Telia : Report Q3 2023

Q3

Interim report

January - September 2023

Telia Company Interim report January - September 2023	Q3

Telco growth accelerated further

Third quarter summary1

• Revenue increased 4.3% to SEK 21,997 million (21,096) and like for like, revenue increased 1.1%.
• Service revenue increased 5.6% to SEK 18,986 million (17,984) and like for like, service revenue increased 2.6%. For the Telco operations, service revenue increased 3.9% on a like for like basis.
• Adjusted EBITDA increased 9.5% to SEK 8,465 million (7,730) and like for like, adjusted EBITDA increased 7.6%. For the Telco operations, adjusted EBITDA increased 9.3% on a like for like basis.
• Operating income increased to SEK 3,515 million (3,088) and total net income3 increased to SEK 1,960 million (1,883).
• Operational free cash flow increased to SEK 3,357 million (1,862) and the structural part of operational free cash flow increased to SEK 3,660 million (2,574).
• Cash flow from operating activities3 increased to SEK 7,514 million (6,151).
• The leverage ratio3 was 2.53x at the end of the quarter.
• The outlook for 2023 is updated. See page 5.
• A final and binding agreement to sell Telia's operations and network assets in Denmark to Norlys was signed in the quarter. Operations and network assets in Denmark to be sold are therefore classified as held for sale and discontinued operations, see Note 13.

Service revenue

18,986

(SEK million)

+2.6% like for like

Adjusted

EBITDA

8,465

(SEK million)

+7.6% like for like

Nine months summary1

• Revenue increased 4.8% to SEK 65,687 million (62,686) and like for like, revenue increased 2.5%.
• Service revenue increased 4.3% to SEK 56,246 million (53,924) and like for like, service revenue increased 2.2%. For the Telco operations, service revenue increased 3.3% on a like for like basis.
• Adjusted EBITDA increased 3.6% to SEK 22,763 million (21,977) and like for like, adjusted EBITDA increased 2.4%. For the Telco operations, adjusted EBITDA increased 5.3% on a like for like basis.
• Operating income decreased to SEK 7,379 million (8,165) and total net income3 decreased to SEK 3,615 million (4,653).
• Operational free cash flow decreased to SEK -337 million (4,828) and the structural part of operational free cash flow decreased to SEK 4,925 million (5,818).

Highlights1

Structural part of Operational free cash flow

3,660

(SEK million)

SEK in millions, except key ratios,	Jul-Sep	Jul-Sep		Chg		Jan-Sep		Jan-Sep	Chg
per share data and changes	2023	2022		%		2023		2022	%
Revenue	21,997	21,096	4.3		65,687		62,686	4.8
Change (%) like for like	1.1					2.5
of which service revenue2	18,986	17,984		5.6		56,246		53,924	4.3
change (%) like for like	2.6					2.2
change (%) like for like, Telco operations	3.9					3.3
Adjusted EBITDA	8,465	7,730		9.5	22,763		21,977	3.6
change (%) like for like	7.6					2.4
change (%) like for like, Telco operations	9.3					5.3
Margin (%)	38.5	36.6				34.7		35.1
Adjusted operating income	3,654	3,270	11.7	8,488		8,696	-2.4
Operating income	3,515	3,088		13.8	7,379		8,165	-9.6
Income after financial items	2,382	2,306	3.3		4,404		5,650	-22.0
Total net income, continuing and discontinued operations3	1,960	1,883		4.1		3,615		4,653	-22.3
EPS total (SEK), continuing and discontinued operations3	0.46	0.42	7.3		0.80		1.02	-21.7
Structural part of Operational free cash flow	3,660	2,574		42.2	4,925		5,818	-15.4
Operational free cash flow	3,357	1,862		80.3		-337		4,828	-107.0
CAPEX excluding fees for licenses, spectrum and right-of-	2,901	3,516		-17.5	10,063		10,493	-4.1
use assets

1. Continuing operations if not otherwise stated. Telia Denmark classified as discontinued operations from Q3 2023. 2) Restated, see Note 1. 3) Refers to continuing and discontinued operations.

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Telia Company Interim report January - September 2023	Q3

CEO comment...

"In the third quarter, Telia's growth accelerated to levels not seen in many years, with momentum in our Telco operations more than compensating for the weak advertising market. With all Telco markets now showing solid top and bottom-line development, we are clearly progressing against our plans to build the Better Telia we envisaged for all our stakeholders, when we laid out our growth strategy almost three years ago.

