TELENOR GROUP THIRD QUARTER Sigve Brekke, CEO DISCLAIMER The - PowerPoint PPT Presentation

TELENOR GROUP – THIRD QUARTER Sigve Brekke, CEO

DISCLAIMER The following presentation is being made only to, and is only This presentation contains statements regarding the future in connection with the Telenor Group’s growth initiatives, profit directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a figures, outlook, strategies and objectives. In particular, the slide “2017 outlook unchanged (…)” contains forward-looking relevant person should not act or rely on this presentation or any statements regarding the Telenor Group’s expectations. All of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold statements regarding the future are subject to inherent risks and in the past or the yield on such investments cannot be relied upon uncertainties, and many factors can lead to actual profits and as a guide to the future performance of such investments. developments deviating substantially from what has been expressed or implied in such statements. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within 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 this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. 2

HIGHLIGHTS THIRD QUARTER 2017 OPERATIONAL HIGHLIGHTS KEY FINANCIALS • • 3% growth in mobile subscription and traffic Revenues of NOK 30.7 bn (+1%) revenues • Opex reductions of NOK 0.7 bn (-4%) • Good progress on transformation agenda - • EBITDA of NOK 13.0 bn (+9%) delivering on NOK 1 bn cost saving target • Net income of NOK 5.8 bn • Portfolio simplification continues - VEON sell- • down completed Free cash flow of NOK 9.4 bn EBITDA before other items. Organic growth rates 3

Q3 2017 CONTINUED MOBILE ARPU GROWTH AND 9% INCREASE IN INTERNET & TV REVENUES IN NORWAY MOBILE Mobile subscription & traffic revenues (NOK m) • 1% ARPU growth with domestic ARPU more than offsetting 2 892 2 852 2 792 2 774 2 776 2 655 roaming and interconnect decline • 65% growth in data usage and ~200% growth in roaming -1% • Stable contract subscriber base, continued decline in prepaid and data cards Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 FIXED • 8k new fibre connections, taking high-speed internet customer Fixed internet & TV revenues (NOK m) base to 625k 1 495 • Fixed revenue growth of 1%, as legacy decline is offset by 1 428 1 408 1 421 1 371 1 333 strong growth in internet & TV revenues 9% • ARPU growth of 4% in internet and 13% in TV Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Organic growth assuming fixed currency, adjusted for acquisitions and Organic revenue growth 4 disposals

Q3 2017 FURTHER EFFICIENCY IMPROVEMENTS SUPPORTING MARGIN UPLIFT IN NORWAY • Opex reductions of 5% adjusted for ESP* provisions of Opex (NOK m) NOK 45m 2 243 • Digitalization of sales and improved channel mix 2 186 -3% • Lower commissions due to handset installment programme and higher SIM-only sales Q3 16 Personnel O&M Sales & mrktng Other* Q3 17 • Workforce reductions of ~360 FTEs YoY EBITDA (NOK m) and EBITDA margin (%) • Continued reduction in operations & maintenance 2 973 2 906 2 843 2 631 2 643 2 575 2% 46% 45% 44% 41% 41% 39% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 5 * Other includes provisions related to the Employee Share Purchase Programme (ESP)

Q3 2017 IMPROVED REVENUE GROWTH IN DENMARK AND SWEDEN Sweden - Revenues (NOK m) and EBITDA margin (%) SWEDEN • 2% organic mobile subscription and traffic revenue growth 3 229 3 139 3 093 3 078 3 090 3 056 • 14k new fibre subscriptions, taking high speed fixed 4% broadband base to 571k • 7% organic growth in fixed revenues, driven by fibre 35% 34% 32% 32% 30% • Opex reduced by 3%, primarily from lower personnel costs 20% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Denmark - Revenues (NOK m) and EBITDA margin (%) DENMARK • ARPU stabilization and 3% growth in customer base YoY 1 309 1 288 1 263 1 241 1 249 1 229 • Further opex improvements supporting 83% EBITDA growth -4% • New family offer launched, including handset installment 20% programme 18% 18% 14% 11% 11% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Organic growth assuming fixed currency, adjusted for acquisitions and Organic revenue growth 6 disposals. EBITDA before other items

