Telenor ASA — Investor Presentation 2021

Jul 20, 2021

TELENOR GROUP

Second quarter 2021

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 2021" 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 2021 compared to the same quarter of 2020, unless otherwise stated.

Highlights Second quarter 2021

2% organic S&T revenue growth

4% organic EBITDA growth

2 million new subscribers

3

Exit Myanmar

Norway: EBITDA growth whilst copper decommissioning at its peak

• Copper decommissioning at peak impact (CAGR -25 %)

• Fixed future revenues CAGR +39 %

• 1.5 % Mobile S&T revenue growth driven by 4 % ARPU growth

• Fibre (BB & TV) and FWA growth of 28 %

Despite revenue drag, Norway deliver continued strong modernisation efforts and 2 % EBITDA growth

Strong performance in Finland and Denmark, stabilisation in Sweden

• Continued upselling driving +2% mobile S&T revenue growth

• Fixed S&T revenues +8% from a growing broadband subs base

• 18% EBITDA growth from strong market performance and opex efficiency

• Nordic VAS expansion started with launch of NetSikker (security product)

• Stabilised S&T revenue trend

• Fourth consecutive quarter with positive net ads

S&T revenue growth in Asia despite pandemic impact

• Strong revenue development in Pakistan and Bangladesh from data and subscription growth
• Topline stabilisation QoQ in Thailand and Malaysia supported by targeted market initiatives and government stimuli packages
• Continued uncertainty related to duration from third Covid-19 wave

Key developments Organic subs & traffic revenue growth (%)

Myanmar exit: A decision founded on our commitment to responsible business

• Telenor has built up a profitable, state of the art telecom operator providing modern services since 2014

• Announced an agreement to sell Telenor Myanmar on 8 July*
• Deteriorating situation, dilemmas related to people security and regulatory environment

• Decision founded by our responsible business practices

Asia strategy

We believe in

Data growth

Digitalisation

B2B growth

Beyond Connectivity

Our actions

Hands on execution

Strengthen position in present markets

Leading player in Malaysia

Further explore structural options for the Asian portfolio

TELENOR GROUP

Second quarter 2021

Tone Hegland Bachke, CFO

Highlights Second quarter 2021

Organic subscription and traffic revenues +2% in Q2

Organic growth rate. Subscription & traffic revenues defined as revenues from mobile subscription & traffic, fixed internet & TV, retail telephony and data services

Organic subscription and traffic revenues Strong performance in Pakistan and Bangladesh

11 Q2 2021

Opex reduction of 1% in Q2

* FX adjusted

Organic EBITDA growth of 4% in Q2

Percentage points contribution to growth

Net income to equity holders of NOK 2.2 billion in Q2

Net income to equity holders of Telenor

Earnings per share

14

Free cash flow of NOK 2 billion in Q2

NOK billion Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 3.7 3.5 5.6 3.7 4.4

• Capex driven by:
• 5G in Norway and Finland
• Fibre in Norway
• Capacity/coverage expansion in Thailand

Reduced FCF from lower EBITDA, higher taxes paid and negative working capital development

Net debt / EBITDA

Increased ratio from deconsolidation of Myanmar and dividend payment

15 Q2 2021

Telenor Tower Holding to develop one of the largest tower portfolios in the Nordics

• Telenor has an industrial perspective on towers and infrastructure

• Targets operational synergies
• TowerCo operational in Norway Q120, Sweden Q221 and Finland Q321
• Separate financial reporting for Towers from 2022

• Norway: Largest asset owner with 15k sites

• Sweden: Owned through Tower Sweden, 3GIS JV and N4M JV with 7.5k sites

• Denmark: Large tower portfolio through Telia JV with 3.6k sites
• Finland: Sites being transferred to DNA Towers with 3.8k sites

Outlook 2021

	Current	YTD	Previous
Organic subscription & traffic revenues	0-1%	-0.4%	Around 2020 level
Organic EBITDA	0-2%	1.4%	Around 2020 level
Capex/sales	15-16%	14.7%	15-16%
	Mid term ambitions maintained

¹⁷ Q2 2021 Subscription & traffic revenues from mobile, fixed and TV services. Org. revenue growth in fixed currency, adj. for acquisitions and disposals. EBITDA before other items. Capex excl. licences. Mid term ambitions as communicated at CMD 2020

TELENOR GROUP

Second quarter 2021

Appendix

Geographic split of key financials YTD Q2 2021

EBITDA before other items. Capex excl. licences.

