T E L E N O R Company presentation
AMONG THE MAJ OR MOBI LE Revenue OPERATO R S I N THE WORLD Norway 3% 5% More than 196 million consolidated 20% Europe excl Norway mobile subscriptions, Q3 2015 Asia 33 000 employees 21% 51% Broadcast Present in markets with 1.3 billion people Other Mobile operations in 13 markets in Mobile subscriptions Norway, Europe and Asia Myanmar 11.8 Malaysia A voting stake of 43 per cent 11.7 Thailand 24.9 Pakistan (economic stake 33 per cent) in 33.2 India 40.9 VimpelCom Ltd. with 222 mill. mobile Bangladesh 55.5 subscriptions in 14 markets Montenegro & Serbia 3.6 Revenues 2014: NOK 107 bn Hungary 3.2 Bulgaria 3.8 Denmark 2 Sweden 2.5 Norway 3.2
196 MI LLI ON CUSTOM E R S I N 13 MARKE T S #1 OR #2 POSITIONS IN MOST MARKETS Sweden Entry: 2001 Subs: 2.5 mn Norway Subs: 3.2 mn Denmark Subs: 2.0 mn Hungary Entry: 1994 Montenegro/Serbia Subs: 3.2 mn Entry:1996/2006 Subs: 3.6 mn Bulgaria Bangladesh Entry: 2013 Entry: 1996 Pakistan Subs: 3.8 mn Subs: 55.5 mn Entry: 2004 Subs: 33.2 mn Myanmar Entry: 2013/14 India Subs: 11.8 mn Entry: 2009 Subs: 40.9 mn Thailand Entry: 2000 A voting stake of 43 per cent (economic stake Subs: 24.9 mn 33 per cent) in VimpelCom Ltd. with 218 mill. mobile subscriptions in 14 markets Malaysia Entry: 1999 Subs: 11.7 mn
SUBS C R I P TI ON GROWTH – CONSOLI DAT E D COMPANI ES No. of mobile subscriptions world wide, in millions 250 196 200 186 166 147 150 120 91 100 80 70 52 50 11.2 0.6 0 1995 2000 2007 2008 2009 2010 2011 2012 2013 2014 2015
GEOGRAPH IC SPLIT OF KEY FINANCIALS IN 2014 Revenues Operating cash flow EBITDA 8% 3% 25% 30% 34% 44% 47% 48% 21% 19% 21% Norway Europe Asia Other Norway Europe Asia Other Norway Europe Asia Other ”Other” includes Broadcast, Other Units/Group functions and eliminations
STRONG REVE N U E GROWTH NOK in billion 120 107 104 102 99 100 94 90 88 86 75 80 55 60 36.2 40 20 14.2 0 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
NORWAY - A LEADI NG POSI TI ON I N MOBI LE, I NTER N E T AND TV SERVI CE S Country Population Company Ownership Subscriptions Market (mill.) (thousands) position Mobile 5.0 Telenor 100% 3.190 1 Fixed telephony 5.0 Telenor 100% 638 1 Fixed Internet 5.0 Telenor 100% 853 1 TV 5.0 Telenor 100% 526 1 More than mobile subscriptions
EUROPE* - A LONG - TERM PRESE N C E Mobile operations Country Population Company Ownership Subscriptions Market (mill.) (thousands) position Sweden 9.3 Telenor 100% 2.504 3 Denmark 5.5 Telenor 100% 2.000 2 Hungary 10 Telenor 100% 3.201 2 Montenegro & Serbia 8.1 Telenor 100% 3.593 1 Bulgaria 7.1 Telenor 100% 3.762 2 Close to mobile subscriptions * without Norway
ASI A - A STRONG REGI ONAL PLAYE R Mobile operations Country Population Company Ownership Subscriptions Market (mill.) (thousands) position Thailand 63 dtac 51.5% 24.851 2 Malaysia 28 DiGi 49% 11.676 3 Bangladesh 162 Grameenphone 55.8% 55.511 1 Telenor Pakistan 168 100% 33.244 2 Pakistan India 1 200 Uninor 100% 40.855 8 Telenor Myanmar 51 100% 11.793 1 Myanmar More than mobile subscriptions
TELENO R GROUP WI LL REMAI N A GROWTH COMPAN Y AND A RETAI L OPERATO R • Telenor Group will continue to focus on growth and value creation. • Telenor Group will maintain being a retail operator, with the main share of revenues coming from communication and connectivity services. • We will provide new selected digital services to defend this position.
S T R AT E G I C A M B I T I O N S F O R O U R C O R E T E L C O B U S I N E S S 2 0 1 5 - 2 0 1 7 INTERNET FOR ALL LOVED BY CUSTOMERS EFFICIENT OPERATIONS STRATEGY ENABLERS PASSIONATE EMPLOYEES LOCAL IMPACT
I N T E R N E T F O R A L L There is great opportunity in providing people with affordable internet connectivity 3 Monetize 2 Stimulate usage 1 Enable use In addition we will build positions in new service areas with attractive stand-alone revenues, like Financial Services, M2M, etc.
