All-Time High EBITDA As Transformation Gains Traction

All-time high EBITDA as transformation gains traction

Once again, Telenor Group delivered a strong set of results, with an organic mobile subscription and traffic revenue growth of 3% and continued EBITDA expansion in the third quarter. The company reduced costs by NOK 0.4 billion, achieved a record high EBITDA margin of 42% and reported a strong cash flow. Net income was NOK 5.8 billion.

“We delivered a strong set of results. On an organic basis, growth in core revenues, together with continued progress on our efficiency agenda, generated a 9% increase in EBITDA. Execution of our business strategy is gaining traction. So far this year, our team has achieved cost savings of 1 billion kroner, implying that our target for 2017 has already been met and further efficiency gains should be expected going forward. The solid results, together with the proceeds from the completion of the VEON sell-down, give us a free cash flow of 9.4 billion kroner for the quarter. Our next steps are to continue transforming our business by focusing on digitalising the core, improving efficiency across the company and nurturing growth, where we see reassuring trends and potential. In order to further improve our services and remain competitive, we aim to leverage new technologies and make responsible use of our data for the benefit of our customers. We will maintain our focus on digitalising our networks and customer interactions, which are two aspects that we believe are critical to achieving our ambitions and ensuring that our services are value adding for our customers,’’ said Sigve Brekke, Chief Executive Officer of Telenor Group.

Key Figures

NOK (in millions) Q3 2017 Q3 2016 First 9 months First 9 months Year 2016 2017 2016 Revenues 30 735 31 249 92 663 93 669 125 395 Organic revenue 1.0 1.3 1.1 0.8 0.8 growth (%) EBITDA before 12 976 12 307 37 157 35 317 45 966 other income and other expenses EBITDA before 42.2 39.4 40.1 37.7 36.7 other income and other expen ses/Revenues (%) Net income 5 756 (4 821) 9 758 546 2 832 attributable to equity holders of Telenor ASA Capex excl. 12.4 15.6 13.8 16.1 17.4 licences and spe ctrum/Revenues

Telenor Group is one of the world's major mobile operators. We keep our customers connected in our markets across Scandinavia and Asia. Our more than 30,000 employees are committed to responsible business conduct and being our customers' favourite partner in digital life. Connecting the world has been Telenor's domain for more than 160 years, and we are driven by a singular vision: to empower societies. NOK (in millions) Q3 2017 Q3 2016 First 9 months First 9 months Year 2016 2017 2016 (%) Capex/Revenues 16.1 16.0 16.3 19.8 20.2 (%) Free cash flow 9 426 9 064 21 539 8 792 10 300 Mobile 1.9 (0.7) 176 166 170 subscriptions - Change in quarter/Total (mill.) With effect from the first quarter 2017, Telenor India is treated as an asset held for sale and discontinued operations in Telenor’s financial reporting. Third-quarter 2017 summary

Total organic revenues increased by 1%. Organic mobile subscription & traffic revenues increased by 3%. Reported EBITDA before other items was NOK 13 billion, corresponding to a record high EBITDA margin of 42%, an increase of 3 percentage points from last year. Net income attributable to equity holders of Telenor ASA was NOK 5.8 billion. Capex excluding spectrum licences was NOK 3.8 billion, resulting in a capex to sales ratio of 12%. Free cash flow for the quarter was NOK 9.4 billion.

Outlook

Based on the performance in the first nine months of 2017 and our current expectations for the remainder of the year, we keep the financial guidance for 2017. We expect organic revenue growth in the range of 1% to 2%, EBITDA margin of 38% to 39% and capex to sales ratio excluding spectrum licences of 15% to 16%.

Media Contact Meera Bhatia, mobile (+47) 46 84 49 59, [email protected] Investor Relations Contacts Marianne Moe, mobile: (+47) 91 61 76 31, [email protected] Helge Øien, mobile: (+47) 91 31 92 42, [email protected] Press and analyst presentation In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 25 October at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve Brekke and CFO Jørgen C. Arentz Rostrup will present the results. The presentation will be held in English. You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling +47 2350 0296 (local Norway) +46 (0) 8 5664 2793 (local Sweden) +44 (0) 330 336 9411 (local UK) +1 719 325 2202 (local US) Please state the confirmation code: 5627402. Material The quarterly report and the presentation are available here. https://www.telenor.com/investors/financial-calendar/2017/telenor-groups-results-for-the-3rd- quarter-2017/