STOCKHOLM, Sweden, Feb. 26, 2003 (PRIMEZONE) -- In TeliaSonera's (Nasdaq:TLSN) Year-End Report 2002, published on February 19, 2003, calculation errors regarding the pro forma figures for 2002 have been noted. The corrections concern eliminations of Com hem and Telia Finland, among others, in the column "Adjustments." Corrections have also been made regarding pro forma taxes.
Neither the legal results nor Telia's stand-alone or Sonera's stand-alone results are affected.
TeliaSonera's outlooks, stated in the report, are not affected by the corrected pro forma figures.
The correct pro forma figures are shown below in tables corresponding to the year-end report.
As stated in the year-end report, TeliaSonera is in the process of acquiring the remaining outstanding shares and warrants in Sonera; thus, the final amounts of fair value adjustments and goodwill are subject to refinement. This may later on lead to further adjustments of the pro forma figures.
TeliaSonera pro forma(a) -- Review of Earnings
January-December
2002 2001 2002 2001
msek msek meur(b) meur(b)
Net sales 80,979 80,925 8,809 8,803
Change in net sales (%) 0.1 9.3 0.1 9.3
Underlying ebitda 25,457 21,768 2,769 2,368
Underlying ebitda margin (%) 31.4 26.9 31.4 26.9
Operating income -45,958 9,586 -5,000 1,043
Underlying operating 7,320 -1,514 796 -165
income
Free cash flow 9,534 -7,008 973 -762
capex 11,459 21,189 1,246 2,305
(a) Assuming a 100% ownership of Sonera and excluding Telia's
Finnish mobile operations and Swedish cable TV operations
(b) For convenience only, conversion rate: SEK 1 = EUR 0.10878.
Telia Sonera Baltic Adjust- Pro forma
MSEK entities ments 2002
Net sales 57,138 20,505 6,199 -2,863 80,979
Underlying EBITDA 14,909 7,280 3,036 232 25,457
Operating income -10,900 -35,001 1,396 -1,453 -45,958
Underlying operating 3,582 3,795 1,396 -1,453 7,320
income
Pro forma(a) Jan-Dec 2002 Jan-Dec 2001 Jan-Dec
MSEK 2000
Condensed Income Statements
Net sales 80,979 80,925 74,070
Underlying ebitda 25,457 21,768 20,681
Operating income -45,958 9,586 20,852
INCOME AFTER FINANCIAL ITEMS -46,791 5,253 20,382
NET INCOME -32,890 2,143 15,239
Pro forma(a) Dec 31,
MSEK 2002
Condensed Balance Sheet
FIXED ASSETS 171,656
Current assets 33,714
Total assets 205,370
SHAREHOLDERS' EQUITY 108,829
MINORITY INTERESTS 5,120
PROVISIONS 18,324
LONG-TERM LOANS 31,336
Short-term loans 12,608
Non-interest-bearing liabilities 29,153
TOTAL EQUITY AND LIABILITIES 205,370
Pro forma(a) Jan-Dec Jan-Dec Jan-Dec
MSEK 2002 2001 2000
Condensed Cash Flow Statements
Cash flow from operating activities 20,717 14,181 14,405
Intangible and tangible assets acquired -11,183 -21,189 -20,515
Free cash flow 9,534 -7,008 -6,110
Other investing activities 7,685 35,200 -23,491
Cash flow from investing activities -3,498 14,011 -44,006
Cash flow from financing activities -21,889 -20,511 63,971
Cash flow for the period -4,670 7,681 34,370
(a) Assuming a 100% ownership of Sonera and excluding Telia's
Finnish mobile operations and Swedish cable TV operations
Financial Information/Underlying EBITDA
This year-end report includes information on "underlying EBITDA" and on other similar "underlying" measures of TeliaSonera's results of operations. Underlying EBITDA equals operating income before depreciation, amortization and write-downs, net of items not reflecting underlying business operations and excluding income from associated companies. Items not reflecting underlying business operations include capital gains and losses, restructuring/phase-out of operations, personnel redundancy costs, and expenses in conjunction with the initial public offering in 2000. TeliaSonera's management uses underlying EBITDA and operating income as the principal measures for monitoring profitability in internal operations. Management believes that, besides operating income, underlying EBITDA is also a measure commonly reported and widely used by analysts, investors and other interested parties in the telecommunications industry. Accordingly, underlying EBITDA is presented to enhance the understanding of TeliaSonera's historical operating performance. Underlying EBITDA, however, should not be considered as an alternative to operating income as an indicator of our operating performance. Similarly, underlying EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. Underlying EBITDA is not a measure of financial performance under IAS or U.S. GAAP and may not be comparable to other similarly titled measures for other companies. Underlying EBITDA is not meant to be predictive of potential future results.
