#1mal YEAR-END REPORT JANUARY - DECEMBER 2020 Q4 ALLISON KIRKBY PRESIDENT & CEO#2GROUP HIGHLIGHTS - Q4 2020 2 SEK billion ** Service revenues Mobile subscription revenues Adjusted EBITDA EBITDA-cash CAPEX** Operational Free Cash Flow YTD Q4 Q4 2020 19.8 7.8 7.5 3.3 12.1 LFL like for like Adjusted EBITDA less cash CAPEX excluding licenses and spectrum % Change reported +4.0% -4.5% -5.5% -18.6% -3.8% % Change LFL* -2.1% -1.1% -6.6% ● ● ● Comments COVID-19 impacted service revenues negatively by ~SEK 400 million, and EBITDA by ~SEK 200 million Excluding COVID-19 impacts, service revenues were in-line with last year and EBITDA declined by ~4% LFL A non-recurring pension benefit in the prior year negatively impacted the EBITDA comparison by ~1% LFL Cash CAPEX increased by SEK 0.3 billion due to network modernization#3DELIVERING ON PRIORITIES 3 • Resilient business with stable service revenues, ex. roaming • A strong quarter for B2B across our largest markets ● • TV/Media recovery faster than expected ● Digital viewing and SVOD subscription growth particularly strong 5G roll-out accelerating across the Group ● ● • Sweden awarded best mobile network for 4th consecutive year ● • Sweden spectrum auction concluded with Telia acquiring the largest allocation ● • New COVID-19 lock-downs impacted call center performance and retail footfall ● • OPEX increased in line with our expectations. • BoD proposes 2020 annual dividend of SEK 2.00 per share (subject to AGM approval) CONNECTIVITY CONVERGENCE CUSTOMER EXPERIENCE COST CONTROL CAPITAL ALLOCATION#4SWEDEN - Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact ● -1% -1.8% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues ● 4 -6% -8.4% Q3 Q4 Q4 Q1 Q2 19 20 20 20 20 EBITDA Service revenue development improved sequentially EBITDA declined by SEK 309 million from Legacy revenue pressure Prior year pension refund. Higher OPEX due to marketing and call center staffing SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency HIGHLIGHTS ● ● ● ● ● MOBILE Subs. (q-o-q) +10K U Q4 19 TV Q1 20 ARPU (y-o-y) -5% Q2 20 Q3 20 ((:)) 10 Q4 20 Subs. (q-o-q) -13K ARPU (y-o-y) 0% BROADBAND ARPU (y-o-y) +2% Strong end to year in B2B Public & Key segment Continued growth in postpaid subscriptions Number of converged customers increased to 309k Best network for the 4th consecutive year Telia awarded 120 MHz in the 5G auction * According to Umlaut (formerly P3)#5FINLAND-Q4 2020 LO 5 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact ● ● ● 0% -1.9% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues -4% -4.9% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA Service revenue development improved sequentially B2B service revenue turned to growth EBITDA declined by SEK 62 million from Lower revenues Weaker equipment margin SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency HIGHLIGHTS ● ● ● ● ● MOBILE Subs. (9-0-9) -16K U Q4 19 TV Q1 20 ARPU (y-o-y) -7% Q2 20 Q3 20 ((:)) -13 +6K Q4 20 Subs. (9-0-9) ARPU (y-o-y) +3% BROADBAND ARPU (y-o-y) +2% Consumer mobile improving 5G coverage now at 40 percent of population. 5G phones represent 40 percent of new handset sales ARPU improvement from 5G migrations Liiga remedies impacting TV subscriptions#6NORWAY - Q4 2020 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Excl. Covid-19 impact CO ● ● ● 0% -2.1% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues 11.6% +14% Q4 Q4 Q1 Q2 Q3 19 20 20 20 20 EBITDA Service revenue development driven by Mobile and B2B Strong EBITDA relative to a weak quarter in 2019 Good progress on integration synergies and cost efficiencies SUBSCRIPTIONS & ARPU DEVELOPMENT Postpaid subscriptions ex. M2M, q-o-q in 000', ARPU based on postpaid mobile subscription revenues ex. M2M and roaming, in local currency HIGHLIGHTS ● ● ● ● MOBILE Subs. (q-o-q) -2K U Q4 19 TV Q1 20 ARPU (y-o-y) -5% Q2 20 Q3 20 ((:)) -11 Q4 20 Subs. (q-o-q) +8K ARPU (y-o-y) +4% BROADBAND ARPU (y-o-y) -1% Mobile subscriptions down due to B2B Improved brand consideration post rebranding New mobile portfolio launched with promising early signs. 