TELENOR GROUP – FIRST QUARTER
Sigve Brekke, CEO
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.
2
This presentation contains statements regarding the future in
connection with the Telenor Group’s growth initiatives, profit
figures, outlook, strategies and objectives. In particular, the slide
“Outlook for 2017 (…)” contains forward-looking statements
regarding the Telenor Group’s expectations. 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.
HIGHLIGHTS FIRST QUARTER 2017
OPERATIONAL HIGHLIGHTS
KEY FINANCIALS
• Data monetization in Emerging Asia
• Solid fibre momentum in Norway
• Revenues of NOK 30.5 bn (0%)
and Sweden
• Strong postpaid, while working to
stabilize prepaid in Thailand and Malaysia
• Progress on strategic agenda
3
EBITDA before other items. Organic growth rates
• EBITDA of NOK 11.5 bn (+3%)
• Net income of NOK 4.2 bn
• Free cash flow of NOK 2.2 bn
Q1 2017
REVAMPED MOBILE OFFERINGS AND FIBRE GROWTH
IN NORWAY
Revenues (NOK m) and EBITDA margin (%)
MOBILE
•
•
Successful launch of new offerings in March, targeting the
youth segment
6 725
6 331
6 697
6 516
6 487
6 230
-2%
Stable revenues excluding effect from launch of data rollover
39%
44%
41%
45%
Q1 16
Q2 16
Q3 16
40%
41%
Q4 16
Q1 17
FIXED
•
•
Good momentum on fibre rollout, with 12k new fibre
connections and 5% broadband ARPU growth
6% growth in Internet and TV revenues, offsetting decline
on legacy revenues
Q4 15
Mobile ARPU development (NOK)
315
10
305
Underlying
growth
Q1 17
-11
-9
EBITDA
•
•
EBITDA impacted negatively by NOK 85 m rollover effect
Stable opex YoY, cost programme progressing as planned
Q1 16
4
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items.
Handset related
Organic revenue growth.
Data rollover
Q1 2017
SOLID REVENUE AND EBITDA GROWTH IN SWEDEN
AND DENMARK
SWEDEN
•
•
•
24k net mobile subscriber growth and 19k new fibre
connections
•
•
3 410
3 122
3 093
3 078
3 090
3 056
6%
5% organic growth in fixed revenues, driven by fibre
Stable opex and 11% organic growth in EBITDA
DENMARK
•
Sweden - Revenues (NOK m) and EBITDA margin (%)
9k net mobile subscriber growth in continued highly
competitive environment
28%
29%
32%
Q4 15
Q1 16
Q2 16
34%
30%
20%
Q3 16
Q4 16
Q1 17
Denmark - Revenues (NOK m) and EBITDA margin (%)
1 431
1 254
1 241
1 263
1 309
Revenue growth driven by strong handset sale
1 249
5%
Solid EBITDA improvement from 15% decline in opex
18%
9%
Q4 15
5
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items.
12%
11%
11%
Q1 16
Q2 16
Q3 16
Organic revenue growth.
14%
Q4 16
Q1 17
Q1 2017
STEADY PERFORMANCE IN CENTRAL AND EASTERN
EUROPE
HUNGARY
•
•
Stable organic subscription and traffic revenues
Hungary - Revenues (NOK m) and EBITDA margin (%)
1 175
1 117
1 101
1 124
1 094
3% organic growth in EBITDA, driven by opex reduction
1 053
-1%
BULGARIA
•
•
•
1% organic subscription and traffic revenue growth
6
32%
30%
35%
Q1 16
Q2 16
Q3 16
27%
Q4 15
Stable opex and 3% organic growth in EBITDA
Bulgaria - Revenues (NOK m) and EBITDA margin (%)
809
758
768
815
Q4 16
33%
Focus on 4G and pre to post migration
SERBIA AND MONTENEGRO
•
•
24%
827
732
Stable organic subscription and traffic revenues
2%
1% organic growth in EBITDA, supported by opex decline
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items.
