results 2019 21 August 2019 Eivind Helgaker (CEO) and Henning - PowerPoint PPT Presentation

Second quarter and half-year results 2019 21 August 2019 Eivind Helgaker (CEO) and Henning Karlsrud (CFO) 16th June 2017

Agenda Summary & Introduction Financials outlook Eivind Helgaker Henning Karlsrud 3 1 2 Eivind Helgaker Chief executive officer Chief financial officer Chief executive officer 2

Ice Group in brief Mobile broadband Brands Smartphone + mobile broadband ▪ Pure 4G (5G ready) Nokia network ▪ Attractive spectrum portfolio Attractive position ▪ Low cost base Government support for 3 rd network ▪ 2.5% 1% 21% Revenue mix H1 79% 96,5% 2019 Norway Sweden Smartphone 1 Denmark Mobile broadband 3

Summarised: Ice Group’s strategy Continued network roll-out to achieve 1 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 2 ▪ Become Norway’s most recommended mobile tele - communications company to buy services from and work for Leverage multiple growth and margin levers 3 ▪ Further increase market share and ARPU ▪ Increased focus on higher data usage segments 4

Second quarter highlights and main developments Highlights in Q2 2019: ▪ 16% year-on-year increase in smartphone service revenues ▪ 79k smartphone subscription growth in quarter ▪ New frequency licenses in 450, 700 and 2,100 MHz bands, at attractive prices ▪ Oslo Axess listing ▪ Launch of the disruptive freemium “ice junior” subscription ▪ Ice ranked 2 nd in telco category of BI Norwegian Business School’s annual customer satisfaction survey “ Norsk kundebarometer ”, and climbed from 65 th to 25 th place across all industry sectors 5 Photos: Oslo Børs (top), ice (bottom)

Q2 2019 | Key figures: smartphone development Smartphone subscriptions Smartphone service revenue 536 thousand +27 319 mnok +16 % vs. % vs. Q2 2018 Q2 2018 Smartphone service revenues (mnok) No. of smartphone subscriptions (thousand) 350 500 300 400 250 200 300 150 200 100 100 50 0 0 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 6

Q2 2019 | Key figures: network development Operational smartphone sites* On-net data and VoLTE traffic 1,987 +374 72 19 base vs. % average data % average stations Q2 2018 on-net share VoLTE share •• Average data on-net share (%) • Average VoLTE share (%) Operational smartphone sites 2000 80 1800 70 1600 60 1400 50 1200 1000 40 800 30 600 20 400 10 200 0 0 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 *In 800, 900, 1,800 or 2,100 MHz frequency bands 7

Customer-friendly products/services launched in Q2 2019 ice junior ▪ Strengthens position in attractive high-ARPU family segment ▪ Long-term contributor to ARPU growth ▪ Well received by customers HD voice ▪ Available to all ice customers ▪ First operator in Norway to introduce HD voice when calling customers at other operators: ▪ Telia (100% of customers) 8 ▪ Telenor (~40% of customers)

Agenda Summary & Introduction Financials outlook Eivind Helgaker Henning Karlsrud 3 1 2 Eivind Helgaker Chief executive officer Chief financial officer Chief executive officer 9

Service revenues and EBITDA Service revenues* EBITDA** 394 319 -46 -11 % in Q2 2019 mnok total mnok smartphone mnok in Q2 2019 service revenues service revenues 450 450 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* Q2 19* 0 0% 400 400 -10 350 350 300 -20 -10% 300 250 -30 250 200 -40 -20% 150 200 -50 100 150 -60 -30% 50 -70 100 0 -80 -40% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* Q2 19* 50 -90 Smartphone service revenues 0 -100 -50% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19* Q2 19* Total service revenues continuing operations (NO+DK) EBITDA** Margin % Total service revenues Total service revenues Smartphone service revenues *Numbers from the divested Swedish operation are included in the 2018 figures for Total **Ice Group defines EBITDA as operating profit after adjustment of operating service revenues and EBITDA, while only two for months in 2019. 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 10

