#1Q2 Interim report January - June 2022 Telia Company#2Group highlights - - - Growth momentum continued Solid service revenue growth, with mobile up 4.4% OPEX declined 1.6% despite higher energy costs EBITDA growth with Core Telco up 4.3% Op FCF impacted by working capital Leverage at 2.01x Swedish tower transaction closed Share buy-back program initiated 2 SEK billion * Service revenues OPEX change Adjusted EBITDA (... of which Core Telco) Cash CAPEX excl licenses & spectrum* Op FCF* Leverage ratio Change in reported SEK Q2 2022 19.2 -0.1 7.7 (7.3) 3.7 1.1 2.01x Change LFL vs. Q2 2021 +2.4% -1.6% +0.8% (+4.3%) +9.6% -45.2% -0.33x#3Strategy highlights Mobile growth in all markets, almost all ARPU driven - Enterprise growth supported by our unique strategic position - All time high Advertising revenues in TV4 Network modernization on track - 5G coverage reached 49% of Nordic/Baltic population Sweden doubled its 5G coverage in the quarter EMN leadership confirmed by new customer wins Digital transformation on track - Improving customer experience Reduced call volumes and improved channel mix Continued legacy take-out Further progress towards SEK 2bn in OPEX reductions by 2023 - Solid progress on our sustainability agenda - - - - Wind/solar energy agreements in Denmark and Estonia Consumer security service launched in Sweden - 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 7,336 Q2 21 7,337 Q3 21 ■Consumer +1.2% 7,677 Q4 21 7,380 Q1 22 ■ Enterprise 7,446 Q2 22 Copper legacy = fixed telephony and xDSL ■ Other Service revenue increased 1.2% (SEK 89m) with growth in both mobile and fixed Mobile increased 2.7%, broadband 4.1% and TV 16.0% Service revenues split Reported currency, in SEK millions, like for like growth 6,975 LLLLL Q4 21 6,585 6,601 Q2 21 Q3 21 +3.3% ■Roaming 6,728 Q1 22 4 6,823 623 Q2 22 Copper legacy* ■Underlying Underlying service revenue growth, excl. copper and roaming recovery of 3.3% Copper headwind remained largely unchanged at c. SEK 170m Adj EBITDA Reported currency, in SEK millions, like for like growth 3,268 Q2 21 3,353 Q3 21 +2.8% 3,541 Q4 21 Adj EBITDA 3,337 Q1 22 3,358 Q2 22 EBITDA increased 2.8% as service revenue growth and OPEX efficiencies more than offset loss of high margin legacy revenues#5Sweden KPIs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in SEK 244 4,103 Q2 21 244 4,112 Q3 21 248 4,071 Q4 21 Postpaid ex M2M 248 4,070 Q1 22 249 4,102 Q2 22 ARPU Subscription base growth due to both Consumer and Enterprise ARPU continued to grow (+2.0%) Broadband subs and ARPU Subscriptions '000, ARPU in SEK 314 232 994 Q2 21 320 209 1,035 Q3 21 Fiber and FWA 324 182 1,066 Q4 21 LO 323 5 162 1,087 Q1 22 Copper 323 137 1,109 Q2 22 Flat subscriber base growth as fiber and FWA compensated for copper decline ARPU continued to grow (+2.8%) supported by pricing ARPU TV subs and ARPU Subscriptions '000, ARPU in SEK 174 949 Q2 21 176 975 Q3 21 185 997 Q4 21 Subscriptions 186 1,015 Q1 22 ARPU 186 1,028 Q2 22 Continued solid development in IPTV subs APRU growth of +6.7% supported by sports subscriber growth and pricing#6Finland Service revenues Reported currency, in SEK millions, like for like growth 3,017 Q2 21 3,007 Q3 21 -0.4% 3,110 Q4 21 3,092 Q1 22 Consumer Enterprise Other 3,117 Q2 22 Service revenues again stable Mobile revenue improved further (+2.1%) despite interconnect headwinds Continued pressure on fixed revenues Adj EBITDA Reported currency, in SEK millions, like for like growth 1,038 Q2 21 1,179 Q3 21 +5.3% 1,042 Q4 21 ■Adj EBITDA 1,111 Q1 22 1,130 Q2 22 EBITDA growth from lower OPEX Reduced resource costs (partly due to industrial action) more than compensated for higher energy costs Mobile postpaid subs and ARPU Subscriptions '000, ARPU in EUR - 18.8 2,779 Q2 21 18.5 2,786 Q3 21 18.7 2,798 Q4 21 Postpaid ex M2M 18.4 2,771 Q1 22 18.8 ARPU 2,774 Q2 22 Subscriber base stabilized ARPU stabilized supported by 5G migrations and pricing initiatives#7Norway Service revenues Reported currency, in SEK millions, like for like growth 2,827 Q2 21 2,913 Q3 21 ■Consumer +6.8% 3,014 Q4 21 3,146 Q1 22 Enterprise ■ Other 3,137 Q2 22 Service revenue increased +6.8% (SEK 190m) driven by mobile (+8.9%) and broadband (+8.1%) Strong development in both Consumer (+4.6%) and Enterprise (+10.8%) Adj EBITDA Reported currency, in SEK millions, like for like growth 1,507 Q2 21 1,652 Q3 21 +2.0% 1,556 Q4 21 Adj EBITDA 1,666 7 Q1 22 1,591 Q2 22 EBITDA growth driven by service revenue development, partly offset by VAS, higher content costs and lower equipment margin Mobile postpaid subs and ARPU Subscriptions '000, ARPU in NOK 269 1,879 Q2 21 285 1,886 Q3 21 283 1,893 Q4 21 Postpaid ex M2M 285 1,899 Q1 22 283 1,910 Q2 22 ARPU Subscriber base grew, driven by Enterprise Continued strong growth in ARPU driven by roaming and VAS#8LED markets Lithuania Reported currency, in SEK millions, like for like growth +7.5% 811 840 841 862 905 368 404 +9.0% 370 401 414 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Service revenues EBITDA Broad based growth in mobile +11.2% and fixed +5.1% Strong EBITDA development despite energy costs increase Estonia Reported currency, in SEK millions, like for like growth +4.7% 665 684 698 729 725 299 313 +4.6% 292 8 326 323 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Service revenues EBITDA Strong service revenue development from mobile +5.9% and fixed +4.3% EBITDA growth of +4.6% from service revenue flow through Denmark Reported currency, in SEK millions, like for like growth 937 +2.2% 981 968 990 994 217 235 +9.5% 242 235 248 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Service revenues EBITDA Service revenue growth driven by mobile turn- around (+3.0%) Strong EBITDA development despite energy costs increase#9TV and Media Service revenues Reported currency, in SEK millions, like for like growth - 2,271 Q2 21 1,878 Q3 21 TV +2.0% 2,594 Q4 21 2,031 Q1 22 Advertising ■ Other 2,333 Q2 22 Service revenues increased +2.0% driven by advertising +4.2% (SEK 64m) Digital advertising revenue increased +21% Lower Pay TV revenues as growth in Sweden offset by Denmark and Finland Adj EBITDA Reported currency, in SEK millions, like for like growth 575 Q2 21 191 Q3 21 -40.1% -7 Q4 21 -191 Q1 22 9 EBITDA impacted by increased content investments As of next quarter UCL is annualized 345 Q2 22 C More direct OTT subs and ARPU Subscriptions '000, ARPU in SEK 163 202 564 Q2 21 ISWE 168 198 540 Q3 21 FIN 177 183 566 Q4 21 163 167 551 Q1 22 DEN 165 155 523 Q2 22 ARPU Subscription base declined due to sports seasonality#10Q2 Interim report January - June 2022#11Service revenues 11 Service revenue bridge Like for like growth - +2.4% Q2 21 SWE FIN NOR DEN LIT EST TVM Other Q2 22 Growth in Sweden driven by mobile, broadband and TV Finland flat as mobile compensated for lower fixed revenues Norway and LED again strong OUTLOOK Service revenue development Like for like growth - 3.3% Q2 21 2.4% Q3 21 2.9% 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 Q4 21 Core Telco Consumer +2.7% Core Telco Enterprise +2.1% TV and Media +2.0% 3.2% Q1 22 2.4% Q2 22#12OPEX 12 OPEX bridge Like for like growth - - Q2 21 Resources -1.6% Marketing Other Resource cost reduced by SEK 173m Marketing remained stable due to efficiency initiatives IT reduction offset by SEK 100m higher energy costs Q2 22 OPEX development In SEK billion, 2020 average FX rates, excl Telia Carrier, R12 25.6 24.4 Q4 20 Q1 21 Q2 21 OPEX R12 -0.6 Q3 21 Q4 21 Q1 22 OPEX R12 excl energy 25.0 AMBITION OPEX 2021-2025: OPEX excluding energy to decline by at least SEK 2bn until 2023 and by SEK 4bn until 2025 (updated) 23.5 Q2 22 OPEX reduction to date of SEK 0.6bn driven by lower resource and IT costs partly offset by higher energy expenses Excluding energy OPEX declined SEK 0.9bn to date#13EBITDA 13 Adj EBITDA bridge Like for like growth - - Q2 21 +0.8% SWE FIN NOR DEN LIT OUTLOOK EST TVM Other Q2 22 Another solid quarter in Sweden and LED Finland continued to improve Lower TV and Media EBITDA due to higher content costs Adj EBITDA development Like for like growth - 1.3% Q2 21 -1.9% Q3 21 0.0% Q4 21 0.1% EBITDA: 2022: Adjusted EBITDA, like for like, to grow by low single digit EBITDA: 