tele2 fourth quarter 2012

FOURTH QUARTER 2012

Tele2 AB

February 5, 2013

2

Agenda

• About Q4 2012

• Financial review

• Concluding remarks

3

Tele2 Group Q4 Highlights

• Net mobile customer intake of 0.7 million leading to a total customer

base of 38.2 million

• Net sales growth for the Group amounted to 6%, corresponding to

SEK 11,275 million

• EBITDA amounted to SEK 2,672 million, equivalent to a margin of 24%

• CAPEX amounted to SEK 1,478 million

4

Focus

Continue to grow customer base and maximize the 2G opportunity

Evaluate possibilities to expand carefully through new licenses as well as by

complementary acquisitions

Make progress on technology neutrality

Market Area Russia: Overview

Population Appr. 143 million

Tele2 Russia

43 regions of Russian Federation

22.7 million subscribers

Mobile operator #4 in Russia in terms

of subscribers and revenue

Represents 30% of total net sales in Q4 2012

5

Q4 Highlights Russia

EBITDA and

EBITDA MARGIN

NET SALES and

YoY NET SALES GROWTH

CUSTOMER BASE and

CUSTOMER INTAKE

SEK Million

YoY net sales

growth (right)

Net sales (left)

EBITDA

margin (right)

EBITDA (left) Customer base (left)

Customer net

intake (right)

Thousands of customers SEK Million

• Strong customer net intake of 373,000

• Stable EBITDA margin, amounting to 37%

• ARPU grew by 4% YoY, and MoU by 7% YoY

0

200

400

600

800

16,000

18,000

20,000

22,000

24,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

0%

5%

10%

15%

20%

0

1,000

2,000

3,000

4,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

30%

33%

35%

38%

40%

0

400

800

1,200

1,600

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

6

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12

201220 223 218 229 234 235

0

50

100

150

200

250

300

350

400

2009 2010 2011 Q1-12 Q2-12 Q3-12 Q4-12

134%

144%

148%153%

154%158% 161%

120%

130%

140%

150%

160%

170%

0

50

100

150

200

250

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

subbase ex-Tele2 Tele2 penetration %

ARPU DEVELOPMENT

NET ADDITIONS

Thousands of subscribers

TELE2 SUBSCRIBERS AS PART OF TOTAL RUSSIAN

MOBILE MARKET

The Russian mobile market overview

Million subscribers

APPM

1/100 USD

Source: Company data, AC&M Consulting

RUB

Tele2

Vimpelcom MegaFon MTS

9% 10% 8%

7

-3%-1% -2% -2% -2%

86% 88% 89% 85% 87%

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

7%

7%8%

7%7%

8%

9%8%

7%8% 9%

5%

7%

9%

11%

13%

15%

17%

19%

Quarterly Churn

Customer statistics

• Tele2’s churn level is the lowest in the industry,

showing normal seasonality development

• Tele2’s own call centers show the highest

customer satisfaction in Russia combined with

decreasing costs per contact

CUSTOMER SERVICE SATISFACTION

OVERALL

Top-3 on 10 point scale

Bottom-3 on 10 point scale

Source: Company data, AC&M Consulting Tele2

Vimpelcom MegaFon MTS

8

0% 20% 40% 60% 80% 100% 120%

MTS

Megafon

Beeline

Tele2

0%

20%

40%

60%

80%

100%

120%

2009 2010 2011 2012

0%

20%

40%

60%

80%

100%

120%

2009 2010 2011 2012

Cost efficiency Tele2 Russia

CUSTOMERS per EMPLOYEE

Continued focus on

cost efficiency

SALES and MARKETING COSTS / REVENUE

ADMINISTRATIVE COSTS / REVENUE

Base level 2009

Base level 2009

-15%

-36%

9

92% 91% 92% 92% 91%

8% 9%8% 8% 9%

0

1,000

2,000

3,000

4,000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Q4 Revenue Source Development

Voice and data demonstrate 8% and 15% YoY growth

respectively

VOICE & OTHER and DATA REVENUE SPLIT DEVELOPMENT

Data access Voice & other

SEK millions

Source: Company data

10

Regulatory update: significant developments

Technology neutrality The mobile operators shall jointly conduct LTE trials on 1,800 MHz, with trial report to be

submitted by June1, 2013. A decision is pending before end of 2013.

