#1Telia Company TELIA COMPANY ACQUIRES GET AND TDC NORWAY July 17, 2018#2TRANSACTION SUMMARY STRATEGIC RATIONAL 2 VALUE FINANCIAL EFFECTS BALANCE SHEET IMPACT CONDITIONS TIME TABLE * EBITDA - Capex ● ● ● ● ● ● ● ● ● Strengthen and develop core operations in the Nordic and Baltic region - Norway a very attractive market Enable fixed and mobile converged offerings in Norway to consumers and enterprises NOK 21.0 billion on a cash and debt free basis Implies EV/EBITDA, including full run rate synergies of 9.0x, (based on 2017FY) Cash flow* synergies NOK 0.7 billion Accretive to Telia Company EPS (+3%) and cash flow* (+9%) immediately after closing Total consideration to be financed using cash on balance sheet Net debt to EBITDA proforma post transaction of 1.9x Subject to approval from Norwegian Competition Authority Expected closing in H2 2018#3STRONG STRATEGIC & FINANCIAL RATIONALE STRATEGIC SWEET-SPOT ● ● ● Capital allocation to attractive Norway Convergence B2C - "hub to what matters" Convergence B2B- "digitalization partner of choice" Proven track record and value creation from M&A • Connecting 1.8 million Norwegians ● ● BEST IN CLASS STAND ALONE OPERATION ● More than 0.5 million paying users with high loyalty Superior high speed hybrid/coax-fiber network Strong operational track record Respected management and employees ● FINANCIALLY ACCRETIVE Highly synergetic transaction NOK 0.6 billion on EBITDA ● ● NOK 0.7 billion on EBITDA less CAPEX Proven track record to realize synergy potential Accretive to EPS (+3%) and cash flow (+9%) on a stand alone basis#4IN LINE WITH NORDIC/BALTIC STRATEGY The most loyal and satisfied customers in our markets Building on connectivity leadership... Best network experience across platforms VALUES TSR among the top relevant European peers PCF Care Dare 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#5LEADING COMMUNICATION AND ENTERTAINMENT PLAYER FINANCIALS NOK billion Revenues Revenue CAGR 2015-2017 EBITDA EBITDA margin EBITDA CAGR 2015-2017 EBITDA-CAPEX Cash conversion REVENUE DISTRIBUTION** Business Other Services 8% 23% 28% Broadband TV 41% * Including 24 Partners **All numbers 2017 2017 4.0 3.2% 1.7 43.4% 7.6% 0.9 53.1% CUSTOMERS** Homes passed* Homes connected RGUS B2B customers RGUS SME SDU GET HOMES CONNECTED** Partners 16% 1% get 800k 518k 950k 23% TDC 2k 77k 60% MDU ● ● ● ● ● NETWORK GET Partners Transport ring Connecting ~1.8 million Norwegians every day High loyalty - low single digit churn High speed broadband Advanced TV entertainment Smart home services Multiservice network with a range of as-a-service products - IPVPN, Internet, WiFi, VOIP and TV#6CONTINUOUSLY AT THE FOREFRONT OF INNOVATION CO CURRENT MARKET FUNDAMENTALS AND CUSTOMER DEMAND 6 PIONEERS IN INNOVATION AND ADOPTION TO DEMAND *Source: TNS Gallup 2017 **Source SSB 2017 2000 COLLECTIVE BB COLLECTIVE DTV TV STILL THE MOST IMPORTANT SOURCE OF ENTERTAINMENT... 