Annual report 2008, 1.19 MB - Telenor

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REPORT OF THE BOARD OF DIRECTORS PAGE 6 Technological changes lead to convergence of technologies that were earlier separate, and this causes increasing competition both within and across existing industries. New growth areas for Telenor, like mobile and fi xed broadband services, mobile fi nancial services, and communications with and between objects (M2M), are all supported by the Group’s research and development activities. HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE) In 2008 the Telenor Group has worked proactively and systematically on the continuous improvement of occupational health and safety. Focus has been placed on absence due to sickness and rehabilitation, leadership training, ergonomics, employee security and crisis management. A total of 198 HSSE reviews were carried out in 2008, including 96 in Norway. During the year, 4,964 employees took part in HSE training programmes, including 359 in Norway. Absence due to sickness in Norway was 4.70% in 2008, a marginal reduction of 0.05 percentage points compared to 2007. The average rate of absence due to sickness in other parts of the Group was 1.8%. A total of 58 lost time work injuries were recorded in 2008 among Telenor employees. A total of 69 minor injuries and 33 near miss accidents were also registered. One work related fatal accident was reported among Telenor employees, and a total of 49 were reported from subcontractors. The corresponding fi gures for the Norwegian part of the Group are 7 lost time injuries, 8 minor injuries, 2 near miss accidents and no fatal accidents. In April 2003, together with a number of other major businesses in Norway, Telenor entered into an agreement relating to a more inclusive working life. The agreement has been extended to the end of 2009. The agreement shall help to reduce absence due to sickness, to ensure better adaptation of working conditions for employees with special needs, and rise the actual retirement age in the Group. The principles for inclusion and initiatives as described in the agreement relating to a more inclusive working life have been adhered to by Telenor ever since the mid 1990s. Since 1996, Telenor in Norway has had a two year course and work training programme for the physically disabled: Telenor Open Mind, with the aim of giving participants the opportunity to be included in regular working life through relevant work training and experience. So far about 75% of the participants have entered the regular labour market after completing the programme. An external evaluation (Sintef 2006) estimated that Telenor Open Mind led to socioeconomic savings of at least NOK 100 million in the period 1996–2006. In 2007, similar activities were initiated in DiGi (Malaysia) and ANNUAL REPORT 2008 in Telenor Sweden, and in 2008 Telenor Serbia also launched programmes for the physically disabled. In April 2008, Telenor became aware of unacceptable working conditions at several suppliers to its subsidiary Grameenphone in Bangladesh. In response, Telenor initiated a Group wide project (HIT) to review and improve health, safety, security and environment (HSSE) standards across the supply chain. The project has resulted in updated standards for suppliers, a new focus on identifying HSSE risk, and updated procedures for following-up with suppliers to detect and remedy non-compliance. As part of the HIT project, Det Norske Veritas (DNV) executed 65 supplier assessments in 11 countries, which were based on relevant local law, Telenor contractual requirements, and requirements of ISO 14001, OHSAS 18001 and SA 8000 standards. The assessments identifi ed lack of awareness on health, safety and environmental issues, labour rights and local law requirements in some countries. Other fi ndings showed working hours exceeding legal limits, inconsistent use of personal protective equipment, and that a formal management system with regard to environment, health & safety and social accountability rarely existed. All the local HIT teams have started to work with the local suppliers to ensure compliance with the relevant requirements and standards and rectify the fi ndings from DNV. Telenor has also initiated awareness building programmes with suppliers in order to increase awareness of HSSE challenges. PEOPLE AND ORGANISATION At the end of 2008, the Telenor Group had 38,800 employees, of which 10,400 in Norway and 28,400 outside Norway. This is an increase of 200 employees in Norway, as well as an increase in international operations of 2,800 employees since 2007. In addition there are approximately 5,500 employees in Kyivstar. Telenor recognises the importance of attracting and retaining skilled and motivated employees and managers with a strong commitment to the business in line with Telenor’s ethical guidelines and values. In 2008, the group continued the global Telenor Development Process (TDP) which consists of a number of subprocesses. The joint effect of the process is an organisation, managers and employees that develop and produce results in accordance with Telenor’s strategy and core values. We see a consistent development of leadership capabilities and knowledge and understanding of Telenor core values and codes of conduct among employees. In 2008 we have established a foundation for a uniform way to manage talents across the organisation. Further we have established a basis for better utilisation of knowledge across the
Telenor Group through development of the virtual workplace and increased mobility. Telenor is committed to ensuring diversity in the group and can demonstrate good results in this area. This work focuses on women, ethnic minorities, senior employees and those with disabilities. In 2008 we have established a senior policy in the Norwegian part of the Telenor Group. Telenor sets requirements for diversity in recruitment and management development programmes. We recognise that a good balance between work and private life is becoming increasingly important for today’s talents and managers, both male and female. Statistics show that 37% of the total workforce consists of women in the Norwegian part of the Group. The corresponding fi gure for managers is 36%. In 2008, the Board of Telenor ASA consisted of 36% women and 64% men. CORPORATE RESPONSIBILITY The Telenor Group continuously works to make corporate responsibility a part of the way we do business – both strategically and operatively. We become an integral part of the societies we join and it is therefore vital that we also operate responsibly in all aspects of our business. Achieving this requires close engagement with, and awareness of, the social and economic challenges and needs in the