2. HISTORIC REVENUE GROWTH
HIGHLIGHTS Q2 MSEK Tele2 Mobile Net Sales
2 500
2 000
• Accelerated mobile net sales + 5 percent
1 500
1 000
• Adding 74,000 mobile customers 500
– 31,000 mobile postpaid (14,000 in Q1 2010)
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010
• Mobile EBITDA margin 34,5 (34,0) percent
• Awarded “Best Mobile Broadband
Network”
1
3. MARKET GROWTH IS DRIVEN BY DATA
DEMAND FOR DATA INCREASES
Mobile market growth comes from data
25%
• Demand for mobile data is exploding, in particular
29000
from handset customers
23%
• Launch of “Unlimited” mobile broadband 28000
21%
• “Unlimited” positions Tele2 for 4G
Mobile revenue (MSEK)
Data-Revenue/Revenue
27000
• Offering home telephony and broadband via the 19%
mobile network in order to capitalize on fixed to
mobile substitution 26000
17%
25000
15%
24000
13%
23000 11%
22000 9%
2004 2005 2006 2007 2008 2009
Source: Analysis mason, 2010
2
4. DATA GROWTH IS DRIVEN BY SMARTPHONES WHICH ARE NOW
ATTRACTING TELE2 CUSTOMERS
Smartphones 2010 Smartphones 2008
LOW HIGH
ARPU ARPU
Tele2/Comviq target
segment
TOP SMARTPHONESALES AUGUST
• Smart Phones are becoming mass market
1 IPHONE 4 16GB BLACK TELE2
and prices are coming down driving the shift
even faster 2 IPHONE 4 32GB BLACK TELE2
3 IPHONE 3GS BLACK 8GB TELE2
4 SONY ERICSSON U20i XPERIA X10 MINI PRO BLACK
• Tele2 segments have begun to use
5 SONY ERICSSON E10i XPERIA X10 MINI BLACK
smartphones which generate data revenue
6 HTC WILDFIRE (NORDIC)
7 SONY ERICSSON XPERIA X10 WHITE
• Tele2 launched iPhone in July 2010 8 SAMSUNG GALAXY S I9000 METALLIC BLACK
3
5. HIGH POTENTIAL TO GAIN MARKET SHARES IN BUSINESS
SEGMENT
NEW BUSINESS STRATEGY
Market share development Mobile
Business
• Acquisition of Spring Mobil in order to 60%
strengthen product portfolio 50%
40%
30%
20%
• New product profile combined with new
10%
segmentation strategy has increased 0%
ARPU on business customers while 2006 2007 2008 2009
maintaining customer stock
Hi3G Tele2 TeliaSonera Telenor
Source: PTS 2010
4
6. TELE2 WILL OFFER THE BEST DEAL BY BETTER
UNDERSTANDING 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
and existing customers
• Potential customers: focus on efficient communication of price and quality
• Existing customers: segment customers according to phase and address
them accordingly in order to increase customer life time value
Purchase Churn
Unstable Lukewarm
Prospect New customer Stable customer prospect
customer
5
7. MULTICHANNEL SALES STRATEGY BASED ON AVAILABILITY AND
COST EFFICIENCY
MULTICHANNEL SALES STRATEGY TELE2 STORES CONTINUED SUCCESS
• Different sales channels for different products • Delivering above expectations
• Strong in retail • Customers have higher ARPU and lower churn
• Shifting from push to pull • More than 80% of sales are made with add on services
• Re-launched online store • Store network expansion continues
• Prepaid:
• 150 meter strategy
• Increased share of refills online
6
8. TELE2 WILL GAIN MARKET SHARES WITH PRICE POSITION
PRICE POSITION IS CORE Mobile market penetration Sweden
130%
• Swedish market one of the most mature 120%
110%
telecom markets in Europe
Penetration
100%
90%
80%
• Services differ little across operators 70%
60%
• Price will be an increasingly important 50%
40%
differentiator
• Tele2 has had and will continue to have the Source: Analysis mason, 2010
strongest price position
• Price position will be retained through our
cost efficient DNA resulting in cost efficient
networks SUNAB and Net4Mobility
SUNAB
7
9. SUMMARY
Tele2 has shown historic growth without iPhone and
own stores
Data from smartphones is driving market growth
Smartphones are becoming mass market and are
attracting Tele2 customers
iPhone launched
Acquisition of Spring strengthens Business product
portfolio
Tele2 stores continue to show great results
Tele2 invests 800 MSEK to better address customer
base
Lowest price position through cost efficiency will be
Tele2s key unique selling point in a mature market
8
