Post on 28-Mar-2018
Telenor ASA Q4 2013 Presentation
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Company: TelenorASA
ConferenceTitle: Q42013Presentation
Presenter: MeeraBhatia
Date: Wednesday12thFebruary2014
MeeraBhatia: My name is Meera Bhatia and I have the pleasure of guiding you through today’s
presentation. I hope you all have a copy of the presentation which is also available on our
website. Therewill be as usual aQ&A session directly after the presentation firstly from the
audienceandthenfromourphoneparticipants.Asusualplease limityourselftoonequestion
andone follow-upquestion ifneeded.Weaimtoendtoday’ssessionatabout10o'clockand
aftertheQ&Aourexecutiveswillalsobeavailableforfurthercomments.
TopresenttheupdatetodaywehaveourCEOJonFredrikBaksaas;andCFORichardOlav.FirstI
willleavethefloortoFredrikplease.
JonFredrikBaksaas: ThankyouMeeraandalsogoodmorningfrommetoyou.Weareheretotakea
lookatthefourthquarterandtheyearendclosingfor2013.Thisisayearwherewecontinued
to grow both in terms of subscribers and revenues. We added five million new subscribers
during the last quarter ending the year with a total customer base of 166 million, in total
17millionnewsubsduring2013.Iamthinkingaboutthisactually,thenumberof17millionnew
subscribersinoneyear,thatmeansactually46,000newsubscriberseverydayin365daysina
row.Sothistellssomethingaboutthebigcapacitiesthatthisgrouphasinallourmarketsforthe
timebeing.ThesubscribergrowthwasconcentratedinAsiaofcoursedrivenprimarilybyIndia,
Pakistan and Bangladesh where there still is a significant potential for further growth. The
organic revenue growth for the group was 1% which is somewhat lower than expected but
explainedby lowhandsetsales inmanymarketsandpoliticalunrest impactingtheeconomies
bothinBangladeshandinThailand.Themobileservicerevenuegrowthexcludinginterconnect
remainedstableat4%andifwethentakealookatthebroadcastbusinessunitthisquarter,the
revenuesincreasedby8%whichisthebestyeareverbothintermsofrevenuesandmargins.All
in all this takes the EBITDA level toNOK36 billion for the full yearwhich is an all timehigh.
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Despitehigh investment throughout theyear theoperating cash flowwasNOK21billionand
basedonthissolidfinancialperformancein2013theboardproposesadividendofNOK7per
share which is an increase of 17% compared to 2012 and this will be covered later in the
presentationbyRichard.
Ourgroupstrategyisbuiltaroundthreemainambitions:internetforall,lovedbycustomersand
efficientoperations.WithafocusedexecutiononthisstrategyalsoatourCapitalMarketsDayin
2013andduring2013wehavedeliveredresultsandledthefoundationforfuturegrowthand
futurevaluecreation. Iwant to takethisopportunity tomentionsomeof themost important
achievements in 2013.Wework consistently at group level and acrossmarkets to become a
more customer-oriented company putting the customers in focus in everything we do we
believeiskeytofuturesuccessashappycustomersarealsovaluablecustomers.Webelievethis
tobeparticularlyimportantinthetransitiontoallIPinthisindustry.
Duringtheyearwehavemaintainedorincreasedourrevenuemarketsharesinallkeymarkets.
Webelievethisistheresultofoureffortstodeliverrelevantservicestoourcustomersinthese
markets.OurinternetforallstrategyisshowingpromisingresultsinAsia.Mobiledatausageis
alreadywidespreadinThailandandMalaysia inparticularandwealsoseepromisingtrends in
marketslikeIndiaandBangladesh.
When itcomestooperationalefficiencyourambitionas itwassetout in2010wastoreduce
opextosalesto35%in2013.Wedidn’tquiteachievethattargetinfullduetothelowerthan
expected top linegrowth in theperiod.Weendedat36%which is a significant improvement
fromthe39%backthen.Thegrossnominalcostsavingsthoughwerelargelyaccordingtoplan
and enabled us to keep opex flat despite inflation and increased regulatory costs in the
operationsthroughouttheperiod.
We also expanded into two newmarkets, Bulgaria andMyanmar.We believewe can create
valueby leveragingour regional experienceand re-useourproven conceptsand capacities in
thesemarkets.Aswespeaktheworldgoesdigital. Ithappens inall industriesandwearethe
enablertomakethishappen.DatagrowthinNorwayforexampleisgrowingathigh60spercent
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both in2012and2013.Anotherexample inDiGi,while seeing the3Gcoveragegrowing from
67%to80%throughouttheyear,themobiledatagrowthisatarecordhighandstandsat125%
growth throughout the same year. The number of active internet users through the mobile
phones has grown from 15% to 27% throughout the year and this is of course driven by
smartphonepenetrationwhichinNorwaynowstandsatforexample68%andagaininDiGi38%
atyearend.Seeinghandsetpricestofallfurtherwillgrowthesefiguresstronglyin2014.
Moving then to some of our key markets and I will start with Norway. In Norway we saw
anotherquarterwithsubscribergrowthbothonmobileandfiber.Thesalesmix inthemobile
consumersegmentimprovedsignificantlythisquarterasaresultofsalesactivitiesfocusingon
customerswithhighdatausage.Twothirdsofthenewsubscriptionsthisyearwasonpackages
withmonthlyfeesequaltooraboveNOK249permonth.Wearehappytoseethatthistrend
continues into the first quarter of this year. Mobile service revenue excluding interconnect
declinedby2%whichissomewhatbetterthaninthethirdquarterwhenitwasstandingat3%.
Fixed internet and TV revenues increased by 6% driven by price increases on cable and a
growingnumberoffibercustomerswhichnowhasreached81,000.Throughseveralseverefires
incidents in Norway recently Telenor has again demonstrated its robust network and strong
commitment to local communities in Norway where communication stands out as a very
importantinfrastructure.Inthissensethe800MHzspectrumthatweacquiredintheauctionin
December will enable us to further rollout a high quality nationwide 4G network over the
comingyears.
During 2013 TelenorNorway reduced its gross cost base by aroundNOK 500million keeping
more or less the total cost base flat at 2012 levels. With continued high investments in
infrastructure, initiatives to increase revenuesandcosts furtherwillhave tocontinueandwill
standofcoursehighontheagendaalsoin2014.
