Síminn - Interim / Quarterly Report 2022

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Condensed Consolidated Interim Financial Statements

1 January to 30 June 2022

Síminn hf.

Ármúla 25

108 Reykjavík Kt. 460207-0880

Contents

	Page
Endorsement and Statement by the Board of Directors and the CEO....................................................................................	2-3
Consolidated Income Statement.............................................................................................................................................	4
Consolidated Statement of Financial Position.........................................................................................................................	5
Consolidated Statement of Changes in Equity........................................................................................................................	6
Consolidated Statement of Cash Flows...................................................................................................................................	7
Notes to the Consolidated Financial Statements....................................................................................................................	8 - 13
Quarterly Statements..............................................................................................................................................................	14

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

Endorsement and Statement by the Board of Directors and the CEO

The Condensed Consolidated Interim Financial Statements of Síminn hf. and its subsidiaries (together referred to as "Síminn" or the "Company") for the period 1 January to 30 June 2022 are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. The Financial Statements are neither audited or reviewed by the Company's auditors.

Net profit for the first six months of the year 2022 amounted to ISK 1.251 million, compared to profit of ISK 3.502 million for the same period in 2021, where profit from the sale and operation of Sensa ehf. amounted to ISK 2.124 million. Net profit from continued operations for the first six months of the year 2022 amounted to ISK 963 million, compared to profit of ISK 718 million for the same period in 2021. Total sales for the first six months of the year amounted to ISK 12.129 million according to the Income Statement, compared to ISK 11.955 million for the same period in 2021. Total assets as at 30 June 2022 amounted to ISK 67.979 million and total equity amounted to ISK 29.939 million according to the Statement of Financial Position. The Company's equity ratio was 44,0%.

On 18th of October 2021 Síminn hf. entered into exclusive negotiations with Ardian France SA on the sale of all its shares in Míla ehf. Those negotiations ended on October 23rd with the signing of a share purchase agreement (SPA) on the sale of all shares in the subsidiary Míla ehf. The sale is subject to traditional conditions regarding the approval of the Competition Authority. The Competition Authority announced on 14th of March that the sale would be further investigated. The deadline for the Competition Authority to complete the investigation was on July 27th 2022. The deadline was extended twice and is now until 15th of September 2022.

On July 22nd an announcement was made about changes in the SPA between Síminn hf. and Ardian France SA, where the main points include a change in the enterprise value, which was previously ISK 78 billion as reported in an announcement by Síminn hf. on 23rd of October 2021, including the financial obligations of Míla ehf., which the buyer takes over. It was agreed that the enterprise value should now be ISK 73 billion which is a decrease of ISK 5 billion. According the amended SPA, Síminn hf. will receive ISK 35 billion in cash and ISK 19 billion in the form of three-year bond on the closing date. The bond was ISK 15 billion in the previous SPA. Those changes in the SPA mean that the estimated capital gain is now ISK 41,8 billion, including the cost of the transaction, which is a decrease of ISK 4,6 billion from previous announcement made on 23rd of October 2021.

The Annual General Meeting of Síminn approved on 10 March 2022 a share capital decrease to cancel own shares. The decrease amounted to ISK 240 million in nominal value, share capital decreased from ISK 7.540 million to ISK 7.300 million. The Annual General Meeting of Síminn also approved a share buyback program allowing buyback for up to ISK 730 million in nominal value and a proposal to pay ISK 500 million in dividend to shareholders. The dividend was paid in April. Based on the approval of the Annual Genereal Meeting held in 2022 the Company has purchased own shares for nominal value ISK 91 million, market value ISK 1.107 million. Previously the Company purchased own shares for nominal value ISK 256 million, market value ISK 2.967 based on approval of the Annual General Meeting held in 2021.

