Telenor Asa · OSL:TEL
Telenor Asa — Telenor Asa Ord — Q4 2024 Earnings Presentation
48 slides from Telenor Asa's earnings presentation, Feb 6, 2025
Slide 1: Telenor Q4 2024 results
Telenor Q4 2024 results Benedicte Schilbred Fasmer (CEO) Torbjørn Wist (CFO) February 6, 2025
Slide 2: Disclaimer
Disclaimer The following presentation deck is being made only to, and is only directed at, This presentation contains statements regarding the future in connection with persons to whom such presentation may lawfully be communicated (’relevant the Telenor Group’s growth initiatives, profit figures, o
Slide 3: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 3
Slide 4: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 4
Slide 5: Initial reflections
Initial reflections CEO Benedicte Schilbred Fasmer Q4 2024 5
Slide 6: Key priorities: execution and evolution
Key priorities: execution and evolution Telenor Nordics Leading Nordic telco Strategic opportunities Telenor Asia #1 positions, synergies and free cash flows Telenor Infrastructure Leading Nordic infrastructure company Telenor Amp Develop IoT and security; divest non-core Q4 2024 6
Slide 7: Fourth-quarter highlights
Fourth-quarter highlights Solid performance in Macro in Bangladesh Strong FCF and competitive Nordic market weighing on Asia 2025 Outlook Q4 2024 7
Slide 8: Nordic transformation progressing
Nordic transformation progressing Network and IT Shared Services Working Capital Commercial Legacy systems shut down (#) Gross opex savings implemented (NOKmn) Gross operating WC reduction (NOKmn)* Cross-Nordic programmes Q4 2024 8
Slide 9: Nordic transformation progressing
Nordic transformation progressing Network and IT Shared Services Working Capital Commercial Legacy systems shut down (#) Gross opex savings implemented (NOKmn) Gross operating WC reduction (NOKmn)* Cross-Nordic programmes +68 +4% 268 182 +60% Overall Customer 175 Nordic TV Experience 800 200 700 Nor
Slide 10: Cash flow ambitions on track
Cash flow ambitions on track Free cash flow (NOK billion) 15.0 15 Outlook 13.3 2025: 1.9 Around 5.5 10.6 NOK 13 bn • Full-year FCF of NOK13.3 billion 10 0.7 • FCF before M&A exceeded our CMD ambition for the years 2022-2024 11.4 • The outlook for 2025 reflects improved line-of- 5 9.9 9.5 sight and r
Slide 11: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 11
Slide 12: Initial reflections
Initial reflections CFO Torbjørn Wist Q4 2024 12
Slide 13: Group Financial Highlights
Group Financial Highlights Service revenue growth EBITDA growth Capex/sales Free cash flow before M&A (NOK bn) 2024 3.3% 3.5% 16.2% 11.4 bn Q4 1.1% 2.0% 19.1% 3.1 bn Q4 2024 13
Slide 14: Group Financial Highlights
Group Financial Highlights Service revenue growth EBITDA growth Capex/sales Free cash flow before M&A (NOK bn) 2024 3.3% 3.5% 16.2% 11.4 bn Q4 1.1% 2.0% 19.1% 3.1 bn Q4 2024 14
Slide 15: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 15
Slide 16: Top-line affected by macro in Bangladesh
Top-line affected by macro in Bangladesh Group service revenues Last five quarters Q4 Service revenues, YoY% Percentage-point contribution to YoY %-growth Service revenues , YoY% - excl. reversals Service revenues, NOKmn 10 16,116 15,773 16,320 16,162 16,266 8 5.6% 4.9% 4.5% 6 1.1% -0.9 0.0 4.9% 5.2
Slide 17: Flat group opex in Q4
Flat group opex in Q4 Organic opex, Group Full-year reported opex and organic growth (NOK mn and YoY%) (NOK mn and YoY%) -0.1% Nordics Group 42 -64 24 7,156 -35 7,148 24 26,832 27,217 16,942 17,052 Q4 23 Nordics Asia Infrastructure Amp HQ and Q4 24 2023 2024 2023 2024 elim Organic growth -1% 1% 13%
Slide 18: Group EBITDA driven by Nordics partly offset by Grameenphone
Group EBITDA driven by Nordics partly offset by Grameenphone EBITDA, Group Last five quarters Q4 Percentage-point contribution to YoY %-growth EBITDA, YoY% EBITDA, YoY% - excl. reversals, flat energy EBITDA, NOKmn 5 8,790 9,206 10 4 8,467 8,505 8,479 6.9% 8 3 -2.0 6.6% 6 2.0% 3.9% 3.8% 2 4.1 -0.3 0.
