Slide 1: First Quarter 2018
FIRST UARTER 018 April 23, 2018 Tele2 AB TELE
Slide 2: Group highlights — Q1 2018
Group highlights — Q1 2018 % change % change Reported LFL SEK billion Q1 2018 Comments + Revenue adjustments in Sweden (SEK -46m) and in Croatia (SEK +18m) Net Sales Mobile end-user service revenue + RLAH EBITDA impact for the Group was SEK -80m in Q1 * SEK 3.9bn rolling 12m OCF EBITDA including Net
Slide 3: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger Investment Markets Winning (@) Cost Structure Transaction Update Resilient underlying Swedish MEUSR and EBITDA despite headwinds Baltics mobile end-user service revenue and EBITDA up 8% LFL Rolling 12m operating cash flow up 9% to SEK 4.5bn
Slide 4: Baltic Sea Challenger
Baltic Sea Challenger TELE2
Slide 5: Sweden — Financials
Sweden — Financials Mobile end-user service revenue EBITDA and EBITDA margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) 3% | + 1926 1,935 1,950 1934 1864 Hill Ql'17,)— -Q2'17, QB '17,—_ Q4'17,—s QL'18 Ql'17) -Q2'17, Q3'17,)— 417s Q'18 QL'17)— -Q2'17, 317, Q4'17_—s
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 —— -———, HET! MER SURF, LIKA BILLIGT! Q1'17 Qi ‘18 Q1'17 Q1 highlights Mobile end-user service revenue growth of 3%, after adjusting for RLAH and the write-down of a receivable Both Tele2 and C
Slide 7: Sweden B2B — Starting to recover
Sweden B2B — Starting to recover Net sales Service revenue Customer successes in the quarter GiB SS vIsMA SIEMENS postnord ‘7 Q1'17 Q1'18 Q1'17 Q1'18 Q1 highlights Net sales down due to lower service revenue almost fully offset by strong growth in equipment Service revenue down 5%, after adjusting f
Slide 8: Baltics — Financials
Baltics — Financials Mobile end-user service revenue EBITDA and EBITDA margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) [ +8% 7 [ +8% y 517 561 579 586 585 310 341 323 315 930 962 973 «1,006 Ql17 Q2'17, -Q3 117, Q4117— QL 18 Ql17 Q217,-QB17)— 417 QU18 Ql17 Q2'17
Slide 9: Baltics — Strong growth continues
Baltics — Strong growth continues ASPU development 4G smartphone penetration Brand campaigns a =>, 52% (Cn LAISVAS INTERNETAS GYVENA TEN, KUR IR JOS Q1'17 Qi ‘18 Q1‘17 Qi ‘18 Q1 highlights — ASPU growth continues from successful data monetization and from prepaid to postpaid migration — Increase in
Slide 10: Investment Markets
Investment Markets TELE2
Slide 11: Kazakhstan — Financials
Kazakhstan — Financials Mobile end-user service revenue EBITDA and EBITDA margin OCF and cash conversion, rolling 12m (SEK million) (SEK million) (SEK million) 554 498 547 506 542 Ql'17,)— -Q2'17, QB '17,—_ Q4'17,—s QL'18 Ql'17) -Q2'17, Q3'17,)— 417s Q'18 QL'17)— -Q2'17, 317, Q4'17_—s QL'18 v 326 19
Slide 12: Kazakhstan — Excellent momentum
Kazakhstan — Excellent momentum ASPU development Customer base Net Promoter Score cs, i - Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Mm Tele2 MM Altel Q1 highlights — ASPU growth driven by new price plans on Tele2 and Altel, and speed-differentiated unlimited MBB price plan on Altel — Customer base growth,
Slide 13: Financial Overview
Financial Overview TELE2
Slide 14: Group results Q1 2018
Group results Q1 2018 SEK million Net sales EBITDA EBITDA margin (%) Items affecting comparability D&A JVs and associated companies EBIT Interest income/expenses Other financial items Taxes Net profit, continuing operations Discontinued operations Non-controlling interests Net profit, equity holders
Slide 15: Group cash flow Q1 2018
Group cash flow Q1 2018 EBITDA, continuing operations 1,628 1,523 © Positive effect from FX swaps in Q1 2017 EBITDA, discontinued operations 20 190 . P P p © Including spectrum fee payment in Croatia Financial items paid/received e -88 -8 Taxes paid -145 -106 © Paid CapEx for total operations closer
Slide 16: Operating cash flow
Operating cash flow Rolling 12 months, SEK million 125 -1,809} Q1'15 Q215 Q315 Q415 Q116 Q216 Q3'16 Q416 QL'17 Q217 Q3'17 Q417 Quis 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 EBITDA rolling 12 months SEK billion 2.6 | -0.7 “2.4 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Mar 2017 Freecash Shareholder M&A and Mar 2018 flow remuneration —_ other mmm Economic net debt mam Dividend, announced e===Ec
Slide 18: Financial guidance 2018 — Reiterated
Financial guidance 2018 — Reiterated Mobile end-user EBITDA CAPEX service revenue (SEK billion) (SEK billion excluding spectrum) 65568 21824 . . 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: Updated financial leverage target and shareholder remuneration framework
Updated financial leverage target and shareholder remuneration framework 2.5-3.0x leverage Distribution policy 20 Enlarged Tele2 will seek to operate within a net debt/EBITDA range of between 2.5-3.0x and maintain investment grade credit metrics Enlarged Tele2’s policy will aim to maintain target le
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 and Kazakhstan « Prepare to close mergers in both Netherlands and Sweden " Operati
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