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Changing the Industry

All for Infranet availability

5.2.2007

Tuomo RönkköCEOEltel Group Corp.

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Brief history

• Fortum sold IVO Transmission Engineering Ltd to funds managed by CapMan 1.7.2001 and Eltel Networks was established

• CapMan sold Eltel Networks to Industri Kapital 2000 Fund 22.12.2004

• Eltel Networks and Swedia Networks merged in January 2005 and Eltel Group was formed

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• Changing competitive environment for customers – rethinking the focus in the value chain

• Co-locating the maintenance of Infrastructure Networks – more efficient operations by combined services

• It’s all about availability

Production Construction & Installation

Operations & Maintenance

Distribution Consumption

Eltel business opportunity

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• Big enough local presence and mobile resources

• Develop multi-skilled experts to secure competitive cost structure

• Improve availability by implementing best practices and innovative solutions

Key elements for securing network availability

• Network quality and availability

• Flexibility in cooperation and service enhancements

• Transparency • Modern tools and IT systems• Innovative approaches• Multi-skilled technicians

• Network quality and availability

• Flexibility in cooperation and service enhancements

• Transparency • Modern tools and IT systems• Innovative approaches• Multi-skilled technicians

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Innovative service offerings Case: TeliaSonera and Unibase Oy

Service agreement for 8200 base stations in Finland• Service management, mobile workforce• Maintenance• Fault repair services, 5000 - 7000 faults per year• Movable generator supply

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Acquisitions & Divestments

2001 2002 2003 2004 2005 2006 2007

ZWSE OlsztynS 10 Me; P 200

Statnett Entr.S 36 Me; P 230

WIRE (50 %)S 21 Me; P 100

TeliaSonera PlannersS 3 Me; P 47

Transmast ItalyS 0.4 Me; P 26

ÅsbroS 3.5 Me; P 16

Eltel ÖstS 5 Me; P 30

KE PartnerS 60 Me; P 400

JL-TeknikS 4 Me; P 29

K-TELS 42 Me; P1558

Consulting&ETPS 8 Me; P27

Kainuun SähköS 10 Me; P 86

LinjebyggS 47 Me; P 361

ConnectoS 17 Me; P 445

Tel-NettS 29 Me; P 240

RatelS 3 Me; P 15

LB OffshoreS 22 Me; P 190

ElkomS 11 Me; P 50

KymertekS 6 Me; P 74

SoonS 6 Me; P 67

Swedia NetworksS 287 Me; P2200

Sofrer PolskaS 7 Me; P 116

NurmijärviS 2 Me, P 22

KesnetS 2.5 Me; P 28

ComlietS 8 Me; P 150

JyväsviestintäS 0.3 Me; P 4

VägbelysningS 6 Me; P 20

Voimatel (35%)S 21 Me; P 230

Kymen PuhelinS Me 0.4 : P 4

Vertech OffshoreS 2.2 Me; P 5

Baltic Offshore K.S 1.5 Me; P 6

Energoprojekt KrakówS 4.8 Me; P 174

Eltel Networks KonsultS 13.4 Me; P 100

PHPS 2.8 Me; P 44

Tampere KTVS 0.6 Me; P 6

Oulun PuhelinS 3.1 Me; P 45

Eltel Länsi (21%) S 27 Me, P 227

Divestment

Acquisition

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Personnel by countries

Finland20 %

Sweden31 %

Norway10 %

Baltics12 %

Denmark11 %

Other6 %

Poland10 % Finland

16 %

Sweden25 %

Norway8 %

Baltics9 %

Denmark9 %

Other5 %

Poland28 %

Personnel by country 2006 Personnel by country 1/2007

Personnel today 8200

personnel in 2001: 1 500

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Development 2001-2006

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200

300

400

500

600

700

800

2001 2002 2003 2004 2005 2006

Net Sales Operating profit - EBITAMEuro MEuro

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5

10

15

20

25

30

35

40

2001 2002 2003 2004 2005 2006

Consolidation with Swedia Networks in 2004-2005

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Future opportunities

• Eltel will continue grow organically and through acquisitions

• Strong business opportunities in Poland. Eltel's position in the Polish market is very strong.

• New services and technologies will bring new opportunities for Eltel (triple-play, AMR etc.)

• Market will continue to consolidate - a few large companies will have the major market share