Forward-Looking Statements
This press release may contain forward-looking statements regarding TeliaSonera's mandatory redemption offer to Sonera's shareholders and warrantholders. Statements that are not strictly historical statements, including statements about TeliaSonera's and Sonera's beliefs and expectations, constitute forward-looking statements. By their nature, forward-looking statements are subject to risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. TeliaSonera and Sonera are under no obligation to, and expressly disclaim such obligation to, update or alter their forward-looking statements, whether as a result of new information, future events or otherwise. Restrictions on Ability of Certain Persons to Participate in the Mandatory Redemption Offer. Due to restrictions under the securities laws of Australia, the Hong Kong Special Administrative Region of the People's Republic of China, Japan and New Zealand, the mandatory redemption offer, insofar as it comprises an offer of TeliaSonera securities, will not be made in any of Australia, the Hong Kong Special Administrative Region of the People's Republic of China, Japan or New Zealand. The mandatory redemption offer will, however, insofar as it comprises an offer of cash, be made in Australia, the Hong Kong Special Administrative Region of the People's Republic of China, Japan and New Zealand. Due to restrictions under the laws of Italy and South Africa, the mandatory redemption offer, both as it comprises an offer of TeliaSonera securities or cash, will not be made in Italy or South Africa.
Cautionary Disclaimer/Legend
On December 9, 2002, Telia announced the completion of its exchange offer for all of the outstanding shares, including shares in the form of American depositary shares, or ADSs, and certain warrants of Sonera. Effective December 9, 2002, Telia changed its name to TeliaSonera. As a result of the completion of the exchange offer, TeliaSonera, pursuant to Finnish law, commenced a mandatory redemption offer to acquire all of the outstanding shares, including shares in the form of ADSs, and warrants of Sonera were not tendered in the exchange offer. The contents of this document are neither an offer to purchase nor a solicitation of an offer to sell shares of TeliaSonera. Any offer in the United States will only be made through a prospectus, as amended or supplemented, which is part of a registration statement on Form F-4 which Telia originally filed with the U.S. Securities and Exchange Commission (the "SEC") on October 1, 2002. Sonera shareholders who are U.S. persons or are located in the United States are urged to carefully review the registration statement on Form F-4, as it may be amended from time to time, the prospectus, including any amendments or supplements thereto, included therein and other documents relating to the offer that TeliaSonera has filed or will file with the SEC because these documents contain important information relating to the offer. You may obtain a free copy of these documents at the SEC's web site at www.sec.gov. You may also inspect and copy the registration statement on Form F-4, and any amendment thereto, as well as any documents incorporated by reference therein at the public reference room maintained by the SEC at 450 Fifth Street, NW, Washington, D.C. 20549. Please call the SEC at 1- 800-SEC-0330 for further information about the public reference room. These documents may also be obtained free of charge by contacting TeliaSonera AB, Investor Relations, SE-123 86 Farsta, Sweden. Attention: External Communications or Investor Relations (tel: +46 8 7137143), or Sonera Corporation, Teollisuuskatu 15, P.O. Box 106, FIN-00051 SONERA, Finland. Attention: Investor Relations (tel: +358 20401). YOU SHOULD READ THE PROSPECTUS, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO CAREFULLY BEFORE MAKING A DECISION CONCERNING THE OFFER.
For further information, journalists can contact:
TeliaSonera's Press Office, phone +46 8 713 58 30
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