Q3 2017 CONTINUED OPEX IMPROVEMENTS IN CENTRAL AND EASTERN EUROPE HUNGARY Hungary - Revenues (NOK m) and EBITDA margin (%) • 3% organic growth in subscription and traffic revenues 1 194 1 149 1 124 1 101 1 094 1 053 backed by strong trend in consumer postpaid 4% • 2% opex decline and 5% EBITDA growth BULGARIA 35% 35% 35% 33% 30% 27% • EBITDA margin stable at 38% as gross profit decline was Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 more than offset by 6% organic opex improvement MNE & Serbia - Revenues (NOK m) and EBITDA margin (%) 1 045 1 011 961 MONTENEGRO AND SERBIA 955 924 854 • Strong cost control reduces opex by 11% 1% 41% 42% 37% 38% 35% 33% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Organic growth assuming fixed currency, adjusted for acquisitions and Organic revenue growth 7 disposals. EBITDA before other items

Q3 2017 POSTPAID GROWTH AND COST MANAGEMENT IN THAILAND AND MALAYSIA Thailand - Revenues (NOK m) and EBITDA margin (%) THAILAND (DTAC) • 16% organic growth in postpaid revenues - postpaid 5 086 4 818 4 751 4 671 4 629 4 487 surpassing prepaid revenues • Strong EBITDA margin driven by lower regulatory costs -4% and improved sales & marketing efficiency 41% 41% 37% • Network densification continues - number of base stations 35% 33% 31% increased by 21% YoY Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Malaysia - Revenues (NOK m) and EBITDA margin (%) MALAYSIA (DIGI) • 14% organic growth in postpaid revenues 3 411 3 324 3 233 3 049 2 989 2 927 • Prepaid revenues stabilised QoQ, supported by growth in prepaid internet -3% • 4G population coverage at 87% and improved indoor 48% 46% 46% 45% 45% 45% coverage following 900 MHz allocation Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Organic growth assuming fixed currency, adjusted for acquisitions and Organic revenue growth 8 disposals. EBITDA before other items

Q3 2017 CONTINUED STRONG PERFORMANCE IN EMERGING ASIA BANGLADESH (GRAMEENPHONE) Bangladesh - Revenues (NOK m) and EBITDA margin (%) • 15% growth in subscription & traffic revenues and 16% 3 432 3 277 3 257 3 194 3 134 2 965 organic growth in EBITDA 13% • 2.3 m net adds and 2.9 m new data users (+31% YoY) 61% 58% 59% 57% 54% 55% PAKISTAN • 6.5% revenue growth and 51% EBITDA margin, adjusted Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 for reversal of provisions • Positive contribution from cost efficiency initiatives Pakistan - Revenues (NOK m) and EBITDA margin (%) 2 113 2 031 2 029 MYANMAR 1 976 1 933 1 896 • 9% subscription and traffic revenue growth 11% • 43% EBITDA margin, impacted by higher regulatory costs 60% 49% 48% 48% 46% and adverse FX effects 43% • 8,000 sites on air by end of 2017 – improved 4G coverage Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Organic growth assuming fixed currency, adjusted for acquisitions and Organic revenue growth 9 disposals. EBITDA before other items

KEY DRIVERS FOR VALUE CREATION TOWARDS 2020 SIMPLIFICATION GROWTH EFFICIENCY 10

Q3 2017 SERVICE AND PRODUCT INNOVATION STRENGTHENING THE DIGITAL CUSTOMER INTERACTION Launch of family bonus in Norway WowBox provides easy access to Fully digital mobile service Full control of data bonus through internet, intuitive interface and a launched in September in Thailand MyTelenor app variety of localized content 11

Q3 2017 CREATING A LEANER TELENOR: PROGRESSING ON EFFICIENCY AND DIGITALIZATION AGENDA Group FTE development Customer service calls Norway (m)* MyDigi/Telenor app users (m) Digi Norway -6% -27% 32 275 3.9 2.2 31 523 3.4 30 906 2.8 1.5 30 359 0.8 0.5 2015 2016 2017e YE 2016 Q1 2017 Q2 2017 Q3 2017 YE 2016 Q3 2017 • • • Reduction of ~1,900 employees since Reduced reasons to call MyTelenor app launched in all markets end of 2016 • • Shift to digital customer care +43% growth Group wide in 2017 • Reskilling and new competencies • Process ongoing involving HQ staff 12 * Consumer segment

Q3 2017 CREATING A LEANER TELENOR: THE SIMPLIFICATION CONTINUES Scandinavia Q1 2017 • Cluster organization established • India exit announced in February Central & • Disposal of internet portal Startsiden Eastern Europe Q2 2017 • Further sell-down in VEON in April • Monetizing and focusing online classifieds portfolio Q3 2017 • Announced disposal of Telenor Banka in Serbia Developed Asia Emerging • Completion of VEON sell-down Asia • Sale of office property in Oslo 13

TELENOR GROUP – THIRD QUARTER Jørgen C. Arentz Rostrup, CFO