#1BRUDKAUPIÐ MITT Investor Presentation Q1 2022 Orri Hauksson and Óskar Hauksson 26 April 2022#2Operation#3Income Statement Income statement Q1 2022 2021 Change % Net sales Cost of sales Operating expenses 6.093 6.018 75 1,2% (3.762) (3.783) 21 -0,6% (1.757) (1.731) (26) 1,5% EBIT 574 504 70 13,9% Net financial items 92 (31) 123 -396,8% Income tax (113) (97) (16) 16,5% Net profit from continuing operation 553 376 177 47,1% Discontinued operation 193 2.508 Net profit 746 2.884 (2.138) (2.315) -92,3% -74,1% EBITDA 1.327 1.274 53 4,2% EPS 0,08 0,34 (0,26) -76,5% Revenue EBITDA EBIT 6.464 6.018 6.124 5.937 6.093 26,6% 13,7% 21,2% 22,2% 8,4% 9,1% 9,4% 19,8% 21,8% 5,8% 1.627 840 1.274 1.318 1.283 1.327 543 504 574 373 Q1 21 Q2 21 Q3 21 Q421 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 2022 Revenue increase from Q1 2021 Mobile revenue increases by almost 9% Revenue from TV services increases by almost 3% Equipment sales decrease from Q1 2021 Gross Profit increases by 3.5% • Operating profit increases by 14% EBITDA increases by over 4% Total cost remains the same between periods Profit from continued operations increases by 47% - 17% if adjusted for ISK 113 million capital gain on sale of shares in Auðkenni. - Changes in capital structure in first half of 2021 reduce financial income at Síminn.#4Revenue by segments Segments Q1 2022 2021 Change % Mobile 1.413 1.300 113 8,7% Fixed voice 378 406 -28 -6,9% Internet & network 1.858 1.859 -1 -0,1% TV 1.673 1.625 48 3,0% Equipment sales 449 518 -69 -13,3% Other revenue 322 310 12 3,9% Total revenue 6.093 6.018 75 1,2% Mobile Internet & network TV 1.484 1.458 1.859 1.833 1.825 1.825 1.858 1.413 1.625 1.644 1.673 1.362 1.570 1.544 1.300 Other segments 1.537 1.234 1.271 1.172 1.149 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q421 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q421 Q1 22#5Operation in Q1 2022 Improvement in performance between years • . • • EBITDA increases by 4.2% from Q1 2021 Operating income increases YoY Mobile revenues increase by almost 9%, which is related to the success of prenna and increased SMS wholesale. Roaming income from Icelanders abroad increases significantly but a small increase from tourists in Iceland. ⚫ TV still growing - advertising revenue increases. Data revenue remains at similar levels. Operating profit increases by ISK 70 million YoY Depreciation unchanged between periods. Profit from continued operations increases by almost ISK 180 million Capital gain from the sale of shares in Auðkenni was ISK 113 million. Síminn had interest income of ISK 16 billion financing to Míla in Q1 2021. Míla was refinanced with an external loan at the beginning of Q2 2021 and all financing from Síminn was discontinued. • • Wage costs increase by ISK 48 million or 4.7% Most of this is due to layoffs in Q1 2022. The largest cost items unchanged between periods • • Advisory fees reduced significantly. . Marketing costs increase but sales costs decrease. ⚫ The cost related to the sale of Míla is booked as prepaid • cost Will be netted against the capital gain when the transaction is completed. The effect of discontinued operations on Q1 2022 is solely due to Míla's operations • Q1 2021, in addition to Míla, included Sensa's operations and Sensa's capital gains.#6Balance Sheet and Cash Flow#72017 17.713 15.985 Net interest bearing debt with lease liabilities 21.246 20.783 4.785 2018 2019 2020 2021 Q122 Balance Sheet 1.227 923 Current liabilities Accounts receivables... 2.189 2.234 Bank loans.......... Other current assets....... 3.587 3.082 Accounts payables........ Cash and cash equivalents.. 3.759 3.509 Current maturities of borrowings.. Assets held for sale... 37.232 36.929 Current assets 47.994 46.677 Other current liabilities.... Liabilities held for sale........ 4.486 Assets Non-current assets Property, plant and equipment.. Right-of-use assets...... 31.03.2022 31.12.2021 Equity and liabilities 31.03.2022 31.12.2021 Equity 2.123 716 2.219 Intangible assets..... 19.055 19.403 Other non-current assets. 753 Total equity..... Non-current liabilities Borrowings... 30.895 31.079 5.946 5.943 544 Non-current assets 22.438 675 23.050 Finance lease... 617 653 Deferred tax liabilities... 