[PPT] - Third quarter result 2019 14 November 2019 CEO Eivind Helgaker and PowerPoint Presentation

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Third quarter result 2019

14 November 2019 CEO Eivind Helgaker and CFO Henning Karlsrud

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Disclaimer

By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Ice Group ASA (the “Company”) for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction. 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

wn 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 annual report for 2018 and the prospectus dated 16 May 2019, available on the Company’s website www.icegroup.com. 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. This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it

perates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely
pinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by

the forward-looking statements. The Company cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments. This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements). This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.

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▪ 555k smartphone subscriptions at end of Q3, up 19k in the quarter ▪ 26% YoY growth in smartphone service revenues ▪ Adj EBITDA result of NOK -20 million, margin of -4% ▪ Launch of “MobilBytte”, a handset-as-a-service programme

Subsequent to the quarter:

▪ Two first dedicated Ice retail stores opened ▪ Successful completion of NOK 900 million senior unsecured bond issue with maturity in October 2023 ▪ Ice awarded «Mobile Company of the Year»

Third quarter highlights and main developments

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The winner of the “Mobile Company of the Year” award is a challenger that is becoming more and more visible in the Norwegian market. During the past year, the company has opened stores, listed on the stock exchange, launched a mobile swap product and several innovations on the subscription

front. The jury will particularly highlight the

company's new junior subscription for those under the age of 13, which gives the youngest consumers the opportunity to use their mobile for free Gulltasten, 5 November 2019

4

Ice awarded «Mobile Company of the Year»

Photo: Helge Brekke (TU Media)

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Launch of “MobilBytte”, a handset-as-a-service program ▪ Lowest monthly price in the market ▪ Better insurance than competitors ▪ 18 month replacement period ▪ Drives loyalty ▪ High ARPU customers

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▪ Retail stores opened in the two largest shopping malls in Norway

▪ Sandvika Storsenter, west of Oslo ▪ Strømmen Storsenter, north of Oslo

▪ Important sales channel to support both subscriber and ARPU growth ▪ Increased brand awareness ▪ Reduced sales acquisition cost ▪ Telco-stores of the future

▪ Events and in-store experiences ▪ A five-star customer experience

▪ Expect to launch more retail stores going forward

Two first dedicated Ice retail stores opened

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Continuous growth in smartphone subscribers leading to 26% growth in smartphone service revenues

Q4-18 Q3-18 Q3-19 Q1-19 Q2-19 290 289 287 320 365 +26% 457 Q3-18 Q4-18 Q1-19 536 Q2-19 Q3-19 436 443 555 +119 Smartphone subscribers & ARPU

1,000 subscribers / ARPU in NOK

Smartphone service revenues

NOK million

234 224 221 220 231 ARPU Subscribers

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Ice continue to take market share in the Norwegian market

Market share in the Norwegian mobile market

Percantage points change in market share from December 2017 to June 2019

1.1
0.1

+2.5 Ice Telia Other Telenor

1.3

Source: Nkom Ekomstatistikken 24 October 2019 (subscriptions) 5% 20% 10% 15% 2015 2019

Ice market share in Norway

Ice market share in Norway 2015-2019

Only network operator gaining market share 9.7% market share as of Q3 Target of 20% market share medium term

Based on total market size as of June 2019 ~20% ~10%

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We continue to build base stations – giving us higher on-net share and lowering our roaming costs

Q4-18 Q3-19 72% 59% 67% 73% Q3-18 Q1-19 Q2-19 71% 1,775 1,933* 1,873 Q3-19 Q4-18 1,987 Q3-18 Q1-19 Q2-19 1,683 +304 Operational smartphone sites Average on-net data and VoLTE share Data 16% 1% 6% 19% 22% VoLTE

* Number of smartphone sites in Q2 2019 as reported in the Q2 report are corrected in the above chart

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Finance

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Positive top-line and margin development in Q3 2019

*Other revenues in Q1-19 includes sale of trademark from AINMT Holdings (NOK 46 million)

83 72 67 75 84 36 39 34 34 34 Q1-19 421 21 290 Q3-18 Q4-18 320 27 432 289 483 443 457 Q2-19 287 365 Q3-19 80* +26% +9%

Sweden (divested Q1-19) Other revenues MBB service revenues (NO/DK) Smartphone service revenues

21
36
65
46
20
0,4
0,3
0,2
0,1

0,0

70
60
50
40
30
20
10
5%

Q1-19 Q3-18 Q2-19

14%
8%
11%

Q4-18

4%

Q3-19 Adj EBITDA Adj EBITDA margin

Operating revenues

NOK million

Adj EBITDA and adj EBITDA margin

NOK million / %

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Revenues

12

Adj. EBITDA development – Q3 2018 vs Q3 2019
21
20
18

Other expenses NRA expenses Other revenues

34

Adj EBITDA Q3 2018 Sweden revenues 75 Smartphone service revenues Adj EBITDA Q3 2019

1
19

2 Operating expenses 4 Employee benefit expenses

8

EBITDA adjustments NOK million

Expenses Adj.

