presented in this plan are on target. In strategic terms, the Board of Directors is taking steps for the major technological challenges ahead of us. And this is to support transformation and growth of the group. The group will be able to refocus on its core business in line with recommendations from the Strategy and Technology Committee. To enable the group to address the challenges faced by the telecom industry, the Board of Directors understand the need to achieve a single market for telecommunications in France and Europe. As you know, our sector is highly and fiercely competitive. Current regulations, which were implemented at the end of the 1990s to allow the opening up of the telecom market is no longer appropriate. The extreme market fragmentation and the operators scattered everywhere across Europe is problematic. And this does not allow any balance. Furthermore, investment in infrastructure, which is needed to ensure Europe's competitiveness and sovereignty is essential. So we are prioritizing these issues and will urge the next European Commission to do the same. I see 4 key priorities. First of all, to enable the emergence of European players capable of competing with a major American, Chinese and now Indian operators through the necessary consolidation that requires moving away from the current dogmatic approach and enabling consolidations both at national and international levels. We also need to develop the European regulatory framework, particularly by bringing national regulatory frameworks closer together so that they reflect the current state of our sector. But it isn't it also necessary to think about deregulating the sector to further unleash innovation and creativity. Finally, there's the fair share that we already heard about, which is about finding ways to ensure that particularly U.S. tech giants pay for the right to use our networks. The idea is to rebalance the economics of the telecoms industry in Europe and to put an end to the value destruction that many operators have been suffering under from years. In this area, Orange has already achieved some key milestones such as the completion of the joint venture project with MasMovil to launch a major telecom player in Spain, MasOrange. The creation of this new entity was authorized by the European Commission in February 2024 after 2 years of intense negotiations. And the Board is following the progress of this project, which will allow the group to operate more than 37 million fixed and mobile lines in Spain, while achieving more than EUR 490 million in synergies per year from the fourth year. This operation is complemented by consolidation in Romania with incumbent operator, Telekom Romania and in Belgium with the cable operator, VOO. All of this will allow us to strengthen our position in Europe. But we're not just seeking strength. We're also mindful of market developments and the expectations of our customers, individuals and companies of all sizes, for example, with regard to new services, such as AI cloud services and cybersecurity. In the context of strong geopolitical, economic, social and technological uncertainty, Orange must meet high expectations as a trusted partner. So I can remind you of our purpose, which we approved in 2020, which has since then been included into our bylaws, which remain in control of our future. The Board knows that we must control our networks to ensure that our customers enjoy high-quality infrastructure and services, which they're entitled to, whilst at the same time, enabling the group to achieve its strategic and financial ambitions. Beyond 2025, the Lead the Future Plan will need to evolve and be reinforced as Orange continues to improve competitiveness and ensure profitable growth in France, while focusing on Orange business and integrating AI and cybersecurity into its connectivity solutions, which are essential to our customers. We will continue to deploy and modernize our networks through innovation and artificial intelligence while decommissioning the copper network in France by 2030. This is essential for developing future services and technologies. Finally, we'll have to continue to focus on Orange's growth in Africa and the Middle East, thanks to our extremely efficient and effective local teams. This focus on performance is essential if Orange and the entire telecom industry in Europe is to find its way back to value creation. A strong focus will enable us to generate the cash flow necessary to finance our investments and ensure our future growth. But our drive performance, must, of course, be carried out while respecting employee well-being. The Voice Up survey sent to all staff and to which nearly 80,000 Orange employees responded has been very valuable. It has shown us that employee engagement, particularly in France is absolutely comparable to other CAC40 companies. I see this commitment each and every day when I meet our teams in France and in all of our subsidiaries. Our teams are proud to work for Orange, are satisfied in terms of workplace well-being and committed to achieving success for our company in a competitive environment. But this commitment is also reflected in supporting the various Orange foundations. The company diverts 1% of net income, particularly towards digital inclusion. Today, more than 2 million beneficiaries have received free training with the aim of reaching 2.5 million by 2025 and 6 million by 2030. Orange's ambitions are underpinned by solid governance. The Board of Directors is supported by fully invested members with complementary expertise. The 15 members of the Board work in a collegial spirit, each bringing their expertise and skills whether they are an Independent Director like myself, which makes up half of the Board, or the 3 representatives of the state, Orange is a largest shareholder or employee representatives, where 3 are directly elected and 1 represents his or her employee colleagues. As usual, an external company assessed the key skills and expertise of the Board members. The Board was further strengthened by the appointments in 2023 of Gilles Grapinet to strengthen and chair the Audit Committee; and Momar Nguer from Senegal who brings valuable knowledge of Africa and long operational experience to TotalEnergies. This analysis shows, thanks to the diversity and diversity of experiences of its members, both in France and internationally, the Board has the qualities necessary to understand the issues presented to it. With regard to CSR, members of the Board were invited during the second half of 2023 to a training session on the group's challenges and their responsibility to climate and environmental matters. In 2023, the total number of Board and committee meetings was close to 30. Orange's directors showed very strong involvement with an attendance rate close to 100% as published in our Universal Registration Document. Thanks to regular executive sessions and good quality information provided to Directors, along with benchmarks. The Board is in a good place to make recommendations to the company's management. This 2024 AGM is also an opportunity to renew the mandate of Frederic Sanchez, Independent Director and Chairman of the Strategy and Technology Committee, which plays a major role, and also of Christel Heydemann, our Chief Executive Officer. Christel has, as you will recall, been a Director of Orange since 2017 and began her term as CEO. 2 years ago in April 2022. The Board fully supports the renewal of her term of office. And on behalf of the Board of Directors, I would like to reiterate my confidence in Christel Heydemann for her strategic vision and her ability to implement it. And in her largely renewed executive committee. I would like to take this opportunity to address the subject of the remuneration of your CEO. The council debated this at length under the impetus of the CGRSE which has carried considerable work on this subject, and I'd like to thank Anne-Gabrielle Heilbronner for taking the lead on this. The objectives that have been set for 2023 with regard to the annual variable share have all been achieved for the first time in many years, and this is obviously excellent news. Now, for 2024, the remuneration policy that you will be asked to approve when voting on the resolutions at the end of the meeting, is unchanged. Adjustments have been introduced to ensure that the same criteria is not found in both the annual and the multiyear variable remuneration via the long-term incentive plan, or LTIP. And to introduce for the first time, a new environmental indicator into the annual variable remuneration. Now another adjustment is to include overachievement in the LTIP without increasing the maximum remuneration of our CEO. The idea here is mostly to send a message to the group's teams who will be subject to the same criteria and to show the importance that the Board attaches to the group's ability to generate cash and profitability so as to be able to invest into future. Finally, as this remuneration policy remains the same this year, the Board has indicated that it reserves the right if the need should arise to review it during Christel Heydemann's term of office. As you know, on 7th of May 2024, the Board of Directors met to examine the follow-up to the judgment rendered on the 3rd of May, by the Nanterre Commercial Court, which annulled the second round of the election to designate the employee shareholder representative on the Board following an appeal by the CFDT Orange trade union. The court notably considered that the campaign leading up to this preconsultation phase has not been conducted in accordance with the standards that apply in such electoral processes in terms of ethics and equity. In particular, the court approached the CFE-CGC Orange, which supported the candidacy of the leading pair after the second round, having used extraordinary means in favor of this candidacy which resulted in an influence on the vote and the manipulation of electoral process. For these reasons and in the interest of fairness, the court annulled, the second round of the preconsultation and consequently annulled the result of the election with immediate effect. In view of this decision, the Board of Directors noted that Resolution 7 of today's AGM can no longer be presented. This resolution provided for the appointment of a Board member representing employee shareholders from the pair supported by the CFE-CGC Orange. This is irrespective of the fact that the agenda of the meeting had been published, the legal information for shareholders and the invitation to the Annual General Meeting has been sent and the voting period had been opened. An appeal against this judgment was filed before the Versailles Court of Appeal on May 13, but it does not change the fact that in compliance with the applicable rules of information and communication, Resolution 7 will not be submitted to the vote today. And any votes already cast will not be counted. The Board has also instructed the group's management to initiate a new procedure in order to present to a future general meeting of shareholders, a candidate formed of a pair, including a leading representative and a substitute for this position. The Board of Directors deplores the inappropriate practices highlighted by the court in its decision and is taking measures to resolve the situation to welcome a new director representing the employee shareholders. Before finishing, I'd like to return to more positive note and let you know that I reevaluated the Board and its committees again this year, just a year after the audit carried out at the beginning of 2023. Indeed, it was -- it seemed important to me that 1 year on from implementing our new governance and taking into account the arrival of 2 new directors, an independent firm could assess the progress of measures put in place when I arrived. As of meeting on 14th of February 2024, the Board noted the results of this new assessment. The report submitted indicates that almost all directors considered that the functioning of the Board have continued to improve in several areas. And in particular, notes strong commitment of all of your directors to the company which is something that is conducive to productive work and open discussion on all subjects are reinforced by regular executive sessions and also noted the harmonious way in which I work alongside our CEO. This evaluation also highlights an increase in the quality of the information provided to the Board often supported by benchmark so that in each of our countries and businesses, we can compare our performance to that of our best competitors regardless of the size and origin. This allows us to make improvements and enables directors to make a positive contribution to the group's management. Directors are also satisfied with the quality of the presentations that were made at the annual strategic seminar. To finish, I'd like to remind you dear shareholders that since my appointment, I have made sure that I was in regular contact with Orange's main shareholders. I have done that over the last month, and I felt that was extremely important. I met with representatives of employee shareholders who represent nearly 8% of the company's capital as well as representatives of Orange's Shareholders' Consultative Committee, CCAO, and American and European shareholders representing 20% of the company's capital. Thank you for your time, and I now hand over to Gilles Grapinet, Chairman of the Audit Committee.

