Orange Polska Stock

Good morning. Thank you for standing by. Let me welcome you to Orange Polska conference call in which we will summarize our results in the second quarter and the first half of 2026. My name is Leszek Iwaszko, and I'm in-charge of Investor Relations. The format of the call will be a presentation made by management team followed by a Q&A session.

Speakers for today will be CEO of Orange Polska, Liudmila Climoc; and Jacek Kunicki, CFO.

Let me now pass the floor to Liudmila to begin the presentation.

Thank you, Leszek. Good morning, and welcome to our conference summarizing second quarter of 2026, and let's start on Slide 4. I'm very pleased to share with you on our progress for the first 6 months of the year. Within this time, we were focused on our priorities set in Lead the Future strategy, pursuing brave commercial agenda, investing in our network and implementing transformation initiatives for our operations. And it all starts with profitable growth, which was excellent across all our business lines.

Firstly, in core telecom services, we successfully combined healthy pace of growth of customer bases and improving ARPO dynamics. And I'm very happy that Orange Polska was the leader in mobile number portability for the second consecutive quarter with net gain for Q2 of 20,000 customers.

Secondly, it was a particularly good quarter for B2B. Revenues in IT&IS increased by as much as 50% in second quarter, thanks to an accumulation of contracts won. In addition, we signed the first major contract for the defense area, which we see as a significant milestone for future development. And finally, wholesale sustained very strong momentum, growing revenues by double digit despite lack of national roaming contract, which expired last year. These strong commercial achievements were combined with progress in our transformation program as we strive towards high efficiency, and it is visible through indirect costs, which were flat if we compare year-over-year.

And all that is translated into strong financial results. In H1, revenue growth exceeded 7% and EBITDA (sic) [ EBITDAaL ] growth exceeded 6%. And as a consequence of a strong first half of the year, we are confident in right execution of our strategy, and we are more optimistic regarding our future prospects.

Let's review these achievements in more details, and I will start with commercial activity on next slide. So our commercial performance in Q2 was successful both in volume and value. These trends are key to today's value creation, but also give us confidence for quarters to come. And starting with mobile, where results were particularly excellent. Net customer additions exceeded 80,000.

And as I have mentioned already, we were again the winner of number portability with a big advantage. This demonstrates that the strength of our multi-brand strategy and also confirms that customers continue to value the quality and our always-on connectivity. For the mobile ARPO, growth improved, exceeding 2% as we monetize our value strategy. It was driven by acceleration in the main brand on consumer market and an improvement in B2B. And as a result, we have reached a well-balanced volume-value growth in mobile, which was not that evident in the previous quarters.

Moving on to fiber. Customer base increased 10% year-on-year. Net customer additions were similar to a year ago, and we see it as a very strong achievement despite fierce competition, which we see in this area. In second quarter, we increased our footprint for high-speed broadband by 900,000 households in Hybrid Fiber Coax, HFC technology of getting access to one of the wholesalers network. Over the time, this footprint will be further increasing and will be gradually upgraded to FTTH standard. And this new infrastructure creates a new fishing pool for us for growth in our very high broadband services.

Strong mobile and fiber were accompanied by further growth in convergence with the pace of growth in line with Lead the Future strategy. Convergence remains key to value creation on consumer market. It already penetrates our customer base in a very high proportion. And that's why we are focusing on reaching new households not yet using our services with fiber or mobile services. And we are quite successful with that in the first half of 2026, the number of households where Orange is present with our services was growing, offering promising prospects for the future. And strong results of core telecom services were accompanied by a strong performance in B2B and wholesale.

And I would like to zoom in on it on next slide, Slide 6. So common feature of these 2 business lines is that their revenues include both recurrent streams and boosts from particular big deals. And if we want to achieve strong growth, we need both of these streams. And we see it well reflected in the results of the second quarter.

Starting with business market, if you remember our priorities for 2026 that we were presenting in February, one of them was to achieve profitable growth in B2B. And I am pleased to confirm that this is clearly happening. It is driven by constantly improving trend in telco services and the accumulation of contracts won in IT&IS. And additionally, we have signed a first major contract in the defense sector. And I hope that this will open new market opportunities for value creation.

And switching to wholesale. It sustained great momentum in H1 with a particularly high 17% growth -- revenue growth in Q2. And this is despite the absence of revenue from national roaming contract. It was driven by a consistent growth in wholesale fiber access and big deals in infrastructure rental. This should remind us that wholesale is our strategic line of business, complementing our retail operations and balancing our risk profile.

And now we have discussed all 3 business lines, which build growth of our revenues and margin. And the missing element for EBITDA is cost transformation. And I invite you to look on next slide, Slide -- on Slide 7. Under the Lead the Future, we have launched a new wave of transformation focused on improving efficiency, expanding margins and strengthening our cash generation. It covers all areas of our business, and you can see the pie chart on the slide illustrating it.

Its key levers are automation, processes reengineering and opportunities from integrating AI in our operations. And the key measure of its overall progress is the evolution of indirect cost. Indirect, so it is not directly linked to revenues. And our aim to keep these costs flat despite growing business and despite growing investments in our networks. This enables high operating leverage and as a result, allows us to floor our revenues in EBITDA and consequently into the cash. And we are very pleased that this transformation is progressing well and that underlying indirect costs were flat year-over-year if we look on first 6 months of this year.

Now you have seen that strong H1 results were a combination of strong commercial execution and also a solid progress in our cost transformation. It allows us to be more optimistic regarding the future. And just to illustrate it on the next slide. As a consequence, we are raising our full year guidance in most areas, so for revenues, for EBITDAaL and for organic cash flow. Following the exceptional revenue growth to date, we now expect full year revenues to grow by low to mid-single digit in percentage. This will translate into EBITDAaL that we expect to grow at above 6%. So an important improvement versus our initial estimate.

We have decided to guide above 6% as perfect execution in second part of the year could see us landing above this level. And finally, we are raising operating OCF cash guidance to at least PLN 1.2 billion. This means that we plan it to grow by more than 20% in 2026. This guidance is underlining our determination to grow our financial output and to create values for our shareholders.

This is all for me as for now, and I hand over the floor to Jacek to walk you through the details of our financial results.

Thank you, Liudmila. Good morning, everyone. Let's start the financial review on Slide 10 with the highlights of our performance this quarter. I am very pleased with our financial results in Q2. We have increased our revenues, profits and cash generation. Revenues were up by 12% year-on-year, a solid, consistent development of core telecom services was coupled with exceptional growth of revenues from IT&IS. High top line was coupled with cost savings. And in turn, this drove the 3% EBITDA growth in the second quarter. This is a strong achievement, especially as we note that the second quarter of 2025 included a PLN 75 million positive one-off from the rollout agreement, so the comparable base was very high.

Solid revenue and EBITDA in Q2 enabled us to achieve excellent results for the first semester with 7.5% (sic) [ 7.6% ] revenue uplift and a 6% (sic) [ 6.2% ] growth of the EBITDA. High operating results were coupled with CapEx discipline. And as a result, we have significantly increased our net income by 24% year-on-year and our organic cash flow by 43% year-over-year, both viewed for the first semester. These are very strong results based on solid underlying trends. They give us an increased level of confidence for the future as evidenced by the guidance uplift described by Liudmila.

Let's now look into the sources of these achievements, starting with top line on the next slide. Q2 revenues grew by 12% year-on-year, an exceptionally steep dynamic. This combined a solid, consistent performance of core telecom services and a very strong growth of the less recurrent areas such as IT&IS and wholesale. Revenues from core telecom services increased by 5% year-on-year. Similarly to the first quarter, this reflected a strong above 6% growth of all postpaid service revenues and a natural slowdown in prepaid following its steep growth in 2025.

Consistent development of core telecom service revenues is fueled by the rock-solid growth of the customer bases on ARPUs. Good growth of core telecom revenues was coupled with an exceptional 50% increase of revenues from IT&IS. This quarter, we benefited from a big accumulation of contracts for digital transformation and IT infrastructure upgrades. This demonstrates that market conditions are improving and that we are able to grab those opportunities due to our large portfolio of competencies and relevant experience.

We continue to observe a solid pipeline of projects for H2. However, we note that the Q2 dynamic was exceptional, and we expect less spectacular growth in the second semester from IT&IS revenues. Top line also benefited from a very solid growth of wholesale, which was fueled by infrastructure contracts and IoT equipment sales in the B2B.

To sum up, Q2 revenue dynamics was exceptionally high as consistent solid performance of core telecom service revenues was coupled with extra growth from big contracts. Revenue achievements in H1 lead us to increase the full year guidance even if we expect a slightly slower but single-digit growth in the second semester.

Let's now look at how we turned these higher revenues into profitability on Slide 12. Our Q2 EBITDA has increased by 3% year-on-year. We're very pleased with this result, especially as last year's EBITDA included the large one-off from the fiber rollout agreement for our fiber that I already mentioned. This shows that the underlying growth of Q2 was indeed very strong, which was driven both by an accelerated growth of the direct margin fueled by revenues and by solid benefits of our cost transformation.

The direct margin increased by more than 6%, an outstanding dynamic that followed strong revenue growth across all business lines. It mainly reflected the growth of the high-margin areas such as core telecom services and wholesale, but it also benefited from the exceptionally high IT&IS sales. This last item carries much lower margins versus core telco, but still delivers a direct margin rate in the area of close to 20% and an EBITDA contribution close to the 10%, 12% mark.

Our indirect costs were flat year-on-year, apart from the impact of the already mentioned fiber rollout one-off last year. We benefited from the cost transformation program and made efficiency gains in network operations, employment and property maintenance costs. As a result, we preserved a high operating leverage, and we are able to convert revenues -- revenue growth into higher EBITDA. This result enabled us to reach over 6% EBITDA growth for the first semester. And as you have seen, we expect this dynamic to hold or even accelerate in H2. With this, Orange Polska will reach its highest EBITDA growth rate in many years.

Now let's look at net income on the next page. Our net result amounted to PLN 580 million (sic) [ PLN 576 million ] in H1, growing by 24% year-over-year. There were 2 drivers of this increase. Firstly, the strong EBITDA growth discussed a moment ago. Secondly, high gain on asset disposals as we executed large real estate transactions, selling properties that we no longer need as we transform our operations.

These were partly offset by higher depreciation linked to the 5G license that we've acquired last year and a change in CapEx structure, evolving into assets with shorter useful lifetimes such as IT software. H1 results puts us on a solid path for a significant growth of net income for the full year.

And now let's switch to CapEx on Page 14, Slide 14. Our economic CapEx amounted to PLN 725 million in H1, so 9% down year-over-year. The difference resulted entirely from the PLN 100 million higher proceeds from real estate disposal due to the very good results achieved this year.

CapEx spending was on a comparable level to last year. In line with our strategic priorities, we allocated almost 40% of capital expenses to access networks. In fixed, this is mainly fiber rollout in white zones, a project that will be completed before year-end. In mobile, we are deploying the 5G network, now reaching almost 90% of population and finalizing the renewal of our radio access network. Another 30% of CapEx is dedicated to core and fixed network as we are expanding the capacity of our networks to deal with the growing traffic. Finally, we've spent just over 30% on IT with focus on projects to support process efficiency through digitalization, both on the front desk and in the technical and support areas.

Finally, a quick look at the cash flow on Page 15. We generated close to PLN 0.5 billion of organic cash flows in H1. This was PLN 150 million or 43% more than in H1 of last year. It was driven predominantly by the strong growth of the EBITDA, coupled with higher cash from real estate disposal. We also benefited from less cash CapEx with lower payment for prior year's investments than in H1 of 2025. However, this was offset by a higher need for working capital as a result of the great revenue growth in IT&IS, equipment, but also in the core telecom services areas in H1 of this year. As a takeaway, we're happy with cash generation in H1. We also expect a solid H2, and we are eyeing the above PLN 1.2 billion of organic cash flow for the full year.

This is all from me for now, and I hand the floor back to Liudmila. Thank you.

Thank you, Jacek. So summarizing, just illustrating the bullet points, which you see on Slide 17. Our commercial and financial results in second quarter and first part of the year were strong. They not only give us confidence to upgrade full year guidance, but also constitute a great platform for growth in the future. And in the same time, demonstrate that disciplined execution of Lead the Future strategy is bringing desired results. This gives us even stronger determination to execute on commercial actions in the upcoming peak season and to focus on new transformation initiatives, but also to take more midterm perspective and to launch new actions that will fuel our growth in the years to come.

This is all for us. And now we are ready to take your questions.

Thank you. Switching now to Q&A session. Let me read the instructions first. [Operator Instructions] We are as usually prioritizing questions from voice questions. The first question is coming from the line of Dominik Niszcz from Trigon.

Dominik from Trigon. I would like to ask 2 questions. So first is on wholesale revenues. In the second quarter, it's up by PLN 34 million. So I was wondering, should we view this temporary? Or do you expect this infrastructure projects to be more like a recurring contributor or it's just a fluctuation from quarter-to-quarter, so this was exceptional quarter? And what was the scale maybe if this was kind of not recurring?

Thank you for your question, Dominik. So when you take a look at wholesale, obviously, it is driven both by the recurrent streams of revenues such as rentals of our infrastructure on a subscription basis or sale of BSA accesses for the wholesale customers. And this is very often then fluctuating as we have additional impact of the -- of large projects. So wholesale is, I would say, it has a base that is recurrent, but then it's fueled by nonrecurrent projects.

So yes, we did see Q2 impacted by over PLN 20 million of nonrecurrent projects. But what I would really emphasize is that we, first of all, have grown year-over-year despite losing the revenues from national roaming. So that is about -- that was about an PLN 11 million negative impact, and is PLN 11 million in Q1 and PLN 11 million in Q2. We've had to offset this.

And then what I would mention is we are already heavily working on additional projects to come in the second semester that if we are able to execute them properly, will also give us quite nice upside and enable us to continue to grow revenues in H2.

So it's not that we've run out of one-off projects. It's that wholesale is a lot about nonrecurrent projects, and we are working and developing those projects, and we're quite confident that wholesale will continue to deliver quite nice revenue growth.

Okay. That's clear and optimistic. And one more question on data centers. So with this AI and data center investments like accelerating globally, but also across Europe, does Orange Polska see opportunities through partnerships or some connectivity-related services to gain higher scale in this area? We've heard about the cooperation with Morrison in France by your parent company just yesterday. So is this the path you are looking for as well?

Another relevant question. What I would say is that today, we have a meaningful data center business already as we are providing colocation for our business customers. And then obviously, on top of that, a number of services, starting with connectivity, security, remote maintenance, energy guarantee and so on, the usual package for data centers. These are not AI-driven data centers. So they are with a low energy intensity. And usually, they are located next to the data centers that we have for the purposes of Orange Polska, so for our internal needs.

And this represents on an incremental level, an attractive business model because we are using the space that has already been developed for Orange Polska purposes. We do not envisage today huge projects such of the scale, as you have mentioned, and targeting the AI boom, but would rather be continuing to look for ways to serve our business customers with this low-intensity data center services. And here, obviously, we are not close to needing to own data centers. We can just as well rely on trusted partners, reliable partners, such as we do with fiber, where not only do we have [ Swiatlowod Inwestycje ], which is co-owned and not entirely owned.

But also please note that a significant part of our coverage relies on wholebuy tactics. So for pure data center connectivity, I would say we are open for all forms of gaining access to infrastructure to serve our customers, while obviously, our unique advantage is to be able to provide the value-added services on top of the basic colocation services that are usually offered by the pure data centers.

Next voice question will be coming from the line of Ali Naqvi from HSBC.

Can I just get your view on capital allocation for any non-telco M&A such as real estate if there was a chance deals that would be available in the end? And then, is...

I'm sorry, Ali. Could you repeat your question slowly? We have quite a poor line from you. So we have a hard time to get your question.

Great. First one is your policy on non-telco M&A, for example, in real estate, if you have anything to say on that? And then in terms of your uplift in guidance for 2026, are there any scenarios? Or is there any update to give a view on your medium-term guidance, whether you could raise that as well?

Thank you very much for your question. So I will start with the M&A. Here, we're very consistent. We would not be open to venture far out away from the telco side. The 2 areas of M&As that we are open to, and historically have been open to is on the one side, the potential increase of our competencies in the ICT area, where we've done a number of M&As historically, and where, obviously, we need to be relatively selective as to which exactly competencies would be potentially wish to acquire.