2009 96% 2002 I of Norwegian households with TV subscription** TIME-SHIFTED TV 2004 2017 95% <<EVERYTHING OVER IP» 2006 ED 3.0 & 50 MPS 50 mops 2008 ...BUT CUSTOMERS WANT MORE! 51% Pay for streaming services ~180,-* Pay in average MOST FLEXIBLE TV PACKAGE 2010 NEXT GEN TV ON MOBILE & PAD 46% Think sport is important in their TV package 25% Choose to pay for premium sport** UNLIMITED CLOUD STORAGE 2012 GET SKY I I I I I I I 2014 POINT SYSTEM 2016 HBO IN BASIC TIER 2018 STREAMING PLATFORM#7KEY VALUE PROPOSITIONS IN THE MARKET 7 STRENGTHENED ENTERTAINMENT PROVIDER POSITION STATE OF THE ART NETWORK AND WIFI SMART HOME B2B-MULTIPLE SERVICE NETWORK • Content model redefined to meet customer demand New personalized TV package New streaming platform ● ● ● ● Product portfolio with subscriptions from 60-500Mbps Moving to gigabit speeds Modern Wifi solutions Launched Smart home services since 2017 Proven value proposition among MDUS Strengthens position in renegotiations and new sales From IPVPN to cloud based services Drives upsell among existing customers Further potential in mobile services ALL RELEVANT CHANNELS 2.0 AKⓇ NONE UROSPORT tur Discovery +100 PREMIUM MOVIES & SERIES HBO FilmFavoritter CIREUS CURIO S M L XL 60 10 120 15 280 15 350 20 XXL 500 TOC SMART BULDINGS PREMIUM SPORTS SECURITY Premier League ELITE EN FINO 489- TV 580- DIGITAL 669,- 999,- TDC CLOUD-AAS HAY FIXED CONTENT GOOGLE/NETS/ OFFICE 34/SKYPE PRESELECTED OPTIONAL OUT GET SAFE GET CARE GET SMART TDC SMART GBPS 3+ IP VPN Say SO POINTS OPTIONAL IN PAS BERHEN VI GARANTERER WIFI I ALLE ROM WIFIX Remote access 1.1 4G back-up Tygry. JAP#8UNLOCKING MEANINGFUL VALUE FROM SYNERGIES KEY CATEGORIES REVENUES COST EBITDA synergies 8 CAPEX Total synergies * By the end of 2021 NETWORK IT SALES AND CS MARKETING G&A DESCRIPTION ● ● ● ● ● ● Mobile and ed cross-sell opportunities in both B2C and B2B Reduction in lease capacity cost leveraging GET/TDC infrastructure for mobile backhaul Efficient network and IT operations Combined market operations Churn reduction Combine overlapping functions Generate procurement savings and efficiencies Combining investments into networks and IT systems HIGHLY SUCCESSFUL TRACK RECORD IN SECURING AND DELIVERING SYNERGIES FULL RUN-RATE* NOK 0.3 billion NOK 0.3 billion NOK 0.6 billion NOK 0.1 billion NOK 0.7 billion#9FINANCIALLY ACCRETIVE TRANSACTION 2017 (NOK BILLION) Revenues 9 EBITDA (margin) EBITDA-CAPEX** (cash conversion) 2017 (SEK BILLION)* EPS (SEK) EBITDA-CAPEX** (cash conversion) *FX SEK/NOK 1.03 ** Excluding licenses *** Continuing operations TELIA NORWAY 9.8 3.4 35.0% 2.4 70.1% TELIA COMPANY*** 1.92 10.3 41.0% GET & TDC NORWAY 4.0 1.7 43.4% 0.9 53.1% GET & TDC NORWAY 0.06 1.0 53.1% RUN-RATE SYNERGIES 0.3 0.6 0.7 RUN-RATE SYNERGIES 0.10 0.7 COMBINED 14.1 5.8 40.9% 4.0 70.1% COMBINED 2.07 (+7.9%) 12.0 (+16.2%) 44.4%#10MAINTAINING A STRONG CAPITAL STRUCTURE PRO FORMA NET DEBT SEK in billion, Q1 2018 28.5 Net debt Q1 2018 10 1st div tranche Remaining part of global settlement Turkcell M&A dividend proceeds to be distributed 58.7 Purchase Pro Forma price net debt ● ● ● PRO FORMA NET DEBT TO EBITDA 1.0 Net debt to EBITDA Q1 2018 1.9 High-end leverage range Low-end leverage range Pro forma net debt to EBITDA excl. synergies Net debt to EBITDA pro forma within our targeted range Remaining room for further M&A No change to current capital allocation commitments#11Telia Company Q&A#12FORWARD-LOOKING STATEMENTS 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.