Telenor ASA — Management Reports 2024

Feb 5, 2024

Non-cash accounting impairment of Telenor’s stake in True Corporation

Non-cash accounting impairment of Telenor’s stake in True Corporation

In Q1 2023, Telenor ASA recognised a NOK 18.5 billion net gain in conjunction with the combination of dtac and True in Thailand. The transaction created the new True Corporation Ltd, listed on the Stock Exchange of Thailand. True is now accounted for as an associated company, with Telenor holding a 30.2% stake, of which 26.3% is directly owned.

As of 31 December 2023, the share price of True Corporation closed at THB 5.05, implying that the market value of Telenor’s stake had dropped significantly below its initial per-share cost price of THB 8.15. According to IFRS Accounting Standards, a significant or prolonged drop in quoted market prices below initial cost price is objective evidence for impairment. Based on this, Telenor considers it necessary to recognise an impairment related to the investment True Corporation Ltd of NOK 8,037 million, aligning the carrying amount with the market value of Telenor’s equity stake as of 31 December 2023. In addition, the shareholder loan provided to the joint venture holding Telenor’s indirect ownership share in True is recognised at fair value, resulting in a reduced value of NOK 695 million, which will be reflected in the net financial items in the fourth quarter.

This mark-to-market alignment has no cash implication and does not reflect any changes to Telenor’s view on the outlook and ownership of True Corporation. Overall, the dtac-True Corporation transaction remains positive for Telenor and True Corporation remains a key asset in Telenor’s Asia portfolio.

Until the board of directors has approved the 2023 financial results, all financial references in this stock exchange release are preliminary.

Investor contact:

Frank Maaø

+47 91674045

frank.maao@telenor.com

Media contact:

Ingibjörg Meyer-Myklestad

+47 90605505

ingibjorg.meyer-myklestad@telenor.com