ice: the high growth Norwegian 4G challenger

Transcription

1 ice: the high growth Norwegian 4G challenger Company Presentation January 21, 2019

2 Disclaimer I:II IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, OR FROM OR TO ANY RESIDENT, ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. NO ACTION HAS BEEN TAKEN TO PERMIT THE DISTRIBUTION OF THIS DOCUMENT. THIS DOCUMENT IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES. By reading this company presentation (the Presentation ), or attending any meeting or oral presentation held in relation thereto, you agree to be bound by the following terms, conditions and limitations. This Presentation has been prepared by Ice Group ASA. FOR INFORMATION PURPOSES ONLY. The Presentation is prepared for information purposes only. This Presentation is not a prospectus, including for the purposes of Directive 2003/71/EC, as amended (together with any applicable implementing measures in any Member State). The Presentation does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of the Company in any jurisdiction, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. NO VERIFICATION. The information is this Presentation is limited and does not purport to be complete or contain the information that would be required to evaluate the Company, its financial position and/or any investment decision. No action has been taken to verify its content. NO UPDATES. Nothing contained in this Presentation is or should be relied upon as a promise or representation as to the future. Except where otherwise expressly indicated, the Presentation speaks as of the date hereof. Neither the delivery of this Presentation nor any purchase of any of the securities, assets, businesses or undertakings of the Company shall, under any circumstances, be construed to indicate or imply that there has been no change in the affairs of the Company since the date hereof. In addition, no responsibility or liability or duty of care is or will be accepted by the Company for updating the Information (or any additional information), correcting any inaccuracies in it which may become apparent or providing any additional information. The Presentation is necessarily based on economic, market and other conditions as of the date hereof or otherwise as stated herein. It should be understood that subsequent developments may affect such information and that the Company has no expectation or obligation to update or revise such information. SOURCES. Information provided on the market environment, market developments, growth rates, market trends and on the competitive situation in the markets and regions in which the Company operates is based on data, statistical information and reports by third parties and/or prepared by the Company based on its own information and information derived from such third-party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. Unless otherwise stated, the Company is the source for information contained herein. 2

3 Disclaimer II:II FORWARD LOOKING STATEMENTS. Matters discussed in this Presentation may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as believe, expect, anticipate, intends, estimate, will, may, continue, should and similar expressions. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; and developments in the Company s markets. The forward-looking statements in this Presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management s examination of historical operating trends, data contained in the Company s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of the Company or the industry to differ materially from those results expressed or implied in this document by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved and you are cautioned not to place any undue influence on any forward-looking statement. THE INFORMATION WITH RESPECT TO ANY PROJECTIONS OR FUTURE TARGETS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. RISKS ASSOCIATED WITH THE COMPANY. The recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company s business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions. An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. For a description of relevant risk factors we refer to the Company s prospectus dated 27 November 2017 available on the Company s webpage Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. GOVERNING LAW. This Presentation and any distribution and use of this Presentation shall be governed by and construed in accordance with Norwegian law. The courts of Norway, with Oslo as legal venue, shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with the distribution and use of this Presentation. 3

4 ice the high growth Norwegian 4G telecom challenger Revenue mix (first 9 months of 2018) 11% 89% Norway Sweden & Denmark 30% 70% Smartphone MBB 1 Brand Smartphone + MBB 1 MBB 1 MBB 1 Currently conducting a strategic review for the business in Sweden Revenue (first 9 months of 2018) 2 ~NOK1.23bn Attractive assets Pure 4G network Attractive spectrum portfolio Low cost base 7.4% Revenue growth (first 9 months of 2018 Y-o-Y) 2 ~30% Smartphone subscriptions market share development 0.9% Q2-15 Q2-18 ~436k subs as of Q3-18 Source: Company information, NKOM (1) MBB = Mobile Broadband (2) Ice Group ASA 4

5 Our path to medium-term and long-term value creation Our 4 medium-term and long-term targets MT >20% ~NOK300 mid-30% ~10% subscriber share 1 ARPU 1,2 EBITDA margin capex / sales LT >25% 2.5% p.a. LT growth mid-40% ~10% Source: Company information (1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User 5

