Telenor's annual reporting 2006 Annual review 2006



Consolidated cash flow statement

Telenor Group 1 January – 31 December
  2006  
NOK in millions Note Unaudited
Group
Unaudited
Kyivstar
Group excl.
Kyivstar
2005 2004
Proceeds from sale of goods and services   92 956 11 340 81 616 69 853 61 107
Payments to suppliers of goods and services and of other operating expenses   (48 610) (3 872) (44 738) (35 461) (30 639)
Payments to employees, pensions, social security tax and tax deductions   (11 864) (541) (11 323) (9 635) (9 280)
Proceeds from interest income   868 136 732 347 323
Proceeds from other financial income   226 - 226 162 590
Payments of interest expenses   (2 524) (219) (2 305) (1 563) (1 361)
Payments of other financial expenses   (131) (9) (122) (49) (67)
Other proceeds and payments related to operating activities   (91) 31 (122) 4 (22)
Payment of income taxes and public duties   (189) (1 115) 926 (1 318) (1 660)
Net cash flow from operating activities 1)   30 641 5 751 24 890 22 340 18 991
Proceeds from sale of property, plant and equipment (PPE) and intangible assets   134 - 134 539 263
Purchases of PPE and intangible assets   (19 224) (3 631) (15 593) (14 213) (11 613)
Proceeds from disposal of subsidiaries and associated companies, net of cash disposed of 29 1037 - 1 037 740 849
Purchases of subsidiaries and associated companies, net of cash acquired 29 (21 964) - (21 964) (8 128) (6 281)
Proceeds from sale of other investments   3 810 - 3 810 1 539 3 960
Payments for other investments   (288) - (288) (475) (209)
Net cash flow from investment activities   (36 495) (3 631) (32 864) (19 998) (13 031)
Proceeds from borrowings   48 643 - 48 643 11 775 2 541
Repayments of borrowings   (36 065) - (36 065) (7 600) (6 852)
Proceeds from issuance of shares, inclusive from minority interests   110 - 110 74 47
Shares buy back   (953) - (953) (2 267) (2 020)
Repayment of equity and dividends paid to minorities in subsidiaries   (976) - (976) (219) (207)
Dividends paid to shareholders of Telenor ASA   (3 389) - (3 389) (2 595) (1 764)
Net cash flow from financing activities   7 370 - 7 370 (832) (8 255)
Effects of exchange rate changes on cash and cash equivalents   (179) (145) (34) 215 (268)
Reclassified cash and cash equivalents to Investment in Kyivstar   (3 221) - - - -
Net change in cash and cash equivalents   (1 884) 1 975 (638) 1 725 (2 563)
Cash and cash equivalents at 1 January   6 806 1 246 5 560 5 081 7 644
Cash and cash equivalents at 31 December   4 922 - 4 922 6 806 5 081
Of which cash and cash equivalents in discontinued operations at 31 December   294 - 294 - -
Cash and cash equivalents in continuing operations at 31 December 29 4 628 - 4 628 6 806 5 081
1)Reconciliation
Profit before taxes including profit from discontinued operations   21 764 4 706 17 058 12 591 9 874
Income taxes paid   (357) (1 148) 791 (1 369) (1 516)
Net (gain) loss including write-downs and change in fair value of financial items   (3 277) 45 (3 322) (929) (3 161)
Depreciation, amortization and write-downs   15 241 1 616 13 625 12 131 14 168
Associated companies   (2 362) - (2 362) (1 233) (986)
Changes in inventories   (363) 38 (401) (37) (79)
Changes in trade accounts receivable and prepayments from customers   (519) 391 (910) 1 659 95
Changes in trade accounts payable and prepaid expenses   203 (70) 273 407 237
Difference between expensed and paid pensions   (166) - (166) 211 267
Currency (gains) losses not relating to operating activities   219 (3) 222 (18) 57
Change in other accruals   258 176 82 (1 073) 35
Net cash flow from operating activities   30 641 5 751 24 890 22 340 18 991

The statement includes cash flows from discontinued operations prior to their disposal. Value added tax is regarded as collection of tax on behalf of the authorities and reported net. Received dividends are included in line item "Proceeds from other financial income".

The cash and cash equivalents in Kyivstar at the time of deconsolidation were reclassified to the balance sheet line item Investment in Kyivstar. Hence the cash and cash equivalents of Kyivstar are not included in the closing balance of cash and cash equivalents in any of the three 2006 columns. In the cash flow statement this reclassification is reflected in the column “Unaudited Group”. As a consequence the amounts reported as net change in cash and cash equivalents in the two columns “Unaudited Kyivstar” and “Group excl. Kyivstar” do not add up to the corresponding amount reported in the column "Unaudited Group".