Annual audited results

For the year 2021

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

Team of 2,100 professionals

Sustainable and responsible business

WE ARE PART OF INTERNATIONAL GROUP

OUR PURPOSE: WE REINVENT BETTER CONNECTED LIVING

OUR VALUES

innovate
lead
speak-up

We dare to: We care for: We simplify:

our customers
each other
our world
execution
teamwork
our operations

TELIA LIETUVA has an associate

TELIA LIETUVA, AB

VšĮ Numerio Perkėlimas 50%

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)
Telia Customer Service LT, a Contact Centre that remotely served customers of Telia Lietuva and provided Directory Inquiry services 118, on 1 July 2020 was merged into Telia Lietuva

HIGHLIGHTS OF 2021

#1 Record high revenue and EBITDA. Double digit growth in revenue from IT and broadband Internet services.	#2 Continued convergence journey: 80.5 thousand of households are users of converged offer Telia1	#3 Radio access network upgrade project that started in 2021 led to surge in CAPEX: it was 1.7 times higher than in 2020	#4 Kick-off of mobile network upgrade: more than 450 base stations replaced with Ericsson equipment
#5 Completed upgrade of 2 major data centers and acquired a land lot for construction of a new data center	#6 Finished customer care outlets renovation project: over 2 years 30 retail outlets were upgraded	#7 Internet speed record: mobile data download speed of 104.5 Mbps was reached at the year end (85.1 Mbps in 2020)	#8 During 2021 share price went up by 11.8% and throughout the year market capitalisation was above EUR 1 billion

NUMBER OF CUSTOMERS

1,518 thousand thousand thousand thousand

of mobile service users

421

of broadband Internet connections

of IPTV service users

230

of fixed telephone lines in service

telecommunications market of Lithuania

-

INTERNET DRIVES TELCO MARKET GROWTH (MEUR)

BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q4 2021 (%)

TELIA LIETUVA MARKET SHARES IN TERMS OF REVENUE FOR Q4 2021 (%)

MARKET: GROWING USAGE OF MOBILE DATA

Increasing usage of mobile data

(uploaded/downloaded 250,515 TB of data per quarter)

Growing number of FTTH/B connections

(accounts for 77.9% of all fixed Internet connections)

Growing number of IPTV users

(accounts for 47.8% of all pay-TV service users)

MARKET PENETRATION

mobile communications subscribers

(per 100 inhabitants)

(per 100 households)

fixed telephony lines

broadband Internet access

(per 100 inhabitants)

pay-TV subscribers

(per 100 households)

Source: Report of the Communications Regulatory Authority

OPERATING AND FINANCIAL RESULTS

NUMBER OF MOBILE AND FIXED VOICE SERVICE USERS

NUMBER OF IPTV AND BROADBAND INTERNET USERS

Number of TV service users (thousand)

Number of broadband Internet users (thousand)

REVENUE, EBITDA & NET PROFIT (MEUR)

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

DYNAMICS OF MAIN FINANCIAL INDICATORS (MEUR)

NOTES.

- Financial data for the year 2020 is consolidated, for the year 2021 – standalone

- During 2021, non-recurring redundancy charge amounted to EUR 858 thousand (EUR 1,321 thousand in 2020), other one-off expenses:

EUR 943 thousand and non-recurring gain on sale of property: EUR 1,337 thousand

BREAKDOWN OF REVENUE FOR THE YEAR 2021

14%

REVENUE BY SERVICES (MEUR)

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

OPERATING EXPENSES (meur)

NOTES:

- Financial data for the year 2020 is consolidated, for the year 2021 – standalone

- During 2021, non-recurring redundancy charge amounted to EUR 858 thousand (EUR 1,321 thousand in 2020),

other one-off expenses: EUR 943 thousand (none in 2020)

NUMBER OF EMPLOYEES

89.0 96.7 55.9 61.8 206.6 215.9 267.0 31-12-2020 31-12-2021 641.5 +5.4%

Other current assets
Cash and investments
Other non-current assets
Property, plant and equipment
Non-current assets amounted to 75.3% of total assets as of 31 December 2021 (76.2% a year ago)
Cash alone amounted to 9.6% (9.2%)
Return on capital employed: 13.4% (15.1%)
Return on average assets: 9.9% (11%)
Current ratio: 77.7% (110.2%)

EQUITY AND LIABILITIES (meur)

As of 31 December 2021, shareholders' equity amounted to 51.5% of the total assets (54.5% a year ago)
Total borrowings (31-12-2021) amounted to EUR 154.3 million: EUR 30 million – bank loan, EUR 123.7 million – vendor financing and EUR 0.6 – financial lease.
Gearing ratio: 28% (20.3%)
Debt to equity: 46.7% (37.1%)
Return on equity: 17.6% (17.4%)
Net debt to EBITDA: 0.67 (0.50)

CASH FLOW & NET DEBT (meur)

CAPEX & CAPEX BREAKDOWN FOR the year 2021 (meur)

DIVIDENDS

Dividend payout ratio:

2021: 102% 2020: 104%

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
As of 31 December 2021, retained earnings of the Company amounted to EUR 144.2 million or EUR 0.25 per share
The Board proposed to pay EUR 58.3 million of dividends (EUR 0.10 per share) for the year 2021
On 28 April 2022 AGM shall approve allocation of the profit for the year 2021

SHARE PRICE

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 12.6 thousand

SHAREHOLDERS

as of 31-12-2021

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 2021: 8.6 million of shares or EUR 17.5 million
Share price on Nasdaq Vilnius: