#1Q4 Year-end report January - December 2022 1 Telia Company#2Strategy progress in challenging times - - Continued revenue growth Service revenue growth of 0.7% Mobile up 3.1% OPEX declined 0.9% excluding energy Energy costs increased SEK 0.3bn - EBITDA declined 2.0% Cash flow declined due to working capital phasing Leverage at 2.35x Non-cash impairments announced of SEK 19.8bn Dividend of SEK 2.00 per share proposed for 2022 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 Q4 2022 20.2 +0.1 7.4 (7.5) 5.3 0.4 2.35x Change LFL vs. Q4 2021 +0.7% -0.9% -2.0% (-0.6%) +2.8% -72.2% +0.21x#3Sweden financials * Service revenues Reported currency, in SEK millions, like for like growth - 7,677 Q4 21 7,380 Q1 22 ■Consumer -1.0% 7,446 Q2 22 7,429 Q3 22 7,597 Q4 22 ■ Enterprise ■ Other Service revenue declined 1.0% (SEK 80m) as mobile growth was offset by fixed telephony and business solutions TV and broadband growth impacted by Viaplay disruption Copper legacy = fixed telephony and xDSL Mobile increased 1.1%, broadband 1.1% and TV 1.2% Service revenues split Reported currency, in SEK millions, like for like growth 6,975 6,728 6,823 6,826 7,048 LLLLL Q2 22 Q3 22 Q4 22 Roaming ■Copper legacy* ■Underlying Q4 21 +1.0% Q1 22 Underlying service revenue growth, excl. copper legacy and roaming recovery of 1.0% Copper legacy headwind remained largely unchanged at c. SEK 160m 3 Adj EBITDA Reported currency, in SEK millions, like for like growth 3,541 Q4 21 3,337 Q1 22 -3.4% 3,358 Q2 22 Adj EBITDA 3,394 Q3 22 3,419 Q4 22 EBITDA declined 3.4% due to lower service revenues, higher energy costs (90m) and a lower pension refund (40m)#4Sweden KPIs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in SEK 248 4,071 Q4 21 248 4,070 Q1 22 249 4,102 Q2 22 Postpaid ex M2M 249 4,104 Q3 22 251 4,087 Q4 22 ARPU Subscriber base slightly lower driven by MBB ARPU continues to grow (+1.5%) Broadband subs and ARPU Subscriptions '000, ARPU in SEK 324 182 1,066 Q4 21 323 162 1,087 Q1 22 Fiber and FWA 323 137 1,109 Q2 22 332 118 4 1,120 Q3 22 Copper 328 100 1,152 Subscriber growth as fiber more than compensated for copper decline Q4 22 ARPU ARPU growth slowed to 1.2% as pricing was offset by Viaplay mitigations TV subs and ARPU Subscriptions '000, ARPU in SEK 185 997 Q4 21 186 1,015 Q1 22 186 1,028 Q2 22 Subscriptions 186 1,044 Q3 22 ARPU 177 1,052 Q4 22 Continued solid development in IPTV subs. APRU declined 4.6% due to black screen situation for majority of the quarter#5Finland Service revenues Reported currency, in SEK millions, like for like growth 3,110 Q4 21 3,092 Q1 22 +2.2% 3,117 Q2 22 3,155 Q3 22 Consumer Enterprise Other 3,418 Q4 22 Mobile growth accelerated (+3.8%) despite interconnect headwinds Fixed revenue growth turned neutral Adj. EBITDA Reported currency, in SEK millions, like for like growth 1,042 Q4 21 1,111 Q1 22 -5.5% 1,130 Q2 22 ■Adj EBITDA 1,140 5 Q3 22 1,063 Q4 22 EBITDA declined due to higher energy costs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in EUR - 18.7 2,798 Q4 21 18.4 2,771 Q1 22 18.8 2,774 Q2 22 Postpaid ex M2M 18.8 2,780 Q3 22 19.1 ARPU 2,765 Q4 22 Subscriber base declined slightly ARPU growth improved further to +2.3%#6Norway Service revenues Reported currency, in SEK millions, like for like growth 3,014 Q4 21 3,146 Q1 22 ■Consumer +3.2% 3,137 Q2 22 3,298 Q3 22 Enterprise ■ Other 3,223 Q4 22 Service revenue increased +3.2% (SEK 94m) driven by both mobile (+3.5%) and fixed (+3.3%) Consumer relatively stable (+0.6%), and continued strong development in Enterprise (+7.4%) Adj. EBITDA Reported currency, in SEK millions, like for like growth 1,556 Q4 21 1,666 Q1 22 +2.5% 1,591 Q2 22 Adj EBITDA 1,846 a Q3 22 1,647 Q4 22 EBITDA growth driven by service revenue development offset by higher energy costs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in NOK 283 1,893 Q4 21 285 1,899 Q1 22 283 1,910 Q2 22 Postpaid ex M2M 293 1,922 Q3 22 Subscriber base declined slightly ARPU relatively stable 284 1,913 Q4 22 ARPU#7LED markets Lithuania Reported currency, in SEK millions, like for like growth 841 862 +7.1% 905 924 972 