#1Telia Company CAPITAL MARKETS DAY 2019#22 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 2018 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.#3WELCOME & OVERALL STRATEGY 08.00 ● ● AGENDA ● Johan Dennelind, President & CEO 08.00-08.40 SWEDEN 10.30 Anders Olsson, CEO Sweden 10.30-11.10 3 SUSTAINABILITY UPDATE 08.40 NORWAY 11.10 ● Cecilia Lundin, Head of People & Brand 08.40-09.00 ● Abraham Foss, CEO Norway 11.10-11.40 COMMON PRODUCTS AND SERVICES (CPS) 09.00 ● ● Magnus Zetterberg, COO & Head of CPS 09.00-09.20 FINLAND 11.40 ● Stein-Erik Vellan, CEO Finland 11.40-12.00 ● FINANCIALS 09.20 ● ● ● CLOSING REMARKS AND Q&A 12.00 Christian Luiga, CFO 09.20-09.50 09.50-10.10 Q&A Lux Johan Dennelind, President & CEO 12.00-12.30 Q&A#4CAPITAL MARKETS DAY 2019 Johan Dennelind, President and CEO#5ENTERING A NEW ERA OF OPPORTUNITIES ), window a"}).fadeOut 3 30 e.trigger DIGITAL EXPERIENCES LO DIGITALIZED SOCIETIES 5 render AUTOMATION & INNOVATION estu ice(a) Bole er HELL BROUGHT TO YOU BY TELIA DROMES#6NEW FOCUS - REALLOCATED CAPITAL CO DIVESTMENTS 2016-2018 AROUND SEK 50 BILLION Ncell Yoigo TURKCELL ✔✔ Tcell SERGEL we care Azercell ●●● MEGAFON Spotify Kcell Ucell Geocell ACQUISITIONS 2016-2018 AROUND SEK 40 BILLION INMICS nebula phonero get cloud AINA SOLUTIONS C MORE mtv Bonnier Broadcasting expected closing H2 2019 TDC Norway 4#7THE #1 GO-TO PARTNER IN AN ATTRACTIVE REGION 7 #3 #2 #1 #2 #1 #1 #1 TOTAL POPULATION Source: Eurostat 5 33 MILLION HIGH GRADE OF DIGITALIZATION 10 IOT CONNECTIONS/CAPITA 0 2017 2018 2019 2020 2021 2022 NORDICS/BALTICS REST OF EUR Source: Telia Company STRONG MACRO ECONOMY 2-3% GDP GROWTH 2019-2020 Source: SEB 10 TOP 5 COUNTRY ESG SCORES 11 SWE DEN SUI FIN NOR 2018 OCT Source: Robeco SAM#8WINNING 2022- BUILDING THE TRUSTED AND LOVED BRAND OF TELIA The most loyal and satisfied customers in our markets Building on connectivity leadership... Best network experience across platforms VALUES 8 [Dere Dare TSR among the top relevant European peers Care PURPOSE Bringing the world closer AMBITION Simplify Industry leader in digital impact through United Nation's Sustainable Development Goals Mass-market Hub to digital experiences in homes. and offices closer to what matters to our customers... Enterprise Analytics and insights driven go-to-market and customer interaction Digitalization partner of choice FOUNDATION The most engaged employees ... based on speed, innovation and great people Rebuilding the factory through softwarization Values-driven culture, with self leadership, customer passion and cost ownership as cornerstones Ecosystems Enabling partners with new business models Cost leadership through scale and synergies A strong governance framework with best-in-class ethics and compliance#9GOOD BRAND MOMENTUM ACROSS MARKETS THE TELIA BRAND PROMISE YOUR NEW WORLD OF DIGITAL EXPERIENCES GIVING YOU THE BEST NETWORK EXPERIENCES PUTTING YOUR INTERESTS FIRST HAVING A POSITIVE IMPACT ON SOCIETY BEING YOUR HUB TO DIGITAL SERVICES POSITIVE LONG-TERM B2C NPS TREND +5 +4 +3 +6 Numbers refer to change in B2C NPS 2018 vs. 2015 +5 +11#10CONVERGENCE B2C - OUR PHILOSOPHY 10 STRONG CUSTOMER POSITION IN CORE SERVICES Increased loyalty & ARPA DRIVE LOYALTY FURTHER Pro- motors Incentive seekers. Discount seekers GROW ARPA AND ADDITIONAL SERVICES Demanding premium service and willing to pay for it Require incentives (e.g. more for more) to add additional services Require discounts to add additional services#11B2C CONVERGENCE PROOF POINTS - BALTICS B2C CONVERGENCE IN ESTONIA NPS, ARPA in EUR and churn 60 50 40 30 20 10 11 NPS 19 B2C AVG 30 B2C CONV ARPA EUR 35 B2C MOB+FIXED *Telia 1 Telia's convergence proposition EUR 50 B2C CONV 12% B2C MOB CHURN 7% 4% B2C FIXED B2C CONV B2C CONVERGENCE IN LITHUANIA ARPA in EUR and fixed BB customers having a mobile postpaid subscription 35 30 25 20 15 10 5 O ARPA EUR 28 B2C AVG TELIA 1 EUR 33 B2C TELIA1* MOBILE POSTPAID SUBS PER BB CUSTOMER 26% FEB 2018 29% CURRENT#12DEEPENING OUR CONVERGENCE - ENTERING THE CONTENT ARENA 12 س ... Enhance customer experience with data analytics into unique offerings ← € Secure key content, now and for the future Monetize on video across the entire market, not just our customers ▶ Be part of the reshaping media value chain on our terms#13CONVERGENCE B2B - MORE FOR MORE 13 STRONG POSITION IN CORE SERVICES Loyalty DRIVE LOYALTY AND PROTECT CORE REVENUES Ecosystem partner ICT Solution provider CLOUD, loT, SECURITY Connectivity provider MONETIZE DIGITALIZATION GROWTH Share of ICT spend#145G CONTRACTS AND PILOTS IN OUR MARKETS TAKING THE LEAD 14 EXAMPLES THROUGHOUT OUR FOOTPRINT VOLVO Construction Equipment storaenso 15 jet VOLVO TELIA COMPANY LEADING THE WAY IN 5G KAROLINSKA UNIVERSITY HOSPITAL FINAY Ska 5G Enc 50 NORDI#15TELIA GLOBAL AS AN INNOVATION AND GROWTH DRIVER 15 LEVERAGE TELIA CARRIER POTENTIAL SERVICE REVENUES 2015 2015 e+ 2018 2018 SEK IN BILLION DIVISION X - IOT 0.8 2018 +20% 1.0 2019 SERVICE REVENUES MULTINATIONAL CUSTOMERS 38 SELECTED CUSTOMERS SEK 1.4 BILLION IN REVENUES OTHER GROWTH DRIVERS • Telia Ventures Digital health • Data insights ● • Partner networks ● TELIA GLOBAL >SEK 200 MILLION IN ADDITIONAL EBITDA CONTRIBUTION POTENTIAL BY 2022#16NEXT PHASE OF OUR SUSTAINABILITY AGENDA - DARING GOALS FOR IMPACT 1 7 NO POVERTY 13 16 AFFORDABLE AND CLEAN ENERGY ACTION 2 ZERO 8 14 HUNGER SSS DECENT WORK AND ECONOMIC GROWTH LIFE BELOW WATER GOOD HEALTH 3 AND WELL-BEING Wo 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 15 LIFE ON LAND 4 10 16 QUALITY EDUCATION REDUCED INEQUALITIES AND STRONG INSTITUTIONS DE 5 11 GENDER EQUALITY SUSTAINABLE CITIES AND COMMUNITIES 17 PARTNERSHIPS FOR THE GOALS g 6 12 CLEAN WATER AND SANITATION RESPONSIBLE CONSUMPTION AND PRODUCTION GO ZERO CO₂ ZERO WASTE 100% ACTION Throughout the value chain Circular