#1YEAR-END REPORT JANUARY-DECEMBER 2020 Q4 ALLISON KIRKBY PRESIDENT & CEO#2GROUP HIGHLIGHTS - Q4 2020 3 * ** SEK billion Service revenues Mobile subscription revenues Adjusted EBITDA EBITDA-cash CAPEX** Operational Free Cash Flow YTD Q4 Q4 2020 19.8 7.8 7.5 3.3 12.1 LFL= like for like Adjusted EBITDA less cash CAPEX excluding licenses and spectrum % Change reported +4.0% -4.5% -5.5% -18.6% -3.8% % Change LFL* -2.1% -1.1% -6.6% ● ● ● Comments COVID-19 impacted service revenues negatively by ~SEK 400 million, and EBITDA by ~SEK 200 million Excluding COVID-19 impacts, service revenues were in-line with last year and EBITDA declined by ~4% LFL A non-recurring pension benefit in the prior year negatively impacted the EBITDA comparison by ~1% LFL Cash CAPEX increased by SEK 0.3 billion due to network modernization#3DELIVERING ON PRIORITIES • Resilient business with stable service revenues, ex. roaming ● A strong quarter for B2B across our largest markets • TV/Media recovery faster than expected Digital viewing and SVOD subscription growth particularly strong 5G roll-out accelerating across the Group • Sweden awarded best mobile network for 4th consecutive year • Sweden spectrum auction concluded with Telia acquiring the largest allocation • New COVID-19 lock-downs impacted call center performance and retail footfall • OPEX increased in line with our expectations BoD proposes 2020 annual dividend of SEK 2.00 per share (subject to AGM approval) ● ● CONNECTIVITY CONVERGENCE CUSTOMER EXPERIENCE COST CONTROL CAPITAL ALLOCATION#4SWEDEN - Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact ● ● -1% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues ● -1,8% ● -6% Service revenue development improved sequentially EBITDA declined by SEK 309 million from -8,4% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency 10 HIGHLIGHTS Legacy revenue pressure Prior year pension refund Higher OPEX due to marketing and call center staffing ● ● ● ● MOBILE Subs. (q-o-q) +10K Q4 19 TV Q1 20 ARPU (y-o-y) -5% Q2 20 Q3 20 Q4 20 ARPU (y-o-y) 0% (BROADBAND Subs. (q-o-q) -13K Strong end to year in B2B Public & Key segment Continued growth in postpaid subscriptions ARPU (y-o-y) +2% Number of converged customers increased to 309k Best network for the 4th consecutive year Telia awarded 120 MHz in the 5G auction * According to Umlaut (formerly P3)#5FINLAND-Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact ● ● ● 0% -1,9% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues -4% -4,9% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA Service revenue development improved sequentially B2B service revenue turned to growth EBITDA declined by SEK 62 million from Lower revenues Weaker equipment margin SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency HIGHLIGHTS ● ● MOBILE Subs. (q-o-q) -16K Q4 19 TV Q1 20 Q2 20 ARPU (y-o-y) -7% Q3 20 -13 Q4 20 +6K (BROADBAND Subs. (q-o-q) ARPU (y-o-y) +3% ARPU (y-o-y) +2% Consumer mobile improving 5G coverage now at 40 percent of population 5G phones represent 40 percent of new handset sales ARPU improvement from 5G migrations Liiga remedies impacting TV subscriptions#6NORWAY - Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact ● ● ● 0% -2,1% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues 11,6% +14% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA Service revenue development driven by Mobile and B2B Strong EBITDA relative to a weak quarter in 2019 Good progress on integration synergies and cost efficiencies SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency HIGHLIGHTS ● ● ● MOBILE Subs. (q-o-q) -2K Q4 19 Q1 20 TV ARPU (y-o-y) -5% Q2 20 Q3 20 -11 Q4 20 ARPU (y-o-y) +4% (BROADBAND Subs. (q-o-q) +8K ARPU (y-o-y) -1% Mobile subscriptions down due to B2B Improved brand consideration post rebranding New mobile portfolio launched with promising early signs 100k subscriptions on premium service Telia X Added 5G coverage to Bergen - clear roadmap ahead#7LED-Q4 2020 8 SERVICE REV. & ADJ. EBITDA Like for like growth +1% ● -0,6% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues Excl. Covid-19 impact 1,1% +5% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA EBITDA growth from good revenue mix development with mobile growing 5% and a continued decline in low margin fixed transit revenues SERVICE REV. & ADJ. EBITDA Like for like growth +3% ● -0,4% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues Excl. Covid-19 impact 4,1% +7% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA HIGHLIGHTS Mobile revenue pressure from roaming was offset by a solid development across most segments and continued good cost control SERVICE REV. & ADJ. EBITDA Like for like growth -2% -6,2% 09e + Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues Excl. Covid-19 impact +7% -5,4% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA Revenue development impacted by COVID and a more focused portfolio. Good cost control limited the impact on EBITDA#8TV AND MEDIA - Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth ● ● -4,9% Q1 20 Q2 20 Q3 20 Q4 20 Service revenues -56,1% Q1 20 Q2 20 Q3 20 Q4 20 EBITDA Service revenue pressure continued to ease supported by better development of both advertising and subscription revenues EBITDA declined by SEK 255 million from the lower advertising revenues and higher content costs, compared to an all-time high quarter in 2019 TV SUBSCRIPTIONS C More direct OTT subscriptions, in 000' HIGHLIGHTS Q4 19 Q2 20 Q3 20 Q4 20 COMMERCIAL SHARE OF VIEWING (CSOV) 47,1% 51,1% ● ● Q1 20 Q4 19 Q1 20 Q2 20 Swedish linear CSOV, ages 15-64 C MORE Q3 20 789 Q4 20 4 Record high viewing and consumption on TV4 and TV4 Play Time spent on TV4 Play up 32 percent in 2020, well ahead of the market Strong SVOD subscriber intake with a net gain of 142k Increased CSOV also for MTV in Finland mtv#9SERVICE REVENUES AND EBITDA - Q4 2020 10 SERVICE REVENUE BRIDGE Q4 2020 Like for like -2.1% ● Excluding COVID-19 impact Q4 19 Mobile Broadband TV Other COVID- Q4 20 19 Stable revenue development excluding COVID-19 • Lower roaming and advertising revenues still the main effects from COVID-19 EBITDA BRIDGE Q4 2020 Like for like, excluding adjustment items Q4 19 ● -6.6% ● Underlying COVID-19 Pension Excl. COVID-19 EBITDA declined 4% mainly due to: Lack of