#1Q3 Interim report January - September 2021#2GROUP HIGHLIGHTS N ● ● ● ● ● ● ● Continued progress towards a better Telia Broad based operational momentum Service revenue growth in 7 of 8 units OPEX impacted by pension phasing EBITDA decline due to higher content costs and OPEX CAPEX higher from network modernization Strong OFCF generation, at SEK 9 billion YTD Tower transaction on track to be closed in Q4 Proforma leverage at low end of range SEK billion Service revenues OPEX change Adjusted EBITDA Cash CAPEX excl licenses & spectrum* OFCF YTD* Proforma leverage** * In reported SEK, including change ** Assumes the towers transaction was already closed September 30, 2021 (and compared to June 30, 2021 leverage) Q3 2021 18.1 -0.2 7.8 3.2 9.0 1.99x Change LFL vs Q3 2020 +2.3% +1.1% -1.9% +5.9% -2.3% -0.08x#3STRATEGY HIGHLIGHTS I 3 SKI (SWE) and EPSI (NOR) affirms premium position Converged customer base growing with low churn Sweden: +8k ● ● ● INSPIRING OUR CUSTOMERS Content with access 170% growth in Finland Enterprise segment growth for a 2nd consecutive quarter ● Norway: +6k Finland: +15k ● Subscriber growth in all markets Broad product portfolio (such as Crowd Analytics, EMN and loT/Smart building) drives deal flow TV & Media viewership CSOV: Sweden -2.7ppt to 44.2%, Finland +0.1ppt to 40.3% C More OTT revenue growth at 52% L Network modernization and 5G roll-out momentum ● 5G leader in Sweden, Norway, Estonia and Lithuania 5G now available in Sweden's top 25 cities 5G pop coverage at 54% in Finland and 31% in Norway Sole 5G provider in Estonia 5G spectrum secured in Norway Sweden fiber customers now >1m, and >1.8m across Telia Decommissioning legacy 3% of data traffic left in 3G networks, 25% of voice SEK 120m cost reduction in Sweden from legacy migration YTD ● ● CONNECTING EVERYONE ● ● Tower deal in Finland and Norway on track to close in Q4 2021#4STRATEGY HIGHLIGHTS II S TRANSFORMING TO DIGITAL Transformation program progressing to plan IT transformation ● SEK 68m cost reduction in the quarter (SEK 173m YTD) Benefits accrue from decommissioning platforms, near shoring and strategic partner consolidation Selected VMware (IT cloud) and Pluralsight (technology skill transformation) Product and process simplification >100 legacy systems and 50 product lines decommissioned Continued resource reduction with 750 exited YTD TV & Media digitalization Digital ad revenues growth of 24% d DELIVERING SUSTAINABLY Financial target progression ● ● ● Sustainability progress ● Financial performance in line with plan Minimum dividend fully covered by 9-month OFCF Structural elements of OFCF at SEK 7 billion Balance sheet strength ● Awarded Ecovadis gold level recognition Science based targets at 7 out of the 10 largest emitters Ranked #1 or #2 for privacy standards#5SWEDEN FINANCIALS LO Service revenues Reported currency, in millions, like for like growth +0.5% 7,286 Q3 20 Q4 20 ■ Consumer 5 7,544 7,233 7,336 7,337 * Q1 21 Q2 21 Q3 21 Enterprise Other Service revenues split Reported currency, in millions, like for like growth +3.5% 6,441 6,580 LLLLL Copper legacy = Fixed telephony and xDSL 6,650 6,366 Q3 20 Q4 20 EO-items Underlying Service revenues increased 0.5% (SEK 33m), despite copper related pressure of (SEK 166m) Underlying service revenues, ex copper and one offs, up 3.5% Consumer segment stable, with mobile growing 1.5%, excl 2020 one-offs Q3 Highlights Q1 21 Q2 21 Q3 21 Roaming Copper legacy* ● 6,589 ● 749 Adj EBITDA Reported currency, in millions, like for like growth -1.3% 3,433 3,359 Q3 20 Q4 20 3,235 3,308 3,390 Q1 21 Adj EBITDA Q2 21 Q3 21 Enterprise segment