Equity-to-Asset Ratio

Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of
the total asset. It indicates the leverage of the company, and the amount of debt the company
uses in its operation.
Equity to Asset ratio is calculated by dividing shareholder's tangible equity divided by its total
asset.
Telenor ASA's Equity to Asset Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Equity to Asset (A: Dec. 2016) = Total Equity / Total Assets

= 5942.62821636 / 24097.9011178

= 0.25
Telenor ASA's Equity to Asset Ratio for the quarter that ended in Sep. 2017 is calculated as

Equity to Asset (Q: Sep. 2017) = Total Equity / Total Assets

= 7093.33775612 / 25831.440892

= 0.27
* All numbers are in millions
 Vertical Analysis of Income Statement
Costs of materials and traffic charges
2016 2017
23.1% 28.69%
Increased by 5.59 % due to;
Increment in the operating lease expenses relating to the lease of dedicated network and satellite
capacity

Other operating expenses

2016 2017
30.08% 28.51%
Decreased by 1.57 % due to;
Decrease in the advertisement expenses
Decrease in marketing and sales commission
Decrease in consultancy fee
Other expenses (income)

2016 2017
0.49% 0.85 %
Increased by 0.36 % due to;
Expenses for workforce reductions
 Restructuring of operations in Uninor, and
 workforce Reductions mainly in Telenor Norway, TelenorSweden, Telenor Denmark
and Telenor ASA
Decrease in the Gains on disposals of fixed assets and operations
Increased Losses on disposals of fixed assets and operations

Impairment loses
2016 2017
 4.40% 7.69 %
increased by 3.29 % because;
consequence of the Indian Supreme Court ruling cancelling all 2Glicenses of Uniron.
In Denmark due to fierce competitive environment in the Danishmarket.

Operating Profit
2016 2017
10.54% 9.49%
Decreased by 1.05 % because it was;
Negatively affected by an impairment of goodwill in Denmark and goodwill plus licenses in
Uninor

Share of income from associated Companies

2016 2017
2.14% 3.97%
Increased by 1.83 % due to;
The gain of NOK 1.6 billion related to share of interest in VimpelCom

Financial Income
2016 2017
0.82% 0.59%
Decreased by 0.23 % due to;
Decrease in the interest rates on cash and cash equivalents.

Financial Expense
2016 2017
2.24% 2.76%
Increased by 0.52 % due to;
A higher level of interest-bearing debt
More funding activities
license payments

Net Currency Losses

2016 2017
0.28% 0.15%
Decreased by 0.13 %;
Currency loss of NOK 350 million from the initial investment in Uninor that was previously
recorded in equity

Net Financial Expense (income)

2016 2017
1.61% 1.65%
Increased by 0.04 % due to;
Effects of higher debt offset
Installment paid for licensing of 3G in Thailand

Profit before tax

2016 2017
12.76% 11.81%
Decreased by 0.95 % as;
Expenses are increased
Less financial incomes

Income tax
2016 2017
5.43% 1.70 %
Decreased by 3.73 % due to;
Associated companies is recognized on an after tax basis
Tax losses in Uninor will not be transferred.
Recognition of deferred tax asset of NOK 1.0 billion based on unused tax losses in Telenor
Pakistan.

Net Income
 2016 2017
7.32% 10.11 %
Increased by 2.79 % due to;
The main reason for increase in the net income is less income tax.