Ice: the high growth Norwegian 4G challenger - Company Presentation January 2 5, 2019 - ice group
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ice: the high growth
Norwegian 4G challenger
Company Presentation
January 25, 2019Disclaimer 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.
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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
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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
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2Disclaimer 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
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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
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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
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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
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Presentation.
3ice – the high growth Norwegian 4G telecom challenger
11%
30%
Revenue mix
70%
(first 9 months of 89% Brand
2018)
Smartphone + MBB1 MBB1 MBB1
Norway Smartphone
Currently conducting a strategic
Sweden & Denmark MBB1 review for the business in Sweden
Revenue
• Pure 4G network
(first 9 months of ~NOK1.23bn Attractive assets • Attractive spectrum portfolio
2018)2
• Low cost base
7.4%
Smartphone
Revenue growth
subscriptions
(first 9 months of ~30% market share 0.9%
2018 Y-o-Y)2
development Q2-15 Q2-18
~436k subs as of Q3-18
Source: Company information, NKOM
(1) MBB = Mobile Broadband
(2) Ice Group ASA 4Our path to medium-term and long-term value creation
Our 4 medium-term and long-term targets
MT >20% ~NOK300 mid-30% ~10%
subscriber share1 ARPU1,2 EBITDA margin capex / sales
LT >25% 2.5% p.a. LT mid-40% ~10%
growth
Source: Company information
(1) Target for smartphone subscriptions in Norway
(2) Average Revenue Per User
5ice: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
61 Attractive, growing Norwegian macro and mobile market
Rich and growing economy... ..supporting mobile market growth
GDP per head at nominal value (NOK'000, 2017)1 Total mobile market value in Norway4 (NOKbn)
Real GDP growth '17-'21E (CAGR %)2 USD equivalent
507
+3.9% p.a.
19,6
16,8
370
+1.9% +1.7%
~$2.0bn ~$2.4bn
p.a. p.a.
2013 2017
EU-153
Source: NKOM, EIU, Analysys Mason
(1) 2017 average FX rate: US$/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
71 Norway characterized by high and growing ARPU and
strong mobile data upside
A high ARPU market1 Expected data growth underpins further ARPU growth
2017 mobile service ARPU (NOK/month) Avg. data consumption per user (GB/connection/month)
2017 yearly mobile service ARPU/nominal GDP per head (%) '17-'21E CAGR (%)
27.6% 26.1% 23.6% 31.9% 30.3% 38.3%
293 306
13,8
160 Implied ~3x data usage in 2021e
9.4
0.7% 0.5% 6,4
4,7 3,3
Blended Postpaid 4
Blended 2,4
3,3
EU-153 EU-153
Growing ARPUs2 - CAGR illustrates a more for more market Smartphone postpaid ARPU benchmark (NOK Q2’18)
Mobile service ARPU evolution (2013-17 CAGR)
2.5% 332
Ice Medium-term target: NOK300
1.5%
230
-2.0%
4
Blended Postpaid Blended
EU-153 Ice Blended Telenor and Telia 5
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 8
(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 2018.1 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
"The Government considers it
important to facilitate the
• Telenor fined NOK788m for abusing market power and hindering
establishment of at least three
establishment of a third player in 2010-2014 independent mobile providers in
the Norwegian mobile market, thereby
• Telenor fined by regulator for violating ban on winbacks reducing the need for special
regulation”
Source: Company information, NKOM, Regjeringen, Konkurransetilsynet
9ice: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
102 We are winning market share
Overall smartphone subscriptions market share in (%) >25%
B2C2 smartphone subscriptions market share in (%) >20% LT target
1
7.4% MT target
Smartphone subscriber base (k)
8.9%
5.1%
2.5%
B2C offering Smartphone
launched in subscribers as of
June 2015 Q3-18:
0.9%
0.0%
55 142 293 422 436
Q2-15 Q2-16 Q2-17 Q2-18
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
11
(2) B2C = Business to Consumer2 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 (%)
#3 #1 / #2 Average: 26%
7% 18%
28% 30% 27% 26%
86% 82%
70% 70% 72% 74%
• Tele2 had ~19% market share in Norway as the #3 player (without frequency portfolio) prior to the
frequency auction in December 2013
Source: Ovum
122 We put the customer first in everything we do
We surveyed customers first… …and subsequently addressed their needs
Quality & reliable
Product portfolio Touchpoints
10
5• New smartphone app for consumers
Innovation 9
Easy
8 1• Launched Data Roll-over
6 • Redesigned MyPages self-service,
7 improved and optimized customer
service operations
6 2• Launched Data Roll-over
sharing
Reputation 5
Fair & honest 7• Revision of prices and launch of new
price plans
3• Try & Buy – customer can try for
two months before deciding on
appropriate data plan
Network & IT
Control 8• Improved perceived service quality
Value 4• Improved international bilateral
roaming
Helpful 9• Optimise IT back-end systems
Expectations
Source: Company information
132 Our customer-focused strategy is working
High NPS of 111 Taking subscribers from the duopoly Lower churn than competitor
Comparison of ice’s NPS to main competitors B2C net additions 2016 and 2017 (000)3 B2C churn 2017-Q3 2018 (%)4
Average score difference 2017-Q3 20182 Gross add market share (%)
20
36% 31% 33%
17 32%
+292
25%
-169
-215
5
vs. vs.
