TeliaSonera  Acquisition of  MCT Corp. Coscom in Uzbekistan Indigo and Somoncom in Tajikistan Roshan in Afghanistan
<ul><li>TeliaSonera   w i ll  be the leading operator in Central Asia n markets   </li></ul><ul><ul><li>Now: Uzbekistan, T...
Acquisition  Cost Venture Holdings Local Ventures MCT Dev. Corp. Delaware Corp. 100% Coscom Telecom Dev. Co. Afghanistan B...
Acquired Companies (as of May 31, 2007) GSM 900 /  1800 Mhz GSM 900 /1800 3G-UMTS GSM 900 / 1800 3G-UMTS GSM 900/ 1800 Mhz...
New Mobile Markets Mobile market consists of  four  operators , including three GSM and one CDMA   operators. Mobile marke...
Coscom, Uzbekistan <ul><li>First GSM operator in Central Asia </li></ul><ul><li>Leader in serving Uzbekistan corporate seg...
Somoncom , Tajikistan <ul><li>First GSM operator in Tajikistan </li></ul><ul><li>Leader in the North Tajikistan </li></ul>...
Indigo , Tajikistan <ul><li>Seamless network with Somoncom </li></ul><ul><li>40% corporate customer share </li></ul><ul><l...
Roshan, Afghanistan <ul><li>The leading mobile operator in Afghanistan </li></ul><ul><li>Strong network coverage </li></ul...
Corporate Social Responsibil ity <ul><li>TeliaSonera has  a transparent  way of working in CIS countries  </li></ul><ul><u...
The MCT acquisition underlines TeliaSonera’s strategy in  Eurasia <ul><ul><li>To be the leading Eurasian mobile operator <...
Appendix Country information
Appendix 1. Overview of the New  Countries   Source: CIA World Factbook 8  prov i ders  /   3 0,000 internet users 12  pro...
Appendix 2. New Countries- Demographics Source: CIA World Factbook 60% 51% 53% Working P opulation : Sunni Muslim 80%, Shi...
Source: CIA World Factbook Appendix 3. New Countries-Economic Indicators Service s:   38 %   Agriculture :  3 8 %   I ndus...
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    1. 1. TeliaSonera Acquisition of MCT Corp. Coscom in Uzbekistan Indigo and Somoncom in Tajikistan Roshan in Afghanistan
    2. 2. <ul><li>TeliaSonera w i ll be the leading operator in Central Asia n markets </li></ul><ul><ul><li>Now: Uzbekistan, Tajikistan and Afghanistan </li></ul></ul><ul><ul><li>Existing via Fintur: Kazakhstan, Azerbaijan , Georgia and Moldova </li></ul></ul><ul><ul><li>Existing direct & unconsolidated: Turkey (incl. Ukraine indirectly) and Russia (incl. Tajikistan indirectly) </li></ul></ul><ul><li>Attractive Growth Opportunity in terms of Addressable Market </li></ul><ul><ul><li>10% -20% mobile penetration </li></ul></ul><ul><ul><li>Less than 10% Fixed Line Penetration  wireless is attractive </li></ul></ul>Strategic Acquisition Rationale <ul><li>Natural Addition to TeliaSonera’s Eurasian Footprint </li></ul><ul><ul><li>Uzbekistan, Tajikistan and Afghanistan complement current map in Central Asia </li></ul></ul><ul><ul><li>Significant economic/cultural ties between Kazakhstan, Azerbaijan, Tajikistan and Uzbekistan </li></ul></ul><ul><li>Company and Shareholders Honoring International Business Practices </li></ul><ul><ul><li>Company’s operations developed by international practices: audited, subject to US rules </li></ul></ul>Turkcell MCT Fintur Megafon Yoigo TeliaSonera (Scandinavia, Baltics)
    3. 3. Acquisition Cost Venture Holdings Local Ventures MCT Dev. Corp. Delaware Corp. 100% Coscom Telecom Dev. Co. Afghanistan B.V. 12.25% Indigo-Tajikistan 100% CATD B.V. Netherlands 60% Somoncom 99% Roshan 100% MCT Telecom Corp. Delaware Corp. 100% Coscom 99.97% Sonera Holding BV 100% TeliaSonera 100% <ul><li>Acquisition of 100% of MCT Corp for a enterprise value of approximately SEK 2.0 billion (USD 300 million) holding interest in four Eurasian mobile operators: </li></ul><ul><ul><li>99.97% interest in Uzbek-American Joint Venture “C oscom ” LLC (Coscom) in Uzbekistan </li></ul></ul><ul><ul><li>60% interest in CJSC “Indigo-Tajikistan” (Indigo-Tajikistan) in Tajikistan and </li></ul></ul><ul><ul><li>59.4% in CJSC Joint Venture “Somoncom” (Somoncom) in Tajikistan </li></ul></ul><ul><ul><li>12.25% interest in “Telecom Development Company Afghanistan Limited” (Roshan) in Afghanistan </li></ul></ul>Management and Financing Companies 100% MCT Corp. Delaware Corporation