pension refund, higher resource costs and legacy pressure in Sweden Lower EBITDA in TV and Media Q4 20#10OPERATIONAL FREE CASH FLOW - Q4 2020 11 OPERATIONAL FREE CASH FLOW TREND SEK billion, rolling twelve months 14 12 10 8 6 4 2 0 SEK 12.1 BILLION Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Repayment of lease liabilities OPERATIONAL FREE CASH FLOW Q4 SEK billion 1.0 Q4 2019 -0.8 +1.9 3.3 -0.3 0.0 -0.2 EBITDA Interest Working CAPEX Other less & tax capital leasing* 2.9 Q4 2020 • Lower EBITDA and higher lease repayments • Lower interest partly compensated for higher taxes paid Strong benefit from working capital#11NET DEBT AND LEVERAGE - Q4 2020 12 NET DEBT AND LEVERAGE DEVELOPMENT SEK billion and leverage ratio 2.55x 80.3 -8.0 4.2 Q3 20 Operations Cash * Equity value 3.7 2.7 = = Leverage ratio (multiple, rolling 12 months) -4.6 0.1 2.55x 2nd Extra Turkcell Other Q4 20 CAPEX dividend dividend proceeds 78.3 -9.2* 2.32x 69.2 Telia Q4 20 Carrier proforma proceeds Gross debt reduced by SEK 2 billion • Cash flow from operations and Turkcell proceeds more than offset increased cash CAPEX and dividend distributions ● ● Leverage remained unchanged in the quarter at 2.55x • Proforma leverage post the Telia Carrier transaction still estimated at 2.32x ● Telia Carrier transaction on track to close in Q2 2021#12CLOSING OUT 2020 ● ● ● ● ● 13 Q4 slightly ahead of our expectations Telco business resilient throughout 2020 TV/Media unit recovering Supporting our communities remains a priority Good progress made on key priorities Connectivity Convergence Customer Experience ● ● ● Cost control Capital allocation Clear roadmap to create a better Telia and generate sustainable long term value ● ● OUR VALUES OF DARE CARE SIMPLIFY COULD NOT BE MORE RELEVANT#13OUR PLAN TO CREATE A BETTER TELIA STRATEGY UPDATE 29 JANUARY 2021#14HIGHLY DIGITALIZED AND BUSINESS FRIENDLY REGION Most digitalized region Digital Economy and Society Index 2020 - EU and Norway Finland Sweden Norway Denmark Estonia Lithuania EU 15 37 Source: European Commission 73 Relative resilience to COVID-19 caused recession 2020 Real GDP development Sweden -3% Nordics & Baltics -4% Source: World Bank EU -7% Most business friendly region Ease of Doing Business Index 2020 - EU and Norway Denmark Norway Sweden Lithuania Estonia Finland STRATEGY UPDATE 29 JANUARY 2021 Source: World Bank 66 85#15A MORE CONNECTED WORLD CREATES OPPORTUNITY Trends we see What we believe 16 5G RIDE Technology advancements Telia has increased relevance as a digitalization partner Incoming call New ways of working Reliable network and relevant services provide customer value C MORE Percy Jackson Sea of Monsters pid, Love SUMME Snabba All-in on streaming Compelling content key to differentiate STRATEGY UPDATE Ecosystem development Customers need a one-stop- shop/aggregator Telia 29 JANUARY 2021 TRYGG IT Office 365 F-Secure 4 storegate INSTALLATION PÅ PLATS Security concerns Synergies between connectivity and security Telia Company ON TO TELA Y'S INVESTOR BRIE investors anal si me trpite b ed.com kat Customer experience as a differentiator Focus on NPS drives customer life time value#16STRATEGY UPDATE 29 JANUARY 2021#17REINVENT BETTER CONNECTED LIVING STRATEGY UPDATE 29 JANUARY 2021#18REINVENT BETTER CONNECTED LIVING STRATEGY UPDATE 29 JANUARY 2021#19WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY -ġ³ INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE તી DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#20WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY Accelerating the connected lives of everyone -O INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES Accelerating customer loyalty and revenue growth beyond connectivity BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES ((:)) DIGITAL INFRASTRUCTURE Growing the digital infrastructure of the Nordic and Baltic region S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#21OUR CONNECTIVITY HAS BECOME THE "FIBER" OF LIFE 22 From a position of strength... Best network in core markets, even in high-stress COVID-19 times • Connectivity business resilient despite COVID-19 • At the forefront of new technologies • Converged and integrated single network across Telia Company BEST NETWORK 2020 (0:2) ✰. STRATEGY UPDATE Telia ..we will grow even further 5G roll-out enabling new monetization opportunities • Scale private networks (EMN) and grow loT FWA based on 5G, further fiber roll-out and Docsis 3.1 upgrade in Norway Virtualized core and network function (telco cloud) • RAN modernization program and legacy phase-out ● ● ● ● Connectivity Experiences Infrastructure ● Potential to recoup almost SEK 1 billion revenue from roaming with the return of travel 29 JANUARY 2021#22OUR EXPERIENCES ENABLE BETTER LIVING ● ● 12:18 23 TOP DOG Tivier 2020-15 Ett ytterst omaka par jaun Enly in Asplund) och ex-brottslingen Teddy (Alexej Manvelov) forenas i jakten på en eftersökt kidnappare. Svensk thrillerserie, baserad påJ.... inte tämplig for barn Gener: Thier STARTA Medverkande: Alexej Manvelov, Gustav Lindh. Josefin Asplund, Kardo Razzazi, Mahmut Suvakci Top Dog Avsnitt 1 44 minuter Tilgangla 30+ dag Top Dog 2.43 Tilgingly 30+ dag C MORE : LAY ANG JU Q Video services On-demand digital viewing up 30% SVOD service growth of 20% SVOD-Subscription Video On Demand SMART FAMILY Saga har kommit hem. ● 17:21 Petter Vem vill följa med på Melinas to helgen? 