Telenor ASA — Investor Presentation 2021

Feb 2, 2021

TELENOR GROUP Fourth quarter 2020

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 2020 compared to the same quarter of 2019, unless otherwise stated.

2020 – Highlights

Empowering societies; employees, customers and connectivity

Modernisation; provide ability to accelerate and innovate

Financial robustness confirmed; growth in EBITDA and strong cash flow

Robust performance in the Nordics

Norway S&T revenue growth (yoy change)

Timing of Asia recovery remains uncertain

• Thailand and Malaysia influenced by shortfall in tourist and migrant segment.
• Second Covid-19 wave increases the duration.
• Reduced economic activity starts to impact Asian consumer behaviour

Key developments Organic subs & traffic revenue growth (%)

Adapting to changing environments

Net adds turned positive in Q4, up 173k

5G roll-out started on the low band frequency

Domestic focus in Thailand Targeted efforts in Pakistan yield results

• Strong trend in customer intake
• Increasing data demand supporting revenue development

Improving trend in Myanmar

Subscription net adds in million

Strategic update

Strategic growth areas for 2021-2022

Data growth Emerging Asia

Value added services Norway

Increasing data demand driving growth in revenues

• B2B opportunities across Asian portfolio
• Increasing contribution from value added services
• Implementing Nordic Product House
• Initially through speed based bundling and 5G tariffs
• Targeted partnership to explore expansion of core market

Sensitivity: Internal

Accretive 5G opportunity

Modernisation – a foundation for growth

Enabling digital customer interaction

Digital recharge in Pakistan (transactions in million & share of total %)

• Sale in digital channels scaled up with discounts, partnerships and targeted sales

Executing on structural efficiencies

• NOK 1.5 bn in realised structural effects for 2020

Taking action to reduce emissions

• Data growth across Telenor of 42% in 2020 driving increased energy consumption
• Efforts already yielding results: Breaking the energy consumption curve, -1.5% in 2020
• Solar sites in Asia increased by 27% yoy, to 3,800 sites, contributing to ~35,000 tonnes CO2 p.a.

Carbon neutral in the Nordics

TELENOR GROUP Fourth quarter 2020

Tone Hegland Bachke, CFO

Highlights

¹² Q4 2020 *FX adjusted **FX adjusted & excluding DNA

Organic subscription and traffic revenues -2% in 2020

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

Solid opex reduction of 7% in 2020

Organic EBITDA growth of 2% in 2020

Steady execution on portfolio development

• properties in Norway
• Sale of Tapad

Continued focus on passive infrastructure in 2021

2020 2021

Establish infrastructure company in Norway Establish Nordic tower setup

• Strong first year of operation, hitting all performance targets
• External revenue up 10%
• EBITDA of MNOK 900

• Tenancy ratio of 2.2 for ground-based towers

• Establish tower companies for owned towers

• Report key financials within 2021
• 32k sites directly owned or through JV's
• Focus on operational advancement and strategic optionality

Net income to equity holders of NOK 17 billion in 2020

Earnings per share

2020 free cash flow before M&A of NOK 12.5 billion

Capex on par with last year Reduced ratio from improved EBITDA and NOK strengthening

¹⁹ Q4 2020

Proposing ordinary dividend of NOK 12.6 bn to shareholders

3% growth in ordinary dividend per share Solid shareholder remuneration

• Proposing a dividend of NOK 9.0 per share for FY 2020, in line with current dividend policy. Subject to approval by AGM.
• First tranche of NOK 5.0 in May, second tranche of NOK 4.0 in October
• Dividend yield of 6%, total payout of NOK 12.6 billion
• NOK 85 billion returned to shareholders last 5 years

Outlook 2021

Mid term ambitions maintained

Sensitivity: Internal

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 guidance as communicated at CMD 2020

