0

TELE2 SWEDEN

Enskilda

August 25 2010

Niclas Palmstierna

1

HISTORIC REVENUE GROWTH

HIGHLIGHTS Q2

• Accelerated mobile net sales + 5 percent

• Adding 74,000 mobile customers

– 31,000 mobile postpaid (14,000 in Q1 2010)

• Mobile EBITDA margin 34,5 (34,0) percent

• Awarded “Best Mobile Broadband

Network”

0

500

1 000

1 500

2 000

2 500

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Tele2 Mobile Net SalesMSEK

2

MARKET GROWTH IS DRIVEN BY DATA

9%

11%

13%

15%

17%

19%

21%

23%

25%

22000

23000

24000

25000

26000

27000

28000

29000

2004 2005 2006 2007 2008 2009

Data

-Rev

en

ue/R

ev

en

ue

Mo

bile r

ev

en

ue (

MS

EK

)

Mobile market growth comes from dataDEMAND FOR DATA INCREASES

• Demand for mobile data is exploding, in particular

from handset customers

• Launch of “Unlimited” mobile broadband

• “Unlimited” positions Tele2 for 4G

• Offering home telephony and broadband via the

mobile network in order to capitalize on fixed to

mobile substitution

Source: Analysis mason, 2010

3

DATA GROWTH IS DRIVEN BY SMARTPHONES WHICH ARE NOW ATTRACTING TELE2 CUSTOMERS

HIGH

ARPU

Tele2/Comviq target

segment

Smartphones 2008Smartphones 2010

LOW

ARPU

TOP SMARTPHONESALES AUGUST

1 IPHONE 4 16GB BLACK TELE2

2 IPHONE 4 32GB BLACK TELE2

3 IPHONE 3GS BLACK 8GB TELE2

4 SONY ERICSSON U20i XPERIA X10 MINI PRO BLACK

5 SONY ERICSSON E10i XPERIA X10 MINI BLACK

6 HTC WILDFIRE (NORDIC)

7 SONY ERICSSON XPERIA X10 WHITE

8 SAMSUNG GALAXY S I9000 METALLIC BLACK

• Smart Phones are becoming mass market

and prices are coming down driving the shift

even faster

• Tele2 segments have begun to use

smartphones which generate data revenue

• Tele2 launched iPhone in July 2010

4

HIGH POTENTIAL TO GAIN MARKET SHARES IN BUSINESS SEGMENT

0%

10%

20%

30%

40%

50%

60%

2006 2007 2008 2009

Market share development Mobile Business

Hi3G Tele2 TeliaSonera Telenor

• Acquisition of Spring Mobil in order to

strengthen product portfolio

• New product profile combined with new

segmentation strategy has increased

ARPU on business customers while

maintaining customer stock

NEW BUSINESS STRATEGY

Source: PTS 2010

5

TELE2 WILL OFFER THE BEST DEAL BY BETTER UNDERSTANDING THE CUSTOMER

New customer Stable customerProspect Unstable

customer

Lukewarm

prospect

Purchase Churn

• 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

CUSTOMER BASE MANAGEMENT

6

MULTICHANNEL SALES STRATEGY BASED ON AVAILABILITY AND COST EFFICIENCY

• Different sales channels for different products

• Strong in retail

• Shifting from push to pull

• Re-launched online store

• Prepaid:• 150 meter strategy

• Increased share of refills online

MULTICHANNEL SALES STRATEGY TELE2 STORES CONTINUED SUCCESS

• Delivering above expectations

• Customers have higher ARPU and lower churn

• More than 80% of sales are made with add on services

• Store network expansion continues

7

TELE2 WILL GAIN MARKET SHARES WITH PRICE POSITION

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Pen

etr

ati

on

Mobile market penetration Sweden PRICE POSITION IS CORE

• Swedish market one of the most mature

telecom markets in Europe

• Services differ little across operators

• Price will be an increasingly important

differentiator

• Tele2 has had and will continue to have the

strongest price position

• Price position will be retained through our

cost efficient DNA resulting in cost efficient

networks SUNAB and Net4Mobility

Source: Analysis mason, 2010

SUNAB

8

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

Acquisition of Spring strengthens Business product

portfolio

iPhone launched

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