Telia Sonera AnnualReport 2009

Annual Report 2009
TeliaSonera Annual Report 2009
Content
Content
TeliaSonera in Brief
Letter from the CEO
Markets and Brands
Report of the Directors
Consolidated Statements of Comprehensive Income
18
Consolidated Statements of Financial Position
19
Consolidated Statements of Cash Flows
20
Consolidated Statements of Changes in Equity
21
Notes to Consolidated Financial Statements
22
Parent Company Income Statements
69
Parent Company Statements of Comprehensive Income
70
Parent Company Balance Sheets
71
Parent Company Cash Flow Statements
72
Parent Company Statements of Changes in Shareholders Equity
73
Notes to Parent Company Financial Statements
74
Proposed Appropriation of Earnings
89
Auditors Report
90
Ten-Year Summary Financial Data
91
Ten-Year Summary Operational Data
92
Definitions
93
Corporate Governance Report
95
Board of Directors Including Remuneration
101
Group Management Including Remuneration
103
Annual General Meeting 2010
105
Contact TeliaSonera
106
TeliaSonera AB (publ), SE-106 63 Stockholm, Sweden

Corporate Reg. No. 556103-4249, Registered office: Stockholm, Telephone: +46 (0)8 504 550 00, www.teliasonera.com
TeliaSonera Company Presentation 2009
Introduction
TeliaSonera in Brief
TeliaSonera provides network access and telecommunication
services that help people and companies communicate in an
easy, efficient and environmentally friendly way.
Highlights and achievements
TeliaSonera is an international group with a global strategy, but

wherever we operate we act as a local company. We offer our
services in 20 markets in the Nordic and Baltic countries, the
emerging markets of Eurasia, including Russia and Turkey, and
in Spain.
Strong financial performance

Although 2009 was a difficult year in the world economy, we
reported the highest operating income in the companys history.
4G World premiere in Stockholm and Oslo
World-class Service Company
We opened up the worlds first commercial 4G networks in

Stockholm and Oslo, providing customers with up to ten times
faster speeds than todays networks.
Our focus areas are:
To build a world-class service company
To secure high quality in our networks
To create a best-in-class cost efficiency
Employee satisfaction and commitment improved

We reached the highest level since TeliaSonera started
measurements in 2004.
TeliaSonera is listed on the NASDAQ OMX Stockholm and

NASDAQ OMX Helsinki stock exchanges.
Agreement with Altimo

TeliaSonera and Altimo agreed to combine their ownership
interests in Turkcell and MegaFon into a new company.
Strong subscription growth

The number of subscriptions grew substantially and mobile data
traffic volumes in the Nordic and Baltic markets increased by
almost 200 percent.
Financial Highlights
SEK in millions except key ratios, per share data and margins
Net sales
EBITDA, excluding non-recurring items
Margin (%)
Operating income
Operating income, excluding non-recurring items
Net income
of which attributable to owners of the parent company
Earnings per share (SEK)
Return on equity (%, rolling 12 months)
CAPEX-to-sales (%)
Free cash flow
2009
109,161
36,666
33.6
30,324
31,679
21,280
18,854
4.20
15.2
12.8
17,024
Net sales and EBITDA margin, excluding non-recurring

items, 20072009
Net sales
SEK billion
110
SEK per share

5
36%
34%
32%
30%
28%
26%
100
95
90
2007
2008
Net sales
2007
96,344
31,021
32.2
26,155
27,478
20,298
17,674
3.94
18.6
14.0
13,004
EPS and Dividends, 20072009
EBITDA margin
105
2008
103,585
32,954
31.8
28,648
30,041
21,442
19,011
4.23
17.2
15.2
11,328
2007
EPS
2009
EBITDA margin
2007
Ordinary dividend
2008
2008
Extraordinary dividend
2009
2009
Proposed dividend
Introduction
Letter from the CEO

Dear Shareholders,
TeliaSoneras performance is strong. 2009 was a difficult year in
the world economy, with low or even negative GDP growth in
many markets. In this tough economic environment, TeliaSonera
reported the highest operating income in the companys history.
The financial crisis is still prominent and affected several of our

markets during the year, but our business is resilient. Due to a
healthy mix of mature and emerging markets, we were able to
keep revenues in local currencies intact and at the same time
improve our profitability.
Traffic volumes increased, although prices have been under
significant pressure. The telecom sector is not immune to lower
economic activity and is pressured by regulatory intervention as
well as lower roaming revenues related to less business travel.
Therefore, one of the things I and the rest of the management
team are very proud of is that we have managed to break the
trend of continuous cost increases. This is a result of major cost
reductions in the Nordic and Baltic countries and tight cost
control in Eurasia.
In this context, I am encouraged that employee satisfaction
and commitment continued to improve. For the second year in a
row, we have made significant progress and reached the highest level since TeliaSonera started measurements in 2004.
Improvement in profitability and cash flow
In 2009, TeliaSoneras EBITDA grew by 11 percent and the

EBITDA margin improved to 33.6 percent. Operating income
improved by 6 percent, despite notably lower income from
associated companies. Cash flow improved by as much as
50 percent.
The improvement in profitability and cash flow is driven by
actions that we can control ourselves, namely successful
efficiency improvements, cost reductions and careful capital
spending.
Building a world class service company and delivering a

superior customer experience
Securing high quality in our networks
Cost efficient operations
TeliaSonera a pioneer
In addition to this, it is important that TeliaSonera is regarded as
a pioneer, by being at the forefront in adopting new technology
and introducing new services to our customers in all markets.
We can thereby add value and contribute to a society with
better communication opportunities for people and businesses.
Expanding in Eurasia and increasing ownership in

core holdings
TeliaSonera is a well positioned and

financially strong company, with motivated
and competent employees.
TeliaSonera aims to grow in line with the markets and take

advantage of the increased demand for bandwidth, while
maintaining profitability in the Nordic and Baltic regions, where
we have leading market positions. Eurasia is our growth engine
and in this region, fixed networks are limited and mobile
penetration is lower.
Our mobile services provide people and businesses with
opportunities to communicate with each other and to connect to
the rest of the world.
Lars Nyberg, President and CEO, TeliaSonera
Focus areas
When I joined TeliaSonera, we identified five focus areas and
later added another one so they became six.
By now I think we can actually tick some of them off. For
example, our B2B sales division is now established and up and
running. We are in the middle of the migration to IP-based
services and we continue to grow our business in Eurasia.
Therefore, the focus areas have been reduced to three, which
we will live with for many years to come and they apply to all
our business areas.
Contribution to economic growth

TeliaSoneras investments in infrastructure and services
contribute to increased transparency and contribute to
economic growth.
We aim to expand our operations in Eurasia by increasing
ownership in core holdings and making complementary
acquisitions within our existing footprint, as well as selectively
looking at new markets.
Introduction
Increased ownership
At the same time, mobile penetration in our Eurasian markets

increased and we introduced mobile internet in markets where
we have 3G licences.
In October, we successfully completed the cash offer for Eesti

Telekom in Estonia and in January 2010 we took full control of
the company. We also increased our ownership in TEO LT in
Lithuania.
In February 2010 we increased our ownership in UCell, which
during 2009 became the second largest operator in Uzbekistan.
These transactions underline our strategy to increase ownership in core holdings and we are actively exploring further
possibilities to pursue this strategy.
The worlds first 4G commercial networks

In December 2009, TeliaSonera opened up the worlds first 4G
commercial networks in the city centers of Stockholm and Oslo.
By the end of 2010, we will cover 25 Swedish municipalities and
holiday areas and four Norwegian municipalities.
4G is the fastest mobile technology available on the market,
with speeds up to ten times higher than todays turbo 3G.
4G will open up new possibilities for customers to use and
enjoy services on their laptops, that require high transmission
speeds and capacity, such as advanced web-TV broadcasting,
extensive online gaming and web conferences.
Aligning ownership with Altimo

For a number of years, we have had the ambition to increase
our ownership in both Turkcell and MegaFon and to consolidate
those businesses. However, this has proven to be very difficult
and we have explored different routes to increase our control
over and the liquidity of these assets.
In November, we took an important step towards resolving
the long lasting ownership deadlock, by aligning our ownership
interests with Altimo into a new company.
The real value of the agreement is in the execution of it,
which depends on the resolution of the legal disputes with
Cukurova regarding the ownership of Turkcell and regulatory
approvals in Turkey and Russia. Once these issues have been
resolved, the shareholder structure and control of Turkcell and
MegaFon will improve, as well as the liquidity of these assets.
We have focused on creating a governance structure where
all major parties will have good possibilities to influence, without
single-handedly controlling, the management of the new
telecommunications group.
Turkcell and MegaFon will both continue to operate as
independent companies. They are both very strong and
professionally managed operators and cross-border synergies
are limited.
It may take some time before we reach the end result, but the
new listed company will have exciting future prospects and add
value to TeliaSonera and our shareholders.
Changed competitive landscape

The competitive landscape in the telecommunications industry
is changing. Hardware manufacturers are developing
applications and content. Software manufacturers and internet
search engines, like Microsoft and Google, are developing
mobile phones and applications.
Our core business is, and will continue to be, providing
network access and telecommunication services that help
people and companies to communicate in an easy, efficient and
environmentally friendly way.
Unlimited demand for bandwidth

We believe the future demand for bandwidth will be virtually
unlimited. At the right price, customers will use as much
capacity as we can provide.
Two primary consequences

This has two primary consequences. First, the fixed networks
will remain competitive, where there is already an infrastructure,
as fixed networks are superior to mobile for communication
between fixed locations with multiple users, such as homes and
offices, requiring high-speed and transmission of large data
volumes.
Second, in order to cater for the exploding volumes of data,
we need to develop our business model to secure our future
profitability and to be able to continue investing in expanding
our networks, mobile as well as fixed.
We will move in the same direction as utilities, by charging for
the network connection and for each of the services required,
such as voice, broadband and IPTV. In addition to this, a
variable fee for the consumption will be added. This is based on
the assumption that low volume users are not willing to
subsidize high volume users or pay for services they do not
require.
In addition to providing a world-class customer experience,
these will be our primary challenges as we enter the new
decade.
Entering a new decade

As we close 2009, we also leave the first decade of the
st
21 century behind.
In this period, TeliaSonera expanded eastward into new
markets with growing economies and populations, and low
mobile penetration.
We are now present in 20 countries with more than 48 million
subscriptions in majority-owned operations and close to
100 million in our associated companies. This means that more
than 100 million new subscribers have gained access to
telecommunication services and the internet since Telia and
Sonera were merged in late 2002.
Telecommunication services have become a necessity

In the same period, telecommunication services have become a
basic necessity for people in their everyday lives. Society is
being digitalized as we are constantly online, working from
multiple locations, engaging in e-commerce, enjoying interactive entertainment and connecting to social networks on the
internet.
The introduction of 3G services, rapid development of telecommunication networks and the development of new devices,
such as computers with integrated SIM cards and more
advanced and user-friendly mobile phones have all contributed
to this trend.
Well positioned for the future

TeliaSonera is a well positioned and financially strong
company, with motivated and competent employees. Add to
that a growing number of customers and improving customer
satisfaction. This makes me convinced that we have a bright
future ahead of us.
Stockholm, March 9, 2010
Lars Nyberg
President and CEO
Markets and Brands
Markets and Brands

Country
Trademark
Ownership
(percent)
Service
No. of
Subscriptions
(thousands)
Market
Position
Market
Share
(percent)
Main
Competitors
Logotypes
Majority-owned companies
Sweden
Telia, Halebop
100
Mobile
5,666
42
Telia
100
Broadband
1,125
42
Telia
100
3,762
66
Sonera,
TeleFinland
Sonera
100
Fixed Voice
incl. VoIP
Mobile
2,874
37
Elisa, DNA
100
Broadband
458
32
Sonera
100
Fixed Voice
incl. VoIP
325
28
Elisa, DNA,
Welho
Elisa, Finnet
NetCom, Chess
100
Mobile
1,658
28
Telenor, Tele2
NextGenTel
100
Broadband
223
15
NextGenTel
100
48
Telia, Call me
Telia, Stofa,
DLG Tele
100
100
Fixed Voice
(VoIP)
Mobile
Broadband
Telenor, Get,
Tele2
Telenor, Ventelo
1,460
194
3
3
19
10
TDC, Telenor, 3
TDC, Telenor
Telia, Call me,

DLG Tele
100
Fixed Voice
incl. VoIP
214
Omnitel, Ezys
100
Mobile
1,991
40
Bit GSM, Tele2
TEO
64.9
Broadband
313
50
TEO
64.9
726
95
Latvia
LMT, Okarte,
Amigo
60.3
Fixed Voice
incl. VoIP
Mobile
1,042
43
Balticum TV,
Vinita,
Mikrovisatos
Eurocom SIP,
Cubio
Tele2, Bit Latvia
Estonia
EMT, Diil
Elion
100
100
Mobile
Broadband
766
182
1
1
47
53
Tele2, Elisa
Starman, STV
Elion
100
365
80
Starman, Elisa
Spain
Yoigo
76.6
Fixed Voice
incl. VoIP
Mobile
1,506
Kazakhstan
Kcell
51
Mobile
7,165
49
Telefnica,
Vodafone, Orange
VimpelCom
Azerbaijan
Azercell
51.3
Mobile
3,847
58
Bakcell, Azerfon
Uzbekistan
UCell
94
Mobile
5,074
31
MTS, VimpelCom
Tajikistan
Tcell4
Mobile
1,523
34
Georgia
Geocell
60
59.4
100
Mobile
1,892
46
Moldova
Moldcell
100
Mobile
660
28
Babilon Mobile,
VimpelCom
Magticom,
VimpelCom
Orange
80
Mobile
2,202
35
NTC
100
Mobile
195
194
565
1
1
48
75
Finland
Norway
Denmark
Lithuania
Nepal5
Cambodia
Ncell
5
Star-Cell
Tele2, Telenor,
3
Telenor, Com
Hem
Tele2, Telenor,
Com Hem
TDC, Telenor
Mobitel, TMIC
Associated companies
Latvia
Lattelecom
Lattelecom
49
49
Russia
MegaFon
43.8
Broadband
Fixed Voice
incl. VoIP
Mobile
50,542
24
Balticom TV, Izzi

Telecom Baltija,
Teledialogs SIA
MTS, VimpelCom
Turkey
Turkcell
38.0
Mobile
36,000
56
Vodafone, Avea
Ukraine6
Life
Mobile
11,800
22
Belarus6
Life
Mobile
800
Kyivstar, MTS,
VimpelCom
Velcom, MTS
In Broadband and Fixed Voice TeliaSoneras market share estimate is based on

the share of revenues. In Mobile the market share is based on the number of
subscriptions except for subsidiaries in Eurasia where it is based on interconnect
traffic.
TeliaSonera owns 50 percent of DLG Tele and controls the company.
For Kazakhstan, Azerbaijan, Georgia and Moldova, the ownership percent
indicates Fintur Holdings B.V.s ownership in the four companies. TeliaSonera holds
directly and indirectly 74 percent in Fintur Holdings.
Comprising Indigo Tajikistan (60 percent) and Somoncom (59.4 percent).

For Nepal and Cambodia the ownership percent indicates TeliaSonera Asia Holding
B.V.s ownership. TeliaSonera holds 51 percent in TeliaSonera Asia Holding B.V.
6
Turkcells subsidiaries in Ukraine and Belarus, in which Turkcell holds 55 percent and
80 percent, respectively.
TeliaSonera reports its financial result by business area segments Mobility Services, Broadband Services, Eurasia and
Other operations. The business areas are based on business
units that in most cases are country organizations, and for which
certain financial information is reported. The area Other operations includes the units Other Business Services, TeliaSonera
Holding and Corporate functions, which are all reported collectively. TeliaSonera has corporate functions for Communication,
Finance (including M&A and Sourcing), HR, Internal Audit, IT
and Legal.
Make it happen
We make decisions to drive development and change.
Planning and fast implementation are crucial. We foster a
lively business climate where everyone can contribute, and
we make use of our employees competence and commitment. Our customers should experience that it is easy and
rewarding to do business with us, and recognize that we
deliver on our promises.
World-class Service Company

To build a world-class service company
Vision and Strategy

Mission
TeliaSoneras mission is to provide network access and telecommunication services that help people and companies communicate in an easy, efficient and environmentally friendly way.
We create value by focusing on delivering a world-class customer experience, securing quality in our networks and achieving a best-in-class cost structure. TeliaSonera is an international
group with a global strategy, but wherever we operate we act as
a local company.
Overall strategy
TeliaSonera's overall strategy is to deliver products and services
to our different customer segments based on a deep understanding of present and future customer needs.
To create shareholder value through sustainable and improved
profitability and cash flows, we will deliver our services in a costeffective and sustainable manner.
Vision
TeliaSoneras vision is to be a world-class service company,
recognized as an industry leader. We are proud of being pioneers of the telecom industry, a position we have gained by
being innovative, reliable and customer friendly.
We act in a responsible way, based on a firm set of values and
business principles.
Our services form a major part of peoples daily lives for
business, education and pleasure.
Thereby, we contribute to a world with better opportunities.
Nordic and Baltic markets focus on margins and

cash flow
The Nordic and Baltic markets are mature markets with high
mobile penetration. Here TeliaSonera has a leading market
position. The aim is to grow in line with the markets, to take
advantage of the increased growth in mobile data and to
maintain profitability.
The Nordic and Baltic markets are exposed to price pressure
caused by intense competition and regulatory intervention. In
this environment operational efficiency is a top priority. TeliaSonera strives to improve efficiency continuously in order to be
able to develop new mobile and IP-based services.
Shared values
Our shared values form the foundation of our everyday work.
They are:
Add Value
The key to adding value lies in being customer focused and
business minded. Being innovative and acting as pioneers is
part of our heritage. We strive to share knowledge and collaborate in teams and across borders, as well as use our resources efficiently. We take ownership, follow up and give
feedback to ensure that we foster simple and sustainable
solutions that add value to our customers.
Our strategy in the Nordic and Baltic markets is to focus on:
Strong growth in mobile data
Migration to IP-based services
Margins and cash flow
Eurasia growth and high margins

TeliaSonera aims to expand in Eurasia and the surrounding
region. Therefore we aim to increase ownership in core holdings
and make complementary acquisitions within our existing
footprint.
The focus is on markets with low mobile penetration,
reasonably sized populations and growing economies where we
can leverage our management experience.
In Eurasia, the mobile penetration is lower than in TeliaSoneras other markets and the fixed networks are not as
developed. These countries therefore must rely on the mobile
networks. This creates a great potential for TeliaSonera.
Show respect
We show trust, courage and integrity. Our employees knowledge and diversity are highly valued, and we are all responsible for creating a good working climate. We treat
others the way we want to be treated, in a professional and
fair manner. Customer privacy and network integrity are
carefully protected, and we always act in the best interest of
our customers and the company.
sequently, Telia raised the price for fixed telephony in Sweden

on April 14, 2009. The increase was the first for fixed telephony
subscriptions since 2001.
TeliaSonera introduced new, differentiated pricing for mobile
broadband in Sweden on March 23, 2009, and in Norway on
March 26, in order to better reflect varying levels of customer
usage.
On November 11, 2009, TeliaSonera announced that it had
agreed with Altimo to combine the ownership interests by contributing their respective direct and indirect interests in Turkcell
and MegaFon into a new company. The new company will be
established in a western jurisdiction and listed on the New York
Stock Exchange. The purpose is to create a leading international
telecom operator, with over 90 million subscriptions in Russia,
Turkey and the CIS countries, and with well functioning
corporate governance. The agreement between TeliaSonera
and Altimo is legally binding, but the transaction is subject to
agreement on definitive documentation and regulation
approvals.
TeliaSonera has continued to be in the forefront of adopting
new technology and introducing new services. In December
2009, TeliaSonera opened up the worlds first commercial 4G
networks in the city centers of Stockholm and Oslo. In 2010, the
4G roll-out will continue and investments in fixed network will
continue through selective increase in fiber and IP investments
within Broadband Services.
The employee satisfaction and commitment improved and for
the second year in a row there was significant progress. TeliaSonera reached the highest level since measurements started in
2004.
Our strategic priorities for Eurasia in the coming years are:

Strengthening and creating leading market positions
Securing high quality networks and services
Achieving balanced growth and cost control
Providing new services like mobile broadband
Securing strong corporate governance and risk management
Spain development of Yoigo

In the Spanish market TeliaSonera aims, together with its local
partners, to create an efficient low-cost mobile operator with a
market position that achieves sustainable strong profits and cash
flows and thereby grow the value of the operation.
Data traffic increases more than customers

Our strategy is built upon the assumption that data and voice
traffic increases more than customers and there is an unlimited
demand for bandwidth. This has two consequences:
Fixed networks remain competitive in regions where fixed

networks already exist with strong growth in new services
such as IPTV, video-on-demand and IP-based broadband.
The pricing model will evolve. We will move from a voice

based price model to introducing charging for access,
consumption and speed.
Risks and Risk Management

TeliaSonera operates in several geographic markets and with a
broad range of products and services in the highly competitive
and regulated telecommunications industry. As a result, TeliaSonera is subject to a variety of risks and uncertainties. TeliaSonera has defined risk as anything that could have a material
adverse effect on the achievement of TeliaSoneras goals. Risks
can be threats, uncertainties or lost opportunities relating to
TeliaSoneras current or future operations or activities.
TeliaSonera has an established risk management framework
in place to regularly identify, analyze, assess, and report business and financial risks and uncertainties, and to mitigate such
risks when appropriate. Risk management is an integrated part
of TeliaSoneras business planning process and monitoring of
business performance. Main risks relate to industry and market
conditions, operations and strategic activities, associated companies and joint ventures, ownership of TeliaSonera shares,
financial management and financial reporting. Risk and uncertainties related to the business and to shareholder issues are
described in Note C35 and financial risks in Note C27 to the
consolidated financial statements. The control environment and
risk management related to internal control over financial reporting are described in the Corporate Governance Report.
Corporate Responsibility related risks are described in the
Corporate Responsibility Report.
SEK in millions, except earnings per

share and margins
Net sales
Addressable cost base
EBITDA excluding non-recurring items
Margin (%)
Depreciation, amortization and
impairment losses
Income form associated companies and
joint ventures
Non-recurring items, within EBITDA
Operating income
Financial income and expenses, net
Income taxes
Net income
Attributable to:
Shareholders of the parent company
Minority interest in subsidiaries
Earnings per share (SEK)
Operating income excluding nonrecurring items
Margin (%)
Development in 2009
During 2009 net sales in local currencies and excluding acquisitions were flat, whilst EBITDA was the highest ever reported at
SEK 36.7 billion (SEK 33.0 billion in 2008). Net income attributable to the owners of the parent company was SEK 18.9 billion
(19.0) and earnings per share SEK 4.20 (4.23). Compared to
2008, free cash flow improved 50 percent to SEK 17.0 billion
(11.3).
For the business units in the Baltics the economic recession
had a severe negative impact on net sales, however they were
successful in defending margins throughout the year.
In Eurasia profitability margins improved and market positions
were defended or improved. Network build-out continued with
focus on Nepal and Uzbekistan, which supported growth in markets with lower mobile penetration.
In March 2009, TeliaSoneras Swedish infrastructure company
Skanova Access announced higher prices for access to the
copper network following a change in the price regulation. Con-
Change,
%
2009
109,161
33,568
36,666
33.6
12,932
2008
103,585
33,859
32,954
31.8
12,106
8,015
9,096
12
1,425
30,324
2,710
6,334
21,280
1,296
28,648
2,237
4,969
21,442
+10
+6
+21
+27
1
18,854
2,426
19,011
2,431
1
0
4.20
4.23
31,679
30,041
29.0
29.0
+5
1
+11
+7
+5
For details of addressable cost base, see Expenses below.

EBITDA is an abbreviation for Earnings Before Interest, Tax, Depreciation and
Amortization. TeliaSonera defines EBITDA as Operating income before Depreciation, amortization and impairment losses, and before Income from associated
companies and joint ventures.
For details of non-recurring items, see Non-recurring items below.
Net sales
SEK in millions
Mobility Services
Broadband Services
Eurasia
Other operations
Eliminations of internal
sales
Group
2009
51,077
43,342
14,866
5,561
5,685
Expenses
SEK in millions
Goods and services purchased
Interconnect and roaming
expenses
Organic
local
curChange,
rency
SEK Change, change,
2008 million
%
%
48,673 +2,404
+5
2
42,625
+717
+2
3
13,204 +1,662
+13
+5
4,906
+655
+13
+5
5,823
138
2
109,161 103,585
+5,576
+5
Net sales increased 5.4 percent to SEK 109,161 million

(103,585). Net sales in local currencies and excluding acquisitions decreased 0.3 percent. The positive effect of acquisitions
was 1.1 percent and exchange rate fluctuations 4.6 percent.
In Mobility Services, net sales rose 4.9 percent to SEK 51,077
million (48,673). Net sales in local currencies and excluding
acquisitions decreased 1.6 percent. The positive effect of acquisitions was 0.3 percent and exchange rate fluctuations 6.2 percent.
In Broadband Services, net sales increased 1.7 percent to
SEK 43,342 million (42,625). Net sales in local currencies and
excluding acquisitions decreased 3.1 percent. The positive effect
of acquisitions was 0.4 percent and exchange rate fluctuations
4.4 percent.
In Eurasia, net sales rose 12.6 percent to SEK 14,866 million
(13,204). Net sales in local currencies and excluding acquisitions
increased 5.0 percent. The positive effect of acquisitions was
5.4 percent and exchange rate fluctuations 2.2 percent.
The number of subscriptions rose by 12.7 million to 147.6 million. The number of subscriptions in the majority-owned operations rose to 48.5 million and in the associated companies to
99.1 million.
Change,
SEK Change,
%
2009
2008 million
16,625 16,016
609
+4
17,307 16,663
644
+4
Network capacity expenses

Change in inventories
Personnel expenses
Marketing expenses
Other expenses
Total excluding depreciation,
amortization and impairment
losses
5,038
213
33,568
14,806
6,999
11,763
72,751
4,602
56
33,859
15,056
7,423
11,380
71,195
436
157
+291
+249
+424
383
1,556
1
2
6
+3
+2
Depreciation, amortization and

impairment losses
Other operating income and
expenses
12,932 12,057
875
+7
780
389
+50
Total expenses
86,853 84,033
2,820
+3
1,169
+9
Cost of goods sold consist of goods and services purchased, interconnect and
roaming expenses, network capacity expenses and change in inventories.
In Broadband Services, addressable costs in local currencies

and excluding acquisitions fell 12.6 percent compared to last
year, with the Swedish and Finnish operations, driven by cost
efficiency measures, showing the largest decline, 15.9 percent in
total. In Mobility Services, addressable cost base in local currencies and excluding acquisitions decreased 2.8 percent compared
to 2008.
Personnel expenses decreased 2 percent compared to an increase in 2008 of 12 percent. While personnel costs increased in
Eurasia, where TeliaSonera is growing, the costs decreased
substantially in Mobility Services, Broadband Services and Corporate functions. In Broadband Services, the decrease was
4 percent and stemmed from most units.
Marketing expenses decreased 6 percent as a combination of
the effects from lower sales, better managed marketing activities
and deliberate temporary cuts in cost. Other costs, such as facility costs, IT, travel and consultants, also decreased, as a result
of many day-to-day activities to better manage cost and support
environment. TeliaSoneras own offerings such as conference
call services and video conferencing have been utilized to a
larger extent.
Depreciation, amortization and impairment losses increased
7.2 percent to SEK 12,932 million (12,057), including writedowns of SEK 71 million (94) in Broadband Services related to
restructuring activities. Depreciation increased slightly in Mobility
Services due to increased CAPEX in 2008, and increased due to
currency effects in Eurasia. This was partly compensated for by
lower depreciation in Broadband Services and Other operations.
Other operating income and expenses, net, was negative at
SEK 1,169 million in 2009. The main costs related to restructuring activities.
Expenses
Cost of goods sold was SEK 39.2 billion and increased
4.9 percent compared to 2008 which was in line with net sales
development and thus the gross margin was maintained.
Regulatory changes, primarily in Sweden, Finland and
Azerbaijan, had a negative impact on gross margin whilst
sourcing activities had a positive impact.
Intensified efficiency improvement is imperative for TeliaSonera. The intention was to keep the addressable cost base for
2009 below the SEK 33.8 billion of 2008, in local currencies and
excluding acquisitions, and that the number of employees would
be somewhat below 30,000 by year-end 2009 (32,171). This
goal was successfully met as a result of major cost reductions in
the Nordic and Baltic countries and tight cost control in Eurasia.
In 2009, the addressable cost base in local currencies and excluding acquisitions decreased 6.8 percent compared to last
year.
The number of employees was 29,734 at the end of 2009. The
average number of full-time employees was 28,815 in 2009.
Restructuring costs for 2008 and 2009, reported as non-recurring items, were SEK 3.4 billion. Restructuring costs in 2009
amounted to SEK 1.8 billion. The efficiency measures affecting
2,900 employees in Sweden and Finland, as announced in February 2008, have now been completed.
Non-recurring items
Non-recurring items affecting operating income were
SEK 1,355 million (1,393), including charges of about
SEK 1,800 million (1,630) related to efficiency measures.
Non-recurring items were positively affected by SEK 282 million
as a result of the agreement with Altimo to combine the
two companies ownership interests in Turkcell and MegaFon
into a new company, as well as a capital gain of SEK 141 million
from the sale of SmartTrust within TeliaSonera Holding.
The following table presents non-recurring items for 2009 and
2008. These items are not included in EBITDA excluding nonrecurring items or in Operating income excluding non-recurring
items. These items are included in the total results for TeliaSonera and for each of the business areas.
SEK in millions
Within EBITDA
Restructuring charges, synergy
implementation costs, etc.:
Mobility Services
Broadband Services
Eurasia
Other operations
Within Depreciation, amortization
and impairment losses
Impairment losses, accelerated
depreciation:
Mobility Services
Broadband Services
Within Income from associated
companies and joint ventures
Capital gains
Within Financial net
Penalty interest income
Total
2009
1,425
2008
1,296
452
1,158
282
97
71
397
1,189
290
97
71
141
3
94
141
1,355
290
290
1,103
negatively compared to the previous year. Recognized deferred

tax assets decreased to SEK 11,177 million (13,206) due to
utilization but also from currency effects.
Minority interests in subsidiaries were SEK 2,426 million
(2,431), of which SEK 1,905 million (1,705) related to operations
in Eurasia and SEK 471 million (692) to Eesti Telekom, LMT in
Latvia and TEO in Lithuania.
Net income attributable to owners of the parent company decreased to SEK 18,854 million (19,011) and earnings per share
to SEK 4.20 (4.23) due to lower income from associated companies and higher income taxes.
Financial Position, Capital Resources

and Liquidity
Financial Position
SEK in millions
Assets
Goodwill and other intangible
assets
Property, plant and equipment
Investments in associated
companies and joint ventures,
deferred tax assets and other
financial assets
Total non-current assets
Current assets (except cash and
cash equivalents)
Cash and cash equivalents
Total current assets
Non-current assets held-forsale
Earnings
EBITDA, excluding non-recurring items, increased 11.3 percent
to SEK 36,666 million (32,954). The increase in local currencies
and excluding acquisitions was 6.0 percent. The EBITDA
increase was driven by efficiency measures, mainly in Sweden
and Finland, and improvement in profitability in Eurasia. The
margin rose to 33.6 percent (31.8).
EBITDA excluding nonrecurring items,
SEK in millions
Mobility Services
Broadband Services
Eurasia
Other operations
Eliminations
Group
Change,
SEK Change,
%
2008 million
2009
14,961
13,922
7,469
314
0
36,666
14,399
11,705
6,553
333
36
32,954
+562
+2,217
+916
19
+36
+3,712
+4
+19
+14
6
+11
Operating income, excluding non-recurring items, rose to

SEK 31,679 million (30,041) mainly due to higher EBITDA.
Income from associated companies decreased 11.9 percent to
SEK 8,015 million (9,096), mainly driven by currency fluctuations
and lower contribution from Turkcell.
Operating income
excluding non-recurring
items, SEK in millions
Mobility Services
Broadband Services
Eurasia
Other operations
Eliminations
Group
2009
10,536
8,649
12,827
351
18
31,679
2008
9,926
6,568
13,731
184
0
30,041
Change,
SEK
million
+610
+2,081
904
167
18
+1,638
Change,
%
2009
Change,
SEK Change,
%
2008 million
100,239 100,968
729
61,946
62,265
724
1,416
1
2
222,310 225,179
24,872 27,254
2,869
2,382
1
9
11,826 +10,662
39,080 +8,280
27
27
+90
+21
61,222
60,849
22,488
47,360
0
Total assets
269,670 264,286
+5,384
+2
Equity and liabilities

Shareholders equity
Minority interests
Total equity
Long-term borrowings
Other long-term liabilities
Total non-current liabilities
Short-term borrowings
Other current liabilities
Total current liabilities
135,372 130,387
7,127 11,061
142,499 141,448
63,664 54,178
27,214 27,159
90,878 81,337
8,169 11,621
28,124 29,880
36,293 41,501
+4,985
3,934
+1,051
+9,486
+55
+9,541
3,452
1,756
5,208
+4
36
+1
+18
+0
+12
30
6
13
Total equity and liabilities
269,670 264,286
+5,384
+2
The financial position remained relatively stable year-on-year.

Goodwill and other intangible assets decreased in 2009. The
acquisition of shares in Eesti Telekom and investments in licenses increased the value while currency effects had a negative impact of SEK 1.8 billion.
Property, plant and equipment increased through capital expenditures (CAPEX) of SEK 11.5 billion and decreased due to
negative exchange rate differences of SEK 3.2 billion (4.8).
Depreciation and impairment losses were SEK 10.1 billion.
The carrying value of associated companies and joint ventures
was SEK 42.5 billion (39.5). The value increased due to income
from these companies (SEK 8.0 billion), and was partly offset by
dividends received from associated companies, mainly Turkcell,
(SEK 1.9 billion) and by negative exchange rate differences
(SEK 3.1 billion).
Deferred tax assets as well as deferred tax liabilities decreased due to currency effects. Utilized tax losses further reduced deferred tax assets while accelerated depreciation, mainly
related to the Swedish operations, and additional deferral of
withholding taxes in retained earnings in foreign subsidiaries and
associated companies boosted deferred tax liabilities. In total,
the 2008 net deferred tax asset of SEK 1.9 billion turned into a
net deferred tax liability of SEK 2.0 billion as of year-end 2009.
+6
+32
7
+91
+5
Financial net, tax and minority interest

Financial items totaled SEK 2,710 million (2,237), of which
SEK 2,346 million (2,110) related to net interest expenses.
The comparable period last year included a positive one-time
interest payment of SEK 290 million related to a court decision
on historical interconnect fees in Sweden.
Income taxes amounted to SEK 6,334 million (4,969). The
effective tax rate was higher than last year at 22.9 percent
(18.8). The main differences relate to positive one-off items of
approximately SEK 1,050 million in the fourth quarter of 2008
and the negative impact of lower income from associated companies in 2009. Higher dividends from AS Eesti Telekom in Estonia increased the distribution tax which also impacted taxes
10
expenditure) increased 50 percent in 2009 to a total of SEK

17.0 billion.
Cash used in other investing activities consists of acquisitions,
divestments, changes in loans receivable and in short term investments, and repayments from or additional contributions to
pension funds. Net cash paid for acquisitions was SEK 5.1 billion
(4.1), and net cash used for granting loans was SEK 0.4 billion
(0.1). In 2009, net cash in other investing activities was positively
impacted by a repayment of SEK 0.9 billion from TeliaSoneras
pension fund in Sweden.
Net cash used in financing activities in 2009 includes dividends of SEK 11.2 billion, of which paid to shareholders of the
parent company SEK 8.1 billion (18.0) and to the minority shareholders SEK 3.1 billion (1.9). Net new borrowings were SEK 8.6
billion (15.5).
See the Consolidated Statements of Cash Flows and related
notes to the consolidated financial statements for further details.
Net working capital (inventories and non-interest-bearing receivables, less non-interest-bearing liabilities) remained negative
at SEK 2.6 billion (3.1).
Shareholders equity increased to SEK 135.4 billion (130.4),
due to net income attributable to shareholders of SEK 18.9 billion (19.0) and negative exchange rate differences of SEK
5.9 billion (12.4), and dividends of SEK 8.1 billion paid to shareholders in April 2009. The equity/assets ratio, adjusted for proposed dividends, remained stable at 49.1 percent (50.5).
Net debt decreased from SEK 48.6 billion to SEK 46.2 billion.
Dividend payments had a negative impact of SEK 11.2 billion.
The net debt/EBITDA ratio decreased to 1.26 (1.48) and the net
debt/equity ratio decreased to 34.9 percent (36.5).
See the Consolidated Statements of Financial Position, Consolidated Statements of Changes in Equity and related notes to
the consolidated financial statements for further details.
Credit facilities
TeliaSonera believes that its bank credit facilities and openmarket financing programs are sufficient for the present liquidity
requirements. TeliaSoneras cash and short-term investments
totaled SEK 22.8 billion at the end of the year (12.9). In addition,
the total available unutilized amount under committed bank
credit facilities and overdraft facilities was SEK 13.1 billion at
year-end (14.1).
TeliaSoneras credit ratings remained unchanged during 2009.
The rating from Moody's Investors Service is A3 for long-term
borrowing and Prime-2 for short-term borrowing, with a Stable
outlook reference. The rating from Standard & Poor's Ratings
Services is A- for long-term borrowing and A2 for short-term
borrowing, also with a Stable outlook reference.
TeliaSonera generally seeks to arrange its financing through
the parent company TeliaSonera AB. The primary means of
external borrowing are described in Notes C21 and C27 to the
consolidated financial statements. During 2009 TeliaSonera AB
issued some SEK 18.5 billion equivalent in the debt capital
markets under its EMTN (Euro Medium Term Note) program.
Most of the new funding was denominated in EUR and all of it
was issued on a long-term basis contributing to an extension of
the average time to maturity of TeliaSonera AB's overall debt
portfolio to approximately 5 years (4 years at the end of 2008).
At the end of 2009 TeliaSonera AB had no Commercial
Papers outstanding.
Outlook for 2010

Net sales in local currencies and excluding acquisitions are expected to be somewhat higher in 2010 compared to 2009. Currency fluctuations may have a material impact on reported figures in Swedish krona.
TeliaSonera will continue to invest in future growth as well as
in the quality of networks and services. We expect the addressable cost base in 2010 to be in line with the SEK 33.6 billion of
2009, in local currencies and excluding acquisitions. The
EBITDA margin in 2010 is expected to be somewhat higher
compared to 2009, excluding non-recurring items.
Capital expenditures will be driven by continued investments in
broadband and mobile capacity as well as in network expansion
in Eurasia. The CAPEX-to-sales ratio is expected to be somewhat below 15 percent in 2010.
Ordinary Dividend to Shareholders

For 2009, the Board of Directors proposes to the Annual General
Meeting (AGM) an ordinary dividend of SEK 2.25 (1.80) per
share, totaling SEK 10.1 billion, or 54 percent of net income
attributable to owners of the parent company (pay-out ratio).
Cash Flow
SEK in millions
Cash from operating activities
Cash used in capital expenditure
Free cash flow
Cash used in other investing
activities
Cash flow before financing
activities
Cash used in financing activities
2009
30,991
13,967
17,024
3,660
Change,
SEK Change,
2008 million
%
27,086 +3,905
+14
15,758 +1,791
11
11,328 +5,696
+50
3,876
+216
6
13,364
7,452
+5,912
Dividend
Dividend per share (SEK)
Total dividend (SEK billion)
Pay-out ratio (%)
2,568
4,359
+1,791
41
11,826
7,802
+4,024
+52
10,796
134
3,093
931
Cash and cash equivalents,

closing balance
22,488
+7,703
1,065
11,826 +10,662
114
+90
2008
1.80
8.1
42.5
Change,
%
25
25
As proposed by the Board of Directors.
The Board of Directors proposes that the final day for trading in
shares entitling shareholders to dividend be set for April 7, 2010,
and that the first day of trading in shares excluding rights to dividend be set for April 8, 2010. The recommended record date at
Euroclear Sweden for the right to receive dividend will be
April 12, 2010. If the AGM votes to approve the Boards
proposals, the dividend is expected to be distributed by
Euroclear Sweden on April 15, 2010.
According to its dividend policy, TeliaSonera shall target a
solid investment grade long-term credit rating (A to BBB+) to
secure the companys strategically important financial flexibility
for investments in future growth, both organically and by acquisitions. The ordinary dividend shall be at least 50 percent of net
income attributable to owners of the parent company. In addition, excess capital shall be returned to shareholders after the
Board of Directors has taken into consideration the companys
cash at hand, cash flow projections and investment plans in a
medium term perspective, as well as capital market conditions.
The Board of Directors has made an assessment according to
Chapter 18 Section 4 of the Swedish Companies Act, to assess
+79
Cash and cash equivalents,

opening balance
Net cash flow for the period
Exchange rate differences
2009
2.25
10.1
53.6
Cash flow from operating activities increased 14 percent in 2009

to SEK 31.0 billion. The cash flow was positively affected by
higher EBITDA, higher dividends received from associated companies and lower cash payments for taxes. Payment for restructuring provisions and currency effects had a negative impact on cash flow. Cash used in capital expenditure (cash
CAPEX) decreased by 11 percent, mainly in Broadband Services and lower license costs in Mobility Services. As a result,
free cash flow (cash flow from operating activities less capital
11
Net sales
whether the proposed dividend is justified. The Board of Directors assesses that:
The parent companys restricted equity and the Groups total

equity attributable to the shareholders of the parent company, after the distribution of profits in accordance with the
proposal, will be sufficient in relation to the scope of the parent companys and the Groups business
The proposed dividend does not jeopardize the parent companys or the Groups ability to make the investments that
are considered necessary and that
The proposal is consistent with the established cash flow

forecast under which the parent company and the Group are
expected to manage unexpected events and temporary
variations in cash flows to a reasonable extent.
The full statement by the Board of Directors on the same will be
included in the Annual General Meeting documents. See also
Proposed Appropriation of Earnings.
Net sales rose 4.9 percent to SEK 51,077 million (48,673). In

local currencies and excluding acquisitions net sales declined
1.6 percent. The positive effect from exchange rate fluctuations
was 6.2 percent and from acquisitions 0.3 percent. Overall subscription growth and higher usage of mobile broadband and data
drove sales higher, but did not compensate for price competition
and regulatory interventions, including interconnect and roaming
pricing. Non-voice share of net sales increased to 19.8 percent
in 2009 (17.1).
The businesses in Sweden and Spain grew during the year. In
Sweden, growth came from continued increase in voice and
mobile broadband subscriptions as well as equipment sales,
largely driven by iPhone. Strong subscriber intake generated
growth in Spain. Net sales in Spain were negatively impacted by
approximately SEK 120 million due to a reclassification of subsidies for equipment in own sales channels. Several markets were
negatively impacted by the weak economy. In Finland, net sales
decreased in local currency due to lower voice usage and lower
prices, which were only partly offset by growth for mobile data
services in the consumer segment. In Norway, sales declined
due to loss of the national roaming agreement with Network
Norway in the fourth quarter of 2008 and mobile termination
price regulation. In Denmark, sales declined due to decreasing
customer stock and lower ARPU. Sales in the Baltic countries
were significantly hit by the economic downturn and declined
more than 20 percent on average in local currencies.
Proposal for Authorization

In order to provide TeliaSonera with an additional instrument to
adjust the companys capital structure, the Board of Directors
proposes that the Annual General Meeting authorizes the Board
of Directors to repurchase a maximum of 10 percent of the companys total number of outstanding shares, with the intention of
cancelling repurchased shares.
Earnings
EBITDA, excluding non-recurring items, rose to SEK 14,961
million (14,399). The margin declined 0.3 percentage points to
29.3 percent (29.6). The sales erosion in several markets put
pressure on the margins but this was largely compensated for by
cost savings in all Nordic and Baltic markets. The continued
growth of the subscriber base in Spain also put pressure on
earnings in the year. In Sweden the margin improved as a result
of revenue growth in combination with cost reductions. Also
Finland improved the margin in 2009 as a result of cost savings.
The growth in EBITDA flowed through to operating income
which improved to SEK 10,084 million (9,526). Increased depreciation was offset by improved earnings from associates. Nonrecurring expenses amounted to SEK 452 million (400), primarily
related to restructuring charges.
Business Areas Development 2009

Mobility Services
Business area Mobility Services provides mobility services to the
consumer and enterprise mass markets. Services include mobile
voice and data, mobile content, WLAN Hotspots, mobile broadband, mobile/PC convergence and Wireless Office. The business area comprises mobile operations in Sweden, Finland,
Norway, Denmark, Lithuania, Latvia, Estonia and Spain.
Despite the weak economic development in 2009, the strong
demand for mobile broadband and devices, such as Apple
iPhone, continued. Mobile data traffic in the Nordic and Baltic
operations increased by close to 200 percent while the number
of mobile broadband subscriptions rose by more than 60 percent
during 2009. In December 2009, TeliaSonera opened up the
worlds first commercial 4G networks in the city centers of Stockholm and Oslo. Voice revenue, and particularly international
roaming, showed a weaker development than previous years as
a result of the economic downturn. Intense competition together
with regulatory intervention continued to put downward pressure
on prices and margins in all markets. The growing need for
higher network speeds and capacity required by mobile broadband and data services continued driving investments in the
industry.
SEK in millions, except margins,

operational data and changes
Net sales
EBITDA excl. non-recurring items
Margin (%)
Operating income
Operating income excl. non-recurring
items
CAPEX
MoU
ARPU, blended (SEK)
Churn, blended (%)
Subscriptions, period-end (thousands)
Employees, period-end
2009
51,077
14,961
29.3
10,084
10,536
2008
48,673
14,399
29.6
9,526
9,926
3,867
191
216
27
16,963
7,506
4,467
195
223
27
15,900
8,339
CAPEX
CAPEX decreased to SEK 3,867 million (4,467) mainly due to a
one-off payment of SEK 563 million for the acquisition of a 2.6
GHz license in Sweden in 2008. CAPEX included continued
investments in network coverage and capacity, mainly for 3G
(UMTS) networks. Investments in 2G (GSM) networks declined
in the year. 4G (LTE) networks build-out started in Sweden and
Norway during the year. The CAPEX-to-sales ratio was 7.6 percent (9.2).
Change,
%
+5
+4
+6
+6
13
2
3
+7
10
Additional segment information available at www.teliasonera.com/ir.
12
Net sales
SEK in millions,
except margins and changes
Net sales
of which Sweden
of which Finland
of which Norway
of which Denmark
of which Lithuania
of which Latvia
of which Estonia
of which Spain
Margin (%), total
Margin (%), Sweden
Margin (%), Finland
Margin (%), Norway
Margin (%), Denmark
Margin (%), Lithuania
Margin (%), Latvia
Margin (%), Estonia
Margin (%), Spain
2009
51,077
14,114
10,540
8,977
7,278
2,220
2,286
2,080
4,086
14,961
29.3
38.8
32.5
35.2
19.6
34.6
40.0
36.5
neg
Net sales increased 1.7 percent to SEK 43,342 million (42,625).

The decline in organic sales was 3.1 percent in local currencies.
The positive effect from exchange rate fluctuations was 4.4 percent and from acquisitions 0.4 percent. The continued decline for
traditional fixed line services was partly compensated for by
growth in IP-based services. IP services made up 35 percent of
total sales in 2009 (31). Most markets were impacted by the loss
of PSTN customers and by migration to lower margin IP services. In addition the weak economic development contributed to
the decrease in sales. Even though the Baltic operations in
Broadband Services were not as impacted by the economic
downturn as Mobility Services, sales in the Baltic markets weakened during the fourth quarter. Growth in Wholesale business
and the acquisition of Tele2 customers in Norway partly compensated for declining sales in other markets.
Change,
2008
%
48,673
+5
13,334
+6
9,917
+6
9,433
5
6,845
+6
2,722
18
2,635
13
2,262
8
2,050
+99
14,399
+4
29.6
37.1
31.0
35.3
20.1
34.6
43.0
38.1
neg
Earnings
EBITDA, excluding non-recurring items, increased to
SEK 13,922 million (11,705) and the margin to 32.1 percent
(27.5). The improved earnings were generated by cost efficiency
measures across all businesses. Gross margin improved as a
result of lower prices from subcontractors as well as improved
efficiency in fault handling. Personnel expenses declined as the
number of employees decreased to 13,061 (14,837). Savings
have also been achieved through lower marketing costs and
other expenses.
Operating income improved to SEK 7,420 million (5,285). The
earnings growth for EBITDA was slightly offset by increased
depreciation and decline in earnings from associates (Lattelecom). Non-recurring expenses totaled SEK 1,229 million (1,283),
mainly related to provisions for restructuring measures.
Broadband Services
Business area Broadband Services provides mass-market services for connecting homes and offices. Services include broadband over copper, fiber and cable, IPTV, voice over internet,
home communications services, IP-VPN/Business internet,
leased lines and traditional telephony. The business area operates the group common core network, including the data network
of the international carrier business. The business area comprises operations in Sweden, Finland, Norway, Denmark,
Lithuania, Latvia (49 percent), Estonia and international carrier
operations. On July 1, 2009, TeliaSoneras subsidiary NextGenTel acquired the broadband and VoIP business of Tele2 Norge.
During 2009 the loss of fixed-voice subscriptions continued but
was partly compensated for by a strong demand for bundled
offerings including IPTV and VoIP subscriptions. DSL services
grew during the year but growth was negatively affected by the
market saturation, competition and the promotion of mobile
broadband. The consumer segment continued to show increasing net sales in local currencies in Sweden and in Finland. Efforts to reduce operating expenses significantly improved profitability and cash flow improved more than 50 percent compared
to last year. Investments were directed to the backbone and
transmission networks and broadband access networks to support services that require higher bandwidth, such as IPTV and
broadband.