Income statement* mnok Q2 2019 Q2 2018 H1 2019 H1 2018 FY 2018 Service revenue 394 383 769 744 1,539 Other operating revenue 27 21 109 42 121 Total operating revenue 421 404 879 786 1,660 National roaming expenses -109 -113 -206 -230 -434 Other operating expenses -378 -341 -784 -698 -1,461 Depreciation and amortisation -116 -104 -218 -208 -465 Operating result (EBIT) -182 -154 -330 -350 -701 Net financial income/expenses -115 -42 -244 -154 -352 Profit/loss before tax -298 -196 -574 -504 -1,052 Income taxes 1 - 1 -3 -8 Net result from continuing operations -297 -196 -573 -506 -1,060 Net result from discontinued operations - 302 - 294 -171 Net result for the period -297 162 -573 -213 -1,231 *Numbers from the divested Swedish operation are included in the 2018 figures, while only for two months in 2019. **Ice Group defines EBITDA as operating profit after EBITDA** -46 -35 -111 -123 -180 adjustment of operating expenses for depreciation, amortisation, impairment network upgrades, share based Earnings per share (NOK) compensation expense, non-recurring and other non- operational items. Any effects from business combinations - Basic from continuing operations -1.68 -2.45 -2.84 -4.00 -8.37 are not included. For details, see the section on Alternative - Diluted from continuing operations -1.66 -2.39 -2.80 -3.89 -8.23 Performance Measures and definitions. 11

The increasing on-net share driving the declining trend in NRA costs despite growth in subscribers and data consumption Smartphone NRA cost development vs on-net share / # of subscriptions NRA cost (mnok) subscriptions Avg. data on-net share (%) (thousand) 600 140 120 500 100 400 80 300 60 200 40 100 20 0 0 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Avg. data on-net share Smartphone subscriptions NRA expenses 12

Balance sheet* mnok 30.06.2019 30.06.2018 31.12.2018 mnok 30.06.2019 30.06.2018 31.12.2018 ASSETS EQUITY AND LIABILITIES Intangible assets 1,700 2,646 1,344 Equity attributable to parent company -314 531 -1,258 shareholders Tangible assets 2,249 2,671 2,603 Equity attributable to non-controlling - 448 Other non-current assets 331 494 335 interests Deferred tax assets - - 1 TOTAL EQUITY -314 979 -1,258 Total non-current assets 4,280 5,812 4,282 Borrowings 3,604 3,020 3,672 Inventory 6 45 20 Non-current liabilities 1,522 1,608 1,625 Trade receivables 130 102 127 Provisions for deferred tax 8 322 10 Other receivables 21 112 31 Total non-current liabilities 5,135 4,951 5,307 Prepaid expenses and accrued income 32 64 63 Trade payables 232 300 242 Cash and cash equivalents 1,164 775 275 Current lease liabilities 62 64 66 Total current assets 1,353 1,097 516 Other liabilities 20 79 20 Accrued expenses & deferred income 498 515 421 TOTAL ASSETS 5,633 6,918 4,799 Total current liabilities 812 987 750 TOTAL LIABILITIES 5,947 5,938 6,057 TOTAL EQUITY AND LIABILITIES 5,633 6,918 4,799 *Numbers from the divested Swedish operation are included 13 in the 2018 figures.

Cash flow* mnok Q2 2019 Q2 2018 H1 2019 H1 2018 FY 2018 Cash flow before changes in working capital -79 -59 -110 -171 -202 Cash flow from changes in working capital 222 103 38 29 -55 …from costs to obtain/fulfil customer contracts -67 -72 -105 -118 -187 …from discontinued operations - 59 - 54 55 Net cash flow from operating activities 76 31 -177 -206 -389 Cash flow from investing activities -307 -122 -434 -262 -460 …from divestment of Sweden - - 166 - - …from divestment of Nextel Brazil - 563 - 563 563 …from discontinued operations - -173 - -72 -72 Net cash flow from investing activities -307 268 -268 229 31 Cash flow from financing activities -100 -31 1,335 -62 -144 …from discontinued operations - 75 - -67 -106 Net cash flow from financing activities -100 44 1,335 -129 -250 Net change in cash and bank deposits -331 342 890 -106 -607 *Numbers from the divested Swedish operation are included in 14 the 2018 figures, while only two for months in 2019.