Service revenue growth accelerated to 3.9% in our Telco operations, with growth in all markets and equally driven by mobile and fixed services and has consistently been in the 2-4% range in six of the last seven quarters.

Telco EBITDA growth of 9.3%, the highest ever, was driven by improved underlying trends in both revenue and costs, as well as benefiting from some temporary tailwinds, including lower energy prices. Excluding effects of energy prices, Telco EBITDA has grown consistently in the past eight quarters. Meanwhile, the challenges for TV and Media in advertising and streaming markets are now partly mitigated by the broad set of actions taken, although much work remains. This led to an overall EBITDA growth for the group of 7.6% for the quarter.

Delivery against our key strategic priorities continued with the following key achievements during the quarter: 1) Revenue growth accelerated, as did relationship NPS, despite price increases; 2) Our network leadership position was strengthened further with Telia's 5G now reaching 87% of the Nordic/Baltic population and in us securing the leading spectrum portfolio in the recent Swedish spectrum auction; 3) Structural cost transformation continued, resulting in 2.1% reduction in operational expenses, in spite of inflation; , 4) Our net zero target for 2040 was approved by the SBTi, a significant moment for us and one that confirms our unwavering commitment to ensuring every part of Telia is equipped to deliver responsibly and sustainably; and, 5) The final binding agreement for the divestment of Telia Denmark to Norlys was completed in the quarter and the transaction remains on track to close in Q1 2024, as previously announced. As a result, Denmark is now reported as discontinued operations.

Sweden's service revenue grew 2.2%, driven in particular by 5.4% growth in Enterprise, where our security and cloud services are increasingly relevant and in-demand for both private and public enterprises. Wholesale grew 4.2%, driven by pricing. And Consumer broadband and TV grew in terms of both customer numbers and revenue, while mobile was stable. EBITDA growth improved, from both temporary tailwinds and an improved channel mix. Infrastructure modernization continued at pace with 5G coverage now at 77%, fiber revenue grew 10% and a successful outcome of the important multi-band spectrum auction increased and secured leading spectrum positions for the coming 25 years.

Finland delivered another quarter of service revenue growth of around 2%. Continued strong growth in Consumer mobile ARPU, driven by a reduced exposure to the low-end segment, was the main driver in the quarter, but the Enterprise and Wholesale

segments also showed positive growth. Network modernization and a relentless focus on customer value resulted in improved network perception and higher relationship NPS. The lowest mobile churn in six years and an efficient channel strategy drove a reduction in sales and marketing cost. This, together with further resource cost reductions and significant energy tailwind resulted in double digit EBITDA growth.

Norway's service revenue growth was again strong at 5.8%, driven by positive development across Consumer, Enterprise and Wholesale. Growth in mobile wholesale was in particular driven by Fjordkraft mobile, which for the first time contributed a full quarter. Key initiatives in the quarter such as the launch of ICT services from Telia Cygate and an enhanced TV proposition, are fueling our "daring challenger" brand position and consideration. Double digit EBITDA growth was driven by the revenue momentum, an improved channel mix towards own channels and an energy tailwind.

Lithuania service revenue growth accelerated to 9.9%, driven by active pricing across both mobile and fixed services, as well as from the successful delivery of connectivity to the NATO summit in Vilnius in July. Our 5G leadership is strengthening brand consideration, increasing further our postpaid subscriber base. EBITDA growth of 19.4% was driven mainly by the higher service revenue and a considerable energy tailwind. Estonia also continued to counteract inflation with progressive pricing, and a premium brand positioning focused on the vital role Telia plays in both technology innovation and connectivity, resulting in service revenue growth of 7.2%. Reduced energy prices also contributed to an EBITDA growth of 15.4%.

TV and Media continues to experience a tough advertising market whilst in the midst of a major business transition. The new TV4 Play service was launched in the quarter and is so far progressing according to plan, confirming the relative strength of

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Telia Company Interim report January - September 2023	Q3

the TV4 brand in relation to C More, which is being gradually discontinued. Advertising sales fell 16%, in line with our expectations, while direct OTT revenue grew 9%. Restructuring continues, and although EBITDA declined, it fell less than in the previous quarter.