502 604 Current assets Inventories.. Non-current liabilities 7.065 7.200 Total assets 70.432 69.727 Equity ratio 59,9% 59,8% 55,9% 57,2% 44,6% 43,9% Illu 2,06 1,83 Net debt with lease liabilities to EBITDA* 2017 2018 2019 2020 2021 Q122 2017 2018 2019 2020 2021 Q122 2,02 1,94 0,87 0,81 8,9% 9,1% %8'8 1.500 1.518 2.700 2.141 182 180 2.154 1.783 25.936 25.826 Current liabilities 32.472 31.448 Total equity and liabilities 70.432 69.727 8,6% Return on Equity 16,9% 9,7% 2017 2018 2019 2020 2021 Q122 * Without government fine in 2020 Lease liabilities included from 2019#8Cash Flow Cash Flow Cash flow from operating activities Operating profit Operational items not affecting cash flow: Depreciation and amortisation.... Gain on sale of fixed assets......... Q1 2022 Q1 2021 574 504 753 770 (4) 1.323 1.273 (1) Balance sheet and cash flow Míla's assets are classified as asset held for sale in the balance sheet Inventories increase between periods ⚫ Temporarily high inventory of CPE's (Routers and set-top- boxes). • Close to ISK 300 million increase in TV content inventory. • Cash and cash equivalents increase significantly YoY due to changed capital structure Share buyback increase by ISK 200 million. Low CAPEX in Q1 this year - will increase in Q2 • Partly due to discounts in previous periods. ⚫ The broadcasting right for the English Premier League was partly paid in Q1 2021 - no payment this year. ⚫ Síminn's long-term loans are without installments Changes in current assets and liabilitites...... 313 1.234 Cash generated by operation 1.636 2.507 Net interest expenses paid during the period.. Payments of taxes during the period......... (25) (115) (139) (220) Net cash from operating activities 1.472 2.172 Investing activities Net investment in property, plant and equipments.. Other investment......... (255) 7.007 33 (95) Sale of subsidiary and discontinued operation....... 0 (8.394) Investing activities (222) (1.482) Financing activities Purchase of own shares.... Payment of long term lease. (930) (749) (46) (43) Net Financing activities.......... (18) 71 Financing activities (994) (721) Increase (decrease) in cash and cash equivalents Translation effects on cash....... 256 (31) (6) Cash and cash equivalents at the beginning of the year... 3.509 (7) 735 Cash and cash equivalents at the end of the period...... 3.759 697#9CAPEX#10CAPEX Excluding Míla 1.757 3.462 2.870 2.151 Fa. MIND 4.300 -4.600 ACD 4.D SPÁ 58.50000 29.000 2.000 2.AMID 12,6% 9,4% 8,4% 1.º (XX) 11.00 5,5% 746 4,2% 100 490 538 328 255 2018* 2019 2020 2021 2022 ■ CAPEX Q1 CAPEX Q2-04 Guidance ● CAPEX/Revenue Q1 92% Q1 2022 8% ■ Síminn Other Q1 2022 17% Síminn's CAPEX will increase considerably this year, which is a temporary operation Due to the increased cost of TV rights to the English Premier League and as it is now the first year of a new contract (front-loaded investment). A new contract will become investment in Q3 2022. The first payment was in 2021, but nothing is paid for the right in 2022. 1. Due to increased investment in Síminn's internal systems. The projects are related to new income opportunities, e.g., TV market and Síminn's digitalization. 2. Excluding these temporary increase, investments in traditional fixed assets and other TV content rights are ISK 2.3 to 2.6 billion 8% 61% 13% ■Networks TV CPE's BSS Other * Restated according to changes made to treatment of TV right.#11Highlights#12. • • • Changed Organizational Structure Changes aimed at increasing flexibility to adjust to market changes The new structure will mean shorter communication channels, promote open communication, diversity and quicker decision making. • Special emphasis on sustainability and self-service. Two new managers hired . Sales and service. Sustainability and culture. Two other new divisions - instead of older divisions - will emerge as a part of the change • Media and marketing. Digitalization. Finance for the most parts unchanged Middle management will decrease in connection with the changes and operational efficiency will increase The new structure will take effect no later than 1 June CEO Legal Sales and services Digtialization Media and marketing Finance Sustainability and culture VALUES VISION Progressive Simplicity To be leading in digital solutions that creates the happiest customers MISSION WE CREATE OPPORTUNITIES STRATEGIC OBJECTIVES CONTINUOUS IMPROVEMENT PROFITABILITY OF OPERATIONS CUSTOMER SATISFACTION#13Innovation and development . • Magnificent March held for the second time • Innovation competition among employees. . Many new projects presented and decided to continue with 9 of them. Voice control in Icelandic was last years winning proposal. Reddum málinu is a collaboration with Almannarómur and Reykjavík University Voice control in Icelandic • Magnificent March winning project from last year. • In test phase. • Collaboration with Reykjavík University and Almannaróm. Digitalization accelerated Organizational changes together with increased investments in digital development in the coming months are intended to increase the agility and speed of product development and thus prepare the company for a changed operating environment following the sale of Míla. Reddum Málinu!