#1ALLISON KIRKBY PRESIDENT & CEO INTERIM REPORT JANUARY - JUNE 2020 Q2#2FIRST IMPRESSIONS N ● ● ● ● ● Important role in society Strong positions in attractive markets. Huge opportunities in 5G, fiber, convergence and cloud-based services. Highly engaged employees. Desire to restore top line and earnings grow th Improvements needed in Customer experience Commercial speed & execution Strategy execution Productivity Building a new GEM/Leadership team - - OUR VALUES OF DARE CARE SIMPLIFY COULD NOT BE MORE RELEVANT#3Q2 HIGHLIGHTS - RESILIENT DESPITE COVID-19 SERVICE REVENUE DEVELOPMENT 3 Q2 19 Q3 19 Q4 19 Q1 20 YoY growth, like for like -5.6% Q2 20 EBITDA LESS CASH CAPEX* Q2 2020 SEK 3.7 BILLION -2.3% SEK 0.8 BILLION Ex. TV & Media Q2 20 YTD GROWTH (SEK 3.0 billion Q2 2019) *Adjusted EBITDA including repayment of lease liabilities less cash CAPEX excluding licenses Q2 19 ADJUSTED EBITDA DEVELOPMENT Q3 19 YoY growth, like for like Q4 19 OPERATIONAL FREE CASHFLOW Q2 2020 SEK 2.2 BILLION (SEK 2.4 billion Q2 2019) Q1 20 0.0% Q2 20 1.8% Ex. TV & Media Q2 20 PROFORMA LEVERAGE POST TURKCELL SALE 2.48x (2.64x Q2 2020)#4TELCO BUSINESS RESILIENT 4 EBITDA BRIDGE Q2 2020 Like for like, excluding adjustment items +5.0% -3.2% -1.8% Q2 19 Telco op ex Roaming and TV & Media Q2 20 COVID-19 IPTV sport* COVID-19 impact outside the TV & Media unit • Flat EBITDA despite COVID-19 implications The traditional telco business ex COVID-19 grew EBITDA by around 5 percent mainly from: Sequentially improved cost control • TV and Media EBITDA reduced although much less than on revenues Content cost phasing ● ●#5GOOD COST CONTROL IN THE QUARTER LO 5 SERVICE REVENUE DEVELOPMENT Like for like growth, external service revenues -5.6% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 Roaming pressured mobile in all markets. • TV & Media impacted by lower advertising/pay-TV ● EBITDA DEVELOPMENT Like for like growth, excluding adjustment items 0.0% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 ● Improved cost control in all markets. • OPEX down 4 percent Norway benefited from synergies#6MOBILE REVENUES STABLE CO Q2 19 EXCL. ROAMING INCL. ROAMING Q3 19 SWEDEN +2.8% +0.5% MOBILE SUBSCRIBER SERVICE REVENUE GROWTH Like for like, y-o-y change Q4 19 Q1 20 FINLAND +3.0% -2.7% Q2 20 +0.0% NORWAY +1.0% 0.2% MOBILE ARPU DEVELOPMENT Q2 2020 EX. M2M In local currency, based on subscription revenues, y-o-y change -1.8% Ex roaming Q2 20 LITHUANIA +4.2% Mobile subscriber revenues impacted by lower roaming. +0.2% • Solid ARPU trend excl. roaming ● ESTONIA +5.4% -2.1% DENMARK -6.2% -10.0%#7BROADBAND REVENUES GROWING 7 FIXED BROADBAND REVENUE DEVELOPMENT Like for like growth, external service revenues Q2 19 Q3 19 Q4 19 Q1 20 BROADBAND ARPU DEVELOPMENT Q2 2020 In local currency, based on subscription revenues, y-o-y change SWEDEN FINLAND NORWAY LITHUANIA +4.5% -4.7% -5.0% -4.0% 1.3% Q2 20 ESTONIA +2.5% FIXED BROADBAND BASE COMPOSITION Subscriptions in thousands, Sweden 1,250 1,000 750 500 250 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 18 18 18 19 19 Total broadband subscriptions Share of copper % T H Q4 Q1 Q2 19 19 20 20 Share of fiber % • Fiber growth mitigating copper declines Strong growth in OCN enabling convergence 100% 75% 50% 25% 0%#8CONVERGED CUSTOMER BASE GROWING 8 TELIA LIFE CUSTOMERS 288k (+14% Q2 vs. Q1) TELIA1 CUSTOMERS 70K (+4% Q2 vs. Q1) TRIPLE PLAY CUSTOMERS 87K (-2% Q2 vs. Q1) TELIA1 CUSTOMERS 75k (+8% Q2 vs. Q1) ● CONVERGENCE/TRIPLE PLAY CUSTOMERS 82K (-2% Q2 