Telenor ASA — Earnings Release 2014

Apr 30, 2014

One-time items in Telenor Group's financial reporting for Q1 2014 - updated

One-time items in Telenor Group's financial reporting for Q1 2014 - updated

One-time item related to VimpelCom

On 18 April 2014, VimpelCom Ltd. announced the

signing of a share purchase agreement for the sale by

Global Telecom Holding (GTH) of a 51% interest in

Orascom Telecom Algérie (OTA) to the national

Algerian investment fund Fonds National

d'Investissement (FNI) for a consideration of USD

2.643 billion. OTA is currently owned 96.6% by GTH.

GTH is owned 51.9% by VimpelCom Ltd. Hence, VimpelCom

Ltd. effectively holds 50.1% of OTA. In accordance

with the shareholders agreement to be entered into

between GTH and FNI, GTH will continue to exercise

operational control over OTA and, as a result, both

GTH and VimpelCom Ltd. will continue to fully

consolidate OTA, according to VimpelCom's press

release.

According to VimpelCom's press release, OTA will

prior to closing of the transaction pay a fine of USD

1.3 billion to the Algerian Treasury. OTA will also

discontinue all pending proceedings relating to the

disputes with the Algerian tax administration

relating to tax reassessments for the years 2004 to

2009. Consequently, OTA will write off in its

financial statements the related tax receivable of

USD 0.7 billion. VimpelCom Ltd. announced that it

will take one-off charge for the settlement costs of

USD 2.0 billion in its 2013 financial statements. Of

the total charge of USD 2.0 billion, USD 1.0 billion

is attributable to the shareholders of VimpelCom Ltd.

Holding a 33.05% economic interest in VimpelCom Ltd.,

Telenor will recognise a negative one-time item of

NOK 2.0 billion related to this in the income

statement for the first quarter of 2014.

Previously disclosed one-time items

In addition, and as announced on 4 April 2014,

Telenor's income statement for the first quarter

2014 will be impacted by the following one-time

items:

On 26 March 2014, Telenor announced the divestment of

Conax, the encryption business in Telenor Broadcast,

for NOK 1.5 billion on a cash and debt free basis.

The transaction was finalised on 4 April 2014.

Telenor will report a sales gain of approximately NOK

1.2 billion, included in "Other income and expenses"

in Q1 2014. The cash effect of the transaction will

occur in Q2 2014.

On 31 March 2014, Indian authorities confirmed that

Telenor's Indian subsidiary Telewings will be granted

an offset of the entry fee of INR 16.6 billion

(around NOK 1.7 billion) paid by Unitech Wireless in

2008 against the remaining instalments on the payable

bid amount on spectrum acquired by Telewings in

2012. The one-time effect of the licence offset will

be recognized in Telenor's Q1 results as Other

income. In addition, there is a positive effect on

net financial items of INR 1.7 billion (around NOK

0.2 billion) as accrued interest is reduced following

the reduction of the licence debt. The cash effects

from the granted offset will occur in connection with

the remaining instalments, scheduled for 2015-2024.

On 4 April 2014, Telenor Norway announced the results

of the voluntary redundancy packages offered in the

period 5-26 March. A one-time restructuring cost of

around NOK 250 million related to this process will

be recognised in "Other income and expenses" in Q1

For more information please contact Telenor Investor

Relations.