Slide 1: Second quarter 2018
SECOND quarter 2018 July 18, 2018 TELE2 AB Filing pursuant to Rule 425 under the Securities Act of 1933, as amended Filer: Tele2 AB Subject Company: Com Hem Holding AB Commission File No.: 132-02822
Slide 2: Group highlights - Q2 2018
Group highlights - Q2 2018 SEK billion Revenue Mobile end-user service revenue Adjusted EBITDA Operating cash flow, rolling 12m Q2 2018 6.5 3.6 1.8 4.7 % change reported 6% 6% 13% 20% % change LFL 5% 5% 12% Comments o RLAH adjusted EBITDA impact for the Group of SEK -55m in Q2 o SEK 4.1bn rolling 12
Slide 3: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger o Resilient Swedish B2C and B2B despite headwinds o Baltics MEUSR up 7% and adjusted EBITDA up 10% LFL o Rolling 12m operating cash flow up 5% to SEK 4.5bn Investment Markets o Kazakhstan MEUSR growth of 20% LFL, driving continued margin exp
Slide 4: Baltic Sea Challenger
Baltic Sea Challenger TELE2
Slide 5: Sweden - Financials
Sweden - Financials Mobile end-user service revenue (SEK million) -1% 1,936 1,938 1,932 1,911 1,925 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Adjusted EBITDA and margin (SEK million) -0% 1,043 1,113 1,054 1,066 1,042 27% 29% 26% 27% 27% Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 3,323 3,429 3,609 3,459 3,441 79% 8
Slide 6: Sweden B2C – Resilient in a vibrant market
Q2 highlights Mobile end-user service revenue growth Postpaid ASPU* Campaigns MEUSR growth of 1% excluding the impact of RLAH, driven by both Comviq postpaid and Tele2 small screenContinued postpaid ASPU growth especially within Tele2Comviq NPS reached a new high, while Tele2 NPS remains stableTarge
Slide 7: Sweden B2B - Continued recovery
Sweden B2B - Continued recovery Revenue +0% Q2 '17 Q2 '18 Service revenue -5% Q2 '17 Q2 '18 Customer successes in the quarter Goteborgs Stad Uppsala kommun Epiroc GETINGE Roksidrottsforbundet Q2 highlights - Stable revenues despite continued price competition in the large enterprise segment, support
Slide 8: Baltics - Financials
Baltics - Financials Mobile end-user service revenue (SEK million) +7% 561 579 586 585 639 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Adjusted EBITDA and margin (SEK million) +10% 310 341 323 315 365 33% 34% 30% 31% 32% Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 OCF and cash conversion, rolling 12m (SEK million) 93
Slide 9: Baltics - Excellent growth
Baltics - Excellent growth ASPU development +6% Q2 '17 Q2 '18 4G smartphone penetration 42% 55% Q2 '17 Q2 '18 Brand campaigns TELE2 GUDR? M?JA GATAVA 5G Uzzini, cik gudra var kl?t ar? tava m?ja Q2 highlights - ASPU growth continues from monetization of increased data consumption and from prepaid to
Slide 10: Investment Markets
Investment Markets TELE2
Slide 11: Kazakhstan - Financials
Kazakhstan - Financials Mobile end-user service revenue (SEK million) +20% 545 505 552 534 613 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Adjusted EBITDA and margin (SEK million) +78% 158 168 196 202 264 22% 26% 28% 29% 34% Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 OCF and cash conversion, rolling 12m (SEK million
Slide 12: Kazakhstan - Continued positive momentum
Kazakhstan - Continued positive momentum ASPU development +14% Q2 '17 Q2 '18 Customer base +4% Q2 '17 Q2 '18 Net Promoter Score 26 20 30 33 Q2 '17 Q2 '18 Tele2 Altel Q2 highlights - ASPU growth driven by new tariffs supporting monetization of increased data consumption - Strong customer satisfaction
Slide 13: Financial Overview
Financial Overview TELE2
Slide 14: Group results Q2 2018
Group results Q2 2018 SEK million Revenue Adjusted EBITDA Adjusted EBITDA margin (%) Items affecting comparability D&A JVs and associated companies Operating profit Interest income/expenses Other financial items Taxes Net profit, continuing operations Discontinued operations Non-controlling interest
Slide 15: Group cash flow Q2 2018
Group cash flow Q2 2018 SEK million Adjusted EBITDA, continuing operations Adjusted EBITDA, discontinued operations Financial items paid/received Taxes paid Changes in working capital CapEx paid Other cash items Free cash flow Of which free cash flow, discontinued operations Of which free cash flow,
Slide 16: Operating cash flow
Operating cash flow Rolling 12 months, SEK million 3,377 3,371 3,361 3,337 3,172 3,245 3,284 3,332 3,815 4,055 [VALUE] 4,218 [VALUE] 4,362 -296 -397 -481 -648 -649 -558 -490 -342 -210 -123 340 538 -906 -1,133 -1,185 -1,344 -1,707 -1,856 -1,838 -1,643 -1,150 -939 -746 -674 -732 -596 Q1 '15 Q2 '15 Q3
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 12.0 10.7 9.8 9.8 11.4 1.9 [VALUE] Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Economic net debt Economic net debt to adjusted EBITDA 12.0 [CELLRANGE] [CELLRANGE] [CELLRANGE] 11
Slide 18: Financial guidance 2018 - Upgraded
Financial guidance 2018 - Upgraded Mobile end-user service revenue Mid-single digit % growth* Adjusted EBITDA (SEK billion) 6.8 - 7.1 CAPEX (SEK billion excluding spectrum) 2.1 - 2.4 18 * Based on continuing operations in constant currencies TELE2
Slide 19: Merger with Com Hem Transaction update
Merger with Com Hem Transaction update TELE2
Slide 20: Merger process activities
Merger process activities Completed activities o Completion of PCAOB audit o Announcement by Kinnevik of pro-competitive measures o Submission of merger documents to the SEC and Finansinspektionen Planned in H2 o Filing with the European Commission o 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 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 24: The Beginning - Important information
THE BEGINNING TELE2 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 Se