TDC : TDC expands business potential

    with H1; the improvement was caused by broadband as well as price increases in landline voice and

    paper communication fees

·   Gross profit decline of 4.3% in Q3; YTD decline of 3.7%

·   Q3 EBITDA down by 3.1% as the gross profit decline was offset by a 6.1% opex saving; organic

     EBITDA down by 1.4%

·   Strong equity free cash flow growth of 9.5% in Q3, driven by expected timing effects from NWC

    and a positive one-off from a tax case concerning previous years; EFCF up by 11.9% YTD

·   Acquisition of Norwegian cable TV company Get completed as at 20 October 2014; purchase price

    of ~DKK 12.5bn; Get will be included in TDC’s figures from Q4 2014

·   Strategic partnership with Trefor, a large Danish utility company, on access to the fibre network and

     managed service on operations

    less than in 2013 (2013: -3.5%), EBITDA > DKK 9.7bn, capex of ~DKK 3.8bn and DPS of

    DKK 2.50

Operational

    ARPU stable YoY

·   Positive TV net adds in TDC brand/Fullrate (7k) offset by leakage from both individual and

    organised subscribers in YouSee (-8k)

·   Residential landline ARPU up by 6% vs. Q2 following price increases in the TDC brand as of July 1;

    net loss of landline customers level with the previous 3 quarters

·   Promising TDC Sweden pipeline and order book development, while TDC Norway (excl. Get)

    continued to face challenging market conditions and organic YoY EBITDA declines

     (-13m in Q3 YoY)

·   Mobile network roll-out finalised in Zealand and continued in the most populated part of Jutland; an

    international survey confirmed Denmark’s highest download speeds on TDC’s 4G mobile network

·   YoY reductions in FTE + temps across TDC Group (excl. Channels) of 4.6% more than outweighed

     by additional call centre staff (13.6%) to mitigate high call volumes