1. TELE2 COMPANY
OVERVIEW
20 March 2012

2. Tele2 offers cutting edge telecom
products and services
Challenger telecom
operator offering mobile
and fixed telephony and
broadband and related
services
Front row player within
new technology 4G
Broad range of products
and services to
residential and business
customers
2

3. Tele2‟s has 34 million customers in 11
national markets
Tele2 Group Financials
Sales 2011:
SEK 40.8 bn
EBITDA 2011:
SEK 10.9 bn
Sales Q4 2011:
SEK 10.8 bn Market areas
EBITDA Q4 2011: Tele2 Nordic: Sweden and Norway
SEK 2.9 bn
Tele2 Western Europe: Netherlands, Germany and Austria
Tele2 Russia: Russia
Number of customers:
Tele2 Central Europe & Eurasia:
34 million Estonia, Latvia, Lithuania, Croatia, Kazakhstan
3

4. Market Area Russia: Overview
Population
Appr. 140 million
Tele2 Russia
 43 regions of Russian Federation
 20.6 million subscribers
 Mobile operator #4 in Russia in terms
of subscribers and revenue
Represents 28% of total net sales Q4 2011
Focus
 Continue grow customer base and maximize the 2G opportunity
 Ensure that newcomer and challenger regions reach the same operational trends as
defender regions
 Evaluate possibilities to expand carefully through new licenses as well as by
complementary acquisitions
4

5. Q4 Highlights Russia
Region’s position Market share EBITDA
Defender (10 regions) Leader in the region 35% Moscow
(avg. 46%) (avg. 52%)
Challenger (17 regions) 20% < 35%
(avg. 31%) (avg. 31%)
Newcomer (16 regions) < 20% ≥0
(avg. 17%)
EBITDA and NET SALES and CUSTOMER BASE and
EBITDA MARGIN YoY NET SALES GROWTH CUSTOMER INTAKE
SEK Million SEK Million Thousands Thousands
1,600 60% 3,200 30% 21,000 800
1,200 45% 2,800 23% 20,000 600
800 30% 2,400 15% 19,000 400
400 15% 18,000 200
2,000 8%
0 0% 17,000 0
1,600 0%
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
EBITDA (left) Net sales (left) Customer base (left)
5 EBITDA margin (right) YoY net sales Customer net
growth (right) intake (right)

6. The Russian mobile market
TELE2 SUBSCRIBERS AS PART OF TOTAL
Tele2 MOBILE SUBSCRIBERS AND PENETRATION
RUSSIAN MOBILE MARKET
Million subscribers Million subscribers Subs Penetration (%)
9.1%
250 250 180%
5.6%
200 200 160%
150 150 140%
100 100 120%
50 50 100%
Q1 09 09 09 09 10 10 10 10 11 11 11 11
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 06 07 08 09 10 11 12F 13F 14F 15F
NET ADDITIONS
Tele2 MegaFon
Thousands of subscribers Vimpelcom MTS
8,000
6,000
4,000
During 2011, Tele2 has gained
2,000
market share
0
-2,000
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
09 09 09 10 10 10 10 11 11 11 11
6

7. Revenue source development
TELE2 RUSSIA: REVENUE SPLIT Q4
8,1%
VAS revenue (%)
(excl. Data)
12,1% Tele2 VAS and data revenue share
Voice revenue (%)
of total revenue is growing and is
Data revenue (%) comparable to market level
80%
BIG4 IN TELE2 REGIONS ARPU DEVELOPMENT
DATA REVENUE BREAKDOWN, %
RUB
400
15% 15% 300
21% 20%
224
200
30% 29% 100
34% 35%
0
2006 2007 2008 2009 2010 Q1 11 Q2 11 Q3 11 Q4 11
Tele2 MegaFon Vimpelcom MTS
Q3 Q4
7