Our agenda for returning TV and Media to profitability remains. First, we are executing on the merger of the C More services into TV4 and MTV, the launch of the new hybrid service from TV4, and the closing of the C More brand. Second, we are making a fundamental change to our premium sports business by only pursuing rights with certain clear profiles that support the TV4 and MTV local positions going forward, and with a significantly improved cost/revenue ratio. And third, we are addressing the TV4 and MTV cost base. In taking these steps, our TV and Media business will accelerate its digitalization, become even more relevant for both viewers and advertisers, and be in a stronger position to restore profitability and cash generation when the advertising market returns.

All of our other key financial metrics were in line with our expectations, with Operational Free Cash flow at SEK 3.4 billion, and the structural part at SEK 3.7 billion. Leverage fell to 2.53x due mainly to growth in EBITDA.

Looking ahead, and based in part on this quarter's results, we can now upgrade our EBITDA outlook to low-single digits this year, vs. our earlier outlook of flat to low-single digit growth. The structural part of Operating Free Cash Flow is expected to be around SEK 7.5 billion, despite the discontinuation of Denmark. Further, the ongoing recovery in working capital, in the midst of the remaining macro uncertainties, will remain a key focus area during Q4 and into next year. On leverage, our view remains unchanged that it is expected to be well within our 2.0-2.5x target range after the closing of the transaction in Denmark.

To close, I could not be prouder of the progress we have made towards creating a "Better Telia" in these past 3+ years despite the many macro headwinds we have faced. With our network leadership secured, a return to consistent growth in all our Telco markets, progress against our structural cost agenda, sustainability embedded in our operations, and a much- improved capital allocation, I believe that it is a stronger Telia that I will transition to the next CEO at the beginning of next year. I would like to take this opportunity to thank the whole Telia team for their enormous efforts to make Telia a much better company for all its stakeholders, today, tomorrow and well into the future."

Allison Kirkby

President & CEO

In CEO comment, all growth rates disclosed are based on the "like for like" definition and EBITDA refers to adjusted EBITDA, unless otherwise stated. See definitions for more information.

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Telia Company Interim report January - September 2023	Q3

Outlook for 2023 (updated)

Service revenue, like for like, is estimated to grow by low single digits.

Adjusted EBITDA, like for like, is estimated to grow by low single digits. (Previously: Adjusted EBITDA, like for like, is estimated to be flat to grow by low single digits.)

CAPEX, excluding fees for licenses and spectrum and right of use assets, is estimated to be around SEK 13.5 billion. (Previously: CAPEX, excluding fees for licenses and spectrum and right of use assets, is estimated to be in the range of SEK 13.0-14.0billion.)

The structural part of Operational free cash flow is estimated to be around SEK 7.5 billion. (Previously: The structural part of Operational free cash flow is estimated to be in the range of SEK 7.0-9.0billion.)

Note: Previous outlook included the former segment Denmark, which is no longer included in continuing operations.

Leverage and credit rating target

Telia Company targets a leverage corresponding to Net debt/adjusted EBITDA in the range of 2.0-2.5x and a solid investment grade of A- to BBB+.

Dividend policy

Telia Company intends to follow a progressive dividend policy, with a floor of SEK 2.00 per share and an ambition for low to mid-single digit percentage growth.

Ordinary dividend to shareholders

For 2022, the Annual General Meeting (AGM) decided on an ordinary dividend of SEK 2.00 per share (2.05), totaling SEK 7.9 billion (8.3). The dividend will be split and distributed in four tranches of SEK 0.50 per share.

First distribution

The Annual General Meeting (AGM) decided that the first distribution of the dividend was to be distributed by Euroclear Sweden on April 14, 2023.

Second distribution

The Annual General Meeting (AGM) decided that the second distribution of the dividend was to be distributed by Euroclear Sweden on August 3, 2023.

Third distribution

The Annual General Meeting (AGM) decided that the final day for trading in shares entitling shareholders to dividend be set for October 24, 2023, and that the first day of trading in shares excluding rights to dividend be set for October 25, 2023. The record date at Euroclear Sweden for the right to receive dividend will be October 26, 2023. The dividend is expected to be distributed by Euroclear Sweden on October 31, 2023.

Fourth distribution

The Annual General Meeting (AGM) decided that the final day for trading in shares entitling shareholders to dividend be set for February 1, 2024, and that the first day of trading in shares excluding rights to dividend be set for February 2, 2024. The record date at Euroclear Sweden for the right to receive dividend will be February 5, 2024. The dividend is expected to be distributed by Euroclear Sweden on February 8, 2024.

