
Annual Report 2007 - Financial StatementsNote 21 - Equity and Earnings per Share
| Share capital | ||||
| According to the articles of association of TeliaSonera AB the authorized share capital shall amount to no less than SEK 8 billion and no more than SEK 32 billion. All issued shares have been paid in full and carry equal rights to vote and participate in the assets of the company. | ||||
| During the last three years, the issued share capital changed as follows. | ||||
| Issued share capital (SEK) | Number of issued shares | Quotient value (SEK/share) | ||
|---|---|---|---|---|
| Issued share capital, December 31, 2004 | 14,960,742,621 | 4,675,232,069 | 3.20 | |
| Issued share capital, December 31, 2005 | 14,960,742,621 | 4,675,232,069 | 3.20 | |
| Cancellation of shares repurchased in 2005, September 6, 2006 | -591,279,539 | -184,774,856 | 3.20 | |
| Issued share capital, December 31, 2006 | 14,369,463,082 | 4,490,457,213 | 3.20 | |
| Issued share capital, December 31, 2007 | 14,369,463,082 | 4,490,457,213 | 3.20 | |
| Treasury shares | ||||
| On April 26, 2005, the Annual General Meeting of shareholders decided on a share repurchase program with tradable rights. After executing the program, TeliaSonera AB as of December 31, 2005 held 184,774,856 treasury shares. On April 27, 2006, the Annual General Meeting decided to reduce the share capital by cancellation of the repurchased shares. The cancellation was accomplished on September 6, 2006. | ||||
| No TeliaSonera shares are held by the company's subsidiaries. | ||||
| Reserves | ||||
| December 31, | ||||
| SEK in millions | 2007 | 2006 | ||
| Recycling reserves | ||||
| Fair value reserve - quoted equity instruments | ||||
| Opening balance | 124 | 163 | ||
| Net changes in fair value | 4 | 7 | ||
| Transferred to other financial items in the income statement | - | -88 | ||
| Tax effect | - | 42 | ||
| Closing balance | 128 | 124 | ||
| Hedging reserve - cash flow hedges | ||||
| Opening balance | -35 | -49 | ||
| Net changes in fair value | -13 | -39 | ||
| Transferred to finance costs in the income statement | 62 | 58 | ||
| Tax effect | -14 | -5 | ||
| Closing balance | 0 | -35 | ||
| Foreign currency translation reserve | ||||
| Opening balance | -2,976 | 5,979 | ||
| Translation of foreign operations | 8,741 | -8,993 | ||
| Foreign operations divested | 7 | 38 | ||
| Hedging of foreign operations | -158 | - | ||
| Tax effect | 44 | - | ||
| Closing balance | 5,658 | -2,976 | ||
| Total recycling reserves, closing balance | 5,786 | -2,887 | ||
| Other reserves | ||||
| Revaluation reserve | ||||
| Opening balance | 1,138 | 966 | ||
| Operations acquired | - | 300 | ||
| Transfer of amortization and depreciation for the year | -166 | -128 | ||
| Closing balance | 972 | 1,138 | ||
| Inflation adjustment reserve | ||||
| Opening balance | 4,909 | 5,056 | ||
| Translation of operations in hyperinflationary economies | - | -147 | ||
| Closing balance | 4,909 | 4,909 | ||
| Total other reserves, closing balance | 5,881 | 6,047 | ||
| Total reserves, closing balance | 11,667 | 3,160 | ||
| The hedging reserve comprises gains and losses on derivatives hedging interest rate and foreign currency exposure (with a zero net effect in equity as of December 31, 2007). Gains or losses will affect the income statement in 2010, 2013 and 2017 when the hedged items mature. No hedging reserve transfer necessitated adjustment of the cost of acquisition. See also section "Financial Instruments" in Note 4 "Significant Accounting Policies." | ||||
| The inflation adjustment reserve refers to the Turkish economy, which as of January 1, 2006, from an accounting perspective is no longer considered to be hyperinflationary, affecting TeliaSonera in the second quarter of 2006, as Turkcell's financials are reported with a one-quarter lag. | ||||
| Minority interests in equity | ||||
| Exchange rate differences in minority interests changed as follows. | ||||
| December 31, | ||||
| SEK in millions | 2007 | 2006 | ||
| Opening balance | -426 | 182 | ||
| Translation of foreign operations | 160 | -608 | ||
| Closing balance | -266 | -426 | ||
| Minority interests in equity were distributed as follows (including intermediate holding companies, when applicable). | ||||
| December 31, | ||||
| SEK in millions | 2007 | 2006 | ||
| DLG-debitel I/S, Denmark | 60 | - | ||
| TEO LT, AB, Lithuania | 1,178 | 1,163 | ||
| Latvijas Mobilais Telefons SIA, Latvia | 764 | 702 | ||
| AS Eesti Telekom, Estonia | 2,175 | 2,471 | ||
| Fintur Holdings B.V., the Netherlands | 5,356 | 4,144 | ||
| Central Asian Telecommunications Development B.V., the Netherlands | 233 | - | ||
| Other subsidiaries | 17 | 20 | ||
| Total minority interests in equity | 9,783 | 8,500 | ||
| Earnings per share and dividends | ||||
| January-December | ||||
| 2007 | 2006 | |||
| Net income attributable to shareholders of the parent company (SEK million) | 17,674 | 16,987 | ||
| Average number of outstanding shares, basic and diluted (thousands) | 4,490,457 | 4,490,457 | ||
| Average number of treasury shares, basic and diluted (thousands) | - | 125,546 | ||
| Earnings per outstanding share, basic and diluted (SEK) | 3.94 | 3.78 | ||
| Ordinary cash dividend (for 2007 as proposed by the Board) | ||||
| - Per share (SEK) | 1.80 | 1.80 | ||
| - Total (SEK million) | 8,083 | 8,083 | ||
| Extraordinary cash dividend (for 2007 as proposed by the Board) | ||||
| - Per share (SEK) | 2.20 | 4.50 | ||
| - Total (SEK million) | 9,879 | 20,207 | ||