TELENOR GROUP – FIRST QUARTER Sigve Brekke, CEO

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 2016" 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 Q1 2016

A SOLID START TO THE YEAR

5.4 million new mobile subscribers
6% organic growth in mobile subscription and traffic revenues
5% organic EBITDA growth
Operating cash flow of NOK 6.1 billion

REVENUE GROWTH IN NORWAY IMPACTED BY LOWER HANDSET SALES AND DECLINING FIXED LEGACY REVENUES

MOBILE

1% organic growth in mobile subscription and traffic revenues
Lower handset sales volumes
New tariffs launched includes EU roaming

FIXED

6% revenue decline, primarily driven by telephony, ADSL and wholesale
12k new high-speed internet subscribers, compensating for ADSL decline

⁴ Organic revenue growth Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA margin before other items.

SOLID PROFITABILITY IN NORWAY, PROGRESS ON LONG TERM EFFICIENCY INITIATIVES

44% EBITDA MARGIN

Mobile gross profit stable despite lower roaming and wholesale contribution
Opex impacted by lower commissions and operation & maintenance costs

LONG TERM EFFICIENCY INITIATIVES

Reduce complexity of products, processes and IT systems
Scope extended to include cable operation
Net positive effect from 2017

5 EBITDA margin before other items.

CONTINUED GROWTH IN CONSUMER MOBILE IN SWEDEN

MOBILE

2% organic growth in mobile subscription and traffic revenues driven by consumer
3k net subscriber growth
Total mobile revenues impacted by handset sales

Mobile organic subscription & traffic revenue growth Revenues (NOK m) and EBITDA margin (%)

⁶ Organic revenue growth Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA margin before other items.

FIXED

11k new high-speed internet subscribers
Aiming to cover 500k new single dwelling households by 2020

CONTINUATION OF TRENDS IN OTHER EUROPEAN MARKETS

DENMARK

Continued intense competition
Launch of new business support system

HUNGARY

• Solid trends in postpaid consumer segment, offset by pressure in prepaid and SME

MONTENEGRO AND SERBIA

• 6% organic ARPU growth from increased IC revenues and higher postpaid share

BULGARIA

• Cost control supporting EBITDA margin

Q1 15 Q1 16

Revenues (NOK m) and EBITDA margin (%)

SUBSCRIBER GROWTH AMIDST INTENSE COMPETITION IN THAILAND

225k net subscriber growth
2% organic decline in subscription and traffic revenues
EBITDA margin improvement from lower device subsidies
3G population coverage at 94%, 4G now in all 77 provinces
Solid spectrum portfolio until concession expiry in September 2018

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

		concession $v$	LICENSE ^2/	TOTAL
	850MHZ	1800MHZ	2100MHZ
20		10MHz		10MHz
30	10MHz		10MHz	20MHz
4Q		15MHz	5MHz	20MHz
TOTAL	10MHz	25MHz	15MHz	50MHz

Revenues (NOK m) and EBITDA margin (%)

SOLID POSTPAID PERFORMANCE IN MALAYSIA

221k net subscriber growth and maintained market share in highly competitive market
2% organic decline in subscription and traffic revenues
7% organic growth in postpaid service revenues and stable postpaid ARPU*
3G/4G population coverage at 88%/73%
EBITDA continues to be impacted by margin pressure on international traffic

Revenues (NOK m) and EBITDA margin (%)

Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA margin before other items. *) Service revenues according to local definition.

STRONG PERFORMANCE IN BANGLADESH AND PAKISTAN

BANGLADESH (GRAMEENPHONE)

12% organic subscription and traffic revenue growth
55% EBITDA margin
SIM re-registration >50% completed

PAKISTAN

2.2 million net subscriber growth
2% organic subscription and traffic revenue growth
40% EBITDA margin

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

¹⁰ Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA margin before other items.

Organic revenue growth

FIRST QUARTER WITH POSITIVE OPERATING CASH FLOW IN MYANMAR

CONTINUED SUBSCRIBER GROWTH

1.8 million net subscriber growth
52% active data users
SIM market share estimated at 38%

STRONG FINANCIAL PERFORMANCE

42% EBITDA margin
10% operating cash flow margin

NETWORK ROLLOUT ACCORDING TO PLAN

5,000 network sites on air
62% population coverage
Aiming for around 9,000 sites

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

¹¹ Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA margin before other items.

