Slide 1: First Quarter 2019
FIRST UARTER & S 019... e@ @e°@8@ a _— April 24, 2019 * Tele2 AB i \
Slide 2: Group highlights — Q1 2019
Group highlights — Q1 2019 9 SEK billion Q1 2019 2 change Comments organic * Organic growth of end-user service Revenue 7.2 -1% revenue of 0%, including — Mobile EUSR +3% — Fixed EUSR -3% End-user ° service revenue 0% Underlying EBITDA ex. IFRS 16 +8% Capex ex. spectrum and leases = ee 2 Organic is
Slide 3: Tele2 is becoming a true integrated challenger
Tele2 is becoming a true integrated challenger Drive FMC in * Launch of Com Hem mobile in February Site :40) +» Increasing penetration of FMC bundle benefits * Continued customer growth * Setting up B2B management and sales incentive structure to align with strategy * Continued restructuring to focu
Slide 4: Growth and cost initiatives drive cash flow
Growth and cost initiatives drive cash flow 1) Low-single digit end-user service revenue growth — SEK 450m of revenue synergies Expected to be flat in 2019, which is a transition year, and low-single digit growth in the mid- term driven by strategy initiatives 2.) Mid-single digit growth in underlyi
Slide 5: Sweden
Sweden TELE2
Slide 6: Sweden Consumer — Operational highlights
Sweden Consumer — Operational highlights RGUs & net adds — core and legacy services ASPU year-on-year growth (thousands, pro forma) (%, pro forma) 5% 3% 1 1% 13% -1% —_— 52.0% -3% -5% Ql '18 Q2'18 Q3 18 Q4'18 Qu'19 Qu 18 Q218 Q3 18 Q4'18 Qt '19 Core: [Ml MobilePostpaid MFixed Broadband WM Digital TV
Slide 7: Sweden Consumer segment — Financials
Sweden Consumer segment — Financials End-user service revenue Underlying EBITDA ex. IFRS16 and margin (SEK million, pro forma, year-on-year growth %) (SEK million, pro forma) +6% +4% +6% i +6% 472. 1,389 1,438 1,507 1,430 1,469 36% 35% Q1'18 Q2 18 Q3 18 Q4'18 Qi ‘19 Q1'18 Q2'18 Q3 18 Q4'18 Qi ‘19 Co
Slide 8: Sweden Business — Operational highlights
Sweden Business — Operational highlights Mobile RGUs Mobile ASPU End-user service revenue (thousands, pro forma) (SEK, pro forma) (SEK million, pro forma, year-on-year growth %) 885-868 881 889-896 188 184 180 183 177 am 5 r 325 NN 309 Fe “14% Ql18 = =Q218 Q318 Q418 Qi'19 Q1'18 Q2'18 Q3'18 Q418 Qi'1
Slide 9: Sweden Business segment — Financials
Sweden Business segment — Financials Revenue (SEK million, pro forma) [ v 136 1,058} 1,048 1,025} 1,063} 1,034} Q1'18 Q2'18 Q3 18 Q4'18 Q1‘'19 = End-user = Equipment = Wholesale Operator Qt highlights Underlying EBITDA ex. IFRS16 and margin (SEK million, pro forma) 439 19% 19% Q1'18 Q2'18 Q3 18 Q4'1
Slide 10: Sweden overview
Sweden overview Underlying EBITDA ex. IFRS 16 and margin Total end-user service revenue (SEK million, pro forma) (SEK million, pro forma) i Y i mato Y 4,249 4,269 4,249 4273 ago 1,946 1,761 1,732 1,775 1,843 5 ” 36% ; Qi ‘18 Q2'18 = Q3'18 = Q4'18 Qi ‘19 Q1'18 Q2'18 =Q3'18 = Q4'18 Qi ‘19 Qt highlight
Slide 11: International
International
Slide 12: Baltics — Operational highlights
Baltics — Operational highlights Mobile RGUs ASPU development Brand campaign 3a, -& Qi ‘18 Qi ‘19 Qi ‘18 Qi ‘19 Q1 highlights — ASPU growth in all three markets led by Lithuania — RGU growth, despite challenges in Estonia, as consumer small-screen and mobile broadband more than offset prepaid declin