economy business model People of Telia#17CLEAR EFFICIENCY AGENDA COST DRIVERS ● 17 Growth initiatives Inflation 8 8 STRUCTURAL COST/CAPEX INITIATIVES ● ● M&A synergies New operating model Digital/IT transformation AROUND 2 PERCENT ANNUAL NET OPEX REDUCTION 2019-2021 CAPEX EFFICIENCES 2019-2022 GENERAL COST REDUCTIONS ● ● ● ● Country programs G&A Operational excellence Commercial excellence Sourcing excellence#18REVISING CASH FLOW SYNERGIES UPWARDS 18 Get TDC Norway NOK 800 MILLION END OF 2021#19BONNIER BROADCASTING - SOLID FUNDAMENTALS (%) 19 MARKET SHARE IN KEY AGE GROUP Sweden 15-64 years old, incl. non-commercial ● 2017 21.5 2018 23.6 TV4 (CHANNEL) 4 33.8 Source: MMS, Kantar-Sifo Orvetso 34.2 TV4 GROUP (ALL CHANNELS) 47 12 SJUAN TV4 increased absolute viewing from 23 minutes to 26 minutes in key group 15-64 years B LOCAL AVOD MARKET SHARE Sweden % (based on MMS) (%) ● 54 13 TV4 PLAY NENT GROUP 17 16 DISCOVERY AFTONBLADET NETWORKS TV TV4 Play equals the combined. market share of closest local peers TV4 GROUP TOTAL TV REACH Sweden %, both linear and AVOD (%) 65 2014 66 2018 TV4 Play more than compensate for lower linear reach#20SOLID FUNDAMENTALS DELIVERING STRONG FINANCIALS 20 FINANCIAL OVERVIEW SEK billion 7,4 NET SALES EBITA 0.4 2016 7.4 0.4 2017 8.3 1.0 2018 Source: Bonnier Broadcasting Annual Report 2018 FINANCIAL BREAKDOWN SEK billion NET SALES - TV4 - C MORE MTV EBITA - TV4 - C MORE . MTV Note: Excludes other 15.3X EV/EBITA AT ANNOUNCEMENT (EXCLUDING SYNERGIES) 2016 7.4 4.2 1.5 1.8 0.4 0.7 -0.4 -0.1 2017 7.4 4.4 1.6 1.7 0.4 1.0 -0.4 -0.3 2018 8.3 4.7 1.9 1.9 1.0 1.4 -0.1 -0.3 CASH FLOW DEVELOPMENT SEK billion, EBITA assumed to equal EBITDA-CAPEX 0.4 ■ 2016 0.4 2017 9.2X EV/EBITA 2018 (EXCLUDING SYNERGIES) 1.0 2018#21A STRONGER TELIA COMPANY EMERGING 2018 (SEK BILLION) EBITDA (margin) 21 EBITDA-CAPEX* (cash conversion) TDC Norway GET/ TDC NORWAY 1.8 43.4% 0.8 48.1% GET/TDC-NOK 800 MILLION CASH FLOW SYNERGIES END OF 2021 I I I | I BONNIER BROADCASTING 1.1** 13.8% 1.0 *** 91.3% SYNERGY BREAKDOWN * Excluding licenses ** Assuming same depreciation in 2018 as in 2017 *** Assuming EBITA equals EBITDA-CAPEX FULL RUN-RATE SYNERGIES (PER YEAR) 1.3 Broadcasting 1.4 COMBINED PRO FORMA 4.2 (prev. 3.5) > 32.5% 3.3 (prev. 2.7) 77.7% BONNIER BROADCASTING - CASH BONNIER FLOW SYNERGIES OF SEK 600 MILLION END OF 2022#22CASH FLOW TO SUSTAIN AND GROW BEYOND 2019 22 ● Convergence • Smart pricing Telia global FIGHT FOR GROWTH ● ● HOW SHOULD YOU HOLD US ACCOUNTABLE? PUSH FOR EFFICIENCY Structural reductions Cost smartness • Net OPEX reduction of 2 percent 2019- 2021 ● EXECUTION OF M&A Get/TDC NOK 800 million Bonnier Broadcasting SEK 600 million ● WISE INVESTMENTS USING OUR SCALE CAPEX coming down further ● BEST IN CLASS CASH MANAGEMENT SEK 2.4 billion remaining in working capital efficiencies#2323 CAPITAL MARKETS DAY 2019 Cecilia Lundin, Head of People & Brand 881 188#24MAKING AN IMPACT - DIGITAL IMPACT 24 B2B customers Im B2C customers M Society Sher Shareholders and investors میرا Employees Suppliers and partners ď#25SUSTAINABILITY: LET'S GET DOWN TO BUSINESS 25 1 2 3 kr Telia Crowd Insights screening millions of trips to/from/within Helsinki and Espoo Helsinki Regional Traffic invested in a new subway line to improve the problematic traffic situation Result: 8 percent less car traffic (5,700 cars) (Nov 2017-Jan 2018) Replicable and scalable, other cities are already looking to work with Telia Company to deploy Crowd Insights in traffic planning Contributing to SDG11: Sustainable cities and communities and SDG 13: Climate action#26OUR EVOLVING SUSTAINABILITY AGENDA 26 Exit Eurasia & DOJ Strategy integration O Statement of materiality Impact engagement Daring goals LEADING THE WAY#27UPPING THE GAME: OUR DARING GOALS 27 ZERO CO₂ 2 Throughout the value chain ZERO WASTE Circular economy business model 100% ACTION People of Telia#28SHAPING THE PLANET'S GREENEST TELCO ZERO ZERO WASTE 100% CO₂ ACTION 28 93% renewable energy Environment by design TODAY CO₂ as selection criteria for suppliers Digital waste strategy in place 50% employee engagement 100% renewable energy Full capacity utilization Achievements linked to employee rewards Supplier zero CO₂ plans in place Increased own renewable power Full circularity 100% employee engagement Zero CO₂ supplier base 2030#29MAKING A CHANGE ACROSS THE ECOSYSTEM 29 Telia operations Customers and Suppliers Indirect stakeholders Increased value, complexity and impact#30ALL OF OUR SUPPLIERS TO REACH ZERO CO₂ BY 2030 2 30 CO₂ as decision criterial Telia is adding CO₂ into the supplier select criteria by end of 2019 Target creation and base-line review 2019 Telia Company Policy re scoring mo adjustment Internal All suppliers to Ch Bak Cocurient ad Cabjack d CMD 2019 - Supplier letter Cooper 01 At Tela Company we highly value our cooperation with you and would like to invite you to Plan for reaching zero CO₂ I suppliers should have a plan in place for reaching the CO₂ goal (including their suppliers) before end of 2022 2 Today, Tella Company hosts a Condal Markets Day in Stockholm where the Group Executive Management presents updates on strategic direction, Financial priorities and announces new sustainability targets. Our During Goals It is widely recognized that steps must be taken in order to keep the warming of the planet under 1,5 degrees. This will not be reached by governments and public sector alone, but we in the private sector also need to put in the next gear. That's why we have taken a pledge that by 2030 at the latest, Tala Company will aim in achiave zera CC2 and zero waste. We call these green commitments our Daring Goals. Most companies in the world want to contribute to the fight against climate change and are already changing their operations to meet customers expectations. By joining