Orange Polska S.A.

Earnings Release • Jul 28, 2025

Current Report 12/2025 Orange Polska S.A., Warsaw, Poland 28 July 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 provides selected financial and operating data related to the activities of the Orange Polska Capital Group ("the Group", "Orange Polska") for 2Q and 1H 2025.

Disclosures on performance measures have been presented in the Note 2 to Condensed IFRS Interim Consolidated Financial Statements of the Orange Polska Group for the 6 months ended 30 June 2025 (available at https://www.orange-ir.pl/results-center/).

Orange Polska reports solid commercial and financial results in 2Q 2025

Key highlights of 2Q/1H 2025:

➢ Solid financial results:

• With 2Q revenues at PLN 3,158 million, +1.1% yoy fuelled by robust growth of core telecom services (+6.8% yoy), and 2Q EBITDAaL at PLN 891 million, +4.3% yoy driven by direct margin
• 1H net profit at PLN 465 million, +1.5% yoy as EBITDAaL growth is largely offset by lower proceeds from real estate disposals (timing)
• 1H eCapex at PLN 799 million, +19% yoy, mainly due to different timing of real estate disposals
• 1H Organic Cash Flow at PLN 344 million, -16% yoy, as higher operating cash flow was offset by timing of capex and proceeds from real estate disposals. Strong cash generation in 2Q.

➢ Good commercial momentum:

▪ As demonstrated by very solid growth of customer bases of all key telecom services, especially in mobile handset category (where net customer additions of 86 thousand were the highest in many quarters) and strong growth of ARPO in convergence and fixed broadband-only offers

key figures (PLN million)	2Q 2025	2Q 2024	Change	1H 2025	1H 2024	Change
revenue	3,158	3,123	+1.1%	6,311	6,204	+1.7%
EBITDAaL	891	854	+4.3%	1,713	1,653	+3.6%
EBITDAaL margin	28.2%	27.3%	+0.9p.p.	27.1%	26.6%	+0.5p.p.
operating income	420	360	+16.7%	732	709	+3.2%
net income	274	231	+18.6%	465	458	+1.5%
eCapex	368	383	-3.9%	799	674	+18.6%
organic cash flow	433	389	+11.3%	344	411	-16.3%

➢ Full-year guidance confirmed¹

1 1 Following the sale of the Orange Energia subsidiary in June 2025, the year 2024 comparable base for revenue growth and EBITDAaL in 2025 has changed. The new comparable base excludes Orange Energia's second half 2024 results and amounts to PLN 12,587 million for revenue and PLN 3,338 million for EBITDAaL.

Commenting on 2Q 2025 performance, Liudmila Climoc, Chief Executive Officer, said:

"Our second quarter results reflect solid commercial performance, especially on the consumer market. Customer bases across all our key telecom services maintained their healthy pace of growth as we are coping well with a demanding competitive environment. We are benefitting from our geomarketing approach, wide portfolio of brands and personalised, AI-enabled offering that helps us strengthen customer loyalty. ARPO in convergent and fixed broadband-only offers maintained a strong 4-5% year-on-year growth rate driven by an expanding fibre customer base, content upselling and higher speed options. Slowdown in mobile-only ARPO reflects solid growth in B2C and intensive competition in B2B.

Our FiberCo JV, Światłowód Inwestycje, is successfully completing its investment programme initiated in 2021. We are proud to launch its new fibre rollout plan through 2032, marking a significant milestone in our strategy to expand our fibre coverage to 12 million households by 2028 and to strengthen our leadership in fixed network infrastructure. Through our Lead the Future strategy we are committed to delivering the best connectivity experience to our customers, on both fixed fibre and mobile. On the mobile front, 5G network expansion progresses on track. We have reached nearly 50% population coverage on the C-band spectrum and have just launched the first base stations on our newly acquired 700MHz spectrum.

In the second part of the year our focus will be on maintaining good commercial momentum, preparing plenty of attractive offers for our customers in the upcoming peak seasons. We are working on a progressive turnaround of our B2B activities, with better prospects for our IT&IS project pipeline in 2H as well as being well positioned to benefit in this area from future increases in defence industry spending."

Results Review

2Q revenue +1.1% yoy driven by strong performance of core telecom services

Revenues totalled PLN 3,158 million in 2Q 2025 and were higher by PLN 35 million year-on-year (+1.1%). Core telecom services (combined revenues of convergence, mobile-only and broadband-only) advanced by a robust 6.8% year-on-year, maintaining their high dynamics as we benefit from the expansion of customer bases and ARPO. This growth was partly offset by three factors. Firstly, IT&IS revenues declined by 1% year-on-year as the growth of ICT revenues was offset by a high comparable base for SMS bulk services that we render for B2B customers. Secondly, equipment revenues, mainly from handsets, decreased by 8% year-on-year, reflecting lower market demand due to a longer handset replacement cycle among customers. Finally, other revenues decreased by 25%, due to energy resale, mainly as a result of lower volumes of energy sold.

2Q commercial performance sustained good balance between volume and value growth

KPI ('000)	2Q 2025	2Q 2024	Change
convergent customers (B2C)	1,822	1,738	+4.8%
mobile accesses (SIM cards)	19,135	17,939	+6.7%
post-paid	14,870	13,580	+9.5%
o/w mobile handset	9,357	9,061	+3.3%
pre-paid	4,265	4,358	-2.1%
fixed broadband accesses (retail)	2,913	2,849	+2.2%
o/w fibre	1,642	1,450	+13.3%
KPI (PLN)	2Q 2025	2Q 2024	Change
convergent ARPO	128.9	123.3	+4.5%
mobile handset-only ARPO	29.8	29.8	unch.
fixed broadband-only ARPO	69.2	66.0	+5.0%

In 2Q 2025 we continued to successfully combine solid growth of customer volumes in all key services with improving average revenue that they generate (ARPO).

B2C convergent customer base increased by 21 thousand or 5% year-on-year. ARPO from convergent customers maintained solid dynamics growing by 4.5% year-on-year to PLN 128.9 owing to our value strategy, good demand for content and higher speed fibre offers.

Total fixed broadband customer base expanded by 16 thousand or 2% year-on-year. Fibre customers base expanded by 38 thousand or 13% year-on-year. Already 56% of our broadband customer base uses fibre. The legacy copper broadband technologies customer base continued to decrease and was lower by 29 thousand versus previous quarter. ARPO from broadband-only services stood at PLN 69.2 and grew by 5.0% year-on-year benefitting from our value strategy and growing share of fibre customers (fibre generates higher ARPO versus other technologies).

Mobile handset customer base increased 86 thousand or 3% year-on-year. This strong growth was fuelled by all our B2C brands and offers and B2B. Mobile-only handset ARPO stood at PLN 29.8 and was flat yearon-year. Slowdown in the mobile-only ARPO growth reflects more than 4% year-on-year growth in the ARPO of the main Orange brand on the consumer market which was offset by a decline in B2B (owing to intensified competition) and growing share of Nju and Flex customers in the mobile-only customer base.

Pre-paid customer base increased 4 thousand in 2Q alone but decreased 2% year-on-year. ARPO from pre-paid offers stood at PLN 16.7 growing 14% year-on-year as a result of our value strategy.

In PSTN fixed voice, net loss of lines stood at 26 thousand, a similar level to previous quarters reflecting structural market shift.

2Q EBITDAaL +4.3% yoy driven by strong growth of margin from core business

EBITDAaL for 2Q 2025 was PLN 891 million and was up 4.3% year-on-year or PLN 37 million. Growth was driven by direct margin (a difference between revenues and direct costs) which increased by 1.8% year-onyear (or PLN 32 million) as a result of strong revenue growth of high-margin core telecom services offsetting declines in equipment and IT&IS. Indirect costs were lower by 0.6% year-on-year (or PLN 5 million). Their evolution included PLN 32 million year-on-year higher additional margin on network rollout contract for FiberCo. Excluding this factor, indirect costs reflected higher labour costs (resulting from salary increases), higher outlays for advertising & promotion (phasing between quarters) and positive impact of cost transformation.

1H net income reflects growing EBITDAaL, timing of real estate sales and gain on sale of Orange Energia

Net income for 1H 2025 was at PLN 465 million and was up 1.5% year-on-year (or PLN 7 million) as EBITDAaL solid growth was offset by lower gain on sale of our real estate and higher depreciation. Gain on sale of real estate was PLN 45 million lower year-on-year due to different timing of transactions between the years. Net income in 1H also reflected an estimated gain of PLN 71 million generated on sale of Orange Energia subsidiary and PLN 55 million higher year-on-year provisions related to the costs of significant risks, employment termination programmes and reorganisation.

