telenor group company presentation q4-2013
TRANSCRIPT
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THIS IS THE TELENOR GROUP
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More than 166 million consolidated mobile subscriptions, Q4 2013
• Mobile operations in 13 markets in Norway, Europe and Asia
• A voting stake of 43 per cent (economic stake 33 per cent) in VimpelCom Ltd. with 215 mill. mobile subscriptions in 17 markets
• Among the top performers on Dow Jones Sustainability Indexes
• Revenues 2013: NOK 105 bn
Telenor Group
Revenue distribution
23%
25%
44%
6%2%
NorwayEurope excl NorwayAsiaBroadcastOther
Norway
SwedenDenmarkBulgariaHungary
SerbiaMontenegro
BangladeshIndia
PakistanThailandMalaysia
3.2
2.41.8
3.93.23.1
0.374
47.128.0
33.427.9
10.9
Norway
Serbia
Montenegro
Bangladesh
India
Pakistan
Thailand
Malaysia
Sweden
Denmark
Hungary
Bulgaria Myanmar
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Strong regional footprint and positions in Europe and AsiaNorway
Sweden
Denmark
Hungary
Serbia
Montenegro
Bulgaria
#1 or #2 positions in most markets
Thailand
Malaysia
Bangladesh
Pakistan
India
Myanmar
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Subscription growth – consolidated companies
2007 2008 2009 2010 2011 2012 20130
20
40
60
80
100
120
140
160
180
52
7080
91
120
147
166
No. of mobile subscriptions world wide, in millions
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Strong revenue growth
2005 2006 2007 2008 2009 2010 2011 2012 20130
20
40
60
80
100
120
55
7586 88 90 94
99 102 105
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Group Executive Management (GEM)
Telenor GroupJon Fredrik Baksaas
Group FinanceRichard Aa
Group Communications Pål Kvalheim
Group LegalPål Wien Espen
NorwayBerit Svendsen
AsiaSigve Brekke
Group Industrial DevelopmentHilde Tonne
DigitalRolv-Erik Spilling
Associated members of the Group Executive Management.
EuropeKjell-Morten Johnsen
Corporate AdvisorJohan Rostoft
Group People DevelopmentJon Erik Haug
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THE HISTORY
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Learning the basics in NorwayBeliefs in the early 1990’s:• Growth outside Norway• Growth in mobile
1966
ManualMobile
Norway
1993
GSMNorway
1981
Automated MobileNorway
- 1970 1980 1990 2000 2010
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Early international expansionTaking positions in Europe and Asia
1994Russia
2000ThailandDenmark
1998Ukraine
1996Montenegro
AustriaBangladesh
1995Ireland
1993Hungary
1997Greece
Germany
- 1970 1980 1990 2000 2010
1999Malaysia
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2009India
From minority to majority positions
2007EXIT
Austria
2006Serbia
2005Pakistan
2005Sweden
2004EXIT
Greece
- 1970 1980 1990 2000
2000EXIT
IrelandGermany
2010
2010VimpelCom Ltd.
established
2013BulgariaMyanmar
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THE GEOGRAPHY
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Norway - the home market A leading position in mobile, Internet and TV services
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Norway Population (mill.) Company Ownership Subscriptions
(thousands)Market position
Mobile 5.0 Telenor 100% 3,216 1
Fixed telephony 5.0 Telenor 100% 800 1
Fixed Internet 5.0 Telenor 100% 864 1
TV 5.0 Telenor 100% 527 1
NorwayMobile, Fixed, Internet and TV
more than 3 million mobile subscriptions
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EuropeA long-term presence
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Europe* Mobile operations
more than 15 million subscribers
Country Population (mill.) Company Ownership Subscriptions
(thousands)Market position
Sweden 9.3 Telenor 100% 2,484 3
Denmark 5.5 Telenor 100% 1,828 2
Hungary 10 Telenor 100% 3,270 2
Serbia 7.5 Telenor 100% 3,171 1
Montenegro 0.6 Telenor 100% 374 1Bulgaria 7.1 Globul 100% 3,995 2
* without Norway
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Europe*Fixed Internet operations
Nearly 700 000 Subscriptions
Country Population (mill.) Company Ownership Subscriptions
(in thousands) Market position
Sweden 9.3 Telenor 100% 530 2Denmark 5.5 Telenor 100% 166 2
* without Norway
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Europe*Fixed telephony
More than 400 000 subscribers
Country Population (mill.) Company Ownership Subscriptions(in thousands)
Market position
Sweden 9.3 Telenor 100% 277 3
Denmark 5.5 Telenor 100% 111 2
* without Norway
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AsiaA strong regional player
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Asia Mobile operations
Country Population (mill.) Company Ownership Subs (mill.) Market position
Thailand 63 dtac 51,5%* 27,942 2
Malaysia 28 DiGi 49% 10,995 3
Bangladesh 162 Grameenphone 55.8% 47,110 1Pakistan 168 Telenor Pakistan 100% 33,405 2India 1 200 Uninor 67.25% 28,004 8
close to 150 million subscribers
* Economic stake
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30.2%
Percentage = Telenor ownership as of Q4 2013
Maritime Communications Partner AS
100%
AeroMobile Ltd
100%
100%
100%
IV 51% - VII 100%
100%
Other companiesTelenor has an ownership of more than
50% in 220 companies
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THE STRATEGY
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Telenor will remain a growth company and a retail operator
Telenor will continue to focus on growth and value creation.