#14• 20004 Síminn TV at the forefront Strong position in national programming Subscribers to Síminn Premium TV enjoy a variety of domestic programs such as Brúðkaupið mitt, Tilraunir með Vísinda Villa, Morð í norðri, Tulipop, Ræktum garðinn, Venjulegt fólk and Heima með Helga. Among Icelandic TV stations Síminn is the largest investor in content from independent content producers. Two new series will be produced this summer. Venjulegt fólk The fifth series will be produced this summer, as well as a Christmas episode. An Icelandic series has never lasted four series. English Premier League View has increased significantly over the last three seasons. In August 2022, the first season of new contract period with the Premier League begins. Brúðkaupið mitt A sequel to Jarðarförin mín. The entire series premiered in Síminn Premium TV this Easter. The episodes have already reached over 100,000 views. VÖLLURINN . Tilraunir mea Vísinda Villa#15FinTech, loyalty programs and lifestyle app • All operations related to Síminn's fintech solution was transferred to a subsidiary in the beginning of the year. The company's name is Síminn Pay ehf. and is fully owned by Síminn. • There has been steady increase in lending since the product was launched in May 2019. • The operation is sustainable, and the company is profitable. 60 1.370 Total loans in end of quarters (M.ISK) 1.260 420 320 340 220 800 670 590 950 ⚫ Síminn will expand its product range in the coming months. Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Greiðslukort Dreifðu greiðslum med Siminn Pay Léttkaup Nýttu þér tilbod frá fjölmörgum Léttu þér matinn med Siminn Pay Leggðu í Stædi med Síminn Pay- engin aukagjöld! Styrktu gott málefni med Siminn Pay Velkomin i Siminn Pay appid! söluaðilum Torg Greidslukort Veitingar Godgerdamil • The registered users of the Síminn Pay app are now 59 thousand. Torg Pay Pay Let Pay 团 Gjaldad 4 5 min : 23 sek#16Míla#17The sale of Míla is awaiting approval from the competition authority • For review · • Síminn signed last October an agreement for the sale of all its stake in Míla. The buyer is Ardian, a leading infrastructure investor in Europe. The value of the transaction is ISK 78 billion and estimated sales gain of just over ISK 46 billion. Síminn will be paid ISK 44 billion at closing in cash and ISK 15 billion with a 3-year bond. A 20-year wholesale agreement was agreed between Síminn and Míla. Ardian has invited Icelandic pension funds to participate in the acquisition. • The Competition Authority is reviewing the transaction The Competition Authority announced on 14 March that the merger required further investigation. The deadline has begun to expire at that date and is in total 90 business days or until 27 July. Agreement with the state Negotiations between the government and representatives of Míla, Síminn and Ardian to ensure that Míla's operations are in line with national security interests in the new ownership of non-residents resulted in agreement last December where Míla undertakes certain requirements due to operations of their important network. This confirms that Míla's communications network meet the state's requirements for national security, and it can therefore be said that Míla's systems are the most secure electronic communications systems in the country.#18Key figures from Míla's operations Key Figures Q1 2022 2021 Change % Operating income. 2.128 2.136 (9) -0,4% Operating expenses. (873) (870) (3) 0,3% EBITDA 1.255 1.266 (12) -0,9% Depreciation........ (722) (648) (74) 11,4% EBIT 533 618 (85) -13,8% Financial items..... (290) (155) (135) 87,0% Operating profit before taxes 243 463 (220) -47,5% Taxes....... (50) (94) 44 -46,7% Profit 193 369 (176) -47,7% CAPEX. 629 602 27 4,5% Míla ⚫ Míla operation is stable between periods EBITDA similar YoY The increase in depreciation is related to Míla's acquisitions of assets from Síminn at the beginning of 2021 • There was an increase in Míla's indebtedness when the company's capital structure was changed at the beginning of Q2 2021 • Interest expenses increased as a result.