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
14
(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 MBB2 Our smartphone ARPU is growing steadily
Development in blended smartphone ARPU (NOK)1
236 232 234
230
227 224 228
• Our Monthly Recurring Fee (MRF) has
increased by 20% since Q1-17
89 78 77 80 (~13% annualized growth rate)
108 79
96
• Increased smartphone subscriber base
by 62% in the same period
150 153 154
143 145
128 131
• Other (variable component) affected
by extraordinary events in the market
(roam-like-at-home, 5-digit numbers,
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 reduced interconnection fees, etc.)
Other Monthly Recurring Fee (MRF)
Source: Company information, Telia annual report, ice tracker/Norstat panel data
(1) Blended = B2C and B2B
15Ice: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
163 We see a significant opportunity in the high usage segments and
we now have the tools to address this segment
Smartphone market breakdown and market share by segment1 Tools to address high usage segment
Ice market share by subscribers (%) Smartphone market breakdown (%)
1• Competitive products and
7.4% Overall market share price plans
100% 100%
2• Expand device financing
B2B2, High usage B2C (postpaid) 62%
3.1%
and prepaid 73% 3• Presence in retail chains
4• Strong customer care
14.5% Low usage B2C (postpaid) 38%
27% 5• Growing brand awareness
By subscribers By revenue
6• B2B specific solutions
B2B, High usage B2C (postpaid) and prepaid Low usage B2C (postpaid)
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 17
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 Business3 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) New sales mix (B2C)1
19% 20% 23% 22%
17%
67%
35% 33%
43%
12%
15%
12% 12%
8%
61%
12% 14% 13%
16% 44% 45%
38%
33% 34%
21% 18% 20%
14%
Jun-16 Jun-17 Jun-18 Sep-18 Q3-18
500 MB 1 GB 2 GB 3 GB 4 GB and higher
Source: Company information
1) Excluding “Bli Kjent” which represented ~34% of B2C new sales in Q3-18
183 Strong visibility on ~80% of our medium-term ARPU
uplift to NOK300
Smartphone ARPU bridge (NOK)
Accomplished if recent trading continues Additional growth
300
16
7
40
217 20
• Increased share
Existing customers 9% of portfolio is of higher usage
trade up to higher B2B with ARPU of B2C and B2B
price plans NOK358 • Market growth
Current new sales
mix implies an uplift (~NOK2 per
in B2C segment quarter)
B2C ARPU New sales (B2C) Existing customer Constant B2B Required uplift Target ARPU
upgrades (B2C) share and ARPU
Source: Company information
Note: Analysis based on Q2-18 figures
19Ice: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
204 We are younger and enjoy structural cost advantages
• Less complexity, opex and capex
Mobile
operations 2015 1990s 1990s • Agile, fast, smart
launched • New core cloud
• Fewer BTS due to use of low frequencies
BTS2 ~4k1 ~8k ~5k
• ~ NOK100-400m lower opex p.a.
• One technology reducing complexity
Technology 4G 2G / 3G / 4G 2G / 3G / 4G
• 4G most throughput / cost
• More efficient marketing
Brands 1 3 4
• Lower cost
FTEs3 ~200-2501 ~3,500 ~1,250 • ~ NOK1bn lower opex p.a. than #2 player
Source: Companies' Q2-18 annual reports
(1) At full scale in medium-term (after network roll-out) 21
(2) Base Transceiver Stations
(3) Full Time Employees4 Our nationwide scalable network roll-out is expected to drive
our margins up
We plan to cover 95% of population…1,2 …and to capture +90% of data traffic Key customer and margin benefits
Operational sites (all bands, Norway) On-net share of data traffic (%)
% Smartphone population coverage (Norway)
1- Save on NRA costs
3,800 – 4,000 +90%
2- Increased independence and
64%
59% commercial flexibility
1 831
3- Enhanced customer experience
1 205
24%
726
551
24% 50% 63% 83% 95% 4- Already contracted 5G ready
0%
equipment
Q3-15 Q3-16 Q3-17 Q3-18 2020 Q3-16 Q3-17 Q3-18 Oct-18 Target
target medium-
term
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 224 Our spectrum is cost efficient and we have spare capacity
Attractive spectrum portfolio… … with substantial spare capacity
Frequency MHz/Subs (k)1
Amount Duration • Both coverage and capacity
band (MHz)
frequencies Share of sub 1GHz smartphone frequencies (%)
450 2x5 2019
• Technology neutral frequencies 0,18
800 2x10 2033 which can be used for 5G
900 2x5 2033 0,08 0,08
• Upcoming auctions for
1,800 2x20 2033 700MHz, 2.1GHz and higher 0.01-0.02
frequencies. Proposed caps on
2,100 2x5 2032 Telenor and Telia: max. 1/3 of European telcos2
700MHz and no 2.1GHz
Total 90
23% 38% 38% n.a.
