registration document France Telecom 2009 - Orange.com

analysis of the financial position and earnings
9
ANALYSIS OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
9.1.2.4.1 Capital expenditures
(in millions of euros)
2009
Financial years ended December 31
2008
2008
basis (1) basis
comparable historical
Chg. (%)
Chg. (%)
basis (1) basis
comparable historical
2007
historical
basis
Capital expenditures on tangible
and intangible assets (2) 5,887 7,133 7,316 (17.5)% (19.5)% 7,108
CAPEX of continuing operations 5,304 6,283 6,414 (15.6)% (17.3)% 6,459
CAPEX of discontinued
operations (3) 355 405 453 (12.3)% (21.7)% 520
Telecommunication licenses 58 270 273 (78.6)% (78.8)% 85
Investments fi nanced through
fi nance leases 170 175 176 (2.2)% (3.1)% 44
Financial investments (4) 1,532 - 761 - 101.3% 1,117
(1) Unaudited data. See Section 9.1.5.1 Transition from data on a historical basis to data on a comparable basis.
(2) See the Segment information of the consolidated fi nancial statements.
(3) Disposal of Orange in the United Kingdom underway (see Section 9.1.1.4 Key events in 2009, Section 9.1.3 Analysis by operating segment, Segment information of the consolidated
fi nancial statements and Notes 3 and 11 to the consolidated fi nancial statements).
(4) See the Financial glossary appendix.
Capital expenditures on tangible and intangible assets excluding licenses
CAPEX OF CONTINUING
OPERATIONS
(in millions of euros)
2009
Financial years ended December 31
2008
2008
basis (1) basis
comparable historical
Chg. (%)
Chg. (%)
basis (1) basis
comparable historical
2007
historical
basis
France 2,160 2,306 2,302 (6.3)% (6.2)% 2,277
Spain 440 569 569 (22.6)% (22.6)% 624
Poland 500 597 736 (16.2)% (32.0)% 962
Rest of the World 1,405 1,591 1,582 (11.7)% (11.2)% 1,488
Enterprise 299 356 356 (16.2)% (16.2)% 407
International Carriers & Shared Services 500 864 869 (42.2)% (42.4)% 701
GROUP TOTAL 5,304 6,283 6,414 (15.6)% (17.3)% 6,459
As a % of revenues 11.5% 13.4% 13.4% 13.9%
(1) Unaudited data. See Section 9.1.5.1 Transition from data on a historical basis to data on a comparable basis.
9
2009 vs. 2008
On a historical basis, the capital expenditures on tangible and
intangible assets excluding licenses of continuing operations
decreased by 17.3% or 1,110 million euros between 2008 and
2009. The year-on-year decrease takes into account factors
that cut capital expenditures, namely the impact of foreign
exchange fl uctuations, which represented 131 million euros.
On a comparable basis, the capital expenditures on tangible
and intangible assets excluding licenses of continuing operations
were down 15.6% or 979 million euros between 2008 and
2009. In 2009, capital expenditures were adjusted in the light
of the general slowdown in business, while investments in the
Group’s new operations in the Rest of the World and strategic
investment programs in mature countries were maintained. The
reduction in capital expenditures on tangible and intangible
assets excluding licenses between 2008 and 2009 resulted
mainly from:
■ a 301 million euro reduction in capital expenditures on IT,
stores, property and various other assets, while transformation
projects and those aimed at boosting productivity were
maintained;
■ a 275 million euro reduction in narrowband investments
(public switched telephone network and 2G), in particular
i) in mature countries (France, Belgium, Spain, Poland, etc.),
refl ecting the slowdown in investments linked to networkcapacity
extensions, and ii) in countries experiencing a
substantial economic slowdown (Romania, etc.);
■ a specifi c program relating to the acquisition of technical
premises in France in 2008. These asset acquisitions from
Foncière des Régions represented 163 million euros in 2008;
■ an 85 million euro decline in investments in services and
innovation, in the light of the slowdown in demand. However,
investments in key areas, such as content rights and
content aggregation and distribution platforms continued to
rise; and
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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