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 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 FIRST QUARTER 2017

OPERATIONAL HIGHLIGHTS

Data monetization in Emerging Asia
Solid fibre momentum in Norway and Sweden
Strong postpaid, while working to stabilize prepaid in Thailand and Malaysia
Progress on strategic agenda

KEY FINANCIALS

Revenues of NOK 30.5 bn (0%)
EBITDA of NOK 11.5 bn (+3%)
Net income of NOK 4.2 bn
Free cash flow of NOK 2.2 bn

REVAMPED MOBILE OFFERINGS AND FIBRE GROWTH IN NORWAY

MOBILE

Successful launch of new offerings in March, targeting the youth segment
Stable revenues excluding effect from launch of data rollover

FIXED

Good momentum on fibre rollout, with 12k new fibre connections and 5% broadband ARPU growth
6% growth in Internet and TV revenues, offsetting decline on legacy revenues

EBITDA

EBITDA impacted negatively by NOK 85 m rollover effect
Stable opex YoY, cost programme progressing as planned

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

Mobile ARPU development (NOK)

SOLID REVENUE AND EBITDA GROWTH IN SWEDEN AND DENMARK

SWEDEN

24k net mobile subscriber growth and 19k new fibre connections
5% organic growth in fixed revenues, driven by fibre
Stable opex and 11% organic growth in EBITDA

DENMARK

9k net mobile subscriber growth in continued highly competitive environment
Revenue growth driven by strong handset sale
Solid EBITDA improvement from 15% decline in opex

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

Organic revenue growth.

STEADY PERFORMANCE IN CENTRAL AND EASTERN EUROPE

HUNGARY

Stable organic subscription and traffic revenues
3% organic growth in EBITDA, driven by opex reduction

BULGARIA

1% organic subscription and traffic revenue growth
Focus on 4G and pre to post migration
Stable opex and 3% organic growth in EBITDA

SERBIA AND MONTENEGRO

Stable organic subscription and traffic revenues
1% organic growth in EBITDA, supported by opex decline

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

Organic revenue growth

SOLID POSTPAID TRENDS AND CONTINUED PREPAID COMPETITION IN DEVELOPED ASIA

THAILAND (DTAC)

Slight reduction in subscription and traffic revenues, while total revenues impacted by lower handset sales
20% organic growth in postpaid revenues and successful launch of speed based price plans
Network densification continues with improvement in network perception

MALAYSIA (DIGI)

Intense prepaid competition offsetting strong postpaid performance
45% EBITDA margin supported by stringent cost control
4G network reaching 85% population coverage

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

DATA MONETIZATION DRIVING REVENUE GROWTH AND MARGINS IN EMERGING ASIA

BANGLADESH (GRAMEENPHONE)

11% organic revenue growth, supported by 6% ARPU growth
58% EBITDA margin and 17% organic growth in EBITDA

PAKISTAN

10% organic revenue growth
49% EBITDA margin and 25% organic growth in EBITDA

MYANMAR

13% organic revenue growth and stable ARPU vs Q4 16
Successful re-registration of subscriber base
43% EBITDA margin and 16% organic growth in EBITDA

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

TAKING STEPS TOWARDS SIMPLIFICATION

India exit announced in February
Cluster organization launched
Further sell-down in VEON
Continue to simplify portfolio - divested Startsiden
Efficiency efforts continues

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

HIGHLIGHTS FIRST QUARTER 2017

OPERATIONAL HIGHLIGHTS

Data monetization in Emerging Asia
Solid fibre momentum in Norway and Sweden
Strong postpaid, while working to stabilize prepaid in Thailand and Malaysia
Progress on strategic agenda

KEY FINANCIALS

Revenues of NOK 30.5 bn (0%)
EBITDA of NOK 11.5 bn (+3%)
Net income of NOK 4.2 bn
Free cash flow of NOK 2.2 bn

STABLE ORGANIC REVENUES

Q1 2017

Negative currency effects of NOK 1.1 bn from strengthening of NOK against most functional currencies
1% organic revenue growth adjusted for one-time item in Broadcast in Q1 2016
Continued double-digit organic growth in emerging Asia
Lower handset sales in Thailand
Positive one time effect of NOK 0.2 bn in Broadcast in Q1 2016

FOCUS ON TURNING THE OPEX TREND IN 2017

3% yoy reported opex reduction vs stable organic development
Workforce reductions of around 600 FTEs during Q1

