KPI	Performance
Number of households connectable within our fibre network
4G coverage	Outdoor: Indoor:

Delivery on our commitments in 2019

Connectivity is a vital pillar of our strategy. As the demand grows for greater quantities of data and higher speeds of transmission, investing in the right spread of technologies and maintaining and upgrading our network infrastructure helps to ensure that Orange can continue to attract customers with the promise of fast and reliable services. In 2019 we continued to concentrate our efforts on fibre technology to keep pace with the demand for high-speed broadband, and we improved the quality of our mobile 4G/LTE network to accommodate the explosive growth of mobile data traffic.

Fixed Line

A fast, modern and reliable network is a critical factor to success in convergence. Due to great differences in the competitive environment, the technological options related to population density, our market shares and customers needs, we use a local approach in our activities, which varies in big cities, medium to small towns and rural areas. In big cities we focus on development of fibre coverage and recovery of market share in fixed broadband by capitalizing on our excellent position in the mobile market; whereas in rural areas mobile technologies, supplemented by fixed ones, are the primary broadband access solution.

In line with our strategy, we continued massive development of fibre lines. As at the end of 2019, almost 4.2 million households and companies were connectable with the fibre network, which is an increase of near 0.9 million compared to the end of 2018. Our fibre services are available in 142 cities compared to 117 cities at the end of 2018. In 2019, we focused even more on developing our network in smaller towns, where some districts are dominated by single-family houses. These accounted for 37% of the total network rollout. On one hand, it involves much higher investments, but on the other hand, we expect much higher demand for our services in single-family houses – despite the fact that fibre broadband is more expensive for such customers.

Our fibre development strategy assumes wholesale agreements with other fibre network operators, wherever it is technically possible and economically viable. The main benefits include quicker access to the fibre network and more efficient use of the existing fibre infrastructure in the relevant locations. This is in line with the aims of the Cost Directive of the European Commission, which recommends avoiding duplication of the existing facilities. Such agreements were concluded in 2016, 2017, 2018 and 2019. Under this scheme, we have been already using the infrastructure of 35 operators for more than 670,000 households. In 2020 and later years we intend to continue acquiring FTTH coverage from other operators.

The number of households connectable to Orange Polska’s VDSL network stood at over 5.3 million at the end of 2019. VDSL range has not changed compared to 2018, mainly because we gave priority to fibre network investments. It is worth mentioning the VDSL Boost programme, which migrated 90,000 ADSL clients to VDSL on the existing network capacity. The programme also significantly reduced churn in xDSL customers group, which resulted in a record 543,000 VDSL customers at the end of 2019.

Orange Polska is Poland’s largest wholesale service provider. The demand for transmission band is growing especially for 1 and 10 Gbps links. To meet these needs we continued to build nationwide OTN (Optical Transport Network) trunk lines in order to enhance accessibility and reduce time to deliver leased lines services. In 2019 we increased the number of transport nodes resulting in OTN capacity growth from 3.1 Tbps in 2018 to 4.6 Tbps at the end of 2019.

Mobile

We have been gradually expanding our network coverage and capacity. In 2019 our customers got access to further 212 base stations. As data transfer on the Orange mobile network is growing rapidly, with the biggest increase reported in 4G traffic (which grew 45% in 2019 year-on-year), LTE technology remains the top investment priority in our mobile network. Thanks to our ongoing investments in the mobile network, 4G outdoor coverage for all bands was 99.86% of the population on 98.25% of Polish territory at the end of December 2019. We provided LTE services via 11,222 base stations. In 2019 Orange Polska also focused on increasing the number of sites that enable spectrum aggregation; their number reached 8,928 at the end of December 2019 compared to 6,901 a year earlier.

The total bandwidth allocated to LTE services will increase to 45 MHz. At the same time, in order to maintain the quality of our 3G network, we have also converted the 4.2 MHz frequency block used jointly with T-Mobile for UMTS900 services into two independent carriers of 4.2 MHz each. The project shall conclude in 2020.

In addition to Refarming project, Orange carried Capacity Boost project in Warsaw Metropolitan Area focused on deploying MIMO4x4. As a result Orange customers may benefit with increased LTE performance served from 639 sites, which are also ready for 5G deployment. This project shall continue in 2020 with additional 800 sites MIMO4x4 and 5G capable located in other major cities.

In 2019 we launched LTE-M for Internet of Things on LTE800 layer, providing 871 sites with LTE-M activated. LTE-M has been expanding in our network in “dot” and “small area” activating model for B2B services like smart metering.

LTE outdoor and indoor coverage

KPI	Performance
Number of convergent customers
Number of mobile SIM cards
Number of mobile post-paid SIM cards
Number of mobile pre-paid SIM cards
Number of fixed retail broadband customers
Number of fibre customers
Convergence penetration in B2C fixed broadband customer base
Convergence penetration in B2C mobile handset customer base
Number of fixed voice customers

Delivery on our commitments in 2019

2019 saw a changing landscape in the Polish telecom market, with operators implementing a ‘more for more’ approach. In 2019, we changed our price lists of most services to mass market customers. The rationale behind this move included: higher demand for data transmission, more stable competitive environment in the mobile market, very low prices of telecommunications services in Poland, and favourable macroeconomic environment in Poland. Higher service prices are in line with our strategy focused on value and growth of revenue and profits.

Our commercial activity remained focused on delivering a package of mobile and fixed services, which we define as convergence. It is our competitive edge, it constitutes a good customer loyalty tool and it allows us to upsell more services, winning a higher share of household media and telecom budgets.

Convergence addresses the household telecommunication needs and is a powertrain of our strategy

One of the key strategic objectives of Orange Polska is to be the leader in telecommunication services sales to households. Convergence, or sales of mobile and fixed-line service bundles, addresses household telecommunication needs in a comprehensive manner, increasing customer satisfaction and reducing churn (as churn rate is significantly lower than among single service users). It also contributes to revenue growth and increased efficiency of IT and marketing spending. Through our convergent offer we are able to enter new households with our services as well as upsell additional services to households where we are already present, displacing competitors that cannot provide such a comprehensive offer.

In 2019, we partially modified our Orange Love convergent offer, which is our flagship proposal for Polish households. In addition to the existing packages, Mini (broadband + SIM card) and Standard (broadband + SIM card + home phone + TV package of around 100 channels), we introduced two richer packages called Extra and Premium. These are designed mainly for customers looking for much richer TV content and more abundant mobile data packages on the SIM card. Before, customers could also create similar packages themselves. Now, the choice is simpler and the price is more attractive. All packages can be still extended to include broader TV packages, additional mobile post-paid services at a discounted price or added-value services, such as Orange TV GO or multiroom.

Another major change was an increase in price of the Standard package of Orange Love from PLN 99.99 to PLN 110. In return, the fibre broadband speed increased to 300 Mbps (from 100 Mbps) and the mobile data package increased to 7 GB (from 5 GB). The prices of the other packages did not change. Higher service prices are in line with our strategy focused on value and growth of revenue and profits.

Sales remained high, despite considerable saturation of our broadband customer base with convergent services (62%). The majority of new mobile and fixed broadband service sales are still effected in the convergent bundle formula. Our convergent offer is a major competitive advantage over CATV operators, as they provide no or very limited mobile services.

In 2019, our B2C convergent customer base increased by 133 thousand (or 11%), reaching 1,369 thousand. The total number of services provided in the convergence scheme among B2C customers exceeded 5.6 million. On average, each convergent individual customer uses more than four Orange services, and this ratio is on a stable upward trend owing to upsell of additional mobile and TV services. The share of convergent customers in the aggregate base of residential customers of fixed broadband and mobile voice services is shown in the diagram below. This share considerably increased owing to the attractiveness of the Orange Love offer and the prioritisation of convergence at Orange Polska. Currently, 62% of B2C fixed broadband customers have convergent bundles.

Orange Polska’s B2C convergent customer base (in ‘000)

Convergence penetration in B2C fixed broadband customer base

Convergence penetration in B2C mobile handset postpaid customer base

Improving trends in mobile reflect effective value strategy

In 2019, the key developments related to our mobile portfolio were the revision of our mobile plans and the launch of innovative offer called Orange Flex.