In the other operations in Scandinaviawe see Telenor Sweden delivers another solid quarter
adding51,000newsubscribers,11%underlyingmobileservicerevenuegrowthandcontinued
marginimprovement.TheunderlyingEBITDAinSwedishkronerincreasedby15%inthefourth
quarter and thiswas a four percentagepointmargin uplift year-on-year. The improvement is
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coming from improved mobile revenues and lower opex. In a competitive market Telenor
Swedenhashadsuccesswiththeirdata-centricofferingsincludingshareabledataplansforthe
familysegment.BetterthanNorway,Swedenhasbeenabletogrowrevenuesalongwithhigher
consumption.
TelenorDenmarkcontinuestobeachallengingmarket.Revenuesaredown21%inthequarter
andoursubscriberbasestands9%lowerthanlastyear.Mostofthisdeclineisdrivenbylower
interconnectrevenuesandhandsetsales.HoweverwehaveseenastabilisationonmobileARPU
during2013andwehavealsoseenthesamefeatureinthepostpaidsubscriberbase.2014will
be a year of transition for Telenor Denmark. We have to execute on the new strategy, be
focusedonsimplificationandcontinuetoadapttothemarketconditionsinDenmark.
Moving then to the growth area in Asia. Both DiGi and DTAC are progressing towards our
ambition of delivering internet to all and monetise on the data growth. DTAC showed solid
progressontherolloutofthe3Gnetworkandhasmigratednow12millioncustomersontothe
new tri-network. Competition remains intense in Thailand with all operators pushing data
centric offers and the economic and political backdrop has been more challenging than
expected and this stays on into 2014. DTAC reported a 5% growth in subscription and traffic
revenuesanddatatrendsarepositivewithincreasingworkingdatausersanddatausage.
DiGi ends 2013 with another solid set of results, growing the top line, EBITDA margin is
improvingandaddingnewmobiledatausers.It’snotlongbeforealsoDiGiwillbeseentopass
TelenorNorway in overallmobile revenues. DiGi has a 6% organic revenue growth driven by
solidmobiledatatrends.Thiscomesonthebackoftherecentcompletionofthenetworkswap
whichnowcovers80%ofthepopulation.
InPakistanandBangladeshwehaveseenindustrygrowthbeingimpactedbyregulatorychanges
andpoliticalunrestrespectivelythisquarter. InBangladeshtheelectiontookplace5thJanuary
2014butwe sawa significantnumberofblockadesorhartals leadingup to theelection. Still
Grameenphonedelivered7%organic growth in thequarterdrivenbyan increased subscriber
base, 7million in the last year andwe believe our revenuemarket share has been relatively
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stable throughout this year.WhileGrameenphonenowhas 47million subscriptionswe see a
solid opportunity in increasing both voice penetrationwhich stands at around 45% and data
penetration of around 15%. There is much work to do, there is potential in the market.
Grameenphonegotits3GlicenceinSeptemberandhasalreadystartedtorolloutinkeycities.
TelenorPakistansawarevenuedeclineof1%.Thiswasaresultofbothregulatorychangesand
competition.Governmentenforcednetworkclosurescontinuedtonegatively impactrevenues
both forus and the industry as awhole. In themarketwehave seen intense competitionon
on-netoffersdrivingpricesdownandinadditionwesawacontinuednegativeeffectfromlast
year’s regulatorychangesof international trafficandhowthatwill setupwhichhas impacted
the revenue growth quite significantly this year. With the revenues declining and increased
market related costs falling, a solid impact of 1millionnew subscriptions, the EBITDAmargin
declined somewhat through the year. Upcoming in 2014 we anticipate Telenor Pakistan to
regainmomentumandalsothattheexpected3Gauctionwilltakeplace.
In India the performance in the last two quarters clearly demonstrates the validity of our
operatingmodel.Inthefourthquarterweseesolidcustomerintake,2millionnewsubscribers
versus 1.5 in the third quarter and therewas also a strong top linemomentumwith just 6%
organic revenuegrowthcompared to23% thequarterbefore.ARPU is increasing for the fifth
quarterinarowandreachedINR106whichisup17%comparedtofourthquarter2012.Atthe
sametimechurncontinuedtodeclineandit’scurrentlyataround4.5%whichismoreorlesson
industrystandardsinIndia.Webelievewearesuccessfullypositioningourselvesasaproviderof
affordablebasicdataservicesaswellas20%ofourcustomersinIndianowareactivedatausers.
Thestrongtop line incombinationwithextremecostefficiencyresulted inunderlyingpositive
EBITDA in December whereas Q4 stands negative by NOK 137 million. The competitive
environment seems to be improving with signs of price increases and some natural
consolidation leading to fewer operators in its circle. In December we finally got the long
awaitedapprovalforthebusinesstransferfromUnitechWirelesstoTelewingswhichwillbethe
platformforourbusinessinIndiagoingforward.Thiscompletionofthebusinesstransferthen
alsoenablesustore-useequipmentfromthecirclesthatweexitedin2012.Wethereforeplan
to redeploy 5,000 sites this year primarily for geographic expansionwithin our existing fixed
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circleswherewehaveacurrentpopulationcoverageof42%andwiththe5,000additionalsites
thiswill increasetoslightlyabove50%.Weseethereforeagoodbusinesscaseforthecoming
yearshoweveritwillmeanthatwewilltakein2014somechargestotheEBITDAandalsosome
capexintherangeofNOK300millionontheopexsideandNOK300milliononthecapexside
respectively.
PreviouslythisweekwehadapresentationhereonournewentityMyanmarbecausefinallyin
February this year, early February, earlier this month we received our telecommunications
licenceinMyanmarafteralongandhecticbothnegotiationprocessbutalsoaselectionprocess.
WehadthispresentationasIsaidbutletmequicklyrecapsomeofthekeytake-awaysfromthis
veryexcitingprojectforTelenor.Myanmarisanuntappedgrowthopportunity,oneofthevery
fewlastgreenfieldswhichisbackintheworldandthisstandsinthecoreoftheTelenorregion
inAsia.Thepopulationis60millionplus.Therearebelow10%mobilepenetrationandincities
onlyandwearetolaunchserviceswithineightmonthsafterreceivingthelicense.Wewillhere
fullyleverageonourlongtermexperiencebuiltupinAsiaandreusebothoperationalconcepts
andcapacities.This isamassmarketapproach,affordableservicesanda lowcostmodel.The
operatingmodelwillhaveawidespreaduseofsourcingfrompartnersandalsopassivenetwork
sharingaswemovealong.Whilerealisingthatweareenteringamarketwithseveralrisksand
uncertainties we believe we have a solid business case here which is well within our
organisationaland financial capacities.Wealsoknow that thedevelopmentof the industry in
MyanmarstandsasafrontrunnerfornewFDIstohappeninthecountry.
