NORDIC

MARKET AREA NORDIC

Thomas Ekman

Head of Sales & Marketing Residential, Sweden

INTRODUCTIONMarket Area Nordic

� Represents 36 percent of total revenue Q2 2009

� Strong cash flow generation – EBITDA SEK 764 million and CapexSEK 110 million in Q2 2009

Short- to medium-term focus & activities:

� Sweden Back to growth

� Norway Build-out own infrastructure

SWEDENBack to growth

TWO BRANDS

OPERATIONAL PERFORMANCE

REVENUE

0

1 500

3 000

4 500

2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2

SEK million

EBITDA

0

500

1 000

2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2

SEK million

� Mobile� Solid development despite negative

effects due to MTR cuts

� Broadband� Realignment to new infrastructure

� Fixed� Capitalize on customer stock

EBITDA - CAPEX*

0

300

600

900

2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2

SEK million

*Purged from LTE licence investments (Q208)

Mobile69%

Fixed &

Broadband

31%

MOBILE SERVICES

� Net sales Q209: 1 969 MSEK

� EBITDA Q209: 620 MSEK

� EBITDA margin Q209: 31 percent

� Operating Cash-Flow Q209: 570 MSEK

0

500

1 000

1 500

2 000

2 500

Q1 Q2 Q3 Q4 Q1 Q2

2008 2008 2008 2008 2009 2009

0%

5%

10%

15%

20%

25%

30%

35%

40%Net sales EBITDA EBITDA margin

SEK million

TOTAL REVENUE

PREPAID

PREPAID� Prepaid shows stable revenue, strong EBITDA and increasing market share

� In 2006, prepaid accounted for >50 percent of Tele2 Sweden’s mobile revenue

Today it accounts for approx. 30 percent and half of the EBITDA contribution

� Focus

� Maintain strong margins

� Keep the big cities and grow in top 20 cities

� Further strengthen price position

Telia

44,6%

Telenor

8,0%

Other

2,6%

Comviq

(Tele2)

44,8%

Source: PTS H2 2008

Source: PTS

0

100

200

300

400

500

600

700

800

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0%

10%

20%

30%

40%

50%

60%

Revenue EBITDA EBITDA %SEK million

POSTPAID

POSTPAID RESIDENTIAL� Postpaid share of voice revenue and EBITDA are increasing. Postpaid has a

lower margin than prepaid, and thereby affects the overall mobile margin

� High-end terminals attract high ARPU customers

3

10,9%

Tele2

21,7%Telia

40,9%

Other

4,2%

Telenor

22,4%

Source: PTS H2 2008

219206

267

302

339

0

50

100

150

200

250

300

350

0 SEK 50 SEK 100 SEK 150 SEK 200 SEK

ARPU per customer with terminal

installment plan

SEK/month

0

100

200

300

400

500

600

700

800

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Revenue EBITDA EBITDA margin

POSTPAID RESIDENTIAL� Focus:

� Secure long-term revenue growth and increased cash flow contribution

� Strengthen price position: provide the Best Deal

SEK million

POSTPAID BUSINESS� Fastest growing carrier on Swedish Business market for two

consecutive years

� Decreasing MoU due to economic downturn affecting corporate customers

� Focus :

� Concentrate sales activities on high ARPU segments, such as the virtual switchboard market

� Continue to improve our quality perception

3

2,6%Tele2

18,8%

Telenor

21,0%

Telia

52,8%

Other

4,8%

Source: PTS H2 2008

SEK million

0

50

100

150

200

250

300

350

400

450

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Revenue EBITDA EBITDA margin

MOBILE INTERNET

Mobile Internet Prepaid Mobile Internet Postpaid

”Snabbaste Turbo-3G nätet”

Aftonbladet, 8/7-2009Expressen, 8/7-2009

”Test av bästa mobila bredbandet”

MOBILE INTERNET� 48 000 new customers H109 adding up to a 218 000 customer base

� Mobile Internet GM1 is approx. 50. Grow customer base to gain positive EBITDA

� ARPU has increased by approx. 12 percent Q209 vs Q208, despite fierce competition

� Launch of Mobile Internet prepaid in May 09. Intake has been strong and we are the

market leader

� Focus

� Grow Mobile Internet prepaid and postpaid

� Increase Mobile Internet profitability

3

21,2%

Telenor

16,8%

Telia

38,9%

Tele2

19,7%

Other

3,5%

Source: PTS H2 2008

-100

-80

-60

-40

-20

0

20

40

60

80

100

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

150%

200%

250%

Revenue EBITDA EBITDA-margin

PRICE POSITION

� Further strengthen our price position by keeping

using Frank

� The customer price perception is today heavily

connected to both tariffs and the deal on the

mobile phone

� We will provide the best deal!

� Comviq is sold in more than 19 000 outlets throughout Sweden

� We will further develop strong prepaid distribution with Mobile Internet prepaid (ICA, Claes Olsson mm)

� We will keep developing our multi-channel sales strategy in order to spread the risks

DISTRIBUTION STRATEGY

OUTLOOK� Tele2 will continue to target higher market share in the postpaid

segment, which in the longer term will lead to:

� Higher customer intake

� Improved ARPU

� Lower churn

Resulting in

� Higher customer lifetime value

� In the short term, this strategy will lead to higher total acquisition costs

Resulting in

� EBITDA margin towards 30 percent in 2010

Q&A

SUMMARY

� Clear price position, deliver expected quality and strong brand – providing the best deal

� Distribution, multi-channel sales strategy to increase sales and ARPU levels

� Comviq holds the number one position in the prepaid market

� Tele2 Sweden will continue to invest in high-value postpaid customers to secure a long-term high cash flow