TELENOR GROUP Fourth quarter 2020 Sigve Brekke, CEO 1 Sensitivity: Internal Disclaimer The following presentation is being made only to, and is only This presentation contains statements regarding the future directed at, persons to whom such presentation may in connection with the Telenor Group’s growth initiatives, lawfully be communicated (’relevant persons’). Any person profit figures, outlook, strategies and objectives. In who is not a relevant person should not act or rely on this particular, the slide “Outlook for 2021” contains forward- presentation or any of its contents. Information in the looking statements regarding the Telenor Group’s following presentation relating to the price at which relevant expectations. All statements regarding the future are subject investments have been bought or sold in the past or the to inherent risks and uncertainties, and many factors can yield on such investments cannot be relied upon as a guide lead to actual profits and developments deviating to the future performance of such investments. substantially from what has been expressed or implied in such statements. This presentation does not constitute an offering of securities or otherwise constitute an invitation or The comments in the presentation are related to Telenor’s inducement to any person to underwrite, subscribe for or development in 2020 compared to the same quarter of otherwise acquire securities in any company within the 2019, unless otherwise stated. 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. 2 Sensitivity: Internal 2020 – Highlights Empowering societies; employees, customers and connectivity Modernisation; provide ability to accelerate and innovate Financial robustness confirmed; growth in EBITDA and strong cash flow 3 Q4 2020 Sensitivity: Internal Robust performance in the Nordics Highlights Norway S&T revenue growth (yoy change) 118 223 • Limited Covid-19 effect beyond roaming 247 • Value added service growth in Norway continues 85 84 75 2% • Solid momentum on 5G upselling in Finland Fixed Mobile Fixed Mobile One-off S&T future domestic legacy Roaming growth • Sweden on improving trend, expected to stabilise during Q2 2021 Finland S&T revenue growth • Denmark sees strong EBITDA in Q4 backed by 3.8% higher subscriber base 2.8% 2.3% 0.3% Q1 20 Q2 20 Q3 20 Q4 20 4 Q4 2020 Sensitivity: Internal Timing of Asia recovery remains uncertain Key developments Organic subs & traffic revenue growth (%) Developed Asia Emerging Asia Thailand and Malaysia influenced by 10% shortfall in tourist and migrant segment. 5% Second Covid-19 wave increases the 0% duration. -5% Reduced economic activity starts to -10% impact Asian consumer behaviour Okt Nov Jan Feb March April May July Aug Sept Dec -15% June 5 Q4 2020 Sensitivity: Internal Adapting to changing environments Domestic focus in Thailand Targeted efforts in Pakistan yield results Improving trend in Myanmar Subscriptions in million Subscriptions in million Subscription net adds in million 0.2 20.6 19.6 18.8 18.7 18.9 4% 2.0 1.0 45.4 46.5 45.1 46.2 47.2 0.0 -1.0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 -2.0 May July Jan Feb Mar June Aug Sept Oct Nov Dec Prepaid Postpaid -3.0 April Net adds turned positive in Q4, up 173k Strong trend in customer intake 5G roll-out started on the low band Increasing data demand supporting frequency revenue development 6 Q4 2020 Sensitivity: Internal Strategic update Growth Modernisation Responsible business 7 Q4 2020 Sensitivity: Internal Strategic growth areas for 2021-2022 Growth Data growth Emerging Asia Value added services Norway Accretive 5G opportunity Revenues in NOK billion 1.9 58% Connectivity 55% 1.5 Digital 1.2 1.3 Providers 0.9 30% 0.9 Edge 0.7 Platform 0.5 Vendors SIs SaaS 5% 0.6 0.5 0.4 0.5 Hyper-scalers Bangladesh Pakistan 2017 2018 2019 2020 Orchestration Data revenue growth yoy Data volume growth yoy Incl. in ARPU Not incl. in ARPU Source: TM forum Increasing data demand driving growth Increasing contribution from Initially through speed based bundling in revenues value added services and 5G tariffs B2B opportunities across Asian portfolio Implementing Nordic Product Targeted partnership to explore House expansion of core market 8 Q4 2020 Sensitivity: Internal Modernisation – a foundation for growth Modernisation Enabling digital customer interaction Executing on structural efficiencies 44% 78 64 69 68 54 29% 23% 27% 24% 17% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Digital recharge in Pakistan (transactions in million & share of total %) • Sale in digital channels scaled up with • NOK 1.5 bn in realised structural effects for 2020 discounts, partnerships and targeted sales 9 Q4 2020 Sensitivity: Internal Taking action to reduce emissions Responsible business Increased energy efficiency Ambitious climate goal in Asia Network data1 Asia accounting for ~90% of CO2 emissions 28,000 (traffic vs. energy consumption) +36% +9 % 19,000 