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Service revenues 370 401 +13.3% 414 419 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Adj. EBITDA Service revenue growth driven mainly by mobile growing 10.2% 453 EBITDA growth of 13.3% from service revenue flow through Estonia Reported currency, in SEK millions, like for like growth 698 +5.1% - 729 725 749 791 292 +8.1% 326 323 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Service revenues Adj. EBITDA 340 341 7 Broad based service revenue growth, with mobile growth (+7.9%) and fixed growth (+3.9%) EBITDA growth of 8.1% from service revenue flow through Denmark Reported currency, in SEK millions, like for like growth +0.5% 968 990 994 1,044 1,051 +21.4% 242 235 248 268 321 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Service revenues Adj. EBITDA Service revenue growth driven by mobile +3.1% Substantial EBITDA growth +21.4% from cost transformation#8TV and Media Service revenues Reported currency, in SEK millions, like for like growth 2,594 Q4 21 2,031 Q1 22 TV -2.7% 2,333 Q2 22 1,898 Q3 22 Advertising ■ Other 2,564 Q4 22 Advertising fairly stable Digital advertising revenues continued to grow at a double digit rate Pay landscape remained challenging Expired Danish wholesale agreement fully annualized from Q1 2023 Adj. EBITDA Reported currency, in SEK millions, like for like growth -7 Q4 21 -191 Q1 22 n/a 345 Q2 22 234 8 Q3 22 -112 Q4 22 EBITDA declined mainly due to lower service revenues C More direct OTT subs and ARPU Subscriptions '000, ARPU in SEK 177 183 566 Q4 21 ISWE 163 167 551 Q1 22 165 FIN 155 523 Q2 22 158 157 550 Q3 22 DEN 173 159 605 Q4 22 ARPU Sweden growth in both sports and non-sports#9Q4 financials#10Service revenues 10 Service revenue bridge Like for like growth +0.7% Q4 21 SWE FIN NOR DEN LIT OUTLOOK 2022 EST TVM Other Q4 22 Revenue momentum hampered by Sweden Consumer and C More Service revenue development Like for like growth Full Group Core Telco 2.9% - 1.7% Q4 21 3.2% 2.9% Q1 22 Service revenues, like for like, to grow by low single digit 2.4% 2.5% Q2 22 Core Telco Consumer +0.5% Core Telco Enterprise +1.9% TV and Media -2.7% 2.3% 2.6% Q3 22 0.7% 1.2% Q4 22#11OPEX 11 OPEX excl. energy bridge Like for like growth - - Q4 21 Resources AMBITION 2021-2025 -0.9% Marketing Other Q4 22 Resource costs decreased despite lower pension refund vs. last year Marketing down due to efficiencies Other increased driven by misc. items (travel, properties etc.) OPEX excl. energy development In SEK billion, 2020 average FX rates, excl. Telia Carrier, R12 24.4 Q4 20 Q1 21 Q2 21 Q3 21 -1.1 Q4 21 Q1 22 OPEX R12 excl energy Q2 22 OPEX excluding energy to decline by at least SEK 2bn until 2023 and by SEK 4bn until 2025 Q3 22 23.3 Q4 22 OPEX excluding energy reduction to date of SEK 1.1 billion driven mainly by lower resource and IT costs#12EBITDA 12 Adj. EBITDA bridge Like for like growth -2.0% Q4 21 SWE FIN NOR DEN LIT EST TVM Other Q4 22 EBITDA impacted by energy in all markets and lower pension refund in Sweden OUTLOOK 2022 Adj. EBITDA development Like for like growth Full Group ■Core Telco 0.0% 2.9% Q4 21 0.1% 4.6% Q1 22 0.8% 4.3% Q2 22 1.0% 0.5% Q3 22 -2.0% Adjusted EBITDA, like for like, to be similar to last year and, excluding energy cost increases, to grow by low single digit -0.6% Q4 22 Energy costs increased by SEK 0.3bn Q4 and by SEK 0.8bn for the full-year#13Cash CAPEX 13 Cash CAPEX by type Reported currency, in SEK billions, excl. licenses and spectrum fees - 5.2 Q4 21 3.0 Q1 22 Mobile NW OUTLOOK 2022 3.7 Q2 22 Fixed NW 3.4 Q3 22 ■ Product & IT 5.3 Q4 22 Other Stable CAPEX level vs. Q4 last year Accelerated investments into network modernization, transformation and security in Q4 Cash CAPEX development Reported currency, in SEK billions, excl. licenses and spectrum fees, R12 16 15 14 13 12 - Q4 21 Q1 22 Q2 22 Q3 22 Cash CAPEX, excluding fees for licenses and spectrum, to be in the range of SEK 14.0-15.0 billion Q4 22 Cash CAPEX for 2022 of SEK 15.4bn or 16.9% of net sales Excluding FX impact 2022 cash CAPEX was SEK 15.0bn 15.4#14Operational