Telenor ASA - Earnings Release 2016

Accounting effects in third quarter 2016 from sale of VimpelCom ADSs

As announced on 16 September 2016, Telenor has disposed

142.5 million American Depositary Shares (ADSs) in VimpelCom

Ltd. through a public offering, at a price of USD 3.50 per

ADS.

The disposal of the 142.5 million ADSs resulted in a

proportionate reclassification effect of previously

recognised translation differences in other comprehensive

income of a loss of NOK 2.5 billion, including tax effects

related to the hedging instruments. This is in line with the

accounting principle disclosed in connection with Telenor's

results for the second quarter 2016 and annual report 2015.

In addition, net income from VimpelCom's second quarter

2016 and impairment for the third quarter 2016 related to

the disposal of the 142.5 million ADSs have been recognised,

amounting to a net loss of NOK 0.5 billion.

Total loss recognised in the income statement for the third

quarter 2016 related to the disposal of the 142.5 ADSs is

NOK 3.0 billion. The effects of reclassification do not

impact the total equity of Telenor.

The net proceeds of USD 486 million (around NOK 4.0 billion)

will be included in Telenor's cash flow statement for the

third quarter 2016.

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