8. Regulatory update: Tele2 Russia
• On 12 March it was announced that Roscomnadzor issued the
radio frequency permission to NIIR* to deploy LTE trial on Tele2
network
• The permission is valid until 31 March which is sufficient for
NIIR to complete the trial according to the approved
methodology
• NIIR is expected to issue the trial results report by the end of
April and it is likely to be submitted for the Q2 2012 GKRCh
meeting for the decision on TN to be made
* State-owned Science and Research Institute
8

9. Market Area Nordic: Overview
Population
14.4 million
Tele2 Sweden and Tele2 Norway
Home market and test bed for new services
Represents 42% of total net sales Q4 2011
Sweden 30%; Norway 12%
Focus
 Sweden: Build on mobile growth and 4G roll-out coupled with household/ corporate
fiber strategy
 Norway: Integration of Network Norway and migration of customers to Tele2‟s own
network
9

10. Smartphone market development
SMARTPHONE INSTALLED BASE*
100%
80%
Sales of top ten mobile phones
60% Tele2 Sweden (FY 2011)
40%
20% 1. iPhone 4 16GB
0% 2. iPhone 4S 16GB
1106 1107 1108 1109 1110 1111 1112
Regular handset Smartphone
3. Samsung Galaxy S2
4. iPhone 4 32GB
SMARTPHONE PRICE CATEGORIES 5. ZTE Blade
100%
6. Sony Ericsson Cedar
90%
80%
7. iPhone 4 8GB
70%
8. Samsung Galaxy Gio
60%
9. Sony Ericsson Xperia Arc
50%
10. Samsung Galaxy ACE
Q4 2010 Q4 2011
High end Mid Low end
* Postpaid residential, quantity of handsets
10

11. Growth in sales of data packages
DATA PACKAGE CUSTOMER STOCK 2011 MOBILE SURF PACKAGES
Subscribers
600,000
500,000
400,000
300,000
Base Small
200,000
100,000
0
Jan Feb Mar Apr May Jun
Maj Jul Aug Sep Oct Nov Dec
Okt Nov Dec Medium Large
Data package customer stock increased by 120% during 2011
11

12. Recent happenings
12

13. Tele2 Norway organisation
• After Tele2 Sweden AB acquired Network Norway in October 2011, Tele2's Norwegian
operations have consolidated its position as the third largest player in the Norwegian
mobile market with over 1.1 million customers
• Tele2 in Norway is building the country's third mobile network which currently has
45 percent population coverage
Parent company
Tele2
Sverige AB
Subsidiary companies
Tele2 Network
Norge AS Norway AS
Brands OneCall Network
13

14. Tele2 Norway integration update
• An effective overall integration process
has resulted in an optimal organisational
structure for Tele2 Norway in place mid
October 2011
• Headcount integration synergies of 14%
• Strong joint operations established with
full focus to obtain the #2 market position
from NetCom (TeliaSonera)
14

15. Market Area Western Europe: Overview
Population
106 million
Leading the group in business to business services
and consumer fixed broadband
Represents 19% of total net sales Q4 2011
Netherlands 13.4%; Germany 2.5%; Austria 3.1%
Focus
 Netherlands Grow in mobile and SME
 Austria B2B & Integration of Silver Server
 Germany Grow Fixed Via Mobile product
15

16. Dutch mobile market attractiveness
• Dutch government favours competition and
newcomers
- 2010: MNOs „capped‟ in 2.6 GHz auction
- 2012: specific „newcomer reservation‟ in 800
and 900 MHz bands for non-MNOs in
800/900/1800 auction October 2012
• Adoption of mobile broadband in the
Netherlands is amongst the lowest in
Europe, prices amongst the highest
This will be the main growth opportunity for 4G
enabling disruptive offers by a newcomer
• Differentiation
We believe we can offer a truly distinct mobile
broadband experience, enabled by LTE as a
technology „step change‟ (Dutch market
standard is HSPA ≤14.4 MBps)
16