And on the other hand, the infrastructure -- fiber infrastructure where we are an active participant on those infrastructure projects, the last one being the ongoing process of acquiring Nexera together with APG. And those would be pretty much the only areas that we will be looking at right now. We're not really eyeing any M&As that would be outside the core business.

Now I think regarding the EBITDA, what I would say is, first of all, we need to understand where this guidance revision, upward guidance revision stems from. So we're happy with the growth that we've seen so far for 2026, and we're happy with the sources of growth. And the way that I would put it, it's in 3 steps.

This guidance revision and growth stems from, one, strong sustainable growth across the recurrent business. So core telecom services, we've seen great trends in H1. We think they will be continued in H2. Plus, we see support from big deals. We've seen very nice revenue growth and converting into also EBITDA support in B2B with continued and will continue good growth from wholesale. And number three is another plus. So a great contribution of our cost transformation, and this has visibly accelerated this year.

So that gets us to guiding above 6%. As -- and as Liudmila mentioned, perfect execution could take us even 1% to 2% higher. Now as far as H2 expectations, obviously, we expect slower -- relatively slower revenue growth versus the one that we observed in Q2 as IT&IS was truly exceptional. But at the same time, we expect rock-solid revenue and margin from core telecom services. So that is, in fact, translating into EBITDA growth that would even be higher -- could even be higher in H2 than the one that we've seen in H1.

Now what is great about this dynamic is that both core telecom services and cost optimization provide a recurring effect. So we should be able to enjoy their benefits in the future. Now repeating this year's forecast would obviously also require for sizable additional big deals. And it's a bit early to be eyeing this right now. We are in midyear. But our 2026 performance is definitely creating a good platform for further growth in the future.

And our midterm EBITDA guidance is a low to mid-single-digit percentage CAGR. So today, we stick to this. But clearly, our ambitions are at the high end of this guidance. We will be doing our annual business planning in H2 of this year. And we will definitely address, well, next year's guidance, but also give you a better outlook for 2028 together with the full year results, so in February of 2027.

We have no more voice questions as of now, but we have text questions that came to us from Pawel Puchalski from Erste Brokerage. Three questions. First question is, in Q2 '26, we observed PLN 200 million top line consensus beat and near PLN 6 million EBITDA beat. Is that actual margin or on ICT or more profits would be recognized in coming quarters? That's the first question. Maybe we will take them one by one.

Sure. So thank you, Pawel, for the very relevant question. I believe I mentioned part of the reasons when commenting the EBITDA. So while we have indeed noted very steep growth of revenues from IT&IS, we need to remember that IT&IS carry much lower margins than the incremental margin by extra core telco revenue. So this is where the EBITDA contribution of this extra revenues, it is about 10% this quarter.

So that I hope explains to you why the PLN 200 million top line beat, which was I believe, mostly about IT&IS. I do not have the details per product line of consensus, obviously, but I do believe that this was mostly about IT&IS. It's not translating into a spectacular bit of the EBITDA. And so congratulations to everyone that was forecasting well and had faith in our ability to deliver EBITDA growth despite this big one-off in Q2 of last year because all of you guys have actually had faith that we will deliver a very strong underlying growth, and we're happy with this.

Then the next question, I will read, but I believe this was already at least partly answered. It concerns OCF guidance, following '26 OCF guidance increased by PLN 0.1 billion. Should we assume it would result in your 2028 OCF guidance or maybe '26 OCF is related uniquely strong real estate asset leaving midterm OCF outlook unaffected?

I think it's worth answering this one directly because it's about organic cash flow before we comment more about EBITDA. So thanks for spotting this one, Pawel. I would say, first of all, this year's OCF looks indeed to be very strong. At least 20% growth to reach more than PLN 1.2 billion. It is a remarkable achievement for a telco. So we're happy with this, and we are confident in our ability to deliver.

It will be an outcome of both the strong profitable revenue growth and operating costs that we have envisaged in the EBITDA guidance, but also disciplined CapEx, enabling the EBITDA growth to flow through to the organic cash flow. As you remember, our eCapEx guidance, it's broadly stable versus last year. So it is not about a huge cut of a huge, I would say, nonrecurring one-off cut to the eCapEx, but the strong OCF growth is rather about a very good result expected on the EBITDA side.

So that is, I would say, the -- really the bright side of things is the quality of this -- of the sources of the EBITDA growth. And CapEx is merely there, first of all, to finance the future growth because this is why we want to invest CapEx and also the CapEx discipline, so to enable that EBITDA growth to flow through to organic cash flow.

Now looking into the future, I would say, on the one hand, we note that this year's EBITDA growth is supported by large deals. And this year's organic cash flow is obviously supported by the sale of real estate. And over the course of the next years, the real estate proceeds will be diminishing as we will be progressively selling all that we have and are not using. On the other hand, we have a good track record of developing new growth levers and of outperforming our targets, and we are very motivated to maximize shareholder value.

So I do believe that there is a case to be optimistic for the future. But now we're concentrating on reaching this year's goals. There's a lot of execution to be done. We will refresh the plans for the next 2 years in H2, and we'll address the topic in more detail in February.

The last question of Pawel is following '26 OCF growing 20% year-on-year, should we expect your 2027 DPS also growing by 20% year-on-year?

So Pawel is following through all the way to the dividends. Thank you. I think it's clear that for us, the dividends are an important part -- an essential part of value creation to our shareholders. So we're looking and we're working hard to create the financial conditions to be able to offer sustainable growth of the dividend.

Today, by increasing the guidance, we're demonstrating that our actions are bearing fruit. And we're progressively delivering those better financial outputs. Whenever we analyze dividends each year, we look into the midterm projections for our profitability, our cash generation and the balance sheet. These will inevitably include the PLN 400 million cash outlay for the 1,800 spectrum renewal in '27 and some other renewals after 2028, but also they will include our updated expectations for profitability and cash generation.

And this will follow the financial planning process in H2 of this year that I've already mentioned. And that's why we will address the question of the next dividend in February together with the full year results. But I hope that you can understand the logic that we take in determining each year what is the next level of the dividend that we pay going forward.

We have a follow-up question -- text question from Dominik Niszcz from Trigon. You mentioned a new defense contract in the shareholder letter. Can you share more details and what defense capabilities does Orange Polska aim to develop over the coming years?

Thank you, Dominik, for spotting it. And indeed, we see the contract as a significant milestone, although we are bound by confidentiality. So you can -- you appreciate that we will be rather general in comments. Our relationships in the defense sector in Poland is a long-lasting one. And obviously, now the sector is becoming even more important in current geopolitical landscape, and we see growing demand.

And what we can -- what I can say is that the contract is an evidence that technology and modern infrastructure play an important role to strengthen defense and security in Poland. We see it also as an important step for long-term value building in this market segment. It is not new for us. We are working in this area for quite a long time. And now we are intensifying efforts working on a wider scope of solutions, which could serve defense and security needs not only of public, but also in private sectors. As for this particular contract, you need to expect and we plan that this contract will contribute to our results gradually starting with 2027. So it is not yet reflected in our H1 numbers.

Thank you. It appears we have no further questions, either voice or text. So thank you very much for participating. Enjoy the rest of the summer. And please send us a notice you wanted to meet us on one-on-ones. We are always open. Unless...

See you at the latest in October and on conferences and roadshows in between.

Thank you. Bye-bye.

Thank you. Bye.

Thank you very much.

Good morning. Thank you for standing by, and let me welcome you to Orange Polska conference call in which we will summarize our results in the first quarter of 2026. My name is Leszek Iwaszko, and I'm in charge of Investor Relations.

The format of the call will be a presentation by the management team followed by a Q&A session. Speakers for today will be our CEO, Liudmila Climoc; and CFO, Jacek Kunicki.

Let me now pass the floor to Liudmila to begin the presentation.

Thank you, Leszek. Good morning, and welcome to our conference summarizing first quarter of 2026.

I will start with Slide 4. I'm very happy to report that we have started the year very well, both commercially and financially. Our commercial performance was solid as we achieved healthy growth of customer bases and ARPO across all subscription services. I'm particularly pleased that in the third quarter, Orange was a leader in mobile number portability. This is a big advantage [ to ] our competitors.

Moreover, in line with our balanced volume value approach, we uplifted prices for all our services in first quarter, which will fuel our growth for future.

It was also another good quarter for our wholesale operations. We generated a very solid 6% revenue growth despite the multiyear national roaming contract, which is now over as from beginning of 2026. And we also see a very good pipeline for Q2. It confirms that wholesale is our strategic growth engine complementing our retail operations and improving our risk profile.

Our financial results were outstanding as we closed the quarter with close to 10% EBITDA -- EBITDAaL growth and significant improvement in cash generation. And I propose to zoom on highlights of our commercial activity on the next slide.

So our commercial performance, commenting on it for first quarter, reflected very strong customer demand and our focus on value as well as intensive market competition, especially in fiber. In convergence, both customer volumes and ARPO grew at a good pace, with 4% growth of customer base, which is in line with a run rate that we projected in Lead the Future strategy.

This ARPO increasing by more than 4%, benefiting from our value approach and pricing, with good demand for content and popularity of higher-speed packages -- fiber packages.

Fiber customer base increased 10% year-on-year. It is a very good dynamic considering intensive and diverse competitive landscape. Fixed broadband ARPO is up with 3.7% year-on-year, which reflects a solid growth, which is normalized after an exceptional performance in 2025.

Mobile had another strong quarter, with net customer additions of above 70,000. As I already mentioned, for the first time in a few years, we were the winner of number portability by a big advantage.

The win was driven by our main Orange brand on the consumer market in postpaid and prepaid. But also Nju, our B brand Nju and Flex were strongly contributing. We achieved this, thanks to a combination of both local marketing actions with our superior connectivity and comprehensive service.

Mobile ARPO continues to reflect 5% growth of the main brand and the change in the mix of customer base towards lower ARPO in B brands. These are very solid results achieved despite challenging competitive environment. Successful commercial activity is our main priority, is an anchor of our Lead the Future strategy and value creation. And we are -- we have quite a busy commercial agenda for second quarter. So you need to stay tuned.

Thank you. As for now, and I hand over the floor to Jacek.

Thank you, Liudmila. Good morning, everyone. Let's start the financial review on Slide 7 with the highlights of our performance. Our financial results in the first quarter were excellent across the board. Revenues increased almost 3%, driven by solid core telco and wholesale dynamics.

The EBITDA grew by 9.5% year-over-year. Its outstanding dynamics reflect a strong underlying growth as well as a onetime gain from VAT relief for prior year's bad debt. The net income reached almost PLN 300 million in Q1, growing by over 50% year-on-year. It was driven up by strong EBITDA and by high gain on real estate disposal.

Next, PLN 300 million eCapEx figure for Q1 reflects a slow start of investments due to harsh weather conditions in winter as well as the already mentioned proceeds from high property disposals.

Finally, the organic cash flow improved by PLN 175 million year-on-year due to the strong EBITDA growth combined with lower CapEx. Q1 naturally reflects a seasonally high working capital requirement. So it is the year-on-year comparison that really matters. And this quarter, it is very strong.

Let's now review our Q1 results in more detail, starting with the top line. Q1 revenues grew 3% year-over-year, fueled by progress in all key business lines. Revenues from core telecom services increased by nearly 5% year-on-year, and this is in line with our expectations. I will break this item down into 2 elements so that we have a proper understanding of the trend.

Firstly, all postpaid services, so convergence, fixed broadband and mobile postpaid, their combined revenues grew nearly 6% year-on-year, so exactly as much as in the prior period. We're keeping a very solid trend. This was fueled by a consistent growth of their customer bases and their respective ARPOs.

Secondly, prepaid, where we record just over PLN 200 million of quarterly revenues. The dynamics have naturally slowed down versus the elevated trends that we recorded in 2025. And just to bring this into the perspective, prepaid revenue dynamics were usually flat to negative as customers progressively migrate to postpaid.

However, in 2025, we lifted prepaid revenue to a double-digit percentage year-over-year growth, with price hikes for almost the entire customer base that were done in Q1 of 2025. This is highly value accretive as most of these additional revenues are now recurrent. However, we are now measuring the year-on-year progress versus a much higher comparable base, and prepaid is back to its flattish growth status, however, on the increased level.

Then revenues from wholesale posted a solid 6% year-over-year growth despite the end of the national roaming contract. Here, we benefited from the fiber backhaul deal signed in H2 of 2025, although its contribution was much lower than in Q4 of last year. We benefited from infrastructure rental services as well as from a consistent 40% year-on-year growth in the number of fiber accesses that we sell through our wholesale customers.

Finally, revenues from IT&IS have increased by 7% due to higher value of integration and networking projects realized by the B2B.

To sum up on the revenues, we are satisfied with the pace of revenue growth in Q1. Secondly, we see good prospects for Q2 in the key lines of business, with strong trends in the B2C and solid project pipelines, both in the B2B and wholesale areas.

Let's now take a look at profitability on Slide 9. Our Q1 EBITDA increased by an outstanding 9.5% year-on-year. It is driven by a 6% underlying growth, reflecting strong business trends. Our direct margin grew by 4.5% year-over-year, benefiting from a strong growth of core telecom services, wholesale and IT&IS.

We're pleased with a very solid dynamics in the B2C and with the improving trends of margin in B2B, where margin recovery is amongst our top priorities for 2026.

We've also built up an encouraging pipeline of projects for the second quarter, both in the B2B area and in wholesale. These are strong assets in face of an unstable macro and supply environment, so we are optimistic ahead of Q2.

Our indirect costs were flat year-over-year, preserving our high operating leverage. We benefited from efficiency gains in network operations, in the employment optimization and lower cost of property maintenance. Our transformation program is accelerating, and so we should enjoy its further benefits in the future.

Apart of the strong underlying performance, the EBITDA has also benefited from a PLN 28 million onetime gain related to the VAT relief on prior year's bad debts.

Let me briefly explain this last item as well as its consequences. So we sell overdue receivables through factoring. So far, we were paying the nominal amount of VAT on these despite selling them below face price value. We have obtained a favorable court ruling, and we can now pay VAT in proportion to what we recovered through factoring.

As a result, we have recovered the overpaid VAT for 2019 and 2020. There is an additional PLN 45 million more to be recovered over the course of the next 2 to 3 years. As a consequence, we've also modified our VAT settlements for current bad debts and adjusted our balance sheet accordingly.

Finally, from Q1 onwards, we're also recognizing slightly lower bad debt costs in the current P&L. As a takeaway, we are pleased with the Q1 EBITDA. What is particularly encouraging are strong underlying trends and the commercial pipeline that we have developed for Q2. We are now clearly aiming at the upper end of the 2026 EBITDA guidance.

Thank you, and I hand the floor back to Liudmila.

Thank you, Jacek. Let me summarize and present you our focus for next month. So as you see, we've started the year very well. We are happy with our commercial and financial performance in first quarter. It provides us with strong momentum towards the achievement of our annual ambitions and further growth of shareholder value. We remain committed to disciplined execution of Lead the Future strategy.

In the coming months, we focus on busy commercial agenda to prepare further value creation actions in B2C, for consumer line of business, and we have valuable projects to be delivered in enterprise, in B2B and in wholesale. In B2B, we are implementing a new operating model that is grouping all our IT&IS competencies under one roof in order to unlock more potential.

On cost transformation as well, we are progressing well. Every quarter is fueled by new initiatives, and we are also shifting our focus to identify new projects that will give it another boost in 2027. So with good prospects ahead, we have high confidence to deliver full year guidance in the second year of our 4-year strategy, even if a market environment is demanding and volatile.

So that's all from us. And now we are ready to take your questions.

Thank you. So we are switching to Q&A session. [Operator Instructions] We have a first question coming -- voice question coming from Dawid Gorzynski from PKO.

Congratulations on this excellent results. I have 3 questions actually. So maybe just read all of them. Firstly, I'm curious how much you are advanced right now? Maybe in like percentage terms in your cost transformation process, how much is still left for next quarters?

Second question on other operating income. It was at a bit elevated level compared to previous quarters. And I wonder if that included maybe higher margin from FiberCo contract or maybe higher copper sales?

And last question on CapEx. If you may quantify what was the impact of poor weather? Like to what extent the CapEx was lower because of that reason in the first quarter?

Thank you for those. Dawid, on CapEx, I would assume that the weather impact is roughly about, let's say, PLN 70 million. That would be my best guess as to the impact on the postponement of certain projects due to weather because it's mostly connected -- well, it mostly affected January and February. So around PLN 70 million.