As part of our ‘More for more’ approach, we raised all four subscription fees by PLN 5, while offering in return increased data packages for use in Poland and across the European Union.

In May 2019, we launched a very innovative offer called Orange Flex. It is a fully digital offer supported by an application on the phone, which enables customers to adjust their mobile plans using their smartphones and subsequently change packages depending on their needs with no loyalty agreements involved. Customers can choose from among four tariff plans which differ in data usage limits. They can change these plans (even every month), buy additional services in real time or even temporarily disable services with no consequences. Payments are effected with a payment card attached to the application, so there is no need for invoices.

Orange Flex was developed from scratch and based to a large extent on feedback from our customers. Flex combines the flexibility of pre-paid offers with the convenience of post-paid ones. A breakthrough feature is that customers can activate a new number in a few minutes with no interaction with an operator using eSIM technology. It is a highly innovative offer, which in our opinion sets a new benchmark for the future of telecommunications services, which are to be marked by full flexibility and digital experience.

In line with our value-based strategy, we still followed a policy of low handset subsidies, which had been introduced in 2017. We also continued to offer an option to purchase handsets in an instalment scheme at any time during the lifetime of the service contract (which had been introduced in the second half of 2018). Before, customers could only buy a new smartphone on an instalment basis when concluding or renewing their contracts. Now, they can be much more flexible in this respect, which increases our competitiveness in the smartphone market versus other sales channels. We have thus addressed the needs of customers who either look for novelties or have lost their handset for whatever reason and need a new one. As a result, we have significantly increased smartphone sales and enhanced customer loyalty.

The most important development in the consumer market was the introduction of higher service prices, accompanied by increased data packages, by three out of four operators. It is a colossal change over previous years, when fierce competitive struggle led to increasingly lower prices.

As at the end of December 2019, Orange Polska had a mobile services base of almost 15.3 million, which is an increase of over 3% vs. the end of 2018. The growth rate was roughly similar in the post-paid and pre-paid segments.

In the post-paid segment, SIM card trends were similar to those in 2018:

• Sales of handset offers were up over 3% (similarly to 2018), as a result of the consistent implementation of a value-based commercial strategy and concentration on the Orange Love convergent offer in customer acquisition;
• As expected, the number of mobile broadband services continues to fall due to increased popularity of mobile broadband for fixed use offers as well as growing data packages for smartphones in mobile voice tariff plans (it was down 16% in 2019);
• The number of SIM cards related to M2M services grows rapidly (it was up over 15.5% in 2019).

As for other key trends in the B2C market, in 2019 there were no significant changes versus 2018:

• With rapidly growing demand for data transfer, the volume of data pools has become the key competitive differentiator.
• An attractive portfolio of modern smartphones remains a differentiator in competition for customers. Operators now more actively promote sales of smartphones and other accessories independently of the service contract.
• Households are increasingly the main arena of competitive struggle in contrast to earlier competition for single customers. Customers can get price benefits, sometimes significant, for buying a bundle of several services, which contributes to the popularity of multi-SIM family offers. A part of this trend is the growing take-up of convergent offers, which combine mobile and fixed-line services.
• As a product category, mobile broadband has been less and less attractive, mainly due to attractiveness of wireless broadband for fixed offers, as well as growing volumes of data packages in voice offers.
• Looking for other differentiators, in addition to price, operators offer new services, such as access to music services or TV content.

In order to better reflect our commercial strategy, since the beginning of 2018 we have been presenting separately convergent mobile customers and those who use mobile services only. The number of the former grows rapidly, driven by convergent customer base expansion and upsales of additional SIM cards to Orange Love customers. A decrease in non-convergent services (excluding M2M) can be attributed to migration to convergence, churn, lower migration from pre-paid services (as a result of their higher price attractiveness) and phasing-out of old value-diluting offers.

Fixed broadband: Fibre brings competitive advantage and gives support to convergence

Total fixed broadband customer base increased by almost 2% in 2019, exceeding 2.6 million. The trend did not change compared to 2018. Decline in the mostly non-competitive ADSL technology was offset by growth in VDSL, fibre and wireless for fixed. The share of these growing technologies in the aggregate customer base increased to 63% at the end of December 2019 (from 55% at the end of 2018). We expect this transformation to continue as a result of the steady implementation of our convergence strategy and further investments in the fibre network.

In line with the revenue reporting layout introduced in 2018, we separate convergent broadband customers (their number equals to that of convergent customers) from non-convergent broadband customers. Our non-convergent broadband customer base shrinks as a result of migration to convergence but also due to churn. As a consequence, revenues in this category decrease. Broadband ARPO also decreases, mainly due to a declining share of customers with a TV service, as they migrate to convergence.

Broadband customer base (in thousand)

Fixed voice services: unfavourable trends continue

Erosion of the fixed voice customer base (excluding VoIP) totalled 380 thousand in 2019 and in relative terms was similar to that in previous periods. The decline can be attributed mainly to structural demographic factors and the popularity of mobile services with unlimited calls to all networks. It is also a result of our convergence strategy, which stimulates partial migration of customers to VoIP. Revenue erosion was 15%, remaining at a similar level to 2018. We expect this downward trend to continue in subsequent periods. A positive trend, however, is the stabilisation of average revenue per user.

KPI	Performance
Number of POSs
Number of POSs adapted for customers with disabilities
Number of Smart Stores
Number of POSs modernised (Best Retail Network)

Delivery on our commitments in 2019

Optimisation and increasing the effectiveness of our sales channels

Our key objectives include further development of our online sales channel as well as the optimisation and modernisation of our sales outlets to align with market and consumer demands. These objectives directly result in greater customer satisfaction and further efficiency gains.

The rapid development of online sales, combined with omnipresent digitalisation, influences the expectations and purchase preferences of our customers. As a result, sales outlets are losing their dominance as the main contact channel through which most customers new to Orange make their purchase decisions. On the other hand, most existing customers who want to buy additional services still choose retail outlets. That means we need to invest in the development of our point-of-sale network.

In 2019 we decided to expand the Best Retail Network project in three additional areas:

• Best Location – in-depth revision of Orange POS network based on sales potential and sales efficiency (cityby- city analysis)
• Best People – focus on improvement of staff retention rate and enhancement of sales force efficiency and engagement
• Best Quality – improvement of customer experience and sales efficiency through the rationalisation of both work standards and quality control in our shops.

We had a chain of 708 points of sale, including 235 recently modernised (of which 24 were Smart Stores), at the end of 2019. A total of 143 Orange outlets are fully accessible to the disabled.

Our sales strategy is driven mainly by our customers’ evolving purchasing preferences and the shift to digital channels. In order to address this trend, we focused on improving the online customer experience, as well as upgrading the Orange portal and the My Orange mobile application. Our strategic ambition is to make online the first-choice contact channel for customers to search and buy Orange services. That is why, beginning in September 2019, our clients have been using a new version of the orange.pl homepage. With a simplified information architecture and technology, this new homepage allows for faster and more intuitive navigation through the Orange Polska portal. Thanks to these changes, customers experience a shorter page-loading time and simplified sales and service processes. The level of satisfaction and NPS of customers using My Orange has significantly increased. Customers appreciate the simplicity and clarity of the environment. They note the ease of access to information and the intuitive navigation. They find it easy to check the amount of their last invoice, pay their bills, manage services or change contact details.

We will also soon introduce version 5.0 of our mobile application, developed in cooperation with our customers. As well as offering numerous sales functions, this new version will respond to their expectations and suggestions.

In 2019 we introduced an innovative app-based offer, Orange Flex (available via Appstore/PlayStore). It allows the customer to use mobile services in a subscription-based model - all the services are easily self-managed and all the payments are made automatically, thanks to a credit/debit card or BLIK payments. Orange Flex is aimed at both improving Customer Experience and reducing the cost of customer acquisition.

Customers can also benefit from direct contact with representatives of the Active Sales channel. Orange uses advanced geomarketing tools to target the work of its salesforce more effectively, chiefly in support of our urban fibre network investments. In response to the large increase in fibre infrastructure investments in single-family housing estates and Orange’s participation in the POPC investment programme, Active Sales sells FTTH services on the new infrastructure, working directly with fitters to maximize customer satisfaction (NPS).

