Note 03: Key Figures Segment

The segment information for 2004 and 2005 are reported in accordance with Telenor’s accounting principles except for the MVNO agreement discussed below and was consistent with the reporting to the chief operating decision-makers in these periods, and was used by the chief operating decision-makers for assessing performance and allocating resources.

The Group’s primary format for reporting segment information is business segments. The primary products and services are mobile communication, fixed line communication (“Fixed”) and TV-based activities (“Broadcast”). In addition the Group reports Other operations as a separate segment.

The Group's mobile communication business includes voice, data, Internet, content services, customer equipment and electronic commerce. Due to the size of the different operations, the Group’s mobile operations in Norway, Denmark, Ukraine, Hungary, Malaysia and Bangladesh are shown as separate segments. At the end of 2005 the Group increased its economic state in the mobile operation in Thailand. In January 2006, the Group increased its mobile operations in Sweden by the purchase of an existing mobile operation. The Group also has mobile operations in Pakistan and Montenegro. In addition the Group has ownership interests in mobile operations in associated companies, especially Vimpelcom in Russia.

Fixed comprises the Group's fixed network operations in Norway, Sweden and Denmark, which deliver services including analog PSTN, digital ISDN, Broadbandtelephony, xDSL, Internet and leased lines, as well as communication solutions. During 2005, the Group increased its operations in Sweden and Denmark through purchase of existing businesses, primarily within Broadband operations. At the beginning of 2006, the Group expanded its operations in Sweden through purchase of Glocalnet AB. At the end of 2005 the Group entered into an agreement to dispose the operations in the Czech Republic and Slovakia.

Broadcast comprises the Group’s TV-based activities within the Nordic region. This includes satellite dish, cable TV-networks and satellite master antenna TV-networks systems. Broadcast operate the national terrestrial broadcast network in Norway and provide satellite broadcasting services in the Nordic region, utilizing three geo-stationary satellites.

Other operations consist of several companies and activities that separately are not significant enough to be reported as separate segments. The main companies are EDB Business Partner ASA (51.8%-owned), Satellite Services, Venture and Corporate functions and Group activities. EDB Business Partner ASA is an Oslo Stock Exchange listed IT group, which delivers solutions and operating services. Satellite Services offers satellite-based communications networks and services. The main activity in Venture is Teleservice AS/Opplysningen AS, which is responsible for the Group’s Directory Enquiries products in Norway. Corporate functions and Group activities comprise activities such as real estate, research and development, strategic Group projects, Group treasury, international services, the internal insurance company and central staff and support functions.

Deliveries of network-based regulated services within the Group are based on cost oriented prices based on negotiations between the units. For contract-based services, product development etc., prices are negotiated between the parties based on market prices. All other deliveries between the segments are to be based on market prices.

Gains and losses from internal transfer of businesses, group contribution and dividends are not included in the profit and loss statements for the segments. Segment revenue and expense includes transactions eliminated on consolidation, including fixed payments under the Mobile Virtual Network Operator (MVNO) agreements with the same counterparty but entered into by different segments, Telenor Mobile Norway and Telenor Mobile Sweden (included in Other mobile operations). For segment reporting, the fixed prepayments were recognized in the balance sheet and amortized to revenue and expense, respectively, based upon the actual to expected usage. During 2004 and 2005, impairment losses were recorded on the prepayments (onerous contracts) in Sweden due to revised expectations of the usage of capacity of the MVNO agreement. For the consolidation, the fixed prepayments were eliminated and related amortization and loss provisions were reversed. Telenor Mobil Norway segment revenues of NOK 210 million in 2005 and NOK 110 million in 2004 were eliminated to reach consolidated revenues. Other mobile operations segment expenses (including onerous contracts) of NOK 293 million and NOK 688 million in 2005 and 2004, respectively, were also eliminated on consolidation.The large amounts for assets and liabilities in Corporate functions and Group activities were due to Group internal receivables and payables. Balance sheet eliminations are primarily Group internal receivables and payables.

Profit and loss 2005
NOK in millions Revenues External
revenues		 EBITDA 1) Depreciation,
amortization
and writedowns		 Operating
profit
(loss) 2)		 Associated
companies		 Net
financial
items

Profit
(loss)
before taxes
Telenor Mobil – Norway 12 243 11 072 4 471 905 3 566 32 65 3 663
Sonofon – Denmark 5 191 5 059 1 176 1 285 (109) 1 (175) (283)
Kyivstar – Ukraine 7 272 7 266 4 050 1 224 2 826 - (144) 2 682
Pannon GSM – Hungary 6 061 6 051 2 185 1 178 1 007 - 107 1 114
DiGi.Com – Malaysia 4 932 4 928 2 142 1 043 1 099 - (24) 1 075
GrameenPhone – Bangladesh 2 970 2 969 1 559 439 1 120 - (109) 1 011
Other mobile operations 2 219 2 076 (343) 611 (954) 1 355 (68) 333
Fixed 19 313 17 140 5 885 3 823 2 062 (142) (517) 1 403
Broadcast 5 649 5 518 1 516 501 1 015 73 190 1 278
Other operations 9 967 7 060 1 091 1 043 48 (87) 123 84
Eliminations (6 890) (212) 104 79 25 1 205 231
Total 68 927 68 927 23 836 12 131 11 705 1 233 (347) 12 591
1) See table below for definition and reconciliation of EBITDA.
2) The segment result is the operating profit (loss)

Definition and reconciliation of EBITDA
NOK in millions 2005 2004
Profit after taxes 9 134 7 413
Profit after taxes from discontinued operations (4) -
Profit after taxes from continuing operations 9 138 7 413
Taxes (3 453) (2 461)
Profit before taxes 12 591 9 874
Net financial items (347) 1 521
Associated companies 1 233 986
Operating profit 11 705 7 367
Depreciation and amortization 11 544 10 637
Write-downs 587 3 531
EBITDA 23 836 21 535

