Telia Company

Annual Report • Jan 26, 2024

Year-end report

January - December 2023

A strong end to the year

Fourth quarter summary1

• Revenue increased 0.9% to SEK 23,098 million (22,894) and like for like, revenue decreased 0.4%.
• Service revenue increased 2.8% to SEK 19,666 million (19,123) and like for like, service revenue increased 1.7%. For the Telco operations, service revenue increased 3.3% on a like for like basis.
• Adjusted EBITDA increased 7.4% to SEK 7,491 million (6,977) and like for like, adjusted EBITDA increased 7.3%. For the Telco operations, adjusted EBITDA increased 5.4% on a like for like basis.
• Operating income amounted to SEK -2,398 million (-17,379), both periods were impacted by non-cash impairment charges of SEK -4,062 million and SEK -19,276 million, respectively. See note 13.
• Total net income3 amounted to SEK -2,718 million (-18,818), both periods impacted by non-cash impairment charges. See note 13.
• Operational free cash flow increased to SEK 6,993 million (297) and the structural part of Operational free cash flow increased to SEK 2,329 million (274).
• The leverage ratio3 was 2.32x at the end of the quarter.
• Outlook 2024: Service revenue, like for like, is estimated to grow by low single digits, adjusted EBITDA, like for like, is estimated to grow by low to mid-single digits, CAPEX, excluding fees for licenses, spectrum and right of use assets, is estimated to be around SEK 14 billion and the structural part of Operational free cash flow is estimated to be between SEK 7-8 billion. See page 5.
• For 2023, the Board of Directors proposes to the Annual General Meeting a dividend of SEK 2.00 per share (2.00). See page 5.

Full year summary1

• Revenue increased 3.7% to SEK 88,785 million (85,580) and like for like, revenue increased 1.8%.
• Service revenue increased 3.9% to SEK 75,912 million (73,047) and like for like, service revenue increased 2.0%. For the Telco operations, service revenue increased 3.3% on a like for like basis.
• Adjusted EBITDA increased 4.5% to SEK 30,254 million (28,954) and like for like, adjusted EBITDA increased 3.6%. For the Telco operations, adjusted EBITDA increased 5.3% on a like for like basis.
• Operating income increased to SEK 4,980 million (-9,214) and total net income3 increased to SEK 897 million (-14,165), both periods impacted by non-cash impairment charges. See note 13.
• Operational free cash flow increased to SEK 6,656 million (5,124) and the structural part of Operational free cash flow increased to SEK 7,254 million (6,092).

Highlights1

SEK in millions, except key ratios,	Oct-Dec	Oct-Dec	Chg	Jan-Dec	Jan-Dec	Chg
per share data and changes	2023	2022	%	2023	2022	%
Revenue	23,098	22,894	0.9	88,785	85,580	3.7
Change (%) like for like	-0.4			1.8
of which service revenue2	19,666	19,123	2.8	75,912	73,047	3.9
change (%) like for like	1.7			2.0
change (%) like for like, Telco operations	3.3			3.3
Adjusted EBITDA	7,491	6,977	7.4	30,254	28,954	4.5
change (%) like for like	7.3			3.6
change (%) like for like, Telco operations	5.4			5.3
Margin (%)	32.4	30.5		34.1	33.8
Adjusted operating income	2,374	2,152	10.3	10,862	10,847	0.1
Operating income	-2,398	-17,379	n/a	4,980	-9,214	n/a
Income after financial items	-3,300	-18,205	n/a	1,105	-12,555	n/a
Total net income3	-2,718	-18,818	n/a	897	-14,165	n/a
EPS total (SEK)3	-0.73	-4.78	n/a	0.08	-3.63	n/a
Structural part of Operational free cash flow	2,329	274	n/a	7,254	6,092	19.1
Operational free cash flow	6,993	297	n/a	6,656	5,124	29.9
CAPEX excl. fees for licenses, spectrum and right-of-use assets	3,565	4,773	-25.3	13,628	15,266	-10.7

1) Continuing operations if not otherwise stated. Telia Denmark classified as discontinued operations from the third quarter 2023. 2) Restated, see Note 1. 3) Refers to continuing and discontinued operations.

CEO comment...

"Our primary objective throughout 2023 was to build profitable growth momentum in our Telco operations, increasing value creation across the business by optimizing capital allocation and cash conversion.

Our full year and fourth quarter results confirm that we delivered what we set out to achieve, despite the ongoing impact of macro factors including rising financing costs and contracting advertising markets.

Since the second quarter, our Telco business has returned to mid-single digit EBITDA growth and our annual and fourth quarter results are a clear improvement on the previous year.

Delivery against key strategic priorities continued, and I would like to highlight the following:

• Customer satisfaction is progressing in the right direction with six consecutive quarters of NPS growth
• Further consolidation of our network leadership position with Telia's 5G now reaching 89% of the Nordic/Baltic population, and our home market securing the strongest spectrum portfolio and awarded best network status
• Continued structural cost transformation enabling positive operational leverage
• Our strategy for returning TV and media to profitability has started to deliver tangible result
• Our net zero target for 2040 was approved by the SBTi, and the share of total supply chain emissions covered by SBT reached 52%
• The deal to sell Telia Denmark to Norlys marks another significant milestone in capital allocation efficiency

Business momentum in the final quarter of the year remained solid across our Telco operations, with revenue and EBITDA growing in line with our stated ambitions, meaning that excluding the effects of energy prices - Telco EBITDA has grown consistently in the past nine quarters.

Telco service revenue growth of 3.3% was mainly driven by mobile, although Consumer, Enterprise and Wholesale all contributed. Telco EBITDA growth of 5.4% was driven mainly by higher service revenues.

The Nordic advertising markets, however, remain challenging and continued to decline, but our TV and Media business unit reverted to a positive EBITDA contribution, despite that much of the turnaround still lies ahead of us.

Breaking down the results by country, Sweden's service revenue increased 2.8%, despite continued headwinds from the declining copper legacy. Growth was broad based, with mobile at +1.5%, broadband at +5.5% and TV at a record +21% growth, the latter helped by price increases and 6% growth in the subscriber base compared to a year ago. EBITDA was impacted by higher costs for TV content, Viaplay being off air for most of the fourth quarter last year, and investment in customer care during the transition from C More to TV4 Play+, but still grew 0.8%. Telia Sweden's

leading infrastructure position was re-confirmed with the award of best network in the umlaut mobile network test, while 5G rollout continues with population coverage now reaching 82%.

Finland's service revenue grew 2.1%, despite a decline in legacy fixed revenue. This was underpinned by mobile growth of 4.1%, which was driven by double digit ARPU growth in Consumer, partly offset by a slight ARPU decline in Enterprise. Churn remained below last year's level, at 20%. Network modernization continued, and 5G coverage now exceeds 90%, underpinning further improvement in customer experience metrics and brand consideration. Cost reduction remained strong, resulting in double digit EBITDA growth. Excluding energy cost reductions, EBITDA grew by 6%.

Norway's service revenue grew 4.2%, driven by our leading mobile Wholesale business, with positive contributions from both Consumer and Enterprise. Network modernization continued in line with our plans, with 5G population coverage at close to 95%. Telia's position as a key partner to critical public services was further strengthened with the awarding of a contract from the Norwegian Tax Authority and the installation of an Enterprise Mobile Network (EMN) with the Norwegian Post. EBITDA outgrew revenue, increasing by 8.1%.

Having started the year with three strong quarters, Lithuania grew service revenue at a more modest 4.3% in Q4, following a slight decline in fixed services. Mobile growth continued to be strong at 10.1%, and the business remains a clear digital infrastructure leader with over 99% 5G population coverage. EBITDA grew 0.7%, also impacted by higher costs for employee bonuses due to the improvement in business performance, and especially from an improved customer experience.

Estonia continued to grow service revenue in line with previous quarters at 6.2%, driven by both mobile and fixed services, with a continued strong conversion into EBITDA, which grew by 11%.

TV and Media was challenged by further deterioration in advertising markets. However, a 14% reduction in advertising revenue was partly offset by 6.5% growth in pay TV revenue. C More customers were successfully migrated to TV4+ and MTV Katsumo in the quarter – a significant milestone. EBITDA was positive, despite continuing advertising headwinds and the stiff competition and costs for Champions League content, as structural cost transformation and content rationalization take effect.

Cash flow for the fourth quarter was, as expected, significantly higher than the same period last year, with operational free cash flow of SEK 7.0 billion (0.3 billion in Q4 2022) and the structural part at SEK 2.3 billion (0.3 billion in Q4 2022). This led to structural operational free cash flow for the full year of SEK 7.3 billion, of which Telco operations delivered SEK 7.9 billion and TV and Media SEK -0.6 billion.

With leverage back within our 2.0-2.5x range, and the proceeds from the sale of Telia Denmark due in the first half of this year, the Board of Directors intend to propose to maintain a dividend of SEK 2.00 per share, in line with our policy and last year, and again divided into tranches of SEK 0.50 per share paid every quarter.

Looking ahead for 2024, the Telia management team expect the current business momentum to continue, and anticipate lowsingle digit service revenue growth, low-to-mid single digit EBITDA growth, and CAPEX of around SEK 14 billion. The structural part of operational free cash flow is forecasted at SEK 7-8 billion, which includes the headwind from an increase in interest payments.

As I step down as CEO at the end of this month, I am proud to be handing over a business built on world-leading digital infrastructure, a well-deserved reputation for embedding sustainability in our sector and beyond, increasingly happier customers, and a team of talented, engaged and dedicated employees. I would therefore like to extend my huge thanks to the whole Telia team for the journey we have started, creating a better Telia for all. With solid foundations now in place, I have every confidence that under Patrik's leadership, the Telia team will build upon these foundations through 2024 and beyond, and I wish all of them every success."

Allison Kirkby President & CEO

In CEO comment, all growth rates disclosed are based on the "like for like" definition and EBITDA refers to adjusted EBITDA, unless otherwise stated. See definitions for more information.

Outlook for 2024

Service revenue, like for like, is estimated to grow by low single digits.

Adjusted EBITDA, like for like, is estimated to grow by low to mid-single digits.

CAPEX, excluding fees for licenses, spectrum and right of use assets, is estimated to be around SEK 14 billion.

The structural part of Operational free cash flow is estimated to be between SEK 7-8 billion.

Leverage and credit rating target

Telia Company targets a leverage corresponding to Net debt/adjusted EBITDA in the range of 2.0-2.5x and a solid investment grade of A- to BBB+.

Dividend policy

Telia Company intends to follow a progressive dividend policy, with a floor of SEK 2.00 per share and an ambition for low to mid-single digit percentage growth.

Dividend to shareholders for 2022

For 2022, the Annual General Meeting (AGM) decided on a dividend of SEK 2.00 per share (2.05), totaling SEK 7.9 billion (8.3). The dividend will be split and distributed in four tranches of SEK 0.50 per share.

The Annual General Meeting (AGM) decided that the tranches was to be distributed by Euroclear Sweden on April 14, 2023, August 3, 2023, and October 31, 2023. For the fourth distribution the Annual General Meeting (AGM) decided that the final day for trading in shares entitling shareholders to dividend to be set for February 1, 2024, and that the first day of trading in shares excluding rights to dividend be set for February 2, 2024. The record date at Euroclear Sweden for the right to receive dividend will be February 5, 2024. The dividend is expected to be distributed by Euroclear Sweden on February 8, 2024.

Dividend to shareholders for 2023

For 2023, the Board of Directors proposes to the Annual General Meeting (AGM) a dividend of SEK 2.00 per share (2.00), totaling SEK 7.9 billion (7.9). The dividend should be split and distributed in four tranches of SEK 0.50 per share.

First distribution

The Board of Directors proposes that the final day for trading in shares entitling shareholders to dividend be set for April 10, 2024, and that the first day of trading in shares excluding rights to dividend be set for April 11, 2024. The recommended record date at Euroclear Sweden for the right to receive dividend will be April 12, 2024. If the AGM votes to approve the Board's proposals, the dividend is expected to be distributed by Euroclear Sweden on April 17, 2024.

Second distribution

The Board of Directors proposes that the final day for trading in shares entitling shareholders to dividend be set for July 30, 2024, and that the first day of trading in shares excluding rights to dividend be set for July 31, 2024. The recommended record date at Euroclear Sweden for the right to receive dividend will be August 1, 2024. If the AGM votes to approve the Board's proposals, the dividend is expected to be distributed by Euroclear Sweden on August 6, 2024.

Third distribution

The Board of Directors proposes that the final day for trading in shares entitling shareholders to dividend be set for October 29, 2024, and that the first day of trading in shares excluding rights to dividend be set for October 30, 2024. The recommended record date at Euroclear Sweden for the right to receive dividend will be October 31, 2024. If the AGM votes to approve the Board's proposals, the dividend is expected to be distributed by Euroclear Sweden on November 5, 2024.

Fourth distribution

The Board of Directors proposes that the final day for trading in shares entitling shareholders to dividend be set for February 5, 2025, and that the first day of trading in shares excluding rights to dividend be set for February 6, 2025. The recommended record date at Euroclear Sweden for the right to receive dividend will be February 7, 2025. If the AGM votes to approve the Board's proposals, the dividend is expected to be distributed by Euroclear Sweden on February 12, 2025.

Review of the group, fourth quarter 2023

Revenue and earnings

Revenue increased 0.9% to SEK 23,098 million (22,894) and like for like, revenue decreased 0.4%.

Service revenue increased 2.8% to SEK 19,666 million (19,123) and like for like, service revenue increased 1.7% driven by a positive development for the Telco operations.

