Fourth quarter result 2019 14 February 2020 CEO Eivind Helgaker and CFO Henning Karlsrud
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Ice Group ASA (the “Company”) for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction. The Recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company’s business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions. An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. For a description of relevant risk factors we refer to the Company’s annual report for 2018 and the prospectus dated 16 May 2019, available on the Company’s website www.icegroup.com. Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. The Company cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments. This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements). This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts. 2
2019 was a great year for Ice CAPITAL MARKETS NETWORK MARKET SHARE • NOK 1.5 billion private • Awarded 700 & 2,100 MHz placement licenses in Norway • 130k subscribers added to • Divested Swedish operations • First operator to use 700MHz reach 10% market share • Additional 341 smartphone • Several innovative product • Listed on Oslo Axess base stations on ice+ launches during the year • NOK 620 million (net) new unsecured bond • 80% on-net share in Q4 • Apple agreement 3
Fourth quarter highlights and main developments 573k smartphone subscriptions at end of Q4, up 18k in the quarter 130k subscribers added in 2019 to reach 10% market share Smartphone ARPU at 234 NOK, +10 NOK from Q4 last year Smartphone service revenues grew by 36% to NOK 389 million Adjusted EBITDA of NOK -34 million, margin of -7% Solid growth in share of on-net data and VoLTE iPhone agreement with Apple in place 4
Growth in both ARPU and smartphone subscribers leading to 36% increase in smartphone service revenues Smartphone subscribers & ARPU Smartphone service revenues 1,000 subscribers / ARPU in NOK NOK million +130k +36% 573 389 555 365 536 320 457 443 289 287 234 231 224 221 220 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 ARPU Subscribers 5
10% market share reached – medium term target of 20% Market Entry Benchmarking Added 130k subscribers in 2019, +2.3pp market share Mobile Market Share (incl targets/guidance) during the year Ice now with 19 consecutive quarters of subscriber growth Ice has 24% of available mobile frequencies in Norway Tele2 had 19% (and growing) marketshare in 2013, before they lost the spectrum and were acquired by Telia The average #3 player in 3-player markets in Europe has 22% market share The Norwegian government actively supports a sustainable third mobile network operator We have the tools, products and strategy to support continued subscriber growth Note : Iliad initially offered their basic mobile package free of charge to their existing fixed-line subs, allowing them to massively grow in the first year Note : Masmovil acquired Yoigo in Jun-2016, which in FY2015 held 7% market share 6
Product launches 2019: Data Frihet (unlimited data for 99,-) ice Junior (1GB for 0,- for u/12) Mobilbytte (handset-as-a-service) ice Ung (10GB for 249,- for u/24) 500MB discontinued ice SMB (launched in February 2020) 7
We continue to build base stations – giving us higher on-net share and lowering our roaming costs Operational smartphone sites Average on-net data and VoLTE share +129 2,116 80% 1,987 73% 72% 71% 1,933 1,873 67% 1,775 30% 22% 19% 16% 6% Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Data VoLTE 8
iPhone agreement with Apple in place Handset sale and marketing Launches Distribution network Automatic operator settings Improved customer experience Increased on-net shares (data & VoLTE) 9
Ice is well prepared for the 5G era Key considerations Ice already has a large installed base of the newest and 5G ready Nokia base station type. Ongoing core modernization (cloud) will take the nodes to 5G An upcoming 5G pilot is expected in summer 2020 with 3.6GHz test- frequencies in one or two smaller cities. Initial 5G offering on 700MHz in urban areas expected end of 2020 Limited investments needed to turn on initial 5G offering over the next years 5G frequency portfolio Ice has a healthy 5G frequency portfolio, and has already won the 700MHz band, one of the 5G pioneer bands. Ice was first in Norway to turn on the 700MHz band in November this year (4G) Ice expects that current spectrum holdings will be re-deployed on 5G as more handsets will support 5G on more frequencies over time Norwegian auctions relevant for 5G will be arranged over the next years, most notably the 3400-3800MHz 5G pioneer band, available from 1.1.2023 “Ice has turned on the 700 MHz band” - Inside Telecom 28 November 2019 10
New regulation of Norwegian telecom market The Norwegian telecom market will continue to be highly regulated, as one of the least competitive markets in Europe Continued and increased support for the 3 rd network Telenor is one of a very few telecom operators in Europe with this kind of regulation, main points in the new regulation are: Continued obligation to offer wholesale access, potentially with lower data prices for Ice than the current regulation Continued obligation to allow site sharing, with stricter regulation on cost sharing and application deadlines New regulation will likely be sent ESA for verification during Q1, with effect from Q1/Q2 2020 Ice has a «National Roaming Agreement» (NRA) with Telia until April 2021 11
The best ever season start for the Norwegian biathlon team CONGRATULATIONS! All photos: Instagram @skiskytterlandslaget 12
Finance 13
Positive top-line and margin development in Q4 2019 Operating revenues Adj EBITDA and adj EBITDA margin NOK million NOK million / % 498 483 457 30 34 0 0,0 432 421 21 79 34 27 84 -10 80* -4% 39 -0, -7% 75 -20 -8% -20 72 67 -11% -30 -14% -0, -34 -40 -36 389 287 289 320 365 -50 -46 -0, -60 -65 -70 -0, Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Sweden (divested Q1-19) MBB service revenues (NO/DK) Adj EBITDA Adj EBITDA margin Other revenues Smartphone service revenues *Other revenues in Q1-19 includes sale of trademark from AINMT Holdings (NOK 46 million) 14
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