vs. Q1) Growing subscriber base in markets where we have an established converged offering Further opportunities across footprint#9● ● ● TV & MEDIA FUNDAMENTALS ARE MIXED 48.3% I I FREE-TO-AIR 48.4% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Swedish linear CSOV*, ages 15-64 Sweden linear stable Sweden digital CSOV +12 p.p. to 70% Finland linear stable at 41% 9 *CSOV= Commercial Share of Viewing ● 800 600 400 200 0 C MORE C More OTT subscriber base (direct) ● Sequential reduction due to ● Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 593K Postponed/cancelled sport Conflict effects 4% 0% -4% -8% -12% ● ● IPTV -10.2% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 Service revenues, like for like ex. IPTV Sport adjustments (%) -0.4% Ex. COVID-19 Q2 20 Premium sports severely impacted Q2 Premium sports prices now reinstated#10DOUGLAS LUBBE ACTING CFO INTERIM REPORT JANUARY - JUNE 2020 Q2#11GOOD COST CONTROL IN THE QUARTER 11 SERVICE REVENUE DEVELOPMENT Like for like growth, external service revenues -5.6% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 Roaming pressured mobile in all markets. • TV & Media impacted by lower advertising/pay-TV ● EBITDA DEVELOPMENT Like for like growth, excluding adjustment items 0.0% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 ● Improved cost control in all markets. • OPEX down 4 percent Norway benefited from synergies#12SWEDEN - REVENUES IMPACTED BY COVID-19 12 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth ● ● -1.9% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 Service revenues -0.9% Q2 Q2 Q3 Q4 Q1 19 19 19 20 20 EBITDA Mobile impacted by roaming, interconnect and a positive one-off Fixed telephony no longer benefits from price increases SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) +0.5% ● ● Q2 19 Q3 19 Q4 19 Subs. (q-o-q) +41K TV ARPU (y-o-y) -11% Q1 20 11 Q2 20 Subs. (q-o-q) +3K ((( ARPU (y-o-y) +4% ARPU grew despite Covid-19 impacts Broadband continues to show good momentum#13FINLAND - STRONG COST CONTROL 13 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth ● -4.1% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 Service revenues T 4.3% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 EBITDA Revenues fell largely driven by mobile and TV Cost control drove EBITDA growth SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency 2 ARPU (y-o-y) 0.0% ● ● · Q2 19 Subs. (q-o-q) -15K Q3 19 TV Q4 19 ARPU (y-o-y) -27% Q1 20 Q2 20 Subs. (q-o-q) -6K ((( ARPU (y-o-y) -5% Growth in mobile subs driven by B2B segment Liiga playoff cancelation impacted TV adversely#14NORWAY - EBITDA IS IMPROVING 14 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth ● ● -5.4% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 Service revenues 8.4% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 EBITDA Consumer mobile and TV still challenging Cost control and synergies deliver better EBITDA SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) -1.8% ● Q2 19 Q3 19 Q4 19 Q1 20 Subs. (q-o-q) -2K TV ARPU (y-o-y) -7% -8 Q2 20 Subs. (q-o-q) +9K Mobile ARPU fell due to roaming • Continued growth in broadband subs ((( ARPU (y-o-y) -5%#15LITHUANIA - A STRONG QUARTER 15 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth 7.2% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 Service revenues 9.2% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 EBITDA SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) +0.2% · Q2 19 Q3 19 Q4 19 Q1 20 Subs. (q-o-q) +3K