#1ALLISON KIRKBY President & CEO Q1 Interim report January - March 2021#2GROUP HIGHLIGHTS N • Results in line with expectations despite increased pandemic restrictions • Loss of roaming impacts service revenue (~SEK 250m) and EBITDA (~SEK 150m) • Telco services remain resilient and TV & Media recovery continues • OPEX reduction of 3% • EBITDA returned to growth, excl. currency fluctuations • Cash CAPEX stable in the quarter • OFCF growth driven by positive working capital impact ● • Leverage well within targeted range ● Change vs 2020 is on a like for like basis, excl. currency fluctuations ** Cash CAPEX excludes licenses and spectrum fees *** Assumes Telia Carrier transaction was already closed March 31, 2021 (and compared to Dec 31, 2020) * SEK billion Service revenues* OPEX change* Adjusted EBITDA* Cash CAPEX** OFCF Net debt to EBITDA*** Q1 2021 18.7 -0.4 7.2 2.8 4.0 2.29x Change vs Q1 2020 -2.3% -3.0% +2.2% -0.1 +0.7 -0.03x#3STRATEGY HIGHLIGHTS I 3 Customer satisfaction broadly stable, improved CSAT in Sweden INSPIRING OUR CUSTOMERS Converged customer base growing ● Sweden: Added 38k Telia Life customers Enterprise segment highlights ● Norway: Added 10k FMC customers Finland: Added 5k FMC customers Global connectivity deals with Ministry of Foreign Affairs in Sweden and Norway Familjebostäder (20k households) combines BB, TV, loT and Enterprise ICT TV & Media viewership continues to grow CSOV: Sweden +3.6ppt to 49.8%, Finland +0.6ppt to 40.7% C More OTT revenues grew by 20% L 5G network roll-out ● ● CONNECTING EVERYONE Danish spectrum secured via TTN - 140MHz in 3.5GHz 5G leader in Sweden, Norway, Estonia and Lithuania 5G enabled handsets, 55% of new sales in Sweden Decommissioning legacy ● Traffic on 2G and 3G decreased by ~30% SEK 75m cost reduction in Sweden from legacy migration Telia recognized for world leading network services by Gartner, included in its Magic Quadrant Telia Asset Management actively engaging on TowerCos in Finland and Norway#4STRATEGY HIGHLIGHTS II S TRANSFORMING TO DIGITAL Transformation program accelerating IT infrastructure SEK 60m cost reduction Product and process simplification ● ● Denmark reduced number of products by 10% Pilot completed in Finland TV & Media digitalization ● Digital ad revenue +28% in March Headcount reduction on track, more than 400 FTE/FTC reductions at end Q1 d DELIVERING SUSTAINABLY Financial target progression EBITDA growth Roughly half of minimum dividend covered by Q1 OFCF Stability in structural elements of free cash flow ● ● Sustainability progress Climate neutral in our own operations Invested SEK 100m in World Bank equality bond Telia recognized in strong SBI rankings Carrier transaction on track to close 1 June ●#5SWEDEN FINANCIALS LO 5 7,434 7,469 7,286 7,544 7,233 I Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Consumer Enterprise Other ● Service revenues Reported currency, in millions, like for like growth -2.7% ● * Service revenue split Reported currency, in millions, like for like growth +1.4% Copper legacy = Fixed telephony and xDSL 6,351 6,366 6,650 LLLLL 1,083 1,018 6,451 Service revenue declined 2.7% (SEK 202m), of which copper related (SEK 187m) and roaming (SEK 80m) Underlying service revenues, ex roaming and copper up 1.4% Consumer segment stable, excl. roaming 6,441 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 EO-items Roaming Copper legacy* Underlying Q1 Highlights 791 Adj EBITDA Reported currency, in millions, like for like growth -4.8% 3,398 Q1 20 3,316 Q2 20 3,433 3,359 Q3 20 Q4 20 Adj EBITDA 3,235 Q1 21 Enterprise segment