ice: the high growth Norwegian 4G challenger Company Presentation - - PowerPoint PPT Presentation

ice: the high growth Norwegian 4G challenger

January 25, 2019 Company Presentation

2

Disclaimer I:II

IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, OR FROM OR TO ANY RESIDENT, ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. NO ACTION HAS BEEN TAKEN TO PERMIT THE DISTRIBUTION OF THIS DOCUMENT. THIS DOCUMENT IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES. By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you agree to be bound by the following terms, conditions and limitations. This Presentation has been prepared by Ice Group ASA. FOR INFORMATION PURPOSES ONLY. The Presentation is prepared for information purposes only. This Presentation is not a prospectus, including for the purposes of Directive 2003/71/EC, as amended (together with any applicable implementing measures in any Member State). The Presentation does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of the Company in any jurisdiction, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. NO VERIFICATION. The information is this Presentation is limited and does not purport to be complete or contain the information that would be required to evaluate the Company, its financial position and/or any investment decision. No action has been taken to verify its content. NO UPDATES. Nothing contained in this Presentation is or should be relied upon as a promise or representation as to the future. Except where otherwise expressly indicated, the Presentation speaks as of the date hereof. Neither the delivery of this Presentation nor any purchase of any of the securities, assets, businesses or undertakings of the Company shall, under any circumstances, be construed to indicate or imply that there has been no change in the affairs of the Company since the date

• hereof. In addition, no responsibility or liability or duty of care is or will be accepted by the Company for updating the Information (or any additional information), correcting

any inaccuracies in it which may become apparent or providing any additional information. The Presentation is necessarily based on economic, market and other conditions as of the date hereof or otherwise as stated herein. It should be understood that subsequent developments may affect such information and that the Company has no expectation or obligation to update or revise such information.

• SOURCES. Information provided on the market environment, market developments, growth rates, market trends and on the competitive situation in the markets and regions

in which the Company operates is based on data, statistical information and reports by third parties and/or prepared by the Company based on its own information and information derived from such third-party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. Unless otherwise stated, the Company is the source for information contained herein.

3

Disclaimer II:II

FORWARD LOOKING STATEMENTS. Matters discussed in this Presentation may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” “continue,” “should” and similar

• expressions. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and

potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; and developments in the Company’s markets. The forward-looking statements in this Presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of the Company or the industry to differ materially from those results expressed or implied in this document by such forward-looking

• statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved and you are

cautioned not to place any undue influence on any forward-looking statement. THE INFORMATION WITH RESPECT TO ANY PROJECTIONS OR FUTURE TARGETS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. RISKS ASSOCIATED WITH THE COMPANY. The recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company’s business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions. An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its

• securities. For a description of relevant risk factors we refer to the Company’s prospectus dated 27 November 2017 available on the Company’s webpage

www.icegroup.com. Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. GOVERNING LAW. This Presentation and any distribution and use of this Presentation shall be governed by and construed in accordance with Norwegian law. The courts

• f Norway, with Oslo as legal venue, shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with the distribution and use of this

Presentation.

4

ice – the high growth Norwegian 4G telecom challenger

Brand Revenue (first 9 months of 2018)2 Revenue growth (first 9 months of 2018 Y-o-Y)2 Attractive assets Smartphone subscriptions market share development

~NOK1.23bn ~30%

Smartphone + MBB1 MBB1 MBB1

0.9% Q2-18 Q2-15 7.4%

Source: Company information, NKOM (1) MBB = Mobile Broadband (2) Ice Group ASA

• Pure 4G network
• Attractive spectrum portfolio
• Low cost base

~436k subs as of Q3-18 Revenue mix (first 9 months of 2018)

89% 11% Norway Sweden & Denmark 70% 30% Smartphone MBB1

Currently conducting a strategic review for the business in Sweden

5

Our path to medium-term and long-term value creation

>20% subscriber share1 >25% ~NOK300 ARPU1,2 2.5% p.a. LT growth mid-30% EBITDA margin mid-40% ~10% capex / sales ~10%

Our 4 medium-term and long-term targets

Source: Company information (1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User

MT LT

6

ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

7

Attractive, growing Norwegian macro and mobile market

Rich and growing economy...