forces we create value for our respective companies while also creating value for the society. Daring Gools: Implications to our suppliers As an important Tella suppler, we invite you to join us on this journey. While it is not possible to make a detailed plan until 2030, together we can develop a plan for the next 3-4 years. We believe that this will drive innovation, enable us to leam from each other, find new business opportunities and realize these goals In very practical terms this means that During 2019, Tella is adding CO2 into our supplier selection arteria By 2022 we want you to have a plan in place for reaching zero CO2 for your whole operation, including your suppliers By 2030 all Tella Company's suppliers will have reached zero 002 in their whole operations, including their supplers Johan Denneind CEO & President Tella Company Jarkko Bakk CPO, VP Sourcing & Finance Operations This is not a short-term project, but a new mindset and an integrated part of our business going forward. In some areas we have made some progress already but in many areas there is a lot of work remaining. We look forward to discussing this further in our upcoming meetings. If you have any immediate questions, please contact your sourcing contacts or Jarkko sakkigte lacompany.com to start further dialogue on our daring goals. Best regards, Alers 2030#31DARING GOALS DRIVING SHAREHOLDER VALUE 31 ZERO CO₂ 100% ZERO WASTE ACTION ● ● Positive impact on customer loyalty Sustainability is a business driver Lowering risk 2019 INCLUDED IN OP.FCF SEK 12.0-12.5 BILLION 2020 and beyond WILL SUPPORT CASH FLOW & TSR#32SHAPING THE PLANET'S GREENEST TELCO 32 TELIA GREEN COMMITMENTS Zero CO₂ Zero Waste 100% Action DIGITAL IMPACT Part of our purpose and strategy VALUE Daring goals commitment is supporting cash flow and TSR#33CAPITAL MARKETS DAY 2019 Magnus Zetterberg, COO & Head of CPS#34COMMON PRODUCTS AND SERVICES - KEY MESSAGES 34 A NEW OPERATING MODEL 5G BUSINESS DRIVEN 5G APPROACH#35WHY A NEW OPERATING MODEL - PROBLEM STATEMENT 35 POINT OF DEPARTURE ● Overlapping work in product development Inconsistency in processes across our markets Old way of working with development - release-based model Country unique architecture in value chains.#36COMMON PRODUCTS AND SERVICES (CPS) OVERVIEW OLD OPERATING MODEL GLOBAL SERVICES & OPERATIONS (GSO) COMMON PLATFORM COMMON SERVICE ASSURANCE 36 SWEDEN PRODUCTS, SERVICES AND SALES FINLAND PRODUCTS, SERVICES AND SALES NORWAY PRODUCTS, SERVICES AND SALES DENMARK PRODUCTS, SERVICES AND SALES ESTONIA PRODUCTS, SERVICES AND SALES LITHUANIA PRODUCTS, SERVICES AND SALES END- CUSTOMERS NEW OPERATING MODEL COMMON PRODUCTS & SERVICES (CPS) PRODUCT AREAS COMMUNICATION CONNECTIVITY MEDIA/ENTERTAINMENT IT SERVICES COMMON PLATFORM IT COMMON SERVICE ASSURANCE CUSTOMER FACING UNITS COUNTRY P&L END- CUSTOMERS SCALE EFFECTS IN DEVELOPMENT AND CONSOLIDATION (DEVELOP ONCE, DELIVER X6)#37NEW OPERATING MODEL TO GENERATE EFFICIENCIES IMPLEMENTING A NEW OPERATING MODEL... 37 CUSTOMER FACING UNITS COUNTRY P&L COMMON PRODUCTS & SERVICES LEVERAGE SCALE ACROSS COMPANY COUNTRY COMMON ...WITH A STRONG BUSINESS RATIONALE ● RELEVANCE AND CUSTOMER AGILITY AS KEY DRIVERS ACCOUNTABLE FOR DRIVING COUNTRY COMMERCIAL AGENDA FOCUS ON ACHIEVING PLATFORM/PRODUCT EFFICIENCY AND QUALITY ACCOUNTABLE FOR MANAGING A COMPETITIVE, MODULAR PRODUCT PORTFOLIO FOR ALL MARKETS#38MULTIPLE LAYERS OF SYNERGIES 38 DAY 1 BENEFITS CPS + POOLING OF RESOURCES ORGANIZATIONAL SYNERGIES Note: Sweden implemented in model, rest of the countries to follow over time STEPWISE IMPLEMENTATION OF CORE CHANGES PROCESSES ENTERPRISE ARCHITECTURE MODULAR PRODUCTS d WAY OF WORK CONSOLIDATION AND SCALE SYNERGIES FULLY IMPLEMENTED CPS COMMON DEVELOPMENT OF PRODUCTS ON A COMMON PLATFORM FULL BENEFIT OF OPERATING MODEL#39MULTIPLE GAINS FROM COMMON OPERATING MODEL 39 EFFICIENCY AND SCALABILITY NEW WAY OF WORKING - AGILE AND COMMON COMMON PRODUCT DEVELOPMENT & PLATFORM SPEED AND FLEXIBILITY DEVELOP ONCE - DELIVER 6X ONE JOINED FORCE VS. FRAGMENTED EFFORTS INCREASED CUSTOMER EXPERIENCE EARLIER LAUNCHES OF NEW TECHNOLOGY MORE COMPETITIVE PRODUCTS IN ALL MARKETS#40SYNERGIES FROM THE NEW OPERATING MODEL COST SYNERGY OVERVIEW SEK billion 20% 40 15% 0.6-0.9 BN 10% 25% 30% ORGANIZATION WAY OF WORKING PRODUCTS/PROCESS SYSTEMS/PROCESS SUPPLIERS SEK BILLION RUN-RTATE 0.6-0.9 END OF 2022 IN ADDITION CAPEX SAVINGS OF SEK 0.5 BILLION WITH RUN- RATE END OF 2022 TIME#41OUR APPROACH TO... 41 ...5G#425G COMMERCIAL CONTRACTS AND PILOTS TAKING THE LEAD 42 COMMERCIAL CONTRACTS FOR 5G Several commercial B2B contracts in Finland and Sweden 5G pilot networks in all markets (excluding Denmark) COOPERATION WITH CUSTOMERS TO DIGITALIZE THEIR BUSINESSES Manufacturing Process industry Mining Logistics And several more ● ● PARTNER PROGRAM +100 partners in Finland, Norway and Sweden Aim to drive development of new services based on 5G technology ● ●#435G ROADMAP FOR TELIA COMPANY 43 2018 INDUSTRY FOCUS ● ● PILOT 5G TESTING PILOTING - 5G PILOTS IN ALL MARKETS (EXCL. DK) - PARTNERSHIP PROGRAM LAUNCHED - USE CASES IN SPECIFIC VERTICALS 2019 INDUSTRY FOCUS END-USER EQUIPMENT AVAILABLE IN LOW VOLUMES - COMMERCIAL OFFERINGS IN 1-2 COUNTRIES - SECURE SPECTRUM PRE 5G NON-STANDALONE INDUSTRY FOCUS COMMERCIAL REAL 5G IN VOLUMES 2020 AND BEYOND -5G MATURITY AND COMMERCIAL RAMP-UP ACROSS OUR MARKETS - SECURE SPECTRUM 5G MATURITY AND RAMP-UP#44BUSINESS CASE DRIVEN APPROACH TO 5G 5G ROLL-OUT APPROACH 44 ● ● 48 B2C ‒‒‒‒‒ 2 ● B2B Second focus Roll-out based on solid business cases First focus Enterprise mobile networks ● • Fixed wireless access ·· 99 · B2C III Mass-market Leverage capacity enhancements SHORT-TERM RADIO ACCESS NETWORK CAPEX 3G/4G/5G coverage/capacity 2018 2019E 2020E Balanced investments in 5G based on a business