Telia Lietuva

Interim / Quarterly Report • Jul 20, 2023

Interim results

6 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

7

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 Q2 2023

#1 Continuous double-digit growth in revenue from IT and billed mobile communication services	#2 Record high quarterly EBITDA	#3 Completed mobile network upgrade with Ericsson equipment	#4 Telia Lietuva 5G network covers 99% of the country's population
#5 The Company introduced a new Voice over Wi-Fi service	#6 Shareholders re elected the Board members and elected Deloitte Lietuva as the Company's auditors	#7 In May 2023, EUR 0.06 dividend per share (in total EUR 35 million) were paid for the year 2022	#8 During H1 2023, share price decreased by 4.5 per cent while market capitalisation remains above EUR 1 billion

Number of customers

Telecommunications market of Lithuania

Internet drives telco market growth (mEur)

Breakdown of the telecommunications market revenue by operators for Q1 2023 (%)

Telia Lietuva market shares in terms of revenue for Q1 2022 (%)

Market: growing usage of mobile data

+25.0% (y-o-y)

Increasing usage of mobile data

(uploaded / downloaded 336,329 TB of data per quarter)

+1.7% (y-o-y)

Growing number of FTTH/B connections

(accounts for 79.3% of all fixed Internet connections)

-0.3% (y-o-y)

Declined number of IPTV users

(accounts for 51.9% of all pay-TV service users)

Source: Report of the Communications Regulatory Authority ¹⁵

Market penetration

Operating and financial results

Number of mobile and fixed voice service users

Number of IPTV and broadband Internet users

Revenue, EBITDA & Net profit (mEur)

Dynamics of main financial indicators (mEur)

NOTE. Non-recurring items for the first half of 2023 were comprised of one-off redundancy pay-outs of EUR 547 thousand (2022: EUR 270 thousand), nonrecurring other expenses of EUR 992 thousand (EUR 133 thousand) and gain of EUR 32 thousand (EUR 542 thousand) from sale of property.

Revenue breakdown for 6 months of 2023

14%

Revenue by services (mEur)

Operating expenses (mEur)

NOTE. Non-recurring items for the first half of 2023 were comprised of one-off redundancy pay-outs of EUR 547 thousand (2022: EUR 270 thousand) and non-recurring other expenses of EUR 992 thousand (EUR 133 thousand)

Number of employees

Headcounts Full time employees (FTE)

Assets (mEur)

• Non-current assets amounted to 82.3% of total assets as of 30 June 2023 (78.8 % a year ago)
• Cash alone amounted to 1.4% (5.8%)
• Return on capital employed: 16.1% (13.3%)
• Return on average assets: 11.5% (9.9%)
• Current ratio: 54.7% (65.3%)

Equity and liabilities (mEur)

• As of 30 June 2023, shareholders' equity amounted to 53.2% of the total assets (49.2% a year ago)
• Total borrowings (30-06-2023) amounted to EUR 123.6 million: EUR 30 million – bank loan, EUR 65 million – loans from Telia Company and EUR 28.6 million – vendor financing.
• Debt to equity: 38% (51.1%)
• Return on equity: 18.9% (18.0%)
• Net debt to EBITDA: 0.74 (0.82)

Cash flow & Net debt (mEur)

CAPEX & its breakdown for 6 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 30-06-2023

Telia Company AB	Other
88.15%	11.85%

Part of shares and votes

• 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-June 2023: 1.5 million of shares or EUR 3.1 million
• Share price on Nasdaq Vilnius:

01-01-2023	High	Low	30-06-2023
1.985 €	2.05 €	1.885 €	1.895€

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	1,475.36	+6.57
OMX Vilnius GI	947.14	980.31	+3.5
TEL1L – Telia Lietuva	1.985	1.895	-4.53

P/E ratio: 17.8 (19.5 a year ago)

Source: Nasdaq Vilnius

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

Board

Dan Strömberg

Chair of the Board, represents Telia Company AB

Claes Nycander

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

Agneta Wallmark

Member of the Board, Chair of the Audit 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 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

Vytautas Bučinskas, Head of Business Assurance & Transformation

Business sustainability

How we understand sustainability?

Sustainability highlights - first half of 2023

In 2023, according to the Sustainable brand index report Lithuanian consumers have named

Telia as Lithuania's most sustainable telecoms brand

Solar panels installed in 20 additional mobile sites (project ongoing in 2023)

Digital skills development initiatives for children and youth, small and medium-sized enterprises, etc. this year have reached

around 59,000 people in Lithuania

Continuous support to Ukraine via our services and sponsorship

Telia Lietuva, AB | Tvarus verslas ⁴⁴ Ambitious environmental goals

• Ongoing focus on refurbished devices sales
• —20 solar panels installed in mobile sites as per plan and ongoing opportunities identification to spread the scale on other buildings
• —Implemented possibility to sign a contract online while ordering fixed equipment (by instalments) from online shop
• —13 electric cars delivered, and 3 charging stations

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 (External approval of target pending)

Thank you

Telia Lietuva, AB