DnB NOR MARKETSDnB NOR MARKETSNORDIC TMT CONFERENCE

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TELE2 ALWAYS PROVIDESTELE2 ALWAYS PROVIDES

P i l d hi• Price leadership through best in class cost controlcost control

• Price winning quality g q ynetwork

• Standardized product portfolio

2

NORWAY: CONTINUED PRICE LEADERSHIP AND CUSTOMER SATISFACTIONSATISFACTION

NORWAY HIGHLIGHTS Q2

• 3 percent revenue growth

• Net intake of 7000 (2000)– Launch of prepaid and push in small corporate segment

• EBITDA margin at 8 (8) percent

• Tele2 awarded ”most satisfied mobile telephony customers” by Norsk Kundebarometer 2010

• Continued price leadership

3

NORWAY: CONTROLLED INFRASTRUCTURE WITH MOBILE NORWAY

JOINT VENTURE WITH NETWORK NORWAY

• Tele2 and Network Norway are jointly investing in Mobile Norway

• Joint venture Mobile Norway builds the mobile network and provides Tele2 and Network Norway with mobile services

• Key figures:– The network will cover 75 % of the

population

– 525 urban areas - the network will cover all urban areas in all counties and all municipalities with more than 600 residents

Illustration: number of towns in each county

vv residents

4

y

SWEDEN: CONTINUED REVENUE GROWTH

SWEDEN HIGHLIGHTS Q2 Tele2 Sweden Mobile Net SalesMSEK

• Accelerated mobile net sales + 5 percent1 500

2 000

2 500

• Adding 74,000 mobile customers– 31,000 mobile postpaid (14,000 in Q1 2010)

0

500

1 000

, p p ( , )

• Mobile EBITDA margin 34,5 (34,0) percent

0

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

g , ( , ) p

• Awarded “Best Mobile BroadbandNetwork”

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SWEDEN: HIGH POTENTIAL TO GAIN MARKET SHARES IN BUSINESS SEGMENTBUSINESS SEGMENT

Swedish market share development Mobile Business

NEW BUSINESS STRATEGY

40%

50%

60%

Mobile Business• Acquisition of Spring Mobil in order to strengthen product portfolio

0%

10%

20%

30%

2006 2007 2008 2009

• New product profile combined with new segmentation strategy has increased ARPU on business customers while 2006 2007 2008 2009

Hi3G Tele2 TeliaSonera Telenor maintaining customer stock

Source: PTS 2010

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SWEDEN: MULTICHANNEL SALES STRATEGY BASED ON AVAILABILITY AND COST EFFICIENCYAVAILABILITY AND COST EFFICIENCY

MULTICHANNEL SALES STRATEGY TELE2 STORES CONTINUED SUCCESS

• Different sales channels for different products

• Strong in retail

• Delivering above expectations

• Customers have higher ARPU and lower churn

• Shifting from push to pull

• Re-launched online store

• Prepaid:

• More than 80% of sales are made with add on services

• Store network expansion continues

Prepaid:• 150 meter strategy• Increased share of refills online

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NORDICS: MARKET GROWTH IS DRIVEN BY DATA

Mobile market growth comes from dataDEMAND FOR DATA INCREASES

23%

25%

28000

29000• Demand for mobile data is exploding, in particular from handset customers

L h f “U li i d” bil b db d

19%

21%

27000

28000

Rev

enue

(MSE

K)

• Launch of “Unlimited” mobile broadband

• “Unlimited” positions Tele2 for 4G

• Offering home telephony and broadband via the

15%

17%

25000

26000

ata-

Rev

enue

/R

obile

reve

nue

g p ymobile network in order to capitalize on fixed to mobile substitution

11%

13%

23000

24000

Da

M9%

11%

220002004 2005 2006 2007 2008 2009

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Source: Analysis mason, 2010

NORDICS: DATA GROWTH IS DRIVEN BY SMARTPHONES WHICH ARE NOW ATTRACTING TELE2 CUSTOMERSNOW ATTRACTING TELE2 CUSTOMERS

Smartphones 2008Smartphones 2010

HIGH

ARPU

LOW

ARPU ARPU

Tele2/Comviq target segment

ARPU

TOP SMARTPHONESALES AUGUST

1 IPHONE 4 16GB BLACK TELE2• Smart Phones are becoming mass market and prices are coming down driving the shift

2 IPHONE 4 32GB BLACK TELE2

3 IPHONE 3GS BLACK 8GB TELE2

4 SONY ERICSSON U20i XPERIA X10 MINI PRO BLACK

5 SONY ERICSSON E10i XPERIA X10 MINI BLACK

even faster

• Tele2 segments have begun to use 5 SONY ERICSSON E10i XPERIA X10 MINI BLACK

6 HTC WILDFIRE (NORDIC)

7 SONY ERICSSON XPERIA X10 WHITE

8 SAMSUNG GALAXY S I9000 METALLIC BLACK

smartphones which generate data revenue

• Tele2 launched iPhone in July 2010

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8 SAMSUNG GALAXY S I9000 METALLIC BLACK

NORDICS: TELE2 WILL OFFER THE BEST DEAL BY BETTER UNDERSTANDING THE CUSTOMERUNDERSTANDING THE CUSTOMER

CUSTOMER BASE MANAGEMENT

• 800 MSEK investment enabling a more sophisticated analysis of customer base

• The customer base management team will split customers into potential d i ti tand existing customers

• Potential customers: focus on efficient communication of price and quality

• Existing customers: segment customers according to phase and address

Purchase Churn

them accordingly in order to increase customer life time value

New customer Stable customerProspect Unstablet

Lukewarmt

10

pcustomer prospect

NORDICS: TELE2 WILL GAIN MARKET SHARES WITH PRICE POSITIONPOSITION

Mobile market penetration Sweden PRICE POSITION IS CORE

90%100%110%120%130%

atio

n

• Nordic markets are among the most mature telecom markets in Europe

• Services differ little across operators

50%60%70%80%90%

Pene

traServices differ little across operators

• Price will be an increasingly important differentiator

• Tele2 has had and will continue to have the 40%strongest price position

• Price position will be retained through our cost efficient DNA resulting in cost efficient networks SUNAB Net4Mobility and Mobile Norway

Source: Analysis mason, 2010SUNAB, Net4Mobility and Mobile Norway

SUNAB

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SUMMARY

Controlled infrastructure in Norway with Mobile Norway

Acquisition of Spring strengthens Business product portfolio

Data from Smartphones is driving market growth

portfolio

Smartphones are becoming mass market and are attracting Tele2 customers

iPhone launched

Tele2 invests 800 MSEK to better address customer bbase

Lowest price position through cost efficiency will be Tele2s key unique selling point in a mature market

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