6 ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 6

7 1 Attractive, growing Norwegian macro and mobile market Rich and growing economy... GDP per head at nominal value (NOK'000, 2017) 1 Real GDP growth '17-'21E (CAGR %) 2..supporting mobile market growth Total mobile market value in Norway 4 (NOKbn) USD equivalent % p.a. 19, ,8 +1.9% p.a. +1.7% p.a. ~$2.0bn ~$2.4bn EU-15 3 Source: NKOM, EIU, Analysys Mason (1) 2017 average FX rate: US$/NOK= Adjusted for Purchasing Power Parity (PPP) (2) CAGRs are not affected by FX (i.e. data based on local currency or converted at constant FX). Real GDP constant US$ at 2005 prices as estimated by the EIU (3) EU-15 countries include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom (4) Measured as end-user revenue. Mobile services comprise mobile telephony, MBB and M2M 7

8 1 Norway characterized by high and growing ARPU and strong mobile data upside A high ARPU market mobile service ARPU (NOK/month) 2017 yearly mobile service ARPU/nominal GDP per head (%) % 0.5% 4 Blended Postpaid Blended Expected data growth underpins further ARPU growth Avg. data consumption per user (GB/connection/month) '17-'21E CAGR (%) 27.6% 26.1% 23.6% 31.9% 30.3% 38.3% 13,8 6,4 Implied ~3x data usage in 2021e 4,7 3, ,3 2,4 EU-15 3 Growing ARPUs 2 - CAGR illustrates a more for more market Smartphone postpaid ARPU benchmark (NOK Q2 18) EU-15 3 Mobile service ARPU evolution ( CAGR) 1.5% 2.5% Ice Medium-term target: NOK Blended Postpaid 4-2.0% Blended EU-15 3 Ice Blended Telenor and Telia 5 Source: NKOM, Analysys Mason, Company, Telenor, Telia (1) 2017 average FX rate: US$/NOK= For ARPU yearly average FX rate for historical periods and US$/NOK= for 2017 as provided by Analysys Mason. Excluding M2M SIMs (2) CAGRs are not affected by FX (i.e. data based on local currency or converted at constant FX) (3) EU-15 countries include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom (4) Excludes MBB. Prepaid tariffs excluded based on Telenor and Telia reported figures. International roaming included in postpaid (5) Estimated based on Telenor and Telia reported figures, in addition to reported NKOM figures for MBB subscribers and revenue as of 1H

9 1 Regulatory support for a competitive third network operator that can challenge the duopoly #3 player supported by government and regulator Remedies received from Telia after acquisition of Tele2 Proposed spectrum caps in upcoming auctions Telenor regulated as a dominant player Telenor fined NOK788m for abusing market power and hindering establishment of a third player in Telenor fined by regulator for violating ban on winbacks "The Government considers it important to facilitate the establishment of at least three independent mobile providers in the Norwegian mobile market, thereby reducing the need for special regulation Source: Company information, NKOM, Regjeringen, Konkurransetilsynet 9

10 ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 10

11 2 We are winning market share Overall smartphone subscriptions market share in (%) B2C 2 smartphone subscriptions market share in (%) Smartphone subscriber base (k) 7.4% 8.9% 1 >20% MT target >25% LT target 5.1% B2C offering launched in June % 0.9% 0.0% Q2-15 Q2-16 Q2-17 Q2-18 Smartphone subscribers as of Q3-18: 436 Source: Company information, NKOM (1) ice's mobile subscriptions (Norway only) as of 1H 2018 divided by the total number of mobile subscriptions in Norway as of 1H 2018 as reported by NKOM. ice's mobile subscriptions correspond to ice's smartphone subscriptions only (2) B2C = Business to Consumer 11

12 2 Our market share targets are in line with other 3 player markets Top 3 players' Q mobile subscriptions market share in 3 player markets (%) #3 #1 / #2 Average: 26% 7% 28% 30% 27% 26% 18% 86% 70% 70% 72% 74% 82% Tele2 had ~19% market share in Norway as the #3 player (without frequency portfolio) prior to the frequency auction in December 2013 Source: Ovum 12