ToconcludemypresentationtodayIjustwanttohighlightprioritiesfor2014.Thisindustry,we
are in the fortunate position thatwe are empowering individuals.We are empowering small
businessesandweareempoweringinstitutions.Inshortweempowersocietiestogrowandto
prospertowardsabetterfutureforall.Inthemidstofthis,improvedefficienciesandtotakethe
opportunityonmonetisingofdataandwhiledelivering internet toall standsoutasourmain
prioritiesfor2014.
NowRichardwillcontinuewiththefinancials.
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RichardOlavAa: Thank you Fredrik, also goodmorning fromme to everybody. I will walk you
throughmoredetailsontheP&LandthebalancesheetandthenIwillgiveyoumorecolouron
thedividendandtheguidance.Let’sstartwith the2013performance.Firstofall the fullyear
performancecamein linewithouroutlook.Startingwiththetop linewehadorganicrevenue
growthof around1%, slightly lower than theoutlook, top rangeof theoutlookdue to lower
handset sales. That also translates then intoabettermargin.Weguidedaround34%andwe
cameinat34.5%,sofromamarginpointofviewitwasbetterthantheguiding.
Onthecapextosalesweendedtheyearat14.1%.Themainreasonforendingup inthehigh
range was the significant efforts of rolling out the 2.1 GHz network in DTAC which Fredrik
mentioned which has now more than 12 million customers. So all in all the full year
performanceinlinewithoutlook.
Thenadeepdiveontherevenuesandwehaveareportedrevenuegrowthofaround6%-that
isalsoduetotheweakeningNorwegiancurrencywhichwehelpwithand1%organicwhenyou
correct for currency movements in the quarter. But the slide at the right hand side here is
maybe the most important one at least in my opinion where we see the underlying mobile
subscriptionandtrafficrevenuegrowthforthegroupintotalandalsobrokendownonthekey
regions.Thetrendsinthefourthquarterisstable,whatwehaveseeninthelastcoupleofyears
around 4% organic mobile subscription traffic revenue growth, but you see significant
differencesbetween the regions.Asia in the fourthquartermaintainedahigh levelofaround
8%,strongmomentum inmostof theAsianmarkets.TheEuropeanmarket isverymixed.We
haveSwedenwhichFredrikshowedhad11%underlyingsubscriptionandtrafficrevenuegrowth
whileDenmarkontheotherhandwith-9%andalsoHungaryandSerbiaareontheweakerside
thisquarter,buttremendouslyhelpedfromthestrongmomentuminSweden.
Then finally onNorwaywe see still in thenegative territorywith -2%mobile service revenue
growth,althoughasmallimprovementfromthethirdquarterbutit’svitalgoingforwardtoget
Norwayback topositivegrowthmomentumsowealsocanhaveahighergrowthmomentum
forthegroupintotal.
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Thenhowdoes this translate into theEBITDAbecause1%growth isnot thatmuch,butwhen
youseethatmobileservicerevenuegrowthis4%thattranslatesintostrongEBITDAgrowth.So
in total we were able to grow EBITDA this quarter to NOK 9 billion which is an increase of
NOK800millionyear-on-year.Thereare twomain reasonsoutside thenormalgrowth: that is
currency, we were helped by approximately NOK 200 million by the weakening Norwegian
kroner;andaboutNOK200millionfromGlobulwhichweacquiredwithaccountingeffectsfrom
August.Butyoualsoseeastrongorganicgrowth in the restof thegroupand the threemain
contributors this quarter were DTAC with close to NOK 300 million; India, a little above
NOK200million; and a strong performance in Swedenwith a growth ofNOK 184million.On
otherunitsweseeadeclineofNOK102million.ThemainfactorthereisTelenorNorwaywhich
hadanunderlyingdeclinecorrectedforone-offitemswithapproximatelyNOK120million.The
main reason for that is a continued drop in gross profit in the fixed operation and increased
operationandmaintenancecostsinthefourthquarter.
Capex,strongperformanceonEBITDAbutwearealsoinvestingatrecordlevelsinTelenornow.
CapexinthefourthquarterwasNOK4.6billion.Morethan50%ofthecapexisrelatedtoDTAC
and Norway as you see on the pie chart on the right-hand side, Norway continued the high
capexlevelinvestinginto4Gandfiberandwehavenowmorethan50%populationcoverageon
4GinNorway.DTAC,it’sthemainchangereallyfromthefourthquarterlastyearandmorethan
NOK800millionofthechangeyear-on-yearcomesfromDTACwiththe2.1GHzroll-out.Wealso
seetheblackpartofthepiechartisGrameenphonewhichhasnowstartedtoinvestin3G.We
seeverypromisingearlysignsfromthoseinvestmentsandifthepoliticalenvironmenthadbeen
more stablewewouldhave shownevenbetter figuresonGPandweare Iwould say looking
forwardtoseewhatwecantogetherwithGPtakeoutofthat3Geffortwearedoingnow.
Wearerunningatahighcapexlevelin2013andaswesaidontheCapitalMarketsDaythatwill
alsocontinue into2014. Inadditiontothehigh investment levels inNorwayandDTAConthe
2.1GHzwewillhaveanewsatellitenextyearinbroadcast.Thor7willbelaunchedandthatis
estimatedcapexofNOK1.5billion.So thatwill addapproximately1.5% to thecapex to sales
level next year.Wewill also change the network in Bulgaria. As you knowwe have changed
networks in all the Telenor operations tomodern IP networks, Globul which we acquired in
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August,theyhaveanoldnetworkandthat'sbeenapartofthebusinessplanall thetimeand
that’swhatwillbedonenextyearadding tocapexalso in2014.Thenafternowthebusiness
transfer,wecanredeploythe5,000sitesfromtheexitedcirclesinIndia.Thatwillhaveacapex
effectofaroundNOK300millionandalsoanopexeffectofaroundNOK300millionbecausewe
renttowersandwehavetoenergisethesitesandbeforewecanfillthemwithcustomersthey
willhaveaquickpaybacktime,wewillhaveanegativeeffectonbothEBITDAandcapexinIndia.
