Interim results

12 months of 2022

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

innovate
lead
speak-up

our customers
each other
our world

We dare to: We care for: We simplify:

execution
teamwork
our operations

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 Q4 2022

#1 Leading 5G deployment in Lithuania with more than 3 thousand officially by CRA measured 5G points all over the country	#2 3G communication network was shut down and 3G frequencies will be used for 4G/5G and IoT development	#3 The Company's international Internet connections' bandwidth expanded up to 1 Tbps	#4 Telia Lietuva recognized the best in serving customers by phone and at customer care centers
#5 Record high revenue for Q4 2022 with double digit growth in revenue from IT and billed mobile services	#6 Costs were under control and despite high electricity prices resulted in good profitability for Q4 2022	#7 The first shipment of used mobile base stations' equipment and prolonged reduced tariffs for mobile communication with Ukraine	#8 During 2022, share price decreased by 2.7 per cent but 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 Q3 2022 (%)

Telia Lietuva market shares in terms of revenue for Q3 2022 (%)

Market: growing usage of mobile data

+23.2% (y-o-y)

Increasing usage of mobile data

(uploaded / downloaded 285,908 TB of data per quarter)

+2.5% (y-o-y)

Growing number of FTTH/B connections

(accounts for 78.8% of all fixed Internet connections)

+3.7% (y-o-y)

Growing number of IPTV users

(accounts for 51% 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

Mobile communication users (thousand)

Number of fixed telephone lines (thousand)

Number of telephone lines

Number of IPTV and broadband Internet users

Revenue, EBITDA & Net profit (mEur)

Dynamics of main financial indicators (mEur)

NOTE. Non-recurring items for 12 months of 2022 were comprised from one-off redundancy pay-outs of EUR 513 thousand (EUR 858 thousand a year ago), non-recurring other expenses of EUR 904 thousand (EUR 943 thousand) and gain of EUR 817 thousand (EUR 1.3 million) from sale of property.

Revenue breakdown for 12 months of 2022

14%

Revenue by services (mEur)

Operating expenses (mEur)

NOTE. Non-recurring items for 12 months of 2022 were comprised from one-off redundancy pay-outs of EUR 513 thousand (EUR 858 thousand a year ago), nonrecurring other expenses of EUR 904 thousand (EUR 943 thousand)

Number of employees

Assets (mEur)

Non-current assets amounted to 83.7% of total assets as of 31 December 2022 (75.3% a year ago)
Cash alone amounted to 1.2% (9.6%)
Return on capital employed: 14% (13.4%)
Return on average assets: 10.2% (9.9%)
Current ratio: 62% (77.7%)

Equity and liabilities (mEur)

As on 31 December 2022, shareholders' equity amounted to 53.7% of the total assets (51.5% a year ago)
Total borrowings (31-12-2022) amounted to EUR 113.5 million: EUR 30 million – bank loan and EUR 83.5 million – vendor financing
On 26 May 2022, the Company paid-out EUR 58.3 million of dividends (EUR 0.10 per share) for the year 2021
Debt to equity: 34.6% (46.7%)
Return on equity: 17.6% (17.6%)
Net debt to EBITDA: 0.72 (0.67)

Cash flow & Net debt (mEur)

CAPEX & CAPEX breakdown for 12 month of 2022 (mEur)

Dividends

NOTE. Financial data for the years 2017-2020 is consolidated, for the year 2021 – standalone

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 28 April 2022 , the Annual General Meeting of shareholders approved pay-out of EUR 58.3 million (EUR 0.10 per share) of dividends for the year 2021
As on 31 December 2022, the retained earnings amounted to EUR 142.3 million

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
On 24 October 2014, authorized capital was reduced by EUR 56.2 million and accordingly number of voting shares was reduced from 776,817,518 to 582,613,138
The total number of Telia Lietuva shareholders is 14.3 thousand

Shareholders

as of 31-12-2022

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-December 2022: 5.9 million of shares or EUR 11.7 million
Share price on Nasdaq Vilnius:

01-01-2022	High	Low	31-12-2022
2.05 €	2.10 €	1.79 €	1.975 €

Trading in the Company's shares on Nasdaq Vilnius stock exchange in 2022

The company's share price and Nasdaq Vilnius indexes comparison

OMX Baltic Benchmark GI OMX Vilnius GI TEL1L - Telia Lietuva

	Opening value	Closing value	Change %
OMX Baltic Benchmark GI	1,568.82	1,384.42	-11.75
OMX Vilnius GI	966.13	947.14	-1.97
TEL1L – Telia Lietuva	2.04	1.975	-2.7

P/E ratio: 20.4 (20.9 a year ago)

Corporate governance

Governing bodies

The Annual General Meeting of Shareholders was held on 28 April 2022
The Board consist of 6 members elected for the 2-year term. The current term of the Board ends on 27 April 2023
3 members of the Board comprise Audit and Remuneration Committees
Douglas Lubbe, Chair of the Board, has resigned from the Board from 14 October 2022.
Dovilė Grigienė, an independent member of the Board, has resigned on 15 December 2022
In October 2022, Claes Nycander was elected as new Chair of the Board and Hannu-Matti Mäkinen as new Chair of the Remuneration Committee
UAB Deloitte Lietuva is the Company's audit enterprise for 2021 & 2022
The Board elects and recalls CEO