Interim Report January-March 2013

Improved margin and cash flow
First quarter summary

  · Net sales in local currencies and excluding acquisitions decreased 0.9
percent. In reported currency, net sales decreased 4.5 percent to SEK 24,542
million (25,693).
  · The addressable cost base in local currencies and excluding acquisitions
decreased 1.0 percent. In reported currency, the addressable cost base decreased
6.0 percent to SEK 6,989 million (7,432).
  · EBITDA, excluding non-recurring items, decreased 0.5 percent in local
currencies and excluding acquisitions. In reported currency, EBITDA, excluding
non-recurring items, decreased 3.9 percent to SEK 8,509 million (8,852). The
EBITDA margin, excluding non-recurring items, increased to 34.7 percent (34.5).
  · Operating income, excluding non-recurring items, decreased 3.7 percent to
SEK 6,628 million (6,882).
  · Net income attributable to owners of the parent company decreased 0.3
percent to SEK 4,108 million (4,122).
  · Earnings per share amounted to SEK 0.95 (0.95).
  · Free cash flow increased to SEK 2,414 million (2,193), mainly due to lower
cash CAPEX.
  · During the quarter the number of subscriptions decreased by 0.8 million in
the consolidated operations and remained unchanged in the associated companies.
The total number of subscriptions was 182.1 million.
  · Group outlook for 2013 is unchanged.



Comments by Per-Arne Blomquist,
President and CEO

“Our industry continues to go through a period of change where traditional
business models are being challenged by new customer behavior. The competitive
situation remains demanding on many markets and puts pressure on overall revenue
streams. In this environment, we deliver a quarter with both improved margins
and stronger cash flow.

In the first quarter, revenues in local currencies declined by 0.9 percent
compared to the same period last year. Our business in Eurasia continued to
perform well and delivered once again double digit growth with continued pick-up
in data revenues. Mobility Services were impacted by major reductions in
regulated interconnect rates, while Broadband Services experienced higher
pressure on traditional voice revenues and were also impacted by slower roll-out
of fiber due to cold weather conditions.

In March, we took an important step on the Swedish market. As one of the first
operators in Europe we offer consumers the opportunity to connect multiple
mobile devices to one subscription, including unlimited calls and text messages,
with the possibility to share data volumes within certain buckets. In our view,
this is an innovative and attractive proposal for the customer at the same time
as we move towards a more sustainable business model in a world where the
consumption of data is increasing heavily.

In order to maintain our ability to invest in future growth, it is essential to
manage our cost base in a prudent way. We have continued to put significant
emphasis on implementing the efficiency measures initiated at the end of last
year. There were effects within Mobility Services already in the quarter, while
within Broadband Services they will come in the latter part of the year. We
remain determined to bring total costs down by SEK 2 billion net over a two year
period.

During the quarter, we finalized the strategic review of our Spanish operator
Yoigo. In early April, we announced that the sales process was terminated and
that our intention is to continue developing the business. In the first quarter,
Mobility Spain reported 19 percent revenue growth and a positive margin trend,
highlighting its future potential.

In early February, the Swedish law firm Mannheimer Swartling released its report
on TeliaSonera’s investments in Uzbekistan. The firm did not find any substance
to the allegations that we committed bribery or participated in money
laundering. However, it directed serious criticism at TeliaSonera for
shortcomings in the investment process. Over the past few years, we have put
significant effort into improving our processes and will continue to strengthen
our way of working even further.

Sustainability is of high priority, with special focus on privacy, freedom of
expression and anti-corruption. In March, TeliaSonera and the other members of
the Telecommunication Industry Dialogue signed guiding principles on
telecommunication and freedom of expression and privacy. The principles provide
guidance on how we should act to respect these basic human rights. We also
entered into a two-year collaboration with the Global Network Initiative (GNI)
to develop and expand this initiative further.”



Questions regarding the reports
TeliaSonera AB
Investor Relations
SE–106 63 Stockholm, Sweden
Tel. +46 8 504 550 00
Fax +46 8 611 46 42
www.teliasonera.com

TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication at 07:00 CET on April 19, 2013.