Segment information | NOTE 1 Segment information 1.1 Segment revenues International Elimination Orange Carriers telecom consolidated Africa & & Shared Total telecom activities / financial (in millions of euros) France Spain Europe (1) Middle-East Enterprise (2) Services (3) Elimination activities Orange Bank bank statements December 31, 2018 Revenue( 4) 18,211 5,349 5,687 5,190 7,292 1,534 (1,879) 41,384 — (3) 41,381 Convergence services 4,458 2,143 467 — — — — 7,068 — — 7,068 Mobile services only 2,348 1,215 2,194 3,809 743 — (37) 10,272 — — 10,272 Fixed services only 4,168 496 697 435 3,997 — (189) 9,604 — — 9,604 IT & integration services — 1 158 21 2,312 — (141) 2,351 — (2) 2,349 Wholesale 5,342 810 1,150 811 35 1,150 (1,367) 7,931 — — 7,931 Equipment sales 1,410 684 868 85 205 — (7) 3,245 — — 3,245 Other revenue 485 — 153 29 — 384 (138) 913 — (1) 912 External 17,615 5,299 5,601 4,980 6,914 972 — 41,381 — — 41,381 Inter-operating segments 596 50 86 210 378 562 (1,879) 3 — (3) — December 31, 2017 Revenue( 4) 18,046 5,231 5,578 5,030 7,251 1,651 (1,926) 40,861 — (2) 40,859 Convergence services 4,045 2,078 305 — — — (1) 6,427 — — 6,427 Mobile services only 2,409 1,229 2,254 3,600 751 — (41) 10,202 — — 10,202 Fixed services only 4,344 501 757 431 4,152 — (191) 9,994 — — 9,994 IT & integration services — — 129 7 2,092 — (150) 2,078 — (1) 2,077 Wholesale 5,388 754 1,133 894 32 1,275 (1,411) 8,065 — — 8,065 Equipment sales 1,386 669 840 66 224 — — 3,185 — — 3,185 Other revenue 474 — 160 32 — 376 (132) 910 — (1) 909 External 17,463 5,177 5,496 4,779 6,860 1,084 — 40,859 — — 40,859 Inter-operating segments 583 54 82 251 391 567 (1,926) 2 — (2) — December 31, 2016 Revenue( 4) 17,896 4,909 5,482 5,245 7,346 1,812 (1,982) 40,708 — — 40,708 Convergence services 3,598 1,855 193 — — — — 5,646 — — 5,646 Mobile services only 2,612 1,260 2,332 3,686 775 — (51) 10,614 — — 10,614 Fixed services only 4,567 475 803 437 4,304 — (233) 10,353 — — 10,353 IT & integration services — — 107 7 2,067 — (131) 2,050 — — 2,050 Wholesale 5,294 676 1,079 1,026 32 1,431 (1,435) 8,103 — — 8,103 Equipment sales 1,340 643 789 81 168 — (1) 3,020 — — 3,020 Other revenue 485 — 179 8 — 381 (131) 922 — — 922 External 17,322 4,874 5,417 4,971 6,926 1,198 — 40,708 — — 40,708 Inter-operating segments 574 35 65 274 420 614 (1,982) — — — — (1) See Note 1.7 (2) Including, in 2018, revenue of 5 207 million euros in France, 21 million euros in Spain, 665 million euros in other European countries and 1,399 million euros in other countries. Including, in 2017, revenue of 5,235 million euros in France, 34 million euros in Spain, 654 million euros in other European countries and 1,328 million euros in other countries. Including, in 2016, revenue of 5,303 million euros in France, 37 million euros in Spain, 688 million euros in other European countries and 1,318 million euros in other countries. (3) Including revenue of 1,412 million euros in France in 2018, 1,530 million euros in 2017 and 1,711 million euros in 2016. (4) The description of product lines is presented in Note 4.1. 1.2 Segment revenue to segment reported EBITDA International Elimination Orange Carriers Elimination Total telecom consolidated Africa & & Shared telecom telecom Orange activites Presentation financial (in millions of euros) France Spain Europe Middle-East Enterprise Services activities activities Bank (2) / bank Total adjustments (3) statements December 31, 2018 Revenue 18,211 5,349 5,687 5,190 7,292 1,534 (1,879) 41,384 — (3) 41,381 — 41,381 External purchases (7,167) (3,204) (3,412) (2,521) (3,696) (2,469) 3,990 (18,479) (87) 3 (18,563) — (18,563) Other operating income 1,377 190 175 88 148 2,226 (3,468) 736 44 (20) 760 — 760 Other operating expenses (535) (211) (168) (231) (661) (35) 1,357 (484) (33) 21 (496) (9) (505) Labor expenses (3,833) (263) (681) (468) (1,718) (1,235) — (8,198) (70) — (8,268) (806) (9,074) Operating