The reported revenue growth was lower than the

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Unformatted text preview: continued strong growth in our Asian operations. The reported revenue growth was lower than the organic revenue growth, primarily due to the appreciation of Norwegian K roner towards most of the business units reporting currencies. EBITDA 1) before other income and expenses increased by NOK 1.3 billion to NOK 30.5 billion, while the corresponding EBITDA margin of 31% was slightly improved compared to 2010. We saw margin improvements in most operations, in particular in Pakistan, Malaysia and Bangladesh, as well as reduction in EBITDA loss in India, were offset by lower EBITDA from Norway. S ee definition and reconciliation of EBITDA in note 5 to the consolidated financial statements Operating profit was NOK 10.4 billion compared to NOK 12.5 billion in 2010. Operating profit was negatively affected by an impairment of goodwill and licences in Uninor of NOK 4.1 billion. Profit before taxes was NOK 12.6 billion compared to NOK 20.2 billion in 2010. Share of net income and gains on disposal of associated companies in 2011 includes a gain of NOK 1.6 billion. This is the result of the accounting treatment of the combination of VimpelCom and Wind Telecom, in which Telenor’s economic interests in VimpelCom were diluted by 20% to 31.67% with effect as of 15 April 2011. Net financial expenses decreased to NOK -1.6 billion from NOK -2.0 billion in 2010, mainly due to higher net currency losses in 2010 and change in fair value of financial instruments related to derivatives used for economic hedges that did not fulfil the requirements for hedge accounting. Income taxes in 2011 were NOK 5.4 billion, up from NOK 5.0 billion in 2010. Telenor’s net income in 2011 was NOK 7.2 billion, NOK 4.45 per share. The corresponding figures for 2010 was a net income of NOK 14.8 billion, NOK 8.69 per share. Total investments in 2011 amounted to NOK 12.3 billion, of which NOK 11.9 billion were capital expenditure (capex) and NOK 0.4 billion were investments in businesses. The total capex remained unchanged compared to 2010. When excluding investments in new spectrum and licences in 2011 of in total NOK 0.5 billion, capex increased by NOK 0.1 billion. Capital expenditure as a proportion of revenues, excluding licences and spectrum, decreased from 12.0% in 2010 to 11.6% in 2011. /page 05/ telenor annual report 2011 report from the board of directors 2011 In 2011, Telenor delivered a solid operating cash flow (defined as EBITDA less capex) of NOK 19 billion, an increase of NOK 1.2 billion compared to 2010. This is mainly due to higher EBITDA as explained above, while capex remained stable. Net cash inflow from operating activities during 2011 was NOK 27.1 billion, which is an increase of NOK 0.6 billion compared to 2010. The increase is mainly explained by higher EBITDA and increased dividend from VimpelCom Ltd., partly offset by higher tax payments during 2011. Net cash outflow to investing activities during 2011 was NOK 14.5 billion which is a decrease of NOK 1.1 billion compared to 2010. This is mainly explained by the NOK 1.0 billion purchase of C More Group AB in 2010. Net cash outflow to financing activities during 2011 was NOK 12.9 billion, an increase of NOK 3.6 billion compared to 2010. The increase mainly relates to higher dividend paid out and higher share buy-backs this year to shareholders of Telenor ASA of NOK 4.4 billion combined. Cash and cash equivalents decreased during 2011 by NOK 0.7 billion to NOK 12.9 billion as of 31 December 2011. At the end of 2011, total assets in the consolidated statement of financial position amounted to NOK 166.3 billion with an equity ratio (including non-controlling interests) of 52.2% compared to NOK 172.7 billion and 55.7%, respectively at the end of 2010. Total current liabilities at the end of 2011 were NOK 47.6 billion compared to NOK 43.0 billion at the end of 2010. Net interest-bearing liabilities decreased from NOK 19.3 billion at the end of 2010 to NOK 18.2 billion by the end of 2011. Telenor completed the share buyback program for 2011 returning NOK 4.4 billion to the shareholders. Together with the dividends of NOK 6.2 billion paid out in June 2011, this resulted in an all-timehigh shareholder remuneration. In the Board’s view, Telenor Group holds a satisfactory financial position. For 2011, the return on capital employed after tax and including associated companies (ROCE) was 7% compared to 10% in 2010. The reduction was mainly due to the impairment loss in Uninor. Excluding Uninor, ROCE for 2011 was 16%, an increase from 2010 of 1 percentage point. Telenor’s annual report for 2010 included an outlook for 2011. This outlook was adjusted during 2011, partially due to the fact that the Asian operations improved their performance. For 2011, Telenor had an organic revenue growth of 7%, in line with the outlook from the third quarter of 2011. EBITDA margin before other items was 31%, which is slightly below the expected range of above 31%. Capex (excluding licences and spectrum) as a proportion of revenues...
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This document was uploaded on 03/21/2014.

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