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Telia Company Interim report January - September 2023	Q3

Review of the group, third quarter 2023

Revenue and earnings

Revenue increased 4.3% to SEK 21,997 million (21,096) and like for like, revenue increased 1.1%.

Service revenue increased 5.6% to SEK 18,986 million (17,984) and like for like, service revenue increased 2.6% driven by a positive development for the Telco operations.

Adjusted EBITDA increased 9.5% to SEK 8,465 million (7,730) and the adjusted EBITDA margin increased to 38.5% (36.6). Like for like, adjusted EBITDA increased 7.6% as growth of 9.3% for Telco operations, partly due to SEK 119 million lower energy costs, more than compensated for a negative development for TV and Media.

Adjustment items affecting operating income amounted to SEK -138 million (-182). See Note 2.

Adjusted operating income increased to SEK 3,654 million (3,270).

Financial items totaled SEK -1,134 million (-782) of which SEK -1,100 million (-755) related to net interest expenses. The increase in net interest expenses was mainly due to increased interest rates and foreign exchange rates.

Income taxes amounted to SEK -595 million (-511). The effective tax rate was 25.0% (22.1). The increased effective tax rate was mainly impacted by non tax-deductible interest expenses in Sweden, and adjusted for this the effective tax rate would have been 20.6% (22.1).

Net income from continuing operations decreased to SEK 1,787 million (1,794) and Net income from discontinued operations increased to SEK 173 million (89).

Other comprehensive income improved to SEK -7million (-335)mainly due to positive remeasurements of defined benefit pension obligations.

Cash flow, continuing and discontinued operations

Cash flow from operating activities increased to SEK 7,514 million (6,151) mainly due to improved EBITDA in continuing operations and less negative impact from working capital.

Cash flow from investing activities amounted to SEK -2,844 million (-331). The third quarter of 2022 was mainly impacted by higher net disposals of short-term investments as well as higher cash CAPEX.

Cash flow from financing activities amounted to SEK -4,077million (-7,301).The third quarter of 2023 was impacted by the payment of the second tranche of the dividend whilst the comparative quarter 2022 was impacted by repurchased treasury shares as well as a negative net of proceeds and repayments of long-termborrowings.

Operational free cash flow, continuing operations

Structural part of Operational free cash flow increased to SEK 3,660 million (2,574) mainly due to improved adjusted EBITDA and decreased cash CAPEX excluding licenses and spectrum.

Operational free cash flow increased to SEK 3,357 million (1,862) mainly due to improved adjusted EBITDA, less negative impact from working capital and decreased cash CAPEX excluding fees for licenses and spectrum.

Financial position

CAPEX excluding right-of-use assets from continuing operations, increased to SEK 4,456 million (3,861). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 2,901 million (3,516). Cash CAPEX decreased to SEK 3,021 million (3,502).

Net debt from continuing and discontinued operations was SEK 78,977 million at the end of third quarter (81,007 at the end of the second quarter of 2023). The net debt/adjusted EBITDA ratio decreased to 2.53x compared to 2.66x at the end of the second quarter.

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Telia Company Interim report January - September 2023	Q3

Review of the group, nine months 2023

Revenue and earnings

Revenue increased 4.8% to SEK 65,687 million (62,686) and like for like, revenue increased 2.5%.

Service revenue increased 4.3% to SEK 56,246 million (53,924) and like for like, service revenue increased 2.2% driven by a positive development for Telco operations.

Adjusted EBITDA increased 3.6% to SEK 22,763 million (21,977) and the adjusted EBITDA margin decreased to 34.7% (35.1). Like for like, adjusted EBITDA increased 2.4% as growth for Telco operations more than compensated for a negative development for TV and Media.

Adjustment items affecting operating income increased to SEK -1,109 million (-531) mainly impacted by higher personnel redundancy costs as well as capital gains and losses. See Note 2.

Adjusted operating income decreased to SEK 8,488 million (8,696).

Financial items totaled SEK -2,974 million (-2,514) of which SEK -2,997 million (-2,115) related to net interest expenses. The increase in net interest expenses was mainly due to increased interest rates and foreign exchange rates.

Income taxes amounted to SEK -1,237 million (-1,254). The effective tax rate was 28.1% (22.2). The increased effective tax rate was mainly impacted by non tax-deductible interest expenses in Sweden, and adjusted for this the effective tax rate would have been 22.2% (22.2).