taxes and levies (977) (161) (93) (391) (120) (66) — (1,808) (1) — (1,809) (31) (1,840) Gains (losses) on disposal — — — — — — — — — — — 17 17 Restructuring and integration costs — — — — — — — — — — — (199) (199) Adjusted EBITDA (1) 7,076 1,700 1,508 1,667 1,245 (45) — 13,151 (147) 1 13,005 (1,028) Significant litigations — (31) — — — (2) — (33) — — (33) 33 — Specific labour expenses (614) — — — (68) (129) — (811) (1) — (812) 812 — Investments and businesses portfolio review — — — — — 17 — 17 — — 17 (17) — Restructuring and integration costs (114) (9) (6) (12) (24) (35) — (200) — — (200) 200 — Reported EBITDA (1) 6,348 1,660 1,502 1,655 1,153 (194) — 12,124 (148) 1 11,977 — 11,977 December 31, 2017 Revenue 18,046 5,231 5,578 5,030 7,251 1,651 (1,926) 40,861 — (2) 40,859 — 40,859 External purchases (7,123) (3,157) (3,368) (2,444) (3,735) (2,771) 4,278 (18,320) (63) 2 (18,381) — (18,381) Other operating income 1,460 110 173 79 169 2,366 (3,741) 616 78 (7) 687 14 701 Other operating expenses (553) (202) (149) (209) (652) (52) 1,389 (428) (14) 8 (434) (290) (724) Labor expenses (3,987) (255) (690) (426) (1,588) (1,192) — (8,138) (62) — (8,200) (374) (8,574) Operating taxes and levies (965) (160) (88) (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) 6,878 1,567 1,456 1,612 1,306 (78) — 12,741 (62) 1 12,680 (817) Significant litigations (115) — — — — (156) — (271) — — (271) 271 — Specific labour expenses (307) — 1 — (15) (53) — (374) — — (374) 374 — Investments and businesses portfolio review — — (1) — — (4) — (5) — — (5) 5 — Restructuring and integration costs (12) (4) (39) (21) (33) (58) — (167) — — (167) 167 — Reported EBITDA (1) 6,444 1,563 1,417 1,591 1,258 (349) — 11,924 (62) 1 11,863 — 11,863 December 31, 2016 Revenue 17,896 4,909 5,482 5,245 7,346 1,812 (1,982) 40,708 — — 40,708 — 40,708 External purchases (7,023) (3,049) (3,200) (2,575) (3,748) (2,943) 4,368 (18,170) (16) — (18,186) — (18,186) Other operating income 1,501 127 145 124 173 2,444 (3,802) 712 20 — 732 7 739 Other operating expenses (525) (203) (119) (270) (687) (67) 1,416 (455) (2) — (457) (89) (546) Labor expenses (4,149) (249) (653) (460) (1,608) (1,207) — (8,326) (14) — (8,340) (526) (8,866) Operating taxes and levies (971) (184) (97) (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) 6,729 1,351 1,558 1,658 1,336 (56) — 12,576 (12) — 12,564 (963) Significant litigations — — — — — 10 — 10 — — 10 (10) — Specific labour expenses (435) — — — (17) (73) — (525) — — (525) 525 — Investments and businesses portfolio review — — — 16 47 (4) — 59 — — 59 (59) — Restructuring and integration costs (166) (127) (15) (36) (74) (81) — (499) — — (499) 499 — Other special items — — — — — (8) — (8) — — (8) 8 — Reported EBITDA (1) 6,128 1,224 1,543 1,638 1,292 (212) — 11,613 (12) — 11,601 — 11,601 (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 43 million euros in 2018. The cost of risk is included in other operating expenses and amounts to (7) million euros in 2018. Orange Bank's net banking income is recognized in other operating income and amounts to 73 million euros in 2017. The cost of risk is included in other operating expenses and amounts to (6) million euros in 2017. Orange Bank's net banking income is recognized in other operating income and amounts to 21 million euros in 2016. The cost of risk is included in other operating expenses and amounts to (2) million euros in 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 International Eliminations Orange Carriers Elimination Total telecom consolidated Africa & & Shared telecom telecom Orange activities / financial (in millions of euros) France Spain Europe Middle-East Enterprise (1) Services (2) activities activities Bank bank statements December 31, 2018 Reported EBITDA 6,348 1,660 1,502 1,655 1,153 (194) — 12,124 (148) 1 11,977 Depreciation and amortization (3,148) (1,105) (1,164) (906) (387) (316) — (7,026) (21) — (7,047) Reclassification of cumulative translation adjustment from liquidated entities — — — — — 1 — 1 — — 1 Impairment of goodwill — — — (56) — — — (56) — — (56) Impairment of fixed assets (2) — 1 (46) — (2) — (49) — — (49) Share of profits (losses) of associates and joint ventures — — — 12 (1) (8) — 3 — — 3 Operating income 3,198 555 339 659 765 (519) — 4,997 (169) 1 4,829 December 31, 2017 Reported EBITDA 6,444 1,563 1,417 1,591 1,258 (349) — 11,924 (62) 1 11,863 Depreciation and amortization (3,073) (1,008) (1,157) (902) (371) (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) (1) — — — (20) — — (20) Impairment of fixed assets (3) — (1) (180) 1 (7) — (190) — — (190) Share of profits (losses) of associates and joint ventures — — — 14 1 (9) — 6 — — 6 Operating income 3,368 555 240 522 889 (704) — 4,870 (93) 1 4,778 December 31, 2016 Reported EBITDA 6,128 1,224 1,543 1,638 1,292 (212) — 11,613 (12) — 11,601 Depreciation and amortization (2,823) (946) (1,169) (1,056) (376) (358) — (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 — — (549) (265) — — — (814) — — (814) Impairment of fixed assets (1) — — (204) (1) (1) — (207) — — (207) Share of profits (losses) of associates and joint ventures — — 6 (45) — (7) — (46) — — (46) Operating income 3,304 278 (169) 68 916 (565) — 3,832 85 — 3,917 December 31, 2018 Investments in property, plant and equipment and intangible assets Capex (3) 3,656 1,120 953 1,008 353 316 — 7,406 36 — 7,442 Telecommunications licenses (1) 149 10 42 — — — 200 — — 200 Finance leases 1 70 32 2 31 — — 136 — — 136 Total investments (4) 3,656 1,339 995 1,052 384 316 — 7,742 36 — 7,778 December 31, 2017 Investments in property, plant and equipment and intangible assets Capex (3) 3,451 1,115 897 1,021 382 282 — 7,148 61 — 7,209 Telecommunications licenses 11 10 — 297 — — — 318 — — 318 Finance leases 1 4 11 1 24 2 — 43 — — 43 Total investments (5) 3,463 1,129 908 1,319 406 284 — 7,509 61 — 7,570 December 31, 2016 Investments in property, plant and equipment and intangible assets Capex (3) 3,421 1,086 874 962 336 277 — 6,956 15 — 6,971 Telecommunications licenses — 51 728 742 — — — 1,521 — — 1,521 Finance leases — 4 3 4 24 56 — 91 — — 91 Total investments (6) 3,421 1,141 1,605 1,708 360 333 — 8,568 15 — 8,583 (1) Including investments in tangible and intangible assets for 275 million euros in France in 2018, 285 million euros in 2017 and 248 million euros in 2016. (2) Including investments in tangible and intangible assets for 312 million euros in France in 2018, 280 million euros in 2017 and 329 million euros in 2016. (3) CAPEX related to tangible and intangible investments except telecommunications 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 1,895 million euros for other intangible assets and 5,883 million euros for tangible assets. (5) Including 1,893 million euros for other intangible assets and 5,677 million euros for tangible assets. (6) 1.4 Segment assets Eliminations telecom International activities Eliminations Orange Carriers and Total telecom consolidated Africa & & Shared unallocated telecom Orange activities / financial (in millions of euros) France Spain Europe Middle-East Enterprise (1) Services (2) items activities Bank bank statements December 31, 2018 Goodwill 14,364 6,840 2,581 1,542 1,830 17 — 27,174 — — 27,174 Other intangible assets 3,921 1,778 2,015 2,106 388 3,780 1 13,989 84 — 14,073 Property, plant and equipment 14,306 3,730 4,150 3,443 540 1,519 — 27,688 5 — 27,693 Interests in associates and joint ventures — 1 4 82 — 17 — 104 — — 104 Non-current assets included in the calculation of net financial debt — — — — — — 816 816 — — 816 Other 11 17 15 23 23 19 3,123 (3) 3,231 1,637 (4) (27) 4,841 Total non-current assets 32,602 12,366 8,765 7,196 2,781 5,352 3,940 73,002 1,726 (27) 74,701 Inventories 505 79 171 82 49 79 — 965 — — 965 Trade receivables 1,506 699 1,227 761 821 946 (631) 5,329 — (34) 5,295 Other customer contract assets 443 140 363 8 212 — — 1,166 — — 1,166 Prepaid expenses 68 241 35 89 71 82 (17) 569 2 — 571 Current assets included in the calculation of net financial debt — — — — — — 7,886 7,886 — — 7,886 Other 776 60 75 811 174 374 51 2,321 3,687 (5) — 6,008 Total current assets 3,298 1,219 1,871 1,751 1,327 1,481 7,289 18,236 3,689 (34) 21,891 Assets held for sale — — — — — — — — — — — Total assets 35,900 13,585 10,636 8,947 4,108 6,833 11,229 91,238 5,415 (61) 96,592 December 31, 2017 Goodwill 14,364 6,818 2,589 1,629 1,493 18 — 26,911 — — 26,911 Other intangible assets 4,099 1,742 2,204 2,160 342 3,720 1 14,268 71 — 14,339 Property, plant and equipment 13,637 3,542 4,236 3,193 479 1,575 — 26,662 3 — 26,665 Interests in associates and joint ventures — 1 4 70 1 1 — 77 — — 77 Non-current assets included in the calculation of net financial debt — — — — — — 895 895 — — 895 Other 4 17 16 13 22 18 3,166 (3) 3,256 1,496 (4) (27) 4,725 Total non-current assets 32,104 12,120 9,049 7,065 2,337 5,332 4,062 72,069 1,570 (27) 73,612 Inventories 402 79 149 78 45 74 — 827 — — 827 Trade receivables 1,590 686 1,143 690 807 881 (613) 5,184 — (9) 5,175 Other customer contract assets 451 132 411 — 210 — — 1,204 — — 1,204 Prepaid expenses 76 152 37 67 48 93 (19) 454 1 — 455 Current assets included in the calculation of net financial debt — — — — — — 8,014 8,014 — — 8,014 Other 828 64 45 757 165 268 146 2,273 3,941 (5) (152) 6,062 Total current assets 3,347 1,113 1,785 1,592 1,275 1,316 7,528 17,956 3,942 (161) 21,737 Assets held for sale — — — — — — — — — — — Total assets 35,451 13,233 10,834 8,657 3,612 6,648 11,590 90,025 5,512 (188) 95,349 December 31, 2016 Goodwill 14,364 6,818 2,576 1,709 1,497 15 — 26,979 — — 26,979 Other intangible assets 4,269 1,861 2,332 2,103 327 3,694 — 14,586 16 — 14,602 Property, plant and equipment 13,054 3,313 4,124 3,270 487 1,662 — 25,910 2 — 25,912 Interests in associates and joint ventures — 1 6 111 1 11 — 130 — — 130 Non-current assets included in the calculation of net financial debt — — — — — — 980 980 — — 980 Other 4 16 15 14 21 18 4,156 (3) 4,244 1,553 (4) (27) 5,770 Total non-current assets 31,691 12,009 9,053 7,207 2,333 5,400 5,136 72,829 1,571 (27) 74,373 Inventories 433 73 132 84 50 49 (2) 819 — — 819 Trade receivables 1,515 729 911 701 784 864 (540) 4,964 — — 4,964 Other customer contract assets 475 146 497 — 217 — — 1,335 — — 1,335 Prepaid expenses 70 92 41 66 43 95 (14) 393 1 — 394 Current assets included in the calculation of net financial debt — — — — — — 7,899 7,899 — — 7,899 Other 532 13 21 638 151 384 437 2,176 3,451 (5) — 5,627 Total current assets 3,025 1,053 1,602 1,489 1,245 1,392 7,780 17,586 3,452 — 21,038 Assets held for sale — — — — — — — — — — — Total assets 34,716 13,062 10,655 8,696 3,578 6,792 12,916 90,415 5,023 (27) 95,411 (1) Including in 2018 tangible and intangible assets for 632 million euros in France, 565 million euros in 2017 and 541 million euros in 2016. (2) Including in 2018 tangible and intangible assets for 2,151 million euros in France, 2,144 million euros in 2017 and 2,203 million euros in 2016. Intangible assets also include the Orange brand for 3,133 million euros. (3) Including in 2018, 659 million euros of BT shares, 814 million euros in 2017 and 1,709 million euros in 2016 (see Note 11.7). (4) Including in 2018, 1,617 million euros of non-current financial assets related to Orange Bank activities, 1,464 million euros in 2017 and 1,523 million euros in 2016 (see Note 15.1.1). (5) Including in 2018, 3,075 million euros of current financial assets related to Orange Bank activities, 3,275 million euros in 2017 and 3,336 million euros in 2016 (see Note 15.1.1). 