C5. Segment information

TeliaSonera’s operating model is based on geographical areas. The group’s operations are managed and reported by the two operating segments; region Sweden and region Europe. The regions are country-based organizations and the head of each region reports directly to the CEO. Other operations are collectively reported. The former segment region Eurasia is classified as held for sale and discontinued operations as of December 31, 2015, and is therefore not included in the segment information. Comparative segment information for 2014 has been restated. See Note C34 “Discontinued operations and assets classified as held for sale” for information on discontinued operations.
  • Region Sweden comprises TeliaSonera’s mobile, broadband and fixed-line operations in Sweden.
  • Region Europe comprises TeliaSonera’s mobile, broadband and fixed-line operations in Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain.
  • Other operations include the international carrier operations, customer financing and dunning operations, TeliaSonera Holding, TeliaSonera’s shareholding in the associates Russian MegaFon and Turkish Turkcell as well as Group functions.

Segment information is based on the same accounting principles as for the group as a whole. 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, Investments in associated companies and joint ventures, Other operating segment assets and Operating segment liabilities, respectively (see Definitions).

Operating segment assets comprise total assets less non-operating interest-bearing receivables, long term and short term investments, pension obligation assets, foreign currency derivatives, accrued interest, tax assets and cash and cash equivalents. Operating segment liabilities contain total liabilities less non-operating interest-bearing liabilities, provisions for pensions and employment contracts, foreign currency derivatives, accrued interest and tax liabilities. For information on distribution of goodwill by reportable segments, see Note C12 “Goodwill and other intangible assets.”

 

SEK in millions

January–December 2015 or December 31, 2015

Sweden

Europe

Other

Discontinued
operations

Eliminations

Group

Net sales

37,336

43,730

7,753

-2,249

86,569

External net sales

37,051

43,309

6,210

86,569

EBITDA excluding non-recurring items

14,267

10,584

430

25,281

Non-recurring items

-495

-601

-194

-1,289

Amortization, depreciation and impairment losses

-4,468

-7,728

-583

-12,780

of which impairment losses

0

-1,917

-3

-1,920

Income from associated companies and joint ventures

-20

119

3,295

3,394

Operating income

9,284

2,375

2,948

14,606

Financial items, net

         

-2,917

Income taxes

         

-2,157

Net income from continuing operations

         

9,532

Investments in associated companies and joint ventures

5

783

22,553

23,341

Other operating segment assets

42,510

95,235

11,206

-1,859

147,092

Current and deferred tax assets

         

5,123

Other unallocated assets

         

42,649

Assets classified as held for sale

 –  – – 

35,812

 –

35,812

Total assets

         

254,017

Operating segment liabilities

11,123

11,626

5,692

-1,868

26,573

Current and deferred tax liabilities

         

10,712

Other unallocated liabilities

         

102,933

Liabilities directly associated with assets classified as held for sale

 –  –  –

11,598

 –

11,598

Total non-current and current liabilities

         

151,816

Investments, continuing operations

6,337

10,441

3,634

20,413

of which CAPEX, continuing operations

6,179

5,823

2,593

14,595

Number of employees

6,695

11,305

3,342

5,553

26,895

SEK in millions

January–December 2014 or December 31, 2014

Sweden

Europe

Other

Discontinued
operations

Eliminations

Group

Net sales

36,456

39,667

7,043

-2,035

81,131

External net sales

36,165

39,401

5,565

81,131

EBITDA excluding non-recurring items

14,311

9,772

282

24,364

Non-recurring items

-354

-206

-351

-912

Amortization, depreciation and impairment losses

-4,205

-5,273

-797

-10,276

of which impairment losses

-36

-202

-0

-238

Income from associated companies and joint ventures

-5

108

4,463

4,567

Operating income

9,746

4,401

3,597

17,743

Financial items, net

         

-2,535

Income taxes

         

-2,989

Net income from continuing operations

         

12,219

Investments in associated companies and joint ventures

22

803

31,640

327

32,793

Other operating segment assets

39,291

96,049

15,444

37,408

-1,791

186,401

Current and deferred tax assets

         

7,006

Other unallocated assets

         

45,866

Total assets

         

272,066

Operating segment liabilities

10,195

11,679

5,250

13,354

-1,797

38,680

Current and deferred tax liabilities

         

11,411

Other unallocated liabilities

         

105,610

Total non-current and current liabilities

         

155,702

Investments

5,605

5,203

2,355

4,733

3

17,899

of which CAPEX

4,936

4,699

2,317

4,724

3

16,679

Number of employees

6,740

10,917

3,236

5,273

26,166

© TeliaSonera 2015
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