Orange Polska S.A.

Business and Financial Review • Mar 19, 2025

Current Report 4/2025 Orange Polska S.A., Warsaw, Poland 19 March 2025

Pursuant to Article 17(1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of Orange Polska S.A. hereby announces a new strategic plan for the years 2025 to 2028.

Orange Polska's new Lead the Futureplan to take value creation to next level

Orange Polska, the leading telecommunications provider in Poland, is today announcing Lead the Future, an ambitious new strategic plan designed to address the rapidly evolving demands of a digital and technology-driven future and take the Company's value creation to the next level.

Lead the Future follows the successful completion of the .Grow plan that put Orange Polska on a profitable, sustainable, commercially-driven path of growth. With this plan, Orange Polska will reinforce its market leadership built on trust, unmatched connectivity and integrated digital solutions.

Lead the Future will maintain Orange Polska's profitable growth trajectory and raise its efficiency to generate significantly increased cash flow and deliver sustainable value creation for shareholders. The plan is reflected in new ambitious medium-term financial targets and a policy of consistent dividends.

To achieve these aims, Orange Polska will intensify its proven value creation strategies as well as introduce important new initiatives. The Lead the Future plan is based on four strategic pillars:

• 1. GROW profitably Orange Polska will step up its proven value strategies, attract new customers and meet the increasing demand for digital solutions to achieve best-in-class profitable growth.
• 1. ENHANCE network Orange Polska will reinforce its superior networks and infrastructure to support commercial growth in a smart and efficient manner while boosting asset monetisation.
• 1. TRANSFORM & innovate Orange Polska will fundamentally transform the way it operates to provide an unmatched customer experience and deliver further efficiencies and cost savings.
• 1. EMPOWER people Orange Polska will develop new skills and an entrepreneurial mindset that will serve as catalysts for driving the plan's execution with true passion.

A long-term incentive scheme that is closely correlated with shareholder value accretion will align Company executives and senior managers with the interests of shareholders.

Liudmila Climoc, Chief Executive Officer, commented:

"Customers' needs, the competitive landscape, and the technologies that shape our industry are constantly changing and at an accelerating pace. Our ability to anticipate, adapt and respond to these challenges going forward will define our future success.

With this mind, we are today announcing our new Lead the Future strategic plan that will reinforce and extend our leadership positions, transform and future-proof our business and drive our returns."

In the coming years, the Polish market for information and communications services is forecast to grow as customers demand more and better connectivity and integrated solutions. As customers' first choice for telecommunications, Orange Polska is ideally positioned to exploit these trends.

Consumers demand a seamless experience and need to feel safe online. Orange Polska leads the market in connectivity, cybersecurity and convenience. By enriching the consumer offering with integrated services and by pursuing its proven convergent value strategies, Orange Polska will reinforce and extend these leading positions. With the help of AI-driven tools and new tailor-made products and services, Orange Polska also aims to gain new customers to create a new pool of future convergence growth.

Business customers are increasingly looking for a technology partner, which is reflected in a growing market for IT&IS services. Orange Polska will build on its successes in the market of large customers, driving more value with a new integrated operating model. Our integrated solutions will be progressively taken up by smaller customers as their digital needs develop.

Liudmila Climoc, Chief Executive Officer, added:

"Artificial intelligence is on everyone's lips. But at Orange Polska, AI is more than a buzzword, it is our working tool of today, helping us explore the full potential of our business. Going forward, AI will revolutionise our customers' experience and our ability to identify, personalise and fulfil their needs, leading to an increase in our revenues. AI will also transform the way that we operate our networks and operations and improve the quality of our services and our efficiency.

To take us into future, we are focused on nurturing an entrepreneurial culture, upskilling and reskilling our people as well as attracting and keeping the best talent.

Sustainable development has always been a core value for us, embedded in our DNA, and we will be guided by its principles in every aspect of the Lead the Future plan.