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▪ Network build-out enabling shift from variable to fixed cost base ▪ Continuously decreasing network rent cost as on-net share increases

On-net data share and network rental cost as % of revenues 13

The increasing on-net share driving the decline in NRA cost share despite growth in data consumption

36% 41% 34% 34% 41% 59% 1% 45% 55% Q1-18 Q2-18 Q3-18 67% 35% 6% Q4-18 71% 16% Q1-19 72% 19% Q2-19 73% 33% 22% Q3-19

Avg. data on-net share

NRA cost / smartphone service revenues

Avg. voice on-net share

SLIDE 14 mnok Q3 2018 Q3 2019 Service revenue 405 449 Other operating revenue 38 34 Total operating revenue 443 483 National roaming expenses (103) (122) Operating expenses (152) (150) Other expenses (162) (180) Employee benefit expenses (65) (61) EBITDA (39) (31) Depreciation and amortisation (105) (121) Operating result (EBIT) (144) (153) Net financial income/expenses (72) (168) Profit/loss before tax (216) (321) Income taxes (1) 1 Net result from continuing operations (216) (320) Net result from discontinued operations (465)

Net result for the period

(681) (320) Adjusted EBITDA**

21
20

Earnings per share (NOK)

Basic from continuing operations
1.71
1.59
Diluted from continuing operations
1.66
1.56

14

Income statement*

*Numbers from the divested Swedish operation are included in the 2018 figures (divested Q1-19) **Ice Group defines Adjusted 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. Net financials in Q3 2019 was infuenced by non-cash currency effects

n USD denoted loans

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Cash flow*

*Numbers from the divested Swedish operation are included in the 2018 figures, not in 2019. mnok Q3 2018 Q3 2019 Cash flow before changes in working capital

1

24 Cash flow from changes in working capital 1

112

…from costs to obtain/fulfil customer contracts

35
70

…from discontinued operations 1 Net cash flow from operating activities

33
159

Cash flow from investing activities

76
64

…from discontinued operations 1 Net cash flow from investing activities

76
64

Cash flow from financing activities

49
40

…from discontinued operations

39

Net cash flow from financing activities

87
40

Net change in cash and bank deposits

196
263

Change in working capital impacted by large CAPEX payments invocied near the end of Q2 and temporary changes in outstanding VAT

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Successful placement of new unsecured bond

▪ NOK 900 million (620m new) senior unsecured bond issue with maturity in October 2023 completed in October 2019 ▪ Ongoing work on debt refinancing of outstanding PIK loans and securing the company’s remaining financing requirements

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~1,500

17

Liquidity level sufficient to fund network build-out and growth in Norway until second half 2020

Q2-19 Q3-18 Q4-18

3,457

Q3-19 Q1-19

3,040
2,214
2,491
2,932

Net interest bearing debt (NOK million) 582 275 902 Q3-19 Q3-18 1,496 Q1-19 Q4-18 Q2-19 1,164 Cash and cash equivalents (NOK million)

The new bond issue is expected to secure satisfactory liquidity well into H2 2020, when the company expects to be adj EBITDA break even

Cash and cash equivalents New bond issue (Oct-19)

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Guidance & outlook

18

Smartphone network build-out:

2019: ~300 new base stations by the end of 2019 2020: Between 1,300 and 1,700 new base stations (from 1 January 2019)

National Roaming Cost (NRA):

2019: NOK ~450 million

CAPEX:

2019: NOK ~550 million (excluding payment of 700/2100 license and Komplett) updated

Adj EBITDA:

Expect to reach adj EBITDA break even during H2 2020 new updated updated

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

▪ ARPU1,2 ▪ Adj EBITDA margin

3

▪ Capex / sales

(1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User (3) Adjusted EBITDA

>25% +2.5% p.a. mid 40s % ~10%

Long term targets: Medium term targets:

>20% ~NOK300 mid 30s % ~10% ▪ Subscriber share1

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Espen Risholm Head of Investor Relations

Previously Investor Relations Officer at Schibsted ASA

New corporate website and head of investor relations in place

www.icegroup.com

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Summary

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▪ 555k smartphone subscriptions at end of Q3, up 19k in the quarter ▪ 26% YoY growth in smartphone service revenues ▪ Adj EBITDA result of NOK -20 million, margin of -4% ▪ Launch of “MobilBytte”, a handset-as-a-service programme

Subsequent to the quarter:

▪ Two first dedicated Ice retail stores opened ▪ Successful completion of NOK 900 million senior unsecured bond issue with maturity in October 2023 ▪ Ice awarded «Mobile Company of the Year»

Third quarter highlights and main developments

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Q&A

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Appendix

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Income statement*

*Numbers from the divested Swedish operation are included in the 2018 figures, while only for two months in 2019. Ice Group defines Adjusted EBITDA as operating profit after adjustment of operating expenses for depreciation, amortisation, impairment network upgrades, share based compensation expense, non-recurring and other non-

perational items. Any effects from business combinations

are not included. For details, see the section on Alternative Performance Measures and definitions.

mnok Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018

Service revenue 449 405 1,219 1,149 1,539 Other operating revenue 34 38 143 79 121 Total operating revenue 483 443 1,362 1,228 1,660 National roaming expenses

