Transcript Presentation by Kjell-Morten Johnsen

Telenor in Europe
Kjell-Morten Johnsen, Head of Telenor Europe
28 May 2013
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. 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.
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Telenor Group
148 million consolidated mobile subscribers
Revenues in 2012 of NOK 102 bn (USD 18 bn)
Market cap of NOK 200 bn (USD 34 bn)
Revenues 2012
8%
44%
Operating cash flow 2012
1%
33%
25%
46%
23%
20%
VimpelCom Ltd.
Norway
Asia
Europe
Other
Norway
Asia
Europe
Other
Telenor Group holds 33.0% economic and 43.0%
voting stake in VimpelCom Ltd.
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Telenor Group in Europe
Telenor - Sweden
Telenor - Norway
50% revenue market share
#1 position in the market
3.2 m customers
21% revenue market share
#3 position in the market
2.4 m customers
Telenor - Denmark
25% revenue market share
#2 position in the market
2 m customers
Vimpelcom
43 % voting
stake (33%
economic stake)
215 m mobile
subscriptions in
17 markets
Telenor - Hungary
31% revenue market share
#2 position in the market
3.3 m customers
Telenor - Serbia
43% revenue market share
#1 position in the market
3.2 m customers
Telenor - Montenegro
44% revenue market share
#1 position in the market
0.4 m customers
Revenue market shares and subsciber numbers referring to mobile operations
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Telenor in Europe – Financial development
Sweden - Revenues (NOK m) and EBITDA %
2 844
2 545
2 599
2 716
2 748
2 539
Denmark - Revenues (NOKm) and EBITDA %
1 713
1 501
1 429
1 330
1 468
1 192
-4%
-19%
19%
Q4 11
25%
24%
Q1 12
Q2 12
30%
Q3 12
23%
Q4 12
28%
Q1 13
Hungary - Revenues (NOK m) and EBITDA %
1 064
964
965
1 060
22%
20%
20%
23%
Q4 11
Q1 12
Q2 12
Q3 12
21%
Q4 12
Q1 13
Serbia - Revenues (NOK m) and EBITDA %
736
1 100
19%
930
656
674
720
686
+8%
-2%
36%
35%
28%
Q4 11
Q1 12
Q2 12
30%
Q3 12
28%
Q4 12
Organic growth assuming fixed currency, adjusted for
acquisitions and disposals.
EBITDA and EBITDA margin before other items
38%
Q1 13
669
38%
39%
39%
39%
40%
40%
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Organic revenue YoY
5
Executing on Telenor Group strategy
Preferred by customers
Cost efficient operator
Monetise on mobile data
Continuous improvement
Take positions in new services
New operating models
6
Initiatives in the region
7
●
Leverage competence and scale
across the region
●
Common management of Telenor
Montenegro and Telenor Serbia
●
Common shared service centre
for network and IT services
●
Radical simplification in Denmark
●
Towards data centric pricing
●
Network sharing
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Acquisition of Globul in Bulgaria
Globul financials
●
●
●
●
●
Agreement with OTE to acquire Globul, the
second largest mobile operator in Bulgaria
EBITDA
margin
40%
36%
(EURm)
422
413
Acquisition price EUR 717 million on a
debt and cash free basis
Opportunity to leverage Telenor’s
operational expertise in the CEE region
38%
378
168
158
2010
2011
Revenue
Consistent with value-driven and
disciplined Group M&A strategy
135
2012
EBITDA
Telenor Hungary
Closing of transaction pending regulatory
approval
Telenor Serbia
Telenor
Montenegro
8
8
33% economic stake in VimpelCom
• Market value of Telenor stake currently
at USD 6 bn
VimpelCom Ltd reported net income (USD m)
• A very profitable investment for Telenor
801
• Acc. investments: NOK 14.9 bn
• Dividends received: NOK 17.6 bn
• Ownership structure clarified
538
488
408
318
• Supporting VimpelCom’s Value Agenda
Q1 12
Q2 12
Q3 12
Q4 12
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Q1 13
Thank you
Telenor in Europe
Country
Year of
investment
Market
position
Sweden
2005
3
Denmark
2000
2
Hungary
1993
2
Serbia
2006
1
Montenegro
1996
1
1855
1
Norway
Revenue market
share (%)
21
25
31
43
44
50
Subs
(million)
Revenues
2012 (NOK bn)
EBITDA margin
2012 (%)
OCF margin
2012 (%)
2.4
10.6
25.3
14.4
2.0
5.7
20.2
10.2
3.3
4.1
32.2
24.9
3.2
2.7
39.5
31.4
0.4
0.6
42.0
34.1
3.2
25.5
42.4
26.3
Market position and subscribers at the end of Q4 2012.
OCF = Operating cash flow (EBITDA before other items, less capex excl licence fees)
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