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+
One of the world's largest mobile operators Vodafone China Mobile Singtel Telefonica China Unicom America Movil 83 115 143 153 T-Mobile Telenor 22 31 53 Orange 2002 2003 2004 2005 2006 08 TeliaSonera 0 50 100 150 200 250 300 350 400 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
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 2008-1 % Q3 07 Q4 07 08 08-3 % 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
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 0 100 200 300 400 500 6 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
Funding Oslo, 14 October 2008 European Telecom 5 yr CDS spread development
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
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 4,0 07 07 Q3 07 Q4 07 08 08 0,8 0,9 0,3 0,2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017- *) 12 months rolling EBITDA excl Kyivstar Net debt/ebitda incl Kyivstar was 1.0 as of 30 June 2008 14
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
ARPU development (USD) Mobile Norway Mobile Denmark Mobile Sweden 60 63 64,4 62,2 61 64,4 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 Q4 2008 2008 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 Q4 2008 2008 FX as of 30.06.2008 17 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 30.06.2008 18
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 % 07 07 Q3 07 Q4 07 08 08 07 07 Q3 07 Q4 07 08 08 All figures in fixed currency and adjusted for acquisitions and disposals Reported P&L (NOKm) 08 07 Revenues 23 837 23 155 92 473 EBITDA 7 206 7 318 29 257 EBIT 3 877 3 852 14 985 Associated companies 1 850 795 6 462 Net financials (520) (811) (1 476) Profit before taxes 5 207 3 836 19 971 Taxes (1 232) (490) (2 168) Net income to Telenor 3 536 3 253 18 016 EPS (NOK), diluted 2.11 1.93 10.71 20
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 2008. EBITDA before other items. 21