Telenor (TEL) Investor update summary

Strategy and financial targets

• Target operating cash flow breakeven by end-2013 through established strategy and operational efficiency.

• Committed to INR 155bn peak funding and targets >25% equity return on new money invested in India.

• Focus on mass-market distribution, basic-service leadership and low-cost operations.

Market position and growth

• Seeks number 2–3 positions in clusters served; subscriber and revenue market shares described as decent across all six circles, with cost per minute below incumbents.

• Six circles cover >600m people; estimated real mobile penetration was 40% at end-2012, supporting subscriber and basic-voice growth.

• Uttar Pradesh East reached breakeven three years after launch; Gujarat and Maharashtra expected to break even in early 2013, with other circles expected to follow in the coming months.

Spectrum and operating plans

• Secured 5 MHz spectrum in Uttar Pradesh East, Uttar Pradesh West, Bihar, Andhra Pradesh, Gujarat and Maharashtra.

• Planned business transfer from Uninor to a new entity, combined with spectrum, supports continued operations for 20 years.

• Position the brand on best price for local voice, grow subscribers and loyalty, improve cost efficiency and broaden distribution.