free cash flow Operational free cash flow bridge Reported currency, in SEK billions 14 - - 1.4 Q4 21 EBITDA Cash CAPEX OUTLOOK 2022 -1.0 Intr./tax Other NWC 0.4 Q4 22 Tax lower due to quarterly phasing Other was negative due to lower pension refund Elevated inventory levels and a lower vendor financing impacted NWC Operational free cash flow development Reported currency, in SEK billions, R12 14 12108 6 4 2 0 - Q4 20 Q4 21 Q2 21 Operational free cash flow Minimum dividend Cash flow declined 2022 due to working capital and cash CAPEX 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 6.5 Q2 22 Structural part 5.7 Q4 22#15Net debt and leverage Net debt and leverage development Reported currency, in SEK billions and leverage ratio 15 2.07x 62.5 -6.3 5.4 Q3 22 Operations Cash CAPEX TARGET +8.9 1.8 Buy- backs 4.2 = Leverage ratio (multiple, rolling 12 months) 3.9 Dividend Other 2.35x 71.4 Q4 22 - Share buy-back program now completed Dividend paid out Other drivers include - Reduction of hybrid capital (SEK 1.2bn) Increased lease liabilities (SEK 1.1bn) Negative FX effects (SEK 0.8bn) Net debt/adjusted EBITDA in the range of 2.0-2.5x#16Strategy progress#17Our strategy to create a "Better Telia" We reinvent better connected living through our... Digital connectivity Accelerating the connected lives of everyone Inspiring customers With brands and experiences that go beyond connectivity Most loyal customers Digital experiences Accelerating customer loyalty and revenue growth beyond connectivity Connecting everyone Through the most trusted, reliable and efficient modern networks As per the January 2021 strategy update by excelling at... Most engaged employees Transforming to digital To be simpler, faster, data driven and with lower cost so that we have the... Most satisfied shareholders Digital infrastructure Growing the digital infrastructure of the Nordic and Baltic region P Delivering sustainably Through an accountable and empowered organization Most empowered societies 17 ... For substantial value creation Inspire our customers REVENUE DEVELOPMENT 2021-2023 Low grown Low single digit service revenue growth Connect everyone CAPEX DEVELOPMENT 2021-2023 CAPE 2021- program hact to rigorous benchmarking INVESTOR INCREO JAIAT T Cash CAPEX to increase 2021 Return to 15% of net sales 2023 5 Transform to digital 2bn 1bn 3B N CAPEX OPEX reduction Trans- formation efficiency by 2023 by 2023 by 2023 OPEX 2bn OPEX reduction to 2025 CAPEX 5B N 1bn 4bn Trans- formation by 2025 SEK 2bn lower OPEX by 2023 SEK 4bn lower OPEX by 2025 Plus SEK 1bn CAPEX efficiency 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#18Our strategy is delivering - Inspiring customers With brands and experiences that go beyond connectivity A broad-based return to growth reversing multi-year declines Mobile growth accelerated to 4% Fiber revenues grew by 25% Convergence progress: Achieving >1 million Telia TV subs in Sweden; Swedish triple play households up almost 20% Enterprise segment back to growth, with 1st Swedish annual growth in two decades Ø Connecting everyone Through the most trusted, reliable and efficient modern networks 5G roll-out ahead of plan, reaching >70% pop coverage Fiber and coax homes passed reached 6.4m Legacy shutdown accelerated, with 75% of copper network now closed in Sweden EMN market leader with >50 commercial contracts Established a pan-Nordic tower platform worth EV EUR 2.6bn - - 18 ថ Transforming to digital To be simpler, faster, data driven and with lower cost Removed >40% of legacy products Dismantled nearly half of targeted legacy platforms Key system integrators down 70% Scaled common products to >50% across target portfolio Material efficiencies in customer care operations, with Call volumes in Sweden down 30% - - Structured pricing strategy OPEX reduced SEK 1.1bn Workforce (FTE/FTC's) reduced by >2k Delivering sustainably Through an accountable and empowered organization Sustainability fully integrated, and delivering across priority areas: CDP score: A- (up from D in 2018) ✓ ✓ ✓ 1 million reached through digital