#1Q3 Interim report January - September 2022 Telia Company#2Group highlights - - - Growth momentum continued Solid service revenue growth, with mobile up 4.1% OPEX declined 2.1% excluding energy EBITDA growth of 1.0% EBITDA growth of 4.9% excluding energy Cash flow impacted by sport content payments Leverage at 2.07x Share buy back program progressed c. 100 million shares bought during Q3 Outlook updated to reflect energy and macro uncertainty - 2 SEK billion Service revenues OPEX excl. energy change * Adjusted EBITDA (... of which Core Telco) Cash CAPEX excl. licenses & spectrum* Op FCF* Leverage ratio Change in reported SEK Q3 2022 19.0 0.0 8.1 (7.8) 3.4 2.1 2.07x Change LFL vs. Q3 2021 +2.3% -2.1% +1.0% (+0.5%) +9.1% -30.1% -0.19x#3Strategy highlights - - Service revenue growth in all units for the first time Mobile growing 4.1%, Enterprise growing 1.5% - Pricing momentum building Network modernization on track - 5G coverage reached 63% of Nordic/Baltic population - Lithuania 5G at 80% coverage immediately after 700MHz license granted Digital transformation and OPEX reduction on track - Improving customer experience - Legacy take-out continues to be on track - Volatile energy prices impacting, but large part of next 12 months energy now secured TV and Media business to be refocused Sustainability leadership recognized Awarded platinum status by EcoVadis 3 Inspiring customers With brands and experiences that go beyond connectivity L Connecting everyone Through the most trusted, reliable and efficient modern networks ~ Transforming to digital To be simpler, faster, data driven and with lower cost ની Delivering sustainably Through an accountable and empowered organization#4Sweden financials * Service revenues Reported currency, in SEK millions, like for like growth 7,337 Q3 21 7,677 Q4 21 ■Consumer +1.2% 7,380 Q1 22 7,446 Q2 22 7,429 Q3 22 ■ Enterprise ■ Other Service revenue increased 1.2% (SEK 92m) with growth in both mobile and fixed Copper legacy = fixed telephony and xDSL Mobile increased 2.3%, Broadband 4.1%, and TV 14.7% Service revenues split Reported currency, in SEK millions, like for like growth 6,601 6,975 Q3 21 6,728 6,823 LLLLL Q1 22 +3.4% Q4 21 6,826 603 4 Q2 22 Q3 22 Roaming ■Copper legacy* ■Underlying Underlying service revenue growth, excl. copper and roaming recovery of 3.4% Copper headwind remained largely unchanged at c. SEK 170m Adj EBITDA Reported currency, in SEK millions, like for like growth 3,353 Q3 21 3,541 Q4 21 +1.2% 3,337 Q1 22 Adj EBITDA 3,358 Q2 22 3,394 Q3 22 EBITDA increased 1.2% despite continued legacy headwinds and inventory write down#5Sweden KPIs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in SEK 244 4,112 Q3 21 248 4,071 Q4 21 248 4,070 Q1 22 Postpaid ex M2M 249 4,102 Q2 22 Subscriber base stable ARPU continues to grow (+1.9%) 249 4,104 Q3 22 ARPU Broadband subs and ARPU Subscriptions '000, ARPU in SEK 320 209 1,035 Q3 21 324 182 1,066 Q4 21 Fiber and FWA 323 162 1,087 Q1 22 323 LO 137 5 1,109 Q2 22 Copper 332 118 1,120 Q3 22 Slightly lower subscriber base as fiber and FWA did not fully compensate copper decline ARPU ARPU growth accelerated (+3.6%) from pricing initiatives TV subs and ARPU Subscriptions '000, ARPU in SEK 176 975 Q3 21 185 997 Q4 21 186 1,015 Q1 22 Subscriptions 186 1,028 Q2 22 ARPU 186 1,044 Q3 22 Continued solid development in IPTV subs APRU growth of +6.2% supported by sports subscriber growth and pricing#6Finland Service revenues Reported currency, in SEK millions, like for like growth - 3,007 Q3 21 3,110 Q4 21 +0.7% 3,092 Q1 22 3,117 Q2 22 Consumer Enterprise Other 3,155 Q3 22 Return to growth driven by mobile