Telenor ASA — Audit Report / Information 2015

Mar 15, 2016

Consolidated income statement

Telenor Group 1 January – 31 December

NOK in millions, except earnings per share	Note	2015	2014
			Re-presented1)
Revenues	6	128 175	111 443
Operating expenses
Cost of materials and traffic charges	7	(35 147)	(30 830)
Salaries and personnel costs	8	(12 406)	(11 375)
Other operating expenses	9	(36 425)	(30 742)
Other income	10	113	3 092
Other expenses	10	(985)	(1 098)
Depreciation and amortisation	17,18	(18 384)	(15 529)
Impairment losses	15,17,18	(2 181)	(34)
Operating profit		22 761	24 927
Share of net income (loss) from associated companies and joint ventures	19	(7 070)	(3 798)
Gains (losses) on disposal of associated companies	19	251	(61)
Financial income and expenses
Financial income	12	491	501
Financial expenses	12	(2 727)	(2 232)
Net currency gains (losses)	12	(961)	(149)
Net change in fair value of financial instruments	12	277	128
Net gains (losses and impairment) of financial assets and liabilities	12	-	40
Net financial income (expenses)		(2 921)	(1 711)
Profit before taxes		13 020	19 356
Income taxes	13	(6 317)	(6 598)
Net income		6 704	12 759
Net income attributable to:
Non-controlling interests		3 289	3 682
Equity holders of Telenor ASA		3 414	9 077
Earnings per share in NOK:
Basic from net income	14	2.27	6.03
Diluted from net income	14	2.27	6.03

1) 2014 has been re-presented as Telenor Denmark has ceased to be classified as discontinued operations, see note 4.

Consolidated statement of comprehensive income

Telenor Group 1 January – 31 December

NOK in millions	Note	2015	2014
Net income		6 704	12 759
Other comprehensive income (loss)
Translation differences on net investments in foreign operations	23	7 774	10 867
Income taxes		(3)	(86)
Amount reclassified from other comprehensive income to income statement on disposal	23	(15)	(83)
Net gain (loss) on hedge of net investments	23, 28	(5 491)	(5 271)
Income taxes		1 232	1 423
Net gain (loss) on available-for-sale investments	23	(17)	45
Amount reclassified from other comprehensive income to income statement on disposal	23	-	(17)
Share of other comprehensive income (loss) from associated companies and joint ventures	23	(3 357)	(11 103)
Amount reclassified from other comprehensive income to income statement on disposal	23	(23)	24
Items that may be reclassified subsequently to income statement		99	(4 200)
Remeasurement of defined benefit pension plans	23, 25	1 111	(931)
Income taxes		(249)	234
Items that will not be reclassified to income statement		862	(697)
Other comprehensive income (loss), net of taxes		961	(4 897)
Total comprehensive income (loss)		7 665	7 862
Total comprehensive income (loss) attributable to:
Non-controlling interests		3 762	4 441
Equity holders of Telenor ASA		3 903	3 421

Consolidated statement of financial position

Telenor Group as of 31 December

NOK in millions	Note	2015	2014
			Re-presented1)
ASSETS
Deferred tax assets	13	3 366	3 432
Goodwill	15,16	23 968	22 493
Intangible assets	17	40 495	39 982
Property, plant and equipment	18	69 211	59 562
Associated companies and joint ventures	19	19 400	24 157
Other non-current assets	21	6 155	6 093
Total non-current assets		162 596	155 720
Prepaid taxes		770	224
Inventories		2 271	2 052
Trade and other receivables	20	23 877	21 226
Other current financial assets	21	1 436	1 089
Assets classified as held for sale	4	3	1 095
Cash and cash equivalents	22	13 956	12 350
Total current assets		42 313	38 035
Total assets		204 909	193 755
EQUITY AND LIABILITIES
Equity attributable to equity holders of Telenor ASA	23	58 467	63 755
Non-controlling interests	23	4 660	4 750
Total equity		63 126	68 505
Liabilities
Non-current interest-bearing liabilities	27	63 802	61 113
Non-current non-interest-bearing liabilities	26	4 010	1 988
Deferred tax liabilities	13	3 023	2 569
Pension obligations	25	2 424	3 568
Provisions and obligations	24	3 545	3 408
Total non-current liabilities		76 805	72 646
Current interest-bearing liabilities	27	12 626	7 474
Trade and other payables	26	44 030	38 315
Current tax payables		3 392	2 684
Current non-interest-bearing liabilities	26	3 339	2 420
Provisions and obligations	24	1 591	1 711
Total current liabilities		64 978	52 605
Total equity and liabilities		204 909	193 755

1) 2014 has been re-presented as Telenor Denmark has ceased to be classified as discontinued operations, see note 4.