On Dec. 28, 2012 the Prime Minister approved a roadmap for "Development of Competition and

Improvement of Antimonopoly Policy” listing a number of issues impeding the development of the

telecom market. Lack of TN is regarded as the main obstacle to the development of competition

in the Russian telecom market, concluding that it is necessary to introduce TN by the end of 2013

* GKRCh – State Commission on Radio Frequencies

MNP

MNP launch is due on Dec. 1, 2013. Customer fee for porting shall not exceed 100 Rub. Details of

MNP implementation such as regional or national porting, MNP database set-up, charges incurred

for porting subs and MNP database administration etc. shall be defined by the Regulator by Q2,

2013

New GSM licenses

GKRCH approved distribution of 9 regional GSM licenses (1800 MHz band) via auctions.

Roscomnadzor is expected to work out the auctions terms and conditions as well as timing during

Q1 2013

11

Tele2 Russia forward looking statement

The following assumptions should

be taken into account when

estimating the operational

performance of the Russian mobile

operations in 2013:

• Tele2 expects total revenue of between

SEK 13,700 - 13,800 million.

• Tele2 expects EBITDA of between SEK

4,800 - 4,900 million.

12

Market Area Nordic: Overview

Population

14.4 million

Tele2 Sweden and Tele2 Norway

Home market and test bed for new services


Sweden 29%; Norway 11%

Focus

Sweden: Build on mobile growth and 4G roll-out coupled with household / corporate

fiber strategy

Norway: Roll out own network and focus on bucket-price subscriptions

13

Q4 Highlights Tele2 Sweden

• Net sales amounted to SEK 3,229 million and

EBITDA amounted to SEK 859 million

• Mobile service revenue growth of 5% YoY

• Mobile EBITDA margin of 29%, affected by high

expansion costs such as handset subsidies and

higher than expected intake for Comviq postpaid

Mobile Fixed telephony Fixed broadband Other Customer base (left)

Customer net

intake (right) EBITDA

margin (right)

YoY net sales

growth (right)

SEK Million SEK Million Thousands of customers

EBITDA and

EBITDA MARGIN

NET SALES and


MOBILE CUSTOMER BASE and

CUSTOMER INTAKE

-80

-40

0

40

80

3,000

3,250

3,500

3,750

4,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-4%

-2%

0%

2%

4%

0

1,000

2,000

3,000

4,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%

10%

20%

30%

40%

0

250

500

750

1,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

14

0%

1%

2%

3%

4%

5%

6%

Q1 2012 Q2 2012 Q3 2012 Q4 2012

Strong underlying revenue growth despite

continued prepaid decline

UNDERLYING MOBILE REVENUE GROWTH

* Underlying revenue excludes handsets and operator revenue

15

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Postpaid Prepaid

0%

10%

20%

30%

40%

50%

60%

2H 2010 1H 2011 2H 2011 1H 2012

Market average Tele2 Sweden

Postpaid growth key to mitigate our strong position

in a declining prepaid market

TELE2 SWEDEN MOBILE CUSTOMER STOCK

TELE2 SWEDEN CUSTOMER CHURN PATTERN

Thousands

• External churn down

20% during Q3 and Q4

• Cannibalization between

brands on postpaid

offerings lower than

expected

PREPAID SHARE OF CUSTOMER STOCK

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212

Smartphone market development

Regular handset Smartphone

Note: Postpaid residential, quantity of handsets

SMARTPHONE INSTALLED BASE SALES of TOP TEN MOBILE PHONES

TELE2 SWEDEN (Q4 2012)

17

Change in strategy already commenced

18

New distribution concept and prepaid

product under Comviq brand

19

3G 4G

Jun-11 Jun-12 Jan-12 Dec-12

MB

4G main source of data growth in Sweden

3G and 4G DATA USAGE

DEVELOPMENT

4G NETWORK ROLL-OUT

99% population coverage

end of Q1

20

Continued pursuit of growth in line with new

strategy

Bucket price plans to handle voice to data

transition

Launching platform for upsale of data

Augmenting Billing system and data warehouse,

leading to a better understanding of our customers

Continued roll-out of 4G network along with 4G

handset push

VoLTE implementation to improve network efficiency

and voice quality

Continued roll-out of Comviq distribution concept

together with Reitan

Continued roll-out of Tele2 stores

Increased focus on B2B

21

Tele2 Sweden forward looking statement




performance of the Swedish mobile

operations in 2013:


SEK 10,100 - 10,300 million.


2,900 - 3,100 million.

