THIRDQUARTER 2016October 20, 2016

Tele2 AB

Delivering on our long term strategy

Winning People & Culture

Value Champion

Step-Change Productivity

Focused Technology

Choices

• Swedish 4G geographic coverage reaches 88%• Baltics 4G population coverage now at 99% • Netherlands data on-loading on own network at 77%

• Group mobile end-user service revenue up 6%• Sweden mobile end-user service revenue growth of 2%• Netherlands mobile end-user service revenue up 15%

• Strong EBITDA contribution from Sweden, Baltics and Kazakhstan• Kazakhstan JV synergy plan progressing well• Challenger program on track for SEK1bn per annum benefits

2

• Integration of Altel employees on track• Preparing for integration of TDC

Group highlights – Q3 2016

3

Q3 2016 % Change Reported

LFL is constant currencies and pro forma for Altel

% ChangeLFL

Mobile end-user service revenue(SEK billion)

3.64 +6% +6%

EBITDA(SEK billion) 1.56 -2% -1%

Net sales(SEK billion) 6.96 +3% +1%

Sweden – FinancialsNet sales(SEK million)

Mobile end-user servicerevenue (SEK million)

Q3 Highlights

EBITDA and EBITDA margin(SEK million)

1 889 1 841 1 797 1 821 1 928

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

500

1 000

1 500

2 000

2 500

+2%0% +5%

4

– Record mobile end-user service revenue driven by seasonal ASPU increase and strong intake

– Net sales flat mainly due to higher mobile revenues, offset by lower fixed telephony and wholesale revenues

– EBITDA uplift through improved data monetization, strong roaming and realized efficiencies from Challenger initiatives

3 100 3 299 3 053 3 018 3 095

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

500

1 000

1 500

2 000

2 500

3 000

3 500 1 014 946 894 8461 068

33% 29% 29% 28%35%

0%

10%

20%

30%

40%

50%

60%

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

200

400

600

800

1 000

1 200

Sweden – Improving trendsConsumer postpaid mobile end-user service revenue

Share of sales with bundle >0.5GB

– Consumer postpaid mobile end-user service revenue up 7% driven by increased data consumption and strong Comviq customer intake

– Tele2 increasingly attracting customers to premium value buckets

– New Tele2 advertising campaign, launched post quarter end, to strengthen Tele2 within our dual brand strategy

Q3 Highlights

Geographic coverage2G/4G

Q3 15 Q3 16

5

+7%

73%84% 85%

Q1 16 Q2 16 Q3 16

83%

88%

Q3 15 Q3 16

Baltics – Financials

Q3 Highlights

6

Net sales(SEK million)

EBITDA and EBITDA margin(SEK million)

Mobile end-user service revenue (SEK million)

488 476 468 477 521

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

100

200

300

400

500

600

263 257 246 256287

32% 32% 32% 33% 32%

0%

10%

20%

30%

40%

50%

60%

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

50

100

150

200

250

300

350832 815 770 787884

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

100

200

300

400

500

600

700

800

900

1 000

– Net sales driven by continued demand for data services

– Mobile end-user service revenue growth driven by data monetisation and strong summer marketing campaigns

– Strong EBITDA performance continues

+7%+6% +9%

Baltics – Data monetization continues

7

ASPU development Share of 4G capable smartphones in base

Q3 Highlights

4G population coverage

– Strong data monetization driven by prepaid to postpaid transition and data centric pricing

– Data consumption stimulated by an increasing rate of 4G handset penetration

– 99% network coverage drives higher data usage and purchase of top-up data buckets

82%

99%

Q3 15 Q3 16Q3 15 Q3 16

17%

32%

Q3 15 Q3 16

+7%

Netherlands – Financials

Q3 Highlights– Net sales up due to strong mobile momentum, offset by decline in fixed

– Strong mobile end-user service revenue driven by almost 20% increase in customer base year-on-year

– EBITDA impacted by investments related to mobile launch and decline in fixed

– An impairment of SEK 2.5bn was recognized in Q3

8

Net sales(SEK million)

EBITDA (SEK million)

Mobile end-user service revenue (SEK million)

364403

322 336419

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

50

100

150

200

250

300

350

400

450

122

35

-31

-116

-2

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

-150

-100

-50

0

50

100

150

1 440 1 512 1 441 1 452 1 478

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

200

400

600

800

1 000

1 200

1 400

1 600

+3% -102%+15%

Netherlands – Continuing momentumSpontaneous brand awareness & brand consideration (Memo2)

Share of total new postpaid(GfK)

Data usage on own network

Q3 Highlights– Awareness and consideration continued to build behind our innovative “Fun Rebel Campaign”, competitive offerings and network performance

– Maintaining a strong market share of new postpaid contracts, despite increased competitive pressure

– Good progress in data on-loading on own network driven by network rollout at 98% outdoor and 83% indoor coverage

– Roll-out of VoLTE initiated with over 50k subscribers

9

27%

77%

Pre-launch Sep 164G

34%

43%41%

56%

Pre-launch Sep 16

Awareness Consideration

12%

19%

Pre-launchOct 15

Aug 16

– Significant mobile end-user service revenue growth due to pricing and an increasing customer base

– Net sales lower this quarter due to Altel handset sales campaign launched in Q3 last year

– Positive EBITDA development driven by revenue growth, improved operating leverage and synergies from JV integration

