Memo MobileFinancial Services

June 2017

Ambition and strategyMobile financialservices are an opportunity

■ Increase customer loyalty.

■ New income-generating activity.

■ Strategic axis for new customer acquisition.

Orangehas many assets

■ A strong brand.

■ An extensive customer base.

■ A distribution network with a high customer-interaction rate.

■ Technological and marketing know-how.

■ Unique advantages for Orange and Orange Bank customers.

The Orange financial services ambition

Mobile financial servicesand connected objects are the Group’s two diversification levers.

Global

Europe

Africa

400 million eurosturnover in 2018

Banklaunch

30 million Orange Money customers in 2018

Make mobile financial services available for all

Since 2008, an improved mobile financial services offer to meet our customers’ new needs.

Mobile Money

Mobile Banking

Europe

NFC Mobile Payment

Africa

Useyour mobile

to pay and

send money

Poland

Subscribe to banking services*

on your mobile* In partnership

with mBank

France(1), Spain

Use contactless payment

with your mobile* In partnership with Visa and Wirecard

The African diaspora in France

Use your mobile to send money from

France(1) to Africa(2)

France

Subscribe to Orange Bank

services on your mobile

2008 2014 2015 2016 2017

Europe

Orange Cashavec Visa

Africa

Orange Finanse

Orange Cash

02 Mobile Financial Services 03Mobile Financial Services

(1) Metropolitan France - (2) To Mali, Senegal and Côte d’Ivoire.

Orange Bank

Why diversify into banking?

■ Banking services are more and more accessible via smartphones (85% of banking interactions are carried out on smartphones).

■ Orange is trusted by our clients and close to them: both advantages have been identified by our customers when choosing a bank.

With Orange Bank, Orange is now a bank operator. The new offer will be launched in France in 2017, followed by Spain and Belgium.

Favourable environment

■ Booming mobile use.

■ Increasing customer adoption of online banking.

■ Changes in the regulatory environment making bank switching easier.

Why choose a partnershipwith Groupama?

■ Aligned strategy and joint vision.

■ Robust banking processes.

■ A distribution network with 3,700 Groupama and Gan agencies and 7 million customers in France in 2016.

Mobile

Orange Bank - SA with capital of €297,575,712 - 67 rue Robespierre - 93107 Montreuil Cedex - 572 043 800 RCS Bobigny - Orias n°07 006 369 (www.orias.fr). Orange may market the products and services of Orange Bank as an exclusive agent for banking operations and payment services. Orange - a French limited company with a €10,640,226,396 share capital - 78 rue Olivier de Serres - 75015 Paris - 380 129 866 RCS Paris - Orias n°13 001 387.

(1) Mobile payment, subject to conditions and availability, requires Orange Bank’s application download available only on Android and iOS and reserved for «New Orange Bank offer» account holders with compatible software (Android 4.4 mobile, or latest version, with a SIM NFC card and Orange mobile subscription, or Iphone 6, or latest version with an iOS 9, or latest version, and an iCloud account). Service provided and operated in mainland France Wirecard Bank AG (Einsteinring 35, 85609 Aschheim, Germany – registration n° HRB 161178) on the Visa network, in partnership with Orange Bank and licensed under Visa (trademark of Visa Inc.). Android is a trademark of Google Inc. iOS, iphone and iCloud are trademarks of Apple Inc. Visa Card’s issue subject to conditions determined by Orange Bank. Please refer to terms and conditions on the Orange Bank app and on orangebank.fr.

(2) SEPA credit transfer upon customer request, once beneficiary bank details have been registered, following an SMS sent by Orange Bank and subject to sufficient funds. Please refer to conditions on orangebank.fr

(3) Balance provided for information purposes only. Subject to conditions and electric-money trading regulations. Please refer to conditions on orangebank.fr

(4) Temporarily blocked. Unblocked by customer. Cancellation necessary in the event of loss. Please refer to conditions on orangebank.fr

An agile bank:simple, transparent, immediate and accessible 24/7 via a virtual assistant.

A «Phygital» model:• Physical and digital

acquisition.