22

Q4 Highlights Tele2 Norway

• Strong focus on network roll-out

• Satisfactory net intake of 15,000 mobile customers

• Tele2 Norway reported total external revenue of SEK 1,222

million, of which SEK 1,153 million was mobile revenue

• Mobile EBITDA negative, affected by high sales and marketing

costs as well as handset subsidies


Customer net


margin (right)

YoY net sales

growth (right)


EBITDA and

EBITDA MARGIN

NET SALES and


CUSTOMER BASE and

CUSTOMER INTAKE

-10%

-5%

0%

5%

10%

15%

-100

-50

0

50

100

150

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-30

-15

0

15

30

0

400

800

1,200

1,600

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

0

400

800

1,200

1,600

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

23

Tele2 Norway forward looking statement




performance of the Norwegian

mobile operations in 2013:


SEK 4,200 - 4,300 million.


70 - 80 million.

• Tele2 expects capex of between SEK

900 -1,000 million.

24

Market Area Western Europe:

Overview

Focus

Netherlands Build a full service MNO, while growing existing business

Austria B2B & continuous integration of Silver Server

Germany Grow Fixed Via Mobile product

Population

108 million

Leading the group in business to business services

and consumer fixed broadband


Netherlands 12%; Germany 2%; Austria 3%

25

Q4 Highlights Tele2 Netherlands


• Successfully secured mobile licenses. Roll out of 4G

network will make Tele2 the fourth mobile operator

• Mobile intake continues at previous quarter levels,

significant part in the high value mobile postpaid

segment

• EBITDA affected by high mobile acquisition costs


Customer net


margin (right)

YoY net sales

growth (right)

EBITDA and

EBITDA MARGIN

NET SALES and


CUSTOMER BASE and

CUSTOMER INTAKE

-10%

0%

10%

20%

30%

40%

-200

0

200

400

600

800

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-40

-20

0

20

40

0

300

600

900

1,200

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-15%

-10%

-5%

0%

5%

10%

0

400

800

1,200

1,600

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

26

Dutch regulatory requirements

• All frequencies are technology neutral

• License duration: 17 years, valid until 2030 in sync with 2,600 MHz

licenses

• 11,000 existing sites, of which an increasing number are independent

due to MNO’s selling off sites

• MNOs have an obligation to share sites in towers, and to cooperate on

roof top sites

27

= Tele2’s current Fiber optic Network

MNO building blocks

• Tele2 is well positioned

• Many building blocks are already

available

• Most importantly our own fiber optic

nation wide network

28

Dutch 4G launch

2x 10 MHz 800MHz band licenses activated on January 1st 2013

We will start rolling out our own out 4G Network in 2013

Ambition to launch as soon as possible with 4G propositions

4G technique will offer new experience to Dutch consumers

Tele2 Netherlands has a growing mobile customer base (MVNO)

29




performance of the Dutch mobile

operations in 2013:


SEK 1,600 – 1,700 million.


-50 to -75 million.

• Tele2 expects capex of between SEK

2,000 – 2,500 million, whereof licences

for 4G/LTE SEK 1,400 million.

• The mobile operations should reach

EBITDA break-even 3 years after

commercial launch of 4G/LTE services.

Tele2 Netherlands forward looking statement

30

Q4 Highlights Tele2 Germany

and Tele2 Austria

TELE2 GERMANY

EBITDA and EBITDA MARGIN

TELE2 AUSTRIA

EBITDA and EBITDA MARGIN

EBITDA

margin (right)

EBITDA (left) EBITDA

margin (right)

EBITDA (left)

SEK Million SEK Million

• Tele2 Germany: Fixed via Mobile (FVM) partly

compensates the decline in fixed, EBITDA margin

affected by high acquisition costs on FVM

• Tele2 Austria: Focus on growing the B2B segment

resulted in an increased net intake

0%

10%

20%

30%

40%

0

30

60

90

120

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

0%

10%

20%

30%

40%

0

30

60

90

120

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

31

Focus

Continued rapid market share growth in Kazakhstan

Efficiency improvements in Baltics

Improvements in market share growth in Croatia

Market Area Central Europe and Eurasia:

Overview

Population

28 million

Represents 13% of total net sales in Q4

2012

Estonia 2%; Latvia 2%; Lithuania 3%;