#19Shareholders#20Shareholders 12,70 13,00 Share price last 12 months 12,50 12,00 11,50 10,38 11,00 10,50 10,00 9,50 9,00 8,50 8,00 20-apr-2021 20-maí-2021 20-jún-2021 20-júl-2021 20-ágú-2021 20-sep-2021 20-okt-2021 20-nov-2021 20-des-2021 20-jan-2022 20-feb-2022 20-mar-2022 20-apr-2022 Shareholders 20.4.2022 Stoðir hf. Lífeyrissjóður verzlunarmanna Position % 0/S 1.162.220.631 15,92% 1,04% 868.257.927 11,89% Lífeyrissj.starfsm.rík. A-deild 770.000.000 10,55% 15,92% Gildi lífeyrissjóður 612.192.195 8,39% Íslandsbanki hf,safnskráning 2 396.693.435 5,43% 27,19% Brú Lífeyrissjóður starfs sveit 330.650.161 4,53% Stapi lífeyrissjóður 296.751.432 4,07% 11,89% Birta lífeyrissjóður 275.446.563 3,77% Lífeyrissj.starfsm.rík. B-deild 275.000.000 3,77% Söfnunarsjóður lífeyrisréttinda 251.575.320 3,45% 3,45% Top 10 shareholders 5.238.787.664 71,76% 10,55% 3,77% Other Shareholders 1.984.965.586 27,19% 3,77% Shares outstanding Own shares 7.223.753.250 98,96% 4,07% 8,39% 76.246.750 1,04% 4.53% 5,43% ■ Stoðir hf. ■ Lífeyrissjóður verzlunarmanna ■Lífeyrissj.starfsm.rík. A-deild ■Gildi - lífeyrissjóður ■Íslandsbanki hf,safnskráning 2 ■ Brú Lífeyrissjóður starfs sveit ■Stapi lífeyrissjóður ■ Birta lífeyrissjóður ■Lífeyrissj.starfsm.rík. B-deild ■Söfnunarsjóður lífeyrisréttinda Other Shareholders Own shares Shareholders Share buyback program Repurchases amount to ISK 930 million in Q1 2022. The dividend for the year was ISK 500 million. The current plan is based on a plan announced on 14 March ⚫ The number of shareholders was 1,211 at the end of Q1 2022 and has decreased by 32 this year Síminn's shares have risen by 6.4% this year and by 21.8% over the past 12 months Total number of shares 7.300.000.000 100%#21Outlook 2022#22Outlook for 2022 Unchanged guidance • • The year is off to a good start and profit growth is healthy The outlook for the year is good and sales performance is generally strong • The increase in revenue does not keep pace with inflation Inflation is high, which inevitably puts pressure on costs Positive exchange rate developments reduces the negative effect of inflation Constantly working on adjusting operations to respond to expected cost increases#23Guidance for 2022 EBITDA CAPEX H 2022 ISK 5,3 -5,6 billion 2022 ISK 4,3 -4,6 billion Group EBITDA excl. Míla was ISK 5.502 million in 2021 Group CAPEX excl. Míla was ISK 2.503 million in 2021#24Appendix#25Business segments . • Mobile: Revenue from mobile services in Iceland and abroad, whether traditional GSM service, satellite service or other mobile service. Fixed voice: Revenue from fixed voice service (fees and traffic). Internet & network: Revenue from data service, incl. xDSL service, GPON, Internet, IP net, local loop and access network. TV: Revenue from TV broadcast and distribution and Síminn TV (fees, traffic and advertisement). • Equipment sales: Revenue from sale of telco equipment. ⚫ Other revenue: Revenue from sold telco service, IT and finance. •#26Disclaimer Information contained in this presentation is based on sources that Síminn hf. ("Síminn" or the "company") considers reliable at each time. Its accuracy or completeness can however not be guaranteed. This report contains forward- looking statements that reflect the management's current views with respect to certain future events and potential financial performance. Although the management believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The forward-looking information contained in this presentation applies only as at the date of this presentation. Síminn does not undertake any obligation to provide recipients of this presentation with any further information on the company or to make amendments or changes to this publication should inaccuracies or errors be discovered or opinions or information change. Other than as required by applicable laws and regulation. This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. Nothing in this presentation should be construed as a promise or recommendation. Statements contained in this presentation that refer to the company's estimated or anticipated future results or future activities are forward looking statements which reflect the company's current analysis of existing trends, information and plans. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors. By the receipt of this presentation the recipient acknowledges and accepts the aforesaid disclaimer and restriction.#27Empty