Q1 17
36%
38%
39%
40%
Q4 15
Q1 16
Q2 16
Q3 16
Organic revenue growth
35%
38%
Q4 16
Q1 17
Q1 2017
SOLID POSTPAID TRENDS AND CONTINUED PREPAID
COMPETITION IN DEVELOPED ASIA
THAILAND (DTAC)
•
•
•
Slight reduction in subscription and traffic revenues, while
total revenues impacted by lower handset sales
20% organic growth in postpaid revenues and successful
launch of speed based price plans
Network densification continues with improvement in
network perception
MALAYSIA (DIGI)
•
•
•
7
Intense prepaid competition offsetting strong postpaid
performance
Thailand – Revenues (NOK m) and EBITDA margin (%)
5 533
5 260
4 629
4 671
5 086
-9%
29%
Q4 15
34%
33%
37%
Q1 16
Q2 16
Q3 16
31%
35%
Q4 16
Q1 17
Malaysia - Revenues (NOK m) and EBITDA margin (%)
3 430
3 405
3 411
3 324
3 233
45% EBITDA margin supported by stringent cost control
2 989
-5%
4G network reaching 85% population coverage
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items.
4 751
40%
42%
45%
48%
45%
45%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic revenue growth
Q1 2017
DATA MONETIZATION DRIVING REVENUE GROWTH
AND MARGINS IN EMERGING ASIA
BANGLADESH (GRAMEENPHONE)
•
•
11% organic revenue growth, supported by 6% ARPU growth
2 924
3 045
2 965
3 134
3 194
3 277
11%
58% EBITDA margin and 17% organic growth in EBITDA
PAKISTAN
•
•
Bangladesh - Revenues (NOK m) and EBITDA margin (%)
55%
55%
54%
57%
55%
58%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
10% organic revenue growth
49% EBITDA margin and 25% organic growth in EBITDA
Pakistan - Revenues (NOK m) and EBITDA margin (%)
MYANMAR
•
•
•
8
13% organic revenue growth and stable ARPU vs Q4 16
1 821
1 893
1 896
1 933
1 976
2 029
10%
Successful re-registration of subscriber base
43% EBITDA margin and 16% organic growth in EBITDA
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items.
47%
43%
46%
48%
43%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Organic revenue growth
49%
Q1 17
Q1 2017
TAKING STEPS TOWARDS SIMPLIFICATION
• India exit announced in February
Scandinavia
• Cluster organization launched
• Further sell-down in VEON
• Continue to simplify portfolio
Central &
Eastern Europe
- divested Startsiden
• Efficiency efforts continues
Emerging Asia
9
Developed Asia
TELENOR GROUP – FIRST QUARTER
Jørgen C. Arentz Rostrup, CFO
HIGHLIGHTS FIRST QUARTER 2017
OPERATIONAL HIGHLIGHTS
KEY FINANCIALS
• Data monetization in Emerging Asia
• Solid fibre momentum in Norway
• Revenues of NOK 30.5 bn (0%)
and Sweden
• Strong postpaid, while working to
stabilize prepaid in Thailand and Malaysia
• Progress on strategic agenda
11
EBITDA before other items. Organic growth rates
• EBITDA of NOK 11.5 bn (+3%)
• Net income of NOK 4.2 bn
• Free cash flow of NOK 2.2 bn
Q1 2017
Revenues (NOK m)
32 052
31 494
30 926
31 249
31 727
30 458
0%
Q4 15
•
•
12
Q1 16
Q2 16
Q3 16
Q4 16
Thousands
STABLE ORGANIC REVENUES
1% organic revenue growth adjusted for one-time item in
Broadcast in Q1 2016
Organic growth assuming fixed currency, adjusted for acquisitions and disposals.
31 494
Q1 16
Q1 17
Negative currency effects of NOK 1.1 bn from strengthening
of NOK against most functional currencies
Revenues (NOK m) development
•
•
•
395
30 458
EM Asia
-509
-416
-277
-228
Thailand
Malaysia
Broadcast
Others
Q1 17
Continued double-digit organic growth in emerging Asia
Lower handset sales in Thailand
Positive one time effect of NOK 0.2 bn in Broadcast in Q1 2016
Q1 2017
FOCUS ON TURNING THE OPEX TREND IN 2017
12 065
11 823
11 797
Opex (NOK m) development
12 101
11 162
11 426
0%
Q4 15
•
•
13
Q1 16
Q2 16
Q3 16
Q4 16
FX adjusted development
11 823
-240
Q1 16
Q1 17
3% yoy reported opex reduction vs stable organic development
Workforce reductions of around 600 FTEs during Q1
Thousands
Opex (NOK m)
•
Sales & mkt.
