Telenor ASA — Investor Presentation 2021

May 4, 2021

TELENOR GROUP First quarter 2021

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 2021" contains forwardlooking 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 – First quarter 2021

Strong mobile subscriber growth in Asia

Solid EBITDA growth in Finland and Denmark

Strong opex and cash flow development

Unprecedented situation in Myanmar

Solid EBITDA performance in Finland and Denmark

EBITDA growth driven by continuous upselling to customers

Finland EBITDA growth* Denmark EBITDA growth Sweden EBITDA growth -2.0% -8.9% -0.5% 9.3% 14.0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Strong execution on efficiency initiatives and market activities is yielding results

• Solid momentum on efficiency initiatives resulting in a -7 % YoY opex reduction
• EBITDA decline from continued S&T pressure (-6% YoY)

*Adjusted for reclassification of lease contracts from September 2020 impacting opex approx. EUR 1.8 million per month **Underlying EBITDA boi adjusted for CopySwede settlement of SEK 148m

Norway: Continued VAS growth and modernisation efficiency

Norway S&T revenue growth Continued service growth EBITDA (NOK m)

• Fibre and FWA not fully offsetting fixed legacy decline

• Continued growth in speed based products and adjacent mobile services: Domestic growth +2 % YoY

• Not included in S&T revenue VAS included in S&T revenue

• Continued strong growth in value added services
• Mobile Domestic ARPU +4 % YoY

Opex reductions primarily driven by organisational modernisation

Timing of Asian recovery remains uncertain

• Myanmar coup significantly affecting subscription and traffic revenues
• Excluding Myanmar, Asian markets show improving trend throughout the quarter
• Continued uncertainty related to duration from third Covid-19 wave
• Modernisation continues to positively impact operational performance in Asia

Key developments Organic subs & traffic revenue growth (%)

Strategic update

Strengthening our portfolio in Asia

Combining a leading local position with global synergies

Scale to invest in infrastructure

A leading network position

Sourcing

Global expertise and know how

Benchmarking

Shared experimentation

Positioning long term value creation

• Underlying drivers in Asia point to consumption growth – need scale to capture value
• 5G, IoT, AI and cloud change our business environment create opportunities

Scale will matter even more

Concerning development in Myanmar

• Our priorities: Safety of employees, service availability for our customers and transparency in our communications
• Prolonged mobile internet restrictions have severely impacted our customers
• Telenor calls on the authorities to immediately reinstate unimpeded communications and respect the rights to freedom of expression and human rights
• Value of Telenor Myanmar fully impaired

TELENOR GROUP First quarter 2021

Tone Hegland Bachke, CFO

Highlights – First quarter 2021

Organic subscription and traffic revenues -4% in Q1

& traffic, fixed internet & TV, retail telephony and data services

Continued strong opex reduction

*Underlying development based on 2020 proforma figures (due to Infra setup). **99m in deconsolidation effects related to disposal of Tapad (Nov 20), Valyou (Oct 20)

Organic EBITDA decline of 2% in Q1

Net income to equity holders of NOK -3.9 billion in Q1

Earnings per share

¹⁵ Q1 2021 *Remaining consisting of depreciations, share of net income from associated companies and JV's, profit (loss) from discontinued operations less net income attributable to non-controlling interests

Free cash flow before M&A of NOK 3 billion in Q1

YoY Capex increase driven by dtac 700 Mhz roll out and higher 4G roll out in Bangladesh

Free cash flow to equity holders of Telenor ASA

Reduced ratio from the appreciation of NOK

Worsening business environment in Myanmar

• Authorities ordered nationwide shutdown of mobile data network from 15 March
• Resulted in daily S&T revenues being approximately halved

Impact on operations

People safety

• Duration and scope of network closure
• Highly uncertain outlook going forward

Impairment of Telenor Myanmar

• Worsening economic and business environment
• Deteriorating security and human rights situation
• Limited prospects of improvement
• Impairment of total NOK 6.5 billion
• After the impairment, net assets in Telenor Myanmar is approximately zero

Outlook 2021

Mid term ambitions maintained

¹⁸ Q1 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. Mid term ambitions as communicated at CMD 2020

TELENOR GROUP First quarter 2021

Appendix

Geographic split of key financials YTD Q1 2021

EBITDA before other items. Capex excl. licences.