Iwould also like tomention at this point in time that the Indian total peak funding frameof
INR155billion,weconsider that tobemetnowbecausewearemoreor lessexcluding these
5,000sitesinIndiaatacashflowbreakevensituation.Ifwelookatthetotalmoneyweinvested
intoopexandcapexinIndia,alltheeffectsthatcameoutofthelicencecancellationincludinga
refundtaxdeferredpaymentandeverything,wearewithintheINR155billionframe.SoIthink
wewill state thatwearewithin that frameandhavepassed thatphasenow in India.Weare
participatinginthecurrentspectrumauctioninIndiaandthatisstillongoing,acomplexauction
andwedon’tknowhowlongthatwilllastbutwewillletyouknowwhenit’sfinal
So that was on the capex. So that translates into the cash flow for ’13 and wemanaged to
improvethecashflowfrom‘12to‘13despitethesignificanthighercapexlevel.Asyouseefrom
therighthandcharthereweinvestedmore,increasedcapexbymorethanNOK2.4billionfrom
‘12to ’13,butduetothestrongunderlyinggrowth inmobileserviceandtrafficrevenuesand
that’swhyIamstressingthisbecausethatissoimportanttotrackandit’ssoimportanttoturn
positiveinallourmarkets.ThegrossprofitincreasedbyNOK3billion.Sowehaveamuchmore
healthy underlying cash flow in 2013,, revenues added an EBITDA effect from gross profit of
aroundNOK3billion.Of coursewewouldhavehoped formorebecauseasyouall knowour
targetforrevenuegrowthwasevenhigher.Wehadhopedforevenhighermobileserviceand
traffic revenue growth but still the growth has contributed NOK 3 billion on gross profit last
year.
OntheopexsideasyourecallfromthepreviousCapitalMarketsDayourgrosssavingsambition
wasaroundNOK5billion.Partofthatgoalwasmetlastyearandwewereabletokeepopexflat
despite a significant increase in regulatory costs, salaries, inflation, number of sites, more
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commissionsandthatyouseeonthechartherethatopexwasflat.Butthetoplineshouldhave
beenbettertomeettheopextosalestargetfully.
ThenontheP&L,we’vebeenthroughtherevenuesandtheEBITDAalreadyonotheritems.We
have redundancycosts inNorwayandGrameenphoneas thebig ticket itemsasapartofour
efficiencyprogrammes.Wealsohavetocontinuouslybemoreeffectiveonmanpower.Nothing
abnormal indepreciation. In theassociated companies, that’sVimpelComandEvrywhichare
thetwobigitems.WehaveupdatednowwiththeEvryfiguresforthefourthquarter,thatwas
reportedonMonday,therewasanimpairmentlosstherewhichgoesintoassociatedcompanies
witharoundNOK160million.
Onthetaxsidewehavesomeone-offitemsthatcontributepositivelyonthetaxesofmorethan
NOK200million,sotaxcoststhisquarter isonthe lowside.Thenwehaveaspecialeffecton
theminorities that Iwant to explain in some detail.Whenwe transferred the business from
Uninor to Telewings, Telewings paid a consideration toUninor. All the assets in Uninorwere
writtenoffsothisresultedinagaininUninor.Onethirdofthatgaingoesbook-keepingwiseto
theminorities.Obviouslyallthecashthatgoesindoesnotgototheminoritiesbutitgoestothe
creditors of Uninor, but that creates a special negative effect you can say for the majority
shareholdersinTelenorontheearningspersharesofaroundNOK660millioninthisquarter.All
inallweendedthequarterwithNOK2.4billioninnetincomeexcludingtheUninoreffect, it’s
aroundNOK3billionandthatrelatestoanormalisedearningspershareofaroundNOK2per
share.
Thenonthebalancesheet,leveragemeasuredinnetdebttoEBITDAisstable,NOK1.1,wewere
abletogrowEBITDAalthoughthedebtisgrowingsomewhatslowerbuttheratioisstable.On
the reconciliation here you can see how the debt changed from 37.8 to 39.4 startingwith a
strongEBITDA,paidtaxesandinterest.Onthecapexsideyouseethatcapexpaidishigherthan
capexbooked.ThemainreasonisthespectrumextensionwedidinHungaryinthethirdquarter
thatwas paid in the fourth quarterwith approximatelyNOK 600million. Then dividend from
associated,that’sthelastdividendforawhilefromVimpelCom,NOK1.6billionreceivedinthe
fourthquarter.Thenwehavedonesomeacquisitions,thejointventurewithSchibsted,abank
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inSerbiaandsoon,totalNOK1.6billion.ThenwehavepaiddividendtominoritiesinDTACand
DiGi;andthenaspecialeffectthisquarteristhatwepayuptherevenueshareinDTACinthe
fourthquarter.Weaccruethatinthefirstthreequartersandit’spaidoutinthefourthquarter
andasignificantamountwithNOK2.6billion.CurrencyeffectsonthedebtwhentheNorwegian
kronerdepreciates,debtinforeigncurrencygetshigherandthensomeworkingcapitalchanges.
Sonobigmovementsonthedebtandtheleverageratioisstable.
Thenalittlebitmorecolouronthedividend.Onthebackofthestrongresultsin2013andthe
healthy balance sheet you just saw the board of directors proposed a dividend per share of
NOK7.Theproposeddividendisinlinewithourdividendpolicy.Ittranslatesintoa73%payout
ratio and as you recall the payout range in the policy is 50-80%. It represents a 17% growth
versuslastyear.ThetotalpayouttoTelenorshareholdersbasedonthisdividendifapprovedis
NOK10.6billionandthepayoutwillbeon29thMayfollowinghopefullytheapprovalfromthe
AGMon14thMay.
Then to the outlook. First of all like we had the press conference onMonday this week on
Myanmarandgaveamore longtermupdateonMyanmar, this isastart-upyear,wefound it
mostappropriatetoguideexcludingMyanmar.Whenitcomestothetoplinewecertainlyaim
for an improvement compared to 2013. We have chosen to guide low single-digits because
thereareuncertainties.Wewillbehelpedbyalowerinterconnectrate.Theinterconnecteffect
in2013willbesomewherebetween1.5-2%ontherevenuegrowth.Inorderforustoimprove
from2013,yes,wewillhaveaneffectfromtheinterconnect.Weneedtoseestrongertrendsin
themobileoperationinNorwayontheunderlyingmobileservicerevenuegrowth.Weneedto
see the continued growthmomentum in India; and finally amore stable political situation in
BangladeshandThailand.Butforthetimebeingwehavestillanegativemobileservicerevenue
growthinNorway.ThereisstillsignificantpoliticalunrestinBangladeshandThailand.Wefindit
most prudent to guide on a quite wide range on the organic revenue growth with low
single-digit.