Slide 13: Baltics — Financials
Baltics — Financials Underlying EBITDA ex. IFRS 16 and margin Underlying EBITDAaL - Capex* and cash Mobile end-user service revenue conversion, rolling 12m (SEK million) (SEK million) (SEK million) [ +7% 7 [ 7 1,166 1,118 ’ 402 1,048 14,079 , 585 639 650 654 655 366 374 386 1,008 Qi18 Q2'18 Q318 Q41
Slide 14: Kazakhstan (discontinued) — Financials
Kazakhstan (discontinued) — Financials Mobile end-user service revenue Underlying EBITDA ex. IFRS 16 and margin Underlying EBITDAal - Capex* and cash (SEK million) (SEK million) conversion, rolling 12m (SEK million) + 7 314 312 613 628 650 632 534 34% Fe Q1'18 Q2'18 Q3'18 Q4'18 Qi‘19 Qi ‘18 Q2'18 =Q
Slide 15: Financial Overview
Financial Overview TELE2
Slide 16: Accounting changes
Accounting changes increased scope of Items affecting Revenue comparability to Underlying EBITDA Underlying EBITDA make Underlying EBITDA cleaner +/- Items affecting comparability ~ Lease costs as booked before IFRS 16 - Depreciation & Amortization of which RoU asset depreciation Sy Underlying EBITD
Slide 17: Group results Q1 2019
Group results Q1 2019 SEK million @ Q12019 Q12018 Revenue 7,217 5,425 Underlying EBITDA 2,659 1,460 Margin (%) 32% 27% Items affecting comparability (2) -262 -65 D&A © —-1,303 -809 JVs and associated companies (4) 10 14 Operating profit 1,104 900 Interest income/expenses -109 -69 Other financial ite
Slide 18: Group cash flow Q1 2019
Group cash flow Q1 2019 SEK million @ Q12019 Q12018 Underlying EBITDA, continuing op. 2,659 1,460 Items affecting comp., continuing op. @ -262 -65 EBITDA continuing operations 2,397 1,398 EBITDA discontinued operations 434 190 Amortization of lease liabilities (3] -382 - Capex paid (4) -1,671 -840 C
Slide 19: Synergy update
Synergy update Cost synergies (SEK million) . Important first steps taken towards target of SEK 450m in 5 years, Revenue synergies including Com Hem mobile launch and FMC benefits Drivers — Cost synergies driven by reductions in FTEs and consultants — Integration costs of SEK 155m incurred in the qu
Slide 20: Financial guidance - unchanged
Financial guidance - unchanged Mid-term ambition 2019 20 End-user service revenue Ramp-up of initiatives in 2019 in a low-growth environment FMC cross-sell and monetization of customer satisfaction to drive growth in mid-term Underlying EBITDAaL Growth in 2019 mainly driven by cost reductions Growth
Slide 21: Leverage at 2.6x
Leverage at 2.6x Economic net debt to underlying EBITDAaL Leverage Eg | 2.8% | | 2.6x | + Economic net debt to underlying EBITDAaL at 2.6x end March, down 65 10 from 2.8x at end of 2018 due to cash la "2.8 flow generation and proceeds from sale of Dutch business Net + Expect to stay within leverage
Slide 22: To conclude...
To conclude... TELE2
Slide 23: Key priorities moving forward
Key priorities moving forward Py a Reignite EuS Revenue growth in Sweden * B2C: Com Hem Mobile and FMC penetration in the customer base * B2B: High margin OnNet growth Structural cost savings * Cost synergies of SEK 900m within 3 years * Investigate further initiatives Build on the momentum in the B
Slide 24: Thank you!
THANK YOU!