case driven agenda following our roadmap 5G CAPEX investments included as part of overall CAPEX bucket#45COMMON PRODUCTS AND SERVICES – KEY PRIORITIES 45 A NEW OPERATING MODEL Cost reduction ambition of SEK 0.6-0.9 billion 5G BUSINESS DRIVEN APPROACH Leading position in 5G through business case driven approach#46CAPITAL MARKETS DAY 2019 Christian Luiga, CFO#47FINANCE - KEY PRIORITIES 47 CASH FLOW X COST AGENDA WORKING CAPITAL SHAREHOLDER REMUNERATION X₁ Ox LEVERAGE SUSTAINABLE CREDIT#48A SUCCESSFUL JOURNEY REPORTED EBITDA DEVELOPMENT Reported currency, adjusted EBITDA, R12 28 SEK BILLION SEK BILLION 48 26 24 22 OPERATIONAL FREE CASH FLOW SEK billion, R12 14 12 10 8 6 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 0 5.5 10.8 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 ORGANIC GROWTH COUPLED WITH M&A AND FX TAILWIND GROWTH MAINLY DRIVEN BY M&A, ORGANIC EBITDA AND WORKING CAPITAL LEVERAGE DEVELOPMENT Adjusted EBITDA/net debt, 2018 a full year of Get/TDC Norway RATIO 2.5 2.0 1.5 1.0 0.5 0.0 SEK/SHARE 4.0 3.0 TOTAL SHAREHOLDER REMUNERATION Dividend and share buybacks 2.0 1.0 1.7 0.0 2016 2.00 1.1 SHARE BUYBACKS DIVIDEND 2016 2017 +15% 2.30 2017 +3% RIGHTSIZING THE BALANCE SHEET VIA M&A AND BUYBACKS 2.0 2018 1.15 2.36 2018 2.8% OF SHARES REPURCHASED 2018* * Ambition to repurchase shares for SEK 5 billion per year over three years starting April 2018#49SERVICE REVENUE AND EBITDA DEVELOPMENT SERVICE REVENUE & EBITDA DEVELOPMENT Organic growth, external service revenues and adjusted EBITDA 5% 3% 1% -1% -3% 49 - 2016 2017 * Fiber OTC= Fiber One Time Charges 2018 ORGANIC SERVICE REVENUES ORGANIC SERVICE REVENUES EXCL. LEGACY & FIBER OTC* ORGANIC EBITDA Organic service revenue growth excluding legacy Fiber installation revenues in decline Deliberate reduction of low margin revenues in Telia Carrier 2017 and 2018 impacted negatively by 0.7 percent in 2018 Important going forward to drive organic service revenue growth excluding legacy -#50OPEX HAS BEEN TAKEN DOWN BUT MORE TO DO OPEX COST BASE DEVELOPMENT Growth in % -1% -2% -3% 50 2016 2017 -2% 2018 OPEX efficiencies generated over several years mainly from process optimization across the group, leading to lower resource costs CONTINUOUS FINE-TUNING AND DEFINED PROJECTS HAVE DELIVERED EFFICIENCIES... Business transformation 000 st a Cost 2018 M&A synergies ...AND CREATED A FOUNDATION FOR FURTHER EFFICIENCY REALIZATION#51WE ARE DRIVING A BROAD EFFICIENCY AGENDA CLEAR RUN-RATE SAVINGS AND CASH FLOW DURING 2019-2022 FROM CURRENT PROGRAMS SEK IN BILLION, RUN-RATE GET/TDC SYNERGIES NEW OPERATING MODEL E2E MASS MARKET (SWEDEN) COUNTRY COST PROGRAMS INFLATION GROWTH INITIATIVES 51 COGS & OPEX 0.4 IN 2021 0.6-0.9 IN 2022 0.2 IN 2020 CAPEX 0.2 IN 2022 0.5 IN 2022 0.2 IN 2020 CASH FLOW 0.8 IN 2022 1.2-1.4 IN 2022 0.4 IN 2020 ROBOTICS, SOURCING, SARC, CHANNEL EFFICIENCY, G&A ETC.#52NEW OPERATING MODEL FINANCIAL DYNAMICS 52 NEW OPERATING MODEL SYNERGIES SEK billion, OPEX and COGS 2.5BN COGS/OPEX PRE CHANGE THAT IS COMMON COGS/OPEX MOVED FROM COUNTRIES * CPS= Common Products and Services ~6BN COGS/OPEX AFTER NEW MODEL IS IMPLEMENTED THAT IS COMMON 0.6- 0.9BN SYNERGIES 2022 ● ● ● ● ● Efficiencies in OPEX and COGS to come gradually as the new operating model is rolled out across the group Sweden was first in - remaining countries to follow over time Target to reach OPEX and COGS synergies of 10-15 percent of the estimated total CPS* cost base in 2022 equal to between SEK 0.6-0.9 billion Additional CAPEX synergies of SEK 0.5 billion by 2022 Opportunity for additional efficiency potential in countries' OPEX after full implementation post 2022#53TARGET OF CONTINUED OPEX REDUCTION 2019 53 OPEX REDUCTION TARGET 2019 SEK billion, % of OPEX base, net 24 OPEX BASE ī I I I I I -2% GENERAL OPEX INFLATION 2018 OF 2 PERCENT OPEX REDUCTION 2019E Around 2 percent in OPEX reduction (SEK 0.5 billion) to be driven by ● ● ● ● ● ● (-) New operating model synergies (-) Get/TDC OPEX synergies (-) Robotics and near-shoring (-) G&A and other efficiencies (+) Inflation (+) Service revenue growth initiatives#54AN EFFICIENCY AGENDA STRETCHING BEYOND 2019 54 OPEX REDUCTION TARGET 2019-2021 2019 2% 2020 2% 2021 2% NEW OPERATING MODEL, END2END MASS MARKET, AND M&A SYNERGIES IMPORTANT DRIVERS 100% 75% 50% 25% 0% G&A OTHER ■IT 20% 10% 20% 25% 25% 2019-2021 CUSTOMER OPERATIONS NETWORK OPEX SALES & MARKETING#55DIFFERENT GROWTH PATTERN EXPECTED 2019 VS. 2018 EBITDA DEVELOPMENT 2016-2018 Adjusted EBITDA, organic growth 14% 10% -2% 6% -6% ● 2% -10% ● ● 55 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16 16 16 16 17 17 17 17 18 18 18 18 ESTIMATED 2019 EBITDA PATTERN (EXCLUDING IFRS 16) Adjusted EBITDA, organic and reported growth, excluding IFRS 16, illustrative ORGANIC GROWTH PATTERN A Q1 Q2 Q3 Q4 Organic EBITDA growth Q1 2019 expected to be weaker than Q4 2018 Reported development to be significantly positively impacted by Get/TDC Norway Changes in reporting from IFRS 16 not included in the illustrative graph above. REPORTED GROWTH PATTERN Q1 Q2 Q3 Q4#56TARGETING ANOTHER YEAR OF CASH FLOW GROWTH 56 OPERATIONAL FREE CASH FLOW 2016-2018 SEK billion, reported currency 5.5 2016 1.9 2.3 EBITDA, OTHER NWC, CAPEX 9.7 2017 2.0 -0.8 EBITDA, OTHER NWC, CAPEX 10.8 2018 OPERATIONAL FREE CASH FLOW 2019E SEK billion, reported currency 2018 EBITDA CAPEX NWC INTEREST TAX OTHER 2019E NEGATIVE 10.8 SWEDEN OFFSET BY GET/TDC IN NORWAY 12-12.5 Get/TDC main driver behind growth in EBITDA#57AROUND SEK 2.5 BILLION UNTAPPED NWC POTENTIAL ACCUMULATED NET WORKING CAPITAL IMPACT ON CASH FLOW SEK billion, reported currency, accumulated impact 6 5 4 3 2 1 0 ● 57 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 2019 2020 Previous estimate of a SEK 5 billion potential raised to around SEK 6 billion 2021 5% 5% 3.6BN 2017-18 