Mobile growth accelerated (+3.5%) despite interconnect headwinds Continued pressure on fixed revenues Adj EBITDA Reported currency, in SEK millions, like for like growth 1,179 Q3 21 1,042 Q4 21 -7.3% 1,111 Q1 22 ■Adj EBITDA 1,130 1 Q2 22 1,140 Q3 22 EBITDA declined due to increased energy prices almost 3x higher Mobile postpaid subs and ARPU Subscriptions '000, ARPU in EUR 18.5 2,786 Q3 21 18.7 2,798 Q4 21 18.4 2,771 Q1 22 Postpaid ex M2M 18.8 2,774 Q2 22 18.8 ARPU 2,780 Q3 22 Subscriber base growth supported by both Consumer and Enterprise ARPU increase supported by 5G migrations, pricing and roaming#7Norway Service revenues Reported currency, in SEK millions, like for like growth 2,913 Q3 21 3,014 Q4 21 ■Consumer +5.9% 3,146 Q1 22 3,137 Q2 22 Enterprise ■ Other 3,298 Q3 22 Service revenue increased +5.9% (SEK 174m) driven by both mobile (+6.4%) and fixed (+4.6%) Strong development in both Consumer (+3.6%) and Enterprise (+8.1%) Adj EBITDA Reported currency, in SEK millions, like for like growth 1,652 Q3 21 1,556 Q4 21 +4.5% 1,666 Q1 22 Adj EBITDA 1,591 7 Q2 22 1,846 Q3 22 EBITDA growth driven by solid service revenue development Mobile postpaid subs and ARPU Subscriptions '000, ARPU in NOK 285 1,886 Q3 21 283 1,893 Q4 21 285 1,899 Q1 22 Postpaid ex M2M 283 1,910 Q2 22 293 1,922 Q3 22 ARPU Subscriber base grew, driven by Enterprise ARPU growth mainly driven by roaming recovery#8LED markets Lithuania Reported currency, in SEK millions, like for like growth +5.6% 840 841 862 905 924 404 370 -0.5% 401 414 419 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Service revenues EBITDA Service revenue growth driven mainly by mobile growing +10.8% Slightly negative EBITDA development due to significantly higher energy costs Estonia Reported currency, in SEK millions, like for like growth 684 698 +5.0% - 729 725 749 313 292 +4.4% 8 326 323 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Service revenues EBITDA 340 Broad based service revenue growth driven by both mobile +6.3% and fixed +4.9% EBITDA growth of +4.4% from service revenue flow through Denmark Reported currency, in SEK millions, like for like growth 981 +2.2% 968 990 994 1,044 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Service revenues +8.1% 235 242 235 248 268 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 EBITDA Service revenue growth driven by mobile +2.8% EBITDA benefited from revenue growth and an easier y-o-y comparison, partly offset by significantly higher energy costs#9TV and Media Service revenues Reported currency, in SEK millions, like for like growth 1,878 Q3 21 2,594 Q4 21 TV +0.2% 2,031 Q1 22 2,333 Q2 22 Advertising ■ Other 1,898 Q3 22 Strong Advertising revenues (+5.9%) offset by declining Pay revenues (-10.5%) Digital advertising revenue continued to grow double digit Adj EBITDA Reported currency, in SEK millions, like for like growth 191 Q3 21 -7 Q4 21 +23.5% -191 Q1 22 345 9 Q2 22 234 Q3 22 EBITDA benefited from lower y-o-y content related costs C More direct OTT subs and ARPU Subscriptions '000, ARPU in SEK 168 198 540 Q3 21 ISWE 177 183 566 Q4 21 FIN 163 167 551 Q1 22 165 155 523 Q2 22 DEN 158 157 550 Q3 22 ARPU Subscription base increased due to sports in Sweden#10Q3 Interim report January - September 2022#11Service revenues 11 Service revenue bridge Like for like growth - +2.3% Q3 21 SWE FIN NOR DEN LIT OUTLOOK EST TVM Other Q3 22 Growth in Sweden driven by mobile, broadband and TV Finland turned positive driven by mobile Strong momentum in Norway continued Service revenue development Like for like growth - - 2.4% Q3 21 2.9% Q4 21 3.2% 2022: Service revenues, like for like, to