On the other operating income net, what you will see is you will see other operating income at PLN 111 million in Q1 2026, which actually is very close to what we have recorded for Q1 of 2025, where it was PLN 106 million. It is indeed higher than the Q4 2025, where we had PLN 95 million of other operating income net.

When I analyze the reasons for this, we have broadly the same impact between the 3 different quarters of the relationship with the FiberCo, so no real change here. Then there is an impact of a greater sale of copper in Q1 because this is the quarter where we usually sell more of copper. So no impact year-over-year. It is the same figure.

However, this could be something around PLN 30 million impact if you compare Q1 to Q4. And then this is offset by about, I would say, up to PLN 20 million negative impact of the difference in ForEx and derivatives valuation, which were positive in Q4 2025 and slightly negative in Q1 2026. So it's most -- if you compare Q-on-Q, it's mostly the sale of copper, offset by a different timing of -- different impact of derivatives.

And then for the cost transformation, it's difficult to be quantified in percentage terms, because I would need to -- I mean the impact of the transfer, at least in some categories, it is happening rather similarly in each of the years. What we are doing is we are attempting to be at least PLN 100 million greater impact of transfer for 2026, I would say, net-net, versus 2025.

And here, this is, I would say, well advanced. But the impact of transformation needs to be viewed, I think, as the -- in the context of all other items that are basically affecting the cost base.

So what we are aiming ultimately is to try and keep indirect costs flattish or flat year-over-year. This is the -- I would say, strategic ambition, and the transformation plan is definitely helping towards this goal.

And so you will -- I think the best way to judge our progress with this regard is to look at the level of indirect costs year-over-year, quarter after quarter, and each time that we can be relatively flat or flattish a part of the different one-offs that we have, then this means we are rather achieving the objectives.

I think that would be my way of trying to quantify because any other way, it just involves the gross value of initiatives while you have also some other factors, some cost indexation, you have, obviously, the pay rises that are happening. You have the holiday pay provision, which is different between the different quarters.

You have the share-based payments, which are depending on the share price. And so ultimately, what we're trying to do, let's keep cost base -- indirect cost base flattish a part of the -- those major one-offs.

The next question is coming from Pawel Puchalski from, I guess, it's still Santander.

Hello. Can you hear me?

Yes. Yes, go ahead.

Okay. Hello, everyone. I've got a couple of questions. Let's start with VAT relief. Specifically, you mentioned its tax relief for year 2019, '20. My question would be, shall we expect the same scale of VAT relief awaiting for us -- for you to be presented as positive one-offs for years 2021, '25? And could you potentially deliver those in year 2026 or maybe it's scheduled for a later period?

And later onwards, I would like to know where are you aiming at growth of your core telco by year-end? Now we see that plus 4.8% year-on-year. My question, what is your best guess for Orange Polska core telco growth year-on-year in quarter 4? I would like to know the dynamics.

And well, just a different -- very different question. Well, if there was any major telco for sale in Poland, would you be interested? And would you acquire one just like it is the case in France presently?

Thank you very much for your questions, Pawel. Always a pleasure. So starting with the VAT relief. I think there are few consequences of this. So a part of the one-off that we have clearly mentioned, we have, first of all, around PLN 45 million of bad debt relief for prior years still to be recovered, okay? We expect this to be recovered over the course of the next 2 to 3 years.

And it is -- some of it may actually still happen this year. We never know. It really depends on the stance of the tax authorities towards the specific cohorts because each year is a cohort, so towards specific years and the declarations that we have filed. And also on the court proceedings, which are still ongoing regarding part of these amounts.

So while we are rather confident that we should be able to recover this PLN 45 million, it is not virtually certain today, so I would not be able to recognize it as an asset today. And it could take up to 3 years, I think, for most of these amounts to be recovered, knowing that our legislative system is less than predictable. But this is the amount and the timing.

I think on top of that, we will have a small impact, something like PLN 2 million to PLN 3 million per quarter where our bad debts, our ongoing recurring bad debts should be lower than recognized historically. And then -- so I think that is regarding VAT, unless something is still not clear. In which case, please do probe.

For the core telco services, I would say the following: the 4.8% would be my assumption of our current run rate. So if you ask me today what would be my best guess for Q2, not Q4, but for Q2, it would be roughly 4.8%. However, as Liudmila mentioned, we have a few items on our commercial agenda, on the details of which, obviously, I will not elaborate on.

And it just shows you that we continuously work to initiate new actions that would exert upward pressure on this trend. Now of course, the success of this depends on the execution, depends on customer response and depends on the competition. Hence, I am not as precise as to say if this is what exactly this will be by year-end. But Q2, I would expect 4.8% because prepaid is more or less at its new norm.

And then regarding telco for sale, I would assume -- no, we will not comment on M&As right now, and it's not something that you will have us commenting on a hypothetical situation.

Thanks. Next question is coming from the line of Ali Naqvi from HSBC.

It seems like the ICT or B2B sales had a bit of an inflection point in the quarter. Can you give us an outlook for the remainder of the year?

And just in terms of the legacy business, the decline in there, is that first quarter of proxy as well for the balance of the year? And similarly, could you just explain what's going on with equipment sales, please? That would be great.

So it's ICT, it's equipment and legacy. I guess, legacy, it's more or less in a stable trend of a decline. It's honestly nothing major for us that I would see today in terms of a change of trend in any way.

Regarding equipment, because this was your second question. So here, what we have is we actually have less equipment revenues in the B2B line of business. And it's mostly got to do with the choice of both the customers but also availability of handsets.

We had less high-end handsets being sold in Q1 in comparison to the Q1 of the previous year. And so the volumes were, I would say, not out of the ordinary. The pricing, at least on the B2C side was exactly the same as -- well, it was close to the average unit price of the previous year. It was mostly the mix of handsets for the B2B sector.

And then regarding the IT&IS, I think what is -- I mean this is highly volatile revenue stream, obviously, because it is project based. Today, it is obviously, on the one hand, benefiting from a continued underlying strong demand in Poland for the digitalization and also from our own actions.

It is, I would say, even less easy to be predicted as we know that the environment around both pricing and availability of the memory chips is very volatile. So in some cases, we're actually figuring out how to address the demand knowing that the supply side is extremely volatile. So it is less easy to be predicted, I would say, on the quarter-per-quarter basis.

What we do expect in terms of IT&IS is 5% to 7% compound annual growth rate of those revenues between now and 2028. And I think we will need to -- and we strive to keep within this range of revenue growth, keeping an eye on the profitability as well.

So making sure that this is not entirely achieved through very low margin activity, such as license resale, but that we have a solid mix of networking, integration, IT projects, but IT development projects, some cyber attack and cloud-based solutions to drive the margin as well as the revenue growth. So I think we need to keep an eye on this 5% to 7% CAGR.

Maybe just expanding on that then. Is there any risk that -- is the situation with memory chips and the inflation on the supply side, does that sort of derail your longer-term guidance in any way? Or is there any way that you can manage that?

I think, honestly, the -- our colleagues on the ICT side have proven again and again extremely resilient and being able to adapt. And as this is project based and it will concern the whole industry, I'm very confident that even if we have a slowdown in this part of the activity, we will be able to exploit some other demand area and continue with the growth of both top line and the bottom line over the long-term horizon.

And anyway, I think even with the memory chip crisis, while this may be an extremely volatile situation this year, it's -- and -- I mean it's hard to imagine this kind of volatility persisting for the 3 or 4 years. We might have the chips being less available or available at higher prices. But it's a different situation versus the -- what we have today, where the prices of the chips are highly fluctuating between one day and another.

And I would say pricing might be elevated, in which case, it will affect the entire market. But still, it will not, I don't think it will affect the demand. But the price stability, if you think 3 years down the line, it is something that will not stay as volatile as we see it today.

Normally, it should correct during next quarters.

We have no more voice questions. We have 2 questions from us -- that came to us as a text. And first from [indiscernible] pension fund. A question that we've already answered, but I will read it.

In France, we are observing consolidation process on telecom market when Orange is taking part. Do you see such a possibility on Polish market? So I guess we do not comment on that. One, and there is a type of questions on -- from Piotr Raciborski from Wood & Company. The first one is referring to what we said is you're asking the guided 4% to 8% underlying growth rate in Q2 2026, do you mean sales or EBITDA? That's the first question.

And the second question is on ICT. Does Orange see stronger demand on ICT from public segment in face of national recovery and resilience plan fund inflow in 2026.

So maybe we'll start with a second question on linked with IT&IS opportunities and funds coming from different EU projects, EU funds. Obviously, we are -- there is an ongoing pipe of projects in which we are taking an active part. So we are quite optimistic, but at the same time, we are moderate linked with what has been just said with current memory chip crisis.

So yes, projects are coming, prospects are there. We are participating actively, and we have very strong legitimacy to winning these projects as we are very strong in our IT&IS capabilities, cloud, cybersecurity, integration services.

But main questions for short-term, very short-term, is how the tenders will go, whether we will be able -- or market will be able to respond in the required terms knowing that sometimes pricing for equipment is valid for days or for 1 week or 2 weeks, while public acquisition process usually has taken much more time as we're going through mandatory stages.

So in short-term, this can be the main -- is current main disturbance to the process, which we expect it will be somehow settled during next coming months because the market will learn how to respond to this price volatility, what offers validities will be coming. So yes, now volatility is high, which is impacting also like projects, but normally, it should be settling down.

And on the 4% to 8%, I think you have misheard. It was 4.8% that we were speaking about in terms of the expected growth rate for core telco revenues in Q2, not EBITDA. Obviously, we expect EBITDA growth in Q2. Obviously, for the full year, the guidance is 3% to 5% growth.

I think we can clearly say we've had a great start. We're aiming at the high end of this guidance. And I think it's fair to say, we will monitor how successful will be in Q2. So what level of growth of EBITDA we get in Q2. And we will monitor the prospects that we will have for H2.

So when we meet the next time in July, I do believe we will be in a much better situation to make any judgment on how we see H2 and the full year. I think that is -- but the question was 4.8% core telco revenue growth year-on-year expected in Q2.

Thank you. We have no more questions. Thanks for the call. And if you -- I repeat it every time, but if you would like to meet us, talk to us, just give us a note. Otherwise, see you in July. Thank you. Have a good day. Bye.

Thank you very much.

Thank you.

Ladies and gentlemen, it's 9:32 with a slight delay. My apologies for that. Welcome you wholeheartedly at the Annual General Meeting of Orange Polska. May I ask the notary public to the head table? My name is Maciej Witucki, I'm Head of the Supervisory Board of Orange Polska.

So now this meeting has been summoned by virtue of the decision of the Management Board. And the announcement was duly placed on the website and reported on, on that same date, based on Article 18 Paragraph 1, I mean I'm [ hope ] of the statute of the company, and I'm opening the proceedings. Let me tell you that the proceedings are webcast in real-time.

I am moving on to Item 1, which is the nomination of the Chairman. Before I ask you for the candidates, may I ask the technical staff to advise us on the operation of the electronic communication and voting system?

A very good morning to you. After you sign up on the list of attendance, you'll receive a tablet at the reception table. There are two buttons flashing up. One says your data, where you can see the proxy and the share that you represent; then documents, document where you will find a list of documents pertaining to this particular meeting. The voting process itself, the tablet was switched to voting mode immediately, automatically you choose your decision. Then you'll see a summary page. If it is accurate, you press confirm button.

If you go wrong, then summary screen, you can always make one step back, rechoose the right decision, press the right button and thus cast a vote. The system provides for the confidentiality of voting. Thank you very much, and I wish you a very fruitful debate. Well, I understand you can always voice your candidates via the system. No, not quite. We do that verbally. You propose candidates in-person by those present.

So I understand the instruction on how to use the system is clear. May I ask you for your candidates to nominate the Chairman of this meeting? These can be candidates out of those who are entitled to participate in this general meeting. I -- looking around, I'm looking around.

[Foreign Language] Thank you very much. Are there any other candidacies? I cannot see any. Congratulations. I think one candidate is proposed, Mr. Piotr [ Tadeusz Jaworski ], if my hearing was correct. Piotr [ Jaworski ], yes, it was. No other candidates have been voiced.

Does Mr. [ Jaworski ] agree to stand as Chairman of this meeting? Yes. There's one candidate put forward. Let me, therefore, ask if there is any opposition to this candidacy. I cannot see any. Therefore, based on 5.3 of the rules of this meeting, I now conclude that Mr. Piotr [ Jaworski ] has thus been nominated Chairman of this Annual General Meeting, I hand over the proceedings to you. Congratulations.

A very good morning to all of you, ladies and gentlemen. We need a minute or 2 to review all the documents so that we can pass on to the nitty-gritty of this meeting, but we must go through the formalities before we pass on to the substantive part of the assembly.

Now we have gone through all the proxies issued, giving you the right to act on your entitlements in writing or electronically. I've signed up the list of attendants, which will be available during the proceedings and will be currently updated if there are any changes therein, and that will be duly noted.

One -- of the total number of shares, the present shares are [ 1,873,000,753 ] shares, which gives almost 83% of the total number of shares and the corresponding number of votes. The validity of this proceeding does not require a quorum. So the majority we do have will make it possible for us to reach the vast majority of decisions at this meeting. We are not going to vote on the agenda. However, allow me to remind ourselves of the subject area of our meeting today.

Now the first items are already behind us, we've opened the meeting, we elected the Chairman; I can now confirm that the meeting is validly convened. And as Mr. Chairman already mentioned, on the 13th, a decision is reached by the management to summon this meeting. And on that same day, the publication was made on the website concerning this meeting and all the documents which are pertinent to this meeting. So I can now confirm that the meeting has been duly convened and it is capable of making resolutions.

The next item on the agenda is to look at the separate and the consolidated financial statements for 2025, then the report of the Orange Polska S.A. Supervisory Board for 2025 and the report of the Supervisory Board on remuneration in 2025.

Following that, we'll move on to the adoption of the resolutions concerning approval of the separate financial statements of Orange Polska S.A. for 2025, then distribution of profit. in Orange Polska S.A. in 2025, then resolution -- the approval of the Management Board's report on the activity of Orange Polska Group and Orange Polska S.A. in 2025 financial year, then resolution on consolidated financial statements for 2025 of Orange Polska S.A., then approval of the Supervisory Board report for 2025, then expressing an opinion on the Supervisory Board report on remuneration in 2025. Then we move on to a series of resolutions on granting approval of the performance of duties of the members of Orange Polska S.A. governing bodies in 2025.

And then in Item 6, we're going to adopt a resolution on adopting the unified text of the Articles of Association of Orange Polska S.A. And in the next item, we will make a resolution on the statute, then changes in the Supervisory Board composition and then ensuing resolutions and closing of the meeting.

Now moving on to Item 4 of the agenda, which is review of the Orange Polska S.A. separate financial statements for 2025, distribution of profit, then report on the activity of the group and of Orange Polska and approval of the Supervisory Board's report and report on remuneration, all of these pertaining to 2025; I hand over to the Chairman of the Board for the presentation of the results.

Good morning, everyone, dear shareholders. In March last year, we presented our new 4-year strategy, Lead the Future. And today, I'm very pleased to say that 2025 was a very strong start of this strategy. We have progressed on all key pillars of our strategy, and we have prepared solid grounds for next years.

First to underline is our commercial performance that was excellent in both retail and our wholesale line of business. In retail, we uplifted both customer base and ARPU. In wholesale, we started to benefit from new important business development in the new projects. Commercial performance and commercial growth is essential pillar for value creation in our Lead the Future plan.

In order to win customers, we are committed to offer first-class connectivity at home, at work and on the move. And last year, we significantly progressed in 5G coverage. Already 85% of Polish population can enjoy 5G with higher speeds and with better latency. Orange Fiber is now reaching more than 10 million homes, 2/3 of households in Poland with 1 million households added in 2025.

The third important contributor to our results last year was the transformation and efficiency pillar of Lead the Future. We increased our efficiency by better cost and better CapEx management, increasing profit margins and improving cash conversion as a result. We have initiated a new transformation program that brought us results in 2025, but what is very important, it is bringing a strong solid prospects for years to come.

Lead the Future is focused on value creation for our shareholders. In 2025, we clearly demonstrated it by growing our financials. And I'm very proud that we have delivered a 47% of -- in total shareholder return through growth of our share price and through the dividend paid.

Let's briefly look on the next slide and on the key levers of our commercial performance last year. In 2025, we pursued a bold marketing plan. We visibly improved our marketing communication, refreshed the main brand to reach younger segments, changed the visual identity of our prepaid products and our B brand new as well received a new format.

