Slide 1: Group highlights - Q1 2018
Group highlights - Q1 2018 SEK billion Q1 2018 % change Reported % change LFL Net Sales 6.2 5% 5% Mobile end-user service revenue 3.3 3% 4% EBITDA 1.6 7% 6% Operating cash flow, rolling 12m 4.6 26% LFL is constant currencies Operating cash flow = EBITDA - CAPEX Comments Revenue Adjustments in Sweden
Slide 2: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger 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 Investment Markets Kazakhstan mobile end-user service revenue gro
Slide 3: Delivering on our long term strategy
Delivering on our long term strategy + Baltics mobile end-user service revenue and EBITDA up 8% LFL © Baltic Sea + Resilient underlying Swedish MEUSR and EBITDA despite headwinds + Rolling 12m operating cash flow up 9% to SEK 4.5bn Challenger + Kazakhstan mobile end-user service revenue growth of 21
Slide 4: Sweden - Financials
Sweden - Financials Mobile end-user service revenue (SEK million) -3% 1,926 1,935 1,950 1,934 1,864 Q1 '17 Q2 '17 Q3 '17 Q4 ' 17 Q1 '18 EBITDA and EBITDA margin (SEK million) -6% 1,088 1,043 1,125 1,079 1,020 28% 27% 30% 26% 26% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 OCF and cash conversion, rolling 12m
Slide 5: Sweden B2C - Resilient in a vibrant market
Sweden B2C--Resilient in a vibrant market Mobile end-user service revenue growth +0% Q1 '17 Q1 '18 Postpaid ASPU* +2% Q1 '17 Q1 '18 Campaigns NYHET! MER SURF, LIKA BILLIGT! UNLIMITED TOGETHER Samla familj och vanner, eller andra du kanner - fla obegransad surf till lagre pris Q1 highlights Mobile en
Slide 6: Sweden B2B - Starting to recover
Sweden B2B--Starting to recover Net sales -1% Q1 '17 Q1 '18 Service revenue -8% Q1 '17 Q1 '18 Customer successes in the quarter SCB VISMA SIEMENS SJ Postnord Q1 highlights Net sales down due to lower service revenue almost fully offset by strong growth in equipment Service revenue down 5%, after adj
Slide 7: Baltics - Financials
Baltics - Financials Mobile end-user service revenue (SEK million) +8% 517 561 579 586 585 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 EBITDA and EBITDA margin (SEK million) +8% 279 310 341 323 315 32% 33% 34% 30% 31% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 OCF and cash conversion, rolling 12m (SEK million) 880 9
Slide 8: Baltics - Strong growth continues
Baltics--Strong growth continues ASPU development +7% Q1 '17 Q1 '18 4G smartphone penetration 39% 52% Q1 '17 Q1 '18 Brand campaigns TELE2 LAISVAS INTERNETAS GYVENA TEN, KUR IR JUS tele2.lt/laisvas TELE2 Q1 highlights ASPU growth continues from successful data monetization and from prepaid to postpai
Slide 9: Baltics - Strong growth continues
Baltics — Strong growth continues ASPU development 4G smartphone penetration Brand campaigns qui Quis Quy Qs Qt highlights — ASPU growth continues from successful data monetization and from prepaid to postpaid migration — Increase in smartphone penetration, data consumption and progress in the B2B s
Slide 10: Kazakhstan - Financials
Kazakhstan - Financials Mobile end-user service revenue (SEK million) +21% 495 547 506 554 542 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 EBITDA and EBITDA margin (SEK million) +90% 122 160 169 198 210 19% 22% 26% 28% 30% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 OCF and cash conversion, rolling 12m (SEK million)
Slide 11: Kazakhstan - Excellent momentum
Kazakhstan--Excellent momentum ASPU development +13% Q1 '17 Q1 '18 Customer base +6% Q1 '17 Q1 '18 Net Promoter Score 27 27 38 33 Q1 '17 Q1 '18 Tele2 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
Slide 12: Kazakhstan - Excellent momentum
Kazakhstan — Excellent momentum ASPU development Customer base Net Promoter Score a7 Quis Qui7 Qs a7 Quis MMM Tele2 MM Altel Qt highlights — ASPU growth driven by new price plans on Tele2 and Altel, and speed-differentiated unlimited MBB price plan on Altel — Customer base growth, in a competitive m