Net sales
Margin (%)
Operating income
items
CAPEX
Broadband ARPU (SEK)
Broadband
Fixed voice
Associated company, total
CAPEX
CAPEX decreased to SEK 4,942 million (5,810) as efficiency
measures have also targeted capital expenses. A dominant part
of CAPEX was spent on deployment of fiber and IP based infrastructure and services. The CAPEX-to-sales ratio was 11.4 percent (13.6).
SEK in millions,
except margins and changes
Net sales
of which Sweden
of which Finland
of which Norway
of which Denmark
of which Lithuania
of which Estonia
of which Wholesale
Margin (%), total
Margin (%), Sweden
Margin (%), Finland
Margin (%), Norway
Margin (%), Denmark
Margin (%), Lithuania
Margin (%), Estonia
Margin (%), Wholesale
Change,
%
2009
2008
43,342
13,922
32.1
7,420
8,649
42,625
11,705
27.5
5,285
6,568
+2
+19
4,942
312
5,810
270
15
+16
2,348
5,212
754
13,645
2,284
5,806
777
15,410
+3
10
3
11
+40
+32
2009
2008
43,342
18,692
6,772
1,114
1,086
2,508
2,128
12,415
13,922
32.1
35.3
32.7
17.9
8.0
42.5
29.3
25.1
42,625
19,283
6,321
913
994
2,302
2,163
12,010
11,705
27.5
27.3
23.1
20.0
neg
42.7
26.7
27.9
Change,
%
+2
3
+7
+22
+9
+9
2
+3
+19
Eurasia
Business area Eurasia comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova,
Nepal and Cambodia and a shareholding of 12 percent in
Afghanistans largest operator Roshan. The business area is
also responsible for developing TeliaSoneras shareholding in
Russian MegaFon and Turkish Turkcell. The main strategy is to
create shareholder value by increasing mobile penetration and
introducing value-added services in each respective country.
As of January 1, 2009, TeliaSonera restated its historical financial information for the
fiscal years 20062008 for business area Broadband Services as well as for Other
operations. The retail chain Veikon Kone was moved from Broadband Services
Finland to Other operations. The cable-TV company Telia Stofa was moved from
Broadband Services Denmark to Other operations. In addition, the business of selling
backhaul to mobile operators, e.g. capacity to the base stations, was transferred to
Broadband Services Wholesale from Broadband Services in Sweden, Finland and
Denmark. Additional segment information available at www.teliasonera.com.
13
The business area continued to show good volume growth. The

economic downturn has not had a major effect on usage but
customers have become more price sensitive. Regulatory intervention, higher penetration and increasing competition put pressure on prices and margins in the region. In addition, the current
economic uncertainty reduces visibility ahead. Fluctuations in
exchange rates may also have an adverse effect on revenue
and margins going forward.
TeliaSonera maintained market leadership in Kazakhstan,
Azerbaijan, Tajikistan and Georgia, and improved or maintained
the positions in all other markets.

Net sales
Margin (%)
Income from associated companies
Russia
Turkey
Operating income
items
CAPEX
Subsidiaries
Associated companies
SEK in millions, except changes

Net sales
of which Kazakhstan
of which Azerbaijan
of which Uzbekistan
of which Tajikistan
of which Georgia
of which Moldova
of which Nepal
of which Cambodia
Change,
%
2009
14,866
7,469
50.2
2008
13,204
6,553
49.6
4,691
3,056
13,109
12,827
5,070
3,991
13,731
13,731
7
23
5
7
4,416
4,595
22,558
98,342
4,888
18,416
90,558
4,780
+22
+9
+2
2009
14,866
6,593
3,829
1,200
735
1,331
486
687
31
2008
13,204
6,673
3,563
496
516
1,393
420
158
10
Change,
%
+13
1
+7
+142
+42
4
+16
Associated companies Russia

MegaFon (associated company, in which TeliaSonera holds 43.8
percent) in Russia continued to demonstrate strong volume
growth and increased its subscription base by 7.0 million to 50.5
million. MegaFon increased its market share from 23 to 24 percent.
TeliaSoneras income from Russia decreased to SEK 4,691
million (5,070). Subscription growth was offset by decreased
usage and falling prices, due to weak economic development.
The result in 2009 was further negatively impacted by SEK 463
million as the Russian ruble depreciated 9.0 percent against the
Swedish krona.
+13
+14
Associated companies Turkey

Turkcell (associated company, in which TeliaSonera holds 37.3
percent, reported with a one-quarter lag) in Turkey decreased its
subscription base by 0.3 million to 36.0 million. In Ukraine, the
number of subscriptions rose by 1.1 million to 11.8 million.
TeliaSoneras income from Turkey decreased to SEK 3,056
million (3,991). Turkcells net income included a provision of
SEK 330 million related to historical interconnect disputes. The
Turkish lira depreciated 3.2 percent against the Swedish krona,
which had a negative impact of SEK 102 million.
In 2009, Turkcell distributed to its shareholders a total cash
dividend of approximately SEK 5.8 billion (TRY 1.1 billion), corresponding to 50 percent of the distributable income for the fiscal
year 2008. TeliaSoneras share was approximately SEK 1.9
billion (1.1).
Net sales
Net sales rose 12.6 percent to SEK 14,866 million (13,204).
Organic growth in local currencies was 5.0 percent. The positive
effect from exchange rate fluctuations was 2.2 percent and from
acquisitions 5.4 percent. In Kazakhstan, the largest market in the
business area, sales rose by 4.5 percent in local currency. In the
second-largest market, Azerbaijan, sales declined 8.5 percent in
local currency as a result of asymmetric pricing on interconnect
and decreased customer spending related to the economic slowdown. Operations in Uzbekistan contributed most to the overall
growth based on an increase in the subscription base of 89 percent and growing usage. Also Tajikistan reported strong growth
based on subscribers increase. In Nepal sales increased to
SEK 687 million (158, October-December 2008). Sales increased in the fourth quarter as services started to be marketed
on a larger scale, following development of the network during
the first three quarters. The non-voice share of revenues increased in all markets.
Other operations
Other operations comprise Other Business Services, TeliaSonera Holding and Corporate functions. Other Business Services is
responsible for sales and production of managed-services solutions to business customers.
SEK in millions, except changes
Earnings
Net sales
Operating income
items
CAPEX
EBITDA, excluding non-recurring items, increased 14 percent to

SEK 7,469 million (6,553) as a result of increased sales and
continued high margins. The margin increased to 50.2 percent
(49.6) due to efficiency improvements in Kazakhstan and scale
advantages in the growing business in Uzbekistan.
Operating income decreased to SEK 13,109 million (13,731).
The EBITDA improvement was offset by increased depreciation
and decreased earnings from associates. Exchange rate fluctuations had a negative impact of 6.2 percent on earnings from
associates. The decline from associates was primarily related to
Turkcell which suffered from decreased margins as well as significant one-off items during 2009.
2009
5,561
314
191
307
351
2008
4,906
333
6
106
184
781
919
Change,
%
+13
6
+91
15
Net sales increased 13.4 percent to SEK 5,561 million (4,906).

In local currencies and excluding acquisitions, net sales increased 6.3 percent.
Net sales in the cable TV company Telia Stofa was SEK 1,508
million (1,294). In local currency, net sales increased 5.4 percent. The number of subscriptions for broadband access decreased by 3,000 from the end of 2008 to 147,000, while the
number of subscriptions for cable TV increased by 8,000 to
218,000.
CAPEX
CAPEX decreased to SEK 4,416 million (4,595). CAPEX was
driven by investments in additional capacity, and to improve
coverage and maintain a high service quality in the network.
CAPEX in Nepal increased significantly and CAPEX in Uzbekistan continued on a high level as the business grew. The
CAPEX-to-sales ratio was 29.7 percent (34.8).
14
Acquisitions, Investments and

Divestitures
Environment
TeliaSonera is committed to environmentally sustainable practices in its own operations, while at the same time providing
solutions that can reduce our customers environmental impact.
The environmental impact from TeliaSonera's operations is
mainly associated with energy utilization, travel and transport,
and material usage. Adapting to different conditions in our
markets, TeliaSonera promotes environmental awareness and
invests in modern technology to improve energy efficiency and
environmental performance.
In 2009, TeliaSonera took the first steps to expand the environmental performance reporting to include also its majorityowned operations. Across the markets, TeliaSonera works towards more energy-efficient solutions in maintaining its networks
available for customers 24/7. TeliaSonera also substituted its
business travels significantly by increasing use of teleconferencing and video conferencing. In Finland and Sweden, the
number of video conference meetings tripled, travel costs decreased 43 percent and as a result of this, the CO2 emissions
were reduced by 32 percent. Increasingly, e-billing has replaced
traditional paper bills to customers, reducing TeliaSoneras use
of paper as well as transports.
TeliaSonera in Sweden does not conduct any operations
subject to environmental permits from authorities according to
the Swedish environmental legislation, chapter 9, all TeliaSonera
companies shall comply with local legal requirements as a
minimum wherever they operate.
During 2009, TeliaSonera has made a number of acquisitions

and divestitures.
On June 3, 2009, TeliaSonera sold its 24 percent shareholding in SmartTrust AB and recognized a capital gain of
SEK 141 million.
On January 30, 2009, TeliaSonera, through its subsidiary

Fintur Holdings B.V., increased its holding in Geocell to 100
percent from 97.5 percent by acquiring 2.5 percent of the
shares from the Government of Georgia.
TeliaSoneras subsidiary NextGenTel AS, the second-largest

Norwegian broadband supplier, acquired the broadband and
VoIP business of Tele2 Norge on July 1, 2009, for SEK 107
million in cash. The operations were consolidated as of the
same date.
TeliaSonera announced on October 13, 2009, that following

a successful completion of the cash offer for all outstanding
shares in AS Eesti Telekom, the shareholding of TeliaSonera increased to 97.58 percent (60.12). TeliaSonera decided
to initiate a squeeze-out process which was finalized on
January 12, 2010. TeliaSonera now controls 100 percent of
Eesti Telekom.
TeliaSonera announced on October 13, 2009, that following

a completion of the cash offer for all outstanding shares in
TEO LT, AB, TeliaSonera controlled 68.08 percent (62.94) of
the voting shares and 64.90 percent (60.00) of the companys capital.
TeliaSonera Share
Research and Development
The TeliaSonera share is listed on the NASDAQ OMX Stockholm and the NASDAQ OMX Helsinki stock exchanges. The
share rose 33.3 percent to SEK 51.85 during 2009. During the
same period, the OMX Stockholm 30 Index rose 43.7 percent
and the Dow Jones Euro Stoxx Telecommunications Index rose
6.6 percent. The highest price in 2009 was paid on December 30
and amounted to SEK 53.35. The lowest price was paid March 3
and amounted to SEK 34.40.
TeliaSonera's market capitalization was SEK 233 billion at the
end of 2009, representing 7 percent of the total market value on
the Stockholm stock exchange. In terms of market value, TeliaSonera was the third largest company on the Stockholm stock
exchange at the end of 2009 and Europe's fifth largest telecommunications operator.
The number of shareholders decreased during 2009 from
651,816 to 635,799.
Holdings outside Sweden and Finland decreased from
15.6 percent to 13.8 percent.
TeliaSoneras issued and outstanding share capital as of December 31, 2009, totaled SEK 14,369,463,081.60 distributed
among 4,490,457,213 shares. All issued shares have been paid
in full and carry equal rights to vote and participate in the assets
of the company. At the general meeting of shareholders, each
shareholder is entitled to vote for the total number of shares she
or he owns or represents. Each share is entitled to one vote.
There are no rules in either the Swedish legislation or in TeliaSonera ABs Articles of Association that would limit the possibility to transfer the TeliaSonera shares.
As of December 31, 2009, the company had two shareholders
with more than ten percent of the shares and votes: the Swedish
State with 37.3 percent and the Finnish State with 13.7 percent.
TeliaSonera is not aware of any agreements between major
shareholders of the company regarding the TeliaSonera shares.
As of December 31, 2009, TeliaSoneras pension funds and
TeliaSonera Finland Oyjs Personnel Fund held 0.05 percent
and 0.03 percent of the companys shares and votes, respectively.
The Board of Directors does not currently have any authorization by the general meeting of shareholders to issue new shares
but has the authorization to repurchase a maximum of 10 percent of the companys total number of outstanding shares.
The main focus of research and development (R&D) at TeliaSonera is to ensure our pioneer position in the telecom industry
as well as support future profitable growth and cost efficiency.
The R&D work flow focus on developing reliable, innovative and
user-friendly services based on open standards, integration of
third party solutions and cooperation with external innovation
clusters. The most important input to the R&D processes is current and forecasted market demand. To reduce risk and ensure
easy to use services a proactive engagement of end users in all
R&D phases is mandatory.
A key focus for R&D during 2009 has been world class network quality including key support of the 4G roll-outs. Effort has
also been put on developing highly ranked API (Application Program Interface) initiative for open service development enabling
third parties to access some of TeliaSoneras network assets.
Technologies, services and business models for future IP based
communication, including GSMA OneVoice and RCS initiatives,
have been important R&D areas. R&D has also supported the
broadband business by developing business models and partnerships for new emerging areas like Mobile Wallet (ticketing,
payments & ID through the Mobile), solutions for interactive
IPTV and the smart home. During the year the TeliaSonera IPTV
service has been enhanced by possibilities for high definition TV
(HDTV) and time shift TV, both enabled by the introduction of a
new harddisk and support for MPEG4 decoding of content. The
HDTV possibility is particularly useful for customers with fiberbased access.
As of December 31, 2009, TeliaSonera had approximately
520 patent families and approximately 2,050 patents and
patent applications, none of which, individually, is material to its
business.
In 2009, TeliaSonera incurred R&D expenses of SEK 1,008
million (1,178).
15
in relation to Earnings Per Share (EPS) weight 50 percent

and Total Shareholders Return (TSR) compared to a
corresponding TSR development of a pre-defined peer-group of
companies weight 50 percent. The prevalence of a long-term
variable pay program is subject to the approval of the annual
general meeting of the company.
If extraordinary circumstances occur the board shall have the
discretionary right to adjust variable salary payments.
The board shall reserve the right to reclaim variable
components of remuneration that were awarded on the basis of
data which subsequently proved to be manifestly misstated.
Retirement benefits shall be based on the defined contribution
method. Pensionable salary is the base salary.
The executive may be entitled to a company car or other
similar benefit.
The termination period for the executive management may be
up to six months given from the employee and 12 months from
the employer (for the CEO 6 months). In case of termination
from the company the executive may be entitled to a severance
payment of up to 12 months (for the CEO 24 months). Severance pay shall be paid on a monthly basis in amounts equal to
the base salary. The severance pay shall not constitute a basis
for calculation of holiday pay or pension benefits and shall be
reduced if the executive has a new employment or conducts his
own business.
The executive may be covered by health care provisions,
travel insurance etc. in accordance with local labor market practice.
The board is allowed to make minor deviations on an individual basis from the principles stated above.
In case of a change of control in TeliaSonera AB, the company

could have to repay certain loans at short notice, since some of
TeliaSoneras financing agreements contain customary change
of control clauses. These clauses generally also contain other
conditions including, for example, that the change of control
has to cause a negative change in TeliaSoneras credit rating in
order to be effective.
Remuneration to Executive
Management
For remuneration to and the 2009 Remuneration Policy for
Executive Management, as decided by the Annual General
Meeting on April 1, 2009, see Note C32 to the consolidated
financial statements.
Proposed Remuneration Policy for Executive

Management 2010
The Board of Directors proposal for the remuneration policy for
executive management, to be adopted at the Annual General
Meeting on April 7, 2010, is as follows.
The guiding principles are:
The TeliaSonera objective is to maximize the effectiveness of
cash and equity in remuneration programs to attract, retain and
motivate high caliber executives needed to maintain the success
of the business. Remuneration should be built upon a total reward approach allowing for a market relevant but not market
leading and cost effective executive remuneration delivery
based on the components base salary, variable pay, pension
and other benefits.
The base salary should reflect the competence required, responsibility, complexity and business contribution of the executive. The base salary should also reflect the performance of the
employee and consequently be individual and differentiated.
TeliaSonera may have annual and long term variable pay programs. A variable pay program should reflect the EU Commission recommendation 2009/3177/EG and the Swedish Code of
Corporate Governance.
Variable pay programs should contain criteria which are
supporting an increased shareholder value and should have a
defined ceiling in relation to the executives annual base salary.
A program should have a set of pre-determined objectives,
which are measurable and for each variable pay objective it
should be stated what performance is required to reach the
starting point (minimum requirement for payout) and what
performance is required to reach the maximum (cap).
An annual variable pay program should reward performance
measured over a maximum period of 12 months, should ensure
the long-term sustainability of the company and be capped to a
maximum of the executives annual base salary of 40 percent.
The objectives should be designed in such a way which allows
the executive to reach the threshold for a solid performance, the
target level for a performance meeting expectations and the
maximum level for an exceptional performance.
A long-term variable pay program should ensure long-term
sustainability of the company, secure a joint interest in increased
shareholder value and provide an alignment between senior
management and the shareholders by sharing risks and rewards
of the TeliaSonera share price. The program may be annually
repeated and shall reward performance measured over a minimum of a three year period, be capped to a maximum of 50
percent per annum of the annual base salary and should be
equity based (invested and delivered in TeliaSonera shares with
the ambition that the employee should remain shareholders also
after vesting). A prerequisite for payout from such a program is
the continuous employment at the end of the earnings period.
Approximately 100 members of the senior management may be
eligible to a long-term variable pay program out of which approximately ten belongs to the Group management. The
program measures performance over a minimum 3 year period
Parent Company
The parent company TeliaSonera AB, which is domiciled in
Stockholm, comprises the Groups Swedish activities in development and operation of fixed network services and broadband
application services. The parent company also includes Group
management functions, certain Group common operations and
the Groups internal banking operations.
The parent companys financial statements have been prepared in accordance with the Swedish Annual Accounts Act,
other Swedish legislation, and standard RFR 2.3 Accounting for
Legal Entities and other statements issued by the Swedish
Financial Reporting Board.
Net sales for the year declined to SEK 15,135 million (SEK
16,132 million in 2008), due to migration to mobile services and
lower-priced IP-based services. SEK 12,058 million (12,644)
was billed to subsidiaries. Operating income was SEK 1,439
million (21,697). In 2008, operating income was heavily impacted by capital gains on assets transferred to the subsidiary
TeliaSonera Skanova Access AB (Skanova Access). Financial
net improved strongly as a result of dividend payments from
subsidiaries and income after financial items was SEK 12,964
million (18,280). Income before taxes was SEK 12,743 million
(30,317). In 2008, income before taxes were positively impacted
by a reversal of excess depreciation related to the Skanova
Access transaction. Net income was SEK 12,264 million
(30,306).
The balance sheet total increased to SEK 222,837 million
(211,098). Shareholders' equity increased to SEK 79,280 million
(75,017) and retained earnings to SEK 63,055 million (58,790)
as the good result more than compensated for the ordinary dividend payment of SEK 8,083 million in 2009.
Free cash flow improved to SEK 11,626 million (negative
3,370) due to the dividends received, and cash flow before financing activities was SEK 9,424 million (4,011). Net debt decreased to SEK 111,391 million (112,435). Cash and cash
equivalents totaled SEK 16,962 million (6,202) at year-end.
The equity/assets ratio (including the equity component of untaxed reserves and adjusted for the proposed dividend) was
33.8 percent (34.5).
16
Total investments in the year were SEK 4,879 million (40,280),

of which SEK 914 million (1,276) in property, plant and equipment primarily for the fixed network. Other investments totaled
SEK 3,965 million (39,004), of which SEK 3,535 million related
to AS Eesti Telekom and TEO LT, AB. In 2008, other investments included a capital contribution of SEK 34,000 million provided in kind in exchange for new shares issued by Skanova
Access.
The number of employees decreased to 1,937 at December 31, 2009 from 2,160 at year-end 2008, mainly due to
efficiency measures executed during the year.
Significant Events after Year-End 2009
On January 13, 2010, TeliaSonera selected the vendors for

the build out of 4G in Sweden and in Norway. The common
4G/LTE core network will be delivered by Ericsson and the
radio networks by Ericsson and Nokia Siemens Networks.
On January 25, 2010, TeliaSonera announced that the
Nomination Committee proposes Anders Narvinger, Ingrid
Jonasson Blank and Per-Arne Sandstrm as new members
of the Board. Maija-Liisa Friman, Conny Karlsson, Timo
Peltola, Lars Renstrm and Jon Risfelt are proposed to be
re-elected. Anders Narvinger is proposed to be elected
Chairman of the Board. The current Chairman of the Board,
Tom von Weymarn, has declined to be re-elected. The
two Directors Lars G Nordstrm and Caroline Sundewall
have also declined re-election and will leave the Board of
Directors at the Annual General Meeting 2010.
On February 2, 2010, TeliaSonera announced that it had
increased its ownership in UCell (OOO Coscom) from
74 percent to 94 percent by acquiring 20 percent of the
shares in the jointly owned TeliaSonera Uzbek Telecom
Holding B.V. from Takilant Limited. TeliaSonera will pay
approximately SEK 1,550 million (USD 220 million) for the
shares. TeliaSonera Uzbek Telecom Holding B.V. is a Dutch
holding company owning 100 percent of OOO Coscom in
Uzbekistan.
17
Consolidated Financial Statements
Consolidated Statements of Comprehensive Income

SEK in millions, except per share data
Net sales
Cost of sales
JanDec
JanDec
Note
2009
2008
C5, C6
109,161
103,585
C7
-60,965
-57,853
48,196
45,732
Gross profit
Selling and marketing expenses
C7
-15,647
-16,670
Administrative expenses
C7
-8,063
-7,552
Research and development expenses
C7
-1,008
-1,178
Other operating income
C8
1,106
755
Other operating expenses
C8
-2,275
-1,535
Income from associated companies and joint ventures
C9
8,015
9,096
Operating income
C5
30,324
28,648
Finance costs
C10
-3,191
-3,683
Other financial items
C10
481
1,446
27,614
26,411
-6,334
-4,969
Income after financial items

Income taxes
C11
Net income
21,280
21,442
Foreign currency translation differences
C12
-7,355
13,814
C12
188
-37
Cash flow hedges
C12
89
-331
Available-for-sale financial instruments
C12
34
-97
C11, C12
-296
390
Other comprehensive income
-7,340
13,739
Total comprehensive income
13,940
35,181
18,854
19,011
2,426
2,431
13,068
31,075
872
4,106
4.20
4.23
Income taxes relating to other comprehensive income
Net income attributable to:

Owners of the parent
Minority interests
Total comprehensive income attributable to:
Owners of the parent
Minority interests
C20
Earnings per share (SEK), basic and diluted
18
Consolidated Statements of Financial Position

Dec 31,
Dec 31,
Note
2009
2008
Goodwill
C13
85,737
84,431
Other intangible assets
C13
14,502
16,537
C14
61,222
61,946
Investments in associated companies and joint ventures
C15
42,518
39,543
Deferred tax assets
C11
11,177
13,206
Pension obligation assets
C22
501
330
Other non-current assets
C16
6,653
9,186
222,310
225,179
SEK in millions
Assets

Inventories
C17
1,551
1,673
Trade and other receivables
C18
21,390
23,243
205
191
Current tax receivables

Interest-bearing receivables
C19
1,726
2,147
C19
22,488
11,826
47,360
39,080
27
269,670
264,286
135,372
130,387
7,127
11,061
142,499
141,448

Non-current assets held-for-sale
Total assets
Equity and liabilities
Equity attributable to owners of the parent
Minority interests
Total equity
C21
63,664
54,178
Deferred tax liabilities
C11
13,210
11,260
Provisions for pensions and employment contracts
C22
680
22
Other long-term provisions
C23
11,735
13,312
Other long-term liabilities
C24
1,589
2,565
90,878
81,337
11,621
Total non-current liabilities

C21
8,169
Short-term provisions
C22
1,246
849
1,439
1,254
25,439
27,777
Current tax payables

Trade payables and other current liabilities
C25
Total current liabilities

36,293
41,501
269,670
264,286
Contingent assets
C30
Guarantees
C30
2,306
2,557
Collateral pledged
C30
822
1,854
19
Consolidated Statements of Cash Flows

SEK in millions
Note
Net income
JanDec
JanDec
2009
2008
21,280
21,442
13,020
12,111
Adjustments for:
Amortization, depreciation and impairment losses
Capital gains/losses on sales/disposals of non-current assets
150
-17
Income from associated companies and joint ventures, net of

dividends received
-5,863
-7,686
Pensions and other provisions
-934
-294
Financial items
1,019
1,924
Income taxes
3,279
1,077
14
-77
31,965
28,480
563
-1,824
33
-325
Miscellaneous non-cash items

Cash flow before change in working capital
Increase (-)/Decrease (+) in operating receivables
Increase (-)/Decrease (+) in inventories
Increase (+)/Decrease (-) in operating liabilities
Change in working capital
-1,570
755
-974
-1,394
Cash flow from operating activities
C31
30,991
27,086
Intangible assets and property, plant and equipment acquired
C31
-13,967
-15,758
82
40
Equity instruments and operations acquired
C31
-5,102
-4,079
Equity instruments and operations divested
C31
887
32
Payment on behalf of Ipse 2000 S.p.A.
C23
Intangible assets and property, plant and equipment divested
-878
-471
-472
Repayment of loans granted and other similar investments
637
309
Compensation from pension fund
870
Loans granted and other similar investments
Net change in short-term investments
315
294
Cash flow from investing activities
-17,627
-19,634
13,364
7,452
Dividends paid to owners of the parent
-8,083
-17,962
Dividends paid to minority interests
-3,070
-1,902
Proceeds from long-term borrowings
19,240
11,776
Repayment of long-term borrowings
-3,136
-1,261
Net change in short-term borrowings
-7,519
4,990
Cash flow from financing activities
-2,568
-4,359
Net change in cash and cash equivalents
10,796
3,093
Cash flow before financing activities
Cash and cash equivalents, opening balance
11,826
7,802
Net change in cash and cash equivalents for the year
10,796
3,093
-134
931
C19
22,488
11,826
Dividends received
C31
2,153
1,410
Interest received
C31
371
787
Interest paid
C31
-2,141
-2,569
Income taxes paid
C31
-3,056
-3,892
Exchange rate differences in cash and cash equivalents

Cash and cash equivalents, closing balance
20
Consolidated Statements of Changes in Equity

SEK in millions
Closing balance, December 31, 2007
Note Share capital

14,369
Dividends
Minority interest acquired
Minority interest disposed of
Transfer of amortization and depreciation
for the year
C20
Dividends
Minority interest acquired
Transfer of amortization and depreciation
for the year
C12, C20
C20
C12, C20
Other
contributed
capital
40,922
Hedging
reserve
0
Fair value
reserve
128
-9,879
-244
-97
Foreign
currency
translation Revaluation
reserve
reserve
5,658
972
12,405
Inflation
reserve
4,909
Total
Retained owners of
earnings the parent
50,316
117,274
-8,083
19,011
-17,962
31,075
Minority
interest
9,783
Total
equity
127,057
-1,986
-857
15
4,106
-19,948
-857
15
35,181
-153
153
14,369
31,043
-244
31
18,063
819
4,909
61,397
130,387
11,061
141,448
72
45
-5,903
-8,083
18,854
-8,083
13,068
-2,817
-1,989
872
-10,900
-1,989
13,940
-145
145
14,369
31,043
-172
76
12,160
674
4,909
72,313
135,372
7,127
142,499
21
Notes to Consolidated Financial Statements

C1. Basis of Preparation
General
The annual report and consolidated financial statements have
been approved for issue by the Board of Directors on March 9,
2010. The income statement and the balance sheet of the parent
company and the statement of comprehensive income and the
statement of financial position of the Group are subject to adoption by the Annual General Meeting on April 7, 2010.
TeliaSoneras consolidated financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRSs) and, given the nature of TeliaSoneras transactions, in accordance with IFRSs as adopted by the European
Union (EU).
In addition, concerning purely Swedish circumstances, the
Swedish Financial Reporting Board has issued standard
RFR 1.3 Supplementary Accounting Rules for Groups and
other statements. As encouraged by the Financial Reporting
Board, TeliaSonera has pre-adopted RFR 1.3. The standard is
applicable to Swedish legal entities whose securities are listed
on a Swedish stock exchange or authorized equity market place
at the end of the reporting period and specifies supplementary
rules and disclosures in addition to IFRS requirements, caused
by provisions in the Swedish Annual Accounts Act.
Measurement bases and accounting policies

The consolidated financial statements have been prepared
mainly under the historical cost convention. Other measurement
bases used and applied accounting policies are described below.
Change in accounting policy

IFRSs are unclear on the accounting for certain transactions with
minority interests. With respect to changes in the value of liabilities arising from put options granted to minority interests, TeliaSonera would previously have recognized such changes as an
adjustment to goodwill if the option was granted in connection
with a business combination and in net income if it was not (the
IAS 39 approach). As of the fourth quarter of 2009, changes in
the value of the liabilities have been recognized as adjustments
to goodwill. This means that the liability is now considered contingent consideration applying business combination accounting
(IFRS 3) by analogy. This is consistent with TeliaSoneras policy
for other minority interest acquisitions. Additionally, the option
strike prices are fair value at the exercise date, implying no gains
or losses neither upon exercise nor during the term. For these
reasons, TeliaSonera believes that it is more relevant to recognize value changes towards goodwill. As no value changes to
the put option liabilities have previously been recognized, this
change will have no retrospective impact.
Amounts and dates

Unless otherwise specified, all amounts are in millions of Swedish kronor (SEK) or other currency specified and are based on
the twelve-month period ended December 31 for items related to
comprehensive income and cash flows, and as of December 31
for items related to financial position.
Recently issued accounting standards

New or revised/amended standards and interpretations,
effective in 2009 or pre-adopted
Amended IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and
Separate Financial Statements (effective for annual periods
beginning on or after January 1, 2009; earlier application
permitted). The amendments to IFRS 1 and IAS 27 are not
applicable to TeliaSonera.
22
Amended IFRS 2 Share-based Payment (effective for annual periods beginning on or after January 1, 2009; earlier
application permitted), clarifying that vesting conditions are
service conditions and performance conditions only and further specifying that all cancellations, whether by the entity or
by other parties, should receive the same accounting treatment. IFRS 2 is currently not relevant to TeliaSonera.
Amendments on improving disclosures about financial instruments to IFRS 7 Financial Instruments: Disclosures
(effective for annual periods beginning on or after January 1,
2009; earlier application permitted; comparative disclosures
not required at first-time application), introducing a threelevel hierarchy for fair value measurement disclosures and
requiring additional disclosures on the relative reliability of
fair value measurements. In addition, existing requirements
on disclosure of liquidity risk are clarified and enhanced.
IFRS 8 Operating Segments (effective for annual periods
permitted). TeliaSonera adopted IFRS 8 in 2007.
Revised IAS 1 Presentation of Financial Statements (effective for annual periods beginning on or after January 1,
2009; earlier application permitted). The revision requires all
owner changes in equity to be presented in a statement of
changes in equity, separately from non-owner changes in
equity. All non-owner changes in equity (i.e. comprehensive
income) are presented in one statement of comprehensive
income or in two statements (a separate income statement
and a statement of comprehensive income). Components of
comprehensive income are not permitted to be presented in
the statement of changes in equity. The revisions also include (non-mandatory) changes in the titles of some of the
financial statements to reflect their function more clearly.
TeliaSonera has chosen to present all non-owner changes in
equity in the statement of comprehensive income and
changed the titles of the other financial statements. Comparative information has been represented to conform to the
revised IAS 1.
Amended IAS 23 Borrowing Costs (effective January 1,
2009; earlier application permitted). The amendment did not
affect TeliaSonera, already applying the existing alternative
of capitalizing borrowing costs.
Amendments on puttable financial instruments and obligations arising on liquidation to IAS 32 Financial Instruments:
Presentation and IAS 1 Presentation of Financial Statements (effective for annual periods beginning on or after
January 1, 2009; earlier application permitted). The amendments are currently not relevant to TeliaSonera.
Improvements to IFRSs (May 2008) (mostly effective for
annual periods beginning on or after January 1, 2009; earlier
application permitted) introducing amendments to about
20 IFRSs that had not been included in other major projects.
The amendments relevant to TeliaSonera were in certain
cases already applied and otherwise had no or very limited
impact on results or financial position.
Amendments on embedded derivatives to IFRIC 9 Reassessment of Embedded Derivatives and IAS 39 Financial
Instruments: Recognition and Measurement (effective for
annual periods ending on or after June 30, 2009; to be applied retrospectively), clarifying that on reclassification of a
financial asset out of the at fair value through profit or loss
category, all embedded derivatives have to be assessed
and, if necessary, separately accounted for in financial
statements. Currently, TeliaSonera is not considering the
reclassification of any financial assets.
IFRIC 13 Customer Loyalty Programmes (effective for
annual periods beginning on or after July 1, 2008; earlier
application permitted). IFRIC 13 explains how to account for
obligations to provide free or discounted goods or services
(awards) to customers who redeem award credits. Entities

are required to allocate some of the proceeds of the initial
sale to the award credits and recognize these proceeds as
revenue only when their obligations are fulfilled. TeliaSonera
already deferred revenue related to loyalty programs as required by IFRIC 13. However, IFRIC 13 requires that the
deferred revenue be determined as the fair value of the
goods or services to be delivered in the future, while TeliaSonera based the deferral on estimated costs. Full adoption
of IFRIC 13 did not have a material impact on TeliaSoneras
results or financial position.
IFRIC 15 Agreements for the Construction of Real Estate
(effective for annual periods beginning on or after January 1,
2009; to be applied retrospectively). IFRIC 15 is not applicable to TeliaSonera.
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective for annual periods beginning on or after October 1, 2008; to be applied prospectively), applicable to entities that hedge foreign currency risks arising from net investments in foreign subsidiaries, associates, joint ventures
or branches and wish to qualify for hedge accounting under
IAS 39. IFRIC 16, which does not apply to other types of
hedge accounting and should not be applied by analogy,
clarifies that (a) the presentation currency does not create
an exposure to which hedge accounting may be applied and
consequently, an entity may designate as a hedged risk only
the foreign exchange differences arising from a difference
between its own functional currency and that of its foreign
operation; (b) the hedging instrument(s) may be held by any
entity or entities within the group; and (c) while IAS 39 must
be applied to determine the amount that needs to be reclassified to profit or loss from the foreign currency translation
reserve in respect of the hedging instrument, IAS 21 must be
applied in respect of the hedged item. TeliaSonera already
in previous periods applied the IFRIC 16 provisions.
IFRIC 18 Transfers of Assets from Customers (effective for
transfers received on or after July 1, 2009; earlier application
permitted within limits; to be applied prospectively). IFRIC 18
clarifies (a) the circumstances in which the definition of an
asset is met; (b) the recognition of the asset and the measurement of its cost on initial recognition; (c) the identification
of the separately identifiable services (one or more services
in exchange for the transferred asset), (d) the recognition of
revenue; and (e) the accounting for transfers of cash from
customers. Adoption of IFRIC 18 did not have any significant
impact on TeliaSoneras results or financial position.
New or revised/amended standards and interpretations,

not yet effective
Recently issued new or revised/amended standards and interpretations impacting TeliaSoneras consolidated financial statements on or after January 1, 2010, are as follows:
Revised IFRS 1 First-time Adoption of International Financial Reporting Standards (effective for annual periods beginning on or after July 1, 2009; earlier application permitted); Amendments on retrospective application of IFRSs to
IFRS 1 (effective for annual periods beginning on or after
January 1, 2010; earlier application permitted); and Amendment on limited exemption from comparative IFRS 7 disclosures to IFRS 1 (effective July 1, 2010; earlier application
permitted). IFRS 1 is not applicable to TeliaSonera.
Amendments on group cash-settled share-based payment

transactions to IFRS 2 Share-based Payment (effective for
application permitted, to be applied retrospectively). The
amendments also incorporate guidance previously included
in IFRIC 8 Scope of IFRS 2 and IFRIC 11 IFRS 2Group
and Treasury Share Transactions, which as a result are
withdrawn. IFRS 2 is currently not relevant to TeliaSonera.
Revised IFRS 3 Business Combinations and amended

IAS 27 Consolidated and Separate Financial Statements
(effective for annual periods beginning on or after July 1,
23
2009; earlier application permitted). Inter alia, the changes

include: (a) that transaction costs are expensed as incurred;
(b) that contingent consideration is always recognized at fair
value and for non-equity-consideration post-combination
changes in fair value affects profit and loss; (c) that an option is added to on a transaction-by-transaction basis permit
recognition of 100 percent of the goodwill of the acquired
entity with the increased goodwill amount also increasing the
non-controlling interest; (d) that in a step acquisition, on the
date that control is obtained, the fair values of the acquired
entitys assets and liabilities, including goodwill, are measured and any resulting adjustments to previously recognized
assets and liabilities are recognized in profit or loss; (e) that
acquiring additional shares in a subsidiary after obtaining
control as well as a partial disposal of shares in a subsidiary
while retaining control is accounted for as an equity transaction with owners; and (f) that a partial disposal of shares in a
subsidiary that results in loss of control triggers remeasurement of the residual holding to fair value and any difference
between fair value and carrying amount is a gain or loss,
recognized in profit or loss. TeliaSonera expects that applying the revised IFRS 3 and the amended IAS 27 will lead to
increased volatility in profit and loss.
IFRS 9 Financial Instruments (effective for annual periods
permitted; to be applied retrospectively but if adopted before
January 1, 2012, restatement of prior periods is not required). Classification under IFRS 9 is driven by the entitys
business model for managing financial assets and the contractual characteristics of the financial assets. IFRS 9 replaces the current multiple-category classification with the
two categories: amortized cost and fair value. The main
principle is that a financial asset shall be measured at amortized cost if both of the following conditions are met: (a) the
objective is to hold the financial asset in order to collect the
contractual cash flows, and (b) the contractual terms give
rise on specified dates to cash flows that solely represent
payments of principal and interest. All other financial assets
within scope are measured at fair value. Reclassifications
between the categories are only allowed when the entitys
business model for managing financial assets is changed.
IFRS 9 requires all equity instruments within scope to be
measured at fair value and removes the cost exemption for
unquoted equities. Still, IFRS 9 states that in limited cases
cost may be an appropriate estimate of fair value and includes a table of indicators that cost might not be representative of fair value. IFRS 9 also amends many other standards, including the disclosure requirements of IFRS 7. The
issued parts of IFRS 9 mark the first phase of replacing
IAS 39 Financial Instruments: Recognition and Measurement. Work on finalizing IFRS 9 is ongoing and includes
addressing the impairment methodology for financial assets,
hedge accounting as well as classification and measurement
of financial liabilities. TeliaSonera is currently analyzing the
effects, if any, of adopting the issued parts of IFRS 9. Tentatively, the change into two categories would in most cases
have no major effect on the measurement of a specific financial asset since the measurement bases already today
are amortized cost or fair value, even though IAS 39 specifies more than two categories.
Revised IAS 24 Related Party Disclosures (effective for
application permitted), simplifying the disclosure requirements for government-related entities and changing the
definition of a related party. The revision also changes the
disclosure requirements in the separate financial statements
of subsidiaries or associates. Previously, only directly or indirectly held investments in associates were included in the
disclosure requirements, now any associated company of
the whole Group is regarded as a related party also in separate financial statements. Further, commitments is added
to the list of examples of related party transactions that are
ments if application prior to the date of endorsement is permitted

by both the Regulation endorsing the document and the related
IFRS.
to be disclosed. TeliaSoneras interpretation of the current

disclosure requirements relating to transactions with other
entities controlled, or significantly influenced by the governments of Sweden and Finland are in line with the revised
disclosure requirements. TeliaSonera is currently analyzing
the effects, if any, of adopting the other revisions to IAS 24.
Amendment on classification of rights issues to IAS 32 Financial Instruments: Presentation (effective for annual periods beginning on or after February 1, 2010; earlier application permitted, to be applied retrospectively), addressing the
accounting for issues of rights, options or warrants not being
denominated in the issuers functional currency. While previously accounted for as derivative liabilities, such rights issues should, provided certain conditions are met, now be
classified as equity regardless of the currency in which the
exercise price is denominated. The amendment is currently
not relevant to TeliaSonera.
Amendment on eligible hedged items to IAS 39 Financial
Instruments: Recognition and Measurement (effective for
annual periods beginning on or after July 1, 2009; earlier
application permitted, to be applied retrospectively), restricting/clarifying the risks qualifying for hedge accounting in two
particular situations: (a) a one-sided risk in a hedged item
(hedging with options) and (b) inflation in a financial hedged
item (identifying inflation as a hedged risk or portion). The
amendment is currently not relevant to TeliaSonera.
Improvements to IFRSs (April 2009) (mostly effective for
application permitted) introducing amendments to 12 IFRSs
that had not been included in other major projects. The
amendments relevant to TeliaSonera are in certain cases already applied and otherwise will have no or very limited impact on results or financial position.
Amendment on prepayments of a minimum funding requirement to IFRIC 14 IAS 19 The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their Interaction (effective January 1, 2011; earlier application permitted,
to be applied retrospectively). IFRIC 14 is currently not relevant to TeliaSonera.
IFRIC 17 Distributions of Non-cash Assets to Owners
(effective for annual periods beginning on or after July 1,
2009; earlier application permitted, to be applied prospectively), clarifying the accounting treatment of pro rata distributions of non-cash assets except for common control
transactions and requiring additional disclosures if the net
assets being held for distribution to owners meet the definition of a discontinued operation. Currently, IFRIC 17 is not
relevant to TeliaSonera.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on or after
July 1, 2010; earlier application permitted, to be applied retrospectively), clarifying the accounting treatment when an
entity renegotiates the terms of a financial liability with its
creditor and the creditor agrees to accept the entitys shares
or other equity instruments to settle the liability fully or partially. IFRIC 19 is currently not relevant to TeliaSonera.
C2. Key Sources of Estimation

Uncertainty
The preparation of financial statements requires management
and the Board of Directors to make estimates and judgments
that affect reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and
liabilities. These estimates are based on historical experience
and various other assumptions that management and the Board
believe are reasonable under the circumstances, the results of
which form the basis for making judgments about the carrying
values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates
under different assumptions or conditions, significantly impacting
TeliaSoneras earnings and financial position.
Management believes that the following areas comprise the
most difficult, subjective or complex judgments it has to make in
the preparation of the financial statements. Information on accounting policies applied, see the respective sections of Note C3
Significant Accounting Policies.
Revenue recognition
For a telecom operator, to determine fair values and if or when
revenue should be recognized requires management judgment
in a number of cases, such as when signing agreements with
third-party providers for content services (whether TeliaSonera
acts as principal or agent under a certain agreement); in complex bundling of products, services and rights to use assets into
one customer offering (whether TeliaSonera should recognize
the separate items up-front or defer); the sales of Indefeasible
Rights of Use (IRUs); and in assessing the degree of completion
in service and construction contracts.
Income taxes
Significant management judgment is required in determining
current tax liabilities and assets as well as provisions for deferred tax liabilities and assets, in particular as regards valuation
of deferred tax assets. As part of this process, income taxes
have to be estimated in each of the jurisdictions in which TeliaSonera operates. The process involves estimating the actual
current tax exposure together with assessing temporary differences resulting from the different valuation of certain assets and
liabilities in the financial statements and in the tax returns. Management must also assess the probability that the deferred tax
assets will be recovered from future taxable income. Actual results may differ from these estimates due to, among other factors, future changes in business environment, currently unknown
changes in income tax legislation, or results from the final review
of tax returns by tax authorities or by courts of law. For additional
information on deferred tax assets and liabilities and their carrying values as of the end of the reporting period, see Note C11
Income Taxes.
EU endorsement status
As of the beginning of March 2010, all standards, revisions/amendments to standards, and interpretations mentioned above
had been adopted by the EU, except for amendments on retrospective application to IFRS 1, amendment on limited exemption
from comparative IFRS 7 disclosures to IFRS 1, amendment on
group cash-settled share-based payment transactions to IFRS 2,
IFRS 9, revised IAS 24, Improvements to IFRSs (April 2009),
amendment to IFRIC 14, and IFRIC 19.
The EU Commission has announced that, if an IFRS (or
equivalent) is endorsed after the end of the reporting period but
before the date the financial statements are issued, it can be
treated as endorsed for the purposes of those financial state-
Valuation of intangible and other non-current assets

Intangible assets, and property, plant and equipment represent
approximately 60 percent of TeliaSoneras total assets.
Useful lives
Determination of the useful lives of asset classes involves taking
into account historical trends and making assumptions related to
future socio-economical and technological development and expected changes in market behavior. These assumptions are prepared by management and subject to review by the Audit Committee of the Board of Directors.
24
Currently, the following amortization and depreciation rates are

applied.
Trade names
Telecom licenses, numbering rights
Interconnect and roaming agreements

Customer relationships
Capitalized development expenses
Buildings
Land improvements
Capitalized improvements on leased premises
Mobile networks (base stations and other installations)
Fixed networks
Switching systems and transmission systems
Transmission media (cable)
Equipment for special networks
Usufruct agreements of limited duration
Other installations
Equipment, tools and installations
Equipment placed with customers under service arrangements
Individual evaluation, minimum 10 percent

Remaining license period, minimum 5 percent. Licenses are regarded as integral
to the network and amortization of a license does not commence until the related
network is ready for use.
Agreement term, based on the remaining useful life of the related license
Individual evaluation, based on historic and projected churn
20 percent
2033 percent or individual evaluation
210 percent
2 percent
Remaining term of corresponding lease
14.520 percent
1020 percent
510 percent
10 percent
Agreement term or time corresponding to the underlying asset
233 percent
1033 percent
Agreement term, annuity basis
In 2009 and 2008, amortization, depreciation and impairment

losses totaled SEK 12,932 million and SEK 12,106 million, respectively. For additional information on intangible and tangible
assets subject to amortization and depreciation and their carrying values as of the end of the reporting period see Note C13
Goodwill and Other Intangible Assets and Note C14 Property,
Plant and Equipment.
The most significant assumptions that management has to make

in connection with the actuarial calculation of pension obligations
and pension expenses affect the discount rate, the expected
annual rate of compensation increase, the expected employee
turnover rate, the expected average remaining working life, the
expected annual income base amount increase (only for Swedish entities), the expected annual adjustments to pensions, and
the expected annual return on plan assets. These assumptions
are prepared by management and subject to review by the Audit
Committee of the Board of Directors. A change in any of these
key assumptions may have a significant impact on the projected
benefit obligations, funding requirements and periodic pension
cost. For additional information on pension obligations and their
present values as of the end of the reporting period, see Note
C22 Provisions for Pensions and Employment Contracts.
The discount rate reflects the rates at which the pension obligations could be effectively settled, which means a period
somewhere from 15 to 30 years. The rate used to discount pension obligations shall be determined by reference to market
yields at the end of the reporting period on high-quality corporate
bonds. In countries where there is no deep market in such
bonds, the market yields at the end of the reporting period on
government bonds shall be used. The currency and term of the
corporate bonds or government bonds shall be consistent with
the currency and estimated term of the pension obligations. For
Sweden, which represents approximately 86 percent of TeliaSoneras pension obligations, consensus is that the corporate
bond market is not a deep market and management based its
determination of the estimated discount rate on nominal government bonds adjusting yields to consistent terms by interpolating
along the yield-curve. Until recently, the longest term of Swedish
domestic nominal bonds was 12 years. In early 2009, a 30-year
government bond was issued, assisting management in determining the estimated discount rate. See section Pension obligation risk in Note C27 Financial Risk Management for a
sensitivity analysis related to a change in the weighted average
discount rate used in calculating pension provisions.
The expected annual rate of compensation increase reflects
expected future salary increases as a compound of inflation,
seniority and promotion. The estimate is based on historical data
on salary increases and on the expected future inflation rate
(see also below). Historical data is also the basis for estimating
the employee turnover rate, which reflects the expected level of
employees, by age class, leaving the company through natural
attrition.
Impairment testing
A number of significant assumptions and estimates are involved
when measuring value in use based on the expected future discounted cash flows attributable to an asset, for example with
respect to factors such as market growth rates, revenue volumes, market prices for telecommunications services, costs to
maintain and develop communications networks and working
capital requirements. Forecasts of future cash flows are based
on the best estimates of future revenues and operating expenses using historical trends, general market conditions, industry trends and forecasts and other available information.
These assumptions are prepared by management and subject to
review by the Audit Committee of the Board of Directors. The
cash flow forecasts are adjusted by an appropriate discount rate
derived from TeliaSoneras cost of capital plus a reasonable risk
premium at the date of evaluation. For additional information on
goodwill and its carrying value as of the end of the reporting
period, see Note C13 Goodwill and Other Intangible Assets.
Collectability of trade receivables