increased 1.0%, with mobile growing 1.1% EBITDA impacted by pension phasing of SEK 60m, excluding this EBITDA was stable#6SWEDEN KPIs Mobile postpaid subs and ARPU Subscriptions 000', ARPU in SEK 242 241 239 244 244 4,120 4,129 4,096 4,103 4,112 Q3 20 Q4 20 Q1 21 Postpaid ex M2M Q2 21 Q3 21 -ARPU Consumer and Enterprise postpaid subscription bases increased along with ARPU YOY growth 310 309 Broadband subs and ARPU Subscriptions 000', ARPU in SEK |-- I 946 Q3 20 315 282 960 314 259 +9% 977 Q4 20 Q1 21 Fiber and FWA 314 232 994 320 209 1,035 Q2 21 Q3 21 Copper Q3 Highlights Broadband base stable as gain on fiber compensated for copper decline ARPU supported by xDSL and fiber pricing 168 919 TV subs and ARPU Subscriptions 000', ARPU in SEK 171 929 Q3 20 Q4 20 175 935 Q1 21 Subscriptions 174 949 Q2 21 Solid development for IPTV subs and APRU -ARPU 176 975 Q3 21 Subs intake in Q3 related to sport content#7FINLAND Service revenues Reported currency, in millions, like for like growth -1.0% 3,085 3,231 Q3 20 Q4 20 ■ Consumer ● 2,991 3,017 3,007 Q1 21 Enterprise Q2 21 Q3 21 Other Adj EBITDA Reported currency, in millions, like for like growth -4.5% 1,280 I 1,154 Q3 20 Q4 20 1,070 1,046 Service revenues declined 1.0% (SEK 32m) due to fixed telephony and IT service, but with positive growth in TV Both Consumer and Enterprise segments declined slightly Q1 21 Adj EBITDA Q3 Highlights ● Q2 21 ● ● 1,185 Q3 21 Mobile postpaid subs and ARPU Subscriptions 000', ARPU in EUR 18.9 19.3 2,763 2,750 Q3 20 18.8 18.8 18.5 2,747 2,779 2,786 Q4 20 Q1 21 Postpaid ex M2M Q2 21 Q3 21 ARPU OPEX up 1.2%, impacted by higher pension costs 5G subscriber base continues to grow, now at around 145k Focus: Value load through 5G and content, channel optimization, pricing and brand building#8NORWAY ∞ Service revenues Reported currency, in millions, like for like growth +0.4% 2,851 2,763 ● 2,756 2,827 2,913 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 ■ Consumer ■ Enterprise ■ Other Adj EBITDA Reported currency, in millions, like for like growth -0.7% 1,643 1,523 Q3 20 Q4 20 Service revenue increased despite negative impact of SEK 55m from the new ICE contract 1,543 1,530 EBITDA down 0.7% (11m) as ICE impact not fully mitigated by underlying improvement Q1 21 Adj EBITDA Q3 Highlights ● ● Q2 21 Q3 21 ● 1,669 Mobile postpaid subs and ARPU Subscriptions 000', ARPU in NOK 277 273 1,857 1,846 Q3 20 267 269 1,864 Q4 20 Q1 21 Postpaid ex M2M 1,879 Q2 21 285 1,886 Q3 21 -ARPU Consumer segment grew 2.3% driven by mobile & broadband Enterprise segment grew 3.6% driven by mobile Solid ARPU growth partly due to VAS#9LED MARKETS 780 788 781 Lithuania Reported currency, in millions, like for like growth +8.1% +9.3% ● Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 Service revenues ● 811 840 380 370 368 370 408 Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 EBITDA Service revenues and EBITDA developing positively Growth of mobile (+10.1%) and fixed (+6.8%) Consumer segment growing 10% and Enterprise growing 4% Estonia Reported currency, in millions, like for like growth +6.0% 649 643 642 665 684 Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 Service revenues 302 281 +5.5% 292 299 313 Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 EBITDA Q3 Highlights Service revenues and EBITDA developing positively || Growth of mobile (+6.2%) and fixed (+5.6%) Consumer segment growing 6% and Enterprise growing 4% Denmark Reported currency, in millions, like for like growth -10.6% 966 965 +2.2% 921 937 981 Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 Service revenues 274 269 216 221 