Telia Company

Quarterly Report • Oct 19, 2023

Interim report

January - September 2023

Telco growth accelerated further

Third quarter summary1

• Revenue increased 4.3% to SEK 21,997 million (21,096) and like for like, revenue increased 1.1%.
• Service revenue increased 5.6% to SEK 18,986 million (17,984) and like for like, service revenue increased 2.6%. For the Telco operations, service revenue increased 3.9% on a like for like basis.
• Adjusted EBITDA increased 9.5% to SEK 8,465 million (7,730) and like for like, adjusted EBITDA increased 7.6%. For the Telco operations, adjusted EBITDA increased 9.3% on a like for like basis.
• Operating income increased to SEK 3,515 million (3,088) and total net income3 increased to SEK 1,960 million (1,883).
• Operational free cash flow increased to SEK 3,357 million (1,862) and the structural part of operational free cash flow increased to SEK 3,660 million (2,574).
• Cash flow from operating activities3 increased to SEK 7,514 million (6,151).
• The leverage ratio3 was 2.53x at the end of the quarter.
• The outlook for 2023 is updated. See page 5.
• A final and binding agreement to sell Telia's operations and network assets in Denmark to Norlys was signed in the quarter. Operations and network assets in Denmark to be sold are therefore classified as held for sale and discontinued operations, see Note 13.

Nine months summary1

• Revenue increased 4.8% to SEK 65,687 million (62,686) and like for like, revenue increased 2.5%.
• Service revenue increased 4.3% to SEK 56,246 million (53,924) and like for like, service revenue increased 2.2%. For the Telco operations, service revenue increased 3.3% on a like for like basis.
• Adjusted EBITDA increased 3.6% to SEK 22,763 million (21,977) and like for like, adjusted EBITDA increased 2.4%. For the Telco operations, adjusted EBITDA increased 5.3% on a like for like basis.
• Operating income decreased to SEK 7,379 million (8,165) and total net income3 decreased to SEK 3,615 million (4,653).
• Operational free cash flow decreased to SEK -337 million (4,828) and the structural part of operational free cash flow decreased to SEK 4,925 million (5,818).

Highlights1

SEK in millions, except key ratios,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
per share data and changes	2023	2022	%	2023	2022	%
Revenue	21,997	21,096	4.3	65,687	62,686	4.8
Change (%) like for like	1.1			2.5
of which service revenue2	18,986	17,984	5.6	56,246	53,924	4.3
change (%) like for like	2.6			2.2
change (%) like for like, Telco operations	3.9			3.3
Adjusted EBITDA	8,465	7,730	9.5	22,763	21,977	3.6
change (%) like for like	7.6			2.4
change (%) like for like, Telco operations	9.3			5.3
Margin (%)	38.5	36.6		34.7	35.1
Adjusted operating income	3,654	3,270	11.7	8,488	8,696	-2.4
Operating income	3,515	3,088	13.8	7,379	8,165	-9.6
Income after financial items	2,382	2,306	3.3	4,404	5,650	-22.0
Total net income, continuing and discontinued operations3	1,960	1,883	4.1	3,615	4,653	-22.3
EPS total (SEK), continuing and discontinued operations3	0.46	0.42	7.3	0.80	1.02	-21.7
Structural part of Operational free cash flow	3,660	2,574	42.2	4,925	5,818	-15.4
Operational free cash flow	3,357	1,862	80.3	-337	4,828	-107.0
CAPEX excluding fees for licenses, spectrum and right-of
use assets	2,901	3,516	-17.5	10,063	10,493	-4.1

1) Continuing operations if not otherwise stated. Telia Denmark classified as discontinued operations from Q3 2023. 2) Restated, see Note 1. 3) Refers to continuing and discontinued operations.

CEO comment...

"In the third quarter, Telia's growth accelerated to levels not seen in many years, with momentum in our Telco operations more than compensating for the weak advertising market. With all Telco markets now showing solid top and bottom-line development, we are clearly progressing against our plans to build the Better Telia we envisaged for all our stakeholders, when we laid out our growth strategy almost three years ago.

Service revenue growth accelerated to 3.9% in our Telco operations, with growth in all markets and equally driven by mobile and fixed services and has consistently been in the 2-4% range in six of the last seven quarters.

Telco EBITDA growth of 9.3%, the highest ever, was driven by improved underlying trends in both revenue and costs, as well as benefiting from some temporary tailwinds, including lower energy prices. Excluding effects of energy prices, Telco EBITDA has grown consistently in the past eight quarters. Meanwhile, the challenges for TV and Media in advertising and streaming markets are now partly mitigated by the broad set of actions taken, although much work remains. This led to an overall EBITDA growth for the group of 7.6% for the quarter.

Delivery against our key strategic priorities continued with the following key achievements during the quarter: 1) Revenue growth accelerated, as did relationship NPS, despite price increases; 2) Our network leadership position was strengthened further with Telia's 5G now reaching 87% of the Nordic/Baltic population and in us securing the leading spectrum portfolio in the recent Swedish spectrum auction; 3) Structural cost transformation continued, resulting in 2.1% reduction in operational expenses, in spite of inflation; , 4) Our net zero target for 2040 was approved by the SBTi, a significant moment for us and one that confirms our unwavering commitment to ensuring every part of Telia is equipped to deliver responsibly and sustainably; and, 5) The final binding agreement for the divestment of Telia Denmark to Norlys was completed in the quarter and the transaction remains on track to close in Q1 2024, as previously announced. As a result, Denmark is now reported as discontinued operations.

Sweden's service revenue grew 2.2%, driven in particular by 5.4% growth in Enterprise, where our security and cloud services are increasingly relevant and in-demand for both private and public enterprises. Wholesale grew 4.2%, driven by pricing. And Consumer broadband and TV grew in terms of both customer numbers and revenue, while mobile was stable. EBITDA growth improved, from both temporary tailwinds and an improved channel mix. Infrastructure modernization continued at pace with 5G coverage now at 77%, fiber revenue grew 10% and a successful outcome of the important multi-band spectrum auction increased and secured leading spectrum positions for the coming 25 years.

Finland delivered another quarter of service revenue growth of around 2%. Continued strong growth in Consumer mobile ARPU, driven by a reduced exposure to the low-end segment, was the main driver in the quarter, but the Enterprise and Wholesale

segments also showed positive growth. Network modernization and a relentless focus on customer value resulted in improved network perception and higher relationship NPS. The lowest mobile churn in six years and an efficient channel strategy drove a reduction in sales and marketing cost. This, together with further resource cost reductions and significant energy tailwind resulted in double digit EBITDA growth.

Norway's service revenue growth was again strong at 5.8%, driven by positive development across Consumer, Enterprise and Wholesale. Growth in mobile wholesale was in particular driven by Fjordkraft mobile, which for the first time contributed a full quarter. Key initiatives in the quarter such as the launch of ICT services from Telia Cygate and an enhanced TV proposition, are fueling our "daring challenger" brand position and consideration. Double digit EBITDA growth was driven by the revenue momentum, an improved channel mix towards own channels and an energy tailwind.

Lithuania service revenue growth accelerated to 9.9%, driven by active pricing across both mobile and fixed services, as well as from the successful delivery of connectivity to the NATO summit in Vilnius in July. Our 5G leadership is strengthening brand consideration, increasing further our postpaid subscriber base. EBITDA growth of 19.4% was driven mainly by the higher service revenue and a considerable energy tailwind. Estonia also continued to counteract inflation with progressive pricing, and a premium brand positioning focused on the vital role Telia plays in both technology innovation and connectivity, resulting in service revenue growth of 7.2%. Reduced energy prices also contributed to an EBITDA growth of 15.4%.

TV and Media continues to experience a tough advertising market whilst in the midst of a major business transition. The new TV4 Play service was launched in the quarter and is so far progressing according to plan, confirming the relative strength of the TV4 brand in relation to C More, which is being gradually discontinued. Advertising sales fell 16%, in line with our expectations, while direct OTT revenue grew 9%. Restructuring continues, and although EBITDA declined, it fell less than in the previous quarter.

Our agenda for returning TV and Media to profitability remains. First, we are executing on the merger of the C More services into TV4 and MTV, the launch of the new hybrid service from TV4, and the closing of the C More brand. Second, we are making a fundamental change to our premium sports business by only pursuing rights with certain clear profiles that support the TV4 and MTV local positions going forward, and with a significantly improved cost/revenue ratio. And third, we are addressing the TV4 and MTV cost base. In taking these steps, our TV and Media business will accelerate its digitalization, become even more relevant for both viewers and advertisers, and be in a stronger position to restore profitability and cash generation when the advertising market returns.

All of our other key financial metrics were in line with our expectations, with Operational Free Cash flow at SEK 3.4 billion, and the structural part at SEK 3.7 billion. Leverage fell to 2.53x due mainly to growth in EBITDA.

Looking ahead, and based in part on this quarter's results, we can now upgrade our EBITDA outlook to low-single digits this year, vs. our earlier outlook of flat to low-single digit growth. The structural part of Operating Free Cash Flow is expected to be around SEK 7.5 billion, despite the discontinuation of Denmark. Further, the ongoing recovery in working capital, in the midst of the remaining macro uncertainties, will remain a key focus area during Q4 and into next year. On leverage, our view remains unchanged that it is expected to be well within our 2.0-2.5x target range after the closing of the transaction in Denmark.

To close, I could not be prouder of the progress we have made towards creating a "Better Telia" in these past 3+ years despite the many macro headwinds we have faced. With our network leadership secured, a return to consistent growth in all our Telco markets, progress against our structural cost agenda, sustainability embedded in our operations, and a muchimproved capital allocation, I believe that it is a stronger Telia that I will transition to the next CEO at the beginning of next year. I would like to take this opportunity to thank the whole Telia team for their enormous efforts to make Telia a much better company for all its stakeholders, today, tomorrow and well into the future."

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 2023 (updated)

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

Adjusted EBITDA, like for like, is estimated to grow by low single digits. (Previously: Adjusted EBITDA, like for like, is estimated to be flat to grow by low single digits.)

CAPEX, excluding fees for licenses and spectrum and right of use assets, is estimated to be around SEK 13.5 billion. (Previously: CAPEX, excluding fees for licenses and spectrum and right of use assets, is estimated to be in the range of SEK 13.0-14.0 billion.)

The structural part of Operational free cash flow is estimated to be around SEK 7.5 billion. (Previously: The structural part of Operational free cash flow is estimated to be in the range of SEK 7.0-9.0 billion.)

Note: Previous outlook included the former segment Denmark, which is no longer included in continuing operations.

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.

Ordinary dividend to shareholders

For 2022, the Annual General Meeting (AGM) decided on an ordinary 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.

First distribution

The Annual General Meeting (AGM) decided that the first distribution of the dividend was to be distributed by Euroclear Sweden on April 14, 2023.

Second distribution

The Annual General Meeting (AGM) decided that the second distribution of the dividend was to be distributed by Euroclear Sweden on August 3, 2023.

Third distribution

The Annual General Meeting (AGM) decided that the final day for trading in shares entitling shareholders to dividend be set for October 24, 2023, and that the first day of trading in shares excluding rights to dividend be set for October 25, 2023. The record date at Euroclear Sweden for the right to receive dividend will be October 26, 2023. The dividend is expected to be distributed by Euroclear Sweden on October 31, 2023.

Fourth distribution

The Annual General Meeting (AGM) decided that the final day for trading in shares entitling shareholders to dividend 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.

Review of the group, third quarter 2023

Revenue and earnings

Revenue increased 4.3% to SEK 21,997 million (21,096) and like for like, revenue increased 1.1%.

Service revenue increased 5.6% to SEK 18,986 million (17,984) and like for like, service revenue increased 2.6% driven by a positive development for the Telco operations.

Adjusted EBITDA increased 9.5% to SEK 8,465 million (7,730) and the adjusted EBITDA margin increased to 38.5% (36.6). Like for like, adjusted EBITDA increased 7.6% as growth of 9.3% for Telco operations, partly due to SEK 119 million lower energy costs, more than compensated for a negative development for TV and Media.

Adjustment items affecting operating income amounted to SEK -138 million (-182). See Note 2.

Adjusted operating income increased to SEK 3,654 million (3,270).

Financial items totaled SEK -1,134 million (-782) of which SEK -1,100 million (-755) 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 -595 million (-511). The effective tax rate was 25.0% (22.1). The increased effective tax rate was mainly impacted by non tax-deductible interest expenses in Sweden, and adjusted for this the effective tax rate would have been 20.6% (22.1).

Net income from continuing operations decreased to SEK 1,787 million (1,794) and Net income from discontinued operations increased to SEK 173 million (89).

Other comprehensive income improved to SEK -7 million (-335) mainly due to positive remeasurements of defined benefit pension obligations.

Cash flow, continuing and discontinued operations

Cash flow from operating activities increased to SEK 7,514 million (6,151) mainly due to improved EBITDA in continuing operations and less negative impact from working capital.

Cash flow from investing activities amounted to SEK -2,844 million (-331). The third quarter of 2022 was mainly impacted by higher net disposals of short-term investments as well as higher cash CAPEX.

Cash flow from financing activities amounted to SEK -4,077 million (-7,301). The third quarter of 2023 was impacted by the payment of the second tranche of the dividend whilst the comparative quarter 2022 was impacted by repurchased treasury shares as well as a negative net of proceeds and repayments of long-term borrowings.

Operational free cash flow, continuing operations

Structural part of Operational free cash flow increased to SEK 3,660 million (2,574) mainly due to improved adjusted EBITDA and decreased cash CAPEX excluding licenses and spectrum.

Operational free cash flow increased to SEK 3,357 million (1,862) mainly due to improved adjusted EBITDA, less negative impact from working capital and decreased cash CAPEX excluding fees for licenses and spectrum.

Financial position

CAPEX excluding right-of-use assets from continuing operations, increased to SEK 4,456 million (3,861). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 2,901 million (3,516). Cash CAPEX decreased to SEK 3,021 million (3,502).

Net debt from continuing and discontinued operations was SEK 78,977 million at the end of third quarter (81,007 at the end of the second quarter of 2023). The net debt/adjusted EBITDA ratio decreased to 2.53x compared to 2.66x at the end of the second quarter.

Review of the group, nine months 2023

Revenue and earnings

Revenue increased 4.8% to SEK 65,687 million (62,686) and like for like, revenue increased 2.5%.

Service revenue increased 4.3% to SEK 56,246 million (53,924) and like for like, service revenue increased 2.2% driven by a positive development for Telco operations.

Adjusted EBITDA increased 3.6% to SEK 22,763 million (21,977) and the adjusted EBITDA margin decreased to 34.7% (35.1). Like for like, adjusted EBITDA increased 2.4% as growth for Telco operations more than compensated for a negative development for TV and Media.

Adjustment items affecting operating income increased to SEK -1,109 million (-531) mainly impacted by higher personnel redundancy costs as well as capital gains and losses. See Note 2.

Adjusted operating income decreased to SEK 8,488 million (8,696).

Financial items totaled SEK -2,974 million (-2,514) of which SEK -2,997 million (-2,115) 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 -1,237 million (-1,254). The effective tax rate was 28.1% (22.2). The increased effective tax rate was mainly impacted by non tax-deductible interest expenses in Sweden, and adjusted for this the effective tax rate would have been 22.2% (22.2).

Net income from continuing operations decreased to SEK 3,168 million (4,396) and Net income from discontinued operations increased to SEK 448 million (257).

Other comprehensive income decreased to SEK 1,197 million (8,445), mainly due to lower positive remeasurements of defined benefit pension plans and negative foreign translation differences.

Cash flow, continuing and discontinued operations

Cash flow from operating activities decreased to SEK 13,614 million (17,694) mainly due to increased negative impact from working capital partly offset by improved EBITDA.

Cash flow from investing activities amounted to SEK -16,389 million (-6,822). 2023 was mainly impacted by higher net investments in short-term investments and higher cash CAPEX.

Cash flow from financing activities amounted to SEK 3,771 million (-15,685). 2023 was impacted by received collateral while 2022 mainly was impacted by higher repayments of long-term borrowings, paid collateral and repurchased treasury 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 decreased to SEK 4,925 million (5,818) mainly due to increased cash CAPEX excluding fees for licenses and spectrum.

Operational free cash flow decreased to SEK -337 million (4,828) mainly due to increased negative impact from working capital and increased cash CAPEX excluding fees for licenses and spectrum.

Financial position

CAPEX excluding right-of-use assets from continuing operations, increased to SEK 11,637 million (10,879). CAPEX excluding fees for licenses, spectrum and right-of-use assets from continuing operations, decreased to SEK 10,063 million (10,493). Cash CAPEX increased to SEK 11,039 million (10,073).

Goodwill and other intangible assets decreased to SEK 72,152 million (74,547) mainly impacted by the reclassification of Denmark to Assets classified as held for sale, partly offset by the acquisition of spectrum rights in Sweden.

Property, plant and equipment decreased to SEK 71,762 million (74,824), mainly impacted by the reclassification of Denmark to Assets classified as held for sale.

Investments in associates and joint ventures, pension obligation assets and other non-current assets increased to SEK 10,154 million (8,171), mainly due to positive remeasurements of defined benefit pension plans.

Long-term interest-bearing receivables increased to SEK 9,145 million (7,629) mainly driven by market value changes on derivatives.

Short-term interest-bearing receivables increased to SEK 12,653 million (9,676) mainly due to net investments in investment bonds and derivatives, partly offset by a decrease in collaterals for derivatives driven by market value changes.

Assets classified as held for sale increased to SEK 8,299 million (-) as Denmark is classified as discontinued operations. See Note 13.

Long-term borrowings increased to SEK 99,556 million (94,555) mainly impacted by issued bonds and foreign exchange rate effects, partly offset by reclassifications to short-term borrowings.

Short-term borrowings increased to SEK 14,025 million (7,007) mainly due to reclassifications from long-term borrowings.

Trade payables and other current liabilities, current tax payables and short-term provisions decreased to SEK 33,791 million (35,734) mainly due to decrease in accounts payable, partly offset by unpaid dividend liability.

Liabilities directly associated with assets classified as held for sale increased to SEK 4,052 million (-) as Denmark is classified as discontinued operations. See Note 13.

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 13.
• 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 13.
• 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 after the end of the third 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.

