2009-09-171 Henrik Ringmar

WESTERN EUROPE

MARKET AREA

WESTERN EUROPE

Henrik Ringmar

Market Area Director

2009-09-173 Henrik Ringmar

INTRODUCTION

Market Area Western Europe � Represents 32 percent of total revenues Q2 2009

� More than SEK 1 000 million in operational cash flow 1H 2009

� Gold standard for Tele2 Group in Business to Business services and consumer fixed broadband

Short- to medium-term focus & activities:� Netherlands Develop for the future

� Austria Further restructuring

� Germany Cash focus

� France New direction

2009-09-174 Henrik Ringmar

OPERATIONAL PERFORMANCE

FranceNetherlands Germany

� Benefiting from operational excellence

� Aiming to increase market share in B2B segment

0

400

800

1 200

1 600

2 000

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2

REVENUE

Austria

-160

-80

0

80

160

240

320

400

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2

EBITDA - CAPEX

-160

-80

0

80

160

240

320

400

480

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2

EBITDA

SEK million

SEK million

SEK million

THE NETHERLANDSDevelop for the future

2009-09-176 Henrik Ringmar

� Merged Tele2 and Versatel

� Secured broadband development

� Strengthened B2B department

ISSUES WE HAVE TACKLED

+

=

2009-09-177 Henrik Ringmar

OUR STRENGTHS� “On net” strategy on own

fixed network

� All segments served with full product portfolio

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PROVIDING THE BEST DEAL� Combining Price Leadership with proven Quality

– Results in higher sales, lower acquisition costs and lower churn

2009-09-179 Henrik Ringmar

CUSTOMER LIFE TIME VALUE

Fixed: milk & defendFixed: milk & defend

192 202 203 197 193

573 414 322 271 240 208 180 166 146

550

500466

432410

384362

195

130

627

323341

3330

32

3634 34

30 3129 28

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09

Fixed

WLR

Rev

BB: Increase Value & Lock-in1P � 2P � 3P � 3P+ � mobilised

BB: Increase Value & Lock-in1P � 2P � 3P � 3P+ � mobilised

168183

202226 237 247 259

279308

8683

79

7775

7271

7070

254266

282

303312

319330

349

295

70

378364

23 2326

2932 34 32

3539 39

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09

1P

2/3P

Rev

2009-09-1710 Henrik Ringmar

IMPROVED PRODUCT

OFFERINGSVDSL2 IntroductionVDSL2 Introduction Mobile Internet ServicesMobile Internet Services

2009-09-1711 Henrik Ringmar

BEST IN CLASS PROVIDER IN

THE CORPORATE SEGMENT

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STRONG POSITION B2B &

WHOLESALE

AUSTRIAFurther restructuring

2009-09-1714 Henrik Ringmar

TELE2 AUSTRIAEBITDA

-80

0

80

160

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2

SEK million

EBITDA - CAPEX

-160

-80

0

80

160

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2

SEK million

2009-09-1715 Henrik Ringmar

Q&A

2009-09-1716 Henrik Ringmar

SUMMARY

� Successful restructuring delivered

� Aim for increasing market share

in the B2B segment

� Selectively develop product portfolio with new services that

fulfill customer demands