Statement by the Board of Directors and the CEO

According to the best of our knowledge the Condensed Consolidated Interim Financial Statements of Síminn hf. are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. It is our opinion that these Condensed Consolidated Interim Financial Statements give a true and fair view of the consolidated financial performance of Síminn hf. for the six months ended 30 June 2022, its assets, liabilities and consolidated financial position as at 30 June 2022 and its consolidated cash flows for the six month period ended 30 June 2022. Further, in our opinion the Condensed Consolidated Interim Financial Statements give a fair view of the development and performance of Síminn's operations and its position and describes the principal risks and uncertainties faced by Síminn hf.

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

Endorsement and Statement by the Board of Directors and the CEO

The Board of Directors and the CEO have today discussed the Condensed Consolidated Interim Financial Statements of Síminn hf. for the period 1 January to 30 June 2022 and confirm them by means of their signatures.

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Reykjavík, 23 August 2022
Board of Directors
Jón Sigurðsson, Chairman
Sigrún Ragna Ólafsdóttir, vice chairman Arnar Þór Másson
Bjarni Þorvarðarson Björk Viðarsdóttir
CEO
Orri Hauksson
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Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

Consolidated Income Statement and other comprehensive income for the period 1 January to 30 June 2022

Notes 2022 1.4.-30.6. 5 5.898 6 3.597) ( 2.301 138 7 1.757) ( 682 90 252) ( 3) ( 8 165) ( 517 9 107) ( 410 13 95 505 1.399 Earnings per share 10 0,05 10 0,05 10 0,01 Net sales ...................................................................................................... Cost of sales ................................................................................................ Gross profit ............................................................................................ Profit for the period ............................................................................... Other operating income .............................................................................. Operating expenses ..................................................................................... Operating profit .................................................................................... Finance income ........................................................................................... Finance cost ................................................................................................ Net exchange rate differences .................................................................... Net financial items ...................................................................................... Profit before tax .......................................................................................... Income tax ................................................................................................... Basic earnings per share discontinued operations ...................................... Profit for the period ............................................................................... Profit from discontinued operation, net of tax ........................................... Diluted earnings per share continued operations ....................................... Basic earnings per share continued operations .......................................... EBITDA .........................................................................................................	2021 1.4.-30.6.* 5.823 3.692) (	2022 1.1.-30.6. 11.855 7.359) (	2021 1.1.-30.6.* 11.726 7.475) (
2.301 138 1.757) ( 682 90 252) ( 3) (	2.131 114 1.702) ( 543 62 140) ( 21) (	4.496 274 3.514) ( 1.256 290 365) ( 2	4.251 229 3.433) ( 1.047 226 290) ( 66) (
165) ( 517 107) ( 410	99) ( 444 102) ( 342	73) ( 1.183 220) ( 963	130) ( 917 199) ( 718
95 505	276 618	288 1.251	2.784 3.502
1.399 0,05 0,05 0,01	1.318 0,05 0,05 0,05	2.726 0,13 0,13 0,04	2.592 0,09 0,09 0,35

The comparative information is restated, see Note 13

The notes on pages 8 to 13 are an integral part of these consolidated financial statements

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Consolidated Statement of Financial Posititon as at 30 June 2022

Notes 30.6.2022 Assets Non-current assets 11 2.195 12 690 13 19.191 9 669 Non-current assets 22.745 Current assets 10 1.140 11 1.994 12 3.512 1.365 13 37.223 Current assets 45.234 Total assets 67.979 Equity 14 7.158 14 1.543 14 154 14 2.347 18.737 Equity 14 29.939 Liabilities Non-current liabilities 15 5.949 16 594 14 406 Non-current liabilities 6.949 Current liabilities 332 2.621 16 182 963 15 1.161 13 25.832 Current liabilities 31.091 Total liabilities 38.040 Total equity and liabilities 67.979 Deferred tax liabilities ..................................................................................................................... Reserves ......................................................................................................................................... Other reserve .................................................................................................................................. Retained earnings ........................................................................................................................... Borrowings ..................................................................................................................................... Liabilities held for sale .................................................................................................................... Current maturities of lease liabilities .............................................................................................. Taxes to be paid .............................................................................................................................. Other liabilities ............................................................................................................................... Bank loans ...................................................................................................................................... Accounts payables .......................................................................................................................... Property, plant and equipment ...................................................................................................... Intangible assets ............................................................................................................................. Other financial assets ..................................................................................................................... Other statutory reserve .................................................................................................................. Lease liabilities ................................................................................................................................ Right-of-use assets ......................................................................................................................... Assets held for sale ......................................................................................................................... Inventories ...................................................................................................................................... Accounts receivables ...................................................................................................................... Other assets .................................................................................................................................... Cash and cash equivalents .............................................................................................................. Share capital ...................................................................................................................................	31.12.2021
	Restated*
	2.219 753 19.403 675
	23.050
	923 2.234 3.082 3.509 36.929
	46.677
	69.727
	7.314 3.278 154 2.020 18.313
	31.079
	5.943 653 604
	7.200
	1.518 2.141 180 894 889 25.826
	31.448
	38.648
	69.727