Sweden

• Telia continued to modernize its mobile network and roll-out 5G. In the quarter population coverage reached 77%, enabling 8 out 10 swedes to have access to the fastest, most secure and reliable 5G network in the country.
• Telia secured important spectrum in the 900MHz, 2.1GHz and the 2.6GHz bands, allowing Telia to have the leading spectrum position in the market as of 2026. The spectrum will be used to improve and develop Telia's national 4G and 5G networks, including rural areas with insufficient coverage and along the railways.
• Data volumes increased by 21% this summer compared to the summer of last year, and capacity of Telia's network was especially tested during the women's football World Cup. As an example, data consumption increased, compared to a normal day, by almost five times when the Swedish national team played in the semifinals. Despite the increased volumes, Telia's viewers had a great customer experience.
• Telia's TV service was again named the best according to Swedish viewers in this year's survey performed by the independent analysis company Nordic Bench and TV news. Furthermore, Telia's service also saw the biggest improvement in a number of fields such as experience, simplicity and quality.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	8,704	8,698	0.1	26,667	25,887	3.0
Change (%) like for like	0.1			3.0
of which service revenue (external)	7,594	7,429	2.2	22,585	22,255	1.5
change (%) like for like	2.2			1.5
Adjusted EBITDA	3,516	3,394	3.6	10,180	10,089	0.9
Margin (%)	40.4	39.0		38.2	39.0
change (%) like for like	4.0			1.3
Adjusted operating income	1,777	1,669	6.4	4,984	4,984	0.0
Operating income	1,764	1,647	7.1	4,837	4,886	-1.0
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	577	773	-25.4	2,312	2,410	-4.1
Subscriptions, (thousands)
Mobile1	8,514	7,746	9.9	8,514	7,746	9.9
of which machine-to-machine (postpaid)	3,972	3,166	25.5	3,972	3,166	25.5
Fixed telephony1	347	459	-24.2	347	459	-24.2
Broadband1	1,379	1,359	1.5	1,379	1,359	1.5
TV1	1,017	964	5.5	1,017	964	5.5
Employees1	4,102	4,139	-0.9	4,102	4,139	-0.9

1) Restated, see Note 1.

Revenue increased 0.1% to SEK 8,704 million (8,698) and like for like, revenue increased 0.1% as increased service revenue was largely offset by reduced sales of equipment.

Service revenue, like for like, increased 2.2% as mobile service revenue remained rather unchanged and fixed service revenue increased by 4.1%. The growth in fixed service revenue was mainly driven by Business solutions, Broadband and TV, which more than compensated for a continued decline for revenue from fixed telephony revenue.

Adjusted EBITDA increased 3.6% to SEK 3,516 million (3,394) and adjusted EBITDA margin increased to 40.4% (39.0). Adjusted EBITDA like for like increased 4.0% mainly driven by the service revenue growth as well as around SEK 50 million in positive operational exchange rate effects.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 25.4% to SEK 577 million (773).

Mobile subscriptions grew by ~140,000 in the quarter driven by an addition of ~123,000 postpaid subscriptions used for machine-tomachine related services. TV subscriptions increased by ~13,000 and fixed broadband subscriptions decreased by ~1,000 in the quarter.

Finland

• The mobile network modernization and 5G roll-out continued at pace and in the quarter 5G population coverage reached 90%.
• At the beginning of the summer Telia Finland won another quality category in the Open Signal benchmark and according a survey conducted by Ipsos Telia is now on par with the market leader in terms of network perception.
• Telia performed field tests with Nokia and MediaTek around 5G Reduced Capability technology. The technology is the latest IoT 5G technology and helps customers to utilize IoT solutions more comprehensively and more efficiently.
• The work to close down Telia's 3G network was initiated in the quarter, and a more extensive program to close 3G in larger areas such as Satakunta and Western Uusimaa is estimated to start early 2024.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue1	4,144	3,719	11.4	12,235	10,993	11.3
Change (%) like for like	0.9			2.4
of which service revenue (external)	3,549	3,155	12.5	10,394	9,364	11.0
change (%) like for like	1.9			2.1
Adjusted EBITDA	1,392	1,140	22.1	3,847	3,380	13.8
Margin (%)	33.6	30.6		31.4	30.7
change (%) like for like	10.3			4.7
Adjusted operating income	470	263	78.4	1,159	754	53.7
Operating income	453	240	88.7	988	670	47.5
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	356	376	-5.4	1,134	1,122	1.0
Subscriptions, (thousands)
Mobile1	3,117	3,149	-1.0	3,117	3,149	-1.0
of which machine-to-machine (postpaid)	425	354	20.0	425	354	20.0
Fixed telephony	13	15	-13.6	13	15	-13.6
Broadband1	610	585	4.3	610	585	4.3
TV	689	672	2.5	689	672	2.5
Employees1	2,543	2,742	-7.3	2,543	2,742	-7.3

1) Restated, see Note 1.

Revenue increased 11.4% to SEK 4,144 million (3,719) and like for like, revenue increased 0.9% as increased service revenue more than compensated for reduced sales of equipment. The effect of exchange rate fluctuations was positive by 10.7%.

Service revenue, like for like, increased 1.9% as predominately mobile service revenue increased by 2.9% and to some extent also benefited from a 1.1% increase for fixed service revenue driven mainly by Business solutions and TV.

Adjusted EBITDA increased 22.1% to SEK 1,392 million (1,140) and adjusted EBITDA margin increased to 33.6% (30.6). Adjusted EBITDA, like for like, increased 10.3% from the growth in service revenue, coupled with lower operational expenses mainly related to resources and energy.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 5.4% to SEK 356 million (376).

Mobile subscriptions increased in the quarter by ~27,000 driven by an addition of ~27,000 postpaid subscriptions used for machine-tomachine related services. TV subscriptions increased by ~11,000 and fixed broadband subscriptions increased by ~3,000 in the quarter.

Norway

• During a naval exercise in Bergen, Telia Norway and the Norwegian Defence Materiel Agency demonstrated how network slicing can be used to create a private network for the Norwegian Armed Forces. This allows military mobile traffic to be separated from other traffic in Telia Norway's national 5G network, to ensure secure and effective communication.
• Telia Norway deepened its collaboration with Telia Sweden's subsidiary Telia Cygate, to expand its Enterprise portfolio within security, cloud services as well as local networks.
• The Oslo municipality chose Telia and Phonero as suppliers of fixed and mobile services for another four years, confirming Telia Norway's strong proposition and position in the Norwegian Enterprise segment.
• A new portfolio of 4G and 5G wireless broadband services, for both homes and cabins was launched, with speeds ranging from 25Mbit/s up to 500Mbit/s. Telia's TV streaming service, Telia Play, is offered in connection with all wireless broadband subscriptions.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	3,962	3,859	2.7	11,345	11,171	1.6
Change (%) like for like	5.9			5.7
of which service revenue (external)	3,382	3,298	2.6	9,666	9,580	0.9
change (%) like for like	5.8			5.0
Adjusted EBITDA	1,978	1,846	7.2	5,356	5,103	5.0
Margin (%)	49.9	47.8		47.2	45.7
change (%) like for like	10.8			9.3
Adjusted operating income	936	868	7.8	2,182	2,106	3.6
Operating income	909	853	6.6	2,051	2,037	0.7
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	566	674	-16.1	1,793	1,821	-1.5
Subscriptions, (thousands)
Mobile	2,440	2,379	2.6	2,440	2,379	2.6
of which machine-to-machine (postpaid)	264	181	45.8	264	181	45.8
Fixed telephony1	14	43	-67.8	14	43	-67.8
Broadband1	503	495	1.6	503	495	1.6
TV1	480	485	-1.1	480	485	-1.1
Employees	1,249	1,328	-5.9	1,249	1,328	-5.9

1) Restated, see Note 1.

Revenue increased 2.7% to SEK 3,962 million (3,859) and like for like, revenue increased 5.9% due to increased service revenue. The effect of exchange rate fluctuations was negative by 3.2%.

Service revenue, like for like, increased 5.8% primarily as mobile service revenue increased 8.2% and to some lesser extent as fixed service revenue increased 1.0% mainly attributable to broadband.

Adjusted EBITDA increased 7.2% to SEK 1,978 million (1,846) and adjusted EBITDA margin increased to 49.9% (47.8). Adjusted EBITDA like for like increased 10.8% driven by the growth in service revenue coupled with lower operational expenses mainly related to marketing and energy.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 16.1% to SEK 566 million (674).

Mobile subscriptions increased by ~33,000 in the quarter driven by an addition of ~30,000 postpaid subscriptions used for machine-tomachine related services. TV subscriptions declined by ~2,000 and fixed broadband subscriptions increased by ~2,000 in the quarter.

