Presentation Market Area Russia from Tele2s Capital Markets Day 2009

1. RUSSIA
1 2009-09-16 Name Namesson

2. MARKET AREA RUSSIA
Dmitry Strashnov
Market Area Director

3. RUSSIA AT LARGE
17,075,400 square kilometres
142 million people
11 time zones
Flight length from Kaliningrad to Vladivostok ~12 hours
83 regions
3 2009-09-16 Name Namesson

4. RUSSIAN TELECOM MARKET
Player License Cover Sub. Base Market share growth rate*
#Regions Q2 2009 July 2009 vs. July 2008
MTS 82 regions 67 420 000 8,99%
Beeline 80 regions 49 500 000 14,02%
Megafon 83 regions 45 400 000 14,29%
TELE2 37 regions 12 381 000 27,77%
*Source: ACM
4 2009-09-16 Name Namesson

5. MOBILE SUBSCRIBER
PENETRATION
Penetration levels in Tele2 licensed areas
Market penetration: 129%*
Active SIM penetration: 95%**
Estimated human penetration: 82%**
* & ** Source: ACM* and internal TELE2 research**
5 2009-09-16 Name Namesson

6. TELE2 RUSSIA CURRENT
FOOTPRINT
Licenses - 37 regions
with a population of 61
million
6 2009-09-16 Name Namesson

7. CLEAR BUSINESS GOALS
THROUGH EVOLUTION
Perceived price leadership/ Subscriber base
Defender 17 REGIONS
Challenger Retention
ARPU protection
Subscribers acquisition
Newcomer ARPU protection
Retention
Subscribers acquisition 20 REGIONS
1,5 – 2 years 2,5 – 3 years >3 years
7 2009-09-16 Name Namesson

8. TELE2 RUSSIA – OLD REGIONS
8 2009-09-16 Name Namesson

9. CONTINUOUS CUSTOMER GROWTH
14 000 000 300
Total SUBS end of period ARPU total
12 000 000
229 250
229 231
217 216 227
217
10 000 000 205 208
190
200
8 000 000
150
6 000 000
100
4 000 000
50
2 000 000
0 0
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
9 2009-09-16 Name Namesson

10. SOLID PROFITABILITY PROFILE
8 000 000 50%
Op Revenue EBITDA EBITDA %
7 000 000
45%
6 000 000
40% 40%
37% 37%
5 000 000
36% 36% 36%
4 000 000 33% 33% 35%
31%
3 000 000
28% 30%
2 000 000
25%
1 000 000
0 20%
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
10 2009-09-16 Name Namesson

11. TELE2 IS NUMBER ONE
IN 10 OF 17 REGIONS
Tele2 share Beeline Share MTS Share Megafon Share Other Share
40%
Market share in existing regions, %.
37%
35%
30%
25% 22% 21%
20% 17%
15%
10%
3%
5%
0%
Source: Internal Tele2 research
As of July 31, 2009
11 2009-09-16 Name Namesson

12. TELE2 RUSSIA NEW REGIONS
12 2009-09-16 Name Namesson

13. NEW REGIONS: A 3-STEP LAUNCH
Prelaunch Press-
Event & sales on
awareness conference &
the main square
building add campaign
13 2009-09-16 Name Namesson

14. NEW REGIONS: CUSTOMER
BASE DEVELOPMENT
Novosibirsk
900
800 771,7
Bryansk
Subscribers new regions, k subs.
700
600
490,4
500 Tomsk
400
Karsnodar 368,4
300 247,8
220,0
189,3 194,8
200 148,0
106,8
100
0
dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
14 2009-09-16 Name Namesson

15. OUTLOOK
Subscriber base should be able to reach 18-19 million by YE 2011
Maintain ARPU growth at 5% by 2011
EBITDA margin 2010-2011
Old regions’ EBITDA margin should evolve in the range of 40-45
percent
New regions’ EBITDA margin should break even 2 years from launch
Russia’s total EBITDA margin should develop in the range of 25-30
percent
Capex 2010-2011
Accumulated Capex in Russia should be in the range of SEK 4.5-5.0
billion
Selected acquisitions – when available and under right conditions
15 2009-09-16 Name Namesson

16. Q&A
16 2009-09-16 Name Namesson

17. SUMMARY
Commercial launch of new regions on track
New demanding but achievable operational
targets set for Russia
Tele2 Russia will continue to be the growth
engine of the group
17 2009-09-16 Name Namesson