Telenor Group’s different markets. Several studies have shown that mobile communications can contribute to sustainable growth and benefi t the living conditions of individuals and communities. The Telenor Group seeks to maximise this potential through offering innovative products and services that extend the benefi ts of mobile communications to as many people as possible. In 2008, Telenor continued to work with partners across different markets to develop projects in areas that have not previously had access to mobile communication. In April 2008, Telenor became aware of the need for an increased focus on monitoring and following up standards in our supply chain, after unacceptable working conditions were revealed at several suppliers to our subsidiary Grameenphone in Bangladesh. In response, Telenor initiated a Group-wide project to address supply chain follow-up. This included updating our Supplier Conduct Principles and implementing a new system for assessing risks of non-compliance. We further strengthened our process for monitoring compliance through both announced an unannounced supplier visits. For further information on the actions taken on this issue, REPORT OF THE BOARD OF DIRECTORS please refer to the Health, Safety, Security and Environment section of this report. During 2008, Telenor made great strides in its establishment of a comprehensive climate strategy. The Telenor Climate Change Programme was launched in January 2008. The Programme focused its work on four key work streams: reducing internal emissions, evaluating sources of renewable energy, exploring business opportunities and engaging employees. Development of strategies to reduce internal emissions was well underway, with a focus on improving network effi ciency and improving the energy effi ciency of buildings and IT infrastructure. Telenor further signifi cantly extended its application of virtual working tools in order to replace non-essential business travel, which will contribute to reducing CO2 emissions. Telenor also initiated improvements of its non-fi nancial accounting and reporting, with an initial emphasis on environment related data. Building on the foundation laid in 2007, Telenor strengthened its process for measuring CO2 emissions. Emission measurements include the CO2 emissions caused by the production of electricity bought from the electric power plants in the countries in which Telenor operates, in addition to our own electricity production. Total emissions for 2008 are calculated to be approximately 722 000 tonnes of CO2. Network operations accounted for 82% of emissions, while buildings accounted for 8% and the fi gure for transport and business travel was 8%. In 2008, Telenor was named sector leader in mobile telecommunications on the Dow Jones Sustainability Indexes (DJSI) for the second year in a row. The ranking is based on a thorough review of Telenor’s performance on the social, environmental, and economic aspects of sustainability. For more information on Telenor’s corporate responsibility please visit http://www.telenorgroup.com/en/corporate-responsibility/. RISK FACTORS AND RISK MANAGEMENT The Telenor Group’s activities are exposed to a number of fi nancial, operational, regulatory, industry and political risks. Some risk factors are specifi c to the Group’s business operations while others exist where the Group has more limited opportunity to infl uence and control. The Board ensures that the Group undertakes the steps necessary to manage its risk profi le. For Telenor’s strategy to be successful and inspire the necessary confi dence among shareholders, risk assessment and risk management must form part of the Group’s ANNUAL REPORT 2008 PAGE 7
Page 1 and 2: Annual report 2008 2008 was a busy
Page 3 and 4: Dear shareholder, 2008 was a busy y
Page 5 and 6: outlook for 2008 as outlined in the
Page 7: from the fourth quarter of 2007. Du
Page 11 and 12: Telenor derives an increasingly hig
Page 13 and 14: OUTLOOK FOR 2009 Based on the profo
Page 15 and 16: CONSOLIDATED BALANCE SHEET Telenor
Page 17 and 18: CONSOLIDATED STATEMENTS OF CHANGES
Page 19 and 20: 02 IFRS 3R Business Combination - (
Page 21 and 22: control. That is when the strategic
Page 23 and 24: Rentals payable under operating lea
Page 25 and 26: Telenor includes deductions for unc
Page 27 and 28: DiGi is listed at Bursa Malaysia Se
Page 29 and 30: 04 BUSINESS COMBINATIONS AND DISPOS
Page 31 and 32: The initial purchase price allocati
Page 33 and 34: The carrying values at the acquisit
Page 35 and 36: NOTES TO THE FINANCIAL STATEMENTS T
Page 37 and 38: 05 KEY FIGURES SEGMENTS NOTES TO TH
Page 39 and 40: Segment Information 2006 EBITDA Dep
Page 41 and 42: 08 09 SALARIES AND PERSONNEL COSTS
Page 43 and 44: 13 Details of impairment losses: NO
Page 47 and 48: 15 Changes in net deferred taxes NO
Page 49 and 50: 17 NOTES TO THE FINANCIAL STATEMENT
Page 51 and 52: Average EBITDA margin - The EBITDA
Page 55 and 56: 21 As of 31 December 2008, future m
Page 57 and 58: 22 The Group’s share of assets, l
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24 ADDITIONAL CASH FLOW INFORMATION
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Employee equity benefi ts reserve T
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NOTES TO THE FINANCIAL STATEMENTS T
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27 PROVISIONS AND OBLIGATIONS Non-c
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29 NOTES TO THE FINANCIAL STATEMENT
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Fair values of fi nancial instrumen
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33 RELATED PARTIES As of 26 March 2
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36 NOTES TO THE FINANCIAL STATEMENT
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Options and shares 2008 NOTES TO TH
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38 39 NUMBER OF SHARES, OWNERSHIP E
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BALANCE SHEET Telenor ASA as of 31
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STATEMENT OF CHANGES IN EQUITY Tele
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03 PENSION OBLIGATIONS Telenor ASA
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07 contribution to be received and
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10 11 2007 Depreciation Acc. depre-
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15 16 CONTRACTUAL OBLIGATIONS NOTES
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AUDITOR’S REPORT FOR 2008 AUDITOR
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Annual report 2008 Published by Tel
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Annual report 2008, 1.19 MB - Telenor

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