FIRSTQUARTER 2015April 21st, 2015

Tele2 AB

Highlights from the quarter

Winning People & Culture

Value Champion

Step-Change Productivity

Focused Technology

Choices

• Transparency International Sweden ranked Tele2 number one out of the largest Sweden based companies for transparency in corporate reporting.

• 4G network in the Netherlands now at 70 percent population coverage.• Network swap project announced in Croatia.

• Data monetization continues in Sweden following launch of Tele2.0.• Substantial increase in GB data offer, driving increased ASPU.

• The Challenger Program will ramp up over the next 3 years and is expected to deliver full benefits of SEK 1 billion per annum from 2018 onwards.

2

Monetization of data continuesYear-on-year growth, Tele2 Group

Mobile end-user service revenue

Mobile EBITDA Average data usage per subscriber

+10% +10% ~40%

3

Continuous momentum in mobile end-user service revenue Year-on-year growth for mobile end-user service revenue, Tele2 Group

CAGR: 6.5%

5.7%

7.9%

6.5% 6.5%

8.7%

6.7% 6.7%

8.1%

6.6%

9.6%

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

4

Kazakhstan: +46%

Latvia: +7%

Lithuania: +7%

Sweden: +5%

Netherlands: +12%

Austria: +3%*

Croatia: +8%

Germany: +12%

Estonia: +7%

Market year-on-year development

* Total net sales

Mobile end-user service revenue Data growth (MNO networks)

~50%

SESE

CEE

CEEKZ

KZ

Q1 14 Q1 15

5

Tele2 Sweden

825976

27% 31%

-10%

10%

30%

50%

70%

90%

0

300

600

900

1,200

Q1 14 Q1 15

3,021 3,130

0

1,000

2,000

3,000

4,000

Q1 14 Q1 15

Net sales(SEK million)

EBITDA and EBITDA margin(SEK million)

Strong mobile YoY development

– Overall: During the quarter Tele2 Sweden launched ‘Big Buckets’ to give costumers better value and encourage further data usage. Early signs indicate a positive development in terms of ASPU and customer satisfaction.

– Consumer: We are utilizing our dual-brand strategy and early signs show good development in consideration and NPS in our target groups along with strong development in customer satisfaction..

– Business: Strong mobile revenue growth of three percent, driven by the Large Enterprise segment. New contracts were signed with Husqvarna and HiFab, and existing contracts with Kriminalvården and Volvo were expanded.

Q1 Highlights

+4% +18% +5%Mobile end-user service revenue

+20%Mobile

EBITDA

6

Increasing ASPU

Top-ups continue in our customer base… …which together with ‘Big Buckets’ continue to drive ASPU growth

>5GB: 30% 20

27

4044

38

Q114 Q214 Q314 Q414 Q115

Top-up development Tele2 Residential (Revenue, SEK million)

Postpaid TOTAL MBB TOTAL

ASPU developmentTele2 Residential Postpaid (small screen)

+15%

Intake mixTele2 Residential Postpaid (small screen)

7

Tele2 Baltics

209 231

31% 32%

0%

20%

40%

60%

80%

050

100150200250300350

Q1 14 Q1 15

671 719

0

200

400

600

800

Q1 14 Q1 15

Net sales(SEK million)

EBITDA and EBITDA margin(SEK million)

Mobile end-user service revenue (SEK million)

– Revenue decline stopped in the quarter, with strong mobile end-user service revenue development at 7 percent.

– As the first player in the market, Tele2 Latvia has launched a pan-Baltic unlimited voice and SMS tariff.

– 4G network launched in Lithuania, with a current 70 percent population coverage, complementing our existing network.

– Tele2 Estonia successfully continued the expansion into the international data carrier market with new important customer intake.

– Continued focus on aggressive LTE rollout in all countries.

Q1 Highlights

415 444 474 447 444

0100200300400500600

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

+7%+11%+7%

8

Tele2 Netherlands

257

141

19%10%

0%10%20%30%40%50%60%

0

50

100

150

200

250

300

Q1 14 Q1 15

1,320 1,402

0250500750

1,0001,2501,500

Q1 14 Q1 15

Net sales(SEK million)

EBITDA and EBITDA margin(SEK million)

Q1 Highlights– 14th consecutive quarter of growth in the mobile customer base.

– 4G network opened on the 1st of January meeting the obligations of the 4G license. Tele2 now provides extensive coverage in the Randstad area (including Amsterdam, Rotterdam, The Hague and Utrecht).

– Commenced the transfer of customers onto our 4G network, following a thorough period of positive customer network testing.

– EBITDA was impacted by expansion, network and increased national roaming costs.