13 2 We put the customer first in everything we do We surveyed customers first and subsequently addressed their needs Quality & reliable Product portfolio Touchpoints Innovation Easy 1 2 Launched Data Roll-over Launched Data Roll-over sharing 5 6 New smartphone app for consumers Redesigned MyPages self-service, improved and optimized customer service operations Reputation 5 Fair & honest 7 Revision of prices and launch of new price plans 3 Try & Buy customer can try for two months before deciding on appropriate data plan Network & IT Control Value 4 Improved international bilateral roaming 8 Improved perceived service quality Helpful 9 Optimise IT back-end systems Expectations Source: Company information 13

14 2 Our customer-focused strategy is working High NPS of 11 1 Comparison of ice s NPS to main competitors Average score difference 2017-Q Taking subscribers from the duopoly B2C net additions 2016 and 2017 (000) 3 Gross add market share (%) Lower churn than competitor B2C churn 2017-Q (%) % 31% 33% % 25% vs. vs. 5 Source: Company information, Telia annual report, ice tracker/norstat panel data (1) NPS score in September 2018 (2) NPS = Net Promoter Score. Based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague on a 0 to 10 scale? 9 to 10 are called Promoters, 0 to 6 are labelled Detractors, 7 and 8 are labelled Passives. The NPS is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters (source: ice tracker/norstat panel data) (3) For Norway only. Based on latest available statistics from NKOM (4) Churn is defined as the percentage of subscriptions who move their subscription from one operator to another or cancels the subscription. Telenor does not report churn for Norway (5) Blended churn including smartphone and MBB 14

15 2 Our smartphone ARPU is growing steadily Development in blended smartphone ARPU (NOK) Our Monthly Recurring Fee (MRF) has increased by 20% since Q1-17 (~13% annualized growth rate) Increased smartphone subscriber base by 62% in the same period Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Other (variable component) affected by extraordinary events in the market (roam-like-at-home, 5-digit numbers, reduced interconnection fees, etc.) Other Monthly Recurring Fee (MRF) Source: Company information, Telia annual report, ice tracker/norstat panel data (1) Blended = B2C and B2B 15

16 Ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 16

17 3 We see a significant opportunity in the high usage segments and we now have the tools to address this segment Smartphone market breakdown and market share by segment 1 Tools to address high usage segment Ice market share by subscribers (%) 7.4% Overall market share Smartphone market breakdown (%) 100% 100% 1 Competitive products and price plans 2 Expand device financing 3.1% B2B 2, High usage B2C (postpaid) and prepaid 62% 73% 3 Presence in retail chains 4 Strong customer care 14.5% Low usage B2C (postpaid) 38% 27% 5 Growing brand awareness By subscribers By revenue 6 B2B specific solutions B2B, High usage B2C (postpaid) and prepaid Low usage B2C (postpaid) Source: NKOM, Management estimates (1) Estimated market share in Norway based on total mobile market size as reported by NKOM as of 1H Estimated market size for Low usage B2C (postpaid) assumes that the share of subscribers in the postpaid B2C market with 5GB price plans or more (as reported by NKOM) is classified as high ARPU customers. Revenue market share estimated based on the following assumptions: 1) Prepaid market size estimated based on weighted average ARPU for Telenor and Telia prepaid subscribers as of 1H 18, 2) High ARPU customers (above 5 GB) assumed to have an average ARPU of NOK 402, and 3) Ice revenue based on annualized 1H 18 smartphone revenue. (2) Business to Business 17

18 3 We are successfully increasing the share of higher price plans in our base Share of >2 GB price plans increasing as a share of total smartphone subscribers (B2C) New sales mix (B2C) 1 19% 20% 23% 22% 67% 43% 35% 33% 17% 12% 12% 33% 8% 16% 38% 12% 12% 14% 44% 13% 45% 15% 34% 61% 21% 14% 18% 20% Jun-16 Jun-17 Jun-18 Sep-18 Q MB 1 GB 2 GB 3 GB 4 GB and higher Source: Company information 1) Excluding Bli Kjent which represented ~34% of B2C new sales in Q

19 3 Strong visibility on ~80% of our medium-term ARPU uplift to NOK300 Smartphone ARPU bridge (NOK) Accomplished if recent trading continues 7 Additional growth Current new sales mix implies an uplift in B2C segment Existing customers trade up to higher price plans (~NOK2 per quarter) 9% of portfolio is B2B with ARPU of NOK358 Increased share of higher usage B2C and B2B Market growth B2C ARPU New sales (B2C) Existing customer upgrades (B2C) Constant B2B share and ARPU Required uplift Target ARPU Source: Company information Note: Analysis based on Q2-18 figures 19

