RESULTS FOR THE 3 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 2,300 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 Customer Service LT, AB	100 0/2
VšĮ Numerio Perkėlimas	50) 0/2
UAB Mobilieji Mokėjimai	33.3%

Telia Lietuva provides integrated mobile and fixed communication and IT services
Telia Customer Service LT remotely takes care of Telia Lietuva customers and provides Directory Inquiry services 118
It is planned to merge Telia Customer Service LT into Telia Lietuva in 2020
Numerio Perkėlimas administers the central database to ensure telephone number portability in Lithuania (Tele2 and Bitė Lietuva owns 25% each)
Mobilieji Mokėjimai, that operates an instant payment platform MoQ, by decision of shareholders (Tele2 and Bitė Lietuva owns 33.3% each) will cease its operations from 18 May 2020

QUARANTINE IMPACT ON OUR ACTIVITIES

All customer care shops are closed since 16 March 2020
All customers are served by phone or online
Equipment sales only via online shop
Majority of employees (incl. Call Centers) work remotely from home, field engineers work following strict safety requirements
Increased traffic volumes: mobile voice up by 70%, international Internet – by 40%, mobile data – by 15%
Increased demand for faster connectivity, VPN solutions, m-signature and premium TV content
Increased sales of PCs and TV sets, declined sales of handsets

OTHER EVENTS DURING Q1 2020

From 1 January 2020, Telia Lietuva embraced the New Operating Model of Telia Company Group
In January, Telia Lietuva was the first to introduce the narrowband Internet of Things (NB IoT) technology
New Collective Bargaining Agreement between the Company and Trade Unions was signed in January
Telia was awarded as the Friendliest Workplace during the National Responsible Business Awards
Shareholders of Mobilieji Mokėjimai decided to cease provision of payment services from 18 May 2020
The Board of Telia Lietuva proposed to pay EUR 0.09 dividend per share for the year 2019
AGM of shareholders by voting in advance will be held on 28 April 2020

NUMBER OF CUSTOMERS

Wi-Fi) connections

in service

NUMBER OF EMPLOYEES

ELECTRONIC COMMUNICATIONS MARKET OF LITHUANIA

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

2.9%

BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q4 2019 (%)

TELIA LIETUVA MARKET SHARES IN TERMS OF REVENUE (%)

MARKET: THE FASTEST GROWTH IN USAGE OF DATA

Increasing usage of mobile data

(uploaded/downloaded 138,219 million MB of data per quarter)

Growing number of FTTH/B connections

(accounts for 75.3% of all fixed Internet connections)

Growing number of IPTV users

(accounts for 41.8% of all pay-TV service users)

MARKET PENETRATION

132.6

mobile communications subscribers (per 100 inhabitants)

26.8 fixed telephony lines

(per 100 households)

50.9

broadband Internet access (per 100 inhabitants)

51.7

pay-TV subscribers (per 100 households)

OPERATING AND FINANCIAL RESULTS

NUMBER OF IPTV AND BROADBAND INTERNET USERS

31-03-2019 30-06-2019 30-09-2019 31-12-2019 31-03-2020 IPTV +5.1%

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)

REVENUE, EBITDA & NET PROFIT (EUR million)

DYNAMICS OF MAIN FINANCIAL INDICATORS (EUR million)

3 MONTHS OF 2020 REVENUE BREAKDOWN

14%

REVENUE BY SERVICES (EUR million)

OPERATING EXPENSES (EUR million)

During January-March 2020, total assets decreased by 1,1%
Non-current assets amounted to 75.2% of total assets (31-03-2020)
Cash alone amounted to 9.1%
Return on capital employed: 13.7%
Return on average assets: 10.1%

EQUITY AND LIABILITIES (EUR million)

During Q1 2020 shareholders' equity increased by 3.8% and amounted to 56.1% of the total assets (31-03-2020)
Total borrowings (31-03-2020) amounted to EUR 126.3 million: EUR 90 million – bank loans, EUR 34.2 million – vendor financing and EUR 2.1 – financial lease.
Gearing ration: 20.9%
Debt to equity: 37.1%

CASH FLOW & NET DEBT (EUR million)

CAPEX & CAPEX BREAKDOWN FOR Q1 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 Parent company
As of 31 December 2019, retained earnings of the Parent company amounted to EUR 140.1 million
The Board proposed to the Annual General Meeting of Shareholders to be held on 28 April 2020 to pay-out EUR 0.09 dividend per share for the year 2019

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 almost 11 thousand

Shareholders as of 31-03-2020

	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-March 2020: 2.5 million of shares or EUR 3.2 million
Share price on Nasdaq Vilnius:

	EUR
01-01-2020	1.275
High	1.365
Low	1.135
31-03-2020	1.230

Market capitalization (EUR million)

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

THE COMPANY SHARE PRICE AND NASDAQ VILNIUS INDEXES COMPARISON

INDEX EQUITY	OPENING VALUE	CLOSING VALUE	CHANGE %
OMX Baltic Benchmark Gl	992.83	777.91	-21.65
OMX Vilnius	712.14	604.56	-15.11
TEL1L - Telia Lietuva	1.27	1.23	-3.53

CORPORATE GOVERNANCE

GOVERNING BODIES

The Annual General Meeting of Shareholders will be held on 28 April 2020
The Board consist of 6 members elected for the 2 year term
The Board for a new 2 year term was re-elected in 2019
3 members of the Board comprise Audit and Remuneration Committees
UAB Deloitte Lietuva was the Company's independent auditor for the year 2018 and 2019.
The Board elects and recalls CEO
New Digitization & Analytics unit was established from 1 January 2020

BOARD

Emil Nilsson (born in 1971), Chair of the Board, represents Telia Company AB, Chair 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, Member 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