-58
O&M
17
11 430
Others
Q1 17
-115
Regulatory
Increased marcom efficiency and lower regulatory cost
Q1 2017
38% EBITDA MARGIN AND 3% ORGANIC EBITDA GROWTH
11 629
10 802
EBITDA (NOK m) development
12 307
11 462
11 381
10 649
3%
34%
Q4 15
•
•
14
37%
37%
Q1 16
Q2 16
39%
34%
Q3 16
Q4 16
38%
Thousands
EBITDA (NOK m) and EBITDA margin (%)
Q1 17
+1 pp EBIDTA margin uplift from improved gross margin
5% organic EBITDA growth adjusted for one-time effects in
Broadcast in Q1 2016
Organic growth assuming fixed currency, adjusted for acquisitions and disposals.
11 629
Q1 16
•
•
219
179
Bangladesh Pakistan
11 462
-191
-271
Norway
Broadcast
-104
Others
Q1 17
Solid EBITDA contribution from Emerging Asia
YoY development in Norway and Broadcast impacted by data
rollover and one-time effects in Q1 2016
Q1 2017
CAPEX OF NOK 4.5 BILLION AND CAPEX/SALES OF 15%
Capex (NOK m) and capex/sales
Capex distribution
6 768
Myanmar
6%
6 041
5 138
5 049
4 886
Other
11%
Norway
25%
Sweden
7%
4 533
21%
19%
16%
16%
16%
Malaysia
8%
15%
Thailand
24%
Pakistan
9%
Q4 15
•
15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Total capex coming down following high network investments
in 2016
Capex and capex/sales ratio excl. licences
Bangladesh
11%
•
•
4G and fibre investments in Norway
Network densification programme in Thailand
Q1 2017
NET INCOME OF NOK 4.2 BILLION
NOK m
Q1 2016
Q1 2017
Revenues
31 494
30 458
EBITDA before other items
11 629
11 462
-140
-178
• Workforce reductions (-213m)
EBITDA
11 490
11 283
Depreciation and amortisation
-4 890
-5 109
• Gain on disposal of Startsiden
(+65m)
Operating profit
6 599
6 175
Associated companies
4 175
1 117
-937
-879
-1 601
-1 670
8 236
4 742
-3 149
120
830
694
4 256
4 168
2.83
2.78
Other items
Net financials
Taxes
Profit from continuing operations
Profit (loss) from discontinued operations
Net income - non-controlling interests
Net income - Telenor equity holders
Earnings per share (NOK)
16
• Reversal VEON impairment incl.
share of Q4 net income
• Loss on derivative (exchangeable
bond) of NOK 111m
• India classified as discontinued
operation. Including impairment
of NOK 2.3 bn in Q1 2016
Q1 2017
FREE CASH FLOW OF NOK 2.2 BILLION
Net cash flow from operating activities (NOK m)
Net cash flow from investing activities (NOK m)
760
11 216
10 492
9 190
8 880
9 163
7 944
-6 431
-6 106
-6 387
-5 372
-9 372
Q4 15
17
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q1 2017
STABLE NET DEBT OF NOK 54 BN AND NET DEBT/EBITDA
OF 1.2x
Net debt (NOK bn) and net debt/EBITDA*
Change in net debt (NOK bn)
59.0
54.1
54.4
53.6
Net debt 31 Dec 2016
53.7
47.9
1.2
1.2
1.3
1.2
1.2
1.1
Q4 15
18
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
*) 12 months rolling EBITDA. Net debt excl. licence commitments of NOK 2.6 bn
EBITDA
54.4
(11.3)
Income taxes paid
1.1
Net interest paid
0.5
Capex paid
5.3
Dividends paid
0.6
Currency effects
1.2
Changes in working capital and other
1.9
Net change during Q1 17
(0.7)
Net debt 31 Mar 2017
53.7
FURTHER SELL-DOWN IN VEON IN APRIL
•
•
•
•
•
19
70 million VEON ADSs sold on 7 April through a bookbuilding process
Net proceeds of UDS 259 million (around NOK 2.2 billion) to be included in Telenor's
cash flow statement Q2 2017
Remaining 19.7% shareholding in VEON, including the VEON ADSs that are underlying
Telenor's USD 1 billion, 3-year exchangeable bond
Following the transaction, VEON will no longer be treated as an associated company in
Telenor’s financial reporting
All previously recognized currency translation differences, amounting to an accounting
loss of NOK 7.5 billion will be reclassified to the income statement. The effect will be
recognized Q2 2017.
