First quarter results 2019 24 May 2019 Eivind Helgaker (CEO) and - - PowerPoint PPT Presentation

16th June 2017

First quarter results 2019

24 May 2019 Eivind Helgaker (CEO) and Henning Karlsrud (CFO)

Financials

Henning Karlsrud

Chief financial officer

2

Agenda

Introduction

Eivind Helgaker

Chief executive officer

Summary &

• utlook

Eivind Helgaker

Chief executive officer

1 2 3

Ice Group in brief

Brands Attractive assets Smartphone subscriptions market share development* Smartphone + mobile broadband

Mobile broadband 0.9% Q4-18 Q2-15 7.7%

• Pure 4G Nokia network
• Attractive spectrum portfolio
• Low cost base

~443k subs as of Q4-18 Revenue mix 2018

90% 10% Norway Sweden & Denmark 72% 28% Smartphone Mobile broadband

1

*Source: Nkom figures B2C: 9.4%

3

Summarised:

Ice Group’s strategy

Continued network roll-out to achieve economics of scale

• Build approx. 1,500 – 2,000 Nokia base stations by end-2020
• Expand smartphone network to 95% population coverage
• Transmit >90% of data traffic through own 4G network

Build a trusted and customer-focused brand

• Become Norway’s most recommended mobile tele-

communications company to buy services from and work for

• Operate as a trusted, bold and fair service provider, and

share with our customers

Leverage multiple growth and margin levers

• Further increase market share and ARPU
• Increased focus on higher data usage segments

1 2 3 4

5

First quarter highlights and main developments

Highlights in Q1 2019:

• 12% increase in smartphone service

revenues

• Smartphone subscription growth of

14k in the quarter

• NOK 1.5 billion private placement
• Sale of Swedish operation for SEK

180 million

• Announced acquisition of Komplett

Mobil’s customer base

• Launch of “Data Freedom” product

6

Q1 2019 | Key figures: smartphone development

50 100 150 200 250 300 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

Smartphone service revenues (NOK million)

457 thousand

Smartphone subscriptions

+12.5

% vs. Q1 2018

Smartphone service revenue

288 NOK million +12

% vs. Q1 2018

100 200 300 400 500 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

• No. of smartphone subscriptions (thousand)

7

Q1 2019 | Key figures: network development

1873

Operational smartphone sites*

+432

vs. Q1 2018

On-net data and VoLTE traffic

71 16

% VoLTE share

200 400 600 800 1000 1200 1400 1600 1800 2000 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

Operational smartphone sites *In 800, 900, 1,800 or 2,100 MHz frequency bands

base stations

10 20 30 40 50 60 70 80 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

• •Average data on-net share • VoLTE share (%)

% average data

• n-net share

8

Events subsequent to the first quarter

Photos: Oslo Børs/Stein Henningsen, Komplett Mobil

Closed acquisition of Komplett Mobil’s customer base

25 April 2019

Awarded sole national license of 2 x 5 MHz in 450 MHz band

3 May 2019

Successful listing of Ice Group ASA shares

• n Oslo Axess

20 May 2019

Winner of best customer service centre awards

25 April 2019

Financials

Henning Karlsrud

Chief financial officer

9

Agenda

Introduction

Eivind Helgaker

Chief executive officer

Summary &

• utlook

Eivind Helgaker

Chief executive officer

1 2 3

Service revenues and EBITDA

50 100 150 200 250 300 350 400 450 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* Total service revenues Smartphone service revenues

Service revenues (NOK million) EBITDA** (NOK million)

*Numbers from the divested Swedish operation are included in the 2018 figures for Total service revenues and EBITDA, while only two for months in 2019. **Ice Group defines EBITDA as operating profit after adjustment of operating expenses for depreciation, amortisation, impairment network upgrades, share based compensation expense, non-recurring and other non-operational items. Any effects from business combinations are not included. For details, see the section on Alternative Performance Measures and definitions

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19*

• 50%
• 40%
• 30%
• 20%
• 10%

0%

• 100
• 90
• 80
• 70
• 60
• 50
• 40
• 30
• 20
• 10

EBITDA** Margin %

10

11

Income statement

NOK million Q1 2019 Q1 2018 FY 2018

Service revenue 375 361 1,539 Other operating revenue 82 21 121 Total operating revenue 457 381 1,660 National roaming expenses

• 97
• 117
• 434

Other operating expenses

• 405
• 356
• 1,461

Depreciation and amortisation

• 102
• 104
• 465

Operating result (EBIT)

• 148
• 196
• 701

Net financial income/expenses

• 129
• 112
• 352

Profit/loss before tax

• 276
• 308
• 1,052

Income taxes 1

• 3
• 8

Net result from continuing operations

• 276
• 310
• 1,060

Net result from discontinued operations

• 9
• 171

Net result for the period

• 276
• 319
• 1,231

EBITDA

• 65
• 88
• 180

Earnings per share (NOK)

• Basic from continuing operations
• 1.68
• 2.45
• 8.37
• Diluted from continuing operations
• 1.66
• 2.39
• 8.23
• 4% increase in service revenues

