Stockholm 10 May 2001 Interim Report January March

Stockholm, 10 May 2001 Interim Report January - March 2001 -05 -09 23: 06

Marianne Nivert Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 2 President and CEO

Highlights l Net sales increased by 5. 7% to MSEK 13, 592 l Underlying EBITDA increased by 2. 7% to MSEK 3, 348 l Strong margin improvement in the Swedish mobile operations l Svenska UMTS-nät AB established together with Tele 2 l Broadband portal launched l Increased rate of broadband delivery l Sale of Tess completed, 8 companies divested to Industri Kapital, DRS divested, offer on Eniro, Si. Mobil sold Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 3

Trends l Higher prices for subscriptions and broadband l Continued strong demand for broadband l Shakeout in the carrier sector l Reduced pressure on prices in fixed services l Weaker growth in Swedish mobile, sharper focus on new services and streamlining l Continued refining efforts within Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 4

Continued refining 13 June l l Scandinavia Online (listed) Altitun Q 1 -Q 2 2000 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 5 l l IN good company AB Starman Kaabeltelevisiooni AS Svefo AB Telia Contracting Telia Kompetens Telia Konferens Q 3 2000 l l Sale of 51% in: l Swedia Networks AB l Telia Prosoft AB l Respons AB l Validation AB l Telia Swedtel AB l Telia Dokumentation AB l Multicom Security AB l TA Teleadress Smålandsbörsen Data. Information AB AB l Combinator IT AB Telia Eircom (Eircell) Academy l. AB l Telia Trading AB System & l Tess l Si. Mobil Service A/S l Eniro l DRS Eniro (offer) (listed) Q 4 2000 Q 1 2001 April 2001

Growth Group +5. 7% Mobile +46% International Carrier +9. 6% Internet Services +24. 6% Broadband +62% (cf. Q 4 2000) Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 6

Mobile Sales trend in the Nordic countries, total 46% Norway +27% • GPRS launched - Net. Com Mobi. Mail Finland +191% Sweden +7% Denmark +85% • License GSM 900 network Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 7 • GPRS Pilot test - Telia Mobile Online • UMTS agreement complete • New positioning services launched l Healthy improvement in profitability, underlying EBITDA +34% l Pan-Nordic service launched in May 2001

Mobile Total proportional customer base 4. 9 million Customer base, Nordic countries 4, 598, 000 +45, 000 Finland 154, 000 +5, 000 Russia North West GSM (12. 7% + 11. 3%) through Telecominvest 292, 000 ** +39, 000 Sweden 2) 3, 259, 000 +2, 000 GSM customer growth +33, 000 Customer base, Baltic region/Russia 1, 254, 000 +95, 000 Norway 854, 000 1) +4, 000 Estonia Eesti Mobiilitelefon (24. 5%) 341, 000 ** +14, 000 Denmark 331, 000 +34, 000 1) Jan-Mar, excl. 91, 000 SP customers 2) Jan-Mar, excl. 60, 000 SP customers Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 8 Latvia Latvijas Mobilais (24. 5%) 285, 000 ** +15, 000 Lithuania Omnitel (27. 5%) 336, 000 ** +27, 000 ** Total number of customers

Mobile Norway, 854, 000 Sweden, 3, 259, 000 0 0 Denmark, 331, 000 0 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 9 Finland, 154, 000

Mobile ARPU & Mo. U Sweden Churn 10% Without the reduction of interconnect fees from SEK 1. 89 to 1. 18, ARPU Q 1 2001 would have been SEK 298 Postpaid Total Prepaid Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 10

Mobile ARPU & Mo. U Norway Churn 31% Postpaid Total Prepaid Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 11

Mobile Share of sales, Q 1 2001 Sweden 4%, Norway 14% SMS trends Jan Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 12 Feb Mar April May June July Aug Sep Oct Nov Dec

Mobile www. teliamobile. se Right Way Near You Closest Resource Bootfighters a virtual paintball Navigation service with maps Effective planning for business critical resources House Close to You House Prices Close to You Real estate listings with prices in a specific local area Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 13 Position-based interactive games Micro-payment for SALE GPRS P Sweden: Telia Mobile Online Norway: Net. Com Mobi. Mail

International Carrier Market trends l Clear signs of impending shakeout with subsequent consolidation l The turbulence gives Telia opportunities to take customers l Lower demand on fiber and ducts l Increased demand on leased capacity and wavelength – stiffer competition and more pressure on prices l Pressure on prices for voice services – reserves for credit losses l Competitors leaving the voice business for IP-based services Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 14

International Carrier Important events l Powerful growth in the IP business +210% l Growth in the IP capacity business +40% l Services for virtual private networks, IP-VPN, and for colocation of IP servers (local services) launched l Agreement with Ericsson signed for delivery of a global internal network for multimedia communications l IP-agreements signed with Rostelecom and Baltelecom l Capacity agreement signed with Sprint Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 15