OntheEBITDAmarginweended lastyearwith34.5%.Weareguiding tobe in linewith that.
Youmay think that’s on the conservative side and yes, we definitely have a higher ambition
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internally to beat that, but to beat that, that depends on some of the same elements I
mentioned on the organic revenue growth. Bothmore political stability in someof theAsian
markets including not only Thailand and Bangladesh but also Pakistan. We need to see the
trendsinNorwayonthetoplinebeingturnedandalsodeliveronthecostefficiencyprogramme
for2014.Wehaveevenhigherambitionsonthecostsidein2014thanwehadin2013,soit’s
earlyintheyear.Wethinkgivenalltheuncertaintieswethinkit’sprudenttoguideinlinewith
2013butagaintheinternalambitionisdefinitelyhigher.
Onthecapexside,wehavealreadybeenthroughthat,thereasonwhyweincreasedfrom14%
to16%mainlyexplainedbythesatelliteinthebroadcastbutalsoahighinvestmentlevelinthe
otherareasandwedefinitelyaimtotakethatdownin2015tosupportthetargetwehave in
2015.Butagainwewillnotcutcapexarbitrarilyifwefindthelongtermprofitabilitytobegood
frominvestments.
SothatendsthenumberpartofthepresentationandIwill justthensumupbeforetheQ&A.
StrongunderlyingservicerevenuegrowthandrecordhighEBITDAin2013andonthebackdrop
ofthatandstillastrongbalancesheet,recordhighdividendofNOK7pershare.Thenagainthe
priorities for 2014, deliver on the internet for all strategy especially in Asia; continue to
monetise the big data investments we are doing; and deliver on the efficiency programme.
Thankyou.
MeeraBhatia: ThankyouRichard.CouldIaskFredrikbackonstagepleaseandwearenowopeningup
to the Q&A session.We will start with questions in the audience and a microphone will be
passedtoyou.Inthemiddlethereplease.
ChristerRoth: Thankyou.ChristerRoth fromDnB. JustaquickquestiononNorway.With respect to
theverystrongsubscriptionpricelevelsthatnewsubscriberscameinatinQ4,whatwouldthe
implications be for service revenue growth organically if we stay at these levels throughout
2014?AlsohowmuchroomisthereforfurthercostcutsinNorway?Thankyou.
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JonFredrikBaksaas: Ithinkyouhaveaspreadsheetthatcangiveananswertoatleastthefirstpart
ofyourquestion,becausethereisabetterbalanceinthecustomerstockrightnowthanwhatit
was in particular in the secondquarter last year.What that translates into in direct figures, I
don’tthinkIhavethosekindofdetailswithme.SoagainyourspreadsheetisasgoodasoursI
guess.
RichardOlavAa: Butjusttopointout,thesepackages,that’sintheconsumermarket.Youhave
toalsofactorinthecorporatesales.
JonFredrikBaksaas: Thenonthecostside,thetransitiontoallIPisabigchangefortelecomsandwe
areinthemidstofthat.Howeverwearealsoa24hourkindofoperationthatneedstomake
surethatallcommunicationservicesareworkingaslongastheyarethereservingcustomers.So
it’sonlywhenatechnologygenerationisphasedoutthenifyoureallyhaveabigpotentialfor
thecostsavingsandthisisparticularlyrelevantforthefixedlineoperationwhichstandswitha
good revenue and an important revenue stream, but still also stands on technologies that
requirebigcoststructurestoentertain it.So,seeingthenumberof linesandthetransitionto
mobilehappening,weareinthatbigtransition.Sograduallywewillbeabletotakeoutcostsin
thesamewayaswehavebeendoingforthelast10-15yearsalmostandwe’vestartedtoreally
begin the realignment of prices and deploying new technologies in the mid-90s. So this will
continue also this year. Remember also here that the underlying usage by consumers are
changingphenomenallyinthesedaysandifourpricingstructuresdonotfollowthatchangeand
usagepattern,andthecoststructures,thecoststructuresneedtobealignedaccordingly.That’s
whatwehavebeengoodatdoinginNorwayforyearsandthat’swhatwearegoingtocontinue
todoinNorway.
MeeraBhatia: Anyfurtherquestionsfromtheaudience?
EspenTorgersen: Hi,it’sEspenTorgersenfromCarnegie.JustaquickquestiononIndia.Nowthat
youhaveredeploymentcostsandcapex,howshouldweseeprofitabilitytrendsfromhereonin
2014?
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RichardOlavAa: IthinkwewillhavethisextraNOK600millionconnectedtotheredeployment
ofthosesites in2014which I thinkmakesa lotofsensebecause it’s idleequipmentfromthe
exitedcircles. Sowehavekindof reacheda targeton thebusinessbeforewe redeploy those
sites,buttheywillhaveanegativeimpactin2014thatwilltakeUninorintonegativecashflow
in2014.
MeeraBhatia: Anyfurtherquestionsfromtheaudience?IfnotthenIwouldliketoasktheoperatorto
openthephonelinesplease.
Operator: Certainly.Wewill now takeour first telephonequestion fromPeterNielsenofKepler
Cheuvreux.Pleasegoahead.
MeeraBhatia: The line is open, you can ask your question please. Could we move on to the next
questionplease?
Operator: Certainly.WewillnowtakeournextquestionfromUlrichRatheofJefferies.Pleasego
ahead.
UlrichRathe: Yes, thanks very much. I was wondering about the assumptions behind your 2014
guidance,inparticularIwaswonderinghowdoyou...what’syourbasecaseassumptiononthe
macrofrontandhowitmightaffecttheAsianmarkets?Alsowhatyourassumptionsarevis-à-vis
theNorwegianmobileresultsgiventhatonesharepressurearisinginnewentrantsisobviously
atleasttemporarilynotinthemarket,sowhatdoyousortofbakeintothat?Thatwouldbemy
firstquestion.Thesecondoneisjustaconfirmation,thecapexguidance,canIjustconfirm,the
capexguidanceexplicitlyexcludesMyanmaraswell?Thenthelastonewouldbewithregardsto
thedividend,youannouncedaNOK7dividendbutyoualsomentionedthatfortheforeseeable
futureyouwon’t getanassociatedividend fromVimpelCom.Couldyou just commenton the
dividend outlook given that you don’t gather cash flow from the associates which is quite
material to the whole and I guess what you anticipated before VimpelCom announcedwhat
theydid?Thankyou.