1H Organic Cash Flow reflects strong operating cash and timing of capex & proceeds from real estate sales

Organic cash flow for 1H 2025 came at a PLN 344 million, down 16% year-on-year (or PLN 67 million). Cash flow provided by operating activities was PLN 172 million higher year-on-year supported by EBITDAaL growth and much lower working capital requirement. It was offset however by timing of capex and real estate disposals. Cash capex was PLN 153 million higher year-on-year in 1H as a result of different phasing of investments between the years. Proceeds from real estate disposal were at PLN 28 million in 1H 2025 versus a very high level of PLN 132 million generated in 1H 2024.

Commenting on 2Q 2025 results, Jacek Kunicki, Chief Financial Officer, said:

"I am pleased with our financial performance in 2Q. We maintained a robust 6.8% yoy dynamic of revenues from our core telecom services. These high-margin revenues constitute a key element of our profit generation and fuelled a strong 4.3% yoy growth of EBITDAaL in the second quarter. EBITDAaL also benefitted from recognition of additional margin on network rollout for our FiberCo JV, which became possible as we advanced towards finalisation of this contract and have signed a new investment plan for 0.7m households connectable.

I am pleased that we achieved a satisfactory sale of our energy trading activity. It confirms our focus on core business as we execute Lead the Future strategy and secures the best possible future for Orange Energia. Our 2Q net profit was supported by a gain of PLN 71 million on this sale.

We have improved cash generation in 2Q driven by strong operating activity. We are also determined to generate solid organic cash flow in the second half of the year. In Lead the Future we are more focused than ever on the return metrics that drive shareholder value creation.

Following first half results we reiterate our full-year guidance."

Reconciliation of operating performance measure to financial statements

Disclosures on performance measures have been presented in the Note 2 to Condensed IFRS Interim Consolidated Financial Statements of the Orange Polska Group for the 6 months ended 30 June 2025 (available at https://www.orange-ir.pl/results-center/).

in PLNm		1H 2025	2Q 2024	1H 2024
Operating income	420	732	360	709
Gain on sale of Orange Energy shares	-71	-71	-	-
Less gains on disposal of fixed assets	-15	-19	-22	-64
Add-back of depreciation, amortisation and impairment of property, plant and equipment and intangible assets	511	1,031	508	1,013
Less share of profit/Add share of loss of joint venture adjusted for elimination of margin earned on asset related transactions with joint venture	41	71	45	82
Interest expense on lease liabilities	-38	-74	-38	-75
Adjustment for the impact of significant risks, employment termination programs and reorganization costs	43	43	1	-12
EBITDAaL (EBITDA after Leases)	891	1,713	854	1,653

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.

Invitation to Orange Polska's 2Q 2025 results presentation

29 th July 2025

Start at 11:00 am CET

11:00 (Warsaw) / 10:00 (London) / 05:00 (New York)

The presentation will take place on-line. It will be available via a live conference call.

To attend the conference please dial:

Poland: 0048 22 124 49 59 France: 0033 1758 50 878 Germany: 0049 30 25 555 323 United Kingdom: 0044 203 984 9844 United States: 001 718 866 4614

Conference code: 411064

or click on the link for web dial in: https://mm.closir.com/slides?id=411064

You will be able to ask voice questions as well by telephone as by connecting via web dial in.

The recording from the conference call will be later available on the IR website.

