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
Sep 20113 Capital Markets Day 2011
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
Sep 20114 Capital Markets Day 2011
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%
Sep 20115 Capital Markets Day 2011
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
Sep 20116 Capital Markets Day 2011
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
Sep 20117 Capital Markets Day 2011
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
Sep 20118 Capital Markets Day 2011
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
Sep 20119 Capital Markets Day 2011
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:
Sep 201110 Capital Markets Day 2011
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:
Sep 201111 Capital Markets Day 2011
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
12
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