Dear shareholders, as a Chairman of the Audit Committee, it is my honor to share with you what the work this committee has been during this year. The Audit Committee in 2023 has seen an improvement and an intensification of its work. Particularly, it has wished to better differentiate as part of its work and its feedback sessions to the Board. First of all, the monitoring of performance and actions that have been taken to implement Lead the Future as well as its more traditional activities, recurring activities of verifying the compliance of financial statements, internal control and risk monitoring. And so I would like to start by reporting on the first portion of our work in monitoring and supporting the Lead the Future strategic plan with a key focus on the value strategy of core telco activities, obviously, as well as monitoring action to exit nonpriority sector such as we have deemed to be nonpriority banking and SCOs. While at the same time, strengthening the core telco business through mergers or acquisitions in certain countries and transforming strategic activities to promote recovery within Orange Business and Orange Cyberdefense. In the same spirit, the Audit Committee has increased the attention that has been paying to the major consolidated statements at the heart of the plan. In particular, those oriented towards cash flow generation, such as the new FCF all in EPS, earnings per share, and ROCE which are, of course, communicated in addition to the more traditional statements relating to growth, cost control and revenue and non-revenues development over time. Regarding the divestments of activities that were deemed nonstrategic during the 2023 financial year, an ad hoc committee was set up with 3 committee chairs to oversee, on behalf of the Board, the progress made on the search with partners for Orange Bank. The work of this ad hoc committee which the Chairman of the Board, let me remind you, did not take part as had been announced, was spread over the months of April, May and June last and -- of last year and concluded with the announcement on the 28th of June 2023 of the entry into exclusive negotiations with BNP Paribas. Subsequently, the Audit Committee monitored the potential financial and accounting impacts of this operation and will continue to do so until the banking license is handed over. Regarding strengthening the core telco activities.with regard to Belgium, the Audit Committee monitored Orange Belgium's acquisition of the controlling stake in VOO from its partner Nethys until the European Commission cleared the transaction and closed in June 2023. We're now monitoring the implementation of synergies. The Audit Committee has also very closely followed the strategic merger between Orange Spain and MasMovil. Taking into account, in particular, the updating of the business plan and the sensitivity to market conditions. Despite its deconsolidation from the group's overall financial accounts, the audit committee has wished to continue to follow this case very closely given the strategic importance of the Spanish joint venture for the group. Another ongoing European action for the Audit Committee in 2024 is to review the work to finalize the agreement with the Romanian State with a view to completing the merger of Orange Romania Communications, in which the Romanian state is a co-shareholder into Orange Romania along, of course, with all the necessary restructuring. Concerning the [ more traditional ] scope of the committee to monitor risks, control and performance. As every year, the Audit Committee has reviewed the company's risk mapping, including the effectiveness of the risk management system. But in 2023, in particular, we have looked at some specific topics in a more in-depth way. And I wanted to report on 4 types of risks. The Paris 2024 Olympic and Paralympic games in terms of how we manage things and the associated risks. The geopolitical situation, particularly in Africa. The climate risk, of course, and the cyber crime risk. I would also like to tell you that this year, the Audit Committee has carried out some extensive and in-depth work on the results of the annual assessment of the internal financial control system following a presentation by the group internal control department in collaboration with our auditors. Overall, this work has concluded that our system is effective, but it is the subject of a short- and medium-term improvement plan under the aegis of the finance department, particularly as regards to the processes and IT tools. In terms of ethics and compliance, the Audit Committee examined the actions underway and the follow-up to the AFA's audit along with the action plan, which is being implemented. Now in connection with, obviously, all of the above work, the committee as it is instructed to do has looked at and approved the group internal audit plan and received a regular summary. It has validated the new group audit guideline, which strengthens central coordination within all subsidiaries. Finally, together with the auditors, the committee has also discussed their audit plan for the 2023 financial year. In terms of legal disputes, the Audit Committee, as it does each half year, it has examined a detailed inventory of the situation to monitor the evolution. Similarly, we provide an annual update on the group's tax adjustments and financing strategy. The committee, lastly, has also received regular information on the evolution of the Orange share price from the Investor Relations department, along with comparative performance analysis. And as is customary, in addition to analyzing the quarterly results, the committee also reviews all of the group's financial statements for the market and makes recommendations to the Board of Directors in all of these areas. Finally, with regard to the scope of the audit committee, in particular, and to best practices. I do hold bilateral meetings with the statutory auditors twice a year. I will convene the committee during an executive session that is without the members of the group's management to mark the half yearly and annual closures. I'd also like to introduce a new topic, which you know is very topical, indeed, the new sustainability reporting scheme together with CGRSE, the Audit Committee has examined the elements of the entry into force of the CSRD European directive and has followed the different stages of the call for tenders implemented to choose the auditors of the sustainability reports whose names are submitted to your vote today. At the end of this process, the Board has also applied the necessary provisions relating to the new division of expertise and labor between those 2 committees. As a result of these changes, the Audit Committee will now, as of the next financial year be responsible and in addition to its current scope for monitoring the sustainability reporting process and the process for determining the disclosures to be made in accordance with the group's sustainability reporting standards. It will also extend its monitoring of the effectiveness of internal control and risk management systems and internal audits to process sustainability information. In line with the group's strategy and beyond its current remit, the RMSMC will examine stakeholder dialogue in the results of the group's policy on sustainability and CSR, in particular, on the basis of all the information published by the group in this area. Dear shareholders, I'd like to pay tribute to the efforts undertaken during this financial year during 2023 -- sorry, by your directors within the Audit Committee. On behalf of the committee, I'd also like to thank our statutory auditors and the group's management teams who are under the aegis of the new CFO, Laurent Martinez, have enabled the Audit Committee to achieve its mandate in 2023, very successfully. Thank you for your attention.

