#122222 Q2 Interim report January - June 2021#2GROUP HIGHLIGHTS 2 ● ● ● ● ● ● ● ● Growth in both service revenues and EBITDA Mobile subscription service revenues return to growth TV & Media recovery accelerated OPEX stable despite cost mitigation last year Stable CAPEX Strong OFCF generation, now SEK 6.1bn YTD Telia Carrier transaction closed Finland and Norway towers transaction announced Leverage at low end of the targeted range SEK billion Service revenues OPEX change Adjusted EBITDA Cash CAPEX excl licenses & spectrum* OFCF* Proforma leverage** * In reported SEK ** Assumes the towers transaction was already closed June 30, 2021 (and compared to March 31, 2021 leverage including Telia Carrier proceeds) Q2 2021 18.9 -0.2 7.7 3.4 2.1 2.07x Change LFL vs Q2 2020 +3.2% 0.0% +1.9% 0.0 -6.6% -0.22x#3STRATEGY HIGHLIGHTS I 3 Customer satisfaction and NPS broadly stable Converged customer base growing with low churn Sweden: added 25k converged customers ● INSPIRING OUR CUSTOMERS ● Norway: added 7k converged customers Finland: added 32k converged customers One of only five global operators bundling Netflix Enterprise segment highlights ● Mobile growth driven by Sweden, Norway and the Baltics Sweden and Norway both sign largest deals ever, with Region Skåne and the Norwegian postal service TV & Media viewership continues to grow CSOV: Sweden +2.1ppt to 56.8%, Finland +2.7ppt to 43.2% C More OTT revenues grew by 75% L Network modernization and 5G roll-out continues 5G population coverage grew by 1/3rd 5G leader in Sweden, Norway, Estonia and Lithuania 5G now available in Sweden's top 22 cities, and 3rd party test proves Telia is clear 5G leader in Stockholm Speed records broken in both Finland and Sweden Sole 5G provider in Estonia Three independent surveys, incl umlaut, confirmed Telia to be the mobile network leader in Sweden Decommissioning legacy 47% of 3G traffic migrated to 4G vs. Q2 2020 SEK 80m cost reduction in Sweden from legacy migration ● ● ● ● CONNECTING EVERYONE ● Telia Asset Management announced towers transaction with Brookfield and Alecta#4STRATEGY HIGHLIGHTS II ● S TRANSFORMING TO DIGITAL Transformation program progressing to plan Headcount reduction on track with 450 exited YTD IT transformation ● ● ● Product and process simplification ● ● Supplier consolidation started, reducing first 29 to 4 strategic partners, worth SEK 750m over next 5 years Near-shoring initiative progressing well SEK 45m cost reduction in the quarter ● Extended partnership with ServiceNow Increased use of common products >75 legacy systems and >20 product lines decommissioned TV & Media digitalization Digital ad revenues growing exponentially, +177% d DELIVERING SUSTAINABLY Financial target progression ● ● ● Responsibly driving market growth through multiple levers Sustainability progress ● Service revenues and EBITDA growth Roughly 75% of minimum dividend covered by H1 OFCF ● Stability in structural elements of FCF Balance sheet strength from Carrier proceeds and announced towers transaction Selected as a European Climate Leader by Financial Times Launch of new pan-industry Eco Rating of mobile phones Awarded highest level (Golden) in Estonian Responsible Business Index#5SWEDEN FINANCIALS LO Service revenues Reported currency, in millions, like for like growth -1.8% 7 469 5 7 286 7544 Q2 20 Q3 20 Q2 21 ■Consumer Enterprise Other * 7 233 Q4 20 7 336 Q1 21 Service revenues split Reported currency, in millions, like for like growth +2.0% 6 650 LLLLL 1 018 920 Copper legacy = Fixed telephony and xDSL 6 451 6 366 Service revenues declined 1.8% (SEK 135m), of which copper related (SEK 171m) Underlying service revenues, ex copper and one offs, up 2.0% Consumer segment stable, with mobile growing 2.1%, excl 2020 one-offs 6 441 Q2 Highlights Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 EO-items Roaming Copper legacy* Underlying ● ● 6 580 ● 756 Adj EBITDA Reported currency, in millions, like for like growth -0.2% 3 316 3 433 3 359 Q2 20 Q3 20 Q4 20 3 235 Q1 21 Adj EBITDA 3 308 Q2 21 Enterprise segment declined 1.4%, with mobile growing 2.5% OPEX reduced by 4.1% EBITDA stabilized, despite legacy declines accelerating#6SWEDEN KPIs ● Mobile postpaid subs and ARPU Subscriptions 000', ARPU in SEK ● 241 242 241 Q2 20 Q3 20 4 103 4 120 239 Q4 20 Postpaid ex M2M 4129 4 096 4103 244 Q1 21 Q2 21 -ARPU Consumer postpaid base growing Enterprise base stable ARPU growth in both Consumer and Enterprise 309 337 Broadband subs and ARPU Subscriptions 000', ARPU in SEK |-- I 929 Q2 20 310 309 946 315 282 259 +7% 960 314 Q3 20 Q4 20 Fiber and FWA 977 Q1 21 314 232 994 Q2 21 Copper Q2 Highlights Consumer BB base relatively stable - fiber off-setting copper decline ARPU supported by xDSL pricing in June 161 901 TV subs and ARPU Subscriptions 000', ARPU in SEK 168 171 919 929 Q2 20 Q3 20 Q4 20 Subscriptions 175 935 Q1 21 Solid growth in IPTV subs in both MDUs and SDUs -ARPU 174 949 Q2 21 ARPU back to pre-pandemic levels#7FINLAND 3 233 ● Service revenues Reported currency, in millions, like for like growth -1.6% Q2 20 Q3 20 ■ Consumer ● N 3 085 3 231 2 991 3 017 Q4 20 Q1 21 Enterprise Q2 21 Other Adj EBITDA Reported currency, in millions, like for like growth -9.1% 1 280 1 223 1 1154 Q2 20 Q3 20 Q4 20 Service revenues declined 1.6% (SEK 50m) due to mobile, regulation and ICT/Business solutions Consumer segment stable, TV growth offsets mobile decline Enterprise segment impacted by lower ICT business solutions, while mobile is stable Adj EBITDA Q2 Highlights ● 1 070 ● Q1 21 ● 1 046 Q2 21 Mobile postpaid subs and ARPU Subscriptions 000', ARPU in EUR 19.1 18.9 2774 2763 Q2 20 Q3 20 19.3 18.8 18.8 2 750 2 747 2779 Q4 20 Postpaid ex M2M Q1 21 Q2 21 ARPU OPEX increased by 3.6% as certain cost items returned 5G subscriber base continues to grow, now at more than 100k CMore now Finland's second largest pay streaming service (after Netflix)#8NORWAY 2760 ● Service revenues Reported currency, in millions, like for like growth -1.5% ● OO 2 851 Q2 20 Q3 20 Q4 20 ■ Consumer 2763 2 756 2 827 Q1 21 Q2 21 Enterprise ■ Other Adj EBITDA Reported currency, in millions, like for like growth -2.9% 1510 1 643 Q2 20 Q3 20 Service revenues declined 1.5% (SEK 43m) due to ICE contract (SEK 67m) EBITDA down 2.9% (44m) mainly due to ICE contract OPEX increased by 4.4% as certain cost items returned 1523 1 543 Q4 20 Adj EBITDA ● Q1 21 Q2 Highlights 1 530 Q2 21 Mobile postpaid subs and ARPU Subscriptions 000', ARPU in NOK 266 1 860 Q2 20 277 273 1 857 1846 Q3 20 Q4 20 Postpaid ex M2M 267 1864 Q1 21 269 1879 Q2 21 -ARPU Consumer growth is broad - mobile customer base and ARPU both growing, BB growing high single digits, TV +ve net intake Enterprise segment growth driven by mobile Enterprise customer wins: Norwegian postal service and renewal with national broadcaster NRK#9LED MARKETS Lithuania Reported currency, in millions, like for like growth +5.5% 804 780 788 781 811 ● Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 Service revenues +3.7% 375 380 370 368 370 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 EBITDA Service revenues and EBITDA developing positively Growth of mobile (+5.2%) and fixed (+5.9%) Consumer segment growing 11% (driven by mobile), enterprise stable Estonia Reported currency, in millions, like for like growth +6.1% 655 649 643 642 665 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 Service revenues 281 +12.0% 302 281 292 299 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 EBITDA Q2 Highlights Service revenues and EBITDA developing positively Mobile turned to growth (1.9%) while fixed growth accelerated (8.8%) Growth in both consumer and enterprise segments Denmark Reported currency, in millions, like for like growth 992 966 965 ● -1.2% ● Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 Service revenues 921 937 255 -8.1% 274 269 216 221 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 EBITDA Service revenues declined as Fixed continues to burden Mobile turned to growth (2.1%) EBITDA temporarily impacted