• Increased marcom efficiency and lower regulatory cost

12 307

• +1 pp EBIDTA margin uplift from improved gross margin

11 629 11 381

Q1 2017

• 5% organic EBITDA growth adjusted for one-time effects in Broadcast in Q1 2016

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

38% EBITDA MARGIN AND 3% ORGANIC EBITDA GROWTH

11 462

11 629 11 462 ²¹⁹ ¹⁷⁹ -191 -271 -104 Q1 16 Bangladesh Pakistan Norway Broadcast Others Q1 17

Solid EBITDA contribution from Emerging Asia
YoY development in Norway and Broadcast impacted by data rollover and one-time effects in Q1 2016

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

CAPEX OF NOK 4.5 BILLION AND CAPEX/SALES OF 15%

• Total capex coming down following high network investments in 2016

4G and fibre investments in Norway
Network densification programme in Thailand

NET INCOME OF NOK 4.2 BILLION

NOK m	Q1 2016	Q1 2017
Revenues	31 494	30 458
EBITDA before other items	11 629	11 462
Other items	-140	-178	• Workforce reductions (-213m)
EBITDA	11 490	11 283	• Gain on disposal of Startsiden
Depreciation and amortisation	-4 890	-5 109	(+65m)
Operating profit	6 599	6 175
Associated companies	4 175	1 117	• Reversal VEON impairment incl.
Net financials	-937	-879	share of Q4 net income
Taxes	-1 601	-1 670	• Loss on derivative (exchangeable
Profit from continuing operations	8 236	4 742	bond) of NOK 111m
Profit (loss) from discontinued operations	-3 149	120	• India classified as discontinued
Net income - non-controlling interests	830	694	operation. Including impairment of NOK 2.3 bn in Q1 2016
Net income - Telenor equity holders	4 256	4 168
Earnings per share (NOK)	2.83	2.78

FREE CASH FLOW OF NOK 2.2 BILLION

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

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

Net debt 31 Dec 2016	54.4
EBITDA	(11.3)
Income taxes paid	1.1
Net interest paid	0.5
Capex paid	5.3
Dividends paid	0.6
Currency effects	1.2
Changes in working capital and other	1.9
Net change during Q1 17	(0.7)
Net debt 31 Mar 2017	53.7

FURTHER SELL-DOWN IN VEON IN APRIL

70 million VEON ADSs sold on 7 April through a bookbuilding process
Net proceeds of UDS 259 million (around NOK 2.2 billion) to be included in Telenor's cash flow statement Q2 2017
Remaining 19.7% shareholding in VEON, including the VEON ADSs that are underlying Telenor's USD 1 billion, 3-year exchangeable bond
Following the transaction, VEON will no longer be treated as an associated company in Telenor's financial reporting
All previously recognized currency translation differences, amounting to an accounting loss of NOK 7.5 billion will be reclassified to the income statement. The effect will be recognized Q2 2017.

OUTLOOK FOR 2017 ADJUSTED TO REFLECT CURRENT GROUP STRUCTURE EXCL. INDIA

	2017	YTD	2016 ex. India
Organic revenue growth	1-2%	0.2%	0.8%
EBITDA margin	Around 37%	37.6%	36.7%
Capex/sales ratio	15-16%	14.9%	17.4%

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

Excluding India from the Group structure has approx. 1 pp positive effect on the Group's EBITDA margin. The impact on revenue growth and capex/sales is marginal.

HIGHLIGHTS FIRST QUARTER 2017

OPERATIONAL HIGHLIGHTS

Data monetization in Emerging Asia
Solid fibre momentum in Norway and Sweden
Strong postpaid, while working to stabilize prepaid in Thailand and Malaysia
Progress on strategic agenda

KEY FINANCIALS

Revenues of NOK 30.5 bn (0%)
EBITDA of NOK 11.5 bn (+3%)
Net income of NOK 4.2 bn
Free cash flow of NOK 2.2 bn

TELENOR GROUP – FIRST QUARTER APPENDIX

TELENOR GROUP

172 million mobile subscribers Revenues in 2016: NOK 125 bn (USD 15 bn) Market cap: NOK 213 bn (USD 25 bn)

GEOGRAPHIC SPLIT OF KEY FINANCIALS - FULL YEAR 2016

EBITDA

Scandinavia CEE Emerging Asia Mature Asia Other

EBITDA LESS CAPEX

Emerging Asia Mature Asia

Other

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)

High speed Low speed

ADDITIONAL INFORMATION – NORWAY AND SWEDEN

Sweden – fixed broadband subscribers ('000)

*Introduction of data rollover has a negative (non-cash) effect of NOK 9 on ARPU

**ARPU includes a positive one-time effect of SEK 7 related to an interconnect settlement

DENMARK