Adjusted EBITDA increased 7.4% to SEK 7,491 million (6,977) and the adjusted EBITDA margin increased to 32.4% (30.5). Like for like, adjusted EBITDA increased 7.3% driven mainly by Finland, Norway and TV and Media. Adjusted EBITDA was also positively impacted by lower energy costs and negatively impacted by an increase in employee bonuses.

Operating income amounted to SEK -2,398 million (-17,379), both periods were impacted by impairment charges of SEK -4,062 million and SEK -19,276 million, respectively. See note 13.

Adjustment items affecting operating income amounted to SEK -4,773 million (-19,530). The fourth quarter of 2023 was impacted by impairments, mainly related to goodwill in Finland and TV and Media and copper network assets in Sweden, and higher personnel redundancy costs. The fourth quarter of 2022 was also impacted by impairments. See Note 2.

Adjusted operating income increased to SEK 2,374 million (2,152).

Financial items totaled SEK -901 million (-826) of which SEK -977 million (-861) related to net interest expenses.

Income taxes amounted to SEK 138 million (-101). The effective tax rate was 4.2% (-0.6). The increase in effective tax rate was mainly impacted by deferred tax income related to non-tax deductible interest expenses in Sweden offset by adjustment of taxes related to prior years.

Net income from continuing operations amounted to SEK -3,162 million (-18,306) and Net income from discontinued operations amounted to SEK 444 million (-512).

Other comprehensive income decreased to SEK -4,478 million (-1,423) mainly due to negative foreign translations differences.

Cash flow, continuing and discontinued operations

Cash flow from operating activities increased to SEK 11,057 million (6,307) mainly impacted by working capital.

Cash flow from investing activities amounted to SEK -5,669 million (-3,115). The fourth quarter of 2023 was mainly impacted by increased investments in non-current bonds and net investments in short-term investments.

Cash flow from financing activities amounted to SEK -1,119 million (-6,094). The fourth quarter of 2022 was impacted by higher paid dividend as it was divided into two tranches instead of four as in 2023, repurchased shares as well as higher repayments of noncurrent borrowings.

Operational free cash flow, continuing operations

Structural part of Operational free cash flow increased to SEK 2,329 million (274) mainly driven by decreased cash CAPEX excluding licenses and spectrum.

Operational free cash flow increased to SEK 6,993 million (297) mainly driven by decreased cash CAPEX excluding fees for licenses and spectrum and a positive impact from working capital.

Financial position

CAPEX excluding right-of-use assets from continuing operations, decreased to SEK 3,565 million (4,798). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 3,565 million (4,773). Cash CAPEX decreased to SEK 3,627 million (5,072).

Net debt from continuing and discontinued operations was SEK 73,758 million at the end of fourth quarter (78,977 at the end of the third quarter of 2023). The net debt/adjusted EBITDA ratio decreased to 2.32x compared to 2.53x at the end of the third quarter 2023.

Review of the group, full year 2023

Revenue and earnings

Revenue increased 3.7% to SEK 88,785 million (85,580) and like for like, revenue increased 1.8%.

Service revenue increased 3.9% to SEK 75,912 million (73,047) and like for like, service revenue increased 2.0% driven by a positive development for the Telco operations.

Adjusted EBITDA increased 4.5% to SEK 30,254 million (28,954) and the adjusted EBITDA margin increased to 34.1% (33.8). Like for like, adjusted EBITDA increased 3.6% as growth for Telco operations more than compensated for a negative development for TV and Media.

Operating income amounted to SEK 4,980 million (-9,214), both periods were impacted by impairment charges of SEK -4,062 million and SEK -19,276 million, respectively. See note 13.

Adjustment items affecting operating income amounted to SEK -5,882 million (-20,062). 2023 was impacted by impairments mainly related to goodwill in Finland and TV and Media as well as copper network assets in Sweden and higher personnel redundancy costs. 2022 was impacted by impairments. See Note 2.

Adjusted operating income increased to SEK 10,862 million (10,847).

Financial items totaled SEK -3,876 million (-3,340) of which SEK -3,974 million (-2,976) related to net interest expenses. The increase in net interest expenses was mainly due to increased interest rates and foreign exchange rates.

Income taxes amounted to SEK -1,099 million (-1,355). The effective tax rate was 99,5% (-10.8). The increase in effective tax rate was mainly impacted by impairments, see note 13, and adjustment of taxes related to prior years. Adjusted for impairments the effective tax rate would have been 22.9% (22.8).

Net income from continuing operations amounted to SEK 6 million (-13,910) and Net income from discontinued operations amounted to SEK 891 million (-255).

Other comprehensive income decreased to SEK -3,280 million (7,022), mainly due to negative remeasurements of defined benefit pension plans and negative foreign translation differences.

Cash flow, continuing and discontinued operations

Cash flow from operating activities increased to SEK 24,671 million (24,001).

Cash flow from investing activities amounted to SEK -22,058 million (-9,936). 2023 was mainly impacted by increased investments in long-term bonds and net investments in short-term investments.

Cash flow from financing activities amounted to SEK 2,653 million (-21,779). 2023 was impacted by received collateral while 2022 mainly was impacted by higher repayments of non-current borrowings, paid collateral and repurchased shares, partly offset by the partial disposal of the tower business in Sweden.

Operational free cash flow, continuing operations

Structural part of Operational free cash flow increased to SEK 7,254 million (6,092) mainly due to increased adjusted EBITDA, lower cash CAPEX excluding fees for licenses and spectrum, partly offset by increased interest paid.

Operational free cash flow increased to SEK 6,656 million (5,124) mainly due to increased adjusted EBITDA, lower cash CAPEX excluding fees for licenses and spectrum, partly offset by increased interest paid and a negative contribution from working capital.

Financial position

CAPEX excluding right-of-use assets from continuing operations, decreased to SEK 15,202 million (15,677). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 13,628 million (15,266). Cash CAPEX decreased to SEK 14,666 million (15,146).

Goodwill and other intangible assets decreased to SEK 66,020 million (74,547) mainly due to impairments, see Note 13, and by a reclassification of Denmark to Assets classified as held for sale, see Note 14.

Property, plant and equipment decreased to SEK 70,181 million (74,824), mainly impacted by the reclassification of Denmark to Assets classified as held for sale and foreign exchange rate effects.

Investments in associates and joint ventures, pension obligation assets and other non-current assets decreased to SEK 6,742 million (8,171), mainly due to remeasurements of defined benefit pension plans.

Non-current interest-bearing receivables increased to SEK 8,998 million (7,629) mainly driven by market value changes on derivatives and net investments in investment bonds, partly offset by a reclassification to Current interest-bearing receivables.

Current interest-bearing receivables increased to SEK 13,896 million (9,676) mainly due to net investments in investment bonds and a reclassification from Non-current interest-bearing receivables, partly offset by a decrease in collaterals for derivatives driven by market value changes.

Assets classified as held for sale and Liabilities directly associated with assets classified as held for sale increased to SEK 8,310 million (-) and SEK 4,169 million (-), respectively, as Denmark is classified as discontinued operations. See Note 14.

Non-current borrowings increased to SEK 98,497 million (94,555) mainly impacted by issued bonds, partly offset by reclassifications to current borrowings.

Current borrowings increased to SEK 14,069 million (7,007) mainly due to reclassifications from non-current borrowings, partly offset by matured debt.

Significant events in the first quarter

• On January 16, 2023, Telia Company announced changes to its Group Executive Management team through the merger of the Communications, Brand and Sustainability functions, appointing Ola Rembe as Senior Vice President, Head of Communications, Brand and Sustainability.
• On February 10, 2023, Telia Company announced that Dan Strömberg, Senior Vice President, Head of LED (Lithuania, Estonia and Denmark) and CEO of Telia Lithuania, plans to retire from Telia Company during the summer of 2023.
• On February 16, 2023, Telia Company issued a bond of EUR 500 million under its existing EMTN (Euro Medium Term Note) program. See Note 8.
• On March 9, 2023, Telia Company issued bonds in four separate tranches with a total amount of SEK 4 billion, under its existing EMTN (Euro Medium Term Note) program. See Note 8.
• On March 24, 2023, Telia Company announced that Per Christian Mørland, Executive Vice President and Group Chief Financial Officer, has given notice of resignation due to family reasons and will be leaving Telia Company during H2 2023 to take on career opportunities closer to his home in Norway.

Significant events in the second quarter

• On April 5, 2023, Telia Company announced the resolutions passed at the Annual General Meeting.
• On April 25, 2023, Telia Company announced the signing of a binding term sheet agreeing upon the key terms on which to sell 100% of its Danish operations and network assets to Norlys, at an expected enterprise value of DKK 6.25 billion (approximately SEK 9.5 billion), equal to 8.9x Telia Denmark's 2022 reported EBITDA. See Note 14.
• On April 28, 2023, it was announced that the number of shares and votes in Telia Company AB (publ) during April had decreased to 3,932,109,286 due to cancellation of 157,522,416 own shares previously repurchased by the company in accordance with the resolution of the Annual General Meeting on April 5, 2023.
• On June 27, 2023, Telia Company announced the appointment of Tim Pennington as interim Executive Vice President, Group Chief Financial Officer and a member of the Group Executive Management team, effective September 2023. Tim Pennington replaces Per Christian Mørland, who, as previously announced, will leave Telia Company at the end of September 2023.

Significant events in the third quarter

• On July 31, 2023, Telia Company announced that the President and CEO Allison Kirkby has decided to leave the company to take on the position as Chief Executive of BT Group Plc. Allison Kirkby will remain in her role as Telia Company President and CEO until January 31, 2024, at the latest.
• On August 10, 2023, Telia Company announced the appointment of Eric Hageman as Executive Vice President,

Group Chief Financial Officer and a member of the Group Executive Management team, effective September 15, 2023.

• On September 7, 2023, Telia Company announced that its targets set with the overall aim of achieving net-zero greenhouse gas (GHG) emissions across its value chain by 2040 have been approved by the Science Based Targets initiative (SBTi).
• On September 15, 2023, Telia Company announced that it has entered into a final and binding agreement to sell 100% of its operations and network assets in Denmark to Norlys a.m.b.a. (Norlys) at an enterprise value of DKK 6.25 billion, on a cash and debt-free basis. The transaction, first announced on April 25, 2023, is in line with Telia's strategy to focus on markets in which there is a clear path to securing and defending leading market positions. See Note 14.
• On September 21, 2023, Telia Company announced that Telia Sweden in a spectrum auction had secured 2x15MHz in the 900MHz band, 2x20MHz in the 2.1GHz band and 2x30MHz in the 2.6GHz band at a total cost of SEK 1.55 billion. The 900MHz band frequencies have a duration of 23 years, and the 2.1GHz and 2.6GHz frequencies have a duration of 25 years.

Significant events in the fourth quarter

• On October 13, 2023 Telia Company announced that its Board of Directors had appointed Patrik Hofbauer as President and CEO, effective February 1, 2024.
• On November 23, 2023, Telia Company announced that it for the second consecutive year, had received a platinum rating from EcoVadis, the world's largest provider of business sustainability ratings.
• On November 29, 2023, Telia Company issued bonds in a total amount of NOK 4 billion, under its existing EUR 12 billion EMTN (Euro Medium Term Note) program. See Note 8.
• On December 18, 2023, Telia Company announced that it had received information from the Danish Competition Authority (DCCA) that the clearance process for the intended sale of Telia Denmark to Norlys was not yet finalized, and that the DCCA has decided to move the decision process into Phase 2. See Note 14.

Significant events after the end of the fourth quarter

– On January 24, 2024, Telia Company announced that the fourth quarter and full year 2023 financial results will be impacted by non-cash impairments of in total SEK 4.1 billion, mainly related to goodwill in Finland and TV and Media. See Note 13.

Sweden

• Telia again came out as the operator with the best network in umlauts yearly benchmarking survey, after taking first place in all three categories: voice, data and crowdsourcing. Telia received a total score of 968 out of 1,000, which places its network top 5 in the world.
• Supported by EU funding, Telia will establish new, local, dedicated 5G networks in the 4 strategically important areas agriculture, transport, logistics and healthcare, for the activation of large-scale digital innovation projects, together with partners. The investments in the new networks consist mainly of two major projects, which in turn will lead to innovation projects in several different socially important areas.
• Within the framework of the NorthStar innovation program and supported by EU funds, Telia started to build a total of 150 kilometers of 5G transport corridors along selected routes located in important industrial and technology clusters. The routes integrate controlled test areas with public roads, which is the first of its kind and may change the future of transportation services.
• Following a significant improvement, Telia came out on top in the customer satisfaction index for TV in this year's report by SKI, the Swedish quality index. Main reasons for the increased customer satisfaction were related to channel selection, affordability, and the ability to choose and control content.

Highlights

SEK in millions, except margins,	Oct-Dec	Oct-Dec	Chg	Jan-Dec	Jan-Dec	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	9,202	9,225	-0.2	35,869	35,112	2.2
Change (%) like for like	-0.3			2.1
of which service revenue (external)	7,816	7,597	2.9	30,401	29,852	1.8
change (%) like for like	2.8			1.8
Adjusted EBITDA	3,435	3,419	0.5	13,615	13,508	0.8
Margin (%)	37.3	37.1		38.0	38.5
change (%) like for like	0.8			1.2
Adjusted operating income	1,671	1,438	16.2	6,655	6,422	3.6
Operating income	1,389	1,005	38.2	6,226	5,891	5.7
CAPEX excluding fees for licenses, spectrum and right-of-use assets	941	901	4.4	3,252	3,312	-1.8
Subscriptions, (thousands)
Mobile1	8,769	7,935	10.5	8,769	7,935	10.5
of which machine-to-machine (postpaid)	4,286	3,395	26.2	4,286	3,395	26.2
Fixed telephony1	313	431	-27.3	313	431	-27.3
Broadband1	1,377	1,375	0.1	1,377	1,375	0.1
TV1	1,034	972	6.4	1,034	972	6.4
Employees1	4,053	4,172	-2.9	4,053	4,172	-2.9

1) Restated, see Note 1.