GDP per head at nominal value (NOK'000, 2017)1

507 370 16,8 19,6 2013 2017 +3.9% p.a.

EU-153

..supporting mobile market growth

Total mobile market value in Norway4 (NOKbn)

Real GDP growth '17-'21E (CAGR %)2

+1.7% p.a. +1.9% p.a.

Source: NKOM, EIU, Analysys Mason (1) 2017 average FX rate: US$/NOK=8.2683. Adjusted for Purchasing Power Parity (PPP) (2) CAGRs are not affected by FX (i.e. data based on local currency or converted at constant FX). Real GDP constant US$ at 2005 prices as estimated by the EIU (3) EU-15 countries include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom (4) Measured as end-user revenue. Mobile services comprise mobile telephony, MBB and M2M

1

~$2.4bn ~$2.0bn

USD equivalent

8

Norway characterized by high and growing ARPU and strong mobile data upside

293 306 160 Blended Postpaid Blended

EU-153

2.5% Blended Postpaid 1.5% Blended

• 2.0%

EU-153

A high ARPU market1 Growing ARPUs2 - CAGR illustrates a more for more market

Source: NKOM, Analysys Mason, Company, Telenor, Telia (1) 2017 average FX rate: US$/NOK=8.2683. For ARPU yearly average FX rate for historical periods and US$/NOK=8.2622 for 2017 as provided by Analysys Mason. Excluding M2M SIMs (2) CAGRs are not affected by FX (i.e. data based on local currency or converted at constant FX) (3) EU-15 countries include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom (4) Excludes MBB. Prepaid tariffs excluded based on Telenor and Telia reported figures. International roaming included in postpaid (5) Estimated based on Telenor and Telia reported figures, in addition to reported NKOM figures for MBB subscribers and revenue as of 1H 2018.

Expected data growth underpins further ARPU growth Smartphone postpaid ARPU benchmark (NOK Q2’18)

4 4

2017 mobile service ARPU (NOK/month) Mobile service ARPU evolution (2013-17 CAGR)

1

2017 yearly mobile service ARPU/nominal GDP per head (%) 0.5% 0.7%

230 332 Ice Blended Telenor and Telia

Ice Medium-term target: NOK300

5

EU-153

13,8 6,4 4,7 3,3 3,3 2,4 9.4

'17-'21E CAGR (%) 27.6% 23.6% 31.9% 30.3% 26.1% 38.3%

Implied ~3x data usage in 2021e

• Avg. data consumption per user (GB/connection/month)

9

Regulatory support for a competitive third network operator that can challenge the duopoly

• #3 player supported by government and regulator
• Remedies received from Telia after acquisition of Tele2
• Proposed spectrum caps in upcoming auctions
• Telenor regulated as a dominant player
• Telenor fined NOK788m for abusing market power and hindering

establishment of a third player in 2010-2014

• Telenor fined by regulator for violating ban on winbacks

1

"The Government considers it important to facilitate the establishment of at least three independent mobile providers in the Norwegian mobile market, thereby reducing the need for special regulation”

Source: Company information, NKOM, Regjeringen, Konkurransetilsynet

10

ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

11

We are winning market share

B2C2 smartphone subscriptions market share in (%) Smartphone subscriber base (k)

Source: Company information, NKOM (1) ice's mobile subscriptions (Norway only) as of 1H 2018 divided by the total number of mobile subscriptions in Norway as of 1H 2018 as reported by NKOM. ice's mobile subscriptions correspond to ice's smartphone subscriptions only (2) B2C = Business to Consumer

Overall smartphone subscriptions market share in (%)

2

5.1% 7.4% 2.5% Q2-15 Q2-16 Q2-17 Q2-18 0.9%

55 142 293 422 >20% MT target >25% LT target 436

Smartphone subscribers as of Q3-18:

B2C offering launched in June 2015

8.9% 0.0%

1

12

Our market share targets are in line with other 3 player markets

Top 3 players' Q2-2018 mobile subscriptions market share in 3 player markets (%)

• Tele2 had ~19% market share in Norway as the #3 player (without frequency portfolio) prior to the

frequency auction in December 2013

70% 28% 7% 86% 70% 30% 72% 27% 26% 74% 18% 82% #3 #1 / #2

2

Average: 26%

Source: Ovum

13

We put the customer first in everything we do

2

Expectations Quality & reliable Easy Fair & honest Value Helpful Control Reputation Innovation 5 6 7 8 9 10

• Improved perceived service quality
• Optimise IT back-end systems
• Launched Data Roll-over
• Launched Data Roll-over

sharing

• Try & Buy – customer can try for

two months before deciding on appropriate data plan

• Improved international bilateral

roaming

• New smartphone app for consumers
• Redesigned MyPages self-service,

improved and optimized customer service operations

• Revision of prices and launch of new

price plans

3 2 4 5 7 6 8 9 1 Product portfolio Touchpoints Network & IT We surveyed customers first… …and subsequently addressed their needs

Source: Company information

14

Our customer-focused strategy is working

B2C net additions 2016 and 2017 (000)3

2

Lower churn than competitor High NPS of 111 Taking subscribers from the duopoly

Comparison of ice’s NPS to main competitors

Average score difference 2017-Q3 20182

• 169
• 215

+292 25% 32%

B2C churn 2017-Q3 2018 (%)4

Source: Company information, Telia annual report, ice tracker/Norstat panel data (1) NPS score in September 2018 (2) NPS = Net Promoter Score. Based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague on a 0 to 10 scale? 9 to 10 are called Promoters, 0 to 6 are labelled Detractors, 7 and 8 are labelled Passives. The NPS is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters (source: ice tracker/Norstat panel data) (3) For Norway only. Based on latest available statistics from NKOM (4) Churn is defined as the percentage of subscriptions who move their subscription from one operator to another or cancels the subscription. Telenor does not report churn for Norway (5) Blended churn including smartphone and MBB

Gross add market share (%)

36% 31% 33%

20 17

vs. vs.

15

Our smartphone ARPU is growing steadily

2

Development in blended smartphone ARPU (NOK)1

128 131 143 145 150 153 154 108 96 89 79 78 77 80 Q1-18 227 Q1-17 236 Q3-17 Q2-17 Q4-17 Q2-18 232 224 228 230 Q3-18 234 Other Monthly Recurring Fee (MRF)

• Our Monthly Recurring Fee (MRF) has

increased by 20% since Q1-17 (~13% annualized growth rate)

• Increased smartphone subscriber base

by 62% in the same period

• Other (variable component) affected

by extraordinary events in the market (roam-like-at-home, 5-digit numbers, reduced interconnection fees, etc.)

Source: Company information, Telia annual report, ice tracker/Norstat panel data (1) Blended = B2C and B2B

16

Ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

17

We see a significant opportunity in the high usage segments and we now have the tools to address this segment

Source: NKOM, Management estimates (1) Estimated market share in Norway based on total mobile market size as reported by NKOM as of 1H 2018. Estimated market size for “Low usage B2C (postpaid)” assumes that the share of subscribers in the postpaid B2C market with 5GB price plans or more (as reported by NKOM) is classified as “high ARPU” customers. Revenue market share estimated based on the following assumptions: 1) Prepaid market size estimated based on weighted average ARPU for Telenor and Telia prepaid subscribers as of 1H’18, 2) “High ARPU” customers (above 5 GB) assumed to have an average ARPU of NOK 402, and 3) Ice revenue based on annualized 1H’18 smartphone revenue. (2) Business to Business

Smartphone market breakdown and market share by segment1 Tools to address high usage segment