Norway

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

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

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

Additional information – Norway and Sweden

685 702 712 713 716 128 110 93 77 64 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 High-speed Low-speed 814 812 805 790 780

Norway – fixed broadband subscribers ('000) Sweden – fixed broadband subscribers ('000)

High-speed Low-speed

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

Finland

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

Thailand (dtac)

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

Malaysia (Digi)

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

Bangladesh (Grameenphone)

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

Pakistan

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

Myanmar

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 EBITDA growth

Organic EBITDA growth (Q1 21 vs Q1 20) EBITDA margin (Q1 21)

Q1 growth in subscription and traffic revenues and EBITDA

		Subscription & traffic revenues		EBITDA
	Reported	Organic	Reported	Organic
Norway	-0.9%	-0.9%	0.2%	0.2%
Sweden	-2.3%	-5.6%	-6.1%	-9.2%
Denmark	0.0%	1.6%	12.3%	14.0%
Finland	0.8%	2.8%	14.3%	16.6%
Thailand	-14.1%	-7.2%	-9.8%	-2.5%
Malaysia	-10.6%	-3.2%	-9.9%	-2.4%
Bangladesh	-13.3%	-3.2%	-14.5%	-4.5%
Pakistan	-11.5%	0.4%	-13.8%	-2.3%
Myanmar	-27.2%	-19.2%	-28.4%	-20.6%
Telenor Group	-9.0%	-4.0%	-7.7%	-2.2%

Net income of negative NOK 3.9 billion for Q1 2021

NOK m	2020	Q1 2020	Q1 2021
Revenues	122 811	30 953	28 873
EBITDA before other items	56 520	14 106	13 015
Other items	2 045	(310)	(151)
EBITDA	58 565	13 796	12 863
Depreciation & amortisation	(29 065)	(7 160)	(13 495)
Operating profit	29 500	6 636	(632)
Associated companies	(361)	(109)	(53)
Net financials	(3 498)	(4 256)	(671)
Taxes	(6 577)	(718)	(1 634)
Profit (loss) from discontinued operations	1 995	195	(144)
Minorities	3 718	1 051	756
Net income - Telenor equity holders	17 341	698	(3 889)
Earnings per share (NOK)	12.3	0.5	(2.8)

Debt maturity profile (NOK bn)

Net debt* in partly-owned subsidiaries:

NOK bn	Q1 2021	Q1 2020
Digi	8.6	9.2
dtac	19.0	20.5
Grameenphone	0.8	1.1

7.5

Subsidiaries Telenor ASA

³⁴ Q1 2021 *Net debt excl. licences

Net debt reconciliation

NOK bn	Q1 2021	Q1 2020	2020
Non–current interest-bearing liabilities	93.3	107.0	98.6
Non-current lease liabilities	30.2	35.8	35.6
Current interest-bearing liabilities	6.0	8.4	7.3
Current lease liabilities	9.5	10.3	9.3
Cash and cash equivalents	(22.8)	(18.1)	(20.6)
Fair value hedge instruments	(1.8)	(2.7)	(2.4)
Financial instruments	(0.3)	(0.3)	(0.4)
Non-current Licence obligations	(12.8)	(13.7)	(13.4)
Current Licence obligations	(3.4)	(4.8)	(3.6)
Net interest bearing debt excl. licence obligations	97.9	121.9	110.4

Balance sheet and key ratios

	31 Mar 2021	31 Dec 2020	31 Mar 2020
Total assets	237.8	256.5	279.6
Equity attributable to Telenor ASA shareholders	34.1	38.3	41.6
Gross debt*	139.1	150.8	161.5
Net debt	97.9	110.4	121.9
Net debt/EBITDA**	1.8	2.0	2.1
Return on capital employed***	8%	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

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