RESULTS FOR THE 12 MONTHS OF 2019

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%
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 operates a platform for instant payments (Tele2 and Bitė Lietuva owns 33.3% each)

HIGHLIGHTS OF Q4 2019

Revenue for the second quarter in a row exceeded EUR 100 million
Number of converge offer Telia One users reached 60 thousand
In December, launched Telia Play, an IPTV service on the go: TV on any device, anytime and anywhere
First in Lithuanian telco industry chatbot employing artificial intelligence launched in November
The first of new concept Scandinavian style outlets were opened at the end of 2019
VoLTE calls became available to iPhone owners in Telia Lietuva network
Three-year equipment rental agreement of value of EUR 1.4 million was signed with Lithuanian Railways

OPERATING FIGURES

2.4%

6.1%

1,347

thousand of mobile service users*

Note. * In Q1 2019, the Company changed treatment of active users and took off 114 thousand subscriptions

thousand of broadband Internet (excl. Wi-Fi) connections

419

244

thousand of IPTV service users

thousand of fixed telephone lines in service

296

NUMBER OF EMPLOYEES

ELECTRONIC COMMUNICATIONS MARKET OF LITHUANIA

WE ARE OPERATING IN GROWING TELCO MARKET (EUR million)

BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q3 2019 (%)

TELIA LIETUVA MARKET SHARES IN TERMS OF REVENUE (%)

MARKET: THE FASTEST GROWTH IN USAGE OF DATA

mobile data

(uploaded/downloaded 125,129 million MB of data per quarter)

FTTH/B connections

(accounts for 74.9% of all fixed Internet connections)

IPTV users

(accounts for 41.1% of all pay-TV service users)

MARKET PENETRATION

mobile communications subscribers (per 100 inhabitants)

27.6 fixed telephony lines (per 100 households)

broadband Internet access (per 100 inhabitants)

pay-TV subscribers (per 100 households)

OPERATING AND FINANCIAL RESULTS

NUMBER OF IPTV AND BROADBAND INTERNET USERS

31-12-2018 31-03-2019 30-06-2019 30-09-2019 31-12-2019 IPTV +6.1%

Number of TV service users (thousands)

NUMBER OF MOBILE AND FIXED VOICE SERVICE USERS

**Mobile communication users* (thousands)**

Number of fixed telephone lines (thousands)

Note.* In Q1 2019 the Company changed treatment of active users and took off 114 thousand subscriptions

REVENUE, EBITDA & NET PROFIT (EUR million)

DYNAMICS OF MAIN FINANCIAL INDICATORS (EUR million)

NOTES:

* EBITDA, excl. non-recurring and impact of IFRS 16, fell 4.2%

12 MONTHS OF 2019 REVENUE BREAKDOWN

14%

REVENUE BY SERVICES (EUR million)

OPERATING EXPENSES (EUR million)

During 12 months of 2019, total assets increased by 3.2%
Non-current assets amounted to 75.3% of total assets (31-12-2019)
Cash alone amounted to 8.2%
Return on capital employed: 13.3%
Return on average assets: 10%

EQUITY AND LIABILITIES (EUR million)

During 12 months of 2019 shareholders' equity increased by 2.5% and amounted to 53.4% of the total assets (31-12-2019)
Total borrowings (31-12-2019) amounted to EUR 143.5 million: EUR 97.5 million – bank loans, EUR 5 million – short-term loan from Telia Company, EUR 38.7 million – vendor financing and EUR 2.2 – financial lease.
Gearing ration: 28.4%
Debt to equity: 43.7%
Return on equity: 17.3%

CASH FLOW & NET DEBT (EUR million)

CAPEX & CAPEX BREAKDOWN FOR 12 MONTHS OF 2019

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 Annual General Meeting of Shareholders that shall decide on pay-out dividends for the year 2019, is planned to be held on 28 April 2020

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 31-12-2019

	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 of 2019: 4.7 million of shares or EUR 5.5 million
Share price on Nasdaq Vilnius:

	EUR
01-01-2019	1.110
High	1.290
Low	1.095
31-12-2019	1.275

Market capitalization (EUR million)

TRADING IN THE COMPANY'S SHARES ON NASDAQ VILNIUS STOCK EXCHANGE IN 2019

THE COMPANY SHARE PRICE AND NASDAQ VILNIUS INDEXES COMPARISON

INDEX EQUITY	OPENING VALUE	CLOSING VALUE	CHANGE %
OMX Baltic Benchmark Gl	873.81	992.83	+13.62
OMX Vilnius	616.9	712.14	+15.44
TEL1L - Telia Lietuva	1.1	1.27	+15.38

Source: Nasdaq Vilnius

CORPORATE GOVERNANCE

GOVERNING BODIES

The Annual General Meeting of Shareholders was held on 26 April 2019
The Board consist of 6 members elected for the 2 year term
Upon termination of the 2 years' term of the Board, shareholders re-elect all members of Board for a new 2 year term
3 members of the Board comprise Audit and Remuneration Committees
UAB Deloitte Lietuva is 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