Telia Lietuva

Investor Presentation • Apr 25, 2024

Interim results

3 months of 2024

Telia Lietuva, AB

Telia Lietuva provides telecommunication, IT & TV services in Lithuania from a single point

Telia Lietuva means

Wide range of services

The most developed networks

Modern data centres

Everything from a single point

Telia Lietuva means

Customer care 24/7/365

Quality of operations' management confirmed by ISO certificates

Team of 2,000 professionals

Sustainable and responsible business

We are part of international group

Our purpose

We reinvent better connected living

Our values

We Dare

Speed up Make the right decisions fast

Make it happen Enable everyone to make better happen

Radical honesty Call things out even when it´s difficult Look out for each other Treat everyone with respect

Walk in our customers' shoes Make customer experience your obsession

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Celebrate the good stuff Be generous with your praise Less is more Do what matters most

One team Align goals and prioritize

1% a day Make small improvements every day

Telia Lietuva has an associate

50% VšĮ Numerio Perkėlimas

— Telia Lietuva provides integrated mobile and fixed communication and IT services

— Numerio Perkėlimas administers the central database to ensure telephone number portability in Lithuania (Tele2 and Bitė Lietuva owns 25% each)

Highlights of Q1 2024

#1 Service revenue increased by 4.6% fueled by continuous double digit growth from billed mobile & IT services	#2 Adjusted EBITDA margin increase by 1.6 p.p. to 36.9% & net profit is up by 11.8%	#3 Telia Lietuva's 5G network covers 93- 95% of Lithuania's territory (CRA data)	#4 Launched new pre-paid service Ežys and My Telia (for post-paid service) apps
#5 Completed upgrade of fiber optic backbone network (DWDM) & achieved 800 Gbps data speed between Vilnius and Kaunas	#6 Telia Lietuva is the first in Baltics to provide "Oracle Database as a Service" to B2B customers	#7 The Board proposed to pay-out EUR 0.09 dividend per share for the year 2023	#8 According to Sustainable Brand Index (STI) research Telia Lietuva is the most sustainable operator in Lithuania

Number of customers

Telecommunications market of Lithuania

Internet drives telco market growth (mEur)

Breakdown of the telecommunications market revenue by operators for Q4 2023 (%)

Telia Lietuva market shares in terms of revenue for Q4 2023 (%)

Market: growing usage of mobile data

+21.7% (y-o-y)

Growing usage of mobile data

(uploaded / downloaded 391,071 TB of data per quarter)

+0.5% (y-o-y)

Increased number of FTTH/B connections

(accounts for 79.9% of all fixed Internet connections)

+2.1% (y-o-y)

Increased number of IPTV users

(accounts for 54.1% of all pay-TV service users)

Source: Report of the Communications Regulatory Authority ¹⁵

Market penetration

Operating and financial results

Number of mobile and broadband service users

Mobile communication users (thousands)

Broadband Internet connections (thousands)

Number of TV and fixed voice service users

TV service users (thousands)

Fixed telephone lines (thousands)

Revenue & Earnings (mEUR)

Revenue EBITDA & Net profit

Dynamics of main financial indicators (mEur)

NOTE. Non-recurring items for 3 months of 2024 were comprised of one-off redundancy pay-outs of EUR 297 thousand (2023: EUR 313 thousand), other nonrecurring expenses EUR 405 thousand (2023: EUR 426 thousand) and gain of EUR 140 thousand (loss of EUR 132 thousand) from sale of property.

Revenue breakdown for 3 months of 2024

Revenue by services (mEur)

Operating expenses (mEur)

excl. non-recurring expenses

non-recurring expenses

NOTE. Non-recurring items for 3 months of 2024 were comprised of one-off redundancy pay-outs of EUR 297 thousand (2023: EUR 313 thousand) and other non-recurring expenses EUR 405 thousand (2023: EUR 426 thousand)

Number of employees

Cash flow & Net debt (mEur)

Cash flow Net debt & Gearing ration

CAPEX & its breakdown for 3 months of 2024 (mEur)

Dividends

• The revised Company's dividend policy provides that the Company must maintain the net debt to EBITDA ratio not higher than 1.5 and to pay out not more than 80% of free cash flow and not more than 100% of net profit as dividend
• Earnings and dividends are allocated to 582,613,138 shares
• The Board to the Annual General Meeting of shareholders to be held on 26 April 2024 to approved pay-out of EUR 52.4 million (EUR 0.09 per share) of dividends for the year 2023

NOTE. Financial data for the years 2019-2020 is consolidated, for the year 2021-2023 – standalone

Shares and shareholders

Shareholders

• Telia Company AB (Sweden) is the largest shareholder of Telia Lietuva, AB
• The Company's share capital consist of 582,613,138 ordinary registered shares of EUR 0.29 nominal value each
• The total number of Telia Lietuva shareholders is 14.9 thousand

Shareholders

as of 31-03-2024

Telia Company AB Other

88.15% 11.85%

Part of shares and votes

Shares

• Since June 2000, the Company's shares are listed on Nasdaq Vilnius stock exchange (ticker: TEL1L)
• Since January 2011, the Company's shares were included into the trading lists of a few German stock exchanges (ticker: ZWS)
• Turnover on Nasdaq Vilnius stock exchange during January-March 2024: 0.9 million of shares or EUR 1.5 million
• Share price on Nasdaq Vilnius:

01-01-2024	High	Low	31-03-2024
1.66 €	1.735 €	1.65 €	1.675€

Market capitalization (mEur)

Trading in the Company's shares on Nasdaq Vilnius stock exchange in 2024

The company's share price and Nasdaq Vilnius indexes comparison

	Opening value	Closing value	Change %
OMX Baltic Benchmark GI	1,442.41	1,441.36	-0.07
OMX Vilnius GI	948.85	946.76	+0.22
TEL1L – Telia Lietuva	1.67	1.68	+0.6

P/E ratio: 14.9 (19.5 a year ago)

Source: Nasdaq Vilnius

Corporate governance

Governing bodies

• The Annual General Meeting of Shareholders will be held on 26 April 2024
• The Company's Board consist of 6 members: 4 representing Telia Company and 2 are independent
• 3 members of the Board comprise Audit and Remuneration Committees
• The current term of the Board ends on 27 April 2025
• Dan Strömberg, Chair of Board, resigns from the Board as of 25 April 2024
• Telia Company proposed to elect Stefan Backman, Group General Counsel at Telia Company, to the Board
• UAB Deloitte Lietuva was the Company's audit enterprise for the year 2023
• The Board proposed to elect KPMG Baltics, UAB as the Company's audit enterprise for 2024 and 2025
• The Board elects and recalls CEO

Board

Dan

Chair of the Board, represents Telia Company AB till 25 April 2024

Strömberg

Member of the Board,

Chair of the Remuneration committee, represents Telia Company AB

Wallmark Member of the Board, Chair of the Audit

Agneta

Committee, represents Telia Company AB

Hannu-Matti Mäkinen

Member of the Board, member of the Remuneration Committee, represents Telia Company AB

Leda Iržikevičienė

Independent member of the Board, member of the Audit Committee

Mindaugas Glodas

Independent member of the Board, member of the Audit and Remuneration Committees

Members of the Board do not own direct shares of Telia Lietuva

Governing structure of Telia Lietuva valid from 1 January 2024

Management team

Giedrė Kaminskaitė-Salters, CEO

Elina Dapkevičienė, Head of Consumer

Daniel Karpovič, Head of Enterprise

Lina Bandzinė, Head of Sales & Customer Care

Andrius Šemeškevičius, Head of Technology

Diana Gold, Head of Digital & Analytics

Daina Večkytė, Head of Finance

Ramūnas Bagdonas, Head of People & Engagement

Daiva Kasperavičienė, Head of Legal & Corporate Affairs

Vaida Jurkonienė, Head of Marketing & Communication

Vytautas Bučinskas, Head of Business Assurance & Transformation

Business sustainability

How we understand sustainability?

Sustainability overview: year 2023

Environment

Net Zero targets approved. Telia Company's targets set with the overall aim of achieving net-zero greenhouse gas emissions across its value chain by 2040.

Suppliers responsible for 52% of emissions from purchased goods and services and capital goods have set science-based environmental targets.

Signed long term contracts with green energy providers.

115 electric cars are already in use, with more than 100 charging stations constructed.

The percentage of re-used CPE equipment parts from all rental and sale equipment exceeded 20%.

Digital skills development initiatives for children and youth, small and medium-sized enterprises, etc. have reached around 32,000 people in Lithuania.

Telia Company was ranked 12th out of 200 global companies, and 4th among companies in Europe in Digital Inclusion Benchmark.

In 2023, Telia Lietuva collaborated with accessibility experts to conduct a comprehensive accessibility audit in both its physical and online stores, with a specific focus on visual disability.

Digital inclusion Privacy & Security

Telia Lietuva provided communication and IT services during NATO Summit in Vilnius

In 2023, Telia introduced a new information and expertise platform known as the 'Telia Centre of Digital Progress.' It encompasses the following categories: digital inclusion, data protection and privacy, children's safety on the Internet, cybersecurity, and artificial intelligence

Preparation for NIS2 directive compliance was initiated.

Telia Lietuva participated in cybersecurity training organized by National Cybersecurity Center and phishing simulation exercise Phishex 2023.

DEI (diversity, equity and inclusion) highlights

Continues learning about disabilities through various events, participating in different team hours, spreading the knowledge from neurodiversity to physical and visual impairments.

Basic computer knowledge skills for disabled people

12 people with disabilities finished the course of "Main skills needed at work" delivered by 6 Telia Lietuva employees/volunteers

Launch of new training on disability etiquette mandatory to FO employees of Telia Lietuva 439 employees already conducted the training

Focus on visual impairment during Christmas campaign:

• Supporting audio sensory library ELVIS
• Inviting new volunteers for BeMyEyes app (after the campaign increase in number of volunteers by 3 times)
• Recorded 10 children's books for audio sensory library
• Recorded all Harry Potter movies with audio description which are now available in Telia Play movie library

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Thank you

Telia Lietuva, AB