Highlights. DnB NOR Markets Investment grade seminar

Transcription

1 DnB NOR Markets Investment grade seminar Oslo, 14 October 2008 Highlights One of the world s largest mobile operators Underlying revenue growth above sector average Strong cash flows from domestic operations Attractive positions in CEE and Asia Continued growth from increased usage and mobile broadband in low penetrated markets Stable credit rating from Moody s A-2 and S&P BBB+

2 One of the world's largest mobile operators Vodafone China Mobile Singtel Telefonica China Unicom America Movil T-Mobile Telenor Orange TeliaSonera mill Number of mobile subscribers in million, based on total group figures 08 (source: Wireless Intelligence). Operators only included in group if ownership is 20% or more Majority positionsexecuted on control or exit strategy Minority positions Norway Telenor Mobil Sweden Telenor Sweden Denmark Sonofon Hungary Pannon Montenegro Promonte Serbia Telenor Serbia Ukraine Kyivstar Bangladesh Grameenphone Thailand DTAC Pakistan Telenor Pakistan Malaysia DiGi CEE 84 mill mobile subscribers 21% of Group revenues* 33% of Group EBITDA* Nordic 6.5 mill mobile subscribers 23% of Group revenues* 20% of Group EBITDA* Asia 63 mill mobile subscribers 26% of Group revenues* 29% of Group EBITDA* Russia VimpelCom * Before eliminations and including Kyivstar, 2008

3 Strong regional positions NORDIC Strong cash flow from domestic operations Retail growth offsetting wholesale loss in Mobile Norway Focus on increased cost efficiency in all operations Mobile broadband rollout in all countries CEE SIM penetration saturating but continued growth in real penetration Increasing usage driving ARPU in Russia and Ukraine Excellent performance in Kyivstar 3G/HSPA launched in Hungary, Serbia and Montenegro ASIA Largest global mobile operator in Asia Number 2 in 3 years in Pakistan Solid operating cash flow in Malaysia High inflation rates Intense competition in Bangladesh and Pakistan 3G to be launched Revenue growth above sector average 12 % 12 % Nordic: 0% 7 % 7 % CEE: +11% 3 % 3 % Asia: +20% 1-2 % 1-2 % YoY underlying revenue growth in % Q3 07 Q % Reported Underlying incl Kyivstar* European telecoms** * Underlying revenue growth is defined as adjusted for acquisitions and disposals and currency effects ** JP Morgan underlying revenue growth estimate for European telecom sector

4 Continued growth from increased usage Mobile penetration (08) MoU (08) Norway Denmark Sweden Montenegro Malaysia Ukraine Hungary Serbia Thailand Pakistan Bangladesh DTAC Grameenphone Telenor Norway DiGi Telenor Sweden Telenor Denmark Telenor Pakistan Pannon Kyivstar Promonte Telenor Serbia 0 % 50 % 100 % 150 % 200 % Real penetration SIM penetration 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 Funding Oslo, 14 October 2008 European Telecom 5 yr CDS spread development

6 Credit ratings and outlook Standard & Poor s Long term BBB+ stable outlook Short term A-2 stable outlook Moody s Investors Service Long term A2 stable outlook Short term P-1 stable outlook Financial Policies Long-term credit rating target of single-a Dividend policy of 40 60% of normalised net income Forex balance sheet exposure partly hedged Committed major cash flows in foreign currency hedged Minimise liquidity risk through ensuring access to a diversified set of funding sources

7 Funding Sources Committed lines EUR 1.500m maturing May 2012 EUR 1.000m maturing July 2013 Uncommited lines EUR 7.500m EMTN Programme EUR 1.000m ECP Programme USD 1.000m USCP Programme Domestic CP and Bond market Debt maturity profile Net interest bearing debt (NOK bn) / net debt/ebitda* Debt maturity profile (NOK bn) 42,3 46,4 40,2 39,9 35,7 41,6 2,6 Group Treasury 1,7 Subsidiaries 0,4 1,3 1,5 1,3 1,4 1,2 1,4 3,6 7,0 6,1 1,3 0,3 8,0 3,2 2,3 4,0 2,2 4, Q3 07 Q ,8 0,9 0,3 0, *) 12 months rolling EBITDA excl Kyivstar Net debt/ebitda incl Kyivstar was 1.0 as of 30 June

8 Summary One of the world s largest mobile operators Underlying revenue growth above sector average Strong cash flows from domestic operations Attractive positions in CEE and Asia Continued growth from increased usage and mobile broadband in low penetrated markets Stable credit rating from both Moody s A-2 and S&P BBB+ Appendix

9 ARPU development (USD) Mobile Norway Mobile Denmark Mobile Sweden ,4 62, ,4 48,6 47,8 46,1 45,4 44,8 45,7 46,6 50,3 47,1 46,9 46,3 47,6 Q3 Q4 Q3 Q4 Q3 Q Kyivstar Pannon Promonte 8,5 9,4 9,2 8,8 9,6 30,6 30,7 31,6 31,0 27,8 28,8 24,7 28,4 26,4 21,0 22,9 22,6 7,5 Q3 Q4 Q3 Q4 Q3 Q FX as of ARPU development (USD) Telenor Serbia Telenor Pakistan DiGi 15,3 16,1 16,8 15,4 15,2 16,2 4,1 4,1 3,8 3,8 3,7 3,5 18,1 17,7 18,2 18,7 17,9 18,0 Q3 Q4 Q3 Q4 Q3 Q4 DTAC Grameenphone 12,2 11,4 10,8 10,4 10,3 9,5 5,4 4,9 4,6 4,4 4,2 3,7 Q3 Q4 Q3 Q4 FX as of

10 Revenue and EBITDA development Revenues (NOK bn) EBITDA (NOK bn)/ebitda% 24,4 25,6 26,2 26,3 26,1 27,4 8,2 8,9 9,2 8,8 8,9 9,2 34 % 35 % 35 % 34 % 34 % 34 % Q3 07 Q Q3 07 Q All figures in fixed currency and adjusted for acquisitions and disposals Reported P&L (NOKm) Revenues EBITDA EBIT Associated companies Net financials (520) (811) (1 476) Profit before taxes Taxes (1 232) (490) (2 168) Net income to Telenor EPS (NOK), diluted

11 Outlook for 2008 Reported revenue growth: Around 3% Underlying revenue growth Around 6% EBITDA margin Above 31% CAPEX/Sales: Around 20% Outlook on reported figures (excl Kyivstar), assuming Group structure and exchange rates as of 30 June EBITDA before other items. 21