C14. Investments in associated companies and joint ventures

The total carrying value was distributed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Interests in associated companies

23,313

32,751

Interest in joint ventures

28

42

Total carrying value

23,341

32,793

Items recognized in net income and in total comprehensive income were as follows.

SEK in millions

January–December

2015

2014

Share of Income from associated companies

3,422

4,578

Gains/losses from disposals of shares in associates

-19

Income from joint ventures

-9

-11

Recognized in net income

3,394

4,567

Other comprehensive income associated companies

4

14

Recognized in total comprehensive income

3,398

4,581

Details of material associated companies

TeliaSonera has two material associated companies, PAO MegaFon and Turkcell Iletisim Hizmetleri A.S. PAO MegaFon has its operations in Russia. The ownership interest and voting power is 25 percent and the consolidated share is 26 percent (25 percent/26 percent). MegaFon’s holding of treasury shares is included in TeliaSonera’s consolidated share. Turkcell Iletisim Hizmetleri A.S, in which TeliaSonera’s ownership and voting power as well as consolidated share is 38 percent (38 percent), operates in Turkey, Ukraine and Belarus. Both companies are mobile operators. MegaFon and Turkcell, reported in TeliaSonera’s financial statements using the equity method, are publicly listed companies and therefore included with a one-quarter lag with adjustments made for the effects of significant transactions or events that occur between TeliaSonera’s closing date and the date of the respective company’s financial statements. For more information, see Risks and uncertainties, sections “International political and macroeconomic developments,” “Emerging markets” and “Associated companies and joint operations.” Market values of TeliaSonera’s holdings at year-end were:

SEK in millions

Dec 31, 2015

Dec 31, 2014

PAO MegaFon, Russia

15,145

19,033

Turkcell Iletisim Hizmetleri A.S., Turkey

23,770

44,160

The following table summarizes the financial information of MegaFon and Turkcell as included in the companies’ own financial statements adjusted for fair value adjustments at acquisition and differences in accounting policies. The table also reconciles the summarized financial information to the carrying amount of the group’s interests in the companies. Information on other, non-material, associated companies and joint ventures are not disclosed separately. TeliaSonera has three joint arrangements classified as joint operations. For additional information on those, see Note C4 “Changes in group composition and events after the reporting period.”

Statements of financial position

SEK in millions

December 31

MegaFon

Turkcell

Total

2015

2014

2015

2014

2015

2014

Non-current assets

41,101

47,595

47,861

47,191

88,961

94,785

Current assets

8,656

9,422

8,618

29,283

17,274

38,705

Non-current liabilities

20,206

22,551

1,671

3,710

21,877

26,261

Current liabilities

12,921

13,054

14,852

18,108

27,774

31,162

Net assets (100 percent)

16,629

21,412

39,955

54,655

56,582

76,067

Non-controlling interests

11

-49

-199

1,157

-188

1,108

Net assets excluding non-controlling interests

16,641

21,363

39,756

55,813

56,394

77,175

Adjustment for differences in accounting principles

-569

-269

1,236

2,644

667

2,355

Net assets after adjustments

16,071

21,074

40,992

58,456

57,064

79,530

Group’s share

4,211

5,521

15,593

22,237

19,804

27,758

Adjustment, Turkcell part of Fintur equity

-1,406

-1,318

-1,406

-1,318

Adjustment, fair values

396

476

3,484

4,470

3,880

4,947

Carrying value of interests in MegaFon and Turkcell

4,606

5,998

17,672

25,389

22,278

31,387

Carrying value of other associated companies not individually material (group’s share)

       

1,035

1,364

Carrying value of joint ventures (group’s share)

       

28

42

Total carrying value of interests in associated
companies and joint ventures

       

23,341

32,793

Statements of comprehensive income

SEK in millions

January–December

2015

2014

2015

2014

2015

2014

MegaFon

Turkcell

Total

Net sales

46,450

60,657

28,224

32,472

74,674

93,128

Net income

5,395

8,472

5,537

6,620

10,931

15,092

Other comprehensive income

-118

-27

89

52

-29

25

Total comprehensive income (100 percent)

5,277

8,445

5,625

6,672

10,902

15,118

Total comprehensive income (group’s share)