The notes on pages 8 to 13 are an integral part of these consolidated financial statements

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Consolidated Statement of Changes in Equity 1 January to 30 June 2022

Total equity 1.1.2021 ................................................... Net profit for the period .............................................. Translation difference on foreign operation ............... Payment of dividends (0,05953 per share) .................. Buyback of ordinary shares ......................................... Other changes ............................................................. Total equity 30.6.2021 ................................................. Total equity 1.1.2022 ................................................... Net Profit for the period .............................................. Total equity 30.6.2022 ................................................. Payment of dividends (0,069 per share) ...................... Buyback of ordinary shares ......................................... Share capital decrease ................................................. Other changes .............................................................	Share capital Reserves Other statutory reserve Translation- and other reserve Retained earnings Total equity 8.483 13.041 154 674 14.946 37.298 3.502 3.502 1 1 500) ( 500) ( 890) ( 7.077) ( 7.967) ( 127) ( 1.069) ( 1.196) ( 697 697) ( 0
	7.466 4.895 154 1.372 17.251 31.138
	7.314 3.278 154 2.020 18.313 31.079 1.251 1.251 500) ( 500) ( 156) ( 1.735) ( 1.891) ( 327 327) ( 0
	7.158 1.543 154 2.347 18.737 29.939

The notes on pages 8 to 13 are an integral part of these consolidated financial statements

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Consolidated Statement of Cash Flow 1 January to 30 June 2022

Notes 2022 1.4.-30.6. Cash flow from operating activities 682 Operational items not affecting cash flow: 11-13 717 0 1.399 13 264 109) ( Changes in current assets and liabilitites 168 Cash generated by operation 1.567 91 242) ( 209) ( Net cash from operating activities 1.207 Investing activities 11 271) ( 13 604) ( 13 0 50) ( 13 0 13 0 13 0 0 Investment activities 925) ( Financing activities 500) ( 14 961) ( 0 0 15 0 16 47) ( 1.168) ( Financing activities 2.676) ( 2.394) ( 0 3.759 1.365 Payment of long term lease ....................................................................... Investment in intangible assets .................................................................. Proceeds from sale of property, plant and equipment .............................. Changes in other investment ..................................................................... Investment in subsidiaries .......................................................................... Payment of loan and decrease of capital in subsidiary .............................. Sale of subsidiaries ..................................................................................... Changes in other investment ..................................................................... Cash and cash equivalents at the beginning of the period ..................... Cash and cash equivalents at the end of the period ............................... Dividend paid ............................................................................................. New borrowings ......................................................................................... Payments of non-current liabilities ............................................................ (Decrease) increase in cash and cash equivalents ................................ Effect of exchange rate fluctuations on cash held .................................. Bank loans, (decrease) increase ................................................................. Buyback of ordinary shares ........................................................................ Proceeds from the excercise of share options ........................................... Investment in property, plant and equipment ........................................... Operating profit ........................................................................................ Depreciation ............................................................................................... Gain on sale of fixed assets ........................................................................ Interest income received ........................................................................... Payments of taxes ...................................................................................... Interest expenses paid ............................................................................... Changes in current assets and liabilitites: Changes in inventories ............................................................................... Changes in operating assets ....................................................................... Changes in operating Liabilities ..................................................................	2021 1.4.-30.6.* 543 775 0	2022 1.1.-30.6. 1.256 1.470 4) (	2021 1.1.-30.6.* 1.047 1.545 1) (
1.399 13 264 109) (	1.318 163 362) ( 406	2.722 293) ( 6 768	2.591 43 460 938
168	207	481	1.441
1.567 91 242) ( 209) (	1.525 124 78) ( 219) (	3.203 179 355) ( 348) (	4.032 233 302) ( 439) (
1.207 271) ( 604) ( 0 50) ( 0 0 0 0	1.352 218) ( 426) ( 0 166) ( 12.000 8.334 2.834 0	2.679 377) ( 757) ( 4 169) ( 0 0 0 152	3.524 498) ( 831) ( 7.692 261) ( 12.000 445 2.329 0
925) ( 500) ( 961) ( 0 0 0 47) ( 1.168) (	22.358 500) ( 447) ( 7.968) ( 0 0 42) ( 8.482) (	1.147) ( 500) ( 1.891) ( 0 0 0 93) ( 1.186) (	20.876 500) ( 1.196) ( 7.968) ( 6.000 15.429) ( 85) ( 1.018
2.676) ( 2.394) ( 0 3.759 1.365	17.439) ( 6.271 5) ( 697 6.963	3.670) ( 2.138) ( 6) ( 3.509 1.365	18.160) ( 6.240 12) ( 735 6.963