Revenue decreased 0.2% to SEK 9,202 million (9,225) and like for like, revenue decreased 0.3% as increased service revenue was offset by lower sales of equipment.

Service revenue, like for like, increased 2.8% as mobile service revenue increased 1.5% and fixed service revenue increased 4.0%. The growth in fixed service revenue was mainly driven by business solutions, fixed broadband and TV, which more than compensated for a continued decline for fixed telephony revenue.

Adjusted EBITDA increased 0.5% to SEK 3,435 million (3,419) and adjusted EBITDA margin increased to 37.3% (37.1). Adjusted EBITDA like for like increased 0.8% driven by the service revenue growth.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, increased 4.4% to SEK 941 million (901).

Mobile subscriptions grew by ~255,000 in the quarter driven by an addition of ~314,000 postpaid subscriptions used for machine-tomachine related services, of which ~88,000 was related to a transfer from Telia Norway. TV subscriptions increased by ~17,000 and fixed broadband subscriptions decreased by ~3,000 in the quarter.

Finland

• A timetable for closing down 3G services of Telia's and DNA's jointly owned network, SYV, was established. Closing is planned to take place in stages, with a full close-down by the end of 2024. This will free up both frequencies and resources currently used by the old technology, for a safer, faster and more energy-efficient 4G and 5G network technologies.
• Telia introduced recycled phones to consumers already in 2019 and is now expanding its range of recycled devices to also include refurbished laptops. A sustainable and affordable alternative to a new computer, without compromising on quality.
• A pilot between Valmet Automotive and Telia around industrial metaverse was performed at Valmet Automotive's car plant in Uusikaupunki. Using lidar technology, a virtual world of the plant's Innovation Center was created, enabling experts from different parts of the world to collaborate via VR glasses in real time.
• Sales of Telia's security solution increased by almost 200% in 2023 as consumer customers increasingly invest in the security of their digital devices and connections. The increased interest in security was also evident in Telia's extensive annual information security survey, which showed that 92% of Finns consider security of telephone and internet connections as very important.

Highlights

SEK in millions, except margins,	Oct-Dec	Oct-Dec	Chg	Jan-Dec	Jan-Dec	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue1	4,310	4,178	3.1	16,545	15,171	9.1
Change (%) like for like	-2.6			1.1
of which service revenue (external)	3,687	3,418	7.9	14,081	12,782	10.2
change (%) like for like	2.1			2.1
Adjusted EBITDA	1,246	1,063	17.3	5,093	4,443	14.6
Margin (%)	28.9	25.4		30.8	29.3
change (%) like for like	11.3			6.2
Adjusted operating income	285	161	77.4	1,444	915	57.9
Operating income	-2,561	-9,385	n/a	-1,574	-8,716	n/a
CAPEX excluding fees for licenses, spectrum and right-of-use assets	360	444	-18.9	1,494	1,566	-4.6
Subscriptions, (thousands)
Mobile1	3,092	3,151	-1.9	3,092	3,151	-1.9
of which machine-to-machine (postpaid)	426	381	11.9	426	381	11.9
Fixed telephony	12	14	-13.6	12	14	-13.6
Broadband1	609	596	2.1	609	596	2.1
TV	664	678	-2.0	664	678	-2.0
Employees1	2,464	2,711	-9.1	2,464	2,711	-9.1

1) Restated, see Note 1.

Revenue increased 3.1% to SEK 4,310 million (4,178) and like for like, revenue decreased 2.6% as increased service revenue could not fully compensate for reduced sales of equipment. The effect of exchange rate fluctuations was positive by 6.0%.

Service revenue, like for like, increased 2.1% as fixed service revenue remained rather unchanged and mobile service revenue increased by 4.1% driven mainly by an improved ARPU.

Adjusted EBITDA increased 17.3% to SEK 1,246 million (1,063) and adjusted EBITDA margin increased to 28.9% (25.4). Adjusted EBITDA, like for like, increased 11.3% from the growth in service revenue, coupled with lower operational expenses, mainly related to marketing and energy.

Operating income amounted to SEK -2,561 million (-9,385). Both periods were impacted by non-cash impairment charges of SEK -2,800 million and SEK -9,500 million, respectively. See Note 13.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 18.9% to SEK 360 million (444).

Mobile subscriptions decreased in the quarter by ~25,000 driven by a reduction of ~24,000 postpaid subscriptions. TV subscriptions decreased by ~24,000 and fixed broadband subscriptions decreased by ~2,000 in the quarter.

Norway

• Avinor chose Telia as partner to explore the opportunities that 5G provides in digitalization and streamlining of airport operations, as well as sustainable development of aviation. One of the projects will, among other things, test 5G to control a robot with the aim to streamline the operation of runways.
• Telia installed a new solution for data and mobile communication at Posten's warehouse in Oslo Logistics Park Drøbak. The core of the solution is a private 5G network which ensures high performance and full control of over both capacity and data communication.
• Telia launched a new mobile portfolio with an improved slate of unlimited data subscriptions adapted to customer needs. The new portfolio also contains a number of new value-added services, such as for instance the cloud service Telia Sky.
• Telia became the first operator in Norway to launch Microsoft Teams Phone Mobile – a service that enables Enterprise customers to use mobile numbers to make calls via the Microsoft Teams application.

Highlights

SEK in millions, except margins, operational data and changes	Oct-Dec 2023	Oct-Dec 2022	Chg %	Jan-Dec 2023	Jan-Dec 2022	Chg %
Revenue	3,769	3,851	-2.1	15,114	15,022	0.6
Change (%) like for like	3.0			5.0
of which service revenue (external)	3,188	3,223	-1.1	12,854	12,803	0.4
change (%) like for like	4.2			4.8
Adjusted EBITDA	1,705	1,647	3.6	7,062	6,750	4.6
Margin (%)	45.2	42.8		46.7	44.9
change (%) like for like	8.9			9.2
Adjusted operating income	548	621	-11.8	2,730	2,727	0.1
Operating income	145	-7,888	n/a	2,197	-5,851	n/a
CAPEX excluding fees for licenses, spectrum and right-of-use assets Subscriptions, (thousands)	588	1,111	-47.1	2,381	2,932	-18.8
Mobile	2,340	2,379	-1.7	2,340	2,379	-1.7
of which machine-to-machine (postpaid)	181	196	-7.9	181	196	-7.9
Fixed telephony1	14	38	-63.8	14	38	-63.8
Broadband1	499	500	-0.2	499	500	-0.2
TV1	474	485	-2.2	474	485	-2.2
Employees	1,249	1,334	-6.4	1,249	1,334	-6.4

1) Restated, see Note 1.

Revenue decreased 2.1% to SEK 3,769 million (3,851) and like for like, revenue increased 3.0% driven by increased service revenue. The effect of exchange rate fluctuations was negative by 5.2%.

Service revenue, like for like, increased 4.2% as fixed service revenue remained flat and mobile service revenue increased 6.2% driven mainly by ARPU expansion as well as increased wholesale revenue.

Adjusted EBITDA increased 3.6% to SEK 1,705 million (1,647) and adjusted EBITDA margin increased to 45.2% (42.8). Adjusted EBITDA like for like increased 8.9% driven by the growth in service revenue coupled with lower operational expenses mainly related to energy and resource costs. The latter mainly due to a SEK 70 million positive impact from the settlement of a pension scheme.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 47.1% to SEK 588 million (1,111).

Mobile subscriptions decreased by ~101,000 in the quarter mainly driven by a reduction of ~83,000 postpaid subscriptions used for machine-to-machine related services, of which ~88,000 was related to a transfer to Telia Sweden. TV subscriptions declined by ~5,000 and fixed broadband subscriptions declined by ~4,000 in the quarter.

Lithuania

• Significant efforts have been made to enhance accessibility and inclusivity, with initiatives ranging from more accessible services and shops to training programs for employees. This was highlighted in Telia's Christmas campaign and various initiatives targeting to raise awareness for the visually impaired. It earned significant community recognition and set a new standard for accessibility in the industry, acknowledged by the Lithuanian Ministry of social security and labour.
• NPS for the Consumer segment continued to improve and reached a record level in the fourth quarter.
• As the first operator in the country, Telia implemented an antispoofing technique that automatically blocks counterfeit mobile numbers. The system targets to block falsified numbers that impersonates well-known companies and government agencies, and already blocks about 10,000 calls a day.

Highlights

SEK in millions, except margins, operational data and changes	Oct-Dec 2023	Oct-Dec 2022	Chg %	Jan-Dec 2023	Jan-Dec 2022	Chg %
Revenue	1,440	1,297	11.1	5,516	4,784	15.3
Change (%) like for like	4.7			6.7
of which service revenue (external)	1,074	972	10.5	4,259	3,663	16.2
change (%) like for like	4.3			7.6
Adjusted EBITDA	483	453	6.8	2,019	1,688	19.7
Margin (%)	33.5	34.9		36.6	35.3
change (%) like for like	0.7			10.7
Adjusted operating income	264	240	10.0	1,152	856	34.5
Operating income	251	237	5.9	1,115	850	31.1
CAPEX excluding fees for licenses, spectrum and right-of-use assets Subscriptions, (thousands)	125	188	-33.2	455	597	-23.7
Mobile	1,643	1,604	2.4	1,643	1,604	2.4
of which machine-to-machine (postpaid)	321	322	-0.4	321	322	-0.4
Fixed telephony	155	175	-11.5	155	175	-11.5
Broadband	426	427	-0.3	426	427	-0.3
TV	261	257	1.4	261	257	1.4
Employees	1,480	1,555	-4.8	1,480	1,555	-4.8

Revenue increased 11.1% to SEK 1,440 million (1,297) and like for like, revenue increased 4.7% as a result from increased service revenue and partly also increased sales of equipment. The effect of exchange rate fluctuations was positive by 6.3%.

Service revenue, like for like, increased 4.3% driven by a positive development for mobile service revenue, which increased 10.1%, following an increased number of subscriptions as well as a higher ARPU.

Adjusted EBITDA increased 6.8% to SEK 483 million (453) and adjusted EBITDA margin decreased to 33.5% (34.9). Adjusted EBITDA like for like increased 0.7% as the growth in service revenue was largely offset by an increased cost level.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 33.2% to SEK 125 million (188).

Mobile subscriptions increased by ~1,000 in the quarter. TV subscriptions increased by ~2,000 and fixed broadband subscriptions decreased by ~1,000 in the quarter.

Estonia

• Telia continued to modernize its mobile network and roll-out 5G. Population coverage reached 77% compared to 43% in the corresponding quarter last year.
• Telia came out as the third most reputable company in Estonia in Kantar Emor's survey amongst the 100 largest companies.
• In cooperation with the Ministry of Economic Affairs and Communications, Telia organized for the fourth year the Telia Digital Hub, Estonia's largest innovation and technology conference. The event had a record attendance and covered topics such as cyber security, cloud technologies, 5G and IoT.

Highlights

SEK in millions, except margins,	Oct-Dec	Oct-Dec	Chg	Jan-Dec	Jan-Dec	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	1,094	980	11.7	4,145	3,637	14.0
Change (%) like for like	5.5			5.5
of which service revenue (external)	890	791	12.5	3,456	2,994	15.4
change (%) like for like	6.2			6.9
Adjusted EBITDA	401	341	17.5	1,618	1,330	21.6
Margin (%)	36.6	34.8		39.0	36.6
change (%) like for like	11.0			12.6
Adjusted operating income	243	155	56.9	1,013	669	51.6
Operating income	240	154	55.3	999	734	36.0
CAPEX excluding fees for licenses, spectrum and right-of-use assets	139	133	4.7	426	374	13.8
Subscriptions, (thousands)
Mobile1	1,266	1,233	2.7	1,266	1,233	2.7
of which machine-to-machine (postpaid)	481	448	7.2	481	448	7.2
Fixed telephony	174	192	-9.3	174	192	-9.3
Broadband1	273	276	-1.0	273	276	-1.0
TV	194	200	-2.8	194	200	-2.8
Employees	1,222	1,269	-3.7	1,222	1,269	-3.7

1) Restated, see Note 1.

Revenue increased 11.7% to SEK 1,094 million (980) and like for like, revenue increased 5.5% driven mainly by increased service revenue. The effect of exchange rate fluctuations was positive by 6.3%.

Service revenue, like for like, increased 6.2% as mobile service revenue increased 4.8%, driven by subscription base expansion and ARPU growth, as well as fixed service revenue growth of 7.1% from a positive development for predominately business solutions, fixed broadband and other fixed services.

Adjusted EBITDA increased 17.5% to SEK 401 million (341) and adjusted EBITDA margin increased to 36.6% (34.8). Adjusted EBITDA like for like increased 11.0% driven by the service revenue growth.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, increased 4.7% to SEK 139 million (133).

Mobile subscriptions increased by ~7,000 in the quarter. TV subscriptions remained fairly unchanged and fixed broadband subscriptions decreased by ~1,000 in the quarter.

