First quarter results 2019 24 May 2019 Eivind Helgaker (CEO) and - PowerPoint PPT Presentation

First quarter results 2019 24 May 2019 Eivind Helgaker (CEO) and Henning Karlsrud (CFO) 16th June 2017

Agenda Summary & Introduction Financials outlook Eivind Helgaker Henning Karlsrud 3 Eivind Helgaker 1 2 Chief executive officer Chief financial officer Chief executive officer 2

Ice Group in brief Brands Smartphone + Mobile broadband mobile broadband  Pure 4G Nokia network  Attractive spectrum portfolio Attractive assets  Low cost base 10% 7.7 % 28% B2C: 9.4% Smartphone subscriptions 72% Revenue mix 2018 90% 0.9% market share development* Q2-15 Q4-18 Norway Smartphone ~443k subs as of Q4-18 1 Sweden & Denmark Mobile broadband 3 *Source: Nkom figures

Summarised: Ice Group’s strategy Continued network roll-out to achieve 1 economics of scale  Build approx. 1,500 – 2,000 Nokia base stations by end-2020  Expand smartphone network to 95% population coverage  Transmit >90% of data traffic through own 4G network Build a trusted and customer-focused brand 2  Become Norway’s most recommended mobile tele- communications company to buy services from and work for  Operate as a trusted , bold and fair service provider, and share with our customers Leverage multiple growth and margin levers 3  Further increase market share and ARPU  Increased focus on higher data usage segments 4

First quarter highlights and main developments Highlights in Q1 2019:  12% increase in smartphone service revenues  Smartphone subscription growth of 14k in the quarter  NOK 1.5 billion private placement  Sale of Swedish operation for SEK 180 million  Announced acquisition of Komplett Mobil’s customer base  Launch of “Data Freedom” product 5

Q1 2019 | Key figures: smartphone development Smartphone subscriptions Smartphone service revenue 457 thousand +12.5 288 NOK million +12 % vs. % vs. Q1 2018 Q1 2018 No. of smartphone subscriptions (thousand) Smartphone service revenues (NOK million) 500 300 250 400 200 300 150 200 100 100 50 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 6

Q1 2019 | Key figures: network development Operational smartphone sites* On-net data and VoLTE traffic 1873 +432 71 16 base % average data vs. % VoLTE stations Q1 2018 on-net share share Operational smartphone sites •• Average data on-net share • VoLTE share (%) 2000 80 1800 70 1600 60 1400 1200 50 1000 40 800 30 600 20 400 10 200 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 *In 800, 900, 1,800 or 2,100 MHz frequency bands 7

Events subsequent to the first quarter Closed acquisition of Awarded sole national Komplett Mobil ’s license of 2 x 5 MHz in customer base 450 MHz band 25 April 2019 3 May 2019 Winner of best Successful listing of customer service Ice Group ASA shares centre awards on Oslo Axess 25 April 2019 20 May 2019 8 Photos: Oslo Børs/Stein Henningsen, Komplett Mobil

Agenda Summary & Introduction Financials outlook Eivind Helgaker Henning Karlsrud 3 Eivind Helgaker 1 2 Chief executive officer Chief financial officer Chief executive officer 9

Service revenues and EBITDA Service revenues (NOK million) EBITDA** (NOK million) 450 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* 0 0% 400 -10 350 -20 -10% 300 -30 250 -40 -20% -50 200 -60 -30% 150 -70 100 -80 -40% 50 -90 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* -100 -50% Total service revenues Smartphone service revenues EBITDA** Margin % *Numbers from the divested Swedish operation are included in the 2018 figures for Total **Ice Group defines EBITDA as operating profit after adjustment of operating expenses service revenues and EBITDA, while only two for months in 2019. for depreciation, amortisation, impairment network upgrades, share based compensation expense, non-recurring and other non-operational items. Any effects from business combinations are not included. For details, see the section on Alternative Performance Measures and definitions 10

Income statement NOK million Q1 2019 Q1 2018 FY 2018 Service revenue 375 361 1,539  4% increase in service revenues Other operating revenue 82 21 121 (smartphone + mobile broadband), Total operating revenue 457 381 1,660 and 9% excluding Sweden National roaming expenses -97 -117 -434 Other operating expenses -405 -356 -1,461 Depreciation and amortisation -102 -104 -465  17% reduction in NRA expenses Operating result (EBIT) -148 -196 -701 Net financial income/expenses -129 -112 -352 Profit/loss before tax -276 -308 -1,052  EBITDA improved by 26%, EBITDA Income taxes 1 -3 -8 margin by 9%-points Net result from continuing operations -276 -310 -1,060 Net result from discontinued operations - -9 -171 Net result for the period -276 -319 -1,231  Net result improved by 13.5% EBITDA -65 -88 -180 Earnings per share (NOK)  31% improved EPS (from continuing - Basic from continuing operations -1.68 -2.45 -8.37 operations) - Diluted from continuing operations -1.66 -2.39 -8.23 11

