Annual Report 2010

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Annual Report 2010 Telenor Annual Report 2010 Telenor built around people Annual Report 2010 Growth comes from truly understanding the needs of people, to drive relevant change www.telenor.com /PAGE 113/ TELENOR ÅrsrappOrt 2010 Telenor Group’s mobile operations Uninor – India Contents Telenor – Pakistan Telenor holds a 67.25 per cent ownership Dear Shareholder /01/ Telenor’s wholly owned subsidiary, interest in Indian greenfield mobile operator Telenor Pakistan, is the second largest Uninor. The company launched its services Report from the Board of Directors 2010 /02/ mobile operator in Pakistan. in December 2009. Financial Statements Telenor – Norway Grameenphone Telenor Group Telenor’s wholly owned Norwegian – Bangladesh mobile operation is the country’s Telenor holds a 55.8 per cent Consolidated Income Statement /16/ leading telecommunications operator. ownership interest in Grameenphone, the largest mobile operator in Bangladesh. Consolidated Statement of Comprehensive Income /17/ Grameenphone is listed on the Dhaka Consolidated Statement of Financial Position /18/ Stock Exchange (DSE) Ltd. and the Telenor – Sweden Chittagong Stock Exchange (CSE) Ltd. ConsolidatedTelenor’s whollyStatement owned subsidiary, of Cash Flows /19/ Telenor Sweden, is Swedens third Consolidatedlargest mobile Statement operator. of Changes in Equity /20/ Notes to the Consolidated Financial Statements /21/ Telenor ASA Income Statement /90/ Statement of Comprehensive Income /91/ dtac – Thailand Telenor’s economic exposure Statement of Financial Position /92/ in Thai mobile operator dtac Telenor – Denmark is 65.5 per cent. dtac is the Statement of Cash Flows /93/ second largest mobile operator Telenor’s wholly owned subsidiary, in Thailand and is listed on the StatementTelenor of Denmark, Changes is Denmark’s in Shareholders’ Equity /94/ Stock Exchange of Thailand Notes tosecond the largestFinancial mobile operator. Statements /95/ and the Singapore Exchange. Responsibility Statement /108/ Auditor’s Report for 2010 /109/ Statement from the Corporate Assembly of Telenor ASA /111/ Financial Calendar 2011 /111/ DiGi – Malaysia Telenor – Hungary Telenor holds a 49 per cent ownership Telenor’s wholly owned subsidiary, interest in DiGi, the third largest Telenor Hungary, is the country’s mobile operator in Malaysia. second largest mobile operator. DiGi is listed on Bursa Malaysia. Telenor – Serbia Telenor’s wholly owned subsidiary, Telenor Serbia, is the country’s second largest mobile operator. Telenor – Montenegro VimpelCom Ltd. Telenor Group holds an economic stake of Telenor’s wholly owned subsidiary, 39.6 percent in VimpelCom Ltd., operating in Telenor Montenegro, is the country’s 10 markets: Russia, Ukraine, Kazakhstan, Georgia, largest mobile operator. Uzbekistan, Tajikistan, Armenia, Kyrgyzstan, Cambodia and Vietnam. VimpelCom Ltd. has more than 90 million subscribers, and is listed on New York Stock Exchange. /PAGE 01/ TELENOR ANNUAL REPORT 2010 Dear shareholder, In December 2010, we marked the 10 year anniversary for Telenor as a listed company on the Oslo Stock Exchange. During this period, our shareholders have experienced an average annual return on investment of around 10 per cent, outperforming the European telecom industry index. In 2010, we delivered solid results Our industry is growing and changing. Moving into 2011, the Telenor Group and strong growth. We confirmed The increasing number of people with will strive to secure our market posi- our position as one of Europe’s fastest connectivity, the expanding capabili- tions, continue implementing neces- growing telecoms operators by adding ties and role of communications tech- sary efficiency measures and adapt to 23 million mobile subscriptions during nologies in society and the increasing the new realities within our industry. the year, mainly in Asia. We also demand for network capacity is We will continue to provide innovative started to see positive results from transforming our industry. The devel- and attractive solutions for our cus- our strong focus on the go-to-market opments also allow the telecoms sec- tomers through actively exploring new model in India, which represents a tor to transform other industries, areas for value creation by working growth opportunity for Telenor Group unlock new opportunities and improve with partners and customers. in the coming years. We are closely the lives of the previously uncon- monitoring the regulatory develop- nected in all parts of the world. With more than 30 000 competent ments in India as we enter 2011. employees worldwide dedicated to the Responsibility is part of how we do same vision and values, I am confident Telenor has been a strong contributor business. It is rewarding to experience that Telenor Group will continue