Telenor – Investor Presentation June 2012
Jon Fredrik Baksaas, CEO
Disclaimer
The following presentation is being made only to, and is only directed at, persons to whom such
presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant
person should not act or rely on this presentation or any of its contents. Information in the following
presentation relating to the price at which relevant investments have been bought or sold in the past
or the yield on such investments cannot be relied upon as a guide to the future performance of such
investments.
This presentation does not constitute an offering of securities or otherwise constitute an invitation or
inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company
within the Telenor Group. The release, publication or distribution of this presentation in certain
jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this
presentation is released, published or distributed should inform themselves about, and observe, such
restrictions.
This presentation contains statements regarding the future in connection with the Telenor Group’s
growth initiatives, profit figures, outlook, strategies and objectives. In particular, the section ‘Outlook
for 2012’ contains forward-looking statements regarding the Telenor Group’s expectations. All
statements regarding the future are subject to inherent risks and uncertainties, and many factors can
lead to actual profits and developments deviating substantially from what has been expressed or
implied in such statements.
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Maintaining growth momentum
Organic revenue growth
• Strong operational performance in Q1
• 8% organic revenue growth
• 5.6 million net subscriber growth
• 21% operating cash flow margin
• Restoring ownership position in VimpelCom
• Awaiting final decision on auction format in
India
Mobile subscribers (mill)
3
Strategy built on two main operational ambitions
Preferred by customers
Cost efficient operator
Customer centricity
Business unit efficiency
improvements
Take positions in new services
Cross border standardisation
4
Awaiting final decision on auction format in India
Revenues (NOKm)
• Operational performance on track
• Licence extension to 7 September,
aligned with auction timeline
• Auction conditions - Key elements
• Roll out obligations
• Spectrum
• Incumbents vs new players
EBITDA (NOKm)
• Reserve price
• Deferred payments
• INR 155 bn peak funding maintained
5
Restoring ownership position in VimpelCom Ltd.
Telenor ownership stakes in VimpelCom Ltd
Voting
Economic
•
234 million preferred shares acquired from Weather Investments on 15 February
•
65 million common shares acquired from JP Morgan on 4 April
•
In compliance with applicable rules and regulations
6
Healthy shareholder remuneration
Dividend per share (NOK)
Payout to shareholders (NOK bn)
Dividend policy:
•
3% share buybacks in 2011
• 50-80% of normalised net income
•
Aiming for buybacks also in 2012
• Nominal YoY increase in dividend
*) Share buyback programme AGM 2011 – AGM 2012
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Priorities in 2012
Opex/sales*
39%
• Continue to deliver growth above
peers
37%
<35%
• Clarify platform for continued
operations in India
• Manage transition from voice to
data
Capex/sales*
• Execute on operational excellence
13%
11%
~10%
*) Existing business not incl. India and licence fees
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Telenor – Investor Presentation June 2012
Marius Gigernes and Frode Støldal, Telenor Norway
Telenor Norway Q1 2012
Revenues (NOKm) and EBITDA%
• 6k net mobile subscription growth
0%
• Stable mobile ARPU adjusted for onetime effects
• Fixed development in line with previous
quarters
• EBITDA impacted by mobile campaign
in Q4 and storm-related costs
EBITDA and capex (NOKm)
EBITDA
• Network investments focused on
mobile capacity and fibre to the home
CAPEX
-7%
Organic growth assuming fixed currency, adjusted for
acquisitions and disposals.
EBITDA and EBITDA margin before other items
Capex excl licence fees
Organic revenue / EBITDA growth YoY
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Migration to bundled mobile tariffs
Mobile data users (1000’)*
Mobile blended ARPU (NOK)
Q4
campaign
Other
*) Small screen data users – Consumer segment
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Modernisation of networks
Best mobile network
324
278
246
•
Network swap completed Q4 2011
•
3G coverage close to 90%
•
LTE launch in 2H 2012
•
IP backhaul upgrade
Fibre rollout
•
Using both Telenor and Canal Digital brands
•
57,000 connections by end of 2012
•
Stream-lining of value chain
Simplification of processes and value chains
Improve customer experience
324
278
•
Develop state of the art web platform and
shift volumes to web
•
Implement the net promoter score index
and enhance the utilization of customer
feedback loops
•
New tools in customer front to support a
better customer communication and
increase up-selling possibilities
246
Phase-out of copper network
• A dedicated program that focus primarily on
phase-out activities
•
Offer a mobile alternative (sim-fixed-phone)
to areas were copper will be closed down
•
Focus fiber roll-out on most profitable areas.
Enhance xDSL quality in other areas to
create a good alternative
Telenor – Investor Presentation June 2012
Hilde Tonne, EVP Group Industrial Development
The business environment is changing, and the
industry is transforming
•
Globalization
•
Competent competition
•
Value chains shifting
•
Regulatory strain
•
Business models changing
•
Meeting customers needs
•
Customer demands
•
Technology driven
•
ARPU pressure
Driving operational excellence in all business
units...
Opex/sales*
Capex/sales*
39%
13%
37%
11%
~10%
<35%
• Specific operational excellence
targets for all business units
• Capex/sales in 2011-2012 impacted by
network modernisation programmes
*) Existing business not incl. India and licence fees
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Industrialization will facilitate both cost efficiency
and improvement in market position
Through joint deliveries we will release capacity to strengthen our local
market execution
Striking the right balance: Capture scale benefits
while increasing local agility
Local independence
Group standards,
local execution
Operating model
Strong group control
Group-wide industrialisation to leverage on scale
•
Managed Services
•
Network Sharing
•
AD/AM
•
Asia Billing
•
Shared Services (IT, Finance, HR)
•
Streamlining Customer Processes
and Distribution
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Telenor – Investor Presentation June 2012