Dear shareholder
Telenor Group has strengthened its position as a leading global telecoms operator through 2009. We delivered solid results and strong operating cash flow in spite of challenging macro economic conditions. With 10 million net subscriber additions during the year the Telenor Group reached 174 million mobile subscribers worldwide. The announcement of our agreement with Altimo in October to establish VimpelCom Ltd, the listing of Grameenphone in November and the launch of operations in India in December are key milestones for the Telenor Group this year.
The main focus within the Telenor Group this year has been to secure market positions while scaling our activities to a challenging business environment. The Telenor Group continued its industrial strategy of capturing growth opportunities combined with measures for cost efficiency and control of capital expenditure.
We had a strong operating cash flow in 2009 with the Nordic region as the main contributor. In spite of weak macro economic conditions, our operations in Central and Eastern Europe have delivered solid results throughout the year. The Asian operations have shown substantial improvements where subscriber growth picked up in all our operations.
Telenor’s performance in Norway was strong in 2009, particularly within the mobile area where the demand for mobile broadband was one of the main revenue drivers. The new vendor agreements for mobile infrastructure in the Nordic region will secure enhanced customer experience and profitability on mobile broadband in the years to come.
The process of combining Kyivstar and OJSC VimpelCom into a leading emerging markets mobile operator, VimpelCom Ltd, is on track as we enter 2010. We expect to finalise the transaction around mid 2010. The successful launch of operations in India in December was a significant milestone for the Group, marking the completion of the first phase of the Uninor launch activities. Brand awareness and 1 million subscribers within the first weeks of operations provide a good basis for the next launch phase in the fastest growing telecoms market in the world. One of our main priorities in 2010 will be to focus Uninor’s position and development.
Telenor Group continues to be ranked one of the top companies on the Dow Jones Sustainability Indexes in the telecoms sector. We have focused on responsible and sustainable business by systematically addressing the health, safety, security and environmental conditions in our companies and towards our suppliers. The climate challenge has been high on the agenda also in 2009 with the goal of reducing the CO2 emission intensity of Telenor Group’s global operations by 40% in the period from 2008 to 2017. In addition, we aim to develop and deliver solutions enabling our customers to reduce their CO2 emissions and energy costs.
Moving into 2010, the Telenor Group will strive to secure our market positions while capturing organic growth opportunities. We will continue to implement necessary efficiency measures and provide innovative and attractive solutions to our customers. With more than 40 000 employees worldwide sharing the same visions and values, I am confident that we will continue to strengthen our position through 2010.