Investor presentationDecember 2003

The Short StoryDecember 2003

3

Transaction highlights

Price per share: NOK 25 - 40

Market Cap before issue: 500m – 800m

New Shares Issued: 4,5m – 5,5mIncluding greenshoe (500’ shares)

Gross offering proceeds: 112 - 220 mNOK

Secondary Sale of shares 749’ – 1.150’

Current no. of shares outstanding: 20m

Subscription: 25/11 – 8/12 at 17.00

Allocation: 9/12

First day of trading: 19/12

Transaction details Use of Proceeds

Further broadband access growth

Assuming vertical integration with careful additional investments in new LEOs (horizontal expansion/co-location of equipment), NextGenTel intends to continue investing in new customers by adding necessary new equipment, in order to reach its customer targets.

Investments in IP Telephony

NextGenTel plans to launch IP-telephony in 2004

Other investments and general corporate purposes

Other investments may include new products and services, new sites at co-located LEOs and investments to expand NextGenTel’s content platform.   

Strengthening of balance sheet

NextGenTel intends to reduce interest-bearing elements of short term debt  

4

Broadband – one of the fastest growing telecom segments in the world …

NextGenTel is perfectly poised to benefit from this huge growth opportunity:

Copper is gold … Platform for existing and future broadband access solutions

No digging ..

Norway has a strong and effectively regulated LLUB regime

DSL is set to win the broadband race in Europe xDSL grows much faster than all other broadband technologies

as it is the most cost effective way to offer broadband to the mass market

Fast growing mass market

Recurring revenues with strong path to profit based on access alone. Strong future additional revenue possibilities related to additional products/services with marginal costs:

Telephony (based on IP)

Video on demand (already offered)

Web TV, etc. (already available)

Reduced marginal investments required as technology improves and costs drop

Complete network built with more than 58,000 customers at present..

Sustainable #2 position in the Norwegian broadband market

This position is important to sustain growth and maximum profitability

A strong player in both the residential and the corporate market

Strong acquisition candidate

The NextGenTel evolution has lots of similarities to that of NetCom

Challenge is to secure a growth from 60,000 – 200,000 subscriber lines over the next four – five years !

5

xDSL - the most cost effective way to offer broadband to the mass market

The most cost effective way to offer broadband to the mass market is to base the solution on existing infrastructure:

The future is Copper-based xDSL today provides for solutions based on ADSL and SHDSL

VDSL (Ethernet over Copper – LRE) will be next wave for short haul applications (< 1.5 km – 10 Mb/s)

Copper has the widest coverage in Europe

Marginal investments expected to continue

dropping

In combination with existing copper

infrastructure and existing telephony services,

NextGenTel is building / offering

its broadband solution to both the

residential and corporate market:

DSL-based

Extensive use of partners

3rd party financing (leasing)

IP all the way home:

Router based

1

120

50

30

30

60

10%

Last mile economics - broadly comparable USD per subscriber per month - last-mile upgrade and CPE capex

Fiber/LAN

Cableupgrade

ADSL

Satellite

LMDS

Capacity utilization

100%

7

12

15

90

15

• 48 port switch and fiber link• Internal wiring of MDU• Ethernet CPE card and cable

• Additional plant and electronics• Max 2000 subs per node• CPE & install

• Local office line testing/install• 576 port DSLAM equipment• CPE & install

• Transponder, no caching• Max 15,000 subs/transponder• CPE & install, PSTN modem

• Base station and installation• Max 1,000 subs per base• CPE and install

Investments included

Source: McKinsey & Company 2000

6

An IP-based Next Generation Telecommunications Network

NextGenTel has aimed at building a Next Generation Telecommunications network:

IP-based

“Plug&Play” access technologies

Fewer components

Strong back-bone / Fibre-based (rented)

Less hierarchical network

2001 2002 2003 2004

10

20

30

40

50

60

70

80

90

100%

2000

Fiber

Colocation

LE equipment

CPE equipment

110

120

2001 2002 2003 2004

10

20

30

40

50

60

70

80

90

100%

10

20

30

40

50

60

70

80

90

100%

2000

Fiber

Colocation

LE equipment

CPE equipment

Fiber

Colocation

LE equipment

CPE equipment

110

120

110

120

Experienced development in costs/investments (not precise)

Backbone

Transmission

Metro rings

Dark FiberWavelengths

SDH/ PDH

Cisco 7200DPTGigaEthernet

Cisco GSRDPT

CustomerPremises

Equipment(CPE)

CiscoNetopia

SHDSL

ADSL

VDSLAccess

??