TV and Media

• Following the merger of C More and TV4 in Sweden, and the launch of new streaming services under the TV4 Play brand, the C More services were closed in the quarter. In Finland, C More was merged into MTV Katsomo, and new streaming services were instead launched under the MTV Katsumo brand.
• TV4 and The Walt Disney Company Nordic started an advertising collaboration in Sweden, following the launch of a subscription option containing advertising under the Disney+ brand. The collaboration aims at strengthening both TV4's and Disney's positions in the advertising market, and TV4 will become the exclusive reseller of advertising inventory for Disney+ in Sweden.
• MTV's share of total television viewing in Finland has been gradually growing, and this autumn it reached its highest share since 2013, with MTV3 taking a particularly large share with shows like "Dancing with the Stars" and "Masked Singer". Each of them reached more than 3 million viewers during the season. The Finnish hockey league, Liiga, has also grown in popularity, and during the autumn it was viewed by 2.3 million Finnish viewers.

Highlights

SEK in millions, except margins, operational data and changes	Oct-Dec 2023	Oct-Dec 2022	Chg %	Jan-Dec 2023	Jan-Dec 2022	Chg %
Revenue	2,379	2,567	-7.3	8,386	8,829	-5.0
Change (%) like for like	-8.6			-6.7
of which service revenue (external)	2,372	2,564	-7.5	8,359	8,826	-5.3
change (%) like for like	-8.8			-6.9
Adjusted EBITDA1	20	-112	n/a	-225	276	n/a
Margin (%)	0.8	-4.4		-2.7	3.1
change (%) like for like	-115.8			-180.1
Adjusted operating income1	-255	-300	n/a	-1,123	-512	n/a
Operating income1	-1,193	-634	88.3	-2,149	-852	n/a
CAPEX excluding fees for licenses, spectrum and right-of-use assets1	51	68	-25.4	185	182	1.6
Subscriptions, TV SVOD (thousands)	802	785	2.2	802	785	2.2
Employees1	1,253	1,264	-0.9	1,253	1,264	-0.9

1) Restated, see Note 1.

Revenue decreased 7.3% to SEK 2,379 million (2,567) and like for like, revenue decreased 8.6% driven by decreased service revenue. The effect of exchange rate fluctuations was positive by 1.3%.

Service revenue, like for like, decreased 8.8% as growth of 6.5% for TV revenue was more than offset by advertising revenue declining by 14.4% driven mainly by a materially weaker advertising market in Sweden compared to the corresponding period of last year.

Adjusted EBITDA increased to SEK 20 million (-112) and adjusted EBITDA margin increased to 0.8% (-4.4). Adjusted EBITDA like for like increased to SEK 18 million (-112) as lower service revenue was more than compensated by lower content cost, as well as operational expenses primarily related to resources and marketing.

Operating income amounted to SEK -1,193 million (-634). Both periods were impacted by non-cash impairment charges of SEK -900 million and SEK -316 million, respectively. See Note 13.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 25.4% to SEK 51 million (68)

Direct subscriptions video-on-demand (SVOD) increased by ~98,000 in the quarter driven by both Sweden and Finland.

Other operations

Highlights

SEK in millions, except margins, operational data and changes	Oct-Dec 2023	Oct-Dec 2022	Chg %	Jan-Dec 2023	Jan-Dec 2022	Chg %
Revenue1	1,385	1,187	16.7	5,025	4,330	16.1
of which Latvia	1,004	871	15.3	3,566	3,065	16.3
Change (%) like for like	9.4			8.4
Adjusted EBITDA1	200	166	20.9	1,072	959	11.8
of which Latvia	273	264	3.5	1,029	890	15.7
Margin (%)	14.5	14.0		21.3	22.1
Income from associated companies	31	47	-33.9	97	96	1.1
of which Latvia	31	30	2.4	126	117	7.9
Adjusted operating income1	-382	-163	n/a	-1,010	-230	n/a
Operating income1	-670	-869	n/a	-1,833	-1,271	n/a
CAPEX excluding fees for licenses, spectrum and right-of-use assets1 Subscriptions, (thousands)	1,361	1,927	-29.4	5,435	6,303	-13.8
Mobile Latvia	1,445	1,399	3.3	1,445	1,399	3.3
of which machine-to-machine (postpaid)	423	401	5.6	423	401	5.6
Employees1	6,176	6,188	-0.2	6,176	6,188	-0.2

1) Restated, see Note 1.

Operations and network assets in Denmark to be sold, are classified as held for sale and discontinued operations as of September 15, 2023. Danish units that will not be sold are included in Other operations within continuing operations. Comparative periods have been restated.

Revenue increased 16.7% to SEK 1,385 million (1,187) and like for like, revenue increased 9.4%. The effect of exchange rate fluctuations was positive by 6.0%.

Adjusted EBITDA increased 20.9% to SEK 200 million (166), driven mainly by efficiencies in the central units, and adjusted EBITDA margin increased to 14.5% (14.0).

In Latvia, revenue increased 15.3% to SEK 1,004 million (871) and like for like, revenue increased 6.7% driven both by increased service revenue as well as equipment sale. The effect of exchange rate fluctuations was positive by 6.7%. Adjusted EBITDA increased 3.5% to SEK 273 million (264) and the adjusted EBITDA margin decreased to 27.2% (30.3). Adjusted EBITDA like for like decreased 3.3% as the growth in revenue was not enough to compensate for higher operational expenses mainly related to resources. The number of mobile subscriptions decreased by ~13,000 in the quarter.

In the first quarter of 2022 an agreement was signed regarding a divestment of SIA Telia Latvija, a leading B2B telecom services provider in Latvia. The transaction was completed on June 1, 2022.

Discontinued operations (Denmark)

• A final and binding agreement to sell Telia's operations and network assets in Denmark to Norlys was signed in the third quarter. The transaction, first announced on April 25, 2023, is in line with Telia's strategy to focus on markets in which there is a clear path to securing and defending leading market positions. Closing of the transaction is expected around the end of the first quarter 2024.
• Based on the signed sales agreement, the operations and network assets in Denmark to be sold are classified as held for sale and discontinued operations as of September 15, 2023. Danish units that will not be sold are included in Other operations within continuing operations. Highlights for discontinued operations are presented in a condensed format and include only external items. Therefore, discontinued operations (Denmark), is not comparable to the previous segment Denmark. Comparative periods have been restated. For more information on discontinued operations, see Note 14.

Highlights

SEK in millions, except margins,	Oct-Dec	Oct-Dec	Chg	Jan-Dec	Jan-Dec	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	1,543	1,367	12.9	5,679	5,247	8.2
Adjusted EBITDA	351	397	-11.6	1,473	1,374	7.2
Margin (%)	22.8	29.1		25.9	26.2
change (%) like for like	-22.6			-5.9
CAPEX excluding fees for licenses, spectrum and right-of-use assets	175	249	-29.6	734	692	6.1

Revenue increased 12.9% to SEK 1,543 million (1,367) and like for like, revenue increased 6.9%. The effect of exchange rate fluctuations was positive by 6.0%.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 29.6% to SEK 175 million (249).

Adjusted EBITDA decreased 11.6% to SEK 351 million (397) and adjusted EBITDA like for like decreased 22.6%.

Condensed consolidated statements of comprehensive income

SEK in millions, except per share data and	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
number of shares Note Revenue	2023	2022	2023	2022
3, 4 Goods and services purchased	23,098	22,894	88,785	85,580
Personnel expenses	-9,169 -3,927	-9,335 -3,513	-33,770 -14,797	-32,222 -13,512
Other external expenses	-2,961	-3,379	-11,414	-11,696
Other operating income and expenses, net	-303	17	-412	-20
EBITDA	6,738	6,684	28,392	28,131
Depreciation, amortization and impairment 13	-9,165	-24,109	-23,517	-37,445
Income from associated companies and joint ventures	28	46	105	100
Operating income 3	-2,398	-17,379	4,980	-9,214
Financial items, net	-901	-826	-3,876	-3,340
Income after financial items 3	-3,300	-18,205	1,105	-12,555
Income taxes	138	-101	-1,099	-1,355
Net income from continuing operations	-3,162	-18,306	6	-13,910
Net income from discontinued operations 14	444	-512	891	-255
Total net income	-2,718	-18,818	897	-14,165
Items that may be reclassified to net income:
Foreign currency translation differences continuing operations	-1,057	968	-1,624	2,367
Foreign currency translation differences discontinued operations	-63	36	-22	181
Cash flow hedges	-481	120	-100	267
Cost of hedging	22	-31	-102	155
Debt instruments at fair value through OCI	2	3	2	-7
Income taxes relating to items that may be reclassified	-170	74	47	317
Items that will not be reclassified to net income:
Equity instruments at fair value through OCI	307	-20	310	-52
Remeasurements of defined benefit pension plans	-3,820	-3,246	-2,253	4,759
Income taxes relating to items that will not be reclassified	783	671	461	-964
Other comprehensive income (OCI)	-4,478	-1,423	-3,280	7,022
Total comprehensive income	-7,196	-20,241	-2,383	-7,142
Net income attributable to:
Owners of the parent	-2,852	-18,801	303	-14,638
Non-controlling interests	134	-17	594	474
Total comprehensive income attributable to: Owners of the parent
Non-controlling interests	-7,096	-20,321	-2,927	-8,007
	-100	80	544	865
Earnings per share (SEK), basic and diluted	-0.73	-4.78	0.08	-3.63
of which from continuing operations, basic and diluted	-0.84	-4.65	-0.15	-3.56
Number of shares (thousands)
Outstanding at period-end 6	3,932,109	3,932,109	3,932,109	3,932,109
Weighted average, basic and diluted	3,932,109	3,937,141	3,932,109	4,035,313
Adjusted EBITDA 2, 16	7,491	6,977	30,254	28,954
Adjusted operating income 2, 16	2,374	2,152	10,862	10,847

Condensed consolidated statements of financial position

SEK in millions	Dec 31,	Dec 31,
Note	2023	2022
Assets
Goodwill and other intangible assets 5, 13	66,020	74,547
Property, plant and equipment 5, 13	70,181	74,824
Film and program rights, non-current	2,931	2,299
Right-of-use assets 5	16,823	16,549
Investments in associated companies and joint ventures, pension obligation assets and 9 other non-current assets	6,742	8,171
Deferred tax assets	1,183	1,071
Non-current interest-bearing receivables 7, 9	8,998	7,629
Total non-current assets	172,878	185,090
Film and program rights, current	2,851	3,022
Inventories	2,307	2,918
Trade and other receivables and current tax receivables 9	14,580	15,216
Current interest-bearing receivables 7, 9	13,896	9,676
Cash and cash equivalents 7	11,646	6,871
Assets classified as held for sale 14	8,310	-
Total current assets	53,590	37,703
Total assets	226,468	222,793
Equity and liabilities
Equity attributable to owners of the parent	53,468	64,239
Equity attributable to non-controlling interests	3,526	3,434
Total equity	56,994	67,673
Non-current borrowings 7, 9	98,497	94,555
Deferred tax liabilities	9,013	10,514
Provisions for pensions and other non-current provisions	5,710	5,022
Other non-current liabilities	2,098	2,289
Total non-current liabilities	115,317	112,379
Current borrowings 7, 9	14,069	7,007
Trade payables and other current liabilities, current tax payables and current provisions 12	35,920	35,734
Liabilities directly associated with assets classified as held for sale 12, 14	4,169	-
Total current liabilities	54,158	42,741
Total equity and liabilities	226,468	222,793

Condensed consolidated statements of cash flows

SEK in millions	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Note	2023	2022	2023	2022
Cash flow before change in working capital	7,957	8,072	31,053	30,294
Increase/decrease film and program right assets and liabilities1	993	462	168	-530
Increase/decrease other operating receivables, liabilities, and inventories	3,864	-352	-642	-205
Change in working capital	4,857	110	-474	-735
Amortization and impairment of film and program rights1	-1,758	-1,875	-5,908	-5,557
Cash flow from operating activities	11,057	6,307	24,671	24,001
of which from discontinued operations	524	385	1,432	1,523
Cash CAPEX	-3,838	-5,351	-15,466	-15,908
Free cash flow 16	7,218	956	9,204	8,094
of which from discontinued operations	313	106	631	761
Cash flow from other investing activities	-1,831	2,236	-6,591	5,971
Total cash flow from investing activities	-5,669	-3,115	-22,058	-9,936
of which from discontinued operations	-212	-278	-800	-762
Cash flow before financing activities	5,388	3,192	2,613	14,065
Cash flow from financing activities	-1,119	-6,094	2,653	-21,779
of which from discontinued operations	124	-26	-142	-201
Cash flow for the period	4,269	-2,902	5,266	-7,714
of which from discontinued operations	436	80	489	560
Cash and cash equivalents, opening balance	7,941	9,721	6,871	14,358
Cash flow for the period	4,269	-2,902	5,266	-7,714
Exchange rate differences in cash and cash equivalents	-446	52	-372	227
Cash and cash equivalents, closing balance	11,764	6,871	11,764	6,871
of which from continuing operations	11,646	6,871	11,646	6,871
of which from discontinued operations	118	-	118	-

See Note 16 section Operational free cash flow for further information.

1) Total cash outflow from acquired film and program rights is the total of Increase/decrease film and program right assets and liabilities and Amortization and impairment of film and program rights.