Thank you, Gilles. Let me now give over to Laurent Martinez, our Chief Financial Officer.

Thank you Mr. Chairman, dear shareholders, I'm delighted to speak to you today, 8 months after I took office as Orange's CFO. It is my pleasure to share the group's 2023 results, which, as you know, is the first year for executing our Lead the Future strategic plan, which aims to strengthen the group's value creation to benefit all of our stakeholders. Our 2023 financial results are fully in line with guidance and confirm our ability to achieve our 2025 targets. I'd like to start by commenting on our commercial performance, supported by our network quality and customer service excellence. So Orange maintains its leading position in convergence with nearly 12 million customers, up 0.7% year-on-year. Orange has 254 million mobile lines, including 104 million packages, up 10% year-on-year. Our FTTH customer base grew sharply by 12% to reach more than 16.5 million customers at the end of 2023. Despite inflation, which increased further in 2023, our price [ crisis ] enabled us to partially offset the increase in our cost. The French regulator has also recognized us as the best mobile network for the 13th year running. And to conclude on these commercial issues, something else that we've done very successfully was act as a responsible partner by lowering the prices of our social offering in France. Let's move on to our financial performance, starting with the group's revenue, which increased by 1.8% in 2023, mainly driven by Africa and the Middle East, up 11%, a 10-year record, but also by Spain, which returned to plus 1% growth and by the other European countries which grew by 3%. Orange business recorded stable results. France recorded a minus 1.4% decrease, as expected, explained by the decline in copper revenues and a strong 3% increase in retail service revenues, excluding PSTN. Now let's talk about the group's profitability. EBITDAaL is up 1.3% in 2023, in line with our objectives. Analyzing this figure by country, it should be noted that the highest EBITDAaL growth comes from Africa and Middle East, it's 13%, demonstrating the strength of our multi-country, multi-business operations. Spain's 12% growth is also a real success and reflects our ability to create value in a highly competitive environment. Our other European countries are up 1.7%. France has recovered in the second half of the year, ending the year at minus 3.6% despite a strong retail performance that could not offset the significant increase in the energy costs and anticipated ongoing decline in wholesale copper, as you know. The return to stable profitability in 2024. Finally, while Orange business declined by 15% compared with 2022, the trend is now improving compared to last year. Our action plan is starting to pay off, in other words, with the aim of returning to EBITDAaL growth in 2025. To conclude on EBITDA, our improved profitability also comes from our operational efficiency program which aims to make the group's operations more agile and simple. These efforts translate into EUR 300 million in net savings over 1 year i.e. half of our commitment by 2025. In addition to our strict discipline on costs, our lead in FTTH deployment has enabled us to significantly reduce our eCapEx investments, which are down by nearly 7% in 2023. As you know, Orange is the undisputed leader in fiber in Europe with more than 67 million connectable households. That's twice as many as Deutsche Telekom, Vodafone, British Telecom and Telekom Italia combined. As a reminder, our first-rate network infrastructure is leading to optimized 5G rollout. Orange's 5G is now available in 10 countries. On cash flow, 2023 has marked the achievement of a major threshold. Our new free cash flow all-in indicator grew by more than EUR 1 billion to reach EUR 2.9 billion. All segments contributed to this cash performance with the exception of Orange Business. Another major asset is the strength of our balance sheet. And our level of financial debt remains around 2 years of EBITDAaL 2.05 at the end of 2023, a slight increase compared to the end of 2022, mainly due to the acquisition of our competitor in Belgium. This financial strength allows us to put forward an increase in dividends from EUR 0.70 per share for 2020 to EUR 0.72 per share for 2023. I would now like to present the new indicators that we use to measure value creation, which is so central to our strategy. Starting with our earnings per share, up 16% over 2023, thanks to an increase in net income of more than 10%. Secondly, return on capital invested, which shows the group's ability to optimize its resources to generate its margin. This indicator is up 80 points compared to 2022, in line with our 2025 target. Now I'll conclude with our 2024 forecast, which, by the way, excludes Spain because due to the combination of our operations with MasMovil, we now hold 50% stake in our new market leader that is no longer consolidated in our accounts. In 2024, we plan to continue to improve profitability with EBITDAaL growing slightly, thanks to continued revenue growth and strict cost control and investment discipline. Cash generation will continue to go up by EUR 3.3 billion from EUR 3.18 billion generated in 2023. On this basis, we maintain our commitment to maintaining a level of net financial debt in the medium term of around 2 years of EBITDA. And this will result in an increase of the dividend for 2024 to EUR 0.75 per share, subject to approval at the 2025 AGM. Thank you very much for your attention.