• Competitive products and

price plans

• Expand device financing
• Presence in retail chains
• Strong customer care
• Growing brand awareness
• B2B specific solutions

1 2 3 4 5 6

38% 27% 62% 73% By subscribers By revenue 100% 100% Low usage B2C (postpaid) B2B, High usage B2C (postpaid) and prepaid Ice market share by subscribers (%) 7.4% 3.1% 14.5% Smartphone market breakdown (%) Overall market share B2B2, High usage B2C (postpaid) and prepaid Low usage B2C (postpaid)

3

18

We are successfully increasing the share of higher price plans in our base

Share of >2 GB price plans increasing as a share of total smartphone subscribers (B2C)

Source: Company information 1) Excluding “Bli Kjent” which represented ~34% of B2C new sales in Q3-18

3

21% 14% 18% 20% 12% 16% 14% 13% 67% 8% 12% 12% 43% 35% 33% 19% 20% 23% Jun-16 Jun-18 Jun-17 Sep-18 1 GB 500 MB 3 GB 2 GB 4 GB and higher

33% 38% 45% 44%

New sales mix (B2C)1 34% 15% 12% 17% 22% Q3-18

61%

19

Strong visibility on ~80% of our medium-term ARPU uplift to NOK300

Smartphone ARPU bridge (NOK)

217 300 20 40 16 Required uplift 7 B2C ARPU New sales (B2C) Existing customer upgrades (B2C) Constant B2B share and ARPU Target ARPU

Source: Company information Note: Analysis based on Q2-18 figures

• Increased share
• f higher usage

B2C and B2B

• Market growth

9% of portfolio is B2B with ARPU of NOK358 Existing customers trade up to higher price plans (~NOK2 per quarter) Current new sales mix implies an uplift in B2C segment

Accomplished if recent trading continues Additional growth

3

20

Ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

21

We are younger and enjoy structural cost advantages

Source: Companies' Q2-18 annual reports (1) At full scale in medium-term (after network roll-out) (2) Base Transceiver Stations (3) Full Time Employees

Mobile

• perations

launched BTS2 Technology Brands 2015 ~4k1 4G 1 1990s ~8k 2G / 3G / 4G 3 1990s ~5k 2G / 3G / 4G 4

• Less complexity, opex and capex
• Agile, fast, smart
• New core cloud
• Fewer BTS due to use of low frequencies
• ~ NOK100-400m lower opex p.a.
• One technology reducing complexity
• 4G most throughput / cost
• More efficient marketing
• Lower cost

FTEs3 ~200-2501 ~3,500 ~1,250

• ~ NOK1bn lower opex p.a. than #2 player

4

22

Our nationwide scalable network roll-out is expected to drive

• ur margins up

We plan to cover 95% of population…1,2

Source: Company information (1) Contracted sites amount to 2,087 as of Q3-18 and include sites which are in service, ready for installation/swap, CW completed, waiting for reinstallation with the contract signed (2) Excluding 400 picocells which would come in addition

• Enhanced customer experience

Key customer and margin benefits Smartphone population coverage (Norway) …and to capture +90% of data traffic On-net share of data traffic (%)

%

• Save on NRA costs
• Increased independence and

commercial flexibility

1 3 2 551 726 1 205 1 831 3,800 – 4,000 Q3-15 Q3-17 Q3-16 Q3-18 2020 target Operational sites (all bands, Norway) 59% Q3-16 0% Q3-18 Q3-17 Oct-18 Target medium- term 24% 64% +90%

83% 95% 50% 63% 24%

• Already contracted 5G ready

equipment

4

4

23

Our spectrum is cost efficient and we have spare capacity

• ice with initial focus on 800MHz in its network roll-out
• Low frequencies enable a «build as you grow» strategy

as fewer sites are needed to add coverage

• Continuously evaluating to add capacity or base station

if traffic is yielding strong ROCE in a specific area

… with substantial spare capacity Low frequency spectrum underpins cost and capex advantages

