SMART: V1 who to serve for the Telenor Group ?

Distribution in market (% / #) Revenue share (%) Total value in lifetime (DKK) Churn propensity (%) Mobile data users (%) 18% / 1 mill.38%692722%58% 13% / 0,7 mill.7%227313%25% 13% / 0,7 mill.6%191312%34% 12% / 0,7 mill.8%105931%49% 17% / 1 mill.30%361139%84% 19% / 1,1 mill.11%217525%48% 2 Introducing the six consumer segments initially points to the fact that only two segments stand for two thirds of revenue in the market… SMART STEER CO. MEETING || INTRODUCING THE SEGMENTS SOURCE: MAP, Telenor Group NOTE. Distribution in market is based on 5,6 mill. people QUALITY ORIENTED 1 COMMODITY ORIENTED 2 INTEGRITY & QUALITY 3 SMART DEAL & TECHNOLOGY 4 IMAGE & QUALITY 5 COST & IMAGE 6

Recommended segment mix in Telenor portfolio will cover 90 % of the market and overlap on the most exposed segment SMART STEER CO. MEETING || STRATEGIC RESOURCES & SUM UP 3 TELENOR QUALITY ORIENTED BIBOB CBB SOURCE: Team analysis VALUE PROFILE TARGET SEGMENTS 1 PRIMARY SPIN OFF IMAGE & QUALITY 5 SMART DEAL & TECH 4 COST FOCUSED 6 NONE INTEGRITY & QUALITY 3

4 The Quality oriented segment dont mind spending a little extra SOURCE: Telenor MAP SMART STEER CO. MEETING || TELENOR; WHO TO SERVE 1 SEGMENT Family with older children 52 YEAR-OLD DEMOGRAPHICS Middle/high income 38 % of market VALUES I´m oriented towards nature and happy pay more for environmentally friendly products I place high importance on elegance and aesthetics Good customer service is significantly important LATEST PHONE 10% 54% Retail WEB 25% Mobile data 58% Voice 22 min/day SMS 7/day BEHAVIOR PSTN 68% High involvement 18% Province/city 47% 53% 18 % of the population

5 Strong match between Telenor´s profile and the Quality oriented top drivers of choice makes a solid base for attracting the segment SOURCE: Telenor MAP SMART STEER CO. MEETING || TELENOR; WHO TO SERVE SEGMENT ONE ATTRIBUTE IMPORTANCE (FITS & GAPS) TELENOR SEGMENT 1 1 SEGMENT Especially in service areas Telenor has a solid base to match the segments needs Attribute importance (relative to market) is listed clockwise – starting at 12 0clock

6 Although Telenor has a fair share of segment one, competitors profiles have even stronger fits on hygiene factors SOURCE: Telenor MAP & Data from Pricing project, 2012 NOTE: * Measured in sim share SMART STEER CO. MEETING || TELENOR; WHO TO SERVE 1 SEGMENT SEGMENT OWNERS* 8% 28% 14% 30% Quality oriented 21% TDC Telia 3 Other Telenor ATTRIBUTE SCORE (COMPARISON TO TOP THREE COMPETITORS) Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0clock According to complementary data from Pricing project Telia has build stronger NW perception. Supposable due to massive media spend and communication of 4G NW

7 The youngest segment, called Cost and image has a distinct profile in terms of price focus and online shopping behavior SOURCE: Telenor MAP SMART STEER CO. MEETING || CBB; WHO TO SERVE 6 SEGMENT Young family / single 29 YEAR-OLD DEMOGRAPHICS Low income 11 % of market LATEST PHONE 3% 23% Retail WEB 59% Mobile data 48% Voice 8 min/day SMS 7/day BEHAVIOR PSTN 36% High involvement 13% City 49% 51% 19 % of the population VALUES Social status is important to me and I like when others look up to me I'm first with the latest and I always know what is new and hip I will always go for the cheaper product cause price is most important

8 Price is the only significant telecom driver of choice; Due to strong attractive value profile and large share in customer base the segment will serve as the target segment SOURCE: Telenor MAP NOTE: * Measured in sim share SMART STEER CO. MEETING || CBB; WHO TO SERVE 6 SEGMENT SEGMENT OWNERS* Cost & image 24% 36% 28% 3% 10% Other MVNO`s Other MNO´s Telmore Onfone CBB ATTRIBUTE SCORE (COMPARISON TO STRONGEST COMPETITORS) Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0clock

9 The Image & quality segment is immensely data and handset oriented SOURCE: Telenor MAP SMART STEER CO. MEETING || CBB; WHO TO SERVE 5 SEGMENT Before / young family 30 YEAR-OLD DEMOGRAPHICS Low income 30 % of market LATEST PHONE 6% 39% Retail WEB 44% Mobile data 84% Voice 20 min/day SMS 10/day BEHAVIOR PSTN 32% High involvement 37% City 56% 44% 17 % of the population VALUES Products with technical innovations are exciting and important to me I like when others look up to me and being the centre of attention Thrills give me the feeling of living more intensely

10 Gaps on important attributes initially addressed in the rebranding of Bibob. Attributes reflects former Bibob brand strategy before March 2012 SOURCE: Telenor MAP SMART STEER CO. MEETING || BIBOB; WHO TO SERVE SEGMENT FIVE ATTRIBUTES (FITS & GAPS) BIBOB SEGMENT 5 5 SEGMENT Implemented web shop in October 2012 Introduced instalment plans in October Introduced content bundling in June Introduced CRM program in April Followed Oister on data price most of 2012 Increased data speed to 32 Mbit/s Attributes relative importance is listed clockwise – starting a 12 0clock.

11 No single competitor owns the segment in terms of segment market partly due to the extreme switch probability (~37%) SOURCE: Telenor MAP NOTE: * Measured in sim share SMART STEER CO. MEETING || BIBOB; WHO TO SERVE 5 SEGMENT SEGMENT OWNERS* 16% Image & quality 19% 14% 15% 2% 15% 17% Telia TDC Telmore 3 BiBoB Other MVNO´s Telenor Competing head to head with larger competitors in terms of market share BiBoB is challenged on NW and Trustworthiness perception ATTRIBUTES (COMPARISON TO STRONGEST COMPETITORS) Segment one attribute score on hygiene factors (share of customers). Attribute absolute importance is listed clockwise – starting at 12 0clock

IMAGE 6 QUALITY QUALITY ORIENTED With recommended segment mix the Telenor brand portfolio targets ~80 % of revenue share; Covering a broad mix of consumer values 12 SMART STEER CO. MEETING || STRATEGIC RESOURCES & SUM UP SOURCE: MAP, Telenor Group Fair Nature Purism Tranquil Prestige Vitality Classic Thrill & Entertainment Carefree Clanning Cool& Trendy Service Innovation/ Protech Personal efficiency Customized Proven Quality Smart shopping Total cost E ̶ + Security R COST FOCUSED SHARE OF REVENUE STRONGEST COMPETITORS 38 % 30 % 11 % TDC SEVERAL TELMORE