The comparative information is restated, see Note 13

The notes on pages 8 to 13 are an integral part of these consolidated financial statements

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

1. Reporting entity

Síminn hf. (the "Company") is a public limited liability company domiciled in Iceland. The address of the Company's registered office is Ármúli 25, Reykjavík. The condensed consolidated financial statements for the six months ended 30 June 2022 comprise the Company and its subsidiaries (together referred to as "Síminn" or the "Company") and Síminn's interest in associated companies. The Company is listed on Nasdaq OMX Iceland.

2. Basis of accounting

Statement of compliance

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Company's last annual consolidated financial statements as at and for the year ended 31 December 2021. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements.

The Company's last annual consolidated financial statements is available on the company's website, www.siminn.is, and in the company news release distribution network of Nasdaq Nordic: www.nasdaqomxnordic.com.

These consolidated financial statements were approved and authorised for issue by the Company's Board of Directors on 23 August 2022.

Basis of measurement

These interim financial statements have been prepared on the historical cost basis.

Presentation and functional currency

These interim financial statements are presented in Icelandic Krona (ISK), which is the Company's functional currency. All financial information presented in ISK has been rounded tho the nearest million.

Use of judgements and estimates

In preparing these interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

3. Changes in accounting policies

The accounting policies applied in the consolidated financial statements are the same as those applied in the Company's consolidated financial statements as at and for the year ended 31 December 2021.

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

4. Operating segments

An overview of operating segments is set forward in same manner as regular reporting to the Board of Directors. The Company operates within six segments that sell services and equipment in different markets. The operating segments are as follows:

Operating segment:	Description:	Description:
Operating segments 2022 Fixed Internet & Equipment Other Mobile voice network TV sales revenues Total 2.882 745 3.728 3.274 941 559 12.129 9.403) ( 2.726 1.470) ( 73) ( 220) ( 963 288 1.251 1.130) ( 67.979 38.040 Operating segments 2021 Fixed Internet & Equipment Other Mobile voice network TV sales revenues Total 2.662 805 3.692 3.195 1.033 568 11.955 9.363) ( 2.592 1.545) ( 130) ( 0 199) ( 718 2.784 3.502 6.363 69.615 38.477 Profit for the period ............................................................................................................................................................... Profit from discontinued operation, net of tax ...................................................................................................................... Profit for the period ............................................................................................................................................................... Profit from discontinued operation, net of tax ...................................................................................................................... Revenues form TV broadcast (fees, traffic and advertisement), TV distribution and Síminn TV. TV: .................................................. Revenue from sale of telco equipment. Revenue from i.e. sold telco service, IT and finance. Depreciation ........................................................................................................................................................................... Net finance cost ..................................................................................................................................................................... Net earnings for the period ............................................................................................................................................ Taxes ...................................................................................................................................................................................... Other revenue: ............................... Equipment sales: ............................ Mobile: ........................................... Revenue from mobile services in Iceland and abroad, whether traditional GSM service, satellite service, wholesale mobile service or other mobile service. Fixed voice: ..................................... Revenue from fixed voice service,fees and traffic. Internet & network: ........................ Revenue from data service, incl. xDSL service, GPON, Internet, IP net, local loop and access network. Capital additions ..................................................................................................................................................................... Assets ..................................................................................................................................................................................... Liabilities ................................................................................................................................................................................. Expenses ................................................................................................................................................................................. Assets ..................................................................................................................................................................................... Capital additions ..................................................................................................................................................................... Depreciation ........................................................................................................................................................................... Net finance cost ..................................................................................................................................................................... Share of earnings of associated companies ............................................................................................................................ Liabilities ................................................................................................................................................................................. Revenue .......................................... Revenue .......................................... Expenses ................................................................................................................................................................................. EBITDA .................................................................................................................................................................................... EBITDA .................................................................................................................................................................................... Taxes ...................................................................................................................................................................................... Net earnings for the period ............................................................................................................................................	Fixed Internet & Equipment Other Mobile voice network TV sales revenues Total Revenues form TV broadcast (fees, traffic and advertisement), TV distribution and Síminn TV. Revenue from sale of telco equipment. Revenue from i.e. sold telco service, IT and finance. Revenue from mobile services in Iceland and abroad, whether traditional GSM service, satellite service, wholesale mobile service or other mobile service. Revenue from fixed voice service,fees and traffic. Revenue from data service, incl. xDSL service, GPON, Internet, IP net, local loop and access network.
		12.129 9.403) (
		2.726 1.470) ( 73) ( 220) (
		963 288
		1.251
		1.130) ( 67.979 38.040 Total
		11.955 9.363) (
		2.592 1.545) ( 130) ( 0 199) (
		718 2.784
		3.502
		6.363 69.615 38.477

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

5. Net sales

5. Net sales Sales of service and goods is specified as follows: Sales of goods ................................................................................................................................................. Sales of service ...............................................................................................................................................	2022 2021 1.1.-30.6. 1.1.-30.6. 10.758 10.592 1.097 1.134 11.855 11.726

No customer comprises more than 10% of net sales.

6. Cost of sales

Cost of sales is specified as follows:

Cost of service sold .........................................................................................................................................
Cost of goods sold ...........................................................................................................................................
Depreciation cost of sold services ...................................................................................................................
Interconnecting fees .......................................................................................................................................
Salaries and related expenses .........................................................................................................................
Capitalised work ..............................................................................................................................................

429
387
4.549
4.623
351
321
1.017
1.036
99)
(
102)
(
1.112
1.210
7.359
7.475

Cost of service sold consists of; material costs, service contracts, license fees, purchased services and telecommunications costs.

7. Operating expenses

Operating expenses is specified as follows:

Depreciation operating expenses ....................................................................................................................
General and administrative expenses .............................................................................................................
Sales and marketing expenses .........................................................................................................................
Housing and transportation expenses .............................................................................................................
Salaries and related expenses .........................................................................................................................
IT-Expenses .....................................................................................................................................................

1.678
1.624
273
266
245
276
551
531
409
402
358
334
3.514
3.433

8. Financial income and expense

Financial income and finance costs are specified as follow:

Finance income
Finance expense
Dividend received ...........................................................................................................................................
Interest on borrowings ...................................................................................................................................
Loan write-downs ...........................................................................................................................................
Other finance expenses ..................................................................................................................................
Net exchange rate differences .......................................................................................................................
Other financial income ...................................................................................................................................
Interest expense from lease liability ...............................................................................................................
Net financial items .........................................................................................................................................
Interest income ..............................................................................................................................................