International Carrier Viking Network – Telia’s global IP platform Infrastructure network expansion 31/12 2000 Total fiber network km (in use) 15, 675 Ducts km (Europe) 5, 290 Po. Ps (total) 52 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 16

International Carrier Signed contracts (MSEK) Storm GTS Tele 1 Europe LD Com Other (BT, France Telecom etc. ) Other (Sprint, Telenor, KPNQwest) Total IRU 360 Networks Global Crossing Williams Colt Other SWAPS (Nets, Infigate etc. ) Total SWAPS Total Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 17 Fibre Ducts Fibre/Ducts Fibre SWAP SWAP 1, 275 432 293 47 1, 571 525 4, 143 998 615 664 356 1, 627 4, 260 8, 403

International Carrier External sales and price development MSEK Q 1 2001 Q 1 2000 Change in % Voice 506 576 -12 Leased IP capacity 109 IP traffic 65 21 +210 Infrastructure 38 0 Other 22 0 Total 740 675 +10 1, 147 488 Investments Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 18 78 +40

Networks l Two brands Telia for retail customers — Skanova for network wholesale customers — l Migration from fixed telephony to broadband mobile l External network wholesale market (Skanova) provides growth and compensates for losses on the retail market l Streamlining programs compensate for the effects of price cuts – but the prices have hit bottom l Sustained underlying EBITDA margin for established services l New services Telehost, IP telephony, split line Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 19

Internet Services Paying broadband customers (‘ 000) Narrowband Internet subscriptions increased by 11% from 641 000 Q 1 2000 to 711 000 Q 1 2001 High speed Internet via cable Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 20

Broadband www. startsidan. telia. se Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 21

2001 -05 -09 23: 06

Bo Jacobsson Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 23 CFO and Head of Corporate Financial Control

Financial overview Key figures for the Group MSEK Net sales Underlying EBITDA - margin % Operating income Earnings per share (SEK) Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 24 Q 1 2001 Q 1 2000 13, 592 12, 857 54, 064 3, 348 3, 260 13, 087 24. 6 25. 4 24. 2 811 3, 382 12, 006 0. 10 0. 84 3. 50

Financial overview Consolidated net sales (MSEK) Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 25

Financial overview External net sales, BA (MSEK) Change in % Mobile International Carrier Networks Internet Services Q 1 2001 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 26 Q 1 2000 +45. 7 +9. 6 -2. 0 +24. 6 Equity -25. 8 Total for the Group +5. 7

Financial overview Underlying EBITDA, BA Change in % (MSEK) Mobile International Carrier Networks Internet Services Equity Group-wide Total for the Group Q 1 2001 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 27 Q 1 2000 +34. 2 -3. 1 +61. 9 +2. 7

Financial overview Share of earnings in associated companies MSEK Q 1 2001 Q 1 2000 Netia Holdings (Networks) Baltic region (Mobile/Networks) Unisource/AUCS (Networks) Comsource/Eircom (Networks) Telia Overseas (Equity) Eniro (Equity) Other associated companies -143 23 -49 -204 -2 292 -74 -34 15 1, 004 -81 -257 -5 -411 190 1, 445 -933 -1, 719 185 46 Total -157 642 -1, 197 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 28

Financial overview Market value, associated companies MSEK Per 31 March 2001 Participation in % Eniro AB (Sweden) Scandinavia Online AB (Sweden) AS Eesti Telekom (Estonia) AB Lietuvos Telekomas (Lithuania) Netia Holdings S. A. (Poland) Infonet Services Corp. (USA) Eircom plc *) Total *) Incl. loans of MSEK 6, 459 Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 29 49. 1 24. 6 24. 5 30. 0 48. 1 20. 1 14. 0 Book value Market value 490 313 540 2, 502 2, 403 2, 543 6, 884 7, 802 201 1, 341 1, 211 1, 267 6, 479 6, 777 15, 675 25, 078

Financial overview Investments MSEK Q 1 2001 Q 1 2000 509 1, 001 26, 017 International Carrier 1, 147 488 6, 634 Networks 1, 436 749 7, 421 90 50 626 Equity 512 2, 015 7, 185 Group-wide -35 341 -141 3, 659 4, 644 47, 742 Mobile Internet Services Total for the Group Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 30

Financial overview Financial position 31 March 2001 31 Dec 2000 24, 425 20, 235 Balance sheet total (MSEK) 127, 062 122, 715 Debt/equity ratio (multiple) 0. 42 0. 37 Equity/assets ratio (%) 45. 3 44. 4 Net interest-bearing liability (MSEK) Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 31

Financial overview Change in net borrowings (MSEK) 3, 967 20, 235 526 1 January 2001 Tax Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 32 Net investments 3, 663 617 3, 348 Divestitures Underlying EBITDA Other 24, 425 31 March 2001

Financial overview Telia stock Telia, AB, IR, 008 -2001 eng 2001 -05 -09 23: 06 /Kh 33