Telenor Asa · OSL:TEL
Telenor Asa — Telenor Asa Ord — Q1 2024 Earnings Presentation
39 slides from Telenor Asa's earnings presentation, Apr 30, 2024
Slide 1: Telenor Q1 2024 results
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 Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 4: Contents: Highlights
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 5: Execution on a strategy that works
Execution ona strategy that works Total free cash flow of NOK 5.4bn 6% service revenue growth 7% EBITDA growth 2
Slide 6: Nordics: strong start to the year
Nordics: strong start to the year Service revenue growth of 5%... ..and cost discipline yielding flat opex ..result in 8% EBITDA growth — Service revenues, YOY% * Mobile service revenues, YOY% 24 Q123) Q223 =Q323 Q423 Q124 Opex, YOY% 84 + More-for-more strategy through 2023 yielding results * Contin
Slide 7: Digital infrastructure enabling transformation
Digital infrastructure enabling transformation Skygard - anew green, secure Data Centre Competitive advantage to develop local Sovereign Al cloud Enabler for Telenor's ‘Clouc+ first’ and ‘Al-first’ strategy Le Lyttyy
Slide 8: Asia: Synergy momentum in True
Asia: Synergy momentum in True Thailand #1 mobile player ~ _ Malaysia #1 mobile + J ey player Bangladesh ‘ a #1 mobile player Pakistan #3 [i Consolidated fg Associated ‘companies companies may Q12024 true ~t celcomdig «& grameenphone ¥ telenor Increased tourism and market growth in line with GDP Syn
Slide 9: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 10: Group key figures: service revenue, EBITDA, capex, FCF
Service revenue growth EBITDA growth Capex/sales Free cash flow before M&A (NOK ) 5.6% 6.9% 16.1% 3.3 bn
Slide 11: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 12: Nordics' top line growth
Nordics’ top line growth Service revenues, Nordics ~~ Service revenues, YOY% [101 percentage-point contribution to YOY %-growth * Service revenues, YOY%- excl. reversals I Service revenues, NOKkm Solid Q1 growth on the back of ‘more-for- more’ price strategy 10,794 10,789 11,086 ee through 2023 1.0
Slide 13: All Nordic businesses contributing to strong Nordic EBITDA growth
All Nordic businesses contributing to strong Nordic EBITDA growth EBITDA, Nordics — EBITDA, YOY% + EBITDA, YOY%- excl. reversals, flat energy cost Ml EBITDA, NOKm 6,113 5,333 Q3 23 Q4 23 (0 Olpercentage-point contribution to YOY %-growth 8.3% 3.1% 2.3% 0.9% 2.1% -0.1%=—| Norway Sweden Denmark DNA Or
Slide 14: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 15: Asia: Steady growth
Asia: Steady growth Reported service revenues and EBITDA (NNOKmand YOY%) Service revenues: EBITDA: 4,303 4466 2,623 2,706 IB Telenor Pakistan M9) Grameenphone I other/Elim Q1238 Q124 Q1238 124 may Q12024
Slide 16: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 17: Group service revenue growth
Group service revenue growth Group service revenues ~~ Service revenues, YOY% Hl olpercentage-point contribution to YOY %-growth * Service revenues , YOY% - excl. reversals I Service revenues, NOKm 15,832 15,796 14,823 Q123 Q223 323 Nordics Asia Amp Elim. Group Organic growth 5.3% 6.0% 10.7% may Q1
Slide 18: Flat opex in the Nordics, energy headwinds in Asia
Flat opex in the Nordics, energy headwinds in Asia Organic opex, Group (NOK million and YOY%) +4.3% 78 6,704 Q123 Organic growth Nordics Asia Infrastructure Amp 0% 10% 8% 8% may Q12024 HQ and elim Q124 Opex by category (NOK million YoY and YOY %) Salaries and Personnel Operation and | Maintenance Sa
Slide 19: EBITDA growth driven by Nordics' strength
Group E EBITDA, Group —~ EBITDA, YOY% ll EBITDA, NOKm BITDA growth driven by Nordics’ strength Percentage-point contribution to YOY %growth | * EBITDA, YOY%- excl. reversals, flat energy cost 6.9% Q123 Q223 0323 0423 Nordics Asia Infrastructure Amp Other EBITDA ome Tea%] [5.3%] [7.7%] [25.6%] *2"™ N
Slide 20: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 21: Net income affected by reversal of True impairments
Net income affected by reversal of True impairments NOK million EBITDA reported Depreciation and amortisation Impairment losses Operating profit (loss) Share of net income from associated companies and joint ventures Net financial income (expenses) Profit (loss) before taxes Income taxes Net income
Slide 22: Leverage ratio within target range
Leverage ratio within target range Leverage ratio within target range (NOK bn) Macro and seasonality factors 140 So om | (2x) Volatility in FX and energy prices ton2de YOO 80 60 40 878 80.4 79.8 20 ie) Q123 Q223 Q3 23 Q4 23 Q124 — Leverage ratio HI NIBD ex licence obligations may Q12024 Leveragerati
