July 31, 2003 Interim report January-June 2003 Anders Igel President and CEO

2 Q2 in brief Rapid profitability improvement Cash flow more than doubled Fast integration Synergies ahead of plan Increased market focus is beginning to yield results Turnaround targets reached in Danish fixed business and in former Telia International Carrier

3 Strong earnings and cash flow development Record high EBITDA margin excl. non-recurring items –Group 40% –Sweden 45% Maintained investment efficiency Record high free cash flow Operating income excl. non- recurring items EBITDA excl. non- recurring items CAPEX Free cash flow 1 SEK million 1) Cash flow from operating activities less CAPEX

4 Successful turnaround International Carrier Restructuring program yields positive impact In April and May end-of-year target of positive EBITDA-CAPEX was reached Denmark Improved earnings in both the fixed and mobile operations End-of-year target of positive EBITDA for Danish fixed was reached in Q2

5 Full speed in integration and synergy implementation Successful integration is yielding results – Synergy decision making ahead of schedule The EU requirements have been met –ComHem sold, gain of SEK 1,811 million –Telia Mobile Finland sold, loss of SEK 108 million –Fixed and mobile networks legally separated from the retail business

6 More aggressive in the market Start to offer bundled products Telemarketing stepped up

7 Increased market efforts yield results Wide range of new offers and products launched with visible results by the end of the period –Reduced losses in Swedish consumer segment and held position in Finnish consumer segment –Strengthened position in Finnish and in Swedish Corporate segments –Improved position in Norwegian and Danish mobile market Combined strength, a winning factor for several large contracts – Contracts worth SEK 3 billion signed in Sweden during Q2 –Metso –IBM/Posten –StoraEnso

8 Geographical focus Strengthening footprint in the markets where TeliaSonera currently operates Selected acquisitions in current footprint Long term strong cash flow provides us flexibility to grow in the consolidation of the European telecom industry

9 Outlook We have reached previously stated mid-term targets earlier than expected Net sales for full year 2003 are expected to grow in line with the first half year CAPEX/Sales expected around 12% for 2003 Operating income excl. non-recurring items for the second half year of 2003 is expected not to fully reach the level of the first half year

10 Focus going forward Commercial actions – win back market shares Continued synergy realization Efficiency improvements Strengthen existing geographical footprint

July 31, 2003 Kim Ignatius CFO

12 Net sales change SEK million Downsizing in Denmark, International Carrier and Holding decreases growth Continued strong growth in Norway Correction of mobile revenue accruals Lower fixed traffic volume Consolidation of Fintur

13 Consolidation of Fintur EBITDA excl. non-recurring items improvement + SEK 1,829 million Lower OPEX through restructuring Carrier Release of interconnect provision SEK 400 million Effects from restructuring 2002 SEK 300 million Synergy benefits SEK 100 million Lower cost related to SUNAB due to UMTS delay SEK million

14 CAPEX reflecting business needs 2003 level around 12% of sales Restructuring decreases CAPEX in Denmark Fixed and International Carrier Consolidation of Fintur Tight CAPEX control SEK million Build out of broadband and backbone network to meet market demand Lower CAPEX in Baltics. Program in Lithuania to reduce CAPEX.

15 TeliaSonera January-June key figures SEK millionJan-Jun 2003Jan-Jun 2002 Net sales40,62439,932 Growth in net sales (%)1.7n/c EBITDA excl. non-recurring items15,63212,213 Margin (%) Income from associated companies ,676 Operating income5,971-33,349 Operating income excl. non-recurring items7,1902,810 Income after financial items5,759-33,585 Net income3,101-23,632 CAPEX3,7355,562

16 Synergies ahead of plan SEK million Full run rate annual effect (by 2005) Effect in 2003 OPEX Product and service development IT systems and infrastructure 3620 Purchasing 169 Network operations Corporate functions 145 Total CAPEX Product and service development 433 IT systems and infrastructure 2622 Purchasing Network operations 1340 Total Impact of decisions taken during 2003 Decisions during Q2 Eliminate duplicate platforms such as positioning services, , customer support systems and voice over IP Shared use of IT and systems within CRM Eliminate overlapping testing systems etc. Renegotiation of supplier agreements

17 Continued efficiency improvements in Finland and Sweden Integration and governance models significantly increase efficiency and eliminate overlaps Sweden –Estimated redundancy of approx. 1,500 employees. Approx. 700 employees remain affected by redundancy –A provision of SEK 374 million has been made Finland –Redundancy of 400 employees –A provision of SEK 15 million has been made

18 Non-recurring items Q Affecting operating income Operating income excl. non-recurring items Within income from assoc. companies Capital gain Bharti Mobile Write downs (Infonet, Metro One, VCs) Write downs (synergy) Provision for redundancy Other Operating income as reported Affecting financial items No effect on pro forma profit & loss statement 3, , ,744 Financial net excl. non-recurring items Capital gains from financial items (Netia) Write downs of financial items (VCs) Financial net as reported SEK million Capital gain ComHem Capital loss Telia Mobile Finland +1,

19 Income taxes Effective tax rate (42% in Q2) is mainly increased by non-deductible Infonet write-down and by non- deductible goodwill amortization Deferred tax liability of SEK 12 billion mainly relates to Sweden Deferred tax benefit of SEK 16 billion mainly relates to European 3G and other write-downs in Some SEK 2 billion relates to restructuring of International Carrier and Denmark and can be used in Sweden. No significant cash payment for taxes in Finland for 6 to 8 years is expected

20 Strong cash flow – Strong financial position Strong cash flow strengthening financial position by reducing net debt Net debt Dec 31, 2002 Free cash flow Jan-Jun 2003 DividendOther (incl. gain from divestitures) Net debt Jun 30, 2003 SEK millionJun 30, 2003Dec 31, 2002 Equity-to-assets ratio55%52% Net debt-to-equity ratio26%36% SEK billion

21 Forward-looking statements This document contains statements concerning, among other things, TeliaSonera's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent TeliaSonera's future expectations. TeliaSonera believes that the expectations reflected in these forward- looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement, including TeliaSonera's market position, growth in the telecommunications industry in Europe, the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of TeliaSonera and the telecommunications industry in general. Forward- looking statements speak only as of the date they were made, and, other than as required by applicable law, TeliaSonera undertakes no obligation to update any of them in light of new information or future events.

July 31, 2003 The Nordic and Baltic telecommunications leader