TeliaSoneras allowance for doubtful receivables reflects estimated losses that result from the inability of customers to make
required payments. Management determines the size of the
allowance based on the likelihood of recoverability of accounts
receivable taking into account actual losses in prior years and
current collection trends. Should economic or specific industry
trends worsen compared to management estimates, the allowance may have to be increased, negatively impacting earnings.
See section Credit risk management in Note C27 Financial
Risk Management for a description of how risks related to trade
receivables are mitigated. For additional information on the
allowance for doubtful receivables and its carrying value as of
the end of the reporting period, see Note C18 Trade and Other
Receivables.
25
sets given, liabilities incurred or assumed, and equity instruments issued by the acquirer, in exchange for control of the
acquiree plus any costs directly attributable to the business combination. Identifiable assets acquired, and liabilities and contingent liabilities assumed are initially measured at fair value.
Any excess of the cost of acquisition over the fair value of net
assets acquired is recognized as goodwill.
Assets (including any goodwill and fair value adjustments) and
liabilities for entities acquired or divested during the year are
included in the consolidated financial statements from the date
on which control is obtained and excluded from the date on
which control is lost.
Intra-group sales and other transactions have been eliminated
in the consolidated financial statements. Profits and losses resulting from intra-group transactions are eliminated unless a loss
indicates impairment.
The estimate for expected average remaining working life is

based on current employee age distribution and the expected
employee turnover rate. The income base amount, existing only
in Sweden, is set annually and inter alia used for determining the
ceiling for pensionable income in the public pension system. The
estimate for the expected annual income base amount increase
is based on the expected future inflation rate and the historical
annual rate of compensation increase on the total labor market.
Expected annual adjustments to pensions reflect the inflation
rate. In determining this rate, management has chosen to use
the annual inflation target rates set by the national and European
central banks.
The expected annual return on plan assets reflects the average rate of earnings expected on the investments made (or to be
made) to provide for the pension benefit obligations that are
secured by the pension funds. Plan assets chiefly consist of
fixed income instruments and equity instruments.
The expected nominal net return from the Swedish pension
fund portfolio, representing approximately 84 percent of total
plan assets, is currently 4.7 percent per annum over a 10-year
period, where inflation is assumed to be 2.0 percent per annum.
The strategic allocation of plan assets is composed to give the
expected average return. More specifically the expected gross
nominal return is based on the following assumptions; domestic
fixed income 4.0 percent, domestic and global equity 7.5 percent
and other investments 7.5 percent. The assumptions used in the
non-Swedish pension funds are similar.
Minority interests
Transactions with minority interests are treated as transactions
with non-related parties. Disposals to minority interests result in
capital gains or losses which are recognized in net income. Purchases from minority interests result in goodwill, being the difference between any consideration paid and the relevant share
acquired of the Groups carrying value of net assets of the subsidiary. Commitments to purchase minority interests and put
options granted to minority shareholders (taking into account any
subsequent capital contributions from or dividends to minority
shareholders) are recognized as contingent consideration.
Where the amount of the liability exceeds the amount of the
minority interest, the difference is recorded as goodwill. Subsequent changes in the value of put option liabilities are recognized
as an adjustment to goodwill.
Provisions for restructuring activities, minority put

options, contingent liabilities and litigation
TeliaSonera has engaged, and may in the future need to engage, in restructuring activities, which require management to
make significant estimates related to expenses for severance
and other employee termination costs, lease cancellation, site
dismantling and other exit costs and to realizable values of assets made redundant or obsolete (see section Valuation of intangible and other non-current assets above). Should the actual
amounts differ from these estimates, future results could be
materially impacted.
The determination of redemption amounts for minority put options involves management judgment and estimates of factors
such as the likelihood of exercise of the option and the timing
thereof, projected cash flows of the underlying operations, the
weighted average cost of capital, etc. A change in any of these
factors may have a significant impact on future results.
Determination of the treatment of contingent assets and liabilities in the financial statements is based on managements view
of the expected outcome of the applicable contingency. Management consults with legal counsel on matters related to litigation and other experts both within and outside the company with
respect to matters in the ordinary course of business.
For additional information on restructuring provisions and minority put options, including their carrying values as of the end of
the reporting period, and on contingencies and litigation, see
Notes C23 Other Provisions and C30 Contingencies, Other
Contractual Obligations and Litigation, respectively.
Associated companies and joint ventures

Associated companies are entities over which the Group has
significant influence but not control, generally accompanying a
shareholding of between 20 percent and 50 percent of the voting
rights. Entities over which the Group has joint control by virtue of
a contractual arrangement are joint ventures.
Holdings in associated companies and joint ventures are accounted for using the equity method and are initially recognized
at cost. The Groups share of net income in associated companies and joint ventures is included in operating income because
the operations of these companies are related to telecommunications and it is the Groups strategy to capitalize on industry
know-how by means of investing in partly owned operations. The
share of net income is based on the entitys most recent accounts, adjusted for any discrepancies in accounting policies,
and with estimated adjustments for significant events and transactions up to TeliaSoneras close of books.
The line item Income from associated companies and joint
ventures also includes amortization of fair value adjustments and
other consolidation adjustments made upon the acquisition of
associated companies and joint ventures as well as any subsequent impairment losses on goodwill and other intangible assets,
and capital gains and losses on divestitures of stakes in such
companies. TeliaSoneras share of any gains or losses resulting
from transactions with associated companies and joint ventures
are eliminated.
Dividend received reduces the carrying amount of an investment. Negative equity participations in associated companies
and joint ventures are recognized only to the extent contractual
obligations to contribute additional capital exist and are then
recorded as Other provisions.
C3. Significant Accounting Policies

Consolidated financial statements
General
The consolidated financial statements comprise the parent company TeliaSonera AB and all entities over which TeliaSonera
has the power to govern the financial and operating policies,
generally accompanying a shareholding of more than one half of
the voting rights. TeliaSoneras consolidated financial statements are based on accounts prepared by all controlled entities
as of December 31, and have been prepared using the purchase
method. According to this method the cost of a business combination is the aggregate of the fair values, at acquisition, of as-
Cash flow reporting

Cash flows from operating activities are reported using the indirect method and include dividends received from associated
companies and other equity instruments, interest paid or received (except for paid interest capitalized as part of the acquisition or construction of non-current assets and therefore included
in cash flows from investing activities) and taxes paid or re-
26
cept for equity components, which are translated at historical

rates. Translation differences are recognized in other comprehensive income and accumulated in equity attributable to owners
of the parent or to minority interests, as appropriate. When a
foreign operation is sold, any related cumulative exchange rate
difference is recycled to net income as part of the gain or loss on
the sale, except for accumulated exchange rate differences related to minority interests which are derecognized but not recycled to net income.
When the functional currency for a foreign operation is the currency of a hyperinflationary economy, prior to translating the
financial statements, the reported non-monetary assets and
liabilities, and equity are restated in terms of the measuring unit
current at the end of the reporting period. Currently, no subsidiary, associated company or joint venture operates in a
hyperinflationary economy.
funded. Changes in non-interest bearing long-term receivables

and liabilities are reported in working capital, except for IRUrelated prepayments made or received which are included in
cash flows from investing activities.
Payments for equity instruments and operations acquired or
divested are classified as cash flows from investing activities, net
of cash and cash equivalents acquired or disposed of, respectively. Further, cash flows from investing activities include compensation from or contributions to the Swedish pension fund,
payments related to leasing receivables as well as changes in
short-term investments with maturities over 3 months.
Cash flows from financing activities include dividends paid to
owners of the parent and to minority interests. Proceeds from
and repayment of long-term borrowings include cash flows from
derivatives hedging such borrowings.
Cash and cash equivalents include cash at hand, bank deposits and highly-liquid short-term investments (including blocked
amounts) with maturities up to and including 3 months.
Cash flows of a foreign entity are translated at the average exchange rate for the reporting period, except for certain transactions like dividends from associates, dividends paid to minority
interests, acquisitions or disposals of subsidiaries and associated companies, and other major non-recurring transactions
which are translated at the rate prevailing on the transaction day.
Revenue recognition
Net sales principally consist of traffic charges including interconnect and roaming, subscription fees, connection and installation
fees, service charges and sales of customer premises equipment. Sales revenues are recognized at fair value of the consideration received, normally being the sales value, adjusted for
rebates and discounts granted and sales-related taxes.
Revenue is recognized in the period in which the service is
performed, based on actual traffic or over the contract term, as
applicable. Revenue from rendering of services is recognized
when it is probable that the economic benefits associated with a
transaction will flow to TeliaSonera, and the amount of revenue,
and the associated costs incurred, or to be incurred, can be
measured reliably. Revenue from voice and data services is
recognized when the services are used by the customer. Revenue from interconnect traffic with other telecom operators is
recognized at the time of transit across TeliaSoneras network.
When invoicing end-customers for third-party content services,
amounts collected on behalf of the principal are excluded from
revenue.
Subscription fees are recognized as revenue over the subscription period. Sales relating to pre-paid phone cards, primarily
mobile, are deferred and recognized as revenue based on the
actual usage of the cards. Connection fees are separately recognized at completion of connection, if the fees do not include
any amount for subsequent servicing but only cover the connection costs. Amounts for subsequent servicing are deferred.
Revenue from equipment sales is recognized when delivery
has occurred and the significant risks and rewards have been
transferred to the customer, i.e. normally on delivery and when
accepted by the customer.
Under customer loyalty programs, customers are entitled to
certain discounts (award credits) relating to services and goods
provided by TeliaSonera. Based on relative fair values, proceeds
are allocated between services and goods provided and the
award credits for future services and goods. For the proportion
of award credits expected to be redeemed, revenue is deferred
and subsequently recognized when the award credits are redeemed and the obligations to supply the awards are fulfilled.
For recognition of customer acquisition costs, see section Operating expenses below.
TeliaSonera may bundle services and products into one customer offering. Offerings may involve the delivery or performance of multiple products, services, or rights to use assets (multiple deliverables). In some cases, the arrangements include
initial installation, initiation, or activation services and involve
consideration in the form of a fixed fee or a fixed fee coupled
with a continuing payment stream. Telecom equipment is accounted for separately from service where a market for each
deliverable exist and if title to the equipment passes to the endcustomer. Costs associated with the equipment are recognized
at the time of revenue recognized. The revenue is allocated to
equipment and services in proportion to the fair value of the
individual items. Services invoiced based on usage are not included in the allocation. If the fair value of delivered items can-
Segment reporting
The Groups basic operating segments are called business areas (BA), which are founded on managements decision to organize the Group around differences in products and services in
combination with geographical markets. Each BA constitutes a
reportable segment. Operating segments that are not individually
reportable and certain corporate functions are combined into an
other operations reportable segment. For additional information, see Note C5 Segment Information. Segments are consolidated based on the same accounting principles as for the Group
as a whole, except for inter-segment finance leases which are
treated as operating leases. When significant operations are
transferred between segments, comparative period figures are
reclassified.
Foreign currency translation and inflation

adjustments
Currency translation is based on the fixing rates published daily
by Sveriges Riksbank (the Swedish central bank) and, for currencies where a fixing rate is not available, conversion of official
exchange rates versus the US dollar (USD).
Separate financial statements of a Group entity are presented
in the entitys functional currency, being the currency of the primary economic environment in which the entity operates, normally the local currency. In preparing the financial statements,
foreign currency transactions are translated at the exchange
rates prevailing at the date of each transaction. At the end of
each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the closing rates
existing at that date. Exchange rate differences arising from
operating receivables or liabilities are recognized in operating
income, while differences attributable to financial assets or liabilities are recognized in finance costs. Exchange rate differences on available-for-sale equity instruments and on cash flow
hedges are recognized in other comprehensive income.
The consolidated financial statements are presented in Swedish krona (SEK), which is the functional currency of the parent
company. For consolidation purposes, income and expenses of
foreign operations (subsidiaries, associated companies and joint
ventures, and branch offices) are translated at the average exchange rates for the period. However, for items related to dividends, gains or losses on disposal of operations or other major
transactions or if exchange rates fluctuated significantly during
the period, the exchange rates at the date of the transactions are
used. Assets and liabilities, including goodwill and fair value
adjustments arising on acquisition of foreign operations, are
translated at closing rates at the end of the reporting period ex-
27
not, but the fair value of undelivered items can be reliably determined, the residual method is used. Under the residual method,
the amount of consideration allocated to the delivered item(s)
equals the total arrangement consideration less the aggregate
fair value of the undelivered items. Customized equipment that
can be used only in connection with services or products provided by TeliaSonera is not accounted for separately and revenue is deferred over the total service arrangement period.
To corporate customers, TeliaSonera offers long-term functional service agreements for total telecom services, which may
include switchboard services, fixed telephony, mobile telephony,
data communication and other customized services. There are
generally no options for the customer to acquire the equipment
at the end of the service contract period. Revenue for such functionality agreements is recognized over the service period but
part of the periodic fixed fee is deferred to meet the costs at the
end of the contract period (maintenance and up-grades).
Service and construction contract revenues are recognized
using the percentage of completion method. The stage of completion is estimated using measures based on the nature and
terms of the contracts. When it is probable that total contract
costs will exceed total contract revenue, the expected loss is
immediately expensed.
Within the international carrier operations, sales of Indefeasible Rights of Use (IRU) regarding fiber and duct are recognized
as revenue over the period of the agreement (see also section
TeliaSonera as operating lessor below).
Finance costs and other financial items
Operating expenses
Income taxes
TeliaSonera presents its analysis of expenses using a classification based on function. Cost of sales comprises all costs for
services and products sold as well as for installation, maintenance, service, and support. Selling and marketing expenses
comprise all costs for selling and marketing services and products and includes expenses for advertising, PR, pricelists, commission fees, credit information, debt collection, etc. Bad debt
losses as well as doubtful debt allowances are also included.
Recovery of receivables written-off in prior years is included in
Other operating income. Research and development expenses
(R&D) include expenses for developing new or substantially
improving already existing services, products, processes or
systems. Maintenance and minor adjustments to already existing
products, services, processes or systems is not included in R&D.
Expenses that are related to specific customer orders (customization) are included in Cost of sales. Amortization, depreciation
and impairment losses are included in each function to the extent referring to intangible assets or property, plant and equipment used for that function.
Costs for retailer commissions, other customer acquisition
costs, advertising, and other marketing costs are expensed as
incurred.
Incomes taxes comprise current and deferred tax. Current and

deferred income taxes are recognized in net income or in other
comprehensive income, to the extent relating to items recognized in other comprehensive income. Deferred income taxes
are provided in full, using the balance sheet liability method, on
temporary differences arising between the tax bases of assets
and liabilities and their carrying values in the consolidated financial statements and on unutilized tax deductions or losses.
Where a subsidiary has a history of tax losses, TeliaSonera
recognizes a deferred tax asset only to the extent that the subsidiary has sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit will be
available.
On initial recognition of assets and liabilities, deferred taxes
are not recognized on temporary differences in transactions that
are not business combinations. Deferred tax liabilities for undistributed earnings or temporary differences related to investments in subsidiaries, associated companies and joint ventures
are not recognized because such retained earnings can be withdrawn as non-taxable dividends and the companies can be sold
without tax consequences. However, some foreign jurisdictions
impose withholding tax on dividends. In such cases, a deferred
tax liability is recognized, calculated by applying the respective
withholding tax rate on undistributed earnings. In certain countries, income tax is not levied on profits, but on dividends paid or
declared. In those cases, since current and deferred taxes
should be recognized at the rate of undistributed earnings, no
deferred tax is recognized and current tax is recognized in the
period when dividends are declared.
Current and deferred income tax is determined using tax rates
and tax legislation that have been enacted or substantively enacted at the end of the reporting period and in the case of deferred tax that are expected to apply when the related deferred
income tax asset or liability is settled. Effects of changes in tax
rates are recognized in the period when the change is substantively enacted. Deferred tax assets are recognized to the extent
that the ability of utilizing the tax asset is probable.
Interest on current tax payable or refundable calculated by tax
authorities is classified as Interest expenses and Other interest
income, respectively.
Interest income and expenses are recognized as incurred, using

the effective interest rate method, with the exception of borrowing costs directly attributable to the acquisition, construction or
production of an asset, which are capitalized as part of the cost
of that asset (see also section Intangible assets, and property,
plant and equipment below). Interest income and expenses also
include changes in fair value of the interest component of cross
currency interest rate swaps as well as changes in fair value of
interest rate swaps. The initial difference between nominal value
and net present value of borrowings with an interest rate different to market rate (day 1 gain) is amortized until due date and
recognized as Other interest income. The interest component of
changes in the fair value of borrowings measured at fair value
and of derivatives hedging loans and borrowings (see section
Derivatives and hedge accounting below) are included in Other
interest income (gains) or in Interest expenses (losses). Exchange rate differences on financial transactions comprise
changes in fair value of the currency component of cross currency interest rate swaps and of forward contracts hedging currency risks in external borrowings.
Dividend income from equity investments is recognized when
TeliaSoneras rights to receive payment have been established.
Income and expenses relating to guarantee commissions are
included in Other interest income and Interest expenses, respectively. Interest expenses include funding-related bank fees
and fees to rating institutions and market makers.
Other operating income and expenses

Other operating income and other operating expenses include
gains and losses, respectively, on disposal of shares or operations in subsidiaries (see section Associated companies and
joint ventures above) and on disposal or retirement of intangible
assets or property, plant and equipment.
Also included in other operating income and expenses are
government grants, exchange rate differences on operating
transactions, results from court-settled disputes with other operators regarding historical interconnect and roaming fees, restructuring costs and other similar items. Government grants are
initially measured at fair value and recognized as income over
the periods necessary to match them with the related costs.
Exchange rate differences on operating transactions include
effects from economic hedges and value changes in derivatives
hedging operational transaction exposure (see section Derivatives and hedge accounting below).
28
Intangible assets, and property, plant and equipment

Measurement bases
costs are capitalized if individually identifiable, such as interest

paid on construction loans for buildings.
Government grants received as compensation for the cost of
an asset are initially measured at fair value, normally being the
consideration received. A government grant reduces the carrying
value of the related asset and the depreciation charge recognized over the assets useful life.
Goodwill is measured, after initial recognition, at cost, less any

accumulated impairment losses. Goodwill is not amortized but
tested for impairment at least annually. Impairment losses are
not reversed. Based on management analysis, goodwill acquired
in a business combination is for impairment testing purposes
allocated to the groups of cash-generating units that are expected to benefit from the synergies of the combination. Each group
represents the lowest level at which goodwill is monitored for
internal management purposes and it is never larger than an
operating segment.
Other intangible assets are measured at cost, including directly attributable borrowing costs, less accumulated amortization and any impairment losses. Direct external and internal
development expenses for new or substantially improved products and processes are capitalized, provided that future economic benefits are probable, costs can be measured reliably and
the product and process is technically and commercially
feasible. Activities in projects at the feasibility study stage as well
as maintenance and training activities are expensed as incurred.
Mobile and fixed telecommunication licenses are regarded as
integral to the network and the amortization of a license does not
commence until the related network is ready for use. Intangible
assets acquired in a business combination are identified and
recognized separately from goodwill where they satisfy the definition of an intangible asset and their fair values can be measured reliably. The cost of such intangible assets is their fair value
at the acquisition date. Subsequent to initial recognition, intangible assets acquired in a business combination are measured on
the same basis as intangible assets acquired separately.
Fair values of intangible assets acquired in a business combination are determined as follows. Patents and trademarks are
valued based on the discounted estimated royalty payments that
have been avoided as a result of the patent or trademark being
owned. Customer relationships are valued using the multi-period
excess earnings method. For other intangible assets, income,
market and cost approaches are considered in a comprehensive
valuation analysis, by which the nature of the intangible asset,
any legal and contractual circumstances and the availability of
data will determine which approach(es) ultimately to be utilized
to derive each assets fair value.
Property, plant and equipment are measured at cost, including
directly attributable borrowing costs, less accumulated depreciation and any impairment losses. Software used in the production process is considered to be an integral part of the related hardware and is capitalized as plant and machinery. Property and plant under construction is valued at the expense already incurred, including interest during the installation period.
To the extent a legal or constructive obligation to a third party
exists, the acquisition cost includes estimated costs of dismantling and removing the asset and restoring the site. The cost of
replacing a part of an item of property, plant and equipment is
recognized in the carrying value of the item if it is probable that
the future economic benefits embodied within the item will flow
to TeliaSonera and the cost of the item can be measured reliably. All other replacement costs are expensed as incurred. A
change in estimated expenditures for dismantling, removal and
restoration is added to and/or deducted from the carrying value
of the related asset. To the extent that the change would result
in a negative carrying value, this effect is recognized in net income. The change in depreciation charge is recognized prospectively.
Fair values for property, plant and equipment acquired in a
business combination are determined as follows. Commercial
real estate is normally valued using an income or market approach, while technical buildings, plant and equipment are normally valued using a cost approach, in which the fair value is
derived based on depreciated replacement cost for the asset.
Capitalized interest is calculated, based on the Groups estimated average cost of borrowing. However, actual borrowing
Amortization and depreciation

Amortization on intangible assets other than goodwill and depreciation on property, plant and equipment is based on residual
values, and taking into account the estimated useful lives of
various asset classes or individual assets. Land is not depreciated. For assets acquired during a year, amortization and depreciation is calculated from the date of acquisition. Amortization
and depreciation is mainly recognized on a straight-line basis.
Impairment testing
Goodwill and other intangible assets with indefinite useful lives
(currently none existing) and intangible assets not yet available
for use are tested for impairment annually, and whenever there
is an indication that the asset may be impaired. Intangible assets
with a finite life and tangible assets are tested for impairment
whenever events or changes in circumstances indicate that the
carrying value of an asset may not be recoverable. Where it is
not possible to estimate the recoverable amount of an individual
asset, the recoverable amount of the cash-generating unit to
which the asset belongs is tested for impairment. If an analysis
indicates that the carrying value is higher than its recoverable
amount, which is the higher of the fair value less costs to sell
and value in use, an impairment loss is recognized for the
amount by which the carrying amounts exceeds the recoverable
amount.
Value in use is measured based on the expected future discounted cash flows (DCF model) attributable to the asset.
Financial instruments
Categories
Financial instruments are for measurement purposes grouped
into categories. The categorization depends on the purpose and
is determined at initial recognition. Category Financial assets at
fair value through profit and loss comprises derivatives not
designated as hedging instruments (held-for-trading) with a
positive fair value and investments held-for-trading. Category
Held-to-maturity comprises non-derivative financial assets with
fixed or determinable payments and fixed maturity that TeliaSonera has the positive intention and ability to hold to maturity.
This category includes commercial papers, certain government
bonds and treasury bills. Category Loans and receivables
comprises non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. This
category includes trade receivables, accrued revenues for services and goods, loan receivables, bank deposits and cash at
hand. Category Available-for-sale financial assets comprises
non-derivative financial assets that are designated to this category or not to any of the other categories. This category currently
includes equity instruments and convertible bonds. Assets included in the categories are reported under the statement of
financial position items Other non-current assets (Note C16),
Trade and Other receivables (Note C18), Interest-bearing Receivables, Cash and Cash Equivalents (Note C19).
Category Financial liabilities at fair value through profit and
loss comprises derivatives not designated as hedging instruments (held-for-trading) with a negative fair value. Category
Financial liabilities measured at amortized cost comprises all
other financial liabilities, such as borrowings, trade payables,
accrued expenses for services and goods, and certain provisions settled in cash. Liabilities included in the categories are
reported under the statement of financial position items Longterm and Short-term Borrowings (Note C21), Other Provisions
(Note C23), Other Long-term Liabilities (Note C24) and Trade
Payables and Other Current Liabilities (Note C25).
29
Fair value hierarchy levels

The carrying values of classes of financial assets and liabilities
measured at fair value were determined based on a three-level
fair value hierarchy, as follows.
Level
Fair value determination
Comprises
Quoted (unadjusted) prices in active markets for identical

assets or liabilities
Inputs other than quoted prices included in level 1 that are
observable for the asset or liability, either directly (prices) or
indirectly (derived from prices)
Inputs for the asset or liability that are not based on
observable market data (unobservable inputs)
Primarily quoted equity instruments classified as available-for-sale or

held-for-trading
Derivatives designated as hedging instruments or held-for-trading and
borrowings in fair value hedge relationships
Unquoted equity instruments classified as available-for-sale or held-fortrading
Transaction costs, impairment and derecognition
Current/non-current distinction
Financial assets and financial liabilities are initially recognized at

fair value plus transaction costs that are directly attributable to
the acquisition or issue of the financial asset or financial liability.
However, transaction costs related to assets or liabilities held for
trading or liabilities that are hedged items in a fair value hedge
are expensed as incurred. A financial asset is considered impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flow of
that asset. Individually significant financial assets are tested for
impairment on an individual basis. The remaining financial
assets are assessed collectively.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized
when TeliaSonera has transferred its rights to receive cash flows
from the asset and has transferred substantially all the risks and
rewards of the asset, or has transferred control of the asset.
A financial liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the
recognition of a new liability, and the difference between the
carrying amounts is recognized in net income.
Financial assets and liabilities maturing more than one year from
the end of the reporting period are considered to be non-current.
Other financial assets and liabilities are recognized as current.
Financial assets and liabilities are recognized and derecognized
applying settlement date accounting.
Financial assets measurement

Quoted equity instruments are measured at fair value, being the
quoted market prices. Unrealized gains and losses arising from
changes in fair value other than impairment losses up to the date
of sale are recognized in other comprehensive income and accumulated in the fair value reserve. If the fair value of a quoted
equity instrument declines, management makes assumptions
about the decline in value to determine whether it is an impairment that should be recognized in profit or loss. Evidence of
impairment is a significant or prolonged decline in the fair value
below the cost of the instrument. Unquoted equity instruments
whose fair value cannot be reliably determined are valued at
cost less any impairment. An impairment loss on an unquoted
equity instrument is calculated as the difference between the
carrying amount and the present value of estimated future cash
flows discounted at the current market rate of return for a similar
financial asset. Impairment losses on equity investments carried
at cost are not subsequently reversed and impairment losses on
equity instrument classified as available-for-sale are never reversed through net income.
Government bonds and treasury bills held-to-maturity are initially recognized at fair value and subsequently measured at
amortized cost, using the effective interest rate method, less
impairment. Receivables arising from own lending, except for
short-term receivables where the interest effect is immaterial,
are measured at amortized cost, using the effective interest rate
method, less impairment. An impairment loss on government
bonds and treasury bills and on receivables from own lending is
calculated as the difference between the carrying amount and
the present value of the estimated future cash flow discounted at
the original effective interest rate.
Short-term investments with maturities over 3 months comprise bank deposits, commercial papers issued by banks, bonds
and investments held-for-trading. Cash and cash equivalents
include cash at hand and bank deposits as well as highly-liquid
short-term investments with maturities up to and including
3 months, such as commercial papers issued by banks. All instruments are initially measured at fair value and subsequently
at fair value if categorized as held-for-trading, otherwise at amortized cost.
Fair value estimation

The fair values of financial instruments traded in active markets
are based on quoted market prices at the end of the reporting
period. For financial assets, the current bid price is used. The
fair values of financial instruments that are not traded in active
markets are determined by using valuation techniques. Management uses a variety of methods and makes assumptions that are
based on market conditions existing at the end of the reporting
period.
Quoted market prices or dealer quotes for similar instruments
are used for long-term debt. Other techniques, such as estimated discounted cash flows (DCF analyses), are used to determine fair value for the remaining financial instruments. DCF
analyses are performed using the applicable yield curve for the
duration of the instruments for non-optional derivatives, and
option pricing models for optional derivatives. Forward exchange
contracts are measured using quoted forward exchange rates
and yield curves derived from quoted interest rates matching
maturities of the contracts. Interest rate swaps are measured at
the present value of future cash flows, estimated and discounted
based on the applicable yield curves derived from quoted interest rates.
The carrying value less impairment provision of trade receivables and payables are assumed for disclosure purposes to
approximate their fair values. The fair value of financial liabilities
for disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is
available for similar financial instruments.
Financial liabilities measurement

Financial liabilities (interest-bearing loans and borrowings), except for short-term liabilities where the interest effect is immaterial, are initially recognized at fair value and subsequently measured at amortized cost, using the effective interest rate method.
Liabilities that are hedged against changes in fair value are,
however, measured at fair value. Any difference between the
proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognized over the term of the loan
30
of a derivative used as a cash flow hedge is recognized in net

income. However, when the hedged forecast transaction results
in the recognition of a non-financial asset or liability, the gains
and losses are included in the initial measurement of the cost of
the asset or liability.
Hedges of net investments in foreign operations are accounted
for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is
recognized in other comprehensive income. The gain or loss
relating to the ineffective portion is recognized in net income.
Gains and losses deferred in the foreign currency translation
reserve are recycled to net income on disposal of the foreign
operation.
Changes in the fair value of derivative instruments that do not
meet the criteria for hedge accounting are recognized in net
income.
Hedge accounting is not applied to derivative instruments that
economically hedge monetary assets and liabilities denominated
in foreign currencies (economic hedges) or that are initiated in
order to manage e.g. the overall interest rate duration of the debt
portfolio. Changes in the fair value of economic hedges are recognized in net income as exchange rate differences, offsetting
the exchange rate differences on monetary assets and liabilities.
Changes in the fair value of portfolio management derivatives
are recognized in net income as Finance costs.
or borrowings. Borrowings with an interest rate different to market rate are initially measured at fair value, being the net present
value applying the market interest rate. The difference between
the nominal value and the net present value is amortized until
due date.
Financial guarantee liabilities are contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value,
adjusted for transaction costs that are directly attributable to the
issue of the guarantee. Subsequently, the liability is measured at
the higher of the best estimate of the expenditure required to
settle the present obligation at the end of the reporting period
and the amount initially recognized.
Trade receivables and trade payables measurement

Trade receivables are initially recognized at fair value, normally
being the invoiced amount, and subsequently carried at invoiced
amount less impairment (bad debt losses), which equals amortized cost since the terms are generally 30 days and the recognition of interest would be immaterial. An estimate of the amount
of doubtful receivables is made when collection of the full
amount is no longer probable. An impairment loss on trade receivables is calculated as the difference between the carrying
amount and the present value of the estimated future cash flow.
Bad debts are written-off when identified and charged to Selling
and marketing expenses. Accrued trade payables are recognized at the amounts expected to be billable.
Trade payables are initially recognized at fair value, normally
being the invoiced amounts, and subsequently measured at
invoiced amounts, which equals amortized cost, using the effective interest rate method, since generally the payments terms
are such that the recognition of interest would be immaterial.
Inventories
Inventories are carried at the lower of cost and net realizable
value. Costs, including an appropriate portion of fixed and variable overhead expenses, are assigned to inventories held by the
method most appropriate to the particular class of inventory, with
the majority being valued on a first-in-first-out basis. Net realizable value represents the estimated selling price for inventories
less all estimated costs of completion and costs necessary to
make the sale. Obsolescence is assessed with reference to the
age and rate of turnover of the items. The entire difference between the opening and closing balance of the obsolescence
allowance is charged to cost of sales. The fair value of inventories acquired in a business combination is determined based
on the estimated selling price less the estimated cost of sale and
a reasonable profit margin.
Derivatives and hedge accounting

measurement and classification
TeliaSonera uses derivative instruments, such as interest and
cross currency interest rate swaps, forward contracts and options, primarily to control exposure to fluctuations in exchange
rates and interest rates. For hedging of net investments in foreign operations, TeliaSonera also uses financial liabilities.
Derivatives and embedded derivatives, when their economic
characteristics and risks are not clearly and closely related to
other characteristics of the host contract, are recognized at fair
value. Derivatives with a positive fair value are recognized as
non-current or current receivables and derivatives with a negative fair value as non-current or current liabilities. Currency
swaps, forward exchange contracts and options are classified as
non-interest-bearing and interest rate swaps and cross currency
interest rate swaps as interest-bearing items. For classification in
the statement of comprehensive income, see sections Other
operating income and expenses and Finance costs and other
financial items above.
Hedging instruments are designated as either fair value
hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. Documentation on hedges includes: the relationship between the hedging
instrument and the hedged item; risk management objectives
and strategy for undertaking various hedge transactions; and
whether the hedging instrument used is highly effective in offsetting changes in fair values or cash flows of the hedged item.
For fair value hedges, the effective and ineffective portions of
the change in fair value of the derivative, along with the gain or
loss on the hedged item attributable to the risk being hedged,
are recognized in net income.
For cash flow hedges, the effective portion of the change in
fair value of the derivative is recognized in other comprehensive
income until the underlying transaction is reflected in net income,
at which time any deferred hedging gains or losses are recycled
to net income. The ineffective portion of the change in fair value
Assets held-for-sale
Non-current assets and disposal groups are classified as heldfor-sale if their carrying value will be recovered principally
through a sale transaction rather than through continuing use.
This condition is regarded as met only when the sale is highly
probable and the asset (or disposal group) is available for immediate sale in its present condition. An asset-held-for-sale is
measured at the lower of its previous carrying value and fair
value less costs to sell.
Equity attributable to owners of the parent

Equity attributable to owners of the parent is divided into share
capital, other contributed capital, hedging reserve, fair value
reserve, foreign currency translation reserve, revaluation reserve, inflation adjustment reserve and retained earnings. Share
capital is the legally issued share capital. Other contributed
capital comprises contributions made by shareholders in the
form of share premiums in connection with new share issues,
specific share holder contributions, etc. This item is reduced by
reimbursements to shareholders made in accordance with
separately decided and communicated capital repayment programs (e.g. through purchasing own shares or extraordinary
dividends). The hedging reserve as well as the fair value reserve
and the foreign currency translation reserve are reclassified to
net income. Cash flow hedges may also adjust the initial cost of
a non-financial asset or liability. The valuation reserve is used in
connection with step acquisitions and the inflation adjustment
reserve when accounting for operations in hyperinflationary
economies. All other equity is retained earnings.
31
penses as applicable. Provisions for contingent consideration

are not charged to income, but increases goodwill.
A provision is recognized when TeliaSonera has a present obligation (legal or constructive) as a result of a past event; it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and a reliable
estimate can be made of the amount of the obligation. If the
likelihood of an outflow of resources is less than probable but
more than remote, or a reliable estimate is not determinable, the
matter is disclosed as a contingency provided that the obligation
or the legal claim is material.
Provisions are measured at managements best estimate, at
the end of the reporting period, of the expenditure required to
settle the obligation, and are discounted to present value where
the effect is material. From time to time, parts of provisions may
also be reversed due to better than expected outcome in the
related activities in terms of cash outflow.
Termination benefits are recognized when TeliaSonera is
committed to terminate the employment of an employee or group
of employees before the normal retirement date or as a result of
an offer made in order to encourage voluntary redundancy. Such
benefits are recognized only after an appropriate public announcement has been made specifying the terms of redundancy
and the number of employees affected, or after individual employees have been advised of the specific terms.
Onerous contracts are recognized when the expected benefits
to be derived by from a contract are lower than the unavoidable
cost of meeting the obligations under the contract. The provision
is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established
any impairment loss on the assets associated with that contract
is provided for.
Where there are a number of similar obligations, e.g. product
warranty commitments, the probability that an outflow will be
required in settlement is determined by considering the class of
obligations as a whole. A provision is recognized even if the
likelihood of an outflow with respect to any one item included in
the same class may be small but it is probable that some outflow
of resources will be needed to settle the class of obligations as a
whole.
Dividend payments are proposed by the Board of Directors in

accordance with the regulations of the Swedish Companies Act
and decided by the General Meeting of shareholders. The proposed cash dividend for 2009 will be recorded as a liability immediately following the final decision by the shareholders.

TeliaSonera provides defined benefit pension plans, which mean
that the individual is guaranteed a pension equal to a certain percentage of his or her salary, to most of its employees in
Sweden, Finland and Norway. The pension plans mainly include
retirement pension, disability pension and family pension. Employees in TeliaSonera AB and most of its Swedish subsidiaries
are eligible for retirement benefits under the ITP-Tele defined
benefit plan. As of January 1, 2007, a new defined contribution
pension plan (the ITP1 plan) was introduced. This pension plan
is applicable to all employees born in 1979 and later. TeliaSoneras employees in Finland are entitled to statutory pension
benefits pursuant to the Finnish Employees Pension Act, a defined benefit pension arrangement with retirement, disability,
unemployment and death benefits (TEL pension). In addition,
certain employees have additional pension coverage through a
supplemental pension plan.
The pension obligations are secured mostly by pension funds,
but also by provisions in the statement of financial position combined with pension credit insurance. In Sweden, the part of the
ITP multiemployer pension plan that is secured by paying pension premiums is accounted for as a defined contribution plan as
the plan administrator does not provide any information necessary to account for the plan as a defined benefit plan. In Finland,
a part of the pension is funded in advance and the remaining
part financed as a pay-as-you-go pension (i.e. contributions are
set at a level that is expected to be sufficient to pay the required
benefits falling due in the same period).
TeliaSoneras employees in many other countries are usually
covered by defined contribution pension plans. Contributions to
the latter are normally set at a certain percentage of the employees salary and are expensed as incurred.
The present value of pension obligations and pension costs
are calculated annually, using the projected unit credit method.
Actuarial assumptions are determined at the end of the reporting
period. The assets of TeliaSoneras pension funds constitute
pension plan assets and are valued at fair value.
Changes in the present value of pension obligations due to revised actuarial assumptions as well as differences between expected and actual return on plan assets are treated as actuarial
gains or losses. When the net cumulative unrecognized actuarial
gain or loss on pension obligations and plan assets goes outside
a corridor equal to 10 percent of the higher of either pension
obligations or the fair value of plan assets at the beginning of the
year, the surplus amount is amortized over the average expected remaining employment period.
Net provisions or assets for post-employment benefits in the
statement of financial position represent the present value of
obligations at the end of the reporting period less the fair value
of plan assets, unrecognized actuarial gains and losses and
unrecognized past-service costs.
Leasing agreements
Leases are classified as finance leases whenever the terms of
the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating
leases.
TeliaSonera as lessee
As a lessee, TeliaSonera has entered into finance and operating
leases and rental contracts. For a finance lease agreement, the
leased asset is recognized as a tangible non-current asset and
the future obligation to the lessor as a liability, capitalized at the
inception of the lease at the lower of the fair value of the leased
property or the present value of the minimum lease payments.
Initial direct costs are added to the capitalized amount. Minimum
lease payments are apportioned between the finance charges
and reduction of the lease liability to produce a constant rate of
interest on the remaining balance of the liability. Finance charges are charged directly to net income. Other agreements are
operating leases, with the leasing costs recognized evenly
throughout the period of the agreement.
Other provisions and contingencies

Restructuring provisions include termination benefits, onerous
contracts and other expenses related to competitive cost level
programs, post-merger integration programs, closing-down of
operations, etc. Restructuring provisions are mainly recognized
as Other operating expenses, since they are not expenses for
post-decision ordinary activities.
Other provisions also include contingent consideration resulting from business combinations or from put options granted to
minority shareholders in existing subsidiaries, warranty commitments, environmental restoration, litigation, onerous contracts
not related to restructuring activities, etc. Such provisions are
recognized as Cost of sales, Selling and marketing expenses,
Administrative expenses or Research and development ex-
TeliaSonera as finance lessor

TeliaSonera owns assets that it leases to customers under finance lease agreements. Amounts due from lessees are recorded as receivables at the amount of the net investment in the
leases, which equals the net present value. Initial direct costs
are included in the initial measurement of the financial lease
receivable and reduce the amount of income recognized over
the lease term. Income is recognized over the lease term on an
annuity basis.
32
TeliaSonera as operating lessor

Rental revenues from operating leases are recognized on a
straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating
lease are added to the carrying value of the leased asset and
are recognized on the same basis as the lease revenues.
Fiber and duct are sold as part of the operations of TeliaSoneras international carrier business. TeliaSonera has decided to
view these as integral equipment to land. Under the agreements,
title is not transferred to the lessee. The transactions are therefore recorded as operating lease agreements. The contracted
sales price is mainly paid in advance and sales that are not recognized in income are recorded as long-term liabilities or shortterm deferred revenues.
C4. Changes in Group Composition

Minor business combinations
In 2009 and in order to strengthen its market position, TeliaSonera acquired Tele2s broadband and VoIP operations in Norway,
the Swedish IT security company Protexion Sverige AB (100
percent), the Norwegian retailer Mobilconsult AS (100 percent)
and the web hosting services provider UAB Interdata in Lithuania (100 percent).
For additional information, see Note C34 Business Combinations, etc.
Divestitures
Segment consolidation is based on the same accounting principles as for the Group as a whole, except for inter-segment finance leases which are treated as operating leases. 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 2008 have been restated to reflect the certain limited organizational restructuring effective
January 1, 2009. The retail chain Veikon Kone Oy and the cableTV company Telia Stofa A/S were moved from Broadband Services to Other operations.
On June 3, 2009, TeliaSonera sold its 24 percent shareholding

in SmartTrust AB, which provides software for managing applications on SIM cards and mobile phones.
C5. Segment Information

The Groups operations are managed and reported by business
area (BA) as follows.
Business area Mobility Services provides mobility services to

the consumer and enterprise mass markets. Services in-
SEK in millions
Net sales
External net sales
Non-recurring items
Operating income/loss
Financial items, net
Income taxes
Net income
Other operating segment assets
Unallocated operating assets
Other unallocated assets
Total assets
Operating segment liabilities
Unallocated operating liabilities
Other unallocated liabilities
Adjusted equity
Mobility
Services
51,077
48,801
14,961
452
4,424
1
clude mobile voice and data, mobile content, WLAN Hotspots, mobile broadband, mobile/PC convergence and
Wireless Office. The business area comprises mobile operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain.
Business area Broadband Services provides mass-market
services for connecting homes and offices. Services include
broadband over copper, fiber and cable, IPTV, voice over
internet, home communications services, IP-VPN/Business
internet, leased lines and traditional telephony. The business
area operates the group common core network, including
the data network of the international carrier business, and
comprises operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia (49 percent), Estonia and international carrier operations.
Business area Eurasia comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia,
Moldova, Nepal and Cambodia. The business area is also
responsible for developing TeliaSoneras shareholding in the
mobile operators MegaFon in Russia and Turkcell in Turkey.
Other operations comprise Other Business Services, TeliaSonera Holding and Corporate functions. Other Business
Services is responsible for sales and production of managed-services solutions to business customers. TeliaSonera
Holding is responsible for the Groups non-core/non-strategic operations. Corporate functions comprise the Corporate
Head Office and certain shared service functions on Group
level, BA level and country level.
JanuaryDecember 2009 or December 31, 2009

Broadband
Other
EliminaServices
operations
tions
Eurasia
43,342
14,866
5,561
5,685
40,472
14,863
5,025
13,922
7,469
314
1,158
282
97
5,422
2,389
715
18
78
7,747
191
10,084
7,420
13,109
307
18
345
95,133
854
55,542
40,964
30,750
355
6,879
2,379
12,427
14,172
10,514
5,318
2,422
4,895
3,867
7,506
7,419
6,672
4,942
13,645
13,161
4,486
4,416
4,888
4,759
813
781
3,695
3,476
17
1

Investments
of which CAPEX
Number of employees
Average number of full-time employees
Group
109,161
109,161
36,666
1,425
12,932
8,015
30,324
2,710
6,334
21,280
42,518
185,925
11,382
29,845
269,670
40,009
24,753
72,513
132,395
269,670
33
16,849
14,007
29,734
28,815
JanuaryDecember 2008 or December 31, 2008 (restated)

Broadband
Other
EliminaServices
operations
tions
Eurasia
Mobility
Services
SEK in millions
Net sales
External net sales
Non-recurring items
48,673
46,259
14,399
397
4,354
122
42,625
39,712
11,705
1,189
5,382
151
13,204
13,196
6,553
1,883
9,061
4,906
4,418
333
290
523
6
5,823
36
36
9,526
5,285
13,731
106
96
93,159
974
56,786
38,100
34,088
373
7,519
1,375
12,795
13,854
13,141
6,109
1,396
4,771
4,467
8,339
7,777
6,311
5,810
15,410
14,563
12,691
4,595
4,780
4,276
1,079
919
3,642
3,421
3
4
Operating income/loss
Financial items, net
Income taxes
Net income
Other operating segment assets
Unallocated operating assets
Other unallocated assets
Total assets
Operating segment liabilities
Unallocated operating liabilities
Other unallocated liabilities
Adjusted equity
Group
103,585
103,585
32,954
1,296
12,106
9,096
28,648
2,237
4,969
21,442
39,543
190,177
13,397
21,169
264,286
44,503
20,597
65,821
133,365
264,286
Investments
of which CAPEX
Number of employees
Average number of full-time employees
24,855
15,795
32,171
30,037
External net sales were distributed by product area as follows.
SEK in millions
Mobile communications
Fixed communications
Other services
Total
JanDec
2009
JanDec
2008
59,521
41,399
8,241
109,161
56,213
39,833
7,539
103,585
Fixed communications include internet, data and TV services as

well as managed services. Other services include equipment
sales and financial services.
Net sales by external customer location and non-current assets, respectively, were distributed among individually material countries as
follows.
JanDec 2009
JanDec 2008
Dec 31, 2009
Net sales
SEK in
millions
Sweden
Finland
Norway
All other countries
Total
36,323
17,891
10,162
44,785
Percent
33.3
16.4
9.3
41.0
109,161
100.0
SEK in
millions
35,890
16,781
10,287
40,627
Percent
34.7
16.2
9.9
39.2
103,585
100.0
34
SEK in
millions
Dec 31, 2008
Non-current assets
SEK in
millions
Percent
24,174
45,603
31,670
60,606
14.9
28.2
19.5
37.4
22,373
48,604
28,455
63,672
Percent
13.7
29.8
17.5
39.0
162,054
100.0
163,104
100.0
C7. Expenses by Nature
Net sales by external customer location were distributed among

economic regions as follows.
European Economic Area

(EEA)
of which European Union
(EU) member states
Rest of Europe
North-American Free Trade
Agreement (NAFTA)
Rest of world
Total
Operating expenses are presented on the face of the statement

of comprehensive income using a classification based on the
functions Cost of sales, Selling and marketing expenses,
Administrative expenses and Research and development
expenses. Total expenses by function were distributed by
nature as follows.
JanDec 2009
JanDec 2008
SEK in
SEK in
millions Percent millions Percent
92,029
84.3
88,448
85.4
81,845
75.0
78,108
75.4
2,968
714
2.7
0.7
1,419
688
1.4
0.6
13,450
12.3
13,030
12.6
109,161
100.0
103,585
100.0
SEK in millions
Goods and sub-contracting services
purchased
Interconnect and roaming expenses
Other network expenses
Personnel expenses (see also Note C32)
Marketing expenses
Other expenses
Amortization, depreciation and impairment
losses
The TeliaSonera Group offers a diversified portfolio of massmarket services and products in highly competitive markets.
Hence, the Groups exposure to individual customers is limited.
Total
C6. Net Sales
Change in net sales, total

volume growth
price reductions
structural changes
exchange rate effects
JanDec
2009
JanDec
2008
5.4
6.2
6.5
1.1
4.6
7.5
9.7
5.8
1.5
2.1
JanDec
2008
16,625
16,016
17,307
5,038
213
14,806
6,999
11,763
12,932
16,663
4,602
56
15,056
7,423
11,380
12,057
85,683
83,253
The main components of Other expenses are rent and leasing

fees, consultants services, IT expenses, energy expenses and
travel expenses. In conjunction with measuring the outcome of
efficiency measures, TeliaSonera uses the concept Addressable
cost base, which comprises Personnel expenses, Marketing
expenses and Other expenses and totaled SEK 33,568 million in
2009 and SEK 33,859 million in 2008.
Amortization, depreciation and impairment losses by function
were as follows.
The distribution of change in net sales in terms of volume

effects, price effects, structural effects and exchange rate effects
was as follows.
Percent
JanDec
2009
JanDec
2009
JanDec
2008
Cost of sales
10,946
1,108
813
65
10,136
1,133
737
51
Total
12,932
12,057
SEK in millions
TeliaSonera experienced volume growth mainly within mobile

communications and broadband in almost all of its geographical
markets. Volume growth was especially strong in the Eurasian
operations due to ongoing high customer intake. In 2009, however, total volume growth was more than offset by continued
overall price pressure on telecom services. Over time, the impact from currency fluctuations is increasing.
Structural changes in 2009 mainly related to the acquisitions of
Tele2s broadband and VoIP operations in Norway as well as the
acquisitions in 2008 of Avansys in Sweden, ComHouse in Norway and the mobile operations in Nepal and Cambodia, while
2008 was also impacted by the acquisitions in 2007 of Cygate in
Sweden, debitel Danmark and the mobile operations in Uzbekistan and Tajikistan.
Net sales are broken down by reportable segment, by product
area, by individually material countries and by economic region
in Note C5 Segment Information.
Amortization, depreciation and impairment losses are broken

down by reportable segment in Note C5 Segment Information.
For a discussion on impairment testing, see Note C13 Goodwill
and Other Intangible Assets.
35
C8. Other Operating Income and

Expenses
Turkcells financials are included in TeliaSoneras reporting with

a one-quarter lag. SmartTrust AB was divested in 2009.
Other operating income and expenses were distributed as

follows.
SEK in millions
Capital gains
Exchange rate gains
Commissions, license and patent fees, etc.
Grants
Recovered accounts receivable, released
accounts payable
Compensation for damages
Total other operating income
Capital losses
Provisions for onerous contracts
Exchange rate losses
Restructuring costs
losses
Damages paid
JanDec
2009
JanDec
2008
34
216
219
27
267
64
267
265
37
25
343
97
1,106
755
182
11
266
1,458
0
97
0
341
986
49
358
62
Total other operating expenses
2,275
1,535
Net effect on income

of which net exchange rate losses on
derivative instruments
held-for-trading
1,169
0
780
13
C10. Finance Costs and Other Financial

Items
Finance costs and other financial items were distributed as
follows.
In 2009, compensation for damages included SEK 282 million as

a result of the agreement with Altimo to combine the two companies ownership interests in Turkcell Iletisim Hizmetleri A.S. in
Turkey and OAO MegaFon in Russia into a new company. Restructuring costs mainly relates to staff redundancy costs. In
2008, this item also included a SEK 360 million reversal of a
provision for onerous lease and maintenance contracts relating
to a French fiber network.
JanDec
2008
7,995
121
141
9,257
146
15
8,015
9,096
Income is broken down by reportable segment in Note C5 Segment Information. Large individual stakes (including capital
gains/losses and intermediate holding companies, when applicable) impacted earnings as follows.
SEK in millions
JanDec
2009
JanDec
2008
Svenska UMTS-nt AB, Sweden (joint

venture)
SIA Lattelecom, Latvia
OAO MegaFon, Russia
Turkcell Iletisim Hizmetleri A.S., Turkey
SmartTrust AB, Sweden
Other holdings
120
77
4,691
3,056
149
42
151
5,070
3,991
4
8
8,015
9,096
Finance costs
Interest expenses
Interest expenses on finance leases
Unwinding of provision discounts
Capitalized interest
Net exchange rate gains and losses
2,672
10
190
94
413
3,477
2
147
58
115
Total finance costs
3,191
3,683
413
21
0
1
1,429
29
4
0
21
1
69
13
Other financial items

Interest income
Interest income on finance leases
Credit losses on finance leases
Dividends from financial investments
available-for-sale
Changes in fair value on venture capital
investments
Capital losses on equity instruments at cost
Impairment losses on equity instruments at
cost
Remitted long-term vendor financing
137
Total other financial items
481
1,446
2,710
2,237
Interest income in 2008 included received penalty interest of

SEK 290 million related to court rulings on certain historical
interconnect fees.
The net effect on income from holdings in associated companies

and joint ventures was as follows.
JanDec
2009
JanDec
2008
C9. Income from Associated

Companies and Joint Ventures
SEK in millions
Share in net income for the year
Amortization of fair value adjustments
Net capital gains/losses
JanDec
2009
SEK in millions
36
Details on interest expenses, net exchange rate gains and losses and interest income related to hedging activities, loan receivables and
borrowings were as follows.
JanDec
2009
SEK in millions
JanDec
2008
JanDec
2009
JanDec
2009
Net exchange rate

gains and losses
Interest expenses
173
211
2
572
2,514
JanDec
2008
1,348
81
456
559
1,348
435
JanDec
2008
Interest income
Fair value hedge derivatives

Cash flow hedge derivatives
Derivatives held-for-trading
Held-to-maturity investments
Loans and receivables
Borrowings in fair value hedge relationships
Borrowings and other financial liabilities at amortized
cost
Other
245
118
97
988
1,894
2,047
75
3,850
2,514
2,047
1,376
0
405
5
1,428
14
Total
2,672
3,477
413
115
413
1,429
Borrowings at amortized cost include items in cash flow hedge relationships as well as unhedged items.
C11. Income Taxes
Pre-tax income was SEK 27,614 million in 2009 and SEK 26,411
million in 2008. The difference between the nominal Swedish
income tax rate and the effective tax rate comprises the following components.
Tax items recognized in net income and in other

comprehensive income
Tax items recognized in net income and in other comprehensive
income were distributed as follows.
SEK in millions
Tax items recognized in net income
Current tax expense relating to current year
Underprovided or overprovided current tax
expense in prior years
Deferred tax expense originated or reversed
in current year
Recognition of previously unrecognized
deferred taxes
Effect on deferred tax income (+)/expense ()
from changes in tax rates
Total tax expense recognized in net
income
Tax items recognized in other
Current tax relating to current year
Deferred tax originated or reversed in current
year
Total tax recognized in other
JanDec
2009
JanDec
2008
3,315
262
3,083
36
3,262
2,926
19
625
38
451
6,334
4,969
279
17
303
87
296
390
Percent
Swedish income tax rate
Effect of higher or lower tax rates in subsidiaries
Withholding tax on earnings in subsidiaries,
associated companies and joint ventures
Recognition of previously unrecognized deferred
taxes
Effect on deferred tax expense from changes in
tax rates
Income from associated companies and joint
ventures
Current year losses for which no deferred tax
asset was recognized
Non-deductible expenses
Tax-exempt income
Effective tax rate
Effective tax rate excluding effects from
associated companies and joint ventures
JanDec JanDec
2009
2008
26.3
0.5
3.5
28.0
2.4
4.8
0.9
0.1
0.1
2.4
0.1
1.7
7.6
9.7
1.6
1.9
0.6
0.1
22.9
28.1
0.4
0.2
18.8
25.0
Deferred tax assets and liabilities

Deferred tax assets and liabilities changed as follows.
In November 2009, enacted changes to the tax legislation in

Kazakhstan postponed the effective dates of the previously
decided corporate income tax-rate cuts from 2010 and 2011 to
2013 and 2014, respectively. In December 2009, enacted
changes to the Lithuanian tax legislation involved a reduction of
the corporate income tax rate from 20 percent to 15 percent,
effective January 1, 2010.
In 2008, SEK 395 million of the effect from changes in tax
rates referred to the Swedish operations, following the reduction
of the Swedish corporate income tax rate from 28 percent to
26.3 percent, which was enacted in 2008 and effective
January 1, 2009.
SEK in millions
Deferred tax assets
Opening balance
Comprehensive income period change
Operations acquired
Reversals of offset tax liabilities/assets, other
reclassifications
Deferred tax assets, closing balance
Opening balance
Operations acquired
Operations divested
Reversals of offset tax assets/liabilities, other
reclassifications
Deferred tax liabilities, closing balance
37
Dec 31,
2009
Dec 31,
2008
13,206
943
264
12,017
926
22
379
822
1,714
11,177
13,206
11,260
2,355
40
9,577
837
464
563
353
365
13,210
592
11,260
Temporary differences in deferred tax assets and liabilities were

as follows.
Dec 31,
2009
Dec 31,
2008
48
6,604
48
6,654
251
196
8,527
655
135
10,151
15,626
17,643
40
4,137
4,137
312
3,927
3,967
470
Total deferred tax assets

Withholding taxes and impairment losses,
subsidiaries and associated companies
Accelerated depreciation and fair value
adjustments, other non-current assets
Fair value adjustments, provisions
Delayed revenue recognition, current
receivables
Profit equalization reserves
11,177
13,206
2,643
2,082
8,040
6,535
1,098
34
1,521
34
1,707
1,558
Subtotal
Offset deferred tax assets/liabilities
13,522
312
11,730
470
Total deferred tax liabilities

Net deferred tax assets
13,210
2,033
11,260
1,946
170
917
SEK in millions
Gross deferred tax assets
Unrealized gain, associated companies
Delayed depreciation, impairment losses
and fair value adjustments, other noncurrent assets
Delayed expenses for provisions
Doubtful current receivables
Tax loss carry-forwards
Subtotal
Valuation allowances
Delayed depreciation, other non-current
assets
Subtotal
Offset deferred tax liabilities/assets
Net increase (+)/decrease () in valuation

allowance
Unrecognized deferred tax assets, as reflected by the valuation allowance at December 31, 2009, are expected to expire as follows.
Expected expiry
SEK in millions
Unrecognized deferred tax assets
2010
2011
2012
2013
2014
320
53
15
23
2015
2026 Unlimited
Total
2,950
4,137
776
taxable temporary differences totaling SEK 12.2 billion. As is the

normal case for start-up operations, management projects tax
losses also during the next few years.
At the current stage of the 3G market and due to the decreases in equipment prices in the past few years, management
is, however, confident that Xfera will be able to generate taxable
profits, and has prepared a robust business plan based on a
sound business model with detailed and benchmarked data, and
has also convinced other parties to invest alongside TeliaSonera. As a result, management believes that the current tax
losses will be utilized before they expire after 15 years from the
first profitable year. However, management acknowledges that
the threshold for recognizing deferred tax assets in a situation of
recurring historical losses is higher than for other assets, and
has therefore reduced its projections to a level which it is convinced that Xfera will reach. As of December 31, 2009, based on
these projections, management has recognized a deferred tax
asset of SEK 719 million after valuation allowance.
As of December 31, 2009 and 2008, unrecognized deferred tax

liabilities for undistributed earnings in subsidiaries, including
estimated such income tax that is levied on dividends paid,
totaled SEK 762 million and SEK 955 million, respectively.