240 Q3 Q4 Q1 Q2 Q3 20 20 21 21 21 EBITDA Service revenues turned to growth supported by mobile EBITDA negatively impacted by non-cash item#10TV & MEDIA 1,633 Service revenues Reported currency, in millions, like for like growth Q3 20 ● 10 2,340 +15.4% 1,904 2,271 1,878 Q4 20 Q1 21 Q2 21 Q3 21 TV Advertising Other Adj EBITDA Reported currency, in millions, like for like growth 249 200 Q3 20 Q4 20 Service revenues increased 15.4% from both Advertising (12.4%, SEK 124m) and Pay TV (20.8%, SEK 127m) -23.6% EBITDA declined SEK 59m as revenue growth was offset by higher content costs and production activity C More subscriber base impacted by non-sport churn 120 575 Q1 21 Q2 20 ■Adj EBITDA Q3 Highlights ● 191 Q3 21 144 179 445 C More subs and ARPU Direct OTT subscriptions 000', ARPU in SEK 156 163 217 537 146 FIN 210 528 202 564 Q3 20 Q4 20 Q1 21 Q2 21 ISWE IDEN Advertising continued to recover at a double digit pace Usage on digital platforms continues to grow (+58%) 156 275 540 Q3 21 -ARPU#11Q3 Interim report January - September 2021#12SERVICE REVENUES 12 18.7 ● Q3 20 Service revenues development SEK in billions, in reported currency, like for like growth 19.8 Q4 20 ■Consumer OUTLOOK +2.3% 18.7 18.9 Q1 21 Q2 21 Enterprise Other 18.1 • Consumer service revenues grew by 1.6% excl. TV & Media Enterprise service revenues grew 1.6% excl. TV & Media • Service revenues growth YTD of +1.0% Q3 21 ● Service revenues bridge Like for like growth ● +2.3% Q3 20 SWE FIN NOR DEN • Growth in Sweden despite increased legacy pressure • Pressure on mainly fixed revenues in Finland Norway growing despite lower wholesale revenues Strong TV & Media and LED development LIT EST TVM Other Q3 21 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 -2.9% ● Q3 20 OPEX development Operational expenses, y-o-y, like for like growth 2.9% Q4 20 -3.0% Q1 21 0.0% Q2 21 1.1% Q3 21 • SEK 200m cost efficiencies from workforce and IT offset by pension phasing and inflationary pressure OPEX lower by 0.7% YTD Impact from transformation and resource reduction increasingly visible ahead Q3 20 Resources OPEX bridge Like for like growth To reduce OPEX by SEK 2bn until 2023 and by SEK 4bn until 2025 +1.1% Marketing Other Q3 21 • Resource efficiencies more than offset by pension phasing, salary inflation and customer support in Sweden • Other reduction from lower IT costs#14EBITDA 14 8.2 Q3 20 Adjusted EBITDA development SEK in billions, in reported currency, like for like growth 7.5 OUTLOOK Q4 20 -1.9% 7.2 Q1 21 7.7 Q2 21 7.8 Q3 21 • EBITDA decline in the quarter due to higher content costs and higher OPEX (incl. pension phasing) • EBITDA growth YTD of +0.8% Adjusted EBITDA bridge Like for like growth -1.9% ľ Q3 20 SWE FIN NOR DEN LIT EST TVM Other Q3 21 • Finland impacted by revenue decline and higher OPEX • TV & Media impacted by sport rights and higher production activity 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 14 13 12 Cash CAPEX development Reported currency in SEK billion, excluding licenses and spectrum fees, R12 Q3 20 Q4 20 OUTLOOK Q1 21 Q2 21 Q3 21 13.6 • Cash CAPEX R12 of SEK 13.6bn or 15.4% of net sales • Cash CAPEX to further increase Q4 • Main risk relate to supply chain issues ● Cash CAPEX by type Reported currency in SEK billion, excluding licenses and spectrum fees ● 3.0 Q3 20 4.2 Q4 20 Mobile NW 2.8 Q1 21 Fixed NW 3.4 Q2 21 Prod dev/IT • Increase in mobile network activities related to modernization and 5G Lower fixed due to less fiber related investments Slight increase in prod dev/IT due to transformation 3.2 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) Q3 21 ■ Other#16OPERATIONAL FREE CASH FLOW 16 4 12 1086 14 ● 4 2 0 Operational free cash flow development Reported currency, SEK billion, R12 Q3 19 Minimum dividend level Q1 20 Q3 20 Q1 21 Q3 21 Ex NWC contr. 