We put higher focus on stand-alone offers. Our multi-SIM family offer proved to be a success, and we boosted the content proposition for fiber and TV offer, making it significantly more attractive. This, combined with our AI-enabled tailored offers, contributed to customer loyalty for the existing base and allowed us to attract new customers.

On the value side, we pursued our more-for-more strategy. ARPU benefited from good demand for higher data plans in mobile and higher-speed fiber offers. Customers with higher speed options already account for close of the half of our customer base.

As a result, we increased Orange presence in Polish households, reversing a multiyear trend. This is very much in line with what we put in our ambition for Lead the Future and is representing the fundamental change for us offering very promising prospects for the future.

And now as we will talk about our financial performance and financial results, I would like to pass the floor to Jacek Kunicki.

Thank you, Liudmila. A warm welcome to everyone gathered here. It is my pleasure to communicate that our financial results for 2025 were excellent. They exceeded our own expectations as well as the expectations of the market. We increased revenues and EBITDA profit by more than 4% year-on-year. Importantly, this growth was anchored in the robust foundation of our operations on our cost discipline and our commercial activity.

We also upheld discipline in our investments. We allocated capital to those areas, which drove growth. This increased the effectiveness of CapEx, but decreased it in proportion to the group's capital. We will continue with this trend in the coming years.

So we transformed EBITDA growth into growth of cash generation, and we have 1 billion of organic cash flows. These results show that we have robust foundations to build value for our shareholders in 2025, 2026 and in the coming years.

Let's compare these results with the expectations that we presented at the beginning of 2025. Growth of revenue and EBITDA exceeded our expectations. We expected a growth of 1-digit growth. However, we achieved the medium level of 1-digit growth. These dynamics were driven mainly by growth in IT services and integration service as well as wholesale. Well, our main growth engine, that is the revenue from our core services, grew by 6.5% year-on-year.

EBITDA growth was driven by high profitability of our core telecommunications services in wholesale and cost effectiveness. The investment forecast oscillated at the bottom level of the scope we present, we effectively continue to invest as we focused on real estate sale. So we're growing faster than we expected and faster than we initially assumed.

The results for 2025 are a good illustration of our growth model. And let's look at that growth model in the slide shown here. This is the value creation model we've already shown you when we announced our Lead the Future strategy. This model shows how we want to improve and increase our revenue and our growth.

In a nutshell, the major part of growth, that is revenue growth, mainly from commercial activity; should translate to EBITDA growth and as a result, an increase in cash. This requires discipline in operating costs and also investment outlays. Our model proved efficient in the previous year. And we want to continue applying it in 2026 and in the years to come according to our medium-term plan.

Let's look at the next slide. Our goal for 2026 is to consistently continue generating value for shareholders. We expect an increase in revenue at a low single-digit level. Let us bear in mind that a solid dynamics of core telecommunication services will be key to an increase in revenue.

We expect another year of stable growth of EBITDA between 3.5% to 5% year-on-year. This growth will be fueled by the effects of commercial activity and also our cost transformation. Higher revenue, higher EBITDA, that's what we want to achieve. And we want to achieve that with the same level of investment outlays as in 2025.

Of course, we're still focusing on building the 5G network on completing the optical fiber network and filling in the blank spots. We expect that to translate into strong growth in terms of generated cash. And we aim from PLN 1.1 billion of organic cash flows in 2026, which is at least a 10% growth as compared to 2025.

Let's move on to the midterm forecast. In 2025, we achieved a good financial results. We expect a good year in 2026. As a result, we are more optimistic about our capabilities to generate higher value in the future. As a result, we're increasing the midterm guidance. We expect further growth of EBITDA from low to mid-single-digit growth. But as we take into account the existing trends, we see that a higher increase is possible.

In terms of CapEx of investment outlays, we expect that it will amount to PLN 1.8 billion per annum. So we will increase that in relation to revenue.

On top of stable EBITDA and CapEx growth, we are more optimistic about organic cash flow generation. We expect that in 2028, organic cash flows will achieve at least PLN 1.4 billion. This means growth by at least 40% as compared to 2025. So the annual average also means growth. And it also means higher value generated for the shareholders, which means higher dividend.

As a result of the good results for 2025 and the robust forecast for 2026, as the Management Board, we recommend PLN 0.61 of a dividend to be paid out in 2026, which will come from the profit generated in 2025. This means that the dividend increases by 15% in -- as compared to the dividend paid out in 2025. Moreover, PLN 0.61 becomes the base level for the coming years of the Lead the Future strategy.

As we announced in the previous year, we are working consistently on providing the conditions which make it possible to distribute higher revenues to our shareholders. We are greatly pleased that we've succeeded yet again that we've provided such conditions to our shareholders, and we will not rest in our efforts to continue in this direction.

We're open to your questions, ladies and gentlemen.

Thank you very much. I think we can now open discussion. If there are any questions or comments on the results presented to us a moment ago, this is the right time for it. So everything was clear. Thank you very much for the presentations.

I think we can move on to the next stage in our proceedings, which is the first resolution that we are going to proceed on. And it concerns the approval of the Orange Polska S.A. financial statements for 2025 based on the International Financial Reporting Standards.

On the basis of Article 53, Clause 1 of the Accounting Act and Article 393 Item 1, Article 395 Para 2.1 of the Commercial Companies Code and Para 13 Item 1 of the Orange Polska S.A. articles, the following resolution is hereby adopted.

The Annual General Meeting approves the Orange Polska S.A. financial statement for 2025 according to International Financial Reporting Standards, which include income statement for 2025, showing net income of PLN 813 million, statement of comprehensive income for 2025 showing total comprehensive income of PLN 711 million, statement of financial position as of December 31, 2025 for the balance sheet total of PLN 26.12 billion, statement of changes in equity for 2025 showing an increase in equity by PLN 21 million, statement of cash flows for 2025, showing a decrease in cash and cash equivalents by PLN 8 million. And notes to the financial statements Para 2, the resolution comes into force and effect on the day of its adoption.

I think we can now open the ballot. It's going to be an open ballot.

[Voting]

I've just been informed that all the votes have been cast, so the ballot is closed. Now here is the outcome. Cast were [ 1,086,834,723 ] valid votes of the corresponding number of shares, which is almost 83%. Now in favor were 1,083,235,626 votes against abstentions, 3,599,127 votes. So the resolution has been made.

We can now move on to a next resolution on the distribution of profit of Orange Polska S.A. And here is the reading of the resolution on the basis of Article 395 para to Item 2 of the Commercial Companies Code in Para [ 13+2 ] of the Orange Polska S.A. Articles of Association, the following resolution is hereby adopted. The net income of Orange Polska S.A. for the 2025 financial year of 812,853,584 is divided in the following manner. For a dividend, 796,596,512 to the reserve capital, which is mentioned in Para 30 Clause 3 of the Articles of Association, PLN 16,257,071.69.

The amount of dividend shall be PLN 0.61 for each entitled share for this purpose, part of the funds from the supplementary capital and the amount of PLN [ 3,941,549.32 ], and the total amount shall be PLN 800,538,062.

Persons being the company's shareholders on the 24th of June 2026 shall be entitled to the dividends, i.e., the dividend day. The dividend shall be paid on July 8, 2026. Para 5, the resolution comes into force on the day of its adoption. It is going to be an open ballot. The ballot is now open.

[Voting]

Well, I've just been informed that all the votes have been cast. I now close the ballot. 1,086,834,753 valid votes were cast out of the corresponding number of shares, which accounts for almost 83% of the share capital. In favor were 1,084,704,321 votes; abstentions, 2,130,432 votes, which means that the resolution has been effectively made.

Our next resolution concerns the approval of the Management Board's report on the activity of the Orange Polska Group and Orange Polska S.A. in the 2025 financial year on the basis of Article 63C Clause 4 of the Accountancy Act and Article 395 Para 5 of the Commercial Companies Code, the following resolution is hereby adopted.

The Annual General Meeting approves the Management Board's report on the activity of the Orange Polska Group and Orange Polska S.A. in the 2025 financial year. Para 2. The resolution comes into force on the day of its adoption. This is an open ballot. The ballot is now open.

[Voting]

I've just been told that all the votes have been cast. I now close the ballot. 1,086,834,753 valid votes were cast, corresponding to the total number of shares represented, which accounts for almost 83% of the share capital. In favor were 1,083,235,626 votes; abstentions, 3,599,127 votes, which means that the resolution has been made.

We are moving on to a next resolution on the approval of the consolidated financial statements for 2025 on the basis of International Financial Reporting Standards. And here is the content on the basis of Article 63C, Clause 4 of the Accountancy Act and Article 395 Para 5 of the Commercial Companies Code, the following resolution is hereby adopted.

Para 1. The Annual General Meeting approves the Orange Polska Group consolidated financial statements for 2025 according to IFRS, which include consolidated income statement for 2025, showing net income of PLN 762 million, including net income attributable to owners of Orange Polska of PLN 762 million; consolidated statement of comprehensive income for 2025, showing total comprehensive income of PLN 575 million, including total comprehensive income attributable to owners of Orange Polska S.A. of PLN 575 million; consolidated statement of financial position as of 31st December 2025, with the balance sheet total of PLN 27.8 billion; consolidated statement of changes in equity for 2025, showing a decrease in total equity by PLN 115 million, including a decrease in equity attributable to owners of Orange Polska S.A. owners by PLN 115 million; consolidated statement of cash flows for 2025, showing a decrease in cash and cash equivalents by PLN 28 million. Notes to the consolidated financial statements.

Para 2, the resolution comes into force on the day of its adoption. This is going to be an open ballot. The ballot is now open.

[Voting]

All the votes have been cast. So I now close the ballot.

1,086,834,753 valid votes were cast out of the corresponding number of shares represented, which again accounts for almost 83% of the share capital. In favor, 1,083,235,626 votes; abstentions, 3,599,127 votes, which means that the resolution has been effectively made.

Let us move on to the next resolution on the approval of the Supervisory Board for the 2025 financial year. Paragraph 1, the Supervisory Board of Orange Polska S.A. report for the 2025 financial year is approved. Paragraph 2, the resolution enters into force upon adoption. The resolution will be voted upon in open ballot. You may cast your votes now.

[Voting]

All the votes have been cast of the eligible shares. I hereby close the voting. 1,086,834,753 valid votes were cast, corresponding to the same number of voting shares, which corresponds to almost 83% of the share capital. The votes in favor were 1,083,235,626; abstentions, [ 3,599,12700 ]. This resolution has been adopted.

The next resolution we shall vote on is the resolution on expressing an opinion on the report of the Supervisory Board on remuneration in 2025. A positive opinion on the report of the Supervisory Board on remuneration of the members of the Management Board and Supervisory Board of Orange Polska S.A. in 2025 is expressed. Article 2, the resolution enters into force upon its adoption. This resolution shall also be subject to open ballot. I hereby open the voting.

[Voting]

All the votes have been cast. I hereby close the voting. 1,086,834,753 valid votes have been cast, corresponding to the same number of authorized shares, which corresponds to nearly 83% of the share capital. In favor, 1,068,534,410 votes, against 16,169,911 votes and abstentions, 2,130,432. As a result, this resolution is adopted.

Let us proceed to the vote on granting approval of the performance of duties to members of the governing bodies of Orange Polska. We will start with the members of the Management Board and move on to the Supervisory Board.

Let us proceed to the resolution on granting approval to Madam President Liudmila Climoc. The resolution reads as follows: the approval of the performance by Madam Liudmila Climoc of her duties as the President of Orange Polska Management Board in the financial year 2025 is granted. We will cast our votes under secret ballots. I hereby open the voting.

[Voting]

All the votes have been cast. I hereby close the voting.

1,086,834,753 valid votes were cast of the same number of authorized shares, which corresponds to almost 83% of the share capital. The votes cast in favor amounted to 1,082,549,463. The votes against 517,261 and abstentions, 3,768,029. Therefore, this resolution is adopted.

We may now proceed to the next resolution on granting approval of the performance of duties. This resolution will be for Madam Jolanta Barbara Dudek. The resolution reads as follows: the approval of the performance by Madam Jolanta Barbara Dudek of her duties as a member of the Management Board of Orange Polska S.A. in the financial year 2025 is granted. We shall vote by secret ballot. I hereby open the voting.

[Voting]

Ladies and gentlemen, all the votes have been cast. I hereby close the voting. 1,086,834,753 valid votes stemming from the same number of authorized shares, which corresponds to almost 83% of the share capital. The votes in favor, 1,082,549,463; the votes against, 517,261; and abstentions, 3,768,029 votes. Therefore, this resolution is adopted.

Let us proceed to the next resolution on granting approval of the performance of duties. This time, the resolution will be for Madam Bozena Katarzyna Lesniewska of the Management Board of Orange Polska S.A. The resolution reads as follows: the approval of the performance by Madam Bozena Katarzyna Lesniewska of her duties as member of the Orange Polska S.A. Management Board in the financial year 2025 is granted. Let us proceed to a vote by secret ballot.

[Voting]

All the votes have been cast. Therefore, I close the voting.

A total of 1,086,834,753 valid votes were cast, corresponding to the same number of authorized shares, which correspond to 83% of the share capital. The votes in favor, 1,082,549,463 votes; against 517,261; abstentions, 3,768,029 votes. This resolution is, therefore, also adopted.

Let us proceed to the next resolution on granting approval of the performance of duties to Witold Ryszard Drozdz, member of the Orange Polska S.A. Management Board for performing his duties in 2025. The resolution reads as follows: the approval of the performance by Mr. Witold Ryszard Drozdz of his duties as member of the Orange Polska Management Board in financial year 2025 is granted. We shall proceed to a vote by secret ballot. Please cast your votes.

[Voting]

All the votes have been cast. Therefore, I close the voting. A total of 1,086,834,753 valid votes were cast from the same number of authorized shares, which corresponds to almost 83% of the share capital. The votes in favor, 1,082,549,463; the votes against, 517,261 votes; and abstentions, 3,768,029 votes. This means that this resolution has been adopted.

Which means we can move on to a next resolution on the approval -- on granting approval of the performance of duties given to Mr. Tadeusz Jaworski as member of the Orange Polska S.A. Management Board. The approval of the performance by Tadeusz Jaworski of his duties as a member of the Orange Polska S.A. in the financial year 2025 is granted, and this is a secret ballot.

[Voting]

All the votes have been cast. The ballot is now closed. 1,086,834,753 valid votes were cast out of the corresponding number of shares, which account for almost 83% of the share capital. In favor were 1,082,549,463 votes; against, 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been made.

We are moving over to another resolution on granting approval of the performance of duties to Board members at this time with regard to Mr. Jacek Kowalski as -- of his duties as member of the Management Board. The approval of the performance by Jacek Kowalski of his duties as a member of the Orange Polska S.A. Management Board in the financial year 2025 is granted. This is a secret ballot.

[Voting]

All the votes have been cast. The ballot is now closed.

1,086,834,753 valid votes were cast out of the corresponding number of shares, which accounts for almost 83% of the share capital. In favor, 1,082,549,463 votes; against, 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been adopted.

We can now move on to our next resolution on granting the approval of the performance of duties to Mr. Jacek Marek Kunicki in his capacity as member of the Board. The approval of the performance by Jacek Marek Kunicki of his duties as member of the Orange Polska Management Board in the financial year 2025 is hereby granted. This is a secret ballot.

[Voting]

All the votes have been cast. The vote is now closed. Now 1,086,834,753 valid votes were cast out of the corresponding number of shares, accounting for almost 83% of the share capital. In favor were 1,082,549,463 votes; against, 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been adopted.

We are moving on to our last vote on granting approval of performance of duties to Management Board members this time with regard to Mr. Maciej Mateusz Nowohonski as his -- in his capacity as a Board member. The approval of performance by Mr. Maciej Mateusz Nowohonski of his duties as Management Board member of Orange Polska S.A. in the financial year 2025 is hereby granted. This is a secret ballot.

[Voting]

All the votes have been cast. I now close the ballot. 1,086,834,753 valid votes were cast out of the corresponding number of shares, accounting for almost 83% of the share capital. In favor were 1,069,074,926 votes; against, 13,991,798 votes; abstentions, 3,768,029 votes, which means that the resolution has been made.

I can now conclude that all members of the Management Board have been granted approval of the performance of their duties for 2025, and we can now move on to granting approval to the members of the Supervisory Board.