Deferred tax assets originating from tax loss carry-forwards
mainly relate to Finland and Spain.
Tax losses in Finland refer mainly to impairment losses on the
European 3G investments recognized by TeliaSonera Finland
Oyj (formerly Sonera Oyj) in 2002 and to capital losses on
shares divested in 2003 by another subsidiary within the Finnish
tax group.
Tax losses in Spain refer to the Spanish 3G mobile network
operator Xfera Mviles S.A., acquired in 2006. Xfera is a start-up
operation that has reported tax losses since its incorporation in
2000, due to annual spectrum fees paid to the Spanish government, depreciation and write-downs of earlier investments, other
pre-operating costs and additional operating losses incurred
thereafter. As of December 31, 2009, Xfera had tax losses and
38
TeliaSoneras accumulated tax loss carry-forwards were SEK 30,436 million in 2009 and SEK 36,822 million in 2008. Tax loss carryforwards as of December 31, 2009 are expected to expire as follows.
Expected expiry
SEK in millions
2010
2011
2012
2013
2014
2015
2026
Unlimited
Total
14
1,270
9,606
2,756
907
12,234
3,649
30,436
Most of the Finnish tax loss carry-forwards expire in 2012.
C12. Other Comprehensive Income

Other comprehensive income was distributed as follows.
SEK in millions
Equity component
Foreign currency translation differences

Translation of foreign operations
Translation of foreign minority interests
Foreign operations divested
Hedging of foreign operations
Income tax effect
Foreign currency translation reserve

Minority interests
Total foreign currency translation differences

of which attributable to owners of the parent
Net changes in fair value of available-for-sale financial instruments
Total income from associated companies
Cash flow hedges
Net changes in fair value
Transferred to finance costs in net income
Income tax effect
Total cash flow hedges
Jan-Dec
2009
Jan-Dec
2008
6,853
1,554
9
1,061
279
13 222
1 675
1 083
303
7,634
6,080
14 117
12,442
11
177
0
37
188
37
16
73
17
349
18
87
72
244
Fair value reserve

Hedging reserve
Hedging reserve
Hedging reserve
Fair value reserve
34
97
34
97
7,340
296
13 739
390
Total available-for-sale financial instruments

Total other comprehensive income
of which total income tax effects (see also Note C11)
C13. Goodwill and Other Intangible

Assets
The hedging reserve comprises gains and losses on derivatives

hedging interest rate and foreign currency exposure, with a positive net effect in equity of SEK 72 million as of December 31,
2009. Future gains or losses will affect net income in 2010
2011, 20132014, 20162017 and 2019 when the hedged items
mature. No hedging reserve transfer necessitated adjustment of
the cost of acquisition. See also section Financial Instruments
in Note C3 Significant Accounting Policies.
The total carrying value was distributed and changed as follows.

Dec 31, Dec 31, Dec 31, Dec 31,
2009
2008
2009
2008
SEK in millions
39
Goodwill
Other intangible
assets
Accumulated cost
Accumulated amortization
Accumulated impairment losses
Advances
Carrying value
of which work in progress
Carrying value, opening balance
Investments
of which capitalized interest
Sales and disposals
Operations acquired
Operations divested
Grants received
Reclassifications
Adjustments related to minority
put options
Amortization for the year
Impairment losses for the year
Advances
86,137
400
85,737
84,431
1,776
11
201
38
84,847 33,143 33,553

17,728 16,157
416
955
861
42
2
84,431 14,502 16,537
1,215
1,380
71,172 16,537 12,737
6,882
1,923
4,195
50
29
17
22
67
112
0
0
3
122
139
255
694
6,499
2,688
109
39
1,111
2,450
95
1
1,807
Carrying value, closing balance
85,737
84,431
14,502
16,537
Apart from goodwill, there are currently no intangible assets with

indefinite useful lives. No general changes of useful lives were
made in 2009. For amortization rates applied, see section Useful lives in Note C2 Key Sources of Estimation Uncertainty. In
the statement of comprehensive income, amortization and impairment losses are included in all expense line items by function as well as in line item Other operating expenses.
The total carrying value of goodwill was distributed by reportable segment as follows.
Dec 31,
2009
Dec 31,
2008
Business area Mobility Services

of which Finland
of which Norway
of which Denmark
Business area Broadband Services
of which Finland
Business area Eurasia
of which Azerbaijan
of which Uzbekistan and Tajikistan
of which Nepal and Cambodia
Other operations
60,241
23,267
25,464
5,154
13,769
9,270
11,054
4,727
2,365
3,126
673
58,256
24,584
22,591
5,427
13,477
9,792
12,028
4,845
2,818
3,190
670
Total goodwill
85,737
84,431
SEK in millions
Capitalized development expenses mainly refer to IT systems,

supporting the selling and marketing, and administrative functions.
Impairment testing
Goodwill is for impairment testing purposes allocated to cashgenerating units in accordance with TeliaSoneras business
organization. In most cases, each geographical market within
the respective reportable segment constitutes a cash-generating
unit. Carrying values (for impairment testing purposes defined as
operating capital and notionally adjusted for minority interest in
goodwill) of all cash-generating units are annually tested for
impairment. The recoverable amounts (that is, higher of value in
use and fair value less cost to sell) are normally determined on
the basis of value in use, applying discounted cash flow calculations. From time to time, TeliaSonera may also obtain independent appraisals of fair values to determine recoverable
amounts.
In the value in use calculations, management used assumptions that it believes are reasonable based on the best information available as of the date of the financial statements. The key
assumptions were sales growth, EBITDA margin development,
the weighted average cost of capital (WACC), and the terminal
growth rate of free cash flow. The calculations were based on
forecasts approved by management, which management believes reflect past experience, forecasts in industry reports, and
other externally available information. The forecast period was
5 years. However, a forecast period of 10 years was used for
cash-generating units where the investment is of a start-up nature and/or put options have been granted to minority shareholders.
The total carrying value of other intangible assets was distributed by asset type as follows.
SEK in millions
Trade names
Licenses
Customer and vendor relationships,
interconnect and roaming agreements
Patents, etc.
Leaseholds, etc.
Work in progress, advances
Total other intangible assets
Dec 31,
2009
Dec 31,
2008
241
5,812
4,151
365
5,764
6,145
2,038
460
543
1,257
2,052
625
204
1,382
14,502
16,537
The forecast periods used, and the post-tax WACC rates and the terminal growth rates of free cash flow used to extrapolate cash flows
beyond the forecast period varied by reportable segment and geographic area as follows.
Years/Percent
Forecast period (years)
WACC rate (%)
Terminal growth rate (%)
Business area Broadband
Services
WACC rate (%)
Other operations
WACC rate (%)
Years/Percent
WACC rate (%)
Sweden
Finland
Norway
Denmark
Lithuania
Latvia
Estonia
Spain
5
5.9
2.0
5
6.0
2.0
5
6.4
2.0
5
6.0
2.0
5
8.8
2.0
5
10.9
2.0
5
9.5
2.0
10
6.2
2.0
5
5.9
1.0
5
6.0
1.0
5
6.4
1.0
5
6.0
1.0
5
8.2
1.0
5
9.4
1.0
5
8.1
1.0
5
6.0
1.02.0
Azerbaijan
5
6.4
2.0
Uzbekistan
5
6.0
2.0
Tajikistan
Georgia
Moldova
Nepal
Cambodia
10
12.3
2.0
10
21.0
3.5
5
19.2
2.0
5
14.4
2.0
5
18.5
2.0
10
17.7
5.0
10
13.8
3.0
5
5.9
1.02.0
Kazakhstan
5
11.8
2.0
In all cases management believes the terminal growth rates to

not exceed the average growth rates for markets in which TeliaSonera operates.
40
The following table sets out to what extent each key assumption
approximately must change, all else being equal, in order for the
recoverable value of Eurasia Cambodia to change by 10 percent, or by SEK 0.1 billion.
As of December 31, 2009, the recoverable values based on

value in use of the cash-generating units were found not to fall
short of their carrying values in any test and therefore the related
goodwill was not impaired. For cash-generating unit Eurasia
Cambodia, with a carrying value for impairment testing purposes
of SEK 1,015 million (of which goodwill SEK 365 million), the
estimated recoverable value corresponded to the carrying value.
The minority interest in Eurasia Cambodia is 49 percent. The
impairment test assumed, in addition to the post-tax WACC rate
and the terminal growth rate stated above, the sales growth to
range from 120 percent to 10 percent during the next 10 years
and the EBITDA margin during the same period to range from 112 percent to 45 percent.
Sales growth in the 10-year period
+0.9 percentage points
EBITDA margin in the 10-year period and

beyond
Terminal growth rate of free cash flow
Post-tax WACC rate
0.5 percentage points
C14. Property, Plant and Equipment

The carrying value was distributed and changed as follows.
Dec 31,
2009
SEK in millions
Dec 31,
2008
Property
Dec 31,
2009
Dec 31,
2008
Dec 31,
2009
Dec 31,
2008
Plant and machinery

Mobile networks
Fixed networks
Dec 31,
2009
Dec 31,
2008
Dec 31,
2009
Equipment, tools
and installations
Dec 31,
2008
Total
Accumulated cost
Accumulated depreciation
Advances
8,861
4,050
494
9,048
3,831
509
59,760
36,708
408
918
58,333
33,630
405
506
129,112
85,769
12,238
127,983
84,314
13,544
9,959
7,209
512
8,592
207,692 203,956
6,026 133,736 127,801
257
13,652 14,715
918
506
Carrying value
of which assets under
construction
Investments
of which capitalized interest
Sales and disposals
Dismantling and restoration
Operations acquired
Operations divested
Grants received
Reclassifications
Depreciation for the year
Advances
4,317
4,708
23,562
4,018
24,804
3,753
31,105
1,583
30,125
1,792
2,238
2,309
61,222
5,601
61,946
5,545
4,708
166
2
36
82
359
244
4,062
415
1
18
90
324
11
24
518
24,804
6,392
16
46
9
922
4,644
40
412
2,403
19,334
6,805
10
116
2
125
191
4,178
17
20
3,020
30,125
4,072
24
49
1,045
2
0
500
4,005
61
524
27,531
5,012
17
3
418
326
2
5
235
4,035
100
1
1,219
2,309
860
1
33
30
133
1,020
2
39
1,675
905
1
18
83
492
889
7
1
69
61,946
11,490
43
164
1,054
32
207
10,028
103
412
3,210
52,602
13,137
29
155
420
534
2
5
156
9,426
135
6
4,826
Carrying value,
closing balance
4,317
4,708
23,562
24,804
31,105
30,125
2,238
2,309
61,222
61,946
Group property in Sweden has been assessed for tax purposes

as follows.
No general changes of useful lives were made in 2009. For depreciation rates applied, see section Useful lives in Note C2
Key Sources of Estimation Uncertainty. In the statement of
comprehensive income, depreciation and impairment losses are
included in all expense line items by function as well as in line
item Other operating expenses. For information on contractual
obligations regarding future acquisitions of property, plant and
equipment, see Note C30 Contingencies, Other Contractual
Obligations and Litigation.
Dec 31,
2009
Dec 31,
2008
Buildings
Land and land improvements
307
70
308
70
Tax-assessed value
377
378
SEK in millions
At property taxations in 2009, a number of properties were

assessed for the first time, while others had their assessments
adjusted. Some tax-assessed properties were sold or disposed
of in 2009.
Property
TeliaSoneras real estate holdings include some 3,900 properties, mainly in Sweden and Finland. The substantial majority is
used solely for technical facilities, like network installations,
computer installations, research centers and service outlets. The
total carrying value as of December 31, 2009 included non-depreciable land with SEK 487 million and buildings and other
depreciable property with SEK 3,830 million.
41
C15. Investments in Associated

Companies and Joint Ventures
The carrying value was distributed and changed as follows.
Dec 31,
2009
Dec 31,
2008
Goodwill and similar assets on consolidation

Share of equity
7,195
35,323
7,925
31,618
Carrying value
42,518
39,543

Shareholder contributions
Share of net income for the year
Amortization and write-downs of fair value
adjustments
Dividends received
Repayment of long term loans classified as
investments in associated companies
Acquisitions and operations acquired
Divestments and operations divested
Reclassifications
39,543
250
7,995
121
33,065
9,257
146
2,153
170
1,410
1
31
303
3,099
11
248
1,482
42,518
39,543
SEK in millions
The carrying value is broken down by reportable segment in Note C5 Segment Information and by company as follows.
Equity participation in
consolidated accounts
Company,
Corp. Reg. No., registered office
Participation (%)
Number of
shares
2009
65
44
26
20
1,180,575
734,241
2,560,439
400
333
0
10
3
Parent company holdings

Swedish companies
Overseas Telecom AB, 556528-9138, Stockholm
Lokomo Systems AB, 556580-3326, Stockholm
Telefos AB, 556523-6865, Stockholm
SNPAC Swedish Number Portability Administrative Centre AB,
556595-2925, Stockholm
Other operating, dormant and divested companies
Companies outside Sweden
OAO Telecominvest, St. Petersburg
26
4,262,165
Carrying value in each

parent company
2008
2009
2008
325
1
1
4
198
0
0
1
198
0
0
1
3,842
0
3,423
0
700
0
700
0
899
899
SEK in millions
Total parent company

Subsidiaries holdings
Swedish companies
Svenska UMTS-nt AB, 556606-7996, Stockholm (joint venture)
AS Sertifitseerimiskeskus, 10747013, Tallinn
SIA Lattelecom, 00030527, Riga
Kiinteist Oy Pietarsaaren Isokatu 8, 0181832-2, Pietarsaari
Turkcell Holding A.S., 430991-378573, Istanbul
Turkcell Iletisim Hizmetleri A.S., 304844-252426, Istanbul
OAO MegaFon, 7812014560, Moscow
AUCS Communications Services v.o.f., 34097149, Hoofddorp
Johtotieto Oy, 0875145-8, Helsinki
Operators Clearing House A/S, 18936909, Copenhagen
Voicecom O, 10348566, Tallinn
Suomen Numerot NUMPAC Oy, 1829232-0, Helsinki
SCF Huolto Oy, 1892276-7, Loimaa
50
501,000
334
0
84
22
750
0
500
18
50
49
48
47
13
36
33
33
33
26
25
20
16
71,581,000
12,851
214,871,670
292,485,209
2,207,234
170
1,333
3,000
20
7
844
3
13,744
7,357
16,021
9
2
6
1
1
1
0
6
964
3
13,719
7,466
13,492
21
3
7
1
0
1
0
5
1,554
7
2,022
1,298
451
0
0
5
1
0
0
0
6
1,650
7
2,136
1,371
470
0
0
5
1
0
0
0
42,518
39,543
Total Group
The market value of the Groups direct and indirect holdings in

the publicly quoted Turkcell Iletisim Hizmetleri A.S. was SEK
40,278 million and SEK 36,687 million as of December 31, 2009
and 2008, respectively.
The share of voting power in Overseas Telecom AB is 42 percent. OAO Telecominvest owns an additional 31 percent of the
shares in OAO MegaFon. Turkcell Holding A.S. owns 51 percent
of the shares in Turkcell Iletisim Hizmetleri A.S.
The subsidiaries holdings of Other Swedish operating, dormant and divested companies for the comparative year (Group
carrying value SEK 22 million, carrying value in the parent company SEK 18 million) relate to SmartTrust AB, which was divested in 2009.
42
Summarized information on the associated companies and joint

ventures aggregate (100 percent) income statements and
statements of financial position was as follows.
JanuaryDecember or
December 31,
SEK in millions
Net sales
Gross profit
Net income
Non-current assets
Current assets
Provisions and long-term liabilities
Current liabilities
2009
2008
93,166
62,492
25,571
144,292
56,919
20,043
25,896
96,302
66,450
30,992
135,433
56,096
20,348
23,691
C16. Other Non-current Assets

The total carrying and fair values of other non-current assets were distributed as follows.
Dec 31, 2009
SEK in millions
Dec 31, 2008
Carrying value
Fair value
Carrying value
Fair value
Equity instruments available-for-sale

Equity instruments held-for-trading
Convertible bonds available-for-sale
Interest rate swaps designated as fair value hedges
Cross currency interest rate swaps designated as cash flow hedges
Interest rate swaps and cross currency interest rate swaps held-for-trading
341
57
4
957
1,576
341
57
4
957
1,576
324
73
691
462
3,173
324
73
691
462
3,173
Subtotal (see Fair value hierarchy levels Note C26)

Government bonds and treasury bills held-to-maturity
Loans and receivables at amortized cost
2,935
81
2,145
2,935
81
2,145
4,723
99
3,171
4,723
99
3,171
Subtotal (see Categories Note C26)

Finance lease receivables
Subtotal (see Credit risk Note C27)/Total fair value
5,161
838
5,999
5,161
838
5,999
7,993
938
8,931
7,993
938
8,931
Equity instruments at cost

Deferred expenses
Total other non-current assets
of which interest-bearing
of which non-interest-bearing
For Loans and receivables, including claims on associated companies, fair value is estimated at the present value of future cash
flows discounted by applying market interest rates as of the end
of the reporting period. As there had been no significant change
in credit quality, Loans and receivables as of the end of the reporting period were not provided for. As of December 31, 2009,
contractual cash flows for Government bonds and treasury bills
and Loans and receivables represented the following expected
maturities.
Expected maturity
SEK in millions
Government bonds and
treasury bills
Later
2014 years
2011
2012
2013
39
11
21
10
81
1,284
340
40
475
2,145
61
593
65
190
6,653
5,130
1,523
9,186
6,866
2,320
For more information on financial instruments by category/fair

value hierarchy level and exposed to credit risk, see Note C26
Financial Assets and Liabilities by Category and Level and
section Credit risk management in Note C27 Financial Risk
Management, respectively. For information on leases, see Note
C28 Leasing Agreements.
Total
43
The total carrying value of equity instruments is broken down by company as follows.
Carrying/fair value in
Carrying value in
consolidated accounts each parent company
Company,
Participation (%)
Number of
shares
2009
18
9
1
90
3,500
4
3
1
0
9
2
2
2
600,000,000
1,722,594
127
7
5
1
0
Parent company holdings

Swedish companies
Slottsbacken Fund Two KB, 969660-9875, Stockholm
Lindholmen Science Park AB, 556568-6366, Gothenburg
Ullna Golf AB, 556042-8095, sterker
Digital Telecommunications Phils., Inc., 000-449-918-000, Quezon City
ONSET VI, L.P., 4604207, Dover, DE
Birdstep Technology ASA, 977037093, Oslo
Vision Extension L.P., LP180, Saint Helier, Jersey
2008
2009
2008
7
2
1
0
4
3
1
0
7
2
1
0
96
3
1
0
127
7
5
1
0
96
3
1
0
148
110
SEK in millions
Total parent company

Subsidiaries holdings
Swedish companies
Eesti Lairiba Arenduse Sihtasutus, 90010094, Tallinn
Telecom Development Company Afghanistan B.V., 34183985, Amsterdam
Magma Venture Capital I Annex Fund, L.P., Cayman Islands
Magma Venture Capital I, L.P., Cayman Islands
Oy Merinova Ab, 0778620-2, Vaasa
Vierumki Golf Village Oy, 1927979-3, Helsinki
Diamondhead Ventures, L.P., 3145188, Menlo Park, CA
Santapark Oy, 1095079-8, Rovaniemi
Helsinki Halli Oy, 1016235-3, Helsinki
Intellect Capital Ventures, L.L.C., 3173982, Los Angeles, CA
Digital Media & Communications II L.P., 3037042, Boston, MA
Asunto Oy Helsingin Oskar, 0881553-8, Helsinki
Holdings in other real estate and housing companies, Finland
Holdings in local phone companies, etc., Finland
13
12
7
7
6
5
4
3
1
0
0
0
1,225
800
0
10,000
42
280
1
209
2
11
1
15
10
2
5
21
1
1
28
4
0
225
1
24
1
15
0
2
5
33
7
0
29
9
1
1
209
2
11
1
15
10
2
5
21
1
1
28
4
0
225
1
24
1
15
0
2
5
33
7
0
29
9
1
459
462
Total Group
C18. Trade and Other Receivables
The subsidiaries holdings of Other non-Swedish operating,

dormant and divested companies for the comparative year
(Group carrying value SEK 1 million, carrying value in the parent
company SEK 1 million) relate to Kiinteist Oy Turun Monitoimihalli, which was divested in 2009.
The total carrying value of trade and other receivables was

distributed as follows.
Dec 31,
2009
Dec 31,
2008
Currency swaps, forward exchange contracts

and currency options held-for-trading
135
1,072
Subtotal (see Fair value hierarchy levels

Note C26)
Accounts receivable at amortized cost
135
1,072
12,298
4,797
13,126
6,089
Subtotal (see Categories Note C26 and

Credit risk Note C27)
Other current receivables
Deferred expenses
17,230
20,287
2,478
1,682
1,763
1,193
Total trade and other receivables
21,390
23,243
SEK in millions
C17. Inventories
After deductions for obsolescence amounting to SEK 13 million
in 2009 and SEK 4 million in 2008, the total carrying value was
Dec 31,
2009
Dec 31,
2008
Goods for resale

Other inventories and expense incurred on
construction contracts
1,111
440
1,171
502
Total
1,551
1,673
SEK in millions
For Accounts receivable and Loans and receivables, the carrying values equal fair value as the impact of discounting is insignificant. Loans and receivables mainly comprise accrued call,
interconnect and roaming charges. TeliaSonera offers a diversified portfolio of mass-market services and products in a number
of highly competitive markets, resulting in a limited credit risk
concentration to individual markets and customers.
Other inventories include purchased supplies that are mainly

intended for use in constructing TeliaSoneras own installations
and for repair and maintenance. Inventories carried at net realizable value totaled SEK 82 million in 2009 and SEK 101 million in
2008.
44
The allowance for doubtful accounts receivable changed as

follows.
For Accounts receivable and Loans and receivables, as of the

end of the reporting period, concentration of credit risk by
geographical area and by customer segment was as follows.
Dec 31,
2009
Dec 31,
2008
13,591
1,484
1,716
2,424
Opening balance
Reclassifications
Provisions for receivables impaired
Receivables written-off as uncollectible
Unused amounts reversed
1,260
194
665
95
16
56
964
311
24
50
59
17,095
19,215
Closing balance
1,952
1,260
6,455
6,330
3,879
431
6,278
6,325
5,770
842
17,095
19,215
Dec 31,
2009
Dec 31,
2008
Geographical area
Nordic countries
Baltic countries
Eurasia
Other countries
13,475
1,311
833
1,476
Total carrying value

Customer segment
Residential customers
Business customers
Other operators
Distributors
SEK in millions
SEK in millions
C19. Interest-bearing Receivables, Cash

and Cash Equivalents
The geographic concentration to the Nordic operations reflects a

relatively higher share of post-paid customer contracts. In most
cases, customers are billed in local currency. Receivables from
and payables to other operators for international fixed-line traffic
and roaming are normally settled net through clearing-houses.
Refer to Note C26 Financial Assets and Liabilities by Category
and Level and section Credit risk management in Note C27
Financial Risk Management for more information on financial
instruments classified by category/fair value hierarchy level and
exposed to credit risk, respectively.
As of the end of the reporting period, allowance for doubtful
and ageing of Accounts receivable, respectively, were as
follows.
The total carrying value of interest-bearing receivables was

Dec 31,
2009
Dec 31,
2008
Interest rate swaps and cross currency

interest rate swaps designated as cash flow
hedges
329
329
309
1,031
302
564
7
737
1,375
351
467
921
1,952
195
1,726
2,147
SEK in millions
Dec 31,
2009
Dec 31,
2008
Accounts receivable invoiced

Allowance for doubtful accounts receivable
14,250
1,952
14,386
1,260

Note C26)
Short-term investments with maturities over
3 months
of which bonds and commercial papers
held-to-maturity
of which bank deposits at amortized cost
Finance lease receivables
Total accounts receivable
12,298
13,126
Total (see Credit risk Note C27)
8,544
3,754
8,504
4,622
1,753
1,118
883
12,298
2,414
1,073
1,135
13,126
SEK in millions
Accounts receivable not due

Accounts receivable past due but not
impaired
of which less than 30 days
of which 30180 days
of which more than 180 days
Carrying values for items measured at amortized cost and finance lease receivables are assumed to approximate fair values
as the risk of changes in value is insignificant. Refer to Note C26
Management for more information on financial instruments
classified by category/fair value hierarchy level and exposed to
credit risk, respectively. For information on leases, see Note C28
Leasing Agreements.
As of the end of the reporting period, ageing of Loans and receivables were as follows.
SEK in millions
Loans and receivables not due
Loans and receivables past due but not
impaired
of which 30180 days
Total loans and receivables
Dec 31,
2009
Dec 31,
2008
3,357
1,440
4,196
1,893
1,283
64
93
4,797
1,665
85
143
6,089

Cash and cash equivalents were distributed as follows.
Dec 31,
2009
Dec 31,
2008
Short-term investments with maturities up to

and including 3 months
of which commercial papers held-to-maturity
Cash and bank
10,904
5,277
12
10,892
11,584
244
5,033
6,549
Total (see Categories Note C26 and Credit

risk Note C27)
22,488
11,826
SEK in millions
Receivables past due as of the end of the reporting period were

not provided for as there had been no significant change in
credit quality and the amounts were still considered recoverable.
Balances past due more than 180 days mainly referred to other
operators. See also section Credit risk management in Note
C27 Financial Risk Management for information on mitigation
of risks related to accounts receivable.
Total bad debt expenses were SEK 590 million in 2009 and
SEK 433 million in 2008. Recovered accounts receivable in
these years were SEK 79 million and SEK 29 million, respectively.
The carrying values are assumed to approximate fair values as

the risk of changes in value is insignificant. Refer to Note C26
Management for more information on financial instruments
classified by category and exposed to credit risk, respectively,
and to Note C30 Contingencies, Other Contractual Obligations
and Litigation for information on blocked funds in bank accounts.
45
C20. Equity and Earnings per Share

Share capital
According to the articles of association of TeliaSonera AB the
authorized share capital shall amount to no less than SEK 8
billion and no more than SEK 32 billion. All issued shares have
been paid in full and carry equal rights to vote and participate in
the assets of the company
Since December 31, 2005, the issued share capital changed as follows.
Issued share capital, December 31, 2005

Cancellation of shares repurchased in 2005, September 6, 2006
Treasury shares
Issued share capital

(SEK)
Number of
issued shares
Quotient value
(SEK/share)
14,960,742,621
591,279,539
14,369,463,082
14,369,463,082
14,369,463,082
14,369,463,082
4,675,232,069
184,774,856
4,490,457,213
4,490,457,213
4,490,457,213
4,490,457,213
3.20
3.20
3.20
3.20
3.20
3.20
Earnings per share and dividends
No TeliaSonera shares are held by the company itself or by the

companys subsidiaries.
Inflation adjustment reserve
Net income attributable to owners of the

parent (SEK million)
Average number of outstanding shares, basic
and diluted (thousands)
Earnings per outstanding share, basic and
diluted (SEK)
Ordinary cash dividend (for 2009 as proposed
by the Board)
Per share (SEK)
Total (SEK million)
The inflation adjustment reserve refers to TeliaSoneras operations in Turkey. As of January 1, 2006, the Turkish economy is
from an accounting perspective no longer considered to be
hyperinflationary.
Minority interests
Exchange rate differences in minority interests changed as
follows.
SEK in millions
Opening balance
Closing balance
Dec 31,
2009
Dec 31,
2008
1,409
1,554
266
1,675
145
1,409
Minority interests were distributed as follows (including intermediate holding companies, where applicable).
Dec 31,
2009
Dec 31,
2008
DLG-debitel I/S, Denmark

TEO LT, AB, Lithuania
Latvijas Mobilais Telefons SIA, Latvia
AS Eesti Telekom, Estonia
Fintur Holdings B.V., the Netherlands
TeliaSonera UTA Holding B.V., the
Netherlands
Other subsidiaries
62
1,089
686
34
4,598
646
66
1,319
864
2,203
5,615
987
12
Total minority interests in equity
7,127
11,061
SEK in millions
AS Eesti Telekom became a wholly-owned subsidiary as of

January 12, 2010.
46
JanDec
2009
JanDec
2008
18,854
19,011
4,490,457
4,490,457
4.20
4.23
2.25
10,104
1.80
8,083
C21. Long-term and Short-term Borrowings

Open-market financing programs
TeliaSoneras open-market financing (excluding debt derivatives) entails the following programs.
Dec 31, 2009
Dec 31, 2008
Interest rate type
Program
TeliaSonera AB
TeliaSonera AB
TeliaSonera AB
Characteristics
Euro Medium Term Note
(EMTN)
Uncommitted
International, Long-term
Euro Commercial Paper Uncommitted
(ECP)
International, Short-term
Flexible Term Note (FTN) Uncommitted
Swedish domestic,
Short-term and long-term
Average
Fixed maturity
Limit
currency
Limit Utilized Floating
EUR
7,000
6,155
1,468
4,687
5.1
7,000
4,652
EUR
1,000
1,000
SEK
12,000
12,000
4,591
(in millions)
(years)
Limit Utilized
(in millions)
Borrowings
Long-term and short-term borrowings were distributed as follows.
Dec 31, 2009
SEK in millions
Dec 31, 2008
Carrying value
Fair value
Carrying value
Fair value
10,775
10,775
16,623
16,623
416
328
88
172
172
11,363
48,111
25,038
23,073
4,149
416
328
88
172
172
11,363
50,934
26,818
24,116
4,149
375
288
87
20
20
17,018
33,211
8,648
24,563
3,894
375
288
87
20
20
17,018
35,100
9,400
25,700
3,894
63,623
41
63,664
66,446
41
66,487
54,123
55
54,178
56,012
55
56,067
Utilized bank overdraft facilities at amortized cost
Open-market financing program borrowings at amortized cost
Other borrowings at amortized cost
524
7,024
593
524
7,092
593
7
9,550
2,030
7
9,590
2,031

Finance lease agreements
8,141
28
8,209
28
11,587
34
11,628
34
Total short-term borrowings
8,169
8,237
11,621
11,662
Open-market financing program borrowings in fair value hedge
relationships
Interest rate swaps at fair value
of which designated as hedging instruments
of which held-for-trading
Cross currency interest rate swaps at fair value
Subtotal (see Fair value hierarchy levels Note C26)
Open-market financing program borrowings
of which hedging net investments
of which at amortized cost
Total long-term borrowings
Normally, borrowings by TeliaSonera AB denominated in foreign

currencies are swapped into SEK. The exceptions typically include funds borrowed to finance the Groups international ventures or selective hedging of net investments abroad. As of December 31, 2009, long-term borrowings hedging net investments
included borrowings also included in fair value hedge relationships. These loans have final maturities in 2014 (SEK 3,210
million) and after 2015 (SEK 4,760 million). TeliaSonera ABs
portfolio of interest rate swaps and cross currency interest rate
swaps as of December 31, 2009 and 2008 had a nominal value
of approximately SEK 48,000 million and SEK 38,500 million,
respectively. As of December 31, 2009, the portfolio included
interest rate swaps with a nominal value of SEK 900 million related to the overall management of the funding portfolio structure
and hence not included in hedge relationships.
Refer to Note C26 Financial Assets and Liabilities by Category and Level for more information on financial instruments
classified by category/fair value hierarchy level and to Note C27
Financial Risk Management for information on maturities and
management of liquidity risk, currency risk, interest rate risk and
financing risk, respectively.
47
Specifications to pension obligations and pension

expenses
C22. Provisions for Pensions and

Employment Contracts
Changes in present value of pension obligations, fair value of

plan assets, net provisions (net assets) for pension obligations
and actuarial net gains or losses for the defined benefit pension
plans were as follows.
Pension obligations and pension expenses

Total provisions (assets) for pension obligations were as follows.
SEK in millions
Dec 31,
2009
Dec 31,
2008
Present value of pension obligations

Fair value of plan assets
23,503
19,401
22,814
18,068
4,102
4,746
33
3,890
19
5,035
179
308
680
501
22
330
Pension obligations less plan assets

(funded status)
Unrecognized past service cost
Unrecognized actuarial gains (+)/losses ()
Net provisions (+)/assets () for pension
obligations
of which recognized as provisions
of which recognized as assets
For comments, see section Pension obligation risk in Note C27

Financial Risk Management.
Total pension expenses were distributed as follows.
SEK in millions
Current service cost
Interest cost
Expected return on plan assets
Amortization of past service cost
Amortization of actuarial gains ()/losses (+)
Pension expenses, defined benefit
pension plans
Settlement of pension obligations
Termination benefits (excl. premiums and
pension-related social charges)
Pension premiums, defined benefit/defined
contribution pension plans and pay-as-you-go
systems
Pension-related social charges and taxes,
other pension expenses
Less termination benefits (incl. premiums and
pension-related social charges) reported as
restructuring charges
Total pension expenses
of which pension premiums paid to the ITP
pension plan
JanDec
2009
JanDec
2008
455
928
857
15
206
441
925
996
14
52
717
408
14
212
3
408
679
690
243
206
280
543
1,557
112
1,172
92
Discount rate
Expected rate of compensation increase
Employee turnover rate
Average expected remaining working life,
years
Increase in income base amount (only for
Swedish entities)
Annual adjustments to pensions
Dec 31,
2008
4.1
3.2
2.9
14.5
4.2
3.2
2.9
14.4
2.8
2.8
2.0
4.9
2.1
4.7
Dec 31,
2008

Opening balance
Interest cost
Benefits paid
Benefits paid, early retirement
Termination benefits
Operations acquired/divested
Settlement of pension obligations
Actuarial gains ()/losses (+)
22,814
455
928
1,217
16
212
7
18
488
136
20,807
441
925
1,181
23
408
22
3
1,104
358
23,503
22,814

Opening balance
Contribution to pension funds
Payment from pension funds
Operations acquired/divested
Actuarial gains (+)/losses ()
18,068
857
131
915
11
1,413
142
19,265
996
645
536
23
2,633
354
Closing balance, plan assets
19,401
18,068
Return on plan assets

Actuarial gains (+)/losses ()
Actual return on plan assets
857
1,413
2,270
996
2,633
1,637
308
717
229
408
1,217
16
131
915
212
6
13
1,181
23
645
536
408
3
37
179
308
5,035
206
2
1,311
52
2
488
1,104
1,413
12
2,633
41
3,890
5,035
7
11
2
22
23
2
Net assets/provisions for pension

obligations
Opening balance
Pension expenses, defined benefit pension
plans
Benefits paid
Benefits paid, early retirement
Contribution to pension funds
Payment from pension funds
Operations acquired/divested, net
Closing balance, net assets ()/provisions
(+) for pension obligations
The actuarial calculation of pension obligations and pension

expenses is based on the following principal assumptions, each
presented as a weighted average for the different pension plans.
Dec 31,
2009
Dec 31,
2009
Closing balance, present value of pension

obligations
Principal actuarial assumptions
Percentages, except remaining

working life
SEK in millions, except percentages
Unrecognized actuarial gains/losses

Opening balance, actuarial gains (+)/losses ()
Actuarial gains ()/losses (+) to be recognized
Actuarial gains ()/losses (+),
acquired/divested operations
Actuarial gains (+)/losses (), pension
obligations
Actuarial gains (+)/losses (), plan assets
Closing balance, unrecognized actuarial
gains (+)/losses ()
Operations divested
Decrease in pension obligations
Decrease in plan assets
Change in unrecognized actuarial gains
()/losses (+)
Net position, operations divested
48
Plan-asset allocation
As of the end of the reporting period, plan assets were allocated
as follows.
Dec 31, 2009
SEK in
millions
Fixed income instruments,

liquidity
Shares and other
investments
10,264
Total
of which shares in
TeliaSonera AB
Asset category
Dec 31, 2008
Percent
SEK in
millions
Percent
52.9
12,598
69.7
9,137
47.1
5,470
30.3
19,401
113
100.0
0.6
18,068
68
100.0
0.4
Trend information
In the last 5-year period, trends for the defined benefit plans were as follows.
SEK in millions, except percentages
Dec 31,
2009
Dec 31,
2008
Dec 31,
2007
Dec 31,
2006
Dec 31,
2005
Plan liabilities
Plan assets
23,503
19,401
22,814
18,068
20,807
19,265
21,495
18,977
22,036
18,480
4,102
4,746
1,542
2,518
3,556
1.0
1.1
0.2
4.6
0.6
6.5
0.3
4.4
0.4
13.8
7.8
12.5
13.6
8.5
1.4
3.1
2.1
6.4
10.1
15.8
Deficit (funded status)

Plan liabilities
Experience adjustments arising on plan liabilities (%)
Effects of changes in actuarial assumptions (%)
Plan assets
Experience adjustments arising on plan assets (%)
Actual return on plan assets (%)
Future contributions
For companies in Sweden, the total pension liabilities are secured also by pension credit insurance. This means that, should
the net provision for pension obligations increase, each company can choose if and when to contribute to the pension fund or
otherwise to recognize a provision. To pension funds outside
Sweden, TeliaSonera expects to contribute SEK 123 million in
2010.
C23. Other Provisions

Changes in other provisions were as follows.
December 31, 2009
SEK in millions
Opening balance
of which financial liabilities at amortized
cost
Provisions for the period
Utilized provisions
Reversals of provisions
Reclassifications
Timing and interest-rate effects
Closing balance
of which non-current portion
of which current portion
of which financial liabilities at amortized
cost (see Categories Note C26)
Restructuring
provisions
Minority put
options, etc.
Warranty
provisions
Asset retirement
obligations
Other
provisions
Total
1,199
9,100
1,454
12
1,295
1,113
14,161
12
1,575
1,109
109
279
13
16
144
23
123
826
76
876
1
139
101
1,066
92
4
11
45
29
69
524
215
34
14
31
2,930
2,601
329
372
195
1,003
1,274
502
772
8,564
8,564
413
226
187
9
2,270
2,264
6
460
179
281
12,981
11,735
1,246
9
49
financial liabilities represented the following expected maturities.

Expected maturity refers to the earliest point in time, based on
the agreement terms, at which the counterpart might call for
settlement.
For financial liabilities, the carrying value equals fair value as

provisions are discounted to present value. Refer to Note C26
Financial Assets and Liabilities by Category and Level for more
information on financial instruments classified by category. As of
December 31, 2009, contractual undiscounted cash flows for the
Expected maturity
SEK in millions
Financial liabilities
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
20112014
Later years
Total
Carrying
value
In 2008, certain minority put option liabilities were categorized as

Financial liabilities at fair value through profit and loss, see also
section Change of accounting policy in Note C1 Basis of
Presentation.
Restructuring provisions
Changes in restructuring provisions were as follows.
December 31, 2009 or JanuaryDecember 2009
International carrier operations
Danish
operations
Strategic
refocusing
Post-merger
integration
OPEX savings
programs
Total

Utilized provisions (cash outflow)
Reclassification to pension liability
Timing and interest-rate effects
57
7
22
201
121
19
5
5
168
91
28
8
3
773
1,575
890
40
279
1,199
1,575
1,109
109
279
13
16

Cash outflow during the year
Cash outflow in prior years
Total cash outflow
26
7
786
793
61
20
121
2,237
2,358
54
9
91
228
319
1,133
743
890
1,630
2,520
1,274
772
SEK in millions
1,109
4,881
5,990
percent, mainly in 2002 and 2003. The remaining provision as of

December 31, 2009 mainly relates to the phase-out of long-term
lease contracts and is expected to be fully utilized by 2020.
The restructuring provisions represent the present value of managements best estimate of the amounts required to settle the
liabilities. The estimates may vary as a result of changes in the
actual number of months an employee is staying in redeployment before leaving and in the actual outcome of negotiations
with lessors, sub-contractors and other external counterparts as
well as the timing of such changes.
Post-merger integration
To realize post-merger synergy gains, management in 2003
decided to integrate the international carrier operations previously run separately by Telia and Sonera. Overlapping operations were phased out and the traffic was moved over from
leased capacity to the wholly owned network. Parts of Soneras
operations in the United Kingdom, the United States, Sweden
and Germany were closed down. The remaining provision as of
December 31, 2009 mainly relates to the phase-out of long-term
lease contracts and is expected to be fully utilized by 2017.
Danish operations within business areas Mobility

Services and Broadband Services
Several restructuring measures have been taken in relation to
TeliaSoneras Danish operations: in 2002 in connection with
focusing the Danish fixed network operations; in 2004 in connection with the acquisition of Orange Denmark to realize synergy
gains from the acquisition; in 2005 in connection with integrating
the mobile operations and the fixed network operations; and in
2006 in connection with further efficiency measures. The remaining provision as of December 31, 2009 mainly relates to the
phase-out of long-term lease contracts and is expected to be
fully utilized by 2020.
OPEX savings programs within business areas Mobility

Services and Broadband Services
In the Swedish and Finnish operations, management in 2005
and in 2008 launched transition programs to keep the profitability
by achieving competitive cost levels and focusing of the service
offerings. The 2008 program included efficiency measures implemented in 2008 and 2009 aiming, among other things, at a
reduction of approximately 2,900 employees in Sweden and
Finland. The program was completed at year-end 2009. The
remaining provision as of December 31, 2009 is expected to be
fully utilized by 2012.
International carrier operations within business area

Broadband Services
Strategic refocusing
In 2002, TeliaSonera decided to change the strategic focus of
Telia International Carrier and significantly restructure its operations. As part of the restructuring program, management decided
to close down Telia International Carriers Asian operations as
well as its domestic voice reseller business in the United Kingdom and Germany, discontinue offering domestic network services in the United States and terminate its co-location business.
Telia International Carriers sales, administration and customer
care resources were also centralized and the original workforce
of approximately 800 persons was reduced by more than 50
Minority put options, etc.