Telenor will maintain being a retail operator, with the main share of revenues coming from communication and connectivity services.
We will provide new selected digital services to defend this position.
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2014-2016 Strategic ambitions
Internet for All Loved by Customers Efficient Operations
Passionate employees
Impact Societies
STR
ATEG
YEN
AB
LER
S
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Strong industry and company rationale for the 2014-2016 Strategic ambitions
Internet for All Loved by Customers Efficient Operations
STR
ATEG
Y
Passionate employees
Impact Societies
ENA
BLE
RS
Need for new skills and more customer orientation
Playing an increasingly important role in the societies
Hitting and monetizing the next growth curve
Competing for the same customers in saturating markets
Improving customer experience and providing affordable services
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INTERNET FOR ALL
There is great opportunity in providing people with affordable internet connectivity
Stimulate usage
Monetize
Enable use
2
3
1
In addition we will build positions in new service areas with attractive stand-alone revenues, like Financial Services, M2M, etc.
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INDUSTRIALISATION
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Quality and efficiency through new operating models
Deliver on customer needs
Leverage scale and volume
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We are on our way
Future Customer Service
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CORPORATERESPONSIBLITY
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“Creating Shared Value is integral to a company's profitability and competitive position”Michael E. Porter & Mark R. Kramer, Harvard Business Review, 2011
“The cell phone is the single most transformative technology for development”- Prof. Jeffrey Sachs, Columbia University
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Internet• A 10 pt increase in Internet penetration can create:
• 3-10% productivity increase• 1% increase in new business creation
Mobile access• Increased mobile penetration can contribute to
faster economic growth• Mobile phones can improve access to social
services – e.g. health and education
Financial Services• Two billion unbanked mobile users could be served
by mobile financial services (MFS)• MFS can help families overcome income
uncertainty and financial shocks
Over 2.5B adults (~72%) in
developing world are unbanked
Almost 2.5B people in developing world have mobile phones
Up to 2Bunbanked mobile
phone users
+10 pp
+1.2 pp
(K)
* Source: Telenor/Deloitte/Boston Consulting Group
Potential job creation from Internet adoption
Mobile health services• Can reduce maternal mortality by up to 30%• Doctors can treat twice as many rural patients per
doctor • Data collection costs can be reduced by 25%
-30%
Potential decrease in maternal mortality from mHealth adoption
As Is mHealth
Access to Communications
Enabling services
The communications opportunity
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Telenor Group CR Strategy
Extending the benefits of mobile telecommunications
Ensure responsible business practices across the organisation
Climatecontribute to reducing
climate change
Enablepositively impact underserved
groups through telecommunications
Safeprovide safe services and
safe user experiences
Environment SocialHuman rights
Shared valueTelenor & Society
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Telenor Group on Dow Jones Sustainability Indexes (DJSI) for the 11th year running
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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THE TELENOR WAY
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Throughout our Group we set a high ambition both for our business performance and the ethics by which we must operate.
To help us meet these ambitions we have defined a set of guidelines, principles and standards that together describe how we work.
We call this way of working “The Telenor Way”.
A shared approach to our work
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The Telenor Way
• Our Codes of Conduct set a high ethical standard across all companies
Strong on Ethics
• Our Vision, Mission and Values communicate the importance of customer focus
Customer centric
• The Leadership Expectations stress empowerment and passion as main influencing styles
Empowering leadership
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Empower societiesWe provide the power of digital communication, enabling everyone to improve their lives, build societies and secure a better future for all.Our vision to empower societies is a clear call to action. We bring vital infrastructure, new services and products that stimulate progress, change and improvement.
Our Vision is a picture of what we aim to achieve through our work. It sets the direction for what we do.
Our Vision
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We’re here to help our customersWe exist to help our customers get the full benefit of being connected. Our success is measured by how passionately they promote us.
Our Mission
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The Values are a guide for our everyday work.
They describe how we should serve our customers and work together as colleagues.
Make it easy
Keep promises
Be inspiring
Be respectful
The Company Values
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The Leadership Expectations describe the additional attitudes and behaviors we expect from our leaders when we work the Telenor Way.
Passion for Business
Change and continuous improvement
Excellent execution
Empower People
Integrity and Accountability
The Leadership Expectations
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Our business serves a bigger purpose
“Cell phones are one of the most effective advancements in history to lift people out of poverty.
PHONES MEAN FREEDOM”
Bill Clinton, Time Magazine 1 Oct 2012
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