Q1CHRISTIAN LUIGA president & CEO

Interim REPORT JANUARY – March 2020

-1.0%-0.2%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 20(excl.

TV/media)

CONTINUED IMPROVEMENT IN OUR TELCO BUSINESSES

SERVICE REVENUEs Improved

Dividend and leverageAdjusted EBITDA impacted by tv and media

* Like for like2

-5.1%-1.4%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 20(excl.

TV/Media)

YoY growth*

YoY growth*

SEK3.3Bn

OPERATIONAL FREE CASH FLOW q1 2020

(SEK 4.4 billion Q1 2019)

DividendSEK 1.80/share

(SEK 7.4 billion)

Leverage

2.62x(2.71x Q4 2019)

Covid-19 impacts and implications

3

• Additional impact on the advertising market sentiment –difficult to isolate

• Cancelled sport events affect TV distribution and cost

• Limited impact on the telco business so far

• Networks holding up well despite high usage

• No significant supply chain issues so far

• Plans in place to ensure business continuity

-120

-100

-80

-60

-40

-20

0

COVID Impact on q1 2020 – largely tv relatedAdjusted EBITDA, SEK million

Potential OPPORTUNITIES/ risks ahead

FURTHER HIGH DEMAND FOR SUPPORT TO B2B AND SOCIETY

ROAMING impacted by travel restrictions

CANCELLED SPORT EVENTS WILL IMPACT TV DISTRIBUTION

CUSTOMER FINANCIAL STABILITY MAY DEGRADE

B2C AND B2B SEGMENT MAY SEE IMPACT FROM INCREASED UNEMPLOYMENT

TELCOS KEY ROLE IN DIGITALIZATION OF SOCIETY TO BECOME EVEN MORE VISIBLE

• Activation of identified mitigating actions if needed

Liiga write-down and pay-TV

impact on TV & Media unit and within countries

Supporting our stakeholders DURING THIS TIME

4

• Telia Crowd Insights tool used by authorities thought our footprint to fight COVID-19

• Risk management teams in place

• Keeps customers connected

• Enabling digital ways of working and home schooling

• Securing vital access to information and entertainment

Keep distance but keep contact

Data in fixednetworks

Data in mobilenetworks

Voice inmobile

networks

• Managing network usage increase

• On top of this handling 25% increased traffic for Telia Carrier

SUPPORTING AUTHORITIES SUPPORTING CUSTOMERS & SOCIETY

PROOF POINT OF BEST NETWORKSIncrease in traffic

Internal measurements taken

30-50%

10-20%

20-70%

Staff wellbeing

Security Supplychain

Networks & TV

MOBILE REVENUES SHOW POSITIVE GROWTH

5

mobile service revenue growthLike for like growth

0.9%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

SWEDEN

+1.2%FINLAND

+3.9%

NORWAY

+3.5%

• Sweden supported by additional migration and B2B

• Strong B2B development in Norway

• Between 4-7 percent growth in the Baltics

• ARPU growth in 5 of 6 markets

• Overall the result from price initiatives and good work on upsell

LIT+5.3%

EST+2.8%

DEN-0.9%

MoBile arpu GrowthIn local currency, pre and postpaid, y-o-y

GOOD MOMENTUM IN FIXED BROADBAND

6

Fixed broadband service revenue growthLike for like growth

3.3%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

• Sweden and Norway main drivers behind solid development

• Sweden: ARPU uplift and fiber intake

• Norway: Good subscription development

• OCN* penetration Q1 increased by 60,000 y-o-y, 40 percent up

• New co-operation in Finland to speed up SDU fiber roll-out

* Open city networks

KEEPING THE FRONTRUNNER POSTION WITHIN FIXEDLike for like growth

Ebitda growth in traditional telco

7

EBITDA bridge q1 2020 - GroupSEK billion, like for like, adjusted EBITDA

• Run-rate into 2020 lower as communicated

• COVID-19 impacting an already slightly weaker advertising market

EBITDA bridge Q1 2020 - TV and MediaSEK billion, like for like, adjusted EBITDA

0.3

Market and COVID-19

Q1 2019

-0.2

-0.1

Run-rate into 2020

Q1 2020

0.0

• The traditional telco business grew EBITDA by 1.7 percent

-0.2

Q1 19

0.1

Telco business

Q1 20 (ex. TV

& Media)

Items affecting

comparability

-0.3

Q1 20TV & Media

7.3

-1.4% -5.1%

Pension refund,Liiga write-down

and sold receivables

TV & MEDIA – AN EVEN STRONGER TOTAL TV POSITION

Linear csov – TV4 and mtvCommercial Share of Viewing, ages 15-64

Digital csov – tv4Commercial share of viewing, ages 3+

8

+ =INCREASED total tv

MARKET SHARE DESPITE A LARGE DISTRIBUTOR

DECIDING NOT TO OFFER PART OF OUR CONTENT

TO ITS CUSTOMERS

Market position

Source: MMS, Finnpanel Source: MMS

1.8 million total viewers including record high digital

consumption

46.3 46.238.7 40.1

Q119

Q219

Q319

Q419

Q120

Q119

Q219

Q319

Q419

Q120

-0.1 +1.5

64.1 68.3

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

+4.2

good B2C mobile & broadband revenue growth

9

Mobile subscription revenue growth - B2CIn local currency, external service revenues

