Telenor Asa · OSL:TEL
Telenor Asa — Q1 2005 Earnings Presentation
18 slides from Telenor Asa's earnings presentation, April 2005
Slide 1: Telenor – First Quarter 2005
Telenor – First Quarter 2005 Jon Fredrik Baksaas President and CEO
Slide 2: Operational highlights Q1 2005
Operational highlights Q1 2005 • Strong subscriber growth in NOK international mobile 58 • Successful launch in Pakistan • EBITDA margin in Sonofon above 20% CMD 2 CMD 3 • Domestic fixed line revenues down 4.5% 2
Slide 3: Reported P&L
Reported P&L Q1 2005 Q1 2004 2004 2003* Revenue 15 270 14 245 60 701 52 889 EBITDA 5 106 5 048 20 957 18 302 EBIT 2 425 2 537 6 789 7 560 Profit before Tax 2 815 5 033 9 296 7 426 Net Income 1 710 3 131 5 677 4 560 NOKm * Accounting figures and key figures for periods prior to 2004 are not restated
Slide 4: Mobile – Continued strong growth
Mobile Continued strong growth Total Consolidated Total Pro Rata 100% figures (all companies) 60,1 52,7 45,2 38,9 34,2 31,0 27,8 24,8 21,3 21,4 18,7 19,0 16,9 16,5 15,2 14,3 13,2 11,4 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 4
Slide 5: Telenor Mobil – Norway: Maintained the strong position
Telenor Mobil – Norway Maintained the strong position Revenues (NOKm) / EBITDA % 2 954 3 009 2 963 2 804 2 838 2 669 • Net addition of 12.000 GSM subscribers 35 % 38 % • Stable market share at 56% 37 % 36 % 37 % 37 % • Revenues increased 1% Q4 Q1 Q2 Q3 Q4 Q1 2003 2004 2004 2004 2004 2005 Subscriptio
Slide 6: Sonofon – Denmark: Balancing margin and market share
Sonofon - Denmark Balancing margin and market share Revenues (NOKm) / EBITDA % 1 266 1 243 1 225 1 195 1 207 1 193 • EBITDA margin 21% 21 % • Market share down 1 pp to 26% 25 % 25 % 19 % 21 % 1% Q4 Q1 Q2 Q3 Q4 Q1 • 3% revenue growth in local 2003 2004 2004 2004 2004 2005 currency Subscriptions (‘000
Slide 7: Kyivstar – Ukraine: Continued strong growth
Kyivstar – Ukraine Continued strong growth Revenues (NOKm) / EBITDA % 1 229 1 184 1 163 981 • Market share from 45% to 48% 801 825 54 % 61 % 60 % 63 % 60 % • 1.4 million new subscribers 63 % • Revenue growth of 56% in local currency Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 • High subscriber g
Slide 8: Pannon GSM – Hungary: Increased market share
Pannon GSM – Hungary Increased market share Revenues (NOKm) / EBITDA % 1 552 1 510 1 464 1 444 1 401 1 415 • Revenue growth of 1% • Net addition of 22K subs 37 % 40 % 39 % 36 % 30 % 28 % • Market share 34% Q4 Q1 Q2 Q3 Q4 Q1 2003 2004 2004 2004 2004 2005 • The first operator to launch mobile Subscrip
Slide 9: DiGi – Malaysia: Positive on all parameters
DiGi – Malaysia Positive on all parameters Revenues (NOKm) / EBITDA % 1 048 1 034 1 004 936 958 882 • Mobile penetration at 60% 44 % • Revenue growth of 23% in local 44 % 46 % 43 % 43 % 44 % currency Q4 Q1 Q2 Q3 Q4 Q1 • Net addition of 222K subscribers 2003 2004 2004 2004 2004 2005 Subscriptions (‘0
Slide 10: GrameenPhone – Bangladesh: Record high subscriber growth
GrameenPhone – Bangladesh Record high subscriber growth Revenues (NOKm) / EBITDA % 640 598 570 529 489 • Net addition of 540K subscribers 433 71 % 51 % • Revenue growth of 53% in local 64 % 58 % 59 % 58 % currency • Expanding network for future growth Q4 Q1 Q2 Q3 Q4 Q1 2003 2004 2004 2004 2004 2005
Slide 11: Successful launch in Pakistan
Successful launch in Pakistan • Less than a year from awarded licence to launch • Population coverage at launch: 32 million • 343K subscribers after 17 days of operations • Record low equipment prices 11
Slide 12: Vimpelcom – Corporate governance restored
Vimpelcom – Corporate governance restored • Strong growth in subscribers – VimpelCom1 – 29,7 Million in Russia end of March. Net adds of 4 mill. in 1Q05 1 – 1,1 Million in Kazakhstan1 – Stable market share at 34,6% • Telenor’ share of Market Value – VimpelCom: 13.5 NOKBn 2 Note 1 Source: AC&M Note 2
Slide 13: Fixed Line Norway: Adjusted Revenues and EBITDA
Fixed Line - Norway Adjusted Revenues and EBITDA Reported Revenues (NOKm) / EBITDA % 4 483 4 163 • Adjusted revenues down 4.5% • Adjusted EBITDA margin of 34% 36,4 % 34,5 % • Maintained market shares within voice minutes and ADSL Q1 2004 Q1 2005 • Net addition of 59.000* retail Adjusted Revenues (NO
Slide 14: Domestic Fixed Line: Migration to broadband and mobile
Domestic Fixed Line Migration to broadband and mobile Fixed Telephony Subscribers ADSL subscribers 634 561 2 201 2 176 172 2 153 2 126 2 100 2 065 2 040 476 1 939 145 1 885 1 838 1798 1757 429 123 77 380 108 72 19 313 96 72 18 68 18 80 59 18 44 17 366 12 326 270 235 208 177 237 288 302 308 268 161 Q
Slide 15: Cost reductions within Fixed Line
Cost reductions within Fixed Line Fixed Norway - OPEX z Reduce costs by NOK 1.5 Bn by 2007 2004 2007 z From 2010 - “All IP” infrastructure z Maintain a high DSL market share z Facilitate new services 1.5bn 15
Slide 16: Broadcast: Strong performance
Broadcast Strong performance Revenues (NOKm) / EBITDA % 1306 1390 • Revenue growth of 6 % • EBITDA margin of 27% 26,7 % 27,3 % Q1 2004 Q1 2005 • Continued subscriber growth within DTH EBITDA and Capex (NOKm) EBITDA CAPEX • Gain of NOK 386 Mn from sale of 349 380 Intelsat * 23 47 * Recorded as a fina
Slide 17: Net Debt/EBITDA reduced to 0.7x
Net Debt/EBITDA reduced to 0.7x Net Debt (NOKbn) to LTM EBITDA (x) Net Debt Changes (NOKbn) 22.0 20.6 Net Debt 31 Dec 2004 19.2 19.3 19.2 17,8 15.9 EBITDA - 5.1 Net interest 0.4 Taxes Paid 0.2 Net investments 1.4 Share buy back 0.3 Currency adj. Debt - 0.5 0.7x 1.0x 1.0x 1.1x 1.0x 0.9x Net Debt 31 M
Slide 18: Outlook for 2005
Outlook for 2005 • Continued growth in revenues and EBITDA Telenor Group • Capex/Sales in line with 2004 18