impacted by roaming and continued price pressure OPEX reduced by 3.1% EBITDA margin impacted by higher equipment volumes and product mix#6SWEDEN KPIs Mobile postpaid subs and ARPU Postpaid subscriptions 000', ARPU in SEK 246 4,103 241 ● 4,103 242 4,120 Q1 20 Q2 20 Q3 20 Postpaid ex M2M 241 239 4,129 4,096 Q4 20 Q1 21 -ARPU Consumer mobile customer base stable Enterprise segment impacted by loss of a low ARPU public sector customer 311 350 ● |-· 913 Q1 20 Broadband subs and ARPU Broadband subscriptions 000', ARPU in SEK 309 310 337 309 +7% 929 946 Q2 20 Q3 20 Fiber and FWA 315 282 960 Q4 20 314 259 977 Q1 21 Copper Q1 Highlights Consumer BB base stable with growing fiber off-setting copper decline Relatively stable ARPU despite copper decline 174 860 Q1 20 ● TV subs and ARPU TV subscriptions 000', ARPU in SEK 161 901 168 171 919 Q2 20 Q3 20 Subscriptions 929 Q4 20 175 935 Q1 21 ARPU Solid growth in IPTV subs mainly in MDUs ARPU recovering from pandemic lows and more sports#7FINLAND N 3,302 3,233 Service revenues Reported currency, in millions, like for like growth -4.5% ● ● 3,085 3,231 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 ■Consumer Enterprise Other 2,991 Adj EBITDA Reported currency, in millions, like for like growth -2.4% 1,156 1,223 Service revenue declined 4.5% (SEK 146m) due to roaming and ICT/Business solutions Consumer mobile stable excl. roaming Enterprise segment impacted by roaming and ICT/Business solutions 1,280 1,154 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 ■Adj EBITDA Q1 Highlights ● ● 1,070 ● Mobile postpaid subs and ARPU Postpaid subscriptions 000', ARPU in EUR 19.3 19.1 Q1 20 18.9 19.3 2,770 2,774 2,763 2,750 2,747 Q2 20 Q3 20 Postpaid ex M2M 18.8 Q4 20 Q1 21 ARPU OPEX reduced by 4.2% Converged customer base growing Telia consideration at highest level since Jan 2018, on back of 5G and C More bundle#8NORWAY ∞ Service revenues Reported currency, in millions, like for like growth -3.5% 2,964 ● 2,760 2,851 2,763 2,756 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Consumer Enterprise Other Adj EBITDA Reported currency, in millions, like for like growth +15.5% 1,387 Q1 20 Q2 20 Service revenue declined 3.5% (SEK 98m) due to ICE contract (SEK 65m), and roaming (SEK 50m) 1,510 Consumer mobile customer base and ARPU stable ex roaming, with TeliaX now 15% of base Enterprise stable with mobile growth offsetting lower fixed telephony 1,643 1,523 Q3 20 Q4 20 Q1 21 ■Adj EBITDA Q1 Highlights ● 1,543 ● Mobile postpaid subs and ARPU Postpaid subscriptions in 000', ARPU in NOK 273 266 1,855 1,860 Q1 20 Q2 20 277 273 1,857 Q3 20 Postpaid ex M2M 1,846 Q4 20 EBITDA up 16% (SEK 206m), of which 2/3 relates to special items (FX, sold receivables and bad debt) 267 1,864 Q1 21 -ARPU Telia consideration sustaining higher levels since FMC launch Enterprise customer wins: Norsk Tipping, Norwegian Police#9LED MARKETS 795 Lithuania Reported currency, in millions, like for like growth +4.0% ● 804 +3.6% 780 788 781 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 Service revenues 373 375 380 370 368 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 EBITDA Service revenue and EBITDA developing positively Mobile (+3.9%) and Fixed (+3.5%) revenues growing equally positively Consumer segment growing 7.5% (driven by mobile), enterprise stable 680 Estonia Reported currency, in millions, like for like growth -0.5% 655 649 643 642 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 Service revenues 290 +6.0% 302 281 281 Q1 Q2 Q3 Q4 20 20 20 20 EBITDA Q1 Highlights Service revenue stable and