17. Tele2 NL becoming an MNO
PROS CONS
• Tele2 Group holds experience as • Uncertainty of October 2012
a mobile (LTE) operator auction
• Tele2 NL is an established player • Securing network sharing is
crucial
• Tele2 NL has an own nationwide
fiber backbone
Becoming MNO is a viable long term growth option for Tele2 Netherlands, and
it will also facilitate seamless, converged offerings
17

18. Market Area Central Europe and
Eurasia: Overview
Population
28 million
Represents 12% of total net sales Q4 2011
Estonia 2%; Latvia 3%; Lithuania 3%;
Croatia 3%; Kazakhstan 1%
Focus
 Stability and improvements in Baltics
 Growth in revenue, profits and market share in Croatia
 Establish Tele2 in all regions and continue to grow rapidly in Kazakhstan
18

19. Kazakhstan mobile market overview
MARKET CHARACTERISTICS TELE2
• Prepaid market dominated by two • The first real discounter on the
GSM operators market
• Strong growth of the mobile • Tele2 brand; Launch of region by
penetration during the last years region to offer the best price and
take into consideration the region
• High transmission prices, the specifics and good coverage
main player incumbent
Kazakhtelecom • After Tele2 entered the market
the competition level increased
• Relatively low MoU (around 100 significantly
• The average price offered to new
min.) compared to neighboring customers in Almaty has been reduced
countries almost two times. Similar development in
other regions of Kazakhstan
• A discount sub brand has been launched
• High interconnect rates by a competitor to defend its customer
base
19 2010-10-20

20. Tele2 Kazakhstan organisation overview
Tele2 AB Asianet Holding
51% 49%
Tele2 KZ
Frequency band Channel Technology
900 11 MHz GSM/UMTS
1800 5 MHz GSM
2100 20 MHz UMTS
20 2010-10-20

21. Kazakhstan mobile market division
CUSTOMER MARKET SHARE 2011 SHARE OF NET GROWTH 2011
4.3% 6.4% 7% 22%
50.3% 39.0% 40% 32%
The market is dominated by two GSM
Tele2 took a major part of the net growth
operators sharing almost 90% of
in the Kazakh telecom market in 2011
customer and revenue market share
21 2010-10-20

22. Tele2 Kazakhstan launch status
1,500,000 300,000
City Launch Region 250,000
1,200,000
population 200,000
Shymkent March 2012 2 600 000 900,000 150,000
100,000
Taraz March 2012 1 000 000 600,000
50,000
Kyzyl-Orda April 2012 700 000 300,000
0
Atyrau April 2012 500 000 0 -50,000
Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec
Customer base (left) Customer net intake (right)
22

23. Bal. sheet consideration / Fin. leverage
When available, invest in value accretive M&A or
C
M&A / New growth new business opportunities meeting Tele2‟s
A opportunities strict financial hurdles
S
H
G
E
Shareholder Enhance shareholder value by distributing
N recurring cash to shareholders
E remuneration
R
A
T
I
O Retain financial buffer
N Cash / Buffer
Prudent assessment based on (a) status of operations, (b) future strategic
opportunities, (c) competitive landscape and (d) general macroeconomic status
23 2010-10-20

24. Net debt and dividend targets
Shareholder remuneration
“Tele2 will seek to pay a progressive ordinary dividend of no less than 50 percent
of net income excluding one-off items. Extraordinary dividends and the authority to
purchase Tele2‟s own shares will be recommended or sought when the anticipated
total return to shareholders is deemed to be greater than the achievable returns
from the deployment of the capital within the group's operating segments or the
acquisition of assets within Tele2‟s economic requirements.”
Balance sheet
“Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75 times over
the medium term. The company‟s longer term financial leverage should be in line
with the industry and the markets in which it operates and reflect the status of its
operations, future strategic opportunities and contingent liabilities.”
24 2010-10-20

