1. Capital Markets Day
Inessa Galaktionova, Chief Commercial Officer Tele2 Russia
Svetlana Skvortsova, Strategy Director Tele2 Russia
December 12, 2012

2. Net sales EBITDA CapEx
Russia 30% 42% 32%
• Continue to grow customer base and
maximize the 2G opportunity
• Evaluate possibilities to expand
carefully through new licenses as well
as by complementary acquisitions
• Make progress on technology neutrality
63 Tele2 Capital Markets Day 2012 * Figures represent contribution to group; YTD Q3 2012

3. What has happened since last CMD?
64 Tele2 Capital Markets Day 2012

4. Market share development
SUBSCRIBERS MARKET SHARE REVENUE MARKET SHARE
PERCENT PERCENT
40% 35%
35% 30%
30%
25%
25%
20%
20%
15% 9.3% 9.5% 9.7% 15%
8.4% 9.1% 7.0% 7.0% 7.1%
5.6% 7.0% 10% 6.0% 6.7%
10% 4.3% 5.0% 3.8% 4.2% 4.9%
2.7%
5% 5%
0% 0%
2006 2007 2008 2009 2010 2011 Q1-12 Q2-12 Q3-12 2006 2007 2008 2009 2010 2011 Q1-12 Q2-12 Q3-12
MegaFon Tele2
MTS Vimpelcom
65 Tele2 Capital Markets Day 2012 Source: AC&M Consulting, Company data

5. Maintained ARPU expansion
BLENDED ARPU REPORTED APPM
RUB RUB
400 1.50
350
300
220 223 218 229 234 1.00
250 204 201
200
150
0.91
0.89
0.89
0.96
0.87
0.50
100
50
0 0.00
2008 2009 2010 2011 Q1-12 Q2-12 Q3-12 3Q11 4Q11 1Q12 2Q12 3Q12
MegaFon Tele2
MTS Vimpelcom
66 Tele2 Capital Markets Day 2012 Source: AC&M Consulting, Company data

6. Margin improvement and CAPEX slow-down
EBITDA MARGIN CAPEX/Revenue
PERCENT PERCENT
60%
39% 37% 38%
40% 34% 35% 35%
32%
20% 22%
20%
15%
0% 9% 12%
2008 2009 2010 2011 Q1-12 Q2-12 Q3-12 3Q11 4Q11 1Q12 2Q12 3Q12
MegaFon Tele2
MTS Vimpelcom
67 Tele2 Capital Markets Day 2012 Source: AC&M Consulting, Company data

7. Historical Data KPI Benchmarking vs Market
Consumption (Mb per User) Internet Users penetration
700 25 45%
600 39%
RHS 20 40% 36% 37% 37% 37% 37% 36%
500 34% 34%
400 15 35%
37% 37% 37%
300 10 30% 34% 35%
200 32% 32%
LHS 5 25%
30%
100 27%
0 0 20%
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Market Mb per user Tele2 Mb per user MTS Internet Users Tele2 Internet Users
USB modem sales (‘000) Data ARPU
4,000 150 122 120 125
107 117 114
3,110 96 99 106
2,890 2,986
3,000 2,694 100
2,152 2,342
2,000 1,497 1,380 1,560 50
1,000
0
0 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Market Data ARPU, RUB Tele2 Data ARPU
68 Tele2 Capital Markets Day 2012 Source: AC&M Consulting, Corporate Reports

8. Tele2 data capabilities
VAS Usage Subs that use VAS
Satisfaction with VAS usage
40% 100%
20% 90%
• So far existing data products meet
91% 89% 89% customer expectations
88%
• Usability is the major focus
0% 80%
Tele2 MTS Beeline Megafon • Absence of MBB will not be critical in
Smartphone Penetration approx. 2 years
total Russia • >90% of data usage is social
80% networks, where EDGE speed is
Forecast
60%
enough for good user experience
40%
20%
0%
2010 2011 2012F 2013F 2014F 2015F 2016F
Source: MA FDFgroup, 2Q11-1Q12, Tele2 Regions, Survey
69 Tele2 Capital Markets Day 2012 Analysis Mason, Wireless Intelligence

