ConversationUnknown Executive Good morning, everyone. I'm Frank Maaø, Head of Investor Relations, and welcome to Telenor's Capital Markets Day. Today, you'll hear from a strong lineup of executives and topic matter experts as we outline our strategy and ambitions for the years ahead. And after lunch, our physical audience here at Fornebu may join our breakout sessions for deeper dives with managers and specialists. And online participants will have access to session videos later today. Now there will be 2 ...

Group 1 - The Chinese government urges the European Union to provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises, emphasizing that these companies have contributed positively to local economies and employment in Europe [2] - The Chinese government criticizes the removal of Chinese telecom equipment by certain countries as a violation of market principles and fair competition rules, stating that such actions hinder technological progress and economic development [2] - The Chinese government advocates for inclusive economic globalization and opposes unilateralism and protectionism, particularly in the context of potential high tariffs on Chinese imports by Mexico, which have been postponed due to rising opposition [3] Group 2 - The Chinese government highlights the importance of mutual benefit in China-Mexico economic cooperation, especially in light of rising tariffs imposed by other countries, and calls for enhanced communication to maintain free trade and multilateralism [3]

Group 1 - The Chinese Foreign Ministry urges the EU to provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises, emphasizing the importance of avoiding damage to investment confidence in Europe [2][3] - The Ministry highlights that Chinese companies have been operating in Europe in compliance with laws and regulations, contributing positively to local economic development and employment [2] - The Ministry criticizes the removal of Chinese telecom equipment by certain countries as a violation of market principles and fair competition rules, leading to significant economic losses and hindering technological progress [2] Group 2 - The Mexican government's plan to impose high tariffs on Chinese imports has been postponed due to rising opposition from the private sector and even members of the ruling party [4] - The Chinese Foreign Ministry advocates for inclusive economic globalization and opposes unilateralism and protectionism, emphasizing the need for China and Mexico to strengthen communication and cooperation in the current context of rising tariffs [4] - The Ministry reiterates the importance of mutual benefit in China-Mexico economic cooperation and the need to jointly promote free trade and multilateralism to support global economic recovery [4]

Core Insights - Telenor anticipates organic core earnings growth in the Nordic region at a low-to-mid single-digit percentage annually until 2030 [1] Company Summary - Telenor is a telecom operator based in Norway [1] - The company is focusing on its performance in the Nordic region [1]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expense (OPEX) improvements, despite a year-on-year decline in software revenues by 1.1% [5][22] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in fixed subscription revenue [22][25] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [25][30] Business Line Data and Key Metrics Changes - Mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [5][18] - Fixed business reported negative net adds of 7,000, attributed to slower inflow and higher churn, which is expected to be a one-time impact [13][14] - Mobile ARPU increased, benefiting from price increases and improved inflow values, while fixed ARPU declined due to promotional pressures and accounting impacts from new mobile portfolio [19][22] Market Data and Key Metrics Changes - Competitive intensity remains high but unchanged, with the company continuing its strategy across main brands, flanker brands, and B2B [7][36] - The company launched a new budget mobile brand, CH Mobile, to capture the lower end of the market, responding to increased competition in that segment [11][12][58] Company Strategy and Development Direction - The company is executing a fast follower strategy, particularly in response to Black Friday activities, and has launched several new services to open growth avenues [6][11] - Focus on improving operational efficiencies and cost management, with expectations of further OPEX and CAPEX efficiencies in the future [7][36] - The company aims to stabilize its fixed business by 2026, despite current delays in stabilization [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the fixed consumer business, driven by softer inflow and higher churn levels [15][36] - The company reaffirmed its 2025 financial guidance, including a 2.7% growth in dividends per share (DPS) [6][36] - Management is optimistic about increasing free cash flows and attractive shareholder returns in the midterm [7][36] Other Important Information - The company confirmed the termination of its Class A ADS program, with a significant percentage of shares already converted [34][35] - The company is committed to gradually repaying its debt, with plans to repay CHF 180 million in Q4 [33][34] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B adopting 5G services, with no major inflow of new demands yet [41] - No imminent need to react to EU discussions on vendor replacements in Switzerland [41][42] Question: Black Friday sales and fixed ARPU weakness - Management observed early promotions from competitors but noted no significant changes in aggression compared to previous years [46] - Fixed ARPU pressures are expected to stabilize with ongoing actions to improve inflow and reduce churn [48] Question: Brand strategy and fiber rollout focus - The new CH Mobile brand aims to fill gaps in the budget segment, responding to competitor activity [58] - Management plans to enhance marketing efforts in fiber rollout areas to capture more customers [60] Question: Expectations for CH Mobile and cost savings - No specific market share targets for CH Mobile, but the goal is to participate in the growing budget segment [76] - Cost savings expected from AI implementation, organizational efficiencies, and effective marketing spending [77]