25. Sources of funding Q4 2011
Revolving credit facility
Russia bond
Other financing
Off BS items
In 2012, Tele2 AB strives to diversify its sources of funding further
25

26. Concluding remarks
• Create a strong network based
operator in Norway
• Start exploiting 4G services in
Sweden
• Evaluate MNO opportunities in the
Netherlands
• Complete the launch of mobile
services in all regions in
Kazakhstan
• Launch 6 new regions in Far East
of Russia
26

27. Appendix
27

28. Group results
SEK million Q4 11 Q4 10 % YTD 11 YTD 10 %
Net sales 10,839 10,109 7.2% 40,750 40,164 1.5%
EBITDA 2,791 2,488 12.2% 10,852 10,284 5.5%
- EBITDA margin (%) 25.7% 24.6% 26.6% 26.0%
Depr. and joint ventures -1,125 -975 -3,880 -3,580
- Depr. of Net sales (%) 10.4% 9.7% 9.6% 9.0%
One-off items -26 -157 -4 384
EBIT 1,640 1 ,56 20.9% 6,968 7,088 -1.7%
Normalized EBIT 1,666 1,513 6,972 6,704
- Normalized EBIT margin (%) 15.4% 15.0% 17.1% 16.9%
Financial items -60 -155 -599 -353
Taxes -269 -102 -1 465 -254
Net profit/loss 1,311 1,099 4,904 6,481
Discont. operations 0 404 -7 447
NET RESULT 1,311 1,503 4,897 6,928
28

29. Currency movements (vs. SEK)
YoY difference in YTD average End of Q4 spot rate
FX rates, 2011 vs. 2010 vs. 31/12-2010
EUR -5.6 % EUR -0.6 %
RUB -7.3 % RUB -3.6 %
EUR/EUR pegged and RUB currencies represent 56%
of external sales and 74% of EBITDA
29

30. Currency-adjusted sales and EBITDA
CURRENCY-ADJUSTED SALES CURRENCY-ADJUSTED SALES (FY)
SEK Million SEK Million
45,000
15,000
36,000 + 7%
12,000
+ 8% 27,000
9,000
6,000 18,000
3,000 9,000
0 0
Q4 '10 Q4 '11 YTD '10 YTD '11
CURRENCY-ADJUSTED EBITDA CURRENCY-ADJUSTED EBITDA (FY)
SEK Million SEK Million
3,000 12,000
2,500 10,000
+13% +10%
2,000 8,000
1,500 6,000
1,000 4,000
2,000
500
0
0
YTD '10 YTD '11
Q4 '10 Q4 '11
30

31. Taxes
Taxes in income
statement (MSEK) Q4 11 Q4 10 YTD 11 YTD 10
Normal -377 -277 -1 573 -1 405
One-Off 108 175 108 1 151
Total -269 -102 -1 465 -254
Taxes in cash
flow statement (MSEK) Q4 11 Q4 10 YTD 11 YTD 10
Normal -163 -160 -948 -740
One-Off - - - -
Total -163 -160 -948 -740
Deferred tax assets at year end amounted to SEK 2.9 (3.2) billion
31

32. Cash flow
Cash flow (SEK million) Q4 11 Q4 10 YTD 11 YTD 10
OPERATING ACTIVITIES
Before paid tax 2,584 2,311 10,610 10,450
Paid taxes -163 -160 -948 -740
Changes in working capital -106 -374 -414 -100
CF from operating activities 2,315 1,777 9,248 9,610
INVESTING ACTIVITIES
CapEX -1,400 -1,163 -4,667 -3,603
CF after CapEX 915 614 4,581 6,007
Shares and participations -1,541 - 469 -1,217 -1,510
32

33. Debt position and ratio
PRO FORMA NET DEBT / EBITDA 12’M ROLLING
SEK Billion
20.0 2.00
17.5 1.75 Upper limit
15.0 1.50
12.5 1.25
Lower limit
10.0 1.00
7.5 0.75
5.0 0.50
2.5 0.25
0.0 0.00
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Pro Forma Net Debt Ordinary dividend Upper limit
Pro Forma Net Debt / EBITDA 12‟M Rolling Extraordinary dividend Lower limit
33