Slide 19: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 19
Slide 20: Nordics' top-line growth in line with 2024 outlook
Nordics’ top-line growth in line with 2024 outlook Service revenues, Nordics NO: Mobile ARPU +4.9%, Broadband ARPU +3.6% Last five quarters Q4 Percentage-point contribution to YoY %-growth Service revenues, YoY% Service revenues, YoY% - excl. reversals Service revenues, NOKmn 11,158 11,391 11,166 7
Slide 21: Solid performance in Norway main contribution to Nordics EBITDA
Solid performance in Norway main contribution to Nordics EBITDA EBITDA, Nordics Last five quarters Q4 EBITDA, YoY% Percentage-point contribution to YoY %-growth EBITDA, YoY% - excl. reversals, flat energy cost 7 EBITDA, NOKmn 6.0% 6 0.1 6,515 5 1.7 5,862 5,948 5,898 5,644 0.1 4 1.1 3 8.3% 2 6.0% 3.2
Slide 22: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 22
Slide 23: Solid performance in Pakistan offsetting softness in Grameenphone
Solid performance in Pakistan offsetting some of the softness in Grameenphone Telenor Pakistan SR Service revenues: EBITDA: growth YoY of 12% (NOKmn and YoY%) -3.3%* -5.7%* 4,649 4,653 Grameenphone SR 3,018 2,944 decline of 4.6% 890 1,031 463 Telenor Pakistan 598 Grameenphone excluding one-offs Othe
Slide 24: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 24
Slide 25: Profit & loss statement
Profit & loss statement (NOK, all numbers in million except EPS) Comments: Q4 2024 Q4 2023 FY 2024 FY 2023 EBITDA before other income and other expenses 8,479 8,466 34,980 34,564 Q1 24: NOK 1,359 mn gain on Telenor Satellite Other income and expenses -361 -479 587 -1,040 EBITDA reported 8,118 7,987
Slide 26: Leverage ratio impacted by dividend payments
Leverage ratio impacted by dividend payments Leverage ratio and NIBD Short-term factors 140 2.4 2.4 2.5 2.3 2.3 2.1 2.2 2.2 2.2 Seasonality of dividend payments 120 Target 2.0 leverage 1.8x-2.3x 100 1.5 80 End-of-quarter EUR/NOK 60 1.0 40 87.8 80.4 79.8 83.2 83.5 86.8 77.5 79.0 0.5 20 Macro and FX u
Slide 27: FCF before M&A of NOK 3.1 bn
FCF before M&A of NOK 3.1 bn Q4 free cash flow, with drivers (NOK mn) EBITDA before other items 8,479 Income taxes paid -921 Two thirds GP Net interest paid -1,022 Seasonally high on Q2 and Q4 Operating Working capital 1,574 Partly structural improvements Dividends from associates 354 Dividends from
Slide 28: Contents
Contents CEO initial reflections Group highlights CEO Nordic transformation Cash flow development and ambitions CFO initial reflections Group Financial highlights CFO Group-level trends Nordics Asia P&L, cash flow and leverage Dividends and outlook Q4 2024 28
Slide 29: Proposed shareholder remuneration
Proposed shareholder remuneration Dividend per share (DPS) (Payout year, NOK) Dividend proposal Special DPS Ordinary DPS o Strong commitment to dividend policy 4.4 o Proposing 2024 dividend of NOK 9.60 o Pay-out in two tranches: 9.0 9.3 9.4 9.5 9.6 o NOK 5.00 pr share (June 2025) 8.1 8.4 8.7 7.3 7.5
Slide 30: Financial Outlook
Financial Outlook TELENOR NORDICS Q4 2024 2024 actuals 2024 outlook 2025 Outlook Organic service revenues 2.3% 3.6% 3-4% Low single-digit growth Organic EBITDA growth 6.0% 5.7% Around 6% Mid single-digit Capex/sales (excl. leases) 21.9% 17.1% <17% Around 14% TELENOR GROUP Organic EBITDA growth 2.0%
Slide 31: Key 'building blocks' for 2025 FCF outlook
Key ‘building blocks’ for 2025 FCF outlook (NOK bn) Outlook 2025: 14 Around NOK 13bn Key elements YoY delta expectations 12 11.4 • Nordics: mid-single-digit EBITDA growth (NOK 24.2 bn + Growth and transformation base) 10 8 + Reduced capital intensity • Nordics: NOK ~1.5 bn YoY reduction in booked ca
Slide 32: Concluding remarks
telenor group “A Concluding remarks 32
Slide 33: Q&A
Q&A 33
Slide 34: Appendix
telenor group “A Appendix 34
Slide 35: Telenor's Group Management
Telenor’s Group Management Group Management team EVP People, Sustainability and President & CEO Chief Financial Officer Chief Technology Officer External Relations Officer Benedicte Torbjørn Cathal Kennedy Rita Schilbred Fasmer Wist (acting) Skjærvik Business areas Head of Telenor Nordics Head of Te