Net income from continuing operations decreased to SEK 3,168 million (4,396) and Net income from discontinued operations increased to SEK 448 million (257).

Other comprehensive income decreased to SEK 1,197 million (8,445), mainly due to lower positive remeasurements of defined benefit pension plans and negative foreign translation differences.

Cash flow, continuing and discontinued operations

Cash flow from operating activities decreased to SEK 13,614 million (17,694) mainly due to increased negative impact from working capital partly offset by improved EBITDA.

Cash flow from investing activities amounted to SEK -16,389million (-6,822).2023 was mainly impacted by higher net investments in short-terminvestments and higher cash CAPEX.

Cash flow from financing activities amounted to SEK 3,771 million (-15,685).2023 was impacted by received collateral while 2022 mainly was impacted by higher repayments of long-termborrowings, paid collateral and repurchased treasury shares, partly offset by the partial disposal of the tower business in Sweden.

Operational free cash flow, continuing operations

Structural part of Operational free cash flow decreased to SEK 4,925 million (5,818) mainly due to increased cash CAPEX excluding fees for licenses and spectrum.

Operational free cash flow decreased to SEK -337 million (4,828) mainly due to increased negative impact from working capital and increased cash CAPEX excluding fees for licenses and spectrum.

Financial position

CAPEX excluding right-of-use assets from continuing operations, increased to SEK 11,637 million (10,879). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 10,063 million (10,493). Cash CAPEX increased to SEK 11,039 million (10,073).

Goodwill and other intangible assets decreased to SEK 72,152 million (74,547) mainly impacted by the reclassification of Denmark to Assets classified as held for sale, partly offset by the acquisition of spectrum rights in Sweden.

Property, plant and equipment decreased to SEK 71,762 million (74,824), mainly impacted by the reclassification of Denmark to Assets classified as held for sale.

Investments in associates and joint ventures, pension obligation assets and other non-current assets increased to SEK 10,154 million (8,171), mainly due to positive remeasurements of defined benefit pension plans.

Long-terminterest-bearing receivables increased to SEK 9,145 million (7,629) mainly driven by market value changes on derivatives.

Short-terminterest-bearing receivables increased to SEK 12,653 million (9,676) mainly due to net investments in investment bonds and derivatives, partly offset by a decrease in collaterals for derivatives driven by market value changes.

Assets classified as held for sale increased to SEK 8,299 million (-)as Denmark is classified as discontinued operations. See Note 13.

Long-termborrowings increased to SEK 99,556 million (94,555) mainly impacted by issued bonds and foreign exchange rate effects, partly offset by reclassifications to short-term borrowings.

Short-termborrowings increased to SEK 14,025 million (7,007) mainly due to reclassifications from long-term borrowings.

Trade payables and other current liabilities, current tax payables and short-term provisions decreased to SEK 33,791 million (35,734) mainly due to decrease in accounts payable, partly offset by unpaid dividend liability.

Liabilities directly associated with assets classified as held for sale increased to SEK 4,052 million (-)as Denmark is classified as discontinued operations. See Note 13.

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Telia Company Interim report January - September 2023	Q3

Significant events in the first quarter

• On January 16, 2023, Telia Company announced changes to its Group Executive Management team through the merger of the Communications, Brand and Sustainability functions, appointing Ola Rembe as Senior Vice President, Head of Communications, Brand and Sustainability.
• On February 10, 2023, Telia Company announced that Dan Strömberg, Senior Vice President, Head of LED (Lithuania, Estonia and Denmark) and CEO of Telia Lithuania, plans to retire from Telia Company during the summer of 2023.
• On February 16, 2023, Telia Company issued a bond of EUR 500 million under its existing EMTN (Euro Medium Term Note) program. See Note 8.
• On March 9, 2023, Telia Company issued bonds in four separate tranches with a total amount of SEK 4 billion, under its existing EMTN (Euro Medium Term Note) program. See Note 8.
• On March 24, 2023, Telia Company announced that Per Christian Mørland, Executive Vice President and Group Chief Financial Officer, has given notice of resignation due to family reasons and will be leaving Telia Company during H2 2023 to take on career opportunities closer to his home in Norway.