9. Distribution strategy
Life Time Value 2012 (RUR) GI split by channels
100% 2% 2%
7,000 18%
30% 23%
6,000
18% 20%
5,000 14%
50% 4% 8% 17%
4,000
21% 17% 11%
3,000
2,000 30% 31% 32%
1,000 0%
0 AC 2010 AC 2011 AC 2012
Alternative Monobrand Federal Monobrand Local Monobrand On-line Monobrands Monobrand stands On-line
dealers Stands telecom Modules telecom Shops Federal telecom dealers Alternative dealers Local telecom dealers
dealer dealer B2B
• Monobrand channel development
• Increasing efficiency of local alternative
• B2B and online channels development (higher ARPU and lowest churn)
• Balance between Federal telecom channels and effective alternative
distribution channels
70 Tele2 Capital Markets Day 2012

10. Distribution strategy – Own shops
Tele2 Beeline Megafon MTS
44% GI 42% GI >60% GI 49% GI
0% Own Network 12% Own Network 44% Own Network 67% Own Network
100% Agency Network 88% Agency Network 56% Agency Network 33% Agency Network
Total: >400 Total: >2000 Total: >3000 Total: >4000
Tele2 Own Shops
• Franchising business model in all rebranded shops
• Full range of products and services
• Average GI increases by 15%
• Higher ARPU, LTV and lower churn
71 Tele2 Capital Markets Day 2012

11. Customer data
CUSTOMER SERVICE SATISFACTION OVERALL
Top-3 on 10 point scale 89%
88% • Tele2’s own call centers
86% demonstrate highest customer
85%
85% satisfaction
• Operational excellence based on
COPC customer service
standards
• World-class service program
across Russian regions
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
TELE2 MTS Beeline Megafone
72 Tele2 Capital Markets Day 2012 Source: Mobile Monitoring

12. Clear Business Goals Through Evolution
Defender
Challenger
Newcomer
Region’s position Market Share EBITDA No. of regions Targets
Leader in the region  35% Retention,
Defender 9
(avg. 46%) (avg. 47%) ARPU protection
Challenger  20% < 35% Subscribers
21
(avg. 31%) (avg. 31%) acquisition, retention
Newcomer < 20% Subscribers
<0 8
(avg. 17%) acquisition
73 Tele2 Capital Markets Day 2012

13. Old Regions: Sustainable Growth of ARPU and
Subscriber Base
Net Intake (‘000 Subs) Subscriber Base (‘000 Subs)
+5% Q3’12
600 20,000 vs Q3’11
500
15,000
400
300 10,000
200 5,000
100
0 0
Annualized Churn ARPU (SEK) +3% Q3’12
vs Q3’11
50%
40% 54
30%
20% 49
10%
0% 44
74 Tele2 Capital Markets Day 2012

14. Old Regions: Solid Profitability Profile
Revenue (SEK ‘000) +8% Q3’12 EBITDA (SEK ‘000) and EBITDA % +3% Q3’12
vs Q3’11 vs Q3’11
3,000 1,400 60%
2,500 1,200 50%
2,000 1,000 40%
800
1,500 30%
600
1,000 20%
400
500 200 10%
0 0 0%
Market share - Subscribers (Sept'12)
Tele2
59%
41%
Rest of the
market
75 Tele2 Capital Markets Day 2012 Source: internal research, ACM data

15. New Regions: Considerable and Sustainable
Growth
Net Intake (‘000 Subs) Subscriber Base, (‘000 Subs) +22% Q3’12
vs Q3’11
1,000 8,000
800 6,000
600
4,000
400
200 2,000
0 0
+7% Q3’12
Annualized Churn ARPU (SEK) vs Q3’11
100% 50
80% 40
60% 30
40% 20
20% 10
0% 0
76 Tele2 Capital Markets Day 2012

16. New Regions: Solid Profitability Profile
Revenue (SEK ‘000) +32% Q3’12 EBITDA (SEK ‘000) EBITDA % +78% Q3’12
vs Q3’11 vs Q3’11
1,000
200 35%
800
100 15%
600 0 -5%
400 -100 -25%
200 -200 -45%
-300 -65%
0
Market share - Subscribers (Sept'12)
24% Tele2
76%
Rest of the
market
77 Tele2 Capital Markets Day 2012 Source: internal research, ACM data

17. Far East launch
Launch Date Total Subs* Market Share
Sakhalin 05.10.2012 21 133 2.7%
Kamchatka 26.10.2012 13 798 2.5%
Magadan 02.11.2012 6 079 2.4%
Jewish Autonomous 09.11.2012 8 271 4.8%
Oblast
Field Connections
Events with Invited Celebrities
New Monobrand Shops
78 Tele2 Capital Markets Day 2012 * As of 04.12.2012