Q1 2017
OUTLOOK FOR 2017 ADJUSTED TO REFLECT CURRENT
GROUP STRUCTURE EXCL. INDIA
2017
YTD
Organic revenue growth
1-2%
0.2%
0.8%
EBITDA margin
Around 37%
37.6%
36.7%
Capex/sales ratio
15-16%
14.9%
17.4%
Organic revenue growth in fixed currency, adj. for acquisitions and disposals.
EBITDA before other items. Capex excl. spectrum and licence fees.
Excluding India from the Group structure has approx. 1 pp positive effect on the Group’s EBITDA margin.
The impact on revenue growth and capex/sales is marginal.
20
2016 ex. India
HIGHLIGHTS FIRST QUARTER 2017
OPERATIONAL HIGHLIGHTS
KEY FINANCIALS
• Data monetization in Emerging Asia
• Solid fibre momentum in Norway
• Revenues of NOK 30.5 bn (0%)
and Sweden
• Strong postpaid, while working to
stabilize prepaid in Thailand and Malaysia
• Progress on strategic agenda
21
EBITDA before other items. Organic growth rates
• EBITDA of NOK 11.5 bn (+3%)
• Net income of NOK 4.2 bn
• Free cash flow of NOK 2.2 bn
TELENOR GROUP – FIRST QUARTER
APPENDIX
Norway
Sweden
Pakistan
Bangladesh
Denmark
Thailand
Hungary
Malaysia
Serbia
Myanmar
Montenegro
Bulgaria
23
TELENOR GROUP
172 million mobile subscribers
Revenues in 2016: NOK 125 bn (USD 15 bn)
Market cap: NOK 213 bn (USD 25 bn)
Q1 2017
GEOGRAPHIC SPLIT OF KEY FINANCIALS - FULL YEAR 2016
REVENUES
EBITDA
EBITDA LESS CAPEX
0%
2%
8%
35%
28%
33%
26%
34%
26%
22%
Scandinavia
Emerging Asia
Other
24
9%
CEE
Mature Asia
9%
29%
Scandinavia
Emerging Asia
Other
CEE
Mature Asia
EBITDA before other items. Capex excl. licences. Reporting structure as of Q1 2017
28%
Scandinavia
Emerging Asia
Other
12%
CEE
Mature Asia
Q1 2017
NORWAY
Mobile subscribers (‘000)
3 163
3 129
3 105
3 081
Revenues (NOK m) and EBITDA margin
3 066
3 026
6 725
6 331
6 487
6 516
6 697
-2%
-3%
39%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
44%
41%
45%
Q1 16
Q2 16
Q3 16
Mobile ARPU (NOK/month)
314
315
315
327
316
305
EBITDA
2 766
2 614
25
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
2 906
2 631
889
Q2 16
41%
Q4 16
Q1 17
CAPEX
1 361
Q1 16
39%
EBITDA and capex (NOK m)
-3%
Q4 15
6 230
Q1 16
Organic growth
1 184
Q2 16
2 643
1 175
Q3 16
2 575
1 512
-7%
1 148
Q4 16
Q1 17
Q1 2017
SWEDEN
Mobile subscribers (‘000)
Revenues (NOK m) and EBITDA margin
3 410
2 548
2 551
2 555
2 590
2 624
2 649
3 122
3 093
3 078
3 090
6%
4%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
28%
29%
32%
Q4 15
Q1 16
Q2 16
Mobile ARPU (SEK/month)
226
220
223
34%
30%
20%
Q3 16
Q4 16
224
223
EBITDA
952
CAPEX
1 040
990
894
1%
920
615 586
393
26
Q1 16
Q2 16
Q3 16
Q1 17
EBITDA and capex (NOK m)
191
Q4 15
3 056
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
336
Q1 16
Organic growth
336
Q2 16
307
303
Q3 16
11%
Q4 16
Q1 17
Q1 2017
ADDITIONAL INFORMATION – NORWAY AND SWEDEN
Norway – mobile ARPU (NOK)
Interconnect
315
Roaming
315
Handset related
Sweden – mobile ARPU (SEK)
Domestic
316
328
316
305
15
12
14
9
Domestic
226
20
220
223
224
19
18
19
191
Interconnect
223
22
20
22
20
17
19
21
16
256
258
263
275
274
268
187
183
186
186
158
183.0
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17*
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17**
Norway – fixed broadband subscribers (‘000)