We aim to become Poland's best loved and most trusted provider of digital services as well as Poland's preferred employer. In this way, we will create value for all our stakeholders."

Jacek Kunicki, Chief Financial Officer, continued:

"Lead the Future marks a new growth story based on a solid, profitable foundation. We have already established a resilient growth model that withstood daunting macroeconomic headwinds and delivered over 40% total shareholder return over the period of our previous plan, in a combination of dividends and share price appreciation. With the Lead the Future plan, we will take profitable growth to the next level, paying even greater attention to the return metrics that drive shareholder value.

Goals	Guidance 2025-20281
EBITDAaL	Low-to-mid single-digit CAGR
eCapex/revenue	<14% average over period
Organic cash flow	At least PLN 1.2 billion in 2028
Dividend per share	PLN 0.53 as a floor for 2025-2028

Medium-term financial guidance

We are focused more than ever on cash generation and have included it in our guidance – an ambitious new commitment to deliver at least PLN 1.2 billion organic cash flow in 2028. Sustainable cash generation is the basis of shareholder value creation.

We will achieve this through sustainable EBITDAaL growth supported by efficient capital expenditure, focused on areas generating high returns.

¹ Excludes major non-organic changes to OPL structure and major claims and litigations; CAGR vs 2024

Commercial growth will be the key to unlocking value. This means leveraging our main growth engines of core telecom services and IT&IS that constitute the majority of our revenues and profits.

In parallel, we will intensify our transformation and efficiency initiatives to reduce our indirect cost ratio and expand our margins. AI will be a key enabler, supporting transformation across all elements of the business model.

As a result, EBITDAaL will grow at a low-to-mid single-digit CAGR rate over the plan period, faster than revenues.

Our investment plans will require expenditure comparable in size to 2024. They will prioritise the assets that support our commercial growth – specifically, our 5G and fibre networks. By improving our capex allocation, we will increase its productivity which will be visible in a decrease in our eCapex-to-revenue ratio. All these efforts, achieving higher EBITDAaL, improving capex allocation and increasing our cash flows, will result in the further growth of Orange Polska's Return on Capital Employed.

Finally, our financial ambitions are accompanied by our commitment to offer sustainable, progressive shareholder remuneration, with the PLN 0.53 dividend per share proposal for the fiscal year of 2024 set as a floor over the period of the plan."

Liudmila Climoc, Chief Executive Officer, concluded:

"With our Lead the Future strategic plan, Orange Polska is beginning an exciting new phase in its growth and value creation journey.

Our business today is in great shape, and with the support of our talented and passionate teams, we will now take Orange Polska to the next level.

With our ambition of Customer Champion, we will Lead the Future in communications and digital solutions to drive profitable revenue growth supported by best-in-class connectivity. Our profound and far-reaching transformation initiatives will create future-ready operations that will be the industry benchmark for efficiency and productivity.

For Orange Polska, the future is not a distant vision, it is the reality that we are shaping right now, and a future that we intend to lead – into 2028 and beyond."

Reliable dividend policy

The Company considers PLN 0.53 per share cash dividend as a floor for the 2025 to 2028 period. Further increases to dividends will be considered on a yearly basis taking into account projections of underlying financial results and overall soundness of the balance sheet.

Forward-looking statement

This press release contains forward-looking statements, including, but not limited to, statements regarding anticipated future events and financial performance with respect to our operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like 'believe', 'expect', 'anticipate', 'estimated', 'project', 'plan', 'adjusted' and 'intend' or future or conditional verbs such as 'will,' 'would,' or 'may.' Factors that could cause actual results to differ materially from expected results include, but are not limited to, those set forth in our Registration Statement, as filed with the Polish securities and exchange commission, the competitive environment in which we operate, changes in general economic conditions and changes in the Polish and/or global financial and/or capital markets. Forward-looking statements represent management's views as of the date they are made, and we assume no obligation to update any forward-looking statements for actual events occurring after that date. You are cautioned not to place undue reliance on our forward-looking statements.