1 a History of Growth
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Group Overview Jon Fredrik Baksaas – President and CEO A history of growth Learning the basics in Norway Selective international Consolidating mobile expansion 2000 positions • 1970’s: Pioneer in satellite EXIT 2004 communication Ireland EXIT • 1980’s: Pioneer in mobile (NMT and Germany Greece GSM) 1993 1995 2007 • 1990’s: Digitalisation of the fixed Hungary Ireland 1997 2005 EXIT Montenegro Greece Sweden Austria network -1970 1980 1990 2000 2007 2008 1966 1981 1993 1994 1998 2005 Manual Automated GSM Russia Ukraine Pakistan Mobile Mobile Norway Germany Norway Norway 1996 2000 2006 Austria Thailand Serbia Bangladesh Malaysia Denmark 1 Strong regional positions Nordic • Advanced markets • Focus on cost efficiency • NOK 10 bn cash flow target Asia • Continued strong subs growth • No 2 in 3 years in CEE Pakistan • Strong Kyivstar • Largest global performance operator • Subs growth slowing down • Entry into mobile broadband One of the world's largest operators China Mobile Vodafone Singtel Telefonica 143 150 China Unicom 115 America Movil 83 53 Telenor 31 22 T-Mobile Orange 2002 2003 2004 2005 2006 2007May08 TeliaSonera 0 50 100 150 200 250 300 350 400 mill Source: Wireless Intelligence, Q4 2007. Operators are only included if ownership is 20% or more 2 A typical day for Telenor 300 000 000 50 000 25 calls new customers new base stations Solid financial performance Annual growth rate since IPO +37% +16% +46% 143 105 10.72 37 16 0.75 2000 2007 2000 2007 2000 2007 Mobile subscribers (mill) Revenues (NOK mill) EPS (NOK) 3 Our priorities • Deliver growth above peers • Execute on operational excellence • Brand preference exceeding market share • Recognise our responsibilities • Nurture a unique performance culture Continued growth from increased usage Mobile penetration (Q108) MoU (Q108) Norway DTAC Denmark Grameenphone Sweden Telenor Norway Montenegro DiGi Malaysia Telenor Sweden Ukraine Telenor Denmark Hungary Telenor Pakistan Serbia Pannon Thailand Kyivstar Pakistan Promonte Bangladesh Telenor Serbia 0 % 50 % 100 % 150 % 200 % 0 100 200 300 400 500 Real penetration SIM penetration 4 Leveraging on our core assets 150 million subscribers 500 000 points of sale World class infrastructure Brand strength Significant mobile broadband potential 98% 99% 90% 90% 90% 86% 64% 50% 30% 17% 7% 1% 0,04% 0,03% Sweden Hungary Malaysia Thailand Ukraine Pakistan Bangladesh Fixed broadband household penetration 3G/EDGE population coverage 5 Promising entry into basic financial services Opportunities in connecting objects Example Nordic region 25 million people 200 million objects waiting to be connected 6 Actively exploring M&A opportunities • Expansion within existing regional clusters • Complementary businesses in existing markets • More flexible approach to control • Selectively looking at Africa Secure industry leadership on operational excellence • Proactively manage costs to meet declining prices • Benchmarking and best practices • Leverage on scale in procurement • Set high leadership expectations and standards 7 Recognising our responsibilities • Contribute to local development • Implement and follow-up of codes of conduct • Active approach to environment Summary • One of the fastest growing mobile operators • Strong regional positions • Leverage on core assets to develop new services • Actively explore expansion opportunities 8.