HARRI
KOPONEN
President &
CEO
11

FROM REALIGNMENT TO
TRANSFORMATION
22

WHAT DO CUSTOMERS WANT?
CUSTOMERS
MOBILITY FAST AND
ONLY PAY
EVERYWHERE INSTANT SERVICE
FOR VALUE!
Connected and Quick response… Customers can get
available anywhere Customers do not accept music, movies, TV,
Coverage and quality to wait telephony, etc for
is key… Time is money / free online…
Customers and our Impatient Complicated price
services must be Keep it simple – if its plans is a waste of
equally mobile complicated it’s a waste our customers time
of time Always ask yourself if
If we can't provide the we add value to our
service/product directly customers
customers will choose
another brand
33

EFFECTS ON THE TELECOM INDUSTRY?
VOICE BECOMES DATA BECOMES EVERYTHING
MOBILE MOBILE BECOMES IP
Customers will “cut Data will follow voice Photons replace
the cord”, moving Customers want “access electrons
from fixed to mobile anywhere” Traffic is IP-based
Austria and Finland is “Quality” = simplicity, is Internet services is IP
good examples of essential
where most minutes Even voice is going
already are mobile New devices & simple IP
price plans drive Unified IP networks
demand carry voice, internet,
TV
44

TRANSFORMATION PHASE
COMPOSING
A PRODUCT PORTFOLIO THAT
GOES IN LINE WITH
FUTURE
CUSTOMER NEEDS
55

CORE SERVICE
66

OUR CORE SERVICES ARE
PRICE LEADING
AND QUALITIATIVE
MOBILE
COMMUNICATION
WITH INCREASED FOCUS ON
B2B SEGMENT
77

Q3 2008
88

TELE2 IN BRIEF
24 million customers
in 11 countries
Mobile operations in 9
countries
Fixed broadband operations in
6 countries
Fixed telephony operations in
8 countries
99

RUSSIAN OPERATIONS
Existing Business
New Licenses
1010

EBITDA
2500
2000 Fixed broadband
Fixed telephony
1500
Mobile
1000
500
0
Q3 2008 Q3 2007
-500
1111

0
500
1000
1500
2000
2500
Q3 1999
Q1 2000
Q3 2000
Q1 2001
Q3 2001
Q1 2002
Q3 2002
Q1 2003
Q3 2003
Q1 2004
Q3 2004
EBITDA DEVELOPMENT
Q1 2005
Q3 2005
Q1 2006
Q3 2006
Q1 2007
Q3 2007
Q1 2008
Q3 2008
1212

Q3 2008 SUMMARY
SEK million Q3-08 Q3-07 Growth %
Net Sales 9,891 9,509 4%
EBITDA 2,248 1,750 28%
EBIT1) 1,394 863 62%
1)
Excluding one-off items of SEK -950 (-1,319) million related to impairment loss in Germany
1313

SUMMARY
MOBILE: Focus even more on growth in mobile,
mobile internet and corporate services
FIXED BROADBAND: Continue to improve
profitability
FIXED TELEPHONY: Maximize cash flow of a
mature asset
1414

LARS
NILSSON
CFO
1515

PROFIT & LOSS
(All figures in MSEK) Q3-08 Q3-07
Continuing operations, Net Sales 9,833 10,060
EBITDA 2,246 1,747
- EBITDA margin (%) 22.8% 17.4%
Depreciation and joint venture -852 -884
- Depreciation of net sales (%) -8.7% -8.8%
One-off items -971 -306
EBIT 423 557
Normalized EBIT 1,394 863
- Normalized EBIT margin (%) 14.2% 8.6%
Financial items -290 -182
Taxes 27 -563
Net result, continuing operations 160 -188
Net result, discontinued operations 688 -1,045
Net result 848 -1,233
1616

CASH FLOW FOR Q3
(All figures in MSEK) Q3-08 Q3-07
CF from continuing operations, excl taxes paid 2,315 1,208
Taxes paid -90 -489
Change in WC 279 615
Cash flow from operating activities 2,594 1,823
CAPEX -930 -1,188
- CAPEX as percentage of revenue (%) 9.5% 11.8%
Other investing activities 2,137 5,122
Cash Flow after investing activities 3,801 5,757
1717