TELENOR GROUP Fourth quarter 2020

Appendix

Geographic split of key financials 2020

Norway

Organic growth 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

²⁴ Q4 2020

Sweden

Organic growth assuming fixed currency, adjusted for acquisitions and Organic growth 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

672 685 702 712 713 147 128 110 93 77 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 High-speed Low-speed 826 819 814 812 805

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

High-speed Low-speed

Denmark

Organic growth 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 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

Organic growth

Malaysia (Digi)

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

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

1 784 1 723 1 786 1 735 1 694 ^{451 314 412 279} 600 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 EBITDA CAPEX -5%

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

Organic growth

Pakistan

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

1 239 1 294 1 214 1 130 1 184 48% 55% 56% 52% 53% 0% Mobile subscribers ('000) Subs and traffic revenues (NOK m) and EBITDA margin

Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

859 825 EBITDA CAPEX

Organic growth

Myanmar

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

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

854 ^{185 87 128 135 191} Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 -1%

Organic EBITDA growth

Organic EBITDA growth (Q4 20 vs Q4 19) EBITDA margin (Q4 20)

Q4 growth in subscription and traffic revenues and EBITDA

		Subscription & traffic revenues		EBITDA
	Reported	Organic	Reported	Organic
Norway	1.8%	1.8%	0.9%	3.0%*
Sweden	3.5%	-6.5%	-2.0%	-11.5%
Denmark	5.4%	-1.4%	16.6%	9.3%
Finland	11.4%	2.3%	23.1%	13.1%
Thailand	-11.2%	-9.0%	-12.1%	-9.2%
Malaysia	-4.0%	-4.4%	-5.1%	-5.3%
Bangladesh	-4.0%	-2.8%	-5.0%	-3.9%
Pakistan	-4.4%	-0.3%	8.1%	12.8%
Myanmar	1.1%	-7.1%	7.6%	-0.7%
Telenor Group	-1.9%	-3.4%	0.9%	-0.2%

Net income of NOK 7.7 billion for Q4 2020

NOK m	2019	Q4 2019	Q4 2020
Revenues	113,666	31,737	30,949
EBITDA before other items	50,735	13,397	13,512
Other items	(459)	(215)	2,974
EBITDA	50,276	13,182	16,486
Depreciation & amortisation	(24,574)	(6,899)	(7,194)
Operating profit	25,702	6,283	9,292
Associated companies	(849)	(588)	(55)
Net financials	(3,884)	(73)	923
Taxes	(9,033)	(1,351)	(1,691)
Profit (loss) from discontinued operations	(742)	(1,562)	44
Minorities	3,421	935	824
Net income - Telenor equity holders	7,773	1,774	7,689
Earnings per share (NOK)	5.40	1.25	5.49

Debt maturity profile (NOK bn)

Net debt* in partly-owned subsidiaries:

NOK bn	Q4 2020	Q4 2019
Digi	9.1	8.1
dtac	19.6	19.2
Grameenphone	1.4	0.3

7.9

Net debt reconciliation

NOK bn	Q4 2020	Q4 2019
Non–current interest bearing liabilities	98.6	84.0
Non-current lease liabilities	35.6	32.0
Current interest bearing liabilities	7.3	14.8
Current lease liabilities	9.3	9.3
Cash and cash equivalents	(20.6)	(13.9)
Fair value hedge instruments	(2.4)	(2.0)
Financial instruments	(0.4)	(0.5)
Non-current Licence obligations	(13.4)	(12.3)
Current Licence obligations	(3.6)	(4.4)
Net interest bearing debt excl. licence obligations	110.4	107.0

Balance sheet and key ratios

	31 Dec 2020	31 Dec 2019
Total assets	256.4	248.9
Equity attributable to Telenor ASA shareholders	38.3	38.1
Gross debt*	150.8	140.0
Net debt	110.4	107.0
Net debt/EBITDA**	2.0	2.0
Return on capital employed***	13.2%	11.6%

*) 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

*) ROCE is calculated excluding DNA and discontinued operations (Canal Digital)