-45% +6%

Mobile customers Tele2 NL(Thousands)

680700720740760780800820840860

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

9

Tele2 outdoor 4G coverage, April 1st 2015

– Transfer of existing customers onto the 4G network well underway.

– Current outdoor population coverage estimated to be over 70%.

– Remain on-track for nationwide outdoor population coverage by Q1 2016.

10

Tele2 Kazakhstan

1 00% 0% 0%

100%200%300%400%500%600%700%

0Q1 14 Q1 15

294

399

0

100

200

300

400

500

Q1 14 Q1 15

– Highly competitive situation with both Tele2 and Altel offering bucket tariff plans at much lower prices than K-Cell or Beeline.

– Despite the competitiveness of the market. Tele2 has created a positive momentum – our bucket tariff plan, improved distribution and brand awareness are yielding results.

– Net intake very strong at 429,000. Positive monthly net intake trend since October 2014.

Net sales(SEK million)

EBITDA and EBITDA margin(SEK million)

Q1 Highlights

Customer development

+36%

Net intake (thousands)

% subscribers who stop using services 1 month after acquisition

10%

15%

20%

25%

30%

35%

020406080

100120140160180

Jul Aug Sep Oct Nov Dec Jan Feb Mar

2014 2015

11

Financial Overview

Financial highlights

Mobile end-user service revenue(SEK billion)

3.18

EBITDA(SEK billion) 1.43

CAPEX(SEK billion) 0.94

Net sales(SEK billion) 6.51

Q1 2015 Trend

+10%

+5%

+32%

+6%

2.90

1.36

0.71

6.15

Q1 2014

13

Mobile end-user service revenue

Tele2 Group(SEK million)

+10%

Development per market(SEK million)

3,2052,904

3,0943,252 3,205 3,184

0

1,000

2,000

3,000

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

2,904

3,184

9329

32

9927

2,700

2,800

2,900

3,000

3,100

3,200

3,300

Q1 14 Sweden Baltics Netherlands Kazahkstan RoW Q1 15

14

EBITDA

Tele2 Group(SEK million)

1,412

1,3621,470

1,682

1,412 1,428

22.1% 23.2%25.5%

20.5%21.9%

10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15EBITDA margin

1,362

1,428

15122

-116 -1

10

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

Q1 14 Sweden Baltics Netherlands Kazahkstan RoW Q1 15

+5%

Development per market(SEK million)

15

CAPEX

Tele2 Group(SEK million)

Development per market(SEK million)

709

850 861

1,030938

11.5%13.4% 13.1%

15.0% 14.4%

5%7%9%11%13%15%17%19%21%23%25%27%29%

0

200

400

600

800

1,000

1,200

1,400

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

CAPEX / Net sales

709

938

39

-23

142

53 18

500

600

700

800

900

1,000

1,100

1,200

Q1 14 Sweden Baltics Netherlands Kazahkstan RoW Q1 15

+32%

16

Free cash flowTotal operations

-555

274

475

238

-96

10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%

-600

-400

-200

0

200

400

600

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Tele2 Group(SEK million)

Development (SEK million)

+83%

-555

-96

36

-14410

48077

-700-600-500-400-300-200-100

0Q1 14 EBITDA Financing Taxes

Workingcapital CAPEX Q1 15

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

Q1 14 Q1 15

17

Debt position and ratioPro forma net debt / EBITDA 12 m rollingSEK billion / Ratio

6.88.3 7.9 7.9

3.3

0.0 0.0 0.0 6.6

0.000.250.500.751.001.251.501.752.00

0.0

2.5

5.0

7.5

10.0

12.5

15.0

Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015

Pro forma net debt Dividend, proposed Pro forma net debt to EBITDA (inc proposed dividend Q1 15)

18

The Challenger Program

Ramp-up of indicative* costs and benefits over 4 years

Productivity improvement: 1 BSEK (5%)

*Indicative program benefits and costs. Analysis phase will identify and validate total Opex, Capex and Revenue benefits. Baseline: Forecast FY 201419

Momentum is building up

2015 20162014

We will come back to the market with more details at Q2 reporting on July 21st 2015. From then on we will report on progress quarterly until full benefits have been realized

Q2

2017 2018

Investment phase

Benefits phase

Q120

Q1 2015 Summary

21

Q1 2015 in short and key priorities moving forward

- Continued data monetization

- Getting ready for 4G launch in Netherlands and Baltics

- Executing on the Challenger Program

Winning People & Culture

Value Champion

Step-Change Productivity

Focused Technology

Choices

22

Tele2’s Way2Win

The Tele2 Way

Where we focus

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

Mobile access is our core business

Europe and Eurasia are our

markets

Residential and Business

How we win

Focused Technology

Choices

Value Champion

Step-Change Productivity

Winning People & Culture

Vision

Mission

23

THEEND