Telenor in Europe. Kjell-Morten Johnsen, Head of Telenor Europe 28 May 2013
Telenor in Europe Kjell-Morten Johnsen, Head of Telenor Europe 28 May 2013
Disclaimer The following presentation is being made only to, and is only ...
Telenor in Europe Kjell-Morten Johnsen, Head of Telenor Europe 28 May 2013
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. 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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Telenor Group 148 million consolidated mobile subscribers Revenues in 2012 of NOK 102 bn (USD 18 bn) Market cap of NOK 200 bn (USD 34 bn)
Revenues 2012 8% 44%
Operating cash flow 2012 1% 33%
25% 46% 23%
20%
VimpelCom Ltd. Norway Asia
Europe Other
Norway Asia
Europe Other
Telenor Group holds 33.0% economic and 43.0% voting stake in VimpelCom Ltd.
3
Telenor Group in Europe Telenor - Sweden
Telenor - Norway 50% revenue market share #1 position in the market 3.2 m customers
21% revenue market share #3 position in the market 2.4 m customers
Telenor - Denmark 25% revenue market share #2 position in the market 2 m customers
Vimpelcom 43 % voting stake (33% economic stake) 215 m mobile subscriptions in 17 markets
Telenor - Hungary 31% revenue market share #2 position in the market 3.3 m customers
Telenor - Serbia 43% revenue market share #1 position in the market 3.2 m customers
Telenor - Montenegro 44% revenue market share #1 position in the market 0.4 m customers
Revenue market shares and subsciber numbers referring to mobile operations 4
Telenor in Europe – Financial development Sweden - Revenues (NOK m) and EBITDA % 2 844
2 545
2 599
2 716
2 748
2 539
Denmark - Revenues (NOKm) and EBITDA % 1 713
1 501
1 429
1 330
1 468 1 192
-4%
-19%
19% Q4 11
25%
24%
Q1 12
Q2 12
30%
Q3 12
23% Q4 12
28%
Q1 13
Hungary - Revenues (NOK m) and EBITDA % 1 064
964
965
1 060
22%
20%
20%
23%
Q4 11
Q1 12
Q2 12
Q3 12
21%
Q4 12
Q1 13
Serbia - Revenues (NOK m) and EBITDA % 736
1 100
19%
930
656
674
720
686
+8%
-2% 36%
35%
28% Q4 11
Q1 12
Q2 12
30% Q3 12
28% Q4 12
Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA and EBITDA margin before other items
38%
Q1 13
669
38%
39%
39%
39%
40%
40%
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Organic revenue YoY 5
Executing on Telenor Group strategy Preferred by customers
Cost efficient operator
Monetise on mobile data
Continuous improvement
Take positions in new services
New operating models
6
Initiatives in the region
7
●
Leverage competence and scale across the region
●
Common management of Telenor Montenegro and Telenor Serbia
●
Common shared service centre for network and IT services
●
Radical simplification in Denmark
●
Towards data centric pricing
●
Network sharing
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Acquisition of Globul in Bulgaria Globul financials
●
Agreement with OTE to acquire Globul, the second largest mobile operator in Bulgaria
●
Acquisition price EUR 717 million on a debt and cash free basis
●
Opportunity to leverage Telenor’s operational expertise in the CEE region
●
Consistent with value-driven and disciplined Group M&A strategy
●
EBITDA margin
40%
38%
36%
(EURm)
Telenor Hungary
Closing of transaction pending regulatory approval
Telenor Serbia
Telenor Montenegro
8
8
33% economic stake in VimpelCom
• Market value of Telenor stake currently at USD 6 bn
VimpelCom Ltd reported net income (USD m)
• A very profitable investment for Telenor
801
• Acc. investments: NOK 14.9 bn • Dividends received: NOK 17.6 bn • Ownership structure clarified
538 488 408 318
• Supporting VimpelCom’s Value Agenda
Q1 12
Q2 12
Q3 12
Q4 12
9
Q1 13
Thank you
Telenor in Europe
Country
Year of investment
Market position
Sweden
2005
3
Denmark
2000
2
Hungary
1993
2
Serbia
2006
1
Montenegro
1996
1
1855
1
Norway
Revenue market share (%) 21 25 31 43 44
50
Subs (million)
Revenues 2012 (NOK bn)
EBITDA margin 2012 (%)
OCF margin 2012 (%)
2.4
10.6
25.3
14.4
2.0
5.7
20.2
10.2
3.3
4.1
32.2
24.9
3.2
2.7
39.5
31.4
0.4
0.6
42.0
34.1
3.2
25.5
42.4
26.3
Market position and subscribers at the end of Q4 2012. OCF = Operating cash flow (EBITDA before other items, less capex excl licence fees)