100% 6,000 13,000 3,000 3,000 2,600 50% 2017 2018 2019 2020 2019 Carbon footprint Renewable grid 2030 TB/day GHW/yr GWH/yr new Carbon neutral in the Nordics +35% Data growth across Telenor of 42% in 2020 driving increased energy consumption 100% 100% Efforts already yielding results: Breaking the energy consumption curve, -1.5% in 2020 Solar sites in Asia increased by 27% yoy, to 3,800 2019 Carbon footprint Renewable grid 2030 sites, contributing to ~35,000 tonnes CO2 p.a. Forecasted emissions without initiatives Forecasted emissions with initiatives 10 Q4 2020 Sensitivity: Internal TELENOR GROUP Fourth quarter 2020 Tone Hegland Bachke, CFO 11 Sensitivity: Internal Highlights 2020 Q4 2020 Organic S&T revenues -2% -3% OPEX -7%** -7%* Organic EBITDA 2% 0% Free cash flow 20.9 bn 9.1 bn *FX adjusted 12 Q4 2020 **FX adjusted & excluding DNA Sensitivity: Internal Organic subscription and traffic revenues -2% in 2020 Organic subscription and traffic revenues Q4 Organic subscription and traffic revenues 2020 Percentage points contribution to growth S&T NOK billion growth -2% 90.6 Norway 0.4 2% 0.4 Finland 0.2 2% 0.2 Pakistan 0.0 0% Roaming -0.6 Denmark -0.1 -1% 1.1 Bangladesh -0.4 -3% 88.9 Myanmar -0.5 -7% Malaysia -0.6 -4% Sweden -0.6 -6% Thailand -1.8 -9% Group -3.4 2019 Nordics Emerging Developed 2020 Asia Asia Organic growth rate. Subscription & traffic revenues defined as revenues from mobile subscription & traffic, fixed internet & TV, retail telephony and data services 13 Q4 2020 Sensitivity: Internal Solid opex reduction of 7% in 2020 Q4 opex by category* Q4 opex by country (NOK m)* Full year opex* NOK million NOK million NOK billion Incl. DNA Incl. DNA Excl. DNA -7% Salaries and -188 -7% Personnel 9,948 35.3 Sales, Marketing, 138 -166 Commissions 111 69 1.5 Operation and 31 62 -53 30 Maintenance 27 25 5 315 0.9 Energy 32.7 -100 9,259 0.2 Other opex -182 Group -689 Thailand Myanmar Bangladesh Malaysia Pakistan Sweden Finland Denmark Norway Elim Other/ Q4 Q4 2019 Structural Covid- Net 2020 19 20 initiatives 19 other effects * FX adjusted 14 Q4 2020 Sensitivity: Internal Organic EBITDA growth of 2% in 2020 Q4 Organic EBITDA growth (%) 2020 Organic EBITDA growth (%) Percentage points contribution to growth EBITDA Percentage points contribution to growth EBITDA growth growth Finland 0.8 13% Norway* 0.8 4%* Norway* 0.7 3%* Myanmar 0.8 12% Pakistan 0.7 13% Finland 0.3 8% Denmark 0.2 9% Pakistan 0.1 1% Myanmar 0.0 -1% Denmark 0.0 -1% Malaysia -0.7 -5% Bangladesh 0.1 0% Bangladesh -0.7 -4% Thailand 0.2 -1% Sweden -1.1 -12% Sweden 0.6 -6% Thailand -1.5 -9% Malaysia 0.9 -6% Other/Elim 1.5 Other 1.4 Q4 2020 -0.2 2020 1.7 15 Q4 2020 *Underlying development adjusted for transfer of businesses between Telenor Norway and Other Units Sensitivity: Internal Steady execution on portfolio development CMD 2017 2017 2018 2019 2020 A more • India exit • Sale of CEE • DNA acquired • Sale of Wave money simplified • Veon sale operations • Canal Digital / Myanmar portfolio • Sale of online • Partnership with NENT merger • Establish classifieds Latin Ant Financial in • Merging online infrastructure America Pakistan classifieds assets company in Norway with Carousel • Sale of HQ and development properties in Norway • Sale of Tapad 16 Q4 2020 Sensitivity: Internal Continued focus on passive infrastructure in 2021 2020 2021 Establish infrastructure Establish Nordic tower setup company in Norway Strong first year of operation, hitting all Establish tower companies for owned performance targets towers External revenue up 10% Report key financials within 2021 EBITDA of MNOK 900 32k sites directly owned or through JV’s Tenancy ratio of 2.2 for ground-based Focus on operational advancement and towers strategic optionality 17 Q4 2020 Sensitivity: Internal Net income to equity holders of NOK 17 billion in 2020 Net income to equity holders NOK billion Net income to equity holders NOK billion 5.49 17.3 7.7 2.0 1.0 1.25 7.8 3.2 1.8 0.1 0.4 Q4 2019 EBITDA Depreciation Other items Net financials Other Q4 2020 2019 2020 before other items Earnings per share 18 Q4 2020 Sensitivity: Internal 2020 free cash flow before M&A of NOK 12.5 billion Capex excluding licenses Free cash flow Leverage NOK billion NOK billion 9.1 Net debt / EBITDA 2.0 5.6 5.8 3.8 3.6 4.4 7.1 2.3 2.1 2.2 2.1 3.8 3.7 2.7 4.0 3.9 2.0 3.1 0.5 1.1 -0.4 0.5 -9.3 FCF excl M&A and disposals Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 -8.7 M&A and disposals Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q419 Q1 20 Q2 20 Q3 20 Q4 20 Free cash flow to equity holders of Telenor ASA Capex on par with last year Reduced ratio from improved EBITDA and NOK strengthening 19 Q4 2020 Sensitivity: Internal Proposing ordinary dividend of NOK 12.6 bn to shareholders 3% growth in ordinary dividend per share Solid shareholder remuneration 23.0 Proposing a dividend of NOK 9.0 per share for FY 19.9 6.5 2020, in line with current dividend policy.