PRESS RELEASE Paris, November 16, 2016 THIRD-QUARTER 2016 REVENUES Some 400,000 ew ladlie ad mobile subscribers durig the quarter Free was oce agai Frace's leadig recruiter of mobile subscribers, with a growig weightig of the 19.99 per moth offerig withi et adds Double-digit reveue growth for Mobile services (over 12%) Ogoig sustaied ivestmet i ultra-fast ladlie ad mobile etworks Free raked the best operator i Frace i a customer satisfactio survey carried out by the cosumer magazie 60 millios de cosommateurs 1, ad MobiNEX ames it as the third-leadig operator worldwide i terms of the quality of experiece delivered by its mobile data etwork 2, thaks to the quality of its 4G etwork 1 Customer satisfactio survey o mobile telephoy ad ladlie Iteret (i.e., via a box) carried out olie with 5,985 readers of 60 millios de cosommateurs betwee August 30 ad September 16, 2016 ad published i the magazie's November 2016 issue (o. 520) 2 MobiNEX rakig: http://www.telco2research.com/articles/eb_mobinex-h1-2016 1/5
KEY OPERATING PERFORMANCE INDICATORS AT SEPTEMBER 30, 2016 Subscriber umbers Sept. 30, 2016 Jue 30, 2016 March 31, 2016 Total mobile subscribers 12,385,000 12,080,000 11,900,000 - Of which 4G 5,300,000 4,700,000 4,250,000 Total Broadbad ad Ultra-Fast Broadbad subscribers 6,327,000 6,261,000 6,216,000 Total umber of subscribers 18,712,000 18,341,000 18,116,000 Other idicators Sept. 30, 2016 Jue 30, 2016 March 31, 2016 Broadbad ad Ultra-Fast Broadbad ARPU (i ) 33.50 33.90 34.40 Freebox Revolutio ARPU* (i ) >38.00 >38.00 >38.00 Number of coectible FTTH sockets 4.0m 3.1m 2.8m Average 4G data usage (i GB per moth per subscriber) 4.4 GB 3.9 GB 3.8 GB * Excludig promotios CONSOLIDATED THIRD-QUARTER 2016 REVENUES Cosolidated reveues for the first ie moths of 2016 rose by more tha 6% to 3,480 millio from 3,271 millio for the same period of 2015. This growth was primarily drive by the Mobile busiess, whose reveues climbed by over 11% to just uder 1.5 billio. Reveues for the Ladlie busiess were up 3% year o year at almost 2 billio. I millios Nie moths to Sept. 30, 2016 Nie moths to Sept. 30, 2015 % chage Q3 2016 Q3 2015 % chage Mobile 1,495 1,343 +11.3% 521 463 +12.5% Ladlie 1,994 1,936 +3.0% 665 651 +2.2% Itra-group sales (9) (8) +12.5% (3) (3) 0.0% Total cosolidated reveues 3,480 3,271 +6.4% 1,183 1,111 +6.5% 2/5
Mobile busiess The Group's Mobile busiess saw aother period of strog growth i third-quarter 2016, with 305,000 et adds. Reveues for the quarter rose by more tha 12% year o year to 521 millio, brigig the year-to-date reveue figure to 1,495 millio. The sigificat evets of the quarter for the Mobile busiess were as follows: A solid commercial performace. By stadig out from the competitio for the depth ad breadth of its offerigs ad uchaged prices, Free was Frace's leadig recruiter of mobile subscribers for the 19 th quarter i a row 3, with et adds amoutig to more tha 300,000 durig the period. Free is the oly operator i Frace to offer a pla costig less tha 20 per moth that icludes (i) roamig from all Europea Uio coutries, the Uited States, Australia, Caada, Icelad, Norway ad Israel, ad (ii) 50 GB of 4G iteret. At September 30, 2016, Free had 12.4 millio mobile subscribers, represetig a market share of almost 18% 3. Ogoig excellet take-up for Free's 19.99 per moth pla ( 15.99 per moth for Freebox subscribers), led by a icrease i 4G usage ad subscriber migratios from the 2 per moth pla ( 0 per moth for Freebox subscribers). The vast majority of the Group's ew subscribers are ow optig for the 19.99 per moth pla ( 15.99 per moth for Freebox subscribers), directly reflectig cosumers' growig appetite for mobile data usage. As a result, 43% of the Group's subscribers (i.e., 5.3 millio) are 4G subscribers. Their average mothly 4G data usage is ow 4.4 GB per subscriber. Free was raked the best operator i Frace i the latest customer satisfactio survey carried out by the cosumer magazie 60 millios de cosommateurs, with a overall 95% satisfactio rate for mobile telephoy services ad 92% for ladlie Iteret access services. Mobile services reveues up 12% year o year. This solid growth was achieved as a direct cosequece of the icreasig proportio of subscribers o the 19.99 per moth pla ( 15.99 per moth for Freebox subscribers), as the total mobile subscriber base rose by 9.5% durig the period. A rise i reveues from hadsets, otably due to (i) the success of the iphoe 7 ad (ii) the back-to-school period, which is geerally a time of strog hadset sales. Ladlie busiess Despite a extremely competitive operatig eviromet durig the third quarter of 2016, with umerous promotioal offers lauched by competitors, the Group kept up the excellet mometum i its Ladlie busiess ad accelerated the pace of growth, with reveues risig 2.2% to 665 millio. The sigificat evets of the quarter for the Ladlie busiess were as follows: A icrease i the Broadbad ad Ultra-Fast Broadbad subscriber base, with 66,000 ew subscribers, represetig a et add market share of 30%. I spite of the umerous promotioal offers lauched by other operators durig the period, the Group maaged to sig up such a large umber of ew subscribers thaks to (i) the strog reputatio of the Free brad ad the quality of the Freebox Revolutio, (ii) the measures take to erich its offerigs, otably by icludig ew ladlie destiatios i the Freebox pla, ad (iii) the olie flash sale carried out durig the back-to-school period. At September 30, 2016, the Group had a total of 6.3 millio Broadbad ad Ultra-Fast Broadbad subscribers. Broadbad ad Ultra-Fast Broadbad ARPU came i at 33.50, reflectig the impact of promotioal offers ad ufavorable seasoal effects (lower use of audiovisual 3 Mobile market i Metropolita Frace excludig M2M 3/5