Cooperation between all our contact channels has allowed us to gradually implement cross-channel solutions, helping to ensure a uniform, seamless customer experience regardless of the channel.

KPI	Performance
Orange NPS
Number of activation of our safety solutions	Customers protected by CyberShield in 2019: 2.5 million times

Delivery on our commitments in 2019

Focus on continuous improvement in customer experience

In 2019, we achieved the second position among telecom operators in terms of NPS (Net Promoter Score), improving our score by a further 4 percentage points versus 2018, and our gap to the market leader was the smallest ever. It is important to note that our score has been steadily growing year-on-year. Customers’ confidence in us is growing, which produces tangible benefits for the Company.

The increase in our NPS has been driven by the growing customer base for our fibre services and Orange Love bundle, as well as specific improvements in customer experience, including the simplification of both mobile and fixed line offers, automation and robotisation of selected processes, increased capacity of our LTE network, and increased coverage of our mobile and fixed line networks.

We continued the high standards of customer care, which in 2019 was reflected in the following awards:

• Customer-Friendly Company Badge, which is awarded by customers on the basis of an independent satisfaction survey (Orange was the only telecom operator in Poland to receive this)
• ‘OK Senior’ certificate for our customer service dedicated to senior citizens, both on our infoline and in our sales outlets
• Customer Service Quality Star for our nju offer infoline support (for the fourth time)

Top standards in customer care

Since 2014, we have maintained the international COPC (Customer Operations Performance Center) certificate, which through annual audits confirms our high efficiency and top standards in customer care management.

The primary purpose of the COPC standard is to improve customer experience by ensuring consistency in all customer journeys and across all communication channels – whether traditional (call centre, chat), digital self-service (‘My Orange’ app, e-care), or AI-based (voicebot Max and chatbots).

Compliance with the COPC guidelines and benchmarks results in direct benefits experienced by both customers (quality improvements and related customer satisfaction growth) and the organisation itself (cost optimisation, efficiency gains).

We lead the way in implementing the COPC standard within the Orange Group, and according to auditors, “compliance with standards is part of Orange Polska’s corporate DNA.” In their opinion, we have very effective methods for identifying, reviewing and implementing improvements in all customer service channels.

Last year we began to implement a new approach to customer service auditing and certification in Orange Polska. The COPC certification used to apply only to selected locations, representing individual customer care processes. In 2019, we launched an enterprise-wide certification model, in which a representative sample of locations will be randomly selected for an audit, and the outcome of the process will apply to the entire customer care function of Orange Polska. The new approach will ensure higher flexibility in implementing changes, better alignment with the existing operational model, and more effective use of all resources.

User-friendly contact channels

We offer a wide selection of contact channels, which we constantly improve to best meet the expectations of our customers.

In 2019, we introduced further improvements:

• We enhanced our voice assistant Max, which in 2019 answered 100% of customer calls to our main service infolines. Customer satisfaction with issues handled by Max is higher than that with self-service through a traditional IVR system.
• We consistently implemented our strategy to develop digital channels: almost 70% of all customer interactions took place via fully digital communication channels.
• We expanded the ‘Our Orange’ community, which in 2019 increased by 36% year-on-year.
• We developed and actively promoted dedicated self-service solutions (Fleet Manager and Premium Support Portal applications) that enable business customers to manage their service portfolio on a 24/7 basis.

Modern CRM systems

In 2019, our customers and all our first-line sales and customer care personnel (over 10,000 employees) used one common tool for customer relationship management: OMNI.

The introduction of this single sales and customer service platform marked the beginning of a new era in our relations with customers. During a contact with a customer, both salespeople and consultants effect processes in OMNI in the same manner, and the customer can see it by logging on to My Orange. With real-time access to customer information (e.g. personal data, billing data, etc.), our employees can perform a number of customer service activities more efficiently. In particular, they can enter order numbers for all our products more quickly and manage customer relations more effectively.

The OMNI platform is continually enhanced according to feedback from our customers and consultants. The platform acts as an integrated environment, providing uniform customer experience across all communication channels and ensuring customer service coherence.

Personal data security

We control a vast amount of customer and employee data. Personal data are one of the categories of confidential information which, together with data protected by the telecommunication secret and proprietary information, are covered by our Information Security Management System. This system complies with the ISO 27001 international standard, for which we hold certification.

At each stage of data collecting and processing, we ensure that customers are informed about the purpose and scope of data processing, as well as their right to access and rectify their personal data. No fines were imposed on the Company for breach of personal data protection regulations in 2019.

Orange Polska’s activities may trigger the loss, disclosure, unauthorised communication to the general public or third parties or inappropriate modification of the data of its customers. Such losses could arise from (i) malicious acts (including cyber attacks), particularly aimed at theft of personal data, or (ii) potential negligence within the Group or its external partners.

Recourse to liability proceedings is facilitated by the General Data Protection Regulation (GDPR), which became applicable on May 25, 2018. For infringement of GDPR protection rules, administrative fines of up to 4% of the annual global turnover may be imposed. Such incidents could have a considerable impact on the Group’s reputation and a heavy impact on its liability, potentially including criminal liability, and hence have an adverse impact on Orange Polska’s future financial performance. In accordance with GDPR, ISO 29134:2017 and the Article 29 Working Party guidelines, we have implemented a process to identify and prevent violation of rights and liberties of data subjects. We have also delivered dedicated training for Orange Polska’s employees and partners.

Data security

Rapid development of new technologies is accompanied by new forms of crime, a danger which most customers are not capable of coping with themselves. We try to counteract these threats, guaranteeing the security of our services to users and offering them essential knowledge on how to use our services safely. We carry out educational campaigns regarding the Internet, we provide technological tools to strengthen data and system security, and we monitor threats to internet users, particularly children.

Monitoring online threats is the responsibility of CERT Orange Polska. This team responds to threats as they show up and supports Internet users. In 2019, our Cyber- Shield systems, protecting the safety of Orange Polska network users, blocked over 2.5 million connection attempts between infected computers and cybercriminal infrastructure. In addition, almost 11.5 million times our systems prevented potential victims from connecting to confirmed phishing sites.

The most frequent security incidents analysed by CERT Orange Polska were related to “Gathering information”. This category comprises actions aimed to collect information about systems or networks, or their users, in order to obtain unauthorised access (e.g. port scanning, tapping and social engineering/phishing, including phishing email distribution and phishing site hosting). This category accounted for almost 40% of all incidents. Another significant group (almost 21%) was DDoS / DoS attacks, which involve flooding the attacked system with massive amounts of data.

Polish electromagnetic field (EMF) emission standards

Mobile phones

All mobile phones in Orange Polska’s portfolio meet the emission standards specified by the International Commission on Non-Ionizing Radiation Protection (ICNIRP). We ensure that they are thoroughly tested and the safety of their use is verified in the process of examining their conformity with essential requirements. All mobile devices in Orange Polska’s portfolio are safe for users and are accompanied by information on the Specific Absorption Rate (SAR), which is always lower than official limits (below 2 W/kg). SAR for mobile phones refers to the maximum level of radio waves that the user can be exposed to during a call. SAR values can be found in the user manual (technical specifications), which is provided by the manufacturer.

Base stations

Orange Polska uses only proven and worldwide-used wireless communication technologies which are safe for all users.

Since January 1, 2020, the limits of exposure to electromagnetic fields applicable in Poland have been consistent with the Council Recommendation 1999/519/EC. The new limits were set in the Decree of the Minister of Health of 17 December 2019 on the limit values of electromagnetic fields in the environment (Journal of Law of 2019, item 2448). This replaced the Decree of the Minister of Environment of 30 October 2003 on the limit values of electromagnetic fields in the environment and methods of verification thereof (JoL No 192, item 1883), which expired upon coming into force of the Act of 30 August 2019 on amending the act on supporting the development of telecommunications services and networks and certain other acts (JoL of 2019, item 1815) in line with Article 34(2) thereof.

