Telenor ASA — Earnings Release 2022

Feb 2, 2023

TELENOR GROUP

Fourth quarter 2022

Sigve Brekke, CEO

1

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 2022" 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.

The comments in the presentation are related to Telenor's development in 2022 compared to the same quarter of 2021, unless otherwise stated.

Executing on CMD plan

Leading Nordic telco

Strengthen positions in Asia

Crystallisation of Infrastructure values

Portfolio development in Amp

Environmental enabler for our partners and customers Social and digital inclusion

Delivering on our strategy

Growth in the Nordics	Successful M&A
5% Nordic mobile service revenue growth	Closed merger in Malaysia and Fibre deal in Norway
Modernisation continuing	Record results
Copper decommission completed	Net income of NOK 45 bn in 2022

Sensitivity: Internal

4

Creating CelcomDigi the leading telecom operator in Malaysia

• The largest telecom tech company on Bursa Malaysia
• Telenor's 33.1% ownership share equals NOK ~38bn
• Transaction closed 30 November, with Telenor recognizing a gain of NOK 33bn in Q4
• Material value creation through realization of NOK ~18bn of identified synergies
• Merger expected to be dividend accretive for Telenor from 2024 onwards

* Q3 numbers

Closing in on completion of merger in Thailand

• The dtac and True transaction has entered final phase and closing is expected in Q1
• Creating a telecom tech frontrunner across mobile, broadband and television
• Clear benefits and synergy potential from scale advantages, investment capabilities and competence
• Strategic owners and equal partners with CP Group, each with ~30% ownership

Norwegian fibre transaction crystallises infrastructure values

• Transaction closed 1 February
• Sold 30% of the Norwegian fibre business to KKR and Oslo Pensjonsforsikring at enterprise value NOK 36 billion
• Network of 130,000 km of cables connecting upwards of 560,000 homes
• Strong partners supporting further value creation through continued investments in Norwegian fibre

Strong trends in Nordic Mobile Service Revenues

Year-on-year growth (%)

Nordic Modernisation: Legacy free Norwegian operation

• Last POTS and retail DSL lines decommissioned according to plan in December 2022
• EBITDA headwind easing into 2023

Next phase of modernising Telenor Norway

Finalising copper decommission Enabling structural initiatives

Enabler for change Nordic collaboration

Nordic collaboration on Tech, IT and shared services

New Norwegian organisation

Teams organised around customer value

Estimated around 400 fewer FTEs and consultants

Executing on the value creation strategy

Carve-outs and modernisation

• Closed merger in Malaysia
• Closed fibre transaction in Norway
• Copper decommission
• Closing merger in Thailand

TELENOR GROUP

Fourth quarter 2022

Tone Hegland Bachke, CFO

Fourth quarter and full year highlights

Sensitivity: Internal

¹³ Q4 2022

Service Revenue growth reflecting strength in the Nordics

OPEX increased by 5% in Q4, excluding energy

Q4 YoY change NOK million* Q4 YoY change NOK million* Salaries and Personnel Sales, Marketing, Commissions Operation and Maintenance Energy Other opex Group 96 130 214 97 Finland 57 Norway 54 Sweden 26 Denmark 11 Thailand Pakistan Other/ Q4 22 Eliminations/ Bangladesh Intercompany Bangladesh 10 7,539 311 8,162 Q4 21 +8%

Quarterly opex Opex by category

-100

58

114

250

300

Q4 2022

15

623

Lower energy costs for 2022 than indicated at CMD

Energy cost development*

NOK million

Organic EBITDA remained stable

Q4 2022 YoY change

%-points contribution to YoY % EBITDA growth

Organic EBITDA growth of 1% in 2022

FY 2022 NOK billion

Net income to equity holders of NOK 45 billion

Net income to equity holders of Telenor

NOK billion

Capex to sales of 17% in 2022 -Leverage within target range

Capex ex. licenses and spectrum NOK billion

• Leverage ratio from Q4 2022 onwards includes dividends from associates

• Leverage ratio = Net debt / [EBITDA before other items + dividends from associated companies]

• Leverage ratio before Q422 includes Digi

Free Cash Flow of NOK 10.6 billion in 2022

Free cash flow

NOK billion

Mid-term outlook

• Outlook for FCF excl. M&A unchanged from CMD
• 2023 FCF impacted by deconsolidation of Digi and Dtac, only partly offset by dividends
• Asian dividend ramp-up in 2024 and 2025 backed by synergy realization
• FCF improvement in the Nordics throughout the period

