INTERIM REPORT

JANUARY - SEPTEMBER 2016

JOHAN DENNELIND, PRESIDENT & CEO

Q3

Q3 SLOWDOWN IN LINE WITH PROJECTIONS

- CONTINUING OPERATIONS

Q3 2016 9M 2016

S E R V I C E R E V E N U E G R O W T H

Reported -0.7

Organic -1.1

Reported -0.9

Organic -0.7

E B I T D A * G R O W T H F R E E C A S H F L O W

Reported -1.5

Organic -1.6

SEK 3.3 billion

Reported +3.9

Organic +4.2

SEK 7.1 billion

*Excluding non-recurring items

2

Full Eurasia exit demands more time Full year guidance reiterated Rebalancing continues - focus on Nordics & Baltics Focus on value loading offerings Core business on track

THIRD QUARTER IN BRIEF

Proposed settlement amount received from U.S. and Dutch authorities related to entry in Uzbekistan TV proposition strengthened

3

SETTLEMENT PROPOSAL RECEIVED FROM AUTHORITIES

  • Global resolution (US & Dutch authorities) with proposed settlement of USD 1.45 billion

  • Related to Telia Company's entry into Uzbekistan in 2007

  • Provision made in accordance with the proposed settlement amount

  • Telia Company in discussions with authorities

4

"ACCELERATING SUSTAINABLE GROWTH" REPORT RELEASED

AVAILABLE AT TELIACOMPANY.COM

"SUSTAINABILITY UPDATE" REPORT RELEASED

AVAILABLE AT TELIACOMPANY.COM

ACTIVE SUSTAINABILITY AGENDA

NEW "CODE OF RESPONSIBLE BUSINESS CONDUCT"

AVAILABLE AT TELIACOMPANY.COM

"HUMAN RIGHTS IMPACT ASSESSMENT" REPORT RELEASED

AVAILABLE AT TELIACOMPANY.COM

"LAW ENFORCEMENT DISCLOSURE" REPORT RELEASED

AVAILABLE AT TELIACOMPANY.COM

5

DIVESTMENTS ONGOING

RECENTLY DIVESTED ASSETS

REMAINING EURASIAN ASSETS

  • Divested to Axiata. Transaction closed in Q2

  • Exploring divestment of Fintur Holdings together with

the minority owner Turkcell

  • Divested to MÁSMÓVIL. Completed on October 5

  • More time needed to fully exit region Eurasia

  • Divested to Marginalen. Closing estimated before

year-end

  • Divested to Aga Khan Fund for Economic

Development. Closing estimated before year-end

6

CORE BUSINESS ON TRACK

SERVICE REVENUES

Organic growth, external service revenues

Sweden Europe

Continuing operations

+0.8%

-1.1%

-1.6%

1.3%

-1.6%

  • Less support from fiber revenues and a negative • EBITDA erosion in Sweden from service revenue

    B2B segment in Sweden decline

  • Stable growth in Europe as mobile service • Europe benefits from service revenue growth and

revenues offset pressure on fixed overall solid cost control

7

EBITDA

Organic growth, excluding non-recurring items

Sweden Europe Continuing operations

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Q3

15

-4.0%

Q3 Q3

16 15

Q3 Q3

16 15

Q3

16

SWEDEN- STABLE B2C BUT STILL CHALLENGES IN B2B

SERVICE REVENUES BY SEGMENT

Organic growth, external service revenues

Incl. fiber installation revenues Excl. fiber installation revenues

B2C

TELIA FIBER HOUSEHOLDS

Telia passed, not connected Communication operator

Telia connected (MDUs + SDUs)

1.45 million

  1. million

    +1.4%

    +0.6%

    Q3 15 Q3 16

    B2B

    -6.6%

    Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

    • Deliveries impacted by increased permit lead

    • Stable B2C development but lower contribution from fiber installation revenues

    • Positive development in SME/SoHo but continued price pressure in B2B large

8

time and sub-contractor delays

  • Targeted full year order book achieved although some deliveries will spill over to 2017

  • Target of 1.9 million homes reached by end of 2018 intact

Telia Company AB published this content on 21 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 October 2016 05:08:02 UTC.

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