Provisions for minority put options, etc. relate to Xfera Mviles
S.A. (Xfera), Azertel Telekomnikasyon Yatirim ve Dis Ticaret
A.S. (Azertel) and TeliaSonera Uzbek Telecom Holding B.V.
(Uzbek Holding).
For Xfera, which was acquired in 2006, the closing balance
comprises in total SEK 1,459 million referring to contingent addi-
50
Warranty provisions
tional consideration to the selling shareholders based on an up

to 20 year earn-out model and to a put option giving existing
minority shareholders the right to sell their shares to TeliaSonera
after 5 years, of which at least 2 consecutive years of net profit.
The provisions represent the present value of managements
best estimate of the amounts required to settle the liabilities. The
estimate for the earn-out model has been made based on the
Xfera 10-year business plan, using a post-tax discount rate
(WACC) of 6.2 percent and a terminal growth rate of free cash
flow of 2.0 percent. The amounts and timing may vary as a result
of changes in Xferas operations and profitability compared to
the business plan. The estimate for the put option liability has
been made based on assumptions about the timing of the option
exercise and about the fair value of Xfera at that date and the
provision may vary as a result of changes in Xferas estimated
fair value and the timing of the option exercise.
For Azertel, the parent company of the mobile operator Azercell Telekom B.M. (Azercell) in Azerbaijan, the closing balance
comprises SEK 5,131 million for a put option granted in 2008 in
conjunction with the privatization of Azercell, now wholly-owned
by Azertel. Should a deadlock regarding material decisions at
the general assembly arise, the resolution supported by TeliaSonera will apply. In such circumstances, the put option gives
the largest minority shareholder the right to sell its 42 percent
holding in Azertel to TeliaSonera. The exercise price is equal to
the fair value at the time of exercise and is to be determined by
independent appraisal. The provision represents the present
value of managements best estimate of the amount required to
settle the liability. The estimate of Azertels fair value has been
made based on the Azercell 10-year business plan with a posttax discount rate (WACC) of 12.3 percent and a terminal growth
rate of free cash flow of 2.0 percent. The provision may vary as
a result of changes in Azertels estimated fair value and the timing of the option exercise.
For Uzbek Holding, the parent company of the mobile operator
OOO Coscom in Uzbekistan, the closing balance comprises
SEK 1,974 million for a put option granted in 2007 in conjunction
with the acquisition of a 3G license, frequencies and number
blocks in Uzbekistan in exchange for cash and a 26 percent
interest in Uzbek Holding. The put option gives the existing minority shareholder the right to sell the 26 percent interest in
Uzbek Holding to TeliaSonera after December 31, 2009. The
exercise price is dependent on the number of active subscribers
in Coscom and on whether the option is exercised in 2010 or
after December 31, 2010. In the latter case, the exercise price is
equal to the fair value at the time of exercise and is to be determined by independent appraisal. The provision represents the
present value of managements best estimate of the amount
required to settle the liability. The estimate has been made
based on assumptions about the timing of the option exercise
and about the fair value of Uzbek Holding at that date, using the
Coscom 10-year business plan with a post-tax discount rate
(WACC) of 21.0 percent and a terminal growth rate of free cash
flow of 3.5 percent. The provision may vary as a result of
changes in Uzbek Holdings estimated fair value and the timing
of the option exercise. On February 2, 2010, TeliaSonera increased its ownership in Uzbek Holding from 74 percent to
94 percent. TeliaSonera will pay approximately SEK 1,550 million (USD 220 million) for the shares.
Fair value estimates for the minority put option liabilities and
the contingent consideration are based on TeliaSoneras longterm business plans for such business units. During the downturn in the world economy, the global equity market values have
decreased and, if applied to TeliaSoneras business units
through a peer group multiple valuation, would in some cases be
below the fair values derived from TeliaSoneras own long-term
business plans. Management believes that fair value based on
its own business plans gives a better picture of the value for
TeliaSonera and of the long-term valuation, compared to the
current equity market values.
Warranty provisions include SEK 178 million related to a guarantee commitment on behalf of the minority held Ipse 2000
S.p.A. The provision originally represented TeliaSoneras share
of the present value of Ipses remaining UMTS license fees payable to the Italian government in 20062010. In early 2006, the
Italian government revoked the license as Ipse had not met the
license requirements. Ipses position was that no further license
fees should be payable, but TeliaSonera continued to carry a full
provision since the outcome of Ipses claim against the government was considered uncertain. TeliaSonera also gave cash
collateral for the remaining license payments (see Note C30
Contingencies, Other Contractual Obligations and Litigation).
At the end of 2008, following an unfavorable court decision and
new legislation in Italy, Ipse decided to start paying installments.
Installments due for 20062008 and for 2009 were paid in January and December 2009, respectively. The final installment will
be paid in the end of 2010.
Asset retirement obligations and Other provisions

Asset retirement obligations mainly refer to dismantling and
restoration of mobile and fixed network sites and to handling
hazardous waste such as worn-out telephone poles impregnated
with arsenic. The remaining provision as of December 31, 2009
is expected to be fully utilized by 2039. Other provisions comprise provisions for damages and court cases, for payroll taxes
on future pension payments and for onerous and other lossmaking contracts, and insurance provisions. Full utilization of
these provisions is expected in the period 2010-2024. The provisions represent the present value of managements best estimate of the amounts required to settle the liabilities. The estimates may vary mostly as a result of changes in tax and other
legislation, in the actual outcome of negotiations with counterparts and in actual customer behavior as well as the timing of
such changes.
C24. Other Long-term Liabilities

Other long-term non-interest-bearing liabilities were distributed
as follows.
SEK in millions
Long-term trade payables at amortized cost
Danish 3G license fee liability at amortized
cost
Azercell share purchase consideration at
amortized cost
Other liabilities at amortized cost
Liabilities at amortized cost (see
Categories Note C26)
Prepaid operating lease agreements
Other liabilities
Total other long-term liabilities
Dec 31,
2009
Dec 31,
2008
175
193
541
109
261
111
1,170
629
849
558
837
1,589
2,565
For Liabilities at amortized cost, the carrying value approximates

fair value as the impact of discounting using market interest
rates at the end of the reporting period was insignificant. Refer to
Note C26 Financial Assets and Liabilities by Category and
Level for more information on financial instruments classified by
category and to Note C27 Financial Risk Management on
management of liquidity risk. As of December 31, 2009, contractual undiscounted cash flows for liabilities at amortized cost
represented the following expected maturities.
Expected maturity
SEK in millions
Liabilities at
amortized cost
51
Later
Carrying
2011 2012 2013 2014 years Total
value
5
78
28
114
111
C26. Financial Assets and Liabilities by

Category and Level
For information on leases, see Note C28 Leasing Agreements.

Other liabilities mainly comprise customer advances for broadband build-out. Further included was deferred day 1 gains
which changed as follows.
Dec 31,
2009
Dec 31,
2008
Opening balance
Additional gains
Recognized in net income
290
151
18
5
209
56
13
38
Closing balance
418
189
290
98
SEK in millions
Categories
Carrying values of classes of financial assets and liabilities were
distributed by category as follows. Excluded are financial instruments which are discussed in Note C15 Investments in Associated Companies and Joint Ventures, Note C22 Provisions for
Pensions and Employment Contracts and Note C28 Leasing
Agreements, respectively.
SEK in millions
Financial assets
Derivatives designated as hedging
instruments
Financial assets at fair value through
profit and loss
of which derivatives not designated as
hedging instruments
of which held-for-trading investments
Held-to-maturity investments
C25. Trade Payables and Other Current

Liabilities
Trade payables and other current liabilities were distributed as
follows.
Dec 31,
2009
Dec 31,
2008
Currency swaps, forward exchange

contracts and currency options held-fortrading
175
338

Note C26)
Accounts payable at amortized cost
Current liabilities at amortized cost
175
338
8,153
4,558
9,401
5,603

Deferred income
12,886
7,339
5,214
15,342
7,629
4,806
Total trade payables and other current

liabilities
25,439
27,777
SEK in millions
Available-for-sale financial assets
Note
C16, C19
1,286
1,153
1,768
4,318
C16, C18
1,711
4,245
C16
C16, C19
C16, C18,
C19
C16
57
395
42,460
73
907
35,356
345
324
46,254
42,058
C21
328
308
C21, C25
435
425
C21
10,775
16,623
C21
C21, C23,
C24, C25
25,038
48,194
8,648
56,230
84,770
82,234
Total financial assets by category

instruments
Derivatives not designated as hedging
instruments
Borrowings in fair value hedge
relationships
Borrowings hedging net investments
Financial liabilities measured at
amortized cost
Total financial liabilities by category
For Accounts payable and Current liabilities, the carrying value

equals fair value as the impact of discounting is insignificant.
Refer to Note C26 Financial Assets and Liabilities by Category
and Level for more information on financial instruments classified by category/fair value hierarchy level and to Note C27 Financial Risk Management on management of liquidity risk. As
of December 31, 2009, contractual cash flows for liabilities at
amortized cost represented the following expected maturities.
Dec 31, Dec 31,

2009
2008
In 2008, certain minority put option liabilities were categorized as

Financial liabilities at fair value through profit and loss, see also
section Change of accounting policy in Note C1 Basis of
Presentation.
JanMar AprJun JulSep OctDec

2010
2010
2010
2010 Total
Liabilities at amortized
10,566
1,375
342
428 12,711
cost
Expected maturity
SEK in millions
Corresponding information for currency derivatives held-fortrading are presented in section Liquidity risk management to
Note C27 Financial Risk Management.
The main components of Current liabilities are accrued payables to suppliers and accrued interconnect and roaming
charges, while Other current liabilities mainly entail value-added
tax, advances from customers and accruals of payroll expenses
and social security contributions. Deferred income chiefly relate
to subscription and other telecom charges. Included is also the
current portion of deferred day 1 gains (refer to Note C24
Other Long-term Liabilities).
52

The carrying values of classes of financial assets and liabilities
measured at fair value were distributed by fair value hierarchy
level as follows.
December 31, 2009
SEK in millions
Financial assets at fair value
Equity instruments available-for-sale
Equity instruments held-for-trading
Derivatives designated as hedging instruments
Note
C16
C16
C16
C16,
C19
C16,
C18
Total financial assets at fair value by level

Financial liabilities at fair value
Derivatives designated as hedging instruments
C21
C21
C21,
C25
Total financial liabilities at fair value by

level
December 31, 2008
of which
of which
Carrying
value
Level 1
Level 2
Level 3
Carrying
value
Level 1
Level 2
Level 3
341
57
4
1,286
132
1,286
209
57
4
324
73
1,153
99
1,153
225
73
1,711
1,711
4,245
4,245
3,399
132
2,997
270
5,795
99
5,398
298
10,775
328
435
10,775
328
435
16,623
308
425
16,623
308
425
11,538
11,538
17,356
17,356
There were no transfers between Level 1 and 2 in 2009 and 2008.

Level 3 financial assets changed as follows.
December 31, 2009
SEK in millions
Level 3, opening balance
Total gains/losses recognized
of which in net income
of which related to assets held at
reporting period-end
Purchases/capital contributions
Equity instruments
availablefor-sale
Level 3, closing balance
December 31, 2008
Equity in- Convertible

bonds
struments
availableheld-forfor-sale
trading
Equity instruments
availablefor-sale
Equity instruments
held-fortrading
187
50
5
5
5
Total
237
5
5
5
225
73
21
21
21
Total
298
21
21
21
16
10
5
14
21
38
17
1
17
39
209
57
270
225
73
298
Regarding foreign currency transaction exposure, CFT has a

clearly defined deviation mandate which currently is capped at
the equivalent of a nominal SEK +/-200 million, expressed as the
long/short SEK counter-value amount that may be exposed to
currency fluctuations. As of December 31, 2009, the deviation
mandate was utilized by less than SEK 75 million.
SEK is the functional currency of TeliaSonera AB. Its borrowings are therefore normally denominated in, or swapped into,
SEK unless linked to international operations or allocated as
hedging of net investments abroad.
Gains or losses recognized in net income are included in line

item Other financial items, see specification in Note C10 Finance Costs and Other Financial Items.
C27. Financial Risk Management

Principles of financing and financial risk
management
TeliaSoneras financing and financial risks are managed under
the control and supervision of the Board of Directors of TeliaSonera AB. Financial management is centralized within the Corporate Finance and Treasury (CFT) unit of TeliaSonera AB,
which functions as TeliaSoneras internal bank and is responsible for the management of financing and financial risks.
CFT is responsible for Group-wide financial risk management
including netting and pooling of capital requirements and payment flows. CFT also seeks to optimize the cost of financial risk
management, which in certain cases may mean that e.g. an inter
company transaction is not replicated with an identical transaction outside the Group or that derivative transactions are initiated in order to adjust e.g. the overall interest rate duration of
the debt portfolio, e.g. through overlay-swaps, if deemed appropriate. This means that situations may arise in which certain
derivative transactions with parties outside the Group do not fully
satisfy the requirements for hedge accounting, and thus any shift
in market value will affect the financial net.
Capital management
TeliaSoneras capital structure and dividend policy is decided by
the Board of Directors. TeliaSonera shall target a solid investment grade long-term credit rating (A- to BBB+) to secure the
companys strategically important financial flexibility for investments in future growth, both organically and by acquisitions.
The ordinary dividend shall be at least 50 percent of net income attributable to owners of the parent company. In addition,
excess capital shall be returned to shareholders, after the Board
of Directors has taken into consideration the companys cash at
hand, cash flow projections and investment plans in a medium
term perspective, as well as capital market conditions.
TeliaSonera AB is not subject to any externally imposed capital requirements.
53
Credit risk management
The credit risk with respect to TeliaSoneras trade receivables is

diversified geographically and among a large number of customers, private individuals as well as companies in various industries. Solvency information is required for credit sales to minimize the risk of bad debt losses and is based on group-internal
information on payment behavior, if necessary supplemented by
credit and business information from external sources. Bad debt
expense in relation to consolidated net sales was approximately
0.5 percent in 2009 and 0.4 percent in 2008.
Surplus cash in TeliaSonera AB may only be invested in bank
deposits, commercial papers issued by banks and/or in Swedish,
Finnish, Norwegian or Danish government bonds and treasury
bills. There are no limits for investments in government papers.
For investments with banks, the rating should be at least A-1
(Standard & Poors) or P-1 (Moodys) and the maturity is limited
to 12 months. Furthermore, for maturities longer than 10 business days, the exposure per bank is limited to SEK 1,000 million.
TeliaSoneras exposure to credit risk arises from default of

counterparts (including price risks as regards investments in
equity instruments), with a maximum exposure equal to the carrying amount of these instruments (detailed in the respective
note), as follows.
SEK in millions
Other non-current assets
Total
Note
C16
C18
C19
C19
Dec 31,
2009
Dec 31,
2008
5,999
17,230
1,726
22,488
47,443
8,931
20,287
2,147
11,826
43,191
When entering into financial transactions such as interest rate

swaps, cross currency swaps and other transactions in derivatives, TeliaSonera AB accepts only creditworthy counterparts.
TeliaSonera AB requires each counterpart to have an approved
rating and an International Swaps and Derivatives Association,
Inc. (ISDA) agreement. The permitted exposure to each counterpart when entering into a financial transaction depends on the
rating of that counterpart. As of the end of the reporting period,
the aggregate exposure to counterparts in derivatives was distributed by counterpart long-term rating as follows. The first rating refers to Standard & Poors and the second to Moodys. In
line with recommendations issued by the Basel Committee on
Banking Supervision, exposures are calculated as the net claim
on each counterpart with an add-on amount intended to give a
margin for a potential future exposure.
Dec 31,
2009
Dec 31,
2008
Counterpart rating AA and/or Aa2

Counterpart rating AA- and/or Aa3
Counterpart rating A+ and/or A1
Counterpart rating A- and/or A3 but <
A+ and/or A1
450
2,094
356
435
4,336
1,458
443
Total exposure to counterparts in

derivatives
3,335
6,237
SEK in millions
Liquidity risk management

Liquidity risk is the risk that TeliaSonera will encounter difficulty
in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset. TeliaSonera
has internal control processes and contingency plans for managing liquidity risk. TeliaSoneras policy is to have a strong liquidity position in terms of available cash and/or unutilized
committed credit facilities. As of December 31, 2009 and 2008,
the surplus liquidity (short-term investments and cash and bank)
amounted to SEK 22,797 million and SEK 12,857 million, respectively. TeliaSonera ABs surplus liquidity is typically deposited in banks or invested in short-term interest-bearing instruments with good credit ratings. At year-end, TeliaSonera AB had
no such investments in interest-bearing securities with maturities
exceeding 3 months. The average yield on bank deposits and
short-term investments as of the end of the reporting period was
0.4 percent in 2009 and 3.4 percent in 2008.
In addition to available cash, TeliaSonera has committed bank credit facilities and overdraft facilities, intended for short-term financing
and back-up purposes, as follows.
In millions of the respective currency
Dec 31, 2009 Dec 31, 2008
Group entity
Type
Characteristics
Final maturity
TeliaSonera AB
TeliaSonera AB
TeliaSonera AB
TeliaSonera AB and subsidiaries
Revolving credit facility

Bank overdraft facilities
Committed, syndicated
Committed, bilateral
December 2011
September 2010
April 2013
As of December 31, 2009 and 2008, SEK 532 million and SEK
1,407 million, respectively, of the total facilities was utilized. In
total, the available unutilized amount under committed bank
credit facilities and overdraft facilities was SEK 13,074 million
and SEK 14,133 million as of December 31, 2009 and 2008,
respectively.
54
Currency
Limit
Limit
EUR
SEK
SEK
SEK (various)
1,000
1,400
1,853
1,000
2,000
1,400
1,204
ments with floating interest rates, have been estimated using

forward rates. Where gross settlements are performed (cross
currency interest rate swaps, currency swaps and forward exchange contracts), all amounts are reported on a gross basis.
The balances due within 12 months equal their carrying values
as the impact of discounting is insignificant.
As of December 31, 2009, contractual undiscounted cash flows

for the Groups interest-bearing borrowings and non-interestbearing currency derivatives represented the following expected
maturities, including installments and estimated interest payments. Amounts in foreign currency have been converted into
SEK using the exchange rate prevailing as of the end of the
reporting period. Future interest payments, related to instruExpected maturity
SEK in millions
Utilized bank overdraft facilities
Open-market financing program
borrowings
Other borrowings
Cross currency interest rate swaps
and interest rate swaps
Payables
Receivables
Currency swaps and forward
exchange contracts
Payables
Receivables
Total, net
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
243
3,517
123
2,507
121
2,707
39
513
7
6,529
8,369
8,052
10,805
34,945
533
77,944
6
9
303
7
5
8
94
7
1,662
21
508
9
379
6
7
4
46
4
3,010
75
299
329
180
581
2,529
2,629
177
136
1,987
2,451
5,341
5,766
4,307
5,009
475
900
9,318
10,473
24,613
28,274
37,122
37,159
130
130
72
73
37,324
37,362
3,708
2,539
2,741
693
7,755
8,461
7,735
10,391
33,840
77,863
Transaction exposure relates to net inflows or outflows of foreign

currencies required by operations (exports and imports) and/or
financing (interest and amortization). TeliaSoneras general policy is to hedge the majority of known operational transaction
exposure up to 12 months into the future. This hedging is primarily initiated via forward exchange contracts and refers to
invoiced cash flows. However, financial flows, such as loans and
investments, are usually hedged until maturity, even if that is
longer than 12 months. Financial flows longer than one year are
hedged by normally using cross currency interest rate swaps,
while shorter terms are hedged using currency swaps or forward
exchange contracts. Currency options may also be used from
time to time.
Expected maturities for and additional information on non-interest-bearing provisions and liabilities, guarantees and other contractual obligations are presented in Notes C23 Other Provisions,C24 Other Long-term Liabilities,C25 Trade Payables
and Other Current Liabilities and C30 Contingencies, Other
Contractual Obligations and Litigation, respectively.
Currency risk management

Currency risk is the risk that fluctuations in foreign exchange
rates will adversely affect the Groups results, financial position
and/or cash flows. Currency risk can be divided into transaction
exposure and conversion exposure.
As of December 31, 2009, TeliaSoneras portfolio of cross currency interest rate swap contracts represented the following currencies
and expected maturities. Amounts indicated represent carrying values.
Expected maturity
SEK in millions
JanJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
Cross currency interest rate swaps, received

Buy EUR
Buy USD
Buy JPY
Buy NOK
2,664
1,172
238
4,713
4,183
8,571
390
480
20,131
1,172
628
480
Total, received
2,664
1,410
4,713
4,183
9,441
22,411
Cross currency interest rate swaps, paid
2,301
1,282
4,625
3,744
8,714
20,666
Net position
363
128
88
439
727
1,745
55
As of December 31, 2009, the TeliaSonera Groups portfolio of currency swap contracts and forward exchange contracts hedging loans,
investments, and operational transaction exposures represented the following currencies and expected maturities. Amounts indicated
represent settlement values.
Expected maturity
SEK in millions
Sell USD
Sell EUR
Sell DKK
Sell NOK
Sell GBP
Sell other currencies
Sell foreign currencies total
Sell SEK
Sell total
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
20112014
Later
years
Total
4,774
1,980
129
92
40
93
118
72
4,964
1,980
129
92
40
93
7,108
30,014
118
12
72
7,298
30,026
37,122
130
72
37,324
Buy EUR
Buy DKK
Buy NOK
Buy USD
Buy GBP
Buy other currencies
27,440
2,534
1,492
1,427
487
69
27,448
2,534
1,492
1,431
487
69
Buy foreign currencies total
33,461
33,449
12
Buy SEK
3,710
118
73
3,901
Buy total
37,159
130
73
37,362
37
38
Net position
Conversion exposure relates to net investments in foreign

operations. TeliaSonera does not normally hedge its conversion
exposure.
TeliaSoneras net investments in foreign operations were distributed by currency as follows.
Dec 31, 2009
Currency
EUR
of which hedged through borrowings
NOK
TRY
RUB
DKK
LTL
EEK
USD
LVL
NPR
KZT
AZN
GEL
GBP
TJS
UZS
Other currencies
Total
Amount in
SEK million
82,300
17,900
34,560
20,896
18,247
14,247
6,948
6,135
3,598
3,499
3,273
1,915
1,330
1,082
882
603
558
780
200,853
Transaction exposure sensitivity
Dec 31, 2008

Percent
Amount in
SEK million
Percent
41.0
8.9
17.2
10.4
9.1
7.1
3.5
3.1
1.8
1.7
1.6
0.9
0.7
0.5
0.4
0.3
0.3
0.4
100.0
81,321
6,149
32,142
26,704
16,946
15,700
8,098
5,438
4,984
4,132
2,747
2,416
1,205
898
847
1,020
1,267
817
206,682
39.4
3.0
15.6
12.9
8.2
7.6
3.9
2.6
2.4
2.0
1.3
1.2
0.6
0.4
0.4
0.5
0.6
0.4
100.0
currency translation of other net income related items. Applying

the same assumptions, the positive impact on net income would
be approximately SEK 270 million on a full-year basis, should
the Euro, the Danish krone and the Baltic currencies weaken by
10 percentage points against the Swedish krona and all other
transaction currencies.
In most cases, TeliaSonera customers are billed in their respective local currency. Receivables from and payables to other
operators for international fixed-line traffic and roaming are normally settled net through clearing-houses. Hence, the operational need to net purchase foreign currency is primarily due to a
deficit from such settlements and the limited import of equipment
and supplies.
The negative impact on net income would be approximately
SEK 290 million on a full-year basis, should the Swedish krona
weaken by 10 percentage points against all other transaction
currencies, assuming an operational transaction exposure
equivalent to that in 2009, and provided that no hedging measures were taken and not including any potential impact due to
Conversion exposure sensitivity

The positive impact on Group equity would be approximately
SEK 18.3 billion if the Swedish krona weakened by 10 percentage points against all conversion exposure currencies, based on
the exposure as of December 31, 2009 and including hedges but
excluding any potential equity impact due to TeliaSoneras operational need to net purchase foreign currency or to currency
56
As of December 31, 2009, approximately 61 percent of total

borrowings, including relevant hedges, was subject to interest
rate adjustment within one year.
TeliaSoneras financial policy provides guidelines for interest
rates and the average maturity of borrowings. The Group aims at
balancing the estimated running cost of borrowing and the risk of
significant negative impact on earnings, should there be a
sudden, major change in interest rates. The Groups policy is
that the duration of interest of the debt portfolio should be from
6 months to 4 years.
If the loan portfolio structure deviates from the desired one,
various forms of derivative instruments are used to adapt the
structure in terms of duration and/or currency, including e.g.
interest rate swaps and cross currency interest rate swaps.
translation of other net income related items. TeliaSoneras conversion exposure is expected to grow due to ongoing expansion
of the international business operations.
Interest rate risk management

TeliaSoneras sources of funds are primarily equity attributable
to owners of the parent, cash flows from operating activities, and
borrowings. The interest-bearing borrowing exposes the Group
to interest rate risk. Interest rate risk is the risk that a change in
interest rates will negatively affect the Groups net interest expense and/or cash-flows.
Average interest rates, including relevant hedges, on TeliaSonera ABs outstanding long-term and short-term borrowings
as of the end of the reporting period was as follows.
Percent
Dec 31,
2009
Dec 31,
2008
2.99
3.91
4.91
5.30
As of December 31, 2009, the TeliaSonera Groups portfolio of interest rate swap contracts and cross currency interest rate swap
contracts represented the following interest types and expected maturities. Amounts indicated represent carrying values.
Expected maturity
SEK in millions
JanJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later years
Total
Interest received
Fixed interest rate
Floating interest rate
Total received
1,626
1,696
3,322
1,649
641
2,290
5,492
4,713
10,205
432
4,818
5,250
3,474
708
4,182
15,747
10,719
26,466
28,420
23,295
51,715
Interest paid
Fixed interest rate
Floating interest rate
2,336
657
1,253
897
9,859
723
4,171
785
3,409
1,994
23,358
7,091
42,351
Total paid
2,993
2,150
9,859
4,894
4,194
25,352
49,442
Net position
329
140
346
356
12
1,114
2,273
point, and assuming the same volume of loans and a similar

duration on those loans as per year-end 2009.
TeliaSonera AB has designated certain interest rate swaps as

cash flow hedges to hedge against changes in the amount of
future cash flows related to interest payments on existing liabilities (also including certain long-term borrowings hedging net
investments, see Note C21 Long-term and Short-term Borrowings). Hedge ineffectiveness related to outstanding cash flow
hedges was immaterial and recognized in net income. Net
changes in fair value recognized in other comprehensive income
are offset in a hedging reserve as a component of equity (see
Note C12 Other Comprehensive Income). In 2009, no cash
flow hedges were discontinued due to the original forecasted
transactions not having occurred in the originally specified time
period.
Financing risk management

TeliaSoneras aggregate borrowings usually have a longer
maturity than duration of interest (principal is fixed longer than
interest rates). This allows the Group to obtain the desired
interest rate risk without having to assume a high financing risk.
The Groups policy is that the average maturity of borrowings
should normally exceed 2 years. In order to reduce financing
risk, the Group aims to spread loan maturity dates over a longer
period. As of December 31, 2009, TeliaSonera AB borrowings
had an average time to maturity of approximately 5.0 years.
TeliaSonera AB enjoys a strong credit rating with the rating
agencies Moodys and Standard & Poors. In 2009, Moodys
confirmed its assigned credit rating on TeliaSonera AB at A3 for
long-term borrowings and P-2 for short-term borrowings, with a
Stable outlook. Standard & Poors credit rating on TeliaSonera
AB remained unchanged at A- for long-term borrowings and A-2
for short-term borrowings, with a Stable outlook. These ratings
represent a solid investment grade level and are thus expected
to allow TeliaSonera continued good access to the financial
markets.
TeliaSonera finances its operations chiefly by borrowing under
its uncommitted open-market financing programs directly in
Swedish and international money markets and capital markets.
TeliaSonera also use some bank financing, which represented
approximately 5 percent of the Groups total borrowing as of
December 31, 2009. The open-market financing programs typically provide a cost-effective and flexible alternative to bank
financing.
Interest rate risk sensitivity

As of December 31, 2009, TeliaSonera AB had interest-bearing
debt of SEK 66.0 billion with duration of interest of approximately
2.4 years, including derivatives. The volume of loans exposed to
changes in interest rates over the next 12-month period was at
the same date approximately SEK 40 billion, assuming that existing loans maturing during the year are refinanced and after
accounting for derivatives. The exact effect of a change in interest rates on the financial net stemming from this debt portfolio
depends on the timing of maturity of the debt as well as reset
dates for floating rate debt, and that the volume of loans may
vary over time, thereby affecting the estimate. However, assuming that those loans were reset by January 1, 2010 at a one
percentage point higher interest rate than the prevailing rate as
per December 31, 2009, and remained at that new level during
12 months, the post-tax interest expense would increase by
some SEK 295 million. Fair value of the loan portfolio would
change by approximately SEK 1,700 million, should the level in
market interest rates make a parallel shift of one percentage
57
Pension obligation risk
Management of insurable risks
As of December 31, 2009, the TeliaSonera Group had pension

obligations which net present value amounted to SEK 23,503
million (see Note C22 Provisions for Pensions and Employment
Contracts). To secure these obligations, the Group has pension
funds, with plan assets of SEK 19,401 million based on market
values as of December 31, 2009. The pension funds assets are
used as prime funding source for the pension obligations, and
consisted of approximately 53 percent fixed income instruments
and approximately 47 percent shares and other investments at
year-end 2009. The expected average net return on the pension
funds plan assets is 4.9 percent annually. The portion of the
pension obligations not covered by plan assets is recognized in
the statement of financial position, adjusted for unrecognized
actuarial gains and losses, and unrecognized past service cost.
In 2009, accumulated actuarial losses decreased from SEK
5,035 million to SEK 3,890 million. The actual net return on plan
assets was 12.5 percent (negative 8.5 percent in 2008), mainly
due to rising prices on equity instruments. However, lower discount rates increased the present value of pension obligations.
As of December 31, 2009, the strategic asset allocation decided by the board of the Swedish pension fund, which represents approximately 84 percent of total plan assets, was 60
percent fixed income, 32 percent equities and 8 percent other
investments. Other investments include primarily hedge funds
and private equity. Out of the total strategic assets, 40 percent
are domestic index (inflation) linked government bonds and 20
percent refers to other domestic fixed income assets with low
credit risk. Out of the equity holdings, domestic equities represent 10 percentage points and global equities 22 percentage
points. The actual allocation may fluctuate from the strategic
allocation in a range of +/-10 percent between fixed income and
equities. All assets in the Swedish pension fund are managed by
appointed external managers with specialist mandates.
The insurance cover is governed by corporate guidelines and

includes a common package of different property and liability
insurance programs. The business units and other units being
responsible for assessing the risks decide the extent of actual
cover. Corporate Insurance at TeliaSonera AB manages the
common Group insurance programs and uses a captive, TeliaSonera Frskring AB, as a strategic tool in managing the insurance programs. The risks in the captive are in part reinsured in
the international reinsurance market.
C28. Leasing Agreements

TeliaSonera as lessee
Finance leases
The Groups finance leases concerns computers and other IT
equipment, production vehicles, company cars to employees,
and other vehicles. There is no subleasing.
The carrying value of the leased assets as of the end of the
reporting period was as follows.
SEK in millions
Dec 31,
2009
Dec 31,
2008
104
35
623
491
69
132
Cost
Less accumulated depreciation and
impairment losses
Net carrying value of finance lease
agreements
A substantial portion of the leasing contracts expired in 2009. In

2009 and 2008, depreciation and impairment losses totaled SEK
107 million and SEK 135 million, respectively. Leasing fees paid
in these years totaled SEK 37 million and SEK 63 million, respectively.
As of the end of the reporting period, the present value of
future minimum leasing fees under non-cancelable finance lease
agreements was as follows.
Pension obligation risk sensitivity

The approximate impact on the pension obligations is SEK 4.1
billion, should the weighted average discount rate decrease by
one percentage point from the 4.1 percent which is currently
used. Such an increase in the obligations, were interest rates to
fall, should be partly offset by a positive impact from the fixed
income assets in the pension funds. Based on the existing asset
structure and the duration of the pension funds fixed income
portfolios (including index-linked bonds) as of December 31,
2009, and assuming that the value of the other assets in the
pension funds were unchanged, a similar reduction in interest
rates is estimated to increase the value of the pension funds
assets by some SEK 0.9 billion.
Exogenous risk factors might from time to time lead to actuarial modifications increasing TeliaSoneras pension obligations.
However, the impact on the obligations of such modifications
cannot be quantified until realized.
SEK in millions
Total future minimum leasing fees
Less interest charges
Dec 31,
2009
Dec 31,
2008
75
6
114
10
69
104
Present value of future minimum

leasing fees
As of December 31, 2009, future minimum leasing fees and their present values as per finance lease agreements that could not be
canceled in advance and were in excess of one year were as follows.
Expected maturity
SEK in millions
Future minimum leasing fees
Present value of future minimum lease
payments
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
9
8
7
6
7
7
8
7
21
20
8
7
6
5
5
5
4
4
75
69
Operating leases
TeliaSoneras operating lease agreements primarily concern
office space, technical sites, land, computers and other equipment. Certain contracts include renewal options for various
periods of time. Subleasing consists mainly of office premises.
58
Future minimum leasing fees under operating lease agreements in effect as of December 31, 2009 that could not be canceled in advance and were in excess of one year were as follows.
Expected maturity
SEK in millions
2010
2011
2012
2013
2014
Later years
Total
Future minimum leasing fees

Minimum sublease payments
2,002
21
1,655
9
1,329
4
1,086
2
920
1,932
8,924
36
est rate. Most contracts include renewal options. In Finland,

TeliaSonera also under a finance lease agreement provides
electricity meters with SIM cards for automated reading to a
power company as part of TeliaSonera's service package. The
term of the agreement is 15 years and carries a fixed interest
rate.
As of the end of the reporting period, the present value of future minimum lease payment receivables under non-cancelable
finance lease agreements was as follows.
In 2009 and 2008, total rent and leasing fees paid were SEK
2,627 million and SEK 2,592 million, respectively. In these years,
revenue for subleased items totaled SEK 21 million and SEK 23
million, respectively.
At the end of 2009, office space and technical site leases covered approximately 761,000 square meters, including approximately 5,700 square meters of office space for TeliaSoneras
principal executive offices, located at Stureplan 8 in Stockholm,
Sweden. Apart from certain short-term leases, leasing terms
range mainly between 3 and 50 years with an average term of
approximately 6 years. All leases have been entered into on
conventional commercial terms. Certain contracts include renewal options for various periods of time.
SEK in millions
Minimum lease payments receivable
Unguaranteed residual values accruing to the
benefit of the lessor
TeliaSonera as lessor
Finance leases
Dec 31,
2009
Dec 31,
2008
1,373
1
1,344
1
1,372
1,343
183
1,189
210
1,133
Gross investment in finance lease

contracts
Unearned finance income
payments receivable (net investment in
finance lease contracts)
The leasing portfolio of TeliaSonera's customer financing operations in Sweden, Finland, Denmark and Estonia comprises financing related to TeliaSonera's product offerings. The term of
the contract stock is approximately 12 quarters. The term of new
contracts signed in 2009 was 12 quarters. Of all contracts, 68
percent carry a fixed interest rate and 32 percent a floating inter-
As of December 31, 2009, the gross investment and present value of receivables relating to future minimum lease payments under noncancelable finance lease agreements were distributed as follows.
Expected maturity
SEK in millions
Gross investment
payments receivable
JanMar AprJun
2010
2010
96
88
96
88
JulSep OctDec
2010
2010
96
88
95
87
2011
271
243
2012
174
143
2013
89
78
2014
66
57
Later
years
389
317
Total
1,372
1,189
The carrying value of the leased assets as of the end of the

reporting period date was as follows.
As of December 31, 2009 and 2008, the accumulated allowance

for uncollectible minimum lease payments receivable totaled
SEK 9 million and SEK 8 million, respectively. Credit losses on
leasing receivables are reduced by gains from the sale of equipment returned.
SEK in millions
Dec 31,
2009
Dec 31,
2008
4,417
2,902
4,013
2,896
1,515
0
551
1,117
0
449
964
668
Cost
Less accumulated depreciation and
impairment losses
Operating leases
The leasing portfolio refers mainly to the international carrier
business and includes 20 agreements with other international
operators and 85 other contracts. Contract periods range between 10 and 25 years, with an average term of 20 years. In
addition, a number of operating lease agreements is related to
TeliaSonera's product offerings to end customers in Sweden and
Finland. Contract periods range between 3 and 5 or 6 years,
with an average term of approximately 3 years and 4 years,
respectively.
Gross carrying value

Plus prepaid sales costs
Less prepaid lease payments
Net value of operating lease agreements
Depreciation and impairment losses totaled SEK 329 million in

2009 and SEK 286 million in 2008.
Future minimum lease payment receivables under operating lease agreements in effect as of December 31, 2009 that could not be
canceled in advance and were in excess of one year were as follows.
Expected maturity
SEK in millions
Future minimum lease payment
receivables
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
60
59
58
57
184
137
59
28
27
669
59
C29. Related Party Transactions
Summarized information on transactions and balances with

associated companies and joint ventures was as follows.
The Swedish State and the Finnish State
JanuaryDecember
or December 31,
The Swedish State currently owns 37.3 percent and the Finnish
State 13.7 percent of the outstanding shares in TeliaSonera AB.
The remaining 49.0 percent of the outstanding shares are widely
held.
The TeliaSonera Groups services and products are offered to
the Swedish and the Finnish State, their agencies, and stateowned companies in competition with other operators and on
conventional commercial terms. Certain state-owned companies
run businesses that compete with TeliaSonera. Likewise, TeliaSonera buys services from state-owned companies at market
prices and on otherwise conventional commercial terms. Neither
the Swedish and Finnish State and their agencies, nor stateowned companies represent a significant share of TeliaSoneras
net sales or earnings.
The Swedish telecommunications market is governed mainly
by the Electronic Communications Act and ordinances, regulations and decisions in accordance with the Act. Notified operators are required to pay a fee to finance measures to prevent
serious threats and disruptions to electronic communications
during peacetime. The required fee from TeliaSonera was
SEK 47 million in 2009 and SEK 46 million in 2008. In addition,
TeliaSonera, like other operators, pays annual fees to the
Swedish National Post and Telecom Agency (PTS) to fund the
Agencys activities under the Electronic Communications Act
and the Radio and Telecommunications Terminal Equipment
Act. TeliaSonera paid fees of SEK 45 million in 2009 and SEK
47 million in 2008.
The Finnish telecommunications market is governed mainly by
the Communications Market Act and the Act on the Protection of
Privacy and Data Security in Electronic Communications as well
as by regulations, decisions and technical directions in accordance with these acts. In 2009 and 2008, TeliaSonera paid EUR
2.0 million and EUR 2.0 million, respectively, for the use of radio
frequencies and EUR 0.8 million and EUR 0.8 million, respectively, for the use of numbers. In 2009 and 2008, TeliaSonera
paid EUR 0.2 million and EUR 0.1 million, respectively, for data
privacy supervision and EUR 0.9 million and EUR 0.8 million,
respectively, as communications market fee, i.e. a general fee
paid for the regulatory activities of the Finnish Communications
Regulatory Authority (FICORA).
SEK in millions
Sales of goods and services
Svenska UMTS-nt AB (joint venture)
Other
2009
2008
320
252
357
145
Total sales of goods and services

Purchases of goods and services
Svenska UMTS-nt AB (joint venture)
Other
572
502
725
192
550
159
917
52
709
61
Total purchases of goods and services

Loans receivable
OAO MegaFon, Russia
Total loans receivable
Total trade and other payables
362
362
177
206
Pension and personnel funds

As of December 31, 2009, TeliaSoneras pension funds held
2,184,988 shares in TeliaSonera AB, or 0.05 percent of the voting rights. For information on transactions and balances, see
Note C22 Provisions for Pensions and Employment Contracts.
As of the same date, TeliaSonera Finland Oyjs Personnel
Fund held 1,163,035 shares in TeliaSonera AB, or 0.03 percent
of the voting rights. The fund manages a profit-sharing arrangement for TeliaSoneras Finnish subsidiaries and, under its charter, 30 percent of each years profit-sharing payment received
should be invested in TeliaSonera shares. For information on
costs related to the profit-sharing arrangement, see Note C32
Human Resources.
Commitments and collateral held

TeliaSonera has made certain commitments on behalf of group
companies, associated companies and joint ventures and holds
collateral in the form of shares in associated companies. See
Note C30 Contingencies, Other Contractual Obligations and
Litigation for further details.
Key management
See section Remuneration to corporate officers in Note C32
Human Resources for further details.
Associated companies and joint ventures

TeliaSonera sells and buys services and products to and from
associated companies and joint ventures. These transactions
are based on commercial terms. Sales to as well as purchases
from these companies mainly related to Svenska UMTS-nt AB
in Sweden and comprised 3G capacity and network construction
services bought and sold.
C30. Contingencies, Other Contractual

Obligations and Litigation
Contingent assets and financial guarantees
As of the end of the reporting period, TeliaSonera had no contingent assets, while financial guarantees reported as contingent
liabilities were distributed as follows.
Dec 31,
2009
Dec 31,
2008
Credit guarantee on behalf of Svenska

UMTS-nt AB
Other credit and performance guarantees,
etc.
2,025
2,275
33
39
Subtotal (see Liquidity risk Note C27)

Guarantees for pension obligations
Total financial guarantees
2,058
248
2,306
2,314
243
2,557
SEK in millions
60
As of December 31, 2009, credit and performance guarantees represented the following expected maturities.
Expected maturity
SEK in millions
JanMar AprJun
2010
2010
Credit and performance guarantees
JulSep OctDec
2010
2010
250
16
250
2011
2012
2013
2014
Later
years
Total
1,527
15
2,058
guarantee a loan in favor of AF Telecom Holding which is one of

the shareholders of TCI.
Some loan covenants agreed limit the scope for divesting or

pledging certain assets. Some of TeliaSonera ABs more recent
financing arrangements include change-of-control provisions
which under certain conditions allow the lenders to call back the
arrangement before scheduled maturity. Conditions required
include a new owner taking control of TeliaSonera AB, inter alia
also resulting in a lowering of TeliaSonera ABs official credit
rating to a non-investment grade level.
For all financial guarantees issued, stated amounts equal the
maximum potential future payments that TeliaSonera could be
required to make under the respective guarantee.
As security for certain amounts borrowed by TeliaSoneras 50
percent owned joint venture Svenska UMTS-nt AB under a
third-party credit facility totaling SEK 4,050 million, TeliaSonera
and Tele2, the other shareholder of Svenska UMTS-nt, have
each severally but not jointly issued credit guarantees of a
maximum of SEK 2,025 million to the lenders and granted
pledges of their shares in Svenska UMTS-nt. The indebtedness
under the credit facility may become due on an accelerated basis, under certain circumstances, including if either TeliaSonera
or Tele2 ceases to hold, directly or indirectly, 50 percent of the
company, unless the lenders provide their advance consent.
TeliaSonera is not contractually required to provide any further
capital contributions to or financial guarantees in favor of Svenska UMTS-nt. As of December 31, 2009, Svenska UMTS-nt
had, under the credit facility, borrowed SEK 3,490 million, of
which TeliaSonera guaranteed 50 percent, or SEK 1,745 million.
Collateral pledged
As of the end of the reporting period, collateral pledged was
Dec 31,
2009
Dec 31,
2008
For long-term borrowings: Shares in Svenska

UMTS-nt AB
For pension obligations: Real estate
mortgages
For pension obligations: Current receivables
For warranty provisions: Blocked funds in
bank accounts
For other provisions: Bonds and short-term
investments
For bank overdraft facilities: Chattel
mortgages
For operating leases: Real estate mortgages
For operating leases: Blocked funds in bank
accounts
For deposits from customers: Blocked funds
in bank accounts
For investments in associated companies:
Blocked funds in bank accounts
For court proceedings: Blocked funds in bank
accounts
334
84
21
23
30
269
46
1,158
101
140
18
3
1
3
1
63
119
37
225
Total collateral pledged
822
1,854
SEK in millions
Collateral held
OAO Telecominvest (TCI), 26.1 percent owned by TeliaSonera,
owns 31.3 percent of the shares in TeliaSoneras associated
company OAO MegaFon. TeliaSonera has signed agreements
with TCI and a TCI shareholder in order to secure TeliaSoneras
ownership in MegaFon, including an agreement under which TCI
has pledged 8.2 percent of the shares in MegaFon to TeliaSonera. TCI has pledged its remaining shares in MegaFon, corresponding to a 23.1 percent ownership in MegaFon, in order to
As of December 31, 2009, TeliaSonera had recognized all of its

commitments on behalf of Ipse 2000 S.p.A. as a warranty provision. Ipses UMTS license payments to the Italian government
have been secured by bank guarantees. According to an agreement with the bank, Ipse and its shareholders, including TeliaSonera, have given cash collateral for the remaining license
payments up until 2010. TeliaSoneras part of the cash collateral
amounts to SEK 258 million (EUR 25 million). See Note C23
Other Provisions for additional information.
Other unrecognized contractual obligations

As of December 31, 2009, unrecognized contractual obligations regarding future acquisitions (or equivalent) of non-current assets
Expected investment period
SEK in millions
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
Intangible assets
47
398
1
218
0
24
5
25
14
79
665
Total (see Liquidity risk

Note C27)
445
219
24
30
14
744
mined that in substance the transactions were not leases and

reported the amounts net in the statement of financial position.
Both the lease receivables and the lease obligations were settled at the inception of the agreement and TeliaSonera received
a net cash consideration of USD 11 million (EUR 9 million) which
was reported as an advance payment received and has been
recognized in financial income over the agreement term. In
2008, some amendments to the structure were initiated whereby
TeliaSonera provided additional security to certain stakeholders
under the agreement. TeliaSonera has defeased all obligations
under the agreement but retains the ownership of the equipment. However, during the agreement period, TeliaSonera can
not dispose of the equipment but may make replacements. In
Most of the obligations with respect to property, plant and equipment refer to contracted build-out of TeliaSoneras mobile and
fixed networks in Sweden.
TeliaSoneras Spanish subsidiary Xfera Mviles S.A. also pays
an annual spectrum fee during the term of its 3G license expiring
in 2020. The fee is determined on an annual basis by the
Spanish government authorities and for 2010 is set to SEK 281
million (EUR 27 million).
In December 1998, TeliaSonera Finland Oyj (formerly Sonera
Oyj) entered into a cross-border finance lease-leaseback agreement for mobile network equipment, with a zero carrying value
as of December 31, 2009. The agreement term is 15 years, with
an early buy-out option in January 2010. TeliaSonera deter-
61
C31. Cash Flow Information
January 2010, the early buy-out option was exercised which

terminated the agreement, but during 2010, TeliaSonera has to
fulfill some remaining payment obligations, for which assets are
already set aside within the overall agreement structure and
which are expected not to exceed USD 40 million.
Cash flow from operating activities under the direct

method presentation
Legal and administrative proceedings
JanDec
2009
JanDec
2008
109,903
76,239
103,143
71,793
Cash flow generated from operations

Dividends received
Interest received
Interest paid
Income taxes paid
33,664
2,153
371
2,141
3,056
31,350
1,410
787
2,569
3,892
30,991
27,086
SEK in millions
In its normal course of business, TeliaSonera is involved in a

number of legal proceedings. These proceedings primarily involve claims arising out of commercial law issues and matters
relating to telecommunications regulations and competition law.
In particular, TeliaSonera is involved in numerous proceedings
related to interconnect fees, which affects future revenues. Except for the proceedings described below, TeliaSonera or its
subsidiaries are not involved in any legal, arbitration or regulatory proceedings which management believes could have a
material adverse effect on TeliaSoneras business, financial
condition or results of operations.
During the second half of 2001, a number of operators filed
complaints against TeliaSonera with the Swedish Competition
Authority and the Authority initiated an investigation regarding
TeliaSoneras pricing of ADSL services. The complaints suggest
that the difference between TeliaSoneras wholesale prices and
retail prices is too low to effectively enable competition in the
retail market. In December 2004, the Competition Authority sued
TeliaSonera at the Stockholm District Court claiming that TeliaSonera has abused its dominant position. The Authority demands a fee of SEK 144 million. TeliaSoneras position is that it
has not engaged in any prohibited pricing activities. Following
the Competition Authoritys lawsuit, Tele2 has on April 1, 2005
and Spray Network on June 29, 2006, respectively, claimed
substantial damages from TeliaSonera due to the alleged abuse
of dominant market position. TeliaSonera will vigorously contest
Tele2s and Spray Networks claims. The actions for damages
have been stayed pending the case between TeliaSonera and
the Competition Authority.
TeliaSonera is currently involved in court cases with Primav
Construcoes e Comercio and Telmig, former shareholders of the
Brazilian mobile operator Tess, relating to such shareholders
disposal of their investments in Tess as well as certain call options and subscription rights in Tess. Whilst TeliaSonera has
sold its holding in Tess, it has entered into certain guarantees to
compensate the buyer for certain losses in connection with the
above-mentioned court cases. TeliaSonera will vigorously contest any claims in connection with the disputes. Even if TeliaSonera believes that losing the disputes is not probable, but
given the anticipated duration of the court proceedings, TeliaSonera has recognized a provision for estimated future legal
fees.
Geocell LLC, a subsidiary of TeliaSonera in Georgia, has received a decision from the local tax authority claiming a value
added tax penalty in the amount of GEL 101 million (approximately SEK 450 million). On appeal, the claim has been remitted
to the tax authority for a renewed assessment of the case. Geocell will vigorously contest the tax authoritys claim.
Cash receipts from customers

Cash paid to employees and suppliers
Non-cash transactions
Asset retirement obligations (AROs)
In 2009 and 2008, obligations regarding future dismantling and
restoration of technical sites entailed non-cash investments of
SEK 1,055 million and SEK 443 million, respectively.
Building-infrastructure exchange transactions

TeliaSonera provides and installs infrastructure in buildings and
as compensation is granted an exclusive right to deliver services
for 5-10 years through this infrastructure. These activities entailed non-cash exchanges of SEK 391 million in 2009 and
SEK 141 million in 2008.
Acquisitions and divestitures

The TeliaSonera Group is continually restructured by acquiring
and divesting equity instruments or operations. The fair value of
assets acquired and liabilities assumed in subsidiaries and the
total cash flow from acquisitions were as follows.
JanDec
2009
JanDec
2008
1,899
28
19
5,132
464
268
105
8
1,853
13
1,047
21
478
408
294
612
Total purchase consideration

Less repayment of certain borrowings
Less purchase consideration paid prior to the
business combination
Less cash and cash equivalents in acquired
group companies
4,841
4,185
40
75
105
Net cash outflow from acquired group

companies
Purchase consideration for other acquisitions
4,838
4,045
264
34
Total cash outflow from acquisitions
5,102
4,079
SEK in millions
Intangible assets
Financial assets, accounts receivable,
inventories etc.
Equity adjustments related to transactions
prior to the business combination
Minority interests
Provisions
Non-current liabilities
Current liabilities
In 2009, cash outflow was mainly related to the acquisition of

additional shares in AS Eesti Telekom in Estonia and, in 2008,
the acquisition of 51 percent of the shares in TeliaSonera Asia
Holding B.V., with operations in Nepal and Cambodia.
62
The fair value of assets divested and liabilities transferred in

subsidiaries and the total cash flow from divestitures were as
follows.
Sales consideration for other divestitures in 2009 included SEK

724 million for certain pre-emptive rights sold in connection with
the privatization of Azercell Telekom B.M. in Azerbaijan.
JanDec
2009
JanDec
2008
1
1
Total sales consideration

Less cash and cash equivalents in divested
group companies
Net cash inflow from divested group

companies
Sales consideration for other divestitures
887
26
Total cash inflow from divestitures
887
32
SEK in millions
Financial assets, accounts receivable,
inventories etc.
Assets held-for-sale
Liabilities related to assets held-for-sale
C32. Human Resources

Employees, salaries, and social security expenses
During 2009, the number of employees decreased by 2,437 to
29,734 at year-end (32,171 at year-end 2008), due to efficiency
measures executed in the existing operations, primarily in Sweden and Finland. The four minor business combinations in 2009
added 35 employees.
The average number of full-time employees by country was as follows.