1.5 Segment equity and liabilities Eliminations telecom International activities Eliminations Orange Carriers and Total telecom consolidated Africa & & Shared unallocated Telecom Orange activities / financial (in millions of euros) France Spain Europe Middle-East Enterprise Services items activities Bank bank statements June 30, 2018 Equity — — — — — — 33,151 33,151 98 — 33,249 Fixed assets payables 48 119 291 154 — — — 612 — — 612 Non-current employee benefits 1,726 11 33 64 264 717 — 2,815 8 — 2,823 Non-current liabilities included in the calculation of net financial debt — — — — — — 27,461 27,461 — — 27,461 Other 635 126 243 59 46 180 791 2,080 98 (1) (27) 2,151 Total non-current liabilities 2,409 256 567 277 310 897 28,252 32,968 106 (27) 33,047 Fixed assets payables 1,116 598 398 528 58 138 (1) 2,835 — — 2,835 Trade payables 2,598 1,055 926 1,081 689 917 (631) 6,635 135 (34) 6,736 Customer contracts liabilities 1,091 66 322 127 283 129 (16) 2,002 — — 2,002 Current employee benefits 1,307 38 102 68 398 471 — 2,384 8 — 2,392 Deferred income 2 — 3 44 2 7 — 58 — — 58 Current liabilities included in the calculation of net financial debt — — — — — — 7,403 7,403 — — 7,403 Other 846 148 253 1,069 273 833 381 3,803 5,067 (2) — 8,870 Total current liabilities 6,960 1,905 2,004 2,917 1,703 2,495 7,136 25,120 5,210 (34) 30,296 Liabilities related to assets held for sale — — — — — — — — — — — Total equity and liabilities 9,369 2,161 2,571 3,194 2,013 3,392 68,539 91,239 5,414 (61) 96,592 December 31, 2017 Equity — — — — — — 33,285 33,285 227 — 33,512 Fixed assets payables 75 — 327 208 — — — 610 — — 610 Non-current employee benefits 1,601 5 33 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 663 134 263 50 31 218 836 2,195 107 (1) (27) 2,275 Total non-current liabilities 2,339 139 623 335 290 911 28,057 32,694 113 (27) 32,780 Fixed assets payables 1,438 532 392 530 52 102 (1) 3,045 1 — 3,046 Trade payables 2,487 985 843 1,072 694 977 (614) 6,444 92 (9) 6,527 Customer contracts liabilities 1,162 78 280 130 271 120 (20) 2,021 — — 2,021 Current employee benefits 1,451 38 109 69 348 426 — 2,441 7 — 2,448 Deferred income 3 — 3 87 — 5 (22) 76 — — 76 Current liabilities included in the calculation of net financial debt — — — — — — 6,216 6,216 — — 6,216 Other 699 126 467 905 252 897 457 3,803 5,072 (2) (152) 8,723 Total current liabilities 7,240 1,759 2,094 2,793 1,617 2,527 6,016 24,046 5,172 (161) 29,057 Liabilities related to assets held for sale — — — — — — — — — — — Total equity and liabilities 9,579 1,898 2,717 3,128 1,907 3,438 67,358 90,025 5,512 (188) 95,349 December 31, 2016 Equity — — — — — — 33,560 33,560 285 — 33,845 Fixed assets payables 322 — 363 221 — — 1 907 — — 907 Non-current employee benefits 1,895 — 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 695 151 194 56 33 177 901 2,207 102 (1) (27) 2,282 Total non-current liabilities 2,912 151 591 347 345 890 30,321 35,557 108 (27) 35,638 Fixed assets payables 1,293 539 393 418 46 104 1 2,794 6 — 2,800 Trade payables 2,355 886 722 1,073 665 1,008 (541) 6,168 46 — 6,214 Customer contracts liabilities 1,188 76 275 142 293 110 (13) 2,071 — — 2,071 Current employee benefits 1,369 36 98 68 348 342 — 2,261 5 — 2,266 Deferred income 5 — 3 93 — 6 (23) 84 — — 84 Current liabilities included in the calculation of net financial debt — — — — — — 4,666 4,666 — — 4,666 Other 429 103 381 828 235 791 487 3,254 4,573 (2) — 7,827 Total current liabilities 6,639 1,640 1,872 2,622 1,587 2,361 4,577 21,298 4,630 — 25,928 Liabilities related to assets held for sale — — — — — — — — — — — Total equity and liabilities 9,551 1,791 2,463 2,969 1,932 3,251 68,458 90,415 5,023 (27) 95,411 (1) Including in 2018, 90 million euros of non-current financial liabilities, 100 million euros in 2017 and 95 million euros in 2016. (2) Including in 2018, 4,835 million euros of current financial liabilities related to Orange Bank activities (see Note 15.1). Including in 2017, 4,941 million euros of current financial liabilities related to Orange Bank activities Including in 2016, 4,507 million euros of current financial liabilities related to Orange Bank activities. 