Backbone

Transmission

Metro rings

Dark FiberWavelengths

SDH/ PDH

Cisco 7200DPTGigaEthernet

Cisco GSRDPT

CustomerPremises

Equipment(CPE)

CiscoNetopia

SHDSL

ADSL

VDSLAccess

??

7

xDSL: Set to win the broadband race.......

The broadband market is expected to grow strongly during the next 3 - 4 years

Early movers: 2000 – 2002

Mass market adoption: 2003 Norway is among the fastest growing xDSL nations

in Europe (Forrester: 45% penetration in 2008

DSL dominates in Norway, the Nordic Countries and in Europe:

Strong expected future growth:

ADSL penetration Telia, TDC and Telenor

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

Sh

are

of

hou

seh

old

s

Telia (ADSL/ LAN) TDC Telenor

Source: Norsk Telecom & various others

Broadband Access by Technology

0

50 000

100 000

150 000

200 000

250 000

300 000

Jan 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03

Fixed access Internet by cable xDSL

Source: Post og Teletilsynet (Norway)

Growth in total number of broadband households Europe 2002-2003

0 % 20 % 40 % 60 % 80 % 100 % 120 %

AustriaDenmarkBelgium

GermanyPortugalFinlandSweden

SwitzerlandNetherlands

NorwaySpainI taly

UKLuxembourg

France

Source: Forrester

Europe residential broadband

0

10

20

30

40

50

60

02 03 04 05 06 07 08Source: ForresterResearch, June 2003: Europe's Broadband Shifts to profit

Mil

lion

su

bs

cri

be

rs

OtherCableADSL

8

High potential – more than 1 mill. broadband lines in 2008 ?

High potential for DSL:

~ 650,000 – 900,000 subscriber lines in 2008.

Telenor estimates to have 500’ - ‘ 600’ xDSL subscribers within 2008.

Given sustained market share of ~22-25%, this implies 145’-180’ subscriber lines for NextGenTel in 2007 - 2008.

Further upside in future broadening of offerings (VDSL, VoD, Telephony, etc.).

ADSL > ISDN; ADSL follows similar growth as that experienced for ISDN and could have a much bigger potential

Main drivers:

Faster Access

Fixed price

Free usage

Entertainment Serv.

Online gaming

Source: Norsk Telecom

Norway residential broadband

0

100

200

300

400

500

600

700

800

900

1000

02 03e 04e 05e 06e 07e 08eSource: Forrester

Mill

ion

su

bsc

rib

ers

ISDN and ADSL customer uptake

-

100

200

300

400

500

600

700

800

900

1995 1996 1997 1998 1999 2000 2001 2002

Cu

sto

mers

(1

00

0)

ISDN subscriptions

ADSL subscriptions

ISDN year

ADSL year 2000 2001 2002 2003E

Source: Ovum

Corporate vs. Residential DSL forecasts

0100000200000300000400000500000600000700000800000900000

2002

2003

2004

2005

2006

2007

2008

No

. o

f li

nes

0 %

5 %

10 %

15 %

20 %

Residential lines

Corporate lines

Split

9

Business model ensuring profitability on access alone ….

A holistic approach to the exciting broadband market: Access

ISP

Services:

VPN, etc.

Contents (facilitator):

V-o-D, etc.

Future offerings:

Telephony, etc.

Always On – Fixed Price – Faster ! Best price/performance …

Free usage …

Speed …

Router (incl. features & functionality)

Competitive offerings to: Residential market

Corporate market

Low cost volume marketing & sales channels (Web and Call Centre)

The broadband experience …

10

NextGenTel’s product leadership

Best price/performance:

Pure IP based solution

Powerful router solution

Free use (no download limitations)

Higher bandwidth (704 850 kb/s / 3 x up-stream compared to competition)

V-o-D / live web TV streaming

The focus on both residential and corporate users gives;

Market availability

Volume (scaleability) / Logistics (LE home offices)

Holistic service development for the networking community

Shorter path to profitability (aggressive cost base)

