Slide 1: Third Quarter 2018
THIRD UARTER 018 October 18, 2018 . Tele? AB TELE
Slide 2: Group highlights
Group highlights SEK billion Q3 2018 Revenue Mobile end-user 3 7 service revenue . Adjusted EBITDA Operating cash flow, rolling 12m 2 — Q3 2018 % change % change reported LFL 1% 4% 8% 5% 12% 9% 14% LFL is constant currencies Operating cash flow = adjusted EBITDA - CAPEX Comments * SEK 4.2bn rolling
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 Sweden reverts to growth in MEUSR and adjusted EBITDA Baltics MEUSR up 3% and adjusted EBITDA up 9% LFL Rolling 12m operating cash flow up 3% to SEK 4.5bn Kazakhstan MEUS
Slide 4: Baltic Sea Challenger
Baltic Sea Challenger TELE2
Slide 5: Sweden — Financials
Sweden — Financials Adjusted EBITDA and margin (SEK million) Mobile end-user service revenue (SEK million) ; 10% . 1,181 1,938 1932 1911 1,925 1,950 1113 14054 1,066 = 1,042 HI Q3'17 Q4'17,— Q118— Q2'18 = Q3'18 Q3'17 Q4'17)— Q1'18 = Q2'18 = Q3'18 Q3 highlights — Mobile end-user service revenue retur
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 vidusKar Wz) Q3'17 Q3 18 Q3'17 Q3 18 Q3 highlights — Mobile end-user service revenue flat as growth within Comviq postpaid is offset by declines in prepaid and MBB — Continued postpaid ASPU gro
Slide 7: Sweden B2B — Customer wins continue
Sweden B2B — Customer wins continue Revenue Service revenue Customer successes in the quarter -—— -—a— Aveste BC Goteborg Energi : lkommun 7 Ss axfo ° d kommun Q3'17 Q3 18 Q3'17 Q3 18 Q3 highlights Revenue growth driven by equipment sales and a return to growth in mobile Service revenue decline driv
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) [ +3% 7 [ +9% y 1,077 639 650 ge2 973 «1,006.04 879 586 585 | | Q3'17 Q4'17 QL18 = 218 Q3.'18 Q3'17 Q4'17 QU18 = Q2'18—-Q3'18 Q3'17 Q417 QL18
Slide 9: Baltics — Growth despite tougher comps
Baltics — Growth despite tougher comps ASPU development 4G smartphone penetration Brand campaigns TELE2 INTERNETS 41,18 MBIT/S Q3'17 Q3 18 Q3'17 Q3 18 Q3 highlights — ASPU growth driven by upselling from prepaid to postpaid and to larger data bundles in Lithuania and Latvia — Rising smartphone and M
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 [ v 639 613 628 264 274 508 552 534 168 34% TY Q3'17 Q4117 QL18 Q218 Q3'18 Q3'17 Q4'17 QL18 Q218 Q3'18 Q3'17 Q4'17 QL18 = Q218 —-Q3'18 Q
Slide 12: Kazakhstan — Continued positive momentum
Kazakhstan — Continued positive momentum ASPU development Customer base Net Promoter Score a a Q3'17 Q3'18 Q3'17 Q3'18 Q3'17 Q3'18 Mm Tele2 MM Altel Q3 highlights — ASPU growth driven by new tariffs supporting monetization of increased data consumption — Strong customer satisfaction is driving posit
Slide 13: Financial Overview
Financial Overview TELE2
Slide 14: Group results Q3 2018
Group results Q3 2018 SEK million Q3 2018 Q3 2017 Revenue 6 6,538 6,098 Adjusted EBITDA (2) 1,984 1,771 Adjusted EBITDA margin (%) 30.3% 29.0% Items affecting comparability (3) -155 -35 D&A -658 -617 JVs and associated companies -1 ie} Operating profit 1,170 1,119 Interest income/expenses -71 -76 Ot
Slide 15: Group cash flow Q3 2018
Group cash flow Q3 2018 SEK million Q3 2018 Q3 2017 Comments Adjusted EBITDA, continuing 1984 L771 @ Discontinued operations reflecting mainly the operations , , Netherlands Adjusted EBITDA, discontinued se , P operations e 147 12a e bower tax payments related to timing difference in weden Financial
Slide 16: Operating cash flow
Operating cash flow Rolling 12 months, SEK million Q1'15 Q2'15 Q3'18 Q4'18 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q218 Q3'18 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 -2.0 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Sep 2017 Freecash Shareholder M&A and . . flow remuneration other mmm Economic net debt Economic net debt to adjust
Slide 18: Upgraded financial guidance 2018
Upgraded financial guidance 2018 Tele2 standalone Mobile end-user Adjusted EBITDA CAPEX service revenue (SEK billion) (SEK billion excluding spectrum) Mid-single digit 7.0 _ 12 | 19-22 — . . LEQ 18 * Based on continuing operations in constant currencies TE ino
Slide 19: To conclude...
To conclude... TELE2
Slide 20: Key priorities moving forward
Key priorities moving forward = Prepare to close mergers in both Sweden and Netherlands " Operational excellence to remain a high priority * Growth from continued data monetization = Further leverage our momentum in Baltics, Croatia and Kazakhstan " Fearlessly liberate people to live a more connecte
Slide 21: 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 22: Thank you!
THANK YOU!