QREDIC ® Performance assessment programme for Orange suppliers GSSC/SCS/R&VM Version: 22 nd of May 2015

2 A tool for the evaluation and continuous improvement of our suppliers’ performance QREDIC ® is a tool for: managing Orange Group’s Sourcing policy assisting Skill Centers and affiliates in their relationship with suppliers implemented in all Orange Group entities and subsidiaries with regular measurement (once or twice a year depending on results and action plan progress) the results of which are analysed jointly with the relevant supplier and may lead to improvement actions

3 QREDIC ® provides performance KPIs on 6 axes Q Quality R Responsiveness – Relationship E Ethics - Environment - Social  Conformity of product/service  Reliability of product  Process management  Responsiveness to Orange requests  Professionalism  Business ethics  Environment  Social – Working conditions  Compliance with deadlines  Supply Chain  Innovative proposals  Data security  Cost reduction  Price compliance Deadlines - Delivery D I nnovation I C C osts

4 Supplier performance is assessed from 0 to 10 The performance level is scored from 0 to 10 for each axis, with: 0 = unacceptable 6 = overall meeting Orange’s expectations 10 = excellent Minimum expected level

5 Overall performance, trend and comparison with competitors are also shown through a performance matrix Upwards => Operational performance: QDC Highlights the supplier’s ability on Quality, Deadlines and Costs: => the basics, rather present time oriented On the right hand side => Potential of development: REI Highlights the supplier’s ability on Responsiveness, Environment/Ethics and Innovation => rather future oriented

6 QREDIC ® scores and comments are communicated to Orange entities and the concerned suppliers Data collection is based on QREDIC ® web questionnaires sent to contributors involved with the supplier (purchasing, technical, marketing, quality… profiles) in all concerned entities. QREDIC ® scores and comments are communicated: directly to contributors participating to the survey to the supplier in order to get its analysis and improvement action plan. Orange expects from the supplier regular visibility on action plan progress through intranet site « SMART Reporter »

7 Report template for a supplier/commodity, at group or affiliate level (1/2) Overall assessment: Strengths: Weaknesses, risks, rooms for improvement: Performance positioning / Evolution Compliance area QDC = operational performance REI = potential of development Period: Trend 01/15 01/14 Scores Scores per axis Text Trend per axis over 4 periods Overall trend over 2 periods Comparison with competitors Q 6,49 R 7,05 E 6,47 D 6,57 I 6,26 C 5,87 Product/service conformity Product reliability Process management Responsiveness Professionalism Ethics Environment Social Deadlines Supply Chain Innovation Data security Cost reduction Orange confidential

8 Report template for a supplier/commodity, at group level only (2/2) Orange confidential Chart of scores per countries QDC = operational performance REI = potential of development Chart of scores per countries, and associated performance matrix Compliance area Corporate Country 1 Country 2 Country 3 Country 4 Country n REI QDC

9 Thank you