Slide 1: Second Quarter 2018
SECOND UARTER 018 July 18, 2018 Tele2 AB TELE
Slide 2: Group highlights — Q2 2018
Group highlights — Q2 2018 % change % change reported LFL SEK billion Q2 2018 Revenue Mobile end-user service revenue Operating cash 0 flow, rolling 12m 20% LFL is constant currencies 2 Operating cash flow = adjusted EBITDA - CAPEX Comments * RLAH adjusted EBITDA impact for the Group of SEK -55m in
Slide 3: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger Investment Markets Positively (6) Fearless Brands Transaction Update Resilient Swedish B2C and B2B despite headwinds Baltics MEUSR up 7% and adjusted EBITDA up 10% LFL Rolling 12m operating cash flow up 5% to SEK 4.5bn Kazakhstan MEUSR growt
Slide 4: Baltic Sea Challenger
Baltic Sea Challenger TELE2
Slide 5: Sweden — Financials
Sweden — Financials Mobile end-user service revenue Adjusted EBITDA and margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) | 7. 7 3923 3,429 3609 3,459 3,441 1,936 1938 1932 1911 1,925 1043 HS 1054 1,066 = 1,042 ” Q2'17 Q3'17 Q417 « QU18 §=Q2'18 Q2'17 Q8'17) «Q4'17
Slide 6: Sweden B2C — Resilient in a vibrant market
Sweden B2C — Resilient in a vibrant market Mobile end-user service revenue Postpaid ASPU* Campaigns growth Q2 highlights — MEUSR growth of 1% excluding the impact of RLAH, driven by both Comvig postpaid and Tele2 small screen — Continued postpaid ASPU growth especially within Tele2 — Comviq NPS reac
Slide 7: Sweden B2B — Continued recovery
Sweden B2B — Continued recovery Revenue Service revenue Customer successes in the quarter jt Uppsala gore borgs (8) kommun C Epiroc GETINGE ed Riksidrottstérbundet Q2'17 Q2 ‘18 Q2'17 Q2 ‘18 Q2 highlights — Stable revenues despite continued price competition in the large enterprise segment, supported
Slide 8: Baltics — Financials
Baltics — Financials Mobile end-user service revenue Adjusted EBITDA and margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) | Z : ' 639 sel 879 «=«« 886885 | Q2'17) Q3'17) = Q4'17) Q1'18 = Q2.18 Q2'17) Q3'17) = Q4'17,) 118 Q2'18 Q2'17,) Q3'17) —Q4'17,s Q1'18 —Qa'18
Slide 9: Baltics — Excellent growth
Baltics — Excellent growth ASPU development 4G smartphone penetration Brand campaigns 2 TELE2 © GUDRA MAJA gy Q2'17 Q2 ‘18 Q2'17 Q2 ‘18 Q2 highlights ASPU growth continues from monetization of increased data consumption and from prepaid to postpaid migration — Rising smartphone penetration drives da
Slide 10: Investment Markets
Investment Markets TELE2
Slide 11: Kazakhstan — Financials
Kazakhstan — Financials Mobile end-user service revenue Adjusted EBITDA and margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) v [ Vv 493 613 264 548 508 552 534 34% -_ ) -192 Q2'17 Q8'17 Q4'17 Q118 = Q2'18 Q2'17 Q3'17)-Q4'17,— QU18.—Qa'18 Q2'17 Q8'17 Q4'17 Q118 Qa
Slide 12: Kazakhstan — Continued positive momentum
Kazakhstan — Continued positive momentum ASPU development Customer base Net Promoter Score 26 20 Q2'17 Q218 Q2'17 Q218 Q2'17 Q218 Mm Tele2 MM Altel Q2 highlights — ASPU growth driven by new tariffs supporting monetization of increased data consumption — Strong customer satisfaction drives positive n
Slide 13: Financial Overview
Financial Overview TELE2
Slide 14: Group results Q2 2018
Group results Q2 2018 SEK million Q2 2018 Q2 2017 Revenue 6 6,491 6,152 Adjusted EBITDA (2) 1,789 1,581 Adjusted EBITDA margin (%) 27.6% 25.7% Items affecting comparability (3) -130 -66 D&A -619 -621 JVs and associated companies 0 1 Operating profit 1,040 895 Interest income/expenses -92 -79 Other f
Slide 15: Group cash flow Q2 2018
Group cash flow Q2 2018 SEK million Q2 2018 Q2 2017 Comments Adjusted EBITDA, continuing Discontinued operations reflecting mainly the 1,789 1,581 operations , , Netherlands Adjusted EBITDA, discontinued . a P operations e 61 -30 © Higher tax payments due to YoY timing differences Financial items pa
Slide 16: Operating cash flow
Operating cash flow Rolling 12 months, SEK million Q1'18 Q215 Q315 Q415 Q116 Q216 Q3'16 Q416 QL'17 Q217 Q3'17 Q4'17 QL18 Q2'18 m Baltic Sea Challenger & Rest of Group m Investment Markets = The Netherlands f 16 Netherlands includes intercompany adjustments TELE2
Slide 17: Debt position and financial leverage
Debt position and financial leverage Total operations, Economic net debt to adjusted EBITDA rolling 12 months SEK billion 2.0 | | -0.5 -2.1 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Jun 2017 Freecash Shareholder M&A and . . flow remuneration other mmm Economic net debt Economic net debt to adjust
Slide 18: Financial guidance 2018 — Upgraded
Financial guidance 2018 — Upgraded Mobile end-user Adjusted EBITDA CAPEX service revenue (SEK billion) (SEK billion excluding spectrum) 6871 B22 . . LEQ 18 * Based on continuing operations in constant currencies TE ino
Slide 19: Merger with Com Hem
Merger with Com Hem Transaction update TELE2
Slide 20: Merger process activities
Merger process activities * Completion of PCAOB audit * Announcement by Kinnevik of pro-competitive measures + Submission of merger documents to the SEC and Finansinspektionen Completed activities - Filing with the European Commission Planned in H2 * EGMs following review and approval of merger docu
Slide 21: To conclude...
To conclude... TELE2
Slide 22: Key priorities moving forward
Key priorities moving forward « Fearlessly liberate people to live a more connected life » Growth from continued data monetization " Return Sweden to growth despite headwinds = Further leverage our momentum in Baltics, Croatia and Kazakhstan « Prepare to close mergers in both Netherlands and Sweden
Slide 23: Tele2's Way2Win
Tele2’s Way2Win Our Purpose We fearlessly liberate people to live a more connected life Where We Play How We Win CRORSROR BGRORORS Baltic Sea Investment Cash Positively | Connecting Digital First Winning Challenger Markets Generators Fearless Things our Customer Cost Brands Customers Experience Stru
Slide 24: The Beginning
THE BEGINNING