20 Ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 20

21 4 We are younger and enjoy structural cost advantages Mobile operations launched s 1990s Less complexity, opex and capex Agile, fast, smart New core cloud BTS 2 ~4k 1 ~8k ~5k Fewer BTS due to use of low frequencies ~ NOK m lower opex p.a. Technology 4G 2G / 3G / 4G 2G / 3G / 4G One technology reducing complexity 4G most throughput / cost Brands More efficient marketing Lower cost FTEs 3 ~ ~3,500 ~1,250 ~ NOK1bn lower opex p.a. than #2 player Source: Companies' Q2-18 annual reports (1) At full scale in medium-term (after network roll-out) (2) Base Transceiver Stations (3) Full Time Employees 21

22 4 Our nationwide scalable network roll-out is expected to drive our margins up % We plan to cover 95% of population 1,2 Operational sites (all bands, Norway) Smartphone population coverage (Norway) 3,800 4,000 and to capture +90% of data traffic On-net share of data traffic (%) +90% 1 Key customer and margin benefits - Save on NRA costs 59% 64% 2 - Increased independence and commercial flexibility Q3-15 Q3-16 Q3-17 Q target Q % Q3-17 Q3-18 Oct-18 Target mediumterm 3 - Enhanced customer experience 24% 50% 63% 83% 95% 4 - Already contracted 5G ready 0% equipment Source: Company information (1) Contracted sites amount to 2,087 as of Q3-18 and include sites which are in service, ready for installation/swap, CW completed, waiting for reinstallation with the contract signed (2) Excluding 400 picocells which would come in addition 22

23 4 Our spectrum is cost efficient and we have spare capacity Attractive spectrum portfolio with substantial spare capacity Frequency band (MHz) ,800 Total Amount 450 2x5 2x10 2x5 2x20 90 Duration ,100 2x Both coverage and capacity frequencies Technology neutral frequencies which can be used for 5G Upcoming auctions for 700MHz, 2.1GHz and higher frequencies. Proposed caps on Telenor and Telia: max. 1/3 of 700MHz and no 2.1GHz MHz/Subs (k) 1 Share of sub 1GHz smartphone frequencies (%) 0,18 0,08 0, European telcos 2 23% 38% 38% n.a. # of BTS required to cover the same area as one 700MHz BTS 3 Low frequency spectrum underpins cost and capex advantages MHz 1,000 MHz 2,000 MHz 2,600 MHz ice with initial focus on 800MHz in its network roll-out Low frequencies enable a «build as you grow» strategy as fewer sites are needed to add coverage Continuously evaluating to add capacity or base station if traffic is yielding strong ROCE in a specific area Source: Company information, NKOM, spectrummonitoring.com (1) As of Sep-18, including smartphone and MBB subs (2) Including Tele2 (Sweden), Vodafone (Germany), Telefonica (Germany), T-Mobile (Germany), Altice, Orange, Bouyges, Iliad, T-Mobile (Poland), Play, Orange (Poland), Telefonica (Spain), Masmovil, Vodafone (Spain), Orange (Spain) (3) BTS = Base Transceiver Station 23

24 4 Significant operating leverage from new cost structure and scale Illustrative cost base split % of sales 130 NRA 3 Roaming 3 54 Reduced NRA costs Commissions Mid 30s% EBITDA margin Customer operations Other 2 35 Network / IT Marketing Employees 41 Increased network costs Economies of scale 1H-18 Pro forma (1H-18) Medium-term 1 Variable costs Semi-fixed costs Fixed costs Source: Company information Notes: 1 Assuming 2,000 additional sites and NOK 95k in opex per site added to Network / IT opex. NRA assumed at 6% of sales 2 Includes CPE, Consultants, Sweden and Denmark and other 3 NRA = national roaming agreement, i.e. use of Telia s network in Norway. Roaming is customers usage of services abroad 24