Slide 13: Group results Q1 2018
Group results Q1 2018 SEK million Q1 2018 Q1 2017 Net sales 1 6,221 5,945 EBITDA 2 1,628 1,523 EBITDA margin (%) 26.2% 25.6% Items affecting comparability -70 -105 DandA -620 -636 JVs and associated companies 14 0 EBIT 952 782 Interest income/expenses -69 -73 Other financial items 3 -83 -31 Taxes -2
Slide 14: Group cash flow Q1 2018
Group cash flow Q1 2018 SEK million Q1 2018 Q1 2017 EBITDA, continuing operations 1,628 1,523 EBITDA, discontinued operations 20 190 Financial items paid/received 1 -88 -8 Taxes paid -145 -106 Changes in working capital 2 -440 -469 CapEx paid 3 -840 -847 Other cash adjustments -67 -105 Free cash flo
Slide 15: Operating cash flow
Operating cash flow Rolling 12 months, SEK million 90 125 353 3,377 3,371 3,361 3,468 3,286 3,355 3,394 3,381 3,823 4,067 4,242 4,342 4,217 -296 -397 -481 -612 -609 -512 -437 -316 -187 -104 -906 -1,133 -1,185 -1,389 -1,676 -1,826 -1,809 -1,654 -1,192 -942 -749 -620 -696 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q
Slide 16: Debt position and financial leverage
Debt position and financial leverage Total operations, Economic net debt to EBITDA rolling 12 months SEK billion 10.3 12.0 10.7 9.8 2.0 9.8 1.5 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Economic net debt Dividend, announced Economic net debt to EBITDA 10.3 -2.4 2.6 -0.7 9.8 Mar 2017 Free cash flo
Slide 17: Financial guidance 2018 - Reiterated
Financial guidance 2018 - Reiterated Mobile end-user service revenue Mid-single digit %growth* EBITDA (SEK billion) 6.5 - 6.8 CAPEX (SEK billion excluding spectrum) 2.1 - 2.4 Based on continuing operations in constant currencies TELE2 18
Slide 18: Merger with Com Hem - Transaction update
Merger with Com Hem Transaction update TELE2
Slide 19: Updated financial leverage target and shareholder remuneration framework
Updated financial leverage target and shareholder remuneration framework 2.5 - 3.0x leverage Enlarged Tele2 will seek to operate within a net debt/EBITDA range of between 2.5 - 3.0x and maintain investment grade credit metrics Distribution policy Enlarged Tele2's policy will aim to maintain target l
Slide 20: Updated financial leverage target and shareholder remuneration framework
Updated financial leverage target and shareholder remuneration framework 2.5-3.0x Enlarged Tele2 will seek to operate within a net debt/EBITDA range of leverage between 2.5-3.0x and maintain investment grade credit metrics Enlarged Tele2’s policy will aim to maintain target leverage by distributing
Slide 21: 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 Operational excelle
Slide 22: Tele2's Way2Win
Tele2's Way2Win Our Purpose We fearlessly liberate people to live a more connected life Where We Play Baltic Sea Challenger Investment Markets IoT Cash Generators How We Win Positively Fearless Brands Connecting Things our Customers Love Digital First Customer Experience Winning Cost Structure Respo
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 OGAOO]@OO® Baltic Sea Investment Cash Positively Connecting Digital First Winning Challenger Markets Generators Fearless Things our Customer Cost Brands Customers Experience —_ Structure
Slide 24: Important Information
IMPORTANT INFORMATION The information included in this presentation is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy shares of Tele2 or Com Hem. Tele2 intends to file a registration statement on Form F-4 with the Securities and Exchang
Slide 25: Important Information
IMPORTANT INFORMATION The information included in this presentation is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy shares of Tele2 or Com Hem. Tele2 intends to file a registration statement on Form F-4 with the Securities and Exchang