CONTINUED SUBSCRIBER AND REVENUE GROWTH IN INDIA

1.5 million subscriber growth (+15% YoY)
Total subscriber base of 44 million
ARPU remains under pressure, with 8% decline YoY
9% organic growth in subscription and traffic revenues

CAPITAL MARKETS DAY

Date: 22 September 2016 Venue: London

SAVE THE DATE

TELENOR GROUP – FIRST QUARTER Morten Karlsen Sørby, Acting CFO

FINANCIAL HIGHLIGHTS

6% organic growth in mobile subscription & traffic revenues
35% EBITDA margin and 5% organic growth in EBITDA
Operating cash flow of NOK 6.1 billion
Outlook for 2016 maintained

	YTD
Organic revenue growth	1.5%
EBITDA margin	35.4%
Capex / sales	16.8%

¹⁵ Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA before other items. Capex excl. spectrum and licence fees.

ORGANIC REVENUE GROWTH SOFTENED BY LOWER HANDSET SALES

35% EBITDA MARGIN AND 5% ORGANIC EBITDA GROWTH

CAPEX OF NOK 5.5 BILLION

OPERATING CASH FLOW OF NOK 6.1 BILLION

SIGNIFICANT ONE-TIME ITEMS IN THE QUARTER

Issue	Account	P&L effect (NOK m)
Write-down of non-current receivables in India	Other items	-611
Impairment write-down India	Impairment	-2,302
Reversal of write-down of VimpelCom stake	Associated companies	+4,398
Impairment write-down in connection with sale of Amedia stake	Associated companies	-363
Partial repayment of net investment in Denmark and recycling of related OCI effects	Financial items	-577

NORMALISED NET INCOME OF NOK 3.6 BILLION

NOK m	Q1 16	Q1 15
Revenues	33 013	31 446	Broadcast (+211m)
EBITDA before other items	11 685	10 795
Other items	-691	-38	India (-611m), Norway (-77m), dtac (-37m)
EBITDA	10 994	10 757
Depreciation and amortisation	-5 044	-4 180	• India (-2,302m), Broadcast (-128m)
Impairment losses	-2 430	-13	• VimpelCom (4 582m)
EBIT	3 520	6 564	• Amedia (-363m)
Associated companies	4 175	428	• Online classifieds (-46m)
Net financials	-1 008	-550
Profit before taxes	6 688	6 667	Telenor ASA (-577m)
Taxes	-1 601	-1850
Non-controlling interests	830	967
Net income to Telenor	4 256	3 852
EPS (NOK)	2.83	2.57

NET DEBT OF NOK 53.6 BN AND NET DEBT/EBITDA OF 1.2X

46.8 43.9 47.1 46.6 54.1 53.6 1.2 1.1 1.2 1.1 1.2 1.2 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Net debt (NOK bn) and net debt/EBITDA Change in net debt (NOK bn) *

Net debt 31 Dec 2015	54.1
EBITDA	(11.0)
Income taxes paid	1.3
Net interest paid	0.5
Capex paid	6.2
Investments in Tapad	2.7
Divi. paid and minority share purchase	0.7
Net revenue share dtac	(0.4)
Currency effects	(1.6)
Licence obligations paid in Myanmar	1.1
Net change during Q116	(0.5)
Net debt 31 Mar 2016	53.6

OUTLOOK FOR 2016 MAINTAINED

	2016	YTD
Organic revenue growth	2-4%	1.5%
EBITDA margin	33-34%	35.4%
Capex/sales ratio	17-19%	16.8%

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

HIGHLIGHTS Q1 2016

A SOLID START TO THE YEAR

5.4 million new mobile subscribers
6% organic growth in mobile subscription and traffic revenues
5% organic EBITDA growth
Operating cash flow of NOK 6.1 billion

TELENOR GROUP – FIRST QUARTER Q&A

TELENOR GROUP – FIRST QUARTER APPENDIX

TELENOR GROUP

208 million consolidated mobile subscribers Revenues in 2015: NOK 128 bn (USD 14 bn) Market cap: NOK 202 bn (USD 22 bn)

GEOGRAPHIC SPLIT OF KEY FINANCIALS 2015

PRIORITIES FOR CAPITAL ALLOCATION