416¹ 8. Kommenters HEMMA A Alex Smarta prylar HEMMA Plugg med Fläkt Lampa 2 Smart Family Consumer Hub for better connected living Scheman PA 300% YoY growth 40% non Telia customers Routuaka Digihyvinvoint Fris Digiarki haltuun! M Perusteista on hyvä aloittaa. Tak haastekokonaisuudessa tarkastelet suhdetta diglaitteisiin erilaisten tahtavien kautta. Säänndt selväk Haasteet Puolituntinen ilman puhelinta Analoginen aamu Paivaman ilmoituksia s Tydasiat tydajalla Suosikkisovellus piloon Digaste & Tauko vin 9:41 Toukokuu Kesäkuu 19,10 € Avis 213 Perky 14, Data 110 Two Patt 1 Ple 25 1 13 D Digital subscription • Smooth and simple mobile user experience in holistic app NPS 60 for Telia Dot ● ● ● nd Telia ESPORTS SERIES eSport Telia eSport series launched across all Nordic countries >65,000 registered users 6x increase in watched minutes 2019 to 2020 Connectivity Experiences Infrastructure STRATEGY UPDATE 29 JANUARY 2021 ● ● SMART WIFI ZWVEL MIH Telia TELIA BREDBAND LETIV BEDBMD Smart Wifi 2.3m managed CPEs as base for Smart Wifi growth Smart Wifi launched in Norway, Sweden & Finland#23OUR EXPERIENCES ENABLE BETTER BUSINESS 24 wortitem ✔TELIA IOT 134 3336 30 Contact Center / ACE 20% Nordic market share NPS > 45 Only Telco partner with Google AI CC ● loT and EMN 40% of revenues non- connectivity Multi-billion SEK upside in augmenting core Significant revenue growth in EMN by 2025 EMN=Enterprise Mobile Networks Enterprise Digitalization partner of choice wen 254.000 4743 237,000 EXECUTIVE SUMMA City center y center activity during March 201 Security ● ● Crowd Insights Anonymized and aggregated mobility data for decision making ● Full security suite + DDOS protection Identity services Professional and managed services ● Named digital project of the year in Sweden CIO awards 2020 STRATEGY UPDATE 29 JANUARY 20 21 Telia One Orchestration platform and full ICT portfolio combined with connectivity YHDEN ASKELEEN EDELLA ONE PROBLEM: Connectivity Experiences Infrastructure ENTROPY THE WORLD IS IN CONSTANT CHAOS Telia YHDEN ASKELEEN EDELLÄ ONE SOLUTION: ORDER Telia YHDEN TELIA ORGANIZES EVERYTHING INTO ONE EASILY UNDERSTOOD SOLUTION ASKELEEN EDELLÄ ONE Telia CUSTOMER BENEFIT PIONEER TELIA ONE HELPS OUR CUSTOMERS GET ONE STEP AHEAD THAT CHAOS AND BE NUMBER ONE#24OUR INFRASTRUCTURE IS INCREASINGLY VALUABLE... 25 A Fiber Approximately 4,500,000 homes passed across five markets Towers Approximately 9,000 towers and 3x as many sites across six markets Connectivity Experiences Infrastructure STRATEGY UPDATE 29 JANUARY 20 21#25... WE INTEND TO CRYSTALLIZE ITS VALUE 26 What ● ● ● Creating a new business line that will own and manage selected assets in Telia Group Portfolio will comprise assets that can be owned partly by third parties Proactively identify relevant partners Why Active management of infrastructure assets to: Crystalize infrastructure value Accelerate funding for investment, and bring further operational excellence from partners Dedicate focus in strategy and resources, centralizing key capabilities Ongoing assessment of infrastructure assets with initial focus on towers in markets where we act as a challenger TowerCo Telia Asset Management Latvia tet Imt Connectivity Experiences Infrastructure TELIA LATVIA STRATEGY UPDATE 29 JANUARY 2021 Finland- Joint fiber NW VALOKUITUNEN FiberCo#26WE REINVENT BETTER CONNECTED LIVING DIGITAL CONNECTIVITY INSPIRING CUSTOMERS With brands and experiences that go beyond connectivity MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... L CONNECTING EVERYONE Through the most trusted, reliable and efficient modern networks SO THAT WE MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL To be simpler, faster, data driven and with lower cost HAVE THE... MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE ની DELIVERING SUSTAINABLY Through an accountable and empowered organization MOST EMPOWERED SOCIETIES#27WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY -ġ³ INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE F DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#28INSPIRING OUR CUSTOMERS Starting point Largest telco customer base in the Nordics and Baltics Leadership in Sweden, Lithuania and Estonia, strong challenger positions in the rest g Convergent position in 5 out of 6 markets enabling cross-sell and increased loyalty Leading Nordic media house with all time high share of viewing and growing SVOD Leading ICT position in Finland, Sweden and Baltics. Best NPS in Sweden and Baltics among Telco brands Starting to monetize 5G STRATEGY UPDATE Growth levers ● ● ● ● 29 Inspire Reinventing customer experience and restoring differentiation ... to increase CLV and support price premium Connect Transform Deliver Owning the home with more4more while pushing connectivity ... to strengthen cross-selling and customer loyalty Digitalize businesses with superior network and relevant services to increase revenue in all business segments Developing TV and Media to full potential post COVID-19 to monetize engagement and drive access CLV = Customer Lifetime Value JANUARY 20 21#29ACROSS A STRONG FOOTPRINT 30 Telia Market leader Market share (%) 35 32 Mobile Broadband TV 18 C MORE halebop Market share (%) Mobile Broadband TV Telia Mobile Broadband TV ezys Market share (%) Telia 29 diil 36 38 SUPER Market position fello #1 #1 #2 Market position 52 #2 #1 #1 Market position 49 #1 52 #1 #2 + Telia Challenger Market share (%) Mobile Broadband Telia TV C MORE Mobile Broadband TV 26 21 Market share (%) 37 TV 32 mtv 18 21 phonero C MORE OneCall Market position #2 #3 #3 Market position #2 #2 #2 MY. (8 Telia Imt tet Structural opportunity STRATEGY UPDATE 29 JANUARY 2021 Inspire call me Tal ordentligt Market share (%) 19 Mobile Broadb... 4 TV | 1 Connect Transform Deliver C MORE Market share (%) Mobile Broadband 0 TV 0 Market share (%) Mobile 0 Broadband TV 58 43 MIT TELE 47 Market position #3 #5 #4 Market position #1 n/a n/a Market position n/a #1 #1 Note: 2019 market shares, TV includes IPTV and cable TV#30A BETTER CUSTOMER EXPERIENCE 31 ● Reinventing customer experience Great products with emotion through media Seamless journeys across platforms ● ● Inspire Connect Transform Deliver Personalized experience through analytics Differentiating through a premium brand STRATEGY UPDATE 29 JANUARY 20 21 Customer experience as key differentiator#31A BETTER CONSUMER STRATEGY 32 Starting point ● ● ● ● ● Network leadership Strong digital portfolio Best in class TV proposition Aggregator of content and partner services Increasingly launching new digital services >300K Telia Life Users ~25% Of BB on converged offer, strong potential for further penetration TELIA +33% Gross intake vs previous year in IPTV since launch of sport package TELIA ~€2.7 ARPU uplift in Finland from 5G SVERIGES ÖJDASTE SVERIGES NÖJDASTE PRIVATKUNDER ATKUNDER DIGITAL-TV 2020 JSKI TELIA SVERIGES NÖJDASTE VATKUNDER GITAL-TV IGITAL-TV 2019 2018 JSKI OSKI TELIA SVERIGES NÖJDASTE VATKUNDER GITAL-TV 2017 JSKI TELIA SVERIGES OJDASTL ATKUNDER IGITAL-TV 2016 OSKI 4.9 Mitt Telia app rating, up from 2.2 in 2019. 