Sigve Brekke – CEO Telenor Group

DNB TMT conference, 29 August 2018

2

GROWTH EFFICIENCY SIMPLIFICATION

A CLEAR STRATEGY TOWARDS 2020 ESTABLISHED IN 2017

WINNING TEAM

RESPONSIBLE BUSINESS

3

Telenor India

exit announced

(Feb 17)

Veon

sell-down

(April -17)

Disposal of

Online Classifieds

in Lat-Am (May -17)

Veon sell-down

completed (Sep -17)

Financial services

Partnering with ANT Financial

in Pakistan (March -18)

Disposal of Central

& Eastern

European assets

(March -18)

MAJOR STEPS TAKEN TOWARDS

PORTFOLIO SIMPLIFICATION

- FOCUS ON SCANDINAVIA AND ASIA

4

CONTINUING TO GROW

• Revenue growth from growth in

customer base and usage

• Focus on revenue renewal and ARPU

growth.

• Increasing demand for IoT services in

the business/public segment

• Digital transformation an enabler to

ensure future growth and customer

experience

127 138

150 160

168 172

2%

3%

5%

2% 2%

1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017 YTD Q2

Subscriptions

Organic revenue growth

5

FOCUS ON MONETIZING GROWTH IN DATA USAGE

255 272 278

0.7

1.3

1.8

2016 2017 2018

Domestic APRU

Median data usage GB

225 238

253

18% 23% 27%

2016 2017 2018

ARPU Postpaid % of base

152 154 142

23% 27% 33%

2016 2017 2018

Prepaid ARPU

Smartphone % in base

Norway Thailand Bangladesh

ARPU in local currency

6 *FX adjusted

EFFICIENCY AND SIMPLIFICATION DRIVING COST IMPROVEMENTS

• Targeting 1-3% net opex reductions

per year for 2018-2020

38.9

44.8

46.9

44.7

2014 2015 2016 2017 2018 2019 2020

-3%*

Customer interactions

• Moving to digital interactions

• Simplifying product structures

2016 2017

Call center volume in Malaysia

-26%

Increasing opex trend broken

• Common delivery centres network & IT

• Global procurement company

• Decommission legacy IT platforms

Network and IT

External

Internal

Baseline 2020 target

NOK 2.6 bn

-20-30%

NOK billion

7

STILL A SIGNIFICANT PART OF THE COST BASE WITH

POTENTIAL FOR DIGITALISATION

Sales

Other initiatives Digitalisation initiatives

Structural

• Move from concession to license

in Thailand

• Common delivery centre for

network & IT in Asia

• Fixed value chain transformation

in Norway

• Simplification of product portfolios

Non-structural

• Cost-control and prioritization

• Shift from physical to digital sales

channels (e.g MyTelenor)

• Self-service (MyTelenor) and

chatbots for customer care

• Advanced analytics to improve

marcom efficiency

• Cloud-based and standardised

IT solutions

Digitalisation of work processes,

and robotisation of recurring tasks

Customer

mgmt

Opex base NOK ~45 bn (2017)

Marketing

IT

Support

Other

Regulatory

Network

8

STRONG MOBILE PERFORMANCE IN NORWAY, MAINTAINING

REVENUE MARKET SHARE

8

ARPU (NOK/month) Mobile subscriber net adds (k) EBITDA (NOK bn)

• 3% growth in mobile ARPU excl. handset

and roaming effects

• 4% growth fixed broadband ARPU and 6%

growth in TV ARPU

• Lowest subscriber decline in 12 quarters

• Postpaid subscriber growth of 7,000, with

promising uptake on new Flexi products

• Underlying opex reductions of 3%

• FTE reductions of ~400 year-on-year

2.8

2.7

Q2 17 Grossprofit

Opex Q2 18Wholesale &

Special numbers

323 324

Q2 17 Q2 18

361 376

Q2 17 Q2 18

Mobile Fixed broadband

4%

0%

-40

-19

-13 -10

-17

-4

Q117 Q217 Q317 Q417 Q118 Q218

Intelligent

buildings

Transportation

and parking

Water and

sewer Renovation

Collaboration

Security

Streetlights

Welfare

technology

Industry

TAKING A STRONG POSITION IN IOT IN NORWAY

10

BUILDING A PLATFORM FOR THE FUTURE IN THAILAND

• ARPU growth, driven by increased

share of postpaid subscribers

• Postpaid customer base increased by

154,000 during the quarter

10

• Solid high-frequency spectrum position:

– 1,800 MHz acquired in August 2018

– 2,300 MHz spectrum lease from TOT,

aiming for 7,000 sites end of 2018

– 2,100 MHz network densification

continues – close to 90% population

coverage

• Tower lease agreement with CAT nearly

concluded.

• Roaming agreement with AIS in place, as

back up for 2G customers

Continued migration to postpaid

2.0 1.9

41% 40%

Q2 17 Q2 18

EBITDA (NOK bn) and EBITDA margin

Prepared for end of concession Sep - 18 Solid EBITDA margin

• 45% EBITDA margin excl. NOK

0.2 bn spectrum lease payment

• 7% opex reduction year on year

238

253

Q2 17 Q2 18

ARPU (THB)

6%

48%

56%

Q2 17 Q2 18

Postpaid % of subscription

& traffic revenues

11

10.6 11.0 11.3 11.8 12.1

6.5 5.2

2014 2015 2016 2017 2018

Buyback

Special dividend

Ordinary dividend

23 – 24

ATTRACTIVE SHAREHOLDER REMUNERATION

– Commitment to year on year growth in

ordinary dividends

• Annual growth in recent years of 4%

– Buybacks and/or special dividends

considered on a case-by-case basis

• 2% buyback in both 2017 and 2018

• Special dividend following disposal of the

Central and Eastern European assets

17.0

NOK billion

Thank you!