Condensed consolidated statements of changes in equity

SEK in millions	Owners of the parent	Non-controlling interests	Total equity
Opening balance, January 1, 2022	80,731	2,812	83,544
Dividends	-8,252	-433	-8,685
Share-based payments	20	-	20
Acquisition of treasury shares	-5,499	-	-5,499
Change in non-controlling interests	5,255	190	5,445
Total transactions with owners	-8,476	-243	-8,718
Total comprehensive income	-8,007	865	-7,142
Cash flow hedge transferred to assets	-10	-	-10
Closing balance, December 31, 2022	64,239	3,434	67,673
Dividends	-7,864	-452	-8,317
Share-based payments	24	-	24
Cancellation of treasury shares, net effect	-	-	-
Bonus issue, net effect	-	-	-
Total transactions with owners	-7,841	-452	-8,293
Total comprehensive income	-2,927	544	-2,383
Cash flow hedge transferred to assets	-3	-	-3
Closing balance, December 31, 2023	53,468	3,526	56,994

Note 1. Basis of preparation

General

The Telia Company group applies International Financial Reporting Standards (IFRSs) as adopted by the European Union. The parent company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act as well as standard RFR 2 Accounting for Legal Entities and other statements issued by the Swedish Financial Reporting Board. For the group this Interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and for the parent company in accordance with the Swedish Annual Accounts Act. The accounting policies adopted, and computation methods used are consistent with those followed in the Annual and Sustainability Report 2022 except for changes described below. All amounts in this report are presented in SEK millions, unless otherwise stated. Rounding differences may occur. If prior periods have been restated for comparability to reflect changes in financial and operational data, the changes are only described if material.

Changes in accounting principles

Classification of expenses by nature in Statement of comprehensive income

As of January 1, 2023, Telia Company has changed the presentation of the statement of comprehensive income from a classification of expenses by their function to a classification based on their nature. The new presentation is deemed to provide reliable and more relevant information as a classification of expenses by nature provides more useful information to users of the financial statements about the key components and drivers of Telia Company's profitability, it better represents the way the business is managed and how management reports internally and classification of expenses by nature is more commonly used in the Telco industry. Comparative information has been restated to present classification of expenses by nature.

The new line-item Goods and services purchased includes goods and sub-contracting services purchased, change in inventories, interconnect and roaming expenses as well as other network expenses. The new line-item Other external expenses includes marketing expenses, IT expenses and consultancy fees and other external expenses. Personnel restructuring costs and impairment losses of goodwill previously presented within line-item Other operating expenses have been reclassified to the new line items Personnel expenses and Depreciation, amortization and impairment respectively. The new line-item Depreciation, amortization and impairment relates to property, plant and equipment, intangible assets and right-of-use assets. Amortization and impairment of film and program rights are included in the line-item Goods and services purchased and amortization of costs to obtain a contract is included in the line-item Other external expenses. For more details related to 2022, see the Annual and Sustainability Report 2022 notes C7 Expenses by nature, C8 Other operating income and expenses and C32 Human resources. For definition of the subtotal EBITDA see section Definitions.

IFRS 17 Insurance contracts

The new standard IFRS 17 "Insurance contracts" became effective January 1, 2023 and has been implemented by Telia Company. The standard is applicable for Telia Company's insurance contracts issued to customers via the insurance company Telia Försäkring AB. The insurance contracts refer to property insurance related to equipment sold to customers. The coverage period for these insurance contracts is no more than one year and Telia Company accounts for these contracts applying the simplified Premium Allocation Approach (PAA) under which the insurance premiums received are recognized as a liability for remaining coverage and insurance revenue is recognized over the period when the insurance coverage is provided. Telia Company also applies the exceptions for insurance contracts with a short coverage period under which the liabilities for remaining coverage and incurred claims are not discounted. The implementation of IFRS 17 had no material impact on Telia Company's financial statements and the insurance operation is limited.

Amendments to IAS 12 "International tax reform – Pillar Two model rules"

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where Telia Company operates. The legislation will be effective for the group's financial year beginning January 1, 2024. Telia Company has applied the temporary exception from the accounting requirements for deferred taxes in IAS 12. Accordingly, Telia Company neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

Discontinued operations

Discontinued operations (Denmark)

Operations and network assets in Denmark to be sold are classified as held for sale and discontinued operations as of September 15, 2023. Discontinued operations (Denmark) are not included in the segment information in Note 3. Danish units that will not be sold are included in Other operations within continuing operations. For information on discontinued operations, see Note 14.

References

For more information regarding:

• Review of the group, see pages 6-7
• Significant events, see page 8
• Risks and uncertainties, see page 41

Restatement of financial and operational data

Disaggregation of revenue has been restated as presented in the following tables to reflect an updated internal product hierarchy as well as updated, and between markets harmonized, product definitions. The main changes performed are reclassification of revenue from Mobile end user revenue to Broadband as well as from Other fixed revenue to Business solutions.

Furthermore, as a result of various organizational changes, CAPEX excl. fees for licenses and spectrum and right-of-use assets and number of employees have been restated between segments for comparability.

Restatement of financial and operational data

					Oct-Dec 2022
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	-138	-165	0	-	-19	-	-	-	-322
Mobile interconnect	-	-	-	-	-	-	-	-	-
Other mobile service revenue	0	88	0	0	0	-	0	-	88
Mobile service revenue	-138	-78	0	-	-19	-	0	-	-235
Telephony	21	-4	-	-	-	-	-	-	17
Broadband	180	131	29	-	18	-0	-1	-	356
TV	-	-	-	-	-	-	-	-	-
Business solutions	245	245	-29	2	8	0	16	-	488
Other fixed service revenue	-308	-294	-0	-2	-7	0	-15	-	-626
Fixed service revenue	138	78	0	-	19	-	0	-	235
Advertising revenue	-	-	-	-	-	-	-	-	-
Other service revenue	0	0	0	0	-	-	-	-	0
Total service revenue	0	0	-	-	-	-	0	-	0
Equipment revenue	-	-	-	-	-	-	-	-	-
Total external revenue	0	0	-	-	-	-	0	-	0
Internal revenue	0	-4	-	-	-	0	35	-31	-
Total revenue	0	-4	-	-	-	-	35	-31	-
Subscriptions, (thousands)
Mobile	-201	-129	0	0	-34	0	0	0	-364
of which machine-to-machine
(postpaid)	0	0	0	0	0	0	0	0	-
Fixed telephony	33	0	15	0	0	0	0	0	48
Broadband	123	129	-3	0	34	0	0	0	283
TV	-80	0	10	0	0	0	0	0	-70

					Jan-Dec 2022
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	-536	-540	1	-	-73	-	-	-	-1,148
Mobile interconnect	-	-	-	-	-	-	-	-	-
Other mobile service revenue	0	291	-0	-	0	-	0	-	291
Mobile service revenue	-536	-249	1	-	-73	-	0	-	-857
Telephony	88	-17	-	-	-	-	-	-	71
Broadband	710	483	112	-	69	-1	-9	-	1,365
TV	-	-	-	-	-	-	-	-	-
Business solutions	786	754	-111	10	31	1	55	-	1,526
Other fixed service revenue	-1,048	-971	-2	-10	-27	0	-47	-	-2,105
Fixed service revenue	536	249	-1	-	73	-	0	-	857
Advertising revenue	-	-	-	-	-	-	-	-	-
Other service revenue	0	0	-	-	-	0	-	-	0
Total service revenue	0	0	-	-	-	-	0	-	0
Equipment revenue	-	-	-	-	-	-	-	-	-
Total external revenue	0	0	-	-	-	-	0	-	0
Internal revenue	0	-19	-	-	-	0	126	-107	-
Total revenue	0	-19	-	-	-	-	126	-107	-
Subscriptions, (thousands)
Mobile	-201	-129	0	0	-34	0	0	0	-364
of which machine-to-machine
(postpaid)	0	0	0	0	0	0	0	0	-
Fixed telephony	33	0	15	0	0	0	0	0	48
Broadband	123	129	-3	0	34	0	0	0	283
TV	-80	0	10	0	0	0	0	0	-70

Note 2. Adjustment items

Adjustment items within operating income, continuing operations

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Total within EBITDA1	-752	-292	-1,861	-824
Sweden	-38	-11	-186	-109
Finland	-33	-46	-144	-131
Norway	-403	-9	-534	-78
Lithuania	-9	-8	-35	-15
Estonia	-4	-2	-15	-9
TV and Media	-38	-17	-126	-30
Other operations	-211	-206	-747	-625
Subtotal	-736	-299	-1,785	-997
whereof personnel redundancy costs	-160	-15	-649	-210
whereof consultant costs including transformation and integration	-100	-133	-397	-400
whereof IT costs including transformation	-62	-83	-224	-222
whereof other	-414	-68	-515	-165
Capital gains/losses	-17	6	-76	173
Within Depreciation, amortization and impairment losses2	-4,020	-19,238	-4,020	-19,238
Within Income from associated companies and joint ventures	-	-	-	-
Total adjustment items within operating income	-4,773	-19,530	-5,882	-20,062

1) Adjustment items affecting EBITDA in the fourth quarter and full year 2023 include the VAT dispute provision in Norway, see Note 10, and higher personnel redundance costs. 2) Fourth quarter and full year 2023 include impairments related to goodwill in Finland and TV and Media as well as impairment related to copper network assets in Sweden, see note 13. Fourth quarter and full year 2022 include impairments related to goodwill in Finland, Norway, and Latvia as well as impairments of the C More brand in TV and Media and copper network assets in Sweden.

Adjustment items within EBITDA, discontinued operations

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK in millions	2023	2022	2023	2022
Total adjustment items within EBITDA, discontinued operations	210	-65	237	-88

Note 3. Segment information

Operations and network assets in Denmark to be sold are classified as held for sale and discontinued operations as of September 15, 2023 and are therefore not included in the segment information. Danish units that will not be sold are included in Other operations within continuing operations. Comparative segment information has been restated except for segment assets and segment liabilities. For information on discontinued operations, see Note 14.

SEK in millions	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
	2023	2022	2023	2022
Revenue
Sweden	9,202	9,225	35,869	35,112
of which external	9,162	9,201	35,717	35,034
Finland1	4,310	4,178	16,545	15,171
of which external	4,255	4,124	16,342	14,998
Norway	3,769	3,851	15,114	15,022
of which external	3,714	3,830	14,842	14,967
Lithuania	1,440	1,297	5,516	4,784
of which external	1,434	1,292	5,492	4,763
Estonia	1,094	980	4,145	3,637
of which external	1,091	976	4,129	3,625
TV and Media	2,379	2,567	8,386	8,829
of which external	2,372	2,564	8,359	8,826
Other operations	1,385	1,187	5,025	4,330
Total segments1	23,580	23,285	90,599	86,885
Eliminations1	-482	-391	-1,814	-1,304
Group	23,098	22,894	88,785	85,580
Adjusted EBITDA
Sweden	3,435	3,419	13,615	13,508
Finland	1,246	1,063	5,093	4,443
Norway	1,705	1,647	7,062	6,750
Lithuania	483	453	2,019	1,688
Estonia	401	341	1,618	1,330
TV and Media1	20	-112	-225	276
Other operations1	200	166	1,072	959
Total segments	7,491	6,977	30,254	28,954
Eliminations	-	-	-	-
Group	7,491	6,977	30,254	28,954
Operating income
Sweden	1,389	1,005	6,226	5,891
Finland	-2,561	-9,385	-1,574	-8,716
Norway	145	-7,888	2,197	-5,851
Lithuania	251	237	1,115	850
Estonia	240	154	999	734
TV and Media1	-1,193	-634	-2,149	-852
Other operations1	-670	-869	-1,833	-1,271
Total segments	-2,398	-17,379	4,980	-9,214
Eliminations	-	-	-	-
Group	-2,398	-17,379	4,980	-9,214
Financial items, net	-901	-826	-3,876	-3,340
Income after financial items	-3,300	-18,205	1,105	-12,555

1) Restated, see Note 1.

	Dec 31, 2023	Dec 31, 2023	Dec 31, 2022	Dec 31, 2022
SEK in millions	Segment assets	Segment liabilities	Segment assets	Segment liabilities
Sweden	48,253	15,291	46,760	13,351
Finland	35,381	5,134	38,303	5,224
Norway	46,057	7,087	49,722	7,327
Denmark	-	-	7,772	2,815
Lithuania	7,403	1,432	7,498	1,975
Estonia	6,269	1,069	6,310	1,382
TV and Media	12,125	3,438	13,348	3,381
Other operations	26,009	7,726	26,570	8,072
Total segments	181,496	41,176	196,283	43,527
Assets and liabilities held for sale (Denmark)	8,310	4,169	-	-
Unallocated	36,662	124,129	26,510	111,593
Total assets/liabilities, group	226,468	169,475	222,793	155,120

Note 4. Revenue

					Oct-Dec 2023
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	3,131	1,714	1,838	475	305	-	445	-	7,910
Mobile interconnect	121	72	97	22	14	-	3	-	330
Other mobile service revenue	166	343	285	8	4	-	7	-	813
Mobile service revenue	3,418	2,130	2,221	505	324	-	455	-	9,053
Telephony	254	12	12	38	22	-	-	-	337
Broadband	1,481	303	411	223	205	-	-	-	2,623
TV	672	161	415	109	89	775	-	-	2,220
Business solutions	962	914	89	104	108	1	13	-	2,191
Other fixed service revenue	763	110	9	91	142	0	-	-	1,115
Fixed service revenue	4,132	1,500	937	565	565	775	13	-	8,487
Advertising revenue	-	-	-	-	-	1,554	-	-	1,554
Other service revenue	267	56	31	5	1	42	170	-	572
Total service revenue1	7,816	3,687	3,188	1,074	890	2,372	639	-	19,666
Equipment revenue1	1,346	568	525	360	201	-	432	-	3,432
Total external revenue	9,162	4,255	3,714	1,434	1,091	2,372	1,071	-	23,098
Internal revenue	40	55	55	6	4	7	315	-482	-
Total revenue	9,202	4,310	3,769	1,440	1,094	2,379	1,385	-482	23,098

1) In all material aspects, equipment revenue is recognized at a point in time and service revenue over time.