by lower equipment margin#10TV & MEDIA 1582 1633 Service revenues Reported currency, in millions, like for like growth ● 10 +45.1% 2 340 1904 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 TV Advertising Other 2 271 Adj EBITDA Reported currency, in millions, like for like growth 311 249 +84.7% Service revenues grew 45.1% from growth in both Advertising (42.9%, SEK 454m) and Pay (57.7%, SEK 277m) 200 Q2 20 Q3 20 Q4 20 ■Adj EBITDA EBITDA up SEK 264m as higher content costs were more than offset by revenue growth OTT subscriber growth from Sport, with strong ARPU trend Q2 Highlights 120 ● Q1 21 ● 575 Q2 20 116 138 439 C More subs and ARPU Direct OTT subscriptions 000', ARPU in SEK 156 163 Q2 20 ISWE 144 179 445 Q3 20 217 FIN Q4 20 146 210 537 528 Q1 21 DEN 202 Usage on digital platform continues to increase (+25%) UCL will drive increased content costs in 2nd half of 2021 564 Q2 21 -ARPU Advertising recovery driven by demand returning, increased inventory and higher pricing#1122222 Q2 Interim report January - June 2021#12SERVICE REVENUES 12 19.1 ● Q2 20 Service revenues development SEK in billions, in reported currency, like for like growth 18.7 OUTLOOK Q3 20 Consumer +3.2% 19.8 18.7 Q4 20 Q1 21 Enterprise Other 18.9 • Growth driven by TV & Media, but also improving trends in mobile • Consumer service revenues grew by 0.5% excl. TV & Media Enterprise service revenues flat excl. TV & Media • Service revenues growth YTD of +0.4% Q2 21 Service revenues bridge Like for like growth +3.2% Q2 20 SWE FIN NOR DEN LIT EST 2021: Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 73.0bn) 2021-2023: Low single digit growth in stable fx excl. Telia Carrier TVM Other Q2 21 • Sweden impacted by legacy decline • Pressure on mobile and fixed revenues in Finland • Lower wholesale revenues in Norway • Solid growth in the Baltics - strong recovery for TV & Media#13OPERATIONAL EXPENSES 13 ● ● -4.0% Q2 20 OPEX development Operational expenses, y-o-y, like for like growth -2.9% Q3 20 2.9% Q4 20 -3.0% Q1 21 0.0% Q2 21 OPEX increase in Finland and Norway compensated by Sweden Impact from transformation and resource reduction increasingly visible ahead. OPEX lower by 1.6% YTD ● Resources OPEX bridge Like for like growth Q2 20 Marketing Structural resource costs decline by SEK 100m offset by salary inflation, return of certain cost items and temporary investments in areas such as customer support +0.0% To reduce OPEX by SEK 2bn until 2023 and by SEK 4bn until 2025 Other Q2 21 • Other cost reduction from lower IT and bad debt, partly offset by higher energy costs#14EBITDA 14 7.7 ● Q2 20 Adjusted EBITDA development SEK in billions, in reported currency, like for like growth 8.2 OUTLOOK Q3 20 +1.9% 7.5 Q4 20 7.2 Q1 21 7.7 EBITDA growth driven by service revenues and improved equipment margin partly offset by higher content costs • EBITDA growth YTD of +2.0% Q2 21 Adjusted EBITDA bridge Like for like growth ● +1.9% Q2 20 SWE FIN NOR DEN LIT • Sweden stable • Finland hurt by lower revenues and higher OPEX Norway growing excluding wholesale burden • TV & Media supported by revenue recovery EST TVM Other Q2 21 2021: Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 29.8bn) 2021-2023: Low to mid single digit growth in stable fx excl. Telia Carrier#15CASH CAPEX 15 14 13 12 Cash CAPEX development Reported currency in SEK billion, excluding licenses and spectrum fees, R12 Q2 20 Q3 20 OUTLOOK Q4 20 Q1 21 Q2 21 13.4 • Cash CAPEX R12 to net sales at SEK 13.4bn or 15.1% • Cash CAPEX to gradually increase going forward • Main risk relate to COVID-19 delays and supply chain issues ● Cash CAPEX by type Reported currency in SEK billion, excluding licenses and spectrum fees ● 3.4 Q2 20 3.0 4.2 Q3 20 Q4 20 Mobile NW ■Fixed NW 2.8 Q1 21 Prod dev/IT 3.4 • Increase in mobile network activities related to modernization and 5G but delayed impact on cash CAPEX Decline in fiber related investments in Sweden Slight increase in prod dev/IT due to transformation related investments 2021: Around