Modernising Norway

Petter-Børre Furberg,

CEO Telenor Norway

Camilla Amundsen,

CMO Telenor Norway

Telenor Norway – a growth company

• Build the best network

• ARPU growth from service position

• Revenue renewal Fiber and FWA

• Modernize Networks & IT

• Digitalise operation and customer touchpoints

• Organisation and way of work

• Increased focus on coverage

• Secure and robust network and services

RESPONSIBLE

BUSINESS

GROWTH MODERNISATION

2

However, the total legacy fixed market has declined rapidly

• Falling xDSL and POTS base

• Gradual cannibalization from HFC to fiber

due to strong fiber preference

• Significant fiber ramp-up driven by SDU

segment

Total Norwegian Telecom market – fixed subscribers (‘000)

710 653 595 524 450

623 639628

615603

622 734 863 990 1.130

452.130

44

2.0002.070

43 4543

2.175 2.226

Radio/FWA

Fiber

xDSL

HFC

620527

446365

295

H1 2015 H1 2019H1 2018H1 2016 H1 2017

POTS

-11%

CAGR

-17%

CAGR

Source: nKOM H1 20193

Fixed market 2019 dominated by high-speed broadband, more consumers on fiber infrastructure than xDSL

• Continued modernization of fixed broadband base

• Strong development through villa land-grab

strategy

• Increased fiber market share from 18 % in 2015

to 23 % EoY 2019

Fiber market share 2019 of23 % for FTTH and 24 % for FTTB

266293

261

18

xDSL

Fiber

HFC

FWA

Telenor subscribers (B2B and B2C)

Total: 833

Source: Telenor estimates EoY2019

420490

Total: ~910

Telenor fiber homes passed (B2C)

Fiber homes passed

HFC homes passed

4

Accelerated Migration: Shifting customers to new technologies by end of 2023

5

60 %1,2

bNOK14 years

phase out

Cost Operating modelCustomers

Significantly reduce cost base associated with

copper network

Simplify our operating model and value

chains

Growth through shifting customers to future-proof

solutions

1. Pre IFRS16 number

A year with significant learnings; Customers want to replace old technology with new!

6

% Fiber/HFC and FWA hit-rate 2019

30

20

0

10

50

40

60

5 6 7 8 9 10 11 1231 2 4

%

Months

Fiber/HFC

FWA

78 %Satisfied with

FWA product

18 k FWA

70 %Satisfied with

the FWA

process

Focus going forward

Network roll-out to support migration

Continue fiber and FWA roll-out

4G capacity and coverage

5G roll-out

More efficient operations

Take out cost effects

Services that meet customer requirements

New FWA consumer portfolio

FWA for Business and Wholesale

TV over FWA

Simplification

7

Estimated migration effects of the decommission base

8

• Ambition to retain ~60 % of customers

• Total copper addressable base of ~1.2bn

– Post IFRS16 ~1bn

• Migration cost put pressure on EBITDA,

stabilizing long term

Revenue development - NOKbn

2021202020192018 2022 2023 2024

Copper Fixed future

Migration

Revenue

2019 20242018 20222020 2021 2023

Source: Internal estimates, post IFRS15 & IFRS16 numbers

Copper

Fixed future

Cost impact - NOKbn

EBITDA development - NOKbn

20212018 2019 202420222020 2023

EBITDA

End game - accelerated migration

9

• Approximately 260’ xDSL customers left EoY 19

• Ambition to shift 60 % of the xDSL customers to

future proof Telenor accesses

• TnN will end up with a small decline in fixed

market share post copper decommission

• Potential upside from possible future open

access network

Renewing our TV experience – aggregating in a streaming world

1. Share of households with at least one SVOD TV subscription2. Average daily minutes of linear TV viewing

10

157

13

8 %

141110 1512 1816 17

45 %

98

OTT TV penetration1 Linear viewing (m/day)2

• Fragmentation of content consumption

• Administration, search and discovery

emerging as new customer problems

Offering a one-stop-shop for entertainment

• From channels to content focus

• New improved user interface - recommendations

• Increased flexibility with a points based system

Customer behaviour and needs are changing

A renewed T-We experience

11

• We see 5G as an evolution

rather than a revolution

• First phase driven by capacity

need and slicing opportunity

on 5G

• 11 pilots and use cases

• Ramp-up on 5G FWA in 2020

Value-optimized 5G roll out

First years

From 4G to 5G driven by mobile and FWA capacity need and slicing opportunity

• Telenor Norway will become

the incumbent without legacy

• Customer base on fiber, FWA

and mobile, efficient support

systems and a solid ground

for 5G services

• Leeway for efficiency through

simplification of IT stack and

organization

What are we building for the future?