Thank you, Laurent. Let me now welcome Christophe Patrier for the auditor's report.

It is my pleasure on behalf of KPMG and Deloitte to I present you with the report that we have issued for the year that closed on the 31st of December 2023. These reports in the 2023 universal document. What I suggest is that I will summarize the main point of it. In terms of consolidated results, these accounts as we certified are regular and sincere And give a faithful picture of the results of the financial situation and of the assets of the company and group at the end of 2023. In the context of our mission, we have paid close attention to some of the points that we deem the most sensitive, whether because information systems are particularly complex or because they contain judgment points that are of significant importance. We have felt that revenue recognition for telecommunications activities, evaluation of provisions for major legal distributes and tax adjustments and evaluation of equity investments in goodwill so was valuation of goodwill impairments for certain cash generating units were the key points. Besides that, the goodwill assessment for some of the BUs as part of the depreciation test have also been further key points in the auditing of consolidated accounts. As far as the fourth resolution of your shareholders' meeting, we have made a statement on the regulated agreements. The agreements that we're talking about certain exclusive negotiation agreement between Orange S.A and BNP Paribas to -- relating to Orange Bank's customers has some concerns. Mr. Jacques Aschenbroich, Chairman of the Board of Directors; Orange S.A, Director of BNP Paribas, we inform you that we've not been advised of any agreements, which are already approved by the shareholders' meeting. Now as regards to the extraordinary portion of our general assembly, we have issued 3 reports on resolutions that allowed transactions that would have major impact on your accounts on the issuance of free shares to corporate offices and certain Orange Group employees. That would be under Resolution 13. The second one, Resolution 18, on the delegation of authorities to the Board of Directors to issue shares or complex securities reserved for members of savings schemes. And lastly, we have issued a report on Resolution 19, that's delegation of power for a period of 18 months to the Board of Directors to reduce the share capital by canceling shares. There were no peculiar observations to make, and we can always make comments on that as the need may arise in the future. Resolution A, there's an amendment to resolution 17. We have nothing to -- no observation to make in this regard. And lastly, we have also issued a report which shows not to vote on nonfinancial statements -- on the verification of the consolidated nonfinancial statements. Thank you very much for your attention.

Thank you. Before we hear from Christel Heydemann. I wanted to share, Orange's new Signature -- brand signature, Orange LA. [Presentation]

Christel. Christel, you have the floor.

