CMD2012 - Thomas Ekman - Market Area Nordic

Capital Markets Day Thomas Ekman, Market Area Director Nordic

December 12, 2012

37 Tele2 Capital Markets Day 2012

Sweden

EBITDA CapEx Net sales 29% 30% 21%

* Figures represent contribution to group; YTD Q3 2012

• Build on mobile growth and 4G roll-out

coupled with household / corporate

fiber strategy


What has happened since last CMD?

MOCN


Operational performance

0%

10%

20%

30%

40%

0

500

1,000

1,500

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

EBITDA SEK MILLION

EBITDA Mobile EBITDA Fixed broadband EBITDA Fixed telephony

EBITDA (%) Mobile EBITDA (%) Fixed broadband EBITDA (%)Fixed telephony

79%

11%

9%

1%

REVENUE Q3 2012

Mobile

Fixed broadband

Fixed telephony

Other operations

0

200

400

600

800

1,000

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

EBITDA - CAPEX SEK MILLION

2,000

2,500

3,000

3,500

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

REVENUE SEK MILLION

Mobile Fixed broadband Fixed telephony Other operations


Two brands covering market demands

Value Champion Discounter


Brands and positioning

High perceived quality

High perceived price

Low perceived quality

Low perceived price


High degree of bucket offerings in the market

Note: Postpaid residential

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012

Bucket revenue & periodic fees Non-bucket revenue

Bucket offerings secure revenue


Hardware and data significant part of revenue

Revenue break down, total Postpaid Residential

Voice & SMS Data Hardware


The importance of distribution increases


Tele2 Business continues to grow

• Several new contracts in Q3

• Continued growth in CaaS

• Price leader in SME Mobile Revenue

Market Share

16.7%


Benefits of Mobile Networks in JVs

JV's Capex

& Opex

Tele2 share

of JV's Capex

& Opex

Tele2 saving

If Tele2 would

build own

network

Capex & Opex

100%

40%

50%

90%

Principle of JV Saving CAPEX & OPEX

2011 2012 2013 2014 2015 2016 2017

Network cost / MB

• EDGE in 2G

• 25 percent more 2G base stations

• Most advanced mobile data technology


2G: MOCN finalization during

Q2 2013

4G: LTE 1800 roll-out to

improve capacity

LTE 800 roll-out to

improve coverage

Combined 2G & 4G network to improve

capacity and coverage Future LTE 1800 coverage

LTE 800 and LTE 1800

Current 3G and 4G coverage


4G main source of data growth in Sweden

Jun-11 Jun-12 Jan-12 Sept-12

3G 4G


What to expect from 4G hardware

• 4G router success

• Strong focus from all

manufacturers

• Multiple band support


Apps supporting our access model

+46

Minutes of Use

0

10

20

30

40

50

60

May-12 Jun-12 Jul-12 Aug-12 Sep-12

Thousands


Tele2 Business and Residential: fixed strategy

Tele2 Business provides last

mile access for B2B customers

Tele2 Residential focuses on

household sales in Open

Access networks


No open access

network

Private

Municipal

How we operate Open Access networks

Tele2 will reach approx. 600,000+

households on 3Play in Open Access

Networks by the end of 2013


Summary • Comviq and Tele2 brands positioned for

differentiation

• Strong demand for bucket pricing

• Strong demand for smartphones

• Handset and data significant part of

revenue

• High growth in 4G, moderate growth in 3G

• Fixed services generate a strategic and

financial value


Norway EBITDA CapEx Net sales

11% 3% 11%

• Roll out own network

• Focus on bucket price subscriptions

* Figures represent contribution to group; YTD Q3 2012


What has happened since last CMD?

http://www.networknorway.no/nb-NO/Toppmeny/Om_Network_Norway/Presse/Pressemeldinger/EPSI_2012


Operational Performance

94%

6%

REVENUE Q3 2012

Mobile

Fixed

-250

-200

-150

-100

-50

0

Q4-11 Q1-12 Q2-12 Q3-12

EBITDA – CAPEX SEK MILLIONS

0

500

1,000

1,500

Q4-11 Q1-12 Q2-12 Q3-12

REVENUE SEK MILLIONS

Mobile Fixed Other

-50%

0%

50%

-80

-30

20

70

120

Q4-11 Q1-12 Q2-12 Q3-12

EBITDA SEK MILLIONS

EBITDA Mobile EBITDA Fixed Telephony

EBITDA (%) Mobile EBITDA (%) Fixed Telephony


Brands and positioning

High perceived quality

High perceived price

Low perceived quality

Low perceived price

http://ipv6.tele2.net/index.php

http://ipv6.tele2.net/index.php


Strong focus on network roll-out

Good coverage

Coverage in major cities

Coverage within Q1-Q2 2013

Number of integrated sites

0

200

400

600

800

1,000

1,200

1,400

75% population coverage by mid 2013


Regulatory environment

Operator 800 MHz 900 MHz 1800

MHz

2100

MHz

2600

MHz

Telenor 2x15 2x10 2x20 2x40

NetCom 2x15 2x16.4 2x20 2x20

Tele2 2x5 2x20

Spectrum portfolio

47%

39%

14%

Telenor NetCom Mobile Norway

Possible auctions of 800, 900 and 1800 MHz in Q1 2013

Successful acquisition of 2*5 MHz in the 2.1 GHz band

Frequency distribution


Summary • Repositioning of brand portfolio

• Strong focus on network roll-out

CMD2012 - Thomas Ekman - Market Area Nordic

Investor Relations

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