to to VimpelCom for many years, and how our ideas are realised in services secure growth and value for our share- VimpelCom has been a profitable that have a positive impact on people holders through 2011. investment for Telenor Group. and societies, and how we enable Although we consider VimpelCom’s underserved groups to have the full acquisition of Wind Telecom as value benefits of modern telecommunica- destructive we regard VimpelCom as tions. Telenor strives to ensure a safe an attractive asset with strong growth experience for our customers. We have potential going forward. As we enter continued our focus on responsible 2011 we will continue to protect our and sustainable business by system- rights as established in the share- atically addressing the health, safety, holders agreement in order to avoid security and environmental conditions dilution, and continue to work for in our companies and towards our sup- growth and operational improvements pliers. in VimpelCom. /PAGE 02/ TELENOR ANNUAL REPORT 2010 report from the board of directors 2010 Report from the Board of Directors 2010 Behind from left: Kjersti Kleven / Board member Bjørn André Anderssen / Board member, employee representative Barbara Milian Thoralfsson / Board member Harald Stavn / Board member, employee representative Harald Norvik / Chairman Olav Volldal / Board member John Giverholt / Vice-Chairman Brit Østby Fredriksen / Board member, employee representative In front from left: Dr. Burckhard Bergmann / Board member Liselott Kilaas / Board member Sanjiv Ahuja / Board member /PAGE 03/ TELENOR ANNUAL REPORT 2010 report from the board of directors 2010 In 2010, the Telenor Group had solid financial and operational results, and returned an all-time high total shareholder remuneration of NOK 9 billion. It was a year of recovery from the financial crisis in most of Telenor’s markets, and especially the Asia region contributed to Telenor Group’s growth. The results are won in a climate with increasing price competition and rapid technological changes that challenge the core business and established business models. Telenor’s strategy is to focus on operational excellence at all levels, continuing modernisation of networks and systems, and market based innovation. Main events of 2010 CEE embraces the mobile Web markets mobile operator. On 4 October The Nordics invest in mobile Telenor’s operations in Central and 2010, VimpelCom Ltd. announced its network modernisation Eastern Europe reported a marginal plans to merge with Wind Telecom. Demand for mobile data in the Nordic revenue decline in 2010. However, For updated information go to the region continued to increase through- Telenor’s operations in Serbia and section titled: “Events after the out 2010. The introduction of devices Montenegro showed growth in the reporting period”. such as smartphones and tablets is second half of 2010, while Telenor just the beginning of the new demand in Hungary still experiences effects 23 million new subscriptions in Asia for alternative device types that will of the financial crises. The Telenor Group’s Asian operations require further network capacity. All performed strongly in 2010, with a of Telenor’s Nordic operations are Telenor Serbia was the first in the total of 23 million new subscriptions, currently investing in modernisation Telenor Group to launch a new mobile representing a growth of 31%. This of their mobile networks to be well Internet offering for nearly any mobile growth was largely driven by Uninor positioned for future increase in data phone. The new offer brings mobile in India and Grameenphone in traffic. In November 2010, Telenor Web content to phones running on Bangladesh. Sweden became the first in the Group the company’s 2G and 3G network. to launch its 4G (LTE) network. With Telenor Pakistan reported a 16% 4G services currently available in Telenor Montenegro completed its revenue increase despite the effects Sweden’s largest cities, Telenor network modernisation in 2010, and of the flooding in 2010. Employees Sweden plans to make 100 locations Telenor Serbia and Telenor Hungary in Telenor Pakistan showed strength 4G-ready by 2013. Telenor will launch are currently undertaking similar in the face of adversity, joining forces 4G services in Norway and Denmark upgrades. These investments will to maintain net work stability under in 2012. High quality services will con- provide faster and better data difficult conditions and volunteering tinue to be key to improving efficiency services through mobile broadband. to aid flood v ictims. and enhancing customer experience. VimpelCom Ltd. The new VimpelCom Ltd. was estab- lished and listed on the New York Stock Exchange (NYSE) on 21 April 2010, combining OJSC VimpelCom and Kyivstar to create a leading emerging
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