25 Ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 25

26 5 Mid-30s and Mid-40s EBITDA margin targets (medium and long-term) Long-term mid-40s% +17% Medium-term mid-30s% +3% (3)% Pre-NRA EBITDA is already at breakeven c.(29)% c.+32pp c.(6)pp c.+20pp Adj. EBITDA margin 1H-18 NRA 1H-18 Medium/long-term NRA assumption SAC normalized (>30% currently) 1 Scale benefits, ARPU uplift and gross profit from net adds Adj. EBITDA margin target Source: Company information (1) Subscriber Acquisition Cost 26

27 5 Our mid-30s% medium-term EBITDA margin target leaves upside vs. peers Significant headroom to achieve higher adj. EBITDA margins 1 % EBITDA Margin, 9m-18 Norway % EBITDA Margin, 9m-18 3 operator markets 43% 38% Avg. 40% 47% Avg. 39% 34% 34% 2 2 Norway #3 player in 3 operator markets Source: Companies' Q3-18 reports (1) Considering total figures on a country level (i.e. including fixed line, broadband and TV when applicable) (2) H1-18 figures for Salt and WindTre 27

28 5 Normalized capex/sales after 2020 expected to support free cash flow generation Spectrum portfolio and brand new network enabling low capex Capex as % of revenue Our capex target is in line with capex of peers Brand new network roll-out with 5Gready base stations (FY FY2017) 8% Before the FTTH investment in % Pure 4G-only network with less complexity and costs (vs 2G and 3G) (FY2017) Norway (FY2017) 11% 11% Legacy 2G and 3G Spectrum portfolio with low and high frequencies and substantial spare capacity Capex advantages from building with low rather than high frequencies Denmark (FY2017) Sweden (FY2015) Sweden (FY2017) 5% 7% 7% Capex / sales target of ~10% Source: Company information, peer companies annual reports 28

29 Our path to medium-term and long-term value creation Our 4 medium-term and long-term targets MT >20% ~NOK300 mid-30% ~10% subscriber share 1 ARPU 1,2 EBITDA margin capex / sales LT >25% 2.5% p.a. LT growth mid-40% ~10% Source: Company information (1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User 29

30 ice: the high growth Norwegian 4G challenger 1 Highly attractive and growing Norwegian market of ~NOK20bn 2 Strong growth track record 3 Multiple levers going forward to grow our ARPU 4 Low cost operator with structural advantages 5 Identified path to value creation and positive FCF generation Source: NKOM 30

31 Appendix

32 We have simplified our corporate structure ice group s current legal structure Previous legal structure AI Media Holdings (NMT) LLC Free float and other investors Free float and other investors 64% 36% ice group AS (OTC listed) Others ice group ASA 58% direct ownership 63% total ownership ~3% 99.8% AINMT Holdings AB AINMT Holdings AB 100% Holding companies ice group Scandinavia Holdings AS ice group International Holdings BV 30% Nextel Holdings ice group Scandinavia Holdings AS 1 Streamlined corporate structure 100% ice Norway Sale of ownership stake in Nextel Holdings 2 : US$70-75m (NOK m 3 ) sale of ice group's 30% ownership stake to Access Industries completed on 26 September NOK500m of equity injected into ice group Scandinavia Holdings AS by AINMT Holdings AB 100% ice Sweden Operating Companies De-merger from ice group of ice group's non-scandinavian assets aimed at focusing ice group on the Nordics only Improved corporate structure: N:OTC listed ice group owns 100% of Scandinavian companies 100% ice Denmark - All shareholders of AINMT Holdings AB have or will swap their shares into shares in ice group. When the de-merger was completed, all shareholders in ice group received one share in the de-merged entity for every share held in ice group 4 - The Company plans to establish a new share option program 5 Source: Company information (1) Legal names of the entities are: Ice Communication and Ice Norge (Norway); Netett Sverige (Sweden); and Ice Danmark (Denmark) (2) Nextel Holdings S.à.r.l. (3) FX US$/NOK= as of 01-Jun-18 (4) The exchange ratio based on the fair value of ice group international AS and the assets in the Company allocated in the de-merger (5) There are currently shares in AINMT Holdings AB which are not owned by ice group ASA. In addition, there are additional options related to AINMT Holdings AB which can be exercised in the future 32