11.9 Operational free cash flow • Lower R12 cash flow driven mainly by lower EBITDA and less working capital contribution 7.5 • Cash flow excl working capital R12 as expected slightly below the minimum dividend commitment of SEK 8.2bn Operational free cash flow YTD of SEK 9.0bn Operational free cash flow bridge Reported currency, SEK billion ● Q3 20 EBITDA -21.3% Cash Intr./tax Other NWC Q3 21 CAPEX • Lower EBITDA mainly from Carrier disposal and Finland Higher CAPEX from network upgrade and 5G roll-out • Net working capital was slightly negative in the quarter 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#17NET DEBT AND LEVERAGE 17 2.32x 69.2 Q2 21 Net debt and leverage development Reported currency, SEK billion and leverage ratio -6.7 Opera- tions -2.8 3.2 0.6 2.24× = Leverage ratio (multiple, rolling 12 months) 66.4 Cash Other Q3 21 CAPEX -7.4 1.99x 59.0 Tower Q3 21 proceeds proforma • Net debt and leverage down driven by operations • Proforma leverage Q3 of 1.99x (including tower proceeds) • Dividend of SEK 4.1 billion to be paid Q4 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 EK 29.8bn) CASH CAPEX Around SEK 14.5-15.5bn (excl. Telia Carrier and license and spectrum fees)#19Q3 Interim report January - September 2021#20Q3 2021 IN SUMMARY... 20 ● ● ● ● ● ● Continuing to deliver in line with plan Improved customer offering and operational momentum Service revenue growth driven by 7 of 8 units Acceleration in underlying growth in Sweden Good progress on our strategic priorities Transformation and efficiencies on track while headwinds Tower transaction on track to close in Q4 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#21Q&A#22STRATEGY EXECUTION-SUSTAINABILITY 22 Inspiring our Customers ● Climate-neutral in own op ● • 16% of supply chain emissions covered by Science Based Targets Enabled customers to reduce: • 490k tons of CO2 • 290 GWh electricity ● Launch of Eco Rating Goal: Zero CO2 and zero waste by 2030 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION SUSTAINABLE CITIES AND COMMUNITIES Connecting Everyone Securing reliable access to connectivity for all is key to bridge the digital divide 5G and fibre NDESTRY INNOVATION AND INFRASTRUCTURE Securing digital skills is equally important as reliable access ● 123,000 individuals reached YTD Goal: 1 million individuals reached through digital inclusion initiatives by 2025 GENDER EQUALITY Committed to deliver strong contributions to several Sustainable Development Goals: INDUSTRY INNOVATION AND INFRASTRUCTURE 10 PEACE JUSTICE ● 16 AND STRONG INSTITUTIONS Transform to Digital High privacy and security standards are key to win contracts and gain trust. ● ● Top-tier positions on privacy in all markets Security as a differentiator in e.g. government contracts Goal: Top tier privacy positions in all markets and preferred supplier status SUSTAINABLE CITIES 11 AND COMMUNITIES DE BEB 16 PEACE, JUSTICE AND STRONG INSTITUTIONS ● Deliver Sustainably Gold supplier in EcoVadis Top score (AAA) in MSCI ESG Research B status in CDP (aim for A) Significant progress in the Sustainable Brand Index rating 2021 Goal: Top tier rated ESG ratings and 50/50 gender balance in top mgmt. 2025 GOOD HEALTH 3 AND WELL-BEING GENDER EQUALITY DECENT WORK AND 8 ECONOMIC GROWTH PEACE, JUSTICE 10 AND STRONG INSTITUTIONS M PARTNERSHIPS FOR THE GOALS 8#23DISCLAIMER & 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.