Telenor (TEL) CMD 2025 summary

Strategic direction and business transformation

• Focus on customer excellence, services-led and technology-driven growth, and leveraging world-class networks in the Nordics, with a shift to a fully cloud-based, AI-driven technology stack to drive operational efficiency and reduce capital intensity.

• Streamlined business areas: Nordics, Asia, Infrastructure, and Amp, each with tailored strategies for growth, efficiency, and portfolio optimization, with the Nordics as the core growth and cash flow engine.

• Ongoing simplification and divestment of non-core assets, with a focus on becoming a more Nordic-centric group and active portfolio management in Asia to reduce risk and unlock value.

• Sustainability, resilience, and security are core, with new midterm targets for climate, social responsibility, and governance, including 69% GHG emissions reduction by 2030 and net zero by 2045.

• Transformation programs combine local autonomy with centralized Nordic collaboration, driving cost reductions, margin expansion, and operational excellence.

Financial guidance and capital allocation

• Ambition to grow dividends per share annually, covered by free cash flow before M&A, and maintain leverage within the 1.8x–2.3x target range.

• Nordics expected to deliver more than NOK 15 billion in free cash flow by 2030, tripling 2022 levels, with CapEx intensity tapering from 19% in 2022 to 11-12% by 2030.

• Group free cash flow (excluding associates) targeted at NOK 12-13 billion for 2028 and NOK 14-15 billion by 2030, with a mid- to high single-digit CAGR from 2025.

• ROCE/ROCI projected to exceed 11% by 2028 and 12% by 2030, with a strong focus on value creation and prudent capital allocation.

• CapEx to focus on 5G Standalone, IT transformation, and resilience, with reduced investments in 5G RAN and fiber in Norway due to market maturity.

Operational and technological initiatives

• Accelerating cloud migration and AI-powered automation, targeting over 80% cloud-native IT systems in Nordics and Asia by 2028, with significant opex and capex reductions.

• AI-driven automation in networks and customer interactions to deliver efficiency, faster fault resolution, and personalized services.

• Centralized procurement and strategic partnerships, such as with Vodafone, to drive savings, innovation, and support sustainability goals.

• Workforce reductions averaging 4% annually in the Nordics, with OpEx growth targeted at 0% to -2% per year through 2028.

• Local transformation programs, such as Denmark’s digital overhaul and Finland’s fiber upgrade, serve as templates for scaling successful initiatives across markets.