33 Summary of key financials Key P&L and cash flow items 3 NOKm 2015A 2016A 2017A 9m-17 9m-18 Norway % growth 23% 49% 56% 38% % of total 79% 84% Sweden + Denmark % growth (1.2%) 6.8% (3.3%) (12.9%) % of total 21% 16% Total operating revenue , ,238.6 % growth 17% 40% 42% 29% Operating expenses (481.6) (619.8) (964.7) (686.0) (837.4) o/w NRA costs (47.3) (178.9) (394.7) (270.4) (333.1) as % of sales 58.7% 64.6% 71.7% 71.7% 67.6% Other expenses (283.9) (355.5) (624.4) (437.7) (532.5) Employee costs (139.9) (159.6) (193.8) (143.0) (160.3) Total operating expenses (905.3) (1,135.0) (1,782.9) (1,266.7) (1,530.2) as % of sales 110.4% 118.4% 132.5% 132.3% 123.5% EBITDA reported (IFRS 15) (176.1) (436.9) (309.5) (291.6) margin (%) 1.1% n.m n.m n.m n.m Non recurring items Adj. EBITDA (IFRS 15) 73.6 (108.9) (366.9) (271.2) (266.6) Adj. EBITDA Pre-NRA (IFRS 15) % margin 14.8% 7.3% 2.1% (0.1%) 5.4% Capex 4 (625.2) (684.6) (800.3) (666.5) (490.9) as % of sales 76.3% 71.4% 59.5% 69.6% 39.6% Adj. OpFCF Pre-NRA (504.2) (614.6) (772.5) (667.4) (424.4) Cash conversion (%) (416.9%) (878.0%) n.m. n.m. n.m. Adj. OpFCF Post-NRA (551.5) (793.5) (1,167.2) (937.7) (757.5) Cash conversion (%) n.m. n.m % n.m. n.m. Key highlights Revenue growth of 29% during 9m-18 Y-o-Y Adj. EBITDA Pre-NRA of NOK 66.5m during 9m-18 Continued subscriber growth, increased ARPU and on-net share during Q3-18 Source: Company information (1) 2015 reported EBITDA accounts for one-off positive effect of Network Norway acquisition (+NOK95m) (2) 2015 non-recurring items include positive effect of Network Norway acquisition (+NOK95m) (3) Group financials refer to ice group Scandinavia Holdings AS. Restated according to IFRS 15 and changes in accounting principles (4) Capex including SAC capitalizations 33

34 Consolidated balance sheet summary Ice Group ASA - Balance sheet At 30 September At 31 December At 30 September At 31 December NOK ('000) ASSETS Intangible assets 1,189,737 2,572,682 2,580,513 Tangible assets 1,495,725 1,612,477 1,515,006 Financial assets 55, , ,596 Deferred tax-assets Total non-current assets 2,741,270 4,588,005 4,287,442 Inventory 30,440 81,876 39,441 Trade receivables 96,359 93,381 83,442 Other receivables 5,461 94,982 48,953 Prepaid expenses and accrued income 92, , ,258 Assets classified as held for sale ,063 NOK ('000) EQUITY AND LIABILITIES Total equity -601,070 1,856,014 1,357,970 Borrowings 3,565,677 2,628,617 3,228,672 Deferred tax liabilities 7, , ,970 Other non-current provisions 1,331 2,711 0 Total non-current liabilities 3,574,600 2,970,904 3,575,642 Trade payables 235, , ,301 Other liabilities 27, ,868 26,317 Accrued expenses and deferred income 310, , ,856 Total current liabilities 573, , ,473 TOTAL EQUITY AND LIABILITIES 3,547,466 5,623,823 5,655,085 Cash and cash equivalents 581, , ,486 Total current assets 806,196 1,035,818 1,367,643 TOTAL ASSETS 3,547,466 5,623,823 5,655,085 Net interest bearing debt as of Q of NOK ~2,697m Source: Ice Group ASA Q report 34

35 B2C Price plan comparison 500 MB 1 GB 2 GB 3 GB 4 GB 5 GB 6 GB 8 GB 10 GB 12 GB 15 GB 16 GB 18 GB 20 GB 25 GB 30 GB 40 GB 50 GB 60 GB Fri data Yng u/ u/ u/ /ikke kunde 119/ / / / / / Source: Company information, competitor websites as of 1 December Source: Company information, competitor websites as of 6 January