• Innovative, designed for mobile.

At the launch:• 890 Orange employees

trained and certified IOBSP (Intermediary in Banking Operations and Payment Services).

• 140 Orange stores with a dedicated area for bank account subscription.

Open a free Orange Bank account: no minimum revenue is required.

■ You can pay either way: bank card or mobile. (1)

■ You can send money by SMS. (2)

■ You can check your account balance right after making a purchase (3)

■ You can block or reactivate payments on your card directly from the application. (4)

■ You can save money via a saving account and soon to get a loan and insurances.

Orange Bank in a nutshell

05Mobile Financial Services

Orange Finanse in Poland

■ Current and savings account.

■ Ask for a consumer loan in a few clicks.

■ Send money as easily as sending an SMS (regardless of the recipient’s mobile operator or bank).

■ Contactless payment in shops.

■ Cash withdrawal from cashpoints, using a mobile.

■ Exclusive telecoms and banking advantages.

■ Benefit from deals and retail partner offers.

Orange Finanse: your 100% mobile, comprehensive banking offer

Central Europe banking-offer pioneer. Currently available in Poland.

Mobile Banking in Europe

■ Orange Finanse is the first Orange mobile bank initiative and was launched in October 2014 in Poland in partnership with mBank.

■ The offer provides bank services such as current accounts, savings, credit cards, overdraft facilities and consumer loans.

■ mBank brings its banking skills and its IS; Orange brings its brand, customer base, distribution network and marketing skills.

■ Orange Finanse is available to Orange customers and other operators’ customers.

■ More than 350 000 customers on boarded 2 years after launch.

07Mobile Financial Services

Orange Cash ■ Commitment and subscription-free solution which does not require the presentation of documents (2,500 euros reload limit per year).

Orange Cashis retail smartshopping:

■ Orange Cash can be used in any shops around the world accepting Visa contactless payment. Over 550,000 shops in France (38%) and over 800,000 (70%) in Spain.

To subscribe to Orange Cash,

customers must have a postpaid Orange contract, own an NFC mobile which is compatible with Orange Cash and an NFC SIM card.

With Orange Cash, customers can open

a prepaid account:

■ Reloaded with a Visa or Mastercard, according to each customer’s needs.

■ Regardless of the customer’s bank.

■ Limited user expenditure to the amount available on the application.

Orange Cash is an application for all

Orange customers which can be easily downloaded for free (on Android, Windows Phone and iOS from iPhone 6 onwards).

Orange Cash is a secure

payment method: ■ Orange Cash is in partnership with Visa: Orange Cash offers the same level of security as the chip on the bank card.

■ A secret code, or digital fingerprint for iPhones, is required for all payments over 20 euros and online payments. It can be activated on user request for all payments above one euro.

Orange Cash is a prepaid payment

service, launched in partnership with Wirecard and Visa Europe. The service is currently available in France(2) and Spain.

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Orange Cashavec Visa *AFSCM june 2016

Orange Cashavec Visa

NFC mobile payment in Europe

■ Locate the shops near you.

■ Contactless mobile payment in shops.

■ Take advantage of special offers.

■ Pay up to €250 (€62,50 with Orange Cash Jeunes) per purchase with your mobile.

■ You can also pay for your purchases online without disclosing your bank card number.

■ Your teenagers can pay with their mobile and benefit from special offers whilst learning how to manage their budgets with Orange Cash Jeunes.

Easier shopping and increased special offers with Orange Cash.

NFC mobile payment. Available in France(1) and Spain.

4

Almost

600,000Orange Cash customers (by end May 2017)

11.5 million users in metropolitan France own an NFC mobile*

12 euros per average purchase

Key figures

09Mobile Financial Services(1) Metropolitan France. (2) Metropolitan France.

Orange Money

Orange Moneyis key to economic

and societal development.

■ It makes trade easier. It improves access to remote territories and financial inclusion.

■ It promotes female entrepreneurship; in Sub-Saharan Africa, 27% of women create businesses (source: 2015-2016 Global Entrepreneurship Monitor global report).

International money transfer extends

Orange Money benefits to the diasporas.

