Interim report JanuaryMarch 2004 Anders Igel President and

Interim report January–March 2004 Anders Igel President and CEO April 28, 2004

Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia. Sonera. April 28, 2004 2

Telia. Sonera January-March 2004 • Net sales amounting to SEK 19, 946 million (20, 349), were on the same level as the preceding year adjusted for changes in exchange rates • EBITDA excl. non-recurring items decreased to SEK 7, 200 million (7, 562) • Free cash flow amounted to SEK 2, 194 million (3, 897), negatively affected by tax payments for the previous year • Operating income increased to SEK 4, 122 million (3, 288) • Net income increased to SEK 2, 344 million (1, 639) and earnings per share to SEK 0. 50 (0. 35) April 28, 2004 3

Good performance despite tough competition in home market • Declining market trends turned around in Sweden • Accelerating initiatives to reach competitive cost levels in all operations • Impressive growth and profitability in Eurasia • Important steps towards simplicity and usage of mobile data – Intranet anywhere: Launch of Telia Connect Pro • 3 G launch in Sweden April 28, 2004 4

Strong market initiatives yield strong customer growth Consolidated companies 22, 400, 000 +8% 20, 700, 000 April 28, 2004 Associated companies 28, 900, 000 +34% 21, 500, 000 5

Advantages by being a large international group Telia. Sonera is more than the sum of its parts • Pan-Nordic service offerings – Homerun – Nordic mobile offering • Exceeded synergies – Executed decisions higher than target so far – Common product development – Best practice benchmarking throughout the group April 28, 2004 6

Rapid GPRS expansion in Nordic markets GPRS subscriptions (thousands) Sweden Finland Norway Denmark 1 1) GPRS included in all mobile subscriptions since Jan 1, 2004 April 28, 2004 7

Encouraging early MMS growth Number of MMS (thousands) Sweden Finland Norway Denmark 1 1) Paid MMS started in Dec April 28, 2004 8

Faster, easier and more fun! Improved mobile data services with 3 G • The speed of 3 G radically improves the customer experience • Range of services will be expanded April 28, 2004 9

Broadband – climbing on all markets Subscriptions (thousands) April 28, 2004 Sweden Finland Denmark Lithuania 10

Market share gains and sustained strong margins in Sweden • Increased market and customer orientation yield results • Gained market shares within mobile services to business customers and within consumer fixed voice • Accelerated initiatives to secure competitive cost levels Performance Q 1 2004 Mobile Sales, year-on-year Customers, total Fixed voice Sales, year-on-year Customers, total +5% 4, 008, 0001 -8% 6, 248, 000 • 3 G launched March 10 Internet and data Sales, year-on-year Customers, total Of which broadband 1) 135, 000 customers added due to a changed policy for termination of prepaid customers April 28, 2004 11 +5% 1, 239, 000 423, 000

Telia. Sonera Sweden – ARPU and Mo. U ARPU SEK Post-paid Maintained post-paid ARPU despite lower prices Total Prepaid Mo. U minutes Post-paid Total Prepaid April 28, 2004 12 Churn 8% in Q 1 2004 Unchanged blended Mo. U despite strong customer intake and larger portion of prepaid customers

Negative trend broken in Sweden fixed • Positive impact by bundled and flat-rate offers such as: +110, 000 Telia callers – Favorit – Fritid – Vi Bjuder Q 4 2003 April 28, 2004 Q 1 2004 13

Increased sales on a tough Finnish market • Increased net sales due to : Performance Q 1 2004 – Strong broadband growth – Increased sales to mobile service providers – Acquisition of Auria • Increased efforts to regain end-customer market share with maintained profitability • Increased mobile usage, SMS and MMS April 28, 2004 Mobile Sales, year-on-year Customers, total +2% 2, 321, 000 Fixed voice Sales, year-on-year Customers, total +8% 790, 000 Internet and data Sales, year-on-year Customers, total Of which broadband +14% 310, 000 174, 000 14

Telia. Sonera Finland – ARPU and Mo. U Quite stable ARPU despite substantial price reductions ARPU EUR Churn 37% in Q 1 2004 Mo. U minutes Mo. U continues to grow April 28, 2004 15