CASH FLOW FOR 9M
(All figures in MSEK) 9M-08 9M-07
CF from continuing operations, excl taxes paid 5,979 3,149
Taxes paid -257 -1,381
Change in WC -20 229
Cash flow from operating activities 5,959 3,378
CAPEX -3,375 -3,854
- CAPEX as percentage of revenue (%) 11.6% 11.1%
Other investing activities 1,817 5,259
Cash Flow after investing activities 4,401 4,783
1818

NET DEBT TO EBITDA
NET DEBT SEK 5.2 BILLION
3
2,5
2
1,5
1
0,5
0
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
1919

FUNDING Q3 2008
(All figures in BSEK) Amount Maturity
Tele2 external loans 6.2
- Revolving bank facility 4.4 Nov 2009
- Private placements 1.5 2011-2013
- CP 0.3 Mar/Apr 2009
- Total undrawn credit facilities 19.2 Nov 2009
Long term financing strategy
- Increase diversification of funding sources
2020

FINANCIAL COMMENTS
FINANCIAL VIEW: Short term the company needs to take
into consideration the uncertainties in the financial
markets and act accordingly. Hence, Tele2 will not utilize
the current share buy-back mandate. The company will
instead maintain a strong financial position.
TAX: Corporate tax rate of 15 percent excluding one-off
items. Cash flow affected by SEK 500 million
CAPEX: In the level of SEK 4,500-4,800 including payment
of SEK 549 million for 4G spectrum in Sweden
2121

FINANCIAL COMMENTS: RUSSIA
FINANCIAL IMPACT OF THE 17 NEW LICENSES
2008: The operational expenditures are estimated to SEK
40-60 million and the capital expenditures are estimated
to SEK 100-300 million
2009: The operational expenditures are estimated to SEK
300-500 million and capital expenditures are estimated to
SEK 900–1,100 million
2222

FINANCIAL COMMENTS: RUSSIA
FINANCIAL IMPACT OF THE 17 NEW LICENSES
Up to 12 regions out of 17 will have been launched
as 2009
New operations should be able to reach an EBITDA break-
even three years after commercial launch date
The longer term market share in the 17 new regions
should not deviate significantly from the historic market
share of Tele2 Russia
2323

NET INTAKE BY SEGMENT
NET CUSTOMER INTAKE DRIVEN BY MOBILE
(Approx. 700 thousand)
1200
1000
800
600 Fixed broadband
Fixed telephony
400
Mobile
200
0
-200 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
-400
-600
2424

NET SALES BY SEGMENT
MOBILE +12% YEAR ON YEAR
10 000
9 000
8 000
7 000
6 000 Fixed broadband
5 000 Fixed telephony
4 000 Mobile
3 000
2 000
1 000
0
Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
2525

EBITDA BY SEGMENT
EBITDA MARGIN 22.8%
Mobile 27.8%
Fixed Telephony 27.7%
2 300
1 800
Fixed broadband
1 300 Fixed telephony
Mobile
800
300
-200 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
-700
2626

EBIT BY SEGMENT
NORMALIZED EBIT MARGIN 14.2%
Mobile 23.8%
Fixed Telephony 22.9%
2 000
1 500
Fixed broadband
1 000 Fixed telephony
Mobile
500
0
Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
-500
-1 000
2727

CAPEX BY SEGMENT
CAPEX TO SALES RATIO 9.5%
1400
1200
1000
800 Fixed broadband
Fixed telephony
600
Mobile
400
200
0
Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
2828

FINANCIAL SUMMARY
STRUCTURE: Move from realignment to
transformation. Long term net debt/EBITDA target
in line with industry and the markets in which
Tele2 operates and the status of its operations
and future strategic opportunities.
FINANCIAL POSITION: Tele2 will not in the near
future utilize the current share buy-back
mandate. The company will instead maintain a
strong financial position.
2929

QUESTIONS?
3030