Low frequency spectrum underpins cost and capex advantages
# of BTS required to cover the same area as one 700MHz BTS3
14
• ice with initial focus on 800MHz in its network roll-out
8
• Low frequencies enable a «build as you grow» strategy
as fewer sites are needed to add coverage
1
2 • Continuously evaluating to add capacity or base station
if traffic is yielding strong ROCE in a specific area
700 MHz 1,000 MHz 2,000 MHz 2,600 MHz
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,
23
Vodafone (Spain), Orange (Spain)
(3) BTS = Base Transceiver Station4 Significant operating leverage from new cost structure and scale
Illustrative cost base split
% of sales
130
NRA3 Reduced NRA
costs
Roaming3 54
Mid 30s%
Commissions EBITDA margin
Customer operations
Other2 35
Network / IT
Increased network
costs
Marketing 41 Economies
of scale
Employees
1H-18 Pro forma (1H-18)1 Medium-term
Variable costs Semi-fixed costs Fixed costs
Source: Company information
Notes:
1
2
Assuming 2,000 additional sites and NOK 95k in opex per site added to Network / IT opex. NRA assumed at 6% of sales
Includes CPE, Consultants, Sweden and Denmark and other
24
3 NRA = national roaming agreement, i.e. use of Telia’s network in Norway. Roaming is customers’ usage of services abroadIce: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
255 Mid-30s and Mid-40s EBITDA margin targets
(medium and long-term) Long-term
mid-40s%
Medium-term
+17% mid-30s%
+3%
(3)%
Pre-NRA EBITDA is
already at breakeven
c.(29)% c.+32pp c.(6)pp c.+20pp
1
Adj. EBITDA margin NRA Medium/long-term NRA SAC normalized Scale benefits, ARPU uplift Adj. EBITDA
1H-18 1H-18 assumption (>30% currently) and gross profit from net margin target
adds
Source: Company information
(1) Subscriber Acquisition Cost
265 Our mid-30s% medium-term EBITDA margin target
leaves upside vs. peers
Significant headroom to achieve higher adj. EBITDA margins1
Norway 3 operator markets
% EBITDA Margin, 9m-18 % EBITDA Margin, 9m-18
Avg. 40%
47% Avg. 39%
43%
38%
34% 34%
2 2
Norway #3 player in 3 operator markets
Source: Companies' Q3-18 reports
(1) Considering total figures on a country level (i.e. including fixed line, broadband and TV when applicable) 27
(2) H1-18 figures for Salt and WindTre5 Normalized capex/sales after 2020 expected to support free
cash flow generation
Spectrum portfolio and brand new network
Our capex target is in line with capex of peers
enabling low capex
Capex as % of revenue
8% Before the FTTH
• Brand new network roll-out with 5G- (FY2016 +
FY2017) 19%
investment in 2016
ready base stations
11%
• Pure 4G-only network with less (FY2017)
complexity and costs (vs 2G and
3G) Norway 11% Legacy 2G and 3G
(FY2017)
• Spectrum portfolio with low and high
7%
frequencies and substantial spare Denmark
(FY2017)
capacity
7%
Sweden
• Capex advantages from building (FY2015)
with low rather than high
frequencies Sweden 5%
(FY2017)
Capex / sales target of ~10%
Source: Company information, peer companies’ annual reports
28Our path to medium-term and long-term value creation
Our 4 medium-term and long-term targets
MT >20% ~NOK300 mid-30% ~10%
subscriber share1 ARPU1,2 EBITDA margin capex / sales
LT >25% 2.5% p.a. LT mid-40% ~10%
growth
Source: Company information
(1) Target for smartphone subscriptions in Norway
(2) Average Revenue Per User 29ice: the high growth Norwegian 4G challenger
1 Highly attractive and growing Norwegian market of ~NOK20bn
2 Strong growth track record
3 Multiple levers going forward to grow our ARPU
4 Low cost operator with structural advantages
5 Identified path to value creation and positive FCF generation
Source: NKOM
30Appendix
We have simplified our corporate structure
ice group’s current legal structure Previous legal structure
Free float and other
investors
AI Media Holdings (NMT) LLC Free float and other investors
64% 36%
ice group AS (OTC listed) Others
58% direct ownership ~3%
63% total ownership
ice group ASA
99.8% AINMT Holdings AB
AINMT Holdings AB Holding
companies ice group Scandinavia ice group International 30%
Nextel
100% Holdings AS Holdings BV Holdings
ice group Scandinavia Holdings AS1
Streamlined corporate structure
100%
ice Norway • Sale of ownership stake in Nextel Holdings2: US$70-75m (NOK573-614m3) sale of ice group's
30% ownership stake to Access Industries completed on 26 September 2018
- NOK500m of equity injected into ice group Scandinavia Holdings AS by AINMT Holdings AB
• De-merger from ice group of ice group's non-Scandinavian assets aimed at focusing ice group
100% Operating on the Nordics only
ice Sweden Companies
• Improved corporate structure: N:OTC listed ice group owns 100% of Scandinavian companies
- All shareholders of AINMT Holdings AB have or will swap their shares into shares in ice
group. When the de-merger was completed, all shareholders in ice group received one share
in the de-merged entity for every share held in ice group4
100%
ice Denmark - The Company plans to establish a new share option program5
Source: Company information
(1) Legal names of the entities are: Ice Communication and Ice Norge (Norway); Netett Sverige (Sweden); and Ice Danmark (Denmark)
(2) Nextel Holdings S.à.r.l.
(3) FX US$/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
32
(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 futureSummary of key financials
Key P&L and cash flow items3 Key highlights
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%
• Revenue growth of 29%
Operating expenses (481.6) (619.8) (964.7) (686.0) (837.4)
o/w NRA costs (47.3) (178.9) (394.7) (270.4) (333.1)
during 9m-18 Y-o-Y
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)
• Adj. EBITDA Pre-NRA of
Total operating expenses (905.3) (1,135.0) (1,782.9) (1,266.7) (1,530.2) NOK 66.5m during 9m-18
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 • Continued subscriber
Non recurring items 64.5 67.2 70.0 38.3 24.9
growth, increased ARPU and
Adj. EBITDA (IFRS 15) 73.6 (108.9) (366.9) (271.2) (266.6) on-net share during Q3-18
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 4 (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.
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)
33
(3) Group financials refer to ice group Scandinavia Holdings AS. Restated according to IFRS 15 and changes in accounting principles
(4) Capex including SAC capitalizationsConsolidated balance sheet summary
Ice Group ASA - Balance sheet
At 30 September At 31 December At 30 September At 31 December
NOK ('000) 2018 2017 2017 NOK ('000) 2018 2017 2017
ASSETS EQUITY AND LIABILITIES
Intangible assets 1,189,737 2,572,682 2,580,513 Total equity -601,070 1,856,014 1,357,970
Tangible assets 1,495,725 1,612,477 1,515,006 Borrowings 3,565,677 2,628,617 3,228,672
Financial assets 55,280 401,933 191,596 Deferred tax liabilities 7,592 339,576 346,970
Deferred tax-assets 528 913 327 Other non-current provisions 1,331 2,711 0
Total non-current assets 2,741,270 4,588,005 4,287,442 Total non-current liabilities 3,574,600 2,970,904 3,575,642
Inventory 30,440 81,876 39,441 Trade payables 235,218 196,103 298,301
Trade receivables 96,359 93,381 83,442 Other liabilities 27,833 263,868 26,317
Other receivables 5,461 94,982 48,953 Accrued expenses and deferred income 310,884 336,934 396,856
Prepaid expenses and accrued Total current liabilities 573,936 796,905 721,473
92,040 119,627 217,258
income
TOTAL EQUITY AND LIABILITIES 3,547,466 5,623,823 5,655,085
Assets classified as held for sale 0 0 82,063
Cash and cash equivalents 581,897 645,951 896,486
Total current assets 806,196 1,035,818 1,367,643
Net interest bearing debt as of Q3 2018 of NOK ~3,040m
TOTAL ASSETS 3,547,466 5,623,823 5,655,085
Source: Ice Group ASA Q3 2018 report
34B2C – Price plan comparison
500 Fri
1 GB 2 GB 3 GB 4 GB 5 GB 6 GB 8 GB 10 GB 12 GB 15 GB 16 GB 18 GB 20 GB 25 GB 30 GB 40 GB 50 GB 60 GB data
MB
99 129 199 249 299 349 399 449 499
249 299 349 399 449 499 549 599 649 699 749 799
Yng
249 299 349 399 449 499 599
u/ 18
199 249 299 349 399
249 299 349 399 449 499 699
u/ 29
249 299 399 449
u/ 16
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
/ikke kunde
250 300 400 500
99 125 199 239 279 369 499
119 199 279 349 399 499
189 239
169Source: Company information, competitor websites as of 1 December 2018
249 369 439
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