Slide 1: Important information
Important information For the purposes of this disclaimer, "this presentation" means these slides, their contents or any part of them, any oral presentation, any question and answer session and any written or oral materials discussed or distributed during the presentation meeting. This presentation
Slide 2: Group highlights - Q4 2017
Group highlights - Q4 2017 SEK billion Q4 2017 % Change Reported % Change LFL Mobile end-user service revenue 3.4 5% 5% Net sales 6.6 5% 0% EBITDA 1.5 5% 3%* Including the Netherlands Q4 2017 % Change LFL 4.0 8% 8.1 -1% 1.7 19% LFL is constant currencies and pro forma for TDC Sweden Note: All figure
Slide 3: 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 loT Cash Generators How We Win Positively Fearless Brands Connecting Things our Customers Love Digital First Customer Experience Winning Cost Structure Respo
Slide 4: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger Sweden mobile end-user service revenue down 1%, EBITDA up 3% LFL Baltics mobile end-user service revenue up 9%, EBITDA up 21% Rolling 12 months operating cash flow up 26% to SEK 4.6 billion Investment Markets Kazakhstan mobile end-user servi
Slide 5: Delivering on our long term strategy
Delivering on our long term strategy + Sweden mobile end-user service revenue down 1%, EBITDA up 3% LFL Baltic Sea : Challenger + Baltics mobile end-user service revenue up 9%, EBITDA up 21% + Rolling 12 months operating cash flow up 26% to SEK 4.6 billion + Kazakhstan mobile end-user service revenu
Slide 6: Sweden - Financials
Sweden - Financials Net sales, LFL (SEK million) -3% 4,332 3,932 3,921 3,833 4,210 TDC 4,029 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Mobile end-user service revenue, LFL (SEK million) -1% 1,959 1,922 1,930 1,939 1,941 1,928 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA and EBITDA margin, LFL (SEK million) +3% 1,045 1,
Slide 7: Sweden Consumer - Growth despite RLAH
Sweden Consumer - Growth despite RLAH Consumer mobile end-user service revenue +2% Q4 16 Q4 17 Share of postpaid sales with bundle >3GB 58% 70% Q4 16 Q4 17 Customer satisfaction (Tele2 Media and Insight) 85% 87% 82% 85% Q4 16 Q4 17 Tele2 Comviq Q4 Highlights Mobile end-user service revenue grew by 3
Slide 8: Sweden B2B - Lower costs offset lower sales
Sweden B2B - Lower costs offset lower sales B2B net sales, LFL (SEK million) -8% Q4 16 Q4 17 B2B Large net sales, LFL (SEK million) -10% Q4 16 Q4 17 FY 2017 integration synergies SEK 209 million Q4 Highlights Decrease in net sales against a tough comp, due to churn in prior quarters, price competiti
Slide 9: Baltics - Financials
Baltics - Financials Net sales (SEK million) +11% 935 859 949 983 1,042 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Mobile end-user service revenue (SEK million) +9% 533 522 564 582 580 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA (SEK million) +21% 264 286 314 339 320 28% 33% 33% 34% 30% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4
Slide 10: Baltics - Strong growth despite RLAH
Baltics - Strong growth despite RLAH ASPU development +8% Q4 16 Q4 17 Share of 4G capable smartphones in base 37% 49% Q4 16 Q4 17 MBB end-user service revenue +12% Q4 16 Q4 17 Q4 Highlights Higher ASPU driven by continued successful data monetization strategy Smartphone penetration continues to rise
Slide 11: Baltics - Strong growth despite RLAH
Baltics — Strong growth despite RLAH ASPU development Share of 4G capable MBB end-user service revenue smartphones in base 8% 41% — a4 16 417 Q4 Highlights — Higher ASPU driven by continued successful data monetization strategy — Smartphone penetration continues to rise, contributing to more than a
Slide 12: Kazakhstan - Financials
Kazakhstan - Financials Net sales (SEK million) +1% 702 649 713 653 712 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Mobile end-user service revenue (SEK million) +18% 470 495 547 506 554 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA and EBITDA margin (SEK million) +115% 92 122 160 169 198 13% 19% 22% 26% 28% Q4 16 Q1 17 Q
Slide 13: Kazakhstan - Momentum continues
Kazakhstan - Momentum continues Customer base (thousand) +7% Q4 17 Q4 17 ASPU development +17% Q4 16 Q4 17 4G population coverage 73% LTE 44% LTE-A Q4 Highlights Continued customer growth on the back of successful commercial strategies Higher ASPU level driven by continued customer shift to higher d
Slide 14: Netherlands
Netherlands Reported as a discontinued operation TELE2
Slide 15: Netherlands - Financials
Netherlands - Financials Net sales (SEK million) -6% 1,583 1,577 1,489 1,390 1,485 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Mobile end-user service revenue (SEK million) +30% 438 451 509 531 570 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA (SEK million) +203m Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 151 18 101 180 -23 Q4 Highlig