90% IMPROVEMENTS REALIZED WITHOUT ANY OFFSETTING COSTS SUPPLIERS CUSTOMERS INVENTORY AND OTHER Customer financing and inventory will play a bigger role 2019-2021#58CAPEX TO LEVEL OUT - FUTURE SAVINGS REINVESTED CASH CAPEX EXCLUDING LICENSES* BY ITEM SEK billion, stable FX, excl. IFRS 16 impact 15 10 ● 5 0 58 2016 2017 2018 2019E OTHER CUSTOMER CASES STRATEGIC INITIATIVES FIBER SDU MOBILE AND FIXED NETWORK CAPEX has gradually come down from 2016 peak Slight reduction expected 2019 despite full year consolidation of Get/TDC - mainly driven by lower fiber CAPEX in Sweden * 2016 adjusted for capitalized wages and excluding ice hockey rights 2017 and Helsinki Data Center 2018 CASH CAPEX EXCLUDING LICENSES* AMBITION SEK billlion, excl. IFRS 16 impact 16 15 14 13 12 11 10 ● 2016 ● 2017 2018 2019E DROP 2020 FROM LOWER FIBER CAPEX 2020E • CAPEX efficiency improvements and savings to be reinvested in continuous IT improvement and network Fiber in Sweden also the main driver for 2020 decline Balanced 5G investments based on business cases 2021E#59OP. FCF DRIVEN BY EBITDA - SR GROWTH, COST & M&A OPERATIONAL FREE CASH FLOW SEK billion, reported currency 20 15 10 5 0 -5 -10 59 9.7 13.1 -3.4 2017 10.8 * Excluding licenses 15.1 -4.3 EBITDA, NWC, CAPEX* OTHER 12-12.5 2018 17 -5 2019E EBITDA TO BE SUPPORTED BY GROWTH IN CORE REVENUES, M&A AND COST MEASURES EBITDA OF WHICH SERVICE REVENUES EXCL. LEGACY AND FIBER OTC NWC CAPEX* OTHER TOTAL BONNIER BROADCASTING** CASH FLOW IMPACT (Y-O-Y) 2019E 2020E 2021E BONNIER BROADCASTING ESTIMATED TO CONTRIBUTE BY AT LEAST SEK 0.5 BILLION BY 2020 ** Transaction estimated to be closed during H2 2019#60SUSTAINED DIVIDEND PER SHARE REQUIRES SEK 12 BILLION IN DIVIDEND BASE 60 DIVIDEND POLICY A MINIMUM OF 80 PERCENT OF FREE CASH FLOW FROM CONTINUING OPERATIONS, EXCLUDING LICENSES AND SPECTRUM FEES SHARE BUYBACKS INTENTION OF SEK 15 BILLION OVER THE YEARS 2018-2020 SEK BILLION 14 12 10 4 2 2018 SEK 2.36/SHARE 84% PAY-OUT REQUIRES SEK 12 BILLION (INCL. DIVIDENDS FROM ASSOCIATES) DIVIDENDS FROM ASSOCIATED COMPANIES OP FCF REQUIRED FOR 2.36/SHARE MIN 80% PAY-OUT ---- 2019 OP. FCF OUTLOOK SEK 12-12.5 BILLION OPERATIONAL FREE CASH FLOW DIVIDENDS FROM ASSOCIATED COMPANIES COME ON TOP OF SEK 12-12.5 BILLION#61SUSTAINABILITY IN FINANCIAL MANAGEMENT 61 AMBITION TO BECOME A TRULY SUSTAINABLE CREDIT/ INVESTMENT PART OF DIGITAL IMPACT WHY DEMANDS ON SUPPLIERS & CREDITORS IMPROVED RISK PROFILE, CAPITAL MARKET ACCESS, CREDIT RATING AND FUNDING COSTS "THE PREFERRED CHOICE" INCLUDED IN FINANCIAL MANAGEMENT WHAT FINANCIAL GOVERNANCE FUNDING FINANCIAL INVESTMENTS HOW PRO-ACTIVE INFLUENCER INCLUDING APPROACH#62FINANCE - KEY PRIORITIES 62 CASH FLOW SEK 12-12.5 billion in 2019 COST AGENDA Reduce OPEX by 2% net annually 2019-2021 X WORKING CAPITAL SEK 2.5 billion in untapped potential SHAREHOLDER REMUNERATION Clear dividend policy and ambition of share buybacks to 2020 X₁ ох LEVERAGE Maintaining a solid investment grade SUSTAINABLE CREDIT Pro-active influencer#63CAPITAL MARKETS DAY 2019 5:42 Anders Olsson, CEO Telia Sweden#64TELIA SWEDEN - KEY MESSAGES 64 MARKET LEGACY g EFFICIENCY m B2C CONVERGENCE B2B CONVERGENCE#65TELIA SWEDEN 65 degi 35% 33% TV 18% - HIGH FIBER PENETRATION SWE EU FIBER PENETRATION (%) Source: FTTH Council, 2018 GEARED UP FOR CONVERGENCE ! TV#66GROWING TELECOM MARKET EXCLUDING LEGACY BUT WITH A SOFTENING B2C MOBILE TREND MARKET DEVELOPMENT BY PRODUCT SEK billion, core telco revenue excl. equipment 80 60 40 20 ● ● 66 0 CAGR 2014-2018 I 2014 2015 2016 2017 2018 FIXED VOICE OTHER* TV MOBILE BB Growth in all core services historically Continuous legacy decline +3.5% -14% Datacom, UCC & Contact Centre, Managed Security Services Source: Gartner, IDC, Telia Market analysis B2C MARKET MOBILE SERVICE REVENUES** Percent y-o-y, B2C mobile service revenues 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% 12 5:42 Q4 17 Q1 18 Q2 18 Q3 18 Clearly softening trend in B2C mobile market throughout 2018 Q4 18 Telia as market leader is aiming to get market back to growth **Telia Market analysis based on Top 4 companies' quarterly reports MARKET SHARE DEVELOPMENT Core telco revenues excl. equipment 100% 80% 60% 40% 20% 0% |||||| 2013 2014 2015 2016 2017 2018 TELIA TELE2 TELENOR 3 OTHER Telia in stable market leader position despite legacy exposure#67OUR PERFORMANCE HISTORICALLY SERVICE REVENUE AND EBITDA DEVELOPMENT SEK billion, external service revenues, adjusted EBITDA ● ● 67 SERVICE REVENUES ADJUSTED EBITDA 32.1 14.5 2016 31.3 13.6 2017 30.8 13.2 2018 EBITDA decline fully driven by service revenues Net OPEX reductions to mitigate product mix effects and inflation 12 5:42 SERVICE REVENUE DEVELOPMENT BY TYPE SEK billion, external service revenues LEGACY* FIBER OTC CORE 5.1 1.2 2016 25.8 4.3 0.7 2017 26.3 3.6 * Includes fixed voice (end-user and wholesale & datacom) 0.6 2018 26.6 Growth in core not enough to mitigate for legacy revenue erosion and lower fiber installation revenues Core revenue growth of around 1 percent CAGR, albeit fading somewhat in 2018.