175
224
113
0
2
2
290
226
165)
(
137)
(
15)
(
9)
(
20)
(
23)
(
165)
(
121)
(
365)
(
290)
(
2
66)
(
73)
(
130)
(

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

9. Other financial assets
Other financial assets are specified as follows:
Investment in other companies .....................................................................................................................
Other financial assets total .............................................................................................................................
TV programs ...................................................................................................................................................
Non-current reveivables .................................................................................................................................

30.6.2022
31.12.2021
38
47
312
237
319
391
669
675

10. Inventories

Inventories are specified as follows:

TV programs ...................................................................................................................................................
Inventory total ...............................................................................................................................................
Finished goods ................................................................................................................................................

564
369
576
554
1.140
923

11. Accounts Receivables

Accounts receivables are specified as follows:

Allowances for doubtful accounts ...................................................................................................................
Accounts receivables total .............................................................................................................................
Accounts receivables .......................................................................................................................................

2.101
2.341
107)
(
107)
(
1.994
2.234

12. Other assets

Other assets are specified as follows:

Prepayments and accrued income .................................................................................................................
Other current assets .......................................................................................................................................
Other assets total ...........................................................................................................................................

2.300
2.210
1.212
872
3.512
3.082

13. Planned sale of subsidiary

On the 18th of October 2021 Síminn hf. entered into exclusive negotiations with Ardian France SA on the sale of all its shares in Míla ehf. Those negotiations ended on October 23 with the signing of a SPA on the sale of all shares in the subsidiary Míla ehf. The sale is subject to traditional conditions regarding the approval of the Competition Authority.

The value of the transaction (e. enterprise value) is ISK 73 billion, including the financial obligations of Míla ehf. which the buyer takes over. According to the amended SPA, Síminn will receive ISK 35 billion in cash and ISK 19 billion in the form of a three-year bond on the closing date. The estimated capital gain is ISK 41,8 billion, considering the cost of the transaction. A long-term wholesale agreement was made for Síminn's purchase of Míla's services.

Míla ehf. is a wholesale company in the electronic communications market and Míla ehf. core business is to build and operate the electronic communications infrastructure nationwide. Míla's role is to sell its wholesale solutions to companies and institutions engaged in electronic communications activities. The company's specialization includes operations and consulting for the development of electronic communications systems and the rental of facilities and masts. Míla ehf. systems are the basis for a wide range of electronic communications services throughout the country.

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

13. Planned sale of subsidiary, contd.:

Due to the sale, the assets and liabilities of Míla ehf. are classified as assets and liabilities for sale in the financial statements 30.6.2022.

The operation of Míla ehf. is now specified in one line in the income statement as discontinued operations. Comparative figures for 2021 have been adjusted accordingly.

Results of discontinued operation: At period end, the assets and liabilities of Míla ehf. are as follows: 14. Deferred tax Analysis of movements in the net deferred tax balances during the period is as follows: External expenses ........................................................................................................................................... Accounts receivables ...................................................................................................................................... Cash and cash equivalents .............................................................................................................................. Assets held for sale ......................................................................................................................................... Borrowings ..................................................................................................................................................... Operating assets ............................................................................................................................................. Inventories ..................................................................................................................................................... Current liabilities ............................................................................................................................................ Elimination of inter-segment revenue ............................................................................................................ Liabilities held for sale .................................................................................................................................... Intangible assets ............................................................................................................................................. Non-current reveivables ................................................................................................................................. Profit from discontinued operations, Sensa ehf. ............................................................................................ Profit from discontinued operations, total ..................................................................................................... Goodwill ......................................................................................................................................................... Results from operating activities .................................................................................................................... External revenue ............................................................................................................................................ Expenses ......................................................................................................................................................... Elimination of expenses related to inter-segment sales ................................................................................. Revenue ......................................................................................................................................................... Income tax ...................................................................................................................................................... Profit from discontinued operations, Míla ehf. .............................................................................................. Taxes to be paid............................................................................................................................................... Deferred tax liability at the end of the period.................................................................................................. Prior year correction........................................................................................................................................ Changes due to sale......................................................................................................................................... Income tax posted to the income statement................................................................................................... Deferred tax at the beginning of the year........................................................................................................	2022 1.1.-30.6. 879 156) (	2021 1.1.-30.6. 889 85) (
	723	804
	3.733) ( 3.374	3.347) ( 3.372
	359) (	25
	364 76) (	829 169) (
	288	660
	0 288 30.6.2022 10.927 1.754 21.526 73 585 1.835 523	2.124 2.784 31.12.2021 10.927 1.819 21.336 85 513 1.345 904
	37.223	36.929
	23.350 2.482	23.609 2.217
	25.832	25.826
	30.6.2022 604 0 212 410) ( 0	31.12.2021 670 417 421 879) ( 25) (
	406	604