Orange Polska Group Consolidated

		2024					2025
amounts in PLN millions	1Q	2Q	3Q	4Q	FY	1Q	2Q
Income statement	IFRS16	IFRS16	IFRS16	IFRS16	IFRS16	IFRS16	IFRS16
Revenues
Mobile services only	719	742	762	759	2,982	766	780
Fixed services only	446	442	438	437	1,763	436	435
Narrowband	115	111	107	104	437	100	97
Broadband	220	219	222	224	885	227	228
B2B Network Solutions	111	112	109	109	441	109	110
Convergent services B2C	620	636	657	667	2,580	680	697
Equipment sales	475	407	411	523	1,816	407	374
IT and integration services	327	405	337	518	1,587	389	401
Wholesale	391	403	418	410	1,622	395	405
Mobile wholesale	206	221	236	229	892	203	219
Fixed wholesale	144	142	141	144	571	146	147
Other	41	40	41	37	159	46	39
Other revenues	103	88	82	109	382	80	66
Total revenues	3,081	3,123	3,105	3,423	12,732	3,153	3,158
Labour expenses*	(382)	(369)	(352)	(357)	(1,460)	(399)	(388)
External purchases*	(1,796)	(1,799)	(1,731)	(2,134)	(7,460)	(1,827)	(1,819)
- Interconnect expenses	(314)	(322)	(295)	(348)	(1,279)	(318)	(333)
- Network and IT expenses	(235)	(250)	(256)	(285)	(1,026)	(247)	(254)
- Commercial expenses	(707)	(711)	(659)	(928)	(3,005)	(728)	(693)
- Other external purchases*	(540)	(516)	(521)	(573)	(2,150)	(533)	(539)
Other operating incomes & expenses*	98	103	60	104	365	106	156
Impairment of receivables and contract assets	(30)	(27)	(34)	(46)	(137)	(41)	(32)
Amortization of right-of-use assets	(135)	(139)	(144)	(150)	(568)	(134)	(146)
Interest expense on lease liabilities	(37)	(38)	(37)	(36)	(148)	(36)	(38)
EBITDAaL (EBITDA after Leases)	799	854	867	804	3,324	822	891
% of revenues	25.9%	27.3%	27.9%	23.5%	26.1%	26.1%	28.2%
Gain on sale of Orange Energy shares							71
Gains on disposal of fixed assets	42	22	11	38	113	4	15
Depreciation, amortisation and impairment of property, plant and equipment and	(505)	(508)	(522)	(486)	(2,021)	(520)	(511)
intangibles assets**
Share of profit/ (loss) of joint venture adjusted for elimination of margin earned on asset related transactions with joint venture	(37)	(45)	(23)	(47)	(152)	(30)	(41)
Add-back of interest expense on lease liabilities	37	38	37	36	148	36	38
Adjustment for the costs of significant risks, restructuring and reorganization	13	(1)	0	(2)	10	0	(43)
Adjustment for the costs related to acquisition,disposal and integration of subsidiaries	0	0	0	(3)	(3)	0	0
Operting income	349	360	370	340	1,419	312	420
% of revenues	11.3%	11.5%	11.9%	9.9%	11.1%	9.9%	13.3%
Finance costs, net	(69)	(75)	(59)	(88)	(291)	(80)	(88)
- Interest income	22	25	21	20	88	21	24
- Interest expense on lease liabilities	(37)	(38)	(37)	(36)	(148)	(36)	(38)
- Other interest expense and financial charges	(37)	(43)	(40)	(49)	(169)	(51)	(53)
- Discounting expense	(18)	(19)	(12)	(22)	(71)	(19)	(19)
- Foreign exchange gains/ (losses)	1	0	9	(1)	9	5	(2)
Income tax	(53)	(54)	(57)	(51)	(215)	(41)	(58)
Consolidated net income	227	231	254	201	913	191	274

* Labour expenses, other external purchases and other operating incomes & expenses exclude adjustment due to employment termination program and some costs related to acquisition, disposal and integration of subsidiaries, and for elimination of margin earned on transactions with joint venture.

**In 2Q 2024 D&A includes 1 million impairment of rights of perpetual usufruct of land historically recognised as property, plant and equipment, subsequently reclassified to right-of-use assets.

Orange Polska Group key performance indicators

		2024			2025
Customer base (in thousands)	1Q	2Q	3Q	4Q	1Q	2Q
B2C convergent customers	1,718	1,738	1,755	1,785	1,800	1,822
Fixed broadband access
Fibre	1,394	1,450	1,495	1,566	1,605	1,642
ADSL	430	410	389	368	349	333
VDSL	383	368	352	336	322	309
Wireless for fixed	620	622	622	621	622	629
Retail broadband - total	2,827	2,849	2,857	2,892	2,898	2,913
o/w B2C convergent	1,718	1,738	1,755	1,785	1,800	1,822
TV client base
IPTV	900	911	925	940	954	969
DTH (TV over Satellite)	52	48	45	41	39	39
TV client base - total	953	959	969	981	993	1,008
o/w B2C convergent	847	855	865	878	890	901
Mobile accesses
Post-paid
Mobile Handset	8,989	9,061	9,129	9,195	9,271	9,357
Mobile Broadband	602	593	589	572	561	557
M2M	3,706	3,927	4,278	4,530	4,801	4,956
Total post-paid	13,298	13,580	13,996	14,297	14,634	14,870
o/w B2C convergent	3,100	3,130	3,159	3,207	3,229	3,265
Pre-paid	4,409	4,358	4,371	4,311	4,262	4,265
Total	17,706	17,939	18,366	18,608	18,895	19,135
Fibre households connectable	8,205	8,504	8,705	8,911	9,159	9,498
Wholesale customers
WLR	165	160	154	148	143	139
Bitstream access	193	199	206	212	221	233
o/w fibre	127	134	144	156	165	178
LLU	27	25	24	22	22	21
Fixed telephony accesses
PSTN	1,098	1,068	1,037	1,002	970	944
VoIP	1,295	1,300	1,306	1,314	1,322	1,332
Total retail main lines	2,393	2,367	2,343	2,316	2,291	2,276
o/w B2C convergent	975	980	985	992	998	1,002
	2024			2025
Quarterly ARPO in PLN per month	1Q	2Q	3Q	4Q	1Q	2Q
Convergent services B2C	121.8	123.3	126.0	126.2	127.0	128.9
YoY %	4.7%	4.0%	5.0%	4.7%	4.2%	4.5%
Fixed services only - broadband	65.5	66.0	66.8	67.2	68.5	69.2
YoY %	4.0%	3.0%	3.5%	3.1%	4.6%	5.0%
Mobile services only	22.0	22.8	23.3	23.2	23.5	23.8
YoY %	4.3%	4.3%	4.0%	5.0%	6.8%	4.3%
Post-paid excl M2M	27.8	28.3	28.7	28.4	28.3	28.4
Mobile Handset	29.4	29.8	30.3	29.9	29.8	29.8
YoY %	1.6%	1.7%	1.6%	1.5%	1.3%	0.0%
Mobile Broadband	11.7	11.7	11.7	11.6	11.5	11.4