■ Transfer to Sub-Saharan Africa between Côte d’Ivoire, Mali, Senegal, Burkina Faso and Niger.

■ Transfer between France(1) and Africa (to Côte d’Ivoire, Mali and Senegal) through W-HA(3), an Orange Group company.

Orange created 6 EMIs (Electronic Money

Institution) in 6 countries (Côte d’Ivoire, Guinea, Mali, Senegal, the Democratic Republic of Congo, and Burkina Faso). Orange will gain increased autonomy and agility from this status and will be able to launch new services.

Orange safeguards cus-tomers’ funds and guaranties bank compliance through the CECOM (Expertise Center for Orange Money Compliance based in Abidjan).

Orange Money is an electronic money

account linked to an Orange mobile number.

It is a universal solution which is available on

any mobile and also when there is no data network. There is also an Orange Money application for smartphone owners.

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2

3

4

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Mobile Money in Africa

Initially, Orange Money* met the urgent needs of unbanked customers

■ Transfer money to your family.

■ Top-up your airtime credit.

Orange Money’s success has enabled it to develop its services

■ Pay your bills.

■ Pay your taxes.

Orange Money waslaunched in Côte d’Ivoire in 2008

Orange Money is present in 17 African and Middle-Eastern countries:Botswana, Burkina Faso,Cameroon, Côte d’Ivoire, Egypt, Guinea, Guinea- Bissau, Mauritius Island, Liberia, Madagascar,Mali, Niger, Central African Republic, Democratic Republic of Congo, Senegal, Sierra Leone*, Tunisia.

* Under the brand name Airtel Money

Orange Moneystrategy

■ Develop international destinations.

■ Develop the partnership ecosystem (utilities, banks and distributors, etc.).

■ Develop financial services: pico loan, savings.

■ Make Orange Money a universal means of online pay-ment thanks to Orange Money APIs.

Mobile payment and money transfer in Africa. This service was extended to France(1) in 2016. It enables our customers to send money to Africa(2) via their mobiles.

■ Receive your salary or your pension.

■ Withdraw cash with your mobile.

■ Own an Orange Money Visa card.

Orange Money is extending its services to customers with bank accounts

■ Make transfers between your bank account and your Orange Money mobile account.

* Services vary between countries(1) Metropolitan France. (2) In Mali, Senegal and Côte d’Ivoire - (3) W-HA is a comprehensive Orange subsidiary and a certified electronic money issuer.

March 2017 key figures

31 million Orange Money customers including 9 million active users

160,000 point of sales

11Mobile Financial Services

Orange and fintechs

■ Several fintechs have benefited from the Orange Fab programme, such as Pumpkin in France: a refund solution between friends; or Token in the Silicon Valley: a secure exchange solution between banks and payment service providers.

Orange Digital Ventures: a fintech portfolio

As part of the Group’s strategy, Orange Digital Ventures is continuing early-stage startup investments, especially in its banking activity. Capital invested in initial funding ranges from 1 to 3 million euros with the option of reinvesting up to 10 million euros in subsequent funding.

■ Afrimarket

With “cash-to-goods” money transfer in association with partner retailers (food, health, education, etc.), people in Europe can pay for their friends and family’s everyday purchases in Africa. It is one of the leading international money transfer markets. People can choose how they wish to help friends or family and benefit from re-duced rates, in comparison to traditional solutions, and also rest assured of products quality and fund tracking.

■ Lendopolis

Lendopolis (KissKissBankBank Technologies Group) is a French SOHO/SME online crowdfunding platform direct to individuals who wish to boost their savings. This new funding model gives

new meaning to savings as it contributes to French SOHO/SME development. According to project type and time scale, an interest rate is proposed. Each project is initially reviewed by chartered accountants and financial analysts who monitor and ensure project reliability.

What is a fintech?

Put “Finance” and “Technology” together and you come up with fintech: banking startups which combine technology and banking services for individuals and companies. These companies use disruptive technological and economical models which aim to deal with existing or future issues in the financial services industry.