Significant events in the second quarter

• On April 5, 2023, Telia Company announced the resolutions passed at the Annual General Meeting.
• On April 25, 2023, Telia Company announced the signing of a binding term sheet agreeing upon the key terms on which to sell 100% of its Danish operations and network assets to Norlys, at an expected enterprise value of DKK 6.25 billion (approximately SEK 9.5 billion), equal to 8.9x Telia Denmark's 2022 reported EBITDA. See Note 13.
• On April 28, 2023, it was announced that the number of shares and votes in Telia Company AB (publ) during April had decreased to 3,932,109,286 due to cancellation of 157,522,416 own shares previously repurchased by the company in accordance with the resolution of the Annual General Meeting on April 5, 2023.
• On June 27, 2023, Telia Company announced the appointment of Tim Pennington as interim Executive Vice President, Group Chief Financial Officer and a member of the Group Executive Management team, effective September 2023. Tim Pennington replaces Per Christian Mørland, who, as previously announced, will leave Telia Company at the end of September 2023.

Significant events in the third quarter

• On July 31, 2023, Telia Company announced that the President and CEO Allison Kirkby has decided to leave the company to take on the position as Chief Executive of BT Group Plc. Allison Kirkby will remain in her role as Telia Company President and CEO until January 31, 2024, at the latest.
• On August 10, 2023, Telia Company announced the appointment of Eric Hageman as Executive Vice President, Group Chief Financial Officer and a member of the Group Executive Management team, effective September 15, 2023.
• On September 7, 2023, Telia Company announced that its targets set with the overall aim of achieving net-zero greenhouse gas (GHG) emissions across its value chain by 2040 have been approved by the Science Based Targets initiative (SBTi).
• On September 15, 2023, Telia Company announced that it has entered into a final and binding agreement to sell 100% of its operations and network assets in Denmark to Norlys a.m.b.a. (Norlys) at an enterprise value of DKK 6.25 billion, on a cash and debt-free basis. The transaction, first announced on April 25, 2023, is in line with Telia's strategy to focus on markets in which there is a clear path to securing and defending leading market positions. See Note 13.
• On September 21, 2023, Telia Company announced that Telia Sweden in a spectrum auction had secured 2x15MHz in the 900MHz band, 2x20MHz in the 2.1GHz band and 2x30MHz in the 2.6GHz band at a total cost of SEK 1.55 billion. The 900MHz band frequencies have a duration of 23 years, and the 2.1GHz and 2.6GHz frequencies have a duration of 25 years.

Significant events after the end of the third quarter

• On October 13, 2023 Telia Company announced that its Board of Directors had appointed Patrik Hofbauer as President and CEO, effective February 1, 2024.

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Telia Company Interim report January - September 2023	Q3

Sweden

• Telia continued to modernize its mobile network and roll-out 5G. In the quarter population coverage reached 77%, enabling 8 out 10 swedes to have access to the fastest, most secure and reliable 5G network in the country.
• Telia secured important spectrum in the 900MHz, 2.1GHz and the 2.6GHz bands, allowing Telia to have the leading spectrum position in the market as of 2026. The spectrum will be used to improve and develop Telia's national 4G and 5G networks, including rural areas with insufficient coverage and along the railways.

• Data volumes increased by 21% this summer compared to the summer of last year, and capacity of Telia's network was especially tested during the women's football World Cup. As an example, data consumption increased, compared to a normal day, by almost five times when the Swedish national team played in the semi- finals. Despite the increased volumes, Telia's viewers had a great customer experience.
• Telia's TV service was again named the best according to Swedish viewers in this year's survey performed by the independent analysis company Nordic Bench and TV news. Furthermore, Telia's service also saw the biggest improvement in a number of fields such as experience, simplicity and quality.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%

Revenue

Change (%) like for like

of which service revenue (external) change (%) like for like

Adjusted EBITDA

Margin (%)

change (%) like for like Adjusted operating income Operating income

CAPEX excluding fees for licenses, spectrum and right-of-use assets

Subscriptions, (thousands) Mobile1

of which machine-to-machine (postpaid) Fixed telephony1

Broadband1

TV1

Employees1

8,704	8,698	0.1	26,667	25,887	3.0
0.1			3.0
7,594	7,429	2.2	22,585	22,255	1.5
2.2			1.5
3,516	3,394	3.6	10,180	10,089	0.9
40.4	39.0		38.2	39.0
4.0			1.3
1,777	1,669	6.4	4,984	4,984	0.0
1,764	1,647	7.1	4,837	4,886	-1.0
577	773	-25.4	2,312	2,410	-4.1
8,514	7,746	9.9	8,514	7,746	9.9
3,972	3,166	25.5	3,972	3,166	25.5
347	459	-24.2	347	459	-24.2
1,379	1,359	1.5	1,379	1,359	1.5
1,017	964	5.5	1,017	964	5.5
4,102	4,139	-0.9	4,102	4,139	-0.9

1) Restated, see Note 1.