EBITDA developing positively 292 Q1 21 Mobile (-3.3%) impacted by roaming, but fixed revenues growing (+1.7%) Consumer segment growing while enterprise impacted by lower roaming ● 1,053 Denmark Reported currency, in millions, like for like growth -8.2% -0.7% 992 966 965 921 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 Service revenues 231 255 274 269 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 EBITDA Service revenues impacted by lower roaming and portfolio rationalization 216 Efficiency agenda enabling almost stable margin and EBITDA#10TV & MEDIA 10 1,874 Service revenues Reported currency, in millions, like for like growth +2.8% ● ● 1,582 1,633 2,340 Q1 20 Q2 20 Q3 20 Q4 20 ■TV Advertising Other 1,904 Q1 21 -1 Adj EBITDA Reported currency, in millions, like for like growth n/a 311 Q1 20 Q2 20 Service revenue grew 2.8% from growth in Pay TV (SEK 69m), and small decline in Advertising (SEK -12m) EBITDA was up SEK 122m from revenue growth and both COGS and OPEX reduction 249 TV4 was (again) Europe's most profitable broadcaster in 2020 200 Q3 20 Q4 20 ■Adj EBITDA Q1 Highlights ● ● 120 Q1 21 C More OTT subs and ARPU C More direct OTT subs, in 000', ARPU in SEK 144 138 458 Q1 20 116 ISWE 138 439 Q2 20 144 179 445 Q3 20 FIN 156 217 537 Q4 20 DEN 146 210 528 Q1 21 -ARPU Pay TV growth from higher subscriber base and positive ARPU Advertising recovery supported by increased AVOD share and increased digital spend Postponed sports events and UCL will increase content costs in 2nd half of 2021#11PER CHRISTIAN MØRLAND CFO Q1 Interim report January - March 2021#12SERVICE REVENUES 12 19.7 ● Q1 20 Service revenue development SEK in billions, in reported currency, like for like growth 19.1 Q2 20 ■Consumer -2.3% 18.7 19.7 Q3 20 Q4 20 Enterprise Other 18.7 Q1 21 • Service revenues like for like decline of SEK 453m or -2.3%. Roaming explains ~50% of decline • Consumer service revenues stable excl. roaming Enterprise service revenues decreased from roaming, legacy and price pressure OUTLOOK Q1 20 SWE Service revenue bridge External service revenues, like for like growth -2.3% LIT NOR DEN FIN EST TVM Telia Other Q1 21 Carrier • Sweden impacted by legacy decline • Pressure on fixed revenues in Finland • Lower wholesale revenues in Norway • Good growth momentum in the Baltics and TV & Media 2021: Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 73.0bn) 2021-2023: Low single digit growth in stable fx excl. Telia Carrier#13OPERATIONAL EXPENSES 13 3.2% ● Q1 20 OPEX development Operational expenses, y-o-y, like for like growth -4.0% Q2 20 -2.9% Q3 20 2.9% Q4 20 -3.0% Q1 21 • Good start with OPEX SEK 207m like for like although limited structural savings in Q1 Impact from transformation and resource reduction ahead OPEX development by type Operational expenses, y-o-y, like for like growth -3.0% Q1 20 Resources Marketing Other • Resource cost initiatives offset salary inflation and pension cost • Reduction of more than 400 resources end of Q1 • IT cost down SEK 60m from cost initiatives • Travel and bad debt lower by SEK 100m To reduce OPEX by SEK 2bn until 2023 and by SEK 4bn until 2025 Q1 21#14EBITDA 14 7.3 Q1 20 Adjusted EBITDA development SEK in billions, in reported currency, like for like growth 7.7 OUTLOOK Q2 20 +2.2% 8.2 Q3 20 ■Adj EBITDA 7.5 Q4 20 7.2 Q1 21 • Lower OPEX and COGS mitigated service revenue decline • Lower COGS from roaming, interconnect and network Adjusted EBITDA bridge Excluding adjustment items, like for like growth ● +2.2% Q1 20 SWE FIN NOR DEN LIT EST TVM Telia Other Q1 21 Carrier • Sweden impacted