C14. Investments in associated companies and joint ventures

The total carrying value was distributed as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Interests in associated companies

22,673

23,313

Interests in joint ventures

26

28

Total carrying value

22,698

23,341

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

SEK in millions

January–December

2016

2015

Share of income from associated companies

2,809

3,422

Gains/losses from disposals of shares in associates

-5

-19

Income from joint ventures

6

-9

Recognized in net income

2,810

3,394

Other comprehensive income from associated companies

-361

4

Recognized in total comprehensive income

2,450

3,398

Details of material associated companies

Telia Company has two material associated companies, PAO MegaFon and Turkcell Iletisim Hizmetleri A.S. PAO MegaFon has its operations mainly 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 Telia Company’s consolidated share. Turkcell Iletisim Hizmetleri A.S, in which Telia­ Company’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 Telia Company’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 Telia Company’s closing date and the date of the respective company’s financial statements. For more information, see Risks and uncertainties, section “Associated companies and joint operations.” Market values of Telia Company’s holdings at year-end were:

SEK in millions

Dec 31, 2016

Dec 31, 2015

PAO MegaFon, Russia

13,387

15,145

Turkcell Iletisim Hizmetleri A.S., Turkey

21,088

23,770

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. Telia Company 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

2016

2015

2016

2015

2016

2015

Non-current assets

51,283

41,101

63,279

47,861

114,562

88,961

Current assets

12,418

8,656

14,592

8,618

27,010

17,274

Non-current liabilities

35,447

20,206

16,710

1,671

52,157

21,877

Current liabilities

12,866

12,921

21,553

14,852

34,419

27,774

Net assets (100 percent)

15,388

16,629

39,608

39,955

54,996

56,582

Non-controlling interests

-5

11

388

-199

383

-188

Net assets excluding non-controlling interests

15,383

16,641

39,996

39,756

55,379

56,394

Adjustment for differences in accounting principles

5

-569

-377

1,236

-372

667

Net assets after adjustments

15,388

16,071

39,619

40,992

55,007

57,064

Group’s share

4,032

4,211

15,119

15,593

19,150

19,804

Adjustment, Turkcell part of Fintur equity

-1,370

-1,406

-1,370

-1,406

Adjustment, fair values

702

396

3,334

3,484

4,036

3,880

Carrying value of interests in MegaFon and Turkcell

4,733

4,606

17,082

17,672

21,816

22,278

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

       

857

1,035

Carrying value of joint ventures (group’s share)

       

26

28

Total carrying value of interests in associated
companies and joint ventures

       

22,698

23,341

Statements of comprehensive income

SEK in millions

January–December

2016

2015

2016

2015

2016

2015

MegaFon

Turkcell

Total

Net sales

39,318

46,450

39,121

28,224

78,439

74,674

Net income

3,432

5,395

5,021

5,537

8,453

10,931

Other comprehensive income

-142

-118

-847

89

-989

-29

Total comprehensive income (100 percent)

3,290

5,277

4,173

5,625

7,464

10,902

Total comprehensive income (group’s share)

862

1,382

1,597

2,140

2,459

3,522

Adjustment Turkcell part of Fintur total comprehensive income

-115

-314

-115

-314

Total comprehensive income after adjustments, group’s share

862

1,382

1,481

1,826

2,343

3,208

Other associated companies not individually material

           

Net sales (100 percent)

       

2,107

1,866

Net income (group’s share)

       

105

218

Total comprehensive income from other associated companies

       

105

218

Gains/losses from sale of shares in other associates

       

-5

Joint ventures not individually material

           

Net income (group’s share)

       

6

-28

Total comprehensive income joint ventures (group’s share)

       

6

-28

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

       

2,450

3,398

             

Dividends received from MegaFon and Turkcell

1,700

1,607

77

5,150

1,777

6,756

Dividends received from other associated companies

       

341

140

Total dividends received from associated companies
and joint ventures

       

2,117

6,896

The carrying value was distributed and changed as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Goodwill and fair value adjustments

3,822

4,110

Share of equity

18,876

19,231

Carrying value

22,698

23,341

Carrying value, opening balance

23,341

32,793

Shareholder contributions

Share of net income for the year

2,821

3,453

Share of other comprehensive income for the year

-20

6

Amortization and write-downs of fair value adjustments

-6

-9

Dividends received

-2,117

-6,896

Acquisitions and operations acquired

43

Divestments and operations divested

-9

15

Transactions in equity

39

-1,197

Reclassifications

23

22

Exchange rate differences

-1,372

-4,669

Reclassification to assets classified as held for sale

-220

Carrying value, closing balance

22,698

23,341

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

2016

2015

2016

2015

SEK in millions

Parent company holdings

             

Swedish companies

             

Overseas Telecom AB, 556528-9138, Stockholm

65

1,180,575

 

25

225

21

198

Springworks AB, 556915-3983, Stockholm

30

21,429

 

28

29

32

32

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

20

400

 

6

5

1

1

Non-Swedish companies

             

Yoga AS, 11486721, Tallinn

25

1,013,333

 

7

7

0

8

ZeroGroup Holding OÜ, 11536594, Tartu

25

1

 

8

11

0

12

Other operating, dormant and divested companies

     

0

10

0

15

Total parent company

         

54

267

Subsidiaries’ holdings

             

Swedish companies

             

Other operating, dormant and divested companies

     

   

Non-Swedish companies

             

AS Sertifitseerimiskeskus, 10747013, Tallinn

50

32

 

16

14

   

SIA Lattelecom, 00030527, Riga

49

71,581,000

 

766

732

   

Turkcell Holding A.S., 430991, Istanbul

47

214,871,670

 

10,796

11,189

   

Turkcell Iletisim Hizmetleri A.S., 304844, Istanbul

14

308,531,984

 

6,286

6,483

   

OCH A/S, 18936909, Copenhagen

25

250

 

0

3

   

PAO MegaFon, 1027809169585, Moscow

25

156,080,311

 

4,733

4,606

   

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

25

 

7

9

   

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

49

49,001

 

19

9

   

Other operating, dormant and divested companies

     

0

7

   

Total group

     

22,698

23,341

   

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.”