34. Debt profile
SOURCES OF FUNDING
SEK Billion
20.0
17.5
15.0
12.9 12.6
12.5 11.3
10.0
7.5
5.0
2.8
2.5 1.7
0.0
-2.5
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
-5.0
Revolving credit facility Russia bond Other bank loans
Off BS items Cash Pro forma net debt
34

35. Bal. sheet consideration / Fin. leverage
When available, invest in value accretive M&A or
C
M&A / New growth new business opportunities meeting Tele2‟s
A opportunities strict financial hurdles
S
H
G
E
Shareholder Enhance shareholder value by distributing
N recurring cash to shareholders
E remuneration
R
A
T
I
O Retain financial buffer
N Cash / Buffer
Prudent assessment based on (a) status of operations, (b) future strategic
opportunities, (c) competitive landscape and (d) general macroeconomic status
35

36. Net debt and dividend targets
Shareholder remuneration
“Tele2 will seek to pay a progressive ordinary dividend of no less than 50 percent
of net income excluding one-off items. Extraordinary dividends and the authority to
purchase Tele2‟s own shares will be recommended or sought when the anticipated
total return to shareholders is deemed to be greater than the achievable returns
from the deployment of the capital within the group's operating segments or the
acquisition of assets within Tele2‟s economic requirements.”
Balance sheet
“Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75 times over
the medium term. The company‟s longer term financial leverage should be in line
with the industry and the markets in which it operates and reflect the status of its
operations, future strategic opportunities and contingent liabilities.”
36

37. Mobile Fixed broadband Fixed telephony Other
Group financials
GROUP EBITDA and GROUP NET SALES
GROUP EBITDA MARGIN
SEK Million SEK Million
3,500 30% 12,000
3,000 10,000
28%
2,500
8,000
2,000 26%
6,000
1,500 24%
1,000 4,000
22%
500 2,000
0 20% 0
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Group EBITDA
margin
GROUP CAPEX (BS) ROCE
SEK Million Percent
25%
1,600 23%
1,400 20% 22%
19%
1,200 20%
19%
1,000 15%
800
10%
600
400 5%
200
0 0%
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
37

38. Group mobile EBITDA
GROUP MOBILE EBITDA
SEK Million
2,500 35%
2,000 28%
1,500 21%
1,000 14%
500 7%
0 0%
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
-500 -7%
Mobile EBITDA on own infrastructure Mobile EBITDA (MVNO)*
Mobile EBITDA margin on own infrastructure Total mobile EBITDA margin
* Norway, Netherlands and Germany are treated as MVNO
38

39. Income statement/Adjustment 2011
using new accounting principles
SEK million 2011, Full year
CONTINUING OPERATIONS
Net sales 251
Operating expenses -215
Results from shares in associated companies and JVs -16
Other operating income 62
Operating profit, EBIT 82
Interest income/costs -75
Profit after financial items, EBT 7
Tax on profit -7
NET PROFIT -
EBITDA Mobile Sweden 318 +2.7%
Total Assets 355
Return On Capital Employed -0.4%
39

40. Sweden mobile revenue and EBITDA
(Q)
SALES EBITDA
SEK million SEK million
2,241 10 149 9 2,409
36%
1%
670 22 -32 51 5 716
EBITDA GM2 N4M Expansion Other EBITDA
Ext. revenue Recurring Mobile Ass. comp & Ext. revenue Q4 2010 (excl. cost OpEx Q4 2011
Q4 2010 sales equipment adjustments Q4 2011 N4M)
40

