Telenor Asa · OSL:TEL
Telenor Asa — Telenor Asa Ord — Q2 2024 Earnings Presentation
40 slides from Telenor Asa's earnings presentation, Jul 18, 2024
Slide 1: Telenor Q2 2024 results
CEO Sigve Brekke ’ FO Kasper Wold Kaarba (actir Z 18.07.2024
Slide 2: Disclaimer
Disclaimer The following presentation deck 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 nota relevant person should not act or rely on this presentation or any of its contents. Information in th
Slide 3: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 mms,
Slide 4: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 5: Q2 2024 group highlights
So @ © 5% SR growth, Nordic 4% EBITDA growth, Transformation and NOK 2.2 bn FCF gaining traction Q2 2024 \ Synergy realisation ahead of plan in Thailand Continued focus on digital security
Slide 6: Nordic transformation gross operational improvements
• • • • • • • • • • *Gross operational improvements. Excluding 3rd party device financing impact 6 Sensitivity: Internal
Slide 7: Transformation leading to increasing benefits over the medium term
.. leading to increasing benefits over the medium term Structured programme portfolio of ..implying new ways-of-work that will entail transformation initiatives.... continued workforce optimisation ... Common-Nordic share of impact (Illustrative) Annual FTE reductions, % 8% 2016-2023 avg. 2023 2024-
Slide 8: Asia: Synergy momentum in True
Asia: Synergy momentum in True Thailand #1 mobile player ~ _ Malaysia an isa * rs - mobile player [i Consolidated fg Associated ‘companies companies may Q2 2024 Bangladesh true ~t celcomdig «& grameenphone Q1: 6% YOY SR growth Synergy realisation remaining ahead of plan Telenor expects dividend paym
Slide 9: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 10: Financial highlights
Service revenue growth 4.5% .... EBITDA growth 3.8% Capex/sales 15.4% —— Free cash flow before M&A (NOK ) 2.2bn 10
Slide 11: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 12: Group service revenue growth in line with trend
Group service revenue growth in line with trend Group service revenues — Service revenues, YOY% * Service revenues , YOY% - excl. reversals I Service revenues, NOKm 15,832 15,796 Q2 23 Q3 23 Q4 23 Q124 may [ey 2024 Note: Reversals relating to Pakistan in Q3 22/23 and Denmark in Q123/24 Hl o2 percent
Slide 13: OPEX remaining flat in the Nordics, buoyed by costs in Asia
OPEX remaining flat in the Nordics, buoyed by costs in Asia Organic opex, Group Opex by category (NOK million and YOY%) (NOK million YoY and YOY %) “3% v Salaries and alaries ani 3% 6,869 Personnel 88 ° Operation and -47 4% Maintenance — 6,626 Sales, Marketing, and Commission Energy 80 21% Q224 Nord
Slide 14: Group EBITDA growth driven by Nordics
Group EBITDA growth driven by Nordics EBITDA, Group — EBITDA, YOY% » EBITDA, YOY%- excl. reversals, flat energy cost ll EBITDA, NOKm 9,251 8,767 Q2 23 Q3 23 Q4 23 Q2 2024 Note: Reversals relating to Pakistan in Q3 22/23 and Denmark inQ123/24 BB 02 Percentage-point contribution to YOY %-growth 3.8% 1
Slide 15: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 16: Steady growth in Nordics
