Four quarter 0: Strong close to an eventful year

Fourth quarter 2012: Strong close to an eventful year Press Releases: 13 February 2013

In the fourth quarter of 2012, Telenor Group reported revenues of NOK 26.0 billion, representing an organic revenue growth of 5%. EBITDA before other items was NOK 8.2 billion, EBITDA margin was 31.5 %, and operating cash flow was NOK 4.6 billion. For the full year of 2012, Telenor's revenues were NOK 101.7 billion, EBITDA before other items was NOK 32.8 billion, EBITDA margin was 32.2% and operating cash flow was 20.5 billion.

I am pleased to close an eventful year with strong financial results and having reached important milestones. We have seen a strong increase in demand for data services during the year. The launch of 4G services in Norway and acquisition of a 3G licence in Thailand will enable us to introduce even better mobile services to our customers. With the acquisition of new licences in India, we have secured a platform for our future in this growth market. Telenor's position in VimpelCom has been restored, and we will support and contribute to the company's value agenda going forward, said Jon Fredrik Baksaas, President and CEO of Telenor Group.

For the full year 2012, organic revenue growth was 5%, EBITDA margin improved notably from last year and operating cash flow exceeded NOK 20 billion. During the year, we have invested heavily to improve user experience and prepare for increased efficiency and continued growth, Baksaas said.

The continued solid performance by our Norwegian operation reflects high demand for both mobile and fixed line Internet services. Introduction of new offerings and investment in superior network quality provide our customers with the best services, coverage, capacity and the latest mobile technology. The Asian operations have demonstrated another year of high margins. We see smartphone and data demand picking up in Thailand and Malaysia as well as steady operational improvements in Pakistan, Baksaas said.

Dividend and Outlook As a result of the strong operating results and a solid financial position, the Board of Directors proposes a dividend per share of NOK 6.00 for 2012, an increase of 20% compared to 2011, Baksaas said.

For 2013, we expect revenue growth in the range of 3-5% and EBITDA margin around 34%. We now see the opportunity to accelerate investments to capture market positions and expect capex/sales in the range of 12-14%. Our solid position and strong momentum makes me confident that Telenor Group will continue to create value for our shareholders and customers, Baksaas said.

Key figures The table below contains key figures for the fourth quarter and full year of 2012, compared to the previous year.

Fourth quarter Year

(NOK in millions except earnings per share) 2012 2011 2012 2011

Revenues 25 990 25 433 101 718 98 516

EBITDA before other income and expenses 8 179 7 417 32 755 30 526

EBITDA margin before other income and expenses (%) 31.5 29.2 32.2 31.0

Adjusted operating profit 1 4 498 3 533 18 353 15 217

Adjusted operating profit/Revenues (%) 17.3 13.9 18.0 15.4

Profit after taxes and non-controlling interests 3 193 (2 709) 9 490 7 165

Earnings per share from total operations, basic, in NOK 2.06 (1.70) 6.06 4. 45

Capex 10 371 3 823 21 511 11 907

Capex excl. licences and spectrum 3 571 3 638 12 299 11 441

Capex excl. licences and spectrum/Revenues (%) 13.7 14.3 12.1 11.6

Operating cash flow 2 4 608 3 780 20 457 19 085

Net interest-bearing liabilities 3 33 082 17 231

1 Adjusted operating profit is defined as Operating profit less other income and expenses and impairment losses.

2 Operating cash flow is defined as EBITDA before other income and expenses - Capex, excluding licences and spectrum

3 Net interest-bearing liabilities is defined as interest-bearing debt excluding net present value of licence liabilities.

For more information please refer to the quarterly report at http://telenor.com/investor-relations/reports/2012/q4/.

Contact:

Scott Engebrigtsen, Communication manager, Tel: 4790043484, E-mail: scott@telenor.com

Meera Bhatia, Communications Manager, Tel: 4746844959, E-mail: meera.bhatia@telenor.com

To the editorial offices:

Press and analyst conference

In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 13 February 2013 at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium A, Telenor Expo Visitors' Centre, at the Telenor Headquarters at Fornebu outside Oslo. President and CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. All presentations will be given in English.

Internet and mobile broadcast

The press and analyst conference will be broadcast live over the Internet, and a recorded version will be made available on http://telenor.com/investor-relations/reports/2012/q4/. During the live transmission, written questions may be submitted via the Internet. The conference will also be available live, and in a recorded version, on mobile phones - for access, SMS expo to 2440 or 472440 from abroad.

Conference call and Q&A

The press and analyst conference will also be available as a conference call. This service also allows participants to ask questions at a concluding Q&A session, which will be held immediately after the presentation and a brief Q&A session in the auditorium. Please register well in advance on ( 47)23184545, and state your name and company to an automatic voicemail followed by # (pound sign). For the Q&A session: to queue up for questions please press *1.

Materials

English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available at http://telenor.com/investor-relations/reports/2012/q4/.

LINK:	http://www.telenor.com/news-and-media/press-releases/2013/fourth-quart...
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