Core Insights - China Ping An Asset Management has increased its stake in China Telecom's H-shares to 6.11% [1] Group 1 - The increase in stake indicates a growing confidence in China Telecom's performance and potential [1]

Core Viewpoint - China Mobile has officially launched a significant upgrade to its Beidou messaging service, enhancing its capabilities to include multimedia messaging features such as images and voice, marking a new phase in Beidou communication with improved text transmission capacity [1] Group 1 - The upgrade adds multimedia messaging capabilities to the existing text messaging service [1] - The text transmission capacity has been upgraded to allow for 40 Chinese characters in the upward direction and 10 Chinese characters in the downward direction [1] - This development signifies a transition for Beidou communication into a phase where it can support visual and auditory messaging [1]

Core Points - The article highlights the tension between anti-fraud measures and individual privacy rights, illustrated by two recent incidents involving a lawyer and a doctor facing excessive scrutiny from banks and telecom operators [1][11][20] Group 1: Banking Sector - A lawyer faced questioning about the purpose of withdrawing 40,000 yuan, despite regulations stating that only withdrawals over 50,000 yuan require reporting [1][3] - The bank staff escalated the inquiry by checking the lawyer's transaction history, which raised concerns about privacy and the appropriateness of such actions [5][9] - The lawyer ultimately decided to abandon the withdrawal due to the invasive nature of the questioning, reflecting a growing frustration with banking practices in the context of anti-fraud measures [9][11] Group 2: Telecom Sector - A doctor experienced her husband's phone being deactivated due to suspected fraud, leading to a lengthy and unresolved appeal process that severely impacted their daily lives [12][16] - The couple's situation was exacerbated when the doctor attempted to assist her husband, resulting in her own phone being deactivated as well [16][18] - After media attention, the telecom operator provided a resolution, highlighting the challenges faced by users in navigating the system [18][20] Group 3: Regulatory Environment - The article discusses the need for a balance between effective anti-fraud measures and the protection of individual rights, as recent incidents indicate a trend of excessive scrutiny [20][23] - Experts emphasize that anti-fraud efforts should not infringe on personal privacy and that regulations should be refined to avoid unnecessary burdens on ordinary citizens [23][27] - A recent regulatory change removed the requirement for banks to inquire about the source of funds for cash transactions below 50,000 yuan, indicating a shift towards more user-friendly practices [27]

Core Insights - The "2025 Data Element Empowering New Industrialization" competition concluded in Wuzhen, Zhejiang, focusing on the theme "Data-Driven Innovation, Intelligent Manufacturing Leading the Future" [1] - A total of 86 top teams reached the finals, emphasizing the deep application of data elements in industrial sectors [1] - The competition aimed to guide collaboration between industry and academia to tackle common challenges in new industrialization and promote intelligent upgrades in industries [1] Group 1: Competition Highlights - Zhejiang Unicom participated actively, with 8 projects winning awards across three tracks: industrial intelligence, industrial data circulation and utilization, and high-quality industrial data set construction and application [1] - The awarded projects showcased diverse practices of data elements in industrial scenarios, reflecting Zhejiang's varied explorations and achievements in promoting digital transformation in manufacturing [1] - Several winning projects were developed in collaboration with key industrial enterprises in the province [1] Group 2: Future Directions - Zhejiang Unicom plans to further promote the integration of new technologies such as 5G-A and industrial internet with data elements [1] - The company aims to replicate and promote solutions across multiple industries and scenarios, enhancing data circulation infrastructure and regulatory frameworks in collaboration with industry partners [1] - This initiative is expected to assist in advancing new industrialization to a higher level [1]

Core Viewpoint - First Pacific Company Limited (00142) announced that its main operating associate PLDT Inc. (PLDT) achieved customer contract revenue of 163.283 billion pesos for the nine months ending September 30, 2025, representing a year-on-year growth of 1.5% [1] - PLDT's net income attributable to equity holders was 25.071 billion pesos, a decline of 10.7% year-on-year [1] - Basic earnings per share were reported at 115.83 pesos [1] Summary by Category Financial Performance - PLDT's customer contract revenue reached 163.283 billion pesos, showing a 1.5% increase compared to the previous year [1] - The net income attributable to equity holders decreased to 25.071 billion pesos, reflecting a 10.7% decline year-on-year [1] - Basic earnings per share stood at 115.83 pesos [1]