Telenor ASA — Audit Report / Information 2020

Mar 23, 2021

Consolidated Income Statement

Telenor Group 1 January – 31 December

NOK in millions, except earnings per share	Note	2020	2019
Revenues	ნ	122 811	113 666
Cost of materials and traffic charges	7	(29 168)	(27 912)
Salaries and personnel costs	8	(11398)	(10803)
Other operating expenses	9	(25125)	(24 215)
Other income	10	4 588	741
Uther expenses	10	(2543)	(1200)
EBITDA		58 565	50 276
Depreciation and amortisation	17, 18, 19	(29 023)	(24527)
Impairment losses	15, 17, 18, 19	(11)	(47)
Operating profit		29 500	25 702
Share of net income (loss) from associated companies and joint ventures	20	(414)	(955)
Gains (losses) on disposal of associated companies and joint ventures	20	53	106
Financial income and expenses
Financial income	12	675	1354
Financial expenses	12	(4 635)	(5 031)
Foreign currency gains	12	3080	884
Foreign currency losses	12	(1891)	(1166)
Other changes	12	(127)	75
Net financial income (expenses)		(3 498)	(3884)
Profit before taxes		25 641	20 968
Income taxes	13	(6577)	(9 033)
Profit from continuing operations		19 064	11 936
Profit (loss) from discontinued operations	4	1 995	(742)
Net income		21059	11 194
Net income attributable to:
Non-controlling interests (Minority interests)		3718	3421
Equity holders of Telenor ASA		17341	773
Earnings per share in NOK:
Basic/diluted from continuing operations	14	10.90	5.91
Basic/diluted from discontinued operations	14	1.42	(0.52)
Basic/diluted from total operations	14	12.32	5.40

Consolidated Statement of Comprehensive Income

Telenor Group 1 January – 31 December

NOK in millions	Note	2020	2019
Net income		21 059	11 194
Other comprehensive income (loss)
Translation differences on net investment in foreign operations	24	2409	(138)
Amount reclassified from other comprehensive income statement on partial disposal	24	(133)	(244)
Net gain (loss) on hedge of net investment	24, 29	(3587)	59
Income taxes		789	(13)
Share of other comprehensive income (loss) of associated companies and joint ventures		(4)
Amount reclassified from other comprehensive income statement on disposal		(3)
Items that may be reclassified subsequently to income statement		(530)	(335)
Net gain (loss) on equity investments	24	32	(26)
Remeasurement of defined benefit pension plans	24, 26	(416)	714
Income taxes		104	(158)
Items that will not be reclassified to income statement		(280)	530
Other comprehensive income (loss), net of taxes		(810)	194
Total comprehensive income (loss)		20 250	11388
Total comprehensive income (loss) attributable to:
Non-controlling interests		3612	3670
Equity holders of Telenor ASA		16638	777

Consolidated Statement of Financial Position

Telenor Group as of 31 December

NOK in millions	Note	2020	2019
ASSETS
Deferred tax assets Goodwill	13	2 841	2 445 27 451
	15, 16	28 947
Intangible assets	17	11 222	11 370
Right-of-use assets	18	62 813	59 381
Property, plant and equipment	19	79 367	83 179
Associated companies and joint ventures	20 22	6 417	4 299
Other non-current assets		14 856 206 464	13 916 202 040
Total non-current assets
Prepaid taxes		1 239	1334
Inventories		1313	1 485
Trade and other receivables	21	26 359	25 773
Other current financial assets	22	576	910
Assets classified as held for sale	4		3 489
Cash and cash equivalents	23	20 577	13 867
Total current assets		50 065	46 858
Total assets		256 529	248 899
EQUITY AND LIABILITIES
Equity attributable to equity holders of Telenor ASA	24	38 324	38 054
Non-controlling interests	24	5 594	5 286
Total equity		43 918	43 339
Liabilities
Non-current lease liabilities	18	35 584	32 003
Non-current interest-bearing liabilities	28	98 627	83 988
Non-current non-interest-bearing liabilities	27	1 466	1549
Deferred tax liabilities	13	4 831	4 902
Pension obligations	26	2747	2 386
Provisions and obligations	25	8 820	7 701
Total non-current liabilities		152 075	132 527
Current lease liabilities	18	9 298	9 295
Current interest-bearing liabilities	28	7 296	14 762
Trade and other payables	27	33 891	35 691
Current tax payables		3 988	4 863
Current non-interest-bearing liabilities	27	1871	2 227
Provisions and obligations	25	1123	1219
Liabilities classified as held for sale	4	3 070	4 976
Total current liabilities		60 536	73 032
Total equity and liabilities		256 529	248 899