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JonFredrikBaksaas: Maybe I can start on that one and Richard will take some comments to the
latterpartsofyourquestion.Themacroassumptionhereisreallyquiteeasy.Wedon’tbelieve
thatEuropewillsortofkick-startintoeconomicgrowth.Webelievetheeurowillstillstruggle.It
mightbethatyouareseeingEuropeonthepositiveside,buttoseeEuropesortofkickstartinto
significant growth figures in 2014, we don’t see that. So let’s keep Europe at that level. The
ScandinaviancountriesaspartofEuropehashadabetterridethantherestofEuropeandwe
still consider thatNorwayandSwedenwill have that kindofbetter ridaswe’ve seenbefore.
We’reprobablyseeingDenmarkmoreassociatedtotheEuropeanstatusthanforNorwayand
Sweden.InAsiawebelievegrowthwillstillbemaintained.Theremightbevariationcountryby
countrybuttheunderlyingdevelopmentoftheconsumereconomiesandthemiddleclassbuild-
upinmostofthesecountrieswillstillgiveuseconomicgrowthinAsia.Thepercentages,ok,it
might vary from country to country and also a country like Thailandwe see a newprognosis
becauseofthedifficultandchallengingpoliticalsituationinthecountryrightnow.Howeverwe
do believe that elements like that are fairly short term. A new entrant to Norway, yes, who
knowswhether thenewentrant inNorway is a real newentrantorwhat’s thepurposehere
remainstobeseen.SoIhaven’treallyanymorecommentstothatandwehavetoseewhatwill
beunfoldingbehindandaftertheauctionthatjustcamethrough.Maybeyoucancommenton
capexandthedividendoutlookRichard?
RichardOlavAa: Yes. We can confirm that total guiding is excluding Myanmar from all the
numbers. On the dividend sidewe have been livingwith VimpelCom formany years andwe
have had dividends, very good dividends from VimpelCom over the years. We actually have
moredividendsfromVimpelComcominginthanwehaveinvestedinVimpelCom,sowehavea
net positive gain on that. But we have seen from periods both from VimpelCom and our
previousinvestmentinKiwiStarthatdividendshavebeencurbedovertimeforvariousreasons.
Wehaveneverkindoflaidupourowndividendpolicybasedoncontinueddividendflowfrom
VimpelCom. So when we now put out the dividend of NOK 7 that is based on the Telenor
consolidated figures.Wewill definitely have liked the dividend from VimpelCom to continue
longerbutthat’showitis,buttoconfirmthatitwillnotimpactourdividendpolicy.Justtoputa
littlebitofcolouronthemacrosideaswellonAsia,Ithinkwherewestrugglethemostisreally
BangladeshandThailandfromthepoliticalside,moresevere inBangladeshthanThailandand
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it’s very hard to say how that is going to develop but I think we have been prudent in our
guidance putting it that way that we have put in some room for continued unrest in these
countries.
UlrichRathe: Thanksverymuch.Thankyou.
Operator: Thankyou.Wewillnowtakeournextquestion fromTerenceTsuiofMorganStanley.
Pleasegoahead.
TerenceTsui: Good morning everyone, thanks very much. I’ve got a question on the longer term
guidance, just firstly related to that, do you still reiterate the ambition of reaching the NOK
28-30billionIthinkby2015?Thensecondlyyoudidmadethepointthatthe2014guidanceis
somewhatprudent,maybeyoucanremindusofthekeybuildingblocksfromthe2014guidance
ontothemorebullishguidancefor2015?Thankyou.
JonFredrikBaksaas: I can start somewhat on the longer term prospects of the NOK 28-30 billion
target.Thattargetwasputupunderasetofassumptionsbackthenandwedoseethatinorder
toget there theseassumptionsaremore tightlyput together thesedays thanpreviously.The
growthpartofitisweakerthisyearthanfor2013thanweanticipated,sothegrowthelementis
ofcourseplayingonepartofthattarget.Anotheroneisasuccessfultransitionofthetransfer
fromtheconcessionregimetothe licenceregimeinThailand.Weareunderwaywiththatbut
alsothegrowthaspectsoftheeconomyassuchandthecompetitiveintensityarounditplaysa
role. Number three is to get back into a growth momentum in Norway when it comes to
monetisingthedatapartofthehighconsumerintensityasweseeitinNorway.Igaveyouthe
figures. There is a67%growth in volumesboth in2012and2013andweneed tobeable to
transferalsoandchangeourpricingmechanismsinthatdirection.Fourthlywhatwearemore
internallyresponsible for, that is thecostefficiencyprogramme.Wehaveprovedandshowed
thatwehavebeenable todeliveron thatconsistentlyperiod toperiod, so that’smoreunder
ourcontrol.ThenRichardmaybeyoucangivesomecolourtothe2014?
RichardOlavAa: Yes,Ithinkthequestionwasmainlyrelatedto2015asIunderstandit.
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MeeraBhatia: The2014guidance...
JonFredrikBaksaas: Thequestionwasthebuildingblocksandhowwewerereasoningonthe2014
guidance?
RichardOlavAa: Yes,absolutelyandittouchesonmanyofthesameaspectsthatyoumentioned
Fredrik.Whatwehavetoachieve in2014toreallybeatourEBITDAguiding in2014tobuilda
solidmomentuminto2015,andthatgoesofcoursethento improvegrossprofitevenfurther
and that like Fredrik said, Thailand and Norway are the two biggest mobile entities, with
Thailandsomemorecompetitivepressureandthemacrosituationandtheabilitytomonetise
on the big investments we are doing in the mobile network in Norway. So seeing stronger
momentumon those fronts and themore stablemacroeconomic environment. Ifwe achieve
that should enable us to beat our own guiding in 2014 and deliver a strong gross profit
development also in ‘14 and into ‘15 and then also deliver on the NOK 5 billion opex
programme.LikeIsaidwehavehighertargetsontheopexprogrammefor2014thanwehadfor
2013.Thenfinallyonthecapexside,aswesawwehavenow14%capextosalesexcludingthe
satelliteapproximately.Ofcoursethatneedstocomedownin2014toreachtheambition.It’s
notrealistictoreachtheambitionwiththecapexlevelwehavetoday.Howeverweneedtotake
acloselookatcapexfiguresinto2015atthatpointintimebecauseweneedtoalsothinklong
termonwhatmakessenseforourlongtermprofitability.Butthosearecallsthatwillbemade
later.
