Telenor's annual reporting 2006 Annual review 2006



Cash flow statement

Telenor ASA 1 January – 31 December
NOK in millions 2006 2005 2004
Profit before taxes 3 676 2 942 5 586
Net (gains) losses (1 457) 425 -
Depreciation, amortization and write-downs 96 50 60
Write-down of shares and reversal of previous write-downs 22 61 (2 207)
Currency (gains) losses not relating to operating activities 176 (159) 70
Changes in interest accruals against Group companies (2 716) (2 921) (2 593)
Changes in other accruals (85) (66) 76
Net cash flow from operating activities (288) 332 992
Cash receipts from sale of property, plant and equipment and intangible assets 28 55 -
Purchase of property, plant and equipment and intangible assets (77) (184) (80)
Cash receipts from sale of subsidiaries - 404 -
Purchase of subsidiaries2) (12 279) - -
Cash receipts from sale of other investments 2 023 30 303
Purchase of other investments (27) (191) (882)
Net cash flow from investment activities (10 332) 114 (659)
Proceeds from borrowings 3) 43 612 10 862 2 135
Repayments of borrowings 3) (33 034) (3 964) (1 156)
Net change in Group internal drawing rights 1) 4 283 (2 542) 1 971
Proceeds from issuance of shares 71 49 43
Shares buy back (901) (2 267) (2 020)
Payments of dividend (3 389) (2 595) (1 764)
Net cash flow from financing activities 10 642 (457) (791)
Effect on cash and cash equivalents of changes in foreign exchange rates (22) 11 (75)
Net change in cash and cash equivalents - - (533)
Cash and cash equivalents at 1 January - - 533
Cash and cash equivalents at 31 December - - -

1)Net change in Group internal drawing rights are loans to, and placements from Group companies. These loans and placements have high turnover and are presented net.
2)See note 1 to the consolidated financial statements.
3)The changes from 2005 to 2006 are related to acquisitions and refinancing activities in Telenor’s internal bank (Telenor Finans).