					Oct-Dec 20222
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	3,104	1,545	1,866	400	271	-	407	-	7,593
Mobile interconnect	125	85	111	27	17	-	8	-	372
Other mobile service revenue	138	302	222	7	4	-	4	-	677
Mobile service revenue	3,367	1,932	2,200	433	292	-	420	-	8,643
Telephony	324	11	21	41	22	-	-	-	419
Broadband	1,404	278	421	192	187	-	-	-	2,482
TV	556	148	429	101	82	721	-	-	2,038
Business solutions	918	879	89	97	95	0	16	-	2,095
Other fixed service revenue	766	112	29	104	111	0	-	-	1,123
Fixed service revenue	3,969	1,428	987	536	498	721	16	-	8,156
Advertising revenue	-	-	-	-	-	1,786	-	-	1,786
Other service revenue	261	58	36	4	1	58	121	-	538
Total service revenue1	7,597	3,418	3,223	972	791	2,564	557	-	19,123
Equipment revenue1	1,604	707	607	320	186	-	348	-	3,772
Total external revenue	9,201	4,124	3,830	1,292	976	2,564	905	-	22,894
Internal revenue	24	54	21	5	3	2	282	-391	0
Total revenue	9,225	4,178	3,851	1,297	980	2,567	1,187	-391	22,894

1) In all material aspects, equipment revenue is recognized at a point in time and service revenue over time. 2) Restated, see Note 1.

					Jan-Dec 2023
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	12,412	6,605	7,444	1,808	1,198	-	1,760	-	31,227
Mobile interconnect	477	292	396	81	54	-	58	-	1,358
Other mobile service revenue	620	1,261	1,048	31	20	-	34	-	3,013
Mobile service revenue	13,509	8,158	8,888	1,919	1,272	-	1,852	-	35,598
Telephony	1,105	48	56	157	90	-	0	-	1,455
Broadband	5,805	1,168	1,678	860	804	-	-	-	10,315
TV	2,469	604	1,703	430	350	2,974	-	-	8,530
Business solutions	3,655	3,474	348	428	410	1	51	-	8,368
Other fixed service revenue	2,871	399	47	444	527	0	0	-	4,288
Fixed service revenue	15,906	5,694	3,832	2,319	2,181	2,974	51	-	32,956
Advertising revenue	-	-	-	-	-	5,192	-	-	5,192
Other service revenue	987	229	135	20	3	193	599	-	2,166
Total service revenue1	30,401	14,081	12,854	4,259	3,456	8,359	2,502	-	75,912
Equipment revenue1	5,316	2,261	1,987	1,234	673	-	1,402	-	12,872
Total external revenue	35,717	16,342	14,842	5,492	4,129	8,359	3,903	-	88,784
Internal revenue	152	203	272	24	16	26	1,121	-1,815	0
Total revenue	35,869	16,545	15,114	5,516	4,145	8,386	5,025	-1,814	88,785

1) In all material aspects, equipment revenue is recognized at a point in time and service revenue over time.

					Jan-Dec 20222
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	12,317	5,990	7,460	1,481	1,007	-	1,505	-	29,761
Mobile interconnect	479	331	438	111	65	-	83	-	1,507
Other mobile service revenue	564	1,035	807	35	17	-	38	-	2,496
Mobile service revenue	13,360	7,356	8,706	1,627	1,089	-	1,626	-	33,764
Telephony	1,385	42	97	167	92	-	1	-	1,784
Broadband	5,587	1,094	1,690	714	708	-	-	-	9,792
TV	2,265	550	1,701	399	312	2,831	-	-	8,060
Business solutions	3,437	3,148	338	334	351	1	56	-	7,665
Other fixed service revenue	2,824	361	110	409	432	0	0	-	4,136
Fixed service revenue	15,498	5,195	3,936	2,023	1,896	2,832	57	-	31,436
Advertising revenue	-	-	-	-	-	5,820	-	-	5,820
Other service revenue	994	231	161	13	8	175	445	-	2,027
Total service revenue1	29,852	12,782	12,803	3,663	2,994	8,826	2,127	-	73,047
Equipment revenue1	5,182	2,216	2,164	1,099	631	-	1,241	-	12,533
Total external revenue	35,034	14,998	14,967	4,763	3,625	8,826	3,368	-	85,580
Internal revenue	78	174	55	21	12	3	961	-1,305	0
Total revenue	35,112	15,171	15,022	4,784	3,637	8,829	4,330	-1,304	85,580

1) In all material aspects, equipment revenue is recognized at a point in time and service revenue over time. 2) Restated, see Note 1.

Note 5.

Investments

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
CAPEX	5,563	6,528	20,662	19,789
Intangible assets	779	1,051	4,682	3,810
Property, plant and equipment	2,787	3,747	10,520	11,867
Right-of-use assets	1,998	1,729	5,460	4,112
Acquisitions and other investments	1,071	162	1,719	305
Asset retirement obligations	1,071	162	1,563	228
Goodwill, intangible and tangible non-current assets and right-of-use assets acquired in business combinations	0	0	26	0
Equity instruments	0	0	130	77
Total investments, continuing operations	6,635	6,690	22,381	20,095
Total investments, discontinued operations	219	572	1,094	1,316
of which CAPEX	263	578	1,136	1,319
Total investments	6,853	7,262	23,475	21,410
of which CAPEX	5,826	7,105	21,798	21,108

Note 6. Treasury shares

As of December 31, 2022, Telia Company held 157,522,416 treasury shares and the total number of issued and outstanding shares was 4,089,631,702 and 3,932,109,286 respectively. The annual general meeting held on April 5, 2023, approved a reduction of the share capital of SEK -534 million by way of cancellation of all treasury shares held and a corresponding increase of the share capital of SEK 534 million by way of bonus issue, which were executed during the second quarter of 2023. As of December 31, 2023, Telia Company did not hold any treasury shares and the total number of issued and outstanding shares was 3,932,109,286.

Note 7. Net debt

Net debt presented below is based on both continuing and discontinued operations.

SEK in millions	Dec 31, 2023	Dec 31, 2022
Non-current borrowings	99,589	94,555
of which lease liabilities, non-current	15,264	13,971
Less 50% of hybrid capital1	-9,418	-9,962
Current borrowings	14,286	7,007
of which lease liabilities, current	3,372	3,261
Less derivatives recognized as financial assets and hedging non-current and current borrowings and related credit support annex (CSA)	-6,424	-7,373
Less non-current bonds and interest rates derivatives at fair value through income statement and OCI	-5,416	-3,698
Short-term investments	-7,095	-2,261
Less cash and cash equivalents	-11,764	-6,871
Net debt	73,758	71,397

1) 50% of hybrid capital is treated as equity, consistent with market practice for this type of instrument, and reduces net debt.

Derivatives recognized as financial assets and hedging non-current and current borrowings and related credit support annex (CSA) are part of the balance sheet line-items Non-current interest-bearing receivables and Current interest-bearing receivables. Hybrid capital, calculated as nominal amount, is part of the balance sheet line-item Non-current

borrowings. Non-current bonds at fair value through income statement and Other comprehensive income (OCI) are part of the balance sheet line-item Non-current interest-bearing receivables. Short-term investments are part of the balance sheet line-item Current interestbearing receivables.

Note 8. Loan financing and credit rating

In February 2023, Telia Company issued a 9-year bond of EUR 500 million (SEK 5.6 billion) to a yield of 3.799 percent and with a coupon of 3.625 percent, maturing in February 2032.

In March 2023, Telia Company issued bonds with a total amount of SEK 4 billion. The bonds were separated in two maturities with a fixed and floating tranche on each, in total SEK 2 billion maturing in March 2026, and in total SEK 2 billion maturing in September 2028. The coupon of the 3-year bond was set at 4.375 percent per annum for the fixed tranche, corresponding to a yield of 4.39 percent, and Mid-swaps +73 basis points for the floating tranche. The coupon of the 5.5-year bond was set at 4.375 percent per annum for the fixed tranche corresponding to a yield of 4.42 percent, and Mid-swaps +110 basis points for the floating tranche.

During November 2023 Telia Company issued bonds in total of NOK 4 billion (SEK 3.9 billion). The bonds were separated in two maturities, NOK 2 billion maturing in March 2029 with both a fixed and a floating rate tranche, and NOK 2 billion maturing in March 2034 with a fixed rate tranche. The coupon of the 5,25-year bond was set at 4,675 percent per annum for the fixed tranche, corresponding to a yield of 4.67 percent, and 3M Nibor +105 basis points for the floating tranche. The coupon of the 10,25-year bond was set at 4,790 percent per annum with the same yield.

All the bonds were issued under Telia's existing EUR 12 billion EMTN (Euro Medium Term Note) program. The proceeds from the issues will partly be used to refinance senior debt.

During April 2023, Telia Company issued commercial papers with a total nominal amount of SEK 1.0 billion under the existing short-term commercial paper program. The commercial papers were repaid in full in December 2023.

During the year outstanding bonds with a nominal amount of SEK 3.4 billion, of which hybrid bonds EUR 100 million (SEK 1.2 billion), were repaid.

The banking sector turbulence present in the first quarter of 2023 that led to strains on the financial markets has stabilized. Telia Company has good access to capital via European Debt Capital markets and via commercial paper market if any funding need would be identified.

The sustainability linked Revolving Credit Facility of EUR 1,200 million (SEK 13.3 billion) signed in the third quarter of 2022 with a group of twelve relationship banks was prolonged for another year during the third quarter of 2023, utilizing one of the two extension options of one year each, subject to approval of the lenders. This means that the credit facility still has a tenor of 5 years and is fully eligible under the rating agencies' liquidity models. The loan facility has a clear connection to Telia's sustainability strategy, since the loan margin is linked to Telia's sustainability performance within climate, diversity and digital skills.

The credit rating of Telia Company remained unchanged during the fourth quarter of 2023. Moody's rating for long-term borrowings is Baa1 with a stable outlook. The Standard & Poor long-term rating is BBB+ and the short-term rating is A-2, both with a stable outlook.

Note 9. Financial instruments – fair values

	Dec 31, 2023		Dec 31, 2022
Financial liabilities SEK in millions	Carrying	Fair	Carrying	Fair
	value	value	value	value
Non-current borrowings
Euro Medium Term Notes Program (EMTN)	57,014	62,115	52,658	56,689
Hybrid bonds	18,425	19,446	18,076	19,030
Other bilateral	1,918	2,159	1,880	2,054
Bank loans	805	805	413	413
Lease liabilities	14,511		13,971
Interest rate swaps	5,600	5,600	7,078	7,078
Cross currency interest rate swaps	153	153	170	170
Other non-current borrowings	71	71	309	309
Total non-current borrowings	98,497		94,555
Current borrowings
Euro Medium Term Notes Program (EMTN)	9,900	10,055	1,533	1,547
Hybrid bonds	-	-	1,127	1,135
Bank loans	579	579	857	857
Lease liabilities	3,156		3,261
Interest rate swaps	433	433	50	50
Cross-currency interest rate swaps	-	-	179	179
Other current borrowings	2	2	-	-
Total non-current borrowings	14,069		7,007
Total borrowings	112,566		101,561
Other non-current financial liabilities
Derivatives (at fair value)	5	5	7	7
License fee liabilities and other non-current financial liabilities	1,664	1,664	1,819	1,819
Total other non-current financial liabilities	1,670	1,670	1,825	1,825
Other current financial liabilities
Derivatives (at fair value)	216	216	67	67
Accounts payable and other current financial liabilities	23,384	23,384	24,065	24,065
Total other current financial liabilities	23,600	23,600	24,132	24,132

Other non-current financial liabilities are part of the line item Other non-current liabilities and Other current financial liabilities are part of the line item Trade payables and other current liabilities, current tax payables and current provisions in the statement of financial position. For financial assets not measured at fair value in the statement of financial position, the carrying amounts are deemed reasonable approximations of their respective fair values. For information on fair value estimation, see the Annual and sustainability report 2022, Note C3.

	Dec 31, 2023			Dec 31, 2022
Financial assets and liabilities by fair value hierarchy level	of which			of which
SEK in millions	Carrying	Level	Level	Level	Carrying	Level	Level	Level
	value	1	2	3	value	1	2	3
Financial assets at fair value
Equity instruments	917	-	-	917	619	4	-	614
Non-current and current bonds	12,925	12,925	-	-	6,010	6,010	-	-
Derivatives	3,191	-	3,191	-	2,342	-	2,342	-
Total financial assets at fair value by level	17,032	12,925	3,191	917	8,971	6,015	2,342	614
Financial liabilities at fair value
Derivatives	6,407	-	6,407	-	7,550	-	7,550	-
Total financial liabilities at fair value by level	6,407	-	6,407	-	7,550	-	7,550	-

There were no material transfers between Level 1, 2 or 3 in 2023 or 2022. For information on fair value hierarchy levels and fair value estimation, see the Annual and Sustainability report 2022 Note C3 and section below.

Fair value measurement of Level 3 financial instruments

Investments classified within Level 3 make use of significant unobservable inputs in deriving fair value, as they trade infrequently. As observable prices are not available for these equity instruments, Telia Company has a market approach to derive the fair value. Telia Company's primary valuation technique used for estimating the fair value of unlisted equity instruments in Level 3 is based on the most recent transaction for the specific company if such transaction has been recently made. If there have been significant changes in circumstances between the transaction date and the balance sheet date, that in the assessment of Telia Company, would have a material impact on the fair value, the carrying value is adjusted to reflect the changes. The table below presents the movement in Level 3 instruments during the year.