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Notes to the Consolidated Financial Statements

15. Other liabilities

Other liabilities are specified as follows:

Other liabilities are specified as follows:
Other ..............................................................................................................................................................
Other liabilities total .......................................................................................................................................
Accrued expenses ...........................................................................................................................................
Salaries and related expenses ........................................................................................................................
VAT .................................................................................................................................................................

30.6.2022
31.12.2021
543
458
319
152
286
266
14
13
1.162
889

16. Legal proceedings

The Company is currently involved in several legal disputes that relate i.a. to Competition and Media Act.

Síminn and Sýn hf. have been in a dispute regarding distribution of media content. The Competition Authority and Post- and Telecommunication Authority (now Electronic Communication Office) ruled that Síminn breached against media act no. 10/2018 and fined Síminn. The fine, 9 million ISK has already been payed. The Company believes that its actions are fully compliant with the relevant Acts and appealed the decision to the District Court of Reykjavík. The Reykjavík District Court ruled on the matter and partially annulled the decision and lowered the fine to 7 million ISK. Síminn, Sýn and the PTA filed brought the case to the National Court, which confirmed the PTA decisions and increased the fine to 9 mkr. Síminn has requested permission to appeal the case to the Supreame Court. After the initial decisions of the PTA Sýn hf. filed a claim against Síminn for compensation of 1.9 billion ISK. Síminn rejected the claim and pointed out that in Sýn hf. claim there are no arguments for compensation, nor an attempt to prove the alleged loss. Síminn believes there is no base for the claim from Sýn hf. and the District Court dismissed the case due the failure to state the reasoning for the case. Sýn hf. later filed a motion to appoint two Court appointed assessors and has filed a case against Síminn before the District Court and claimed damages of 125 million ISK. Síminn has rejeceted this claim and has filed its written. Gagnaveita Reykjavíkur filed a claim against Síminn of 1.3 billion ISK. Síminn has rejected the claim and has pointed out that in the claim there are no arguments to conclude that conditions for liability damages existed. Síminn believes there is no base for the claim. PTA and Sýn have sued Siminn before the District Court of Reykjavík in order to have the ruling of the Committee for Electronic Communications and Postal Affairs, annulment, whereby the Committee annulled the PTA decision no 27/2019 where the PTA imposed a fine of 9 million ISK on Síminn. Síminn will demand that the ruling of the Committee shall be confirmed. Despite the uncertain nature of the outcome of these cases, it is the management opinion that the cases will not result in substantial financial cost. In those cases where the Company might be forced to pay damages, the cost is estimated by the management and recognised in the financial statement.