inclusion initiatives 35% of supply chain emissions covered by SBT EcoVadis platinum medal#19But there have been challenges Inspiring customers With brands and experiences that go beyond connectivity ថ Transforming to digital To be simpler, faster, data driven and with lower cost D Connecting everyone Through the most trusted, reliable and efficient modern networks ની Delivering sustainably Through an accountable and empowered organization 19 hil Pay TV Challenging landscape and unable to fully monetize UCL Inflation Especially within energy and wage inflation Supply chain Disruptions have made inventory planning difficult Interest rates Increased interest rates pose challenges to Telia's vendor financing program#20We are mitigating the challenges Inspiring customers With brands and experiences that go beyond connectivity ថ Transforming to digital To be simpler, faster, data driven and with lower cost D Connecting everyone Through the most trusted, reliable and efficient modern networks ની Delivering sustainably Through an accountable and empowered organization 20 De-risking our TV exposure TV assets consolidation underway, Telia TV to focus on content aggregation going forward Inflationary offsets are now accelerating Pricing initiatives are accelerating, Cost transformation accelerating Supply chain volatility and investment peak has passed Inventory levels and network modernization peaks have been passed Interest rate risks are being mitigated Vendor financing program risk being mitigated, proactively managing debt portfolio#21Our strategy remains Digital connectivity Accelerating the connected lives of everyone Inspiring customers With brands and experiences that go beyond connectivity Most loyal customers We reinvent better connected living through our... Digital experiences Accelerating customer loyalty and revenue growth beyond connectivity by excelling at... D Connecting everyone Through the most trusted, reliable and efficient modern networks Most engaged employees so that we have the... Transforming to digital To be simpler, faster, data driven and with lower cost 21 Most satisfied shareholders Digital infrastructure Growing the digital infrastructure of the Nordic and Baltic region P Delivering sustainably Through an accountable and empowered organization Most empowered societies#22Operations#23Ahead in network modernization Modernization peak roll-out passed in 2022 # new sites Front-loaded delivery despite Covid / supply chain headwinds - 2023 focus on Sweden 2021 2022 2023 Plan Leading network position 5G coverage and network quality over delivered Sweden Finland - Norway 23 Estonia umlaut Further improved network quality position in our markets - 7x capacity increase with 5G and modernized 4G - Leading 5G spectrum position in the region RAN power saving implemented; power storage trialled successfully Denmark OPENSIGNAL omnitele Lithuania 90%#24Monetizing our connectivity - increasingly digital Monetizing our connectivity leveraging our 5G and modernized 4G networks 1% 30% 5G devices 2020 2022 +59% FWA users - Building on our digital foundation adding value as pioneer in enterprise mobile networks (EMNs) and Internet of Things (IoT) 10 55 Enterprise networks +104% loT devices Selling & servicing digitally unlocking value potential of our network investments, through targeted and efficient customer interactions Accelerate monetization of our strong 5G, FWA, EMN and loT assets Leverage our digital sales & service for full value realization +197% Automated campaigns 24 Notes: FWA = fixed wireless access; Enterprise networks = locations with closed commercial contracts; customer contacts = agent handled calls, mail, chat, etc. times average handling time, example Sweden B2C -21% Customer contacts#25Driving out network legacy Copper retirement on track # copper central offices, Sweden 2018 2850 1503 2022 2026 3G voice drive out on track % voice traffic, Sweden 100% 3G 2G 33% VOLTE / Wifi Calling 5% 2018 2019 2020 2021 2022 2023 25 Legacy network systems % service nodes 100% Consistent execution of our legacy shut-down