TDC : Solid EBITDA & cash flow - revenue guidance lowered

Financial

· Revenue down by 4.4% in Q3, which is an improvement on the H1 2013 development, with continued negative

effects from regulation (accounting for approx. 50% of reported revenue decline)

· Gross profit down by 3.3% in Q3 vs. -4.3% in H1 2013, positively influenced by our best mobility services

performance for a couple of years

· Opex savings of 5.8% resulted in EBITDA declining by only 1.4% in Q3;

highest EBITDA margin ever (43.3%)

· EFCF YoY growth of 14.3%

· 2013 revenue guidance revised from DKK 25.0-25.5bn to DKK 24.5-25.0bn following a lower than expected

revenue from low-margin areas (Nordic and handset sales)

· Unchanged 2013 EBITDA, capex and DPS guidance, as higher than expected opex savings compensated for

minor gross profit shortfall

Operational

· Small increases in business and residential mobile ARPUs vs. Q2 2013, positively affected by

increased roaming

· Strong intake in mobile subscribers in TDC brand, but residential mobile net adds down by 8k

due to continued drain on low ARPU subscribers and one-off migration churn following

M1/Fullrate integration

· Continued strong TV net adds in the TDC brand (+5k vs. Q2) fuelled by HomeTrio Mobil intake

· Loss of organised customers affected the YouSee brand Q3 net adds on TV (-4k) and broadband

· Best Q3 number of fault-handling hours in more than four years driven by fewer faults

· Increased recommend score (66) and customer satisfaction score (76)

         TDC A/S
         Teglholmsgade 3
         0900 Copenhagen C
         DK-Denmark
         tdc.com