18. Tele2 Russia Cost Efficiency
Sales&Marketing costs / Revenue Customers per Employee
150%
Base level 2009 Tele2
100%
-15% Beeline
50%
Megafon
0%
2009 2010 2011 2012 MTS
Sales & Marketing costs are 15% more efficient in 3 years
0% 20% 40% 60% 80% 100% 120%
Administrative costs / Revenue
150%
Base level 2009 • Optimization of organization structures
100%
-37% • Legal & Tax structures optimizations
50%
• New opportunities
0%
2009 2010 2011 2012 • New sales channel development
Administrative costs are 37% more efficient in 3 years
79 Tele2 Capital Markets Day 2012

19. Russia
2,768 employees Best-in-class employee
engagement
Yearly survey ”MyVoice” shows
Employee engagement index record high engagement levels
60%
and employee satisfaction
50%
40%
30%
Tele2 RU
20%
Global Benchmark
10%
0%
80 Tele2 Capital Markets Day 2012

20. Current LTE allocations not fully available
1800 MHz offers great potential
700/800 MHz LTE FDD
1800 MHz LTE LTE
2300 MHz LTE TDD
GKRCh
LTE TDD LTE TDD decision
2600 MHz LTE FDD required
LTE FDD
Deployed Limited Deployment 2012 LTE Tender Allocations
81 Tele2 Capital Markets Day 2012 Source: Russian business press publications

21. Global trends for LTE 1800/Technology Neutrality
130 LTE 1800 devices announced • LTE on 1800 MHz ensures the quickest start of 4G
• Closes “digital gap” between cities and rural areas
• Technology Neutrality is the most cost-effective way of launching
1
LTE
26 • 1800 MHz is the most widely used band for LTE deployments
29
LTE deployment
22
50
44 40
8
30
Phone Module Mobile Tablet 20
Router Dongles Femtocell 10
0
1900 MHz 900 MHz 850 MHz 2100 MHz 800 MHz AWS 700 MHz 2.6 GHz 1800 MHz
b5 b20
82 Tele2 Capital Markets Day 2012 Source: GSA

22. Global trends for LTE 1800/Technology Neutrality
Tele2 succesfully Regulator requested
tested LTE in 1800 MHz trial results in 3
regions June 1, 2013
Competitors asked Pending question
for permission to is when to
test LTE implement LTE
83 Tele2 Capital Markets Day 2012

23. MNP – Mobile Number Portability
MNP is expected to be implemented in
Russia from December 1, 2013
There are varying estimates of potential
MNP service user base on the Russian
market
The possible Mobile Number Portability
introduction end of 2013-2014 may allow
Tele2 to benefit from new customer
inflow
84 Tele2 Capital Markets Day 2012

24. Existing network support
Subscribers, mln
23
22
21
20
Significant growth of voice and data
2011 traffic continues and drives
19
18 2012 investments both in voice and data
17 capacity
16
Jan Feb Mar Apr May Jun Jul Aug Sep
18% annual
Data traffic, TB 40% annual Voice, mln minutes growth
growth 6,000
195
175 5,500
155 5,000
135 2011 4,500
115 2012 4,000
95 3,500
75 3,000
Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep
85 Tele2 Capital Markets Day 2012

25. Network capabilities
Territory coverage Population coverage
40% 96%
93% 94%
31% 31% 32% 32% 92% 93%
29% 30% 91% 92%
30% 27% 28% 92%
24% 25% 90% 90%
88% 87%
20%
86%
10% 84%
0% 80%
2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12
Federal highways coverage*, %
89%
88% 88%
88%
Tele2 continues to invest in
87%
coverage improvement to
87%
86% increase quality perception
86%
85%
Beeline MTS Megafon Tele2
* Source: ROSKOMNADZOR highways coverage measurements 01.10.2012 (for
86 Tele2 Capital Markets Day 2012 TELE2 license territory)

26. LTE network readiness
All network investments since 2009
are LTE compatible
• 58% of base stations LTE ready
• Transport network 67% LTE ready
Tech Neutrality tested in 2 regions
No impact on 2G service quality
LTE data speed up to 80 Mbps
87 Tele2 Capital Markets Day 2012

27. Summary
• The fastest growing company on the
Russian mobile market
• Unique discounter positioning
• Efficiency KPIs continuously superior to
competition
• Excellent user experience of 2G Voice and
Data
• Good progress towards Technology
Neutrality
88 Tele2 Capital Markets Day 2012