RESULTS FOR THE 12 MONTHS OF 2020

Telia Lietuva, AB Group

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 2,100 professionals

Sustainable and responsible business

WE ARE PART OF TELIA COMPANY GROUP

OUR PURPOSE: BRINGING THE WORLD CLOSER

innovate
lead
speak-up

We dare to: We care for: We simplify:

our customers
each other
our world
execution
teamwork
our operations

TELIA LIETUVA GROUP

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
On 18 June 2020, the Company and other two shareholders (Tele2 and Bitė Lietuva) disposed their 33.3 per cent stakes in UAB Mobilieji Mokėjimai, a provider of mobile payment till 18 May 2020 under the brand MoQ

HIGHLIGTS OF Q4 2020

Partnership with Ericsson for upgrade of existing mobile network and 5G rollout
5G network launch for non-commercial use in 3 largest cities of Lithuania
Second lockdown due to Covid-19 pandemic is imposed since November
Our retail outlets remain opened for provision of only vital services
Market capitalization exceeded EUR 1 billion
Douglas Lubbe stepped in as a new Chair of the Board
The Company's constant improvements were recognized with Corporate Excellence Award 2020 among the Baltic listed companies

NUMBER OF CUSTOMERS

IPTV service users

mobile service users

broadband Internet (excl. Wi-Fi) connections

fixed telephone lines in service

NUMBER OF EMPLOYEES

ELECTRONIC COMMUNICATIONS MARKET OF LITHUANIA

INTERNET & PAY TV DRIVE TELCO MARKET GROWTH (EUR million)

BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q3 2020 (%)

TELIA LIETUVA MARKET SHARES IN TERMS OF REVENUE (%)

MARKET: THE FASTEST GROWTH IN USAGE OF DATA

Increasing usage of mobile data

(uploaded/downloaded 178,478 million MB of data per quarter)

Growing number of FTTH/B connections

(accounts for 75.8% of all fixed Internet connections)

Growing number of IPTV users

(accounts for 44.4% of all pay-TV service users)

MARKET PENETRATION

132.7

mobile communications subscribers (per 100 inhabitants)

24.5 fixed telephony lines

(per 100 households)

52.8

broadband Internet access (per 100 inhabitants)

pay-TV subscribers (per 100 households)

51.7

OPERATING AND FINANCIAL RESULTS

NUMBER OF IPTV AND BROADBAND INTERNET USERS

²⁵³ 31-12-2019 31-03-2020 30-06-2020 30-09-2020 31-12-2020 IPTV +3.7%

Number of TV service users (thousands)

Number of broadband Internet users (thousands)

NUMBER OF MOBILE AND FIXED VOICE SERVICE USERS

Mobile communication users (thousands)

Number of fixed telephone lines (thousands)

261 31-12-2019 31-03-2020 30-06-2020 30-09-2020 31-12-2020 Number of telephone lines -11.8% +3,4 %

REVENUE, EBITDA & NET PROFIT (EUR million)

DYNAMICS OF MAIN FINANCIAL INDICATORS (EUR million)

12 MONTHS OF 2020 REVENUE BREAKDOWN

14%

OPERATING EXPENSES (EUR million)

During January-December 2020, total assets decreased by 0.9%
Non-current assets amounted to 76.2% of total assets (31-12-2020)
Cash alone amounted to 9.2%
Return on capital employed: 14.7%
Return on average assets: 10.8%

EQUITY AND LIABILITIES (EUR million)

During 12 months of 2020 shareholders' equity increased by 1% due dividend payout and amounted to 54.5% of the total assets (31-12-2020)
Total borrowings (31-12-2020) amounted to EUR 123.1 million: EUR 67.5 million – bank loans, EUR 52.4 million – vendor financing and EUR 3.2 – financial lease.
Gearing ratio: 20.3%
Debt to equity: 37.1%

CASH FLOW & NET DEBT (EUR million)

CAPEX & CAPEX BREAKDOWN FOR 12 MONTHS OF 2020 (EUR million)

DIVIDENDS

Consolidated earnings per share (EUR) Dividend per share (EUR)

Earnings and dividends are allocated to 582,613,138 shares
The Board set a target to maintain the Company's net debt to EBITDA ratio not higher than 1.5 and to pay 80 per cent of free cash flow as dividend
According to the Law, dividends should be paid from retained earnings of the Company
As of 31 December 2020, retained earnings of the Company amounted to EUR 145.7 million
The Annual General Meeting of Shareholders that shall decide on allocation of profit for the year 2020 is planned to be held on 27 April 2021

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 11.7 thousand

Shareholders as of 31-12-2020

	Part of shares and votes
Telia Company AB	88.15%
Other	11.85%

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 2020: 7.6 million of shares or EUR 10.8 million
Share price on Nasdaq Vilnius:

	EUR
01-01-2020	1.275
High	1.840
Low	1.135
31-12-2020	1.825

TRADING IN THE COMPANY'S SHARES ON NASDAQ VILNIUS STOCK EXCHANGE IN 2020

THE COMPANY'S SHARE PRICE AND NASDAQ VILNIUS INDEXES COMPARISON

INDEX EQUITY	OPENING VALUE	CLOSING VALUE	CHANGE %
OMX_Baltic_Benchmark_Gl	992.83	1,104.74	+11.27
OMX Vilnius_Gl	712.14	816.64	+14.67
TEL1L - Telia Lietuva	1.27	1.82	+43.14

Source: Nasdaq Vilnius

CORPORATE GOVERNANCE

GOVERNING BODIES

In 2020, the Annual General Meeting of Shareholders was held on 28 April 2020 & the Extraordinary General Meeting was held on 23 November 2020
The Board consist of 6 members elected for the 2 year term
The Board for a 2 years' term was elected in 2019
Emil Nilsson, Chair of the Board, resigned from the Board as of 21 October 2020
Douglas Lubbe, a new member of the Board and a new Chair of the Board, was elected in November 2020
3 members of the Board comprise Audit and Remuneration Committees
UAB Deloitte Lietuva was elected the Company's independent auditor for the year 2020
The Board elects and recalls CEO

BOARD

Douglas Lubbe (born in 1972), Chair of the Board, represents Telia Company AB, member of the Remuneration Committee

Hannu-Matti Mäkinen (born in 1970), Member of the Board, represents Telia Company AB

Agneta Wallmark (born in 1960), Member of the Board, represents Telia Company AB, Chair of the Audit Committee

Tomas Balžekas (born in 1977), Independent member of the Board, Member of the Audit Committee

Claes Nycander (born in 1963), Member of the Board, represents Telia Company AB, Chair of the Remuneration Committee

Mindaugas Glodas (born in 1972), Independent member of the Board, Member of the Audit and Remuneration Committees

• Members of the Board have no direct interest in the share capital of Telia Lietuva

GOVERNING STRUCTURE OF TELIA LIETUVA VALID FROM 1 JANUARY 2020

CEO
	Consumer
	Enterprise
	Digitalization & Analytics
	Sales & Customer Care
	Technology Infrastructure
	Finance
	People & Engagement
	Legal & Corporate Affairs
	Communication
	Business Assurance & Transformation