Tele2 Ab Class A · OMXSTO:TEL2_A

Tele2 Ab Class A — Investor Day (November 2009)

22 slides from Tele2 Ab Class A's investor day presentation, Nov 4, 2009

  1. Slide 1: Kinnevik Capital Market Day

    KINNEVIK CAPITAL MARKET DAY Harri Koponen President & CEO

  2. Slide 2: Agenda

    AGENDA A. Taking Tele2 to the next level B. Financial hurdles C. Summary 2 091104 Harri Koponen

  3. Slide 3: Tele2 Management

    TELE2 MANAGEMENT HARRI KOPONEN President and CEO NICLAS PALMSTIERNA LARS NILSSON Market Area Director Chief Financial Officer Nordic DMITRY STRASHNOV ANDERS OLSSON Market Area Director Chief Commercial Russia Officer HENRIK RINGMAR KRISTINA VALLIN Market Area Director Director Human Western Europe R

  4. Slide 4: Tele2 in Brief

    TELE2 IN BRIEF ƒ We have 26 million customers in 10 countries with more than 13 million customers in Russia ƒ Tele2 has a mobile focus Riga 2007 Stockholm 3Q 2009 Mobile Revenue 43 percent 64 percent ƒ We have grown our mobile footprint, today covering more than 85 million people with our controlled

  5. Slide 5: Business Dynamics: Mobile Traffic Volumes

    BUSINESS DYNAMICS MOBILE TRAFFIC VOLUMES 2 500 2 000 Minutes, billions 1 500 1 000 500 0 08 09 08 07 07 06 06 05 05 3/ 1/ 1/ 3/ 1/ 1/ 3/ 1/ 3/ Q Q Q Q Q Q Q Q Q 5 091104 Harri Koponen

  6. Slide 6: How We Create Shareholder Value

    HOW WE CREATE SHAREHOLDER VALUE Nordic Cash Flow Generator Russia B2B Grow Develop Consolidate Western Europe Central Europe Maintain and Harvest Grow Develop Develop B2B Eurasia Explore 6 091104 Harri Koponen

  7. Slide 7: Market Area Nordic

    MARKET AREA NORDIC Performance: ƒ Represents 37 percent of total revenue Q3 2009 ƒ Strong cash flow generation – EBITDA SEK 842 million and Capex SEK 98 million in Q3 2009 Short to medium term focus & activities: ƒ Sweden Back to growth ƒ Norway Build-out own infrastructure 7 091104 Harri Koponen

  8. Slide 8: Market Area Russia

    MARKET AREA RUSSIA Performance: ƒ Represents 20 percent of total revenues Q3 2009 ƒ Over 13 million customers ƒ 40.5 percent EBITDA margin in old regions Q3 2009 Short to medium term focus & activities: ƒ Tele2 Russia will continue to be the growth engine of the group ƒ Making the roll-out an effici

  9. Slide 9: Market Area Russia

    MARKET AREA RUSSIA 9 091104 Harri Koponen

  10. Slide 10: Market Area Central Europe

    MARKET AREA CENTRAL EUROPE Performance: ƒ Represents 14 percent of total revenues Q3 2009 ƒ Strong performance compared to competition Short to medium term focus & activities: ƒ Baltic region Manage economic turmoil and create platform for future growth ƒ Croatia Reach EBITDA break even during 2H 20

  11. Slide 11: Market Area Western Europe

    MARKET AREA WESTERN EUROPE Performance: ƒ Represents 28 percent of total revenues Q3 2009 ƒ Gold standard for Tele2 Group in Business to Business services and consumer fixed broadband Short to medium term focus & activities: ƒ Netherlands Develop for the future ƒ Austria Further restructuring ƒ Germ

  12. Slide 12: Tele2's Position

    TELE2’S POSITION HIGH QUALITY HIGH PRICE LOW PRICE LOW QUALITY 12 091104 Harri Koponen

  13. Slide 13: What Drives Our Economic Engine

    WHAT DRIVES OUR ECONOMIC ENGINE 1. Perceived price leadership and quality perception 2. Customer lifetime value 3. Low costs 13 091104 Harri Koponen

  14. Slide 14: Agenda

    AGENDA A. Taking Tele2 to the next level B. Financial hurdles C. Summary 14 091104 Harri Koponen

  15. Slide 15: Financial Targets

    FINANCIAL TARGETS We have set up tough targets for the Group: ƒ EBITDA hurdle for a core business maintained at 20 percent ƒ Mobile on own infrastructure should target mid 30 percent ƒ ROCE target for the group 20 percent 15 091104 Harri Koponen

  16. Slide 16: ROCE

    ROCE 19,0% 18,0% 17,0% 16,0% 15,0% 14,0% 13,0% 12,0% 11,0% 10,0% 9,0% 8,0% 7,0% 6,0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 16 091104 Harri Koponen

  17. Slide 17: Group Financial Profile

    GROUP FINANCIAL PROFILE Net debt Net debt incl. JV Net debt/ EBITDA 2008 Net debt incl. JV/ EBITDA 2008 25 000 3,5 3 20 000 2,5 15 000 2 10 000 1,5 1 5 000 0,5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 07 07 07 08 08 08 08 09 09 09 17 091104 Harri Koponen

  18. Slide 18: Net Debt and Dividend Targets

    NET DEBT AND DIVIDEND TARGETS ƒ Shareholder remuneration ƒ Tele2’s intention over the medium term is to pay a progressively increasing ordinary dividend ƒ Long-term financial leverage ƒ Tele2’s longer-term financial leverage, defined as the net debt /EBITDA ratio, should be in line with the industry

  19. Slide 19: Agenda

    AGENDA A. Taking Tele2 to the next level B. Financial hurdles C. Summary 19 091104 Harri Koponen

  20. Slide 20: Tele2 Going Forward

    TELE2 GOING FORWARD ƒ Market Area Nordic ƒ Cash flow generator ƒ Test bed for new services ƒ Market Area Russia ƒ The largest growth engine of the Tele2 Group ƒ Selected acquisitions – when available and under right conditions ƒ Market Area Central Europe ƒ Continued focus on growing and expanding b

  21. Slide 21: The Best Deal

    TELE2 ALWAYS PROVIDES ƒ Price leadership THE through best in class cost control BEST ƒ Price winning DEAL quality network ƒ Standardized product portfolio 21 091104 Harri Koponen

  22. Slide 22: Q&A

    Q&A 22 091104 Harri Koponen

Tele2 — Investor Day (November 2009) on 6ix