2021-2023: Adjusted EBITDA, like for like, to grow by low to mid-single digit Q1 22 0.8% Q2 22 Core Telco grew EBITDA 4.3% Content cost in TV and Media impacts flow through to Group EBITDA#14Cash CAPEX 14 Cash CAPEX by type Reported currency, in SEK billions, excl. licenses and spectrum fees - 3.3 Q2 21 3.1 Q3 21 Mobile NW OUTLOOK 5.2 Q4 21 Fixed NW 3.0 Q1 22 ■Prod dev/IT 3.7 Q2 22 Other Mobile and fixed network investments fairly unchanged vs. LY Product development/IT increased driven by transformation Cash CAPEX development Reported currency, in SEK billions, excl. licenses and spectrum fees, R12 15 14 13 12 - Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Cash CAPEX R12 of SEK 15.0bn or 16.9% of net sales Cash CAPEX R12 to decline in H2 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 15.0#15Operational free cash flow Operational free cash flow bridge Reported currency, in SEK billions 15 - 2.1 Q2 21 EBITDA Cash CAPEX AMBITION -0.9 Intr./tax Other Lower cash flow due to mainly working capital Cash CAPEX slightly higher due to transformation NWC 1.1 Q2 22 Operational free cash flow development Reported currency, in SEK billions, R12 14 4208 12 10 6 4 2 0 Q2 20 - Minimum dividend level (post buy-backs) Q4 20 Q2 21 Operational free cash flow Q4 21 Structural part Q2 22 7.6 Cash flow declined from lower NWC contribution combined with increased cash CAPEX 2021-2023: The operational free cash flow is expected to cover the minimum dividend commitment throughout the period From 2022: Operational free cash flow excl change in NWC is expected to cover the minimum dividend commitment Structural cash flow to improve in H2 supported by EBITDA growth and lower cash CAPEX#16Net debt and leverage Net debt and leverage development Reported currency, in SEK billions and leverage ratio 16 2.09x 62.2 -5.6 3.7 4.1 TARGET -2.0 -5.4 Q1 22 Opera- Cash Dividend SE tions CAPEX 0.4 Buy- Towers backs = Leverage ratio (multiple, rolling 12 months) 0.8 2.01x 60.2 Other Q2 22 - - Balance sheet remained strong with leverage at 2.01x First dividend tranche of SEK 4.1bn paid Swedish Tower proceeds of SEK 5.4bn received Share buy-backs during Q2 amounted to SEK 0.4bn Net debt/ adjusted EBITDA in the range of 2.0-2.5x#17Outlook 17 2021-2023 (unchanged) Service revenues Low single digit growth* * Like for like Adjusted EBITDA Low to mid single digit growth* Cash CAPEX excl. licenses and spectrum Return to around 15% of net sales by 2023 2022 (unchanged) Service revenues Low single digit growth* Adjusted EBITDA Low single digit growth* Cash CAPEX excl. licenses and spectrum Around SEK 14.0-15.0bn Core Telco business expected to grow adjusted EBITDA at low to mid-single digits in 2022 TV & Media adjusted EBITDA contribution expected to decline in 2022#18To conclude...#19Q2 2022 in summary - - - - - - Growth momentum continued Solid Core Telco and Advertising development Sweden sustained growth in both Consumer and Enterprise Finland continues to improve, on track for H2 turnaround Digitalisation of Advertising on track Well positioned to meet challenges in SVOD Transformation enables OPEX decline, despite headwinds Infrastructure asset value crystallisation on track Balance sheet remains strong Share buy-backs initiated 2022 and mid-term outlook confirmed 19 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#20Q&A#21Telia Company#22Sustainability fully integrated into our strategy Three impact areas in focus Our ambitions 2021 selected highlights 2022 YTD Q2 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 Power Purchase Agreements in Denmark (solar) and Estonia (wind) to cover a substantial share of their total renewable electricity needs Digital inclusion - Driving digital inclusion through reliable access and the right skills 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 826,000 individuals reached through digital inclusion initiatives 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 Safety Package for families launched in Sweden to counter effects of online threats the most extensive protection solution in the market#23Telia Company