Lithuania

• Telia Lithuania exclusively and successfully provided internet and communications solutions for the NATO summit in Vilnius as well as high-speed internet and digital communication for the American embassy and President Joe Biden's delegation. This also resulted in that Telia received a recognition from the White House.
• Telia was rated by Dive Group as the telecom operator offering the best customer service in the Baltics for the 3rd consecutive year and also by Civitta as one of the top tier employers in Lithuania.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	1,448	1,203	20.4	4,076	3,487	16.9
Change (%) like for like	8.7			7.4
of which service revenue (external)	1,124	924	21.6	3,184	2,691	18.3
change (%) like for like	9.9			8.8
Adjusted EBITDA	554	419	32.1	1,536	1,235	24.4
Margin (%)	38.2	34.9		37.7	35.4
change (%) like for like	19.4			14.3
Adjusted operating income	331	214	55.1	888	616	44.0
Operating income	323	209	55.0	863	613	40.9
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	103	188	-45.1	330	409	-19.4
Subscriptions, (thousands)
Mobile	1,642	1,602	2.5	1,642	1,602	2.5
of which machine-to-machine (postpaid)	316	323	-2.0	316	323	-2.0
Fixed telephony	159	182	-12.4	159	182	-12.4
Broadband	426	426	0.1	426	426	0.1
TV	259	255	1.5	259	255	1.5
Employees	1,478	1,549	-4.6	1,478	1,549	-4.6

Revenue increased 20.4% to SEK 1,448 million (1,203) and like for like, revenue increased 8.7% as a result from increased service revenue and partly also increased sales of equipment. The effect of exchange rate fluctuations was positive by 11.7%.

Service revenue, like for like, increased 9.9% due to a positive development for both mobile and fixed service revenue. For mobile service revenue, which increased 8.7%, growth was the result of an increased number of subscriptions as well as a higher ARPU. For fixed service revenue, which increased 10.6%, growth was driven by a positive development for revenue from primarily fixed broadband and business solutions.

Adjusted EBITDA increased 32.1% to SEK 554 million (419) and adjusted EBITDA margin increased to 38.2% (34.9). Adjusted EBITDA like for like increased 19.4% driven by the growth in service revenue.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 45.1% to SEK 103 million (188).

Mobile subscriptions increased by ~31,000 in the quarter. TV subscriptions increased by ~1,000 and fixed broadband subscriptions decreased by ~1,000 in the quarter.

Estonia

• The 5G roll-out continued at pace and in the quarter 5G population coverage reached 72%.
• Following a gradual and countrywide dismantling of the 3G network, Telia closed its 3G network in Tallinn in the quarter. The vast majority of the 3G network has now been closed, with customers migrated to future proof high-speed 4G and 5G techniques. In addition to improved customer experience, newer technologies such as 5G use the frequency spectrum more efficiently, which has a positive effect on Telia's environmental footprint.
• In connection with Tallinn's largest outdoor festival, Telia's mobile network capacity was used by large crowds resulting in several new records. These included ~58,000 unique users in the network, a total of ~70,000 messages sent and ~260,000 calls made, of which ~65,000 during peak hour.
• Telia attended the Estonian Opinion Festival and lead discussions on relevant topics such as cybersecurity and digital inclusion.

Highlights

SEK in millions, except margins, operational data and changes	Jul-Sep 2023	Jul-Sep 2022	Chg %	Jan-Sep 2023	Jan-Sep 2022	Chg %
Revenue	1,052	922	14.1	3,050	2,658	14.8
Change (%) like for like	3.1			5.5
of which service revenue (external)	888	749	18.6	2,566	2,203	16.5
change (%) like for like	7.2			7.1
Adjusted EBITDA	435	340	27.6	1,217	989	23.1
Margin (%)	41.3	36.9		39.9	37.2
change (%) like for like	15.4			13.2
Adjusted operating income	285	193	47.4	770	514	50.0
Operating income	283	193	46.4	759	580	30.9
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	102	88	16.4	287	241	18.7
Subscriptions, (thousands)
Mobile1	1,259	1,221	3.1	1,259	1,221	3.1
of which machine-to-machine (postpaid)	469	435	7.7	469	435	7.7
Fixed telephony	182	196	-7.4	182	196	-7.4
Broadband1	274	275	-0.5	274	275	-0.5
TV	194	201	-3.2	194	201	-3.2
Employees	1,231	1,288	-4.4	1,231	1,288	-4.4

1) Restated, see Note 1.

Revenue increased 14.1% to SEK 1,052 million (922) and like for like, revenue increased 3.1% driven by increased service revenue. The effect of exchange rate fluctuations was positive by 11.0%.

Service revenue, like for like, increased 7.2% as mobile service revenue increased 7.2% driven by subscription base expansion as well as ARPU growth, as well as fixed service revenue growth of 7.4% from a positive development for predominately business solutions and fixed broadband.

Adjusted EBITDA increased 27.6% to SEK 435 million (340) and adjusted EBITDA margin increased to 41.3% (36.9). Adjusted EBITDA like for like increased 15.4% driven by service revenue growth.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, increased 16.4% to SEK 102 million (88).

Mobile subscriptions increased by ~9,000 in the quarter. TV subscriptions decreased by ~2,000 and fixed broadband subscriptions decreased by ~1,000 in the quarter.

TV and Media

• In August, C More was merged into TV4 and in connection to that, the new TV4 Play service which includes TV4 Play+ was launched. The new service includes the most popular entertainment, a broader range of movies and series, high quality journalism, and is the home for high quality sports rights such as SHL and the UEFA Champions League.
• The linear market share of TV4 grew further and the linear portfolio increased its share of viewing to 36.3% compared to 34.6% in the corresponding quarter of last year.
• This fall's TV season on TV4 was kicked off strongly with launches of several well known and loved flag ship productions, such as Idol, Robinson and season eight of one of the most popular series of all times in Sweden, Solsidan. Together with several other releases, strengthening TV4's position as the channel with the widest portfolio of high-quality family entertainment.
• Due to a need to increase the pace of its digital transformation, TV and Media started to execute a comprehensive efficiency program, targeting all parts of the business.

Highlights

SEK in millions, except margins, operational data and changes	Jul-Sep 2023	Jul-Sep 2022	Chg %	Jan-Sep 2023	Jan-Sep 2022	Chg %
Revenue	1,780	1,898	-6.2	6,007	6,262	-4.1
Change (%) like for like	-8.3			-5.9
of which service revenue (external)	1,774	1,898	-6.5	5,987	6,262	-4.4
change (%) like for like	-8.6			-6.2
Adjusted EBITDA1	127	234	-45.8	-245	388
Margin (%)	7.1	12.3		-4.1	6.2
change (%) like for like	-44.5			-161.6
Adjusted operating income1	-84	34		-868	-211	310.9
Operating income1	-107	31		-956	-218	337.7
CAPEX excluding fees for licenses,
spectrum and right-of-use assets1	36	62	-41.7	134	114	17.8
Subscriptions, TV SVOD (thousands)	704	728	-3.3	704	728	-3.3
Employees1	1,294	1,236	4.7	1,294	1,236	4.7

1) Restated, see Note 1.

Revenue decreased 6.2% to SEK 1,780 million (1,898) and like for like, revenue decreased 8.3% driven by decreased service revenue. The effect of exchange rate fluctuations was positive by 2.1%.

Service revenue, like for like, decreased 8.6% as growth of 3.2% for TV revenue and a slight increase for Other service revenue, were more than offset by advertising revenue declining by 16.2% driven by a materially weaker advertising market in Sweden compared to the corresponding period of last year.

Adjusted EBITDA declined 45.8% to SEK 127 million (234) and adjusted EBITDA margin declined to 7.1% (12.3). Adjusted EBITDA like for like decreased 44.5% as a result from lower service revenue partly offset by around SEK 60 million in positive operational exchange rate effects.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 41.7% to SEK 36 million (62)

Direct subscriptions video-on-demand (SVOD) increased by ~45,000 in the quarter.

Other operations

Highlights

SEK in millions, except margins, operational data and changes	Jul-Sep 2023	Jul-Sep 2022	Chg %	Jan-Sep 2023	Jan-Sep 2022	Chg %
Revenue1	1,327	1,094	21.2	3,639	3,142	15.8
of which Latvia	947	784	20.8	2,561	2,194	16.7
Change (%) like for like	9.1			8.0
Adjusted EBITDA1	463	357	29.8	871	793	9.9
of which Latvia	263	202	30.5	756	626	20.8
Margin (%)	34.9	32.6		23.9	25.2
Income from associated companies	26	21	26.0	66	49	34.3
of which Latvia	31	29	6.9	96	87	9.9
Adjusted operating income1	-61	28		-628	-68
Operating income1	-110	-84	30.9	-1,164	-402	189.3
CAPEX excluding fees for licenses, spectrum and right-of-use assets1	1,161	1,355	-14.3	4,075	4,376	-6.9
Subscriptions, (thousands)
Mobile Latvia	1,458	1,403	3.9	1,458	1,403	6.0
of which machine-to-machine (postpaid)	430	396	8.6	430	396	9.1
Employees1	6,163	6,113	0.8	6,163	6,113	1.9

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 21.2% to SEK 1,327 million (1,094) and like for like, revenue increased 9.1%. The effect of exchange rate fluctuations was positive by 10.1%.

Adjusted EBITDA increased 29.8% to SEK 463 million (357) and adjusted EBITDA margin increased to 34.9% (32.6).

In Latvia, revenue increased 20.8% to SEK 947 million (784) and like for like, revenue increased 6.2% driven mainly by increased service revenue. The effect of exchange rate fluctuations was positive by 11.6%. Adjusted EBITDA increased 30.5% to SEK 263 million (202) and the adjusted EBITDA margin increased to 27.8% (25.7). Adjusted EBITDA like for like increased 18.4%, driven by the growth for service revenue and lower operational expenses. The number of mobile subscriptions increased by ~4,000 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 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 in the first quarter 2024, at the latest.
• 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 13.