Movements within Level 3, fair value hierarchy SEK in millions	Equity instruments Jan-Dec 2023	Equity instruments Jan-Dec 2022
Level 3, opening balance	614	594
Changes in fair value	302	-46
of which recognized in net income	-4	-
of which recognized in other comprehensive income	307	-46
Purchases/share issue	15	77
Disposals	-2	-10
Settlements	-13	-3
Exchange rate differences	0	3
Level 3, closing balance	917	614

The fair value change in 2023 recognized in other comprehensive income of SEK 307 million relates to revaluation of Telia Company's 9.56% holding in Marshall Group AB. The investment was revalued to an estimated fair value of SEK 427 million in the fourth quarter 2023 based on the share price of SEK 415 in the most recent larger transaction made for Marshall Group AB finalized in October 2023.

Note 10. Contingent liabilities, collateral pledged and litigations

SEK in millions	Dec 31, 2023	Dec 31, 2022
Issued financial guarantees	347	322
of which referred to guarantees for pension obligations	346	321
Collateral pledged	0	40
Total contingent liabilities and collateral pledged	347	363

As disclosed in the Annual and Sustainability Report 2022, the Norwegian Tax Administration (NTA) has performed a VAT audit investigating the treatment of the supply of electronic news services during the years 2016-2018 in GET AS, which was acquired by Telia Company in 2018. NTA has in the second quarter 2023 issued a decision requesting Telia Company to pay an amount of approximately SEK 0.3 billion which in the fourth quarter has been appealed by Telia Company. Following the appeal Telia Company has applied for respite with any payment until case has been resolved in court. If payment respite is not received, Telia Company will be required to pay the amount in 2024. According to transaction warranties Telia Company has a right to reclaim SEK 138 million for tax payments made related to periods before the GET acquisition. NTA has in the fourth quarter 2023 expanded the VAT audit to also cover the years 2019-2022. As a result of Telia Company's updated risk assessment a total provision of SEK 419 million has been recognized (September 30, 2023 SEK 46 million), whereof SEK 279 million is classified as non-current. New Norwegian VAT legislation has been implemented as of January 1, 2023, which limits the exposure to the years 2016 – 2022.

NTA has in the fourth quarter issued a notification to Telia Finance Norwegian Branch (TFN) relating to the tax depreciation period for purchased equipment in TFN during the years 2020-2022. The NTA notification has been appealed but based on Telia Company's risk assessment performed in the fourth quarter 2023, an increase of current tax liabilities of SEK 212 million has been recognized, with a corresponding net income tax expense of SEK 117 million and a deferred tax liability reversal of SEK 95 million.

The Finnish Tax Agency has in 2022 issued a decision requesting Telia Company to pay Real Estate Transfer Tax of approximately SEK 0.2 billion, related to a share transaction in 2019 involving Telia Towers Finland Oy. The Finnish Supreme Administrative Court has in the second quarter 2023 confirmed that Telia Towers Finland Oy is not to be classified as a Real estate company. The Finnish Tax Agency has on July 5, 2023, decided to revoke its entire previous claim on Telia Company.

For other ongoing legal proceedings, see Note C30 in the Annual and Sustainability Report 2022.

Note 11. Contractual obligations and commitments

SEK in millions	Dec 31, 2023	Dec 31, 2022
Contractual obligations and commitments	15,672	18,479
of which film and program rights	10,785	13,516
Total contractual obligations and commitments	15,672	18,479

Note 12. Accounts payable

SEK in millions	Dec 31, 2023	Dec 31, 2022
Accounts payable, continuing operations	17,681	20,286
of which accounts payable under vendor financing agreements	11,527	11,413
Accounts payable, discontinued operations	469	-
of which accounts payable under vendor financing agreements	4	-
Total accounts payable	18,150	20,286

As disclosed in the Annual and sustainability report 2022, Telia Company has arrangements with several banks under which the banks offer Telia Company's vendors the option to receive earlier payment of Telia Company's accounts payable. Vendors utilizing these financing arrangements pay a credit fee to the bank. From the second quarter 2023 the vendor financing portfolio also includes arrangements where the supplier issues a trade finance instrument, subsequently assigned to a bank specified by the supplier, and offers Telia Company to extend the payments terms in exchange for a price increase consideration paid by Telia Company. All arrangements in the vendor financing portfolio provide earlier payment for the vendors and extended payment terms for Telia Company. Due dates for the payables within the vendor financing arrangements are 50-360 days after invoice date, with the majority of the outstanding balance closer to 360 days. Other accounts payable outside the vendor financing arrangements have payment due dates 30-90 days after invoice date. Telia Company uses all of the arrangements in the vendor financing portfolio as integrated parts of the commercial relationships with the vendors and the liabilities are part of the working capital in Telia Company's normal operating cycle. Telia Company does not provide any additional collateral or guarantees to the banks. Based on Telia Company's assessment the liabilities under the vendor financing arrangements are closely related to operating purchase activities and the financing arrangement does not lead to any significant change in the nature or function of the liabilities. The liabilities in the vendor financing portfolio are therefore classified as accounts payable. The credit period does not exceed 12 months and the accounts payable are therefore not discounted. The total vendor financing balance is divided between five banks, where the bank with the largest balance represents 30%.

Note 13. Impairment tests

Based on the impairment tests performed in the fourth quarter 2023 a total goodwill impairment of SEK 3,700 million has been recognized. The goodwill impairment and the carrying value of goodwill were distributed by reportable segments and cash generating units as follows:

Goodwill			Carrying	Carrying
	Impairment	Impairment	value Dec 31,	value Dec 31,
SEK in millions	2023	2022	2023	2022
Sweden	-	-	2,047	2,047
Finland	2,800	9,500	16,158	19,027
Norway	-	8,500	17,858	19,069
Denmark	-	600	-	1,857
Lithuania	-	-	3,124	3,121
Estonia	-	-	2,840	2,837
TV and Media	900	-	556	1,456
Other operations	-	500	1,194	1,168
of which Latvia	-	500	969	943
of which Other	-	-	225	225
Total	3,700	19,100	43,777	50,583

The impairment tests reflect an updated view of market conditions, the regulatory environment and investment plans. This updated view has resulted in a need for impairment of goodwill relating to Finland and TV and Media. The recoverable amounts for these cash generating units as of December 31, 2023, amounted to SEK 32,835 million for Finland and SEK 8,892 million for TV and Media. The impairment test for the cash generating unit Norway has not identified any impairment need as of December 31, 2023, however the estimated recoverable amount was in the proximity of the carrying value as of December 31, 2023, and the CGU is sensitive to changes in WACC or the assumptions in the longterm plan.

The recoverable amounts for Finland, Norway and TV and Media have been determined based on value in use, applying discounted cash flow calculations. The value in use calculations were based on forecasts approved by management. The key assumptions used in the value in use calculations are presented in the tables below. Management believes the terminal growth rates do not exceed the average growth rates for markets in which Telia Company operates.

Years/Percent	Finland	Norway	TV and Media
Forecast period (years)	5	5	5
Post-tax WACC rate (%)	5.7	6.5	7.9
Pre-tax WACC rate (%)	7.3	8.3	9.6
Terminal growth rate of free cash flow (%)	2.0	2.0	2.0

5-year period/Percent	Finland	Norway	TV and Media
Sales growth, lowest in period (%)	0.9	-0.1	-0.4
Sales growth, highest in period (%)	2.3	2.2	8.1
Adjusted EBITDA margin, lowest in period (%)	30.6	46.2	2.1
Adjusted EBITDA margin, highest in period (%)	33.2	47.2	15.8
CAPEX1 -to-sales, lowest in period (%)	13.9	18.0	0.9
CAPEX1 -to-sales, highest in period (%)	15.8	21.1	3.4

1) CAPEX excluding right of use assets.

Sensitivity analysis

The upper part of the following table sets out how many percentage points each key assumption must change, all else being equal, in order for the recoverable value to equal carrying value. The lower part of the table first shows the SEK billion effect on the

recoverable value of the cash generating unit, should there be a one percentage point upward shift in WACC. Finally, it sets out the absolute SEK billion change of the recoverable value that would equal carrying value.

5-year period/Percent	Finland	Norway	TV and Media
Sales growth each year in the 5-year period (%)	0.0	-1.9	0.0
Adjusted EBITDA margin each year in the 5-year period and beyond (%)	0.0	-3.8	0.0
CAPEX1 -to-sales ratio each year in the 5-year period and beyond (%)	0.0	8.3	0.0
Terminal growth rate (%)	0.0	2.4	0.0
Post-tax WACC rate (%)	0.0	1.0	0.0
Effect of a one percentage-point upward shift in WACC (SEK in billions)	-3.9	-5.5	-0.9
Change in the recoverable value to equal the carrying value (SEK in billions)	0.0	-5.5	0.0

1) CAPEX excluding right of use assets

Copper Network assets and other tangible and intangible assets

The copper network in segment Sweden is expected to be dismantled by the end of 2026. In the fourth quarter 2023 the copper dismantling plan has been further reviewed and updated, which resulted in an increase of the related ARO provision of SEK 243 million, with a corresponding increase of the copper network assets. An impairment test has also been performed based on the updated dismantling plan resulting in an impairment of SEK 243 million of the Swedish copper network assets in the fourth quarter 2023. The impairment refers to segment Sweden and after the impairment the carrying value of the Swedish copper network assets amounts to SEK 295 million. The copper network assets are classified as Property and Plant and machinery within Property, plant and equipment in the statement of financial position.

In addition, as results of assessments performed, impairments of SEK 119 million have been recognized, whereof 44 million related to Property, plant and equipment, mainly in Sweden and Norway, and SEK 75 million related to Other intangible assets (capitalized development expenses) in Other operations.

For more information on impairment tests, see Annual and sustainability report 2022.

Note 14. Assets held for sale and discontinued operations

Discontinued operations

On September 15, 2023 Telia Company signed the final and binding sales agreement for the sale of the operations and network assets in Denmark to Norlys a.m.b.a. (Norlys) at an enterprise value of DKK 6.25 billion (approximately SEK 9.5 billion), on a cash and debt-free basis. The valuation is equivalent to 8.9x previous segment Telia Denmark's 2022 reported EBITDA. The transaction is subject to approval from Norlys' owners (which was received in September) and customary regulatory approvals, with closing expected around the end of the first quarter 2024. The transaction is in line with Telia's strategy to focus on markets where there is a clear path to securing and defending leading market positions. Norlys is Denmark's largest integrated energy and telecommunications group. Telia intends to use the transaction proceeds for deleveraging purposes.

Based on the signed, final, binding sales agreement the sale is deemed highly probable within one year and the operations and network assets in Denmark to be sold were therefore classified as held for sale and discontinued operations as of September 15, 2023. Danish units that will not be sold are included in Other operations within continuing operations.

The consolidated statements of comprehensive income for current and comparative periods reflect the split into continuing and discontinued operations, i.e. comparative periods have been restated. The consolidated cash flow statements for current and comparative periods present cash flows for the total group, but with additional information on cash flows from discontinued operations. Operational free cash flow for the group includes only cash flow from continuing operations. The consolidated statement of financial position as of December 31, 2023 presents assets and liabilities to be disposed as held for sale, but comparative periods are not restated. The amounts for continuing and discontinued operations in the consolidated financial statements are presented after elimination of intra group transactions and balances.

Net income from discontinued operations (Denmark)

SEK in millions, except per share data	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Revenue	1,543	1,367	5,679	5,247
Expenses and other operating income, net	-982	-1,861	-4,639	-5,449
Operating income	562	-495	1,040	-202
Financial items, net	-13	-16	-34	-25
Income after financial items	548	-510	1,005	-227
Income taxes	-105	-1	-113	-27
Net income from discontinued operations	444	-512	891	-255
Adjusted EBITDA	351	397	1,473	1,374
EPS from discontinued operations (SEK)	0.11	-0.13	0.23	-0.06

Assets classified as held for sale (Denmark)

SEK in millions	Dec 31, 2023	Dec 31, 2022
Goodwill and other intangible assets	3,198	-
Property, plant and equipment	2,566	-
Right-of-use assets	1,057	-
Other non-current assets	216	-
Other current assets	1,155	-
Cash and cash equivalents	118	-
Assets classified as held for sale	8,310	-
Non-current borrowings	1,092	-
Non-current provisions	188	-
Other non-current liabilities	1,200	-
Current borrowings	217	-
Other current liabilities	1,472	-
Liabilities associated with assets classified as held for sale	4,169	-
Net assets classified as held for sale	4,141	-

Note 15. Financial key ratios

The key ratios presented in the table below are based on both continuing and discontinued operations.

	Dec 31, 2023	Dec 31, 2022
Return on equity (%, rolling 12 months)1	0.6	neg.
Return on capital employed (%, rolling 12 months)1	5.2	neg.
Equity/assets ratio (%)1	21.7	26.8
Net debt/adjusted EBITDA ratio (multiple, rolling 12 months)	2.32	2.35
Parent owners' equity per share (SEK)1	13.60	16.34

1) Equity is adjusted by weighted dividend, see the Annual and Sustainability Report 2022 section Definitions for key ratio definitions.

Note 16. Alternative performance measurements

In addition to financial performance measures prepared in accordance with IFRS, Telia Company presents non-IFRS financial performance measures. These alternative measures are considered to be important performance indicators for investors and other users of the Interim report. The alternative performance measures should be considered as a complement to, but not a substitute for, the information prepared in accordance with IFRS. Telia Company's definitions of these non-IFRS measures are described in the Annual and Sustainability Report 2022. These terms may be defined differently by other companies and are therefore not always comparable to similar measures used by other companies.