Orange Polska complies with all standards regarding electromagnetic field (EMF) emissions around base transceiver stations (BTSs) and broadcasting stations. We implement technical solutions to ensure protection against EMF emissions by radio communication systems of the base stations developed through our investments or operated on our networks. We ensure compliance with the relevant applications through the following:

• Developing the estimates of the EMF impact on the environment at the planning stage of BTS construction or modernisation projects;
• Reporting EMF measurements (vs. limits) to environmental protection bodies, which decide whether to carry out public consultation or not (public consultation and dialogue concerning network facilities are carried out as part of administrative proceedings and initiated and supervised by the relevant government agencies).

5G technology

The 5G network has no confirmed negative or positive impact on people in terms of the electromagnetic field or the range of frequencies used. The 5G devices will not exceed the Polish standards regarding EMF emissions. These standards have been established on the basis of scientific research in such fields as medicine, epidemiology, biology and dosimetry in accordance with the guidelines of the International Commission on Non-Ionizing Radiation Protection (ICNIRP). Radio waves are electromagnetic waves of a frequency lower than that of infrared radiation or visible light (which is also an electromagnetic wave). Radio waves are not ionizing radiation (such as X-rays), and their levels used in mobile networks guarantee safety by a large margin. The electromagnetic fields used in mobile telephony have no confirmed adverse effects on human beings. Radio waves and microwaves are not considered a potential cause of cancer by the World Health Organization (WHO). They have been included in the category of phenomena and substances whose impact on the development of tumors requires further research, but this does not mean that, according to WHO, such an effect exists

Technology	Frequencies	Admissible exposure level
Energy-saving lightbulb	100 KHz	87 V/m
Fm radio	100 MHz	28 V/m
TV	400 MHz	31 V/m
	900 MHz 1,8 GHz	41 V/m 58 V/m
	900 MHz 2,1 GHz	41 V/m 61 V/m
Wifi	2,5 GHz 5 GHz	61 V/m 61 V/m
	800 MHz 1,9 GHz	39 V/m 58 V/m
	2,5 GHz 700 MHz 3,5 GHz	61 V/m 39 V/m 61 V/m
	26 GHz	61 V/m

KPI	Performance
Indirect costs	indirect costs in 2016-2019 (in PLN millions)

Delivery on our commitments in 2019

The Orange.one strategy added a new dimension to our approach to efficiency at Orange Polska. All our business decisions and actions are now driven by value creation. Our ambition is to be an agile company, digital and flexible, with a strong online presence and highly automated processes, as well as a proven ability to cut costs and find efficiency savings. This approach is reflected in both our commercial activity and our financial results.

In 2019 we continued with our redefined commercial approach: to become more selective and more balanced between volume and value. We took a major step last year by introducing the first ever tariff increases on the consumer market according to a ‘more for more’ formula. This followed a number of value-accretive moves in the prior two years: reduction of handset subsidies, simplification of tariff structure, cancellation of value-dilutive promotions and bonuses, and changes in tariff features encouraging customers to migrate to more expensive tariffs. In 2019 we also continued to optimise the distribution channel mix and make savings on advertising and promotion costs.

Direct margin (the difference between revenues and costs directly linked to revenues) continued to fall, but its contraction was significantly contained in 2019. This improvement in the trend was due to value-driven commercial activity and monetisation of our investments in the fibre network, as a result of which we were able to better compensate structural decline in high-margin legacy services.

In line with our strategic priorities, we continued to push forward with our comprehensive transformation programme to simplify, and where possible to automate and digitise our business processes. We cut our indirect costs by a further 7% in 2019. As a result, over the past 3 years we have brought our indirect costs down by 21%. This achievement significantly exceeds the commitment we made when we set out our strategy in 2017, to cut indirect costs by 12-15% by 2020 (versus 2016). This was a consequence of numerous transformation projects across many areas of operations (e.g. labour, customer care, IT and network, property and general expenses), and record high gains on sale of real estate. Labour costs benefitted from implementation of a Social Plan which covered 2,680 employees (around 18% of the total workforce) in 2018-2019. As a result our labour costs decreased by 6% (year-on-year) in 2019.

• We find optimisation opportunities at every stage of our business model. Examples of the cost saving initiatives introduced in 2019 include:
• As a consequence of simpler and clearer customer invoices and introduction of artificial intelligence (voicebot Max) in customer support, the number of customer calls with human assistance to call centres dropped by 20% and the number of complaints by 25%.
• We were the only operator in Poland to introduce paperless electronic contracts for our customers in all our shops.
• We implemented several initiatives to optimise the workflow of the technical teams which install services and fix network problems. We are able to better detect the exact location of network failures; as a result the number of interventions in 2019 dropped by 17%.
• We continued to optimise consumption of electrical energy in fixed and mobile networks: we consolidate locations, invest in more energy efficient solutions and use big data analytics to monitor and optimise use of energy.

Savings will continue to top our agenda in 2020, especially in the light of various external inflationary challenges. Among other initiatives, in December 2019 we signed a new Social Plan under which up to 2,100 employees may benefit from voluntary departures in 2020-2021.

Indirect costs (yoy change in PLN and %)

KPI	Performance
Energy consumption CO2 emission	Electricity consumption (GWh) CO2 emission (tons) - scope 1+2+3
Number of recycled and refurbished devices	Collected and recycled phones Refurbished and relaunched phones Refurbished and relaunched devices

Delivery on our commitments in 2019

Orange Polska has adopted an environmental policy that defines the Company’s key areas of use of natural resources and our impact on the environment.

These safeguards allow us to:

• oversee the processes which may affect the environment in compliance with legal requirements and other environmental regulations;
• identify our negative impact on the environment;
• account for environmental issues while setting objectives and making decisions as well as carrying out initiatives reducing our impact on the environment;
• monitor the compliance of electromagnetic emissions with the relevant standards;
• attempt to reduce CO₂ emissions related to our activity;
• improve our business practices and apply technological solutions to reduce negative environmental impact; • engage in dialogue with stakeholders and inform them about our environmental protection initiatives;
• raise environmental awareness among our employees and customers;
• cooperate with our suppliers to ensure their compliance with our environmental policy.

Use of new technologies is a huge opportunity on the one hand, in terms of economic and social development and finding more eco-friendly solutions; on the other hand, it presents a challenge when it comes to the rapid obsolescence of products and increased demand for energy. It poses a problem about what to do with devices that are no longer wanted and provokes us to think about eco-efficiency inside the Company as well as relations with our suppliers. It also means educating customers and encouraging them to return ICT devices they no longer use.

Orange Polska is sensitive to global challenges related to the natural environment and natural resources. We consider energy consumption with related greenhouse gas emissions, as well as generation of waste electrical and electronic equipment to be the most important aspects of our environmental impact.

Orange Polska is currently developing an environmental strategy, in which we will present a more comprehensive approach to the Company’s impact on the natural environment and the climate. This will also be reflected in the manner of reporting of non-financial information (2014/95/EU) in line with the guidelines from the supplement on reporting climate-related information (2019/C 209/01), as well as in determining the threats and opportunities related to climate change.

In 2019, Orange Polska as a member of the Employers of Poland, who originated the initiative, became a signatory/ initiator of the Ecological Responsibility Charter of the Entrepreneurs and Employers of Poland. The Charter is an expression of support for the objectives of the European Union, which wants to achieve climate neutrality by 2050, and an answer of the business sector to the challenges associated with the need to stop climate change and environmental degradation.

Energy optimisation

Expansion of the telecommunications infrastructure in response to the growing demand for information flow entails higher demand for electrical energy in our industry. In order to compensate for this environmentally unfriendly trend, we take steps to optimise energy consumption. We also reduce electricity consumption through replacement of older technical devices with modern energy-efficient ones, modernisation of cooling systems, introduction of energy saving functionalities, etc. We manage natural resources efficiently, monitoring the consumption of energy and other resources, as well as carbon dioxide emissions related to our operations. All our energy saving initiatives, including some designed by our own employees, have been combined into a single programme, ‘Energy Optimisation’. To date, Orange Polska has launched almost 160 such initiatives, which generated total energy savings of 583 GWh between 2014 and 2019, and, once all the projects are completed, will generate savings of 182 GWh annually (vs. base year 2014). It means an overall reduction in carbon dioxide emissions of 446 thousand tonnes. Thanks to this programme, our electricity consumption decreased by 10.7% between 2014 and 2019, despite our investments in new technologies and development of new services.

Second life of devices

We try to reduce the amount of materials we use in our operations and to reuse them rather than dispose of them. We encourage our customers to recycle old mobile devices: a buy-back programme for unwanted mobile phones is one of our key environmental initiatives. It is also possible to drop off old mobile phones and accessories, free of charge, in Orange stores. We co-operate with a partner company which repairs any damage, so that the returned handsets can be put back on the market.

Multimedia devices, such as modems and set top-boxes, are leased to customers for the term of their telecommunication service agreements. As a result, products that have not yet come to the end of their life cycles can be reassigned to other Orange Polska customers, avoiding the need to purchase new devices. These products are deemed to be ‘as good as new’ after refurbishment.

We encourage our customers to recycle old mobile devices. It is also possible to drop off old mobile phones and accessories, free of charge, in Orange stores. We refurbish multimedia devices, such as modems and set top-boxes, so that they can be reassigned to other customers. In 2019, 410,774 modems, broadband and CPE devices were refurbished and returned to the market, which was approximately 43% of the total number in circulation in Poland. In addition, 194,995 devices were refurbished in 2019 for the French and Senegalese markets. On top of our in-house refurbishment processes, with the help of our external service partner, over 8,500 mobile devices, both smartphones and tablets, were refurbished and put back into distribution in Poland.

In 2019, we launched a new buy-back programme for used handsets in all Orange POSs. Each used but operational smartphone is valued by an Orange consultant, and in the trade-in scheme the customer receives a voucher which they can use when buying a new handset or accessories in our store. Handsets are also collected, in return for attractive prizes, during our music festivals: Orange Warsaw Festival and Open’er Powered by Orange. It is also an opportunity to educate fans in mobile phone recycling.

We co-operate with licensed organisations only. The collected devices are stored in special containers, and then handed over to a company which is responsible for their recycling or neutralisation. Such companies document the subsequent stages of the process: collection, transport and recovery or disposal. In line with the WEEE Act, the equipment which can no longer be used is considered waste and handed over to waste neutralisers holding the relevant waste management licence granted by the Chief Inspectorate for Environmental Protection.

E-services and paperless

Digital technology also creates the potential for more innovative and sustainable solutions promoting energy conservation and pro-environmental attitudes. We provide environmentally friendly solutions which help to reduce greenhouse gas emissions through services that can replace traditional communications or written documents, such as tele- and video-conferences, electronic document flow, e-services, e-invoices and comprehensive ICT systems for business, public administration and local communities.

Over three fourth of all Orange Polska’s customers use e-invoices, and among our mobile customers this figure is already more than 90%. As a result, we have saved 1,000 tons of paper and 10 million litres of water over thirteen years. If you add the effects of signing service and product agreements in the electronic form on a tablet (this option is chosen by 9 out of 10 visitors to our sales outlets), we have eliminated the use of paper which is equivalent to almost 40 hectares of forest.

We have replaced popular plastic bags with paper ones, thus reducing the amount of plastic waste stored in landfill sites. However, the best solution from an environmental point of view is to use your own reusable bags. Therefore, we encourage our customers to change their habits in order to reduce the number of plastic bags used.

Smart cities

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 co-operation with the Teraz Energia company. In 2019, we established co-operation with other energy companies, such as S-LABS.

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 nearly 30 municipalities in Poland, with large projects completed in Szczecin (8,500 meters), Pyrzyce (2,000), Cybinka (2,000), Krosno (3,300), Józefów (3,000), Środa Wielkopolska (1,100), Hrubieszów (1,500), Podkowa Leśna (1,200) and other towns.

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. In 2019, we developed our own smart light controller, which is compatible with the majority of LED lamp vendors available on the Polish market. The first Smart Lights systems using the new controllers became operational in several Polish cities in the second half of 2019.

Furthermore, we have introduced fourth generation bike-sharing systems (with no docking stations) in 17 cities.

In five municipalities we implemented smart air-quality sensors, which enable effective monitoring of air pollution and informing people about it.

We also offer smart systems for monitoring municipal services, which already operate in three cities. For example, our smart waste management system makes it possible to improve the schedule and logistics of waste collection from individual locations, optimising the use of the truck fleet.

Eco-efficiency of our infrastructure

We invest in the efficiency and quality of our infrastructure. According to our statistics, in 2019 the volume of data traffic on Orange Polska’s network was ten-fold higher than in 2015, while simultaneously the amount of energy required to transfer one gigabyte of data through our mobile network decreased from 1.4 kWh to 0.2 kWh. The fibre network, which we are expanding, uses eight times less current per user than copper network and five times less than mobile one.

Furthermore, Orange Polska is developing a chain of modern base stations which optimise energy consumption by extinguishing some of their systems whenever they are not needed for current operations. In addition, our server rooms and some base stations use free cooling technology to save energy. Already almost 2,400 of our base stations use outdoor air instead of air conditioning systems for cooling. As a result, each such base station saves about 8 MWh of energy annually, which is equivalent to four-year energy consumption of an average household. And the total energy savings from the use of free cooling in base stations correspond to the annual energy consumption of the city of Zakopane.

Renewable energy sources

As from 2021, Orange Polska intends to meet a portion of its energy needs from renewable sources. We already pay much attention to the energy mix of our energy suppliers, ensuring that it will include green energy in the future. We are carrying out a pilot project to meet a portion of our needs with solar energy from photovoltaic (PV) panels installed in selected sites.

We have been looking for optimal financing models for the development of PV systems. We have decided to follow the Solar-as-a-Service (SaaS) model. One system has already been developed in Kalisz in this scheme (its commercial trial started in November 2019). With the SaaS model, an external company develops and maintains a PV system at its own expense, while Orange provides an installation site and buys the solar energy produced. The total power of the PV modules in the deployed system is 14 kWp. We are considering the Green Data Center initiative, which provides for the deployment of PV installations in the SaaS model in our data centers in Psary (500 kWp) and Łódź (370 kWp).

KPI	Performance
Number of participants (residents of small towns and villages) in educational activities	65 Orange Studios in villages and small town for 585,000 residents
Number of participants (schools, children) in educational programmes	150 schools and 7,000 children in MegaMission Programme 150 schools and 2,894 children in #SuperCoders programme
Number of participants (children) in Safety Here and There programme	1,114,868 children using education materials

Delivery on our commitments in 2019

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.

Social Campaign

In 2019, Orange Polska launched the social campaign “We have great power. We have great responsibility.” to promote responsible use of technology. The campaign was the part of the international Orange Group’s initiative. To show customers how to use new technologies wisely and safely, the Together On-line internet platform has been created, which includes advice on the rules of using the internet by a family. We show how to prepare a child to use digital devices, we inform when to give it the first phone and how to secure the device, we show inspirational websites. We have also given a lot of space to security and protection against threats areas, such as internet abuse, access to inappropriate content, hate or cyberbullying. As part of this initiative, we also organized webinars and live chats with opinion leaders and experts. On the other hand, during the Days of Development with employees, experts spoke about the phenomenon of phonoholism and warned against pato-content on the web. The website was visited by over 430,000 people, and 39,000 customers downloaded the Protect Children on the Web application within a month, i.e. more than twice as many as before. The “We have great power. We have great responsibility” social campaign gained positive customer feedback and has proved to be the most engaging campaign over the past year.

Orange Foundation

An important element of our responsibility is constituted by the activities of the Orange Foundation focusing on social programmes which concern modern technologies. The strengthening of digital competence, safety of the youngest web surfers, and finally providing inhabitants of small towns with access to information, knowledge and technology - these are the most important activities of the Orange Foundation. Our programmes reflect the strategic idea of our thinking and local activities. We listen to people’s needs, we co-operate with experts and social partners, and then we suggest solutions which may be used by the society, school and non-governmental organization. Since 2005, we help not only by committing our money, but also our knowledge and skills.

Thanks to Orange Foundation we:

• teach children and parents online safety rules
• support modern digital education for children and youth
• help residents of small towns develop digital literacy
• inspire people to use modern technologies wisely and creatively
• conduct studies on digitisation and the use of technology in Poland
• run nationwide educational projects for schools
• connect people who need help with our volunteers.

