This document discusses Tele2's position in the Baltic telecommunications market. It notes that Tele2 has strong market positions in Latvia and Lithuania as the number 2 and number 1 provider respectively, and is working to improve profitability in Estonia where it is number 3. It also describes Tele2's investments in upgrading its network infrastructure in the Baltic region to modernize base stations and increase coverage. This will allow Tele2 to rollout LTE services and capitalize on increasing customer data usage.

1. BALTICS
Niklas Sonkin, EVP Central Europe & Eurasia

2. 2

3. Drivers for excellent customer experience
Customer service
Simplicity in pricing
Coverage and quality of the network
Tele2 challenger style

4. Tele2 has a strong market position in the Baltic region
Revenue market share
Latvia
#2
32%
Lithuania
#1
40%
Estonia
#3
25%
4

5. In Lithuania and Latvia our leading market positions and value product continue to drive margin improvement
We continue to focus on scaling the business model in Estonia to further improve profitability
Strong EBITDA margin
0%
10%
20%
30%
40%
50%
Estonia
Tele2
EMT
Elisa
0%
10%
20%
30%
40%
50%
Latvia
Tele2
LMT
Bite
0%
10%
20%
30%
40%
50%
Lithuania
Tele2
Omnitel
Bite
EBITDA margin %
5

6. Lithuania
The Netherlands
Sweden
Tele2: Monthly average data usage per device
20-200 MB
200-350 MB
350-1,800 MB
0
1
2
3
4
5
6
7
MB
Year
6

7. The most modern network in the Baltic region
50 million €
One of the most significant
investment projects in the industry
in the Baltic region
Green thinking
Energy saving by 25%
The latest technologies from Nokia Networks
Network ready for LTE and fast LTE-Advanced deployment
99% population coverage of high quality voice services
Modernized all existing base stations
95% population coverage of fast mobile internet
50% increase of the number of 3G BTS
The swap of our Baltic network was finalized during 2014
7

8. Data usage is constantly growing
Percentage of handset customers using data services (actuals YTD)
0%
10%
20%
30%
40%
50%
2010
2011
2012
2013
2014
Lithuania
0%
10%
20%
30%
40%
50%
2010
2011
2012
2013
2014
Estonia
0%
10%
20%
30%
40%
50%
60%
2010
2011
2012
2013
2014
Latvia
Data revenue as % of service revenue (actuals YTD)
0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 20102011201220132014Estonia0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 20102011201220132014Latvia0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 20102011201220132014Lithuania
Estonia
Latvia
Lithuania
24%
22%
12%
8

9. Strong spectrum portfolio
800Mhz
900 Mhz
1800 Mhz
2100 Mhz
2600 Mhz
Comment
Estonia
10
11
24,3
30
Estonia alsohave 4.4 MHz in 450 MHz and 1*30 MHz in 2300 MHz (TDD)
Latvia
10
11
24,8
20
20
Lithuania
10
11,6
24,6
20
20
2G
3G
LTE
9

10. We will rollout LTE as soon as possible
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018
LTE Coverage as % of Population 2014-2017
90%
99-100%
10

11. •
Broad choice of LTE handsets available
•
All Services adapted to LTE, egDeezer
•
Bucket base pricing
•
Data speed is always maximal possible and not limited/reduced in any case
•
Base offer includes unlimited/or very high amount of minutes and SMS, but almost no data
•
Customers have to pay premium for additional data, eg1GB or 3GB
•
Real time rating offers the customer the possibility to buy more data if needed
Leveraging Tele2 Sweden experience of monetizing data
LTE: product readiness
Data buckets (Tele2 Sweden example)

12. Summary
We are well positioned to deliver great customer experience and to
monetize the significant data opportunity
Strong market positions
Most advanced network in the region
Spectrum portfolio is LTE-ready
Leverage Tele2 Group experience in monetizing data
12