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

DISCLAIMER

The following presentation 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 not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.

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.

This presentation contains statements regarding the future in connection with the Telenor Group's growth initiatives, profit figures, outlook, strategies and objectives. In particular, the slide "Outlook for 2017" contains forward-looking statements regarding the Telenor Group's expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

HIGHLIGHTS 2016

FOURTH QUARTER

Revenues of NOK 33.1 bn (+1%)
EBITDA of NOK 10.8 bn (+2%)
High investments in mobile and fibre networks

FULL YEAR

Revenues of NOK 131.4 bn (+1%)
EBITDA of NOK 46.5 bn (+5%)
Progress on transformation agenda
Free cash flow to equity of NOK 10.3 bn
Dividend of NOK 7.80 per share

GOOD MOMENTUM ON FIBRE ROLL-OUT IN NORWAY AND SWEDEN

NORWAY

3% mobile ARPU growth adj. for handset related effects
17% growth in high-speed broadband revenues
Capex of NOK 1.5 bn, focused on 4G and fibre roll-out

SWEDEN

5% EBITDA growth, adj. for one-time effects
5% growth in fixed revenues, driven by fibre

DENMARK

44,000 net mobile subscriber growth in continued highly competitive environment
6% organic revenue decline and 12% EBITDA margin

Sweden - Revenues (NOK m) and EBITDA margin (%)

Organic revenue growth.

Sweden EBITDA % in Q4 16 adjusted for one-time effect

PERFORMANCE IN CENTRAL AND EASTERN EUROPE IN LINE WITH TRENDS

HUNGARY

2% organic decline in subscription and traffic revenues
10% organic growth in EBITDA, driven by opex reduction

BULGARIA

5% organic subscription and traffic revenue growth
Focus on pre to post migration in a highly competitive environment
Awarded fastest mobile network in Bulgaria (Ookla)

SERBIA AND MONTENEGRO

1% organic revenue growth and 30% EBITDA margin
254,000 net subscriber decline from seasonal prepaid churn

Bulgaria - Revenues (NOK m) and EBITDA margin (%)

Organic revenue growth

DOUBLE-DIGIT REVENUE GROWTH AND HEALTHY MARGINS IN EMERGING ASIA

BANGLADESH (GRAMEENPHONE)

12% organic subscription and traffic revenue growth
2.9 million net subscriber growth during Q4
Leveraging on data position, supported by superior 3G network

PAKISTAN

10% organic subscription and traffic revenue growth
1.2 million net subscriber growth during Q4

MYANMAR

20% organic revenue growth and 41% EBITDA margin
0.4 million net subscriber growth and 6% ARPU uplift vs Q3

INDIA

• Operating cash flow break-even following tight cost control

Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA before other items.

Pakistan - Revenues (NOK m) and EBITDA margin (%)

EBITDA GROWTH AND SOLID POSTPAID PERFORMANCE IN THAILAND AND MALAYSIA

THAILAND (DTAC)

15% organic growth in postpaid revenues
1% organic EBITDA growth amidst 3% decline in subscription and traffic revenues
Lower regulatory cost offsetting prepaid device subsidies
2,700 new 4G sites rolled out during the quarter

MALAYSIA (DIGI)

14% organic growth in postpaid revenues
6% organic EBITDA growth amidst 2% decline in subscription and traffic revenue
Improved margin on international traffic
4G network reaching 85% population coverage

Malaysia - Revenues (NOK m) and EBITDA margin (%)

1% ORGANIC REVENUE GROWTH AND 2% EBITDA GROWTH

1.2% organic growth adj. for one-time effect in Sweden
Organic revenue growth driven by emerging Asian operations and improved momentum on fibre in Norway and Sweden
Lower handset sale vs Q4 2015, especially in Thailand

Revenues (NOK m) EBITDA (NOK m) and EBITDA margin (%)

4.8% organic growth adj. for one-time effect in Sweden
Organic EBITDA growth driven by increased contribution from Bangladesh, Malaysia, Myanmar and India

8 Organic growth assuming fixed currency, adjusted for acquisitions and disposals.

CAPEX OF NOK 6.9 BILLION, DRIVEN BY INVESTMENTS IN 3G/4G AND FIBRE

• Full-year capex of NOK 23 bn, with capex/sales of 17.3%

• Fibre capex in Norway and Sweden of around NOK 0.8 bn in Q4, and around NOK 2.5 bn for full year 2016

CONSOLIDATED INCOME STATEMENT – Q4 AND FULL YEAR

NOK m	Q4 16	Q4 15	Year 2016	Year 2015
Revenues	33 144	33 487	131 427	128 175
EBITDA before other items	10 793	10 860	46 483	44 197
Other items	- 326	-257	-1 380	-872
EBITDA	10 467	10 603	45 103	43 325
Depreciation and amortisation	-5 094	-5 083	-20 050	-18 384
Impairment losses	-1 187	-2 103	-7 983	-2 181
Operating profit	4 186	3 417	17 070	22 761
Associated companies	1 439	-2 835	-1 796	-6 819
Net financials	-1 803	-980	-3 543	-2 921
Taxes	-910	-995	-5 924	-6 317
Non-controlling interests	625	732	2 974	3 289
Net income to Telenor equity holders	2 286	-2 125	2 832	3 414
Earnings per share (NOK)	1.52	-1.42	1.89	2.27