by revenue decline and revenue mix Norway positively impacted by special items • TV & Media supported by revenue growth and lower costs 2021: Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 29.8bn) 2021-2023: Low to mid single digit growth in stable fx excl. Telia Carrier#15CASH CAPEX 15 15 14 13 12 11 10 ● Cash CAPEX development Reported currency in SEK billion, excluding licenses and spectrum fees, R12 Q1 20 Q2 20 OUTLOOK Q3 20 Q4 20 13.4 • Cash CAPEX R12 to net sales at SEK 13.4bn or 15.1% • Cash CAPEX to gradually increase going forward COVID-19 with some impact in Q1 and some risks ahead Q1 21 Cash CAPEX by type Reported currency in SEK billion, excluding licenses and spectrum fees 2.9 Q1 20 3.4 Q2 20 I Mobile NW 3.0 Q3 20 Fixed NW 4.2 2.8 Q4 20 Q1 21 Prod dev/IT■ Other • Increase in mobile network activities related to modernization and 5G but delayed impact on cash CAPEX • Decline in fiber related investments in Sweden 2021: Around SEK 14.5-15.5bn (excl. Telia Carrier and license and spectrum fees) 2023: Return to around 15% of net sales by 2023 (excl. Telia Carrier and license and spectrum fees)#16OPERATIONAL FREE CASH FLOW 16 14 12 10 ● 8 6 4 2 Q1 19 Operational free cash flow trend Reported currency, SEK billion, R12 Q3 19 Q1 20 Operational free cash flow (R12) 12.8 Q3 20 Q1 21 Ex NWC contr. 8.8 - Minimum dividend level Strong cashflow R12 driven by working capital • Cashflow excl. working capital R12 still above minimum dividend commitment of SEK 8.2bn 3.3 ● -0.1 Operational free cash flow Reported currency, SEK billion Q1 20 EBITDA 0.1 Cash CAPEX +0.7 -0.1 Other 0.8 NWC 4.0 • Stable development on key structural cash flow items Working capital improvement driven by supplier financing and vendor financing 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. Q1 21#17NET DEBT AND LEVERAGE 17 2.55x 78.3 * Net debt and leverage development SEK billion and leverage ratio -7.5 Q4 20 Operations 3.7 Cash CAPEX 2.7 Other = Leverage ratio (multiple, rolling 12 months) 2.52x 77.2 Q1 21 -9.1* Telia Carrier proceeds 2.29x 68.1 Q1 21 proforma** Equity value ** Proforma reduce the net debt by the proceeds from the Telia Carrier divestment. Correspondingly, EBITDA is reduced by the Telia Carrier 12-month contribution Leverage ratio slightly improved to 2.52x • Net debt reduced by SEK 1.1bn despite a SEK 2.7bn negative impact from fx and change in lease liabilities. • Telia Carrier transaction to close 1 June 2021 ● Proforma leverage post the Telia Carrier transaction estimated at 2.29x Net debt/ adjusted EBITDA in the range of 2.0-2.5x#18OUR OUTLOOK (UNCHANGED) 18 2021-2023 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) 2021 SERVICE REVENUES Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 73.0bn) Adjusted EBITDA Flat to low single digit growth in stable fx excl. Telia Carrier (2020 base SEK 29.8 CASH CAPEX Around SEK 14.5-15.5bn (excl. Telia Carrier and license and spectrum fees)#19ALLISON KIRKBY PRESIDENT & CEO Q1 Interim report January - March 2021#20Q1 2021 IN SUMMARY... 20 ● ● ● ● ● First quarter in line with our expectations Telco business remains resilient TV & Media recovery accelerating Good progress made on our strategic priorities Transformation program accelerating Outlook for 2021 unchanged Clear roadmap to create a Better Telia and generate attractive shareholder returns INSPIRING OUR CUSTOMERS D CONNECTING EVERYONE ~ TRANSFORMING TO DIGITAL DELIVERING SUSTAINABLY#21DISCLAIMER & 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 2020 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.