MHz/Subs (k)1

European telcos2

0,18 0,08 0,08 0.01-0.02

Source: Company information, NKOM, spectrummonitoring.com (1) As of Sep-18, including smartphone and MBB subs (2) Including Tele2 (Sweden), Vodafone (Germany), Telefonica (Germany), T-Mobile (Germany), Altice, Orange, Bouyges, Iliad, T-Mobile (Poland), Play, Orange (Poland), Telefonica (Spain), Masmovil, Vodafone (Spain), Orange (Spain) (3) BTS = Base Transceiver Station

Attractive spectrum portfolio…

Frequency band (MHz)

• Both coverage and capacity

frequencies

• Technology neutral frequencies

which can be used for 5G

• Upcoming auctions for

700MHz, 2.1GHz and higher

• frequencies. Proposed caps on

Telenor and Telia: max. 1/3 of 700MHz and no 2.1GHz

Duration 800 900 1,800 Total 2x10 2x5 2x20 90 450 2x5 2033 2033 2033 2019 2,100 2x5 2032 Amount

# of BTS required to cover the same area as one 700MHz BTS3

1 2 8 14 700 MHz 1,000 MHz 2,000 MHz 2,600 MHz

4

23% 38% 38% n.a.

Share of sub 1GHz smartphone frequencies (%)

24

Significant operating leverage from new cost structure and scale

4

Illustrative cost base split

41 35 54 1H-18 Pro forma (1H-18) Medium-term 130 Variable costs Semi-fixed costs Fixed costs

% of sales Network / IT Marketing Employees Other2 Customer operations NRA3 Roaming3 Commissions

Source: Company information Notes: 1 Assuming 2,000 additional sites and NOK 95k in opex per site added to Network / IT opex. NRA assumed at 6% of sales 2 Includes CPE, Consultants, Sweden and Denmark and other 3 NRA = national roaming agreement, i.e. use of Telia’s network in Norway. Roaming is customers’ usage of services abroad

1

Mid 30s% EBITDA margin Increased network costs Reduced NRA costs Economies

• f scale

25

Ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

Mid-30s and Mid-40s EBITDA margin targets (medium and long-term)

26

Source: Company information (1) Subscriber Acquisition Cost

+3% +17% Medium-term mid-30s% (3)%

• Adj. EBITDA margin

1H-18 NRA 1H-18 Medium/long-term NRA assumption SAC normalized (>30% currently) Scale benefits, ARPU uplift and gross profit from net adds

• Adj. EBITDA

margin target

1

c.+32pp c.(29)% c.(6)pp c.+20pp Pre-NRA EBITDA is already at breakeven Long-term mid-40s%

5

43% 38% 47% 34% 34%

Our mid-30s% medium-term EBITDA margin target leaves upside vs. peers

27

Source: Companies' Q3-18 reports (1) Considering total figures on a country level (i.e. including fixed line, broadband and TV when applicable) (2) H1-18 figures for Salt and WindTre

Significant headroom to achieve higher adj. EBITDA margins1

% EBITDA Margin, 9m-18 #3 player in 3 operator markets

40% Avg.

Norway

Norway 3 operator markets

% EBITDA Margin, 9m-18

39% Avg.

2 2

5

28

Normalized capex/sales after 2020 expected to support free cash flow generation

Source: Company information, peer companies’ annual reports

• Brand new network roll-out with 5G-

ready base stations

• Pure 4G-only network with less

complexity and costs (vs 2G and 3G)

• Spectrum portfolio with low and high

frequencies and substantial spare capacity

• Capex advantages from building

with low rather than high frequencies

Sweden (FY2015) Norway (FY2017) (FY2017) (FY2016 + FY2017) Denmark (FY2017)

Capex as % of revenue

Sweden (FY2017)

Our capex target is in line with capex of peers 5% 7% 7% 11% 11% 19% 8%

Before the FTTH investment in 2016 Legacy 2G and 3G

Spectrum portfolio and brand new network enabling low capex

Capex / sales target of ~10%

5

29

Our path to medium-term and long-term value creation

>20% subscriber share1 >25% ~NOK300 ARPU1,2 2.5% p.a. LT growth mid-30% EBITDA margin mid-40% ~10% capex / sales ~10%

