1. January – September 2000 November 9, 2000
Interim Report
January – September
2000
November 9, 2000

2. Marianne Nivert
President and CEO

3. Focus on core business and streamlining
High-growth areas
Mobile
Leading Nordic mobile player
Carrier
One of the leading carriers in Europe
Broadband
Leading broadband provider
Focus on core business and streamlining
Interim Report 9 November 2000

4. January–September 2000 Trends Net sales +6% (+15% in Q3)
Strong sales in high-growth areas
Operating income +18%
Underlying EBITDA totaled MSEK 9,297
Substantial investments affected earnings
Eniro listed on the OM Stockholm Exchange in October
Interim Report 9 November 2000

5. Strong mobile growth +1.5 million mobile customers
Increased growth
Period Quarter
Jan-Sep Jul-Sep
Net sales
The Group +6% +15%
Mobile +37% +64%
International Carrier +27% +64%
Skanova +66% +100%
Internet, Sweden +24% +27%
Strong mobile growth +1.5 million mobile customers
International Carrier signs contracts worth MSEK 8,200
Interim Report 9 November 2000

6. Initiatives
Cost taken for new services and geographical expansion over the P/L Statement
MSEK
Rest of world
Nordic
countries
New services
Interim Report 9 November 2000

7. Total proportional customers approx. 5 million
The mobile footprint
Customers
Nordic countries
4,363,000
+1,522,000
Finland
127,000
+94,000
Customers
Telia Overseas
1,415,413
+563,516
Sweden
3,147,000
+509,000
Russia
North West GSM (12.7% + 9.5%)
through Telecominvest ,000
+69,000
Norway
(100%)
810,000
+37,000*)
Eesti Mobiilitelefon (24.5%)
316,000
+76,000
Customers
Baltic states and Russia
1,029,500
+265,700
Estonia
Denmark
279,000
+109,000
Latvijas Mobilais (24.5%)
248,000
+48,000
Latvia
Lithuania
Omnitel (27.5%)
270,500
+72,700
*) Jul-Sep
Total proportional customers approx. 5 million
Interim Report 9 November 2000

8. Customer growth Norway Sweden Denmark Finland 810,000 3,147,000
Dec -98
Apr-99
Aug -99
Dec -99
Apr -00
Aug -00
2,200,000
2,450,000
2,700,000
2,950,000
3,200,000
3,147,000
Sweden
810,000 1 5 0, 2 3
Norway
Denmark
279,000
Finland
127,000
830,000
730,000
630,000
530,000
Interim Report 9 November 2000

9. ARPU
Churn 7%
Sweden, SEK
Norway, NOK
Interim Report 9 November 2000

10. Development of SMS 114,760,000 1999 2000 No. of messages 100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1999
2000
Interim Report 9 November 2000

11. International Carrier
Net sales +27% (+64% in Q3)
Telephony +47%
IP +296%
Contracts regarding infrastructure and network capacity signed worth MSEK 8,200
The fiber-optic network in Europe increases from 6,815 km to 7,513 km
Interim Report 9 November 2000

12. Infrastructure and capacity, investments vs. sold
International Carrier
Infrastructure and capacity, investments vs. sold
MSEK
Ducts
Fiber
DWDM
Interim Report 9 November 2000

13. Infrastructure and capacity, sold vs. remaining
International Carrier
Infrastructure and capacity, sold vs. remaining Km Km Km
DWDM
Ducts
Fiber
In operation
Decided, but not yet contracted
Under construction
Sold/swapped
Interim Report 9 November 2000

14. Internet customer growth from 613,000 to 720,000
Broadband
Internet customer growth from 613,000 to 720,000
22,750 broadband customers plus 14,400 in com hem
653,000 potential broadband customers through general agreements
Broadband deliveries are speeding up
Broadband services will be launched during Q4
Interim Report 9 November 2000

15. Migration from fixed telephony to broadband
Growth in sales on the external wholesale market partially compensates the reduction in the retail market
New services and efficiency measures compensate the effects of price cuts
Sustained underlying EBITDA margin for established fixed services
Interim Report 9 November 2000

16. Focusing on core business
Listing of Eniro – capital gains of approx. MSEK 6,000 in Q4
Divestitures (wholly/partially):
IN good company AB
Starman Kaabeltelevisiooni
Svefo
Telia Contracting
Telia Kompetens
Telia Konferens
Focusing on core business in Telia continues
Interim Report 9 November 2000