High speed
27
Roaming
16
15
Sweden – fixed broadband subscribers (‘000)
Low speed
High speed
Low speed
310
297
287
278
268
255
164
154
148
141
132
124
544
556
572
582
597
609
475
486
499
511
525
545
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
*Introduction of data rollover has a negative (non-cash) effect of NOK 9 on ARPU
**ARPU includes a positive one-time effect of SEK 7 related to an interconnect settlement
Q1 2017
DENMARK
Mobile subscribers (‘000)
1 784
1 797
1 779
1 777
Revenues (NOK m) and EBITDA margin
1 820
1 829
1 431
1 254
1 241
1 263
1 309
5%
2%
9%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
12%
11%
11%
Q1 16
Q2 16
Q3 16
Mobile ARPU (DKK/month)
119
119
118
117
1 249
18%
14%
Q4 16
Q1 17
EBITDA and capex (NOK m)
118
114
EBITDA
306
CAPEX
-4%
233
157
134
222
50%
184
136 147
133
108
103
47
Q4 15
28
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
Q2 16
Q3 16
Q4 16
Q1 17
Q1 2017
HUNGARY
Mobile subscribers (‘000)
3 164
3 151
3 178
3 189
Revenues (NOK m) and EBITDA margin
3 148
3 103
1 175
1 117
1 124
1 101
1 124
1 053
-2%
-1%
24%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
32%
30%
35%
Q1 16
Q2 16
Q3 16
Mobile ARPU (HUF/month)
3 440
3 365
3 372
3 417
3 356
33%
27%
Q4 16
Q1 17
EBITDA and capex (NOK m)
3 391
1%
EBITDA
CAPEX
389
354
348
332
294
280
3%
163
90
Q4 15
29
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
46
Q1 16
Organic growth
77
Q2 16
104
40
Q3 16
Q4 16
Q1 17
Q1 2017
MONTENEGRO AND SERBIA
Mobile subscribers (‘000)
3 443
3 384
3 385
3 487
Revenues (NOK m) and EBITDA margin
3 339
3 252
973
1 011
961
940
924
-4%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
-3%
34%
34%
37%
41%
Q4 15
Q1 16
Q2 16
Q3 16
Mobile ARPU (EUR/month)
8.5
8.4
8.6
8.8
EBITDA
8.4
30
Q3 16
Q4 16
Q1 17
413
332
360
317
306
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
300
146
71
Q2 16
35%
CAPEX
8.4
138
Q1 16
33%
EBITDA and capex (NOK m)
-3%
Q4 15
854
Q1 16
Organic growth
95
Q2 16
67
63
Q3 16
1%
Q4 16
Q1 17
Q1 2017
BULGARIA
Mobile subscribers (‘000)
3 583
3 524
3 502
3 540
Revenues (NOK m) and EBITDA margin
809
3 429
827
815
768
758
3 318
732
2%
-6%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
36%
38%
39%
40%
Q4 15
Q1 16
Q2 16
Q3 16
Mobile ARPU (BGN/month)
11.9
12.1
12.6
13.2
38%
Q4 16
Q1 17
EBITDA and capex (NOK m)
EBITDA
13.4
35%
CAPEX
12.9
295
6%
323
295
286
287
278
216
154
33
Q4 15
31
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
52
Q2 16
47
Q3 16
3%
24
Q4 16
Q1 17
Q1 2017
THAILAND (DTAC)
Mobile subscribers (‘000)
25 252
25 477
Revenues (NOK m) and EBITDA margin
5 533
24 953
24 820
24 480
24 310
5 260
4 629
4 671
34%
33%
37%
Q1 16
Q2 16
Q3 16
5 086
-5%
-9%
29%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
Mobile ARPU (THB/month)
234
228
225
231
231
230
EBITDA
32
Q2 16
Q3 16
35%
Q4 16
Q1 17
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
CAPEX
1 778
1 598
1 727
1 541
933
Q1 16
31%
EBITDA and capex (NOK m)
1%
Q4 15
4 751
Q4 15
1 139
Q1 16
Organic growth
1 599
1 280
1 656
1 413
-6% 1 076
1 003
Q2 16
Q3 16
Q4 16
Q1 17
Q1 2017
MALAYSIA (DIGI)
Mobile subscribers (‘000)
12 125
12 336
12 347
12 249
Revenues (NOK m) and EBITDA margin
12 299
11 776
