#1Telia Company GLOBAL SETTLEMENT REGARDING UZBEKISTAN 21 September 2017#2TODAY'S ANNOUNCEMENT Important day for Telia Company - final closure to a very serious and difficult process • Admits to corrupt payments of USD 330 million, paid by the company Total sanction of USD 965 million. ● ● ● ● ● N Accept our responsibility for historic wrongdoings - wrongdoings come with a cost Brings an end to all known corruption related investigations into Telia Company Following discussions with the US and Dutch authorities, a global resolution is now announced Through cooperation and ambitious sustainability efforts we have shown that Telia Company has changed Authorities have determined that no compliance monitor is needed Important milestone in responsible exit of Eurasia#3UZBEKISTAN TIMELINE September Swedish investigation 3 Entering Uzbekistan 2007 2012 2013 New Board & CEO Media scrutiny Mannheimer Swartling Report 2014 September Announcement divestment / responsible exit Eurasia 2015 March US & Dutch investigations 2016 Mid September Provision 21 Sept. Resolution 2017 Review and remedy period - resetting and building a strong governance and compliance framework April Provision adjusted#4THE SETTLEMENT Telia Company has now reached a settlement with the US and Dutch authorities ● ● Total sanction of USD 965 million. The fine is USD 548 million to be paid in equal parts to the DOJ and the Dutch Public Prosecution Service. The disgorgement is USD 457 million except for USD 40 million which will be paid as a forfeiture to the DOJ. Improvements in Telia Company's Responsible Business have been recognised and accounted for by the authorities Authorities have determined that no compliance monitor is needed Brings to a close all known corruption investigations against Telia Company#5TOTAL SANCTION: USD 965 MILLION LO ONYMC 5 50% * 50% to either the SEC, Sweden or the Netherlands ANGE CO TIES AND EXCHAN COMMISSION If no disgorgement in Sweden, amount will be paid to Dutch Authorities and/or SEC Disgorgement USD 457 million* LIXIV NO TELIA COMPANY Whereof USD 40 million already included in the USD 548 million penalty Fine USD 548 million PARTMENT OF JUS 50% 50% US Department of Justice Securities and Exchange Commissions Swedish Authorities Dutch Authorities Des ★ 2#6IMPLICATIONS • USD 756.5 million payable Q3 2017 ● ● • USD 208.5 million to be paid later pending Swedish and possibly Dutch court proceedings 6 ● The company has invested very significant efforts and resources during the process with world leading legal support and other external experts US: Cravath, Swaine & Moore and Davis Polk & Wardwell UK: Norton Rose Fulbright Netherlands: Nauta Dutilh Sweden: Mannheimer Swartling and Jurie Advokatbyrå Bengt H Nilsson (White collar crime lawyer) IT Forensic and Financial analysis experts: FRA (Forensic Risk Alliance) - - Cravath Davis Polk NautaDutilh MANNHEIMER JURIE FRA SWARTLING#7THE CHANGE JOURNEY (1/2) 7 ● ● Leadership New Board of Directors, CEO & management Focus on cultural change, sustainability part of strategy Sustainability at I core with GREC and Sustainability Committee within Board Leaving no stone un-turned ● ● ● ● Knowledge Review led by Sustainability and Ethics committee Extensive investigations to get full clarity Mannheimer Swartling review Norton Rose Fulbright review Thorough risk assessment ● ● ● Action ● Best-practice structure and processes • Enforcing Introducing Responsible Business Compliance Training of all employees Policies and instructions New strict M&A process ● ● ● Strategic evaluation New Generation Telco Focus on Nordics & Baltics Decision to divest Eurasia over time ● Responsible exit Support and oversight structure Contractual commitments with buyer on Ethics and Compliance Buyer and third party. due diligence Analysis of flow of funds#8THE CHANGE JOURNEY (2/2) ∞o ● ● ● • Third party management, 5 042 assessed suppliers using a supplier due diligence platform, thorough audit with corrective actions taken ● ● New Ethics and compliance function in all countries Due Diligence Experts in Group Sourcing and all countries in Eurasia ● New Code of Responsible Business Conduct, policies and procedures New operating model and reinforced corporate governance Human Rights Impact Assessments performed by BSR in Eurasia, SE and LT 24/7 Speak-up line in 19 languages#9EVOLUTION OF OUR SUSTAINABILITY AGENDA SUSTAINABILITY Step up and get true strategy integration ETHICS AND COMPLIANCE Create a strong foundation YOUNITE Walk the talk and get true company and employee. engagement DEVELOPMENT GOALS 17 GOALS TO TRANSFORM OUR WORLD DIGITAL IMPACT Align with SDGs and get true business integration#10TO SUM UP 10 • Today marks the final closure to a very serious and ● difficult process Brings an end to all other known corruption investigations • Severe consequences and massive learnings We are committed to our responsible exit agenda in and from Eurasia • Now we are stepping up our New Gen Telco journey in the Nordic and Baltics#1111 Q&A