Our 4 medium-term and long-term targets

Source: Company information (1) Target for smartphone subscriptions in Norway (2) Average Revenue Per User

MT LT

30

ice: the high growth Norwegian 4G challenger

Highly attractive and growing Norwegian market of ~NOK20bn

1

Low cost operator with structural advantages

4

Strong growth track record

2

Identified path to value creation and positive FCF generation

5

Source: NKOM

Multiple levers going forward to grow our ARPU

3

Appendix

32

We have simplified our corporate structure

Source: Company information (1) Legal names of the entities are: Ice Communication and Ice Norge (Norway); Netett Sverige (Sweden); and Ice Danmark (Denmark) (2) Nextel Holdings S.à.r.l. (3) FX US$/NOK=8.1802 as of 01-Jun-18 (4) The exchange ratio based on the fair value of ice group international AS and the assets in the Company allocated in the de-merger (5) There are currently 349 448 shares in AINMT Holdings AB which are not owned by ice group ASA. In addition, there are 150 000 additional options related to AINMT Holdings AB which can be exercised in the future

ice group’s current legal structure Previous legal structure Streamlined corporate structure

ice group ASA AINMT Holdings AB ice group Scandinavia Holdings AS1 Free float and other investors AI Media Holdings (NMT) LLC

64% 36% 99.8% 100%

ice Norway ice Sweden ice Denmark

100% 100% 100%

• Sale of ownership stake in Nextel Holdings2: US$70-75m (NOK573-614m3) sale of ice group's

30% ownership stake to Access Industries completed on 26 September 2018

• NOK500m of equity injected into ice group Scandinavia Holdings AS by AINMT Holdings AB
• De-merger from ice group of ice group's non-Scandinavian assets aimed at focusing ice group
• n the Nordics only
• Improved corporate structure: N:OTC listed ice group owns 100% of Scandinavian companies
• All shareholders of AINMT Holdings AB have or will swap their shares into shares in ice
• group. When the de-merger was completed, all shareholders in ice group received one share

in the de-merged entity for every share held in ice group4

• The Company plans to establish a new share option program5

ice group Scandinavia Holdings AS ice group International Holdings BV AINMT Holdings AB ice group AS (OTC listed)

Others

Holding companies Operating Companies

Free float and other investors

Nextel Holdings

33

Summary of key financials

Key P&L and cash flow items3

Source: Company information (1) 2015 reported EBITDA accounts for one-off positive effect of Network Norway acquisition (+NOK95m) (2) 2015 non-recurring items include positive effect of Network Norway acquisition (+NOK95m) (3) Group financials refer to ice group Scandinavia Holdings AS. Restated according to IFRS 15 and changes in accounting principles (4) Capex including SAC capitalizations

• Revenue growth of 29%

during 9m-18 Y-o-Y

• Adj. EBITDA Pre-NRA of

NOK 66.5m during 9m-18

• Continued subscriber

growth, increased ARPU and

• n-net share during Q3-18

Key highlights

4

NOKm 2015A 2016A 2017A 9m-17 9m-18 Norway 614.6 756.1 1129.3 795.7 1098.0 % growth 23% 49% 56% 38% % of total 79% 84% Sweden + Denmark 205.2 202.8 216.6 161.5 140.6 % growth (1.2%) 6.8% (3.3%) (12.9%) % of total 21% 16% Total operating revenue 819.8 959.0 1,346.0 957.2 1,238.6 % growth 17% 40% 42% 29% Operating expenses (481.6) (619.8) (964.7) (686.0) (837.4)

