telenor group carnegie nordic tour 2012 2

7/28/2019 Telenor Group Carnegie Nordic Tour 2012 2

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Telenor Investor Presentation June 2012

Jon Fredrik Baksaas, CEO


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Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such

presentation may lawfully be communicated (relevant persons). Any person who is not a relevantperson should not act or rely on this presentation or any of its contents. Information in the followingpresentation relating to the price at which relevant investments have been bought or sold in the pastor the yield on such investments cannot be relied upon as a guide to the future performance of suchinvestments.

This presentation does not constitute an offering of securities or otherwise constitute an invitation orinducement to any person to underwrite, subscribe for or otherwise acquire securities in any companywithin the Telenor Group. The release, publication or distribution of this presentation in certain

jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which thispresentation is released, published or distributed should inform themselves about, and observe, suchrestrictions.

This presentation contains statements regarding the future in connection with the Telenor Groupsgrowth initiatives, profit figures, outlook, strategies and objectives. In particular, the section Outlookfor 2012 contains forward-looking statements regarding the Telenor Groups expectations. Allstatements regarding the future are subject to inherent risks and uncertainties, and many factors canlead to actual profits and developments deviating substantially from what has been expressed or

implied in such statements.


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Maintaining growth momentum

Mobile subscribers (mill)

Organic revenue growth

Strong operational performance in Q1

8% organic revenue growth

5.6 million net subscriber growth

21% operating cash flow margin

Restoring ownership position in VimpelCom

Awaiting final decision on auction format inIndia

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Strategy built on two main operational ambitions

Cost efficient operatorPreferred by customers

Take positions in new services Cross border standardisation

Customer centricity Business unit efficiencyimprovements

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Awaiting final decision on auction format in India

Operational performance on track

Licence extension to 7 September,aligned with auction timeline

Auction conditions - Key elements

Roll out obligations

Spectrum

Incumbents vs new players

Reserve price

Deferred payments

INR 155 bn peak funding maintained

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Revenues (NOKm)

EBITDA (NOKm)


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Restoring ownership position in VimpelCom Ltd.

234 million preferred shares acquired from Weather Investments on 15 February

65 million common shares acquired from JP Morgan on 4 April

In compliance with applicable rules and regulations

Telenor ownership stakes in VimpelCom Ltd

EconomicVoting


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Healthy shareholder remuneration

Dividend policy:

50-80% of normalised net income

Nominal YoY increase in dividend

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3% share buybacks in 2011

Aiming for buybacks also in 2012

Dividend per share (NOK)

*) Share buyback programme AGM 2011 AGM 2012

Payout to shareholders (NOK bn)


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Priorities in 2012

Continue to deliver growth abovepeers

Clarify platform for continuedoperations in India

Manage transition from voice todata

Execute on operational excellence

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13%

~10%

Capex/sales*

39%


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Marius Gigernes and Frode Stldal, Telenor Norway


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6k net mobile subscription growth

Stable mobile ARPU adjusted for one-time effects

Fixed development in line with previousquarters

EBITDA impacted by mobile campaignin Q4 and storm-related costs

Network investments focused onmobile capacity and fibre to the home

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Telenor Norway Q1 2012

Organic growth assuming fixed currency, adjusted foracquisitions and disposals.

EBITDA and EBITDA margin before other itemsCapex excl licence fees

Organic revenue / EBITDA growth YoY

Revenues (NOKm) and EBITDA%

0%

-7%

EBITDA and capex (NOKm)

EBITDA CAPEX


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Migration to bundled mobile tariffs

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Mobile data users (1000)* Mobile blended ARPU (NOK)

Q4campaign

Other

*) Small screen data users Consumer segment


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Modernisation of networks

Best mobile network

Network swap completed Q4 2011

3G coverage close to 90%

LTE launch in 2H 2012

IP backhaul upgrade

324278

246

Fibre rollout

Using both Telenor and Canal Digital brands

57,000 connections by end of 2012

Stream-lining of value chain


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Simplification of processes and value chains

Improve customer experience

Develop state of the art web platform andshift volumes to web

Implement the net promoter score indexand enhance the utilization of customerfeedback loops

New tools in customer front to support abetter customer communication and

increase up-selling possibilities

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Phase-out of copper network

A dedicated program that focus primarily onphase-out activities

Offer a mobile alternative (sim-fixed-phone)to areas were copper will be closed down

Focus fiber roll-out on most profitable areas.Enhance xDSL quality in other areas tocreate a good alternative


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Hilde Tonne, EVP Group Industrial Development


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Globalization

Competent competition

Regulatory strain

Customer demands

ARPU pressure

Value chains shifting

Business models changing

Meeting customers needs

Technology driven

The business environment is changing, and theindustry is transforming


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Driving operational excellence in all businessunits...

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13%

~10%

Capex/sales*

39%


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Industrialization will facilitate both cost efficiencyand improvement in market position

Through joint deliveries we will release capacity to strengthen our localmarket execution


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Striking the right balance: Capture scale benefitswhile increasing local agility

Strong group controlLocal independence Group standards,local execution

Operating model
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Group-wide industrialisation to leverage on scale

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Managed Services

Network Sharing

AD/AM

Asia Billing

Shared Services (IT, Finance, HR)

Streamlining Customer Processesand Distribution


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telenor group carnegie nordic tour 2012 2

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