Kazakhstan – Financials

10

Q3 Highlights

LFL is constant currency and pro forma for Altel

Net sales, LFL (SEK million)

EBITDA and EBITDA margin, LFL (SEK million)

Mobile end-user service revenue, LFL (SEK million)

358 377 390 404 428

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

50

100

150

200

250

300

350

400

450583664

513 540 575

Q3 15 Q4 15 Q1 16 Q2 16 Q3 160

100

200

300

400

500

600

700

+20%-1% +204%

26

-35

13

44

794%-5%

3%8%

14%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16-40

-20

0

20

40

60

80

100

120

140

80%

Closing Q1 16 Q2 16 Q3 16

Plan Progress

Kazakhstan – Strong performance4G outdoor population coverage JV integration

Q3 Highlights

11

Customer base, LFL(thousands)

LFL is pro forma for Altel

– 4G outdoor population coverage remains a competitive advantage

– Customer base continues to grow year-on-year, despite competitive pressure

– JV integration plan on track

5 7676 384

Q3 15 Q3 16

+11%

30%

70%

Q4 16 E Q3 15

Tele2

Kcell / Beeline

80%

Challenger program on track

Simplify% of products harmonized

on shared platforms

Discipline% of spend strategically

sourced & procured

Consolidate% of reduction in IT OpEx

as share of revenue

Transform% of staff in

Shared Operations

2016 target 2018 targetBaseline

30% 40% 60%

40% 75% 80%

0% 5% 20%

12% 18% 25%

Key progress areas in the quarter

Data analytics and optimized marketing spend driving improved ROI

Transfer of ~90 Dutch FTEs to Indian partner started this quarter, bringing total to ~200 FTEs

Productivity improvement program announced in Sweden, with an estimated reduction of 225 FTEs

Product simplification initiative progressing. More than 900 products closed year-to-date

12

Financial Overview

13

3 422

3 641

3933

55

78-7

Q3 15 Sweden Baltics NL KZ RoW Oth Q3 16

Mobile end-user service revenue

Tele2 Group(SEK million)

14

3 4223 282 3 168

3 3503 641

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

+6%

Development per market(SEK million)

21

1 599 1 56254 24

-124

29 12

-32

Q3 15 Sweden Baltics NL KZ RoW Oth Q3 16

EBITDA

Tele2 Group(SEK million)

15

-2%

Development per market(SEK million)

1 599

1 3371 226

1 087

1 562

23,5%19,3% 19,0%

16,3%22,4%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

0

200

400

600

800

1000

1200

1400

1600

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

EBITDA margin

CAPEX

Tele2 Group(SEK million)

16

-16%

Development per market (SEK million)

932

779

51

-15

-139

11

-63

2

Q3 15 Sweden Baltics NL KZ RoW Oth Q3 16

932

1 223 1 154

820 779

13,7%17,6% 17,9%

12,3% 11,2%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

0

200

400

600

800

1000

1200

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

CAPEX / Net sales

Free cash flowTotal operations

Tele2 Group(SEK million)

Development (SEK million)

Free cash flow = Cash flow from operating activities and CAPEX paid17

169

-291

-154

139

838

-500

-300

-100

100

300

500

700

900

Q3 15Q4 15 Q1 16

Q2 16 Q3 16

169

838

139

-37

51

-46

70649

-54

Q3 15 EBITDA Interest etc TaxesWorkingcapital CAPEX

One-offitems Q3 16+396%

Debt position and financial leverageEconomic net debt to EBITDA 12 m rolling

18

9,8 9,9 9,4

11,7 11,0

0,00

0,25

0,50

0,75

1,00

1,25

1,50

1,75

2,00

2,25

0,0

2,5

5,0

7,5

10,0

12,5

Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016

Economic net debt Economic net debt to EBITDA

Economic net debt is defined as net debt excluding liabilities from Kazakhtelecom and liabilities guaranteed by Kazakhtelecom

2,13

LeverageSEK billion

Rights Issue

19

Background

• Acquisition of TDC Sweden announced on 21st June to strengthen our B2B position in Sweden (not conditional upon equity financing)

• In conjunction, the company announced the intention to raise equity through a Rights issue

• EGM to be held on 27th October

Equity financing

• Financing through equity issue with preferential rights for existing shareholders to maintain the Company’s financial strength

• Tele2’s largest shareholder, Kinnevik, has committed to subscribe for its rights

• Nordea Bank AB has entered into a standby underwriting commitment for the remaining portion

Financial guidance 2016

* Based on LFL which is constant currencies and pro forma for Altel20

Net sales(SEK billion)

EBITDA(SEK billion)

26 – 27

4.6 – 5.0

CAPEX(SEK billion) 3.7 – 4.1

Mobile end-user service revenue

Mid-single digit % growth*

Summary

21

Key priorities moving forward

Sustain momentum in Sweden

Continue to monetize 4G investments

Continued integration of Altel in Kazakhstan

Execute on Challenger Program

Closing of TDC

22

Winning People & Culture

Value Champion

Step-Change Productivity

Focused Technology

Choices

Tele2’s Way2Win

The Tele2 Way

We are challengers, fast-movers and will always offer our customers what they need for less

We will be champions of customer value in everything we do

How we win

Focused Technology

Choices

Value Champion

Step-Change Productivity

Winning People & Culture

Vision

Mission

Where we play

Mobile access

Our current footprint

Residential and Business

IoT

Responsible Challenger

23

THEEND