100k subscriptions on premium service Telia X Added 5G coverage to Bergen - clear roadmap ahead#7LED-Q4 2020 7 SERVICE REV. & ADJ. EBITDA Like for like growth +1% 8 -0.6% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues Excl. Covid-19 impact 1.1% +5% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA EBITDA growth from good revenue mix development with mobile growing 5% and a continued decline in low margin fixed transit revenues SERVICE REV. & ADJ. EBITDA Like for like growth +3% ● -0.4% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues Excl. Covid-19 impact 4.1% +7% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA HIGHLIGHTS Mobile revenue pressure from roaming was offset by a solid development across most segments and continued good cost control SERVICE REV. & ADJ. EBITDA Like for like growth ויו -2% ● -6.2% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 Service revenues ooe + Excl. Covid-19 impact +7% -5.4% Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 EBITDA Revenue development impacted by COVID and a more focused portfolio. Good cost control limited the impact on EBITDA#8TV AND MEDIA - Q4 2020 ∞ SERVICE REVENUES & ADJUSTED EBITDA Like for like growth ● -4.9% Q1 20 Q2 20 Q3 20 Q4 20 Service revenues -56.1% Q1 20 Q2 20 Q3 20 Q4 20 EBITDA Service revenue pressure continued to ease supported by better development of both advertising and subscription revenues EBITDA declined by SEK 255 million from the lower advertising revenues and higher content costs, compared to an all-time high quarter in 2019 TV SUBSCRIPTIONS C More direct OTT subscriptions, in 000' HIGHLIGHTS ● Q4 19 Q2 20 Q4 20 COMMERCIAL SHARE OF VIEWING (CSOV) 47.1% 51.1% ● Q4 19 Q1 20 - Q1 20 Q2 20 Swedish linear CSOV, ages 15-64 Q3 20 C MORE Q3 20 789 Q4 20 Record high viewing and consumption on TV4 and TV4 Play Time spent on TV4 Play up 32 percent in 2020, well ahead of the market 4 Strong SVOD subscriber intake with a net gain of 142k Increased CSOV also for MTV in Finland mtv#9SERVICE REVENUES AND EBITDA - Q4 2020 SERVICE REVENUE BRIDGE Q4 2020 Like for like ● ● -2.1% Excluding COVID-19 impact Q4 19 Mobile Broadband TV Other COVID- Q4 20 19 Stable revenue development excluding COVID-19 Lower roaming and advertising revenues still the main effects from COVID-19 EBITDA BRIDGE Q4 2020 Like for like, excluding adjustment items Q4 19 ● -6.6% ● Underlying COVID-19 Pension Excl. COVID-19 EBITDA declined 4% mainly due to: Lack of pension refund, higher resource costs and legacy pressure in Sweden Lower EBITDA in TV and Media Q4 20#10OPERATIONAL FREE CASH FLOW - Q4 2020 10 OPERATIONAL FREE CASH FLOW TREND SEK billion, rolling twelve months 14 12 10 8 6 4 2 0 SEK 12.1 BILLION Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Repayment of lease liabilities OPERATIONAL FREE CASH FLOW Q4 ● SEK billion ● 1.0 Q4 2019 -0.8 +1.9 3.3 -0.3 -0.2 EBITDA Interest Working CAPEX less & tax capital leasing* 0.0 Other 2.9 Lower EBITDA and higher lease repayments Lower interest partly compensated for higher taxes paid • Strong benefit from working capital Q4 2020#11NET DEBT AND LEVERAGE - Q4 2020 11 NET DEBT AND LEVERAGE DEVELOPMENT SEK billion and leverage ratio 2.55x 80.3 -8.0 4.2 3.7 * Equity value 2.7 = Leverage ratio (multiple, rolling 12 months) -4.6 0.1 2.55x Q3 20 Operations Cash 2nd Extra Turkcell Other Q4 20 CAPEX dividend dividend proceeds 78.3 -9.2* 2.32x 69.2 Telia Q4 20 Carrier proforma proceeds ● Gross debt reduced by SEK 2 billion Cash flow from operations and Turkcell proceeds more than offset increased cash CAPEX and dividend distributions ● Leverage remained unchanged in the quarter at 2.55x • Proforma leverage post the Telia Carrier transaction still estimated at 2.32x Telia Carrier transaction on track to close in Q2 2021#12CLOSING OUT 2020 ● ● ● ● ● 12 Q4 slightly ahead of our expectations Telco business resilient throughout 2020 TV/Media unit recovering Supporting our communities remains a priority Good progress made on key priorities Connectivity Convergence Customer Experience ● ● Cost control Capital allocation Clear roadmap to create a better Telia and generate sustainable long term value ● ● OUR VALUES OF DARE CARE SIMPLIFY COULD NOT BE MORE RELEVANT#13DISCLAIMER & FORWARD-LOOKING STATEMENTS This document contains the use of alternative performance measures (APM's) to provide readers with additional financial information that is regularly reviewed by management, such as adjusted EBITDA, CAPEX and operational free cash flow. These APM's should not be viewed as a substitute for Telia Company's IFRS based figures, but as a complement. APM definitions can be found in Telia Company's interims reports and Annual and Sustainability Report 2019 and may be defined differently by other companies and are therefore not always comparable to similar measures used by other companies. Telia Company's management considers these APM's combined with IFRS performance measures and in conjunction with each other, the most appropriate way to measure the performance of Telia Company. 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. 13