Orange – AGM 19 May 2020
ITEMS 3, 16, 21 and A: The company proposes a dividend of €0.50 per share (i.e. €1,330 M) (resolution 3). This is significantly more sustainable for the company than the initial proposal (€0.70 per share). Indeed, in view of the group's future investment needs (particularly in the face of the 5G challenge), but also the need to control or even reduce its debt, this proposal seemed excessive to us, and we therefore prefer the new proposal.
Regarding the share buyback authorization (resolution 16), the company's practice in this area is rather reasonable since 91% of the shares bought back are used to cover incentive plans (the remainder being used for the liquidity contract). We therefore support resolution 16. However, for the reasons mentioned above in connection with the dividend, and in light of the current context, it would not be prudent to allow these repurchased shares to be cancelled. We therefore do not support resolution 21 (cancellation of shares) and we support the external resolution A filed by Employees, which proposes to amend resolution 16 relating to the share buyback so that it cannot be used to cancel repurchased shares.
Orange provides consumers, businesses and other telecommunications operators with a wide range of services including fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other services. Co.'s portfolio comprises business lines (fixed-line, mobile, Internet), focusing on all customer segments (small and medium-sized businesses, multinationals), and personal and professional services for home, office, travel, and mobile. Co. manages eight operating segments: France, Poland, Spain, Rest of the Europe, Africa and Middle East, Other non-controlling equity interests, Enterprise Communication Services, and International Carriers and Shared Services.
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