• /w NRA costs

(47.3) (178.9) (394.7) (270.4) (333.1) as % of sales 58.7% 64.6% 71.7% 71.7% 67.6% Other expenses (283.9) (355.5) (624.4) (437.7) (532.5) Employee costs (139.9) (159.6) (193.8) (143.0) (160.3) Total operating expenses (905.3) (1,135.0) (1,782.9) (1,266.7) (1,530.2) as % of sales 110.4% 118.4% 132.5% 132.3% 123.5% EBITDA reported (IFRS 15)1 9.1 (176.1) (436.9) (309.5) (291.6) margin (%) 1.1% n.m n.m n.m n.m Non recurring items 64.5 67.2 70.0 38.3 24.9

• Adj. EBITDA (IFRS 15)

73.6 (108.9) (366.9) (271.2) (266.6)

• Adj. EBITDA Pre-NRA (IFRS 15)

120.9 70.0 27.9

• 0.8

66.5 % margin 14.8% 7.3% 2.1% (0.1%) 5.4% Capex (625.2) (684.6) (800.3) (666.5) (490.9) as % of sales 76.3% 71.4% 59.5% 69.6% 39.6%

• Adj. OpFCF Pre-NRA

(504.2) (614.6) (772.5) (667.4) (424.4) Cash conversion (%) (416.9%) (878.0%) n.m. n.m. n.m.

• Adj. OpFCF Post-NRA

(551.5) (793.5) (1,167.2) (937.7) (757.5) Cash conversion (%) n.m. n.m. 318.1% n.m. n.m.

34

Consolidated balance sheet summary

Ice Group ASA - Balance sheet

Source: Ice Group ASA Q3 2018 report

At 30 September At 31 December NOK ('000) 2018 2017 2017 ASSETS Intangible assets 1,189,737 2,572,682 2,580,513 Tangible assets 1,495,725 1,612,477 1,515,006 Financial assets 55,280 401,933 191,596 Deferred tax-assets 528 913 327 Total non-current assets 2,741,270 4,588,005 4,287,442 Inventory 30,440 81,876 39,441 Trade receivables 96,359 93,381 83,442 Other receivables 5,461 94,982 48,953 Prepaid expenses and accrued income 92,040 119,627 217,258 Assets classified as held for sale 82,063 Cash and cash equivalents 581,897 645,951 896,486 Total current assets 806,196 1,035,818 1,367,643 TOTAL ASSETS 3,547,466 5,623,823 5,655,085 At 30 September At 31 December NOK ('000) 2018 2017 2017 EQUITY AND LIABILITIES Total equity

• 601,070

1,856,014 1,357,970 Borrowings 3,565,677 2,628,617 3,228,672 Deferred tax liabilities 7,592 339,576 346,970 Other non-current provisions 1,331 2,711 Total non-current liabilities 3,574,600 2,970,904 3,575,642 Trade payables 235,218 196,103 298,301 Other liabilities 27,833 263,868 26,317 Accrued expenses and deferred income 310,884 336,934 396,856 Total current liabilities 573,936 796,905 721,473 TOTAL EQUITY AND LIABILITIES 3,547,466 5,623,823 5,655,085

Net interest bearing debt as of Q3 2018 of NOK ~3,040m

Source: Company information, competitor websites as of 1 December 2018

35

B2C – Price plan comparison

500 MB 1 GB 2 GB 3 GB 4 GB 5 GB 6 GB 8 GB 10 GB 12 GB 15 GB 18 GB 20 GB 25 GB 30 GB 40 GB 50 GB 60 GB 16 GB

Fri data /ikke kunde

99 129 199 249 299 349 399 449 499 249 299 349 399 449 499 549 599 649 699 749 799 249 299 349 399 449 499 599 199 249 299 349 399 249 299 349 399 449 499 699 249 299 399 449 169 149 199 249 299 349 399 499 129 179 219 269 319 369 419 469 125 189 249 299 349 399 449 599 119/199 189/239 249/299 289/349 339/439 439/539 250 300 400 500 99 125 199 239 279 369 499 119 199 279 349 399 499 189 239 169 249 369 439

Source: Company information, competitor websites as of 6 January 2019