Board member Board member Board member Board member Board member

Regi Aalstad Per Gunnar Salomonsen Åse Selfjord Harald Stavn Sigve Brekke Board member Board member Board member Board member President & CEO

Jon Erik Reinhardsen Marit Vaagen Dr. Burckhard Bergmann Sally Davis Dag J. Opedal

Fornebu, 15 March 2016

Gunn Wærsted Frank Dangeard Chair Deputy Chair

Consolidated statement of cash flows

Telenor Group 1 January – 31 December

NOK in millions	Note	2015	2014
			Re-presented1)
Profit before taxes		13 020	19 356
Income taxes paid		(5 141)	(4 509)
Net (gain) loss from disposals, impairments and change in fair value of financial assets and liabilities		81	(2 996)
Depreciation, amortisation and impairment losses		20 565	15 564
Share of net (income) loss and (gains) losses on disposal of associated companies and joint ventures		6 819	3 859
Dividends received from associated companies		189	219
Net interest expense		2 071	1 622
Changes in net operating working capital		2 774	2 312
Net currency (gains) losses not relating to operating activities		667	229
Interest received		418	444
Interest paid		(1 841)	(1 528)
Other adjustments	22	(2 517)	(719)
Net cash flow from operating activities		37 107	33 851
Proceeds from sale of property, plant and equipment and intangible assets		108	117
Purchases of property, plant and equipment and intangible assets	22	(21 168)	(20 693)
Proceeds from disposal of subsidiaries and associated companies, net of cash disposed	22	1 354	1 083
Purchases of subsidiaries, associated companies and joint ventures, net of cash acquired	22	(497)	(1 443)
Proceeds from sale of other investments		174	1 971
Purchases of other investments		(252)	(2 032)
Net cash flow from investing activities		(20 281)	(20 997)
Proceeds from borrowings		14 650	16 969
Repayments of borrowings		(15 190)	(15 834)
Purchase of treasury shares	23	-	(1 048)
Dividends paid to non-controlling interests in subsidiaries	22, 23	(3 777)	(3 386)
Dividends paid to equity holders of Telenor ASA	23	(10 724)	(10 567)
Net cash flow from financing activities		(15 041)	(13 866)
Effects of exchange rate changes on cash and cash equivalents		81	927
Net change in cash and cash equivalents		1 866	(85)
Cash and cash equivalents as of 1 January		11 893	11 978
Cash and cash equivalents as of 31 December	22	13 760	11 893

1) 2014 has been re-presented as Telenor Denmark has ceased to be classified as discontinued operations, see note 4.

Consolidated statement of changes in equity

Telenor Group – for the years ended 31 December 2014 and 2015

	Attributable to equity holders of Telenor ASA
NOK in millions	Paid-in capital1)	Other reserves1)	Retained earnings	Cumulative translation differences1)	Total	Non controlling interests1)	Total equity
Equity as of 1 January 2014	9 127	(6 217)	75 464	(5 009)	73 366	3 672	77 037
Net income for the period	-	-	9 077	-	9 077	3 682	12 759
Other comprehensive income (loss) for the period	-	(11 744)	-	6 088	(5 656)	758	(4 897)
Total comprehensive income (loss) for the period	-	(11 744)	9 077	6 088	3 421	4 441	7 862
Transactions with non-controlling interests	-	(2)	-	-	(2)	22	20
Equity adjustments in associated companies and joint ventures	-	(1 304)	-	-	(1 304)	-	(1 304)
Dividends	-	-	(10 567)	-	(10 567)		(3 385) (13 951)
Share buyback	(49)	(999)	-	-	(1 048)	-	(1 048)
Share-based payment, exercise of share options and distribution of shares	-	(112)	-	-	(112)	-	(112)
Equity as of 31 December 2014	9 078	(20 377)	73 974	1 080	63 755	4 750	68 505
Net income for the period	-	-	3 414	-	3 414	3 289	6 704
Other comprehensive income (loss) for the period	-	(2 534)	-	3 022	488	473	961
Total comprehensive income (loss) for the period	-	(2 534)	3 414	3 022	3 903	3 762	7 665
Transactions with non-controlling interests	-	(2)	-	-	(2)	24	22
Equity adjustments in associated companies and joint ventures	-	1 732	-	-	1 732	-	1 732
Dividends	-	-	(10 959)	-	(10 959)		(3 876) (14 835)
Share-based payment, exercise of share options and distribution of shares	-	37	-	-	37	-	37
Equity as of 31 December 2015	9 078	(21 143)	66 429	4 102	58 467	4 660	63 126

1) See note 23.