Telia Lietuva

Investor Presentation • Oct 19, 2023

Interim results

9 months of 2023

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 Q3 2023

#1 Strong revenue & earnings growth	#2 Continuous double-digit growth in revenue from billed mobile & IT services	#3 Telia Lietuva was providing connectivity services during NATO summit in Vilnius	#4 Every fourth device operating in the Company's network supports 5G connectivity
#5 Voice over Wi-Fi service became available to iPhone holders	#6 Signed contracts with ESO for SMS sending service & with Lietuvos Draudimas & PZU Life Insurance for IT systems maintenance	#7 The Company intends to renounce and return the electronic money institution license issued by the Bank of Lithuania	#8 Telia Lietuva continues to provide calls to/from Ukraine at reduced tariffs

Number of customers

Telecommunications market of Lithuania

Internet drives telco market growth (mEur)

Breakdown of the telecommunications market revenue by operators for Q2 2023 (%)

Telia Lietuva market shares in terms of revenue for Q2 2023 (%)

Market: growing usage of mobile data

+21.3% (y-o-y)

Growing usage of mobile data

(uploaded / downloaded 324,054 TB of data per quarter)

+1.0% (y-o-y)

Increased number of FTTH/B connections

(accounts for 79.2% of all fixed Internet connections)

+0.5% (y-o-y)

Increased number of IPTV users

(accounts for 52.6% of all pay-TV service users)

Market penetration

Source: Report of the Communications Regulatory Authority ¹⁶

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, EBITDA & Net profit (mEur)

Dynamics of main financial indicators (mEur)

NOTE. Non-recurring items for 9 months of 2023 were comprised of one-off redundancy pay-outs of EUR 874 thousand (2022: EUR 428 thousand), nonrecurring other expenses of EUR 1,465 thousand (EUR 219 thousand) and gain of EUR 123 thousand (EUR 305 thousand) from sale of property.

Confidential

Revenue breakdown for 9 months of 2023

Confidential

Revenue by services (mEur)

Operating expenses (mEur)

NOTE. Non-recurring items for 9 months of 2023 were comprised of one-off redundancy pay-outs of EUR 874 thousand (2022: EUR 428 thousand), nonrecurring other expenses of EUR 1,465 thousand (EUR 219 thousand)

Number of employees

Cash flow & Net debt (mEur)

Cash flow Net debt & Gearing ration

CAPEX & its breakdown for 9 months of 2023 (mEur)

Dividends

• The 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 up to 80% of free cash flow as dividend
• Earnings and dividends are allocated to 582,613,138 shares
• On 27 April 2023, the Annual General Meeting of shareholders approved pay-out of EUR 35 million (EUR 0.06 per share) of dividends for the year 2022
• Dividends were paid on 25 May 2023

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 14.7 thousand

Shareholders

as of 30-09-2023

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-September 2023: 2.9 million of shares or EUR 5.4 million
• Share price on Nasdaq Vilnius:

01-01-2023	High	Low	30-09-2023
1.985 €	2.05 €	1.595 €	1.61€

Market capitalization (mEur)

Trading in the Company's shares on Nasdaq Vilnius stock exchange in 2023

The company's share price and Nasdaq Vilnius indexes comparison

	Opening value	Closing value	Change %
OMX Baltic Benchmark GI	1,384.42	1,467.6	+6.01
OMX Vilnius GI	947.14	942.23	-0.52
TEL1L – Telia Lietuva	1.985	1.61	-18.89

P/E ratio: 14.4 (19.7 a year ago)

Corporate governance

Governing bodies

• The Annual General Meeting of Shareholders was held on 27 April 2023
• AGM for a new 2-years' term till 27 April 2025 re-elected members of the Board
• The Company's Board consist of 6 members: 4 representing Telia Company and 2 are independent
• In June 2023, Dan Strömberg was re-elected as Chair of the Board
• 3 members of the Board comprise Audit and Remuneration Committees
• UAB Deloitte Lietuva is appointed the Company's audit enterprise for 2023 & 2024
• The Board elects and recalls CEO

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Board

Chair of the Board, represents Telia Company AB

Claes Nycander

Member of the Board, Chair of the Remuneration committee, represents Telia Company AB

Wallmark Member of the Board, Chair of the Audit Committee, represents Telia

Agneta

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 July 2022

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

Birutė Eimontaitė, Head of Communication till 31 October 2023

Vytautas Bučinskas, Head of Business Assurance & Transformation

Business sustainability

How we understand sustainability?

Sustainability highlights – 2023 Q3

Building awareness around cyber security and digitalization topics through Telia's Center of Digital Progress

Digital skills development initiatives: educational information packages for parents & caregivers on children safety online

Reduction of fossil fuel consumption by approx. 6% this year.

Diversity & inclusion: disability focus

• Internal events and survey for employees,
• Training programme created with external partner (SOPA) for a group of people with disabilities
• Investigation of accessibility of our website as well as retail store

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Telia Lietuva, AB | Tvarus verslas ⁴² Ambitious environmental goals

• —Ongoing focus on refurbished devices sales
• —Reduction of fossil fuel consumption by approx. 6% this year.
• —28% off all Telia Play new sales use OTT solution (without Set Top Box equipment)
• —48 of 115 electric cars already in use and 61 of 101 charging stations are already constructed . Plan for the year to have over 100 charging stations to be constructed for the new electric car fleet (115 new EV)
• Halve emission in our own operations
• —Reduce emissions related to the use of sold and leased products by 29%
• —Engage with suppliers, making sure that suppliers representing 72% of emissions have set science-based targets
• 84% of our own and network operations materials must be reused or recycled
• Climate-neutral value chain by 2030, by at least halving emissions and offsetting the rest (base year: 2018)
• —Reduce CO2 emissions in own operations (scope 1 and 2) by 90%
• Net Zero by 2040, aligned with the requirements of the new Science Based Target initiative (SBTi) Net-Zero Standard (approved externally in September 2023)

Thank you

Telia Lietuva, AB