CMD2011 - Mats Granryd - Introduction

Capital Markets Day 2011

The Best of Both Worlds Mats Granryd

Sep 20112 Capital Markets Day 2011

Tele2’s Management

Thomas EkmanMAD Nordic

Lars TorstenssonCommunications

Director

Dmitry StrashnovMAD Russia

Niklas SonkinMAD Central

Europe/Eurasia

Gunther VogelpoelMAD Western

Europe

Mats GranrydPresident & CEO

GROUP CENTRAL FUNCTIONS

MARKET AREAS

Anders Olsson CCO

Lars NilssonCFO

Cecilia LundinGroup HR Director

Fredrik LintonHead of Strategy

and M&A

Joachim HornCTIO


Tele2 in Brief

32 million customers in 11 countries, whereof 29 million in our mobile operations

Tele2 has established itself as the operator providing the Best Deal

Our licenses cover more than 100 million people

Selective expansion, when it meets our strict financial target and fits our corporate culture


What we have Achieved

Fixed to Mobile centric Mobile Voice to Data centric

First revolution Second revolution

Mobile Fixed telephony Fixed broadband Other

78%

22%

Voice Data

2007 2009 2011

50%

30%

14%

10%

61%17%

15%

8%

70%

10%

15%5%


We Operate in Both Ends of the Spectrum

Mature markets Mobile supported by

fixed services 3G/4G a necessity Multi-SIM and many

devices

High growth markets Mobile services 2G services will dominate

for several years Multi-SIM in one device


High Growth Markets – Plenty to do

2005 2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E 2015E -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

High growth markets

Mobile users (‘000)

Sou

rce:

Cre

dit

Sui

sse

• We will be the SIM card of choice• 2G services will dominate for several years to come• Customers will to a large extent be mobile only


Mature Market – a lot more to be done

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

Sou

rce:

Han

dels

bank

en C

apita

l Mar

kets

Mobile Revenues to GDP in OECD

• Smartphones will be the preferred device• Data access will become our primary service• Mobile networks will deliver improved QoS and speed

Voice vs. Data


A New Reality Requires Us to Evolve

Business model basics need to change: Data access is our primary

service and should be charged for as one

The industry is in need of tiered pricing based on: Volume Quality Speed

2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MOBILE CONNECTIONS (SWEDEN)

2G 3G 4G


Open Humble – no prestige Straight and honest communication Help out where needed – share your

experience, ability and knowledge Be available, return calls the same

day

Cost-conscious Challenge all costs Smart investments Always have the lowest costs Standardisation keeps costs down

Our Corporate Culture is Unique: The Tele2 Way

Flexible Listen to the customer Execute and react quickly Fewer are quicker Structure is good Hate bureaucracy Love Change

We are:


Action Provide the solution Execute and stick to deadlines OK to make mistakes – make

sure to learn from them Stay in control Take initiative Have fun and celebrate our

victories

Challenge Always act as a challenger Never give up – Winning attitude Be proud – never satisfied Challenge the impossible Be courageous and take decisions

that others don’t dare to take

Our Corporate Culture is Unique: The Tele2 Way

Quality No fancy extras Never compromise expected

quality Copy with pride Simple is quality Don’t change what’s working well Internal quality is as important as

external quality

Driven by:


We are Proud but not Satisfied

Our company is stronger than ever - Excellent operational performance

Strong financial KPIs and best in class shareholder remuneration

TELE2 EBITDA (12 M Rolling)SEK Million

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

5,000

6,000

7,000

8,000

9,000

10,000

11,000

CMD2011 - Mats Granryd - Introduction

Investor Relations

Transcript of CMD2011 - Mats Granryd - Introduction