The first resolution concerns the approval of the performance of duties to Mr. Maciej Krzysztof Witucki as Chairman of the Supervisory Board. The approval of the performance by Mr. Maciej Krzysztof Witucki of his duties as member of the Supervisory Board, Orange Polska S.A. in the financial year 2025 is granted. This is a secret ballot.

[Voting]

All the votes have been cast. The ballot is now closed.

1,086,834,753 valid votes were cast out of the corresponding number of shares, which accounts for almost 83% of the share capital. Now in favor were 1,067,899,926 votes, against 15,166,798 votes and abstentions, 3,768,029 votes, which means that the resolution has been adopted and the approval has been granted.

Now moving on to our next resolution on granting approval to Madam Marie-Noëlle Jégo-Laveissière of her duties as Supervisory Board Deputy Chairman. The approval of the performance by Marie-Noëlle Jégo-Laveissière of her duties as member of the Supervisory Board Orange Polska S.A. in the financial year 2025 is therefore granted. This is a secret ballot.

[Voting]

All the votes have been cast. Therefore, I close the ballot. Now 1,086,834,753 valid votes were cast out of the corresponding number of shares, accounting for almost 83% of the share capital. In favor were 1,082,549,463 votes, against were 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been adopted.

We are now moving on to a next resolution on granting approval at this time with regard to Mr. Laurent Martinez as member of the Supervisory Board. The approval of the performance by Mr. Laurent Martinez of his duties as Supervisory Board members of Orange Polska S.A. in the financial year 2025 is granted. This is a secret ballot.

[Voting]

All the votes have been cast. The ballot is now closed.

1,086,834,753 valid votes were cast of the corresponding number of shares, accounting for almost 83% of the share capital. In favor, 1,082,549,463 votes; against, 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been made.

Let's proceed to the next resolution on granting approval of the performance of duties to Mr. Marc Ricau on granting approval of the performance of duties of a member of the Supervisory Board. The approval of the performance by Marc Ricau of his duties as a member of the Supervisory Board of Orange Polska in financial year 2025 is granted. I hereby open voting by secret ballot.

[Voting]

That concludes the voting on this resolution. All the votes have been cast. 1,086,834,753 valid votes of the corresponding number of shares, corresponding to almost 83% of the share capital, have been cast. 1,049,150,539 votes were cast in favor, 33,916,185 were cast against and abstentions, 3,768,029 votes. As a result, this resolution has been made.

Let's just move on to the next resolution on Mr. Philippe Béguin on the performance of his duties as member of the Supervisory Board. The approval of the performance by Mr. Philippe Béguin of his duties as member of the Orange Polska Supervisory Board in the financial year 2025 is granted. I hereby open voting by secret ballot.

[Voting]

Votes have been cast. That concludes the voting process on this resolution. 1,086,834,753 valid votes of the corresponding number of shares, which amount to almost 83% of the share capital have been cast on this resolution. Votes in favor, 1,082,549,463; votes against, 517,261; abstentions, 3,768,029 votes. As a result, this resolution has been made.

We shall now move on to the resolution on granting approval to Madam Bénédicte Anne Françoise David on her performance as a member of the Supervisory Board. The resolution reads as follows: the approval of the performance by Madam Bénédicte Anne Françoise David of her duties as member of Supervisory Board of Orange Polska in financial year 2025 is granted. I hereby declare the secret ballot open. Please cast your votes.

[Voting]

That concludes the voting process on this resolution. All the votes have been cast. 1,086,834,753 valid votes of the corresponding number of shares, corresponding to almost 83% of the share capital, have been cast. The votes cast in favor, 1,062,625,076 votes, 20,441,648 were cast against and 3,768,029 votes were abstained. As a result, this resolution has been made.

Let us proceed to the resolution on granting approval to Mr. Bartosz Dobrzynski on the performance of his duties as member of the Supervisory Board. The resolution reads as follows: the approval of the performance by Bartosz Marcin Dobrzynski of his duties as a member of Orange Polska Supervisory Board in the 2025 financial year is granted. I hereby open voting by secret ballot.

[Voting]

I hereby declare the voting closed. All votes have been cast. 1,086,834,753 valid votes of the same number of shares corresponding to nearly 83% of the share capital have been cast. 1,064,313,080 votes were cast in favor, 18,753,644 votes were cast against and abstentions, 3,768,029 votes. This means that this resolution has been made.

Let us proceed to the next resolution on granting approval to Madam Clarisse Heriard Dubreui on the performance of her duties as member of the Supervisory Board. The approval of the performance by Clarisse Heriard Dubreui of her duties as Orange Polska Supervisory Board member in the 2025 financial year is granted. I open voting by secret ballot.

[Voting]

I declare the voting closed. All the votes have been cast -- on this resolution, 1,086,834,753 valid votes of the same number of shares corresponding to nearly 83% of the share capital have been cast. 1,082,549,463 votes have been cast in favor, 517,261 votes were cast against and 3,760,029 votes were abstentions. As a result, this resolution has been made.

We shall now proceed to the resolution on granting approval to Mr. John Russell Houlden. The resolution reads as follows: the approval of the performance by John Russell Houlden of his duties as Orange Polska as a Supervisory Board member in the 2025 financial year is granted. I hereby open voting by secret ballot.

[Voting]

I hereby close the voting process on this resolution. 1,086,834,753 valid votes of the same number of shares corresponding to almost 83% of the share capital have been cast. 1,069,074,926 votes were cast in favor, 13,991,798 were cast against and 3,768,029 votes were abstentions. As a result, this resolution has been made.

Let us move on to the next resolution on granting approval to Madam Monika Aleksandra Nachyla on the performance of her duties as Supervisory Board member. The approval of the performance by Monika Aleksandra Nachyla of her duties as Orange Polska as a Supervisory Board member in the 2025 financial year is granted. I hereby open voting by secret ballot.

[Voting]

That concludes the voting. All votes have been 1,086,834,753 valid votes have been cast of the same number of shares, which corresponds to nearly 83% of the share capital. 1,082,549,463 votes were cast in favor, 517,261 were cast against, while 3,768,029 votes were abstentions. As a result, this resolution has been made.

We are moving on to another resolution concerning granting approval to Madam Maria Paslo-Wisniewska. The approval of the performance by Madam Maria Paslo-Wisniewska of her duties as member of the Orange Polska S.A. Supervisory Board member in the financial year 2025 is granted. This is a secret ballot.

[Voting]

All the votes have been cast. I now close the ballot. 1,086,834,753 valid votes were cast out of the corresponding number of shares, accounting for almost 83% of the share capital. In favor were 1,049,663,543 votes; against, 33,403,181 votes; abstentions, 3,768,029 votes, which means that the resolution has been made.

And on to another resolution on granting approval this time with regard to Mr. Adam Jacek Uszpolewicz as member of the Supervisory Board. Here is the reading of the resolution. The approval of the performance by Mr. Adam Jacek Uszpolewicz of his duties as member of the Supervisory Board of Orange Polska S.A. in the financial year of 2025 is hereby granted. This is a secret ballot.

[Voting]

All votes have been cast. The ballot is closed. 1,086,834,753 valid votes were cast out of the corresponding number of shares part in the vote, accounting for almost 83% of the share capital. In favor were [ 1,082,549,163 ] votes against 517,261; abstentions, 3,768,029 votes. The resolution has been made.

And on to another resolution concerning the approval this time with regard to Mr. Jean-Marc Vignolles. The approval of the performance by Mr. Jean-Marc Vignolles of his duties as member of the Supervisory Board Orange Polska S.A. in the financial year of 2025 is granted. This is a secret ballot.

[Voting]

I now close the ballot, now that all the votes have been cast. 1,086,834,753 valid votes were cast out of the corresponding number of shares accounting for almost 83% of the share capital. In favor were 1,082,549,463 votes; against, 517,261 votes; abstentions, 3,768,029 votes, which means that the resolution has been made.

We are moving on to the last resolution in this point, granting approval with regard to Mr. Etienne Vincens de Tapol. And the reading of the resolution is as follows: The approval of the performance by Mr. Etienne Vincens de Tapol of his duties as a member of the Supervisory Board Orange Polska S.A. in the financial year 2025 is hereby granted. This is a secret ballot.

[Voting]

I now close the ballot, now that all the votes have been cast. 1,086,834,753 valid votes were cast out of the corresponding number of shares, accounting for almost 83% of the share capital. In favor were 1,080,861,459 votes; against, [ 205,265 ] votes; abstentions, 3,768,029 votes, which means that the resolution has been passed.

And we have, therefore, concluded voting on granting approvals to the Supervisory Board members. And I think we can now move on to another -- a next item of our meeting, amending the Articles of Association of Orange Polska S.A.

Now the amendments are due to the changes in the official Polish classification of business activity. Therefore, the company needs to change the PKD codes to make adjustments to the new nomenclature. And this is the main reason for the changes.

And in addition, now because the articles of the company, there was a PKD code on the production of fiber optic cable, which is not the activity the company is engaged in at the moment, so this line of business is going to be removed from the PKD activities of the company.

If you have any questions about changes in the articles, this is the time to put forth your question. If not, allow me to tell you that the draft document was published on the website. It's still available for the shareholders to see. So allow me not to read all the changes of the PKD codes because this is purely a technicality.

Therefore, I suggest we move on to the ballot on amending the Articles of Association of Orange Polska S.A. based on Article 30, Para 1 of the Commercial Companies Code and Para 13, Item 5 of the Articles of Association of Orange Polska S.A. and the content of the amendment, the substance of the amendments is publicly available, was published before this general meeting.

As regards the entry into force and the fact on the date of adoption and -- will become effective since the date of the registration being filed with the registry court. This is an open ballot. The ballot is now open.

[Voting]

All the votes have been cast. I now close the ballot. 1,086,834,753 valid votes were cast out of the corresponding number of shares, which accounts for almost 83% of the share capital. In favor were 1,084,704,321 votes; abstentions, 2,130,432 votes. There were no votes against. Therefore, the resolution has been made.

Now given the adoption of these amendments, we are now moving on to a next item on adopting the unified text of the Articles of Association of Orange Polska S.A., which introduces these modifications into the articles of the company.

The resolution concerns the entire body of the Articles of Association. And the new version had been published on the Orange Polska S.A. website and as part of the documentation of this meeting made available to the shareholders. The resolution comes into force on the date of this adoption, the fact from the date of registration of the amendments by the registry court. We can now move on to an open ballot, please.

[Voting]

We have all the votes already cast, so I close the ballot. Now 1,086,834,753 valid votes were cast out of the corresponding number of shares represented in this ballot, which account for almost 83% of the share capital. In favor were 1,084,704,321 votes; abstentions, 2,130,432 votes. There were no votes against, and the resolution has been made.

We may proceed to the next point on our agenda. Let me advise you that at this ordinary general meeting the mandate of three members of the Supervisory Board expire, Madam Clarisse Heriard Dubreuil and Usman Javaid. Usman Javaid, who has been appointed on the 17th February of 2016, under a special procedure under the Article of Association of the company, one of the members of the Supervisory Board stepped down.

The company introduced information about two candidates into the announcement about the general meeting. The resumes of the candidates have been published in the current report of 13th March 2026. These resumes are still available and continue to be published. A shareholder of the company nominated the following candidates: Madam Clarisse Heriard Dubreuil for another term of office and Mr. Usman Javaid.

Let me ask if there are any other nominations for candidates to the Supervisory Board. Now is the time to put forward a nomination. I do not see any other requests or nominations. Those are the only two candidates that we shall vote on. Let me inform you that I hold the written consents for the candidacy of both candidates that have been put forward by an Orange S.A. shareholder.

Both resolutions on the appointment of new members will be subjected to secret ballots in alphabetical order. Let us, therefore, proceed the first resolution on the appointment of a Supervisory Board member. The resolution reads as follows: Clarisse Heriard Dubreuil is appointed to the Orange Polska S.A. Supervisory Board. The resolution enters into force upon adoption. I hereby open the secret ballot. You may now cast your votes.

[Voting]

All votes have been cast. I declare the voting closed.

1,086,834,753 valid votes of the same number of shares, which corresponds to almost 83% of the share capital, were cast. 900,083,965 votes were cast in favor, 54,281,917 votes were against and abstentions 132,468,871 votes were abstentions. Therefore, the resolution has been made, and we have appointed a member of the Supervisory Board for another term in office.

Let us move on to the last resolution of the AGM on the appointment of a Supervisory Board member. Usman Javaid is appointed to Orange Polska S.A. Supervisory Board. The resolution enters into force upon adoption. I hereby declare the secret ballot open. Please cast your votes.

[Voting]

All the votes have been exercised. I hereby close the voting. A total of 1,086,834,753 valid votes were cast from the same number of shares, which corresponds to nearly 83% of the share capital. 900,083,965 votes were cast in favor, 54,281,917 were cast against the resolution and abstentions, [ 132,468,871]. This means that the final resolution of the AGM has been adopted.

Ladies and gentlemen, as we have exhausted the agenda of today's AGM, all I can do is close this meeting. Thank you for your effective and smooth cooperation. I wish you a lovely day and a nice weekend. Thank you.

Good morning. Thank you for standing by. Let me welcome you to Orange Polska conference call in which we will summarize our achievements in 2025. My name is Leszek Iwaszko, and I'm in charge of Investor Relations. The format of the call will be a presentation made by the management team, followed by a Q&A session. Speakers for today will be our CEO, Liudmila Climoc; and CFO, Jacek Kunicki. So I'm passing the floor to Liudmila to begin the presentation.

Thank you. Thank you, Leszek. Good morning. Happy to welcome you at our conference summarizing last year results, and let's start. In March last year, we have presented to you our new 4-year strategy, Lead the Future. And today, I'm very pleased to say that 2025 was a strong start. We have progressed in all key pillars of our strategy and prepared a solid ground for next years.

First on the line is our commercial performance that was excellent in both retail and wholesale. In retail, we uplifted both customer base and ARPO. In wholesale, we started to benefit from new important business development streams. And commercial growth is an essential pillar for value creation in our plan.

Second, to mention is network. In order to win customers, we are committed to bringing first-class connectivity at home, at work, on the move. And in 2025, we significantly progressed in 5G coverage, already 85% of Polish population can enjoy 5G with better quality, higher speed, better latency. Orange Fiber is now reaching almost 10 million homes. It's 2/3 of households in Poland, and we have added 1 million last year.

And the third important contributor to our results was transformation, transformation and efficiency. One of the main pillars of Lead the Future. We increased our efficiency by better cost and by better CapEx management, increasing profit margins and improving cash conversion as a result. We have initiated a new transformation program last year that brought the first results, but we expect more to come in next years.

Lead the Future is focused at value creation for our shareholders. And in 2025, we clearly demonstrated it by growing our financials. I'm very proud that we delivered 47% in total shareholder return through growth of our share price and paid dividend.

Speaking about the financials, let's have a look on how we have performed versus guidance. So here, you see the slide illustrating it. We did very well. Growth rates on revenue and EBITDAaL was overachieved. We promised the range of low single digits. In both cases, we achieved mid-single. We overachieved on revenues, thanks to positive dynamic in IT&IS and in wholesale, but the main engine of revenue growth is our core telco services with strong 6.5% growth. EBITDAaL benefited from strong profitability of core telco and wholesale, but also combined with cost efficiencies in.

For eCapEx guidance, it is met at the low end of the range, despite lower-than-expected sales of real estate, we managed to -- we managed our investments very efficiently. As you see, our growth story is developing faster than originally expected. And let's see what were the main commercial performance drivers for this.

So looking on the commercial parts, 2025 is very strong. We attracted new customers and simultaneously, we grew ARPO in all key services in a very balanced way. In convergence, both customer base and ARPO increased by a solid 4%. For fiber, customer base increased by 10% and ARPO by almost 5% and I'm very pleased with this performance in convergence and fiber as competition here continues to be the most intense. We estimate -- so that we further improved our market share in high-speed broadband. So Orange is the [ synonym ] of fiber.

Mobile performance in 2025 was exemplary, almost 350,000 customers joined us with mobile postpaid offer. It's almost 4% growth. The highest number in a few years. And both segments were contributing consumer and business and also all brands were contributing to this performance. ARPO increased by less than 1%, and it is explained by a strong contribution of more than 5% growth of ARPO for main brand, which is diluted by an increasing share of the B brand in our total customer base.