17. Delivering the strategy
Mobile
Acquisition of NetCom ASA
1,522,000 new subscribers in the Nordic countries
Pilot versions of Speedy Tomato launched
International Carrier
Swap agreements with Global Crossing and Colt
Acquisition of AGIS – free peering in the US
Contracts signed worth MSEK 8,200
Broadband
22,750 customers plus 14,400 in com hem
653,000 potential customers in general agreements
Broadband services in Q4
Focusing on core business
Listing of Eniro
Divestitures
Interim Report 9 November 2000

18. Bo Jacobsson
CFO

19. The quarter in brief *) Jul-Sep Jul-Sep Change
MSEK in %
External net sales 13, ,
Underlying EBITDA 3,180 3,
- margin (%)
Operating income 206 1,
Earnings per share (SEK)
Investments 16,745 2,121 *)
*) of which NetCom ASA 11,387
Interim Report 9 November 2000

20. Net sales
1998
1999
2000
2,000
4,000
6,000
8,000
10,000
12,000
14,000 Q1 Q2 Q3 Q4
MSEK
Interim Report 9 November 2000

21. External net sales The quarter Total (MSEK) Change in % +64% +83% -11%
11 771
1 400
4 427
2 911
836
2 199 -2
13 487
1 703
4 041
2 595
1 527
3 596 25
Change in %
Enterprises
Business Solutions
Carrier & Networks
Mobile
People Solutions
Group-wide
Total (MSEK)
Jul-Sep
1999
2000
+64%
+83%
-11%
-9%
+22%
Interim Report 9 November 2000

22. Underlying EBITDA The quarter Change in % -1,5% -10% +60% -67% -35%
Jul-Sep
1999
2000
Change in %
-1,5%
-10%
+60%
-67%
-35%
In total (MSEK)
3 466
3 180
Enterprises
Business Solutions
Carrier & Networks
Mobile
People Solutions
-645
566
524
186
1 892
943
-290
365
174
297
1 705
929
Group-wide
Interim Report 9 November 2000

23. Underlying EBITDA 1998 1999 2000 Q1 Q2 Q3 Q4 MSEK 4,000 3,500 3,000
1,000
1,500
2,000
2,500
3,000
3,500
4,000 Q1 Q2 Q3 Q4
1998
1999
2000
MSEK
Interim Report 9 November 2000

24. Share of earnings and one-off charges
Share of earnings in assoc. companies
Jan–Jun Jul-Sep
MSEK
Netia Holdings (BS)
Baltikum (Mobile/BS)
Unisource/AUCS (BS) 1,
Comsource/Eircom (BS)
Telia Overseas (Enterprises)
Other assoc. companies
Total
One-off charges and pensions 1,
Excl. capital gains/losses in assoc. comp. 1,
Interim Report 9 November 2000

25. The nine-month period in brief
Jan-Sep Jan-Sep Change in
MSEK %
External net sales 39, ,
Underlying EBITDA 9, ,
- margin (%)
Operating income 4,076 3,
Earnings per share (SEK)
Investments 37,431 7,233 *)
*) of which NetCom ASA
Interim Report 9 November 2000

26. Cash flow MSEK Jan–Sep 2000 Jan–Sep 1999
Cash flow from operating activities 7,385 7,852
Cash flow from investing activities -37,840 -9,327
Operating cash flow -30,455 -1,475
Cash flow from financing activities 30,133 1,713
Cash flow for the period
Net interest-bearing liability, closing balance 22,340 8,545
Interim Report 9 November 2000

27. Net interest-bearing liability (MSEK) 22,340 7,527
Financial position
Sep 30 Dec 31
Net interest-bearing liability (MSEK) 22,340 7,527
Balance sheet total (MSEK) 117,521 76,604
Debt/equity ratio (multiple)
Equity/assets ratio (%)
Interim Report 9 November 2000

28. Outlook Mobile increased traffic as a result of strong customer growth
improved margins
Carrier
strong growth in all product areas
Broadband
strong demand
extended delivery capacity
Established fixed services
continued price pressure
strong efficiency measures
sustained profitability in fixed services
Interim Report 9 November 2000