1,382

2,248

2,140

2,538

3,522

4,786

Adjustment Turkcell part of Fintur total comprehensive income

-314

-342

-314

-342

Amortization of fair value adjustments

-8

-8

Total comprehensive income after adjustments, group’s share

1,382

2,240

1,826

2,196

3,208

4,436

Other associated companies not individually material

           

Net sales (100 percent)

       

1,866

1,959

Net income (group’s share)

       

218

202

Total comprehensive income from other associated companies

       

218

202

Joint ventures not individually material

           

Net income (group’s share)

       

-28

-57

Total comprehensive income joint ventures (group’s share)

       

-28

-57

Group’s share of total comprehensive income for associated companies and joint ventures

       

3,398

4,581

             

Dividends received from MegaFon and Turkcell

1,607

2,002

5,150

6,756

2,002

Dividends received from other associated companies

       

140

135

Total dividends received from associated companies
and joint ventures

       

6,896

2,136

The carrying value was distributed and changed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Goodwill and fair value adjustments

4,110

4,917

Share of equity

19,231

27,876

Carrying value

23,341

32,793

Carrying value, opening balance

32,793

29,350

Shareholder contributions

10

Share of net income for the year

3,453

4,609

Share of other comprehensive income for the year

6

14

Amortization and write-downs of fair value adjustments

-9

-16

Dividends received

-6,896

-2,136

Acquisitions and operations acquired

43

4

Divestments and operations divested

15

Transactions in equity

-1,197

945

Reclassifications

22

144

Exchange rate differences

-4,669

-130

Reclassification to assets classified as held for sale

-220

Carrying value, closing balance

23,341

32,793

The carrying value is broken down by reportable segment in Note C5 “Segment Information” and by company as follows.

Company, corp. reg. no., registered office

Participation (%)

Number of shares

 

Equity participation in consolidated accounts

Carrying value in the parent company

2015

2014

2015

2014

SEK in millions

Parent company holdings

             

Swedish companies

             

Overseas Telecom AB, 556528-9138, Stockholm

65

1,180,575

 

225

232

198

198

Springworks AB, 556915-3983, Stockholm

30

21,429

 

29

32

SNPAC Swedish Number Portability Administrative Centre AB, 556595-2925, Stockholm

20

400

 

5

5

1

1

Other operating, dormant and divested companies

     

0

17

0

46

Non-Swedish companies

             

Strex AS, 985867569, Oslo

33

33,334

 

10

12

15

15

Yoga AS, 11486721, Tallinn

25

1,013,333

 

7

9

8

8

ZeroGroup Holding OÜ, 11536594, Tartu

25

1

 

11

12

12

12

Other operating, dormant and divested companies

     

0

0

0

0

Total parent company

         

267

280

Subsidiaries’ holdings

             

Swedish companies

             

Other operating, dormant and divested companies

     

0

0

   

Non-Swedish companies

             

AS Sertifitseerimiskeskus, 10747013, Tallinn

50

32

 

14

15

   

SIA Lattelecom, 00030527, Riga

49

71,581,000

 

732

755

   

Turkcell Holding A.S., 430991-378573, Istanbul

47

214,871,670

 

11,189

16,207

   

Turkcell Iletisim Hizmetleri A.S., 304844-252426, Istanbul

14

308,531,984

 

6,483

9,182

   

OCH A/S, 18936909, Copenhagen

33

1,333

 

3

4

   

Voicecom OÜ, 10348566, Tallinn

26

 

2

2

   

PAO MegaFon, 7812014560, Moscow

25

156,080,311

 

4,606

5,998

   

4T af 1. oktober 2012 ApS, 32348882, Copenhagen

25

 

9

13

   

Suomen Numerot NUMPAC Oy, 1829232-0, Helsinki

25

3,000

 

1

1

   

SCF Huolto Oy, 1892276-7, Loimaa

20

20

 

0

0

   

Strex AS, 985867569, Oslo

33

33,334

 

9

   

Other operating, dormant and divested companies

     

5

327

   

Total group

     

23,341

32,793

   

The share of voting power in Overseas Telecom AB is 42 percent. Turkcell Holding A.S. owns 51 percent of the shares in Turkcell Iletisim Hizmetleri A.S.

For additional information related to associated companies, see Note C28 “Related Party Transactions,” and Note C29 “Contingencies, other contractual obligations and litigation.”

© TeliaSonera 2015
In the event of any differences between this online version of the Annual and sustainability report and the printed version, the printed version shall prevail.