2009-09-161 Name Namesson

RUSSIA

MARKET AREA RUSSIA

Dmitry Strashnov

Market Area Director

2009-09-163 Name Namesson

RUSSIA AT LARGE

17,075,400 square kilometres

142 million people

11 time zones

Flight length from Kaliningrad to Vladivostok ~12 hours

83 regions

17,075,400 square kilometres

142 million people

11 time zones

Flight length from Kaliningrad to Vladivostok ~12 hours

83 regions

2009-09-164 Name Namesson

RUSSIAN TELECOM MARKET

Player License Cover#Regions

Sub. BaseQ2 2009

Market share growth rate* July 2009 vs. July 2008

MTS 82 regions 67 420 000 8,99%

Beeline 80 regions 49 500 000 14,02%

Megafon 83 regions 45 400 000 14,29%

TELE2 37 regions 12 381 000 27,77%

*Source: ACM

2009-09-165 Name Namesson

MOBILE SUBSCRIBER

PENETRATION

Penetration levels in Tele2 licensed areas

� Market penetration: 129%*

� Active SIM penetration: 95%**

� Estimated human penetration: 82%**

* & ** Source: ACM* and internal TELE2 research**

2009-09-166 Name Namesson

TELE2 RUSSIA CURRENT

FOOTPRINT

Licenses - 37 regions

with a population of 61

million

Licenses - 37 regions

with a population of 61

million

2009-09-167 Name Namesson

CLEAR BUSINESS GOALS

THROUGH EVOLUTION

Subscribers acquisition

Retention

ARPU protection

Subscribers acquisitionARPU protection

Retention

1,5 – 2 years 2,5 – 3 years >3 years

Pe

rce

ive

d p

rice

leade

rsh

ip/

Su

bscribe

r ba

se

ChallengerChallenger

DefenderDefender

NewcomerNewcomer

17 REGIONS

20 REGIONS

2009-09-168 Name Namesson

TELE2 RUSSIA – OLD REGIONS

2009-09-169 Name Namesson

CONTINUOUS CUSTOMER GROWTH

227 216

231 229 229

217 217 208 205

190

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09

0

50

100

150

200

250

300

Total SUBS end of period ARPU total

2009-09-1610 Name Namesson

SOLID PROFITABILITY PROFILE

40%

36%36%

37%37%

36%

31%

33%33%

28%

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09

20%

25%

30%

35%

40%

45%

50%

Op Revenue EBITDA EBITDA %

2009-09-1611 Name Namesson

TELE2 IS NUMBER ONE

IN 10 OF 17 REGIONS

21%

37%

22%

17%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

As of July 31, 2009

Mark

et

sh

are

in

exis

tin

g r

eg

ion

s,

%.

Tele2 share Beeline Share MTS Share Megafon Share Other Share

Source: Internal Tele2 research

2009-09-1612 Name Namesson

TELE2 RUSSIA NEW REGIONS

2009-09-1613 Name Namesson

NEW REGIONS: A 3-STEP LAUNCH

Prelaunch

awareness

building

Press-

conference &

add campaign

Event & sales on

the main square

2009-09-1614 Name Namesson

106,8148,0

189,3 194,8220,0

247,8

368,4

490,4

771,7

0

100

200

300

400

500

600

700

800

900

dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09

Su

bscri

be

rs n

ew

re

gio

ns, k s

ub

s.

NEW REGIONS: CUSTOMER

BASE DEVELOPMENT

NovosibirskNovosibirsk

BryanskBryansk

TomskTomsk

KarsnodarKarsnodar

2009-09-1615 Name Namesson

OUTLOOK

� Subscriber base should be able to reach 18-19 million by YE 2011

� Maintain ARPU growth at 5% by 2011

� EBITDA margin 2010-2011

� Old regions’ EBITDA margin should evolve in the range of 40-45 percent

� New regions’ EBITDA margin should break even 2 years from launch

� Russia’s total EBITDA margin should develop in the range of 25-30 percent

� Capex 2010-2011

� Accumulated Capex in Russia should be in the range of SEK 4.5-5.0 billion

� Selected acquisitions – when available and under right conditions

2009-09-1616 Name Namesson

Q&A

2009-09-1617 Name Namesson

� Commercial launch of new regions on track

� New demanding but achievable operational

targets set for Russia

� Tele2 Russia will continue to be the growth

engine of the group

SUMMARY