Ladies and gentlemen, I'm delighted to be here with you today. Orange decided a few months ago to set up a new Executive Committee, I would like to take this opportunity to celebrate the arrival of Bruno Zerbib as Head of Innovation and Laurent Martinez, as Head of Finance. They joined the Board in 2023. This new government structure has been essential to manage a group of the size and diversity of ours. And I would like to commend Jacques Aschenbroich. Thank you for your work as Chair of the Orange Board of Directors. We have been busy implementing the ambition set out in the Lead the Future strategic plan that we presented to you last year. This plan set our 2025 targets and help us to prepare for the challenges ahead of us. On behalf of the entire leadership team, I would like to thank you for being here today. As Jacques mentioned, I would like to tell you a bit more about the telecom sector in Europe. Our industry is facing complex challenges and remains fragmented. When an operator in Europe has around 5 million customers on average, an American operator has around 100 million and the Chinese counterpart has more than 450 million. The European Commission recognizes that European operators are falling short of the investment capacity needed by 2023 in order to achieve connectivity objectives in Europe. European -- the European industry are falling short of the necessary investment. However, we are seeing increased awareness. And Enrico Letta, the former Italian Minister, sent a report to the European Commission, and it was entitled, much more than a market. It pleads in favor of a unified sector in order to set out the right priority for our sector, the changes in the regulations should foster like new regulations and bring about a new European leaders. We agree with Enrico Letta and would like to go further. In this context, European operators are faced with various landscapes and environment, low-cost aggressive operators are growing strongly and have become our competitors everywhere in Europe. They benefit from the regulations. Given the situation, some historic operators decided to take some measures, for example, Telecom Italia decided to sell its network to Vodafone or KKR. In this context, Orange is placed as the first consolidator operator, thanks to our operations in Spain with MasMovil, in Romania with the Fusion with Telekom Romania and in Belgium with the buying back of the VOO operator, I would like to commend the teams who have worked on these operations and all the pleading with the European Commission to get to this resolved. Now we have to deliver on all those synergies. Now I would like to tell you that our operational strategy and talk a bit more about Lead the Future. We are already proud of the initial results that bring about some important changes. I would like to commend all the employees of Orange around the work for their commitments and their expertise. We would like to give more value to our core business. We decided to invest on fiber connection. It represents between 20% and 80% of our business in France and in Europe. We decided to increase our prices in order to compensate -- to offset inflation. We've managed to limit customer attrition and build customer loyalty. We are determined to meet our customers' expectations in terms of proximity and responsiveness. Our new brand signature shows our determination to meet our customers' expectations in terms of proximity and responsiveness. Our connectivity and security services are essential for everyone, and we are committed to delivering the best. Our second pillar is based on our infrastructure. Our fixed network mobile sites, submarine cables and core networks are key assets. We are a leading FTTH operator. We own 2/3 of all the sockets deployed in Europe. We also own over 75,000 mobile sites in Europe in Africa and the Middle East directly or via our subsidiary, TOTEM. The arrival of new investors in the digital infrastructure market strengthens our conviction. Our balance sheet has become stronger, and we have a broader control of the value chain. Our third pillar is the transformation of activities for enterprise customers. We want to reposition our business to serve new needs in next-generation connectivity, cloud and cybersecurity. In 2023, we have achieved our financial objectives. Orange retained its position as European leader in cybersecurity services. And we have reached an important milestone with more than EUR 1 billion in revenue in 2023 or 11% growth, Aliette Mousnier-Lompre will tell you more about innovation challenges, especially when it comes to AI. Finally, growth in the EMEA zone is our fourth pillar with 11% growth of revenue in 2023, EMEA once again shows that it is our fourth growth driver with fixed broadband connectivity, mobile money, mobile data and B2B services. In 2023, we also launched Max it, a super app that brings together telecoms and payment services and an e-commerce and content platform in a single interface. So Max it is lready a commercial success, having already attracted 8.3 million active users in 7 countries in just a few months. We are achieving all our financial objectives as announced in our strategic plan, as Laurent Martinez reminded us earlier. Beyond these results, I would like to commend our Orange teams, none of this would have been possible without you. Our employees are the backbone of our company and you're committed day in day out. So we decided to launch Voice Up, our new employee barometer, that measures the results entity by entity. This year's results show a participation rate of 65% at 10 points compared to the previous addition. 72% of employees will recommend Orange as the place of work and 81% expressed their pride in working for Orange. This honors us and shows that the strength of our group lies in our employees. All these results show the relevance of our strategic plan and its implementation. Our capacity to openly innovate is essential to face disruptions and new technologies as well as newcomers. In terms of innovation, AI is a piece of innovation that we have been working on for years. So we are developing use cases that can be adopted at the group level to create value in 3 areas. So for example, AI allows us to launch more effective and targeted marketing campaigns and improve customer service and problem resolution for our customers' service teams. For our network, we already use optimization tools for our fiber and mobile network with more than 50 use cases in development. In the future, Gen AI will also help change our network operation centers. For our employees, we have developed an internal and secure called tool called, Dinootoo, an AI tool based on ChatGPT or Mistral. Over 30,000 of our employees have already used it at least once. In terms of co-innovation, we were among the first to be part of the Open Gateway initiative, which aims to transform telecom networks into a platform for developers by providing simple ready-to-use APIs to enable on-demand connectivity tailored to the needs of the users. And we're positioning as an operator means that we can provide a unique user experience by offering identity and anti-fraud APIs, securing banking transaction, protecting children and verifying the identity of users. We are well aware of the opportunities and challenges ahead of us. This is why our priorities for 2024 and 2025, are clear. First and foremost, we will continue to implement our strategic plan. In France, we will continue to transform our model through a copper-to-fiber migration while at the same time, ensuring margin stability. In Europe, it is time to execute synergies in the 3 countries where we have carried out consolidation deals, namely Belgium, Romania and of course, Spain. We must also continue the transformation and digitalization plan. In EMEA, the objective and priorities and continue to develop our growth. To succeed, we need to develop our key and human skills. In a digital market that is ever changing, training our teams and acquiring new skills is going to be essential, and we are already working on this. We have launched a program for Orange business in order to train our employees to the jobs of the future, they are particularly linked to AI, cybersecurity and integration. We are aiming for 20,000 certifications by 2025 and 5,000 employees upskilled or retrained. This is part of the new enterprise model challenge. We want to improve and strengthen synergies whenever relevant. We also want to change and improve our company's culture in order to step up to the plate of any transformation ahead of us. Finally, I would like to lay the emphasis on the climate change. We estimate that there will be a 40% increase in natural disasters with floods, storms, droughts, the APCC reports underlies that these events will be more frequent and more impactful. And this, of course, will impact our infrastructure and equipment. We saw this already with the storms, Ciaran and Domingos last November in France, 74,000 households were disconnected and 385,000 French people in terms of difficulties connecting to the mobile network. We have already deployed nearly 6,000 technicians on the ground in order to deal with the damage. This gives us a heavy responsibility. First, we must mitigate the effects by continuing to reduce our carbon footprint, while at the same time, building and maintaining the most resilient infrastructure possible to guarantee service continuity and reduce the financial consequences of climate risks. The GSMA estimates that by 2028, the mobile data consumption will increase threefold. Based with this sharp increase, mainly driven by an increase in video traffic and undoubtedly, AI in the future, we must adapt and invest in new technologies such as the high-speed broadband, fiber and 5G. These are solutions that will allow us to absorb more data while reducing our carbon impact. For example, fiber uses 3x less energy than copper, decommissioning 2G and 3G networks will also make us -- allow us to make better use of the spectrum and reduce our energy consumption. So we have solutions that we must act now. The digital sector currently accounts for only 2.5% of greenhouse gas emissions in France. However, it could increase to up to 7% by 2040. If we do not ban carbon footprint emissions will increase in France by 45% by 2030 and could increase fourfold by 2050. Orange has made a strong commitment to fight climate change, including reaching net zero by 2040. Our direct emissions, the scope 1 and scope 2 emissions, which are necessary for our networks and operations, represent 19% of our emissions. We have carried out actions in order to reduce our emissions by 30%. So we've achieved our 2025 objectives with -- 2 years ahead of time. We must now continue this approach by accelerating network energy optimization and by developing network sharing and pooling, which for example, avoid building excessively compared to consumption needs. We must also continue our efforts to minimize emissions in Europe via PPAs or in EMEA through solarization. At the end of 2023, more than 90% of the energy used to power our network and data centers in Europe and more than 1/3 in EMEA was low carbon energy. We managed to cut our energy consumption by 17% in our buildings. We also made some commitments to reduce scope 3 or indirect emissions, they represent more than 80% of our emissions and requires us to work with our entire value chain, we must set out relevant carbon objectives and build tools as well as the measurement tools to make progress in France, only 7% of smartphones sold are refurbished. However, refurbished smartphones represent 84% less CO2 than new smartphones. So we decided to offer a new service in our stores. We collect all the smartphones. Every year, 150 million smartphones -- new smartphones are sold every year in France -- in Europe. So this is important. About our network OSCAR program allowed us to save EUR 200 million in capital expenditure in 3 years. We will achieve our objectives only if all our suppliers are on board. Specific CSR criteria are now part of our calls for tender. We want to build this together with our suppliers, this path to net zero. To conclude, I would like to tell you about the project that illustrates our strength, expertise and value. This project has kept us busy for a few years and is now almost finalized. Indeed, we're only 65 days away from the opening ceremony of the Paris Olympic Games. This project shows how bold we are. We are committed to offering end-to-end connectivity for the year, Paris Olympic Games. So we expecting 15 million spectators and 4 billion TV viewers. This is unprecedented, and we are setting a new standard in terms of sustainable technological deployment. The objective is to limit our CO2 footprint to 1 -- to 10,000 metric tons, the equivalent of 1,000 French people for a year. We are also committed to ensuring that 70% of our deployment is sustainable and 75% of the equipment dismantled is reused. We are honored to be a premium partner and official supplier of Paris 2024. We are more than ever committed to this. I'm going to give the floor to Aliette Mousnier-Lompre but first a video. Thank you. [Presentation]