Lower prices reduce total market growth in Norway • Competition still intensive Performance Q 1 2004 – High subsidises – Lower prices • Net. Com continues with offerings and new marketing programs Mobile Sales, year-on-year in local currency Customers, total • Initiatives to drive MMS growth • Net sales were negatively affected by exchange rate fluctuations April 28, 2004 16 -5% +8% 1, 190, 000

Norway – Mobile ARPU and Mo. U ARPU NOK Post-paid Total Prepaid Churn 19% in Q 1 2004 Mo. U minutes Post-paid Total Prepaid April 28, 2004 Continued strong increase in usage combined with price reductions gives stable ARPU 17

Robust sales and earnings growth in Denmark • Positive growth across all operations after a successful restructuring Performance Q 1 2004 • Mobile – Telia Xpress – SMS and MMS success – Increased traffic volume per customer • Fixed Voice – Net sales are climbing again • Cable – New attractive offerings and increased transfer speed April 28, 2004 Mobile Sales, year-on-year Customers, total +34% 544, 000 Fixed voice Sales, year-on-year Customers, total +13% 179, 000 Cable Sales, year-on-year Broadband customers, total +26% 113, 000 18

Denmark – Mobile Mo. U Strong customer and Mo. U growth minutes Post-paid Total Prepaid April 28, 2004 19

Strong mobile growth in Baltic countries • Strong mobile growth and reduced customer loss within fixed voice in Lithuania • Strong mobile growth and good earnings in fixed in Latvia • Stable performance in Estonia – Cash offer on Eesti Telekom Performance Q 1 2004 Estonia 1: Sales, year-on-year Customers, total Mobile +12% 502, 000 Fixed +8% 500, 0002 Latvia: Sales, year-on-year in local currency Customers, total Mobile +6% +13% 554, 000 Fixed 1 -4%3 681, 0002 Lithuania: Mobile Sales, year-on-year +9% Customers, total 1, 101, 000 Fixed -10% 897, 0002 1) Associated company 2) Including Internet 3) Jan–Dec 2003 April 28, 2004 20

Rapidly reduced churn in Lietuvos Telekomas Loss of main lines (thousands) Q 3 2002 April 28, 2004 Q 4 2002 Q 1 2003 Q 2 2003 Q 3 2003 Q 4 2003 Q 1 2004 21

Strong performance in International operations Russia • Over 1. 4 million new customers Eurasia • Strong margin improvement and strong customer growth Turkey • Continued strong customer growth • Turkcell’s result impacted by provisions International Carrier • Weak demand for IP and capacity on the market April 28, 2004 Performance Q 1 2004 Russia – Mega. Fon Customers, total 7, 587, 000 Eurasia – Fintur companies Customers, total 2, 679, 000 Turkey – Turkcell Customers, total 22 19, 600, 000

Outlook – Focused growth by acquisitions • Ready to take majority in associated companies • Financial position and merger experience allow us now to participate in European consolidation Cash offer on Eesti Telekom • Owns Estonian operators Elion and EMT • Build on or increase strength in the Nordic and Baltic home market • Acquisition requirements – Value enhancing by fulfilling our return requirements Telia. Sonera acquisition record: – Maintained solid financial position April 28, 2004 23

Outlook 2004 – Commitment to pursue profitable growth • Good growth in mobile, decline in fixed voice and strong growth in Internet based services is expected in the market • Ambition to develop organic revenue growth in line with or better than our markets • Continued adaptation of cost structure to reflect market conditions of different segments in competitive home market • Margins will be positively impacted by continued efficiency improvements and increased volumes, and negatively by lower prices • Free cash flow will remain strong although impacted by higher cash taxes, somewhat increased CAPEX and higher use of the provisions April 28, 2004 24

Focus going forward Main challenge 2004 • Continue to improve market position while maintaining our strong profits and cash flow – Commercial actions – win back market shares – Continued synergy realization – Efficiency improvements – Profitable growth organically and by acquisitions – Realize the vision April 28, 2004 25