realise cost drive out Leverage our transformation through migration to target products and platforms 66% 2019 2020 2021 33% 2022 2023 2024#26Transforming to simplify, automate and scale Products Simplify and scale from bespoke solutions to common standard products -42% Legacy products 2020 2022 34% 52% Common products Processes Improve and automate from fractured processes to zero-touch journeys -18% Incidents +65% 26 Hours saved Platforms Simplify and re-use from complex legacy to modular, scalable and future proof architecture Keep ruthless simplification agenda for continued quality and efficiency gains Scale target products & platforms and automation for full value realization, e.g., scale new B2B stack (launched 2022 in Sweden) to full customer potential -47% Legacy platforms 6% 32% Common platforms#27Fuelling workforce productivity 2020 2022 People Upskill and empower From siloed to agile, efficient, and digitally enabled +55% +47% 1 Digitally enabled Near-shored employees - Partners Focus and embed from transactional to being part of Telia's success -70% System integrators - Keep investing in our people for continued engagement, agility and future skills Further scale strategic partners for our transformation and joint go to market 27 Notes: "Digitally enabled" = active users of online analytics & dashboards; "Realised gross savings" = from system integrator consolidation, counted since 2021 0,2 BSEK Realised gross savings#28Financials#29Multiple revenue growth levers Key drivers - Less burden ahead Service Legacy and revenues 2020 regulation Improve ARPU Improve mobile experience incl. 5G monetization Reduce churn and increase upsell potential Increase share of wallet Convergence New revenue streams More structured approach to pricing Pricing Service revenue ambition Covid rebound limited going forward Legacy burden still a drag, but expected to ease beyond 2023 Key growth levers remain Increased pricing impact in higher inflation environment 29 Service revenues Like for like growth, illustrative 2023 4% 2% 0% -2% -4% 2020 2021 2022 2023 Outlook to grow service revenue by low single digit 2023 driven by Current growth momentum Pricing initiatives New revenue streams#30OPEX delivering to plan Key drivers Analogue customer interaction Many products and legacy Manual work Complex IT, technical debt Non-data driven approach Fragmented supplier base Mass communication Expanding over head Biggest impact so far from; Digital omnichannel journeys Few but common Products Digitized automated Processes Scalable standard Platforms Data empowered People Few but strategic Partners Targeted communication Reduced over head Platform and Partner consolidation Fewer attended and more digital customer interactions Overhead reduction Going forward more impact from Common Products and Platforms and Process efficiency/automation 30 OPEX excluding energy development In SEK billion, 2020 average FX rates, excl. Telia Carrier, R12 2020 -0.5 - 2021 - -2 -0.6 2022 -0.9 SEK 1.1bn net OPEX reduction since 2020 enabled by transformation agenda resulting in -2k reduction in FTE/FTC and lower IT cost 2023 Ambition remain to deliver net SEK 2bn reduction by end of 2023 Another 1.5k resource reduction of which 1.0k in Q1 Further efficiencies on IT and marketing costs#31CAPEX has peaked Key drivers Mobile network Fixed network - Product & IT . ● Network modernization 5G roll-out Partly replacing 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 Investment agenda intact, updated phasing Main focus on modernizing mobile networks and transforming away from our technical legacy 31 CAPEX excl. licenses and right of use assets Reported currency, in SEK billion, as % of net sales 16 12 8 4 - - 15.0% - 2020 Mobile NW 18.0% 2021 Fixed NW 17.6% 2022 Product & IT Other 2023 Network modernization key driver of increased 21-22 investment levels CAPEX to reduce to SEK 13-14bn in 2023 due to Reduction in network modernization activities and slower 5G roll-out pace Significant Product & IT investments to support transformation agenda, but lower than 2022