| The Group's operations are managed and reported by Business Area (BA) as follows. |
| - BA Mobility Services is responsible for personal mobility services for the consumer and enterprise mass markets. The operations comprise the mobile operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain. |
| - BA Broadband Services is responsible for mass-market services for connecting homes and offices and for home communications. It operates the group common core network and comprises operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia (49 percent), Estonia and international carrier operations. |
| - BA Integrated Enterprise Services is responsible for the Nordic and Baltic business where TeliaSonera is engaged in managing enterprises' internal IT and telecom infrastructure. It is responsible for the enterprises' total telecommunications needs and offers end-to-end management solutions with service guarantees. |
| - BA Eurasia comprises the mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia and Moldova. It is also responsible for developing TeliaSonera's shareholding in the mobile operators MegaFon (44 percent) in Russia and Turkcell (37 percent) in Turkey. |
| - Other operations comprise TeliaSonera Holding, Corporate Head Office and Common Services. TeliaSonera Holding is responsible for the Group's non-core/non-strategic operations. The operations in Holding are being gradually divested through sales or closing-down of operations. Corporate Head Office acts on behalf of the CEO by making corporate policies, by coordinating TeliaSonera group matters and by exercising a strong central control to exploit scale advantages and synergies. Common Services comprises certain shared service functions on Group level, country level and BA level. |
| Segment consolidation is based on the same accounting principles as for the Group as a whole, except for loss-making customer contracts within BA Integrated Enterprise Services which are not provided for in the BA accounts if a contract is profitable on Group level. Inter-segment transactions are based on commercial terms. Besides Net sales and Operating income, principal segment control and reporting concepts are EBITDA excluding non-recurring items and Operating segment capital, respectively (see "Definitions"). Comparative period figures for 2006 have been restated to reflect the organizational restructuring effective January 1, 2007. |
|
| January-December 2007 or December 31, 2007 |
|---|
| Net sales |
| 44,519 | 41,273 | 13,729 | 10,338 | 647 | -14,162 | 96,344 |
|---|
| External net sales |
| 39,472 | 34,354 | 11,700 | 10,332 | 515 | -29 | 96,344 |
|---|
| EBITDA excluding non-recurring items |
| 13,332 | 12,926 | -162 | 5,255 | -348 | 18 | 31,021 |
|---|
| Non-recurring items |
| -363 | -332 | -135 | - | 142 | 0 | -688 |
|---|
| Amortization, depreciation and impairment losses |
| -4,162 | -5,877 | -428 | -1,278 | -173 | 43 | -11,875 |
|---|
| Income from associates and joint ventures |
| -172 | 222 | - | 6,906 | 740 | 1 | 7,697 |
|---|
| Operating income/loss |
| 8,635 | 6,939 | -725 | 10,883 | 361 | 62 | 26,155 |
|---|
| Financial items, net |
|
|
|
|
|
|
| -904 |
|---|
| Income taxes |
|
|
|
|
|
|
| -4,953 |
|---|
| Net income |
|
|
|
|
|
|
| 20,298 |
|---|
| Investments in associates and joint ventures |
| 274 | 885 | - | 31,572 | 334 | - | 33,065 |
|---|
| Other operating segment assets |
| 85,528 | 51,978 | 4,935 | 16,008 | 2,700 | -1,789 | 159,360 |
|---|
| Unallocated operating assets |
|
|
|
|
|
|
| 12,111 |
|---|
| Other unallocated assets |
|
|
|
|
|
|
| 12,165 |
|---|
| Total assets |
|
|
|
|
|
|
| 216,702 |
|---|
| Operating segment liabilities |
| 12,855 | 12,857 | 2,660 | 3,708 | 3,580 | -1,800 | 33,860 |
|---|
| Unallocated operating liabilities |
|
|
|
|
|
|
| 29,751 |
|---|
| Other unallocated liabilities |
|
|
|
|
|
|
| 43,995 |
|---|
| Adjusted equity |
|
|
|
|
|
|
| 109,095 |
|---|
| Total equity and liabilities |
|
|
|
|
|
|
| 216,702 |
|---|
| Investments |
| 5,468 | 5,910 | 1,256 | 7,679 | 399 | -10 | 20,702 |
|---|
| of which CAPEX |
| 4,168 | 5,369 | 532 | 3,114 | 347 | 1 | 13,531 |