11

Selected milestones & achievements

Raised approx mNOK 320 in equity Extreme focus on execution (processes & measurements)

Selected milestones:

Cisco strategic partner fall 00 (equipment financing)

10.000 lines in operation Jan 02

IBM strategic partner spring 02 (Services, equipment financing)

20.000 lines in operation June 02

EBITDA positive in Q3 – 2002 (monthly)

~35.000 lines in operation December 02

~ 44.000 lines in operation March 03

~ 58,000 lines in operation October 03

Major corporate home PC agreements Strong improvement in earnings through 2003 and in estimated

future earnings

Proven business model, recurring revenue, limited downward risk

Total Operating quarterly revenues 2001- Q3 2003

-

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

70 000 000

80 000 000

90 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

Total quarterly EBITDA 2001- Q3 2003Prognosis from Q3-2002

(35 000 000)

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

5 000 000

10 000 000

15 000 000

20 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

Total quarterly EBIT 2001- Q3 2003

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q 3-03

Total Gross Margin 2001- Q3 2003

(5 000 000)

-

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

30 000 000

35 000 000

40 000 000

45 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03NextGenTel subscriber lines

0

10 000

20 000

30 000

40 000

50 000

60 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002 2003e

NextGenTel

Total quarterly EBIT 2001- Q3 2003

(35 000 000)

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

Total Operating quarterly revenues 2001- Q3 2003

-

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

70 000 000

80 000 000

90 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

Total quarterly EBITDA 2001- Q3 2003Prognosis from Q3-2002

(35 000 000)

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

5 000 000

10 000 000

15 000 000

20 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

Total quarterly EBIT 2001- Q3 2003

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q 3-03

Total Gross Margin 2001- Q3 2003

(5 000 000)

-

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

30 000 000

35 000 000

40 000 000

45 000 000

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03NextGenTel subscriber lines

0

10 000

20 000

30 000

40 000

50 000

60 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002 2003e

NextGenTel

Total quarterly EBIT 2001- Q3 2003

(35 000 000)

(30 000 000)

(25 000 000)

(20 000 000)

(15 000 000)

(10 000 000)

(5 000 000)

-

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03

12

NextGenTel is the major challenger to Telenor …

Sustained installation pace of approx. 4,000 gross lines per month

~160 LEOs / COs in operation / Approx. 850,000 subscriber lines reached

In addition, 350,000 – 500,000 lines reached via Telenor Wholesale agreement

> 25 % market share (compared to Telenor – increased in Q3-2003 to 26.8 %)

139 employees (f.t.eq.)

Offices in Bergen, Oslo, Trondheim, Kristiansand and Stavanger.

~ 11 % SME customers (lines)

~ 89 % Residential customers (lines)

~ 30 % of revenue generated by SMEs

Facts Market share vs. Telenor

Source: NextGenTel & Telenor

NextGenTel’s ambition is to sustain its # 2 position

NextGenTel market share vs. Telenor (no. of lines (DSL))

020 00040 00060 00080 000

100 000120 000140 000160 000

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

2001 2002 2003D

SL

- n

o.

of

lin

es

0,0 %

5,0 %

10,0 %

15,0 %

20,0 %

25,0 %

30,0 %

35,0 %

Telenor (total)

NextGenTel (total)

Market shareNextGenTel vs.Telenor

13

Favourable market position ….

Market shares Norwegian xDSL 2Q-03

63%

21%

6%

4%

3%

3%

Telenor

NextGenTel

Others

BlueCom

Tiscali

Tele 2

NextGenTel has a favourable market position: First mover in Norway (rapid growth)

Clear # 2 broadband and DSL player in Norway (> 20 % overall DSL market share, > 18% overall broadband market share)

NGT covers approx. 50% of Norwegian households (own network ~45%)

Attractive player in a Nordic consolidation

Strong anticipated growth (low overall penetration in Norwegian market (11% Vs 65% coverage)

Markedsandeler i det norske bredbåndsmarkedet (anslag pr Q2 2003)

