Presentation Market Central Europe from Tele2s Capital Markets Day 2009

1. CENTRAL EUROPE
1 2009-09-17 Niklas Sonkin

2. MARKET AREA
CENTRAL EUROPE
Niklas Sonkin
Market Area Director

3. INTRODUCTION
Market Area Central Europe
Represents 14 percent of total revenues Q2 2009
EBITDA up 9 percent H1 08 vs H1 09
Strong performance compared to competition
Short- to Medium-term focus & activities
The Baltic Manage economic turmoil and create a
platform for future growth
Croatia Reach EBITDA break even during 2H 2010
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4. THE BALTIC REGION
Building a platform for future growth

5. THE BALTICS –
DEEP RECESSION
Source: SEB
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6. OPERATIONAL PERFORMANCE
SEK million
Strong operational 600
REVENUE
performance partly due
to appreciating EUR
400
200
39 percent EBITDA margin
in Lithuania Q2 2009 0
2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2
SEK million
SEK million EBITDA - CAPEX
EBITDA
200 160
160 120
120 80
80 40
40 0
2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2
0 -40
2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2
Lithuania Latvia Estonia
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7. PERFORMANCE vs PEERS
Estimated Mobile Revenue market share
LITHUANIA
60,0%
Provide the Best Deal Tele2 Omnitel Bite
45,0%
Perceived price leadership
30,0%
Network coverage and quality
on a par with competition 15,0%
0,0%
Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009
LATVIA ESTONIA
75,0%
60,0%
Tele2 LMT Bite Tele2 EMT Elisa
60,0%
45,0%
45,0%
30,0%
30,0%
15,0%
15,0%
0,0% 0,0%
Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009
Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009
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8. TELE2 PERFORMANCE VS.
PEERS
ESTONIA YTD 2009 Revenue, YoY YTD 2009 EBITDA, YoY
Tele2 (9%) (9%)
EMT (Telia) (16%) (18%)
Elisa (20%) (24%)
Average (15%) (17%)
LATVIA YTD 2009 Revenue, YoY YTD 2009 EBITDA, YoY
Tele2 (11%) (22%)
LMT (Telia) (17%) (21%)
Bité +48% +30%
Average (12%) (21%)
LITHUANIA YTD 2009 Revenue. YoY YTD 2009 EBITDA, YoY
Tele2 0% +15%
Omnitel (Telia) (25%) (31%)
Bité (18%) (8%)
Average (17%) (14%)
Source: Tele2 Research
Memo: This is Tele2 YoY performance in local currency for mobile operations only.
Comparable competition result (for mobile only) is our best estimate using their official reporting as primary source.
Estonia: Impact of changed accounting principles regarding recognition of handsets revenue/ebitda is excluded from 2008 result.
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9. CUSTOMER AND
PRICING STRATEGY
Tele2 will offer the best deal by
combining perceived price
leadership with expected
quality of service
Focus on relevant quality
improvement
Expand 2G rollout to cover
gaps on roads and indoor
coverage
Tight control of sales and
distribution channels
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10. MARKET SHARE IN THE B2B
SEGMENT
ESTONIA 2008 2009E
Tele2 14% 16%
EMT (Telia) 57% 55%
Elisa 29% 29%
LATVIA 2008 2009E
Tele2 15% 19%
LMT (Telia) 83% 77%
Bité 2% 4%
LITHUANIA 2008 2009E
Tele2 12% 14%
Omnitel (Telia) 49% 47%
Bité 39% 39%
Source:Tele2 Research
Memo: Estimated B2B revenue share
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11. BUSINESS TO
BUSINESS STRATEGY
Concentrate on SME as a
core Tele2 segment
Take part in all public tenders
and increase share of state-
owned companies
Offer the best deal
Use customer
recommendations in
marketing strategies
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12. CROATIA
EBITDA break-even during 2H 2010

13. OPERATIONAL PERFORMANCE
SEK million
Solid customer intake due to
400
REVENUE
better customer perception 320
240
Better scale leading to 160
diminishing operational losses 80
0
2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2
SEK million SEK million
EBITDA EBITDA - CAPEX
0 0
2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2
- 40
-40 - 80
-120
-80 -160
- 200
-120 - 240
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14. PERFORMANCE vs PEERS
Estimated Mobile Revenue market share
Tele2 is gaining market share but still lacks economies of scale
Competitors are defending their positions and high prices
Tele2’s focus is on doubling the market share and becoming EBITDA
positive
60,0%
45,0%
30,0%
15,0%
0,0%
Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009
Tele2 T-Mobile VIPnet
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15. STRATEGY
Tele2 to be positioned as clear price leader
Tele2 Croatia lacks sufficient scale and needs to double its market
share
We have a proactive approach on regulatory decisions and take
action on tariff changes if necessary
Tele2 will utilize the current economical downturn to prompt
customers to save on mobile telecommunications
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16. CROATIA PERFORMANCE
HIGHLIGHTS
YTD 2009 YTD 2009
Operators Revenue,YoY EBITDA, YoY
Tele2 +55% +27%
T-Mobile 0% +7%
Vipnet (7%) (19%)
Average +1% (2%)
Changes in Vipnet and T-Mobile EBITDA YoY are driven by Tele2 National
roaming contracts, as Tele2 used Vipnet in 2008, but shifted to T-Mobile in 2009
Memo: This is Tele2 YoY performance in local currency for mobile operations only.
Comparable competition result (for mobile only) is our best estimate using their official reporting as primary source.
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17. CROATIA –
ROAD TO POSITIVE EBITDA
To achieve positive EBITDA, Tele2 needs to:
Further increase market share to get scale
At least 20 percent revenue market share to align business with
group targets for the whole operation
Further reduce National Roaming share of total traffic
Increase Tele2 share of incoming tourist roaming revenue
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18. STRATEGY TO INCREASE
MARKET SHARE
Improve quality perception
Use the current economical downturn to stress the saving
opportunity for the customers
Improve sales experience in Tele2 shops & visibility in FMCG
channel
Increase focus on retention and prolonging customer lifetime
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19. NETWORK DEPLOYMENT
Reduce NR share of traffic by continued network rollout
and by closing pockets for NR traffic
In 2009, we will close five pockets for NR traffic
Osijek September
Pula October
Zadar November
Split December
Rijeka December
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20. INCREASE SHARE OF ROAMING
Further increase roaming agreements with world-wide operators
mainly focusing on Europe. We now have 182 launched operators for
inbound roaming
Keep increasing preferred steering for voice/data
Concentrate on data roaming which is growing rapidly
Adapt network rollout schedule to roaming needs
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21. OUTLOOK FOR CROATIA
”WE WILL REACH
EBITDA BREAK-
EVEN DURING 2H
2010”
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22. Q&A
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23. SUMMARY
Continue with traditional Tele2 practices:
Perceived price leadership
Provide excepted quality
Use current economical environment to further
reduce costs:
Acquisition costs promoting sim-only tariff plans with no need
for subsidized handsets
Renegotiate all major contracts for media, CapEx etc.
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