3 430
3 411
3 405
3 324
3 233
2 989
5%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
-5%
40%
42%
45%
48%
45%
45%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Mobile ARPU (MYR/month)
44
42
42
41
EBITDA and capex (NOK m)
42
40
-3%
EBITDA
CAPEX
1 592
1 541
1 431
1 385
1 440
1 353
3%
578
351
Q4 15
33
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
344
Q2 16
416
Q3 16
469
Q4 16
368
Q1 17
Q1 2017
BANGLADESH (GRAMEENPHONE)
Mobile subscribers (‘000)
56 679
56 285
56 909
55 015
Revenues (NOK m) and EBITDA margin
57 954
59 868
2 924
3 045
2 965
3 134
3 194
3 277
11%
6%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
55%
55%
54%
57%
55%
58%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Mobile ARPU (BDT/month)
152
156
157
169
EBITDA and capex (NOK m)
166
165
6%
EBITDA
1 595
CAPEX
1 684
1 784
1 609
1 903
1 752
17%
1 004
501
567
462
480
226
Q4 15
34
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
Q2 16
Q3 16
Q4 16
Q1 17
Q1 2017
PAKISTAN
Mobile subscribers (‘000)
34 563
36 730
37 914
38 233
Revenues (NOK m) and EBITDA margin
39 428
40 051
1 821
1 893
1 896
1 933
1 976
9%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
10%
47%
43%
46%
48%
43%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Mobile ARPU (PKR/month)
212
206
212
205
202
847
CAPEX
809
844
25%
623
554
307
35
Q1 16
Q2 16
Q3 16
Q1 17
989
920
867
-2%
Q4 15
49%
EBITDA and capex (NOK m)
EBITDA
206
2 029
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
340
Q2 16
402
317
Q3 16
Q4 16
Q1 17
Q1 2017
MYANMAR
Mobile subscribers (‘000)
13 683
Q4 15
15 469
16 889
17 816
Revenues (NOK m) and EBITDA margin
18 255
18 798
1 722
1 737
1 754
22%
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
43%
42%
Q4 15
Q1 16
5 239
4 761
5 036
46%
45%
41%
43%
Q2 16
Q3 16
Q4 16
Q1 17
EBITDA and capex (NOK m)
EBITDA
5 692
1 749
13%
Mobile ARPU (MMK/month)
5 997
1 802
1 496
CAPEX
5 015
769
-12%
640
827
718
766
774
718
783
746
614
552
16%
270
Q4 15
36
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
Q1 16
Organic growth
Q2 16
Q3 16
Q4 16
Q1 17
Q1 2017
BROADCAST
DTH subscribers (‘000)
897
878
870
865
Revenues (NOK m) and EBITDA margin
862
855
1 597
1 765
1 561
1 546
1 495
1 488
-16%
-3%
42%
32%
Q4 15
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Q4 15
Q1 16
DTH ARPU (NOK/month)
389
389
397
399
33%
35%
Q2 16
Q3 16
30%
31%
Q4 16
Q1 17
EBITDA and capex (NOK m)
382
386
-1%
EBITDA
CAPEX
733
540
513
507
461
447
-37%
90
Q4 15
37
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Organic growth assuming fixed currency, adjusted for acquisitions and
disposals. EBITDA before other items. Capex excl. licence fees
Q4 15
95
Q1 16
Organic growth
93
Q2 16
87
Q3 16
135
Q4 16
94
Q1 17
Q1 2017
CHANGES IN REVENUES AND EBITDA
Revenues
Reported
Norway
Sweden
Denmark
Hungary
Montenegro and Serbia
Bulgaria
Thailand
Malaysia
Bangladesh
Pakistan
Myanmar
Broadcast
Telenor Group
38
-1.6 %
-2.1 %
-0.4 %
-5.8 %
-9.2 %
3.4 %
-9.7 %
-12.2 %
7.6 %
7.2 %
1.6 %
-15.7 %
-3.3 %
EBITDA
Organic
-1.6 %
5.7 %
5.2 %
-1.0 %
-2.9 %
2.4 %
-8.9 %
-4.8 %
11.1 %
9.9 %
13.0 %
-15.7 %
0.2 %
Organic growth YoY in fixed currency and adjusted for acquisitions and disposals.
