Telenor ASA — Audit Report / Information 2016

Mar 14, 2017

CONSOLIDATED INCOME STATEMENT Telenor Group 1 January – 31 December

NOK in millions, except earnings per share	Note	2016	2015
Revenues	6	131 427	128 175
Cost of materials and traffic charges	7	(34 095)	(35 147)
Salaries and personnel costs	8	(13 152)	(12 406)
Other operating expenses	9	(37 698)	(36 425)
Other income	10	547	113
Other expenses	10	(1 927)	(985)
EBITDA		45 103	43 325
Depreciation and amortisation	17,18	(20 050)	(18 384)
Impairment losses	15,17,18	(7 983)	(2 181)
Operating profit		17 070	22 761
Share of net income (loss) from associated companies and joint ventures	19	1 517	(7 070)
Gains (losses) on disposal of associated companies	19	(3 313)	251
Financial income and expenses
Financial income	12	427	491
Financial expenses	12	(3 205)	(2 727)
Net currency gains (losses)	12	(208)	(961)
Net change in fair value of financial instruments	12	(557)	276
Net financial income (expenses)		(3 543)	(2 921)
Profit before taxes		11 731	13 020
Income taxes	13	(5 924)	(6 317)
Net income		5 806	6 704
Net income attributable to:
Non-controlling interests		2 974	3 289
Equity holders of Telenor ASA		2 832	3 414
Earnings per share in NOK
Basic/Diluted from net income	14	1.89	2.27

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Telenor Group 1 January – 31 December

NOK in millions	Note	2016	2015
Net income		5 806	6 704
Other comprehensive income (loss)
Translation differences on net investments in foreign operations	23	(4 646)	7 774
Income taxes		(15)	(3)
Amount reclassified from other comprehensive income to income statement on partial disposal	23	(3 865)	(15)
Income taxes reclassified	23	256	-
Net gain (loss) on hedge of net investments	23, 28	2 734	(5 491)
Income taxes		(684)	1 232
Amount reclassified from other comprehensive income to income statement on partial disposal	23	2 969	-
Income taxes reclassified	23	(816)	-
Net gain (loss) on available-for-sale investments	23	(43)	(17)
Share of other comprehensive income (loss) from associated companies and joint ventures	23	631	(3 357)
Amount reclassified from other comprehensive income to income statement on disposal	23	4 783	(23)
Items that may be reclassified subsequently to income statement		1 305	99
Remeasurement of defined benefit pension plans	23, 25	(304)	1 111
Income taxes		55	(249)
Items that will not be reclassified to income statement		(248)	862
Other comprehensive income (loss), net of taxes		1 056	961
Total comprehensive income (loss)		6 862	7 665
Total comprehensive income (loss) attributable to:
Non-controlling interests		2 824	3 762
Equity holders of Telenor ASA		4 038	3 903

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Telenor Group as of 31 December

NOK in millions	Note	2016	2015
ASSETS		2 163
Deferred tax assets Goodwill	13 15,16	24 519	3 366 23 968
Intangible assets	17	33 057	40 495
Property, plant and equipment	18	72 016	69 211
Associated companies and joint ventures	19	15 773	19 400
Other non-current assets	21	5 800	6 155
Total non-current assets		153 328	162 596
Prepaid taxes		737	770
Inventories		1 802	2 271
Trade and other receivables	20	24 876	23 877
Other current financial assets	21	2 489	1 436
Assets classified as held for sale		2	3
Cash and cash equivalents	22	23 085	13 956
Total current assets		52 991	42 313
Total assets		206 319	204 909
EQUITY AND LIABILITIES
Equity attributable to equity holders of Telenor ASA	23	50 879	58 467
Non-controlling interests	23	4 517	4 660
Total equity		55 396	63 126
Liabilities
Non-current interest-bearing liabilities	27	60 391	63 802
Non-current non-interest-bearing liabilities	26	3 816	4 010
Deferred tax liabilities	13	2 972	3 023
Pension obligations	25	2 585	2 424
Provisions and obligations	24	3 542	3 545
Total non-current liabilities		73 305	76 805
Current interest-bearing liabilities	27	25 970	12 626
Trade and other payables	26	42 890	44 030
Current tax payables		3 439	3 392
Current non-interest-bearing liabilities	26	3 642	3 339
Provisions and obligations	24	1 677	1 591
Total current liabilities		77 618	64 978

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 Jacob Aqraou Siri Beate Hatlen Sally Davis Ashok Vaswani

Total equity and liabilities 206 319 204 909

Fornebu, 14 March 2017

Gunn Wærsted Dag J. Opedal Chair Deputy Chair

CONSOLIDATED STATEMENT OF CASH FLOWS Telenor Group 1 January – 31 December

NOK in millions	Note	2016	2015
Profit before taxes		11 731	13 020
Income taxes paid		(5 760)	(5 141)
Net (gain) loss from disposals, impairments and change in fair value of financial assets and liabilities		574	81
Depreciation, amortisation and impairment losses		28 033	20 565
Share of net (income) loss and (gains) losses on disposal of associated companies and joint ventures		1 796	6 819
Dividends received from associated companies		130	189
Net interest expense		2 447	2 071
Changes in net operating working capital	22	972	2 774
Net currency (gains) losses not relating to operating activities		1 087	667
Interest received		306	418
Interest paid		(2 042 )	(1 841)
Other adjustments		504	(2 517)
Net cash flow from operating activities		39 778	37 107
Proceeds from sale of property, plant and equipment and intangible assets		92	108
Purchases of property, plant and equipment and intangible assets	22	(23 727)	(21 168)
Proceeds from disposal of subsidiaries and associated companies, net of cash disposed	22	5 319	1 354
Purchases of subsidiaries, associated companies and joint ventures, net of cash acquired	22	(2 971)	(497)
Proceeds from sale of other investments		607	174
Purchases of other investments		(425)	(252)
Net cash flow from investing activities		(21 105)	(20 281)
Proceeds from borrowings		26 280	14 650
Repayments of borrowings		(15 698)	(10 516)
Payments of licence obligations		(1 562)	(2 136)
Payments related to supply chain financing	22	(3 672)	(2 538)
Dividends paid to non-controlling interests in subsidiaries	22	(3 139)	(3 777)
Dividends paid to equity holders of Telenor ASA	23	(11 246)	(10 724)
Net cash flow from financing activities		(9 037)	(15 041)
Effects of exchange rate changes on cash and cash equivalents		(446)	81
Net change in cash and cash equivalents		9 190	1 866
Cash and cash equivalents as of 1 January		13 760	11 893
Cash and cash equivalents as of 31 December	22	22 951	13 760

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Telenor Group – for the years ended 31 December 2015 and 2016

Attributable to equity holders of Telenor ASA NOK in millions Paid-in capital1) Other reserves1) Retained earnings Cumulative translation differences1) Total Noncontrolling interests1) Total equity Equity as of 1 January 2015 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 4660 63 126 Net income for the period - - 2 832 - 2 832 2 974 5 806 Other comprehensive income (loss) for the period - 5 164 - (3 958) 1 206 (150) 1 056 Total comprehensive income (loss) for the period - 5 164 2 832 (3 958) 4 038 2 824 6 862 Transactions with non-controlling interests - (152) - - (152) (106) (258) Equity adjustments in associated companies and joint ventures - (239) - - (239) - (239) Dividends - - (11 261) - (11 261) (2 861) (14 122) Share-based payment, exercise of share options and distribution of shares - 28 - - 28 - 28 Equity as of 31 December 2016 9 078 (16 343) 58 000 144 50 879 4 517 55 396

1) See note 23.