SEK 14.5-15.5bn (excl. Telia Carrier and license and spectrum fees) 2023: Return to around 15% of net sales by 2023 (excl. Telia Carrier and license and spectrum fees) Q2 21 ■ Other#16OPERATIONAL FREE CASH FLOW 16 ● 42086 ● 14 12 10 4 2 0 Operational free cash flow development Reported currency, SEK billion, R12 Q2 19 Minimum dividend level Q4 19 Q2 20 Q4 20 Q2 21 Operational free cash flow Strong cashflow R12 driven by working capital contribution • Cash flow excl working capital R12 still in line with minimum dividend commitment of SEK 8.2bn Operational free cash flow YTD of SEK 6.1bn 12.7 Ex NWC contr. 8.2 Q2 20 ● Operational free cash flow bridge Reported currency, SEK billion EBITDA -6.6% Cash Intr./tax Other NWC CAPEX Phasing effects impacting both tax and interest costs • Other increased due to business transformation and M&A • Net working capital impacted by vendor financing Q2 21 2021-2023: The operational free cash flow is expected to cover the minimum dividend commitment throughout the period From 2022: Operational free cash flow excl change in NWC is expected to cover the minimum dividend commitment#17TOWER TRANSACTION SUMMARY 17 RATIONAL TRANSACTION DETAILS TIME LINE Transaction fully in line with plans from the Investor Brief in January Crystalizing infrastructure value Bringing in operational excellence from experienced partner Brookfield and Alecta acquired 49% of Telia Company's tower business in Finland and Norway The price for the 49% equals a full enterprise value of EUR 1,524 The EV corresponds to an EV/EBITDA of 27x 2020 Total cash proceeds to Telia Company amounts to EUR 722 million Net debt to EBITDA for Telia Company including tower proceeds 2.07x The transaction involves 4,700 number of towers with total revenues of EUR 88m and EBITDA of EUR 56m in 2020 (post leasing) Impact on Telia Company operational free cash flow will be marginal The transaction is expected to close in the fourth quarter of 2021 and is subject to regulatory approval#18NET DEBT AND LEVERAGE 2.52x 77.2 -6.2 18 Net debt and leverage development Reported currency, SEK billion and leverage ratio Q1 21 Opera- tions 3.5 -8.0 -8.6 4.1 = Leverage ratio (multiple, rolling 12 months) -0.7 2.32x 69.2 Cash Carrier Dividend Other Q2 21 CAPEX proceeds -7.3 2.07x 61.9 Tower Q2 21 proceeds proforma • Positive impact on net debt and leverage Q2 from Telia Carrier proceeds ● ● Excluding Telia Carrier proceeds net debt is fairly unchanged as first dividend tranche was paid in Q2 Proforma leverage Q2 of 2.07x (including the tower proceeds) Net debt/ adjusted EBITDA in the range of 2.0-2.5x#19OUR OUTLOOK (UNCHANGED) 19 2021-2023 SERVICE REVENUES Low single digit growth in stable fx excl. Telia Carrier Adjusted EBITDA Low to mid single digit growth in stable fx excl. Telia Carrier CASH CAPEX Return to around 15% of net sales by 2023 (excl. Telia Carrier and license and spectrum fees) 2021 SERVICE REVENUES Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 73.0bn) Adjusted EBITDA Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 29.8bn) CASH CAPEX Around SEK 14.5-15.5bn (excl. Telia Carrier and license and spectrum fees)#2022222 Q2 Interim report January - June 2021#21Q2 2021 IN SUMMARY... 21 ● ● ● ● ● ● Continuing to deliver in line with expectations and outlook Mobile returned to growth in 6 out of 7 countries Good momentum in Sweden, Norway and the Baltics TV & Media recovery accelerating, and preparing for full potential Good progress made on our strategic priorities Telia Carrier transaction closed First tower transaction announced Outlook for 2021 unchanged Clear roadmap to create a Better Telia and generate attractive shareholder returns INSPIRING OUR CUSTOMERS D CONNECTING EVERYONE ~ TRANSFORMING TO DIGITAL DELIVERING SUSTAINABLY#2222222 All Q&A#23DISCLAIMER & 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 2020 and may be defined differently by other companies and are therefore not always comparable 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.