Highlights

SEK in millions, except margins,	Jul-Sep	Jul-Sep	Chg	Jan-Sep	Jan-Sep	Chg
operational data and changes	2023	2022	%	2023	2022	%
Revenue	1,459	1,360	7.3	4,136	3,880	6.6
Adjusted EBITDA	390	340	14.5	1,122	976	14.9
Margin (%)	26.7	25.0		27.1	25.2
change (%) like for like	-3.0			0.5
CAPEX excluding fees for licenses, spectrum and
right-of-use assets	149	154	-3.3	559	443	26.1

Revenue increased 7.3% to SEK 1,459 million (1,360) and like for like, revenue decreased 3.0% due to lower equipment sales. The effect of exchange rate fluctuations was positive by 10.3%.

CAPEX excluding fees for licenses, spectrum and right-of-use assets, decreased 3.3% to SEK 149 million (154).

Adjusted EBITDA increased 14.5% to SEK 390 million (340) and adjusted EBITDA like for like decreased 3.0%.

Condensed consolidated statements of comprehensive income

SEK in millions, except per share data and		Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep
number of shares Revenue	3, 4	Note 2023 21,997	2022 21,096	2023 65,687	2022 62,686
Goods and services purchased		-7,934	-7,625	-24,601	-22,887
Personnel expenses		-3,169	-2,925	-10,870	-9,999
Other external expenses		-2,672	-2,925	-8,453	-8,317
Other operating income and expenses, net		104	-74	-109	-37
EBITDA		8,327	7,547	21,654	21,446
Depreciation, amortization and impairment		-4,847	-4,483	-14,351	-13,336
Income from associated companies and joint ventures		36	22	76	55
Operating income	3	3,515	3,088	7,379	8,165
Financial items, net		-1,134	-782	-2,974	-2,514
Income after financial items	3	2,382	2,306	4,404	5,650
Income taxes		-595	-511	-1,237	-1,254
Net income from continuing operations		1,787	1,794	3,168	4,396
Net income from discontinued operations	13	173	89	448	257
Total net income		1,960	1,883	3,615	4,653
Items that may be reclassified to net income:
Foreign currency translation differences continuing operations		93	119	-567	1,398
Foreign currency translation differences discontinued operations		-78	45	41	145
Cash flow hedges		19	-215	382	147
Cost of hedging		-124	99	-124	186
Debt instruments at fair value through OCI		0	1	0	-10
Income taxes relating to items that may be reclassified		-199	140	217	243
Items that will not be reclassified to net income:
Equity instruments at fair value through OCI		-	43	3	-32
Remeasurements of defined benefit pension plans		354	-715	1,567	8,005
Income taxes relating to items that will not be reclassified		-72	148	-322	-1,636
Other comprehensive income (OCI)		-7	-335	1,197	8,445
Total comprehensive income		1,953	1,548	4,812	13,098
Net income attributable to:
Owners of the parent		1,790	1,710	3,155	4,163
Non-controlling interests		170	174	460	490
Total comprehensive income attributable to:
Owners of the parent		1,947	1,275	4,168	12,314
Non-controlling interests		6	273	644	785
Earnings per share (SEK), basic and diluted		0.46	0.42	0.80	1.02
of which from continuing operations, basic and diluted		0.41	0.40	0.69	0.96
Number of shares (thousands)
Outstanding at period-end	6	3,932,109	3,990,248	3,932,109	3,990,248
Weighted average, basic and diluted		3,932,109	4,028,219	3,932,109	4,068,037
Adjusted EBITDA	2, 15	8,465	7,730	22,763	21,977
Adjusted operating income	2, 15	3,654	3,270	8,488	8,696

Condensed consolidated statements of financial position

SEK in millions		Sep 30,	Dec 31,
Assets	Note	2023	2022
Goodwill and other intangible assets	5	72,152	74,547
Property, plant and equipment	5	71,762	74,824
Film and program rights, non-current		3,063	2,299
Right-of-use assets	5	16,176	16,549
Investments in associated companies and joint ventures, pension obligation assets and other non-current assets	9	10,154	8,171
Deferred tax assets		1,088	1,071
Long-term interest-bearing receivables	7, 9	9,145	7,629
Total non-current assets		183,540	185,090
Film and program rights, current		3,923	3,022
Inventories		2,428	2,918
Trade and other receivables and current tax receivables	9	14,526	15,216
Short-term interest-bearing receivables	7, 9	12,653	9,676
Cash and cash equivalents	7	7,859	6,871
Assets classified as held for sale	13	8,299	-
Total current assets		49,689	37,703
Total assets		233,229	222,793
Equity and liabilities
Equity attributable to owners of the parent		60,563	64,239
Equity attributable to non-controlling interests		3,689	3,434
Total equity		64,252	67,673
Long-term borrowings	7, 9	99,556	94,555
Deferred tax liabilities		10,420	10,514
Provisions for pensions and other long-term provisions		4,962	5,022
Other long-term liabilities		2,171	2,289
Total non-current liabilities		117,109	112,379
Short-term borrowings	7, 9	14,025	7,007
Trade payables and other current liabilities, current tax payables and short-term provisions	12	33,791	35,734
Liabilities directly associated with assets classified as held for sale	12, 13	4,052	-
Total current liabilities		51,868	42,741
Total equity and liabilities		233,229	222,793

Condensed consolidated statements of cash flows

		Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep
SEK in millions	Note	2023	2022	2023	2022
Cash flow before change in working capital		8,780	7,764	23,095	22,222
Increase/decrease film and program right assets and liabilities1		-411	-767	-825	-992
Increase/decrease other operating receivables, liabilities, and inventory		244	116	-4,506	147
Change in working capital		-167	-651	-5,331	-845
Amortization and impairment of film and program rights1		-1,098	-962	-4,150	-3,683
Cash flow from operating activities		7,514	6,151	13,614	17,694
of which from discontinued operations		430	380	907	1 138
Cash CAPEX	15	-3,206	-3,673	-11,628	-10,557
Free cash flow	15	4,309	2,478	1,986	7,137
of which from discontinued operations		246	208	319	654
Cash flow from other investing activities		362	3,342	-4,761	3,735
Total cash flow from investing activities		-2,844	-331	-16,389	-6,822
of which from discontinued operations		-183	-172	-588	-483
Cash flow before financing activities		4,670	5,820	-2,774	10,872
Cash flow from financing activities		-4,077	-7,301	3,771	-15,685
of which from discontinued operations		-151	-30	-266	-174
Cash flow for the period		594	-1,480	997	-4,813
of which from discontinued operations		96	178	53	480
Cash and cash equivalents, opening balance		7,240	11,197	6,871	14,358
Cash flow for the period		594	-1,480	997	-4,813
Exchange rate differences in cash and cash equivalents		107	5	74	175
Cash and cash equivalents, closing balance		7,941	9,721	7,941	9,721
of which from continuing operations		7,859	9,721	7,859	9,721
of which from discontinued operations		82	-	82	-

See Note 15 section Operational free cash flow for further information.

1) Total cash out flow 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	-8,279	-352	-8,631
Share-based payments	10	-	10
Acquisition of treasury shares	-3,683	-	-3,683
Change in non-controlling interests	5,258	190	5,448
Total transactions with owners	-6,694	-162	-6,856
Total comprehensive income	12,314	785	13,098
Cash flow hedge transferred to assets	-10	-	-10
Closing balance, September 30, 2022	86,341	3,435	89,776
Dividends	27	-81	-54
Share-based payments	10	-	10
Acquisition of treasury shares	-1,816	-	-1,816
Change in non-controlling interests	-3	-	-3
Total transactions with owners	-1,781	-81	-1,863
Total comprehensive income	-20,321	80	-20,241
Closing balance, December 31, 2022	64,239	3,434	67,673
Dividends	-7,864	-389	-8,253
Share-based payments	23	-	23
Cancellation of treasury shares, net effect	-	-	-
Bonus issue, net effect	-	-	-
Total transactions with owners	-7,842	-389	-8,231
Total comprehensive income	4,168	644	4,812
Cash flow hedge transferred to assets	-3	-	-3
Closing balance, September 30, 2023	60,563	3,689	64,252

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 and reconciliation of the subtotal EBITDA see section Definitions and Note 15.

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.

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 13.

References

For more information regarding:

• Review of the group, see pages 6-7.
• Significant events, see page 8.
• Risks and uncertainties, see page 38.