Orange Foundation programs: Orange Studios, MegaMission, #SuperCoders, Lesson:Enter, FabLab, Safety Here and There and Orange Corporate Volunteering

– 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. We have set up 100 studios across the country (65 of them are still active on local level). 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 neighborhoods. The initiatives are aimed at different groups: children and youth, people with disabilities, young mothers, and senior citizens. We estimate that 585,000 people use Orange Studios per annum.

– 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. 150 schools and 7,000 children participated in the MegaMission classes in 2019. We created a mobile application (MegaMisja z Psotnikiem) which helps to develop children’s digital competence. The application was downloaded by 7,000 users.

– #SuperCoders

#SuperCoders is an education programme to teach coding, aimed at primary schools and students aged 9-12. In 2019 the programme involved 150 schools and 2,894 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. In 2019 three new educational paths for 7-8th class were implemented.

– Lesson:Enter

Lesson:Enter is a nationwide digital education project addressed to schools, the biggest carried out in Poland so far. Its main goal is to assure better and more frequent usage of digital tools by teachers in their everyday work. The project is carried out by a consortium of three organizations: Orange Foundation (leader), Information Society Development Foundation and Institute of Public Affairs. Thanks to the grant received from Digital Poland Project Centre within the Digital Poland Operational Programme (PLN 40 million) we would give out circa 100 mini-grants (up to 450 thousand each) to local organizations to recruit teachers and organize trainings. During the four-year project over 75 thousand of teachers will be trained.

Within the project three cycles are planned, one in each year between 2019 and 2021. Each cycle will consist of two steps:

• Application for mini-grants – granting the financial help to the institutions that will be responsible for holding trainings for teachers in their regions. Grants are available for Teacher Training Centres independently or in cooperation with Local authorities, universities or NGOs.
• Trainings for teachers – recruitment process and carrying out trainings for teachers divided in 9 thematic paths.

In addition, follow-up activities guaranteeing durability of the project will be held.

In 2019 we carried out the process of selection of the grantholders. We have received 27 grant applications which ended up with signing 13 contracts with local organizations that will be responsible to hold trainings in their regions. 11 of 16 voivodships will be covered.

– FabLab powered by Orange

FabLab (fabrication laboratory) powered by Orange is a studio created in Warsaw and Gdańsk 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.

FabLab powered by Orange in Warsaw in 2019:

• 5th edition of the Maker Woman project supporting woman on the labour market,
• project for high-school students addressed to young entrepreneurs in co-operation with the City of Warsaw
• open workshops for children from small towns and villages

FabLab powered by Orange in Gdańsk in 2019:

• two editions of an educational project for young people
• open workshops for children and adults in co-operation with the City of Gdańsk

The Maker Woman project is for women who plan to develop their qualifications in the rapid market changes. During 3-months training each participant follows the path from theoretical know-how to preparing the prototype of their own product. They learn the basics of design, preparing projects for 3D print, lasercut and CNC machine. They gain skills in coding of microcontrollers and microcomputers. They practice in wood processing, sewing, building websites, product photography. They get basic support in leading their own business.

With help of trainers and mentors participants develop their prototypes, that can be used as a basis of future startup.

– 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, and online brochures and guidelines for pupils, parents and teachers.

In 2019 our educational materials reached 1,114,868 children. Adults (especially educators and specialists) can participate in conferences, seminars and workshops. In 2019, 418,365 of them (teachers, educators, parents) used various kinds of educational tools and materials provided by Orange Polska.

Seniors

For the second time, Orange Polska received the OK SENIOR quality certificate awarded by the National Institute for Silver Economy, for call centre service.

We introduced facilities for seniors at our call centre to meet the needs of our senior customers, who could not always cope with the extensive menu, namely: automatic menu shortened to a minimum, dedicated advisors, unlimited talk time. In addition, all letters addressed to senior customers are printed using a bigger font. These facilities resulted in an increase of Net Promoter Score of senior customers with the service by an average of 10 percentage points. For the first time, we received the Senior OK quality emblem in 2016 (for 2 years). Store certification is also planned.

In 2019 a dedicated series of classes on new technologies for seniors was developed. As part of cooperation with the Zaczyn Foundation working for seniors, Orange Polska became a partner of the Digital Competences Festival. We also run workshops for seniors in Orange Studios. We trained 16 groups of seniors about the use of a smartphone, mobile applications, Information Architecture and security, and savoir vivre online.

Orange Fab

To support our customers in digital transformation and streamline our internal processes, Orange Polska has collaborated with start-ups for several years now.

In our dedicated Orange Fab accelerator programme, we work together with micro-companies in carrying out tests and pilot projects based on their innovative solutions. As part of this co-operation, they have an opportunity to test their solutions with a large corporation and consult them with Orange experts, and their best projects can become the subject of commercial partnership.

We initiate collaboration in diverse fields, including customer experience, artificial intelligence, Internet of Things, big data, e-commerce, cybersecurity and process automation. Every year, we review proposals from nearly 250 new startups. Since the beginning of the programme, 48 projects have already been or are being tested, and some of them have already been commercially implemented.

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.

Strategic music sponsorship of three main music festivals in Poland - Orange Warsaw Festival (June 2019), Open’er Festival Powered by Orange (July 2019) and Kraków Live Festival (August 2019)

Orange Poland has been successfully creating Orange Warsaw Festival since 2008, reaching nearly 0.7 million participants and over 200 artists during 12 years. It is the main urban music festival in Poland. In 2019 it took place on the 31st of May and the 1st of June, with participation of over 60k music fans. Orange Warsaw Festival is the most accessible for persons with disabilities music festival in Europe. Open’er Festival Powered by Orange is the biggest and the most important greenfield music event in Central Europe. In 2019 it took place from the 3rd to the 6th of July and gathered over 110k unique participants.

Orange Polska has been the sponsor of Kraków Live Festival for the second time in 2019. The main festival in Southern Poland took place on the 16th and 17th of August and gathered nearly 60k young music fans.

Orange music festivals every year have been becoming more and more accessible and eco-friendly, driving social change and really bringing the fans closer to what matters. The development of strategic music sponsorship is a representation and effect of long and detailed analysis of the situation on the sponsorship and music markets along with asking of customers’ needs and delivering legacy. As Orange is listening and responding to the customers’ needs, this activation is the answer to the Orange customers’ expectations of the access to the best music artists in the easiest way – with discounted tickets, by mobile application, with no barriers for people with disabilities, etc.

Orange music festivals are communication drivers for marketing offers giving space and support for key strategic social and business projects.

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

Grants

As part of its donation policy, Orange Polska has adopted formal rules for using the Donation Fund. These are specified in the relevant Decision of the Board Member in charge of Strategy and Corporate Affairs.

Orange Polska S.A. follows 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.

Furthermore, Orange Polska provides free of charge dedicated fundraising numbers for charity SMS messaging. All the receipts are subsequently transferred to social causes, such as social campaigns and programmes, assistance to the victims of natural or man-made disasters, or initiatives saving human life and health.

For years, we have provided charity SMS messaging to a number of charity organisations, including Caritas Polska, Polsat Foundation, TVN Foundation, Great Orchestra of Christmas Charity and Foundation Work of the New Millennium. In 2019, fundraising numbers were launched for 15 organisations, which raised a total of over PLN 4.8 million.

Grants (in PLN millions)

Cooperation with government institutions

Orange Polska joined the Declaration of Cooperation for the Safety of Children On-line. The signatories of the Declaration are the Minister of Digitization, the Minister of National Education, the Ombudsman for Children, representatives of state institutions, media, internet portals and telecommunication operators. The Working Group on Child Safety and Youth on the Internet has been set up. The priority of the work of this team will be to develop solutions and present proposed actions in the field of secure internet access for the youngest users.

Orange Polska is a signatory of Pact for Accessibility plus 2018-2025. The Pact is a commitment to cooperate in order to implement the objectives of the governmental Accessibility plus programme to eliminate barriers in the lives of people with disabilities. The signatories of the document undertake to manage the idea of accessibility and equal treatment, and together aim to equalize opportunities and access for all citizens to the physical, social and cultural environment, alongside recreation, leisure, sport, health care, education, work, transport, information and means of communication.

