Telenor ASA — Annual Report 2013

Mar 18, 2014

Consolidated Income Statement

Telenor Group 1 January – 31 December

NOK in millions, except earnings per share	Note	2013	2012 Restated 1)
Revenues	6	104 027	101 718
Operating expenses
Costs of materials and traffic charges	7	(28 469)	(29 187)
Salaries and personnel costs	8	(10 755)	(10 683)
Other operating expenses	9	(28 912)	(29 000)
Other income (expenses)	10	(682)	(868)
Depreciation and amortisation	17,18	(13 731)	(14 402)
Impairment losses	15,17, 18	(151)	(7 823)
Operating profit		21 327	9 755
Share of net income (loss) from associated companies and joint ventures	19	(1 230)	2 785
Gains (losses) on disposal of associated companies	19	(359)	-
Financial income and expenses
Financial income	12	576	605
Financial expenses	12	(2 502)	(2 898)
Net currency gains (losses)	12	(498)	(156)
Net change in fair value of financial instruments	12	472	687
Net gains (losses and impairment) of financial assets and liabilities	12	39	(7)
Net financial income (expenses)	12	(1 914)	(1 769)
Profit before taxes		17 825	10 770
Income taxes	13	(5 701)	(1 743)
Net income		12 123	9 028
Net income attributable to:
Non-controlling interests		3 375	219
Equity holders of Telenor ASA		8 748	8 809
Earnings per share in NOK
Basic	14	5.74	5.63
Diluted	14	5.74	5.62

1) Implementation of revised IAS 19 Employee Benefits and amended IAS 28 Investments in Associate and Joint Ventures.

Consolidated Statement of Comprehensive Income

Telenor Group 1 January – 31 December

NOK in millions	Note	2013	2012 Restated 1)
Net income		12 123	9 028
Other comprehensive income (loss)
Translation differences on net investments in foreign operations	23	7 688	(4 531)
Income taxes		125	114
Amount reclassified from equity to income statement on disposal	23	55	14
Net gain (loss) on hedge of net investments	23, 28	(4 030)	1 335
Income taxes		1 130	(374)
Amount reclassified from equity to income statement on disposal	23	(7)	-
Net gain on available-for-sale investments	23	18	13
Amount reclassified from equity to income statement on disposal	23	-	5
Share of other comprehensive income (loss) from associated companies	23	192	(1 540)
Amount reclassified from equity to income statement on disposal	23	240	-
Items that may be reclassified subsequently to income statement		5 410	(4 964)
Re-measurement of defined benefit pension plans	23, 25	(1 246)	1 805
Income taxes		337	(504)
Items that will not be reclassified to income statement		(908)	1 301
Other comprehensive income (loss), net of taxes		4 502	(3 663)
Total comprehensive income (loss)		16 626	5 365
Total comprehensive income (loss) attributable to:
Non-controlling interests		3 566	273
Equity holders of Telenor ASA		13 059	5 092

1) Implementation of revised IAS 19 Employee Benefits and amended IAS 28 Investments in Associate and Joint Ventures.

Consolidated Statement of Financial Position

Telenor Group as of 31 December

NOK in millions	Note	2013	2012 Restated 1)	1 January 2012 Restated 1)
ASSETS
Deferred tax assets	13	3 585	4 090	1 593
Goodwill	15,16	21 442	17 682	22 145
Intangible assets	17	32 271	28 818	21 774
Property, plant and equipment	18	49 547	43 596	49 620
Associated companies and joint ventures	19	34 600	39 433	33 868
Other non-current assets	21	4 696	4 309	3 241
Total non-current assets		146 141	137 928	132 241
Prepaid taxes		531	162	147
Inventories		1 587	1 198	992
Trade and other receivables	20	19 701	18 209	17 554
Other financial current assets	21	1 027	1 567	2 638
Assets classified as held for sale		6	-	86
Cash and cash equivalents	22	11 978	8 805	12 899
Total current assets		34 830	29 941	34 317
Total assets		180 971	167 868	166 558
EQUITY AND LIABILITIES
Equity attributable to equity holders of Telenor ASA	23	73 365	73 355	83 069
Non-controlling interests	23	3 672	3 057	2 910
Total equity		77 037	76 412	85 979
Liabilities
Non-current interest-bearing financial liabilities	27	51 001	39 826	23 157
Non-current non-interest-bearing financial liabilities	26	834	1 275	1 659
Deferred tax liabilities	13	2 127	1 640	2 188
Pension obligations	25	2 736	1 497	3 076
Provisions and obligations	24	2 874	3 286	2 911
Total non-current liabilities		59 572	47 523	32 991
Current interest-bearing financial liabilities	27	7 291	10 275	10 767
Trade and other payables	26	31 706	28 034	30 708
Current tax payables		2 566	3 696	3 876
Current non-interest-bearing liabilities	26	1 485	651	1 251
Provisions and obligations	24	1 315	1 277	986
Total current liabilities		44 362	43 933	47 589
Total equity and liabilities		180 971	167 868	166 558

1) Implementation of revised IAS 19 Employee Benefits and amended IAS 28 Investments in Associate and Joint Ventures. Financial position as of 1 January 2012 is not effected by the amended IAS 28.