EBITDA before other items.
Reported
-6.9 %
2.9 %
41.6 %
-1.7 %
-5.3 %
-2.8 %
-6.9 %
-5.4 %
13.0 %
22.2 %
3.9 %
-37.0 %
-1.4 %
Organic
-6.9 %
11.2 %
49.6 %
3.3 %
1.2 %
3.1 %
-6.1 %
2.6 %
16.7 %
25.3 %
15.6 %
-37.0 %
2.5 %
Q1 2017
DEBT MATURITY PROFILE (NOK BN)
Net debt in partly-owned subsidiaries:
NOK bn
Subsidiaries
Telenor ASA
Q1 2017
Q4 2016
Q1 2016
Digi
4.1
3.7
2.4
dtac
7.8
7.4
7.6
Grameenphone
1.4
2.6
2.7
16.8
1.7
2.7
9.3
8.9
6.7
1.9
4.1
2017
39
2018
2019
2020
Per 31 Mar 2017. Net debt in partly-owned subsidiaries shown on 100% basis.
11.5
1.1
6.9
1.2
2021
4.6
4.5
2022
2023
2024 ->
Q1 2017
BALANCE SHEET AND KEY RATIOS
Q1 2017
Total assets
40
Q4 2016
Q1 2016
209.5
206.2
205.0
Equity attributable to Telenor ASA
shareholders
54.8
50.9
62.0
Gross debt*
85.5
86.4
75.0
Net debt
53.7
54.4
53.6
Net debt/EBITDA
1.2
1.2
1.2
Return on capital employed**
7%
8%
8%
*) Gross debt = current interest bearing liabilities + non-current interest bearing liabilities
**) Calculated based on an after tax basis of the last twelve months return on average capital employed
Q1 2017
NET DEBT RECONCILIATION
NOK bn
Q4 2016
Q1 2016
Current interest bearing liabilities
32.5
26.0
8.6
Non–current interest bearing liabilities
53.0
60.4
66.4
Less: licence obligations
(2.6)
(4.9)
(3.6)
Debt excluding licence obligations
82.9
81.5
71.4
(26.1)
(23.1)
(14.0)
Investments in bonds and commercial papers
(1.0)
(1.7)
(0.9)
Fair value hedge instruments
(2.1)
(2.3)
(2.9)
Net interest bearing debt excl. licence obligations
53.7
54.4
53.6
Cash and cash equivalents
41
Q1 2017
Q1 2017
FREE CASH FLOW
NOK millions
Q4 2016
Q1 2016
Net cash flows from operating activities
9 163
9 190
11 216
Net cash flows from investing activities
-5 372
-6 106
-9 372
-149
-218
-956
- 1 133
-944
-963
-343
-413
-694
2 166
1 509
-769
Repayments of borrowings - license obligations
Repayments of borrowings – supply chain financing
Dividends paid to and purchase of share from noncontrolling interest
Free cash flow to equity
42
Q1 2017