#68KEY P&L DRIVERS FOR TELIA SWEDEN 68 1 2 3 LEGACY DECLINE OPEX IMPROVEMENT CORE/NEW SERVICE CONTRIBUTION#69COPPER REVENUES PARTLY RECAPTURED 69 FIXED VOICE TV XDSL BB XDSL DATACOM WHOLE- SALE REVENUES -2.9 ~0.4 ~ 2.0 ~0.4 ~0.8 2018 SEK 6.5 BILLION MITIGATED BY VOIP MOBILE FIBER OR OCN OTT BB OVER OCN BB OVER FIBER OR FWA FIBER AND WIRELESS FIBER AND FWA X MITIGATING INITIATIVES INCREASE PENETRATION IN EXISTING FIBER NETWORK PROACTIVE MIGRATION TO FUTURE PROOF SOLUTIONS FOR B2B EXPAND OCN FOOTPRINT & PENETRATION SELECTIVE FIBER & FWA BUILD () REPLACE COPPER WITH MOBILE#70LEGACY NETWORK SIZE DRIVES COST- NOT # OF CUSTOMERS COPPER ACCESS RUNNING COSTS Share of total BUILDINGS INCLUDING 70 ENERGY COPPER NW (ACCESS NW, DUCTS, POLES) 20% 40% IT SYSTEMS BILLING, DELIVERY, SA & OTHER PLATFORMS COST DRIVEN BY SIZE OF NETWORK ~50% of costs reduced by reduction in network-size ~50% of costs remain until network is completely closed 20% 20% 12 5:42 17 - COMPETITIVE OFFERS FOR NATURAL MIGRATION PROACTIVE MIGRATION OF FUTURE PROOF SERVICES RURAL: FRAMTIDENS NÄT 2 INFRASTRUCTURE DIGITALIZATION ♥ SUNNE MUNICIPALITY FORCED AND PROACTIVE INFRA- AND PLATFORM PROJECTS#71EFFICIENCY TO DRIVE 3% OPEX REDUCTION 2019-2021 OPEX REDUCTION TARGET 2019 Target breakdown ■IT 71 20% CUSTOMER OPERATIONS G&A OTHER 20% 3% 20% 30% 10% 2019 main levers ● ● ● ● SALES & MARKETING NETWORK OPEX Robotics & automization 2.42 Sourcing SARC optimization Channel efficiency Pooling OPEX REDUCTION TARGET 2020-2021 ● ● ● Continued ongoing efficiency efforts E2E mass market Scale advantages via new operating model ~3% ANNUALLY#72MARKET LEADERSHIP DRIVING CONVERGENCE STRONG BRAND - FOLKNÄTET RESPONSIBLE MARKET LEADER DRIVING PREMIUM OFFERINGS AND VALUE-BASED PRICE DEVELOPMENT UNIQUENESS IN NETWORK QUALITY AND TECHNICAL EXCELLENCE UNDERSTAND PEOPLE'S NEEDS AND TAKE GREATER SOCIAL RESPONSIBILITY 72 VÄLKOMMEN TILL FOLKNÄTET. P3 HALEBON SVERIGES NOIDASTE PRIVATKUNDER MOBILOPERATORER 2018 connect OSKI SKI 5 YEARS RUNNING STRONG OFFERINGS B2C B2B O SERVING ALL CUSTOMERS WITH FULL PRODUCT PORTFOLIO B20 STRONG PRICING POWER* "O TV TELIA FIBER (BB 100/100) TELIA TV (LAGOM) FIXED TELEPHONY (TELIA BAS) (SEK) FROM 399 TO 429 FROM 279 TO 299 FROM 205 TO 329 * Current price adjustments, effective as of April 1, 2019#73B2C CONVERGENCE TO DRIVE LOYALTY AND GROWTH 73 STRONG CUSTOMER POSITION IN CORE SERVICES ACTUAL PRODUCT RELATIONS POSTPAID TV FIBER DRIVE LOYALTY FURTHER 17" & TELIA LIFE GROW ARPA AND ADDITIONAL SERVICES ADDING ADJACENT SERVICES LOYALTY DIVISION X/PARTNERS SMART HOME ENTERTAINMENT CONVERGENCE EXPERIENCE CROSS & UP-SELL SHARE OF WALLET#74ALL HOUSEHOLDS WILL BE REACHED 74 TELIA BROADBAND INFRASTRUCTURE REACH AND POTENTIAL Households in million, Telia open fiber reach and OCN* reach 5 4 3 2 1 0 1.8 1 MILLION POTENTIAL CUSTOMERS IN * OCN=Open City Network CURRENT FIBER REACH (TELIA + OCN*) TELIA OPEN FIBER REACH 0.9 PENETRATION POTENTIAL TELIA OCN REACH 12 5:42 0.3 1.6 .4G/5G • FIBER M&A ● • FIBER ROLL-OUT 4.6 REMAINING OCN REACH FURTHER POTENTIAL TOTAL HOUSEHOLDS#75UPDATED TELIA LIFE TO DRIVE LOYALTY ● ● 75 TELIA LIFE ♫ +☎ CHOOSE BETWEEN 1-3 1 2 3 UPDATED TELIA LIFE LAUNCHED 2019 NEXT TIER ON MOBILE DATA NEXT SPEED ON FIXED BROADBAND 20GB MOBILE BROADBAND CONVERGENCE OFFER-BASED ON MORE FOR MORE 5:42 17" NPS 30 CHURN 20% 0% 1 PRODUCT 1 PRODUCT PROOF POINTS 2 PRODUCTS 2 PRODUCTS 3 PRODUCTS 3 PRODUCTS#76GROWING REACH AND INCREASING ARPA THROUGH CONVERGENCE 76 NEW SERVICES 3) Adding innovative media and home-related digital services CONVERGED CUSTOMER BASE 2) Cross-selling mobile to our fiber customer base 1 DIVX 6 (وی) BONNIER Broadcasting BROADBAND PENETRATION Expanding reach, upselling on own infrastructure and increased penetration on OCN 8 TV (Ⓡ) TV#77CREATING DIFFERENTIATION AND LOYALTY THROUGH B2B CONVERGENCE ... 77 ● ● STRONG CUSTOMER POSITION IN CORE SERVICES BEST MOBILE NETWORK LARGEST FIBER FOOTPRINT TELIA CARRIER P3 connect TELIA SVERIGES NOUDASTE FÖRETAGSKUNDER MOBILOPERATORER 2018 OSKI SME-ICT PARTNER ● ● DRIVE LOYALTY FURTHER ● PERSONAL TECHNICIAN COMMUNICATION AS A SERVICE LARGE & PUBLIC - DIGITALIZATION PARTNER HEALTH CARE ● EFFICIENT WORK PLACE MANAGED NETWORK SERVICES Atrox Cygate humany. Telia LOYALTY CAPTURE ICT GROWTH MARKETS ECOSYSTEM PARTNER ICT SOLUTION PROVIDER CLOUD, IOT, SECURITY CONNECTIVITY PROVIDER SHARE OF ICT SPEND#78... AND ACCELERATED LEADERSHIP IN DIGITALIZATION 78 DIVISION X CROWD INSIGHTS HEALTHCARE P tieto E/NRIDE E ERICSSON ← SÖDRA 5G PARTNER PROGRAM 17" VOLVO Volvo Construction Equipment Mittuniversitetet 4 SMART TRANSPORTATION MID SWEDEN UNIVERSITY DIGITALIZATION OF MINING ΚΤΗ VETENSKAP OCH KONST I I CUSTOMER-DRIVEN INNOVATION MORE DIGITAL DIGITAL SECURITY#79EBITDA TREND-SHIFT DURING 2020 2) OPEX IMPROVEMENT 3 LEGACY DECLINE 79 CORE/NEW SERVICE CONTRIBUTION 2019 2020 ➜ LEGACY PRESSURE WILL FADE OVER TIME NET COST SAVINGS OF AROUND 3% ANNUALLY REVENUE GROWTH THROUGH CONVERGENCE#80TELIA SWEDEN - KEY PRIORITIES 80 REMAIN A RESPONSIBLE MARKET LEADER CONTINUED LEGACY PRESSURE MITIGATED BY A CLEAR TRANSITION PLAN g 3 PERCENT 2019-2021 NET ANNUAL OPEX REDUCTIONS Mi B2C CONVERGENCE - GROWTH ENGINE FOR THE FUTURE B2B CONVERGENCE - UNIQUE POSITION IN MARKET#81CAPITAL MARKETS DAY 2019 Abraham Foss, CEO Telia Norway 0#82TELIA NORWAY - KEY MESSAGES 82 FA MARKET တိုင် GET/TDC Mi B2C CONVERGENCE B2B CONVERGENCE EFFICIENCY#83CONVERGENCE TO DRIVE REVENUES 口の国 TV 36% 17% 23% 83 HIGH PURCHASING POWER & FOCUS ON QUALITY UNTAPPED DEMAND FOR BUNDLES 10% HAVE BUNDLES (80%) WOULD CONSIDER TO HAVE#84THE NORWEGIAN MARKET TO REMAIN SOLID MARKET DEVELOPMENT BY SEGMENT Revenue growth, mobile, fixed, TV 6% 4% 2% 0% -2% -4% ● ● 84 2014 B2C 2015 B2B 2016 2017 H1 2018 Market growth despite reduction in legacy services Stable regulatory and political environment MARKET SHARE BY SEGMENT Revenue market share, Telia including Get/TDC, H1 2018 B2C 11 51 43 67 |||| 43 27 14 39 MOBILE 6 FIXED B2B MOBILE 47 42 11 FIXED Source: NKOM, fixed includes fixed broadband, TV and fixed telephony OTHERS TELENOR TELIA Telia and Telenor key players in the mobile market Fixed market more fragmented#85EVOLVED AND IMPROVED ● 85 TELIA BRAND Telia OneCall my. phonero Get Building Telia as a strong brand Supported by fighter brands in B2C and B2B ● ● IPSOS REPUTATION SURVEY % good/very good impression 50% 40% 30% 20% 10% 0% 2014 2015 2016 2017 2018 From unknown to a significant player Clear increase in positive impression ● NETWORK TEST WINNER OOKLA SPEEDTEST OpenSignal better signal & faster data G BEST I TEST Den she destes 2015 TEKNO BEST I TEST Den store del nostetten 2017 TEK.NO simula Operating one of the best mobile networks in the world#86STRONG FINANCIAL DEVELOPMENT SERVICE REVENUE DEVELOPMENT NOK billion, external service revenues 10 86 8 6 4 2 ..... 