JanDec 2009
Country
Sweden
Finland
Norway
Denmark
Lithuania
Latvia
Estonia
Spain
Kazakhstan
Azerbaijan
Uzbekistan
Tajikistan
Georgia
Moldova
Nepal
Cambodia
Russian Federation
United Kingdom
Other countries
Total
JanDec 2008
Total
(number)
of whom men
(%)
Total
(number)
of whom men
(%)
9,170
4,981
1,181
1,759
3,605
960
2,094
84
1,368
692
744
605
304
334
471
179
53
48
183
50.5
60.6
68.9
64.1
49.9
45.6
55.6
71.4
40.7
62.0
62.6
66.9
43.2
43.7
75.4
64.8
65.5
64.6
72.0
10,152
5,258
1,245
1,736
3,694
1,064
2,310
79
1,483
622
806
605
275
313
92
44
56
45
158
52.1
59.9
67.9
65.5
51.6
47.6
58.8
70.9
40.6
43.1
64.0
64.8
49.1
47.0
54.0
67.6
62.5
64.4
73.0
28,815
54.5
30,037
55.9
In total, operations were conducted in 32 countries in 2009 as in

2008.
The share of female and male Senior executives was as follows. Senior executives include ordinary members of boards of directors,
presidents and other members of executive management teams at the corporate level, business area level and company level.
Dec 31, 2009
Boards of
Other Senior
directors
executives
Percent
Women
Men
Total
63
Dec 31, 2008

Boards of
Other Senior
directors
executives
27.1
72.9
36.3
63.7
19.2
80.8
32.1
67.9
100.0
100.0
100.0
100.0
Total salaries and other remuneration, along with social security

expenses and other personnel expenses, were as follows.
SEK in millions
JanDec
2009
JanDec
2008
11,152
11,011
1,995
1,557
2,134
1,172
3,552
598
700
3,306
360
1,099
14,806
15,056
Salaries and other remuneration

Social security expenses
Employers social security contributions
Pension expenses
Total social security expenses
Capitalized work by employees
Other personnel expenses
Total personnel expenses recognized by
nature
Salaries and other remuneration were divided between Senior executives and other employees as follows. Variable pay was expensed
in the respective year, but disbursed in the following year.
SEK in millions
JanDec 2009
Senior executives
(of which variable
Other
pay)
employees
179 (30)
10,973
JanDec 2008
Senior executives
(of which variable
Other
pay)
employees
155 (27)
10,856
Upon notice of termination by the Company, the executive shall

be entitled to severance pay equal to the monthly base salary for
a period of maximum 12 months (24 months for the CEO). Other
benefits shall be competitive in the local market. The Board of
Directors may allow minor deviations on an individual basis from
this remuneration policy.
Remuneration to the Chief Executive Officer (CEO), the
Executive Vice President (EVP) and other members of Group
Management consists of base salary, annual variable pay, certain taxable benefits and pension benefits. As of December 31,
2009, TeliaSonera had no share-related incentive program.
Other members of Group Management refers to the 8 individuals who are directly reporting to the CEO and which, along with
the CEO and the EVP, constituted TeliaSonera Group Management on December 31, 2009. All 10 members of Group Management were hired pre-April 2009.
Annual variable pay to the CEO, EVP and to the other members of Group Management is capped at 50 percent of the base
salary. Variable pay is based on the financial performance of the
Group, financial performance in each officers area of responsibility and individual performance objectives.
Pension benefits and other benefits to the CEO, the EVP and
other members of Group Management as described above form
part of each individuals total remuneration package.
Pension expenses for all Senior executives totaled SEK 33 million in 2009 and SEK 25 million in 2008.
In 2009 and 2008, employee profit-sharing costs in TeliaSoneras Finnish subsidiaries totaled SEK 40 million and SEK 66
Remuneration to corporate officers

Board of Directors
As resolved by the 2009 Annual General Meeting of shareholders (AGM) in TeliaSonera AB, annual remuneration is paid to the
members of the Board of Directors in the amount of SEK
1,000,000 to the chairman and SEK 425,000 to each of the other
directors, elected by the AGM. In addition, annual remuneration
is paid to the members of the Boards Audit Committee in the
amount of SEK 150,000 to the chairman and SEK 100,000 to
each of the other members. Additional annual remuneration is
also paid to the members of the Boards Remuneration Committee in the amount of SEK 40,000 to the chairman and SEK
20,000 to each of the other members. No separate remuneration
is paid to directors for other committee work. Directors appointed
as employee representatives are not remunerated. There are no
pension benefit arrangements for external directors.
Group Management
The AGM decided in April 2009 that the remuneration components for executive contracts post-April 2009 may consist of
base salary, pension and other benefits. The remuneration components for executive contracts pre-April 2009 may consist of
base salary, annual variable pay of a maximum of 50 percent of
the base salary, pension and other benefits.
The guiding principle in Remuneration Policy for Executive
Management hired post-April 2009 as decided by the 2009
AGM is that remuneration and other terms of employment for the
executives shall be competitive in order to assure that TeliaSonera can attract and retain competent executives. The total remuneration shall consist of base salary, pension and other
benefits. Benefits refer to non-monetary remuneration for work
performed such as pension, company cars, housing allowance
and other taxable benefits. The base salary level is set individually and shall be aligned with the salary levels in the market in
which the executive in question is employed. Pension plans shall
follow local market practice and if possible, the defined contribution system shall be used for newly appointed executives. The
contract between the Company and the executive shall require a
notice period of at least six months from the employee and
maximum 12 months (6 months for the CEO) from the company.
64
Remuneration and other benefits during the year, capital value of pension commitments
SEK
Board of Directors
Tom von Weymarn, chairman
Maija-Liisa Friman
Conny Karlsson
Lars G Nordstrm
Timo Peltola
Lars Renstrm
Jon Risfelt
Caroline Sundewall
Group Management
Lars Nyberg, CEO
Per-Arne Blomquist, EVP
Other members of Group Management
(8 individuals)
Former CEOs and EVPs (7 individuals)
Total
Variable pay
Other
benefits
Pension
expense
Total
remuneration
and benefits
Capital value
of pension
commitment
1,140,024
562,506
505,011
445,008
447,091
333,756
525,012
477,507
1,140,024
562,506
505,011
445,008
447,091
333,756
525,012
477,507
8,404,800
4,738,008
22,854,566
3,235,848
1,824,130
8,404,233
347,334
549,841
3,198,275
8,424,096
1,821,852
10,825,118
20,412,078
8,933,831
45,282,192
38,557,980
Board
remuneration/
Base salary
179,890,234
40,433,289
13,464,211
4,095,450
21,071,066
79,064,016
218,448,214
The contributions into the plan are vested immediately. The

normal retirement age is 65, although the Company may request
the CEO to enter into early retirement not earlier than from
age 60 and the CEO may enter into early retirement on his own
request not earlier than from age 60. Contributions to the pension scheme will cease at retirement or earlier if leaving the
company for any other reason.
Comments on the table:

Board remuneration includes remuneration for Audit Committee and Remuneration Committee work. Remuneration is
paid monthly.
Variable pay was expensed in 2009, but will be disbursed in

2010. Actual variable pay for 2009 corresponds to 38.5
percent of the base salary for the CEO, to 38.5 percent for
the EVP and for other members of Group Management to
33.738.5 percent of the base salary. Variable pay with
respect to performance in 2008 was paid in 2009 to the CEO
in an amount of SEK 3,100,800, to the EVP in an amount of
SEK 766,667 and to other members of the current Group
Management in an amount of SEK 7,595,961.
Other benefits refer chiefly to company car but also to a

number of other taxable benefits. One other member of
Group Management is entitled to housing allowance. In the
absence of a long-term variable pay scheme, the EVP and
one other member of Group Management are compensated
by way of an annual fixed amount, which is included in the
total amount of Other benefits. The compensation will be
discontinued if and when a potential award from a long-term
variable pay scheme is introduced.
Pension expense refers to the expense that affected earnings for the year. See further disclosures concerning the
terms and conditions of pension benefits below.
Other members of Group Management

Other members of Group Management have individual pension
arrangements. Three members are covered by defined benefit
schemes and five members are covered by defined contribution
schemes. Two of the members covered by defined benefit
schemes have a retirement age of 62 and 60, respectively. The
retirement age for the remaining six members is 65.
The defined benefit executive scheme for those two members
with a retirement age lower than 65 is providing 70 percent of
pensionable salary until age 65. For all members covered by the
defined benefit executive scheme, the old age provision from
age 65 life-long is according to the ITP plan Section 2 with an
additional benefit of 32.5 percent on pensionable salaries above
20 income base amounts for two of the members and 32.5 percent on pensionable salary above 30 income base amounts for
one member. The pensionable salary includes base salary and
variable pay for those employed prior to July 1, 2002. For those
employed after July 1, 2002, only the base salary is pensionable.
The ITP Section 2 provides 10 percent of pensionable salary
up to 7.5 income base amounts, 65 percent of such salary between 7.5 and 20 income base amounts and 32.5 percent of
such salary between 20 and 30 income base amounts. Salaries
above 30 income base amounts are not pensionable. The benefits under the plan are vested immediately.
Five members have contributions in line with the ITP plan
Section 1 of 4.5 percent of the salary up to 7.5 income base
amounts and 30 percent of such salary above 7.5 income base
amounts based on the base salary. Three members have additional contributions of 20 percent of the base salary and one
member has an additional contribution of 15 percent of such
salary. All contributions to the schemes are vested immediately.
Pension benefits
TeliaSonera operates both defined benefit executive schemes
and defined contribution executive schemes. A defined benefit
scheme provides a pension level which is pre-determined as a
percentage of the pensionable salary at retirement. A defined
contribution scheme provides a contribution to the pension
scheme as a percentage of the pensionable salary. The level of
pension benefits at retirement will be determined by the contributions paid and the return on investments and the costs associated to the plan. As from July 2006, the defined benefit executive scheme is closed for new entrants in the Group and only
defined contribution executive schemes are offered.
CEO and EVP
For the CEO, the pension plan provides a defined contribution
arrangement which is two-fold. One part is providing a basesalary related contribution of 4.5 percent of the salary up to 7.5
income base amounts and 30 percent of such salary above 7.5
income base amounts. The income base amount is determined
annually by the Swedish Government and was SEK 50,900 for
2009. The second part is a fixed annual contribution of SEK
6,000,000. For the EVP, the pension agreement is the same as
for the CEO apart from the fixed contribution. For the EVP, there
is instead a 10 percent additional contribution of the base salary.
Severance pay
Termination of the CEOs employment by the Company or by the
CEO requires that notice is given by either party in writing 6
months before termination. Should a termination of employment
be initiated by the Company before the CEO has turned the age
of 60, the CEO is entitled to a severance pay in the amount of
two annual fixed salaries to be paid in 24 equal monthly installments. The salary during the notice period and the severance
pay will be reduced by any other income. Should the CEO give
notice of termination, he is not entitled to any severance pay.
65
policy regarding pre-approval of audit-related services and permissible non-audit services provided by audit firms.
Termination of employment in relation to the EVP and the other

members of Group Management require that notice is given in
writing 6 months before termination by the employees and 12
months before termination by the Company. Should notice be
given by the Company, the member is entitled to a severance
pay in the amount of one annual base salary to be paid in 12
equal monthly installments. The salary during the notice period
and the severance pay will be reduced by any other income.
Should the member give notice of termination on his or her own
initiative, he or she is not entitled to any severance pay.
C34. Business Combinations, etc.

Minor business combinations in 2009
For a number of minor business combinations in 2009, the aggregate cost of combination was SEK 153 million and the net
cash outflow SEK 150 million. Goodwill totaled SEK 75 million,
of which SEK 16 million was allocated to business area Mobility
Services, SEK 54 million to business area Broadband Services
and SEK 5 million to reportable segment Other operations.
Goodwill is explained by strengthened market positions. The
total cost of combination and fair values have been determined
provisionally, as they are based on preliminary appraisals and
subject to confirmation of certain facts. Thus, the purchase price
accounting is subject to adjustment.
Planning and decision process

Applying the remuneration policy adopted at the AGM each year,
the CEOs total remuneration package is decided by the Board
of Directors based on the recommendation of its Remuneration
Committee. Total remuneration packages to other members of
Group Management are approved by the Remuneration Committee, based on the CEOs recommendation.
Asia Holding purchase price allocation finalized
C33. Auditors Fees and Services
In the fourth quarter of 2009, TeliaSonera finalized the purchase

price allocation for TeliaSonera Asia Holding B.V., the Dutch
company with shareholdings in mobile operators in Nepal and
Cambodia that was acquired in October 2008. A few adjustments were made, resulting in a decrease of the value of the
mobile license and the related deferred tax liability, and higher
net debt. Goodwill increased net by SEK 160 million.
The following remuneration was paid to audit firms for audits and
other reviews based on applicable legislation and for advice and
other assistance resulting from observations in the reviews.
Remuneration was also paid for independent advice, using
Group auditors or other audit firms, in the fields of Tax/Law and
Corporate Finance as well as other consulting services. Audit
fees to other accounting firms refer to subsidiaries or associated
companies and joint ventures not audited by the Group auditors.
Auditors are elected by the Annual General Meeting.
PricewaterhouseCoopers AB (PwC) has served as TeliaSonera ABs independent auditor (Group auditor) since April 28,
2004 and was re-elected for a 3-year term at the 2008 Annual
General Meeting.
SEK in millions
PwC
Audits
Audit-related services
Tax services
All other services
Total PwC
Ernst &Young (E&Y)
Audits, audit-related services
Tax services
All other services
Total E&Y
KPMG
Tax services
All other services
Total KPMG
Other audit firms
Tax services and all other services
Total other audit firms
Total
JanDec
2009
JanDec
2008
48
5
1
4
46
2
0
1
58
49
1
4
5
1
7
8
5
2
2
5
7
2
5
7
76
71
C35. Risks and Uncertainties

TeliaSonera operates in a broad range of geographic product
and service markets in the highly competitive and regulated telecommunications industry. As a result, TeliaSonera is subject to a
variety of risks and uncertainties. TeliaSonera has defined risk
as anything that could have a material adverse effect on the
achievement of TeliaSoneras goals. Risks can be threats, uncertainties or lost opportunities relating to TeliaSoneras current
or future operations or activities.
TeliaSonera has an established risk management framework
in place to regularly identify, analyze, assess, and report business and financial risks and uncertainties, and to mitigate such
risks when appropriate. Risk management is an integrated part
of TeliaSoneras business planning process and monitoring of
business performance. Set forth below is a description of factors
that may affect TeliaSoneras business, financial position, results
of operations or the share price from time to time.
Risks related to the industry and market conditions

World economy changes
Changes in the global financial markets and the world economy
are difficult to predict. TeliaSonera has a strong balance sheet
and operates in a relatively non-cyclical or late-cyclical industry.
However, a severe or long-term downturn in the economy would
have an impact on TeliaSoneras customers and may have a
negative impact on its growth and results of operations through
reduced telecom spending.
The maturity schedule of TeliaSoneras loan portfolio is aimed
to be evenly distributed over several years, and refinancing is
expected to be made by using uncommitted open-market debt
financing programs and bank loans, alongside the companys
free cash flow. In addition, TeliaSonera has committed lines of
credit with banks that are deemed to be sufficient and may be
utilized if the open-market refinancing conditions are poor. However, TeliaSoneras cost of funding might be higher should there
be changes in the global financial markets or the world economy.
In addition, fees for audit firm services capitalized as transaction

costs in business combinations and similar transactions totaled
SEK 1 million in 2009 (other non-audit services performed by
E&Y) and SEK 5 million in 2008 (other non-audit services performed by KPMG amounting to SEK 1 million and by Other audit
firms amounting to SEK 4 million).
Within the provisions of Swedish legislation, the Audit Committee of the Board of Directors of TeliaSonera AB is responsible, among other matters, for the oversight of TeliaSoneras
independent auditors. The Board of Directors has adopted a
66
Risks related to TeliaSoneras operations and

strategic activities
Impairment losses and restructuring charges
Competition and price pressure

TeliaSonera is subject to substantial and historically increasing
competition and price pressure. Competition from a variety of
sources, including current market participants, new entrants and
new products and services, may adversely affect TeliaSoneras
results of operations. Competition has led to an increased customer churn and a decrease in customer growth rates as well as
to declines in the prices TeliaSonera charges for its products
and services and may have similar effects in the future.
In order to meet the increased competition and price pressure,
TeliaSonera has carried out efficiency improvement programs to
adjust its cost base accordingly. It is probable that TeliaSonera
will have to carry out new programs in the future to further adjust
its cost base. There is a risk that TeliaSonera will not be successful in implementing its programs due to operational or regulatory reasons or otherwise.
Factors generally affecting the telecom markets, and changes in

the economic, regulatory, business or political environment, as
well as TeliaSoneras ongoing review and refinement of its business plans, could adversely affect its financial position and results of operations. TeliaSonera could be required to recognize
impairment losses with respect to assets if managements expectation of future cash flows attributable to these assets
change, including but not limited to goodwill and fair value adjustments that TeliaSonera has recorded in connection with
acquisitions that it has made or may make in the future. Through
the merger of Telia and Sonera, the acquisition of NetCom, and
other acquisitions, TeliaSonera has a significant amount of
goodwill in its statement of financial position, amounting to approximately SEK 86 billion as of December 31, 2009, which is
not amortized but annually tested for impairment.
In the past, TeliaSonera has undertaken a number of restructuring streamlining initiatives, affecting the Swedish and Finnish
operations, the international carrier operations and the Danish
operations, which have resulted in substantial restructuring and
streamlining charges. Similar initiatives may be undertaken in
the future.
TeliaSonera has also significant deferred tax assets resulting
from earlier recorded impairment losses and restructuring
charges. Significant adverse changes in the economic, regulatory, business or political environment, as well as in TeliaSoneras business plans, could also result in TeliaSonera not being
able to use these tax assets in full to reduce its tax obligations in
the future, and would consequently lead to an additional tax
charge when such tax asset is derecognized.
In addition to affecting TeliaSoneras results of operations,
such losses and charges may adversely affect TeliaSoneras
ability to pay dividends. Any significant write-down of intangible
or other assets would have the effect of reducing, or possibly
eliminating, TeliaSoneras dividend capacity.
Regulation
TeliaSonera operates in a highly regulated industry. The regulations to which TeliaSonera is subject impose significant limits on
its flexibility to manage its business. For example, in both Sweden and Finland, TeliaSonera has been designated as a party
with significant market power in certain markets. As a result,
TeliaSonera is required to provide certain services on regulated
terms and prices, which may differ from the terms on which it
would otherwise have provided those services.
Changes in legislation, regulation or government policy affecting TeliaSoneras business activities, as well as decisions by
regulatory authorities or courts, including granting, amending or
revoking of licenses to TeliaSonera or other parties, could adversely affect TeliaSoneras business and results.
Emerging markets
TeliaSonera has made significant investments in telecom operators in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Nepal, Cambodia, Russia and Turkey. Historically,
the political, economic, legal and regulatory systems in these
countries have been less predictable than in countries with more
mature institutional structures. The future political situation in
each of the emerging market countries may remain unpredictable, and markets in which TeliaSonera operates may become
unstable.
Other risks associated with operating in emerging market
countries include foreign exchange restrictions, which could
effectively prevent TeliaSonera from receiving dividends or selling its investments. Another risk is the potential establishment of
foreign ownership restrictions or other potential actions against
entities with foreign owner-ship, formally or informally.
A large part of TeliaSoneras results is derived from emerging
markets, and especially from associated companies in Russia
and Turkey. In 2009, over 40 percent of operating income and
approximately 40 percent of net income attributable to owners of
the parent company was derived from investments in emerging
markets. Weakening of the economies or currencies or other
negative developments in these markets might have a significantly negative effect on TeliaSoneras results of operations.
Investments in networks, licenses, new technology and

start-up operations
TeliaSonera has made substantial investments in telecom networks and licenses and also expects to invest substantial
amounts over the next several years in the upgrading and expansion of networks. Many times, TeliaSonera also has to pay
fees to acquire new licenses or to renew or maintain the existing
licenses. In order to serve its customers, TeliaSonera may also
engage in start-up operations, such as Xfera Mviles S.A. in
Spain and Applifone Co. Ltd. in Cambodia, which require substantial investments and expenditure in the build-up phase.
The success of these investments will depend on a variety of
factors beyond TeliaSoneras control, including the cost of acquiring, renewing or maintaining licenses, the cost of new technology, availability of new and attractive services, the costs associated with providing these services, the timing of their introduction, the market demand and prices for such services, and
competition. A failure to realize the benefits expected from these
investments may adversely affect TeliaSoneras results of operation.
Allegations of possible health risks

Concerns have been expressed that the electromagnetic signals
from mobile handsets and base stations, which serve as the
platform for transmitting radio signals, may pose health risks and
interfere with the operation of electronic equipment. These concerns may intensify with time and as new products are introduced. Actual or perceived risks of mobile handsets or base
stations and related publicity or litigation could reduce the growth
rate, customer base or average usage per customer of TeliaSoneras mobile communications services, may result in significant restrictions on the location and operation of base stations,
or could subject TeliaSonera to claims for damages, any of
which could have a negative impact on its business, financial
position and results of operations.
Acquisitions, strategic alliances and business

combinations
TeliaSonera may expand and grow its business through business combinations, strategic alliances, etc. A failure in such
transactions could harm TeliaSoneras business and results of
operations. For example, due to competition in the identification
of acquisition opportunities or strategic partners, TeliaSonera
may make an acquisition or enter into a strategic alliance on
unfavorable terms. There are also the risks that TeliaSonera will
not be able to successfully integrate and manage any acquired
company or strategic alliance, the acquisition or strategic alliance will fail to achieve the strategic benefits or synergies
sought, and that management's attention will be diverted away
67
cell Iletisim Hizmetleri A.S. in Turkey, OAO MegaFon in Russia,

and Lattelecom SIA in Latvia. As a result, TeliaSonera has limited influence over the conduct of these businesses. Under the
governing documents for certain of these entities, TeliaSoneras
partners have control over or share control of key matters such
as the approval of business plans and budgets, and decisions as
to the timing and amount of cash distributions. The risk of actions outside TeliaSoneras or its associated companies control
and adverse to TeliaSoneras interests, or disagreement or
deadlock, is inherent in associated companies and jointly controlled entities.
As part of its strategy, TeliaSonera may increase its shareholdings in some of its associated companies. The implementation of such strategy, however, may be difficult due to a variety
of factors, including factors beyond TeliaSoneras control, such
as willingness on the part of other existing shareholders to dispose or accept dilution of their shareholdings and, in the event
TeliaSonera gains greater control, its ability to successfully
manage the relevant businesses.
In Sweden, TeliaSonera has entered into a cooperation arrangement with Tele2 to build and operate a UMTS network
through a 50 percent owned joint venture, Svenska UMTS-nt
AB, which has rights to a Swedish UMTS license. TeliaSonera
has made significant investments in and financial commitments
to this venture. As this is a jointly controlled venture, there is a
risk that the partners may disagree on important matters, including the funding of the company. This risk may be magnified
because TeliaSonera and Tele2 are significant competitors. A
disagreement or deadlock regarding the company or a breach by
one of the parties of the material provisions of the cooperation
arrangements could have a negative effect on TeliaSonera.
from other ongoing business concerns. In addition, any potential

acquisition could negatively affect TeliaSoneras financial position and its credit ratings, or, if made using TeliaSonera shares,
dilute the existing shareholders.
Shareholder matters in partly owned subsidiaries

TeliaSonera conducts some of its activities, particularly outside
of the Nordic region, through subsidiaries in which TeliaSonera
does not have a 100 percent ownership. Under the governing
documents for certain of these entities, the minority shareholders
have protective rights in matters such as approval of dividends,
changes in the ownership structure and other shareholderrelated matters. As a result, actions outside TeliaSoneras control and adverse to TeliaSoneras interests may effect TeliaSoneras position to act as planned in these partly owned subsidiaries.
Customer service and network quality

In addition to cost efficiency in all operations, TeliaSoneras
focus areas include high-quality service to its customers and
high quality of its networks. TeliaSoneras ambition to create a
world-class service company requires a major change of processes, attitude and focus in many parts of the company. The
high quality of networks and services is also fundamental in the
customer perception and TeliaSoneras success going forward.
Failure to reach or maintain such high levels might have an adverse impact on TeliaSoneras business.
Limited number of suppliers

TeliaSonera is reliant upon a limited number of suppliers to
manufacture and supply network equipment and related software as well as handsets, to allow TeliaSonera to develop its
networks and to offer its services on a commercial basis. TeliaSonera cannot be certain that it will be able to obtain network
equipment or handsets from alternative suppliers on a timely
basis if the existing suppliers are unable to satisfy TeliaSoneras
requirements. In addition, like its competitors, TeliaSonera currently outsources many of its key support services, including
network construction and maintenance in most of its operations.
The limited number of suppliers of these services, and the terms
of TeliaSoneras arrangements with current and future suppliers,
may adversely affect TeliaSonera, including by restricting its
operational flexibility.
Risks related to owning TeliaSonera shares

Volatility in share prices
The market price of the TeliaSonera share has been volatile in
the past, partly due to volatility in the securities market in general
and for telecom companies in particular, and may be volatile in
the future. TeliaSoneras share price may be affected by many
factors in addition to TeliaSoneras financial results, operations
and direct business environment, including but not limited to:
expectations of financial analysts and investors compared to the
actual financial results; acquisitions or disposals that TeliaSonera makes or is expected or speculated to make; TeliaSoneras
potential participation in the industry consolidation or speculation
thereof; and speculation of financial analysts and investors regarding TeliaSoneras future dividend policy compared to the
current policy.
Ability to recruit and retain skilled personnel

To remain competitive and implement its strategy, and to adapt
to changing technologies, TeliaSonera will need to recruit, retain,
and where necessary, retrain highly skilled employees with particular expertise. In particular, competition is intense for qualified
telecommunications and information technology personnel. To a
considerable extent, TeliaSoneras ability to recruit and retain
skilled personnel for growth business areas and new technologies will depend on its ability to offer competitive remuneration
packages. If TeliaSonera fails to recruit or retrain necessary
highly skilled employees, its ability to develop high growth business areas and new business areas or remain competitive in the
traditional business areas may be limited.
Actions by the largest shareholders

The Swedish State holds 37.3 percent and the Finnish State
holds 13.7 percent of TeliaSoneras outstanding shares. Accordingly, the Swedish State, acting alone, may have and the Swedish State and the Finnish State, if they should choose to act
together, will have the power to influence any matters submitted
for a vote of shareholders. The interests of the Swedish State
and the Finnish State in deciding these matters could be different from the interests of TeliaSoneras other shareholders.
In addition, any sale by the Swedish State or the Finnish State
of a significant number of TeliaSonera shares, or the public perception that these sales could occur, may cause the market
price of TeliaSonera shares to fluctuate significantly. As far as
TeliaSonera is aware, the Swedish State and the Finnish State
are currently not under any contractual commitment that would
restrict their ability to sell any shares.
Risks related to associated companies and joint

ventures
Limited influence in associated companies and joint
ventures
TeliaSonera conducts some of its activities, particularly outside
of the Nordic region, through associated companies in which
TeliaSonera does not have a controlling interest, such as Turk-
68
Parent Company Financial Statements
Parent Company Income Statements

SEK in millions
Note
JanDec
JanDec
2009
2008
Net sales
P2
15,135
16,132
Costs of production
P3
-12,015
-13,354
3,120
2,778
-102
-154
Gross income
P3
P3
-740
-753
P3
-305
-439
P4
86
20,606
P4
Operating income
Financial income and expenses
P5

Appropriations
P6
Income before taxes

Income taxes
P6
Net income
69
-620
-341
1,439
21,697
11,525
-3,417
12,964
18,280
-221
12,037
12,743
30,317
-479
-11
12,264
30,306
Parent Company Statements of Comprehensive

Income
JanDec
SEK in millions
Note
Net income
Cash flow hedges
Income taxes relating to other comprehensive income
P7

70
JanDec
2009
2008
12,264
30,306
65
-330
34
-97
-17
87
82
-340
12,346
29,966
Parent Company Balance Sheets

Dec 31,
Dec 31,
Note
2009
2008
Goodwill and other intangible assets
P8
1,032
1,257
P9
4,749
5,090
Deferred tax assets
P6
289
311
P10
165,090
164,194
SEK in millions
Assets
Other financial assets

171,160
170,852
Inventories
P11
P12
34,712
34,038
Short-term investments
P13
8,787
4,730
Cash and bank
P13
8,175
1,472
51,677
40,246
222,837
211,098
14,369
14,369
1,856
1,858
Retained earnings
50,791
28,484
Net income
12,264
30,306
Total shareholders equity
79,280
75,017
P6
8,245
8,024
P15
533
551
Other provisions
P16
165
157
698
708

Total assets
Shareholders equity and liabilities
Restricted equity
Share capital
Other reserves
Non-restricted equity
Untaxed reserves
Total provisions
Interest-bearing liabilities
P17
61,849
52,629
P17
69,365
70,335
P18
364
620
382
2,654
3,765
Non-interest-bearing liabilities
Long-term liabilities
Current tax payables
Short-term provisions, trade payables and other current liabilities
P19
Total liabilities
134,614
127,349
Total shareholders equity and liabilities
222,837
211,098
Contingent assets
P24
Guarantees
P24
5,030
5,743
Collateral pledged
P24
71
Parent Company Cash Flow Statements

SEK in millions
Note
Net income
JanDec
JanDec
2009
2008
12,264
30,306
2,781
1,756
-11
-21,221
Adjustments for:
Capital gains/losses on sales/discards of non-current assets
Pensions and other provisions
Financial items
Group contributions and appropriations
Income taxes
Cash flow before change in working capital
Increase (-)/Decrease (+) in operating receivables
Increase (-)/Decrease (+) in inventories etc.
Increase (+)/Decrease (-) in operating liabilities
Change in working capital
-829
-499
-1,394
1,357
221
-12,037
387
-1,029
13,419
-1,367
609
1,715
-5
-1,283
-2,062
-672
-352
12,747
-1,719
Intangible and tangible non-current assets acquired
P25
-1,121
-1,651
Equity instruments acquired
P25
-3,275
-3,591
29
Loans granted and other similar investments
175
10,354
Compensation from pension fund
870
500
-1
118
-3,323
5,730
Non-current assets divested, etc.
Net change in interest-bearing current receivables

9,424
4,011
-8,083
-17,962
-521
2,148
18,706
11,430
Repayment of long-term borrowings
-2,775
-1,231
Change in short-term borrowings
-5,991
5,016
1,336
-599
10,760
3,412
Dividend to shareholders
Group contributions and dividends received
Proceeds from long-term borrowings

Change in cash and cash equivalents
Cash and cash equivalents, opening balance
Change in cash and cash equivalents
P13
Cash and cash equivalents, closing balance

Dividends received
Interest received
Interest paid
Income taxes paid
72
6,202
2,790
10,760
3,412
16,962
6,202
11,768
231
1,635
6,091
-3,689
-9,430
-92
-751
Parent Company Statements of Changes in

Shareholders Equity
SEK in millions
Note
Share
capital
Statutory Revaluation
reserve
reserve
Fair value
reserve
Retained
earnings
Total shareholders'
equity
14,369
1,855
1,941
128
44,720
63,013
-17,962
-17,962
29,966
Dividend
-340
30,306
-1,938
1,938
14,369
1,855
-212
59,002
75,017
Dividend
-8,083
-8,083
82
12,264
12,346
-2
14,369
1,855
-130
63,185
79,280
Depreciation on and sales of tangible assets written-up
P14
Depreciation on tangible assets written-up

P14
73
Notes to Parent Company Financial Statements
P1. Basis of Preparation
standards, while they still have to comply with the Annual

Accounts Act in their separate financial statements. RFR 2.3
states that as a main rule listed parent companies should apply
IFRSs and specifies exceptions and additions, caused by legal
provisions or by the connection between accounting and taxation
in Sweden.
General
The parent company TeliaSonera ABs financial statements
have been prepared in accordance with the Swedish Annual
Accounts Act, other Swedish legislation, and standard RFR 2.3
Accounting for Legal Entities and other statements issued by
the Swedish Financial Reporting Board. As encouraged by the
Financial Reporting Board, TeliaSonera has pre-adopted
RFR 2.3. The standard is applicable to Swedish legal entities
whose equities at the end of the reporting period are listed on a
Swedish stock exchange or authorized equity market place. In
their consolidated financial statements such companies have to
comply with the EU regulation on international accounting
Measurement bases and significant accounting

principles
With the few exceptions below, TeliaSonera AB applies the
same measurement bases and accounting principles as
described in Notes to Consolidated Financial Statements
(Note C3).
Item
Note
Accounting treatment
Goodwill
Group contributions/Untaxed reserves and
appropriations
P8
P5, P6
Borrowing costs
P5, P8, P9
Investments in subsidiaries and associated

companies
P5, P10
Provisions for pensions and employment

contracts
Leasing agreements
P5, P15
Goodwill is amortized systematically over a maximum of 5 years.

Group contributions net received are recognized as dividends from subsidiaries, while
if net rendered are recognized directly in shareholders equity, net of income tax.
Untaxed reserves and appropriations are reported gross excluding deferred tax
liabilities related to the temporary differences.
Borrowing costs directly attributable to the acquisition, construction or production of
an asset are not capitalized as part of the cost of that asset.
Investments in subsidiaries and associated companies are recognized at cost less
any impairment. Dividends received are brought to income while return of an investment reduces the carrying value.
Pension obligations and pension expenses are recognized in accordance with FAR
SRS accounting recommendation No. 4 (RedR 4).
All leasing agreements are accounted for as operating leases.
P22
Amounts and dates
P2. Net Sales
Unless otherwise specified, all amounts are in millions of Swedish kronor (SEK million) or other currency specified and are
based on the twelve-month period ended December 31 for income statement and cash flow statement items, and as of
December 31 for balance sheet items, respectively.
Sales by customer location were distributed among economic

regions as follows.
SEK in millions
European Economic Area (EEA)
of which European Union (EU) member
states
of which Sweden
Rest of Europe
Total
Recently issued accounting standards

For information relevant to TeliaSonera AB, see Notes to Consolidated Financial Statements (corresponding section in
Note C1).
Key sources of estimation uncertainty

For information relevant to TeliaSonera AB, see Notes to Consolidated Financial Statements (Note C2).
JanDec
2009
JanDec
2008
15,135
15,132
16,129
16,119
15,088
15,135
16,051
3
16,132
Net sales were broken down by product category as follows.
SEK in millions
Fixed telephony
Internet
Network capacity
Data communications
Other
Total
JanDec
2009
8,614
3,206
2,053
840
422
15,135
JanDec
2008
9,263
3,183
2,204
865
617
16,132
There was no invoiced advertising tax in the years 2009 and

2008, respectively.
74
P3. Expenses by Nature
P5. Financial Income and Expenses
Operating expenses are presented on the face of the income

statement using a classification based on the functions Cost of
production, Selling and marketing expenses, Administrative
expenses and Research and development expenses.
Total expenses by function were distributed by nature as
follows.
Financial income and expenses were distributed as follows.
SEK in millions
Goods purchased
Interconnect and roaming expenses
Other network expenses
Personnel expenses (see also Note P26)
Rent and leasing fees
Consultants services
IT expenses
Other expenses
losses
Total
JanDec
2009
26
1,072
7,447
0
1,453
295
80
765
372
1,652
JanDec
2008
31
1,388
7,326
10
2,064
273
203
1,018
673
1,714
13,162
14,700
SEK in millions
Income from shares in subsidiaries
Dividends, etc.
Capital gains/losses, net
Impairment losses
Group contributions, net received
Total
Income from shares in associated
companies
Dividends, etc.
Impairment losses
Total
Income from other financial investments
Total
Other financial income
Interest from subsidiaries
Other interest income
Exchange rate gains
Amortization, depreciation and impairment losses were distributed by function as follows.

SEK in millions,
except proportions
Costs of production
Total
JanDec
2009
1,652
0
JanDec
2008
1,645
69
1,652
1,714
Total
Other financial expenses
Interest to subsidiaries
Other interest expenses
Interest component of pension expenses (see
also Note P15)
Total
P4. Other Operating Income and

Expenses

Capital losses
Restructuring costs
Impairment charges
Damages paid
Total other operating expenses
of which amortization, depreciation and
impairment losses
of which net exchange rate losses/gains on
derivative instruments held-for-trading
JanDec
2008
11,768
16
731
1,538
12,591
231
22
4
1,031
1,280
1
1
0
2
12
10
4
4
1
1
506
127
1,223
1,432
649
9
1,856
2,090
606
2,158
21
2,622
3,073
31
132
2,917
1,052
6,778
11,525
3,417
Other interest income in 2008 included received penalty interest

of SEK 290 million related to court rulings on certain historical
interconnect fees. Regarding Group contributions, refer to section Untaxed reserves, appropriations and group contributions
in Note P6 Income Taxes.
Other operating income and expenses were distributed as

follows.
SEK in millions
Capital gains
Exchange rate gains
Patents sold, commissions, etc.
Recovered accounts receivable, released
accounts payable
Damages received
Total other operating income
JanDec
2009
JanDec
2009
JanDec
2008
7
78
0
0
20,483
116
0
0
1
86
7
20,606
7
92
268
253
620
5
90
181
32
33
341
32
534
7
20,265
40
Capital gains in 2008 referred to assets transferred to the subsidiary TeliaSonera Skanova Access AB (see also Note P9
Property, Plant and Equipment).
75
Details on other interest expenses, net exchange rate gains and losses and other interest income related to hedging activities, loan
receivables and borrowings were as follows.
JanDec JanDec
2009
2008
Other interest
expenses
SEK in millions
Fair value hedge derivatives
Cash flow hedge derivatives
Borrowings and other financial liabilities at amortized cost
Other
Total
245
118
97
988
1,373
21
2,158
JanDec JanDec
2009
2008
Net exchange rate
gains and losses
173
211
2
572
2,083
32
3,073
1,348
81
366
599
1,348
939
1,091
2,047
75
3,857
2,538
2,047
2,287
1,043
JanDec JanDec
2009
2008
Other interest
income
127
127
630
19
649
Borrowings at amortized cost include items in cash flow hedge relationships as well as unhedged items.
P6. Income Taxes

Income tax expense
Deferred tax assets and liabilities
Pre-tax income was SEK 12,743 million in 2009 and SEK 30,317
million in 2008. Income tax expense was distributed as follows.
Deferred tax assets and liabilities changed as follows.
SEK in millions
Tax items recognized in net income
Current tax expense relating to current year
Deferred tax expense originated or reversed
in current year
Total tax expense recognized in net
income
Tax items recognized in other
Deferred tax originated or reversed in
current year
Total tax recognized in other
JanDec
2009
JanDec
2008
474
0
0
11
479
11
Dec 31,
2008
311
22
235
76
289
311

Temporary differences in deferred tax assets and liabilities were

as follows.
17
87
17
87
SEK in millions
Deferred tax assets
Fair value adjustments for other financial
assets
Delayed expenses for provisions
Total deferred tax assets
In 2008, the Swedish parliament passed changes to the tax

legislation, including, among others, a reduction of the Swedish
corporate income tax rate from 28 percent to 26.3 percent effective January 1, 2009. This triggered a recalculation of existing
deferred tax assets, resulting in a net deferred tax expense of
SEK 15 million in 2008.
The difference between the nominal Swedish income tax rate
and the effective tax rate comprises the following components.
Percent
Swedish income tax rate
Effect on deferred tax expense from change
in tax rate
Non-deductible expenses
Tax-exempt income
Effective tax rate
Dec 31,
2009
SEK in millions
Deferred tax assets
JanDec
2009
26.3
0.0
JanDec
2008
28.0
0.0
0.0
1.9
24.4
3.8
0.3
28.3
0.0
Total deferred tax liabilities

Net deferred tax assets
Dec 31,
2009
Dec 31,
2008
70
87
219
289
224
311
289
311
In 2009 and 2008, there were no accumulated non-expiring tax

loss carry-forwards or unrecognized deferred tax assets. As of
December 2009 and 2008, the unrecognized deferred tax liability
in untaxed reserves amounted to SEK 2,168 million and SEK
2,110 million, respectively.
Untaxed reserves, appropriations and group

contributions
Untaxed reserves in the balance sheet were distributed as
follows.
Dec 31,
2009
Dec 31,
2008
Profit equalization reserves

Accumulated excess amortization and
depreciation
6,224
2,021
5,625
2,399
Total
8,245
8,024
SEK in millions
In 2009, tax-exempt income consisted primarily of dividends received from subsidiaries. In 2008, tax-exempt income referred
mainly to an asset transfer to the subsidiary TeliaSonera Skanova Access AB (Skanova Access), made at market value in
exchange for new shares issued by Skanova Access. From a fiscal point of view, however, the assets were transferred at tax
book value and the consideration was treated as tax-exempt
income in TeliaSonera AB.
76
P8. Goodwill and Other Intangible

Assets
Excess amortization and depreciation changed as follows.
SEK in millions
Dec 31, 2009

Dec 31, 2008
Intangible Plant and Intangible Plant and
assets machinery
assets machinery
Opening balance
Reversals
Closing balance
143
1
142
2,256
377
1,879
108
35
143

Dec 31, Dec 31, Dec 31, Dec 31,
2009
2008
2009
2008
12,672
10,416
2,256
Appropriations brought to income were as follows.

JanDec
2009
JanDec
2008
Change in profit equalization reserves

Change in accumulated excess amortization
and depreciation
599
378
1,656
10,381
221
12,037
SEK in millions
Under certain conditions, it is possible to transfer profits through

group contributions between Swedish companies in a group.
Group contributions provided are normally a deductible expense
for the contributor and taxable income for the recipient. Group
contributions were as follows.
SEK in millions
Pre-tax group contributions, net received
(recognized in net income)
JanDec
2009
1,538
Cash flow hedges

Transferred to interest expenses in
net income
Income tax effect
Total cash flow hedges
Available-for-sale financial
instruments
Total available-for-sale financial
instruments
of which total income tax effects
(see also Note P6)
Fair value
reserve
Fair value
reserve
Fair value
reserve
Fair value
reserve
JanDec
2009
Accumulated cost
Accumulated amortization
Carrying value
of which work in progress
Investments and operations acquired
Grants received
Reclassifications
Amortization for the year
114
112
11
JanDec
2008
1,031
JanDec
2008
348
73
18
17
87
48
243
34
97
34
97
82
17
340
87
Other intangible
assets
114
3,680
3,447
103 2,013 1,665
637
536
11
1,030
1,246
279
415
34
1,246
1,201
232
368
1
64
23
348
306
101
78
11
1,030
1,246
No general changes of useful lives were made in 2009. Goodwill

is amortized straight-line over 5 years. For other useful lives
applied, see Notes to Consolidated Financial Statements
(corresponding section in Note C2). In the income statement,
amortization and impairment losses are, if applicable, included in
all expense line items by function as well as in line item Other
operating expenses. Accelerated amortization, to the extent
allowed by Swedish tax legislation, is recorded as untaxed
reserves and appropriations (see this section in Note P6 Income Taxes). Other intangible assets were taken over from
subsidiaries at gross carrying value.
The carrying value of other intangible assets was distributed
as follows.
Other comprehensive income was distributed as follows.