Croatia 3%; Kazakhstan 3%

32

• Commercial launch of 4G in November

• Modernization of network currently ongoing

• Focus on efficiency improvements, EBITDA affected by

price war in the postpaid segment

Q4 Highlights Tele2 Estonia

MOBILE CUSTOMER BASE

and CUSTOMER INTAKE

Thousands of customers

Mobile customer base (left)

Customer net

intake (right)

SEK Million

NET SALES and


YoY net sales

growth (right)

Net sales (left)

EBITDA and

EBITDA MARGIN

EBITDA

margin (right)

EBITDA (left)

SEK Million

-15

-8

0

8

15

0

150

300

450

600

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

0%

3%

6%

9%

12%

0

75

150

225

300

Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%

10%

20%

30%

40%

0

20

40

60

80

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

33

Q4 Highlights Tele2 Latvia

• Tele2 Latvia maintains high efficiency in a competitive market

• EBITDA margin amounted to 32%

• Rolling out 4G when commercially attractive

CUSTOMER BASE and

CUSTOMER INTAKE


Customer base (left)

Customer net

intake (right)

SEK Million

NET SALES and


YoY net sales

growth (right)

Net sales (left)

EBITDA and

EBITDA MARGIN

SEK Million

EBITDA

margin (right)

EBITDA (left)

-40

-20

0

20

40

0

300

600

900

1,200

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-10%

-5%

0%

5%

10%

0

100

200

300

400

Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%

10%

20%

30%

40%

0

30

60

90

120

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

34

Q4 Highlights Tele2 Lithuania

• EBITDA margin amounted to 29%, affected by high sales

and marketing costs in the quarter due to strong

competition on handset pricing leading to increased

subsidies

MOBILE CUSTOMER BASE

and CUSTOMER INTAKE


Mobile customer base (left)

Customer net

intake (right)

SEK Million

NET SALES and


YoY net sales

growth (right)

Net sales (left)

EBITDA and

EBITDA MARGIN

SEK Million

EBITDA

margin (right)

EBITDA (left)

-5

10

25

40

55

0

500

1,000

1,500

2,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-15%

-10%

-5%

0%

5%

0

100

200

300

400

Q4 11 Q1 12 Q2 12 Q3 12 Q4 1210%

20%

30%

40%

50%

0

40

80

120

160

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

35

Q4 Highlights Tele2 Croatia

• Strong sales growth of 13% YoY

• Continuing to improve market position

• Cash flow positive in Q4 and full year

CUSTOMER BASE and

CUSTOMER INTAKE



Customer net

intake (right)

SEK Million

NET SALES and


YoY net sales

growth (right)

Net sales (left)

EBITDA and

EBITDA MARGIN

SEK Million

EBITDA

margin (right)

EBITDA (left)

-150

-90

-30

30

90

0

250

500

750

1,000

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-10%

-3%

5%

13%

20%

0

125

250

375

500

Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%

3%

6%

9%

12%

0

15

30

45

60

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

36

Q4 Highlights Tele2 Kazakhstan

• Continuing strong net intake of 361,000 customers

• Total number of customers amounted to 3.4 million

• Continuing rapid roll-out of new base stations for increased

coverage

CUSTOMER BASE and

CUSTOMER INTAKE Thousands of customers


Customer net

intake (right)

SEK Million

NET SALES and


YoY net sales

growth (right)

Net sales (left)

EBITDA and

EBITDA MARGIN SEK Million

EBITDA

margin (right)

EBITDA (left)

0

200

400

600

800

1,000

0

750

1,500

2,250

3,000

3,750

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

0%

125%

250%

375%

500%

0

75

150

225

300

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

-100%

-75%

-50%

-25%

0%

-160

-80

0

80

160

Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

37

0%

20%

40%

60%

80%

100%

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

-400,000

0

400,000

800,000

1,200,000

1,600,000

2,000,000

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Overview of the Kazakh mobile market

MOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONS Thousands of subscribers

12.1%

Dalacom/Pathword

Tele2 Kcell/Activ

Beeline Dalacom/Pathword

Tele2 Kcell/Activ

Beeline

5.5%

*

* Q4 12 only Tele2 net additions

38

Tele2 Kazakhstan forward-looking statement

The following assumptions should be

taken into account when estimating the

operational performance of the Kazakh

mobile operations in 2013:

• Tele2 expects total revenue of between SEK

1,700 - 1,800 million.

• Tele2 expects EBITDA of between SEK -100

to -200 million.

• Tele2 expects capex of between SEK 550 –

650 million.