Pre-paid 13.5 14.7 15.2 15.4 16.1 16.7

Fixed services only - voice 35.7 35.4 35.6 35.5 35.4 35.3

	2024				2025
Other mobile operating statistics	1Q	2Q	3Q	4Q	1Q	2Q
DATA AUPU in GB
post-paid	10.4	11.9	10.9	10.9	10.9	11.4
pre-paid	11.7	12.2	12.5	13.4	13.9	14.3
blended	10.8	12.0	11.4	11.7	11.8	12.3
Quarterly mobile customer churn rate (%)
post-paid	2.0	1.8	1.9	2.3	2.0	1.8
pre-paid	10.9	11.5	11.1	11.0	10.3	10.7
Employment structure of Group as reported		2024			2025
Active full time equivalents (end of period)	1Q	2Q	3Q	4Q	1Q	2Q
Orange Polska	8,956	8,810	8,613	8,554	8,545	8,338
50% of Networks	342	345	351	373	371	379
Total	9,298	9,155	8,964	8,927	8,915	8,717

Terms used:

ARPO – average revenue per offer

Churn rate – the number of customers who disconnect from a network divided by the weighted average number of customers in a given period.

Convergent services – Revenues from B2C convergent offers (excluding equipment sales). A convergent offer is defined as an offer combining at least a broadband access (xDSL, FTTx, cable or wireless for fixed) and a mobile voice contract (excluding MVNOs) with a financial benefit. Convergent services revenues do not include incoming and visitor roaming revenues.

Convergent services B2C ARPO – The average monthly revenues from convergent services generated by retail customers (B2C) divided by the average number of B2C convergent customers in a given period.

Data Average Usage per User ( Data AUPU) – The average monthly total usage of gigabytes divided by the average number of mobile SIM cards (ex M2M and mobile broadband) in a given period.

Fixed broadband-only services – Revenues from fixed broadband offers (excluding B2C convergent offers and equipment sales), including TV and VoIP services.

Fixed broadband-only services ARPO – The average monthly revenues from fixed broadband only services divided by the average number of accesses in a given period.

Household connectable with fibre - an apartment in multi-family building or a single family house within the reach of our fibre to the home service that allows to provide service with a speed of at least 300Mb/s

Mobile-only services – Revenues from mobile offers (excluding consumer market convergent offers) and Machine to Machine (M2M) connectivity. Mobile-only services revenues do not include equipment sales and incoming and visitor roaming revenues.

Mobile-only services ARPO – The average monthly retail revenues from mobile only services excluding M2M connectivity, divided by the average number of SIM cards (excluding M2M) in a given period.

Mobile-only broadband ARPO – The average monthly retail revenues from SIM cards dedicated to mobile broadband access (excluding B2C convergent offers and equipment sales) divided by the average number of these SIM cards in a given period.

Mobile-only handset ARPO – The average monthly retail revenues from SIM cards dedicated to mobile handset access (excluding B2C convergent offers and equipment sales) divided by the average number of these SIM cards in a given period.

ROCE- Return on capital employed = EBIT (ex. extraordinary items) / (Shareholder's Equity + Average net debt)