Gunn Wærsted Chair

Se Agrica
TacobAgraou

Board member

anita Heich Steine

Anita Helen Steine

Employee representative

n Erik Reinhardsen

Board member

Ester Smistad Esben Smistad Employee representative

Fornebu, 23 March 2021

Board member

Jørgen Kildahl Vice Chair of the Board

Ticter Cornelius Knook

Astrid Simonsen fors Board member

Lan O. Thisty lan Otto Eriksen

Employee representative

Sinford Sally Davis Board member

1908 Drive
Sigve Brekke President & CEO

Consolidated Statement of Cash Flows

Telenor Group 1 January – 31 December

NOK in millions	Note	2020	2019
Profit before taxes from continuing operations		25641	20 968
Profit (loss) before taxes from discontinued operations Profit before taxes		1 998	(651) 201318
		27 639
Income taxes paid		(7 395)	(10 512)
Net (gains) losses from disposals, impairments and change in fair value of financial assets and liabilities		(4828)	(471)
Depreciation, amortisation and impairment losses		29 063	24 625
Share of net (income) loss and (qains) losses on disposal of associated companies and (oint ventures		361	849
Dividends received from associated companies		1250	63
Net interest expense		3 468	3923
Changes in net operating working capital	23	1101	512
Net currency (gains) losses not relating to operating activities		(gla)	(226)
Interest received		308	681
Interest paid		(3539)	(4664)
Other adjustments		(2689)	(8/6)
Net cash flow from operating activities		43 820	34 222
Proceeds from sale of property, plant and equipment, intangible assets and right-of-use assets		54	384
Purchases of property, plant and equipment, intangible assets and prepayments for right-of-use assets	23	(19000)	(21986)
Proceeds from disposal of subsidiaries and associated companies, net of cash disposed	23	7 651	(1073)
Purchases of subsidiaries, associated companies and joint ventures, net of cash acquired	23	(340)	(25 957)
Proceeds from sale of other investments		1434	5350
Purchases of other investments		(364)	(245)
Net cash flow from investing activities		(10 565)	(43526)
Proceeds trom borrowings	28	34 432	66 184
Repayments of borrowings	28	(33257)	(33,923)
Payments of lease liabilities related to spectrum licences	18, 28	(3634)	(1 080)
Payments of lease liabilities related to other lease contracts	18	(5 395)	(4 282)
Net payments related to supply chain financing		(89)	(5)
Purchase of treasury shares	29	(4161)	(6114)
Dividends paid to non-controlling interests in subsidiaries	23	(3 202)	(4327)
Dividends paid to equity holders of Telenor ASA	24	(12211)	(12121)
Net cash flow from financing activities		(27 583)	4 332
Effects of exchange rate changes on cash and cash equivalents		420	641
Net change in cash and cash equivalents		6 091	(4 330)
Cash and cash equivalents as of 1 January		13 997	18 328
Cash and cash equivalents as of 31 December		20088	13 997
Of which cash and cash equivalents in assets held for sale as of 31 December	4		735
Cash and cash equivalents excluding assets held for sale as of 31 December	23	20 038	13 262

Consolidated Statement of Changes in Equity

Telenor Group – for the years ended 31 December 2019 and 2020

	Attributable to equity holders of Telenor ASA
				Cumulative		Non-
	Paid-in	Other	Retained	translation		controlling	Total
NOK in millions	capital	reserves	earnings	differences	lotal	interests	equity
Equity as of 1 January 2019	8 818	(15 630)	58 425	(2 168)	49 446	5 009	54 455
Net income for the period			773		773	3421	11 194
Other comprehensive income (loss) for the period		522		(578)	(56)	250	194
Total comprehensive income (loss) for the period	-	522	773	(578)	7 717	3670	11 388
Disposal of VEON shares		3 586	(3 586)
Acquisition of subsidiaries with non-controlling interests						651	651
Disposal of subsidiaries with non-controlling interests						(52)	(52)
Transactions with non-controlling interests		(476)	(506)		(982)	(653)	(1635)
Dividends			(12 125)		(12 125)	(3 339)	(15 464)
Share buyback	(213)	(5 738)			(5 951)		(5 951)
Share-based payment, exercise of share options and distribution of
shares		(56)			(56)		(56)
Equity as of 31 December 2019	8 605	(17 792)	49 982	(2 746)	38 054	5 286	43 339
Net income for the period			17 341		17 341	3 718	21 059
Other comprehensive income (loss) for the period		(268)		(435)	(703)	(106)	(810)
Total comprehensive income (loss) for the period		(568)	17341	(435)	16 638	3 612	20 250
Disposal of equity investments at fair value through other
comprehensive income		(4)	4
Equity adjustments in associated companies		2			2		2
Dividends			(12 277)		(12 277)	(3 304)	(15 581)
Share buyback	(139)	(3 974)			(4 113)		(4 113)
Share-based payment, exercise of share options and distribution of
shares		21			21		2
Equity as of 31 December 2020	8 466	(22 014)	55 049	(3 181)	38 324	5 594	43 918

See note 24 for additional equity information.