• Tele2 expects to reach a long-term mobile

customer market share of 30 percent.

39

Agenda

• About Q4 2012



40

Group result Q4

• Net sales include equipment

sales of SEK 909 million

(728) +25%

• EBITDA margin development

explained by higher

expansion costs

SEK million Q4 2012 Q4 2011 ▲%

Net sales 11,275 10,852 3.9%

EBITDA 2,672 2,873 -7.0%

EBITDA margin (%) 23.7% 26.5% -2.8%

Depreciation & associated companies -1,145 -1,184 -3.3%

Depreciation of net sales (%) -10.1% -10.9% 0.8%

One-off items -3 -26

EBIT 1,524 1,663 -8.4%

Normalized EBIT 1,527 1,689 -9.6%

Normalized EBIT margin (%) 13.5% 15.6% -2.0%

Financial items -360 -83

Taxes -599 -270

Net profit from continuing operations 565 1,310 -56.9%

Discontinued operations - -

Net profit 565 1,310 -56.9%

41

Group result full-year

• Net sales include equipment

sales of SEK 2,875 million

(2,272) +27%

SEK million FY 2012 FY 2011 ▲%

Net sales 43,726 41,001 6.6%

EBITDA 10,960 11,212 -2.2%

EBITDA margin (%) 25.1% 27.3% -2.3%

Depreciation & associated companies -4,749 -4,158 14.2%

Depreciation of net sales (%) -10.8% -10.1% -0.7%

One-off items -558 -4

EBIT 5,653 7,050 -19.8%

Normalized EBIT 6,211 7,054 -12.0%

Normalized EBIT margin (%) 14.2% 17.2% -3.0%

Financial items -1,078 -674

Taxes -1,311 -1,625

Net profit from continuing operations 3,264 4,751 -31.3%

Discontinued operations - -7

Net profit 3,264 4,744 -31.2%

42

Currency movements full-year

EUR/EUR pegged and RUB currencies represent

57% of external sales and 73% of EBITDA

-8%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

EUR RUB NOK KZT

Average FY 2012 vs. average FY 2011 Fixing rate Dec 31, 2012 vs Dec 31, 2011

43

Depreciation

Change year-on-year for Q4

• Acquisition of Network Norway:

SEK 49 million

• Upgrade/replacement of networks in

the Baltics: SEK 52 million

• Reduction in Sweden: SEK -79 million

• Growth in Russia: SEK 41 million

Depreciation and

Depreciation as a percentage of net sales

SEK million

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

0

200

400

600

800

1,000

1,200

1,400

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Depreciation Depreciation of net sales (%)

44

Financial items SEK million

Financial items in income statement Q4 2012 Q4 2011 FY 2012 FY 2011

Interest income/costs -247 -175 -957 -483

Exchange rate differences, external 5 29 -14 -24

Exchange rate differences, intragroup -76 105 59 13

Other financial items -42 -42 -166 -180

Total -360 -83 -1,078 -674

Financial items in cash flow statement Q4 2012 Q4 2011 FY 2012 FY 2011

Interest paid -280 -216 -668 -366

45

• Net taxes were negatively affected by SEK -127 million due to decreased tax rate in Sweden

from January 1, 2013

• Cash flow taxes 2013 expected to be SEK -1,000 million

Taxes SEK million

Taxes in income statement Q4 2012 Q4 2011 FY 2012 FY 2011

Normal -500 -378 -1,474 -1,733

One-off -99 108 163 108

Total -599 -270 -1,311 -1,625

Taxes in cash flow statement Q4 2012 Q4 2011 FY 2012 FY 2011

Normal -497 -163 -989 -948

One-off - - - -

Total -497 -163 -989 -948

46

Taxes Closing balances SEK million

3,296

2,977

4,263

-851-1,114

-933

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

2010 2011 2012

Deferred Tax Assets Deferred Tax Liabilities

47

Cash flow

• Full-year 2012 CAPEX according to balance sheet SEK 5,336 million (6,105)

• CAPEX for 2013 expected to reach SEK 6,000 million (incl. Dutch LTE license)