TV ARPU (y-o-y) +11% 6 Q2 20 Subs. (q-o-q) +2K ((( ARPU (y-o-y) -1%#16ESTONIA - UNABLE TO FULLY OFFSET COVID-19 IMPACT 16 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Q2 Q3 Q4 Q1 19 19 19 20 2.1% Q2 20 Service revenues -1.3% Q2 Q3 Q4 Q1 Q2 19 19 20 20 19 EBITDA SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) -2.1% · Q2 19 Q3 19 Q4 19 Subs. (q-o-q) -2K TV ARPU (y-o-y) +14% Q1 20 5 Q2 20 Subs. (q-o-q) -1K ((( ARPU (y-o-y) +2%#17DENMARK - STRONG COST CONTROL 17 SERVICE REVENUES & ADJUSTED EBITDA Like for like growth Q2 Q3 Q4 Q1 19 19 19 20 -7.4% Service revenues Q2 20 -0.5% Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 EBITDA SUBSCRIPTIONS & ARPU DEVELOPMENT Subscription growth q-o-q in 000', subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) -10.0% · Q2 19 Subs. (q-o-q) +12K Q3 19 Q4 19 TV ARPU (y-o-y) -41% Q1 20 14 Q2 20 Subs. (q-o-q) +3K ((( ARPU (y-o-y) +16%#18TV AND MEDIA - SEVERELY IMPACTED BY COVID-19 SERVICE REVENUES & ADJUSTED EBITDA SEK million, like for like growth, external service revenues 2,500 2,000 1,500 1,000 500 0 18 -32% Q2 19 Q2 20 Service revenues mtv C MORE Q2 19 -30% Q2 20 EBITDA 4 ● Revenues fell due to: Advertising market hit by COVID-19 • Cancellation of sport broadcasts ● Impact on EBITDA from revenue loss largely offset by: Lower content cost due to cancelled sports Phasing on non sports related content Large part of content costs that was expected in Q2 20 will be taken in H2 20 ● ● ● ● TV#19STABLE CASH FLOW DEVELOPMENT 19 OPERATIONAL FREE CASH FLOW DEVELOPMENT SEK billion, rolling twelve months 14 12 10 8 6 4 2 0 Q2 18 Q3 Q4 18 18 Repayment of lease liabilities SEK 11.2 BILLION Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 19 20 20 OPERATIONAL FREE CASH FLOW Q2 SEK billion 2.4 Q2 2019 0.3 0.4 (-0.2 -1.0 EBITDA CAPEX Working less capital leasing* licenses ex. 0.2 Tax -0.2 Other 2.2 Q2 2020 • EBITDA now includes the acquired TV & Media unit ● • Lower CAPEX mainly related to Sweden (fiber) ● • Negative working capital development driven by tough comparison and TV and Media#20STABLE NET DEBT AND LEVERAGE DEVELOPMENT 20 NET DEBT DEVELOPMENT SEK billion and leverage ratio 2.62x 83.7 Q1 20 -6.3 3.5 Operations Cash CAPEX 3.7 0.6 -1.4 Dividend Closing FX & other adjustment = Leverage ratio (multiple, rolling 12 months including a full 12 months of Bonnier Broadcasting) 2.64x 83.8 Q2 20 ● ● Unchanged net debt despite payment of dividend and final Bonnier Broadcasting payment Exchange rate movements reduced net debt by c. SEK 2 billion Second dividend payment of SEK 3.7 billion due Q4 2020 Turkcell proceeds of c. SEK 5 billion expected in H2 2020#21ALLISON KIRKBY PRESIDENT & CEO INTERIM REPORT JANUARY - JUNE 2020 Q2#22OUTLOOK FOR 2020 OPERATIONAL FREE CASH FLOW (UNCHANGED) 22 SEK 9.5 10.5 billions ADJUSTED EBITDA (NEW) Adjusted EBITDA generation in constant currency is expected to be similar in the second half of the year compared to the first half CAPITAL ALLOCATION (UNCHANGED) Committed to maintain investment grade Maintain previously communicated 2019 dividend#23SUMMARY ● ● 23 Q2 better than our expectations On track to deliver outlook for the full year Telco business resilient Supporting our communities remains a priority Key immediate priorities to improve performance Customer Experience ● ● ● ● Connectivity Convergence Cost base OUR VALUES OF DARE CARE SIMPLIFY COULD NOT BE MORE RELEVANT#24Telia Company Q&A#25DISCLAIMER & 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. 25