Steady growth in Nordics Service revenues, Nordics ~~ Service revenues, YOY% * Service revenues, YOY%- excl. reversals I Service revenues, NOKkm 10,794 10,789 11,086 Q223 Q323 Q423 Q124 i Q2 24 Organic growth may Q2 2024 09 09 03 WwW 0.0 [1 Q2percentage-point contribution to YOY %-growth No Swe DK D
Slide 17: Nordics' EBITDA growth supported by operational efficiency measures
Nordics’ EBITDA growth supported by operational efficiency measures EBITDA, Nordics — EBITDA, YOY% ++ EBITDA, YOY%-excl. reversals, flat energy cost Ml EBITDA, NOKm 5,722 Q2 23 Q3 23 may Q2 2024 Organic growth (0 02 percentage-point contribution to YOY %-growth 1.7% 0.8% 1.1% 1.2% -0.5% 4.2% Norway
Slide 18: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 19: Synergy and growth progress, with room for improvement in Asia
Synergy and growth progress, with still room for improvement in Asia Service revenues: EBITDA: (NOKmand YOY%) 4,666 4,778 I Telenor Pakistan 2,887 2814 ©) Grameenphone MM other/Elim CB Cpe Q223 Q224 may Q2 2024 EBITDA headwinds from inflation and increases in energy prices and regulatory fees True:
Slide 20: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 21: P&L: stable EBIT and substantial improvement in EPS
P&L: stable EBIT and substantial improvement in EPS NOK million EBITDA before other income and other expenses Other income and expenses EBITDA reported Depreciation and amortisation Impairment losses Operating profit (loss) Share of net income from associates and joint ventures Net financial income
Slide 22: FCF of NOK 2.2 bn supported by capex and NWC timing effects
FCF of NOK 2.2 bn supported by capex and NWC timing effects Q2 free cash flow, with drivers (NOK million) Mostly Seasonally high More than half is NOK 0.3-0.6bn Mostly Pakistan, some Grameenphone inQ2and Q4 estimated to be phasing to Q3 Grameenphone and Denmark Grameenphone | timing benefits | | | 8
Slide 23: Leverage ratio impacted by dividend payments
Leverage ratio impacted by dividend payments Leverage ratio and net interest-bearing debt (NOK bn) 140 25 Target 20} leverage 1.8x-2.3x 120 100 15 1.0 Q223 Q3 23 Q423 Q124 Q224 — Leverage ratio MI NIBD ex licence obligations may Q2 2024 _ Leverageratio= Net debt / [EBITDA before other items + divide
Slide 24: Contents
Contents Group highlights CEO Nordic transformation update Asia Financial highlights Group-level trends CFO Nordics Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q2 2024 fem
Slide 25: Updated outlook
Updated outlook fi 2024 ; TELENOR NORDICS 22024 YTD i Miterm anton Organic service revenues Low-to-mid 1% growth Si 4.5% >) single-digit = F Mid OrganicEBITDAgrowth @Y 42% om | single-cigit ~NOK 2 bn lower in Capex/sales >) 15.9% >) 2025 vs 2022 TELENOR GROUP Organic a fh growth >) FCF before M&A FC
Slide 26: rgroup
rgroup
Slide 27: rgroup
rgroup
Slide 28: Appendix
“A Appendix telenor group
Slide 29: Norway
Norway Mobile subscribers (‘000) | 2.2% 1 2,675 2,669 2,650 2,631 2,615 Q223 Q3 23 0423 Q124 Q2 24 Mobile ARPU (NOK/month) +5.6%, Y 376 385 388 390 397 Q2 23 Q3 23 Q3 24 Q124 Q2 24 Service revenues (NOK m) and EBITDA margin = EBITDA Margin Ml Service revenues 5,021 5,081 5,067 5,024 5,114 223 9323 0
Slide 30: Sweden
