Horizontal Analysis ofIncome Statement

Revenue
There is 3.25%increase
Reasons
large part of the increased revenue is gathered from mobile communication and customers
equipment. Customer equipment includes mainly sale of mobile devices.
The revenue growth was mainly the result of continued growth in our Asian and Norwegian
operations in addition to strong handset sales.

Operating profit
The operating profit of the company decreased BY-7.03
Reasons
Operating profit in 2016 was negatively affected by an impairment of goodwill and licenses in
Uninor of NO K 4.1 billion. Operating profit in 2017 was negatively affected by an impairment
of tangible fixed assets in Uninor of NO K 3.9 billion and NO K 4.0 billion related to goodwill in
Telenor Denmark.

Net financial expense

5.65 %increase in net financial expenses shows bad sign for the company.
Reasons
The debts are being paid Decrease in financial income in 2017 compared with 2016 is mainly
due to decreased interest rates on cash and cash equivalents.

Profit before tax

-4.30%negative percentage of profit before tax
Reasons
less earnings
more expenses

Net income
Net income is increases42.52%as compared to based year
Reasons
the company paid less amount of tax in 2017.Income tax ratio is in negative in 2017 as compared
to 2016 which is in favor of company.

Vertical Analysis Balance Sheet

Non-Current Assets
2016 2017
79.36% 82.32 %
Increased by 2.96 %; Although Good will is decreased
Increased intangible assets
Increased share of associated Companies

Current Assets
2016 2017
20.63% 17.67 %
Decreased by 2.96 %;
Decreased cash and cash equivalent low gain from sale of assets installment paid for 3G
licensing.

Equity attributed to equity holders

2016 2017
50.49% 43.79 %
Decreased by 2.96 %;
Decrease in Equity Cancellation of 48,245,807 shares
Reduction of the share capital to maintain its owner ship interest

Non-Current Liabilities
2016 2017
19.14% 28.24 %
Increased by 9.10 %;
Increased Pension Obligations
Uninor’s interest bearing borrowings
Couponpayments on bonds issued under Telenor ASA’s EMTN programmer during the last 5
years range

Current Liabilities
2016 2017
28.60% 25.97 %
Decreased by 2.63 %;
Decrease in bank loans
Dividend payable in 2016 was paid in 2017

Current Liabilities
2016 2017
28.60% 25.97 %
Decreased by 2.63 %;
Decrease in bank loans
Dividend payable in 2016 was paid in 2017

Horizontal Analysis Balance Sheet

Total non-current assets
5.61% Increased percentage in total non-current assets
Reasons:
Intangible assets of the company increased Associated company’s ratio also increased

Total current assets:

-12.75 Decrease in total current assets
Reasons:
Due to decrease in cash and cash equivalents Asset held for sale is not present in
the balance sheet of this year.

Total assets:
1.82% Increase in total assets
Reasons:
Geographical Expansions of business in different countriesInvestments in new technology.

Equity and liabilities:

Total equity
-11.12% Decrease in total equity

Reasons:
The reason for decrease percentage is that the company is bought back itstreasury shares from
Norwegian government.

Non-current liabilities:
51.33%Favorable in terms of technological advancement yielding high returns.Unfavorable in
term of that if liabilities increase their interest expense is alsoincreases
Reasons:
Due to workforce reduction such as from retirement of the employee’scompanies pension
expenses is increases

Total current liabilities:

-7.68%Decreases in company’s total current
Reasons:
Provisions and obligations are also increasedthe Company pay off their short-term liabilities.