/page 18/ Consolidated Income Statement NOK in millions, except per share amounts Note 2012 2011 Revenues 6 101 718 98 516 Operating expenses Costs of materials and traffic charges 7 (29 187) (27 541) Salaries and personnel costs 8 (10 775) (10 814) Other operating expenses 9, 11 (29 000) (29 635) Other income (expenses) 10 (868) (485) Depreciation and amortisation 12 (14 402) (15 309) Impairment losses 12 (7 823) (4 340) Operating profit 9 662 10 393 Share of net income from associated companies 20 4 043 2 114 Gain on disposal of associated companies 20-1 662 Financial income and expenses Financial income 13 605 812 Financial expenses 13 (2 812) (2 207) Net currency gains (losses) 13 (156) (277) Net change in fair value of financial instruments at fair value through profit or loss 13 687 27 Net gains (losses and impairment) of financial assets and liabilities 13 (7) 52 Net financial income (expenses) 13 (1 683) (1 593) Profit before taxes 12 022 12 575 Income taxes 14 (1 735) (5 358) Net income 10 286 7 217 Net income attributable to: Non-controlling interests 219 52 Equity holders of Telenor ASA 10 067 7 165 Earnings per share in NOK Basic 15 6.43 4.45 Diluted 15 6.42 4.44
/page 19/ of Comprehensive Income Net income 10 286 7 217 Other comprehensive income (loss) Translation differences on net investments in foreign operations 25 (4 587) (1 196) Income taxes 14 114 (124) Amount reclassified from equity to profit and loss on disposal 25 14 536 Net gain (loss) on hedge of net investments 30 1 335 3 Income taxes 14 (374) (1) Net gain on available-for-sale investments 25 13 9 Amount reclassified from equity to profit and loss on disposal 25 5 (55) Share of other comprehensive income (loss) from associated companies 25 (1 540) (210) Amount reclassified from equity to profit and loss on disposal 25-416 Other comprehensive income (loss), net of taxes (5 020) (622) Total comprehensive income (loss) 5 266 6 595 Total comprehensive income (loss) attributable to: Non-controlling interests 273 (246) Equity holders of Telenor ASA 4 993 6 841
/page 20/ of Financial Position Telenor Group as of 31 December Assets Deferred tax assets 14 4 284 1 275 Goodwill 16,17 17 682 22 145 Intangible assets 18 28 818 21 774 Property, plant and equipment 19 43 596 49 620 Associated companies 20 40 735 33 967 Other non-current assets 23 4 309 3 241 Total non-current assets 139 423 132 022 Prepaid taxes 162 147 Inventories 1 198 992 Trade and other receivables 22 18 209 17 554 Other financial current assets 23 1 567 2 638 Assets classified as held for sale - 86 Cash and cash equivalents 24 8 805 12 899 Total current assets 29 941 34 317 Total assets 169 364 166 339 Equity and liabilities Equity attributable to equity holders of Telenor ASA 25 74 180 83 992 Non-controlling interests 25 3 057 2 910 Total equity 25 77 237 86 902 Liabilities Non-current interest-bearing financial liabilities 29 39 826 23 157 Non-current non-interest-bearing financial liabilities 28 1 275 1 659 Deferred tax liabilities 14 1 639 2 188 Pension obligations 27 2 169 1 933 Other provisions 26 3 286 2 911 Total non-current liabilities 48 195 31 848 Current interest-bearing financial liabilities 29 10 275 10 767 Trade and other payables 28 28 034 30 708 Current tax payables 14 3 696 3 876 Current non-interest-bearing liabilities 28 651 1 251 Provisions and obligations 26 1 277 986 Total current liabilities 43 933 47 589 Total equity and liabilities 169 364 166 339 Fornebu, 21 March 2013 svein Aaser Chairman liselott Kilaas Deputy Chairman Hallvard Bakke Dr. Burckhard Bergmann Frank Dangeard sally Davis Dag J. Opedal Board member Board member Board member Board member Board member Barbara Milian Thoralfsson Bjørn André Anderssen Brit Østby Fredriksen Harald Stavn Jon Fredrik Baksaas Board member Board member Board member Board member president & CEO