Slide 23: FCF of NOK 3.3 bn and NOK 5.4 bn after M&A
FCF of NOK 3.3 bn and NOK 5.4 bn after M&A Q1 free cash flow, with drivers (NOK million) Seasonally low | [Structural improvements Mainly Telenor Satellite an and timing effects Seasonally high inQ1| | Mostly Norway Tower lease proceeds, NOK 2345m 8.505 -786 931 412 -3.901 -432 2.124 5.412 -358 -913
Slide 24: Contents
Contents Highlights Nordics Digital infrastructure Asia Financial highlights Nordics Asia Group-level trends P&L, leverage, and cash flow Outlook Concluding remarks Q12024
Slide 25: 2024 Outlook
2024 Outlook Mid-term ambition TELENOR NORDICS Q12024 2024 Outlook 2023-2025 eae service revenues >) 53% >) P| ! ae a Organic EBITDA growth (>) 8.3% >) P| ! Lene I Capex/sales >) 15.7% t >) round A we in TELENOR GROUP I Organic EBITDA growth (>) 6.9% >) | ; FCF before MBA >) noxasin | @ MNOKeIOBrN e
Slide 26: Concluding remarks
Slide 27: Q&A
Slide 28: Norway
Norway Mobile subscribers (‘000) 71.89 f 1.8% 1 2,680 2,675 2,669 2,650 2,631 Q123 Q2 23 Q3 23 0423 Q124 Mobile ARPU (NOK/month) +6,0%, Y 368 376 385 388 390 Q123 Q2 23 Q3 23 Q3 24 Q124 Service revenues (NOK m) and EBITDA margin — EBITDAMargin Ml Service revenues 4,898 5,021 5,081 5,067 5,024 123 22
Slide 29: Sweden
Sweden Mobile subscribers ('000) { 41.2%, Y 2,924 2,932 2,936 2,962 2,959 Q123 Q2 23 Q3 23 Q423 Q124 Mobile ARPU (SEK/month) 42.2% 1 179 184 186 186 183 Q123 Q223 Q3 23 0423 Q124 Service revenues (NOK m) and EBITDA margin = EBITDAMargin Ill Service revenues 2,441 2,544 2,491 2,308 2,362 Q123 Q223 03
Slide 30: Denmark
Denmark Mobile subscribers ('000) +1,9%, 1 1642 1.679 1.689 1.690 1.674 Q123 Q223 Q3 23 0423 Q124 Mobile ARPU (DKK/month) 0.8% I - v 19 no 17 120 118 Q123 Q2 23 Q3 23 0423 Q124 Service revenues (NOK m) and EBITDA margin = EBITDAMargin Ill Service revenues 1.074 1.076 1,099 1.086 948 Q123 Q2 23 Q3 23
Slide 31: Finland
Finland Mobile subscribers ('000) +1,2%, 1 2.729 2.742 2.769 2.758 2.762 Q123 Q223 Q3 23 0423 Q124 Mobile ARPU (EUR/month) 475% " W7 18.0 18.4 a 19.0 Q123 Q2 23 Q3 23 0423 Q124 Service revenues (NOK m) and EBITDA margin — EBITDA Margin [lll Service revenues 2.282 2.295 2.395 2378 2.093 Q123 0223 032
Slide 32: Q1 2024: Nordics fixed broadband
O1 2024: Nordics fixed broadband Total fixed broadband subscriptions (‘000) Nordic fixed service revenues, NOKm and share of total (%) Norway Sweden Denmark Finland Finland 563 (16.3%) 725 724 686 684 651 Denmark 166 (4.8%) Norway Sweden Q123 Q124 1230124 «= Q128 Q124 Qq123 Q124 ay Q12024 MEFWA - Fi
Slide 33: Bangladesh
Bangladesh Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin +3.6% T — EBITDA Margin [lll Service revenues 80,122 81,261 82,022 81,967 82,978 3.438 3.798 3.739 3.759 3.572 Q123 Q2 23 Q3 23 0423 Q124 Q123 Q2 23 Q3 23 Q4 23 Q124 Mobile ARPU (BDT/month) EBITDAboi and capex (NOK m) ll
Slide 34: Pakistan
Pakistan Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin — EBITDA Margin Ml Service revenues f 6.8% 865 868 882 890 894 47,920 46,627 45,383 44,369 44, a Q123 Q2 23 Q3 23 Q423 Q124 Q123 Q2 23 Q3 23 0423 Q124 Mobile ARPU (PKR/month) EBITDAboiand capex (NOK m) $210% Mi EBITDA CAPE
Slide 35: Q1 growth in Service Revenues and EBITDA
Q1 growth in Service Revenues and EBITDA Service Revenues EBITDA before other items Norway 3% 3% 4% 4% Sweden 8% 5% 8% 5% Denmark 15% 10% 42% 37% Finland 14% 9% 21% 16% Nordic adj 7% 5% 10% 8% Grameenphone 4% 5% 4% 5% Pakistan 3% 9% “1% 4% Asia adj 4% 6% 3% 5% Infrastructure adj NA N/A -1% -8% Conne
Slide 36: Grameenphone Q1 2024
NOK bn Q1 2024 Q1 2023 Grameenphone 1.5 2.2
Slide 37: Net debt reconciliation
Net debt reconciliation eee Non-current interest-bearing liabilities 76.3 68.8 Non-current lease liabilities 13.9 14.8 Current interest-bearing liabilities 10.5 10.7 Currentlease liabilities 44 42 Cash and cash equivalents (20.9) (14.3) Fair value hedge instruments 0.0 (0.0) Financial instruments (0
Slide 38: FX impact on NIBD, and ownership in associated companies
FX impact on NIBD, and ownership in associated companies QoQ FX impact on net debt, NOKb -0.7 (NIBD reduction) +4.0 (NIBD increase) Ownership in listed associated companies Direct and indirect ownership interest in per cent True Corporation 10,441,891,702 7.60 THB 23.6 bn 30.2 CelcomDigi 3,883,129,1
Slide 39: 17% 16% 14% 13% 13% 12% 12% 11% 11% 11% 10% 8% 8% 2012
17% 16% 14% 13% 13% 12% 12% 11% 11% 11% 10% 8% 8% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024