Fixed broadband revenue growth – b2cIn local currency, external service revenues

• Continued B2C ARPU growth

• Subscription fees supported by migrations

5.3%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

• Added 3,000 B2C subs. net Q1 2020 (26,000 in fiber)

• Fiber price increase in Q2 2019 pushed revenue growth into positive territory

• XDSL price increase Q4 2019 amplified growth

3.0%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

OUTLOOK FOR 2020 (updated)

SEK 9.5-10.5 BILLION (PREVIOUSLY: SEK 10.5-11.5 BILLION)O P E R A T I O N A L F C F *

NO GUIDANCE DUE TO LOW VISIBILITY (PREVIOUSLY: TO GROW 2-5 PERCENT)A D J U S T E D E B I T D A *

10* Based on the Group structure at year-end 2019 (i.e. including the segment TV and Media established in December 2019) and adjusted EBITDA in stable FX

Douglas lubbecfo

Interim REPORT JANUARY – March 2020

Q1

REVENUES AND EBITDA DECLINED DUE TO TV AND MEDIA

• Growth in Sweden due to mobile and broadband

• Fixed telephony continued down in Finland

• Mobile growth in Norway offset by decline in TV

• TV and Media fell from pressure on advertising

Q1 19

LIT LAT OtherESTDENNORFIN Q1 20

SWE Telia Carrier

TV & Media

-1.0%

LATESTQ1 19 SWE FIN NOR DEN LIT TV & Media

Other Q1 20

-5.1%

• Lower pension benefit impacted Sweden

• Norway and Finland impacted by one-off items

• Revenue pressure and higher costs in TV & Media

• Positive growth in the traditional telco business

SERVICE REVENUE DEVELOPMENTLike for like growth, external service revenues

EBITDA DEVELOPMENTLike for like growth, excluding adjustment items

12

-0.9%

Q2 18 Q3 18 Q4 18 Q1 19 Q2 19* Q3 19 Q4 19 Q1 20

GRADUALLY IMPROVING B2B TREND CONTINUES

13

B2B service revenue development – all marketsOrganic growth 2018 & like for like growth 2019/2020

• Sweden and Norway main drivers

• Dedicated work on the propositions yielding

• Continued good traction in ICT and IoT

• Sweden: Product launches, NPS improvement

• Norway: Good development within Public and SME

• Finland: ICT growth supported

* Q2 2019 positively impacted by one-off like revenues in Sweden

-1.2%(-1.5% FY19)

+2.3%(-2.5% FY19)

-0.4%(-0.7% FY19)

Q1 2020 Q1 2020 Q1 2020

COST AGENDA 2020 STILL IN FOCUS

OPEX developmentExternal expenses, like for like, including an estimated 2% cost inflation

3%

-6%

-4%

-2%

0%

2%

4%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

• OPEX increased 3 percent largely due to:

• Less pension refund contribution in Sweden

• Overall increased need of staffing in customer care

• Higher credit losses in particularly Norway and Sweden

• IT and resource costs in TV and Media

• Adjusted for pension refund OPEX grew by ~2 percent

• Activities ahead

• Resources in all markets - both employees & consultants

• Marketing spend to be calibrated

• Common Products and Services to step up in H2

• The longer the pandemic lasts the execution risk increases

14

Improved revenue trend

• Stable trend in B2C and less drag from OTC Q1

• Sequential improvement in B2B driven by mobile

B2C

SERVICE REVENUE DEVELOPMENTIn local currency, external service revenues

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

B2C excl. fiber OTC B2B B2C+1.2%

-1.2%

+0.7%

Adjusted EBITDA DEVELOPMENTLike for like growth excl. IFRS 16 impact 2019

• Sweden slightly negative as revenue growth and cost measures were offset by mainly

• less pension benefit (SEK 100 million)

• higher resource costs in customer service

• Growth of 2.4% if adjusting for pension15

Pension refund and easy comparison

B2B 3%

-0.7%

6%2.4%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

LIIGA CANCELLATION AND FIXED TELEPHONY IMPACTED

3,273 3,302

1,169 1,156

Q1 19 Q1 20 Q1 19 Q1 20Service revenues EBITDA

-1.4%

• Mobile subscription revenues grew while fixed telephony continued to burden

• SEK 40 million negative EBITDA impact from cancellation of the Liiga season

= Like for like growth

SERVICE REVENUES & ADJUSTED EBITDASEK million in reported currency & like for like growth