2015 2016 2017 2018* B2C B2B OPERATOR 2014 B2C and B2B footprint significantly stronger Including reported Get/TDC ● EBITDA DEVELOPMENT NOK billion, adj. EBITDA 5 4 3 2 1 0 2014 2015 2016 2017 2018* EBITDA Strong synergy realization track record. Good organic development CASH FLOW DEVELOPMENT NOK billion, adj. EBITDA-CAPEX excl. licenses 3 2 0 2014 2015 2016 EBITDA-CAPEX 2017 2018* Operational leverage and good CAPEX discipline#87STABLE DEVELOPMENT FOR GET/TDC 2018 REVENUE AND EBITDA DEVELOPMENT GET/TDC NOK million 5,000 4,000 3,000 2,000 1,000 87 0 REVENUES TV BROADBAND 2017 EBITDA CUSTOMERS +5,000 CUSTOMERS +12,000 2018 Get TDC ARPU B2C -1% ARPU B2C +1% Norway • Stable revenues and a slight EBITDA pressure for the year Get broadband more than offset by pressure in Get TV and TDC Ending the year with good momentum on the customer side ● ●#88INTEGRATING INTO A CONVERGED COMPANY 88 THREE ENTITIES BECOMING ONE Get BUILDING AN INTEGRATED ORGANIZATION WITH... A NEW LEADERSHIP DEAL SYNERGIES TDC Norway A COMMON CULTURE AND FOCUS ON... CONVER- GENCE Telia A NEW OPERATING MODEL EFFICIENCIES INTEGRATION HAS COME FAR ✓ ORGANIZATION AND LEADERSHIP IN PLACE ✔ LEGAL MERGER AND NEW ERP ✔TDC REBRANDED TO TELIA ✓ LAUNCHED CONVERGENT B2B PRODUCT ✔ CUSTOMER OVERLAY ANALYSIS COMPLETED AND MORE TO COME#89CASH FLOW SYNERGIES INCREASED TO NOK 800 MILLION GET/TDC NORWAY CASH FLOW SYNERGIES NOK million, excl. working capital 800 600 400 200 89 SEK 200 MILLION ONE-OFF WORKING CAPITAL SYNERGIES ON TOP 2019-2020 200 2019 475 2020 650 2021 800 2022 Total cash flow synergies increased from NOK 700 million to NOK 800 million ● ● SYNERGY DISTRIBUTION BY 2022 NOK million 150 350 300 SOLID PLAN TO DELIVER NOK 800 MILLION IN SYNERGIES REVENUES COST CAPEX Revenue synergies from convergence Further upsides identified beyond 2022 Leverage group scale#90COST SYNERGIES INCREASED TO NOK 350 MILLION COST SYNERGY DISTRIBUTION BY 2022 NOK million, accumulated in % 90 20% 20% NOK 350M 20% 30% 10% NETWORK IT SALES AND CS MARKETING G&A ● ● Significant G&A synergies in 2019 Combined sales and customer organizations Combined Network and IT organization and operations Significant marketing synergies over time. New operating model supports synergy take-out#91● ● ● INCREASED CAPEX AND WORKING CAPITAL SYNERGIES CAPEX SYNERGY DISTRIBUTION BY 2022 NOK million, accumulated in % 91 40% NOK 150M 60% NETWORK IT Common product and IT platforms Utilize fixed network footprint on mobile network and B2B Leverage new operating model and sourcing WORKING CAPITAL SYNERGY DISTRIBUTION 2019-2020 NOK million, accumulated in %, one time effects 25% ● 15% NOK 200M One time effects from 60% SUPPLIERS CUSTOMERS INVENTORY AND OTHER Leverage supplier invoice and customer finance solutions Combined inventory management#92BALANCE B2C CUSTOMER AND ARPU DEVELOPMENT 92 Telia OneCall PERSONALIZATION DRIVER FOR ARPU GROWTH AND CHURN REDUCTION DIGITALIZATION OF CUSTOMER INTERACTIONS MAINTAIN AND DEVELOP STRONG POSITION ON HANDSETS my ca#93CONVERGENCE B2C 93 STRONG CUSTOMER POSITION IN CORE SERVICES LARGE ADDRESSABLE CUSTOMER BASE IN GET 70% +1M 30% TELIA CUSTOMERS NOT TELIA CUSTOMERS ● DRIVE LOYALTY FURTHER LOW PENETRATION BUT HIGH DEMAND FOR BUNDLES 10% (80% HAVE BUNDLES WOULD CONSIDER TO HAVE 50% lower churn on converged customer base Source: Based on Telia customer survey GROW ARPA AND ADDITIONAL SERVICES & Get INNOVATIVE BUNDLING OF CONTENT SERVICES Qfuturehome USE SMART HOME PRODUCTS TO PROTECT AND FURTHER DEVELOP BROADBAND POSITION#94CONVERGENCE B2B 94 STRONG CUSTOMER POSITION IN CORE SERVICES 42K B2B CUSTOMERS 500K MOBILE SUBSCRIPTIONS Telia phonero USERS ALMOST 1M DAILY SIGNIFICANT INFRASTRUCTURE DRIVE LOYALTY FURTHER REBRANDING INTEGRATED B2B OPERATION BROADBAND ROUTER WITH INTEGRATED 4G CAPTURE ICT GROWTH MARKETS S feel TELIA ACE MULTINATIONAL CUSTOMERS IOT CLOUD AND ICT#95POSITIONED TO GAIN REVENUE MARKET SHARE 95 TELIA REVENUE MARKET SHARE DEVELOPMENT Fixed and mobile, 2019-2021 ambitions 9% 2014 14% 2015 Source: NKOM 15% 16% 2016 2017 EIII 24% 2018 2019 2020 2021 HISTORICAL GROWTH FROM SUCCESSFUL M&A COMBINED WITH STABLE ORGANIC BUSINESS CAPITALIZE ON STRONG BRAND, NETWORK POSITION AND INCREASED SCALE B2C AND B2B CONVERGENCE TO DRIVE FUTURE GROWTH#96NOK 0.6 BILLION IN NET COST REDUCTION TARGETED 600 400 200 ● NET COST REDUCTION NOK million, compared to 2018 ● ● 96 150 2019 350 2020 450 2021 600 2022 Accumulated cost savings of NOK 0.6 billion by 2022 Around 50 percent of cost reduction from Get/TDC synergies Additional saving potential on network COGS and properties ● ● NET COST SAVINGS BY TYPE In %, total net cost savings CUSTOMER OPERATIONS SALES AND MARKETING COST ■IT OPERATIONS NETWORK OPERATIONS G&A Significant synergies and efficiencies within sales and marketing and customer acquisition Continued digitalization and automation improve efficiency Leverage group scale#97TELIA NORWAY - KEY PRIORITIES 97 ( MARKET FUNDAMENTALS IN PLACE XK AR CREATE A FULLY INTEGARTED COMPANY $ BUILD BRAND AND NETWORK POSITION 林站 CONVERGENCE IN B2C AND B2B EFFICIENCIES FROM DIGITALIZATION AND SCALE#98CAPITAL MARKETS DAY 2019 Stein-Erik Vellan, CEO Telia Finland#99TELIA FINLAND-KEY MESSAGES 99 MARKET Luga B2C CONVERGENCE B2B CONVERGENCE వ EFFICIENCY#100FINLAND CHARACTERIZED BY UNLIMITED DATA 100 TV 32% 26% 20% SHARE OF UNLIMITED SUBSCRIPTIONS Traficom reports, B2C subscriptions with unlimited data tariffs 100% 80% 60% 40% 20% 0% 62% H2 2015 UNLIMITED 70% H2 2016 LIMITED 77% H2 2017 OTHER 80% H2 2018 NO DATA SHARE OF UNLIMITED ≈63% of Telia B2C customers on unlimited tariffs - still untapped potential HIGH DATA USAGE 16GB monthly average data consumption#101EVEN PLAYING FIELD FACILITATES A STABLE MARKET REVENUE MARKET SHARE DEVELOPMENT Core telco revenues excl. devices and IT services* ● 100% 80% 60% 40% 20% 101 0% ||| 2015 TELIA 2016 ELISA 2017 DNA 2018 * Traficom 2015-2017, Telia Company estimate 2018 OTHER Stable market with relatively equal sized players MARKET CHURN RATES Postpaid churn rates 20% 18% 16% 14% 12% 10% 2015 2016 2017 B2C POSTPAID SUBSCRIPTION DEVELOPMENT Million subscriptions 2018 2015 5.5 2016 5.7 5.9 2017 6.1 2018 6.3 SLIGHTLY CONTRACTING MARKET DUE TO DUAL-SIM 6.5 CHURN COMING DOWN AFTER A PEAK IN 2017 TELIA ELISA DNA#102NEW AND IMPROVED 102 REBRANDED Sonera WITH A POSITIVE IMPACT ON SOCIETY ZERO Telia ZERO CO₂ WASTE ACTION 100% nebula AINA REPOSITIONED ASSEMBLY Awarded Gold LEED environmental certificate State-of-the-art energy-efficient data center service Exceptional water solution and energy efficiency 24 PROPENTUS INMICS cloud SOLUTIONS#103CONVERGENCE B2C 103 100% 75% 50% 25% 0% STRONG CUSTOMER POSITION IN CORE SERVICES Q4 2017 AWARENESS Q4 2018 FAMILIARITY CONSIDERATION *Brand Tracking Survey, Telia SIGNIFICANT BRAND IMPROVEMENT* ACROSS ALL MEASURES USAGE • Network quality improvements ● 30% 20% 10% 0% DRIVE LOYALTY FURTHER -POSTPAID CHURN 2+ PRODUCTS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 17 17 17 17 18 18 18 18 • Significant opportunity to reduce ● churn GROW ARPA AND ADDITIONAL SERVICES 222230 44 THE BEST ENTERTAINMENT SERVICE IN FINLAND 2018 LIIGA #1 SPORT IN FINLAND BUSWIERZY - LIIGAVAHTI APP: THE #1 ENTERTAINMENT SERVICE IN FINLAND ASSEMBLY PREMIER E-SPORTS EVENTS ORGANIZATION IN FINLAND#104TAKING LIIGA TO THE NEXT LEVEL 104 AUPAR atk 19 CALIER Them Sol Eurok ro master veystalo Ther....Sof Litge Län gän EuroKe TYRVANEN EuroKeittiö EuroKeit TALLINK TALLI GEN Luga BOR Built first-class TV production and offering Established solid awareness that Telia is the new home for Liiga Built award-winning mobile app Gained solid customer base → Strong first steps taken on a 6 year journey ● FOCUSED LIIGA RAMP-UP Upcoming Liiga Initiatives Playoffs push Provide convergence benefits to Telia customers providing attractive bundles Drive access rate Sales channel boost in digital and traditional channels Product enhancements Attract wider audiences with free to air (FTA) model Improved broadcast with ultra-HD quality#105STILL POTENTIAL TO DRIVE MOBILE ARPU BLENDED MOBILE ARPU* INCREASING EUR per month 20 18 16 14 12 10 Q115 105 TELIA Q2 15 Q3 15 Q4 15 Q1 16 ELISA Q2 16 Q3 16 Q4 16 DNA Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q318 • Continued market ARPU growth possible with new service innovations, focus on speed, our unlimited usage upside and additional price optimization Q4 18 *Company Interim Reports, DNA calculated as mobile service and interconnect & roaming revenues in relation to the average number of mobile subscriptions ● CONTINUED INNOVATION LIKE TELIA DOT Digital only service launched Q4 2018 Pay only for what you use Reach customer service in the app Telia Dot, tervetuloa! untelinliittymä. Se varmistaa, ettet maksa ysin uudenlainen, tahan paivaan luotu turhasta, ja huolehtii digihyvinvoinni Tutustu ja tilaa Dar Olen je Dotin asiakas TELIA DOT See your usage in real time A FIRST STEP TOWARDS MULTI- DEVICE E-SIM STRATEGY Telia DOT digital offering driving market average ARPU with a very good customer experience (NPS 40+) and at a low SAC#106CONVERGENCE B2B ● ● 106 STRONG CUSTOMER POSITION IN CORE SERVICES Telia ICT LEADERSHIP SURVEY RESULTS TELIA ELISA DNA THE LEADING ICT SERVICE COMPANY IN FINLAND* MICROSOFT VISMA FINNET CGI Customers recognize Telia as ICT leader Currently winning significant cases Sales funnel is strong DRIVE LOYALTY FURTHER 0 A DEST *As measured by Telia Proprietary Tracking Research of all ICT service companies operating in Finland, Q4 2018 HER TELIA ONE The largest selection of ICT solutions in Finland, all under one roof CAPTURE ICT GROWTH MARKETS nebula INMICS PROPENTUS cloud SOLUTIONS AINA Continuing to drive offering innovation with Telia Division X and new subsidiaries#1075G IN FINLAND Access CONSUMER LAUNCHED FIXED WIRELESS ACCESS NOKIA FASTMILE SOLUTION 107 Services ASUS IN SEARCH OF INCREDIBIAL GREI SUOMEN MESTARVS Teli E-SPORTS TOURNAMENTS PLAYED OVER 5G IN HELSINKI Analytics BUSINESS 5G INDUSTRIAL USES IN OULU WITH BUSINESS FINLAND, STORA ENSO Apps GATE Tella 5GH ARTMENT Telic Magaya 34 ·0. "TELLU" 5G-ENABLED GREETING ROBOT AT HELSINKI AIRPORT Econom Customer Devices#108COST EFFICIENCIES OPEX DEVELOPMENT EUR in million, % of net sales 600 550 500 450 400 350 300 108 2015 TELIA 2016 M&A 2017 2018 -OPEX/NET SALES 38% 37% 36% 35% 34% 33% 32% 31% 30% IT EFFICIENCY SOURCING GENERAL EFFICIENCIES NEW OPERATING MODEL ● ● ● IT core systems renewal and simplification Supplier optimization and cross-border synergies Robotics automation Contractors streamlined and selective insourcing Ongoing organizational and process optimization Shared network with DNA in northern Finland Finland to be enrolled 2019#109TELIA FINLAND - KEY PRIORITIES 109 FA CONTINUE TO LIFT ARPU Liga FURTHER DEVELOP B2C CONVERGENCE AND DRIVE CONTENT INCLUDING LIIGA CAPITALIZE ON B2B POLE POSITION PUSHING INTO ICT SPACE CONTINUE TO TRANSFORM WITH REMAINED COST CONTROL#110CLOSING REMARKS Ima 110 OVERALL: OP FCF TO SUSTAIN AND GROW BEYOND 2019, SEK 12-12.5 BILLION A FLOOR SUSTAINABILITY: UPPING THE GAME WITH OUR DARING GOALS CPS: SEK 0.6-0.9 BILLION COST SAVINGS FROM NEW OPERATING MODEL FINANCIALS: AMBITION TO REDUCE OPEX -2% NET ANNUALLY 2019-2021 SWEDEN: EBITDA TREND-SHIFT DURING 2020 NORWAY: GET/TDC CASH FLOW SYNERGIES INCREASED TO NOK 800 MILLION FINLAND: FURTHER DEVELOP B2B AND B2C CONVERGENCE Q&A#111Telia Company CAPITAL MARKETS DAY 2019