Kim Ignatius CFO April 28, 2004

Telia. Sonera key figures Jan–Mar 2004 SEK million Jan–Mar 2004 Jan–Mar 2003 Net sales 19, 946 20, 349 Change in net sales (%) -2. 0% 3. 6% EBITDA excl. non-recurring items 7, 200 7, 562 36. 1% 37. 2% 354 84 Operating income 4, 122 3, 288 Operating income excl. non-recurring items 3, 761 3, 288 Income after financial items 3, 834 2, 772 Net income 2, 344 1, 639 0. 50 0. 35 CAPEX 1, 758 1, 676 Free cash flow 2, 194 3, 897 Margin (%) Income from associated companies Earnings/loss per share (SEK) April 28, 2004 27

Q 1 2003 – Q 1 2004 Net sales change • Net sales were on the same level adjusted for changes in exchange rates • Acquisitions/divestitures positive effect of 1% SEK million • Acquisition of Auria • Wholesale revenue up • Mo. U increase Restructuring Continued strong growth Loss of fixed subscribers and traffic volumes Sales per market International Carrier Eurasia Baltic countries Denmark Norway Successful marketing efforts Finland April 28, 2004 Holding 28 Sweden

Q 1 2003 – Q 1 2004 Continued reduction of OPEX excl. non-recurring items -1% SEK million • Auria acquisition • Higher interconnection costs • Higher marketing costs High production cost due to revenue growth Increased traffic volumes • Lower cost due to changed business relation with Eniro • Lower personnel costs • Marketing and consultant costs up due to increased activity level April 28, 2004 Restructuring Volume increase Customer growth in mobile 29

Q 1 2003 – Q 1 2004 EBITDA excl. non-recurring items down -5% SEK million • Price erosion • Higher marketing cost • Shift from end customer to wholesale Drop in net sales partly compensated by lower OPEX April 28, 2004 Customer growth and higher ARPU in Mobile • Price erosion • Higher interconnect costs • Centralized HQ functions • Higher internal eliminations Higher sales and economies of scale 30

Q 1 2003 – Q 1 2004 Operating income excl. non-recurring items SEK million • Lower depreciation in Sweden • Growth and improved profitability in Russia • Provision for legal disputes and deferred tax asset booked in Turkcell. Growth and improved profitability excluding one offs. • Improved profitability for associates in Holding April 28, 2004 31

Further initiatives keep synergies ahead of schedule • Decided synergies yearly run rate by the end of 2005 – OPEX SEK 1, 868 million – CAPEX SEK 460 million • Realized synergies 2003 – OPEX SEK 882 million – CAPEX SEK 481 million • Realized synergies Q 1 2004 – OPEX SEK 268 million – CAPEX SEK 105 million April 28, 2004 Committed to merger target • Total annual pre-tax cash flow synergies post 2005 estimated to be approx. SEK 2. 7 billion (EUR 300 million) 32

Non core assets • Successful divestment of Telia Finans generated a capital gain of SEK 429 million and positive cash flow of SEK 6, 000 million. Several smaller divestments were done as well. • Yahoo exercised its option to sell back its 16% stake in ZED to Telia. Sonera. Purchase price EUR 7 million. • Vodafone’s shares in Xfera acquired for EUR 9 million. Capital infusion to Xfera of EUR 3 million • Sergel Kredittjänster AB and Telia. Sonera Payphone AB transferred from Holding to Telia. Sonera Sweden April 28, 2004 33

Financial position further strengthened SEK billion Mar 31, 2004 Dec 31, 2003 59% 57% Net debt-to-equity ratio 9% 17% Free cash flow yield 6% 12% Book return on equity 9% 7% Equity-to-assets ratio • Free cash flow of SEK 2. 2 billion, negatively affected by tax payments for the previous year • Divestment of Telia Finans reduced net debt by SEK 6. 0 billion • Sustain a high level of financial flexibility with focus on long-term liquidity position • Scheduled debt repayments SEK 3. 4 billion in 2004 and SEK 11. 7 billion in 2005 April 28, 2004 34

The Nordic and Baltic telecommunications leader April 28, 2004