    4. 4. Acquired Companies (as of May 31, 2007) GSM 900 / 1800 Mhz GSM 900 /1800 3G-UMTS GSM 900 / 1800 3G-UMTS GSM 900/ 1800 Mhz Standard #1 - - #2 #3 Market Position (E) 50% 15 % 1 2 % 2 7 % 11% Market Share (E) 35% 66.5 191.3 1, 300,300 12.25% Roshan / Afghanistan 51% 6.8 13.3 205 , 249 59.40% Somoncom 49% 6.9 14.0 1 71 , 943 60.00% Indigo 50% 13.7 27.3 377,192 Total Tajikistan 22% 5.8 26.3 392 , 929 99.97% Coscom/Uzbekistan EBITDA Margin EBITDA USD m Revenues USD m 2006 Subscribers MCT Interest Company
    5. 5. New Mobile Markets Mobile market consists of four operators , including three GSM and one CDMA operators. Mobile market consists of nine operators ; 5 GSM/UMTS (2 belong to MCT) 4 CDMA Five GSM licenses, two of which were to commence operations in 2007. * Indigo and Somoncom combined Babilon Mobile, ~ 35% Indigo * , ~ 27% MLT (MegaFon), ~ 1 2 % Takom (Beeline), ~ 13% Other (CDMA), ~ 13% As of May 2007E Market Share of Mobile Operators As of May 2007E Market Share of Mobile Operators Uzdunrobita (MTS), ~ 52% Unitel (Beeline), ~ 33% Coscom, ~ 11% Perfectum (CDMA), ~ 4% Market Share of Mobile Operators As of May 2007E Roshan, ~ 50% AWCC, ~ 38 % Areeba, ~ 12 % Afghanistan Tajikistan Uzbekistan
    6. 6. Coscom, Uzbekistan <ul><li>First GSM operator in Central Asia </li></ul><ul><li>Leader in serving Uzbekistan corporate segment </li></ul><ul><li>High quality customer service </li></ul><ul><li>Well established distribution network in main cities </li></ul><ul><li>ISO 2001 quality certification </li></ul>20% territory base, 66% population base Coverage 99.97% MCT Interest # 3 Position in the Market 1997 Network Launch USD 7.4 2006 ARPU (monthly) GSM 900/1800 Mhz Standard Real ( P repaid) Coscom ( P ostpaid) Brand 63% Prepaid / Total Subs (approx.) 11% Market Share 3 92 , 929 Subscribers (as of May 31, 20 07) 22% EBITDA Margin (2006YE) USD 5.8 million EBITDA (2006YE) USD 26.3 million Revenues (2006YE)
    7. 7. Somoncom , Tajikistan <ul><li>First GSM operator in Tajikistan </li></ul><ul><li>Leader in the North Tajikistan </li></ul><ul><li>Seamless network with Indigo </li></ul><ul><li>Strong Coverage Area </li></ul><ul><li>Strong Distribution N etwork </li></ul>All cities in the North regions, (90% of population jointly with Indigo ) Coverage 59.4% MCT Interest # 2 Position in the Market (Combined with Indigo ) GSM:1999 in Khujand, center of the noth regions. UMTS: 2006 license received and trial launched Network Launch USD 9 2006 ARPU (monthly) GSM 900 / 1800 Mhz 3G-UMTS Standard Salom & Real ( P repaid) Indigo ( P ostpaid) Brand 58% Prepaid / Total Subs (approx.) 15 % Market Share 205 , 249 Subscribers (as of May 31, 20 07) 51% EBITDA Margin (2006YE) USD 6.8 million EBITDA (2006YE) USD 13.3 million Revenues (2006YE)
    8. 8. Indigo , Tajikistan <ul><li>Seamless network with Somoncom </li></ul><ul><li>40% corporate customer share </li></ul><ul><li>Strong Coverage Area </li></ul>All cities in the South regions (90% of population jointly with Somoncom ) Coverage 60% MCT Interest # 2 Position in the Market (Combined with Somoncom) GSM: 2001 in Dushanbe to cover South regions of Tajikistan. UMTS: 2006 Network Launch USD 12.2 2006 ARPU (monthly) GSM 900 / 1800 Mhz 3G-UMTS Standard Salom & Real ( P repaid) Indigo ( P ostpaid) Brand 20% Prepaid / Total Subs (approx.) 12 % Market Share 1 71 , 943 Subscribers (as of May 31, 20 07) 49% EBITDA Margin (2006YE) USD 6.9 million EBITDA (2006YE) USD 14.0 million Revenues (2006YE)
    9. 9. Roshan, Afghanistan <ul><li>The leading mobile operator in Afghanistan </li></ul><ul><li>Strong network coverage </li></ul><ul><li>Strong brand </li></ul><ul><li>Strong management </li></ul>12.25% MCT Interest # 1 Position in the Market 2003 Network Launch USD 21.7 2006 ARPU (monthly) GSM 900/1800 Mhz Standard Roshan ( P repaid) Brand 100% Prepaid / Total Subs 50% Market Share 1,300 , 300 Subscribers (as of May 31, 20 07) 35% EBITDA Margin (2006YE) USD 66.5 million EBITDA (2006YE) USD 191.3 million Revenues (2006YE)