SEK million Q4 2012 Q4 2011 FY 2012 FY 2011

OPERATING ACTIVITIES

Cash flow from operations, excl. taxes and interest 2,579 2,859 10,744 11,261

Interest paid -280 -216 -668 -366

Taxes paid -497 -163 -989 -948

Change in working capital 13 -52 -408 -257

Cash flow from operating activities 1,815 2,428 8,679 9,690

INVESTING ACTIVITIES

CAPEX -1,286 -1,753 -4,609 -5,572

Cash flow after CAPEX 529 675 4,070 4,118

Shares and other financial assets -15 -1,560 -215 -1,563

Cash flow after investing activities 514 -885 3,855 2,555

48

Pro forma financial debt profile Sources of funding SEK billion

12.8

12.1

16.9

15.214.9

-2.5

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Revolving Credit Facility Russian bond Commercial paper

Swedish bond Norwegian bond Other financing

Put option Kazakhstan Cash Pro forma net debt

49

Debt maturity profile Gross debt SEK 16.6 billion (incl. unutilized SEK 27.3 billion)

Debt currency profile Gross debt SEK 16.6 billion

Debt maturity and currency profile

3.8

2.12.9 3.1

4.2

0.5

0

2

4

6

8

10

12

14

16

2013 2014 2015 2016 2017 2018<

Bonds Commercial papersOther bank loans Put option, fin.lease and otherUnutilized

4.6

5.7

2.2

2.5

1.50.1

SEK incl. FX swap RUB

EUR incl. FX swap NOK

KZT USD

50

* Fixing rate 31 Dec, 2012

Tele2 in Debt Capital Markets

Instrument Date of issue Maturity date Volume in MSEK*

RUB Bond 5yr 2011-06-24 2016-06-24 13,000 MRUB 2,791

RUB Bond 3yr 2012-04-13 2015-04-18 6,000 MRUB 1,288

RUB Bond 2yr 2012-02-09 2014-02-14 7,000 MRUB 1,503

NOK Bond 5yr 2012-02-20 2017-02-24 1,000 MNOK 1,167

NOK Bond 3yr 2012-02-20 2015-02-24 300 MNOK 350

SEK Bond 2012-05-08 2017-05-17 1,500 MSEK 1,500

SEK Bond 2012-05-08 2017-05-15 800 MSEK 800

SEK PP Bond 2012-09-27 2014-03-27 500 MSEK 500

SEK PP Bond 2012-12-06 2015-03-06 750 MSEK 750

SEK PP Bond 2013-01-03 3 months rolling 500 MSEK 500

SEK CP on-going within 1yr 2,390 MSEK 2,390

Total 13,540

51

Debt position and ratio

Pro forma net debt / EBITDA 12 m rollingSEK billion / Ratio

12.812.1

16.915.2 14.9

2.92.9

3.22.9 2.9

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Pro forma net debt Ordinary dividend, proposed/paid

Extraordinary dividend, proposed/paid Leverage net (net debt to EBITDA, pro forma)

52

Debt position and ratio incl. NL LTE

Pro forma net debt / EBITDA 12 m rollingSEK billion / Ratio

12.8 12.1

16.915.2 14.9

2.92.9

2.92.9

3.2

1.4

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Pro forma net debt Ordinary dividend (paid May 2012)

Extraordinary dividend (paid May 2012) Proposed ordinary dividend (to be paid May 2013)

NL LTE license (paid January 2013) Leverage net

Leverage gross (1.78)

53

Group financials Group EBITDA and

Group EBITDA margin SEK million

Group CAPEX (BS) and CAPEX/Sales SEK million

Group Net Sales SEK million

ROCE (Normalized) Percent

Group EBITDA margin

CAPEX/Sales

● Mobile

● Fixed telephony

● Fixed broadband

● Other operations

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

0

3,000

6,000

9,000

12,000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

0.0%

7.5%

15.0%

22.5%

30.0%

0

500

1,000

1,500

2,000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

19%

16% 16%

21%

17%

0%

5%

10%

15%

20%

25%

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

54

Sweden – Mobile External revenue excl. equipment sales and

Equipment sales SEK million

EBITDA SEK million

Expansion costs SEK million

Change year-on-year for Q4

• Year-on-year revenue growth excl.

equipment sales of 6%

• Year-on-year expansion costs increased by

SEK 122 million (33%)

0

500

1,000

1,500

2,000

2,500

3,000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

-600

-500

-400

-300

-200

-100

0

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

0

200

400

600

800

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

55

Agenda

• About Q4 2012



56

Concluding remarks

Continue to grow as an operator

Manage the shift from voice to data

Continue to migrate from prepaid to

postpaid

Invest in new growth initiatives

57

Q&A

tele2 fourth quarter 2012

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