grow by low single digit 2021-2023: Service revenues, like for like, to grow by low single digit Q1 22 Core Telco Consumer +2.6% Core Telco Enterprise +1.5% TV and Media +0.2% 2.4% Q2 22 2.3% Q3 22#12OPEX 12 OPEX excl. energy bridge Like for like growth Q3 21 Resources AMBITION -2.1% Marketing Other Q3 22 Resource cost reduced by SEK 152m in Q3 driven by a 700 FTE/FTC reduction OPEX excl. energy development In SEK billion, 2020 average FX rates, excl. Telia Carrier, R12 24.4 Q4 20 Q1 21 Q2 21 -1.0 Q4 21 Q1 22 OPEX R12 excl energy Q3 21 Q2 22 2021-2025: OPEX excluding energy to decline by at least SEK 2bn until 2023 and by SEK 4bn until 2025 23.4 Q3 22 OPEX excluding energy reduction to date of SEK 1.0 billion driven by lower resource and IT costs Pace to accelerate driven by additional FTE/FTC reductions#13Energy Electricity hedging % of own consumption in SWE, FIN, NOR, EST 100% 80% 60% 40% 20% 0% 2022 Q4e 2023e Hedged Unhedged 2024e Policy to hedge 70% short-term and 60% for next 12 months Effective hedging at c. 50% of total as consumption in Denmark, Lithuania, Latvia and via landlords is unhedged Price SEK/MWh, average prices across footprint 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 O 21 - Jan 21 - Dec 22 - Dec .. Average actual price Average (futures Oct 2022) Average (futures Jun 2022) Average (futures Nov 2021) A 13 23 - Dec Prices in Q3 around 3x higher y-o-y with variations between markets Both spot prices and futures have moved significantly last few months ...... 24- Dec 700 600 500 400 300 200 100 0 - Energy cost per quarter In SEK million, 2020 average FX rates, excl. Telia Carrier - Q1 20 Q2 Q3 Q4 Q1 20 20 20 21 +300 Q2 Q3 Q4 Q1 Q2 Q3 21 21 21 22 22 22 ■ Consumption Grid fees and taxes 2022 cost increase expected at SEK 900m, and another SEK 600m in 2023 PPA agreements in Estonia from Q1'23 and in Denmark from Q4'24#14EBITDA 14 Adj EBITDA bridge Like for like growth - - +1.0% Q3 21 SWE FIN NOR DEN LIT OUTLOOK EST TVM Other Q3 22 Another solid quarter in Sweden and strong Norway Finland negative due to energy TV and Media increased EBITDA due to lower content costs Adj EBITDA development Like for like growth EBITDA ■ EBITDA excl. energy cost increase -1.9% - -1.4% Q3 21 0.0% 1.3% Q4 21 0.1% 1.2% Q1 22 0.8% 2.2% Q2 22 Q3 EBITDA grew despite energy cost headwinds Adjusted for energy headwinds EBITDA grew 4.9% 2022: Adjusted EBITDA, like for like, to be similar to last year and, excluding energy cost increases, to grow by low single digit 2021-2023: Adjusted EBITDA, like for like, excluding energy cost increases, to grow by low to mid-single digit 1.0% 4.9% Q3 22#15Cash CAPEX 15 Cash CAPEX by type Reported currency, in SEK billions, excl. licenses and spectrum fees 3.1 Q3 21 5.2 Q4 21 Mobile NW OUTLOOK 3.0 Q1 22 Fixed NW 3.7 Q2 22 Prod dev/IT Q4 2021 is an outlier due to network modernization, 5G and transformation related activities 3.4 Q3 22 Other Cash CAPEX development Reported currency, in SEK billions, excl. licenses and spectrum fees, R12 15 14 13 12 - Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Cash CAPEX R12 of SEK 15.3bn or 17.0% of net sales Cash CAPEX R12 to decline in Q4 2022: Cash CAPEX, excluding fees for licenses and spectrum, to be in the range of SEK 14.0-15.0 billion 2023: Cash CAPEX, excluding fees for licenses and spectrum, to return to around 15% of net sales 15.3#16Operational free cash flow Operational free cash flow bridge Reported currency, in SEK billions 16 - - 2.9 Q3 21 EBITDA Cash CAPEX AMBITION -0.9 Intr./tax Other NWC Lower cash flow due to mainly working capital Working capital impacted by phasing of content payments