Balance sheet NOK million 31.03.2019 31.03.2018 31.12.2018 NOK million 31.03.2019 31.03.2018 31.12.2018 ASSETS EQUITY AND LIABILITIES Intangible assets 1,279 2,688 1,344 Equity attributable to parent company -29 315 -1,258 shareholders Tangible assets 2,095 2,692 2,603 Equity attributable to non-controlling - 461 Other non-current assets 320 478 335 interests Deferred tax assets 0 0 1 TOTAL EQUITY -29 775 -1,258 Total non-current assets 3,694 5,858 4,282 Borrowings 3,654 3,020 3,672 Inventory 9 45 20 Non-current liabilities 1,155 1,622 1,625 Trade receivables 168 95 127 Provisions for deferred tax 9 327 10 Other receivables 48 118 31 Total non-current liabilities 4,819 4,969 5,307 Prepaid expenses and accrued income 11 55 63 Trade payables 206 205 242 Cash and cash equivalents 1,496 438 275 Current lease liabilities 56 68 66 Total current assets 1,730 751 516 Other liabilities 15 96 20 Accrued expenses & deferred income 357 495 421 TOTAL ASSETS 5,424 6,609 4,799 Total current liabilities 635 864 750 TOTAL LIABILITIES 5,424 5,834 6,057 TOTAL EQUITY AND LIABILITIES 5,424 6,609 4,799 12

Cash flows NOK million Q1 2019 Q1 2018 FY 2018  Cash flow from operating activities Cash flows from operating activities -215 -184 -257 …from costs to obtain/fulfil customer contracts -38 -47 -187 positively affected by lower NRA …from discontinued operations - -6 55 cost, adversely impacted by Cash flows from operating activities -253 -237 -389 higher number of live base Cash flows from investing activities -127 -140 -460 stations …from divestment of Sweden 166 - - …from divestment of Nextel Brazil - - 563 …from discontinued operations - 101 -72  Positive cash contributions from Cash flows from investing activities 39 -39 31 divestment of Sweden (NOK 166 Cash flows from financing activities 1,435 -31 -144 million) and completed private …from discontinued operations - -142 -106 placement (NOK 1.468 million) Cash flows from financing activities 1,435 -173 -250 Net change in cash and bank deposits 1,221 -448 -607 13

IFRS 16 impact Reported Reported Reported Restated Restated Restated Change Change Change IFRS 16 IFRS 16 IFRS 16 31 Dec 31 Dec 31 Dec 31 Mar 31 Mar 1 Jan 2018 2018 2018 2018 2017 2018 NOK million Statement of financial positions Closing balance Q1 2018 Closing balance FY 2018 Opening balance 2018 Total assets 5,134 1,475 6,609 3,279 1,520 4,799 5,655 1,593 7,248 Equity 1,017 -242 775 -992 -266 -1,258 1,358 -241 1,117 Liabilities 5,134 1,475 6,609 3,279 1,520 4,799 5,655 1,593 7,248 Statement of income Q1 2018 Full-year 2018 Total revenue 381 - 381 1,660 - 1,660 Total operating expenses -526 52 -473 -2,103 208 -1,895 Depreciation, amortisation -79 -24 -104 -369 -96 -465 Operating result -224 28 -196 -813 112 -701 Net financial items, tax -79 -35 -114 -220 -139 -359 Net result, continuing operations -303 -7 -310 -1,033 -27 -1,060 EBITDA -140 52 -88 -388 208 -180 14

Agenda Summary & Introduction Financials outlook Eivind Helgaker Henning Karlsrud 3 Eivind Helgaker 1 2 Chief executive officer Chief financial officer Chief executive officer 15

Our path to medium-term and long-term value creation Our 4 medium-term and long-term targets >20% ~NOK300 mid-30% ~10% MT subscriber share 1 ARPU 1,2 EBITDA margin capex / sales >25% 2.5% p.a. LT mid-40% ~10% LT growth Source: Company information (1) Target for smartphone subscriptions in Norway 16 16 (2) Average Revenue Per User

Guidance & outlook  Smartphone network build-out key to Ice Group’s business plan:  On track to introduce between 400 and 600 new base stations by the end of 2019  By the end of 2020: ambition is to have increased the total amount by between 1,500 and 2,000 live base stations  NRA cost in 2019 of approximately NOK 400 - 450 million  Expect continued smartphone subscription growth in coming quarters 17

Summary Q1 2019  Solid and award-winning operational performance  Improved financial performance  More robust financial position  On track to realise 3 rd nationwide smartphone network 18