Tele2 Ab Class A · OMXSTO:TEL2_A

Tele2 Ab Class A — Investor Day (September 2011)

15 slides from Tele2 Ab Class A's investor day presentation, Sep 2, 2011

  1. Slide 1: Capital Markets Day 2011: The Best of Both Worlds – In the Numbers

    Capital Markets Day 2011 The Best of Both Worlds – In the Numbers Lars Nilsson

  2. Slide 2: In the Rear View Mirror

    In the Rear View Mirror In Riga (2007) In Stockholm (2009)  A more focused (mobile)  House in order company  ROCE and EBITDA  Introduction of financial  Debt hurdles and operational goals  Financial targets  Increased transparency  Priorities 2 Sep 2011 Capital Markets Day 2011

  3. Slide 3: Improved Financial Results

    Improved Financial Results SEK billion 2007 2008 2009 2010 1H 2011 Net Sales 39.1 38.3 39.4 40.2 19.6 EBITDA 6.7 8.2 9.4 10.3 5.2 - EBITDA margin (%) 17.1% 21.4% 23.8% 26.0% 26.4% Normalized EBIT 1.7 2.9 5.7 7.1 3.4 - Normalized EBIT Margin (%) 4.5% 7.6% 14.5% 17.6% 17.3% CAPEX* 4.1 4.5 4.4 3.7 2.4

  4. Slide 4: ROCE has Increased 12 Percentage Points Since Q3 2007

    ROCE has Increased 12 Percentage Points Since Q3 2007 25% 20% 15% 10% 5% 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 4 Sep 2011 Capital Markets Day 2011

  5. Slide 5: Balance Sheet

    Balance Sheet SEK Billion June 30, 2011 Intangible assets 13.5 Deferred tax assets 3.2 Other fixed assets 16.8 Fixed assets 33.5 Net non-interest-bearing assets / liabilities -1.5 32 Equity / interest-bearing debt 32 5 Sep 2011 Capital Markets Day 2011

  6. Slide 6: Net Debt and Dividend Targets

    Net Debt and Dividend Targets Shareholder remuneration Tele2 will seek to pay a progressive ordinary dividend of no less than 50 percent of net income excluding one-off items Extraordinary dividends and the authority to purchase Tele2’s own shares will be recommended or sought when the anticipated t

  7. Slide 7: Cash generation

    Balance Sheet Consideration / Financial Leverage M&A / New growth When available, invest in value opportunities accretive M&A or new business opportunities meeting Tele2’s Cash generation strict financial hurdles Shareholder Enhance shareholder value by remuneration distributing recurring cash to sh

  8. Slide 8: Prudent Balance Sheet Assessment

    Prudent Balance Sheet Assessment  (a) status of operations  (b) future strategic opportunities  (c) competitive landscape  (d) general macroeconomic status We are content with our current financial and operational performance 8 Sep 2011 Capital Markets Day 2011

  9. Slide 9: Financial Profile

    Financial Profile Pro forma net debt / EBITDA 12M rolling SEK Billion / RATIO 20,0 2,00 17,5 1,75 Upper 15,0 1,50 limit 12,5 1,25 Lower 10,0 1,00 limit 7,5 0,75 5,0 0,50 2,5 0,25 0,0 0,00 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Pro Forma Net Debt Dividend Extra dividend Pro Forma Net Debt / EBITDA 12'M ROLLIN

  10. Slide 10: Current Debt Profile and Funding Strategy

    Current Debt Profile and Funding Strategy Diversify Funding Sources  Rouble bond (first issue RUB 13bn) • We will revisit the market during the autumn  Swedish commercial paper / bond program RCF (SEK) 8.8 bn  Euro bond Kazakhstan debt 0.9 bn Rubel bond 2.9 bn Off balance sheet 2.4 bn Gross debt

  11. Slide 11: New Group Targets

    New Group Targets  Best Deal position  Targeting a long term mobile EBITDA margin on own infrastructure of at least 35 percent  All operations should have the ambition to reach ROCE of at least 24 (earlier 20) percent  The capability to reach a Top 2 position, in terms of customer market share,

  12. Slide 12: The EBITDA Target Will Be Met

    The EBITDA Target Will Be Met EBITDA Target 40% 35% 30% 25% 20% 15% 10% 5% Neg. 0% Russia Sweden Norway Croatia Latvia Lithunia Estonia Kazakhstan 12 Sep 2011 Capital Markets Day 2011

  13. Slide 13: Our Priorities

    Our Priorities  Cost control – Best in class • Benchmarking process • Continuous improvement program. This year’s savings target of 360 MSEK will be met • Shared service center  Quality focus • Increased quality focus to reduce cost and enhance the customer experience Tele2 has improved its cost p

  14. Slide 14: Conclusion

    Conclusion  Improved financial performance  Raising the bar on group target 14 Sep 2011 Capital Markets Day 2011

  15. Slide 15: Sep 2011 Capital Markets Day 2011

    15 Sep 2011 Capital Markets Day 2011

Tele2 — Investor Day (September 2011) on 6ix