Tele2 continues to provide price leadership through cost control and a standardized product portfolio. In Norway, a joint venture called Mobile Norway builds the network and allows Tele2 to maintain price leadership. In Sweden, the acquisition of Spring Mobil strengthens Tele2's business segment portfolio. Growth is driven by increasing data usage from smartphones, which are becoming mass market and attracting more Tele2 customers. Tele2 is investing in understanding customers to improve retention. Maintaining the lowest prices through cost efficiency will be key in mature Nordic markets.

1. DnB NOR MARKETS
NORDIC TMT CONFERENCE

2. 1

3. TELE2 ALWAYS PROVIDES
• P i l d hi
Price leadership
through best in class
cost control
• Price winning q
g quality
y
network
• Standardized
product portfolio
2

4. NORWAY: CONTINUED PRICE LEADERSHIP AND CUSTOMER
SATISFACTION
NORWAY HIGHLIGHTS Q2
• 3 percent revenue growth
• Net intake of 7000 (2000)
– Launch of prepaid and push in small corporate segment
• EBITDA margin at 8 (8) percent
• Tele2 awarded ”most satisfied mobile telephony
customers” by Norsk Kundebarometer 2010
• Continued price leadership
3

5. NORWAY: CONTROLLED INFRASTRUCTURE WITH MOBILE NORWAY
JOINT VENTURE WITH NETWORK NORWAY
• Tele2 and Network Norway are jointly
investing in Mobile Norway
• Joint venture Mobile Norway builds the
mobile network and provides Tele2 and
Network Norway with mobile services
• Key figures:
– The network will cover 75 % of the
population
– 525 urban areas - the network will
cover all urban areas in all counties and
all municipalities with more than 600
v residents
Illustration: number of
towns in each countyy
4

6. SWEDEN: CONTINUED REVENUE GROWTH
SWEDEN HIGHLIGHTS Q2 MSEK Tele2 Sweden Mobile Net Sales
2 500
2 000
• Accelerated mobile net sales + 5 percent
1 500
1 000
• Adding 74,000 mobile customers 500
– 31,000 mobile postpaid ( ,
, p p (14,000 in Q1 2010)
)
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010
• Mobile EBITDA margin 34,5 (34,0) percent
g , ( , )p
• Awarded “Best Mobile Broadband
Network”
5

7. SWEDEN: HIGH POTENTIAL TO GAIN MARKET SHARES IN
BUSINESS SEGMENT
NEW BUSINESS STRATEGY
Swedish market share development
Mobile Business
Mobile Business
• Acquisition of Spring Mobil in order to 60%
strengthen product portfolio 50%
40%
30%
20%
• New product profile combined with new
10%
segmentation strategy has increased 0%
ARPU on business customers while 2006 2007 2008 2009
maintaining customer stock
Hi3G Tele2 TeliaSonera Telenor
Source: PTS 2010
6

8. SWEDEN: MULTICHANNEL SALES STRATEGY BASED ON
AVAILABILITY AND COST EFFICIENCY
MULTICHANNEL SALES STRATEGY TELE2 STORES CONTINUED SUCCESS
• Different sales channels for different products • Delivering above expectations
• Strong in retail • Customers have higher ARPU and lower churn
• Shifting from push to pull • More than 80% of sales are made with add on services
• Re-launched online store • Store network expansion continues
• Prepaid:
• 150 meter strategy
• Increased share of refills online
7

9. NORDICS: MARKET GROWTH IS DRIVEN BY DATA
DEMAND FOR DATA INCREASES Mobile market growth comes from data
25%
• Demand for mobile data is exploding, in particular 29000
from handset customers 23%
28000
• L
Launch of “U li i d” mobile b db d
h f “Unlimited” bil broadband
21%
• “Unlimited” positions Tele2 for 4G
Revenue
Mobile revenue (MSEK)
27000
19%
• Offering home telephony and broadband via the
g p y
ata-Revenue/R
mobile network in order to capitalize on fixed to 26000
mobile substitution 17%
25000
15%
Da
24000
13%
23000 11%
22000 9%
2004 2005 2006 2007 2008 2009
Source: Analysis mason, 2010
8

10. NORDICS: DATA GROWTH IS DRIVEN BY SMARTPHONES WHICH ARE
NOW ATTRACTING TELE2 CUSTOMERS
Smartphones 2010 Smartphones 2008
LOW HIGH
ARPU ARPU
Tele2/Comviq target
segment
TOP SMARTPHONESALES AUGUST
• Smart Phones are becoming mass market
1 IPHONE 4 16GB BLACK TELE2
and prices are coming down driving the shift
even faster 2 IPHONE 4 32GB BLACK TELE2
3 IPHONE 3GS BLACK 8GB TELE2
4 SONY ERICSSON U20i XPERIA X10 MINI PRO BLACK
• Tele2 segments have begun to use
5 SONY ERICSSON E10i XPERIA X10 MINI BLACK
smartphones which generate data revenue
6 HTC WILDFIRE (NORDIC)
7 SONY ERICSSON XPERIA X10 WHITE
• Tele2 launched iPhone in July 2010 8 SAMSUNG GALAXY S I9000 METALLIC BLACK
9

11. NORDICS: TELE2 WILL OFFER THE BEST DEAL BY BETTER
UNDERSTANDING THE CUSTOMER
CUSTOMER BASE MANAGEMENT
• 800 MSEK investment enabling a more sophisticated analysis of customer
base
• The customer base management team will split customers into potential
and existing customers
d i ti t
• Potential customers: focus on efficient communication of price and quality
• Existing customers: segment customers according to phase and address
them accordingly in order to increase customer life time value
Purchase Churn
Unstable Lukewarm
Prospect
p New customer Stable customer prospect
t
customer
t
10

12. NORDICS: TELE2 WILL GAIN MARKET SHARES WITH PRICE
POSITION
PRICE POSITION IS CORE Mobile market penetration Sweden
130%
• Nordic markets are among the most mature
120%
telecom markets in Europe 110%
ation
100%
• Services differ little across operators 90%
Penetra
80%
• Price will be an increasingly important differentiator 70%
60%
• Tele2 has had and will continue to have the 50%
strongest price position 40%
• Price position will be retained through our cost
efficient DNA resulting in cost efficient networks Source: Analysis mason, 2010
SUNAB Net4Mobility and Mobile Norway
SUNAB,
SUNAB
11

13. SUMMARY
Controlled infrastructure in Norway with Mobile
Norway
Acquisition of Spring strengthens Business product
portfolio
Data from Smartphones is driving market growth
Smartphones are becoming mass market and are
attracting Tele2 customers
iPhone launched
Tele2 invests 800 MSEK to better address customer
base
Lowest price position through cost efficiency will be
Tele2s key unique selling point in a mature market
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