Board member Board member Board member Board member Board member

Barbara Milian Thoralfsson Bjørn André Anderssen Brit Østby Fredriksen Harald Stavn Jon Fredrik Baksaas

Fornebu, 18 March 2014

Hallvard Bakke Dr. Burckhard Bergmann Marit Vaagen Sally Davis Dag J. Opedal

Board member Board member Board member Board member President & CEO

Svein Aaser Frank Dangeard Chairman Deputy Chairman

Consolidated Statement of Cash Flows

Telenor Group 1 January – 31 December

NOK in millions	Note	2013	2012 Restated 1)
Profit before taxes		17 825	10 770
Income taxes paid		(4 831)	(6 041)
Net (gain) loss from disposals, impairments and change in fair value of financial assets and liabilities		(469)	(523)
Depreciation, amortisation and impairment losses		13 882	22 225
Share of net income and gain on disposal of associated companies and joint ventures		1 589	(2 785)
Dividends received from associated companies		8 194	354
Changes in inventories		(236)	(236)
Changes in trade receivables and prepayments from customers		444	(426)
Changes in trade payables		238	132
Difference between expensed and paid pensions		(68)	216
Net currency losses not relating to operating activities		498	110
Interest received		637	739
Interest paid		(1 621)	(2 436)
Changes in other operating working capital		907	1 903
Net cash flow from operating activities		36 990	24 002
Proceeds from sale of property, plant and equipment and intangible assets		161	158
Purchases of property, plant and equipment and intangible assets		(15 612)	(16 892)
Proceeds from disposal of subsidiaries and associated companies, net of cash disposed	22	107	417
Purchases of subsidiaries, associated companies and joint ventures, net of cash acquired	22	(5 973)	(7 533)
Proceeds from sale of other investments		1 210	1 560
Purchases of other investments		(507)	(628)
Net cash flow from investing activities		(20 614)	(22 918)
Proceeds from borrowings		15 061	30 415
Repayments of borrowings		(12 869)	(17 176)
Purchase of treasury shares	23	(3 998)	(4 022)
Repayment of equity and dividends paid to non-controlling interests in subsidiaries	22, 23	(2 723)	(6 015)
Dividends paid to equity holders of Telenor ASA	23	(9 239)	(7 925)
Net cash flow from financing activities		(13 768)	(4 723)
Effects of exchange rate changes on cash and cash equivalents		567	(456)
Net change in cash and cash equivalents		3 175	(4 095)
Cash and cash equivalents as of 1 January		8 805	12 899
Cash and cash equivalents as of 31 December	22	11 978	8 805

1) Implementation of amended IAS 19 Employee Benefits and amended IAS 28 Investments in Associate and Joint Ventures.

Consolidated Statement of Changes in Equity

Telenor Group – for the years ended 31 December 2012 and 2013

	Attributable to equity holders of Telenor ASA
NOK in millions	Paid-in capital 1)	Other reserves 1)	Retained earnings	Cumulative translation differences 1)	Total	Non controlling interests 1)	Total equity
Equity as of 31 December 2011 – as previously reported	9 574	4 707	75 995	(6 284)	83 992	2 910	86 902
Implementation effect of revised IAS 19	-	-	(923)	-	(923)	-	(923)
Equity as of 1 January 2012 – restated 2)	9 574	4 707	75 072	(6 284)	83 069	2 910	85 979
Net income for the period	-	-	8 809	-	8 809	219	9 028
Other comprehensive income (loss) for the period	-	(222)	-	(3 495)	(3 717)	54	(3 663)
Total comprehensive income for the period	-	(222)	8 809	(3 495)	5 092	273	5 365
Transactions with non-controlling interests	-	(3 267)	-	-	(3 267)	3 553	286
Equity adjustments in associated companies	-	319	-	-	319	-	319
Dividends	-	-	(7 925)	-	(7 925)	(3 678)	(11 603)
Share buyback	(249)	(3 773)	-	-	(4 022)	-	( 4 022)
Share-based payment, exercise of share options and distribution of shares	9	80	-	-	89	-	89
Equity as of 31 December 2012- restated 2)	9 334	(2 155)	75 956	(9 779)	73 355	3 057	76 412
Net income for the period	-	-	8 748	-	8 748	3 375	12 123
Other comprehensive income for the period	-	(459)	-	4 770	4 311	191	4 502
Total comprehensive income for the period	-	(459)	8 748	4 770	13 059	3 566	16 625
Transactions with non-controlling interests	-	222	-	-	222	(209)	13
Equity adjustments in associated companies	-	(26)	-	-	(26)	-	(26)
Dividends	-	-	(9 239)	-	(9 239)	(2 743)	(11 982)
Share buyback	(209)	(3 789)	-	-	(3 998)	-	(3 998)
Share-based payment, exercise of share options and distribution of shares	2	(10)	-	-	(8)	-	(8)
Equity as of 31 December 2013	9 127	(6 217)	75 464	(5 009)	73 365	3 672	77 037

1) See note 23.

2) Implementation of revised IAS 19 Employee Benefits and amended IAS 28 Investments in Associate and Joint Ventures. Equity as of 1 January 2012 is not effected by the amended IAS 28.