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

					Jul-Sep 2022
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	-138	-139	0	-	-19	-	-	-	-296
Mobile interconnect	-	-	-	-	-	-	-	-	-
Other mobile service revenue	0	70	-	-	-	-	-	-	70
Mobile service revenue	-138	-69	0	-	-19	-	-	-	-225
Telephony	22	-4	-	-	-	-	-	-	18
Broadband	181	121	28	-	18	0	-2	-	345
TV	-	-	-	-	-	-	-	-	-
Business solutions	174	176	-27	3	8	0	15	-	348
Other fixed service revenue	-238	-225	-1	-3	-7	0	-12	-	-486
Fixed service revenue	138	69	0	-	19	-	-	-	225
Advertising revenue	-	-	-	-	-	-	-	-	-
Other service revenue	-	-	-	-	0	0	0	-	0
Total service revenue	-	0	-	-	-	-	0	-	0
Equipment revenue	0	-	-	-	-	-	0	-	0
Total external revenue	0	0	-	-	-	-	0	-	0
Internal revenue	0	-5	-	-	-	0	33	-29	-
Total revenue	0	-5	-	-	-	-	33	-29	-
Subscriptions, (thousands)
Mobile	-209	-126	-	-	-34	-	-	-	-370
of which machine-to-machine (postpaid)	-	-	-	-	-	-	-	-	-
Fixed telephony	33	-	15	-	-	-	-	-	48
Broadband	137	151	-3	-	34	-	-	-	319
TV	-80	-	10	-	-	-	-	-	-70

	Jan-Sep 2022
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	-398	-375	1	-	-54	-	-	-	-826
Mobile interconnect	-	-	-	-	-	-	-	-	-
Other mobile service revenue	-	204	0	-	-0	-	-	-	204
Mobile service revenue	-398	-171	1	-	-54	-	-	-	-622
Telephony	67	-13	-	-	-	-	-	-	54
Broadband	531	352	83	-	50	-1	-7	-	1,008
TV	-	-	-	-	-	-	-	-	-
Business solutions	541	509	-82	8	23	1	39	-	1,038
Other fixed service revenue	-741	-677	-2	-8	-19	0	-32	-	-1,478
Fixed service revenue	398	171	-1	-	54	-	-	-	622
Advertising revenue	-	-	-	-	-	-	-	-	-
Other service revenue	-	0	-	-	0	-	-	-	0
Total service revenue	-	0	-	-	-	-	-	-	0
Equipment revenue	-	-	-	-	-	-	-	-	-
Total external revenue	-	0	-	-	-	-	-	-	0
Internal revenue	0	-15	-	-	-	0	91	-77	-
Total revenue	0	-15	-	-	-	-	91	-77	-
Subscriptions, (thousands)
Mobile	-209	-126	-	-	-34	-	-	-	-370
of which machine-to-machine
(postpaid)	-	-	-	-	-	-	-	-	-
Fixed telephony	33	-	15	-	-	-	-	-	48
Broadband	137	151	-3	-	34	-	-	-	319
TV	-80	-	10	-	-	-	-	-	-70

Note 2. Adjustment items

Adjustment items within operating income, continuing operations

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Total within EBITDA	-138	-182	-1,109	-531
Sweden	-13	-23	-147	-99
Finland	-16	-23	-111	-85
Norway	-27	-16	-131	-69
Lithuania	-9	-3	-26	-7
Estonia	-2	-1	-11	-7
TV and Media	-22	-3	-88	-13
Other operations	-48	-112	-535	-419
Sub total	-138	-180	-1,049	-698
whereof personnel redundancy costs	-34	-17	-489	-194
whereof consultant costs including transformation and integration	-67	-77	-297	-267
whereof IT costs including transformation	-40	-48	-162	-139
whereof other	3	-38	-101	-98
Capital gains/losses	1	-2	-59	167
Total adjustment items within operating income1	-138	-182	-1,109	-531

1) Adjustment items affecting operating income in the nine month period 2023 were mainly impacted by higher personnel redundancy costs.

Adjustment items within EBITDA, discontinued operations

SEK in millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep
	2023	2022	2023	2022
Total adjustment items within EBITDA, discontinued operations	44	-17	26	-22

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 13.

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Revenue
Sweden	8,704	8,698	26,667	25,887
of which external	8,683	8,682	26,555	25,833
Finland1	4,144	3,719	12,235	10,993
of which external	4,103	3,678	12,087	10,873
Norway	3,962	3,859	11,345	11,171
of which external	3,903	3,857	11,128	11,136
Lithuania	1,448	1,203	4,076	3,487
of which external	1,443	1,198	4,059	3,470
Estonia	1,052	922	3,050	2,658
of which external	1,049	919	3,038	2,648
TV and Media	1,780	1,898	6,007	6,262
of which external	1,774	1,898	5,987	6,262
Other operations	1,327	1,094	3,639	3,142
Total segments1	22,419	21,394	67,019	63,600
Eliminations1	-422	-298	-1,333	-914
Group	21,997	21,096	65,687	62,686
Adjusted EBITDA
Sweden	3,516	3,394	10,180	10,089
Finland	1,392	1,140	3,847	3,380
Norway	1,978	1,846	5,356	5,103
Lithuania	554	419	1,536	1,235
Estonia	435	340	1,217	989
TV and Media1	127	234	-245	388
Other operations1	463	357	871	793
Total segments	8,465	7,730	22,763	21,977
Eliminations	-	-	-	-
Group	8,465	7,730	22,763	21,977
Operating income
Sweden	1,764	1,647	4,837	4,886
Finland	453	240	988	670
Norway	909	853	2,051	2,037
Lithuania	323	209	863	613
Estonia	283	193	759	580
TV and Media1	-107	31	-956	-218
Other operations1	-110	-84	-1,164	-402
Total segments	3,515	3,088	7,379	8,165
Eliminations	-	-	-	-
Group	3,515	3,088	7,379	8,165
Financial items, net	-1,134	-782	-2,974	-2,514
Income after financial items	2,382	2,306	4,404	5,650

1) Restated, see Note 1.

Sep 30, 2023	Sep 30, 2023	Dec 31, 2022	Dec 31, 2022
Segment	Segment	Segment	Segment
			liabilities
47,386	13,290	46,760	13,351
38,805	3,816	38,303	5,224
48,136	6,408	49,722	7,327
-	-	7,772	2,815
7,695	1,294	7,498	1,975
6,447	923	6,310	1,382
14,260	3,897	13,348	3,381
26,383	7,260	26,570	8,072
189,113	36,889	196,283	43,527
8,299	4,052	-	-
35,817	128,036	26,510	111,593
233,229	168,977	222,793	155,120
	assets	liabilities	assets

Note 4. Revenue

					Jul-Sep 2023
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	3,102	1,699	1,961	475	307	-	458	-	8,001
Mobile interconnect	114	73	97	21	14	-	19	-	338
Other mobile service revenue	157	327	311	11	7	-	12	-	825
Mobile service revenue	3,373	2,098	2,369	507	328	-	489	-	9,164
Telephony	275	12	14	40	23	-	-	-	363
Broadband	1,461	301	426	222	208	-	-	-	2,618
TV	617	147	437	110	90	694	-	-	2,096
Business solutions	928	836	89	130	104	-	10	-	2,098
Other fixed service revenue	709	95	13	109	134	-	-	-	1,060
Fixed service revenue	3,989	1,391	979	611	560	694	10	-	8,235
Advertising revenue	-	-	-	-	-	1,028	-	-	1,028
Other service revenue	231	59	35	6	1	52	176	-	559
Total service revenue1	7,594	3,549	3,382	1,124	888	1,774	675	-	18,986
Equipment revenue1	1,089	554	521	319	160	-	367	-	3,011
Total external revenue	8,683	4,103	3,903	1,443	1,049	1,774	1,043	-	21,997
Internal revenue	22	42	59	5	3	6	284	-422	0
Total revenue	8,704	4,144	3,962	1,448	1,052	1,780	1,327	-422	21,997

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

					Jul-Sep 20222
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	3,098	1,498	1,919	380	253	-	376	-	7,524
Mobile interconnect	116	80	107	28	17	-	25	-	372
Other mobile service revenue	153	264	231	13	7	-	14	-	682
Mobile service revenue	3,367	1,842	2,257	421	276	-	415	-	8,578
Telephony	335	10	24	41	22	-	-	-	432
Broadband	1,416	272	420	180	178	-	-	-	2,465
TV	580	130	445	99	78	661	-	-	1,993
Business solutions	816	756	85	85	85	0	15	-	1,841
Other fixed service revenue	684	84	28	96	107	0	-	-	999
Fixed service revenue	3,831	1,251	1,001	500	471	661	15	-	7,730
Advertising revenue	-	-	-	-	-	1,193	-	-	1,193
Other service revenue	231	61	40	4	2	43	102	-	483
Total service revenue1	7,429	3,155	3,298	924	749	1,898	532	-	17,984
Equipment revenue1	1,253	523	559	274	170	-	332	-	3,112
Total external revenue	8,682	3,678	3,857	1,198	919	1,898	864	-	21,096
Internal revenue	16	41	3	5	3	0	230	-298	0
Total revenue	8,698	3,719	3,859	1,203	922	1,898	1,094	-298	21,096

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-Sep 2023
SEK in millions						TV and	Other
	Sweden	Finland	Norway	Lithuania	Estonia	Media	operations	Elim.	Total
Mobile end user revenue	9,280	4,891	5,606	1,332	893	-	1,314	-	23,317
Mobile interconnect	357	220	298	59	40	-	55	-	1,028
Other mobile service revenue	454	917	763	23	15	-	27	-	2,200
Mobile service revenue	10,091	6,028	6,667	1,414	948	-	1,397	-	26,545
Telephony	851	36	44	119	68	-	0	-	1,118
Broadband	4,324	865	1,267	637	599	-	-	-	7,692
TV	1,797	443	1,288	321	262	2,199	-	-	6,310
Business solutions	2,693	2,560	259	324	302	0	38	-	6,176
Other fixed service revenue	2,108	289	37	354	385	-0	0	-	3,174
Fixed service revenue	11,774	4,193	2,895	1,754	1,616	2,199	38	-	24,469
Advertising revenue	-	-	-	-	-	3,637	-	-	3,637
Other service revenue	720	173	104	16	2	151	429	-	1,594
Total service revenue1	22,585	10,394	9,666	3,184	2,566	5,987	1,863	-	56,246
Equipment revenue1	3,970	1,693	1,462	874	471	-	970	-	9,440
Total external revenue	26,555	12,087	11,128	4,059	3,038	5,987	2,833	-	65,686
Internal revenue	112	148	217	17	13	20	807	-1,333	0
Total revenue	26,667	12,235	11,345	4,076	3,050	6,007	3,639	-1,333	65,687