160% Telia Dot growth YoY 2018-2020 TELIA SVERIGES NÖJDASTE VATKUNDER DIGITAL TV 2015 OSKI Growth strategy 1. Reinventing customer experience 2. ... ... Growing the number of convergent households by cross-selling and leveraging media assets STRATEGY UPDATE 29 through automation, digitalization and personalization 3. Extending mobile leadership and monetizing 5G ... through customer upsell and VAS 4. Growing TV and Media ...through stronger content portfolio and access with content 5. Accelerating broadband leadership ... through fiber, OCN, FWA and XDSL migration 6. Increasing brand consideration and preference through a refreshed brand portfolio and strategy OCN= Open City network TELIA PLAY Inspire JANUARY 20 21 FILMBUTIKEN DQ JOKER JUDY VECKANS P PLAY THE PIER EXCHAT OD Connect Transform Deliver PURGE Sopranos REKOMMENDERAT GO!#32EXAMPLE: LEADING CONVERGENCE 33 Starting point Convergence offerings launched across all key markets with good traction ● ● ● Customer satisfaction is improving Benchmarks indicate significant growth potential Convergence rate fixed/mobile % of fixed broadband customers FR ~25% Untapped potential orange BE proximus NL kpn 50%-60+% Value accretive convergence players Growth strategy Expanding convergence through all channels with a modularized portfolio ● ● ● Driving personalized convergence ...utilizing analytics for automated cross and upselling Driving engagement .by combining our media assets with access ... Customers on convergence offering Telia Sweden 2019 Inspire +70% 2020 STRATEGY UPDATE 29 JANUARY 2021 Connect Transform Mobile churn based on customers engagement Telia Sweden Single mobile -60% Convergence offerings Deliver#33A BETTER ENTERPRISE STRATEGY Starting point High quality product and services portfolio Trusted partner for digitalization and efficiency Addressing growing demand in multiple new areas ● 34 **** ~20% Telia Ace market share in the Nordics SD-WAN Networking at the speed of business FÅ TEKNIKEN ATT FUNKA Prenumerera på en egen IT-avdelning 2 TRY ME! TELIA ACE Gartner. Telia named three times in Gartner's Magic Quadrant during 2020 CO 80+ Nordic Municipalities now using Telia Crowd Insight STRATEGY Growth strategy 1. Reinventing customer experience ...through digital customer journeys and intuitive tools 2. Growing connectivity business in fixed and mobile ... through convergence, quality differentiation and more4more pricing Inspire 3. Accelerating horizontal solutions and managed services ... through modularized SME/SOHO portfolio and cross selling in large/public 4. Addressing potential in selected vertical solutions ... through combining our capabilities with industry solution partners 5. Monetizing 5G and ICT capabilities and developing new revenue fields through innovation and co-development (loT, private networks, analytics,...) >20 Telia ICT Service NPS in the Baltics Connect Transform Deliver 6. Lifting group synergies for multinational customers and global partnerships ...through leveraging our market access and ICT competence (e.g. Cygate) UPDATE 29 Strategic Partners Google Microsoft JANUARY 20 21 4.9/5 Customer rating for ITdeptaaS +66% YOY growth for ITdeptaaS#34EXAMPLE: LEADING CONVERGENCE TOWARDS IT Starting point • Leading ICT position ● 35 #1 in Finland, Estonia, Lithuania Growing ICT market in Nordics, well above Europe average Strong competence through previous acquisitions (e.g. Cygate) + Source: IDC ICT market growth per country Europe (CAGR 2020-2022) € Europe Average L Growth strategy Becoming the most relevant ICT hub in the Nordics ... through orchestrating partner services along our premium connectivity ● STRATEGY UPDATE 29 Inspire Connect Transform Deliver Further building our position as digitization partner of choice ... through a modularized ICT portfolio, trust and know-how Securing ARPU With lowered price erosion JANUARY 20 21 Finland example TELIA ONE ICT market leader in Finland through Telia One - ICT orchestration One of few market players with certified Google, Microsoft and Apple partnerships Secured several major customer contracts Attendo Increasing relevance With increased share-of- wallet HANSEL TRAFFIC MANAGEMENT FINLAND Increasing loyalty With longer customer contracts#35DRIVING MEDIA MONETIZATION Ads SVOD 36 Starting point Record high viewership Strong and growing AVOD base¹ Linear advertising recovering from COVID-19 ● ● ● ● >50% Commercial share of viewing in Sweden Solid SVOD offerings, through CMORE & Telia TV Key sports rights secured, including SHL and UCL² CHAMPIONS LEAGUE 42% YoY increase in TV4 online time spent 2019-2020 +21% CMORE user base growth YOY 2019-2020 SHL HOCKEY ALLSVENSKAN >1 MILLION Viewers of first-of-a-kind in Europe movie release 1. AVOD = Advertising Video on Demand 2. SHL = Swedish Hockey League; UCL = UEFA Champions League STRATEGY Growth strategy ● Market leading reach ... combining linear with rapidly growing digital inventory Accelerate transition from linear to digital leveraging new analytics based concepts 2.5X Digital advertising revenues growth 2020 to 2025 Growing CMORE stand alone and in Telia customer base Leadership position enables cross-sell and customer lifetime value Inspire +33% IPTV gross intake H2 2020 vs H2 2019 UPDATE 29 JANUARY 2021 DOEN ONSU SE UPP FÖR JONSSON LIGAN Connect Transform TOMAS ALFREDSON BIOPREMIAR JULEN 2020 Liga Lire l C MORE Fly MESS BE CK EPÄILYKSEN TUOLLA PUOLEN C MORE ORIGINAL HOO Deliver#36MULTIPLE GROWTH LEVERS Improved mobile experience including 5G modernization Mobile ARPU - Telia Finland 37 +EUR 3 Non 5G ARPU 5G ARPU +90% 5G pop cov 2023 Better user experience drives improved ARPU Convergence Mobile churn based on customers engagement - Telia Sweden Single mobile churn -60% 2019 Convergence offering churn Customers on convergence offering - Telia Sweden +70% 2020 Reduce churn Cross sell and deep sell New revenue streams IOT STRATEGY UPDATE 29 JANUARY 2021 BROAD ICT PORTFOLIO CLOUD Inspire Connect Transform Deliver EMN IT SERVICES UCC DATA SECURITY PARTNERS Further expanding... ALSO SUPPORTIVE FOR OTHER REVENUE Capture a higher share of wallet through expanding beyond connectivity such as ICT, loT, EMN#37REDUCING HEADWINDS Legacy and regulation been a clear drag on revenues since 2016 Share of service revenues % 38 19 14 67 25 7 68 2016 2020 ■Core Legacy, OTC