Andre47 %

Andre7 %

Telenor Avidi8 %

Telenor Plus45 %

UPC12 %

NextGenT18 %

Tiscali2 %

Song0 %

Tele22 %

Bluecom5 %

Catch2 %

Source: Norsk Telekom Source: PT

14

NextGenTel – Owners / Board of Directors

Board of Directors:Shareholder Shares %

Geocapital V L.P. 4 261 074 21.3%

Northzone III AS 3 114 043 15.6%

Venture Partners Multimedia Fund III 2 007 054 10.0%

Geocapital Eurofund L.P. 1 877 636 9.4%

Borea AS 1 717 258 8.6%

Vital ASA 944 606 4.7%

DnB Investor AS 615 524 3.1%

Nordea Liv AS 548 103 2.7%

TV2 Invest AS 527 171 2.6%

Vikerud Venture AS 526 122 2.6%

Fritz Rieber 407 734 2.0%

Vesta Forsikring AS 371 223 1.9%

Olav Stokke 349 345 1.7%

Lars Erik Larssen 328 164 1.6%

Morten Ågnes 298 788 1.5%

Odd Kristen Høydalsvik 298 788 1.5%

Bjørn Nilsen 298 788 1.5%

LGT 267 088 1.3%

NGT Management Invest I AS 206 053 1.0%

NGT Management Invest II AS 203 337 1.0%

Other shareholders 832 100 4.2%

Total shares outstanding 20 000 000 100.0%

NextGenTel Holding ASA – proforma shareholder structure

• Bjørn Stray, Partner, Northzone Ventures, Chairman

• Arve Johan Andresen, Partner, Northzone VenturesDifferent Northzone investment units owns approximately 26% of the shares in NextGenTel

• Lawrence Lepard, Partner, Geocapital Partners. Different Geocapital investment units own approximately 31% of the shares in NextGenTel 

• Eric Huygen, Independent board member. Huygen owns approximately 0.3% of the shares 

• Fritz Rieber, Borea. Borea owns approximately 9% of the shares in NextGenTel. In addition, Mr. Rieber personally owns approximately 2% of the shares in NextGenTel

• Bengt Thuresson, independent board member

• Olav Stokke, CEO NextGenTel.

• Lars Erik Larssen, CFO NextGentel

Mr Stokke and Mr Larssen together with the founding partners of NextGenTel owns approximately 11% of the shares in NextGenTel

15

Income Statement

NextGenTel Group, pro forma Q1-Q4 Q1-Q3 Q3

All figures in NOK 1.000 2000 2001 2002 2002 2003 2002 2003

Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited

P&L figures:

Operating revenues 110 30 247 147 481 96 034 208 426 38 784 76 091

Cost of goods sold 0 28 597 76 770 50 343 100 822 19 172 36 266

Other operating costs 24 620 96 489 99 838 76 510 73 345 26 682 26 824

EBITDA (24 510) (94 839) (29 127) (30 819) 34 258 (7 070) 13 001

Depreciation and amortization cost 167 11 374 47 460 33 846 66 117 11 545 23 541

EBIT (24 667) (106 213) (76 587) (64 665) (31 858) (18 615) (10 540)

Net financial items 887 (3 512) (21 060) (14 250) (25 883) (6 219) (7 103)

Operating profit/loss before tax (23 790) (109 725) (97 647) (78 915) (57 490) (24 834) (17 643)

Net profit/(loss) for the period (17 146) (79 038) (70 306) (56 819) (41 393) (17 880) (12 703)

16

Balance Sheet and Cash Flow

NextGenTel Group, pro forma Q1-Q4 Q1-Q3 Q3

All figures in NOK 1.000 2000 2001 2002 2002 2003 2002 2003

Balance sheet figures:

Total long-term assets 10 947 165 387 390 977 379 556 420 319

Total current assets 65 013 24 384 46 301 39 687 53 490

Total assets 75 960 189 771 437 278 419 243 473 809

Total equity 60 860 43 896 80 951 71 437 85 552

Total long-term liabilities 0 101 633 234 801 253 568 228 431

Total short-term liabilities 15 100 44 242 121 526 94 237 159 825

Total equity and liabilities 75 960 189 771 437 278 419 243 473 809

Cash flow figures:

Net cash flow from operations (17 820) (87 305) 745 (30 835) (8 751) 16 957 25 184

Net cash flow from investments 0 (141 540) (315 940) (185 075) (149 156) (137 656) (51 177)

Net cash flow from financing 78 000 173 774 313 093 220 588 157 005 97 544 20 860

Net cash flow 60 180 (55 071) (2 102) 4 678 (903) (23 155) (5 133)