FCF excl. M&A and disposals M&A and disposals

Outlined FCF forecast excl. new spectrum, M&A and disposals from CMD

Proposed shareholder remuneration

Shareholder remuneration

NOK billion

Share buyback

• Sold 30% of the Norwegian fibre business
• The board intends to use 35% of the proceeds for share buyback
• Agreement in place to redeem a proportionate share of the Norwegian state holding

• Buyback programme to start in February

• Proposing dividend of NOK 9.4 per share for FY 2022, in line with dividend policy and subject to approval by AGM

• First tranche of NOK 5.0 per share in May, second tranche of NOK 4.4 per share in October

Outlook Telenor Nordics

²³ Q4 2022 Organic service revenue growth in fixed currency, adjusted for acquisitions and disposals. EBITDA before other items. Capex excluding licences and spectrum.

TELENOR GROUP

Fourth quarter 2022

Appendix

Geographic split of key financials 2022

EBITDA before other items. Capex excl. licences.

Norway

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

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

Sweden

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

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

Denmark

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

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

Finland

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

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

1 824 1 800 1 859 1 893 1 994 35% 38% 38% 38% 33% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 5%

Additional information – Nordics

Q4 2022

Thailand (dtac)

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

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

Bangladesh (Grameenphone)

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

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

Pakistan

33

Q4 2022

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

Mobile subscribers ('000) Service revenues (NOK m) and EBITDA margin

Q4 growth in Service Revenues and EBITDA

Country	Service revenues		EBITDA
	Reported	Organic	Reported	Organic
Norway	-1%	-1%	-3%	-3%
Sweden	1%	5%	-8%	2%
Denmark	11%	7%	12%	7%
Finland	9%	5%	1%	-3%
Thailand	5%	-2%	10%	3%
Bangladesh	2%	4%	6%	8%
Pakistan	-12%	-5%	-23%	-17%
Telenor Group	3%	2%	0%	0%

Net income of NOK 45 billion for 2022

NOK m	2021	2022	Q4 2021	Q4 2022
Revenues	97 153	98 953	24 865	25 402
EBITDA before other items	42 656	42 374	10 148	10 146
Other items	(1 754)	743	(1 205)	(338)
EBITDA	40 902	43 117	8 943	9 809
Depreciation & amortization and Impairments	(23 247)	(25 771)	(5 805)	(5 896)
Operating profit	17 654	17 346	3 137	3 913
Associated companies and JVs	(459)	(303)	(173)	(37)
Net financials	(3 472)	(6 312)	(793)	(593)
Taxes	(5 008)	2 914	(1 028)	1 694
Profit (loss) from discontinued operations	(4 123)	33 716	145	33 148
Minorities	3 063	2 449	702	220
Net income - Telenor equity holders	1 528	44 913	587	37 906
Earnings per share (NOK)	1.09	32.09	0.42	27.09

Debt maturity profile (NOK bn)

Net debt* in partly-owned subsidiaries:

NOK bn	Q4 2022	Q4 2021
dtac	20.2	19.6
Grameenphone	2.9	2.3

Subsidiaries Telenor ASA

31.6

4.2

Net debt reconciliation

NOK bn	Q4 2022	Q4 2021
Non–current interest-bearing liabilities	83 297	87 811
Non-current lease liabilities	24 417	28 101
Current interest-bearing liabilities	8 596	9 276
Current lease liabilities	6 674	6 977
Cash and cash equivalents	(9 929)	(15 223)
Fair value hedge instruments	(27)	(1 071)
Financial instruments	(277)	(327)
Non-current license obligations	(11 944)	(12 496)
Current license obligations	(2 931)	(2 264)
Net interest-bearing debt excl. license obligations	97 875	100 783

Balance sheet and key ratios

	31 Dec 2022	31 Dec 2021
Total assets	239 059	225 740
Equity attributable to Telenor ASA shareholders	60 139	26 294
Gross debt*	122 984	132 165
Net debt	97 875	100 783
Dividends from associates and joint ventures	1 376	-
Leverage**	2.2	2.1
Return on capital employed***	14%	8%

*) Gross debt = current interest-bearing liabilities + non-current interest-bearing liabilities + current and non-current lease liabilities

**) 12 months rolling EBITDA; Leverage= Net Debt (EBITDA + Dividends from Associates and Joint Ventures)

***) Calculated based on an after-tax basis of the last twelve months return on average capital employed

Return on capital employed

*) See APM section in quarterly report for ROCE calculation and definition

**) 2012-2019 numbers including Myanmar