and regulation ■ Other Core includes mobile, broadband and pay-TV Legacy includes fixed telephony Other increase related to advertising -0,7 -0,2 Burden set to ease coming years Service revenue change SEK in billions -0,6 -0,1 -0,3 -0,1 -0,3 -0.1 -0,2 00 2019 2020 2021 2022 2023 Legacy Regulation Less burden from fixed telephony, interconnect and Special numbers 0,8 Roaming STRATEGY UPDATE 29 JANUARY 2021 Inspire COVID-19 impact Connect Transform Service revenues SEK in billions 0,7 Ad rev CAGR 21-23 +0.9% 0,5 Pay-TV Pay-TV likely to recover sooner than advertising and roaming Deliver#38REVENUE DEVELOPMENT 2021-2023 Low single digit growth 2021-23 Illustrative, excl. Telia Carrier 39 Service revenues 2020 Less burden ahead Legacy and regulation TV to recover faster than roaming and ad revenues COVID-19 recovery Improve ARPU Improve mobile experience incl. 5G monetization Reduce churn and increase upsel potential Convergence Increase share of wallet New revenue streams STRATEGY UPDATE 29 JANUARY 2021 Inspire Connect Transform Service revenue ambition Deliver#39WE REINVENT BETTER CONNECTED LIVING B DIGITAL CONNECTIVITY INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... L CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE F DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#40CONNECTING EVERYONE Starting point Established leader in network quality ● ● ● ● D ● ● 5G launched in all countries, first with FWA in many Best 4G in SE, LI, EE - at par in others 2.9 million homes connected with Fiber/ HFC 5G roll-out in full motion based on fully standardized site types across footprint & strategic partnership with Ericsson and Nokia Common virtualized core network implemented across Telia, full separation of services from transport established (hyperscale architecture) Legacy shutdown well under way (copper, 3G, legacy network nodes) but hard work ahead (e.g. B2B customer migration) Value creation levers ● ● Inspire Connect Transform Deliver Continued gigabit network buildout and modernization ... to keep and extend our leadership position in network quality Fully utilize our software based networks for best time to market, network and service quality, advanced applications and to support minimal cost / GB Continued drive to retire legacy and realize benefits - copper in Sweden, 3G shut down in all countries, legacy platforms to improve efficiency, customer experience and monetization Partner approach and implementing Value Based Investments, establish separate Infra Cos ... to crystalize infrastructure value and accelerate investments STRATEGY UP DATE 29 JANUARY 20 21 Already covered in presentation#41ACROSS A BETTER MOBILE FOOTPRINT 5G population coverage* 4G population coverage 2020 Market leader Maintain network leadership position 20% 2021 2023 Best 20 in 21 Test. lumlaur >90% 99.5% 5G connect connect connect D3 P3 connect Tull BEST IN TEST TELIA 4/2019 MOBILE BENCHMARK SWEDEN 28% 55% 2021 2023 99.5% 5G omnitele 27% * Note that there are local regulatory variations in how 5G population coverage is being measured 42 STRATEGY 99% 2021 2023 99.8% 5G RT RAT RRT Challenger Take leadership role when it matters 50% 2021 99% 2023 + 5G 99.6% Inspire Connect Transform Deliver 40% UPDATE 29 JANUARY 2021 95% 2021 2023 + 99.6% Fully standardized configurations across markets; efficient roll-out process in place TUTELAT 30% 95% 2021 2023 99.9% TUTELA#42WE PIONEER NEW INDUSTRIAL SERVICES 43 Enterprise site Access network Transport and aggregation BOLIDEN ((:)) Local core Dedicated high availability 1V 2 V Core Network Zinkgruvan Mining a subsidiary of lundin mining Telia core site 5G-ready mobile network from Telia to Boliden Aitik T STRATEGY UPDATE 29 JANUARY 2021 Benefits ● ● ● Inspire Connect Transform Deliver ● Quality of Service - built for redundancy and capacity 24/7 monitoring Security enterprise specific APN Platform for further use cases within loT, Edge Cloud, Industry 4.0#43IOT ENABLES NEW REVENUE STREAMS Growth in active loT SIMS # of connections 2019 44 +14% 2020 ELLEVIO e.on Recurring loT VAS revenues SEK millions 2019 +62% Nobina). 2020 KOIVISTON AUTO -konserni Skånetrafiken Pohjolan Liikenne Split of connectivity and other loT revenues % of total loT revenue CONNECTIVITY Inspire Connect Transform Deliver STRATEGY UPDATE 29 JANUARY 2021 60% rikshemn 40% OTHER IOT TYRÉNS#44BROADBAND FOOTPRINT EXPANDING 2.5 45 2018 Fixed broadband Million homes connected¹ 2.9 2020 2023 1. Own infrastructure only, excluding ADSL 2. FWA outdoor and indoor service; not including mobile broadband / mifi + ~50 2018 Fixed Wireless Access 000' connections² ~250 2020 Inspire Connect Transform Deliver STRATEGY UPDATE 29 JANUARY 2021 2023#45FLEXIBILITY THROUGH SOFTWARE-BASED NETWORKS 46 One converged IP/Optical architecture separating service nodes from transport pipes ACCESS NETWORKS TRANSPORT & AGGREGATION Service enablement factory (100% cloud) SERVICE ORCHESTRATION CORE NETWORK One consistent service orchestration and management layer (towards full automation and full network slicing) ● Inspire Connect Transform Deliver Benefits Better quality: 40% less downtime, 50% less defects ● Covered earlier in this section • Speed of deployment: network function from >1 year to ~weeks, customer time to market from >18 to <6 months New features: app-store approach with open APIs, "network on demand" STRATEGY UPDATE 29 JANUARY 2021 Cost savings: automation and better use of infra (IP/Optical), reduced unit cost#46LEGACY SHUTDOWN PROGRESSING WELL 4000 3500 3000 2500 2000 1500 1000 500 47 0 2018 Legacy fixed (copper) #copper central offices, Sweden Copper central offices 2020 2023 2026 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Legacy mobile (3G) % voice traffic, Sweden 2G 2018 3G VOLTE 2020 2023 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2018 STRATEGY UPDATE 29 JANUARY 2021 Inspire Connect Transform Deliver Legacy network systems % service nodes Legacy nodes 2020 2023#47WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES ~ TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE Al DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#48TRANSFORMING TO DIGITAL Starting point Past initiatives unsuccessful, too narrow in focus customer experience led transformation kicked-off ● ● ● ... Legacy products and un-leveraged scale ... market leading products, 15% legacy retired Complex and manual processes encouraging results in front- and back-office Value from data not yet unlocked strong analytics team and technology foundation Highly complex IT landscape and technical debt favorable starting position for radical IT transformation with common team and common delivery 1 1 See 1 1 Value creation levers A customer experience-led transformation ... driving future products, processes, analytics, IT and operations Products-as-a-platform across Telia, radical legacy take- 1 out to enable fast time-to-market, scalability and efficiency ... Inspire Connect Transform Deliver Process simplification, digitization and automation ... to enable a lean Telia, real-time and high quality Real-time analytics for pervasive data-driven decisioning ... to unlock full value of data for improved top and bottom line Digital IT as future proof and lean business enabler to deliver delightful digital customer experiences at lowest cost 1 1 ... STRATEGY UPDATE 29 JANUARY 2021 1#49SIMPLIFIED PRODUCT PORTFOLIO Assessment & progress Multiple legacy products cleansing started, ~15% already decommissioned ● ● ● 50 Overlapping product portfolio ... confusing to customer, unleveraged scale Many bespoke product implementations ... 15% of portfolio already common & scalable Gaps in customer journey for key products ... hard to discover, buy, pay, and get help Customer experience not fully visible due to systems vs. journey focus Telia GLOBAL SOLUTIONS KOP CROWD NIGHTS PUBLIC SECTOR Telia GLOBAL SOLUTIONS MANUFACTURING Telia GLOBAL SOLUTIONS KOT CROWD INSIGHTS INDUSTRIES ● Search page ● ● ● LET'S GET DOWN TO BUSINESS NEWS a Transformation target Radical product portfolio cleansing decommission further 50%, unlock IT efficiency Target product portfolio covering connectivity & experience, best partners Product-as-a-platform ... configure price, promotion, bundle rather than build Market leading products ... highest NPS for all products in target portfolio Customer centric service management insights driven e2e journey, continuous improvement STRATEGY UPDATE 29 MORE AND LOGISTICS INDUSTRIES Score: 68 Braking Telia Inspire Connect Transform Deliver GLOBAL SOLUTIONS OPTIMISE EV E-commerce is nothing drivers, warehouse w infrastructure of online une every detail of the expectations. And the 10T CROWD INSIGHTS BUILDING INDUSTRY JANUARY 2021#50SIMPLIFIED PROCESSES Assessment & progress Complex processes with process gaps +10% sales efficiency, -90% response time¹ ● ● Low degree of digitization and automation ... now established automation centre of excellence Lack of process standardisation ... 90% service assurance processes standardised 51 Data and analytics largely not used strategic partnership with ServiceNow • Not set-up for improvement ... deployed standard process tool (ARIS) 1. B2B Sweden STRATEGY UPDATE Transformation target ● ● ● ● Radical process simplification ... -20% cycle time, -50% error rate Digitization and automation ... Inspire Connect Transform Deliver ● • Harmonized processes across the group fully implemented across all domains 100% digitized and zero touch Intelligent automation personal and adaptive, leveraging AI/ML Continuous improvement culture ... LEAN six-sigma across Telia 29 JANUARY 2021 1920#51REAL TIME ANALYTICS Assessment & progress Gaps in utilizing insight for better experiences connected sources to data lake e.g. TV, network ● ● Commercial opportunities not fully captured ... launched personalization in B2C Sweden and Finland 52 Heavy reliance on traditional tools >20% of staff using insight dashboards ... Analytics expert capacity not matching demand ... onboarded 300 analytics experts to date • Incomplete technical analytics foundation ● common data lake established, retired legacy DWHs ... NBA/O = Next Best Action/Offer STRATEGY UPDATE Transformation target ● • Brilliant customer experiences leveraging our data ... 100% personalization, market leading channel NPS • Full monetization of customer conversion potential ... scale NBA/NBO 100% across Telia ● Inspire Connect Transform Deliver ● State of art analytics tools and processes ... made available to all staff • Telia as a data native organization ... 100% of staff working with relevant insight & data Complete roll-out of target architecture ... cloud, common data lake, real-time 29 JANUARY 2021 Telia Events in Kabenhavn 1.123 CITY VITALITY INSIGHTS @ 3 1,123 dalyvage event activities in Jónshús during 01/012820-22/03/2020 414)#52IT ENABLING A TRUE DIGITAL TELCO Assessment & progress ● • Organically grown IT, vertical integration 95% of customers migrated to target B2C Sweden ● ● ● Insufficient market and customer focus ... 65% projects agile resulting in 30% better efficiency 53 Many legacy systems ... 90% identified, first 5% decommissioned High degree of customization ... radically limited, delivered 70 common APIs Fragmented supplier landscape started focus on strategic partners ... High dependency on external workforce ... integrated Telia IT, 15% of externals already insourced STRATEGY UPDATE Transformation target End-to-end customer journey focus 100% SAFe/agile & CI/CD based ● ● ● ● ● Inspire Connect Transform Deliver TMForum compliant target architecture implemented cloud native, leverage open source Radical legacy drive out ... 