Equity
component
Goodwill
P7. Other Comprehensive Income
SEK in millions
SEK in millions
SEK in millions
Licenses, contractual agreements, patents,
etc.
Work in progress
Dec 31,
2009
751
Dec 31,
2008
825
6
279
1,030
415
1,246
Capitalized development expenses and work in progress mainly

refer to administrative IT support systems.
No transfer necessitated adjustment of the cost of acquisition.
77
P9. Property, Plant and Equipment

Dec 31,
2009
Dec 31,
2008
SEK in millions
Property
Accumulated cost
Accumulated depreciation
Accumulated write-ups
537
226
Carrying value
of which assets under construction
Investments and operations acquired
Sales and disposals
Grants received
Reclassifications
Depreciation for the year
311
245
53
42
29
311
Dec 31,
2009
Dec 31,
2008
Plant and
machinery
Dec 31,
2008
Equipment, tools
and installations
442 41,437 40,750

197 36,546 35,439
566
551
6
3
245
233
36
24
245
Dec 31,
2009
4,331
4,763
681
851
4,763 18,361
831
1,190
36 13,432
5
69
59
1,158 1,292
4,331
4,763
748
636
5
107
82
30
26
31
107
Dec 31,
2009
Dec 31,
2008
Total
695 42,722 41,887

608 37,408 36,244
5
571
556
6
3
82
60
50
0
5
23
82
4,749
5,090
681
851
5,090 18,654
914
1,276
36 13,432
5
1
64
1,218 1,339
4,749
5,090
Plant and machinery
No general changes of useful lives were made in 2009. For

useful lives applied, see Notes to Consolidated Financial
Statements (corresponding section in Note C2). In the income
statement, amortization and impairment losses are, if applicable,
included in all expense line items by function as well as in line
item Other operating expenses. Accelerated depreciation, to the
extent allowed by Swedish tax legislation, is recorded as untaxed reserves and appropriations (see this section in Note P6
Income Taxes).
Plant and machinery includes switching systems and peripheral

equipment, transmission systems, transmission media and other
types of media in the Swedish fixed networks. Assets were
transferred from subsidiaries at gross carrying value. In 2008,
transfer of assets to the subsidiary TeliaSonera Skanova Access
AB net reduced the carrying value by SEK 13,427 million (accumulated cost SEK 32,952 million, accumulated depreciation
SEK 21,440 million, accumulated impairment losses SEK 12
million and accumulated write-ups SEK 1,927 million).
Property
Equipment, tools, and installations
As of December 31, 2009, no non-depreciable land was included

in the total carrying value of property. No property owned by
TeliaSonera AB was assigned tax-assessed values.
Assets were taken over from subsidiaries at gross carrying

value.
P10. Other Financial Assets

The total carrying value changed as follows.
Dec 31,
2009
SEK in millions
Dec 31,
2008
Investments in
associated
companies

New share issues and shareholder contributions
Additions
Divestitures
Impairment losses
Reclassifications
Changes in fair value
899
899
In 2008, new share issues and shareholder contributions included SEK 34,000 million that was provided in kind in exchange
for new shares issued by the subsidiary TeliaSonera Skanova
Access AB.
78
974
6
6
75
899
Dec 31,
2009
Dec 31,
2008
Investments in
other equity
instruments
110
2
3
33
148
Dec 31, Dec 31,

2009
2008
Investments in
subsidiaries and
other non-current
financial assets
Dec 31,
2009
Dec 31,
2008
Total
204 163,185 121,167 164,194 122,345

3
186 38,456
188 38,465
3,716
175
3,719
175
83
330
83
330
2 494
83 2,494
89
467
75
467
97
3,725
33
3,628
110 164,043 163,185 165,090 164,194
The total carrying and fair values of other financial assets by class were as follows.
Dec 31, 2009
Dec 31, 2008
Carrying value
Fair value Carrying value
Fair value
SEK in millions
Investments in other equity instruments available-for-sale
Investments in other equity instruments held-for-trading
Interest rate swaps designated as fair value hedges
Cross currency interest rate swaps designated as cash flow hedges
Interest rate and cross currency interest rate swaps held-for-trading
132
12
4
957
1,576
132
12
4
957
1,576
99
8
691
462
3,173
99
8
691
462
3,173
Subtotal (see Fair value hierarchy levels Note P20)

2,681
0
2,681
0
4,433
1
4,433
1
2,681
2,681
4,434
4,434
Subtotal (see Categories Note P20 and Credit risk Note P21)/Total fair value
Investments in subsidiaries
Receivables from subsidiaries
Investments in associated companies
Investments in other equity instruments at cost
Total other financial assets
161,395
111
899
4
165,090
2,796
162,294
158,858
899
3
164,194
4,436
159,758

value hierarchy level and exposed to credit risk, refer to Note
P20 Financial Assets and Liabilities by Category and Level and
section Credit risk management in Note P21 Financial Risk
Management, respectively. Conventional commercial terms
apply for receivables from subsidiaries.
For Loans and receivables (including claims on associated companies), fair value is estimated at the present value of future
cash flows discounted by applying market interest rates at the
end of the reporting period. As there had been no significant
change in credit quality, Loans and receivables as of the end of
the reporting period were not provided for.
Investments in subsidiaries are specified below, while corresponding information on associated companies and other equity instruments
is presented in Notes to Consolidated Financial Statements (Notes C15 and C16).
Subsidiary,
Participation
(%)
Swedish companies
TeliaSonera Skanova Access AB, 5564463734, Stockholm
Telia Nttjnster Norden AB, 5564593076, Stockholm
Baltic Tele AB, 5564540085, Stockholm
TeliaSonera Sverige AB, 5564300142, Stockholm
Amber Mobile Teleholding AB, 5565547774, Stockholm
TeliaSonera Mobile Networks AB, 5560257932, Nacka
Telia International AB, 5563521284, Stockholm
Cygate Group AB (publ), 5563640084, Solna
Telia International Holdings AB, 5565721486, Stockholm
TeliaSonera International Carrier AB, 5565832226, Stockholm
TeliaSonera Finans AB, 5564046661, Stockholm
TeliaSonera Frskring AB, 5164018490, Stockholm
TeliaSonera Sverige Net Fastigheter AB, 5563684801, Stockholm
IKT II Holding AB, 5566357306, Stockholm
Telia Electronic Commerce AB, 5562288976, Stockholm
Sense Communications AB, 5565828968, Stockholm
Sergel Kredittjnster AB, 5562648310, Stockholm
Telia International Management AB, 5565952917, Stockholm
TeliaSonera Asset Finance AB, 5565994729, Stockholm
TeliaSonera Network Sales AB, 5564580040, Stockholm
Telia Fastigheter Telaris AB, 5563436434, Stockholm
Telia Norge Holding AB, 5565919759, Stockholm
100
81
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
79
Number Carrying value (SEK in millions)

of shares
Dec 31, 2009
Dec 31, 2008
21,255,000
55,201
100,000
3,000,000
1,000
550,000
20,000
532,724,280
1,000
1,000,000
1,000
1,000,000
5,000
1,822,791
27,500
250,000
5,000
1,000
1,000
10,000
50,000,000
1,000
34,003
5,557
3,096
2,898
2,806
2,698
1,722
681
508
453
229
200
169
120
45
34
8
5
4
3
2
0
0
34,003
5,557
3,096
2,898
2,806
2,698
1,722
681
508
453
229
200
169
120
45
34
8
5
3
3
731
0
83
Subsidiary,
Participation
(%)

TeliaSonera Finland Oyj, 14756079, Helsinki
Sergel Oy, 15714161, Helsinki
TeliaSonera International Carrier Finland Oy, 16493049, Helsinki
Telia NetCom Holding AS, 954393232, Oslo
NextGenTel AS, 981649141, Bergen
TeliaSonera Chess Holding AS, 980107760, Bergen
ComHouse AS, 988755656, Larvik
Telia Norge AS, 975961176, Oslo
TeliaSonera International Carrier Norway AS, 981946685, Oslo
TeliaSonera Danmark A/S, 18530740, Copenhagen
Amber Teleholding A/S, 20758694, Copenhagen
Holmbladsgade 140 A/S, 19670996, Copenhagen
TeliaSonera International Carrier Denmark A/S, 24210413, Copenhagen
TEO LT, AB, 121215434, Vilnius
UAB Sergel, 125026242, Vilnius
SIA Telia Latvija, 000305757, Riga
TeliaSonera International Carrier Latvia SIA, 000325135, Riga
Latvijas Mobilais Telefons SIA, 000305093, Riga
SIA Sergel, 010318318, Riga
AS Eesti Telekom, 10234957, Tallinn
Xfera Mviles S.A., A82528548, Madrid
TeliaSonera Telekomnikasyon Hizmetleri L.S., 381395, Istanbul
TeliaSonera International Carrier Germany GmbH, HRB50081, Frankfurt am Main
TeliaSonera International Carrier France S.A.S., B421204793, Paris
TeliaSonera International Carrier Austria, FN191783i, Vienna
TeliaSonera International Carrier Switzerland AG, 21710005478, Zurich
TeliaSonera International Carrier Netherlands B.V., 34128048, Amsterdam
TeliaSonera International Carrier Belgium S.A., 469422293, Brussels
TeliaSonera International Carrier Italy S.p.A, 07893960018, Turin
TeliaSonera International Carrier Ireland Ltd., 347074, Dublin
ZAO TeliaSonera International Carrier Russia, 102780919732, Moscow
TOV TeliaSonera International Carrier Ukraine, 34716440, Kyiv
TeliaSonera International Carrier Poland Sp. z o.o., KRS00000186, Warsaw
TeliaSonera International Carrier Czech Republic a.s., 26207842, Prague
TeliaSonera International Carrier Slovakia, s.r.o., 36709913, Bratislava
TeliaSonera International Carrier Hungaria Tvkzlsi Kft., 0109688192,
Budapest
TeliaSonera International Carrier Bulgaria EOOD, 175215740, Sofia
TeliaSonera International Carrier Romania S.R.L., 20974985, Bukarest
TeliaSonera International Carrier Telekomnikasyon L.S., 609188556770,
Istanbul
TeliaSonera International Carrier, Inc., 541837195, Herndon, VA
TeliaSonera International Carrier Singapore Pte. Ltd, 200005728N, Singapore
Telia Swedtel (Philippines), Inc., AS095003695, Manila
Number Carrying value (SEK in millions)

of shares
Dec 31, 2009
Dec 31, 2008
100
100
100
100
100
100
100
100
100
100
100
100
100
4.9
100
100
100
24.5
100
38.8
76.6
99
100
100
100
100
100
100
100
100
100
100
100
100
100
1,417,360,375
267,966,000
100
100
3,750,000,000
160,959,656
181,700,000
2,000
32,666
14,500
1,000
200,000,000
1,000
39,895,616
1,500
328,300
205,190
140,679
1,000
53,530,987
517,025,247
79,193
2,700,000
1,000
910
50,620
530,211
27
220,807,825
52,500
20,000
75,448
277
98
4,596
2,335
2,315
237
189
80
6,835
3,049
1,344
172
218
7
123
13
2
1
3,317
2,549
10
1,329
681
118
54
60
20
17
6
200
1
58
182
7
75,448
277
37
4,596
2,335
2,315
239
189
80
6,835
3,048
1,344
172
4
123
13
2
1
2,523
10
1,329
681
0
54
60
20
17
0
200
0
63
182
7
100
100
100
40,050
20,001
32
19
10
32
19
10
100
100
100
100
55,919
100
1,200,002
124,995
8
136
1
0
0
8
530
1
2
0
161,395
158,858
Total
agreement, and TEO LT, AB, where TeliaSonera controls 68.1

percent of the votes considering the companys treasury shares.
Other operating and dormant companies do not control Group
assets of significant value. Holdings of Other Swedish companies for the comparative year (SEK 83 million), refer to the
liquidations of Sonera Sverige AB and Telia InfoMedia Interactive AB in 2009.
In addition to the companies mentioned above, TeliaSonera
AB indirectly controls a number of operating and dormant subsidiaries of subsidiaries.
Telia Norge Holding AB and Telia NetCom Holding AS jointly

own all shares in NetCom AS. A wholly-owned subsidiary holds
the remaining 19 percent of the shares in Telia Nttjnster Norden AB. Telia Danmark is a branch of Telia Nttjnster Norden
AB. Amber Teleholding A/S holds another 60 percent of the
shares in TEO LT, AB. Amber Mobile Teleholding AB owns all
shares in UAB Omnitel. Another 24.5 percent of the shares in
Latvijas Mobilais Telefons SIA are owned by a subsidiary. TeliaSonera has a board majority on Latvijas Mobilais Telefons. As of
January 12, 2010, following the completion of a squeeze-out
process, the parent companys holding in AS Eesti Telekom is
39.9 percent. Baltic Tele AB owns the remaining 60.1 percent of
the shares. Baltic Teles shares were transferred to the parent
company on February 25, 2010. The remaining shares in TeliaSonera Telekomnikasyon Hizmetleri L.S. are owned by TeliaSonera Finland Oyj which also indirectly controls Fintur Holdings
B.V. and TeliaSonera UTA Holding B.V.
Equity participation corresponds to voting rights participation in
all companies except Xfera Mviles S.A., where TeliaSonera
controls 80 percent of the votes by virtue of a shareholders
P11. Inventories
No deductions for inventory obsolescence were needed for the
years 2009 and 2008, respectively. The carrying value referred
to supplies and consumables and was SEK 3 million and SEK
6 million as of December 31, 2009 and 2008, respectively.
80
P12. Trade and Other Receivables
As of the end of the reporting period, ageing of Loans and receivables (including receivables from associated companies and
joint ventures) were as follows.
The carrying value of trade and other receivables was distributed

as follows.
Dec 31,
2009
329
Dec 31,
2008
123
1,072

Note P20)
Accounts receivable at amortized cost
Receivables from associated companies and
joint ventures at amortized cost
452
1,072
138
4
689
3
31
81
Subtotal (see Categories Note P20 and

Credit risk Note P21)
Receivables from subsidiaries
of which cash-pool balances and shortterm deposits
of which trade and other receivables
Other current receivables
Deferred expenses
625
1,845
33,600
27,565
31,827
27,105
6,035
352
135
34,712
28,063
6,649
4,722
213
153
34,038
27,282
6,756
SEK in millions
Interest rate swaps and cross currency
interest rate swaps designated as cash flow
hedges
Currency swaps and forward exchange
contracts held-for-trading
SEK in millions
Loans and receivables not due
Loans and receivables past due but not
impaired
of which 30180 days
Total loans and receivables
Dec 31,
2009
26
9
Dec 31,
2008
16
68
9
35
68
84
Receivables past due at the end of the reporting period were not
provided for as there had not been a significant change in credit
quality and the amounts were still considered recoverable. TeliaSonera AB does not hold any significant collateral over these
balances. Balances past due more than 180 days mainly referred to settlements with other operators regarding traffic passed
in transit through TeliaSoneras fixed network. See also Notes
to Consolidated Financial Statements (section Credit risk
management in Note C27) for information on mitigation of risks
related to accounts receivable.
Total bad debt expenses were SEK million in 2009 and SEK
34 million in 2008, while there was no recovered accounts
receivable in these years. The allowance for doubtful accounts
receivable changed as follows.
For Accounts receivable and Loans and receivables, the carrying values equal fair value as the impact of discounting is insignificant. For Accounts receivable and Loans and receivables
(including receivables from associated companies and joint
ventures), at the end of the reporting period, concentration of
credit risk by geographical area and by customer segment was
as follows.
SEK in millions
Opening balance
Divested operations
Reclassifications
Provisions for receivables impaired
Unused amounts reversed
Closing balance
Dec 31,
2009
200
175
194
226
Dec 31,
2008
209
34
43
445
200
Dec 31,
2009
Dec 31,
2008
Geographical area
Sweden
Other countries
172
1
173
766
7
773
P13. Short-term Investments, Cash and

Cash Equivalents
Customer segment
Other operators
Other customers
134
39
576
197
Short-term investments
173
773
SEK in millions
No short-term investments as of December 31, 2009 or 2008

had maturities over 3 months.

value hierarchy level and exposed to credit risk, refer to Note
P20 Financial Assets and Liabilities by Category and Level and
section Credit risk management in Note P21 Financial Risk
Management, respectively. Conventional commercial terms
apply for receivables from subsidiaries.
As of the end of the reporting period, allowance for doubtful
and ageing of Accounts receivable, respectively, were as
follows.
Dec 31,
2009
Dec 31,
2008
583
445
889
200
138
689
Accounts receivable not due

Accounts receivable past due but not
impaired
of which 30180 days
18
120
297
392
0
47
73
138
145
4
243
689
SEK in millions
Accounts receivable invoiced
Allowance for doubtful accounts receivable
Short-term investments with maturities up to and including 3

months are combined with Cash and bank to produce the item
Cash and cash equivalents, as follows.
SEK in millions
Short-term investments with maturities up to
and including 3 months
Cash and bank
Total (see Categories Note P20 and
Credit risk Note P21)
Dec 31,
2009
8,787
Dec 31,
2008
4,730
8,787
8,175
16,962
4,730
1,472
6,202
The carrying values are assumed to approximate fair values as

the risk of changes in value is insignificant. For more information
on financial instruments by category and exposed to credit risk,
refer to Note P20 Financial Assets and Liabilities by Category
and Level and section Credit risk management in Note P21
Financial Risk Management, respectively, and to Note P24
Contingencies, Other Contractual Obligations and Litigation for
information on blocked funds in bank accounts.
81
P14. Shareholders Equity
The fair value of plan assets changed as follows.
Share capital and treasury shares
SEK in millions,
except percentages
See Notes to Consolidated Financial Statements (corresponding sections in Note C20).
Revaluation reserve
The revaluation reserve changed as follows.
SEK in millions
Sale of assets to the subsidiary TeliaSonera
Skanova Access AB
Depreciation
Dec 31,
2009
3
Dec 31,
2008
1,941
1,927
2
1
11
3
Dec 31,
2008
Opening balance, plan assets

Actual return
Divested operations
Payment from pension fund
10,393
1,252
870
11,797
835
69
500
Closing balance, plan assets

Actual return on plan assets (%)
10,775
12.0
10,393
7.1
Provisions for pension obligations were recognized in the

balance sheet as follows.
SEK in millions
Surplus capital in pension fund
Provisions for pension obligations
P15. Provisions for Pensions and

Employment Contracts
Dec 31,
2009
10,482
10,775
826
533
Dec 31,
2008
10,602
10,393
342
551
Total pension income was (expenses were) distributed as

follows.
Pension obligations and pension expenses

The vast majority of employees in TeliaSonera AB are covered
by a defined benefit pension plan (the ITP-Tele plan) which
means that the individual is guaranteed a pension equal to a
certain percentage of his or her salary. The pension plan mainly
includes retirement pension, disability pension and family pension. As of January 1, 2007, a new defined contribution pension
plan (the ITP1 plan) was introduced. This pension plan is applicable to all employees born in 1979 or later.
The pension obligations are secured by Telia Pension Fund.
Certain commitments, chiefly the contractual right to retire at age
55, 60, or 63 for certain categories of personnel, are provided for
by a taxed reserve in the balance sheet.
Pension obligations are calculated annually, as of the end of
the reporting period, based on actuarial principles.
Dec 31,
2009
Dec 31,
2008
Opening balance, pension obligations

covered by plan assets
Opening balance, pension obligations not
10,051
10,281
551
538
Opening balance, total pension

obligations
Interest cost, paid-up policy indexation
Benefits paid
Divested operations
Other changes in valuation of pension
obligations
Closing balance, pension obligations
Closing balance, pension obligations not
10,602
10,819
101
600
778
2
91
122
447
816
69
47
50
9,949
52
10,051
533
551
Closing balance, total pension

obligations
of which FPG/PRI pensions
10,482
10,602
6,107
6,025
SEK in millions
Dec 31,
2009
SEK in millions
Interest cost, paid-up policy indexation
Less interest expenses recognized as
financial expenses
Actual return on plan assets
Other changes in valuation of pension
obligation
Pension expenses, defined benefit
pension plans
Pension premiums, defined benefit/defined
contribution pension plans and other pension
costs
Changes in estimates
Pension-related social charges and taxes
Less termination benefits (incl. premiums and
pension-related social charges) reported as
restructuring cost
Pension income ()/expenses (+)
Decrease ()/Increase (+) of surplus capital in
pension fund
Recognized pension income ()/expenses
(+)
of which pension premiums paid to the ITP
pension plan
JanDec
2009
JanDec
2008
101
600
21
122
447
31
1,252
93
835
22
50
615
52
1,403
102
81
66
4
69
73
582
484
1,484
1,105
98
379
35
28
Principal actuarial assumptions

The actuarial calculation of pension obligations and pension
expenses is based on principles set by FPG/PRI and the Swedish Financial Supervisory Authority, respectively.
The principal calculation assumption is the discount rate
which, as a weighted average for the different pension plans
and, as applicable, net of yield tax on pension plan assets, was
2.9 percent in 2009 and 3.0 percent in 2008. Obligations were
calculated based on the salary levels prevailing at December 31,
2009 and 2008, respectively.
82
Plan-asset allocation
At the end of the reporting period, plan assets were allocated as follows.
December 31, 2009
SEK in millions
Percent
5,495
51.0
5,280
49.0
Asset category
Fixed income instruments, liquidity
Shares and other investments
Total
of which shares in TeliaSonera AB
10,775
62
Future contributions and pension payments
December 31, 2008

SEK in millions
Percent
7,158
68.9
3,235
31.1
100.0
0.6
10,393
37
100.0
0.4
pension obligations, TeliaSonera AB has no intention to make

any contribution to the pension fund.
In 2010, pension payments from the defined benefit plans are
expected to be SEK 760 million.
As of December 31, 2009, the fair value of plan assets exceeded

the present value of pension obligations. Unless the fair value of
plan assets during 2010 should fall short of the present value of
P16. Other Provisions

Changes in other provisions were as follows.
December 31, 2009
Payroll taxes
on future
pension Restructuring
payments
provisions
SEK in millions
Opening balance
of which financial liabilities at amortized cost
Utilized provisions
Reclassifications
Closing balance
of which non-current portion
of which financial liabilities at amortized cost (see
Categories Note P20)
63
6
10
59
59
Warranty Damages and

provisions
court cases
98
269
130
66
171
58
113
For financial liabilities, the carrying value equals fair value as

provisions are discounted to present value. Refer to Not P20
12
12
2
1
9
9
Insurance
provisions
240
240
240
Total
464
12
275
145
1
66
527
165
362
9
51
48
48
Financial Assets and Liabilities by Category and Level for more

information on financial instruments classified by category.
As of December 31, 2009, contractual undiscounted cash flows for the financial liabilities represented the following expected maturities.
Expected maturity refers to the earliest point in time, based on the agreement terms, at which the counterpart might call for settlement.
Expected maturity
SEK in millions
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
20112014
Later years
Total
Carrying
value
Restructuring provisions mainly refer to staff redundancy costs

related to cost savings programs in the Swedish operations,
launched by management in 2005 and in 2008. The remaining
provision as of December 31, 2009 is expected to be fully utilized by 2012. Warranty provisions include provisions for potential litigation and other provisions related to disposals and winding-up of group entities and associated companies. Full utilization of payroll taxes on future pension payments, warranty provisions, damages and court cases, and insurance provisions is
expected in the period 20102024.
The provisions represent the present value of managements
best estimate of the amounts required to settle the liabilities. The
estimates may vary mostly as a result of changes in actual pension payments, changes in the actual number of months an employee is staying in redeployment before leaving, changes in tax
and other legislation and changes in the actual outcome of negotiations with lessors, sub-contractors and other external
counter-parts as well as the timing of such changes.
83
P17. Long-term and Short-term

Borrowings
Open-market financing programs
For information on TeliaSonera ABs open-market financing
programs, see Notes to Consolidated Financial Statements
(corresponding section in Note C21).
Borrowings
Long-term and short-term borrowings were distributed as follows.
Dec 31, 2009
Carrying value
SEK in millions
Fair value
Dec 31, 2008

Carrying value
Fair value
Open-market financing program borrowings in fair value hedge
relationships
Interest rate swaps at fair value
Cross currency interest rate swaps at fair value
Subtotal (see Fair value hierarchy levels Note P20)
Total long-term borrowings (see Categories Note P20)
18,745
18,745
16,623
16,623
416
328
88
172
172
19,333
40,140
2,376
61,849
416
328
88
172
172
19,333
42,964
2,391
64,688
375
288
87
20
20
17,018
33,211
2,400
52,629
375
288
87
20
20
17,018
35,100
2,400
54,518
Subtotal (see Categories Note P20)/Total fair value
7,024
7,024
7,092
7,092
7,323
1,419
8,742
7,333
1,420
8,753
Borrowings from subsidiaries
62,341
61,593
Total short-term borrowings
69,365
70,335
P19. Short-term Provisions, Trade

Payables and Other Current
Liabilities
As of December 31, 2009 and 2008, fully unutilized bank overdraft facilities had a total limit of SEK 1,077 million and SEK
1,067 million, respectively.
For additional information on financial instruments classified by
category/fair value hierarchy level, refer to Note P20 Financial
Assets and Liabilities by Category and Level, and for information on maturities and liquidity risks, refer to section Liquidity
risk management in Note P21 Financial Risk Management.
Refer to Notes to Consolidated Financial Statements (corresponding section in Note C21) for further information on borrowings and the swap portfolio. Conventional commercial terms
apply for borrowings from subsidiaries, which comprise cashpool balances and short-term deposits.
Short-term provisions, trade payables and other current liabilities

were distributed as follows.
SEK in millions
Currency swaps, forward exchange
contracts and currency options held-fortrading
Note P20)
Accounts payable at amortized cost
Current liabilities to associated companies
and joint ventures at amortized cost
Current liabilities at amortized cost
Subtotal (see Categories Note P20)
Liabilities to subsidiaries
Deferred income
Total short-term provisions, trade
payables and other current liabilities
P18. Long-term Liabilities

The carrying value of long-term liabilities was distributed as
follows.
SEK in millions
Liabilities to subsidiaries
Prepaid contracts for broadband build-out
Other liabilities
Total long-term liabilities
Dec 31,
2009
2
353
9
Dec 31,
2008
38
573
9
364
620
For the years 2009 and 2008, SEK 46 million and SEK 71 million, respectively, of the total long-term liabilities fell due more
than 5 years after the end of the reporting period.
84
Dec 31,
2009
175
Dec 31,
2008
338
175
338
860
1,223
31
227
1,262
553
730
109
2,654
762
2,354
680
244
487
3,765
P20. Financial Assets and Liabilities by

Category and Level
For Accounts payable and Current liabilities (including liabilities

to associated companies and joint ventures), the carrying value
equals fair value as the impact of discounting is insignificant. For
additional information on financial instruments classified by
category/fair value hierarchy level and on liquidity risks, refer to
Note P20 Financial Assets and Liabilities by Category and
Level and section Liquidity risk management in Note P21
Financial Risk Management. As of December 31, 2009, contractual cash flows for liabilities at amortized cost represented
the following expected maturities.
Expected maturity
SEK in millions
Liabilities at
amortized cost
JanMar AprJun
2010
2010
1,074
JulSep OctDec
2010
2010
3
Categories
Carrying values of classes of financial assets and liabilities were
distributed by category as follows. Financial assets and liabilities
relating to subsidiaries are not included. Excluded are also
investments in associated companies as discussed in Note P10
Other Financial Assets and pension obligations as discussed in
Note P15 Provisions for Pensions and Employment Contracts.
Total
1,087
SEK in millions
Financial assets
instruments
Financial assets at fair value through
profit and loss
Derivatives not designated as
hedging instruments
Held-for-trading investments
Available-for-sale financial assets
Total financial assets by category
Corresponding information for currency derivatives held-fortrading are presented in section Liquidity risk management to
Note P21 Financial Risk Management.
The main components of Current liabilities are accrued payables to suppliers and accrued interconnect and roaming
charges, while Other current liabilities mainly entail value-added
tax, advances from customers and accruals of payroll expenses
and social security contributions. Deferred income chiefly relate
to charges for network capacity. Conventional commercial terms
apply for trading with subsidiaries.
instruments
Derivatives not designated as hedging
instruments
Borrowings in fair value hedge
relationships
Financial liabilities measured at
amortized cost
Note
Dec 31,
2009
Dec 31,
2008
P10, P12
1,286
1,153
1,711
4,253
P10, P12
1,699
4,245
P10
P12, P13
P10
12
17,135
136
20,268
8
6,976
99
12,481
P17
328
308
P17, P19
435
425
P17
18,745
16,623
P16, P17,
P19
50,636
46,381
70,144
63,737
Total financial liabilities by category

The carrying values of classes of financial assets and liabilities were distributed by fair value hierarchy level as follows.
SEK in millions
Financial assets at fair value
Investments in other equity instruments
available-for-sale
Investments in other equity instruments heldfor-trading
instruments
Dec 31, 2008

of which
Note
Level 1
Level 2
P10
132
132
P10
12
P10
P10, P12
4
1,286
P10, P12
1,699
1,699
4,245
4,245
3,133
132
2,985
16
5,505
99
5,398
P17
P17
18,745
328
18,745
328
16,623
308
16,623
308
P17, P19
435
19,508
435
19,508
425
17,356
425
17,356
Total financial assets at fair value by level

Financial liabilities at fair value
instruments
Total financial liabilities at fair value by
level
Dec 31, 2009

of which
Fair
value
85
Level 3
Fair
value
Level 1
Level 2
Level 3
99
99
12
1,286
1,153
1,153
Level 3 financial assets changed as follows.
P21. Financial Risk Management
Dec 31, 2009

Dec 31, 2008
Investments
Investments
in other
in other
equity inequity in- Convertible
bonds
struments
struments
availableheld-forheld-fortrading Total
SEK in millions
trading
for-sale Total
8
8
7
7
Level 3,
opening
balance
4
4
1
1
Total
gains/losses
recognized
4
1
of which in net
4
1
income
4
1
of which
4
1
related to
assets held at
reporting
period-end
Purchases
8
4
12
Level 3,
12
4
16
8
8
closing
balance
Principles, capital management and management of

financial risks
For information relevant to TeliaSonera AB, see Notes to
Consolidated Financial Statements (Note C27).
Credit risk management

TeliaSoneras exposure to credit risk arises from default of
counterparts (including price risks as regards investments in
equity instruments), with a maximum exposure equal to the
carrying amount of these instruments (detailed in the respective
note and excluding receivables from subsidiaries), as follows.
SEK in millions
Other financial assets
Short-term investments, cash and
cash equivalents
Total
Note
P10
P12
P13
Dec 31,
2009
2,681
625
16,962
Dec 31,
2008
4,434
1,845
6,202
20,268
12,481
For information on credit risk management relevant to TeliaSonera AB, see Notes to Consolidated Financial Statements
(corresponding section in Note C27).
Gains or losses recognized in net income are included in line

item Financial income and expenses, see specification in Note
P5 Financial Income and Expenses.
Liquidity risk management

Liquidity risk is the risk that TeliaSonera AB will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. For
information on liquidity risk management relevant to TeliaSonera
AB, see Notes to Consolidated Financial Statements (corresponding section in Note C27).
As of December 31, 2009, contractual undiscounted cash flows for interest-bearing borrowings and non-interest-bearing currency derivatives (excluding intra-group derivatives) represented the following expected maturities, including installments and estimated interest
payments. The balances due within 12 months equal their carrying values as the impact of discounting is insignificant.
Expected maturity
SEK in millions
Open-market financing program
borrowings
Other borrowings
Cross currency interest rate swaps and
interest rate swaps
Payables
Receivables
Currency swaps and forward exchange
contracts
Payables
Receivables
Total, net
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
3,517
2,507
2,707
299
329
Later
years
513
2011
6,529
2012
8,369
2013
8,052
2014
10,805
34,945
Total
77,944
1,510
503
376
2,406
180
581
2,529
2,629
177
136
1,987
2,451
5,341
5,766
4,307
5,009
475
900
9,318
10,473
24,613
28,274
37,122
37,159
130
130
72
73
37,324
37,362
3,454
2,111
2,611
557
7,575
8,447
7,726
10,380
33,790
76,651
Future minimum leasing fees under operating lease agreements

in effect as of December 31, 2009 that could not be canceled in
advance and were in excess of one year were as follows.
Expected maturities for and additional information on non-interest-bearing liabilities, guarantees and other contractual obligations are presented in Notes P16 Other Provisions, P19 Shortterm Provisions, Trade Payables and Other Current Liabilities
and P24 Contingencies, Other Contractual Obligations and
Litigation, respectively.
Expected maturity
SEK in millions
Future minimum
leasing fees
P22. Operating Lease Agreements
2010
450
2011
428
2012
246
2013
192
Later
2014 years Total
111
95 1,522
In 2009 and 2008, total rent and leasing fees paid were SEK
502 million and SEK 455 million, respectively.
TeliaSonera AB leases primarily premises and land. Most of the

leases are from outside parties. The leases are on commercial
terms with respect to prices and duration. There was no subletting.
86
Other transactions
P23. Related Party Transactions
For descriptions of certain other transactions with related parties,

see Notes to Consolidated Financial Statements (Note C29).
General
Conventional commercial terms apply for the supply of goods
and services to and from subsidiaries, associated companies
and joint ventures.
P24. Contingencies, Other Contractual

Obligations and Litigation
Subsidiaries
In 2009 and 2008, sales to subsidiaries totaled SEK 12,058
million and SEK 12,644 million, respectively, while purchases
from subsidiaries totaled SEK 7,222 million and SEK 7,383
Contingent assets, financial guarantees and

collateral pledged
At the end of the reporting period, TeliaSonera AB had no contingent assets or collateral pledged, while financial guarantees
reported as contingent liabilities were distributed as follows.
Pension fund
As of December 31, 2009, Telia Pension Fund held 1,826,173
TeliaSonera shares, or 0.04 percent of the voting rights. TeliaSonera ABs share of the funds assets is 66 percent. For information on transactions and balances, see Note P15 Provisions
for Pensions and Employment Contracts.
SEK in millions
Credit guarantee on behalf of Svenska
UMTS-nt AB
Subtotal (see Liquidity risk Note P21)
Guarantees on behalf of subsidiaries
Guarantees for pension obligations
Total financial guarantees
Commitments on behalf of related parties

TeliaSonera AB has made certain commitments on behalf of
group companies, associated companies and joint ventures. See
Note P24 Contingencies, Other Contractual Obligations and
Litigation for further details.
Dec 31,
2009
2,025
Dec 31,
2008
2,275
2,025
2,872
133
5,030
2,275
3,336
132
5,743
As of December 31, 2009, credit and performance guarantees represented the following expected maturities.
Expected maturity
SEK in millions
Credit and performance
guarantees
JanMar
2010
AprJun
2010
250
JulSep
2010
OctDec
2010
250
2012
2014
2011
1,525
Later
years
Total
2,025
behalf of Xferas performance requirements in relation to its

UMTS license and a counter guarantee of EUR 43 million as
TeliaSoneras share to cover payment to a former Xfera shareholder, should the outcome of a legal dispute concerning Xferas
spectrum fee for 2001 be favorable. Guarantees on behalf of
subsidiaries also include SEK 508 million related to Swedish
pension obligations and SEK 198 million related to the Danish
3G license.
In addition to financial guarantees indicated above, guarantees
for fulfillment of contractual undertakings are granted by TeliaSonera AB on behalf of subsidiaries, as part of the Groups normal course of business. At the end of the reporting period, there
was no indication that payment will be required in connection
with any such contractual guarantee.
Some loan covenants agreed limit the scope for divesting or

pledging certain assets. For information on change-of-control
provisions in some of TeliaSonera ABs more recent financing
arrangements, see Notes to Consolidated Financial Statements (corresponding section in Note C30).
For all financial guarantees issued, stated amounts equal the
maximum potential future payments that TeliaSonera AB could
be required to make under the respective guarantee. For information on the guarantee on behalf of Svenska UMTS-nt, see
Notes to Consolidated Financial Statements (corresponding
section in Note C30).
Guarantees on behalf of subsidiaries include SEK 1,446 million (EUR 140 million) related to Xfera Mviles S.A., of which a
counter guarantee of EUR 89 million as TeliaSoneras share on
Other unrecognized contractual obligations

As of December 31, 2009, unrecognized contractual obligations regarding future acquisitions (or equivalent) of non-current assets
Expected maturity
SEK in millions
Total (see Liquidity risk Note P21)
JanMar
2010
AprJun
2010
JulSep
2010
OctDec
2010
2011
2012
2013
2014
Later
years
Total
13
13
0
0
0
0
4
4
8
8
14
14
39
39
Reported obligations refer to licenses for and adaption of business support systems.
Legal and administrative proceedings

For additional information relevant to TeliaSonera AB, see
Notes to Consolidated Financial Statements (corresponding
section in Note C30).
87
P25. Cash Flow Information
Total personnel expenses were distributed by nature as follows.
Non-cash transactions
SEK in millions
Social security expenses
Employers social security contributions
Pension expenses
In 2009 and 2008, claims on subsidiaries totaling SEK 67 million

and SEK 25 million, respectively, were converted to equity in the
companies.
In 2008, a capital contribution of SEK 34,000 million was provided in kind in exchange for new shares issued by the subsidiary TeliaSonera Skanova Access AB (see also Note P9 Property, Plant and Equipment, section Plant and machinery for
information on this non-cash asset transfer).
Total social security expenses

Other personnel expenses
Total personnel expenses recognized by
nature
The number of employees decreased to 1,937 at December 31,

2009 (2,160 at year-end 2008), mainly due to efficiency measures executed during the year. The average number of full-time
employees was as follows.
Country
Country
Sweden
JanDec 2008
Total
of whom
(number)
men (%)
Sweden
1,843
66.6
2,117
68.4
Total
1,843
66.6
2,117
68.4
Total
Percent
Women
Men
Total
Dec 31, 2008
Board of
Directors
Other
Corporate
Officers
Board of
Directors
Other
Corporate
Officers
27.3
72.7
100.0
20.0
80.0
100.0
40.0
60.0
100.0
25.0
75.0
100.0
1,215
359
98
398
379
261
49
1,453
777
72
2,064
JanDec
2009
1.7
0.7
JanDec
2008
2.1
1.0
1.4
2.3
2.3
1.6
3.2
1.9
1.4
2.0
2.0
2.3
JanDec 2009
JanDec 2008
Corporate
Corporate
Officers
Officers
(of which
Other
(of which
Other
variable pay) employees variable pay) employees
56 (13)
1,087
41 (9)
1,174
56 (13)
SEK in millions
Pension expenses
Outstanding pension commitments
1,087
41 (9)
1,174
JanuaryDecember or
December 31,
2009
2008
20
15
171
168
For additional information, see section Remuneration to corporate officers in Notes to Consolidated Financial Statements
(Note C32).
Absence due to illness, as a percentage of ordinary work-hours

excluding leave time and vacation, was distributed as follows.
Percent
Total absence due to illness
Absence due to illness for a period of
60 consecutive days or longer
Total absence due to illness, men
Total absence due to illness, women
Total absence due to illness, employees
29 years of age and younger
3049 years of age
50 years of age and older
1,143
Corporate Officers include members of the Board of Directors

and, as applicable, former Board members (but exclude employee representatives); the President and the Executive Vice
President and, as applicable, former holders of these positions;
and the 8 other members (2008: 6 members) of Group Management employed by the parent company.
Pension expenses and outstanding pension commitments for
Corporate Officers were as follows. There are no pension benefit
arrangements for external members of the Board of Directors.
The share of female and male Corporate Officers was as follows. Corporate Officers include all members of the Board of
Directors, the President, the Executive Vice President and the
8 other members (2008: 6 members) of Group Management
employed by the parent company.
Dec 31, 2009
JanDec
2008
Salaries and other remuneration were divided between Corporate Officers and other employees as follows.
P26. Human Resources
JanDec 2009
Total
of whom
(number)
men (%)
JanDec
2009
P27. Auditors Fees and Services

Remuneration paid was as follows. See also additional information in Notes to Consolidated Financial Statements (Note C33).
SEK in millions
PricewaterhouseCoopers AB (PwC)
Audits
Audit-related services
Tax services, all other services
Total PwC
Ernst & Young AB (E&Y)
Total E&Y
KPMG Bohlins AB (KPMG)
Total KPMG
Other audit firms
Total other audit firms
Total
JanDec
2009
JanDec
2008
8
1
0
9
9
0
0
9
2
14
3
21
In 2009 and 2008, no audit firm fees were capitalized as transaction costs in business combinations and similar transactions.
88
Proposed Appropriation of Earnings
At the disposal of the Annual General Meeting:
The Board proposes that this sum be appropriated as follows:

SEK
Retained earnings
50,791,246,266
Net income
Total
12,263,648,341
63,054,894,607
SEK
SEK 2.25 per share ordinary dividend to the
shareholders
To be carried forward to 2010
Total
10,103,528,729
52,951,365,878
63,054,894,607
The Report of the Directors for the Group and the Parent Company provides a fair review of the development of the Group's
and the Parent Company's operations, financial position and
results of operations and describes material risks and uncertainties facing the Parent Company and the companies included in
the Group.
The Board of Directors and the President and CEO certify that
the consolidated financial statements have been prepared in
accordance with IFRSs as adopted by the EU and give a true
and fair view of the Group's financial position and results of operations. The financial statements of the Parent Company have
been prepared in accordance with generally accepted accounting principles in Sweden and give a true and fair view of the
Parent Companys financial position and results of operations.
Tom von Weymarn

Chairman
Agneta Ahlstrm
Magnus Brattstrm
Stefan Carlsson
Maija-Liisa Friman
Conny Karlsson
Lars G Nordstrm
Timo Peltola
Lars Renstrm
Jon Risfelt
Caroline Sundewall
Lars Nyberg
President and CEO
Our auditors report was rendered March 10, 2010

PricewaterhouseCoopers AB
Hkan Malmstrm
Authorized Public Accountant
Gran Tidstrm
Auditor in charge
89
Auditors Report
To the Annual Meeting of the shareholders of TeliaSonera AB (publ)
Corporate Reg. No. 5561034249
We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the Board of
Directors and the managing director of TeliaSonera AB (publ) for the year 2009. The companys annual accounts and consolidated
accounts are included in the printed version on pages 789. The Board of Directors and the managing director are responsible for these
accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual
accounts and the application of international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act
when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated
accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan
and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit
also includes assessing the accounting principles used and their application by the Board of Directors and the managing director and
significant estimates made by the Board of Directors and the managing director when preparing the annual accounts and consolidated
accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis
for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company
in order to be able to determine the liability, if any, to the company of any board member or the managing director. We also examined
whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual
Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.
The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the companys
financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated
accounts have been prepared in accordance with international financial reporting standards IFRSs as adopted by the EU and the
Annual Accounts Act and give a true and fair view of the groups financial position and results of operations. The statutory report of the
directors is consistent with the other parts of the annual accounts and the consolidated accounts.
We recommend to the annual meeting of shareholders that the income statement and balance sheet of the parent company as well as
the statement of comprehensive income and the statement of financial position of the group be adopted, that the profit of the parent
company be dealt with in accordance with the proposal in the report of the directors and that the members of the Board of Directors and
the managing director be discharged from liability for the financial year.
PricewaterhouseCoopers AB
Hkan Malmstrm
Gran Tidstrm
Auditor in charge
90
Ten-Year Summary Financial Data

TeliaSonera Group
Financial Data (IFRS)
Income (SEK in millions)
Net sales
Operating income
Net income
EBITDA
Financial position (SEK in millions)
Goodwill and other intangible assets
Financial assets
Current assets and non-current assets held-for-sale
Total assets
Total equity
Provisions
Interest-bearing liabilities
Non-interest-bearing liabilities
Capital employed
Operating capital
Net debt
Net interest-bearing liability
Cash flows (SEK in millions)
Cash flow for the year
Free cash flow
Investments (SEK in millions)
CAPEX
Acquisitions and other investments
Total investments
Business ratios
EBITDA margin (%)
Operating margin (%)
Return on sales (%)
as a percentage of net sales
CAPEX-to-sales ratio (%)
Total asset turnover (multiple)
Turnover of capital employed (multiple)
Return on assets (%)
Return on capital employed (%)
Return on equity (%)
Equity/assets ratio (%)
Net debt/equity ratio (%)
Interest coverage ratio (multiple)
Self-financing rate (multiple)
Share data
Number of outstanding shares (millions)
at the end of the period
average, basic
average, diluted
Basic and diluted earnings/loss per share (SEK)
Cash dividend per share (SEK),
Total cash dividend (SEK in millions),
Pay-out ratio (%)
Equity per share (SEK)
2009
2008
2007
2006
2005
2004
109,161 103,585
30,324 28,648
27,614 26,411
21,280 21,442
18,854 19,011
36,666 32,954
35,241 31,658
12,932 12,106
96,344
26,155
25,251
20,298
17,674
31,021
30,333
11,875
91,060
25,489
25,226
19,283
16,987
32,266
31,113
11,203
87,661
17,549
17,019
13,694
11,697
29,411
27,508
13,188
81,937
18,793
17,448
14,264
12,964
30,196
30,841
15,596
83,909
52,602
48,633
31,558
216,702
127,057
117,274
16,748
43,579
29,318
216,702
153,090
140,925
34,155
31,830
74,172
48,195
41,826
35,199
199,392
127,717
119,217
15,471
27,729
28,475
199,392
127,195
110,163
14,892
10,736
74,367
48,201
40,526
40,681
203,775
135,694
127,049
15,564
26,735
25,782
203,775
146,712
125,299
7,879
5,320
69,534
47,212
35,353
39,873
191,972
128,067
121,133
13,402
24,675
25,828
191,972
147,132
126,198
6,580
3,741
100,239
61,222
60,849
47,360
269,670
142,499
135,372
25,625
71,833
29,713
269,670
204,908
175,063
46,175
42,668
100,968
61,946
62,265
39,107
264,286
141,448
130,387
24,594
65,799
32,445
264,286
199,186
178,017
48,614
44,652
2003
2002
2001
2000
82,425 59,483
14,710 10,895
13,899 11,616
10,049 7,997
9,080 8,067
30,700 15,692
32,035
9,421
17,707 20,844
57,196
5,460
4,808
1,891
1,869
12,915
13,299
13,975
54,064
12,006
11,717
10,270
10,278
13,087
21,425
8,222
61,820
49,161
42,061
37,018
190,060
115,834
112,393
15,297
30,554
28,375
190,060
142,235
120,006
17,648
8,847
68,106 26,816 25,198

56,172 47,314 43,807
48,534 20,784 22,335
33,844 33,277 31,375
206,656 128,191 122,715
113,949 60,089 56,308
108,829 59,885 55,988
18,406 13,107 11,351
44,732 29,124 34,042
29,569 25,871 21,014
206,656 128,191 122,715
157,035 90,971 92,374
137,113 70,150 75,042
38,075 20,004 32,512
25,034 10,661 20,235
30,991 27,086 26,529 27,501 26,990 24,403 26,443 12,449

17,627 19,634 15,705 13,084 12,236 7,991 3,443 5,553
6,896
13,364
7,452 10,824 14,417 14,754 16,412 23,000
2,568 4,359 14,726 19,382 15,653 11,102 16,412 10,344
10,796
3,093 3,902 4,965
899
5,310
6,588 3,448
17,024 11,328 13,004 16,596 15,594 14,118 17,351
3,877
10,416 10,152
3,632 37,121
14,048 26,969
6,608 26,818
7,440
151
6,506 5,845
14,007
2,842
16,849
15,795
9,060
24,855
13,531
7,171
20,702
11,101
3,951
15,052
11,583
2,732
14,315
10,331
9,099
19,430
9,267
2,851
12,118
14,345
40,093
54,438
17,713
3,022
20,735
16,580
31,162
47,742
33.6
27.8
19.5
11.8
31.8
27.7
20.7
11.7
32.2
27.1
21.1
12.3
35.4
28.0
21.2
12.3
33.6
20.0
15.6
15.0
36.9
22.9
17.4
19.0
37.2
17.8
12.2
21.5
26.4
18.3
13.4
35.0
22.6
9.5
3.3
24.4
24.2
22.2
19.0
15.2
12.8
0.41
0.54
11.8
15.5
15.2
49.1
34.9
8.3
1.85
15.2
0.43
0.59
12.7
17.3
17.2
50.5
36.5
7.6
1.09
14.0
0.46
0.69
13.1
19.4
18.6
50.3
31.3
14.2
1.28
12.2
0.45
0.67
13.2
19.5
17.2
49.9
15.0
18.1
1.83
13.2
0.44
0.60
9.4
12.6
10.3
58.9
6.6
11.7
1.89
12.6
0.43
0.57
10.5
13.9
11.6
63.8
5.4
7.6
1.26
11.2
0.42
0.55
8.7
11.6
8.5
58.5
15.9
5.1
2.18
24.1
0.36
0.48
5.7
7.7
9.7
54.2
34.0
4.7
0.23
31.0
0.46
0.62
5.7
7.8
3.3
46.4
33.6
3.0
0.50
30.7
0.54
0.75
13.6
18.9
23.9
44.7
59.3
7.3
0.21
4,490.5
4,490.5
4,490.5
4.20
2.25
10,104
53.6
30.15
4,490.5
4,490.5
4,490.5
4.23
1.80
8,083
42.5
29.04
4,490.5
4,490.5
4,490.5
3.94
4.00
17,962
101.6
26.12
4,490.5
4,490.5
4,490.5
3.78
6.30
28,290
166.5
26.55
4,490.5
4,574.0
4,574,0
2.56
3.50
15,717
136.9
28.29
4,675.2
4,675.2
4,675.2
2.77
1.20
5,610
43.3
25.91
4,675.2
4,667.6
4,668.4
1.95
1.00
4,675
51.4
24.04
4,605.8
3,124.3
3,125.3
2.58
0.40
1,870
n/a
23.63
3.001.2
3,001.2
3,001.2
0.62
0.20
600
32.1
19.95
3.001.2
2,932.8
2,932.8
3.50
0.50
1,501
14.3
18.66
Adjusted for a 324-to-1 share split in 2000.

For 2009 as proposed by the Board of Directors.
For 2007, 2006 and 2005 including extra dividends of SEK 2.20 per share (totaling SEK 9,879 million), SEK 4.50 per share (totaling SEK 20,207 million) and SEK 2.25 per share
(totaling SEK 10,104 million), respectively.
91
Ten-Year Summary Operational Data

TeliaSonera Group
Operational Data
Mobility Services
Total subscriptions (thousands)
of which Sweden
Mobile telephony, total subscriptions (thousands)
Mobile telephony, total GSM/UMTS (thousands)
Mobile telephony, total NMT (thousands)
Mobile telephony, outgoing traffic (millions of minutes)
Mobile telephony, incoming traffic (millions of minutes)
Mobile telephony, MoU (minutes)
Mobile telephony, blended churn (%)
Mobile telephony, ARPU (SEK)
of which Finland
Mobile telephony, outgoing traffic (millions of minutes)
Mobile telephony, incoming traffic (millions of minutes)
Mobile telephony, blended churn (%)
Mobile telephony, ARPU (EUR)
of which Norway
Mobile telephony, ARPU (NOK)
of which Denmark
of which Baltic countries
Mobile telephony, subscriptions, Lithuania (thousands)
Mobile telephony, subscriptions, Latvia (thousands)
Mobile telephony, subscriptions, Estonia (thousands)
of which Spain
Mobile telephony, subscriptions (thousands)
Broadband Services
Broadband, total subscriptions (thousands)
Fixed telephony, total subscriptions (thousands)
of which Sweden
Broadband, subscriptions (thousands)
of which Finland
of which Norway
of which Denmark
Fixed telephony, prefix and contract customers (thousands)
of which Baltic countries
Broadband, subscriptions, Lithuania (thousands)
Fixed telephony, subscriptions, Lithuania (thousands)
Broadband, subscriptions, Estonia (thousands)
Fixed telephony, subscriptions, Estonia (thousands)
Eurasia
Mobile telephony, subscriptions, Kazakhstan (thousands)
Mobile telephony, subscriptions, Azerbaijan (thousands)
Mobile telephony, subscriptions, Uzbekistan (thousands)
Mobile telephony, subscriptions, Tajikistan (thousands)
Mobile telephony, subscriptions, Georgia (thousands)
Mobile telephony, subscriptions, Moldova (thousands)
Mobile telephony, subscriptions, Nepal (thousands)
Mobile telephony, subscriptions, Cambodia (thousands)
Human Resources
Number of employees as of December 31
Average number of full-time employees during the year
of whom, in Sweden
of whom, in Finland
of whom, in other countries
of whom, women
of whom, men
Salaries and remuneration (SEK in millions)
Employers social security contributions (SEK in millions)
Salaries and employers social security contributions as a
percentage of operating costs
Net sales per employee (SEK in thousands)
Operating income per employee (SEK in thousands)
Change in labor productivity (%)
Net income per employee (SEK in thousands)
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
16,963 15,900 14,501 13,434 13,000 11,545
9,519
9,202
4,936
4,519
5,666
5,666
8,493
3,983
189
13
182
5,334
5,334
7,849
3,815
191
14
189
4,807
4,807
6,635
3,474
178
15
194
4,603
4,489
114
5,335
3,058
157
17
204
4,387
4,267
120
4,456
2,750
139
15
213
4,243
4,117
126
3,814
2,573
131
11
227
3,838
3,706
132
3,313
2,400
128
13
252
3,604
3,467
137
3,201
2,272
131
n/a
262
3,439
3,295
144
3,016
2,067
127
n/a
285
3,257
3,076
181
2,591
1,766
123
n/a
308
2,874
5,604
2,831
255
22
24
2,676
5,618
2,911
276
17
26
2,449
5,473
2,656
284
16
29
2,407
5,936
2,554
285
19
29
2,507
5,642
2,405
277
24
30
2,297
4,820
2,147
253
28
38
2,428
4,743
2,090
232
17
38
2,790
n/a
n/a
n/a
n/a
n/a
239
n/a
n/a
n/a
n/a
n/a
149
n/a
n/a
n/a
n/a
n/a
1,658
250
298
1,581
247
330
1,577
236
348
1,641
218
352
1,651
192
333
1,308
175
339
1,195
164
342
1,089
156
330
970
133
310
850
130
308
1,460
1,493
1,449
1,123
1,154
1,115
472
421
288
263
1,991
1,042
766
2,012
1,056
778
2,012
1,015
765
2,074
803
759
1,889
735
677
1,338
649
595
1,052
534
851
447
1,506
970
427
24
2,348
5,212
2,284
5,806
2,164
6,218
1,828
6,497
1,278
7,064
897
8,312
571
8,087
411
8,296
194
6,585
27
6,621
1,125
3,604
1,122
4,000
1,061
4,295
915
4,586
711
5,036
526
6,115
394
6,283
317
6,415
194
6,585
27
6,621
458
324
478
420
473
497
412
580
350
647
243
740
150
804
82
722
223
176
177
172
47
205
34
226
31
251
7
165
5
195
1
212
2
172
1
223
n/a
n/a
313
722
182
357
298
769
176
391
259
789
163
386
181
785
141
381
105
798
107
388
50
819
77
426
25
828
11
936
22,558 18,416 12,147

7,165 7,083 6,017
3,847 3,471 3,029
5,074 2,683
690
1,523 1,154
611
1,892 1,582 1,296
660
550
504
2,202 1,749
195
144
7,352
3,539
2,333
1,032
448
6,146
3,320
1,741
715
370
3,866
1,795
1,291
481
299
2,385
990
912
307
176
1,614
615
669
198
132
29,734
28,815
9,170
4,981
14,664
13,111
15,704
11,152
1,995
15.3
32,171
30,037
10,152
5,258
14,627
13,251
16,786
11,011
2,134
15.8
31,292
28,561
10,002
5,697
12,862
12,571
15,990
9,632
1,971
14.8
28,528
26,969
10,427
5,936
10,606
12,164
14,805
8,918
1,903
15.2
28,175
27,403
11,061
6,369
9,973
11,934
15,469
9,023
1,970
15.5
29,082
25,381
10,948
6,750
7,683
11,427
13,954
8,674
1,902
16.4
3,788
1,052
10.7
738
3,449
954
7.8
714
3,373
916
7.1
711
3,376
945
11.2
715
3,199
640
8.3
500
3,228
740
10.8
511
92
26,694 29,173 17,149 29,868

26,188 17,277 24,979 30,307
11,321 12,593 20,922 25,383
6,408 1,142
775
999
8,459 3,542 3,282 3,925
10,936 7,546 9,196 11,521
15,252 9,731 15,783 18,786
8,460 6,732 8,852 9,543
1,950 1,804 2,614 3,055
14.9
14.9
19.4
25.5
3,147
562
4.9
347
3,443
631
53.5
467
2,290
219
31.9
75
1,784
396
8.3
339
Definitions
CAPEX
Concepts
An abbreviation of Capital Expenditure. Investments in intangible and tangible non-current assets but excluding goodwill, fairvalue adjustments and asset retirement obligations.