Slide 16: Netherlands - Financials
Netherlands — Financials Net sales Mobile end-user service EBITDA (SEK million) revenue (SEK milion) (SEK million) i 6% 7 [ +30% + [ +20am + 15831577 4499 sae om aste a1i7 217 0317 Q417 10 me 11 101 — | - 416 Q1t7 «Q217 «0317 asi7 416 Qti7 «Q217 «0317 a4t7 = Q4 Highlights Decline in net sales due to
Slide 17: Mobile end-user service revenue
Mobile end-user service revenue Tele2 Group (SEK million) +5% 3,271 3,272 3,398 3,396 3,437 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Development per market (SEK million) 3,271 13 47 84 9 13 3,437 Q4 16 Sweden Baltics KZ RoW Oth Q4 17 TELE2 17
Slide 18: EBITDA
EBITDA Tele2 Group (SEK million) +5% 1,461 1,530 1,577 1,773 1,527 23.0% 25.4% 25.4% 28.8% 23.0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 EBITDA margin Development per market (SEK million) 1,461 49 56 106 -90 -55 1,527 Q4 16 Sweden Baltics KZ RoW Oth Q4 17 TELE2 18
Slide 19: CAPEX
CAPEX Tele2 Group (SEK million) -13% 763 384 513 377 662 12.0% 6.4% 8.3% 6.1% 10.0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 CAPEX / Sales Development per market (SEK million) 763 -85 35 -47 5 -9 662 Q4 16 Sweden Baltics KZ RoW Oth Q4 17 TELE2 19
Slide 20: Free cash flow
Free cash flow Total operations Tele2 Group (SEK million) -16% 394 178 820 1,290 231 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Development (SEK million) 394 66 -17 -55 -391 -12 79 167 231 Q4 16 EBITDA Interest etc. Taxes Working capital CAPEX paid Discontinued operations One-off items Q4 17 Free cash flow = Cas
Slide 21: Operating cash flow
Operating cash flow EBITDA less CAPEX 12 m rolling, SEK million 62 125 3,377 3,371 3,361 3,468 3,311 3,381 3,432 3,410 3,839 4,085 4,242 4,346 -296 -397 -481 -612 -605 -504 -433 -321 -201 -131 -906 -1,133 -1,185 -1,389 -1,683 -1,845 -1,838 -1,686 -1,217 -957 -748 -596 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q
Slide 22: Debt position and financial leverage
Debt position and financial leverage Total operations, Economic net debt to EBITDA 12 m rolling SEK billion 12.5 10.0 7.5 5.0 2.5 0.0 10.4 Dec 2016 10.3 Mar 2017 12.0 Jun 2017 10.7 Sep 2017 2.0 1.5 9.8 Dec 2017 Leverage 2.5 2.0 1.5 1.0 0.5 0.0 Economic net debt Dividend, announced Economic net debt
Slide 23: Challenger Program run-rate target reached
Challenger Program run-rate target reached Target fulfillment Run-rate target benefits of SEK >1 billion reached Accumulated benefits in 2017 of SEK ~900 million Total investments of SEK ~700 million Key takeaways New operating model established - Network, IT and Finance Customer Service costs reduc
Slide 24: Challenger Program run-rate target reached
Challenger Program run-rate target reached Target fulfillment Key takeaways Looking forward Run-rate target benefits of SEK >1 billion reached Accumulated benefits in 2017 of SEK ~900 million Total investments of SEK ~700 million New operating model established — Network, IT and Finance Customer Ser
Slide 25: Financial guidance 2018
Financial guidance 2018 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 Proposed dividend SEK 4 / share Financial leverage 2.0x - 2.5x * Based on continuing operations in constant currencies TELE2 25
Slide 26: Financial guidance 2018
Financial guidance 2018 Mobile end-user EBITDA CAPEX service revenue (SEK billion) (SEK billion excluding spectrum) Mid-single digit 6. S _ 6 8 | 21-24 | Proposed dividend Financial leverage zg ————
Slide 27: 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 28: 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 29: Merger with Com Hem
Merger with Com Hem Transaction update TELE2
Slide 30: Tele2 + Com Hem: strategic rationale
Tele2 + Com Hem: strategic rationale 1 Combination of two highly complementary businesses Creating a leading integrated operator in Sweden by combining an award-winning mobile network with the fastest national fixed network and the widest range of content in the market Mobile and fixed broadband #2
Slide 31: FCFE 2017 + targeted synergies
FCFE 2017 + targeted synergies SEK ~5 billion 0.6 1.2 3.1 Tele2 FCFE 2017 continuing operations Com Hem FCFE 2017, including normalized tax(1) Post tax run-rate synergies and added interest(2) Source: Company filings, Nasdaq. Notes: (1) Calculated as Com Hem reported FCFE 2017 (SEK 1,528m) less norm
Slide 32: FCFE 2017 + targeted synergies
FCFE 2017 + targeted synergies SEK ~5 billion 0.6 ww Tele2 FCFE 2017 continuing operations il Com Hem FCFE 2017, including normalized tax Post tax run-rate synergies and added interest®
Slide 33: The End