Sweden Mobile subscribers ('000) { +1.0%, Y 2,932 2,936 2,962 2,959 2,963 Q2 23 Q3 23 0423 Q124 Q224 Mobile ARPU (SEK/month) j H1.7% 1 184 186 186 183 187 Q2 23 Q3 23 0423 Q124 Q224 Service revenues (NOK m) and EBITDA margin = EBITDAMargin Ill Service revenues 2,441 2,362 2,544 2,491 2,518 Q223 Q3 2
Slide 31: Denmark
Denmark Mobile subscribers ('000) -0,8% I 7 + 1.679 1.689 1.690 1.674 1.666 Q2 23 Q3 23 0423 Q124 Q224 Mobile ARPU (DKK/month) 0.5%, 1 no 17 120 118 118 Q2 23 Q3 23 0423 Q124 Q2 24 Service revenues (NOK m) and EBITDA margin = EBITDAMargin Ill Service revenues 1.074 1.076 1,099 1.086 1.099 Q223 Q3 23
Slide 32: Finland
Finland Mobile subscribers ('000) { 41,7%, Y 2.742 2.769 2.758 2.762 2.788 Q223 Q3 23 Q423 Q124 Q224 Mobile ARPU (EUR/month) 46.5%, Y 18.0 18.3 18.8 19.0 19.2 Q223 Q3 23 0423 Q124 Q2 24 Service revenues (NOK m) and EBITDA margin — EBITDAMargin Ill Service revenues 2.282 2.295 2.395 2.378 2.450 Q223
Slide 33: Q2 2024: Nordics fixed broadband
Q2 2024: Nordics fixed broadband Total fixed broadband subscriptions (000) Nordic fixed service revenues, NOKm and share of total (%) Norway Sweden Denmark Finland Finland 724 724 583 684 67 659 688 (16%) Denmark | 467 (5%) Norway 19113 — 2 Sweden Q223 Q224 Q2230224 2223 Q224 = Q2.23. Q.2.24 ay Q220
Slide 34: Bangladesh
Bangladesh Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin — EBITDAMargin Ml Servicerevenues 44.9% Y 3.798 3.739 3.759 3.572 3.823 81,261 82,022 81,967 82,978 85,276 Q2 23 Q3 23 0423 Q124 Q2 24 Q2 23 Q3 23 0423 Q124 Q224 Mobile ARPU (BDT/month) EBITDAboi and capex (NOK m) ll EBI
Slide 35: Pakistan
Pakistan Mobile subscribers ('000) f 47% 1 46,627 45,383 44,369 44,659 44,438 Q2 23 Q3 23 Q423 Q124 Q2 24 Mobile ARPU (PKR/month) 49.1%, Y 499 195 209 217 217 Q2 23 Q3 23 Q423 Q124 Q224 Service revenues (NOK m) and EBITDA margin — EBITDA Margin [lll Service revenues 890 894 955 868 882 Q223 Q3 23 Q4
Slide 36: Q2 growth in Service Revenues and EBITDA
Q2 growth in Service Revenues and EBITDA Service Revenues EBITDA before other items Norway 2% 2% 2% 2% Sweden 3% 4% 5% 6% Denmark 2% 3% 10% 10% Finland T% 8% 8% 9% Nordic adj 3% 4% 4% 4% Grameenphone 1% 6% -1% 4% Pakistan 10% 6% “12% -14% Asia adj 2% 6% -3% 2% Infrastructure adj NA N/A -1% 0% Connex
Slide 37: Debt maturity profile (NOK bn)
Debt maturity profile (NOK bn) 2024 2025 2026 2027 2028 2029-> = Subsidiaries = Telenor ASA ay Q2 2024 37
Slide 38: Net debt reconciliation
Net debt reconciliation Non-current interest-bearing liabilities 66.9 74.9 Non-current lease liabilities 13.1 13.9 Current interest-bearing liabilities 17.8 13.1 Currentlease liabilities 3.8 4.2 Cash and cash equivalents (13.9) (12.5) Fair value hedge instruments 0.0 (0.0) Financial instruments (0.3
Slide 39: Additional information on net interest-bearing debt and partly owned companies
Additional information on net interest-bearing debt* and partly owned companies QoQ FX impact on net debt, NOKb Net debt* in partly-owned subsidiaries: +4,0 (NIBD increase) -2.3 (NIBD decrease) Grameenphone | 1.8 SH) Ownership in listed associated companies Direct and indirect ownership interest in
Slide 40: 17% 16% 14% 13% 13% 12% 12% 11% 11% 10% 8% 8% 8% 2012
17% 16% 14% 13% 13% 12% 12% 11% 11% 10% 8% 8% 8% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024