Good afternoon. Orange business customers or companies, large or small, French or international, ministries, administrations or even NGOs, regardless of their size or set through that these clients have been through a massive revolution since the advent of the internet. It is called the digital revolution. For companies, the way they work, sell and operate, is changing very quickly with digital technology. This radical transformation, which has come in waves over the past 20 years with the internet, smartphones and recently, the cloud is going to further accelerate with the advent of artificial intelligence. If you're not an IT Director, you may not understand what this entails from a technological point of view. I'm going to tell you a little story about the document. Take any document in the company. An appointment letter, a contract and invoice and audit report, any document that records a decision, an important information on the basis of which other decisions will be made. Until a few decades ago, this document existed on paper in a single original copy. Now let's look at what the digital revolution has done to this document. First of all, it became digitalized. It became a computer's file and then it also multiplied. This document then became collaborative. It was hosted online and colleagues can work on the same document from anywhere at any time. So how was all this possible for our documents to change to mold it into something new, companies had to put their computers into a network to give the employees complicated means to communicate, be connected to the web, setup storage space, secure them. And all of this while at the same time, bearing in mind a primary concern, data protection and the protection of industrial secrets. But this is only the beginning of the story. Our document will now go on a whole new adventure with AI and namely Generative AI. Because Generative AI reads, analyzes, summarizes and write documents. It also looks for and often find information in those documents. The impact on the way we work, on our processes, information and innovation are going to be huge. So you may be asking yourself, what about Orange business in all of this? Well, until a few years ago, Orange business almost exclusively focused on private, corporate networks of fixed telephony and the mobile fleet. This is what brought about this digital revolution actually. But needs have changed radically, especially during the COVID pandemic. Who today uses a fixed landline telephone, everyone uses video app on computers now. Traditional telecommunications have given way to software and the cloud. At Orange business, our central role in the digital transformation of companies has, therefore, also changed. It has been radically transformed with a strong impact on our profitability since some very profitable legacy activities are disappearing. But our role is more than ever crucial for our customers and brings enormous growth opportunities for the future of Orange. From a B2B telecom operator, we have gradually become a player that works together and the building blocks necessary for the digital work to work better, connectivity, cloud, cybersecurity and data. This is incredible. We work on the performance of electricity distribution network for energy, cyber protection, for hospital computer systems. We also look into improving customer experience for client retailers such as [indiscernible] or banks like [indiscernible]. As I said just a moment ago, the digital transformation of companies and administrations has opened up the way to innovation and opportunities. And at Orange business, we know what role we want to play. We want to make AI more accessible. The opportunities offered by AI are enormous. We are seeing this within the Orange group, for example, with coding assistance, translation, meeting menus or even for helping customer service agents or adjusting commercial proposals and contracts. Some of our employees are saving up to 1 day a week. And business requirements to ride the wave of GenAI is a perfect illustration of the unique and differentiating position of Orange business, as network and digital integrator that understands the entire digital value chain. We are probably the only French actor, able to -- companies from end to end. It is a very complex equation. We have structured data. We support change. We also measure the carbon impact and we offer underlying infrastructure with latency cyber security and many other elements. This equation raises the question of sensitive data and its protection. And the question of trust. Trust is very important for Orange. It has showed a way to our experts when it comes to cyber, data and AI. In March, I announced the offer of ready-to-use AI offer especially for small businesses in France, we work with the start-up LightOn. We wanted to offer a ready-to-use AI solution that is built on trustworthy Orange structures -- infrastructures, which have been approved by the French government. Of course, we don't go from a B2B telecom operator to a network and digital integrator -- a snap of the finger. So we have major transformation challenges in terms of our business and positioning our portfolio of offers, agriculture and our skills. In recent years, we laid the foundation for a new Orange business with a new organization, a new management team and the simplification of our products portfolio. We decided to cut by half our products. This is going to be the beginning of an offensive project for our core business, and we want to position ourselves as the international leader for the piloting of corporate infrastructure. This means that we will have to work on our skills. So this is a major challenge for us and I would like to bring Orange business into the digital world. Over 13,000 certifications have already been received by our employees in partnerships with Microsoft, Amazon Web Services and Cisco. Already 1,800 employees have committed to an up-skilling or retraining program. The initial results of this transformation are already visible. We have a road map that started in 2023 as part of the Lead of the future strategic plan. We are pursuing our objectives, and we want to stabilize our growth and sustain our growth from 2025 onwards. I am more motivated than ever to help Orange business drive the digital transformation of France and Europe. We have every thing we need to do this with innovation and trust as our key drivers. We will continue to roll out our plan and seize all market opportunities. We will continue to take care of each supplier in our ecosystem from employees to customers because they are the ones, who will allow us to go faster, higher and further. I thank you, and to conclude, let's watch a video about the expertise of Orange Cyberdefense. [Presentation]

Thank you, Aliette, for this very energetic presentation. I'm sure we now understand what's end-to-end stocking management is. Now dear shareholders, before we turn to the vote, I wanted to answer any of the questions that you have sent us. Christel Heydemann and the members of the Board are present to answer any of your questions. To facilitate our debate, I ask you to make short questions and would like you to keep to no more than 2 questions each. Before I begin, I'd like to remind you that we've have a dedicated stand to answer commercial, technical and after sales service questions in the reception hall of the [indiscernible]. Please liaise with our Orange teams, who are on hand to answer your questions, for any of you, of course, who might have any problems.

We'll start with the first question.

Good afternoon, [indiscernible], I live in [indiscernible]. I have a question regarding the Olympic Games. Orange is a premium partner and the official partner of the Olympic and Paralympic Games. I have a question regarding your preparation. So how did you prepare in order to be ready to face the enormous scale of the Olympic games worldwide. Thank you.