The Competition Authority reached a decision that Síminn had infringed Competition Authority Decision no. 6/2015 and 20/2015 and fined Síminn for 500 million ISK, which the Company paid. Síminn appealed the decision to the Competition Appeal committee in order to have the CA decision annulled. The CAC annulled that part of the CA decision that related to alleged infringment of Decision no 6/2015 and lowered the fine down to 200 million ISK. The Company is of the opinion that the arrangements for the sale of the Company's services are fully in accordance with the Competition Act and the decisions that the Company has made on the basis of the Competition Act. Síminn has filed a lawsuit before the Reykjavík District Court with a claim for annulment of the part of the ruling of the Competition Appeals Committee which concerned an alleged infringement of the Competition Authority's decision no. 20/2015. The Competition Authority has also filed a lawsuit before the Reykjavík District Court, demanding that the part of ruling of the Competition Appeals Committee in the case will be repealed, whereby Committee descided to annull part of the Competition Authority's decision no. 25/2020 and reduced the fines originally imposed.

17. Subsequent event

There are no subsequent events to report.

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

Quarterly Statements - unaudited

Summary of the Company's operating results by quarters:

1 F 2022 5.957 3.762) (	2 F 2022 5.898 3.597) (	Total 11.855 7.359) (
2.195 136 1.757) (	2.301 138 1.757) (	4.496 274 3.514) (
574 92	682 165) (	1.256 73) (
193	95	288
859 113) (	612 107) (	1.471 220) (
746 1.327	505 1.399	1.251 2.726

1 F 2021 5.903 3.783) (	2 F 2021 5.823 3.692) (	3 F 2021 6.004 3.766) (	4 F 2021 Total 6.300 24.030 4.292) ( 15.533) ( 2.008 8.497 164 513 1.799) ( 6.750) (
2.120 115 1.731) (	2.131 114 1.702) (	2.238 120 1.518) (
504 31) ( 2.508	543 99) ( 276	840 56 323	373 2.260 40) ( 114) ( 371 3.478 704 5.624 50) ( 411) ( 654 5.213 1.283 5.502
2.981 97) (	720 102) (	1.219 162) (
2.884 1.274	618 1.318	1.057 1.627

Síminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2022

All amounts are in millions of ISK

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Síminn Interim / Quarterly Report 2022

2203_rns_2022-08-23_721db27c-e400-4286-9ce9-b3ee9642b62f.pdf

Condensed Consolidated Interim Financial Statements

Statement by the Board of Directors and the CEO

Consolidated Income Statement and other comprehensive income for the period 1 January to 30 June 2022

Consolidated Statement of Financial Posititon as at 30 June 2022

Consolidated Statement of Cash Flow 1 January to 30 June 2022

1. Reporting entity

2. Basis of accounting

Statement of compliance

Basis of measurement

Presentation and functional currency

Use of judgements and estimates

3. Changes in accounting policies

4. Operating segments

Notes to the Consolidated Financial Statements

5. Net sales

6. Cost of sales

7. Operating expenses

8. Financial income and expense

Notes to the Consolidated Financial Statements

10. Inventories

11. Accounts Receivables

12. Other assets

13. Planned sale of subsidiary

13. Planned sale of subsidiary, contd.:

15. Other liabilities

16. Legal proceedings

17. Subsequent event

Quarterly Statements - unaudited

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Síminn — Interim / Quarterly Report 2022

2203_rns_2022-08-23_721db27c-e400-4286-9ce9-b3ee9642b62f.pdf

Condensed Consolidated Interim Financial Statements

Statement by the Board of Directors and the CEO

Consolidated Income Statement and other comprehensive income for the period 1 January to 30 June 2022

Consolidated Statement of Financial Posititon as at 30 June 2022

Consolidated Statement of Cash Flow 1 January to 30 June 2022

1. Reporting entity

2. Basis of accounting

Statement of compliance

Basis of measurement

Presentation and functional currency

Use of judgements and estimates

3. Changes in accounting policies

4. Operating segments

Notes to the Consolidated Financial Statements

5. Net sales

6. Cost of sales

7. Operating expenses

8. Financial income and expense

Notes to the Consolidated Financial Statements

10. Inventories

11. Accounts Receivables

12. Other assets

13. Planned sale of subsidiary

13. Planned sale of subsidiary, contd.:

15. Other liabilities

16. Legal proceedings

17. Subsequent event

Quarterly Statements - unaudited

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Síminn Interim / Quarterly Report 2022