Integrated Report 2018

  • Introduction
    • Message from CEO
    • About the report
  • Company and our stakeholders
    • About our company
    • Our stakeholders
  • Business model and value creation
    • Business model and value creation
    • Key resources
    • Business model
    • External environment
    • Internal environment
  • Strategy
    • Q&A with CEO
    • Our strategy
  • Results
    • Q&A with CFO
    • Outputs & outcomes
    • Financial review
  • Risk
    • Risk management
    • Risk exposure
  • Corporate governance
    • Our approach to corporate governance
    • Our governance structure
    • Governing bodies activities in 2018
  • Selected financial data
  • Appendix
    • GRI table
    • Defining the Reports content
    • Sustainable Development Goals
    • Methodology
    • Glossary
    • Independent Limited Assurance Statement
    • Contact information
Results

Acting in an effective and responsible manner

Impact on Society

Our commitment

To expand access to new technologies for residents of small towns - digital development of local communities
KPI Performance
Number of participants
(residents of small towns
and villages) in educational
activities
100 Orange Studios in villages
and small town for 900,000
residents

To develop digital competencies among children and schools
Number of participants
(schools, children) in
educational programmes
200 schools and 5,000 children
in MegaMission Programme
170 schools and 3,366 children
in #SuperCoders programme
To provide and support education on children’s online safety in schools and kindergartens all around Poland with the Safety Here and There programm

Number of participants
(children) in Safety Here
and There programme


872,636 children using
education materials

wykres
7.8 bn PLN
of Poland’s GDP generated
by our services
99.8 %
of Poland’s population covered by our 4G network
3.4 million
households connectable with our fibre network
(offering speeds of 100 Mbps or more)
117 cities
connectable with our fibre network
wykres
12.7
million PLN

spent on social programmes
and support to NGOs
wykres
46,000
jobs generated in other companies
as a result of their co-operation
with Orange Polska
8.2
million PLN

raised for NGOs from
charity SMSs
sent by our customers
872,636
children participated in
educational activities organised
or supported by Orange Polska
3,654
educational institutions ran
social programmes
supported by Orange Polska





Universal internet access contributes to equal opportunities and helps people from disadvantaged social groups to reach their full potential. But first we need to eliminate the social barriers that restrict people’s access to digital technology - and therefore their access to knowledge, culture and education.


Delivery on our commitments in 2018

Orange Polska plays a special role in stimulating economic development. The telecommunication services and technologies that we provide are the lifeblood of a modern, effective and competitive knowledge-based economy. The Company’s infrastructure is used not only by individual users but also by other companies. The role of Orange Polska as a provider of ICT infrastructure is particularly important outside big cities, in rural and semi-rural areas that are less digitally connected.

The availability of new technologies influences whether we are willing and able to live in a particular location; it also determines whether our businesses can compete with others, choose the best offers, find appropriate employees or ensure smooth collaboration. As an ICT infrastructure provider, we have the power to enhance the investment attractiveness of particular regions and locations.

Digital technology has become a critical factor in the pursuit of a good life; as a result, social exclusion is now a digital issue. By providing telecommunications services we facilitate communication between people; we strive to ensure that everyone, regardless of their place of residence, income, age or ability, has access to the opportunities offered by new technologies.

Orange Studios

Orange Studios are public multimedia studios in small towns and villages, which we create and help to manage. Their purpose is to provide members of the local community with access to new technologies, courses and workshops. The leaders of the studios are provided with professional training and financial aid to help them manage these modern and attractive meeting places. To date, we have set up 100 studios across the country. In addition, we have launched an online knowledge-sharing platform for Orange Studio users. It features a portfolio of ready-to-implement projects and a gamification module that uses game mechanisms to build social skills and motivate residents to work for the benefit of their neighbourhoods. The initiatives are aimed at different groups: children and youth, people with disabilities, young mothers, and senior citizens. We estimate that 900,000 people use Orange Studios per annum.

FabLab powered by Orange

FabLab (fabrication laboratory) powered by Orange is a studio created in Warsaw by the Orange Foundation and Robisz.to Association, equipped with advanced technologies such as 3D printers, laser plotters, CNC milling machines, and electronics. With the support of instructors, participants can learn how to use these technologies creatively to create various objects - from jewellery to drones. Classes and workrooms are open to children, young people and adults, regardless of their skills and experience. FabLab also conducts the Maker Woman project, which is aimed at women entering or returning to the labour market. The main goal of the project is to prevent social and technological exclusion of women, through informal education in the field of new technologies and crafts. Activities are also directed at women who want to raise their qualifications to meet the constantly changing requirements of the labour market. Participants work on their projects with the support of mentors, creating prototypes and finished products.

Digital Education

We want children to be safe and conscious users of multimedia, and we want teachers to have access to the high-quality teaching materials they need. That is why we joined the Nationwide Educational Network, a project of the Ministry of Education. Orange Polska has pledged to provide high-speed fibre internet access (at least 100 Mbps) to 4,577 schools. The cost is included in the company’s current investment plans, and will come from Orange Polska’s own funds, rather than the POPC budget or other public money. We are the first nationwide operator to sign such an agreement, which will benefit 15% of all schools in Poland.

MegaMission

After-school clubs offer a space where we can support digital education in an innovative way that supplements the core national curriculum. Since 2015 we have run a nationwide educational programme for primary schools called MegaMission. It is aimed at kids aged 6 to 10 and their teachers. Through this programme we expand educators’ knowledge about the ten key areas of development of media, digital and IT competence. 200 schools and 5,000 children participated in the MegaMission classes in 2018. In 2018 we created a mobile application (MegaMisja z Psotnikiem) which helps to develop children’s digital competence. The application was downloaded by 5,000 users.