(smartphone + mobile broadband), and 9% excluding Sweden

• 17% reduction in NRA expenses
• EBITDA improved by 26%, EBITDA

margin by 9%-points

• Net result improved by 13.5%
• 31% improved EPS (from continuing
• perations)

12

Balance sheet

NOK million 31.03.2019 31.03.2018 31.12.2018 ASSETS Intangible assets 1,279 2,688 1,344 Tangible assets 2,095 2,692 2,603 Other non-current assets 320 478 335 Deferred tax assets 1 Total non-current assets 3,694 5,858 4,282 Inventory 9 45 20 Trade receivables 168 95 127 Other receivables 48 118 31 Prepaid expenses and accrued income 11 55 63 Cash and cash equivalents 1,496 438 275 Total current assets 1,730 751 516 TOTAL ASSETS 5,424 6,609 4,799 NOK million 31.03.2019 31.03.2018 31.12.2018 EQUITY AND LIABILITIES Equity attributable to parent company shareholders

• 29

315

• 1,258

Equity attributable to non-controlling interests

• 461

TOTAL EQUITY

• 29

775

• 1,258

Borrowings 3,654 3,020 3,672 Non-current liabilities 1,155 1,622 1,625 Provisions for deferred tax 9 327 10 Total non-current liabilities 4,819 4,969 5,307 Trade payables 206 205 242 Current lease liabilities 56 68 66 Other liabilities 15 96 20 Accrued expenses & deferred income 357 495 421 Total current liabilities 635 864 750 TOTAL LIABILITIES 5,424 5,834 6,057 TOTAL EQUITY AND LIABILITIES 5,424 6,609 4,799

13

Cash flows

NOK million Q1 2019 Q1 2018 FY 2018

Cash flows from operating activities

• 215
• 184
• 257

…from costs to obtain/fulfil customer contracts

• 38
• 47
• 187

…from discontinued operations

• 6

55 Cash flows from operating activities

• 253
• 237
• 389

Cash flows from investing activities

• 127
• 140
• 460

…from divestment of Sweden 166

• …from divestment of Nextel Brazil
• 563

…from discontinued operations

• 101
• 72

Cash flows from investing activities 39

• 39

31 Cash flows from financing activities 1,435

• 31
• 144

…from discontinued operations

• 142
• 106

Cash flows from financing activities 1,435

• 173
• 250

Net change in cash and bank deposits 1,221

• 448
• 607
• Cash flow from operating activities

positively affected by lower NRA cost, adversely impacted by higher number of live base stations

• Positive cash contributions from

divestment of Sweden (NOK 166 million) and completed private placement (NOK 1.468 million)

14

IFRS 16 impact

NOK million

Reported 31 Mar 2018 Change IFRS 16 Restated 31 Mar 2018 Reported 31 Dec 2018 Change IFRS 16 Restated 31 Dec 2018 Reported 31 Dec 2017 Change IFRS 16 Restated 1 Jan 2018

Statement of financial positions Closing balance Q1 2018 Closing balance FY 2018 Opening balance 2018 Total assets 5,134 1,475 6,609 3,279 1,520 4,799 5,655 1,593 7,248 Equity 1,017

• 242

775

• 992
• 266
• 1,258

1,358

• 241

1,117 Liabilities 5,134 1,475 6,609 3,279 1,520 4,799 5,655 1,593 7,248 Statement of income Q1 2018 Full-year 2018 Total revenue 381

• 381

1,660

• 1,660

Total operating expenses

• 526

52

• 473
• 2,103

208

• 1,895

Depreciation, amortisation

• 79
• 24
• 104
• 369
• 96
• 465

Operating result

• 224

28

• 196
• 813

112

• 701

Net financial items, tax

• 79
• 35
• 114
• 220
• 139
• 359

Net result, continuing operations

• 303
• 7
• 310
• 1,033
• 27
• 1,060

EBITDA

• 140

52

• 88
• 388

208

• 180

Financials

Henning Karlsrud

Chief financial officer

15

Agenda

Introduction

Eivind Helgaker

Chief executive officer

Summary &

• utlook

Eivind Helgaker

Chief executive officer

1 2 3

16 16

Our path to medium-term and long-term value creation

>20% subscriber share1 >25% ~NOK300 ARPU1,2 2.5% p.a. LT growth mid-30% EBITDA margin mid-40% ~10% capex / sales ~10%

Our 4 medium-term and long-term targets

Source: Company information (1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User

MT LT

Guidance & outlook

• Smartphone network build-out key to

Ice Group’s business plan:

• On track to introduce between 400 and 600

new base stations by the end of 2019

• By the end of 2020: ambition is to have

increased the total amount by between 1,500 and 2,000 live base stations

• NRA cost in 2019 of approximately

NOK 400 - 450 million

• Expect continued smartphone

subscription growth in coming quarters

17

Summary Q1 2019

• Solid and award-winning operational

performance

• Improved financial performance
• More robust financial position
• On track to realise 3rd nationwide

smartphone network

18

19

Disclaimer

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