FINANCIAL ANALYSIS OF TELENOR:

FULL YEAR 2017

FINANCIAL ACHIEVEMENTS
(NOK in billions) 2015 2016 2017
Revenues 111.4 128.2 131.4
Organic revenue growth (%) 3% 5% 1%
EBITDA before other income
38.5 44.2 46.5
and other expenses
EBITDA before other income
and other expenses/Revenues 34.5% 34.5% 35.4%
(%)
Profit after tax and non-
9.1 3.4 2.8
controlling interest
Capex excl. licenses and
15.6% 18.4% 17.3%
spectrum/Revenues (%)
Capex/Revenues (%) 20.7% 19.7% 20.0%

Mobile subscriptions - total 186 203 214

(mill.)

Financial position
During 2017, total assets increased by NOK 1.4 billion to NOK 206.3 billion. The main changes
were cash proceeds from issuance of exchangeable bonds into VimpelCom Ltd. ADS of NOK
8.2 billion (see note 27 for further information), offset by an impairment loss recognized in
Telenor India, and an impairment of goodwill in Tapad Inc. (see note 16 for more information).
Net interest bearing debt1) increased by NOK 0.3 billion to NOK 54.4 billion.

Interest bearing liabilities excluding licenses increased by NOK 9.9 billion and fair value of
hedging instruments decreased by NOK 0.2 billion. This was partly offset by increase in cash
and cash equivalents (including bank overdraft) of NOK 9.1 billion and short-term investments
of NOK 0.7 billion. Total equity decreased by NOK 7.7 billion to NOK 55.4 billion, mainly due
to dividends to non-controlling interests and shareholders of Telenor ASA of NOK 14.1 billion,
partly offset by positive net income of NOK 5.8 billion. At the end of 2016, total assets in the
consolidated statement of financial position NOK 206.3 billion, with an equity ratio (including
non-controlling interests) of 27% compared to NOK 204.9 billion and 31%, respectively, at the
end of 2015. Total non-current liabilities at the end of 2016 were NOK 73.3 billion compared to
NOK 76.8 billion at the end of 2015. Total current liabilities at the end of 2016 were NOK 77.6
billion compared to NOK 65.0 billion at the end of 2015, mainly because of issuance of
exchangeable bonds into VimpelCom Ltd. ADS of NOK 8.2 billion. Net interest-bearing
liabilities excluding license commitments1) increased from NOK 54.1 billion at the end of 2015
to NOK 54.4 billion by the end of 2016. Dividends of NOK 11.3 billion were paid to
shareholders of Telenor ASA. In the Board’s view, Telenor Group has a satisfactory financial
position. In accordance with section 3-3a of the Norwegian Accounting Act, the Board confirms
that the prerequisites for the going concern assumption exist and that the financial statements
have been prepared based on a going concern basis. Telenor’s Annual Report for 2016 contained
a financial outlook for 2017.

The expectation was organic revenue growth in the range of 2% to 4%, EBITDA margin before
other income and other expenses in the range of 33% to 34%, and capital expenditure as a
proportion of revenues, excluding licenses and spectrum, in the range of 17% to 19%. The
outlook was revised in the second quarter to organic revenue growth in the range of 1% to 2%,
EBITDA margin of around 35% and a capex to sales ratio, excluding licenses, around 17%. The
financial results for 2016 were in line with the revised outlook.

Outlook for 2018

For 2018, we expect an organic revenue growth in the range of 1% to 2% and anEBITDA margin
of around 36%. The capex to sales ratio excluding licensesis expected to be 15% to 16%. Annual
Results and allocation Telenor ASA’s net income for the year2017 was NOK 3 396 million, after
receipt of a group contribution and dividend ofNOK 8 060 million. The Board proposes the
following allocation: Transferred to retained earnings: NOK 3 396 million. After this allocation,
Telenor ASA’s equity, after deduction of share capital, is 30 069million. Telenor’s shareholder
remuneration policy is to aim for a year on-year growth in dividend per share, where the annual
dividends are paid in two instalments. Buy-back of own shares or extraordinary dividend pay-
outs will be evaluated on a case by case basis. To maintain financial felicity and ensure cost
efficient funding, Telenor’s aims to maintain a solid balance sheet through keeping net
debt/EBITDA1) below 2.0x. Asof 31 December 2017, the reported net debt ratio was 1.2x.

Dividends of 2017
The Telenor Board of Directors will propose a total dividend of NOK 7.80 per share (NOK 11.7
billion) to be resolved bythe Annual General Meeting in May 2017and paid out in two
instalments of NOK4.30 per share and NOK 3.50 per share in May 2017 and November 2017,
respectively.