90% decommissioned • Configuration, modularization, openness to partners ... microservices, 100% APIs, external exposure Radical supplier consolidation ... few strategic suppliers scaled across footprint, long tail reduced by >50% Strategic workforce planning ... rightsized external share, maximized near-shoring SAFe = Scaled Agile Framework, CI/CD = Continuous integration/Continuous delivery 29 JANUARY 2021#53TRANSFORMING OUR COST BASE Main cost reduction drivers MANUAL WORK MANY PRODUCTS 54 COMPLEX IT ANALOGUE CUST. INTERACT. MASS COMMUNICATION EXPANDING OVER HEAD NON-DATA DRIVEN R S = Sales & Marketing = Other OPEX = Resource costs Δ Δ Δ AUTOMATED WORK FEW PRODUCTS MODERN AND SIMPLIFIED IT DIGITAL CUST. INTERACT. TARGETED COMM. REDUCED OVER HEAD DATA DRIVEN RSO ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Transformation driven OPEX* reduction to 2023 SEK in billions Resources Sales & Marketing Inspire Connect Transform Deliver Other OPEX STRATEGY UPDATE 29 JANUARY 2021 2BN Total OPEX reduction by 2023 Target reduction in resources of which 1k in 2021 Restructuring costs to increase by around SEK 0.5 billion per year *OPEX is defined as indirect costs, i.e. excluding COGS (such as network, equipment and content)#54CAPEX EFFICIENCIES 55 Main CAPEX efficiency drivers Standardization and simplification Leverage insight and analytics Improved planning Stringent prioritization ● ● STRATEGY UPDATE Transformation driven OPEX* and CAPEX reduction to 2023 SEK in billions Resources Sales & Marketing 29 Other OPEX *OPEX is defined as indirect costs, i.e. excluding COGS (such as network, equipment and content) JANUARY 20 21 Inspire Connect Transform 2BN Total OPEX reduction by 2023 3BN İ CAPEX Total efficiency transformation Deliver#55CAPEX DEVELOPMENT 2021-2023 Connect Connect Transform Main components and benefits 56 Network modernization MOBILE 5G roll-out NETWORK Partly replacing FIXED NETWORK PRODUCT DEV./ IT ● ● ● ● ● ● ● ● coverage/capacity investments Copper legacy shut down Continued footprint growth Selective fiber deployment with partners Modernize and simplify IT Convergence capabilities Digitalize customer journeys New and common product platforms Strengthen analytics capabilities Coverage ARPU uplift Reduced churn Footprint Customer base OPEX reduction Products Cust. experience OPEX reduction Increased CAPEX 2021 - not above past levels Excl. Telia Carrier 17% 16% Inspire Connect Transform Deliver 17% 2020 2021 2019 ■ Mobile NW ■Fixed NW STRATEGY UPDATE 29 JANUARY 20 21 15% 2023 ■ Prod dev/IT ■ Other Investment program subject to rigorous benchmarking and focus on returns x CAPEX/Net sales#56WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE તી DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#57DELIVERING SUSTAINABLY ની Starting point Limited coordination and control, reducing clarity in strategy execution and roles ● ● ● Not enough structural cost reductions, with significant gaps across units vs. our peers Footprint refocused Engaged and motivated employees and strengthened executive team Authentic track record in ESG agenda Telia Company -DELIVERING SUSTAINABLY- Value creation levers ● ● C Strengthened Leadership Team with track record of delivering at successful, agile, digital telcos ---- Inspire Connect Transform Deliver Strengthened strategy execution ... by building best in class operational and executional excellence Bold CX-led transformation program ... enabling significant structural cost take out, and a platform for growth Ambitious ESG agenda now fully incorporated into our Purpose and our Strategy ….. STRATEGY UPDATE 29 JANUARY 2021#58STRENGTHENED LEADERSHIP TEAM 59 Heli Partanen Cecilia Lundin Anders Olsson Jonas Bengtsson y Markus Messerer Per Christian Morland Group Leadership Team meeting Casten Almqvist Rainer Deutschmann Stein-Erik Vellan Per Carleö Rachel Samrén Dan Strömberg 0 ... STRATEGY UPDATE 29 JANUARY 2021 Meeting chat 2 Inspire Connect Transform Deliver Today 1:40 PM Meeting started Almqvist, Casten, Lundin Cecilia, Deutschmann, Rainer and 11 others joined the meeting Last read Reply Samrén, Rachel 1:41 PM All good! Leave Olsson, Anders 1:41 PM Hello Team! How are you? X X#59STRENGTHENED STRATEGY EXECUTION ... Strategy ● ● ● 60 WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR.. DIGITAL EXPERIENCES BY EXCELLING AT. CONNECTING EVERYONE () MOST ENGAGED EMPLOYEES SO THAT WE HAVE THE TRANSFORMING TO DIGITAL DIGITAL INFRASTRUCTURE MOST SATISFIED SHAREHOLDERS Purpose led Focused Commercially anchored P DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES Operationalization STRATEGY EXECUTION-SWEDEN MILESTONES TARGETS OWNERS INSPIRE CUSTOMERS Anders Nilsson NPS Chun (Moble) conver households ARPU (per seg mobi, fed.) Brand preference ● Smart Orchestrator pilot CONNECT EVERYONE Per Joelsson 80 population coverage CAPEX/Net Sales Cost W experience index O TRANSFORM TO DIGITAL Convergence roadmap p1 Niklas Gauert. Share automated processes Number of products Share of IT spend in legacy Convergence roadmap p2 DELIVER SUSTAINABLY Per Hoffman Tots OPEX Scaling EMN DENG Deliver of our sustainability goals Asset monetization Clear accountability Performance management Sense of urgency O O ● Transformation STRATEGY UPDATE 29 JANUARY 2021 TRANSFORMATION EXECUTION Inspire customers Connect everyone Transform to digital Deliver sustainably 64 1 Customer Experience& CVM Inspire Connect Transform Deliver 2 Future Connectivity 3 Business portfolio Simple and digital Operational excellence 4 5 6 Future IT, Analytics & Portfolio simplification People & Telia Way of Working Group Transformation Office (GTO) Sweden Finland Norway LED == Media Group Customer and business driven Leadership led Holistic and cross-functional Agile execution with all countries#60WITH INTEGRATED SUSTAINABILITY ... Where we are Where we are going 61 Select examples Inspiring our Customers ✓Climate-neutral in own operations Strong supply chain and customer focus ✓ ● ● Zero CO₂ and zero waste by 2030 - including our Science Based Targets Sustainable brand through sustainable growth (Sustainable Brand Index) 12 CONSUMPTION RESPONSIBLE AND PRODUCTION со 13 ACTION SUSTAINABLE CITIES AND COMMUNITIES HEBED NDUSTRY PIMINATION AND INFRASTRUCTURE Digital inclusion: ~120,000 persons reached in 2020 ✓ Advancing towards top tier positions ● ● Connect Everyone ● Leave no-one behind: One million reached by 2025 Leadership position in protecting and empowering children online Committed to deliver strong contributions to several Sustainable Development Goals: Top-tier positions in Privacy & Security 5 EQUALITY STRATEGY ONDUSTRY INNOVATION AND NERASTRUCTURE 10 NEQUALITIES 16 Transform to Digital ✓ Development of processes and incentives AND STRONG INSTITUTIONS ● ● Proactive management of risks and opportunities in product development Environmental assessments ahead of investments Securing the right incentives and skills SUSTAINABLE DEVELOPMENT GOALS 17 PARTNERSHIPS FOR THE GOALS UPDATE 29 JANUARY 20 21 ✓ Highest rating (AAA) by MSCI ESG Research ✓ 40% women in top management ● ● ● Inspire Connect Transform Deliver ● Deliver Sustainably Human Rights