Norway

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

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

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

Organic growth YoY

Sweden

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

Mobile subscribers ('000) Subs. and traffic revenues (NOK m) and EBITDA margin

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

Organic growth YoY

Denmark

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

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

Organic growth YoY

22 Q2 2021 Finland

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

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

Organic growth YoY

Additional information – Nordics

FWA Fibre HFC DSL

Q2 2021

Thailand (dtac)

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

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

Organic growth YoY

Malaysia (Digi)

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

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

26 Q2 2021

Bangladesh (Grameenphone)

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

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

Organic growth YoY

Pakistan

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

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

Organic growth YoY

Q2 growth in subscription and traffic revenues and EBITDA

Country	Subscription & traffic revenues		EBITDA
	Reported	Organic	Reported	Organic
Norway	0.0%	0.0%	1.6%	1.6%
Sweden	-3.7%	0.1%	-1.5%	2.5%
Denmark	5.3%	3.2%	7.8%	17.5%
Finland	5.2%	3.5%	14.3%	12.5%
Thailand	-16.7%	-2.2%	-15.0%	-0.5%
Malaysia	-10.9%	1.8%	-15.6%	-3.7%
Bangladesh	-9.5%	8.5%	-10.3%	7.5%
Pakistan	-1.9%	10.7%	-2.4%	10.3%
Telenor Group	-7.6%	2.1%	-6.2%	3.6%

Net income of NOK 2.2 billion for Q2 2021

NOK m	2020	Q2 2020	Q2 2021
Revenues	115 839	28 978	27 158
EBITDA before other items	52 349	13 175	12 353
Other items	1 946	(1 340)	(254)
EBITDA	54 293	11 835	12 098
Depreciation & amortisation	(26 298)	(7 160)	(6 422)
Operating profit	27 984	6 851	5 671
Associated companies	(361)	(95)	(166)
Net financials	(3 331)	421	(1 124)
Taxes	(6 419)	(1 992)	(1 471)
Profit (loss) from discontinued operations	3 186	2 031	81
Minorities	3 718	920	803
Net income - Telenor equity holders	17 341	4 428	2 188
Earnings per share (NOK)	12.4	3.1	1.6

Debt maturity profile (NOK bn)

Net debt* in partly-owned subsidiaries:

NOK bn	Q2 2021	Q2 2020
Digi	8.2	8.4
dtac	19.2	20.4
Grameenphone	2.3	1.1

2.8 5.1 5.1 10.6 6.6 4.4 1.4 3.1 3.8 4.7 2021 2022 2023 2024 2025 2026->

Subsidiaries Telenor ASA

7.4

45.7

31 *Net debt excl. licences Q2 2021

Net debt reconciliation

NOK bn	Q2 2021	Q2 2020	2020
Non–current interest-bearing liabilities	88.9	102.5	98.6
Non-current lease liabilities	30.8	30.0	31.4
Current interest-bearing liabilities	13.7	12.0	7.3
Current lease liabilities	8.4	8.7	7.9
Cash and cash equivalents	(19.7)	(15.6)	(19.8)
Fair value hedge instruments	(1.4)	(2.6)	(2.4)
Financial instruments	(0.3)	(0.3)	(0.4)
Non-current Licence obligations	(13.6)	(13.4)	(13.3)
Current Licence obligations	(3.6)	(4.5)	(3.6)
Net interest bearing debt excl. licence obligations	103.1	121.9	110.4

Balance sheet and key ratios

	30 Jun 2021	31 Dec 2020	30 Jun 2020
Total assets	235.9	256.5	264.4
Equity attributable to Telenor ASA shareholders	23.6	38.3	27.8
Gross debt*	141.8	150.8	159.6
Net debt	103.1	110.4	121.9
Net debt/EBITDA**	2.0	2.0	2.2
Return on capital employed***	13%	13%	12%

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

**) 12 months rolling EBITDA. For periods before consolidation of DNA, pro forma figures have been included.

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

Return on capital employed

Return on capital employed*

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

**) 2012-2019 numbers including Myanmar