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
Corporate governance

On the Strategy Committee’s agenda for 2018

Orange Polska mid-term strategic plan

The principal assumptions and deliverables of the Orange Polska mid-term strategic plan beyond 2020 have been discussed, including main risks.

The plan’s goals were considered realistic thanks to very strong efficiency programmes that would be engaged. HR cost reduction was a sine qua non condition of the transformation, guaranteeing regaining profitability.

Orange Energy after Multimedia Energia consolidation and next steps

Orange Energy should distinguish itself from the other energy providers, by concentrating on digitalisation and green energy. Orange Polska positioning may also include helping households in managing the entire consumption and energy home expenses (which will also promote pro-environmental attitudes). Although some tests of remotely operated home appliances have already been done, the market seems not to be fully ready yet for such solutions.

Content market overview

Content is very important from the perspective of FTTH monetization and being distinguished on the market (building a competitive advantage). In Poland the pay TV market is constantly growing and the Poles continue to spend a lot of time in front of the TV. It was pointed out that OTT players (Netflix, Amazon, etc.) are playing an increasingly important role in the content market, particularly in younger age segments. Nevertheless due to the popularity of sports content in Poland, linear TV still has a large share in overall content consumption. The production of content in Poland - especially the sports one - is strongly concentrated and mostly remains in the hands of two players.

New trends on telco market inspired by Netflix and Amazon

Orange Polska is the precursor of eSIM solution on the Polish market and the phenomenon is perceived in the company both as a big challenge (change of the mobile operator is easier) and in the same time as a huge business opportunity in the future. Inspiration of current trends and their smart implementation in the strategy has been recognized as the optimal path to ensure a leading position in building and maintaining customer relationships by the company.

Overview of acquisition of Netia by Cyfrowy Polska and other potential consolidation moves on Polish market

The importance of the acquisition of Netia by Cyfrowy Polsat and its influence on the structure of Polish telecommunication market was stressed out. From a business perspective, the transaction confirms that pushing the market towards the convergence – the core of Orange Polska’s strategy – was right. This is also a trend visible in other European countries. The Committee has analysed also various consolidation possibilities on the Polish market their probability and business effect on Orange Polska activity.

IT systems overview

The importance of the Online project completion concerning the new, simple and more efficient system used by all the Orange Polska shops and contact centres was pointed out, especially its elasticity and the role in facilitating the IT digital transformation in the company

Strategy Committee at a glance

The Strategy Committee should meet at least twice a year. The Committee gives its opinions and recommendations to the Supervisory Board on the strategic plans set out by the Management Board, as well as any further suggestions to strategic plans made by the Supervisory Board, in particular concerning key strategic directions. The Strategy Committee may also provide recommendations to the Supervisory Board regarding Management’s planning processes. The Committee is consulted on all strategic projects related to the development of Orange Polska Group, the monitoring of the evolution of industrial partnerships within the Orange Polska Group and projects involving strategic agreements for Orange Polska Group. It then reports and makes recommendations on each of these projects to the Supervisory Board.
In particular, the Committee is invited to consider projects such as:
  • strategic agreements, alliances, and technological and industrial co-operation agreements, including aspects of the strategic partnership between Orange Group and Orange Polska Group
  • significant acquisitions and sales of assets
The issues submitted to the Strategy Committee contain, in particular, the information necessary for assessing the risks involved in these operations.

Given the potential impact of these risks on the company’s accounts, the Chairman of the Audit Committee is entitled to attend the Strategy Committee meetings as permanent guest, along with the Chairman of the Supervisory Board.