    10. 10. Corporate Social Responsibil ity <ul><li>TeliaSonera has a transparent way of working in CIS countries </li></ul><ul><ul><li>We are commit ted to our Code of Ethics & Conduct </li></ul></ul><ul><ul><li>We will ensure solid internal control environment </li></ul></ul><ul><li>TeliaSonera recognizes its corporate social respon s ibilities and will keep acting as a good citizen in the new markets </li></ul>
    11. 11. The MCT acquisition underlines TeliaSonera’s strategy in Eurasia <ul><ul><li>To be the leading Eurasian mobile operator </li></ul></ul><ul><ul><li>Create shareholder value by considering all possible value enhancing alternatives </li></ul></ul><ul><ul><li>Combine Eastern positions to create stronger platform for growth </li></ul></ul><ul><ul><li>Evaluate new acquisition opportunities </li></ul></ul><ul><ul><li>Continue the profitable growth within the current footprint </li></ul></ul>
    12. 12. Appendix Country information
    13. 13. Appendix 1. Overview of the New Countries Source: CIA World Factbook 8 prov i ders / 3 0,000 internet users 12 prov i ders / 6 ,000 internet users 425 prov i ders / 1,0 80,000 internet users Internet D evelopment: 110 ,000 / 0.4 % 250,000 / 3.8% 1.98 million / 7.4% Fixed L ine Subscribers and T eledensity: 2 .6 million / 8 % 1 .6 million / 2 0% 3 .6 million / 1 3 % Mobile S ubscribers and P enetration R ates (May 07E) USD 450 million / 4.3% USD 170 million / 7 % USD 460 million / 1.7% Mobile Service Revenues (07E) & ~ as % of GD P : USD 8.8 billion (2006 est.) USD 2. 1 billion (2006 est.) USD 10.78 billion (2006 est.) GDP: 647,500 sq km 143,100 sq km 450,000 sq km Area: 5 GSM licenses, 2 of which were to commence operations in 2007. 9 operators ; 5 GSM/UMTS (2 belong to MCT) 4 CDMA 4 operators , including 3 GSM and 1 CDMA operators. # of Operators 31 . 9 million (July 2007) 7.1 million (July 2007) 27.8 million (July 2007) P opulation: Afghanistan Tajikistan Uzbekistan Country:
    14. 14. Appendix 2. New Countries- Demographics Source: CIA World Factbook 60% 51% 53% Working P opulation : Sunni Muslim 80%, Shi'a Muslim 19%, other 1 % Sunni Muslim 85%, Shi'a Muslim 5%, other 10% Muslim 88 %, Eastern Orthodox 9 %, other 3 % Religions: Pashtun 42%, Tajik 27%, Hazara 9%, Uzbek 9%, Aimak 4%, Turkmen 3%, Baloch 2%, other 4% Tajik 79.9%, Uzbek 15.3%, Russian 1.1%, Kyrgyz 1.1%, other 2.6% Uzbek 80%, Russian 5.5%, Tajik 5%, Kazakh 3%, Karakalpak 2.5%, Tatar 1.5%, other 2.5% Ethnic Distribution: 51% male, 49% fe male 5 0% female, 50 % male 5 0.4 % female, 49 .6 % male Gender D istribution: 0-14 years: 44.6 % 15-64 years: 53 % 65 years and over: 2.4 % Median age: 17 .6 0-14 years: 3 7 .9% 15-64 years: 57.4 % 65 years and over: 4.8% Median age: 2 0 0-14 years: 32.9% 15-64 years: 62.3% 65 years and over: 4.8% Median age: 2 2.7 Age D istribution: Afghanistan Tajikistan Uzbekistan Country:
    15. 15. Source: CIA World Factbook Appendix 3. New Countries-Economic Indicators Service s: 38 % Agriculture : 3 8 % I ndustry : 2 4 % S ervices: 4 8.8 % A griculture: 22.7 % I ndustry: 2 8. 5% S ervices: 43.2% A griculture: 31.1% I ndustry: 25.7% GDP by sector: 4.3% 7 % 1.7% Mobile Service Revenues/GDP: The many legislative changes proposed are anticipated to greatly improve the investment climate in Afghanistan . Continued privatization of medium and large state-owned enterprises could increase productivity . In 2006, substantial infrastructure development credits to improve its roads and electricity transmission network. To help increase north-south trade, the United States is constructing a USD 36 million bridge linking Tajikistan and Afghanistan. Potential investment by Russia and China in Uzbekistan's gas and oil industry may boost growth prospects. Major Investors: 16.3 % 7. 5 % 7.6% Inflation: USD 800 (PPP) USD 1,300 (PPP) USD 2,000 (PPP) GDP/capita (PPP) : USD 8.8 billion (2006 est.) USD 2. 1 billion (2006 est.) USD 10.78 billion (2006 est.) GDP: Afghanistan Tajikistan Uzbekistan Country:

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