Revenue increased 0.1% to SEK 8,704 million (8,698) and like for like, revenue increased 0.1% as increased service revenue was largely offset by reduced sales of equipment.

Service revenue, like for like, increased 2.2% as mobile service revenue remained rather unchanged and fixed service revenue increased by 4.1%. The growth in fixed service revenue was mainly driven by Business solutions, Broadband and TV, which more than compensated for a continued decline for revenue from fixed telephony revenue.

Adjusted EBITDA increased 3.6% to SEK 3,516 million (3,394) and adjusted EBITDA margin increased to 40.4% (39.0). Adjusted EBITDA like for like increased 4.0% mainly driven by the service revenue growth as well as around SEK 50 million in positive operational exchange rate effects.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 25.4% to SEK 577 million (773).

Mobile subscriptions grew by ~140,000 in the quarter driven by an addition of ~123,000 postpaid subscriptions used for machine-to- machine related services. TV subscriptions increased by ~13,000 and fixed broadband subscriptions decreased by ~1,000 in the quarter.

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Telia Company Interim report January - September 2023	Q3

Finland

• The mobile network modernization and 5G roll-out continued at pace and in the quarter 5G population coverage reached 90%.
• At the beginning of the summer Telia Finland won another quality category in the Open Signal benchmark and according a survey conducted by Ipsos Telia is now on par with the market leader in terms of network perception.

• Telia performed field tests with Nokia and MediaTek around 5G Reduced Capability technology. The technology is the latest IoT 5G technology and helps customers to utilize IoT solutions more comprehensively and more efficiently.
• The work to close down Telia's 3G network was initiated in the quarter, and a more extensive program to close 3G in larger areas such as Satakunta and Western Uusimaa is estimated to start early 2024.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%

Revenue1

Change (%) like for like

of which service revenue (external) change (%) like for like

Adjusted EBITDA

Margin (%)

change (%) like for like Adjusted operating income Operating income

CAPEX excluding fees for licenses, spectrum and right-of-use assets

Subscriptions, (thousands) Mobile1

of which machine-to-machine (postpaid) Fixed telephony

Broadband1

TV

Employees1

4,144	3,719	11.4	12,235	10,993	11.3
0.9			2.4
3,549	3,155	12.5	10,394	9,364	11.0
1.9			2.1
1,392	1,140	22.1	3,847	3,380	13.8
33.6	30.6		31.4	30.7
10.3			4.7
470	263	78.4	1,159	754	53.7
453	240	88.7	988	670	47.5
356	376	-5.4	1,134	1,122	1.0
3,117	3,149	-1.0	3,117	3,149	-1.0
425	354	20.0	425	354	20.0
13	15	-13.6	13	15	-13.6
610	585	4.3	610	585	4.3
689	672	2.5	689	672	2.5
2,543	2,742	-7.3	2,543	2,742	-7.3

1) Restated, see Note 1.

Revenue increased 11.4% to SEK 4,144 million (3,719) and like for like, revenue increased 0.9% as increased service revenue more than compensated for reduced sales of equipment. The effect of exchange rate fluctuations was positive by 10.7%.

Service revenue, like for like, increased 1.9% as predominately mobile service revenue increased by 2.9% and to some extent also benefited from a 1.1% increase for fixed service revenue driven mainly by Business solutions and TV.

Adjusted EBITDA increased 22.1% to SEK 1,392 million (1,140) and adjusted EBITDA margin increased to 33.6% (30.6). Adjusted EBITDA, like for like, increased 10.3% from the growth in service revenue, coupled with lower operational expenses mainly related to resources and energy.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 5.4% to SEK 356 million (376).

Mobile subscriptions increased in the quarter by ~27,000 driven by an addition of ~27,000 postpaid subscriptions used for machine-to- machine related services. TV subscriptions increased by ~11,000 and fixed broadband subscriptions increased by ~3,000 in the quarter.

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