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Investor Presentaiton

nuuday In brief Business and strategy Performance Corporate governance Financial statements Nuuday's performance • • • . • In 2022, we stabilised or grew our key strategic areas, following several years of declining customer volumes. Mobile voice RGUS grew steadily each quarter, totalling net adds of 42,000 throughout 2022, while we successfully increased broadband RGUS in Q4 2022, for the first time in seven years. Revenue increased slightly by 0.1% with a 0.5% increase in service revenue, driven by strong performances in mobility services and high-speed broadband. Underlying EBITDA (excluding transformation costs¹) declined by 3.1%, driven mainly by gross profit margin pressure and increasing third-party costs against the background of stabilisation in our core business. Underlying capital expenditure dropped slightly by 1.1% but, when including transformation costs related to Nuuday's technology transformation, capital expenditure rose by 14.4%, as we began the significant investment in building the new Nuuday. Gross profit (DKKm) Revenue (DKKM) 14,674 Service revenue (DKKM) 13,275 4,847 3,081 Our financial performance reflects the phase we have reached in our transformation; we are clearly focused on investing in our customer experience and comprehensive business transformation. The benefits of our efforts are already visible in im- proved customer numbers, stable service revenue and improvements in operating expenditure in our underly- ing business. At the same time, we are investing materially to drive the business transformation; overall, we will invest more than DKK 1bn to complete our transformation. This will, over time, produce a sustainable, efficient and profita- ble business that delivers innovative products and ex- cellent customer experiences in a truly digital manner. Service revenue The company's success in stabilising its customer base was reflected in slightly growing service revenue, up 0.5% to DKK 13,275m. This rise in service revenue was driven by a continued strong performance in the mobile segment, offset by declines in legacy products and a modest decline in broadband - though with an increase in our high-speed broadband base. Service revenue in the mobile segment grew by 3.6%, driven by increasing ARPU at Telmore, and eesy's growing cus- tomer base, along with increased A2P SMS prices and international roaming activity at Mobile Partners. Gross profit Gross profit decreased by 2.9%, or DKK 146m, to DKK 4,847m. The decline was driven by costs related to customers migrating from legacy products (such as DSL) to future-proof high-speed products, increased energy costs and continued increase in third-party network and content costs. Underlying Opex (DKKm) Underlying EBITDA (DKKm) 1,766 1 From 2022, Nuuday began reporting transformation costs separately. from its underlying business performance. Transformation costs exclusively comprise costs that will cease on completion of the trans- formation, and that are directly related to Nuuday's comprehensive business transformation, e.g. direct IT costs, external expenses and personnel costs for resources working on the transformation as well as extra costs from running parallel systems during the transfor- mation. The costs of transformation are fully funded, i.e. the costs of Nuuday's transformation are covered by Nuuday's current cash balance. Nuuday Annual Report 2022 18
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