July 31, 2003

Interim report January-June 2003Anders IgelPresident 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

3,963

8,070

-2,909

2,534

6,241

800

5,155

-2,059

Q2 2002

Q2 2003

Operating income excl. non-recurring items

EBITDA excl. non-recurring items

CAPEX

Free cash flow1

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

20,275+95

-450+626

-50

-167

-16+197

-90

-16020,290

Net salesQ2 2002

Sweden Finland Norway Denmark Baltic Eurasia Int.Carrier

Holding Other Net salesQ2 2003

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

6,241

1,214 -3 92139 -73

-250353

3578,070

EBITDAQ2 2002

Sweden Finland Norway Denmark Baltic Eurasia Int.Carrier

Other EBITDAQ2 2003

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

Consolidationof Fintur

Tight CAPEX control

2,909 -498

+117 -26 -177

-216+154 -214

+13 -3 2,059

CAPEXQ2 2002

Sweden Finland Norway Denmark Baltic Eurasia Int.Carrier

Holding Elim. andother

CAPEXQ2 2003

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 million Jan-Jun 2003 Jan-Jun 2002

Net sales 40,624 39,932

Growth in net sales (%) 1.7 n/c

EBITDA excl. non-recurring items 15,632 12,213

Margin (%) 38.5 30.6

Income from associated companies -670 -30,676

Operating income 5,971 -33,349

Operating income excl. non-recurring items 7,190 2,810

Income after financial items 5,759 -33,585

Net income 3,101 -23,632

CAPEX 3,735 5,562

16

Synergies ahead of plan

SEK millionFull run rate annual

effect (by 2005)Effect

in 2003

OPEX

Product and service development 137 60

IT systems and infrastructure 36 20

Purchasing 169 169

Network operations 187 84

Corporate functions 145 145

Total 674 478

CAPEX

Product and service development 4 33

IT systems and infrastructure 26 22

Purchasing 225 265

Network operations 13 40

Total 268 360

Impact of decisions taken during 2003Decisions during Q2

• Eliminate duplicate platforms such as positioning services, e-mail, 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 Q2 2003

Affecting operating income

Operating income excl. non-recurring items

Within income from assoc. companies

Capital gain Bharti MobileWrite downs (Infonet, Metro One, VCs)

Write downs (synergy)

Provision for redundancyOther

Operating income as reported

Affecting financial items

No effect on pro forma profit & loss statement

3,963

+341

-1,208

-29

-389+66

2,744

Financial net excl. non-recurring items

Capital gains from financial items (Netia)

Write downs of financial items (VCs)

Financial net as reported

-116

+583

-163

304

SEK million

Capital gain ComHem

Capital loss Telia Mobile Finland

+1,811

-108

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 2002. 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

38.1 -9.1

+1.9 -2.328.6

Net debtDec 31, 2002

Free cash flowJan-Jun 2003

Dividend Other (incl. gain from divestitures)

Net debtJun 30, 2003

SEK million Jun 30, 2003 Dec 31, 2002

Equity-to-assets ratio 55% 52%

Net debt-to-equity ratio 26% 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