Developing our business the Mobile Way Arve Johansen, Deputy CEO and Head of Telenor International Mobile

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Competitive advantage through the Mobile Way

Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

Strong group-wide governance

Key Success Agility and competence Factors Simplicity & focus Group commitment

2 Competitive advantage through the Mobile Way

Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

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Investment optimisation

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

z Mobile business model profitable in new segments z Key drivers – Large group-wide procurement savings – Exploiting opportunities in existing technology – Benchmarking and best practice sharing – Efficient network operations

4 Competitive advantage through the Mobile Way

Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

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The Mobile Way management principles

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

Management philosophy Implementation z Integrity z Telenor in key positions in all companies z Passion for business z Management rotation z Change and constant renewal z Succession planning for all z Empower People critical positions z Operational excellence z Bonus and incentives on important value drivers

6 Competitive advantage through the Mobile Way

Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

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Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

z Seamless availability of 58 mill. subscribers customer services when roaming z Leverage scale in selected procurement activities z Improved services to multi- national clients z Group cooperation in roaming

8 Competitive advantage through the Mobile Way

Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

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Creating local competitive advantage

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

Local responsiveness

Best practice & Idea sharing Formal & Virtual networks

Common service Common marketing Common segment framework framework go-to-market strategies Mobile Way tools

10 Building the djuice brand

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

djuice “offers more” Value Proposition Phone + Tailor- made and Sponsorships and Brand & Communication Reasonable Price plan bundle of services Loyalty Activities with Attitude

Tasty sugar water Something Extra Sponsorships Brand & Community And Loyalty Activities with Attitude

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Building the revenue base

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

Services, Partnerships, Events important to develop (ARPU) and retain customers (Churn)

Subs / Revenues

Handset and Price important to gain critical mass

Time

12 djuice under Telenor leadership

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

Norway, Subs: 820 000 z Strategy - market leadership within youth segment , Subs: 100 000

Ukraine, Subs: 2 350 000 z Reduced time-to-market securing strong segment Hungary, Subs: 340 000 positioning

z Positive impact on the mother brand

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Profitability in low-ARPU segments

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming Development

z Volumes and margins matter more than ARPU – Tailored pricing strategies ARPU (NOK)

– Manage acquisition costs EBITDA margin – Optimise network costs – New distribution solutions – Fill the networks with traffic!

il n n i r e e b fo o iG ta n t o o n s o n M n D v h o n n a i P M o P y n o T S K e r e P m ra G

14 Competitive advantage through the Mobile Way

Prioritized areas in the Mobile Way Human Resources Common segment Procurement & Management strategies

Infrastructure Alliances Common Product Management Roaming Development

Strong group-wide governance

Key Success Agility and competence Factors Simplicity & focus Group commitment

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Pakistan – Deploying the Mobile Way from day

Human Common Procurement Resources segment & Management strategies

Common Infrastructure Alliances Product Management Roaming one Development z Full-scale industrialisation – Management – Positioning – Network rollout – Business processes z Leveraging Telenor’s greenfield and emerging market expertise – Record speed rollout and launch – Fast subscriber uptake – ”Quality operator” position conquered

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