GROUP EXEC U TI VE MANAGEME N T (GEM) President & CEO (P&CEO) Sigve Brekke Business Finance* People Markets Technology Digital Corporate Partner Units X 12 Businesses Affairs Relations Asia Chief Chief Chief Chief Chief Chief Head of Financial People Marketing Technology Digital Corporate Partner Officer Officer Officer Officer Officer Affairs Relations (CFO) (CPO) (CMO) (CTO) (CDO) Officer Asia (CCAO) Richard Vivek Ruza Wenche Pål Wien Olav Aa Jon Erik Sood Sabanovic Jon Agerup Espen Haug Gravråk Asia Asia Asia
TELENO R GLOBAL WHOLESAL E - WHO WE ARE Wholesale provider Headquartered in Points of Presence Oslo, Norway (PoP) in Oslo, London, of international voice, roaming, roaming Frankfurt, Budapest, connect solutions and Global Presence Amsterdam, Hong connectivity services. sales offices in 9 Kong and Singapore countries Financial Strength – Gateway to and from Telenor Group Diverse culture AAA rating operations worldwide over 30 nationalities
I NTER N ATI ON AL CAR RI E R OF TELE NO R GROUP A unified business unit for international interconnect and roaming We give you access to the world by connecting everyone and everything everywhere. We help operators offer their retail customers quality international communication. We learn and share best practices across business units and drive change to create value. Be an attractive Enable BUs to be loved business partner by customers
MANAGEMENT TEAM Global Wholesale Harald Krohg Finance Torhild Einstabland TLC, Pakistan Strategy Salman Malik and Business Development Olav Sande Montenegro/Se rbia Aleksandra Pekovic HR Eirik Nielsen Sales and Account IPX and BU Relations Roaming Technology Operations Management Interconnects Knut Ingvar Charlotte Kjetil Hanshus Rada Drobnjak Bjørn Iversen Per Lorentsen Eriksen Nystuen
I P X G A T E W A Y F O R T H E T E L E N O R G R O U P C O M P A N I E S Enables you to reach 196 million subscribers via our IPX Through our services we bring value to the Telenor Group brings real change to mobile operators enabling them to offer high hundreds of millions of people and quality future proof services in the international societies through the markets we operate market - making it easier for people to in. communicate with friends and family anywhere, anytime.
C U T T I N G E D G E T E C H N O L O G Y I N G R E E N F I E L D M A R K E T S - connecting millions of people to the digital world Estimated population Lack of infrastructure 55 50 50 % mobile penetration of app. 55 mill. people and technical solutions. in Myanmar Challenging Low voice quality and market high rates. connecting Telenor Myanmar to the rest of the world making it possible for people throughout the country to enjoy international quality voice and SMS services. Telenor has shown innovation on technical solutions in markets where such solutions has not been an obtainable option Innovation Myanmar - «Digital IPX- Frontrunner». Through “All IP” and Collaboration increased connectivity people throughout the country are now In close collaboration with our suppliers we able to reach family members living have developed new technical solution to cater and working in the neighbouring for geographical challenges. countries.
TELENO R I PX NETWO RK
GLOBAL V OI CE Guaranteed high quality termination to our worldwide voice connections Focus on high quality termination through the use of our direct routes and carefully selected quality focused partners Quality and Service Management teams ready to offer you their expert support Pressure on the bottom line means competitive rates - we provide competitive pricing while keeping quality in focus
GLOBAL VOLTE I NTERWO R KI NG & ROAMI NG Maximizing the customer experience for international calls Allows for VoLTE calling internationally. Enables roamers to access their services while they are travelling Faster call set up time Better call Quality HD Voice Simultaneous Voice and Data sessions Enables delivery of Rich Communication Services e.g. video calling, file transferring, real time language translation, video voicemail and instant messaging Improved battery life Multi-party conferencing
GLOBAL HD VOI CE Enabling high definition voice internationally Feels like you are in the same room More effective conference calls Noise reducing capabilities Increased billable minutes by extended and higher quality voice calls Improved quality of conference calls Use of wideband technology provides deeper clarity and better audio Add depth and nuance to the transmitted sound while reducing bandwidth requirements
GLOBAL VOI PX Ready for the next generation of high quality voice services while continuing to support traditional needs Flexibility to meet customer needs - supports both HD voice and traditional voice Class of Service (CoS) – real time traffic prioritization and IP Packet Marking to ensure optimal transport functions Multi-VPN - access to several separate VPNs via the same access line. 24/7 monitoring of the service from the Network Operation Centre (NOC)
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