-3.3%

• Mobile subscriber revenue growth driven by ARPU

17

18

19

20

21

22

2,800

2,900

3,000

3,100

3,200

3,300

3,400

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Subscriptions Postpaid ARPU

+4.5%

= ARPU growth y-o-y

MOBILE SUBSCRIPTIONS AND postpaid ARPUTotal subscription base in 000’, postpaid ARPU in local currency

16

1,900

2,100

2,300

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Subscriptions Postpaid ARPU

3,119 2,964

1,516 1,387

Q1 19 Q1 20 Q1 19 Q1 20

FLAT MOBILE SUBSCRIPTION DEVELOPMENT

-4.3%

-0.7%

• Mobile revenues grew from solid B2B performance

• EBITDA Q1 2019 positively impacted by sale of impaired customer receivables

• SEK 35 million increase in credit losses in Q1 2020

• Postpaid ARPU grew slightly

• OneCall continues to show subscriber growth

• Growth in B2B revenues from strong mobile

SERVICE REVENUES & ADJUSTED EBITDASEK million in reported currency & like for like growth

Mobile subscriptionsTotal subscriptions & postpaid ARPU in local currency

= Like for like growth

Service revenues EBITDA

17

+1.3%NOK 275

NOK 300

= ARPU growth y-o-y

345 373

272 290219 231

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Estonia Lithuania Denmark

Q1 19 Q1 20Estonia

Q1 19 Q1 20Denmark

+4.1%

Q1 19 Q1 20Lithuania

Strong performance in led

+5.6%

+3.0%

-1.6%

+6.0%

+7.3%

• Solid performance for both mobile and fixed revenues in Lithuania and Estonia

• Denmark improved as mobile growth turned neutral

• Growing revenues supported EBITDA in the Baltics

• Better on revenues and another great quarter on costs in Denmark

SERVICE REVENUE DEVELOPMENTLike for like growth, external service revenues

Adjusted EBITDA DEVELOPMENTSEK million in reported currency & like for like growth

= Like for like growth18

TV & MEDIA – TEMPORARY SPORTS CHALLENGE

• All sport packages priced in line with base package

• Price changes also impacts all other markets

• All time high consumption on recently launched series

Reduced prices from cancelled sportsIn SEK and EUR

• Q4 supported by 60,000 free subscriptions added during December conflict – of which half have continued as paying customers in Q1

• Subscriber base maintained despite sport cancellation due to strong overall content portfolio

Stable subscription base despite challengesSVOD subscriptions in ’000

0

200

400

600

800

Q4 2019 Q1 2020

449:- 349:-

199:- 139:-139:-

€ 29.95 € 24.95

€ 12.95€ 12.95

Original price Temporary price

19

Cash flow from ebitda less capex is growing

02468

101214

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

OPERATIONAL FREE CASH FLOW developmentSEK billion, rolling twelve months

SEK 11.5 billion

OPERATIONAL FREE CASH FLOW Q1SEK billion

Tax

-0.2

Q1 2019

0.3

EBITDA less

leasing*

-0.3

WC

-0.4-0.5

Other Q1 2020

4.4

3.3

CAPEX ex.

licenses

-1.1

• EBITDA less CAPEX grew by 3 percent

• Still positive on WC although slightly less than LY

• Tax negative due to tax refund LY

• Less support from pension refund vs. LY* Repayment of lease liabilities20

net debt and leverage decreased

• Net debt decreased driven by operations and EUR 0.5 billion green hybrid bond issuance

• Buy-backs finalized (in total 6% of shares bought back)

• FX movements increased leverage

• First dividend tranche of SEK 3.7 billion in April

• Bonnier Broadcasting earn-out of maximum SEK 0.8 billion

• The remaining 50% (SEK 0.2 billion) in dividend from Turkcell Holding

3.01.0

1.5

Green hybrid

CashCAPEX

Buy-backs

88.1

Q4 19

-7.2

Operations

-2.6

FX & other

83.7

Q1 20

2.71x

2.62x

= Leverage ratio (multiple, rolling 12 months including a full 12 months of Bonnier Broadcasting)

NET DEBT DEVELOPMENTContinuing and discontinued operations, SEK billion and leverage ratio

21

Capital structure in focus

22

Rating confirmed by Moody’s

EUR 0.5 billion green bond issued

Liquidity FURTHER SUPPORTED by a new credit facility of SEK 4 billion

Lowered Dividend

“committed to keep long-

term solid investment

grade”

Q&A

DISCLAIMER & FORWARD-LOOKING STATEMENTS

This document contains the use of alternative performance measures (APM’s) to provide readers with additional financial information that is regularly reviewed by management, such as adjusted EBITDA, CAPEX and operational free cash flow. These APM’s should not be viewed as a substitute for Telia Company’s IFRS based figures, but as a complement. APM definitions can be found in Telia Company’s interims reports and Annual and Sustainability Report 2019 and may be defined differently by other companies and are therefore not alwayscomparable to similar measures used by other companies. Telia Company’s management considers these APM’s combined with IFRS performance measures and in conjunction with each other, the most appropriate way to measure the performance of Telia Company.

Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia Company.

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