Pace of growth in all services is in line with what we said for us as an ambition in Lead the Future, and it is demonstrating that we have the right strategy and we are navigating well in the competitive environment in Poland. So to zoom on our commercial tools, let's move to the next slide.

Our focus in Lead the Future is on building new relationships, reaching new families with our services and further using it as a pull for further growth with additional services and with conversions. In 2025, we achieved it by pursuing a bold marketing plan. We visibly improved our marketing communication, refreshing the main brand in order to reach younger segment, changed the visual identity of our prepaid products and our B brand, Nju also received a new format.

We put together -- we put also higher focus on stand-alone offers. Our new multi-SIM family offer proved to be a very successful in second part of the year. We boosted content proposition for our fiber and TV offer, making it significantly more attractive. And these elements combined with AI-enabled tailored offers contributed to customer loyalty for the existing base and allowed us also to attract new customers.

On the value side, we further pursued our more for more strategy. ARPO benefited from good demand for higher data plan in mobile and also higher speeds for fiber offer. Customers with higher speed options in fiber already account for almost half of our customer base. As a result, the number of Orange households where we are present with, our services was growing, reversing a multiyear trend. And this represents fundamental change for us that is also offering very promising prospects for future. This was about retail.

Let's now look at wholesale on Slide 8. Last year was particularly strong for our wholesale line of business, both our own and also in our core -- FiberCo Swiatlowód Inwestycje. As you see on the slide, we have recorded a solid 13% of wholesale revenue growth, excluding legacy services, much better dynamic versus previous years. And I will mention 3 drivers that were contributing to it. First is a new fiber backhaul contract, which was bringing results in the last 4 months of 2025. In 2026, this year, it will help us to fill the gap left by national roaming contract that has expired in 2025.

Second is the accelerated growth of revenues from access to our fiber network to other operators. And accordingly, growing monetization of our infrastructure. We reported an impressive 36% growth of wholesale customers on our network, a result of opening of our network for wholesale, which took place in the second part of 2024.

And the third pillar driver is services, which we rendered to our FiberCo Swiatlowód Inwestycje, like lease of infrastructure delivery of services, network maintenance, they are growing in line with growing scale of FiberCo.

Speaking about our 50% co-owned FiberCo. 2025 was a very important milestone here. It marked completion of the initial investment program, which was set in 2021, in line with our plan, FiberCo network reached 2.4 million households. In 2026, new program has started with fully secured financing, and we are very pleased with operational and with financial dynamics.

Despite the fact that FiberCo is still at a very early stage of development, significantly investing into the network expansion. Swiatlowód Inwestycje EBITDA of last year exceeded PLN 140 million with a margin of 35%. We expect this to increase along the growing network acceleration. And obviously, we plan to strengthen it further by Nexera deal of course, subject to regulatory approval, which we are awaiting now. This acquisition is expected to be highly synergetic.

Now switching to connectivity on Slide 9. In 2025, we reinforced our commitment to provide the fastest, the most reliable and trusted connectivity in Poland. And I want to start from mobile. We made big progress in 2025. Major projects of radio access modernization, which we have started several years ago is now almost finished. It is making our network more energy efficient and will enable usage of new spectrum for -- new spectrum bands for 5G.

For 5G, it was the second year of rollout on C-band spectrum. We are covering now already 60% of population in Poland, meaning that we are very much advanced on the market. Rollout on 700 megahertz spectrum, aiming wide coverage has started just 6 months ago, and we are already at 64% population coverage. These both spectrum bands, we boosted 5G coverage to 85% by end of last year from below 40% a year ago.

And we -- as well, we have completed the commissioning of obsolete 3G, allocating frequencies to 4G and enabling us to increase network capacity and improve the quality of services, which we are providing. In fiber, we are investing both in the reach and the coverage of the network, but also in service quality. Orange Fiber from a quality perspective was again validated by independent benchmarks where our fiber network is ranked again #1 in 2025. Fiber reach continues to grow fast. We have added another 1 million households to the coverage, reaching 10 million homes in total. It was mostly delivered by Swiatlowód Inwestycje and also by access to other third parties, FiberCo's networks.

Our own build is targeting wide zones with projects supported by EU subsidies. Rollout as well accelerated in 2025, as we have invested almost PLN 90 million in this project, and it will be completed this year in 2026 with investment effort of over PLN 100 million -- PLN 120 million.

Let's zoom now on transformation. With Lead the Future, we have initiated a new wave of transformation. You remember the ambition of our Transform and Innovate pillar to boost efficiency, which will be leading to improved profit margins. We will achieve it through automation, through process reengineering and opportunities which are arising from integrating AI in our operations.

Firstly, in sales and customer care operations. Here, digital channels are progressing, and we see them being much more efficient and much better responding to customer expectations to be served online fast with seamless experience. And as a result, we are approaching 30% in share of digital sales with ambition to reach 35% by 2028.

My Orange app is our key asset here contributing to this target. We are constantly improving it, adding new functionalities and using AI for personalization. In customer care, we are making another step change with AI agents. For instance, in 2025, we launched an agent, which helps our advisors to provide optimal remedy for technical problem solving. This reduced number of contacts and improving customer experience. We are working on more agentic solutions to be implemented in this year 2026 for better quality and better productivity.

Secondly, in network operations, we improved cost efficiency last year, and we are aiming to do more. To reduce cost of service delivery and network maintenance, we use more remote tools, self-installation, boxless solutions for content and TV, and AI supported dispatching of technicians. We have started progressive decommissioning of legacy copper network targeting first areas with less customers, less usage and accordingly less profitable. And recent deregulation decision will allow us to do it at a much better speed.

And finally, we are reducing costs across all our functions, making ourselves leaner and more agile. In recent months, we have made several organizational changes aiming to streamline our operations. And as a part of this process, we signed a new social plan with our social partner under which number of employees will be reduced by 12% over the next 2 years.

And finally, I want to stop at the moment at our sustainability agenda and achievements. I'm convinced that growth and responsibility go together. And our actions bring a real difference and contribute to the development of Polish society and economy. And we are very proud of our progress in 2025. In today's fast-changing world, there is a growing need for education on responsible and safe use of technology. And here, we concentrate our energy, the number of beneficiaries of various digital programs was growing and exceeded 200,000 last year. And as well last year, our Orange Foundation has celebrated 20 years anniversary, a proof of our long-term commitment for society and for digital inclusion.

On environmental area, in 2025, we significantly reduced CO2 emissions. Actually, we almost reached our goal, which we set for 2028. This was possible as all the electricity we consumed came from non-emission sources. And finally, in 2025, we reinforced our efforts in the area of circular economy, thanks to newly launched platform, we significantly improved the collection of used handsets. And also, we significantly increased the share of refurbished fixed devices that we distribute. It brings a positive impact on the environment, but also is improving our cost base.

So this being said, I want to pass the floor to Jacek to give more deep dive on our financials.

Thank you, Liudmila. Good morning, everyone. Let's start with the financial summary. Our financial results last year were strong and they came above expectations. We have increased both revenues and EBITDA by over 4% year-over-year and expanding operating activity is the main driver of our value creation. What is important is that this growth is built on a solid sustainable foundations. We've executed a disciplined investment plan, allocating capital to growth areas and decreasing CapEx intensity. We are confident to further optimize capital allocation going forward. As a result, we have converted the EBITDA growth to cash flows, reaching PLN 1 billion of organic cash flows in 2025. These achievements have also built solid foundations for further growth of shareholder value in the future.

Let's now look at details of our performance, starting with revenues. Q4 revenues have increased by a strong 4.6% year-on-year. Please note that all key products have contributed to this achievement. Let me comment on two of them with the highest impact. First, core telecom services, which are key for our growth, value creation and margins. We're pleased with the sustainable strong performance stemming from a simultaneous growth of the number of customers in the key product areas and of their respective ARPOs. Core telecom revenues were up 5.5%, so at the high end of our midterm guidance. This was achieved versus a high comparable base of Q4 2024, when we implemented price increases for the customer base of prepaid.

The second item is wholesale. It was an exceptional quarter for wholesale with 27% year-on-year revenue expansion. Q4 included the full impact of the fiber backhaul contract signed in the prior quarter in Q3. And also, it was the last quarter with revenues from national roaming. We expect to further grow the value of our wholesale business going forward.

To sum up on the top line, first, we're happy with the pace of revenue growth and the key drivers of our margin. Second, revenue growth is supported by all major product lines. This includes IT&IS revenues, which have returned to a double-digit growth of sales in 2025, a dynamic that will continue this year.

Let's now switch to profitability. We're pleased with a strong 6% growth of the EBITDA after lease in the fourth quarter. This was driven by a 5% increase of the direct margin. It reflected consistent margin expansion from core telco services coupled with them discussed significant contribution from wholesale. Indirect costs have increased year-over-year, but mostly because of a PLN 30 million impact coming from 2024 when we recorded a catch-up of the fiber rollout margin in the last quarter of 2024. This item apart indirect expenses grew by less than 1% year-over-year as cost pressures were contained by the savings program.

Our cost transformation is accelerating. It delivered savings in workforce, network operations and G&A, and we plan to increase the savings run rate that will be visible in 2026. To recap on EBITDA. First, we delivered a strong 4% growth in the full year of 2025 with an acceleration in the second half of the year. Second, the growth is built on sustainable drivers as the increasing revenues and margins are converted to EBITDA via our high operating leverage.

Let's now turn to net income on the next slide. We achieved PLN 760 million of net income last year. This included PLN 150 million provision for a 1,000 employee headcount restructuring to be done in 2026 and 2027. It is important to our transformation and it will increase our efficiency going forward. Excluding this provision, net income was on a comparable level to 2024. On the one hand, it was driven up by growing EBITDA, a factor that will consistently boost our net results going forward. On the other hand, it was brought down by 2 elements that we don't expect to repeat in the future. First, depreciation, which was driven up by purchase of the 5G license, changing asset mix and one-offs with opposite impacts in both 2024 and 2025. Here, we judge depreciation to have reached its peak in 2025.

Second item is finance costs, which increased as a consequence of higher debt due to the purchase of the 5G license and higher interest on the PLN 1.2 billion refinancing, which we had made back in the middle of 2024. We expect significant growth of net income this year in 2026. As the EBITDA growth is its fundamental underlying driver while the negative impacts visible in 2025 are largely nonrecurrent.

Let's now switch to capital expenses on the next page. Our economic CapEx amounted to PLN 1.8 billion. So it was at the very low end of our guidance. CapEx intensity measured as a percentage of revenues, has decreased to 13.8% in 2025, in line with our midterm ambitions. We allocated 40% of CapEx to fiber and mobile networks. In fixed, this included fiber rollout in white zones and connections dedicated to the B2B.

In mobile, we have significantly progressed with 5G deployment as discussed by Liudmila a few minutes ago.

Please note that this year, in 2026, we will finalize the EU subsidized fiber build, and we will reach the peak of the run rate of 5G rollout. This latter program should be nearly finished by the turn of 2028 and 2029 and both of these present us with an obvious opportunity to further decrease CapEx intensity after 2028.

Let's now look at cash flow on page -- on the next slide. We generated PLN 1 billion of organic cash flows last year. This good result was achieved thanks to growing operating cash flows, and these were coming from the EBITDA, so a sustainable underlying positive driver. It was offset by less cash from the sale of real estate and 2025 was challenging in this area, and some key transactions were delayed through 2026. As a result, we expect higher inflows from this activity this year.

Obviously, the free cash flow was influenced by the acquisition of the 5G license. But now we have the last of the new spectrum acquisitions for 5G behind us. So the cash flow prospects going forward are much more predictable. On the balance sheet side, the balance sheet remains very strong, and we have already secured the refinancing of the PLN 3.7 billion debt that is due next year.

For the conclusion, I wanted to reflect on our value creation model shown on the next slide, which we have presented alongside with the Lead the Future strategy. Our 2025 achievements confirm that it is working well. It increased the key drivers of shareholder value creation and their underlying dynamics inspire confidence about the good prospects for the future.

That is all from me, and I hand the floor back to Liudmila for the outlook and conclusions.

Thank you, Jacek. So now coming to our priorities for 2026. We have 4 main areas and all 4 are rooted in our strategy in Lead the Future and it starts with profitable commercial growth. On consumer market, we aim to deliver a solid growth of core telco services, and we are going to achieve it through our balanced volume and value strategy in mobile, in fiber and in convergence.

Secondly, we aim to achieve profitable growth in B2B. For small businesses, we will differentiate by complementing telco products with digital services, such as KlikAI web creator that we have just launched in subscription model. For large businesses, we bring new operating model that will group all our IT&IS competencies under one roof in order to unlock more potential. So commercial growth will be accompanied by high-intensity transformation to improve our profitability.

As we discussed today, we have high ambitions in this area. Our commercial ambitions require a reliable and high-quality connectivity in order to answer to customer demand and accordingly investments in innovative solutions and tools that bring value for customers and for our operations. And this is the -- reflecting the way how we will prioritize on our investments, of course, keeping an eye on return.

And now let's turn the page to see how this translates into financial targets for 2026. We aim to create significant value for shareholders this year. 47% in total shareholder return in 2025 is impressive, and we will make every fourth to sustain this positive momentum. We plan to grow revenues at low single-digit rate, noting that it is essential to maintain a solid dynamic of core telco.

We expect another year of solid EBITDAaL growth in the range of 3% to 5%. It will be achieved through a combination of profitable commercial growth and cost transformation. Higher revenues and high EBITDA will be achieved with similar level of investments like in 2025, meaning a decrease in CapEx intensity obviously, roll out of 5G and completion of fiber project and white zones will be key for 2026.

In line with the midterm objectives, we provide guidance for organic cash flow. It reflects our internal focus on these key return metrics. And we are very happy to achieve PLN 1 billion in organic cash flow in 2025, and we are aiming to generate at least PLN 1.1 billion in cash in 2026, a double-digit percentage growth as our objective speaks for itself.

And looking at the midterm guidance on the next slide. As you have seen, 2025 results were good. And we also expect strong outputs in 2026. We are confident regarding our ability to reach this ambition. And as a consequence, we are more optimistic regarding the greater value in the future. And as such, we are upgrading our midterm guidance. For EBITDAaL, we are maintaining guidance of CAGR at low to mid-single digit. However, we clearly see that the current trends make high end of this range more probable.

Regarding eCapEx, we are making our commitment more concrete. This -- we will spend PLN 1.8 billion per year. This means growth in revenues and EBITDA with a stable level of investments, so improving our CapEx efficiency. The combination of solid EBITDAaL growth and flat eCapEx enabled us to be more bullish regarding cash generation. We are now expect to generate at least PLN 1.4 billion of organic cash flow in 2028. This implies at least 40% growth versus 2025 level and a double-digit CAGR.

This guidance clearly illustrate better prospects for future, for value creation, for our shareholders, dividend is also very important in this regard. So let's have a look on it on next slide. As presented today, we delivered our objectives for 2025, and we enjoy more optimistic future prospects. As a consequence, we recommend a cash dividend of PLN 0.61 per share from 2025 profits. This is a 15% increase versus last year. The level of PLN 0.61 per share now becomes a floor for the remaining years of Lead the Future plan. A year ago, you remember, we told you that we are working to create conditions to enable us to grow dividend, and we are very glad to be able to deliver on that, and we will continue with these efforts going forward.

This concludes our presentation. And in just a moment, we will be ready to take your questions.

Yes. Please give us a moment. We will return for Q&A.

Welcome back. For Q&A session, we are joined by 4 more board members. Jolanta Dudek, Deputy CEO, in charge of Consumer Market; Bozena Lesniewska, Deputy CEO, in charge of Business Market; Witold Drozdz, in charge of Corporate Affairs; and Maciej Nowohonski, Board member in charge of wholesale market.

[Operator Instructions] We have a first question coming from the line of Dominik Niszcz from Trigon.

I have two questions, one on CapEx and the second on mobile B2B. So I would like to ask for a comment on CapEx in the context of rising prices of certain network components, you actually are not increasing your CapEx guidance in the long term, but lowering it from around 14% of revenues to at 13%. So should we understand that despite rising equipment prices, you believe there is no need for such high investment volumes as you previously assumed? And what is the price growth component in 2026?

Thank you, Dominik. I would reiterate, yes, our CapEx guidance well, is an all-in guidance. It's not excluding any price increases or price decreases because you have some elements increasing in prices indeed and the memory chip crisis, it is resulting in some prices that might be temporarily or permanently increased. It also includes the fact that while eCapEx in '25, '24 was heavily supported by the sale of real estate, the proceeds from sale of real estate, this stream of both cash flows and CapEx support will inevitably be disappearing by the end of the plan.

