cmd2011 - anders olsson - commercial group

Capital Markets Day 2011

Commercial GroupAnders Olsson

Sep 20112 Capital Markets Day 2011

Increased demand of ICT, centrex and

cloud solutions for SME

Explosion of connected devices and

separation of access and services

Increasing demand for data

Less underlying growth…

Trends Affecting our Commercial Strategy and Product Roadmap


Increasing demand for dataCapitalize on growth in data

Implications on our Commercial Strategy and Product Roadmap






4

Serve our customers’ demand for data with cost-efficient, high-speed, reliable networks

Provide customers with a selective portfolio of smartphones and connected devices

Give customers control and drive a higher return on investment by improving pricing

Grow Mobile Data

6


separation of access and servicesOffer the most valuable access products

and selectively explore new business models






7

Proven new products

New business models

Selectively Explore New Business Models

Deliver proven new products

Core communication solutions

Deliver affordable, easy to use core communication solutions

Be selective in exploring new business models

9


cloud solutions for SME Increased focus on SME






10

Implement growth measures to drive the SME segment

• Selected add-on services across our markets

Explore “One-stop-shop” concept

• Delivering outsourced communication solutions

• Delivering selected cloud solutions through partnerships

Increase Business Market Share

Tele28%

Mobile B2B Market Share 2010

12

Less underlying growth…From volume focus to value focus







13

• Historically single minded proposition of “price leader”

• Markets are maturing and Tele2’s commercial strategy is shifting from volume to value

• Evolution from the purely price driven consumers and move to a proposition based on value

Evolution from Discounter to Best Deal


Tele2 Sales Channels

Indirect Sales Channels is the main channel for acquiring customers

We focus our sales channel mix on the channels were we have the highest customer lifetime value

Focus channels are Web and the Tele2 Branded Shops

Indirect

chan

nels

Tele2

Branded

Shops

Direct

Sales

Force

Telem

arketi

ng

Other Intak

eW

eb0%

10%

20%

30%

40%

50%

60%

Sales Channel Distribution

Indirect

chan

nels

Tele2

Branded

Shops

Direct

Sales

Force

Telem

arketi

ng

Other Intak

eW

eb0%

10%

20%

30%

40%

50%

60%


Indirect

chan

nels

Tele2

Branded

Shops

Direct

Sales

Force

Telem

arketi

ng

Other Intak

eW

eb0%

10%

20%

30%

40%

50%

60%



Tele2 Branded Shops Deliver Valuable Customers

Western Shop Concept Eastern Shop Concept

KazakhstanOwn: 83rd party: 3

High customer lifetime value from Tele2 branded shops

We operate the Tele2 branded shops either ourselves or together with third parties

Continued rollout of the successful Tele2 branded shop concept

LatviaOwn: 373rd party: 15

RussiaOwn: 03rd party: 450

SwedenOwn: 203rd party: 0

EstoniaOwn: 233rd party: 10

LithuaniaOwn: 03rd party: 109

CroatiaOwn: 03rd party: 36


From Volume to Customer Value Focus

Change from volume targets to value targets

• Instead of churn rate we will focus on lost revenues

• Within sales we will focus on customer lifetime value

Efficient and targeted offerings• Leverage on our customer insight

activities• Segmented offers with the right value

deal to the right customer

Changes in customer related processes

• Insert a constant value focus• Integrate customer feedback

By decreasing the churn value (as a percentage of revenue) SEK 3 bn will be

saved in 4 years, compared to 2010 years churn value levels.

2010 2011 2012 2013 20140%

5%

10%

15%

20%

25%

30%

35%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

31% 29% 29% 27% 25%

Revenue Savings by Churn Reduction (Mob. Residential)

Customer Saved Revenue, thousand SEKChurn value

SEK Thousand


• Launch new access products and improve capabilities to sell and charge data

• Offer the most valuable access products and selectively explore new business models

• Increased focus on SME

• From volume to value focus

Conclusion

cmd2011 - anders olsson - commercial group

Investor Relations