1.6 Simplified statement of cash flows on telecommunication 2018 Eliminations Orange telecom consolidated Telecom activities / financial (in millions of euros) activities Orange Bank Orange Bank statement Operating activities Consolidated net income 2,326 (168) — 2,158 Non-monetary items and reclassified items for presentation 11,457 40 — 11,497 Changes in working capital Decrease (increase) in inventories, gross (152) — — (152) Decrease (increase) in trade receivables, gross (122) — 25 (97) Increase (decrease) in trade payables 158 44 (25) 177 Changes in other customer contract assets and liabilities 12 — — 12 Changes in other assets and liabilities (95) (81) — (176) Other net cash out Operating taxes and levies paid (1,776) (1) — (1,777) Dividends received 51 — — 51 Interest paid and interest rates effects on derivatives, net (1,259) — — (1,259) Income tax paid (928) — — (928) Net cash provided by operating activities (a) 9,672 (166) — 9,506 Investing activities Purchases (sales) of property, plant and equipment and intangible assets (7,655) (37) — (7,692) Cash paid for investment securities, net of cash acquired (284) — — (284) Investments in associates and joint ventures (6) — — (6) Others purchases of assets available for sale — — — — Purchases of equity securities measured at fair value (90) (14) — (104) Proceeds from sales of investment securities, net of cash transferred 110 — — 110 Decrease (increase) in securities and other financial assets (501) 77 (152) (576) Net cash used in investing activities (b) (8,426) 26 (152) (8,552) Financing activities Cash flows from financing activities Medium and long-term debt issuances 5,214 — — 5,214 Medium and long-term debt redemptions and repayments (4,095) — — (4,095) Increase (decrease) of bank overdrafts and short-term borrowings (251) 56 152 (43) Decrease (increase) of cash collateral deposits 203 5 — 208 Exchange rates effects on derivatives, net 7 — — 7 Other cash flows Coupon on subordinated notes (280) — — (280) Purchases of treasury shares - Orange Vision 2020 free share award plan (101) — — (101) Other proceeds (purchases) from treasury shares 3 — — 3 Capital increase (decrease) - non-controlling interests (87) (1) 155 (1) — 68 Changes in ownership interests with no gain / loss of control (6) — — (6) Dividends paid to owners of the parent company (1,860) — — (1,860) Dividends paid to non-controlling interests (246) — — (246) Net cash used in financing activities (c) (1,499) 216 152 (1,131) Cash and cash equivalents in the opening balance 5,333 477 — 5,810 Cash change in cash and cash equivalents (a) + (b) + (c) (253) 76 — (177) Effect of exchange rates changes on cash and cash equivalents and other non-monetary effects 1 — — 1 Cash and cash equivalents in the closing balance 5,081 553 — 5,634 (1) Of which 101 million euros in Orange Bank share capital invested by Orange. 2017 Eliminations Orange telecom consolidated Telecom activities/ financial (in millions of euros) activities Orange Bank Orange Bank statement Operating activities Consolidated net income 2,134 (94) — 2,040 Non-monetary items and reclassified items for presentation 11,474 38 — 11,512 Changes in working capital Decrease (increase) in inventories, gross (14) — — (14) Decrease (increase) in trade receivables, gross (271) — 9 (262) Increase (decrease) in trade payables 375 46 (9) 412 Changes in other customer contract assets and liabilities 112 — — 112 Changes in other assets and liabilities (120) 284 — 164 Other net cash out Operating taxes and levies paid (1,931) (3) — (1,934) Dividends received 55 — — 55 Interest paid and interest rates effects on derivatives, net (1,328) — (1,328) Income tax paid (584) 1 — (583) Net cash provided by operating activities (a) 9,902 272 — 10,174 Investing activities Purchases (sales) of property, plant and equipment and intangible assets (7,311) (67) — (7,378) Cash paid for investment securities, net of cash acquired (34) — — (34) Others purchases of assets available for sale (43) — — (43) Purchases of equity securities measured at fair value (7) — — (7) 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) Other proceeds (purchases) from treasury shares (4) — — (4) Capital increase (decrease) - non-controlling interests (66) (1) 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) Effect of exchange rates changes on cash and cash equivalents and other non-monetary effects (40) — — (40) Cash and cash equivalents in the closing balance 5,333 477 — 5,810 (1) Of which 65 million euros in Orange Bank share capital invested by Orange. 2016 Telecom Orange Eliminations Orange activities Bank telecom consoli- activities / dated Orange financial (in millions of euros) Bank statement Operating activities Consolidated net income 3,036 86 — 3,122 Non-monetary items and reclassified items for presentation 10,144 (99) — 10,045 Changes in working capital Decrease (increase) in inventories, gross (62) — — (62) Decrease (increase) in trade receivables, gross 113 — — 113 Increase (decrease) in trade payables 82 2 — 84 Changes in other customer contract assets and liabilities 66 — — 66 Changes in other assets and liabilities (507) (200) — (707) 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) 1 — (1,344) 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) Other proceeds (purchases) from treasury shares 2 — — 2 Capital increase (decrease) - owners of the parent company 113 — — 113 Capital increase (decrease) - non-controlling interests (104) (2) 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 Effect of 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) Related to Orange Bank cash acquired. (2) Of which 65 million euros in Orange Bank share capital invested by Orange. 1.7 Reconciliation from adjusted EBITDA to reported EBITDA The expenses relating to significant litigations correspond to the reassessment of the risk related to various disputes. 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 2018, these are mainly related to the effect of the three-year extension of the 2015 French part-time for seniors plans (see Note 6.2). The review of the investments and business portfolio in 2016 included the gains on disposal of Fime amounting to 49 million euros. 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. Changes in the presentation of segment information The new organization of the Executive Committee of Orange group, in place since May 2, 2018, has led the Group to re-examine the presentation of its segment information without however modifying the definition of operating segments and Cash Generating Units (CGUs). The 2017 and 2016 segment data presented reflect these changes. 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 establishements. The operating segments are: – France (Enterprise excluded); – Spain; – Poland, Belgium and Luxembourg, and each Central European countries (the Europe aggregate combines the operating segments of this area); – Sonatel subgroup (gathering Sonatel entities in Senegal, Orange Mali, Orange Bissau, Orange in Guinea and Orange in Sierra Leone), the Côte d'Ivoire subgroup (including Orange Côte d'Ivoire entities, Orange in Burkina Faso and Orange in Liberia) and each of the other countries in Africa and Middle-East (the Africa and Middle-East aggregate combines the operating segments of this area); – Enterprise; – The activities of International Carriers and Shared Services (IC&SS), which contain certain resources, mainly in the areas of networks and information systems, research and development and other shared Group activities, as well as the Orange brand; – Orange Bank. Accounting policies Segment information 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 relevant as it provides readers with the same management indicators as thos |