TeliaSonera s Year-end Report 0 to include one-time related items

TeliaSonera's Year-end Report 2013 to include one-time related items

16 January 2014

TeliaSonera's Year-end Report January-December 2013 will be released on January 30. In the fourth quarter of 2013, operating income will be impacted by one-time related items of SEK -2,524 million, of which SEK -2,331 million relate to non-cash write-downs, primarily of goodwill, and scrapping of IT platforms.

As a result of an overall impairment review, TeliaSonera will record a total SEK 1,168 million non-cash goodwill impairment charge related to the Mobile and Broadband operations in Denmark together with the Mobile operation in Lithuania.

Further, TeliaSonera will book non-cash impairment charge of SEK 598 million related to the operations acquired in Kazakhstan in January 2013. This relates mainly to the Wimax operation and is based on the view that it will take longer time to get fully use of the acquired frequencies due to current absence of a 4G license.

On December 16, 2013, TeliaSonera announced a new operating model effective on April 1, 2014. As a result of the new country structure there will be further consolidation of IT systems and platforms. Combined with a general IT structure review, obsolete systems and platforms with a total book value of SEK 565 million will be scrapped or written down, reported as non-cash charges in the fourth quarter results of 2013.

In the third quarter report 2013, TeliaSonera estimated that costs for redundancies, as part of the overall efficiency measures, would amount to SEK 1.4 billion for the full-year 2013, of which SEK 1.0 billion was recorded in the first nine months. In the fourth quarter of 2013, costs for redundancies were SEK 229 million. Consequently, total costs in full-year 2013 related to redundancies amount to just above SEK 1.2 billion.

On August 1, 2013, TeliaSonera's Spanish subsidiary Yoigo entered into an agreement to divest mobile telephony towers to Abertis Telecom for a projected EUR 60-70 million (circa SEK 530-620 million) in the fourth quarter of 2013. The number of towers included in the transaction has been reduced why total sales proceeds will amount to around EUR 40-50 million (circa SEK 350-440 million). The transaction was partly finalized in the fourth quarter of 2013 with a positive cash flow impact of SEK 230 million, of which SEK 179 million is reported as a net gain.

Due to four major storms in Sweden at the end of 2013, extra maintenance costs for fault handling will impact Broadband Services Sweden in the fourth quarter of 2013 by SEK 143 million.

One-time related items in Q4, 2013

SEK million Items recorded as recurring in EBITDA Items recorded as non-recurring in EBITDA Items recorded as recurring in depreciations and amortizations Items recorded as non-recurring in depreciations and amortizations Total Impact Operating Income

Net gain mobile towers Spain 179 179

Non-cash IT scrapping and write down -67 -62 52 -488 -565

Storm related costs Broadband Services Sweden -143 -143

Restructuring costs related to redundancies -229 -229

Non-cash impairment Kazakhstan -98 -500 -598

Non-cash goodwill write-down Denmark and Lithuania -1,168 -1,168

Total -31 -389 52 -2,156 -2,524

TeliaSonera's Year-end Report will be announced on Thursday, January 30, 2014 at around 7:00 (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 January 16, 2014.

For more information, please contact the TeliaSonera press office 46 771 77 58 30, cerff@gryvnfbaren.pbz, visit our Newsroom or follow us on Twitter @TLSN_Media.

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 the leading European wholesale provider with a wholly-owned international carrier network. In 2012, net sales amounted to SEK 105 billion, EBITDA to SEK 36.1 billion and earnings per share to SEK 4.59. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com.

LINK:	http://www.teliasonera.com/en/newsroom/press-releases/2014/11154/telia...
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