Orange Fab

■ A worldwide programme of 14 startup accelerators (Europe, United States, South East Asia, Africa and Middle East).

■ Famoco

Famoco produces and markets contactless and secure Android transaction terminals. Many French and international businesses have chosen Famoco for its terminals which can handle multiple transactions per day and recharge prepaid or travel cards. Famoco can also manage new customers subscriptions for telecom operators.

■ Monzo

Monzo is a neo bank which provides mobile banking in the UK. Its model follows an European regulations move towards the «APIsation» of banking systems.

■ Payjoy

Payjoy provides a platform for users with limited loan access through which they can pay for their smartphone in several instalments.

Created in 2015

Created in 2015

Country: United Kingdom.

Country: United States.

Previous funding: 19.5 million pounds in March 2017

Previous funding: 18 million dollars in July 2016.

Created in 2010

Country: France

Previous funding: 11 million euros in February 2017

Created in 2013.

Previous funding: 10 million euros in September 2016.

Country: France.

Afrimarket

CEO : Rania Belkahia, Jérémy Stoss.

Lendopolis

CEO : Vincent Ricordeau.

Created in 2014.

Previous funding: 5 million euros in KissKissBankBank Technologigies Group, February 2016.

Country: France.

Chain

CEO : Adam Ludwin.

Created in 2014.

Country: United States.

Previous funding: 30 million dollars in September 2015, in particular with Visa, Fiserv and NASDAQ.

Famoco

CEO : Lionel Baraban.

Monzo

CEO : Tom Blomfield.

Payjoy

CEO : Doug Ricket.■ Chain

Chain is the leading internatio-nal Blockchain technological solutions provider. Chain offers a new digital shares and assets transaction model based on Blockchain capacity. Blockchain can facilitate, for example, the emission and transfer of financial shares, vouchers and mobile credit whilst ensuring a high level of security, precision and traceability.

12 Mobile Financial Services 13Mobile Financial Services

The word on the street…New technologiesare transformingthe world of banking

■ Blockchain technology, made famous by Bitcoin emoney, is used to register and check real time transactions. By reducingthe level of intermediaries Blockchain challenges current economic models and reduces operating costs.

■ Artificial intelligence understands and interprets natural language. In the banking sector, robot advisers, « chatbots » offer high-quality added value services and operational cost management.

■ Biometric technology is used to provide new methods for customers authentication. Customers can now sign in to a banking application using a digital fingerprint or make payments using voice or facial recognition.

New market entrants

■ Fintechs Three main fintech categories

- Lending Platform (funding platform)

- Consumer Banking (everyday banking)

- Payment (payment method)

■ Neo banks Neo banks are based on a simplified mobile application and customer experience. Some have a banking licence and others do not. Many offer innovative mobile offers in Europe (UK, Germany, France).

■ The GAFA Sector giants like Apple, Samsung and Google offer mobile payment solutions: Apple Pay, Samsung Pay and Android Pay. They can now directly offer financial services through banking licence.

■ Retail (Carrefour, Leclerc, Fnac, etc.) is ready to stake its claim in the financial mobile services value chain. Some retailers already have subsidia-ry banks and provide banking product offers ranging from

current accounts to consumer loans. Others provide payment methods through which they gain customer loyalty, increase customer knowledge and avoid disintermediation by keeping track of payment data.

Regulations to boost mobile uses

■ In 2017, the PSD2 (European Payment. Services Directive)will open the payment market to newcomers. This will increase industry competition and aims to reduce consumer payment method access costs.

■ The European directive also aims to implement instant payment before end 2017. This is an electronic payment solution available at any given moment.This directive announces as a new revolution for the mobile payment sector.

Digital bankingdevelopment

■ Bank accounts and the weather channel are in the top 3 applications checked every morning (in France).

■ One third of new bank accounts are opened with online banks.

■ The number of customers who use internet and mobiles for their banking operations has increased by 50% in one year.

■ Online banks have gained 14% in market shares in the past 3 years in France.

■ Today, 85% of customer/ bank dealings are digital, 17% of customers go to their bank in comparison to 62% in 2007.

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June 2017

Orange Cashavec Visa