Comprises personnel costs, marketing costs and all other operating expenses other than purchases of goods and sub-contractor services as well as interconnect, roaming and other network-related costs.
Acquisitions and other investments

Investments in goodwill and fair-value adjustments, shares and
participations, and asset retirement obligations.
EBITDA
EBITDA margin
An abbreviation of Earnings Before Interest, Tax, Depreciation

and Amortization. Equals operating income before amortization,
depreciation and impairment losses, and before income from
associated companies.
EBITDA excluding non-recurring items expressed as a percentage of net sales.
Operating margin (EBIT margin)

Operating income expressed as a percentage of net sales.
Non-recurring items
Non-recurring items include capital gains and losses, costs for
phasing out operations, personnel redundancy costs, and noncapitalized expenses in conjunction with the merger with Sonera
in 2002. Effective January 1, 2003, only capital gains/losses,
impairment losses, restructuring programs or similar that represent more than SEK 100 million on an individual basis, are reported as non-recurring. Previous periods have not been restated.
Return on sales
Net income expressed as a percentage of net sales.
Total asset turnover

Net sales divided by average total assets.
Turnover of capital employed

Net sales divided by the average capital employed.
Adjusted equity
Reported equity attributable to owners of the parent less the
(proposed) dividend. For the parent company also including
untaxed reserves net of tax.
Return on assets
Capital employed
Return on capital employed
Operating income plus financial revenues expressed as a percentage of average total assets.
Total assets less non-interest-bearing liabilities and non-interestbearing provisions, and the (proposed) dividend.
Operating income plus financial revenues expressed as a percentage of average capital employed.
Operating capital
Return on equity
Non-interest-bearing assets less non-interest-bearing liabilities,

including the (proposed) dividend, and non-interest-bearing provisions.
Net income attributable to owners of the parent expressed as a

percentage of average adjusted equity.
Segment assets and liabilities (Segment operating

capital)
Adjusted equity and minority interests expressed as a percentage of total assets.
As Operating capital, but assets and liabilities exclude deferred

and current tax items, respectively, and liabilities exclude the
(proposed) dividend.
Net debt/equity ratio
Equity/assets ratio
Net debt expressed as a percentage of adjusted equity and minority interests.
Net interest-bearing liability

Interest-bearing liabilities and provisions less interest-bearing
assets but including investments in associated companies and
joint ventures.
Interest coverage ratio
Net debt
Self-financing rate
Operating income plus financial revenues divided by financial

expenses.
Cash flow from operating activities divided by gross investments.
Interest-bearing liabilities less derivatives recognized as financial

assets and hedging long-term and short-term borrowings, and
less short-term investments and cash and bank.
Free cash flow

Cash flow from operating activities less cash CAPEX.
93
Earnings and equity per share
Blended churn
Earnings per share are based on the weighted average number

of shares before and after dilution with potential ordinary shares,
while equity per share is based on the number of shares at the
end of the period. Earnings equal net income attributable to
owners of the parent and equity is equity attributable to owners
of the parent.
The number of lost subscriptions (postpaid and prepaid) expressed as a percentage of the average number of subscriptions
(postpaid and prepaid).
Pay-out ratio
Labor productivity
Dividend per share divided by basic earnings per share.
Year-on-year percentage change in the ratio: net sales at fixed

prices to average number of full-time employees.
ARPU
Average monthly revenue per user.
MoU
Minutes of usage per subscription and month.
Notation conventions
In conformity with international standards, this report applies the following currency notations:
SEK
Swedish krona
GEL
Georgian lari
NPR
Nepalese rupee
AZN
Azerbaijan manat
JPY
Japanese yen
RUB
Russian ruble
DKK
Danish krone
KZT
Kazakhstan tenge
TJS
Tajikistan somoni
EEK
Estonian kroon
LTL
Lithuanian litas
TRY
Turkish lira
EUR
European euro
LVL
Latvian lats
USD
U.S. dollar
GBP
Pound sterling
NOK
Norwegian krone
UZS
Uzbekistan som
94
Introduction
Andersson, representing Fjrde AP-fonden, were appointed to

approve the minutes. None of them were members of the Board
or employees of the company.
The AGM 2009 decided upon, i.a., the composition of the
board, distribution of profits, remuneration policy for the executive management and authorization for the board to decide upon
acquisitions of the companys shares within certain limits.
The AGM was held in Swedish and simultaneously interpreted
into Finnish and English due to the companys international
ownership. Material for the meeting was available in Swedish,
Finnish and English.
TeliaSonera also provided shareholders who could not attend
the AGM with the possibility to follow the meeting via the
internet. The shareholders attending the AGM were given the
opportunity to ask questions, comment and make proposals for
decisions.
The minutes from the meeting are available on the companys
website in Swedish, Finnish and English.
This Corporate Governance report has been adopted by the

Board of Directors at its meeting on 9 March 2010 and presents
an overview of TeliaSoneras corporate governance model and
includes the boards description of internal controls and risk
management regarding financial reporting.
It is the opinion of the Board of Directors that TeliaSonera has
followed the Swedish Code of Corporate Governance during
2009 without any deviations.
This report does not form part of the official annual report and
has not been audited.
Governing bodies
The main governing bodies of TeliaSonera are:
The Shareholders General Meeting
The Board of Directors
The CEO, assisted by Group Management
External auditors
At the AGM 2008 PricewaterhouseCoopers AB was re-elected
as auditor until the end of the AGM 2011. Gran Tidstrm
(born 1946) is the auditor in charge.
PricewaterhouseCoopers AB is engaged by the companys
largest shareholder, the Swedish State, for both audit and
advisory services. Current audit assignments include Svenska
Spel and Samhall.
Gran Tidstrm is also an auditor of Meda, Trelleborg and
Volvo. He is deputy president of the International Federation of
Accountants, IFAC.
Nomination Committee
After the AGM 2009, TeliaSoneras Nomination Committee
consists of representatives of the companys four largest
shareholders at the time of the notice of the AGM and the
Chairman of the Board. The AGM decided that the Nomination
Committee should consist of Viktoria Aastrup, (the Swedish
State), Kari Jrvinen (the Finnish State through Solidium Oy),
KG Lindvall (Swedbank Robur Funds), Lennart Ribohn (SEB
Funds) and the Chairman of the Board Tom von Weymarn.
Shareholders
Shareholders General Meeting
TeliaSonera is a Swedish, public, limited liability company and is
governed by the Swedish Companies Act and the companys
Articles of Association. The Shareholders General Meeting is
the companys highest decision-making forum where the owners
exercise their shareholder power.
The TeliaSonera share is listed on NASDAQ OMX Stockholm
and NASDAQ OMX Helsinki. TeliaSonera has only one type of
shares. Each TeliaSonera share represents one vote at the
General Meeting of Shareholders. TeliaSonera had
635,799 shareholders at year-end 2009.
The AGM 2009 was held on April 1, 2009, in Stockholm. A
shareholders information meeting was held in Helsinki two days
earlier which was attended by parts of the companys management and Board.
The entire Board of Directors, members of the Group
Management and the auditor attended the AGM 2009. After
nomination by the Nomination Committee, attorney Axel
Calissendorff was elected chairman of the AGM 2009. Mikael
Wiberg, representing Alecta Pensionsfrskring, and Mats
The Nomination Committee shall in accordance with its

instruction:
Nominate the Chairman and other members of the Board
Propose the Board remuneration that is divided among the

Chairman and other members and remuneration for serving
on committees
Nominate the Chairman of the AGM
Nominate the external auditors

The Nomination Committee has received information from the
chairman of the board and the CEO of TeliaSoneras position
and strategic direction. Based on that information, the committee
has assessed the competences needed in the Board of Directors
as a whole as well as evaluated the competences of the present
board members. Taking into account the competences needed
in the future, the competences of present board members and
95
the environment of internal control over financial reporting as

well as over business operations. The Audit Committee further
reviews the independence of the companys auditors including
provision of non-audit services. The Audit Committee and in
some cases its chairman has the right to make decisions
regarding the purchase of services from the companys auditors
within the framework decided by the Board.
Maija-Liisa Friman is chairman of the Audit Committee and
during 2009 the Committee held six meetings. During 2009, the
Committee clarified the roles and responsibilities within the
internal control environment, further developed its work in large
operational risk areas such as the Eurasian operations,
sourcing, large projects, acquisitions and improvement of
financial processes.
the present board members availability for re-election, the

committee nominates board members to the General Meeting.
The Nomination Committee has reported to the company that
the Committee is following the guidelines in the Swedish Code of
Corporate Governance and that it intends to report its activities
at the AGM and on the companys website. Shareholders are
welcome to send nomination proposals to the Nomination
Committee. Proposals can be sent by email to
[email protected].
The Nomination Committees proposals shall in accordance
with the instruction be made public at the latest in connection
with the notice of the AGM.
Board of Directors
Work of the Board of Directors during 2009

The Board of Directors held eight ordinary meetings during 2009
as well as three extra meetings. In addition to following up on the
day-to-day business of the group, the Board of Directors paid
special attention to:
Value-creating strategic options
Target definition for the operations
Remuneration structure for the executive management and

key employees
Continuous evaluation of the performance of the CEO
Investments in Eurasia, including Russia and Turkey
Funding and debt structure
Human Resources issues, including performance

management and succession planning
Corporate governance, in particular the group strategy

process and internal control over business operations and
financial reporting
Revision of the groups Code of ethics and conduct
Follow-up on decided focus areas
Responsibilities and committees

The Board of Directors is responsible for the governance, choice
of strategic direction as well as substance of external
communication of the group. In that role the board makes
decisions on i.a.:
The strategic direction and key strategic initiatives of the

group
Appointment and dismissal of the CEO
The overall organization of the group
The delegation of authority within the group
The internal control environment and risk management

model of the group
Guidelines and instructions for the CEO
The core content of the groups external communication

As of the AGM 2009, TeliaSoneras Board of Directors consists
of eight members elected by the AGM, serving one-year terms,
and three employee representatives from the Swedish
operations. An additional Finnish employee representative is
present at Board meetings, but without voting rights. The AGM
2009 re-elected Tom von Weymarn to serve as Chairman of the
Board. A more detailed presentation of the members of the
Board of Directors can be found on page 101102.
In accordance with the guidelines of the Swedish Code of
Corporate Governance, all members elected by the AGM in
2009 are considered to be independent in relation to the
company and the shareholders. The guidelines for the work of
the Board of Directors are set down in standing orders. The
standing orders contain rules regarding the number of ordinary
board meetings, the agenda items for ordinary board meetings,
responsibilities within the Board, including the tasks of the
Chairman of the Board, the division of responsibilities between
the Board and the CEO and how work is to be carried out in
committees.
To improve the efficiency of board work, the Board has
appointed a Remuneration Committee and an Audit Committee.
The committees prepare recommendations for the Board.
The Board of Directors applied a systematic and structured

evaluation of its internal work, also with the assistance of
external consultants Bain & Company. The result of this
evaluation was reported to the Nomination Committee.
TeliaSoneras General Counsel Jan Henrik Ahrnell served as
secretary at the Boards and its committees meetings.
CEO and Group Management

The CEO is responsible for the companys business development and leads and coordinates the day-to-day operations in
accordance with the guidelines and instructions of the Board of
Directors.
Headed by the CEO, the Group Management consists of
eleven members: The CEO, CFO, General Counsel, Head of
Group Human Resources, Head of Group Communications,
Chief Information Officer, Presidents of the three business areas
and the Head of the business sales division Business Services.
The Group Management holds meetings monthly. At these
meetings, issues of strategic nature and group-wide importance
are reviewed.
Remuneration Committee
The Remuneration Committee handles issues regarding salary
and other remuneration to the CEO and Group Management and
incentive programs that target a broader group of employees.
The Remuneration Committee has the authority to approve
remuneration to persons in TeliaSoneras Group Management,
except for the CEO.
Tom von Weymarn is chairman of the Remuneration
Committee. During 2009 the Committee held seven meetings
and had extended focus on remuneration structure for the
executive management and key employees.
Group-wide governance framework

TeliaSoneras group-wide governance framework is designed to
ensure that operative results correspond to decisions made, and
is structured to encourage all employees to strive, within set
boundaries, towards the same goals, with a common clear
understanding of direction, shared values, roles, responsibilities
and authority to act.
Audit Committee
The Audit Committee reviews the companys external financial
reporting, auditing, accounting and internal financial reporting
processes, including reviewing of accounting principles that are
important for the company. The Audit committee also reviews
96
Governance platform
In order to provide a general guidance to all employees in the
group the Board of Directors has issued the following governance documents to serve as a platform for the groups
activities.
Mission
TeliaSonera provides network access and telecommunication
services that help people and companies communicate in an
easy, efficient and environmentally friendly way.
We create value by focusing on delivering a world-class
customer experience, securing quality in our networks and
achieving a best-in-class cost structure.
TeliaSonera is an international group with a global strategy,
but wherever we operate we act as a local company.
TeliaSoneras organization
Vision
TeliaSoneras largest areas are mobility services, broadband

services and the holdings of TeliaSonera in Russia, Turkey and
Eurasia. In order to ensure strong leverage for profitable growth
and cross-border synergies, TeliaSonera is organized in three
international Business areas. The Business areas have full profit
and loss responsibilities for their assigned businesses. A
separate sales unit for all sales to business customers is
established in Sweden and Finland.
TeliaSonera is a world-class service company recognized as an

industry leader.
We are proud of being pioneers of the telecom industry, a
position we have gained by being innovative, reliable and
customer friendly.
We act in a responsible way, based on a firm set of values and
business principles.
Our services form a major part of peoples daily lives for
business, education and pleasure.
Thereby, we contribute to a world with better opportunities.

The business area comprises mobile operations in Sweden,
Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain.
Shared values
Our shared values, Add value, Show respect and Make it
happen, focus on the behavior we want to promote.
Business area Broadband Services
Code of ethics and conduct
The business area comprises operations in Sweden, Finland,

Norway, Denmark, Lithuania, Latvia (49 percent), Estonia and
international carrier operations.
Our Code of ethics and conduct sets out the ethical standards
within which we act.

The business area comprises mobile operations in Kazakhstan,
Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Nepal and
Cambodia and a shareholding of 12 percent in Afghanistans
largest operator Roshan. The business area is also responsible
for developing TeliaSoneras shareholding in Russian MegaFon
and Turkish Turkcell.
Common direction
The Board of Directors has decided a strategy for the group and
has set targets for the groups activities.
Corporate strategy
TeliaSonera's overall strategy is to deliver products and services
to our different customer segments based on a deep understanding of present and future customer needs. To create
shareholder value through sustainable and improved profitability
and cash flows, we will deliver our services in a cost-effective
and sustainable manner.
Head office
The head office assists the CEO in setting the framework for the
activities of the business areas and provides the business areas
with certain support.
Delegation of obligations and authority
To build a world class service company
The CEO has issued a delegation of obligations and authority,

which defines the obligations imposed on the heads of business
areas, including the head of sales division Business Services,
and corporate functions and within which limits they may make
decisions.
The delegation is decided by the CEO, within limits set by the
Board of Directors.
Capital structure
TeliaSonera targets a solid investment grade long-term credit
rating (A to BBB+ from Standard & Poors). The ordinary
dividend shall be at least 50 percent of net income attributable to
shareholders of the parent company. In addition, excess capital
shall be returned to shareholders.
Policies issued by group functions

The heads of group functions shall secure that necessary group
policies, instructions and guidelines are issued within their area
of responsibility.
Group policies are relatively short, mainly principles based

and binding for all wholly-owned companies. Group policies
are approved by the Board.
Group instructions are normally more detailed and

operational. They shall be in line with group policies and
they are binding for all wholly-owned companies. Group
instructions are approved by the CEO.
Group guidelines are non-binding recommendations and

should be in line with group policies and instructions. They
are approved by the heads of group functions.
Business targets
Yearly targets are set for the group as a whole and for each
business area and business unit.
Governance model
The Board of Directors has set up a model for the governance of
the group, which i.a. includes an organizational structure, a
structure for policy setting and a performance management
system.
97
TeliaSonera strives to implement certain group policies,

instructions and guidelines also in partly owned companies.
Documents issued within TeliaSoneras group-wide
governance framework are reviewed and updated on an annual
basis.
The objective for the financial reporting in TeliaSonera is, as

defined by the Board of Directors that it should be in line with the
highest professional standards and be full, fair, accurate,
punctual and understandable.
Internal controls over financial reporting within TeliaSonera are
organized in accordance with the COSO framework for internal
control, issued by the Committee of Sponsoring Organizations of
the Treadway Commission. It thus consists of five interrelated
areas, which are: control environment, risk management, control
activities, information and communication and monitoring, as
described below.
Performance Management Model

In order to beat the competition and reach challenging goals,
TeliaSonera is developing a high performance company culture.
Setting individual objectives linked to strategic business goals
and providing frequent feedback are crucial activities for
managers at all levels.
TeliaSonera has established a group-wide performance
management model currently valid for the four highest
management levels in the organization. The model, which aims
to focus on TeliaSoneras business objectives and to cascade
them into the different business areas, is designed to:
Help managers to set and cascade business objectives
Review individual performance
Develop and reward high performance
Address poor performance
Control environment
The Board of Directors has implemented a management system
that is based on three elements:
Common direction and shared values, including Code of

ethics and conduct providing one common direction for the
TeliaSonera group.
Delegation of obligations and authority defining the powers

and responsibilities of the Group management.
Management model including group policies, instructions

and guidelines documenting the companys organization
and mode of operations.
TeliaSoneras performance management process Make it

Happen will help TeliaSonera to increase and optimize
performance and progress. It will create motivation and offer
opportunities for employees to develop and grow, and thereby
move the organization forward. Working with performance
management in a structured way will help all leaders ensure that
every employee learns to understand how he/she can contribute
to business success.
TeliaSoneras view on performance is that is not only about
what you achieve but how you achieve your objectives, i.e. what
kind of competences and behaviors someone applies in order to
reach results.
In order to establish shared principles and expectations on
competences and behaviors TeliaSoneras shared values is
used as a platform for the evaluation of preferred behaviors. In
combination with this a group-wide competency framework is
established that outlines successful leadership competences for
different roles and levels.
The competency framework offers support to leaders when
providing feedback to individuals on performance and on what
competences that they could further develop.
TeliaSoneras performance management process is annual.
The year starts with setting objectives and ends with a
performance evaluation. Consequence management is applied,
which mean that high performance is rewarded and poor
performance addressed. This means that performance has an
impact on compensation as well as career- and development
opportunities.
The Code of ethics and conduct is subject for review by the

Board of Directors once a year. The purpose of the code is,
among other things, to further promote honest and ethical
conduct, clear communication, compliance with applicable
governmental rules, the prompt internal reporting of violations of
the code, and accountability for adherence to the code.
The CEO sets goals for the operations based on the guidelines from the Board of Directors. To ensure performance,
managers have annual targets for their particular operations.
The planning of the business is documented in annual operating
plans and the follow-up is conducted on a monthly basis,
complemented with rolling seven-quarter forecasts and quarterly
business review meetings on business unit and business area
levels.
The business review meetings are held as physical meetings
and include financial and business reviews for the reporting
period, forecast period, risks and operations performance
metrics on network quality and customer service levels. At the
business area review meetings, the CEO, CFO, Group controller
and selected members of Group management attend in addition
to the business area management.
The most essential parts of the control environment related to
financial planning, accounting, financial reporting and controls
over financial reporting are included in steering documents and
processes governing these areas. Management at each
business unit or function is responsible for ensuring that the
monthly and quarterly financial reporting follows TeliaSonera
policies and that the reports are delivered on time, sufficient
internal controls exist and are performed, required
reconciliations are properly done and larger business and
financial risks are identified and reported.
As part of the control environment at TeliaSonera,
management at all levels is responsible for ensuring that group
policies (including The Code of ethics and conduct), and
requirements are implemented and followed.
An integral part of TeliaSoneras control environment is the
establishment of a financial shared services unit, which takes
care of the standardized financial accounting processes across
all large wholly-owned units.
Internal control over financial reporting

and business operations
In accordance with the Swedish Companies Act and the
Swedish Code of Corporate Governance, the Board of Directors
is responsible for internal control environment. The Board
continually reviews the performance of internal controls and
initiates activities for the continuous improvement of internal
controls in order for it to be stable and capable of meeting
changing external requirements.
Internal control is an integral part of TeliaSoneras corporate
governance. It is a process which involves the Board, senior
management and other employees and includes methods and
processes to:
Safeguard the groups assets and shareholder value
Ensure the reliability and correctness of financial reporting in

accordance with applicable legislation and guidelines
Ensure that objectives are met in the business operations

and thereby improve operational efficiency
Risk management
Risk management is an integral part of the groups business
control and monitoring. Risks that may pose a threat to
achieving business objectives are identified, and controls to
mitigate these risks are designed, implemented and monitored.
A process exists to regularly identify risks that could lead to
material misstatements of financial information. The risks are
reported by each sub-entity in a bottom up process, and
98
The Board of Directors receives monthly financial reports from

the CEO.
The Board of Directors and its Audit Committee review all
external financial reports before they are made public. The Audit
Committee receives reports directly from both external and
internal auditors and discusses and follows up observations
made. Both the external and internal auditors are represented at
the meetings of the committee. At least once a year, the entire
Board of Directors meets with the external auditors, in part without the presence of management.
The Board of Directors regularly receives risk reports compiled
by management. On a case by case basis the Audit Committee
also reviews functional units such as e.g. Corporate Business
Control and Corporate Finance and Treasury. The purpose of
these evaluations is to increase the Boards understanding of
major issues related to TeliaSoneras risk management and
internal control environment. Business operations performance
metrics are reported monthly to the Group Management and
quarterly to the Board of Directors.
Audit Committee monitors the financial reporting, but also the
effectiveness of the internal control. This is performed by having
regular reviews of the external and internal audit, impairment
valuations, financial policies and interpretations of accounting
principles of special importance for the group. The work also
includes review of selected topics, such as acquisitions, major
internal projects, status in associated companies and the
Eurasia region, sourcing and financial processes. In addition the
Audit Committee reviews the performance of the auditors and
the yearly audit plans.
presented in the quarterly business review meetings. The Board

of Directors receives a summary report, identifying the main
risks, each quarter as part of the review of the external financial
reports.
The groups security organization works with preventative
security measures and crisis management in order to protect the
groups assets, IT systems, information, personnel and to
safeguard telecom networks, services and customers from
infringements and fraud.
Control activities
All business processes across TeliaSonera include controls
regarding the initiation, approval, recording and accounting of
financial transactions. Major processes, risks and key controls
(including IT controls) are described and documented in a
common and structured way. For further details see Note C35 to
the consolidated financial statements. Controls are either
automated or manual and designed to ensure that necessary
actions are taken to either prevent or detect material errors or
misstatements and to safeguard the assets of the company.
Controls for the recognition, measurement and disclosure of
financial information are included in the financial closing and
reporting process, including controls for the application of
accounting policies.
The major business units across TeliaSonera have dedicated
controller functions which take part in the financial planning and
analysis of the respective units performance. These analyses of
the financial results cover revenues, costs of goods sold,
operating expenses, assets and working capital and form an
important element, together with the analysis of consolidated
statements at group level, in ensuring that the financial reporting
is materially correct.
Management has decided to include internal controls over
business operations in the internal control environment. The
purpose of internal controls over business operations is to
ensure that the quality of delivered services and products meet
or exceed customer expectations and thus enable TeliaSonera
to reach its objective to secure high quality in the networks and
become a world class service company.
The monitoring of business operations performance metrics is
based on defined metric measurements, which focuses on
removing mistakes, waste and defects from operations by the
means of statistical analysis. One guiding principle of metrics
management is to identify the root cause of a problem, and not
just its symptoms, thus ensuring that the proper corrective
measures are taken and that the problem will not occur again.
Internal Controls Performance and Monitoring Process
Information and communication

Instructions, guidelines and requirements regarding accounting
and reporting as well as performing internal controls are made
accessible to all relevant personnel through the use of
TeliaSoneras regular internal communication channels.
Business operations performance metrics are reported monthly
and the results for all entities are shared with all business unit
managers and their management teams. The sharing gives a
good opportunity for benchmark and learning within the group.
TeliaSonera promotes an open, honest and transparent flow of
information, especially regarding the performance of internal
controls. Control performers are encouraged to disclose of any
problems concerning their controls, in the monthly reporting, so
that any problem can be taken care of before it, possibly, causes
errors or misstatements.
The Board of Directors has established a process which
enables employees to anonymously report violations in
accounting, reporting, internal controls or auditing matters, as
well as compliance to the groups Code of ethics and conduct, a
so called whistle blower process.
TeliaSonera has implemented a structured, monthly process for

the monitoring of the performance of internal controls. This
process includes all major business units, business areas and
corporate functions and consists of a self-assessment of the
performance of all controls in the group. So called Monitoring of
Internal Controls, or MIC-, meetings are held at business unit
and business area level on a regular basis and at group level
when needed. At these meetings the performance of internal
controls is reviewed and assessed and corrective actions are
decided, if necessary. The group level MIC-meetings are chaired
by the CFO and attendees are summoned according to issue to
be dealt with, but would typically include one or more of the
business area finance managers, representatives from corporate
control, internal audit and group IT. The group level meetings
are also attended by the external auditors.
Monitoring of control activities

The Board of Directors actively monitors the environment and
effectiveness of internal control over financial reporting,
specifically through the Audit Committee.
99
The Head of Group Internal Audit reports to the CEO, who

decides in consultation with the Audit Committee on the
functions tasks and priorities.
A risk-based testing of key controls is carried out on behalf of

management in order to assess the quality of the internal
controls. The risk based testing covers approximately 40 percent
of controls every year and aims at testing every control at least
once over a three-year cycle. The testing is performed by
internal resources and the external auditors, where comfort is
taken from each others work, in order to optimize value for
money. The result of the testing is communicated to all relevant
business units, where corrective or improvement actions are
initiated and performed, and at least once a year a joint
TeliaSonera/Auditors report is presented for the Audit
Committee.
The CFO regularly reports to the Audit Committee on the
monitoring of internal controls. Both the Audit Committee and the
Board of Directors have reviewed and discussed managements
assessment of the companys internal controls, and have
actively followed up the related improvement measures by
management.
Remuneration structure in TeliaSonera

The remuneration structure in TeliaSonera is based on the
principles of:
Rewarding for performance
Being competitive and internally fair
Considering the affordability to the business

The Remuneration Policy for Executive Management is
designed to reflect these principles providing the possibility to
create a balanced remuneration package supporting the
TeliaSonera business objectives. This remuneration policy is
subject to shareholder approval at the Annual General Meeting
(AGM).
The AGM decided in April 2009 that the remuneration components for executive contracts post-April 2009 may consist of
base salary, pension and other benefits. The remuneration components for executive contracts pre-April 2009 may consist of
base salary, annual variable pay of a maximum of 50 percent of
the base salary, pension and other benefits.
Base salaries should be competitive in the relevant market
factoring in the balance of total remuneration. The absolute level
of the base salary is determined by the size and complexity of
the position and the year-to-year performance of the individual.
An annual variable pay component should reward performance
and ensure long term sustainability of the company.
There are currently no share or share price-related incentive
programs at TeliaSonera.
Information on remuneration in TeliaSonera is further developed in Note C32 to the consolidated financial statements.
Group internal audit

The group has an internal audit function that reviews the groups
operations and makes proposals with a view to improve both
internal controls environments, and efficiency in processes and
systems. Through operational reviews a systematic, disciplined
approach to evaluate and improve the effectiveness of governance are achieved. In order to obtain integrity in the metric
measurements over business operations the group internal audit
function performs assurance of underlying data.
The Head of Group Internal Audit unit is also responsible,
together with two external members acting within the Equality of
Access Board, to oversee developments in relation to equal
treatment of internal and external wholesale customers in
Sweden.
100
Board of Directors Including Remuneration
Tom von Weymarn (Born 1944)

Chairman of the Board. Elected to the Board of
Directors in 2002. He is the Chairman of the
Remuneration Committee of TeliaSonera and
also a member of the Audit Committee of TeliaSonera. In addition, Mr. von Weymarn is the
Chairman of the Board of Directors of Lnnen
Tehtaat Plc, Turku Science Park Oy and Sibelius
Academy, a board member of Pohjola Bank Plc,
Hydrios Biotechnology Oy, Hartwall Capital, a
Senior Advisor and member of the Supervisory
Board of IndustriKapital and partner of Boardman
Oy. Mr. von Weymarn served as President and
CEO of Oy Rettig Ab between 1997 and 2004,
and as Executive Vice President of Cultor Plc
between 1991 and 1997. He was a Director of
Oy Karl Fazer Ab between 1983 and 1991, the
last two years as President and CEO. Mr. von
Weymarn holds a Master of Science in Chemical
Engineering.
Shares in TeliaSonera: 30,316.
Maija-Liisa Friman (Born 1952)
Elected to the Board of Directors in 2007. She is
the Chairman of the Audit Committee of TeliaSonera since April 1, 2009 of which she was a
member earlier. She is Chairman of Ekokem, a
member of the Boards of Directors of Metso Oyj,
The Finnish Medical Foundation, LKAB and
Helsinki Deaconess Institute. She is also a board
member and partner of Boardman Oy. Previously
Ms. Friman was the CEO of Aspocomp Group
Oyj. Ms. Friman holds a Master of Science in
Chemical Engineering.
Conny Karlsson (Born 1955)

Elected to the Board of Directors in 2007. From
April 1, 2009, he is a member of the Audit
Committee of TeliaSonera and before that date
he was a member of the Remuneration
Committee of TeliaSonera. In addition, he is the
Chairman of the Board of Swedish Match AB and
a member of the board of Capman Oyj. He has
previously been CEO of Duni AB and has held
several managerial positions in Procter &
Gamble. Mr. Karlsson holds a Master of
Business Administration.
Lars G Nordstrm (Born 1943)

Elected to the Board of Directors in 2007. Mr.
Nordstrm is also a member of the Remuneration
Committee of TeliaSonera. In addition, he is
President and CEO of the Swedish Danish postal
administration Posten Norden AB and he is a
board member of Nordea Bank AB, of which he
was President and CEO between 2002 and
2007. He is the Chairman of the Finnish-Swedish
Chamber of Commerce and also a member of
the boards of the Swedish American Chamber of
Commerce and Viking Line Abp. Mr. Nordstrm
studied law at Uppsala University.
Timo Peltola (Born 1946)

Elected to the Board of Directors in 2004. He is a
member of the Remuneration Committee of
TeliaSonera. In addition, Mr. Peltola is the Chairman of the Board of Directors of Neste Oil Oyj,
member of the boards of Nordea Bank AB, SAS
AB and AW-Energy Oy. He is also a member of
the Advisory Boards of CVC Capital Partners and
Sveafastigheter AB and advisor to CapMan
Public Market Fund. Mr. Peltola served as
President and CEO of Huhtamki Oyj between
1989 and 2004. Mr. Peltola holds a Doctor
degree in Economics hc.
Lars Renstrm (Born 1951)

Elected to the Board of Directors in 2009. He is a
member of the Remuneration Committee of
TeliaSonera since April 1, 2009. Mr. Renstrm is
since 2004 President and CEO of Alfa Laval. He
has previously served as President and CEO of
Seco Tools and has held several senior
managerial positions within Atlas Copco,
Ericsson and ABB. Lars Renstrm is a board
member of ASSA ABLOY and Alfa Laval. Mr.
Renstrm holds a Master of Science in
Engineering and a Bachelor of Science in
Business and Economics.
Jon Risfelt (Born 1961)

Elected to the Board of Directors in 2007. Mr.
Risfelt is a member of the Audit Committee of
TeliaSonera. In addition, he is Chairman of the
Boards of Ortivus AB, Mawell Oy and C3
Technologies AB and holds board assignments
at Enea Data AB, Bilia AB, Karo Bio AB and F
AB. He has earlier served as CEO of Europolitan
AB, Nyman & Schultz AB and Gambro Renal. He
has held various managerial positions within the
American Express Group, Scandinavian Airlines
and Ericsson. Mr. Risfelt holds a Master of
Science in Chemical Engineering.
101
Caroline Sundewall (Born 1958)

Elected to the Board of Directors in 2001. Since
April 1, 2009, Caroline Sundewall is a member of
the Remuneration Committee of TeliaSonera.
Earlier she was the Chairman of the Audit
Committee of TeliaSonera. In addition, Ms.
Sundewall is Chairman of the Board of Streber
Cup Foundation and a board member of Electrolux AB, Haldex AB, Lifco AB, Svolder AB, Tradedoubler AB, Pgengruppen AB, Aktiemarknadsbolagens Frening, Mertzig Frvaltnings AB and
Ahlsell AB. Ms. Sundewall has previously served
as business editor for Finanstidningen and
business commentator and business editor for
Sydsvenska Dagbladet. She has also held the
position of business controller of Ratos AB. Ms.
Sundewall holds a Bachelor of Science in
Economics.
Agneta Ahlstrm (Born 1960)

Employee representative, appointed by the trade
union to the Board of Directors in 2007. She is
Chairman of the Swedish Union for white-collar
workers in the private labour market,
Telecommunications section (Unionen-Tele).
Previously, she was the Chairman of the section
of SIF-TELE at TeliaSonera International Carrier.
Shares in TeliaSonera: 200.
Magnus Brattstrm (Born 1953)

union to the Board of Directors in 2009. In
addition, Mr. Brattstrm is the Chairman of the
Union of Service and Communication Employees
within TeliaSonera, SEKO TELE, and a member
of the European Work Council at TeliaSonera.
He is also a board member of the Telia Pension
Fund.
Stefan Carlsson (Born 1956)

union to the Board of Directors in November
2009. He is deputy Chairman of the Swedish
Union for white-collar workers in the private
labour market, Telecommunications section
(Unionen-Tele) and member of the federal board
of Unionen. Previously, he was second deputy
Chairman of SIF and Unionen.
Including shareholdings by spouse and/or affiliated persons when appropriate.
Remuneration and attendance see below.

Remuneration and other benefits during the year, attendance and number of shares
Name
Elected
year Position
Committee
Presence
board
meetings
Total
Presence remuneration
committee and benefits
(SEK)
meetings
Shares in
TeliaSonera
Tom von Weymarn
2002
Chairman of the Board and Chairman of

the Remuneration Committee
Remuneration
Audit
100%
100%
1,140,024
30,316
Maija-Liisa Friman
2007
Director and Chairman of the Audit

Committee
Audit
100%
100%
562,506
5,597
Conny Karlsson
2007
Director
Audit
100%
100%
505,011
10,000
Lars G Nordstrm
Timo Peltola
2007
2004
Director
Director
Remuneration
Remuneration
82%
100%
86%
100%
445,008
447,091
4,000
3,000
10,000
Lars Renstrm
2009
Director
Remuneration
86%
100%
333,756
Jon Risfelt
2007
Director
Audit
100%
100%
525,012
5,750
Caroline Sundewall4
2001
Director
Remuneration
100%
100%
477,507
4,000
Agneta Ahlstrm
2007
Employee Representative
82%
200
Magnus Brattstrm
Stefan Carlsson
2009
2009
100%
100%
20
650
Elof Isaksson5
2000
100%
1,750
Berith Westman6
1993
90%
1,000
See also Note C32 to the consolidated financial statements.

Chairman of the Audit Committee since April 1, 2009.
Member of the Remuneration Committee until April 1, 2009. Since that date member of the Audit Committee.
Member of the Remuneration Committee since April 1, 2009.
4
Chairman of the Audit Committee until April 1, 2009. Since that date member of the Remuneration Committee.
5
Elof Isaksson was replaced by Magnus Brattstrm in May, 2009.
6
Berith Westman was replaced by Stefan Carlsson in November, 2009.
102
Group Management Including Remuneration
Lars Nyberg (Born 1951)

President and Chief Executive Officer since
2007. Mr. Nyberg is also Chairman of DataCard
Corp. and board member of Autoliv Inc. Between
1995 and 2003 he was Chairman and CEO of
NCR Corp, where he continued as Chairman
until 2005. Previously, Mr. Nyberg held several
managerial positions in Philips, and was a
member of Philips Group Management
Committee. Mr. Nyberg holds a Bachelor of
Science in Business Administration.
Per-Arne Blomquist (Born 1962)

Executive Vice President and Chief Financial
Officer of TeliaSonera since September 2008.
Prior to joining TeliaSonera, Mr. Blomquist was
Executive Vice President and CFO of SEB, from
2006, and Head of Group Finance of SEB
between 2001 and 2006. Between 1997 and
2000 he held various positions at Telia, e.g. as
managing director of Telia Fretag. Per-Arne
Blomquist started his career at Alfa Laval in 1989
and holds a Bachelor of Science in Business
Administration and Economics.
Jan Henrik Ahrnell (Born 1959)

Senior Vice President, General Counsel and
Head of Group Legal Affairs since 1999. Mr.
Ahrnell has been employed by TeliaSonera since
1989. Prior to his service as General Counsel,
Mr. Ahrnell was the head of various legal
departments within the TeliaSonera Group and
served as corporate counsel in various
TeliaSonera companies. Mr. Ahrnell holds a
Master of Law.
Hkan Dahlstrm (Born 1962)

President of business area Mobility Services as
of February 2010. Mr. Dahlstrm was most
recently Head of Broadband Services, since
November 2008, and has held a number of
managerial positions within TeliaSonera,
including Head of Corporate Networks &
Technology. Prior to joining Telia in 1998, Mr.
Dahlstrm was a Navy Officer with extensive
experience from the procurement and
development of information and communication
systems for the Swedish Armed Forces. He holds
a Master of Engineering in Computer Technology
and a Master of Science in Digital Technology.
Cecilia Edstrm (Born 1966)

Senior Vice President and Head of Group
Communications since May 2008. Previously,
Ms. Edstrm was Senior Vice President and
Head of Corporate Relations at Scania AB,
where she held a number of senior positions
since 1995. She started her career in corporate
finance at SEB in 1989. She is also a member of
the board of BE Group AB. Ms. Edstrm holds a
Bachelor of Science in Finance and Business
Administration.
Karin Eliasson (Born 1961)

Senior Vice President and Head of Group
Human Resources since 2008. Prior to joining
TeliaSonera, Ms. Eliasson was Senior Vice
President Human Resources at Svenska
Cellulosa Aktiebolaget, SCA. She has been the
CEO of Novare Human Capital AB and Vice
President Organizational Development at Stora
Enso AB. She holds a Bachelor of Science in
Human Resource Development and Labour
Relations.
Malin Frenning (Born 1967)

Appointed deputy Head of Broadband Services
in February 2010, with the aim of succeeding
Anders Gylder when he retires at the end of
2010. She has more than ten years of
experience from senior managerial positions in
TeliaSonera with specific focus on the carrier
business, international business strategy and
product management. Ms. Frenning holds a
Master of Science in Mechanical Engineering.
Anders Gylder (Born 1950)

Appointed Head of Broadband Services in
February 2010. Mr. Gylder has had a long career
in the Group and was earlier member of Group
Management, with responsibility for, among other
things, the Customer Care Unit and the large
corporate customer segment. Mr. Gylder holds a
Master Science in Engineering.
103
Sverker Hannervall (Born 1960)

Senior Vice President and Head of sales division
Business Services in Sweden and Finland since
August 1, 2008. Mr. Hannervall is also senior
advisor to InnovationsKapital AB. Between 2004
and 2008 he was General Manager of Cisco
Systems in Sweden. Previously, Mr. Hannervall
was President and CEO of Trio AB and prior to
that Executive Vice President of Telelogic AB.
Between 1984 and 1997 he held various
managerial positions at IBM. Mr. Hannervall
holds a Master of Science in Engineering.
Tero Kivisaari (Born 1972)

President of business area Eurasia since 2007.
Mr. Kivisaari was previously Chief Financial
Officer and Vice President of business area
Eurasia. He is a board member of Turkcell,
MegaFon and Fintur Holdings B.V. Mr. Kivisaari
has also been the CFO of SmartTrust AB. Before
that he held the position of Vice President of
Sonera Corporations International Operations.
Mr. Kivisaari holds Master Degrees in Science
and Economics.
ke Sdermark (Born 1954)

Senior Vice President and Chief Information
Officer at TeliaSonera since December 2008.
Prior to joining TeliaSonera, Mr. Sdermark was
Senior Vice President at NASDAQ OMX Group
and since 2005 Head of Development at OMX
Market Technology. Between 1997 and 2005 he
held various managerial positions at Atos Origin
and at SEB IT between 1984 and 1997. Mr.
Sdermark started his career at VPC (Swedish
Central Security Depository) and his educational
background is in computer technology.
By way of pension insurance

Remuneration and other benefits during the year, capital value of pension commitments
SEK
Lars Nyberg, CEO
Per-Arne Blomquist, EVP
Other members of Group
Management (8 individuals1)
Base salary
8,404,800
Variable pay
3,235,848
Other benefits
347,334
Total
remuneration and
Pension expense
benefits
8,424,096
20,412,078
Capital value of
pension
commitment
4,738,008
1,824,130
549,841
1,821,852
8,933,831
22,854,566
8,404,233
3,198,275
10,825,118
45,282,192
38,557,980
See also Note C32 to the consolidated financial statements and Report of the Directors (Remuneration to Executive Management).
1
Constituted TeliaSonera Group Management on December 31, 2009.
104
Additional Information
Annual General Meeting 2010
As Finnish shareholders within the Finnish book-entry system at

Euroclear Finland Oy are nominee registered at Euroclear
Sweden AB, these Finnish shareholders have to contact
Euroclear Finland Oy, by email: [email protected] or by phone:
+358 (0)20 770 6609, for re-registration well in advance of
March 30, 2010 to be able to participate in the meeting.
TeliaSoneras Annual General Meeting (AGM) will be held on

Wednesday, April 7, 2010, at 14.00 CET at Cirkus, Djurgrdssltten 4345, Stockholm. The complete notification was
published on TeliaSoneras website, www.teliasonera.com at the
beginning of March. The meeting will be interpreted into English.
Right to attend
Nominee
Shareholders who wish to attend the Annual General Meeting

shall
be entered into the transcription of the share register as of

Tuesday, March 30, 2010, kept by Swedish central
securities depository Euroclear Sweden AB and
give notice of attendance to the Company no later than

16.00 CET on Tuesday, March 30, 2010.
Shareholders who are represented by proxy shall issue a power

of attorney for the representative. Forms for power of attorneys
are available at the Companys website www.teliasonera.com.
To a power of attorney issued by a legal entity a copy of the
certificate of registration (and should such certificate not exist, a
corresponding document of authority) of the legal entity shall be
attached. The documents must not be older than one year. In
order to facilitate the registration at the meeting, powers of
attorney in original, certificates of registration and other documents of authority should be sent to the Company at the address
above at the latest by Wednesday, March 31, 2010.
Notice to the Company

Notice of attendance can be made
in writing to TeliaSonera AB, Box 7842, SE-103 98 Stockholm, Sweden,
by telephone +46-8-402 90 50 on weekdays between

09.00 CET and 16.00 CET, or
via the Companys website www.teliasonera.com (only

private individuals).
Decisions to be made by the AGM

The AGM determines, among other matters, the appropriation of
the Company's profits and whether to discharge the Board of
Directors and President from liability. The AGM also appoints the
Board of Directors and makes decisions regarding remuneration
to the Board. The Board of Directors proposes that a dividend of
SEK 2.25 per share be distributed to the shareholders, and that
April 12, 2010 be set as the record date for the dividend. If the
Annual General Meeting adopts this proposal, it is estimated that
disbursement from Euroclear Sweden AB will take place on
April 15, 2010.
When giving notice of attendance, please state name/company

name, social security number/corporate registration number,
address, telephone number (office hours) and number of
accompanying persons.
Shareholding in the name of a nominee

Shareholders, whose shares are registered in the name of a
nominee, must request to be temporarily entered into the share
register kept by Euroclear Sweden AB as of March 30, 2010, in
order to be entitled to participate in the meeting. Such shareholder is requested to inform the nominee to that effect well
before that day.
Other information
The CEOs speech at the Annual General Meeting will be posted
on the Companys website www.teliasonera.com under section
Investor Relations after the meeting.
105
Additional Information
Contact TeliaSonera
Contact TeliaSonera
TeliaSonera AB
Mailing address:
TeliaSonera AB
SE106 63 Stockholm
Sweden
Visiting address:
Stureplan 8, Stockholm
Telephone: +46 (0)8 504 550 00
Fax: +46 (0)8 504 550 01
Email: [email protected]
President and Chief Executive Officer

Lars Nyberg
Mailing address:
TeliaSonera AB
SE106 63 Stockholm
Sweden
Telephone: +46 (0)8 504 550 00
Fax: +46 (0)8 504 550 14
Group Communications
Cecilia Edstrm
Mailing address:
TeliaSonera AB
SE106 63 Stockholm
Sweden
Telephone: +46 (0)8 504 550 00
Fax: +46 (0)8 611 46 42
Group Investor Relations

Andreas Ekstrm
Mailing address:
TeliaSonera AB
SE106 63 Stockholm
Sweden
Telephone: +46 (0)8 504 550 00
Fax: +46 (0)8 611 46 42
Email: [email protected]
Production
Production: TeliaSonera AB Investor Relations in cooperation with Hallvarsson & Halvarsson
Online speech enabling: VoiceCorp
Photo of the Board of Directors, CEO and Group Management: Victor Brott
Film production: Creo Media Group
106

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Annual Report 2009

TeliaSonera Annual Report 2009

Letter from the CEO

Markets and Brands

Report of the Directors

Consolidated Statements of Comprehensive Income

Consolidated Statements of Financial Position

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Equity

Notes to Consolidated Financial Statements

Parent Company Income Statements

Parent Company Statements of Comprehensive Income

Parent Company Balance Sheets

Parent Company Cash Flow Statements

Parent Company Statements of Changes in Shareholders Equity

Notes to Parent Company Financial Statements

Proposed Appropriation of Earnings

Ten-Year Summary Financial Data

Ten-Year Summary Operational Data

Corporate Governance Report

Board of Directors Including Remuneration

Group Management Including Remuneration

Annual General Meeting 2010

TeliaSonera AB (publ), SE-106 63 Stockholm, Sweden

TeliaSonera Company Presentation 2009

Highlights and achievements

TeliaSonera is an international group with a global strategy, but

Strong financial performance

4G World premiere in Stockholm and Oslo

World-class Service Company

We opened up the worlds first commercial 4G networks in

Our focus areas are:

To build a world-class service company

To secure high quality in our networks

To create a best-in-class cost efficiency

Employee satisfaction and commitment improved

TeliaSonera is listed on the NASDAQ OMX Stockholm and

Agreement with Altimo

Strong subscription growth

Net sales and EBITDA margin, excluding non-recurring

SEK per share

EPS and Dividends, 20072009

TeliaSonera Company Presentation 2009

Letter from the CEO

The financial crisis is still prominent and affected several of our

Improvement in profitability and cash flow

In 2009, TeliaSoneras EBITDA grew by 11 percent and the

Building a world class service company and delivering a

Expanding in Eurasia and increasing ownership in

TeliaSonera is a well positioned and

TeliaSonera aims to grow in line with the markets and take

Lars Nyberg, President and CEO, TeliaSonera

Contribution to economic growth

TeliaSonera Company Presentation 2009

At the same time, mobile penetration in our Eurasian markets

In October, we successfully completed the cash offer for Eesti

The worlds first 4G commercial networks

Aligning ownership with Altimo