May 19, 2003

Anni VepsäläinenPresident TeliaSonera Finland

2TeliaSonera Finland

TeliaSonera Finland

• Telecommunications leader in Finland

• High margins, strong cash flow

• Passion for customers and profits

• Capitalize on cross selling opportunities

• Increase fixed to mobile voice migration

• Grow broadband services

• Leading the mobile services market

Profitable growth with customer orientation

3TeliaSonera Finland

Key financials

SEK million Full year 2002 Q1 2003

External net sales 17,295 4,264

Operating income1) 2, 056 690

EBITDA1) 6,869 1,823

Margin 39.2% 41.7%

CAPEX 2,151 391

Number of employees (end of period) 6,235 6,200

Product area / External net sales Q1 2003

• Mobile communications

63%

• Fixed communications

37%1) Excluding non-recurring items

4TeliaSonera Finland

Mobile communications

• Increasing voice usage

• Subscription growth

Fixed line

• Decreasing number of subscriptions

Internet & Data

• Strong growth in broadband

• Dial-up connections migrating to broadband

Other

• Terminal sales

Revenue development Q1 2003

Revenue change Q1 2003 compared to Q1 2002 (SEK million)

0

Mobile

Fixed subscr. & VAS

Internet & Data

Other

Fixed traffic charges

Total

+33 -11+18

+87 -8118

Total external sales

SEK million

+2.8%4,1464,264

ChangeQ1 2002Q1 2003

5TeliaSonera Finland

Telecom market environment 2002

Telecom business by ‘functions’ 2002

Market share in value 2002 Characteristics• 179 companies with license to operate• Total turnover EUR 4.6 billion • Amount of personnel 19,800

Competition• Three largest players: Sonera-group,

Elisa-group, Finnet-group• Sonera market leader

Trends• Communication continues to grow• Service usage via Internet – need for

broadband connections• Mobile terminal and service development

– mobile data usage grows rapidly• Offerings from products to selling

services

Sonera 48%Elisa 34%

Others 1%

Finnet 17%

Internet 5%Long-dist 1%

Local calls 17%

Mobile 43%Other 34%

6TeliaSonera Finland

Market share development

0%

20%

40%

60%

80%

Q1 01 Q1 02 Q1 03PSTN MobileInternet DatacomBroadband

Market share1 % • Market leader in mobile, Internet and broadband subscriptions and corporate datacom services

• Market share loss in mobile due to tough competition

– Loss of price and offer sensitive customers

• Several actions to turn the negative trend

1) Value, estimates.

(historical data n/a)

7TeliaSonera Finland

SegmentConsumer

SegmentBusiness

• Broadening customer relationships

• Packaged services (mobile broadband, VoIP)

• Market leader in 3G services• Efforts to reverse the market share development

• Remarkable improvement in customer service levels

• One customer relationship• Tailored messages to sub-segments (by age & behaviour groups)

• Remarkable improvement in customer service levels

• One customer relationship, “one stop shopping”

• Tailored messages to sub-segments (by industries)

• Combined services• Implementing B2B strategy: Managed services

• Improving and modernizing the sales culture

• More customer benefits, quality and value for money, competitive price level

• Establish a task force to win customers from competitors, when launching MNP

• Sales activities and customer service

• Solutions for business customers’ business processes

• Establish a task force to win customers from competitors, when launching MNP

SegmentLargeCorporate

• One customer relationship

• Understanding customers’ business processes

• Sales activities and customer service

• Solutions for corporate customers’ business processes

• Combined services• Implementing B2B strategy: Managed services

• Improving and modernizing the sales culture

Segment based activities to improve business performance

Churn managementCustomer orientation Growth

8TeliaSonera Finland

• Implement the competence centre structure

– Group wide and national level

• Fine tune steering model

• Develop leadership and managerial practises

• Implement personnel restructuring plan

• Focus product portfolios

• Decrease number of technical platforms

• Manage All-IP evolution

• Utilize our own services

Developing personnel and leadership

Improving efficiency Delivering synergies

Continued efficiency measures

9TeliaSonera Finland

Increased mobile usage

143 155 153 153 151147149150139

0

50

100

150

200

250

Q1 01 Q1 02 Q1 03

ARPU

40 42 41 40 3839404139

0

10

20

30

40

50

Q1 01 Q1 02 Q1 03

MoU

EUR

minutes

Churn 15.8% in Q1 2003

10TeliaSonera Finland

Non-voice growth

12.5% 12.8%

0%

2%

4%

6%

8%

10%

12%

14%

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03

Non-voice as % of revenues

• Colour screen, polyphonic ring tones, cameras and other advanced terminal features becoming more common

• New mobile services launched, e.g. popular ice-hockey service

• Promising development in GPRS subscriptions due to terminal development and new services

• SMS usage saturated

• Non-voice % stable due to SMS price erosion

137

26

0

50

100

150

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03

GPRS subscriptions (thousands)

11TeliaSonera Finland

Sonera Colour: a new range of services for MMS phones

In April 2003 most diversified range of multimedia services on the Finnish market were launched:

• MM-Ice Hockey services• Internet Chat• Sonera Plaza auction• WAP-news• Traffic information• etc.

12TeliaSonera Finland

Fast broadband expansion

0

50

100

150

200

250

300

Q12001

Q22001

Q32001

Q42001

Q12002

Q22002

Q32002

Q42002

Q12003

Consumer broadband Dial-up

Number of consumer broadband / Dial-up customers (thousands) • Increasing customer need

for services via Internet

• Strong growth in broadband market

• Number of dial-up subscriptions decreasing

• Market leader in broadband and dial-up Internet connections

• Own network in rural areas, challenger in big cities

13TeliaSonera Finland

Continued strong mobile margin

443 430

1,374 1,393

0

500

1,000

1,500

2,000

Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

Fixed Mobile

• Strong margins despite tough competition

• Seasonal fluctuations due to the campaigns

Operating income1 (SEK million)

690681

0

500

1,000

1,500

2,000

Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

Total

1) Excluding non-recurring items

EBITDA1 (SEK million)

14TeliaSonera Finland

CAPEX

CAPEX as % of salesCAPEX (SEK million)

• Tight CAPEX control

• Transmission CAPEX booked into fixed

• UMTS will increase CAPEX1) Excluding non-recurring items

191

185 200

228

0

100

200

300

400

500

600

700

800

Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

Fixed Mobile

15.1%

6.9% 7.3%

11.9%

0%

5%

10%

15%

20%

25%

30%

Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

Fixed Mobile

15TeliaSonera Finland

Regulatory issues 2003-2004

• New Communications Market Act includes extended network access rules (MVNOs)

• Uncertainty of possible new SMP obligations by the National Competition Authority (NRA)

• Mobile number portability (from 7/2003)

• New Communications Market Act includes an obligation to provide bit stream access – may open up new geographic areas for broadband

• NRA demands lower mobile termination tariffs

• Finnish Parliament has proposed a study on the Finnish fixed-to-mobile interconnection model

• Finnish Competition Authority is investigating operators’ pricing of ADSL products

16TeliaSonera Finland

Summary

TeliaSonera Finland is the market leader in telecom industry

• Profitable Growth

• Customer Orientation

• Improved Efficiency

• Strong player in Finland

• Growth saturated, but opportunities exists

– Mobile voice and data usage growing

– Fast broadband growth

• Improvement in integration of service offering and user interface an opportunity

• ICT-strategy implementation

• Increasing attention to internal efficiency, rationalizing program will continue

17TeliaSonera Finland

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.

Forward-looking statements

May 19, 2003

The Nordic and Baltic telecommunications leader