41. Sweden mobile revenue and EBITDA
(FY)
SALES EBITDA
SEK million SEK million
8,474 311 609 -72 9,322
87%
4%
2,803 253 -68 -46 -100 2,842
Ext. revenue Recurring Mobile Ass. comp & Ext. revenue EBITDA GM2 N4M Expansion Other EBITDA
YTD 2010 sales equipment adjustments YTD 2011 YTD 2010 (excl. cost OpEx YTD 2011
N4M)
41

42. Swe mobile: Restated JV accounting
SALES (Quarterly comparison) SALES (FY comparison)
SEK million SEK million
8,474 303 8,776 -119 34 609 227 9,528
2,241 57 2,298 -33 16 149 12 2,441
EBITDA and EBITDA margin EBITDA and EBITDA margin
SEK million SEK million
2,803 333 3,137 -57 -45 0 126 3,161
670 73 743 -16 -26 0 97 799
2% 0% -1% -2% 4%
30% 32% 33%
33% 3% 36% 0% % -1% -2,3% 0,5%
-0,9 -2% 33%
1%
Equipment
MTR
N4M
Restated EBITDA Q4
Restated EBITDA Q4
Restatement
Q4 2010
Underlying
Restatement
MTR
N4M
Equipment
YTD 2010
EBITDA YTD '10
EBITDA YTD '11
Underlying
Restated
Restated
'10
'11
42

43. 43 2010-10-20

44. Tele2 Norway history
1995 2000 2002 2007 2008 2009 2010 2011
Norway mobile
Norway
operations launched ADSL and
fixed MVNO New MNVO Acquisition
and strong organic VoIP
operation at contract with of Network
growth initiated. operations
s Telenor NetCom Norway
Service Provider at divested
launched
Telenor.
Acquisition of Rapid
Norway Lebara and turnaround, increa
operations OneCall and sing profits while
launched strong organic maintaning strong
growth initiated growth
Founded by
Network roll-out
Tele2 and
phase 1 fully
Network
financed
Norway
44 2010-10-20

45. Tele2 Norway brand overview
Revenue market share: 8.3 %* 1.5 %*
• Position: Best deal challenger to Telenor and NetCom • Position: Best deal in the business segment
• Segment: Residential/postpaid/prepaid: high, medium and low-end • Segment: Business/postpaid: high, medium and low-end customers
customers • Products: Mobile voice, mobile broadband and Mobile Centrex
• Products: Mobile voice, mobile broadband and fixed telephony • Price perception: Low
• Price perception: Low • Quality perception: Medium (NwN) / Low (Tele2)
• Quality perception: Medium • Channels: Retail, TM (Tele2)
• Channels: Web, retail, TM and Customer Service • Revenue (Q4 2011): MNOK 116
• Revenue (Full year 2011): MNOK 2 311 • Subscribers (End of 2011): 82 000
• Subscribers (End of 2011): 592 000
2.7 %* 2.6 %*
• Position: Price position in the general market • Position: Market leader with price position within the ethnic segment
• Segment: Residential/postpaid: basic services customers • Segment: Residential/prepaid/postpaid: ethnic segment and
• Products: Mobile voice and mobile broadband international calls
• Price perception: Low • Products: Mobile voice
• Quality perception: Medium • Price perception: Low
• Channels: Web • Quality perception: Low/Medium
• Revenue (Q4 2011): MNOK 229 • Channels: Retail, web and canvas
• Subscribers (End of 2011): 261 000 • Revenue (Q4 2011): MNOK 136
• Subscribers (End of 2011): 222 000
* Total market share revenue according to ”Det norske markedet for elektroniske kommunikasjonstjenster 1. halvår 2011, Post og Teletilsynet, 2011-11-14”. Please note
that Network Norway and OneCall have a combined market revenue share of 4.2 % (market share excludes Tele2 Business which is included in Tele2‟s market share of
8.3 %). Network Norway‟s and OneCall‟s combined market revenue share has been divided (1.5 % and 2.7 %) in relation to total revenue reported for 1st half of 2011 for
45
respective 2010-10-20
company.