Press Release January 14, 2016

TeliaSonera to report Region Eurasia as discontinued operations in Year-end
Report 2015 - results to be impacted by impairment charges
As previously announced, TeliaSonera has initiated a process to reduce its
presence and over time fully leave Region Eurasia. This process is progressing
and therefore Region Eurasia will be reported as held for sale and discontinued
operations in the Year-end Report 2015. As a result, operating income in the
fourth quarter 2015 will be impacted by a non-cash impairment charge of SEK 5.3
billion related to the operations in Uzbekistan. Further, a non-cash impairment
charge of SEK 1.9 billion related to the operations in Denmark will also be
recorded.
“We are well on track shaping the new TeliaSonera and the process to reduce our
presence in Eurasia continues. An important step was taken in December when we
announced the divestment of Ncell in Nepal. As a consequence of this progress
and current status in the overall divestment process, Region Eurasia will be
reported as discontinued operations. When doing this we are obliged to change
valuation method for these operations. This has resulted in an impairment charge
relating to our operations in Uzbekistan”, says Johan Dennelind, President and
CEO.
The valuation method of the operations in Region Eurasia is changed according to
IFRS. The new method is based on market values reflecting estimated sales
proceeds (fair value less cost to sell), while in prior periods valuation has
been based on discounted cash flows from continuing operations (value in use).
This results in a non-cash impairment charge of SEK 5.3 billion related to
goodwill and other fixed assets in Uzbekistan. The valuation is based on an
overall assessment of the input from the sales process and the risk in the
country.
As a result of an impairment review of the group’s operations, TeliaSonera will
also record a SEK 1.9 billion non-cash impairment charge related to goodwill in
Denmark. The write-down is a result of updated earnings projections following
the previously announced decision to withdraw from the proposed joint venture
with Telenor in Denmark.
Region Eurasia will be reported as discontinued operations on separate lines
both in the consolidated income statement and consolidated statements of
financial position for the fourth quarter and full year 2015. Historical pro
forma figures for the period first quarter 2014 to third quarter 2015 will be
available at www.teliasonera.com/ir on January 19, 2016.
TeliaSonera’s Year-end Report 2015 will be released on Friday, January 29, 2016,
at around 7:00 AM (CET).
TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The
information was submitted for publication at 08:00 a.m. CET on Jan 14, 2016.
For more information, please contact the TeliaSonera press office +46 771 77 58
30, press@teliasonera.com, visit our
Newsroom (http://www.teliasonera.com/en/newsroom/) or follow us on Twitter
@TeliaSoneraAB (https://twitter.com/TeliaSoneraAB).
Forward-Looking Statements
Statements made in the press release relating to future status or circumstances,
including future performance and other trend projections are forward-looking
statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. There can be no assurance that actual results will not
differ materially from those expressed or implied by these forward-looking
statements due to many factors, many of which are outside the control of
TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic
and Baltic countries, the emerging markets of Eurasia, including Russia and
Turkey, and in Spain. TeliaSonera helps people and companies communicate in an
easy, efficient and environmentally friendly way. Our ambition is to be number
one or two in all our markets, providing the best customer experience, high
quality networks and cost efficient operations. TeliaSonera is also a leading
wholesale provider who owns and operates one of the world’s most extensive fiber
backbones. In 2014, net sales amounted to SEK 101.1 billion, EBITDA to SEK 35.2
billion and earnings per share to SEK 3.35. The TeliaSonera share is listed on
Nasdaq Stockholm and Nasdaq Helsinki. Read more at www.teliasonera.com.