Service revenue

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Revenue	23,098	22,894	88,785	85,580
Excluded: Equipment revenue	-3,432	-3,772	-12,872	-12,533
Service revenue (external)	19,666	19,123	75,912	73,047
Excluded: Effects from changes in foreign exchange rates1	-384	-167	-1,363	0
Excluded: Effects from acquired and disposed operations	-21	-11	-63	-54
Service revenue on a like-for-like basis2	19,261	18,945	74,486	72,993
Change (%) like for like	1.7		2.0
of which Telco operations	16,933	16,394	66,273	64,167
Change (%) like for like, Telco operations	3.3		3.3
of which TV and Media	2,327	2,551	8,213	8,826

1) Changes in foreign exchange rates refers to full year average rates prior year. 2) Like for like excludes exchange rate effects and is based on the current group structure, i.e. including the impact of any acquired operations and excluding the impact of any disposed operations, both in the current and in the comparable period. See also section Definitions.

Adjusted EBITDA

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
EBITDA	6,738	6,684	28,392	28,131
Adjustment items within EBITDA (Note 2)	752	292	1,861	824
Adjusted EBITDA	7,491	6,977	30,254	28,954
Excluded: Effects from changes in foreign exchange rates1	-74	-59	-329	0
Excluded: Effects from acquired and disposed operations	13	4	55	-5
Adjusted EBITDA on a like-for-like basis2	7,430	6,922	29,979	28,949
Change (%) like for like	7.3		3.6
of which Telco operations	7,413	7,033	30,200	28,672
Change (%) like for like, Telco operations	5.4		5.3
of which TV and Media	18	-112	-221	276
Excluded: Impact from energy cost changes3	-192		-121
Adjusted EBITDA on a like-for-like basis2 excluding impact from energy cost changes3	7,238	6,922	29,858	28,949

1) Changes in foreign exchange rates refers to full year average rates prior year. 2) Like for like excludes exchange rate effects and is based on the current group structure, i.e. including the impact of any acquired operations and excluding the impact of any disposed operations, both in the current and in the comparable period. See also section Definitions. 3) Energy cost changes in 2023 compared to 2022.

Adjusted operating income

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Operating income	-2,398	-17,379	4,980	-9,214
Adjustment items within Operating income (Note 2)	4,772	19,530	5,882	20,062
Adjusted operating income	2,374	2,152	10,862	10,847

CAPEX, Cash CAPEX and Cash CAPEX in relation to Revenue (continuing operations)

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Investments in intangible assets	779	1,051	4,682	3,810
Investments in property, plant and equipment	2,787	3,747	10,520	11,867
CAPEX excluding right of use assets	3,565	4,798	15,202	15,677
Investments in right-of-use assets	1,998	1,729	5,460	4,112
CAPEX	5,563	6,528	20,662	19,789
Excluded: Investments in license and spectrum fees and right-of-use assets	-1,998	-1,754	-7,033	-4,522
CAPEX excluding fees for licenses and spectrum and right of use assets	3,565	4,773	13,628	15,266

SEK in millions, except ratio	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
CAPEX	5,563	6,528	20,662	19,789
Excluded: investments in right-of-use assets	-1,998	-1,729	-5,460	-4,112
Net of not paid investments and additional payments from previous periods	61	274	-536	-531
Cash CAPEX	3,627	5,072	14,666	15,146
Excluded: Cash CAPEX for licenses and spectrum fees	-777	-26	-1,039	-449
Cash CAPEX, excluding fees for licenses and spectrum	2,850	5,046	13,627	14,697
Revenue	23,098	22,894	88,785	85,580
Cash CAPEX, excluding fees for licenses and spectrum in relation to Revenue (%)	12.3	22.0	15.3	17.2

Free cash flow (continuing and discontinued operations)

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Cash flow from operating activities	11,057	6,307	24,671	24,001
Cash CAPEX (paid intangible and tangible assets)	-3,838	-5,351	-15,466	-15,908
Free cash flow	7,218	956	9,204	8,094

Operational free cash flow and Structural part of Operational free cash flow (continuing operations)

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Cash flow from operating activities	10,532	5,922	23,239	22,478
Cash CAPEX	-3,627	-5,072	-14,666	-15,146
Free cash flow, continuing operations	6,906	850	8,573	7,333
Excluded: Cash CAPEX for licenses and spectrum fees	777	26	1,039	449
Excluded: Dividends from associates	0	0	-134	-136
Repayments of lease liabilities	-689	-579	-2,822	-2,522
Operational free cash flow	6,993	297	6,656	5,124
Excluded: Changes in working capital	-4,664	-22	598	968
Structural part of Operational free cash flow	2,329	274	7,254	6,092

Net debt and Net debt/Adjusted EBITDA (multiple, rolling 12 months) (continuing and discontinued operations)

SEK in millions, except for multiple	Dec 31,	Dec 31,
	2023	2022
Net debt	73,758	71,397
Adjusted EBITDA accumulated current year, continuing operations	30,254	28,954
Adjusted EBITDA accumulated current year, discontinued operations	1,473	1,374
Adjusted EBITDA rolling 12 months	31,727	30,328
Net debt/adjusted EBITDA (multiple)	2.32x	2.35x

Adjusted EBITDA margin

SEK in millions, except ratio	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Revenue	23,098	22,894	88,785	85,580
Adjusted EBITDA	7,491	6,977	30,254	28,954
Adjusted EBITDA margin (%)	32.4	30.5	34.1	33.8

Parent company

Condensed income statements

SEK in millions	Oct-Dec 2023	Oct-Dec 2022	Jan-Dec 2023	Jan-Dec 2022
Revenue	535	592	2,024	1,713
Goods and services purchased	-438	-354	-1,411	-1,107
Personnel expenses	-188	-187	-811	-741
Other external expenses	-26	-401	-221	-512
Other operating income and expenses, net	-11	-32	-93	-145
EBITDA	-128	-383	-511	-792
Amortization, depreciation and impairment	-	0	0	-1
Operating income	-128	-383	-511	-793
Financial items, net	856	-15,650	480	-5,572
Income after financial items	728	-16,032	-31	-6,365
Appropriations	59	1,736	1,793	6,079
Income before taxes	787	-14,296	1,762	-286
Income taxes	70	-180	-14	-522
Net income	857	-14,477	1,749	-808

Revenue and Goods and services purchased in the fourth quarter and in the full year 2023 decreased to SEK 535 million (592) and SEK 2,024 million (1,713) and -438 (-354) and -1,411 MSEK (-1,107), respectively, mainly related to film and program rights.

Financial items, net in the fourth quarter 2023 amounted to SEK 856 million (-15,650). The fourth quarter 2023 was negatively impacted by impairments of Telia Finland Oyj of SEK 2,450 million, Telia Norge AS of SEK 2,200 million, and TV Media Holding AB of SEK 350 million, partly offset by dividend from Telia Norge AS of SEK 4,863 million. The quarter was also impacted by positive foreign exchange rate gains. The fourth quarter 2022 was negatively impacted by impairments of Telia Norge AS of SEK 8,600 million and Telia Finland Oyj of SEK 6,350 million.

Financial items, net for the full year 2023, increased to SEK 480 million (-5,572). 2023 was impacted by dividends from subsidiaries of SEK 6,641 million and positive foreign exchange rate gains partly offset by impairments of Telia Finland Oyj of SEK 2,450 million, Telia Norge AS of SEK 2,200 million and TV Media Holding AB of SEK 350 million. 2022 was negatively impacted by impairments of Telia Norge AS of SEK 8,600 million and Telia Finland Oyj of SEK 6,350 million, offset by the capital gain of SEK 11,055 million from the disposal of Telia Towers Sweden AB.

Condensed balance sheets

SEK in millions	Dec 31, 2023	Dec 31, 2022
Assets
Non-current assets	150,382	153,316
Current assets	47,401	36,833
Total assets	197,783	190,149
Equity and liabilities
Restricted shareholders' equity	15,712	15,712
Non-restricted shareholders' equity	49,478	55,441
Total shareholders' equity	65,189	71,153
Untaxed reserves	5,539	5,862
Provisions	382	432
Non-current liabilities	83,127	79,871
Current liabilities and current provisions	43,546	32,831
Total equity and liabilities	197,783	190,149

Non-current assets decreased to SEK 150,382 million (153,316) mainly due to decreased shares in subsidiaries and decreased non-current interest-bearing receivables from group companies.

Current assets increased to SEK 47,401 million (36,833) mainly due to increased cash and bank and short-term investments.

Untaxed reserves decreased to SEK 5,539 million (5,862) due to a net reversal of equalization reserves.

Non-current liabilities increased to SEK 83,127 million (79,871) mainly impacted by issued bonds and foreign exchange rate effects, partly offset by reclassifications to current liabilities.

Current liabilities and current provisions increased to SEK 43,546 million (32,831) mainly due to increased interest-bearing liabilities, unpaid dividend liability and reclassifications from non-current liabilities.

Risks and uncertainties

Telia Company operates mainly across seven geographical markets, offering a broad range of products and services within Telecommunication, Information Technology and Media. All markets are highly competitive and regulated. Telia Company has defined risk as anything that could have a material adverse effect on the achievement of Telia Company's goals. Risks can be threats, uncertainties or lost opportunities relating to Telia Company's current or future operations or activities.

Telia Company has an established risk management framework in place to regularly identify, analyze, assess, and report strategic, business, financial as well as ethics and sustainability risks and uncertainties, and to manage such risks as appropriate. The Telia Company Risk Universe consists of a Principal Risk taxonomy based on 13 Principal Risk areas and over 50 sub-risk areas that are identified and prioritized together with Group Executive Management, as the most material risks that impact Telia's objectives and operations. The Principal Risks are assessed and aggregated across the whole company using the Risk management framework. Risk management is an integrated part of Telia's business planning process and monitoring of business performance.

For further information regarding details on risk exposure and risk management, see the Annual and Sustainability Report 2022, Directors Report, section Risk and uncertainties.

Stockholm, January 26, 2024

Allison Kirkby President and CEO

This report has not been subject to review by Telia Company's auditors.

Forward-looking statements

This report contains statements concerning, among other things, Telia Company's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent Telia Company's future expectations. Telia Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forwardlooking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to: Telia Company's market position; growth in the telecommunications and media industries; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Telia Company, its associated companies and joint ventures, and the telecommunications and media industries in general. Forward-looking statements speak only as of the date they were made, and, other than as required by applicable law, Telia Company undertakes no obligation to update any of them in the light of new information or future events.

Definitions

Adjustment items: Comprise of capital gains and losses, impairment losses, restructuring programs (costs for phasing out operations and personnel redundancy costs and costs for major group wide business transformations) or other costs with the character of not being part of normal daily operations.

Advertising revenue: External revenue related to linear and digital/AVoD media, sponsorships and other types of advertising.

Broadband revenue: External revenue related to fixed broadband services.

Business solutions revenue: External revenue related to fixed business networking and communication solutions.

CAPEX: An abbreviation of "Capital Expenditure". Investments in intangible and tangible non-current assets and right-of-use assets, but excluding goodwill, intangible and tangible non-current assets and right-of-use assets acquired in business combinations, film and program rights and asset retirement obligations.

CAPEX excluding right-of-use assets: CAPEX excluding right-of-use assets.

EBITDA: An abbreviation of "Earnings before Interest, Tax, Depreciation and Amortization." Equals operating income before depreciation, amortization and impairment losses and before income from associated companies and joint ventures but including amortization and impairment of film and program rights.

Employees: Total headcount excluding hourly paid employees.

Equipment revenue: External equipment revenue.

Free cash flow: The total cash flow from operating activities and cash CAPEX.

Internal revenue: Group internal revenue.

Like for like (%): The change in revenue, external service revenue and adjusted EBITDA, excluding exchange rate effects and based on the current group structure, i.e. including the impact of any acquired operations and excluding the impact of any disposed operations, both in the current and in the comparable period.

Mobile end user revenue: External revenue related to voice, messaging, data, value added services and content (including machineto-machine).

Mobile Interconnect: External revenue related to mobile termination.

Net debt: Interest-bearing liabilities less derivatives recognized as financial assets (and hedging non-current and current borrowings) and related credit support annex (CSA), less 50% of hybrid capital calculated as 50% of nominal amount (which, consistent with market practice

for the type of instrument, is treated as equity), less short-term investments, non-current bonds at fair value through income statement and OCI and cash/cash equivalents.

Net debt/adjusted EBITDA ratio (multiple): Net debt divided by adjusted EBITDA rolling 12 months and excluding disposed operations.

OCI: An abbreviation of "Other Comprehensive Income".

Operational free cash flow: Free cash flow from continuing operations excluding cash CAPEX for licenses and spectrum fees, dividends from associated companies net of taxes and including repayment of lease liabilities.

Other fixed service revenue: External revenue of fixed services including fiber installation, wholesale and other infrastructure services.

Other mobile service revenue: External revenue related to visitors' roaming, wholesale and other services.

Return on capital employed: Operating income, including impairments and gains/losses on disposals, plus financial revenue excluding foreign exchange gains expressed as a percentage of average capital employed.

Service revenue: External revenue excluding equipment sales.

Structural part of Operational free cash flow: Operational free cash flow less contribution from change in working capital.

Telephony revenue: External revenue related to fixed telephony services.

TV revenue: External revenue related to TV services.

In this report, comparable figures are provided in parentheses and refer to the same item in the corresponding period last year, unless otherwise stated.

Financial calendar

Annual and Sustainability report 2023 March 19, 2024

Annual general meeting April 10, 2024

Interim report January-March 2024 April 25, 2024

Interim report January-June 2024 July 18, 2024

Interim report January-September 2024 October 24, 2024

This information is information that Telia Company AB is obliged to make public pursuant to the EU Market Abuse Regulation and Securities Markets Act. The information was submitted for publication at 07.00 CET on January 26, 2024.

Telia Company AB (publ) Corporate Reg. No. 556103-4249 Registered office: Stockholm Tel. +46 8 504 550 00 www.teliacompany.com

Telia Company Year-end report January – December ²⁰²³ Q4

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