And it does involve a lot of effort on our side to make sure that we invest today in platforms and in systems that allow us to be more efficient tomorrow. This goes for IT expenses. And you will see by comparing the structure of our CapEx today to the structure of our assets or even to the structure of the CapEx 6 or 7 years ago that proportionately, we're investing more, and this is linked with IT transformation. It allows us to be more efficient on the side of the OpEx, but it also gives us future CapEx benefits as we will have less labor-intensive and also capital works.

So yes, you will have both elements increasing our CapEx or pushing it upwards and the memory chip prices are a part of this. You will also have elements that will be relieving some of the pressure and giving us a potential to decrease CapEx. The fiber projects are near completion this year and starting from next year, this means roughly PLN 100 million less of CapEx dedicated to these type of programs. We will have the CapEx peak for the 5G rollout for 2 or 3 years and then CapEx for 5G rollout will be going down.

The CapEx structure is obviously changing in according with the needs. But looking at the different projects that we have in the pipe, looking at the stage of advancement, looking at the fact that we have just finalized the renewal of the radio access network, we feel confident to be able to grow the EBITDA and revenues based on the same absolute level of CapEx.

Okay. And second question, mobile B2C, what is the share of B2B segment in your stand-alone mobile revenues? And what is behind the current weakness in this market in your view? So is it more related to the condition and number of small businesses in Poland or rather to competitive pressure from other operators?

Thank you for the question. I understand it's more for B2B. Yes. So from the perspective of last year, mobile was growing slightly less than in the previous year. As I will remind that in the previous year for a few years, consequently, we work on the price hikes and the growth of both ARPO and the overall revenue was for a few years at the level between 4% to 6%.

Now we noticed the slowdown on the market. We are in the market. This growth, especially for the small companies is a little above the 1% for the overall '25, the situation differs segment by segment. In higher segments, we have the severe price fight between operators about the big customers, big deals. And here, we treated very selectively always having in mind that we create the value and the margin for the company and some deals are not tackled by us or even we are not going below the certain threshold that still allow us to generate the margin.

So all in all, the difference between segments is very huge. We see the slowdown of the overall market according to the comparison of the results of the -- all operators, which we have till at the end of Q3 because the Q4 is not released yet fully, we see it was around the slowdown to around 1%, 1% a little plus, and we are accordingly in this market, keeping our very high market share above 32% since plenty of years.

Next question will be coming from the line of Marcin Nowak from IPOPEMA.

I have two questions. The first question would be about your optimism because it has been mentioned a few times during the presentation that your outlook is quite optimistic going forward. So my question is if still your guidance is more on the cautious side or more optimistic side going forward? And the second question is regarding the recent fine from the anti-monopoly office. Is it already fully covered in -- it was already fully covered in the second quarter under -- in an item below EBITDA or maybe there we should expect some more provisions related to that?

Thank you, Marcin. Very relevant questions. I guess what we try to do is when we give a guidance, we try to give a range in which you would find the borders of our optimism or pessimism. And likewise, when we guide for EBITDA, it's 3% to 5%. So if we would be -- if we are on a cautious side, we will be closer to 3%. If we are on the optimistic side, we will be closer to 5%. I guess what -- and where we try to give you a little bit of flavor is we did not change the guidance for the midterm, and this is EBITDA -- low to mid-single-digit growth.

But the optimism that we see right now, and it's not groundless, it's based on very solid trends in the B2C market is based on good positive business development in wholesale, and it's based on an accelerating pace of transformation that we're observing. That allowed us to, first, deliver the good results for '25, deliver a guidance, which is closer to mid than too low for the '26. And we do see that current trends would be with some degree of optimism point us towards the mid rather than low single-digit increase of EBITDA CAGR for the midterm.

As for the cash flow, we did not change our stance. The cash flow guidance was and is at least -- it was at least PLN 1.2 billion. Now we expect to have at least PLN 1.4 billion. It means we will be working to try and make sure that we can deliver more cash, if possible.

On the fine -- on the second question, Marcin, on the fine, we will not comment on an ongoing proceeding. So no comments regarding any items below EBITDA, no comments on the provision side, everything relating to risks, claims and litigations is appropriately described in the notes to the balance sheet, which you will find us publishing roughly mid-March.

Next question will be coming from the line of Ali Naqvi from HSBC.

You mentioned that you'll be seeing some reduction in capital intensity after your 2028, 2029 period. Could you give any kind of quantification of what that could go down to? And then your leverage is lower versus peers and the low end of the below market telcos. I appreciate you may be restricted in doing buybacks, but to keep the balance sheet more efficient, have you considered doing special cash returns, especially considering you're quite confident of the organic free cash flow you're going to generate to 2028?

Okay. So on the capital intensity, First, we will be progressing with capital intensity reduction even before we are going to pass the peak of the 5G rollout. If you imagine us keeping CapEx at PLN 1.8 billion and growing the EBITDA by -- let's be optimistic, mid-single-digit CAGR, then it is clearly decreasing CapEx intensity. CapEx intensity means that CapEx as a percentage of revenues will be trending towards 13% by the end of the plan. And so that is step one. And then well, I think we will not guide for the CapEx in the period after the strategy.

But clearly, the 5G rollout represents a few hundred million that we are spending each year. And this is something that will first decrease towards the end of the plan. And at some point in time, when we will have the 5G rollout completed. Of course, we will have other business priorities back then. But definitely, completing a rollout of 5G that is today consuming a few hundred million yearly, it does present us with an opportunity to decide do we increase investments in other areas that could be value accretive, productive? Or do we further decrease the CapEx going forward, knowing that already by that time, we will be trending towards 13% of revenues.

So it's 2 phases, okay? One is relative to revenues to decrease CapEx by 2028. And then after we will have the 5G completed, we will have a decision to make, do we see other sources of good projects to invest this capital or do we further reduce capital intensity.

On the shareholder remuneration, today, we are happy with a very strong balance sheet. I think it does give us ample balance sheet flexibility going forward. As far as shareholder remuneration is concerned, we haven't considered buybacks because of the limitations that you're aware of.

And for the dividends, we have the policy that today's recommendation once voted by shareholders on the AGM will become the floor for the dividend going forward within the period of the strategy. And obviously, I will repeat the same message that I said 1 year ago. We will be working to create conditions that will enable us to be in a possibility to further increase shareholder remuneration in form of a dividend going forward.

Thank you. We do not have any more voice questions. So maybe I will read the instructions. [Operator Instructions] But there is one more question that came to us online. In the meantime, we have more voice questions, but we take those later.

But the question on -- that came to us via text is, in the commentary through the Q4 results, the CEO pointed out that we are poised to generate substantial profits in the coming years from fiber backhaul business concluded in the second half of '25. Could you please say a few words about this agreement?

So good morning, everyone. Thank you very much for the question. And excuse me for my voice -- which definitely has seen better days, but this is in contrast to what we actually achieved on the wholesale line of business, the performance there is really satisfactory to us. I will not get down into the details of the commercial terms and conditions of the contracts that we are signing.

But to give you color of what is happening on the holding market, I think, first of all, you are looking at the different markets in Europe and all across the globe, and you can compare or differentiate conditions on these markets, in Poland, particularly what strikes you probably is still the fragmentation of the market, and on this fragmented market, Orange Polska stands out in terms of the infrastructure. And we actually enjoying the basically, the success, which is purely generated from that, that we are strong in infrastructure, the market on which operators buy from other operators is large and is growing.

The wholesale fiber, which normally, I would say, is connected with the wholesale activity is only a part of this market. And there is plenty of operators, which are actually interested to buy infrastructure and capacity for the transport network. And we basically respond to that constructing within the last 5 years, very strong activity and competence on that market. We are truly a partner to other operators on wholesale activity. And the result of that is visible in the contracts that we are winning on that front. So we will enjoy that particular contract for the coming years. Obviously, there is plenty of things to execute, but we are confident that we are able to do that with success.

Next voice question is coming from the line of Nora Nagy from Erste Group.

Congratulations on the solid results. Two questions from my side, please. Firstly, on the tariff indexation, if you plan to implement it in 2026? And then if so, on which services?

Hello, everyone. Thank you for these questions. In B2C, this year, we have implemented 2 price hikes for tariffs, first in Jan for mobile and in Feb for fixed broadband. In the meantime, we informed our customers about CPE clauses price hike for customers with indefinite contracts. So simple answer, we -- this year, we continue what has been done last year, and we have just implemented those 2 price hikes.

And I think just to complement, I think on the price hikes that Jola mentioned were for the customer [ x ], so for the acquisitions and retentions, mobile and broadband. And the indexation obviously applies to the customer base that had eligible -- was eligible because they had the clauses in the contracts, and they were out of loyalty.

Yes. And then secondly, how do you see the mobile phone services of Revolut in Poland? Shall we expect the company to focus more on the low-cost segment following the Revolut market entry?

So as far as Revolut offer concerns, we expect that this offer will be dedicated mainly for the niche segments. And why, first of all, we do not see the impact on mobile number portability to Revolut. The second, this is the offer only limited to e-SIM. Third point, this offer has roaming packages on top and it's limited only to mobile, while home market is going to -- is focused on packages. So for the time being, we do not see the important impact on our base and on our market.

Another voice question is coming from line of Dawid Górzynski from PKO BP.

Actually, I have three questions. So maybe I will address them one by one. First one is on your assumptions behind over PLN 1.1 billion organic cash flow for this year. I wonder like what do you assume for the value of assets sold? And regarding cash CapEx, what maybe other differences between eCapEx and cash CapEx this year, if cash CapEx may be like higher than eCapEx because of some reasons.

So for this -- thank you for your question. The PLN 1.1 billion organic cash flow. the base is what we achieved this year. The main growth driver is the growing EBITDA because we do expect to have 3% to 5% EBITDA growth, and we do expect for this EBITDA growth to convert to cash. We did not make bold, unorthodox assumptions on working capital. And we have assumed eCapEx to be flat at around PLN 1.8 billion. And eCapEx includes both the CapEx spending and also the inflows from sale of real estate. As I mentioned, last year, real estate sales were a bit below our expectations due to a challenging market and due to some key transactions being delayed even from late December.

So on the one hand, the delay of the transactions gives us some boost and potential to do more this year from real estate sales than we did last year. But then on the other hand, it's not a recurring business. We really need to be prudent on our assumptions for real estate sales and for how much we are able to sell because this is a transaction by transaction and a buyer-by-buyer market.

So I will go back. It's the EBITDA that is driving the better prospects for cash flow, not some wild assumptions on neither working cap nor on the real estate sales. We will obviously do our best to maximize real estate sales, minimize working cap. But the underlying driver is the EBITDA growth.

Second question on the Cybersecurity bill that is awaiting the sign from the President in Poland. Do you assume any impact of that bill on like potential requirement on replacing high-risk infrastructure? And perfectly, if you can quantify that impact for next year?

Obviously, we monitor closely this legislation. The deadline for signing is tomorrow. So we will see if it is signed or not. However, as it introduces some regulations that are that -- or will not introduce, but anyway, it refers to some fields of regulation that we are aware of, and it is also fully in line with the policy that we pursue for years, then we do not expect any substantial impact from the perspective of our business and results. Maybe Jacek...

Your third question, Dawid.

And yes, last question on Nexera deal and that chance or the requirement if -- do you think that the debt in Nexera will need to be repaid or it may be stood in the company?

Thank you very much. So here, for Nexera, we are after having signed the SPA, we have not yet had the closing of this transaction. So obviously, this means that the process is really preliminary. Our intent is to keep the debt on the balance sheet of Nexera. We think that this asset will be performing much better than -- this transaction gives much better prospects for Nexera going forward.

Orange Polska and APG are highly reputable buyers. We have substantial synergies of this transaction with Swiatlowód Inwestycje, we clearly have an intent to bring Nexera under the umbrella of Swiatlowód Inwestycje. So this also means that these better prospects mean better financial prospects for the company, and we will be discussing this with the financing banks.

The intent clearly is to keep the debt and as much as we can of the debt on the balance sheet of Nexera. We are not in a position today to share with you exactly where we are in this process also because of an early stage. We are just after signing the SPA, we will be keeping you updated on what we have finally achieved. But definitely, the intent, the goal is to keep the debt on the balance sheet of Nexera.

We have one more text question. I will read it. It comes from Piotr Raciborski from Wood & Co. What impact of changes in working capital on organic cash flow? Do you expect in 2026, I guess you're -- unless you want to add the asset, but I think it was answered just a moment ago.

Yes. I mean we will see how the business evolves. We will see how the inventory levels, the receivables will evolve over time. We will need to monitor this as we go forward. I would prefer not to disclose extremely specific assumptions, but it's -- the growth of the organic cash flow is not built on an assumption -- explicit assumption of a significant improvement or a significant decrease -- increase of working cap.

It is based on the growth of EBITDA and the growth of EBITDA is coming from -- predominantly from core telecom services. So that does not imply huge requirements for working cap. And it's coming from cost transformation. And again, this is not something -- it's not sale of handsets in installments. It's not something that is requiring us to freeze up large amounts of working capital as a result of this.

So this is what makes us confident going forward, is that the progression of cash flows is based on solid, sustainable, repetitive growth patterns coming from the core business. And this is what makes this growth very healthy. And this is why we think we can sustain it, not only for 2026, but we can sustain the good progress all the way up to 2028, hence, the improving prospects for the midterm guidance.

Thank you. We have no more questions. So thank you very much for listening, watching us, asking questions in case you wanted to meet us, please give us a note on that. Otherwise, we will come back in April with Q1 results. Thank you very much.

Thank you very much.

Thank you.

Good morning. Thank you for standing by and let me welcome you to Orange Polska Q3 2025 Results Conference Call. My name is Leszek Iwaszko, and I'm in charge of Investor Relations. The format of the call will be a presentation by the management team followed by a Q&A session. Unfortunately, our CEO, Liudmila Climoc, couldn't join us today due to urgent private matters. So, the sole speaker will be Jacek Kunicki, CFO.

So, I'm passing now the floor to Jacek.

Good morning. I'm pleased to say that the third quarter was very successful for Orange Polska. The success is rooted in our strong operating performance. We've achieved very good commercial growth, especially on the consumer market, where both the customer bases and the ARPOs have increased at a healthy pace. Our wholesale line of business has delivered more revenues and more margins. This comes as a result of new business, that is, monetizing our fiber infrastructure. It will generate more value over the course of the next few years, allowing us to compensate some large wholesale contracts that are due to end in 2026. This should remind us that wholesale is our strategic asset, complementing our retail operations and reducing our risk profile. Successful commercial activity is the anchor of the Lead the Future strategy and our value creation.

After 9 months of 2025, we are pleased with the developments in this area as they lay a solid foundation for the strategy going forward. This performance has translated into strong financial results, and let's take a look at that -- these on the next slide.

I'm pleased with the financial results of Q3. We have increased revenues, profit and cash generation. Revenues were up by a steep 9.3% year-over-year, including a spike in IT&IS sales and also a strong consistent contribution from the core telecom services business. This solid expansion of the core business, combined with cost discipline, drove the Q3 EBITDA almost 3% up year-over-year despite a demanding comparable base. We're really happy with this result. Our eCapEx has amounted to just over PLN 1.1 billion year-to-date. It is at a comparable level to the same period of last year, and it is in line with our full year plans. This quarterly evolution reflects different timing of CapEx between the 2 years.

Following a stronger Q3, the year-to-date level of organic cash flows is also stable year-over-year. This reflects higher cash from operating activities, driven by the EBITDA expansion, which compensated for less proceeds from real estate disposal. My takeaway from this is that robust Q3 results give solid support to our full year prospects. After 9 months of the year, we're confident to deliver on our 2025 objectives and to create further value for shareholders. Let's now look -- take a look at the commercial activity in more detail on the next slide.

It came very solid across all core telecom services. What particularly stands out this quarter is Mobile. The net customer additions have exceeded 100,000 and were at the highest in more than 4 years. As you may recall, our B2C strategy is focused on reaching new households not yet using Orange Polska services, in order to unlock the growth potential for the future. We're pleased that it is bearing fruit, and we are enlarging our customer footprint. The robust growth of the customer base was coupled with an increase of the Mobile ARPO, a slight improvement versus the trend observed a quarter ago. This comes due to a strong ARPO development in the main consumer brand, partly diluted by an increasing share of the B-brand customers in the overall customer base.