Impact Assessments in business decisions 50/50 gender balance by 2025 in top management Up- and re-skilling initiatives Top-tier rated ESG rankings 3DOOD HEALTH AND WELLBEING 5 GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH M PEACE JUSTICE 16 AND STRONG INSTITUTIONS#61FOR SUBSTANTIAL VALUE CREATION Inspire our customers REVENUE DEVELOPMENT 2021-2023 62 Low single digit growth 2021-23 Bustrative, excl Tela Camer Service Less burden ahead Legacy and TV to recover faster than roaming and ad revenues COVID-19 recovery improvem ARPU improve mobiln experience ind 5G moneszation Reduce chum and increase upsell potential Convergence increase share of walet Now revere stans INVESTOR BRIEF 29 JANUARY 2021 Service revenue ambition Low single digit service revenue growth CAPEX DEVELOPMENT 2021-2023 Main components and benefits MOBILE NETWORK Connect everyone FIXED NETWORK PRODUCT DEV/IT Network modernization 5G roll-out Partly replacing coverage capacity investments Copper legacy shut down Continued footprint growth Selective fiber deployment with partners Modemure and simpaty IT Convergence capabilities Digtelize customer joumeys platforma Strengthen analytics capab Coverage Footprint Customer base OPEX reduction Cust experience Increased CAPEX 2021-not above past levels Excl Tela Carrier Connect Transform 2010 2020 2023 Mobile NW Fixed NW *Prod devilT Other CAPEX/Net sales Investment program subject to rigorous benchmarking and focus on returns INVESTOR BRIEF 29 JANUARY 2021 Cash CAPEX to increase 2021 Return to 15% of net sales 2023 STRATEGY UPDATE 6 01 5 4 3 2 1 0 Transform to digital 2bn OPEX reduction by 2023 1bn CAPEX efficiency by 2023 OPEX 3BN Trans- formation by 2023 2bn OPEX reduction to 2025 CAPEX 5BN 1bn 4bn Trans- formation by 2025 SEK 2bn lower OPEX by 2023 SEK 4bn lower OPEX by 2025 Plus SEK 1bn CAPEX efficiency 29 JANUARY 2021 Inspire Connect Transform Deliver Deliver sustainably 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) Low single digit serv. rev. growth Low to mid single digit adj. EBITDA growth#62OUR OUTLOOK 63 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) STRATEGY UPDATE 2021 Inspire Connect Transform Deliver 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) 29 JANUARY 2021#63CASH FLOW 2021-2023 OpFCF 2016-2020 IIII| 2016 2017 2018 2019 2020 ■EBITDA-CAPEX* NWC contr■ Other 64 *Cash CAPEX excl. licences for spectrum ADJ EBITDA CASH CAPEX OTHER STRUCTURAL PART OF CF WORKING CAPITAL OP FCF 2020 2021 30.7 -13.5 -8.2 8.9 3.2 12.1 STRATEGY UPDATE II = ▶ 2022 = = ▶ 2023 = Increased YoY cash flow contribution = = Decreased YoY cash flow contribution 29 JANUARY 20 21 Comment Service revenue growth and cost reductions ● ● ● ● ● Inspire Connect Transform Deliver CAPEX increase in 2021 from modernization/5G/transformation - efficiency gains impact in 2023 Higher restructuring compensated by pension and lease repayments Minimum dividend coverage from 2022 2016 2017 2018 2019 2020 2021 2022 Cash flow contr from wc 2023 Minimum dividend covered all years#64STRONG BALANCE SHEET Leverage target Net debt to EBITDA 65 2.0 - 2.5x CREDIT RATING TARGET OF A SOLID INVESTMENT GRADE RATING OF A-TO BBB+ Sustainable financial management ● ● ● ● Inspire Connect Transform Deliver On a journey to become a fully sustainable credit investment STRATEGY UPDATE 29 JANUARY 2021 Green bond framework launched in Oct 2019 First ever Nordic Telco Green Bond Hybrid transaction in Feb 2020 First Green Bond Report to be released in Feb 2021#65Inspire Connect Transform Deliver PREDICTABLE, SUSTAINABLE SHAREHOLDER REMUNERATION Dividend policy: 66 A DIVIDEND FLOOR OF SEK 2.00 PER SHARE WITH AN AMBITION FOR LOW TO MID SINGLE DIGIT GROWTH Considerations • Cash dividends for Telia shareholders to reflect anticipated growth in profits over the medium term • Dividend policy compatible with robust budgeted free cash flow and with targeted leverage levels ● ● OpFCF expected to cover the minimum level through out the 2021-2023 period Structural part of OpFCF to cover the minimum dividend as of 2022 STRATEGY UP DATE 29 JANUARY 2021#66DELIVERING SUSTAINABLE VALUE STRATEGY FOR A BETTER TELIA WE REINVENT BETTER CONNECTED LIVING DIGITAL CONNECTIVITY INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS 67 THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... L CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE ની. DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES FINANCIAL AMBITIONS SERVICE REVENUE Low single digit growth ADJUSTED EBITDA Low to mid single digit growth CASH CAPEX Return to around 15% of net sales Inspire Connect Transform Deliver DEBT AND EQUITY MAINTAIN STRONG BALANCE SHEET STRATEGY UPDATE 29 JANUARY 20 21 ATTRACTIVE SHAREHOLDER RENUMERATION Net debt to EBITDA 2.0-2.5x Credit rating A- to BBB+ DPS floor of 2.00 with an ambition for low to mid single digit growth#67CONCLUDING REMARKS STRATEGY UPDATE 29 JANUARY 20 21#68REINVENTING A BETTER TELIA • Focused footprint in a dynamic region ● ● ● Multiple levers enable a return to growth • CX-led transformation will create significant value ● • Further upside from infrastructure • Potential for attractive shareholder returns New, and strengthened leadership Clear roadmap to deliver 69 INSPIRING CUSTOMERS CONNECTING EVERYONE TRANSFORMING TO DIGITAL DELIVERING SUSTAINABLY STRATEGY UPDATE 29 JANUARY 2021#69WE REINVENT BETTER CONNECTED LIVING DIGITAL CONNECTIVITY Ö INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS Most loyal customers across the Nordics & Baltics THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES The home of the most engaged employees S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS DIGITAL INFRASTRUCTURE ((:)) Consistently delivering to the most satisfied Shareholders al DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES Empowering the societies of the Nordics & Baltics#70WE REINVENT BETTER CONNECTED LIVING @ DIGITAL CONNECTIVITY -ġ³ INSPIRING CUSTOMERS MOST LOYAL CUSTOMERS THROUGH OUR... DIGITAL EXPERIENCES BY EXCELLING AT... S CONNECTING EVERYONE SO THAT WE HAVE THE... MOST ENGAGED EMPLOYEES S TRANSFORMING TO DIGITAL MOST SATISFIED SHAREHOLDERS ((:)) DIGITAL INFRASTRUCTURE તી DELIVERING SUSTAINABLY MOST EMPOWERED SOCIETIES#71Q&A SSX 021 STRATEGY UPDATE 29 JANUARY 20 21