ADJUSTED* NET INCOME OF NOK 2.7 BILLION IN Q4

NOK m	Reported Q4 16
Revenues	33 144	203	33 347	• VAT provision Sweden
EBITDA before other items	10 793	251	11 044	• Workforce reductions (-355m)
Other items	- 326	326	0	• Scrapping (-457m)
EBITDA	10 467		11 044	• Sale of property (+458m)
Depreciation and amortisation	-5 094		-5 094	• India capex (-155m)
Impairment losses	- 1 187	1 187	0	• Tapad goodwill (-1.0 bn)
Operating profit	4 186		5 951
Associated companies	1 439	-1 528	-89	• Reversal VimpelCom impairment incl. share of Q3 net income
Net financials	-1 803	478	-1 325
Taxes	-910	-274	-1 185	• Loss on derivative /exchangeable bond)
Non-controlling interests	625	-23	648
Net income - Telenor equity holders	2 286	417	2 703
Earnings per share (NOK)	1.52		1.80

11 *Adjusted for Other items, impairment losses, VimpelCom and other one-time effects disclosed in our financial reporting

Q4 2016

FREE CASH FLOW TO EQUITY OF NOK 10.3 BILLION IN 2016

Net cash flow from operating activities (NOK m) Net cash flow from investing activities (NOK m)

• NOK 39.8 bn in cash flow from operating activities in 2016, vs NOK 37.1 bn in 2015

• NOK -21.1 bn in cash flow from investing activities in 2016, vs NOK -20.3 bn in 2015

NET DEBT OF NOK 54 BN AND NET DEBT/EBITDA OF 1.2x

Net debt (NOK bn) and net debt/EBITDA Change in net debt (NOK bn) *

Net debt 30 Sep 2016	47.9
EBITDA	(10.5)
Income taxes paid	1.5
Net interest paid	0.3
Capex paid	6.8
Divestment of business	(0.5)
Dividends paid to Telenor shareholders	5.0
Dividends paid to non-controlling interests	0.4
Currency effects	1.1
Reclassification of deposits fin. services	1.2
Changes in working capital and other	0.7
Net change during Q4 16	6.5
Net debt 31 Dec 2016	54.4

DIVIDEND OF NOK 7.80 PER SHARE FOR 2016

Proposing a total dividend per share of NOK 7.80 for 2016, for AGM approval in May
Annual dividend to be paid out in two instalments:
NOK 4.30 to be paid out in May
NOK 3.50 to be paid out in November
Total payout of NOK 11.7 billion, +4% vs 2015
Confirming the company's ambition to deliver year-on-year growth in dividend

OUTLOOK FOR 2017

	2017	2016
Organic revenue growth	1-2%	1.1%
EBITDA margin	Around 36%	35.4%
Capex/sales ratio	15-16%	17.3%

Organic revenue growth in fixed currency, adj. for acquisitions and disposals. EBITDA before other items. Capex excl. spectrum and licence fees.

HIGHLIGHTS 2016

FOURTH QUARTER

Revenues of NOK 33.1 bn (+1%)
EBITDA of NOK 10.8 bn (+2%)
High investments in mobile and fibre networks

FULL YEAR

Revenues of NOK 131.4 bn (+1%)
EBITDA of NOK 46.5 bn (+5%)
Progress on transformation agenda
Free cash flow to equity of NOK 10.3 bn
Dividend of NOK 7.80 per share

TELENOR GROUP – FOURTH QUARTER APPENDIX

TELENOR GROUP

214 million consolidated mobile subscribers Revenues in 2016: NOK 131 bn (USD 16 bn) Market cap: NOK 194 bn (USD 23 bn)

Other

GEOGRAPHIC SPLIT OF KEY FINANCIALS - FULL YEAR 2016

EBITDA

Emerging Asia Mature Asia

Scandinavia CEE Emerging Asia Mature Asia Other

EBITDA LESS CAPEX

Emerging Asia Mature Asia Other

EBITDA before other items. Capex excl. licences 19

NORWAY

Organic growth Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA before other items. Capex excl. licence fees

Mobile ARPU (NOK/month) EBITDA and capex (NOK m)

SWEDEN

Organic growth Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA before other items. Capex excl. licence fees

Mobile ARPU (SEK/month) EBITDA and capex (NOK m)

ADDITIONAL INFORMATION – NORWAY AND SWEDEN

Norway – fixed broadband subscribers ('000)

High speed Low speed