Thank you for this question. Well, this is a project that we've been working on since Paris was considered as a possible host city. We have now over 1,000 employees fully dedicated to the Olympic games. But for a few years now, we have been scaling up. This is an unprecedented challenge, of course, because it is as if we were bringing together, at the same time, 900 sporting competitions at the same time. We have 120 official sites to connect with 4 billion TV viewers. So we are deploying networks and this is a source of pride for us, of course, as well as for our employees and everyone involved because this is a perfect way to show our expertise, our knowledge of the expertise of our technicians and experts. So we have to go up to the last mile or the last meter to make sure that referees on the football pitch or the basketball pitch can actually do the work properly. Everything will be feasible, everything will be measured, and we are extremely proud. We still have 55 days ahead of us before the opening ceremony. And I also wanted to say that we have carried out many test events. Orange is one of the partners, but there are many others. So we are working with the relevant authorities, with the Paris 2024 Organization Committee, and we are now proceeding with our test and rehearsals. We are working with [indiscernible], [indiscernible], Head of Brand and Communications, [indiscernible], the audit [indiscernible]. We have worked on and looked into the organization in place and ready to make sure that everything was set up and ready. So we are still working on this. We are still getting ready. There are 1,000 employees working specifically on this, but many others will make sure that all visitors, all people coming to city games will be served when it comes to connectivity.

Question #4.

[indiscernible] seem to be very happy with you client service. But on [indiscernible], ranking is only 1.2 [indiscernible] ranking is 1.2. Competitors have over 4 [indiscernible]. So how will you conquer new customers when you can't keep an appointment? And why you sound so satisfied?

We are satisfied, but not 100% satisfied. Well...

1.2, I didn't make it up. It's not just a failure. It's a client -- its the customer services failure.

Well, we're not saying that 100% of our customers are satisfied. We are still working on this. Your specific events and the various indicators and [indiscernible] because we are talking about Orange France that decided to set up a dedicated organization. We know that we still need to work on a few things to improve. And we know also, however, that for the 13th consecutive year, our network has been considered and assessed as the best network in France. So of course, we are not perfect and your example shows this, but we keep improving every year failure is a failure, but we -- it is also a driver to improve and we continue to work with our suppliers to improve things. And when it comes to fiber connection for millions of clients, in 2023, we had thousands of additional clients -- is something that is extremely demanding. So we are implementing many indicators. You may not be satisfied with my answer, but when you look at the net promoters, which is the indicator that is looked at in the industry, we have the best score on the market. And the customers are loyal to Orange. Unfortunately, the example you gave is not the one that we would like to hear in this instance but we keep working on this. So of course, we are satisfied that we keep working to improve things.

Question #2.

So my question is as follows. I'm an employee of the group and I own shares as a result. How can you reconcile the increase in dividends in the future and investment into the necessary environmental transition?

Laurent talked about this. [indiscernible] what we do and the guidelines that we have implemented. When we work on our cash we keep in mind that we need to continue investing in our infrastructure. When it comes to fighting climate change, we are fighting to protect our infrastructure. We've invested on our fiber infrastructure, and this was a colossal investment. When it comes to environmental change, we know that these changes impact our digital infrastructure. When it comes to cutting our carbon footprint, we know that this is going to be a positive for the planet and for our performance. When we use a circular economy to reuse equipment. We go in the right direction when it comes to cutting our carbon emissions and improving our economic performance. So I think that environmental transition and investment capacity are go in the same direction. They go hand in hand. We've invested almost EUR 7 billion in capital per year. We still have a significant investment capacity. And we will continue to invest on our network. We will continue to invest to improve the coverage of our network, and we will shift to a low carbon energy, of course. [indiscernible] operating that we should not have an opposition between energy transition or environmental transition and investment. I think that we need to be more effective.

Perhaps you could repeat what you said during your presentation, what we've done on fiber is important.

Of course, decommissioning 2G and 3G as well as moving from copper to fiber will be very effective. Fiber uses less energy and will create less accidents, so we will need a fewer technicians to make repairs on our network. So this will make -- allow us to make some savings when it comes to maintenance.

Moving on to question #6.

[indiscernible], individual shareholder. I have an observation and a question. The observation is that this morning, you and your business service Orange colleagues with VivaTech to announce a new partnership. So I wanted to congratulate you on this. And wanted to ask you, what you wanted to do with these new [indiscernible] connected vehicles? And the question is that you've mentioned skills and talent on several occasions. What are you going to do in terms of training your staff at large?

This morning, Orange business made some announcements, but we've been partners of Software Republic for several years already. Software Republic was made at the initiative of [indiscernible], but there are plenty of other activities. VivaTech also is another example of our start-ups are present as well this week. So about the Software Republic last week, we talked about the future. We are looking into the security of connected or smart vehicles when we talk about our -- this segment. And we are working with the biggest, the largest automobile construction industry around the world. Orange as a whole as a group is investing a lot on training and we have mapped all the jobs and positions to try and understand what will be the jobs and skills absolutely necessary for our success in the future. We're talking about the long term here, not the short term. So we decided to launch this program. Aliette talked about this. We are looking into certifications and retraining or reskilling. And this is for all employees. So we offer various training programs and some of them are mandatory because they cover the essential concepts to protect our companies, so we talk about compliance and cybersecurity. And then we have some more specific training programs, and we work on data, AI as well. And for managers, we have training courses for acquiring soft skills. So we are investing a lot on training courses in France, but abroad as well. We are still working on the workforce planning to try and identify the future major challenges because when we do the migration from the copper to a fiber network, we need other different skills, so this is going to impact the technicians and salespeople in our shops. So we will all need to be trained to AI in order to understand this technology.

Thank you. Question #4.

Thank you for giving the floor to individual shareholders. I have a question on shareholder's club. I was surprised to see that you had launched a premium shareholder club. So in order to belong to that club, you need to own 1,500 shares and invested EUR 15,000 in order to take part in some activities. So I would like to know more about the reasons that led you to create this distinction between shareholders because the majority of French-listed companies have a list of shareholders that is simple, the way we knew it before this way, all shareholders, they can actually benefit from the offers offered by the company. So about this premium club, can you tell me more about this? Can you tell me, if you've noticed that more shareholders have invested more? I would really like to know why you decided to change this to make this discrepancy?

Well, I can tell you that the objective is not to discriminate any one, of course, because we decided to maintain the individual shareholder club, which is accessible to any shareholder, even if they own only one share. I am not an expert, but I think that the teams are working on this wanted to bring together a certain number of shares. This is quite recent. So we can't draw any specific conclusion as of now. But of course, we will collect the feedback from the shareholders -- to the shareholders, who have a sufficient number of shares to belong to this new club and the feedback from the other shareholders. But let me reassure you, we still have the individual shareholder club and you will still have the opportunity to belong to this club, if you have only -- even only one share, you will have access to news, videos, and you will also have the opportunity to talk with the teams in charge of the club.

Thank you, Christel. Question #6.

Paula [indiscernible]. I'm a shareholder as well, an employee. Do you have an estimate of financial -- potential financial gains from the Olympic games?