/page 21/ of Cash Flows Profit before taxes 12 022 12 575 Income taxes paid (6 041) (5 932) Net (gain) loss from disposals, impairments and change in fair value of financial assets and liabilities (523) (104) Depreciation, amortisation and impairment losses 22 225 19 649 Share of net income and gain on disposal of associated companies (4 043) (3 776) Dividends received from associated companies 354 2 293 Changes in inventories (236) 89 Changes in trade receivables and prepayments from customers (426) (292) Changes in trade payables 132 1 188 Difference between expensed and paid pensions 242 38 Net currency losses not relating to operating activities 110 181 Changes in other operating working capital 185 1 183 Net cash flow from operating activities 24 002 27 093 Proceeds from sale of property, plant and equipment and intangible assets 158 377 Purchases of property, plant and equipment and intangible assets (16 892) (13 261) Proceeds from disposal of subsidiaries and associated companies, net of cash disposed 24 417 136 Purchases of subsidiaries and associated companies, net of cash acquired 24 (7 533) (393) Proceeds from sale of other investments 1 560 1 033 Purchases of other investments (628) (2 343) Net cash flow from investing activities (22 918) (14 451) Proceeds from borrowings 30 415 9 085 Repayments of borrowings (17 176) (8 589) Proceeds from issuance of shares, including from non-controlling interests in subsidiaries - 1 Purchase of treasury shares 25 (4 022) (4 535) Repayment of equity and dividends paid to non-controlling interests in subsidiaries 24, 25 (6 015) (2 624) Dividends paid to equity holders of Telenor ASA 25 (7 925) (6 206) Net cash flow from financing activities (4 723) (12 868) Effects of exchange rate changes on cash and cash equivalents (456) (481) Net change in cash and cash equivalents (4 095) (706) Cash and cash equivalents as of 1 January 12 899 13 606 Cash and cash equivalents as of 31 December 24 8 805 12 899
/page 22/ of Changes in Equity Telenor Group for the years ended 31 December 2011 and 2012 Attributable to equity holders of Telenor ASA NOK in millions Paid-in capital 1) Other reserves 1) Retained earnings Cumulative translation differences 1) Total Noncontrolling interests 1) Total equity Equity as of 1 January 2011 9 859 8 771 75 036 (5 800) 87 867 8 351 96 218 Net income for the period - - 7 165-7 165 52 7 217 Other comprehensive income for the period - 160 - (484) (324) (298) (622) Total comprehensive income for the period - 160 7 165 (484) 6 841 (246) 6 595 Transactions with non-controlling interests - (99) - - (99) (163) (262) Equity adjustments in associated companies - 63 - - 63-63 Dividends - - (6 206) - (6 206) (5 033) (11 239) Share buy back (294) (4 241) - - (4 535) - ( 4 535) Share-based payment, exercise of share options and distribution of shares 9 52 - - 61-61 Equity as of 31 December 2011 9 574 4 707 75 995 (6 284) 83 992 2 910 86 902 Net income for the period - - 10 067-10 067 219 10 286 Other comprehensive income for the period - (1 522) - (3 551) (5 074) 54 (5 020) Total comprehensive income for the period - (1 522) 10 067 (3 551) 4 993 273 5 266 Transactions with non-controlling interests - (3 267) - - (3 267) 3 553 286 Equity adjustments in associated companies - 319 - - 319-319 Dividends - - (7 925) - (7 925) (3 678) (11 603) Share buy back (249) (3 773) - - (4 022) - (4 022) Share-based payment, exercise of share options and distribution of shares 9 80 - - 89-89 Equity as of 31 December 2012 9 334 (3 456) 78 137 (9 835) 74 180 3 057 77 237 1) See note 25