|---|
| Number of employees |
| 7,789 | 14,361 | 3,726 | 3,862 | 1,554 | - | 31,292 |
|---|
| Average number of full-time employees |
| 6,907 | 13,488 | 3,457 | 2,866 | 1,658 | - | 28,376 |
|---|
|
|
|
|
|
|
|
|
|
|---|
|
| January-December 2006 or December 31, 2006 (restated) |
|---|
| Net sales |
| 41,949 | 40,880 | 12,940 | 8,508 | 527 | -13,744 | 91,060 |
|---|
| External net sales |
| 37,275 | 33,725 | 11,178 | 8,505 | 377 | - | 91,060 |
|---|
| EBITDA excluding non-recurring items |
| 13,845 | 13,629 | 360 | 4,757 | -318 | -7 | 32,266 |
|---|
| Non-recurring items |
| -418 | -847 | -278 | - | 390 | - | -1,153 |
|---|
| Amortization, depreciation and impairment losses |
| -4,165 | -5,567 | -316 | -1,030 | -164 | 39 | -11,203 |
|---|
| Income from associates and joint ventures |
| -166 | 220 | - | 4,800 | 725 | - | 5,579 |
|---|
| Operating income/loss |
| 9,096 | 7,435 | -234 | 8,527 | 633 | 32 | 25,489 |
|---|
| Financial items, net |
|
|
|
|
|
|
| -263 |
|---|
| Income taxes |
|
|
|
|
|
|
| -5,943 |
|---|
| Net income |
|
|
|
|
|
|
| 19,283 |
|---|
| Investments in associates and joint ventures |
| 425 | 755 | - | 23,202 | 1,154 | - | 25,536 |
|---|
| Other operating segment assets |
| 79,123 | 52,303 | 3,604 | 9,115 | 2,378 | -1,957 | 144,566 |
|---|
| Unallocated operating assets |
|
|
|
|
|
|
| 12,258 |
|---|
| Other unallocated assets |
|
|
|
|
|
|
| 17,032 |
|---|
| Total assets |
|
|
|
|
|
|
| 199,392 |
|---|
| Operating segment liabilities |
| 11,423 | 15,527 | 2,996 | 1,346 | 2,656 | -1,903 | 32,045 |
|---|
| Unallocated operating liabilities |
|
|
|
|
|
|
| 40,152 |
|---|
| Other unallocated liabilities |
|
|
|
|
|
|
| 27,768 |
|---|
| Adjusted equity |
|
|
|
|
|
|
| 99,427 |
|---|
| Total equity and liabilities |
|
|
|
|
|
|
| 199,392 |
|---|
| Investments |
| 5,153 | 6,624 | 361 | 2,699 | 215 | - | 15,052 |
|---|
| of which CAPEX |
| 3,252 | 4,605 | 324 | 2,699 | 215 | 6 | 11,101 |
|---|
| Number of employees |
| 7,087 | 14,610 | 3,374 | 2,023 | 1,434 | - | 28,528 |
|---|
| Average number of full-time employees |
| 6,397 | 14,335 | 2,974 | 1,965 | 1,298 | - | 26,969 |
|---|
|
|
|
|
|
|
|
|
|
|---|
| External net sales were distributed by product area as follows. |
|
|
| January-December |
|
|
|
|
|---|
| Mobile communications |
|
| 50,418 | 47,660 |
|
|
|
|
|---|
| Fixed communications |
|
| 38,535 | 39,000 |
|
|
|
|
|---|
| Other services |
|
| 7,391 | 4,400 |
|
|
|
|
|---|
| Total |
|
| 96,344 | 91,060 |
|
|
|
|
|---|
| Fixed communications include Internet, data and TV services. Other services include equipment sales, managed services and financial services. |
| Net sales by external customer location and non-current assets, respectively, were distributed among individually material countries as follows. |
| January-December | December 31, |
|---|
| 2007 | 2006 | 2007 | 2006 |
|---|
| Net sales | Non-current assets |
|---|
| Sweden | 36,046 | 37.4 | 36,297 | 39.9 | 23,336 | 17.0 | 22,086 | 18.0 |
|---|
| Finland | 16,735 | 17.4 | 16,504 | 18.1 | 41,982 | 30.7 | 40,906 | 33.3 |
|---|
| Norway | 9,603 | 10.0 | 9,053 | 9.9 | 29,941 | 21.9 | 27,951 | 22.7 |
|---|
| All other countries | 33,960 | 35.2 | 29,207 | 32.1 | 41,604 | 30.4 | 31,899 | 26.0 |
|---|
| Total | 96,344 | 100.0 | 91,060 | 100.0 | 136,863 | 100.0 | 122,842 | 100.0 |
|---|
| Net sales by external customer location were distributed among economic regions as follows. |
| January-December |
|
|
|
|
|---|
| 2007 | 2006 |
|
|
|
|
|---|
| European Economic Area (EEA) | 84,452 | 87.6 | 81,220 | 89.2 |
|
|
|
|
|---|
| of which European Union (EU) member states | 74,817 | 77.7 | 72,149 | 79.2 |
|
|
|
|
|---|
| Rest of Europe | 1,068 | 1.1 | 849 | 0.9 |
|
|
|
|
|---|
| North-American Free Trade Agreement (NAFTA) | 555 | 0.6 | 522 | 0.6 |
|
|
|
|
|---|
| Rest of world | 10,269 | 10.7 | 8,469 | 9.3 |
|
|
|
|
|---|
| Total | 96,344 | 100.0 | 91,060 | 100.0 |
|
|
|
|
|---|
| The TeliaSonera Group offers a diversified portfolio of mass-market services and products in highly competitive markets. Hence, the Group's exposure to individual customers is limited. |