Well the objective is not to have any short-term financial gain, of course. It is first and foremost, a source of pride for our employees and for us. Of course, there will be some gains because some countries and companies need some more connectivity to cover the Olympic games. Of course, this also involves some expenses because we are dedicating 1,000 employees to this. So the objective is not specifically profitability. We haven't set out any specific objective in these terms. But we will take stock of the situation afterwards. I think that contributing to the Olympic Games contributes to the brand image of the group, which is important.

Thank you, Christel. Question #2.

[indiscernible], employee shareholder. Madam Heydemann, I wanted to know from you what you think about the 15,000 employees, who signed the petition to ask for the reopening of the NAO because 9 out of 10 employees will not benefit from any increase in their wages, while inflation is increasing more than ever.

Well, of course, in the current situation with inflation in all geographies, where we operate. I understand that your question was about France, but this is a topic that is true for all employees in the group. When we are negotiating salary increases, we do so country by country. We had a round of negotiations in France. And unfortunately, we did not reach any agreement this year. In the NAO context, we reached an agreement last year, but not this year. So this was a unilateral decision. We have a 3% -- budget of 3% salary increase overall. And it is not true when you say that 9 out of 10 employees will not benefit from any salary increase. This is not true. We decided to concentrate on the lowest salaries when granting salary increases. So of course, there was no overall salary increase. But with this 3% budget, we cannot actually grant the salary increase to 100% of our employees. I hear you, I hear your request, we can reopen negotiations. And I'm delighted that we managed to find an agreement in the recent weeks regarding incentives. 2 months have passed since the end of negotiations, and we will not reopen negotiations now. So what you say is not true. We have granted some salary increases and inflation for 2024 in France are forecasted to reach 2.5%.

Thank you, Christel. Question #1.

I'm an individual shareholder, and I wanted to know why despite all your nice words and speeches, you're very positive attitude, why are shares not increasing in price. They are still around EUR 9 to EUR 10. I bought my shares when France Telecom was privatized. And I think at the time I bought them for EUR 50 per share, so I decided to keep them in order to make money, when I was older, but I'm not sure it's ever going to happen, unless I live until I'm 150 years old. So why is this? I think that I read somewhere that the fact that you set up Orange bank had undermined your balance sheet. So what about the future and your partnership with BNP? I know that you can't read the future, but I would like to have your insights.

Well, thank you for your question. We've talked about this often and we talk about this often with the Board of Directors. Unfortunately, this is parts and parcel of the telecom industry in Europe. We're not the only ones in this position. Out of 21 financial analysts, over 80%, I would say, even close to 90% of them recommends to buy Orange shares. However, it is true, in Europe, the industry is very fragmented. Investors see that returns on investments are low because we are investing in infrastructure. And because of the fragment nature of the market. So you can be a pessimist or an optimist. Of course, there is still a lot of work ahead of us. We are working on European-wide challenges. So we are consolidating the Spanish market with MASMOVIL. This will create value. And the share price is different from its yield. The value of the share also depends on its yield. Now I can't read the future, as you said. So I'm just repeating what I've heard, we should reach EUR 13 on average for a share. It's far from the EUR 50 that you mentioned, but we are working on this.

Thank you, Christel. Question #3.

In your presentation, and that's sort of echo what you just said a second ago, you said that there were several blocks, the U.S., china, Europe. In other words, the market was fragmented. So what you do at Orange to open to consolidation that would improve the profitability of [indiscernible] operator? And also, if I remember correctly, what you said at the beginning of Mr. Aschenbroich's presentation to make people pay the right price for the services rendered by operators. I'm thinking of the [indiscernible]. Of course, they use our infrastructure, and they may not be paying as much as they should for the services that are being rendered. That was my first question. My second question would be regarding the asset that you just created with Orange Spain. Orange Spain, you said something that I thought was important. And I'd like you to clarify, there's been a deconsolidation from an accounting perspective of the results of Orange Spain with Mass Orange. What does that change compared to a Mass Orange that would continue to be fully integrated within Orange? What does it change in terms of access to results and access to the kind of business performance developments that we expect from this? And one last thing. You talked about operators, let's not think about Deutsche Telekom. The equity is not at all the same. It's much higher for Deutsche Telekom. Why this difference? And you talked about yield, yes, and yield is a function of the share price. And it's high because the share price is low. Couldn't you put in place something that [indiscernible] have done in the past. If you are an individual owner churn, only, you could have your dividend increased by 10%. That's a possibility, isn't it?

The first question regarding the real value of networks in the digital ecosystem and the question of having the various actors and stakeholders paying when they use this these networks is what we call the fair share. We're talking about in YouTube, Meta, Tiktok, Amazon and Netflix. They use up to 80% of our network when we talk about traffic. And we don't make any money from this. On the other hand, we have to invest in our network to support the increase in traffic that they generate we have to invest some capital because of them, but we have no return on investment for this specifically. So this is the heart of the matter. This is something that we are talking about with the EU. This was also raised by [indiscernible] report to the European Commission. This topic has led to a lot of debate because the objective is not to increase the taxation, but rather to rebalance the dynamic between digital actors and platforms. This situation is also present in the U.S., in South Korea. So it's not just in France or in Europe. But I think that this topic will continue to be present, ever more so with AI. It is maybe too early to say, but I think that generative AI will make this topic even more relevant. So we are talking about this with Telecom Italia, Deutsche Telekom, with all operators in Europe and in the U.S. So you talked about the valorization of Deutsche Telekom. Well, let me tell you that over 90% of the value of the shares of Deutsche Telekom is linked to the operations in the U.S. with T-Mobile. So if we look at the value of telecom operators in Europe, we are all in the same situation. And when we look at the performance of Deutsche Telekom versus Orange in Europe, we are much more profitable when it comes to return on investments in Europe. But Deutsche Telekom are lucky enough to be present in the U.S. as well, but this leads to other peculiarities, but we're not here to talk about them. Now the second question about the deconsolidation of our activities in Spain, now we own 50% of an asset that is twice as big. So it is a deconsolidation in the accounts. So this has led to a large change, of course. But from an economic point of view, we have retained the value. Laurent Martinez is part of the Board of Directors of this company in Spain, and we'll continue to publish the Spanish results twice a year at least, maybe not every quarter, but at least twice a year. We want to give you more visibility. In Spain, we have the opportunity to take back control of these activities. So we could reconsolidate these activities in the future in Spain. I said could because we need to see what happens. In this context, we will continue to share the information on the Spanish activities. Now about dividends. I'm not sure, maybe you can take over?