Balance sheet items and investments as of 31 December 2005
NOK in millions Other non-
current assets		 Associated
companies		 Current
assets		 Total
assets		 Non-current
liabilities
incl. provisions		 Current
liabilities		 Investments
Telenor Mobil – Norway 3 611 38 4 618 8 267 1 036 3 436 1 218
Sonofon – Denmark 7 688 5 1 090 8 783 5 585 856 1 063
Kyivstar – Ukraine 8 459 - 2 313 10 772 3 578 1 728 3 654
Pannon GSM – Hungary 8 672 - 2 951 11 623 164 1 184 763
DiGi.Com – Malaysia 5 758 - 2 519 8 277 1 253 2 334 1 170
GrameenPhone – Bangladesh 4 277 - 698 4 975 1 520 1 828 2 596
Other mobile operations 17 821 5 250 3 361 26 432 5 341 8 885 14 334
Fixed 16 961 1 374 9 100 27 435 15 770 5 777 9 525
Broadcast 7 061 625 5 247 12 933 8 849 2 184 453
Other operations 40 723 (1) 3 664 44 386 18 017 20 920 1 014
Eliminations (29 809) 133 (9 812) (39 488) (27 357) (12 026) (67)
Total 91 222 7 424 25 749 124 395 33 756 37 106 35 723

Profit and loss 2004
NOK in millions Revenues External
revenues		 EBITDA 1) Depreciation,
amortization
and writedowns		 Operating
profit
(loss) 2)		 Associated
companies
and joint
ventures		 Net
financial
items		 Profit
(loss)
before taxes
Telenor Mobil – Norway 11 730 10 504 4 305 1 077 3 228 10 64 3 302
Sonofon – Denmark 4 404 4 351 681 4 480 (3 799) - (164) (3 963)
Kyivstar – Ukraine 4 219 4 217 2 581 555 2 026 - (159) 1 867
Pannon GSM – Hungary 5 907 5 901 2 093 1 316 777 - 50 827
DiGi.Com – Malaysia 3 946 3 943 1 732 901 831 - (110) 721
GrameenPhone – Bangladesh 2 186 2 186 1 313 218 1 095 - 1 1 096
Other mobile operations 423 335 (712) 191 (903) 789 (61) (175)
Fixed 19 256 17 433 6 338 3 613 2 725 69 (442) 2 352
Broadcast 5 346 5 211 1 498 748 750 46 (475) 321
Other operations 9 540 6 611 1 114 1 018 96 70 4 084 4 250
Eliminations (6 366) (101) 592 51 541 2 (1 267) (724)
Total 60 591 60 591 21 535 14 168 7 367 986 1 521 9 874
1) See table above for definition and reconciliation of EBITDA.
2) The segment result is the operating profit (loss).

Balance sheet items and investments as of 31 December 2004
NOK in millions Other non-
current
assets		 Associated
companies		 Current
assets		 Total
assets		 Non-current
liabilities
incl. provisions		 Current
liabilities		 Investments
Telenor Mobil – Norway 3 748 6 3 997 7 751 439 6 165 1 029
Sonofon – Denmark 8 184 1 1 099 9 284 4 529 783 13 237
Kyivstar – Ukraine 4 936 - 1 109 6 045 1 636 1 465 2 612
Pannon GSM – Hungary 9 669 - 2 041 11 710 338 1 364 1 166
DiGi.Com – Malaysia 4 998 - 1 337 6 335 1 079 1 809 920
GrameenPhone – Bangladesh 2 074 - 620 2 694 511 853 1 318
Other mobile operations 2 546 4 469 301 7 316 1 335 687 2 853
Fixed 12 284 1 411 9 639 23 334 10 412 8 684 1 832
Broadcast 6 289 534 4 386 11 209 8 428 2 895 862
Other operations 33 441 70 9 967 43 478 17 974 13 676 1 829
Eliminations (21 590) 111 (16 281) (37 760) (20 026) (17 708) (168)
Total 66 579 6 602 18 215 91 396 26 655 20 673 27 490

Geographic distribution of revenues based on customer location
NOK in millions 2005 2004
Norway 31 574 31 157
Other Nordic 10 906 9 469
Western Europe 1 268 1 194
Central Europe 7 170 6 714
The Ukraine 6 975 4 236
Other Eastern Europe 307 189
Asia 9 531 6 343
Other countries 1 196 1 289
Total revenues 68 927 60 591

Geographic distribution of revenues based on company location
NOK in millions 2005 2004
Norway 33 556 33 397
Other Nordic 10 482 8 954
Western Europe 640 638
Central Europe 6 823 6 397
The Ukraine 7 266 4 217
Asia 9 339 6 131
Other countries 821 857
Total revenues 68 927 60 591

Assets by geographical location of the company
Property, plant and equipment Total assets Investments
NOK in millions 2005 2004 2005 2004 2005 2004
Norway 19 171 21 178 14 263 22 965 4 241 4 949
Other Nordic 3 612 3 303 20 809 13 780 8 827 13 480
Western Europe 56 45 13 938 13 957 52 17
Central Europe 2 604 2 911 13 469 13 733 837 2 174
The Ukraine 6 580 3 597 10 772 6 045 3 654 2 612
Other Eastern Europe - - 4 214 4 312 - -
Asia 11 662 6 238 46 135 15 735 18 058 4 136
Other countries 273 271 795 869 54 122
Total assets 43 958 37 543 124 395 91 396 35 723 27 490

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