Growth in convergence and fiber was solid, consistent with previous quarters and in line with our strategy. It was a combination of 5% and 13% growth of the respective customer bases and a solid 3% to 4% uplift of the average revenue per offer. In spite of fierce competition in fiber, we are successfully competing in the local battles and growing well by addressing our customers' need for higher speeds and for more content. Commercial growth is essential for future value creation, and these results demonstrate that we have the right commercial strategy to prevail in the core telecom offering.

Let's now take a look at how these translated into revenues. Our Q3 top line dynamic was exceptional, above 9% growth year-over-year. It reflects 3 main developments: first, an exceptional hike of the IT&IS sales; second, a consistent growth of the core telecom services revenues. And 3 -- third, the accelerated dynamics of wholesale. Let's now review them one by one in a little bit more detail.

The IT&IS revenues went up by an extraordinary 47% in quarter 3. The key driver of this performance was resale of software licenses. It is a tool to create future upsell potential. Hence, despite the large top line, its immediate contribution to profits was negligible. Nonetheless, looking at this development and also at other wins in our pipeline, we are now more optimistic about the future prospects for the growth in IT&IS revenues and profits.

What is most important in our top line performance this quarter is that revenues from core telecom services grew by 6.5% year-over-year, repeating their strong and consistent dynamics. You've seen the drivers of this growth: robust increase of our customer bases and solid ARPO development. Finally, the third factor, wholesale. Its growth has accelerated on the back of fast revenues coming from the new fiber optics backhaul business that I mentioned earlier on. It is a multiyear business development, and it gives us a solid baseline also for 2026 and beyond. We anticipate to further grow the value of our wholesale line of business activity in the future.

To sum up on revenues, after 9 months of the year, the top line growth exceeds 4%. Revenues from core telecom services are delivering a rock-solid performance this year, supported by robust net customer additions and ARPOs. And 3, the new business in wholesale significantly boosts its future prospects, once again demonstrating the value-add of this activity to Orange Polska. Obviously, the profitable revenue growth is the main driver of the higher EBITDA. Let's look at the latter on Slide 7.

EBITDA for Q3 has increased by almost 3% year-over-year. It benefited both from growth of the direct margin and from less indirect costs. Direct margin grew by PLN 21 million year-over-year and its underlying increase was even greater. Please note that last year's results included a positive one-off related to capitalization of PLN 53 million customer connectivity costs. Obviously, excluding this one-off, our direct margin for Q3 would have grown by 4% year-over-year. This outstanding growth was driven by high margin from core telecom services and by an increased contribution from wholesale. Indirect costs were PLN 4 million lower versus the third quarter of last year. We benefited from increased efficiency of network operations, including savings in field maintenance.

The transformation of the network activity is an important part of our strategy, and we're pleased that we can already report its first tangible results. Q3 indirect costs have also reflected lower growth of labor costs and less advertising expenses versus the previous quarters. To sum up on EBITDA, we are very happy with its growth in quarter 3. It stems from a healthy combination of high margin from core business and cost discipline. And obviously, this is our main recipe to deliver consistent and sustainable EBITDA growth throughout the Lead the Future strategy period. With 3.4% growth for the 9 months of this year, for the year-to-date, we are obviously well on track to deliver on the full year objective in this area.

Let's now turn to cash flow on Slide 8. Year-to-date, we generated nearly PLN 670 million of organic cash flow. This is almost exactly the same level as last year, helped by a very solid quarter 3. The OCF benefited primarily from a very healthy growth of cash from operating activity. It increased by almost PLN 200 million year-over-year due to a higher EBITDA and also due to less -- lower working capital requirement. It was offset by higher cash CapEx and also by PLN 80 million less proceeds from real estate disposal than in the comparable period of last year.

We're satisfied with cash generation so far and with robust sources of growth coming from the operating activity. We plan for a peak of property sales in Q4, and we anticipate a solid organic cash flow in the last quarter of the year. Our leverage has increased very slightly following the acquisition of the 5G spectrum license and a payment of the dividend in July. However, our balance sheet structure remains very sound.

Let's now summarize Q3 on the next slide. So, for us, the underlying message is our commercial and financial results in Q3 were very solid. We're pleased with the performance to date and in particular, with the commercial developments. We have a well-performing core telecom services business. The prospects for wholesale operations have improved substantially, and we see initial signs of recovery on the business market. These demonstrate our strong fundamentals. We're confident to achieve our 2025 objectives and also to create further shareholder value by implementing the Lead the Future strategy in subsequent years. That's all for me and we are now ready for your questions.

[Operator Instructions] First question is coming from the line of Marcin Nowak.

Three questions on -- rather, issues for me. The first one, regarding this new wholesale deal, could you provide more details regarding how much it contributed in the first quarter to both the top line and EBITDA, for how many years this contract is signed, and if you believe that there are similar deals possible in the future with other parties?

The second issue, could you provide maybe an update on those provisions for significant risk that Orange has created last quarter? And the third issue, could you provide more detailed plans about the marketing spending and how -- by how it has been lower than in previous quarters? And what are the plans for the following quarters, especially with this lower spending, the commercial performance has been quite good.

Thank you very much, Marcin. I guess I will start with your last question. For the marketing or for the advertising and promotion spend that we were mentioning. When I look at quarter 3, the spending was roughly PLN 8 million lower than in the quarter 3 of the -- of last year. And that is -- well, it is much different if we compare to the second quarter where advertising and promotional expenses have actually grown by PLN 12 million year-over-year. So, the difference to the Q1 was not that great. But obviously, quarter 3 was with a different timing of advertising campaigns and spendings versus last year. So that is regarding the costs.

On the efficiency of those marketing spendings, I think it's fair to say we're very happy with those. Looking at the level of our net additions, both in postpaid and prepaid as well as in the convergence and fiber, we are very happy with the direction of the -- both advertising and overall the efficiency of the commercial period that we had for the back-to-school activity. And that is -- that has really delivered on our plans. So, we're now focusing definitely on the peak commercial season of Q4 and especially the second part of November and December to make sure that we are able to replicate a successful commercial activity.

Then regarding your second question, well, I will not be able to help you much. We have created a provision for risks, claims and litigations of PLN 45 million in the second quarter of this year. And obviously, we've described as much as we can in the notes to the financial statements, but we are unable to provide you with the exact detail as this is commercially sensitive. We do not want to prejudice the outcome of any activities that are covered by the provision.

And then regarding wholesale, well, it is a multiyear deal. Again, I will not be mentioning the specific commercial conditions because that is commercially sensitive. But definitely, we did see a much greater contribution of wholesale to the margin creation this quarter versus what we've seen in the previous quarters. I would say it's fair to say some of it was already -- so that was more than PLN 20 million better than in the previous quarters. Some of it was helped by the particular development that I have mentioned, and part was simply due to other business reasons because we do need to remind ourselves that wholesale is an important part of our activity, and it's not driven just by this one deal.

And this is something that -- well, we've tried flagging for quite a long time. It enables us to monetize our infrastructure by selling data transmission, by selling FTTH access, by being an active player on all the interconnect market in Poland. It also enables us to decrease the risk profile of our retail activities because we are able to grasp some of the profits on the wholesale market.

Getting back to this particular business development, it's obviously a long-term business development that we have, such as they usually are in wholesale. I would guess that the peak of the value will be the next 4 years. And I think we will see a more visible contribution of wholesale or of this business development already in quarter 4. And what I mentioned is when we take a look at 2026, we were aware, and we are aware that some important wholesale contracts are coming to an end and this particular business development should help us to offset the impact of those contracts ending. So, we're back to the state where we expect the contribution of wholesale towards our [ EBIT ] to actually be able to grow year after year. I think that is what I would mention regarding this particular activity. Thanks.

Our next question is coming from the line of Nora Nagy from Erste Bank.

Two questions from my side, please. Firstly, could you give us, please, more update on the B2B segment? And what is your outlook for the coming period? And secondly, approximately when shall we expect the next Social Plan to be released?

Thank you very much, Nora. Very relevant questions. So, on the B2B line of business, I think it's fair to say that while this line of business has been extremely successful for us in the past, and the success of the previous strategy was -- B2B was a significant contributor towards that success, we did see the B2B under a greater pressure this year, both from the connectivity business and also from the slowdown on the IT&IS market. Some of it results from a very high comparable base of last year, where we benefited from some specific activity on the wholesale SMSs. Some of it results basically from a slower -- a softer IT market.

I think it's fair to say that while we are not back to robust growth yet, so, the B2B trends, I would say, remain relatively fragile. If I'm comparing what we're seeing right now in terms of the amount of deals that we are able to win and the profit margins on the deals that we're able to win, we're getting, I would say, the first signals that could lead us to believe that we could be going back to growth in the next 2 or 3 quarters. That would be my outlook for the B2B. And that is something that we really need.

You know that the Lead the Future strategy and generally, the value creation in Orange Polska, it starts with the top line and with a profitable top line, so with a direct margin. And we need the 3 engines of commercial activity to be delivering results. We see the B2C engine really going ahead full steam. We do see an acceleration in wholesale and improved prospects versus the ending contracts of 2026. So, between the last quarter and this quarter, we are more confident about the level of wholesale activity next year. And then I think the next step is we need B2B to get back to solid, consistent growth as it used to deliver in the past. And this is when we will be really happy with our ability to grow the EBITDA, to grow the cash flows on the back of a profitable expansion in the commercial activity.

And then getting to your second question, before the year-end I would expect we will close the discussions with the social partners for the next round of Social Plan, which I anticipate it will cover 2026, 2027, and we should come back to you before the year-end with a current report whenever we do finalize it. And then probably this current report will also include some early estimate of the provisions that you would see in the income statement for the fourth quarter. Obviously, the final ones might be -- will be reported when we will report the quarter 4, but stay tuned for the next few months, and I'm sure that we will get back to you with the news on the Social Plan before the year-end.

Thank you. We have no more voice questions. Two questions that came online. First question, they cover topics we've already discussed, but maybe in a slightly different angle. So, a question from Pawel Puchalski from Santander.

Wholesale segment, are you pleased with Q3 2025 Wholesale segment growth pace? And should we expect its further acceleration in coming quarters, years? What are wholesale margins? What is wholesale cash conversion? May we consider Q3 '25 wholesale pickup to represent likely driver of 2026 DPS increase?

So, thank you, Pawel, for your questions. And you've rightly spotted wholesale as a point of focus. I think it's very relevant. Yes, we are pleased with the wholesale acceleration in Q3, definitely pleased. I do expect that we will have good value contribution from wholesale also in quarter 4. So that is something that will help us before the year-end, and it makes us even more confident in our ability to post a nice EBITDA growth this year. I think that is definitely a big help.

When it comes to the next years, well, you are aware that we were previously anticipating that due to some contracts ending in 2026, wholesale might be under pressure in that year. I think that situation is much easier now, and we would be looking at ourselves actually getting a positive contribution from wholesale year-over-year because of this new business development. So that is definitely improving the prospects for wholesale going forward.

And then in terms of margin and cash conversion, what I would say, it really depends on the level -- the margins really depend on the level of -- on the revenue line of wholesale because if you take some interconnect, the margin might be thin when we are looking at the interconnect coming in and going out, like some transit activities. But overall, the relation of revenues to margin is extremely high on those services where we are monetizing the existing infrastructure.

And likewise, when we look at the cash conversion ratio, because we are treating wholesale as a way to monetize mostly existing infrastructure, then yes, the conversion of revenues to cash is extremely high, much, much higher than on the retail activity. It is because we are using and monetizing whatever infrastructure already exists. So obviously, wholesale has its limit when it comes to the size because by nature, it is filling up the needs of our competitors in this area. But the -- our ability to extract margin and cash from whatever revenues we get is extremely high. And that's why wholesale is a very important contributor to our results.

On the DPS, I think it's -- stay tuned and we will talk about that in February because that is the moment that we make the decisions, and we are in a position to make some recommendations. What I keep on repeating throughout this year is that our primary focus with all the months except February, is to create conditions to allow us to be generating more profits and to be in a position to share more value creation with our stockholders, shareholders. And so, I do believe that the growth of profit and cash generation in quarter 3 is an important step in the direction of further value creation for the shareholders of Orange Polska.

We have another voice question coming from the line of Dawid Górzynski from PKO BP.

I have 2 questions actually. First on net customer additions in Mobile segment. It was particularly strong in the third quarter. And I wonder if there were some particular large clients that entered the base this quarter or it was like just a successful marketing activity from your side? So, this is the first question. And the second question is about organic cash flow outlook. Right now, we are flat after 9 months of the year, we are flattish, like organic cash flow is flat year-on-year. Last year was particularly strong. And I think that the expectation was that this year, CapEx -- sorry, organic cash flow should be lower. I wonder if you still think this is the true or maybe you see some upside potential? And you think that like exceeding PLN 1.1 billion of organic cash flow this year is at hand?

Thank you very much for your questions. I think starting from the net additions, yes, we did have a support of 2 large accounts in the Q3 numbers. And so, this was -- this is something that we are quite happy about. You could have read in the press that we took over 15,000 sim cards from the Polish Post. But this -- even if you were to take out those larger deals, it's still the best quarterly result in the last 3 years. So, I think -- I'm looking at the data right now for B2B, for B2C, for all the brands of both B2B and B2C, and it's -- across the board, we are very, very happy with all the results. If I take a look at the main Orange brands, the best results in a few years, new brands, new mobile, very good results, flex brands, very good results. It's across the board, good performance. And I would say both in postpaid and prepaid. So, this is particularly strengthening.

And it reflects a good offering that we've had. It was supported by the family offer that we launched. It was supported by, I think, quite good advertising and a straightforward messaging for this commercial period. So, I know that my colleagues in marketing were happy with the results. And also, throughout this year, we do see simultaneously a good increase of the prepaid base. And when we take a look at, again, at the actions of this, it's about the quality of the promotions and the advertising. It is about us strengthening the position in some of the key distribution channels that we have had.

And it enabled us to have a volume growth despite the fact that we've significantly increased the ARPO in prepaid and that we've gained a substantial amount of revenues and margin from prepaid as a result of that. So generally, mobile activity, very good in quarter 3, and I would not say it's a one-off driven activity. Obviously, everyone is now focused on the key period of November, December, where we need to be smart about the level of retentions that we make. But equally, we want to get as much as we can from the market when the availability comes in. So that is on the net additions.

For the organic cash flow, I believe the PLN 1.1 billion that you mentioned was 2023. And last year was PLN 980-something million. I do agree this was quite a strong comparable base, which is something that we had mentioned. We are stable after 3 quarters. We are heading into quarter 3 with quite good operating performance dynamics, quite good from the perspective of the EBITDA and the ability to convert the EBITDA on to operating cash flow. So that is definitely supporting quarter 4. I think the main unknown today is how much real estate will we sell in Q4. Obviously, we're planning for a peak of real estate sales. That is directly helping our cash position. And so that remains, I think, the main uncertainty. But we are relatively confident about posting a good result, both in Q4 and for the full year.

And we have one more text question from Piotr Raciborski from Wood & Co.

Congratulations on strong Q3 2024 results. Could you please again comment on strong ICT sales growth? Do you expect similar growth trends in the upcoming quarters? Do you see an increased demand on IT services from public institutions?

Okay. Thanks a lot. Well, we don't expect that 47% year-over-year in quarter 4. It was quite an exceptional event. And I did mention it's -- it was driven by resale of licenses with a small margin. But it is important that we conduct these deals for the sake of the future upsell that we are able to do on the back of these deals. So, I would really not disregard the resale of licenses and our ability to then monetize on them over the next 4, 5 or 6 quarters. That is definitely worth doing, and we will continue doing that.

Then regarding the future prospects, I think for us, it's not only a matter of Q4, but it's a matter of getting the right momentum to grow the revenues and margins from IT&IS or from ICT over the next years. I think when we take a look at the long-term potential, we are very optimistic. There is growth that is there to be had over the next years, both for revenues and for margin creation. And that is definitely the case. When it comes to IT, yes, it includes IT. I think that the IT market, while it was relatively soft this year, I do believe that it has still a lot of growth potential. And so, we definitely count on ICT revenues and margin growth in the next periods to come to help us to increase the EBITDA, increase cash generation and deliver value for shareholders.

Thank you. It appears we have no further questions. Thank you very much for participation. Please let us know if you'd like to meet us and then talk to you in February. Thank you.

Thank you very much. Bye-bye.