Slide 36: Progress on ESG agenda
Progress on ESG agenda Environmental Social Governance Scope 1&2 emissions reductions* People trained in digital skills (mn) Closure-rate of non-conformities in the supply chain 90% 12.3 88% Series 1 50% 61% -13% -17% 6.0 -30% 4.1 3.0 Series 1 -64% Series 1 2022 2023 2024 2030 2022 2023 2024 2025 Ta
Slide 37: Advancing the digital world to be green, safe - and for all
Advancing the digital world to be green, For more information about safe - and for all Telenor’s approach to sustainability, please see the 2023 Annual Report and Q4 2024 report 2024 status Environmental Social Governance • Target to reach net-zero emissions by • 8.2 million people trained in digita
Slide 38: Norway
Norway Service revenues (NOK mn) and EBITDA Mobile subscribers (‘000) margin EBITDA Margin Service revenues -1.9% 5,067 5,024 5,114 5,187 5,158 2,650 2,631 2,615 2,620 2,600 1.8% 54.1% 50.9% 50.6% 49.4% 46.4% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (NOK/month) EBITDA
Slide 39: Sweden
Sweden Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues +1.1% 2,544 2,491 2,518 2,585 2,993 2,458 2,962 2,959 2,963 2,974 0.0% 39.3% 33.1% 34.9% 35.7% 35.4% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (SEK/month) EBITDA
Slide 40: Denmark
Denmark Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin +0.3% EBITDA Margin Service revenues 1,690 1,674 1,666 1,682 1,696 1,099 1,086 1,099 1,132 1,114 3.8% 32.6% 34.6% 32.9% 25.3% 27.2% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (DKK/month) EBITDA
Slide 41: Finland
Finland Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin +1.6% EBITDA Margin Service revenues 2,395 2,378 2,450 2,509 2,445 2,758 2,762 2,788 2,814 2,803 4.7% 39.1% 37.9% 39.9% 34.9% 33.4% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (EUR/month) EBITDA
Slide 42: Q4 2024: Nordics fixed broadband
Q4 2024: Nordics fixed broadband Total fixed broadband subscriptions (‘000) Nordic fixed service revenues, NOKm and share of total (%) FWA Fibre Cable DSL Norway Sweden Denmark Finland Finland 727 715 563 (16%) 125 121 684 660 674 697 19 24 Denmark 160 (5%) 268 285 414 433 1,920 684 660 (56%) Norway
Slide 43: Bangladesh
Bangladesh Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin +2.8% EBITDA Margin Service revenues 81,967 82,978 85,276 84,564 84,252 3,759 3,823 3,622 3,572 3,400 61% 61% 60% 59% 57% -7.0% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (BDT/month) EBITDA
Slide 44: Pakistan
Pakistan Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin -2.7% EBITDA Margin Service revenues 1.031 44,369 44,659 44,438 43,857 955 933 43,155 890 894 47% 41% 41% 39% 41% 12.0% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile ARPU (PKR/month) EBITDA and capex
Slide 45: Debt maturity profile (NOK bn)
Debt maturity profile (NOK bn) Debt Telenor ASA Debt subsidiaries 23.5 3.6 14.3 11.8 7.7 7.3 7.6 7.9 2025 2026 2027 2028 2029 2030 2031-> Q4 2024 45
Slide 46: Net debt reconciliation
Net debt reconciliation NOK bn Q4 2024 Q4 2023 Non–current interest-bearing liabilities 72.7 75.7 Non-current lease liabilities 13.2 13.2 Current interest-bearing liabilities 11.4 11.8 Current lease liabilities 4.3 4.1 Cash and cash equivalents (10.4) (19.6) Fair value hedge instruments 0.0 0.0 Fina
Slide 47: 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 (NOK bn) Net debt* in partly-owned subsidiaries (NOK bn): Q4 2024 Q3 2024 Q4 2024 Q4 2023 +0.5 (NIBD increase) +2.4 (NIBD increase) Grameenphone 4.0 1.7 Ownership in listed associated companies
Slide 48: Return on capital employed
Return on capital employed Return on capital employed* 17% 16% 14% 14% 13% 13% 12% 12% 11% 11% 10% 8% 8% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: See APM section in quarterly report for ROCE calculation and definition. Q4 2024 2012-2019 numbers including Myanmar Results