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

					Jan-Sep 20222
SEK in millions	Sweden	Finland	Norway	Lithuania	Estonia	TV and Media	Other operations	Elim.	Total
Mobile end user revenue	9,212	4,445	5,594	1,082	737	-	1,098	-	22,167
Mobile interconnect	355	247	327	84	48	-	74	-	1,135
Other mobile service revenue	426	732	585	29	13	-	34	-	1,819
Mobile service revenue	9,993	5,424	6,506	1,194	797	-	1,206	-	25,121
Telephony	1,061	31	76	126	70	-	1	-	1,365
Broadband	4,183	815	1,269	522	521	-	-	-	7,310
TV	1,709	402	1,273	298	230	2,110	-	-	6,022
Business solutions	2,518	2,269	250	237	256	1	39	-	5,570
Other fixed service revenue	2,058	249	81	304	321	0	0	-	3,013
Fixed service revenue	11,529	3,766	2,948	1,487	1,398	2,111	40	-	23,280
Advertising revenue	-	-	-	-	-	4,034	-	-	4,034
Other service revenue	733	173	125	10	7	117	324	-	1,489
Total service revenue1	22,255	9,364	9,580	2,691	2,203	6,262	1,570	-	53,924
Equipment revenue1	3,578	1,510	1,557	779	446	-	893	-	8,762
Total external revenue	25,833	10,873	11,136	3,470	2,648	6,262	2,463	-	62,686
Internal revenue	54	120	34	17	9	0	679	-914	0
Total revenue	25,887	10,993	11,171	3,487	2,658	6,262	3,142	-914	62,686

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	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
CAPEX	5,214	4,551	15,099	13,262
Intangible assets	2,196	1,092	3,904	2,760
Property, plant and equipment	2,261	2,769	7,733	8,119
Right-of-use assets	757	690	3,462	2,383
Acquisitions and other investments	349	28	648	143
Asset retirement obligations	339	28	492	66
Goodwill, intangible and tangible non-current assets and right-of-use assets acquired in business combinations	-	-	26	0
Equity instruments	11	0	130	77
Total investments, continuing operations	5,563	4,579	15,747	13,405
Total investments, discontinued operations	372	201	875	743
of which CAPEX	371	200	873	741
Total investments	5,935	4,780	16,622	14,148
of which CAPEX	5,585	4,751	15,971	14,003

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 September 30, 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	Sep 30, 2023	Dec 31, 2022
Long-term borrowings	100,589	94,555
of which lease liabilities, non-current	14,558	13,971
Less 50% of hybrid capital1	-9,747	-9,962
Short-term borrowings	14,251	7,007
of which lease liabilities, current	3,442	3,261
Less derivatives recognized as financial assets and hedging long-term and short-term borrowings and related credit support annex (CSA)	-7,613	-7,373
Less long-term bonds and interest rates derivatives at fair value through income statement and OCI	-4,586	-3,698
Less short-term investments	-5,977	-2,261
Less cash and cash equivalents	-7,941	-6,871
Net debt	78,977	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 long-term and short-term borrowings and related credit support annex (CSA) are part of the balance sheet line-items Long-term interest-bearing receivables and Short-term interest-bearing receivables. Hybrid capital is part of the balance sheet line-item Long-term borrowings. Long-term bonds at fair value through income statement and Other comprehensive income (OCI) are part of the balance sheet line-item Long-term interest-bearing receivables. Short-term investments are part of the balance sheet lineitem Short-term interest-bearing 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. The bond was issued under Telia's existing EUR 12 billion EMTN (Euro Medium Term Note) program. In March 2023, Telia Company issued bonds in four separate tranches with a total amount of SEK 4 billion, under its existing EUR 12 billion EMTN (Euro Medium Term Note) program. The bonds are 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. The proceeds 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.

In April outstanding hybrid bonds with a nominal amount of EUR 100 million (SEK 1.2 billion) was 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 credit 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 13.8 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 third 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

	Sep 30, 2023		Dec 31, 2022
Long-term and short-term borrowings1 SEK in millions	Carrying value	Fair value	Carrying value	Fair value
Long-term borrowings
Interest rate derivatives at fair value	7,553	7,553	7,078	7,078
Cross-currency interest rate derivatives at fair value	154	154	170	170
Long-term borrowings at fair value	7,707	7,707	7,247	7,247
Open-market financing borrowings in fair value hedge relationships	36,565	40,682	38,915	43,439
Open-market financing borrowings at amortized cost	40,863	40,944	33,698	34,335
Other borrowings at amortized cost	578	578	723	723
Lease liabilities at amortized cost	13,843		13,971
Total long-term borrowings	99,556		94,555
Short-term borrowings
Interest rate derivatives at fair value	326	326	50	50
Cross-currency interest rate derivatives at fair value	-	-	179	179
Short-term borrowings at fair value	326	326	229	229
Open-market financing borrowings in fair value hedge relationships	7,851	8,072	1,709	1,726
Open-market financing borrowings at amortized cost	1,929	1,930	949	957
Other borrowings at amortized cost	703	703	858	858
Lease liabilities at amortized cost	3,215		3,261
Total short-term borrowings	14,025		7,007

1) For financial assets the carrying amount is a reasonable approximation of fair value. For information on fair value estimation, see the Annual and Sustainability Report 2022, Note C3 to the consolidated financial statements.

	Sep 30, 2023			Dec 31, 2022
Financial assets and liabilities by fair value hierarchy level1	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 at fair value through OCI	612	-	-	612	601	4	-	596
Equity instruments at fair value through income statement	-	-	-	-	18	-	-	18
Long- and short-term bonds at fair value through OCI	832	832	-	-	836	836	-	-
Long- and short-term bonds at fair value through income
statement	9,736	9,736	-	-	5,174	5,174	-	-
Derivatives designated as hedging instruments	3,237	-	3,237	-	2,205	-	2,205	-
Derivatives at fair value through income statement	754	-	754	-	137	-	137	-
Total financial assets at fair value by level	15,171	10,568	3,991	612	8,971	6,015	2,342	614
Financial liabilities at fair value
Derivatives designated as hedging instruments	8,005	-	8,005	-	7,388	-	7,388	-
Derivatives at fair value through income statement	81	-	81	-	162	-	162	-
Total financial liabilities at fair value by level	8,086	-	8,086	-	7,550	-	7,550	-

1) For information on fair value hierarchy levels and fair value estimation, see the Annual and Sustainability Report 2022, Note C3 to the consolidated financial statements and the 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 done.

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.

	Assets, Jan-Sep 2023
Movements within Level 3, fair value hierarchy, SEK in millions	Equity instruments at fair value through OCI	Equity instruments at fair value through income statement	Total
Level 3, opening balance	596	18	614
Changes in fair value	-	-4	-4
of which recognized in net income	-	-4	-4
Purchases/share issue	15	-	15
Disposals	-2	-	-2
Settlements	-	-13	-13
Exchange rate differences	2	-	2
Level 3, closing balance	612	-	612

	Assets, Jan-Dec 2022
Movements within Level 3, fair value hierarchy, SEK in millions	Equity instruments at fair value through OCI	Equity instruments at fair value through income statement	Total
Level 3, opening balance	576	18	594
Changes in fair value	-46	-	-46
of which recognized in other comprehensive income	-46	-	-46
Purchases/capital contributions	77	-	77
Disposals	-10	-	-10
Settlements	-3	-	-3
Exchange rate differences	3	-	3
Level 3, closing balance	596	18	614

Note 10. Contingent liabilities, collateral pledged and litigations

SEK in millions	Sep 30, 2023	Dec 31, 2022
Issued financial guarantees	349	322
of which referred to guarantees for pension obligations	348	321
Collateral pledged	-	40
Total contingent liabilities and collateral pledged	349	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. However, Telia Company has been granted respite with any payment until date for appeal (when payment respite will be reviewed) and only a minor provision of SEK 46 million has been recognized since it is deemed probable that Telia Company will win a final appeal in court.

The Finnish Tax Agency (FTA) 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	Sep 30, 2023	Dec 31, 2022
Contractual obligations and commitments	16,187	18,479
of which film and program rights	10,667	13,516
Total contractual obligations and commitments	16,187	18,479

Note 12. Accounts payable

SEK in millions	Sep 30, 2023	Dec 31, 2022
Accounts payable, continuing operations	14,069	20,286
of which accounts payable under vendor financing agreements	8,740	11,413
Accounts payable, discontinued operations	410	-
of which accounts payable under vendor financing agreements	5	-
Total accounts payable	14,479	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 39%.