TerenceTsui: Thankyou.
MeeraBhatia: Nextquestionplease.
Operator: Thankyou.OurnextquestioncomesfromNickLyallofUBS.Pleasegoahead.
NickLyall: Yes,morning, it’s Nick Lyall at UBS. Could I ask a couple of question please? On the
Norwegian costs would you just mind clarifying, you've said you're looking for more costs
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specificallyonNorway.We'vebeen told thismorning therewas lowervisibilityonNorwegian
costsbutistheabsolutegrosstargetthisyearfortheNorwegiancostcuts,isthatthesameor
largerthanlastyear?SecondonDenmark,nowthatyouareseeingsomereasonablepostpaid
adds, are you happywith the strategy now in Denmark and do you think it's timemaybe to
reducetheaggressionalittlebitintheDanishmarket?FinallyjustonBangladesh,couldyoujust
clarifyagain,yousaidtheelectionsfinishedby5thJanuary.Haveyouseenthecountrystabilisea
littlebitintermsofdisruption?Alsoareyouhappywiththeoutlookfor3Glicenceinvestment
thisyear?ShoulditbeabetteroutlookforBangladeshthisyear?Thankyou.
JonFredrikBaksaas: Let’s start in the latterendelections inBangladesh. I thinkyes, that there isa
more stable situation in Bangladesh into 2014 thanwhatwe had in the second half of 2013
leading up to the elections, but that doesn’t mean that the overall situation is over. This
questionmightberevisitedafterawhile.Butit lookslikethecountrybasically isnowtakinga
fresh lookatthefutureand localdemandsandthatwecangetbitmorenormalconditions in
2014,butthisalsorelatesastowhetherthecountrymanagestoattractalsootherforeigndirect
investmentstohappeninthecountrybecausetheirneedsarequitesignificant.Arewehappyin
Denmark?OfcoursewearenothappyinDenmark.Denmarkisthemostchallengingmarketfor
us over a quite number of periods Iwould say. However the presentmanagement has led a
stonebystonestrategyinordertoradicallysimplifytheoveralloperationsonitswaytoall IP.
It’sthefirstoperationintheTelenorGroupthattakesthatjourney.Thisisanewwayofthinking
onhow to run andoperate in the IP space going forward. Those results need tobe followed
throughout2014andMarkandhisteamarewellunderwayinthatdirection.Richard?
RichardOlavAa: ThenjusttobridgealittlebitonDenmark,it’saquestiononaggression.Idon’t
thinkweareparticularlymoreaggressivethanothersintheDanishmarketandit’sanextremely
toughmarketplace and as you sawwe have lost lot of customers in the first ninemonths of
2013 – that could obviously not continue so we had to take back customers in the fourth
quarter.So fortunatelybygoodefforts inDenmarkwewereable tostabiliseat least thepost
paidcustomerbaseinthefourthquarter.WhenitcomestothecostefficiencyinNorway,ifyou
look at our achievements in 2013, Norway was actually the biggest contributor to the opex
savingsinthegroupandNorwayasawholeyearmettheiropextargetnominally.Howeverwith
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thetopline,theopextosalesdevelopmentinNorwaywasnotasgoodasitshouldbe.SoIthink
going forward Norway has a big part of the total Telenor cost agenda and we need to
continuouslyworktoexecutethat.Thatwehavedoneformany,manyyearsandIamsurewe
willlikeFredriksaid,that’sunderourcontrol,wewilldeliveronthat.ThemainissueinTelenor
Norwayrightnowistoturnthetoplinepositivetogetenoughproductivityandastrongerprofit
development.Therehavebeendecliningprofitdevelopmentsnowforacoupleofquartersand
thatneedstobeturnedaroundbythecontinuouscostprogramme,butevenmoreimportantly
changingthetrendonthetoplinerightnow.
NickLyall: Great.Thankyou.
Operator: Thankyou.Wewill takeournextquestionfromDominikKlarmannofHSBC.Pleasego
ahead.
DominikKlarmann: Hi,thankyou.Onthemid-termoperatingcashflowguidance,areyouprepared
togiveanewoneandthenincludingoratleastexcludingMyanmar?Thensecondlyoncapital
allocation I'mjustwondering ifyouarebusywithMyanmarnowandmoreexpansion isa low
priorityatthisstageoristheremoreappetiteformoreexpansionoracquisitionsandifsofrom
yourmacrocommentsearlier is it fairtosaythatAsiaforyoustill looksmuchmoreattractive
thanEurope?SobasicallyGlobulremainsabsolutelyanexceptionandyou’remorelookinginto
Asiaforopportunities?
JonFredrikBaksaas: Well,wehavein2013addedtwomorecountriesandthisofcourseneedstobe
handled by the capacities we have in particular on the human resource side. So two new
operationsbasicallydigsintothehumanresourcebasetoacertainextent.Soforustosortof
lookextensivelytonewcountriesisnotontheplateforthetimebeing.Thatdoesn’tmeanthat
wedon’t followand listen intowhatkindofdynamicsthatthesemarketsmightofferandour
eyes thenwill bemore strongly focused on Asia than on Europe. Deeper than that into that
questionIdon’tthinkIhavethepossibilitytomoveactually.Mid-termguiding?
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RichardOlavAa: Yes,yourquestionalsorelatestoAsia...ifyoulookatunderlyingtrendsnowin
Asia,yousaw8%servicerevenuegrowthinAsiaandalsoifyoudecomposeforguiding,wewill
notgiveyouthedetailsbutobviouslyDTACandDiGihavebeenoutwith theirguiding, so it’s
easy to kind of reconcile that the EBITDAmargin is growing in the Asian units and with the
guidingwearegivingyouthenweareassumingthatit’sdecliningintheEuropeanunits.Soit’s
nomatter...theattractivenessofAsiaisofcourseveryimportantandwearealsonowworking
quite intensively I would saywith the new joint venturewe havewith Schibsted to see how
thoseservicescanhelpusbuildingasolidposition inAsiaandhowwecancombinethatwith
mobile services. That’s actually quite interesting in the transitionwe are right in now and to
reallyworkontheinternetforallstrategy,onthekindofcustomerbasewehaveinAsiawith
nowmore than120millioncustomers, it’sabigvaluecreationopportunity, so really to focus
ourresourcesonthat.Financialservices,classifiedmobileservicesIthinkcanbeveryexcitingin
themidtolongertermperspectiveforTelenor.