services). ARPU for the Freebox Revolutio offerig remaied above 38 (excludig promotios). 2.2% year-o-year reveue growth for the period. SUSTAINED PACE OF FTTH AND 4G NETWORK ROLLOUTS Durig the third quarter of 2016, the Group cotiued to ivest i its ladlie ad mobile etworks, with: Some 900,000 ew coectible FTTH sockets added, brigig the total to 4 millio at September 30, 2016 compared with 2.5 millio at ed-2015. This icrease clearly demostrates the Group s positioig as a major player i Frace's ultra-fast broadbad market. More tha 700 ew 3G sites opeed, raisig the Group's total umber of 3G sites i service to over 7,500, eablig the Group's etwork to provide 3G coverage to over 85% of the Frech populatio at September 30, 2016. More tha 300 ew 4G sites opeed, eablig the Group's etwork to provide 4G coverage to over 73% of the Frech populatio at September 30, 2016. Free raked by MobiNEX (Mobile Network Experiece Idex) as the third-leadig operator worldwide i terms of the quality of experiece delivered by its mobile data etwork. This reflects the fact that the Group has created a deser 4G etwork thaks to the ew frequecies it has recetly obtaied (with 900 ew sites migrated to 1,800 MHz equipmet ad 200 sites to 700 MHz equipmet durig the third quarter of 2016). At September 30, 2016 the Group had some 2,200 sites equipped for 1,800 MHz ad over 200 sites equipped for 700 MHz. 4/5
GLOSSARY Broadbad ad Ultra-Fast Broadbad ARPU (Average Reveue Per Broadbad ad Ultra-Fast Broadbad User): Icludes reveues from the flat-rate package ad value-added services but excludes oe-time reveues (e.g., fees for migratio from oe offer to aother or subscriptio ad cacellatio fees), divided by the total umber of Broadbad ad Ultra-Fast Broadbad subscribers ivoiced for the period. Broadbad ad Ultra-Fast Broadbad subscribers: Subscribers who have siged up for the Group s ADSL, VDSL or FTTH offerigs. Freebox Revolutio ARPU (Average Reveue Per Freebox Revolutio Subscriber): Icludes reveues from the flat-rate package ad value-added services but excludes oe-time reveues (e.g, fees for migratio from oe offer to aother or subscriptio ad cacellatio fees), divided by the total umber of Freebox Revolutio subscribers ivoiced for the period. FTTH (fiber-to-the-home): Data delivery techology that directly coects subscribers homes to a optical ode (ON). M2M: Machie to machie commuicatios. Mobile services reveues: Mobile reveues excludig hadset-related reveues. Net adds: Represets the differece betwee total subscribers at the ed of two differet periods. Total Broadbad ad Ultra-Fast Broadbad subscribers: Represets, at the ed of a period, the total umber of subscribers, idetified by their telephoe lies, who have siged up for Free s or Alice s Broadbad or Ultra-Fast Broadbad service, excludig those recorded as havig requested the termiatio of their subscriptio. Total mobile subscribers: Represets, at the ed of a period, the total umber of subscribers, idetified by their telephoe lies, who have subscribed to a Free mobile offerig, excludig those recorded as havig requested the termiatio of their subscriptio. About Iliad Iliad is the paret compay of Free, the ivetor of the Freebox, the first multiservice box o ADSL. Free is behid umerous iovatios i the Broadbad ad Ultra-Fast Broadbad access segmet (VoIP, IPTV, flat-rate callig plas to multiple destiatios, etc.). Free provides straightforward ad iovative offerigs at the best prices. The Freebox Revolutio, the 6 th geeratio of Freebox uits, otably icludes a NAS ad a Blu-Ray TM drive. Free also offers the Freebox mii 4K, the first Adroid TV TM ad 4K box o the Frech market. Free was the first operator to iclude calls from ladlies to mobile phoes i its offerigs ad also calls to Frech overseas departmets (DOM). Sice Jauary 2012, Free has brought mobile phoe usage withi everyoe's reach with straightforward, o-commitmet offerigs at very attractive prices. Sice 2015, subscribers ca use their Free Mobile Pla for 35 days per year ad per destiatio (excl. 4G) whe they are travelig i all Europea Uio coutries, the Uited States, Caada, Israel, Australia, Norway ad Icelad. As at September 30, 2016, Free had early 19 millio subscribers (over 6 millio Broadbad ad Ultra-Fast Broadbad subscribers ad more tha 12 millio mobile subscribers). Exchage: Euroext Paris Market place: Eurolist A of Euroext Paris (SRD) Ticker symbol: ILD ISIN Code: FR0004035913 FTSE classificatio: 974 Iteret Member of Euro Stoxx, SBF 120, CAC Next 20, CAC Mid 100 5/5