Note 13. 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 in the first quarter 2024, at the latest. 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 are 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 September 30, 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	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Revenue	1,459	1,360	4,136	3,880
Expenses and other operating income, net	-1,249	-1,258	-3,657	-3,588
Operating income	210	102	478	293
Financial items, net	-11	-2	-21	-9
Income after financial items	199	99	457	283
Income taxes	-26	-10	-9	-25
Net income from discontinued operations	173	89	448	257
Adjusted EBITDA	390	340	1,122	976
EPS from discontinued operations (SEK)	0.04	0.02	0.11	0.06

Assets classified as held for sale (Denmark)

SEK in millions	Sep 30, 2023	Dec 31, 2022
Goodwill and other intangible assets	3,282	-
Property, plant and equipment	2,559	-
Right-of-use assets	965	-
Other non-current assets	225	-
Other current assets	1,185	-
Cash and cash equivalents	82	-
Assets classified as held for sale	8,299	-
Long-term borrowings	1,033	-
Long-term provisions	234	-
Other long-term liabilities	1,188	-
Short-term borrowings	227	-
Other current liabilities	1,370	-
Liabilities associated with assets classified as held for sale	4,052	-
Net assets classified as held for sale	4,247	-

Note 14. Financial key ratios

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

	Sep 30, 2023	Dec 31, 2022
Return on equity (%, rolling 12 months)1	neg.	neg.
Return on capital employed (%, rolling 12 months)1	neg.	neg.
Equity/assets ratio (%)1	25.0	26.8
Net debt/adjusted EBITDA ratio (multiple, rolling 12 months)	2.53	2.35
Parent owners' equity per share (SEK)1	15.40	16.34

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

Note 15. 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	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Revenue	21,997	21,096	65,686	62,686
Excluded: Equipment revenue	-3,011	-3,112	-9,440	-8,762
Service revenue (external)	18,986	17,984	56,246	53,924
Excluded: Effects from changes in foreign exchange rates1	-533	-9	-979	167
Excluded: Effects from acquired and disposed operations	-26	-7	-42	-43
Service revenue on a like-for-like basis2	18,427	17,968	55,225	54,048
Change (%) like for like	2.6		2.2
of which Telco operations	16,693	16,071	49,339	47,773
Change (%) like for like, Telco operations	3.9		3.3
of which TV and Media	1,734	1,897	5,886	6,275

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	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
EBITDA	8,327	7,548	21,654	21,446
Adjustment items within EBITDA (Note 2)	138	182	1,109	531
Adjusted EBITDA	8,465	7,730	22,763	21,977
Excluded: Effects from changes in foreign exchange rates1	-165	-6	-256	59
Excluded: Effects from acquired and disposed operations	12	-2	41	-9
Adjusted EBITDA on a like-for-like basis2	8,312	7,722	22,549	22,027
Change (%) like for like	7.6		2.4
of which Telco operations	8,183	7,488	22,788	21,639
Change (%) like for like, Telco operations	9.3		5.3
of which TV and Media	130	234	-239	388
Excluded: Impact from energy cost changes3	-119		71
Adjusted EBITDA on a like-for-like basis2 excluding
impact from energy cost changes3	8,194	7,722	22,620	22,027

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	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Operating income	3,725	3,188	7,857	8,457
Adjustment items within Operating income (Note 2)	94	199	1,083	553
Adjusted operating income	3,819	3,387	8,940	9,010

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

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Investments in intangible assets	2,196	1,092	3,904	2,760
Investments in property, plant and equipment	2,261	2,769	7,733	8,119
CAPEX excluding right of use assets	4,456	3,861	11,637	10,879
Investments in right-of-use assets	757	690	3,462	2,383
CAPEX	5,214	4,551	15,099	13,262
Excluded: investments in license and spectrum fees and right-of-use assets	-2,313	-1,034	-5,035	-2,768
CAPEX excluding fees for licenses and spectrum and right of use assets	2,901	3,516	10,063	10,493

SEK in millions, except ratio	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
CAPEX	5,214	4,551	15,099	13,262
Excluded: investments in right-of-use assets	-757	-690	-3,462	-2,383
Net of not paid investments and additional payments from previous periods	-1,435	-360	-598	-805
Cash CAPEX	3,021	3,502	11,039	10,073
Excluded: Cash CAPEX for licenses and spectrum fees	-17	-236	-262	-423
Cash CAPEX, excluding fees for licenses and spectrum	3,005	3,266	10,778	9,651
Revenue	21,997	21,096	65,687	62,686
Cash CAPEX, excluding fees for licenses and spectrum in relation to Revenue (%)	13.7	15.5	16.4	15.4

Free cash flow (continuing and discontinued operations)

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Cash flow from operating activities	7,514	6,151	13,614	17,694
Cash CAPEX (paid intangible and tangible assets)	-3,206	-3,673	-11,628	-10,557
Free cash flow	4,309	2,478	1,986	7,137

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

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Cash flow from operating activities	7,084	5,772	12,707	16,556
Cash CAPEX	-3,021	-3,502	-11,039	-10,073
Free cash flow, continuing operations	4,063	2,270	1,668	6,483
Excluded: Cash CAPEX for licenses and spectrum fees	17	236	262	423
Excluded: Dividends from associates	-	-	-134	-135
Repayments of lease liabilities	-722	-644	-2,133	-1,942
Operational free cash flow	3,357	1,862	-337	4,828
Excluded: Changes in working capital	303	712	5,262	990
Structural part of Operational free cash flow	3,660	2,574	4,925	5,818

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

SEK in millions, except for multiple	Sep 30, 2023	Dec 31, 2022
Net debt	78,977	71,397
Adjusted EBITDA accumulated current year, continuing operations	22,762	-
Adjusted EBITDA accumulated previous year, continuing operations	6,977	28,954
Adjusted EBITDA accumulated current year, discontinued operations	1,123	-
Adjusted EBITDA accumulated previous year, discontinued operations	397	1,374
Adjusted EBITDA rolling 12 months	31,259	30,328
Net debt/adjusted EBITDA (multiple)	2.53x	2.35x

Adjusted EBITDA margin

SEK in millions, except ratio	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Revenue	21,997	21,096	65,687	62,686
Adjusted EBITDA	8,464	7,729	22,762	21,977
Adjusted EBITDA margin (%)	38.5	36.6	34.7	35.1

Parent company

Condensed income statements

SEK in millions	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022
Revenue	381	235	1,489	1,121
Goods and services purchased	-213	-141	-973	-753
Personnel expenses	-174	-167	-622	-555
Other external expenses	3	-28	-195	-110
Other operating income and expenses, net	-33	-45	-82	-112
EBITDA	-36	-146	-383	-409
Amortization, depreciation and impairment	0	0	0	-1
Operating income	-36	-146	-383	-410
Financial items, net	849	-660	-376	10,077
Income after financial items	812	-806	-759	9,667
Appropriations	-803	2,087	1,734	4,343
Income before taxes	9	1,281	975	14,010
Income taxes	-83	-244	-84	-342
Net income	-74	1,037	892	13,668

Revenue and Goods and services purchased in the third quarter and for the first nine months 2023 increased to SEK 381 million (235) and SEK 1,489 million (1,121) and -213 (-141) and -973 (-753), respectively, mainly related to film and program rights.

Financial items, net in the third quarter 2023 increased to SEK 849 million (-660) mainly impacted by positive foreign exchange gains.

Financial items, net for the first nine months 2023 decreased to SEK -376 million (10,077). 2022 was mainly impacted by the capital gain of SEK 11,063 million from the disposal of Telia Towers Sweden AB.

Condensed balance sheets

SEK in millions	Sep 30, 2023	Dec 31, 2022
Assets
Non-current assets	151,729	153,316
Current assets	44,678	36,833
Total assets	196,407	190,149
Equity and liabilities
Restricted shareholders' equity	15,712	15,712
Non-restricted shareholders' equity	48,679	55,441
Total shareholders' equity	64,390	71,153
Untaxed reserves	5,381	5,862
Provisions	465	432
Long-term liabilities	85,147	79,871
Short-term liabilities and short-term provisions	41,024	32,831
Total equity and liabilities	196,407	190,149

Non-current assets decreased to SEK 151,729 million (153,316) mainly due to decreased long interest-bearing receivables from group companies.

Current assets increased to SEK 44,678 million (36,833) mainly due to increased cash and bank and short-term investments.

Untaxed reserves decreased to SEK 5,381 million (5,862) due to reversal of part of profit equalization reserves.

Long-term liabilities increased to SEK 85,147 million (79,871) mainly impacted by issued bonds and foreign exchange rate effects, partly offset by reclassifications to short-term liabilities.

Short-term liabilities and short-term provisions increased to SEK 41,024 million (32,831) mainly due to reclassifications from long-term liabilities and unpaid dividend liability, partly offset by decreased current interest- bearing liabilities to group companies.

Risks and uncertainties

Telia Company operates mainly across six 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, October 19, 2023

Allison Kirkby President and CEO

Review report

Introduction

We have reviewed the interim report for Telia Company AB (publ) for the period January 1 - September 30, 2023. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, October 19, 2023

Deloitte AB

Peter Ekberg Authorized Public Accountant

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 industry; 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 industry 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 long-term and short-term borrowings) and related credit support annex (CSA), less 50% of hybrid capital (which, consistent with market practice

for the type of instrument, is treated as equity), less short-term investments, long-term 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

Year-end report January-December 2023 January 26, 2024

Annual and Sustainability report 2023 March, 2024

Annual general meeting April 10, 2024

Interim report January-March 2024 April 25, 2024

Interim report January-June 2024 July 18, 2024

This information is information that Telia Company AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.00 CET on October 19, 2023.

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

Telia Company Interim report January – September ²⁰²³ Q3

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