MeeraBhatia: Nextquestionplease.
Operator: Thankyou.WewillnowtakeournextquestionfromJakobBluestoneofCreditSuisse.
Pleasegoahead.
JakobBluestone: Hithere,I’vegottwoquestionsplease.Firstlyyoutalkedabitaboutwantingto
improvegrossprofit inNorwegian fixed line.Lookingatyoursortofdatasheet, it seemsthat
thebiggestpressureonyourgrossprofitiscomingfromthefactthatyourtelephonyrevenues
are falling 16% and that in turn seems to be driven by an acceleration in loss of telephony
customers,socouldyoumaybetalkalittlebitaboutwhatyoucandotomaybeslowthelossof
what I assume are highermargin customers on the telephony side inNorwegian fixed? Then
secondly just on the dividend continuing from an earlier question, given that your dividend
payoutisnowclosetotheupperendofyourpayoutrange,isitfairtosaythatweshouldn'tbe
expectingthesortofmid-yearbuybacksthatyou'vebeendoinginrecentyears?Ithinkinpast
callsyou'vetalkedaboutalackofliquidityintheshares,soshouldwebelookingfornofurther
buybacksfornow?
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JonFredrikBaksaas: MaybeIcanjuststartonthatone.Thelossoftelephonycustomersonfixedline
in Norway has been very stable actually, sowe don’t see sort of kind of an increased trend.
There isnodoubt that thecustomerbasegradually reducesmonthbymonth;and thenthere
areboththepricingissuethatyoucanhaveonthatanditisalsoacoststructureapproachtoit.
WearealllaunchingnowaninitiativetogetherwiththeITvendorsinordertoseehowwecan
run this stack more efficiently. This project will be decided upon this spring. So we are
addressing both the revenue side and the cost side. The pricing mechanism is of course an
importantpartofthis.Canweleveragethepricingmixinadifferentsetinordertoshelterand
keeptherevenuegenerationfromtheoperationassuch?Asfordividend,Richard?
RichardOlavAa: Yes.Nowwehavecompletedcloseto10%ofbuybackoftheTelenorsharesand
thatwasdone inaperiodwhere the India losses tookaheavy toll onourearningsper share
whichwasthekindoffundamentalforthedividendpayout.NowwhenIndiacomestoamore
stable situation the EPS growth in itself will cater for the bulk part of the shareholder
remuneration. So I think you should expect that themain part going forwardwill come from
dividends.Wewillnotruleoutbuybacksbutthedecisionmadebytheboardyesterdaywasto
recommenddividendonly.
JakobBluestone: That’sgreat.Thankyou.
MeeraBhatia: Timeallowsforonemorequestionplease.
Operator: We will now take our final question from Andrew Lee of Goldman Sachs. Please go
ahead.
AndrewLee: Thanksverymuchandgoodmorningeveryone.Ijustwantedtofollowuponthe2015
guidancequestions.MaybeImisseditbutareyoustandingbythatguidanceornot?Justalittle
moredetailonthat.Givenit lookslikeyou'llbegeneratingaroundNOK20billionofoperating
cash flow in2014canyoutalk throughthepillars toget theNOK28billion in2015?Yousaid
growthismoreuncertain,butwhat'sthemixbetweencapexreduction,opexreductionandthat
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top linegrowth that is required?Doyouno longer think that10%capex to sales isa realistic
target?Thankyou.
JonFredrikBaksaas: IthinkRichard,youarethroughthedifferentpillars inthat.Maybeyoushould
repeatthatasaclosingremark.
RichardOlavAa: Yes, certainly. We are fully dependent upon a continued strong growth in
subscriptionand traffic revenueson themobile sideandobviouslyweneed toseesomewhat
strongertrendsthantheunderlying4%wehaveseeninthelast12monthsandweneedthento
turn positive trends in Norway on subscription and traffic revenues.We cannot tolerate too
many instabilities in the Asian markets and DTAC has to deliver a strong underlying service
revenuegrowthandtakeoutsavingsfromconcessiontolicence.SolikeFredriksaidsomeofthe
assumptionsherenowaretighternotat leastduetothepolitical instabilityandlowergrowth
factors in 2013 thanwehadexpected. Thenwewill see ifwe continue the trends in India, a
much stronger India in 2015 than in 2014 because of the reasonwementioned thatwe are
investinganotherNOK600millionintoopexandcapex;andthenthemain...sothosearebuilt
on assumptions thatwe think are achievable, but they are not easy to reach. Then themain
yokehowmuchcapexthatissensibletoinvestin2015.Obviouslywewillhavecompletedmost
of the 2.1 GHz rollout in Thailand,most of the 3G in Bangladesh, the swap in Globulwill be
done, thesatelliteswillbedone in2015andso thatwill itself reducecapexconsiderably.But
thenwehavetotakealookattherestofthecapexaswelltomakesurethatwedon’tdoany
short termactions just tomeetthetargets.Sothat inmyopinion ifweareabletodeliveron
these revenue growth assumptions which are not unrealistic but require a stable market
situationandgoodperformance, thenthemainquestionwillbehowmuchdowecurbcapex
andwhatiswisetodoonthecapexside?
AndrewLee: Thank you very much. Can I just ask one follow-up question? You’ve highlighted
Denmarkisyourmosttroublingmarket.WouldjusthavingawholesaledealinDenmarkrather
than keeping your consumer brand allow you to fulfil your pan-Nordic ambitions which
presumably is mainly to support your corporate business, i.e. do you need to actually be a
consumercompetitorinthatmarkettodeliverwhatDenmarkprovidestoyouroverallgroup?
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JonFredrikBaksaas: I think to that questionwe should thank you for the idea. Let’s think it over.
Thankyou.
MeeraBhatia: Thank you. Thank you Fredrik, thank you Richard. This concludes our session today,
slightlyovertime.ThankyouverymuchforyourparticipationandbothFredrikandRichardwill
beavailableforcommentstomediaandmycolleaguesandIwillmakeaninterviewlist.Thank
youverymuch.
JonFredrikBaksaas: Thankyoufrommeaswell.Thankyou.