122
103
329
333
434

Operating expenses, excl. NRA

150
152
407
373
520

Other expenses

180
162
597
530
721

Employee benefit expenses

61
65
172
173
220

EBITDA

31
39
143
181
236

Depreciation and amortisation

121
105
339
312
465

Operating result (EBIT)

153
144
482
494
701

Net financial income/expenses

168
72
412
226
352

Profit/loss before tax

321
216
895
719
1,052

Income taxes 1

1

2

3
8

Net result from continuing operations

320
216
893
722
1,060

Net result from discontinued operations

465
171
171

Net result for the period

320
681
893
894
1,231

Adjusted EBITDA

20
21
131
144
180

Earnings per share (NOK)

Basic from continuing operations
1.59
1.71
4.43
5.71
8.37
Diluted from continuing operations
1.56
1.66
4.53
5.55
8.23

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Cash flow*

*Numbers from the divested Swedish operation are included in the 2018 figures, while only two for months in 2019.

mnok Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018

Cash flow before changes in working capital 24

1
87
171
202

Cash flow from changes in working capital

112

1

74

31

55

…from costs to obtain/fulfil customer contracts

70
35
175
153
187

…from discontinued operations

1
55

55 Net cash flow from operating activities

159
33
336
239
389

Cash flow from investing activities

64
76
497
338
460

…from divestment of Sweden

166
…from divestment of Nextel Brazil
563

563 …from discontinued operations

1
72
72

Net cash flow from investing activities

64
76
331

153 31 Cash flow from financing activities

40
49

1,295

111
144

…from discontinued operations

39
106
106

Net cash flow from financing activities

40
87

1,295

216
250

Net change in cash and bank deposits

263
196

628

302
607

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Balance sheet*

*Numbers from the divested Swedish operation are included in the 2018 figures. mnok 30.09.2019 30.09.2018 31.12.2018 ASSETS Intangible assets 1,669 1,354 1,344 Tangible assets 2,230 2,579 2,603 Other non-current assets 350 362 335 Deferred tax assets 1 1 Total non-current assets 4,249 4,295 4,282 Inventory 6 30 20 Trade receivables 138 96 127 Other receivables 50 5 31 Prepaid expenses and accrued income 63 31 63 Cash and cash equivalents 902 582 275 Total current assets 1,159 745 516 TOTAL ASSETS 5,408 5,040 4,799 mnok 30.09.2019 30.09.2018 30.06.2019 EQUITY AND LIABILITIES Equity attributable to parent company shareholders

634
854
1,258

Equity attributable to non-controlling interests

TOTAL EQUITY
634
854
1,258

Borrowings 3,788 3,566 3,672 Non-current liabilities 1,220 1,608 1,625 Provisions for deferred tax 8 8 10 Total non-current liabilities 5,319 5,183 5,307 Trade payables 262 235 242 Current lease liabilities 63 65 66 Other liabilities 18 27 20 Accrued expenses & deferred income 379 384 421 Total current liabilities 722 712 750 TOTAL LIABILITIES 6,042 5,895 6,057 TOTAL EQUITY AND LIABILITIES 5,408 5,040 4,799

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IFRS 16 impact

NOK million

Reported Change IFRS 16 Restated Reported Change IFRS 16 Restated Reported Change IFRS 16 Restated Statement of financial positions Closing balance 30.09.2018 Closing balance FY 2018 Opening balance 2018 Total assets 3,547 1,493 5,040 3,279 1,520 4,799 5,655 1,593 7,248 Equity

601
253
854
992
266
1,258

1,358

241

1,117 Liabilities 4,148 1,746 5,894 4,271 1,786 6,057 4,297 1,834 6,131 Statement of income Q3 2018 As of Q3 2018 Full-year 2018 Total revenue 443

443

1,228

1,228

1,660

1,660

Total operating expenses

534

53

692
1,566

156

1,410
2,103

208

1,895

Depreciation, amortisation

81
24

105

240
72
312
369
96
465

Operating result

172

28

144
578

84

494
813

112

701

Net financial items, tax

38
35
73
124
105
229
213
139
352

Net result, continuing operations

209
7
216
702
21
722
1,033
27
1,060

Adj EBITDA

73

52

21
300

156

144
388

208

180

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Key KPIs

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

No. of active subscriptions (in thousands)

566 573 546 627 645

Smartphone

436 443 457 536 555

consumer

396 404 420 498 517

business

39 38 37 38 38

MBB (excl. M2M/IoT)

130 130 89 91 91 Smartphone ARPU 234 224 221 220 231 Number of Smartphone base stations 1,683 1,775 1,873 1,933 1,987 Smartphone avg. data on-net share % 59% 67% 71% 72% 73%

Avg. voice on-net share %

1% 6% 16% 19% 22% Smartphone churn, annualized % 29% 31% 24% 24% 33%

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Investor contact

Henning Karlsrud CFO +47 93045389 henning.karslud@ice.no Espen Risholm Head of investor relations +47 92480248 espen.risholm@ice.no