Orange Polska has signed a declaration of the participants of the Ombudsman’s Round Table to fight pathologies on the Internet, including the limitations of pathological streaming and its destructive social and educational consequences. The members of the coalition are lawyers, scientists, representatives of public authorities, non-governmental organizations, technology companies as well as youtubers and journalists. Orange Polska initiated creation of the Report on the phenomenon of pato-content on the internet, basing on the qualitative and quantitative research. This research and “Pato-content on the internet” report are the first attempt in Poland to diagnose this phenomenon scientifically, describe its specificity, scale, potential impact on young recipients and its legal framework.

KPI	Performance
Number of employees *
Share of women among managers	of women among managers
Number of training hours per year per employee	training hours per employee
Employees satisfaction ratio (International Social Barometr)	(on a scale from -100 to +100)

* excluding Networks!

Delivery on our commitments in 2019

As an employer, Orange Polska strives to combine the best of both digital and human approaches. Our goal it is to enable employees to contribute to our Company’s transformation, for the benefit of the customer experience. In 2019 we continued to focus on developing new skills and new professions. We also adopted more collaborative working methods, popularised digital tools and encouraged innovation at every level. Everyone’s commitment is key to the success of our strategic project – being a digital and caring employer. One of Orange Polska’s goals is to be the company most preferred by employees. In response to our employees’ needs we promote a proactive approach and open discussion. Orange Polska encourages all employees to cooperate - to be transparent, straightforward and honest to each other.

New organizational culture of Orange Polska

We are building our organisational culture in open dialogue with our employees. We invited all our employees to express their opinions in the companywide Organisational Health Survey. The results of this survey showed our strengths and weaknesses and helped us to diagnose and set the main directions for change in our organisational culture. In order to maintain the Company’s leading position on the telecommunications market, it was necessary to focus on strengthening employee engagement and creating better conditions for their development and sense of satisfaction. Thanks to this, we were able to create an organisational culture which supports the implementation of our strategy and strengthens the involvement and development of our employees and managers.

Initiatives introduced in 2019:

• Starting to build a feedback culture through: feedback 360 for all employees; feedback rituals – summarising meetings; monthly Pulsometr – a team feedback survey focused on the atmosphere and achieving goals.
• Implementation of new model of leadership - Leader in Action - we defined 10 rules of Leader in Action and started with the new approach to leaders assessment built on two pillars: performance (business results) and behavior (10 rules observed when working with a team, e.g. I explain the strategy and achieve business goals together with my team / I’m close to customer / I work across silos / I constantly and boldly simplify / I make decisions quickly and I empower responsibility etc.).
  • Leader-in-Action rules as a basis of recruitment, evaluation, succession, mobility and manager’s development.
  • An annual managerial review in the form of round table (cross functional discussion about each manager on each level of the Company).
• Over 80% of all OPL managers trained on feedback culture, leader’s competences, customer orientation and effectiveness (including agile module).

Open and honest, two-way communication to engage employees using new communication formats:

• #bezcukru – regular meetings of the board member with employees, more than 2000 employees on average (online video streaming to more than 150 locations, all OPL)
• #wtopy – meetings devoted to discussing and learning from mistakes);
• encouraging more and more employees to use Plazza (internal interactive platform of communication);
• Oz: dedicated programme for employee innovation and collaboration. In 2019, more than 186 employees created 285 ideas on Oz Wall of ideas. The ideas attracted 6.4k votes and 3.3k comments with engagement of 2.2k employees. In addition, in four (4) Oz Innovation Challenges in 2019 we have collected another 258 ideas from 152 authors, attracted 1.2k comments and engaged 1.9k employees.

Orange Polska again among top employers

In 2019 we built Orange Polska’s reputation as one of the best employers in Poland. We received several awards, including the Top Employer Polska certification, Top Employer Europe and Top Employer Global. Our high ranking among Polish companies reflects our commitment to better working conditions, constant enhancement of the work environment and our focus on talent development.

Diversity management

The Diversity Management Policy aims to bolster the pursuit of our business objectives, address changes in the labour market and respond to the expectations of our employees. The policy also supports compliance with the values enshrined in the Code of Ethics, CSR goals and the obligations under the Diversity Charter, of which we are a signatory.

The key diversity dimensions in the Group are as follows: gender, age, competence / expertise / experience / way of thinking, psychophysical skills – (dis)abilities, and parental status. Other diagnosed dimensions include: religion / beliefs, workplace location (HQ vs. region), type of employment, and nationality / ethnic origin.

In 2019, Orange Polska was once again subject to an external audit with respect to gender equality and diversity management, and its Gender Equality European and International Standard (GEEIS) certificate was renewed in the process.

With respect to administering, managing and supervising bodies, the rules specified in the Policy include proper selection of employees and leadership. In the recruitment process, we follow transparent rules and criteria for candidate selection. Decisions to recruit particular persons are based on their qualifications and professional experience.

We ensure that candidates represent diverse communities. In terms of leadership, the diversity requirements include care for the diversity of decision-making bodies within the Company.

In complementary action plans to the Policy, we have assumed a requirement for analysis of management and supervisory bodies in terms of diversity with respect to such aspects as age, gender, education or professional experience.

The duties and responsibilities, as well as the requirements related to qualifications, expertise and competence of Supervisory Board Members are specified in the Company’s Articles of Association. In addition, Orange Polska S.A. applies the provisions of the Best Practice for WSE Listed Companies 2016.

The Supervisory Board currently consists of fourteen members, including five independent members. They are appointed by the General Assembly (or, in exceptional cases, by the Supervisory Board). The term of office for the member of the Supervisory Board is three years. There are three women on the Supervisory Board.

The Management Board currently consists of eight members, including the President. They are appointed by the Supervisory Board. The term of office for the member of the Management Board is three years. There are two women on the Management Board (as of December 31, 2019).

Orange Polska is signatory to and a guardian of the Diversity Charter. The Diversity Charter is an international initiative implemented in 17 Member States of the European Union. The Charter is a written declaration, signed by organisations, companies and institutions that undertake to prohibit discrimination in the workplace and take measures to create and promote diversity, and express readiness to involve all employees and business and social partners in these activities. Organisations who decide to implement this tool work for cohesion and social equality.

Razem.One

Razem.One (Together.One) is a voluntary initiative which fits into the culture change, addressed to all OPL employees. It aims to show how important it is to use the potential of each of us by creating sustainable teams, consisting of both women and men, which leads to better business results. It is composed of four pillars: power, awareness, ambition, presence.

We work on building awareness of the importance of diversity by organising inspirational meetings for all employees, during which we raise topics related to diversity as well as exchanging best practices and sharing our experiences.

We send a monthly newsletter. We invite guests and inspirators from other companies to exchange knowledge and share good practices.

We equalize the opportunities and proportions of women and men mainly in expert and managerial positions through psychological and emotional strengthening, mentoring, coaching, shadowing and training.

We analyze the participation of women and men in specialist and managerial positions in individual functions and examine their employment conditions in equivalent positions. We observe the participation of women and men in the succession and recruitment process.

We are increasing the presence of women in IT technical areas (network, technologies, investments) and the presence of women in decision-making processes and strategic projects. Together with the partner company Future Collars we have organised an event to promote coding since November 2019. We have also selected employees who will carry out the courses, so that the acquired competences can be used at work.

Since March 2019, over 2,000 employees have participated in inspirational meetings, dozens of women have taken part in mentoring and coaching processes, shadowing (including with the President of Orange Polska and Board Members).

Development and training

Orange Polska, as a technology company, focuses on employee development adapted to the challenges of the modern world. We act in line with the imperatives of a learning organisation and our development is based on several major pillars. We have diagnosed the competences required for efficient functioning within techno companies and offered all employees an opportunity to develop these competences. Our employees can develop their competences through the Orange Learning platform, following development paths based on the ‘Know–Practice–Deepen’ framework. The platform offers various forms of development, from short knowledge pills and videos (Know) and e-learning courses and business simulations (Practice) to face-to-face training, educational communities and mentoring (Deepen). Employees can decide themselves which competence to develop and at what pace, and which development methods will be most effective for them. These resources are supplemented by the international Orange Campus programme.