Slightly positive contribution from vendor financing 2.1 Q3 22 Operational free cash flow development Reported currency, in SEK billions, R12 14 12 10 8 6 4 2 0 - Minimum dividend level (post buy-backs) Q3 20 Q1 21 Q3 21 Operational free cash flow Q1 22 For 2022, both the operational free cash flow and the structural part of operational free cash flow are expected to be below the minimum dividend commitment of SEK 7.9 billion Structural part 6.7 6.6 Q3 22 Cash flow declined from working capital and increased cash CAPEX#17Net debt and leverage Net debt and leverage development Reported currency, in SEK billions and leverage ratio 17 2.01x 60.2 -6.2 Q2 22 Operations TARGET 3.7 Cash CAPEX +2.5 3.3 Buy- backs = Leverage ratio (multiple, rolling 12 months) 1.7 Other 2.07x 62.6 Q3 22 - - Share buy-backs of SEK 3.7 billion performed Q2-Q3 Balance sheet remained strong with leverage at 2.07x Signed a sustainability linked EUR 1.2 billion revolving credit facility Two benchmark Hybrid bonds issued 2022 despite difficult market conditions Net debt/adjusted EBITDA in the range of 2.0-2.5x#18Outlook 2021-2023 (updated) Service revenues* Low single digit growth Adjusted EBITDA* excl. energy cost increases to grow by low to mid-single digit Cash CAPEX excl. licenses and spectrum Return to around 15% of net sales by 2023 * Like for like 18 2022 (updated) Service revenues* Low single digit growth Adjusted EBITDA* similar to last year, and excl. energy cost increases to grow by low single digit Cash CAPEX excl. licenses and spectrum In the range of SEK 14.0-15.0bn#19To conclude...#20Q3 2022 in summary - - Growth momentum continued Pricing initiatives are gaining momentum Solid Core Telco and Advertising development TV and Media now being set up for the future Transformation continued and OPEX declined, excluding energy headwinds Balance sheet remains healthy Macro headwinds accelerated Updated outlooks for EBITDA and cash flow reflect changed macro environment Full focus on delivering on our plan, with accelerated pricing and cost initiatives 20 Inspiring customers With brands and experiences that go beyond connectivity L Connecting everyone Through the most trusted, reliable and efficient modern networks ~ Transforming to digital To be simpler, faster, data driven and with lower cost ની Delivering sustainably Through an accountable and empowered organization#21Q&A#22Telia Company#23Sustainability fully integrated into our strategy Three impact areas in focus Our ambitions 2021 selected highlights 2022 YTD Q3 selected highlights ☆ Climate and circularity Leading the way through a bold environmental agenda Zero CO2 and Zero Waste by 2030 Climate neutral in own operations 27% of supply chain emissions covered by science-based targets Scaling circularity - 15% of all routers and set top boxes distributed to customers have been reused Driving digital inclusion through reliable access and the right skills - Digital inclusion 1 million individuals reached through digital inclusion initiatives by 2025 Significant investments in the network of the future ~600,000 individuals reached during the year to build digital skills 923,000 individuals reached through digital inclusion initiatives 23 Privacy and security Earning trust through strong privacy protection measures and secure networks Top tier positions/preferred supplier in all markets - Ranked No 1 or 2 on privacy in 5 out of 6 markets (some shared positions) Several contract-wins with elevated security requirements Increased security efforts across markets due to current geo-political situation to protect and inform customers about risks#24Telia Company