#SuperCoders

#SuperCoders is an education programme to teach coding, aimed at primary schools and students aged 9-12. In 2018 the programme involved 170 schools and 3,366 pupils. During the classes, children learn programming, the basics of robotics and learn about the world of new technologies not only in computer science, but also through nature, history, Polish language, English, music or mathematics lessons. Each school participating in the program receives a grant for the purchase of the computer equipment and learning tools necessary to conduct classes within the selected path. In addition, the Orange Foundation provides two teachers from each school with professional training to prepare them for conducting classes, and supports experienced educators.

The knowledge we acquired during the SuperCoders project allowed us to apply successfully for 9 EU regional grants, which enabled us to start the Code the Future programme. During this programme in 2017-2018, over 1,200 teachers and 18,000 pupils from primary schools (1st-3rd years) from small towns and villages all over Poland learnt the basics of programming and how to use digital skills in practice. Teachers and schools received tablets, robots, mechatronic sets and educational mats that will be used to teach programming in the coming years. Code the Future is a partnership programme run with the Masters of Coding Association.

Safety Here and There

One of the most important issues for us is the safety of children and young people on the internet and preparing young people to use new media in a conscious way. Our programme Safety Here and There addressed this issue by combining the educational activities of the Orange Foundation with all our services related to customer safety. This programme supports education on children’s online safety in schools and kindergartens all around Poland. Every year the Orange Foundation, in cooperation with the Empowering Children Foundation, offers many educational tools and materials such as e-learning and educational websites, online brochures and guidelines for pupils, parents and teachers. In 2018 our educational materials reached 872,636 children. Adults (especially educators and specialists) can participate in conferences, seminars and workshops. In 2018, 1,104,682 of them (teachers, educators, parents) used various kinds of educational tools and materials provided by Orange Polska.

Seniors

In 2018, we took up the cause of digital inclusion for senior citizens. Following pilot classes at Orange Polska headquarters, a series of classes on new technologies for seniors was developed. As part of our cooperation with the Zaczyn Foundation, Orange Polska became a partner of the Digital Competences Festival. During the festival, we trained 20 groups of seniors, around 150 people, about the use of smartphones, mobile applications, information architecture and security, and online know-how.

We also started cooperating with the Third Age University of the Warsaw University of Technology. As part of this initiative, a course was conducted for over 100 senior citizens (it included a lecture entitled, ‘How to use the internet and digital devices safely and wisely’). Then the regular classes were launched (6 meetings for 2 groups, 12 participants each), including workshops on the use of smartphones, mobile applications, Internet of Things, and information about the rules of conduct and security on the internet. The classes will continue in 2019.

Orange Fab

To promote and support start-ups, we have established the Orange Fab accelerator program. We enable start-ups to develop and become more established through access to experts as well as professional, material and financial assistance. We help start-ups to develop services and products in a huge range of fields: Customer Experience, Artificial Intelligence, Internet of Things, Big data, E-commerce, Cyber security and process automation. Every year, we review proposals from nearly 250 start-ups. Since the beginning of the program, 31 projects have already been or are being tested, and some of them have already been commercially implemented.

Smart cities, companies and communities

As a result of cooperation with start-ups and applying our own solutions in the field of smart cities – energy, water, or lighting – we are changing the way cities, companies and entire communities operate.

Smart Energy is a system that monitors, analyses and manages the consumption of electricity, helping to save energy. We developed the solution in cooperation with the Teraz Energia company. In 2018, we introduced our Smart Energy solution in fitness club chain CityFit. We have also introduced this solution to the SOLACE eco-friendly house, whose creator is Solace House, a Polish start-up with a mission to build an environmentally friendly, affordable house.

Smart Water is an intelligent utilities consumption monitor, which provides more precise water consumption measurements, helps to eliminate abuses in water intake from media recipients, allows remote meter measurement without the need for individual readings and speeds up response to failures or irregularities. Smart Water solutions are already operational in several municipalities in Poland - in Środa Wielkopolska (1,100 meters), Hrubieszów (1,500), Miłków (1,100), Józefów (3,000) and in Podkowa Leśna (1,200).

Smart Lights is a lighting management system for cities and municipalities. It provides savings by reducing energy consumption, and contributes to the improvement of residents’ safety. Automation of the urban lighting system has tangible financial and social benefits: the ability to configure lighting according to the needs of residents and depending on traffic, time of day or weather; faster response to failures; and lower costs to remedy them. ‘Smart’ street lighting is already in operation in Piastów near Warsaw. This is a result of our cooperation with the Quantron start-up, alongside the companies BioSolution and JT Weston. The lamps reduce electricity costs by about 60%. A similar system in Podkowa Leśna allowed the city to reduce energy costs by 52%.

Sponsorship

Our sponsorship reflects the global sponsorship strategy of the Orange Group, focusing on three main areas aligned with the brand: music, film and sport. Within these fields Orange Polska develops long-term, comprehensive, nationwide projects addressed to a large group of its existing or prospective customers. We sponsor various initiatives on a long-term rather than one-off basis. Key projects are subject to approval by the Management Board of Orange Polska S.A. We established the Sponsorship Committee to centralise project management of sponsorship opportunities within the Orange Polska Group.


Number of people participating in Orange Warsaw Festival, Open’er Festival Powered by Orange and Kraków Live Festival


Grants

As part of our donation policy, we have adopted formal rules for using the Donation Fund. We follow clear and transparent rules in making donations:

  • any donation requires analysis and recommendation;
  • any donation is subject to approval by the President of the Management Board of Orange Polska;
  • any donation is made under a written donation agreement;
  • all donations are effected by transfers and registered in the accounting systems of Orange Polska;
  • each agreement includes a requirement to confirm that the donation has been used in line with its purpose.


Grants (in PLN millions)