In addition, we support the emergence of employee expert communities within the organisation. In the Knowledge Highway programme, selected internal experts conduct training, sharing their expertise in the particular area with other employees.

One of the key development tools is feedback. A major element supporting the feedback culture is the monthly Pulse Meter opinion poll, in which individual teams can offer feedback and suggest changes.

Development of managers is based on the leadership model which comprises 10 Leader-in-Action rules. By the end of 2019, our managers had participated in four workshops developing their leadership skills. In 2020, our managers will be offered ‘Know–Practice–Deepen’ development paths, addressing the Leader-in-Action rules in the #leader initiative. We will also support Orange Polska’s leader community, whose key purpose is to share inspirations and good practices, and support one another in coping with day-today challenges.

Development opportunities are supported by the Mobility programme; we also provide a tool with which employees can express desire for change of their professional roles and managers can inform about vacancies in their respective areas.

We also train outsourced staff in knowledge specific to Orange Polska and necessary to perform their duties.

Working environment

In order to improve quality of life and promote employee integration, Orange Polska provides a broad package of market-competitive benefits to its employees, building a valuable offer which supports employee recruitment and retention.

The key areas influenced by Orange Polska through benefit schemes are health and physical activity, financial stability, improved quality of life and employee development.

The Policy for Investing in Health Quality and Well-being of Orange Polska’s Employees provides for developing friendly working environment, ensuring balance between professional and personal life, promoting a healthy lifestyle, supporting employees’ physical activity and hobbies, as well as creating a culture of co-operation in which all employees feel respected, freely pursue their professional goals and life passions and get involved in social initiatives.

• Orange Polska ensures safe and friendly working conditions for its employees;
• Orange Polska employees are offered broad healthcare services at medical facilities nationwide;
• Orange Polska’s employees are eligible for participation in the Employee Retirement Plan;
• Orange Polska has the Company Social Benefits Fund as a means of social welfare addressed to employees and retired employees in need;
• In addition to the Company Social Benefits Fund, employees can use the Central Housing/Welfare Funds;
• Orange Polska’s employees and their families are offered discounts by the Group’s partners, as well as discounts for Orange products and services in the ‘Offer for You’ programme;
• Employees are also eligible for financing of sports, tourist and cultural events and can use FitProfit cards;
• The Company provides a possibility of teleworking or remote working.

Both full-time and part-time employees are eligible for all the aforementioned benefits. Employees working under a fixedterm employment contract are eligible for health care and promotional offers, but are not eligible for benefits that require long-term commitments, such as the Central Welfare Fund or the Employee Retirement Plan.

Occupational health and safety

The Occupational Health and Safety (OHS) Policy regulates activities aimed to ensure work safety, health protection and constant improvement in working conditions to all employees. We aim to incorporate OHS elements into all activities of Orange Polska and on all management levels in order to ensure safe working conditions, so that all our employees can actively perform their day-to-day duties in a friendly working environment.

Continuing workforce optimisation through social dialogue

We respect the employees’ right to associate and we run regular broad dialogue with our social partners. As part of a dialogue within Orange Polska, we negotiate settlements, agreements or other documents with trade unions. There is also the Employee Council in Orange Polska S.A. Pursuant to mandatory regulations, the Company has an obligation to consult the Council on matters related to the level, structure and intended changes of workforce, actions aimed at maintaining the workforce level, as well as any significant changes in work organisation or employment terms.

An important document developed in consultation with trade unions is the Intragroup Collective Labour Agreement in Orange Polska S.A. This document regulates, among others, the rules for concluding and terminating employment contracts, working hours, holiday entitlement, rules of remuneration and obtaining extra benefits connected with work, occupational safety and health issues, training, social care and health care. Also the Social Agreement is developed in consultation with trade unions.

The Social Agreement, which remained valid in 2018–2019, addressed particularly the following issues: investments in a friendly work environment, pay rises in 2018 and 2019, financial compensation for employees leaving Orange Polska, and support for outplacement. The Social Agreement for 2020–2021 came into force on January 1, 2020 and will remain valid to December 31, 2021. Under the Settlement for 2019, up to 1,230 employees of Orange Polska were eligible for the voluntary departure package in 2019. In December 2019, the Settlement for 2020 was concluded, determining the detailed terms of voluntary departures of Orange Polska’s employees in 2020.

Eco-friendly workplace

We strive to make our workplaces as environmentally friendly as possible. Real estate is an area with a significant contribution to CO2 emissions due to consumption of electricity and indirect energy sources: gas, coal and oil.

Our headquarters, Miasteczko Orange (Orange Town) in Warsaw, which is a workplace for over 3,500 people, has been designed and constructed with respect for ecological principles. It is an A+ class office complex, which complies with the requirements related to energy conservation, greens management, light energy consumption, factors affecting human health and water saving solutions.

The Town has been awarded a BREEAM certificate with the Excellent rating, which confirms that it complies with the strictest environmental standards and top European construction standards.

In other locations we are implementing our PL2020 project, which aims to improve working environment and put all our employees in A+ class buildings. While choosing new office buildings, we consider their BREEAM or LEAD certificates, green areas and municipal waste management system.

In order to reduce electricity consumption in other Orange Polska’s facilities, we have replaced over 3,300 fluorescent lamp fixtures over three years, saving 320 MWh of energy in the process. We have also modernised light sources in our sales outlets, replacing traditional or halogen lamps with LED lighting, saving about 340 GWh of energy annually.

We put much attention to the environmental education of our employees. We carry out informational campaigns to encourage them to care for the environment. In our offices we have stopped using bottled water, thus eliminating 500,000 bottles or 10 tons of plastic annually.

We offer ecological transport and training in eco-driving to our employees. We have implemented the ‘Take a Car’ car-sharing system in 35 car rental outlets in 22 cities, increasing the efficiency of using our car fleet. A modern reporting system enables us to adjust the number of cars to the real needs of our employees. On average, we have 1,050 car rentals monthly. Having equipped our cars with GPS systems, we carry out a campaign for safe and economical driving. It has involved driving style assessment, eco-driving competition for 1,500 drivers, and Hour for Life classroom training for 520 people. Furthermore, we have provided electric cars and charging stations to our employees in Warsaw. Our offices have rooms for tele- and video-conferences, thus reducing the need for business trips.

Volunteering programme

Volunteering programme allows socially engaged people to share their knowledge and positive energy with others. Orange Polska has the biggest employee volunteering programme in Poland. It has been running for over 15 years. It is organised by the Orange Foundation in Poland and engages nearly 3,500 volunteers each year. The programme is based on “competence volunteering. Our employees share their knowledge, skills and experience and teach children how to use the internet safely and wisely, how to program and how to use new technologies creatively to develop the potential of kids. Every year during the “Christmas with Orange Foundation” campaign, our volunteers play Santa and visit kids in hospitals and orphanages. We invite our volunteers to get involved in two programmes developing digital skills: MegaMission and #SuperCoders. These projects are addressed to school children and teach the basics of programming, graphics editing and creating video materials, but also a critical approach to content found on the web. Our employees take part in important community activities and in events organised by Orange Polska (e.g. Orange Warsaw Festival). Each Orange volunteer is welcome to develop their own volunteering project and apply for a grant for its implementation. Every year we award grants to approximately 100 local projects.

Corporate volunteering

% of employees involved in corporate volunteering

Responsible leadership

Orange Polska joined the Responsible Leadership Council. The Council is an initiative of the Responsible Business Forum. It is to be a co-operation forum comprised of male and female CEOs and board members of Responsible Business Forum’s partner companies. The goal of the Council is to introduce to the public debate in Poland the voices of the CEOs convinced of the benefits of running business in an ethical way. The representative of Orange Polska in the Council is Bożena Leśniewska, Vice President of the Management Board for Business Market.

Orange Polska is a partner of the Pro Bono Coalition (formerly CEOs-Volunteers Coalition). The goal of the Coalition is to discuss social involvement among business leaders, and to promote pro-social attitudes and behaviours by showing positive examples of top managers who share their time,experience, knowledge and skills as part of voluntary campaigns. Orange Polska’s representative in the Coalition is Jacek Kowalski, Board Member for HR.