Presentation Tele2s Quarterly report, 2007 (Q1)

1. Q 1 2007
IAL RE PORT
F INANC
Lars-Johan Jarnheimer
President and CEO

2. TELE2: Q1 2007 RESULTS
SEK MILLION 2007 2006
Q1 Q1
Continuing operations
Operating revenue 12,837 12,243
Net customer intake (thousands) 281 617
EBITDA 1,488 1,221
• Mobile revenues in Q1 2007 increased by 29 percent to SEK 5.2
billion
• Strong broadband intake during Q1 2007, adding a total of 254,000
new broadband customers
• Fixed telephony EBITDA margin improved to 14 percent in Q1 2007
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3. UP DATE ON THE CURRENT STRATEGIC
REVIEW
• We will see result of the current strategic review in the
second quarter
• The first transaction is likely in the next couple of weeks
• The transaction between Tele2 and SFR will receive a
preliminary indication from the EU competition authorities
in May
• There is now a firm action plan for the MVNO businesses
Current
Strategic
Review is
progressing
according to
plan 3

4. CONTINUED SHIFT TOWARDS
INFRASTRUCTURE BASED SERVICES
Sales - Q1 2007 Sales - Q1 2006
35%
39%
42%
51%
14%
19%
Mobile Mobile
Broadband (resale & direct access) Broadband (resale & direct access)
Fixed telephony resale Fixed telephony resale
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5. EBITDA CONTRIBUTION WILL FOLLOW
EBITDA contribution per segment
(SEK)
2000
1500
1000
500
0
Q1 2007 Q1 2006
-500
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
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6. CONTINUED STRONG PERFORMANCE
IN MOBILE TELEPHONY
SEK MILLION 2007 2006
Q1 Q1
Mobile Telephony
Operating revenue 5,219 4,038
Net customer intake (thousands) 747 909
EBITDA 1,088 746
• Mobile revenues in Q1 2007 increased by 29 percent to SEK 5.2
billion
• Russia and Baltic developing above expectations.
Total customer base for the market area
in excess of 10.8 million
• Mixed development in MVNO.
• Clean up of customer base in the Nordic market area by
approximately 900,000 in Q2 2007
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7. STRONG BROADBAND INTAKE
SEK MILLION 2007 2006
Q1 Q1
Broadband resale, DA/LLUB
Operating revenue 2,276 1,602
Net customer intake (thousands) 255 144
EBITDA -361 -295
• Strong broadband intake during Q1 2007, adding a total of
254,000 new broadband customers
• Broadband is being evaluated market by market.
– Italy showing strong gross margin development in the
quarter
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8. TELE2 ITALY: DIRECT ACCESS
ITA D
LY A ITA D
LY A
60% 52 %
40%
20%
0%
Q -06
3 Q -06
4 Q -07
1
-20%
-40%
-60%
-80%
-100%
Q -06
3 Q -06
4 Q -07
1
-120%
N Intake
et Gross Margin 2
• Coverage improved to 40 % of Italian households.
• Tele2 looks to expand beyond 50 %
• Up-selling from single to dual play services
• Larger customer base leading to scale effects
8

9. STABLE MARGIN – INCREASED
COMPETITION
SEK MILLION 2007 2006
Q1 Q1
Fixed telephony resale
Operating revenue 4,796 6,017
Net customer intake (thousands) -720 -436
EBITDA 649 662
• Fixed telephony EBITDA margin improved to 14 percent in Q1
2007
• Higher level of competition from primarily mobile operators
– Larger net customer outflow
– Stronger ARPU decline than expected
• Cross selling still an important opportunity
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10. Q1 2007 SUMMERIZED
• Strong development in Mobile
Telephony, with a revenue growth
of 29 % in Q1
• Continued strong broadband
intake during Q1 2007, adding
254,000 new broadband
customers
• Improving EBITDA margins in
fixed line. However, competition is
increasing
TELE2: CONTINUED OPERATIONS
– Important for Tele2 to move
swiftly into more infrastructure MSEK Q1 2007 Q1 2006
based operations
Operating revenue* 12,837 12,243 +5 %
EBITDA* 1,488 1,221 +22 %
Net intake (‘000) 281 617 -54 %
*Excluding non-recurring items
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11. NO CHANGE TO FINANCIAL GUIDENCE ON 2007
• Outlook for 2007 remains unchanged:
“We expect significantly higher EBITDA and higher organic
growth compared to 2006”
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12. Q 1 2007
IAL RE PORT
F INANC
Donna Cordner
EVP Corporate Finance & Treasury

13. FINANCIAL OVERVIEW FOR Q1 2007 –
CONTINUING OPERATIONS
Q1 2007 Difference to Q1 2007
Revenues (MSEK) 12,837 594 5%
EBITDA (MSEK) 1,488 267 22%
CAPEX (MSEK) 1,181 3 0%
Customer Net Additions (thousands) 281 -336 -54%
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14. OPERATING REVENUE PER SEGMENT
MOBILE
(MSEK) (MSEK)
FIXED TELEPHONY RESALE
6 000 10 000
8 000
4 500
6 000
3 000
4 000
1 500
2 000
0
0
Q4 Q1 Q2 Q3 Q4 Q1
Q4 Q1 Q2 Q3 Q4 Q1
2006 2007
2006 2007
BROADBAND RESALE DIRECT ACCESS & LLUB
(MSEK) (MSEK)
1 000 1 800
900 1 600
800
1 400
700
1 200
600
1 000
500
800
400
300 600
200 400
100 200
0 0
Q4 Q1 Q2 Q3 Q4 Q1
14 Q4 Q1 Q2 Q3 Q4 Q1
2006 2007 2006 2007

15. EBITDA AND NET INTAKE PER SEGMENT
MOBILE FIXED TELEPHONY RESALE
MSEK '000 MSEK '000
1 600 1 000 600
1 200
1 400 400
800 200
1 000 1 200
0
800 1 000
600
-200
800
600
-400
600 400
400 -600
400
-800
200
200
200
-1 000
0 0
0 -1 200
Q4 Q1 Q2 Q3 Q4 Q1
Q4 Q1 Q2 Q3 Q4 Q1
2006 2007
2006 2007
EBITDA Net intake EBITDA Net intake
BROADBAND RESALE DIRECT ACCESS & LLUB
MSEK '000
MSEK '000 150
100
100
50 100 210
0
50 50
-50 160
-100 0
0
Q4 Q1 Q2 Q3 Q4 Q1 110
-150
-50 2006 2007
-200 -50
60
-250 -100
-300 -100 10
-150
Q4 Q1 Q2 Q3 Q4 Q1
2006 2007
EBITDA Net intake
-200 -40
EBITDA Net intake
15

16. P&L IMPACT FROM BROADBAND GROWTH
Q1 2007 Q4 2006 Q3 2006
P&L impact from Broadband growth (MSEK) 445 335 250
NET INTAKE
Broadband resale (’000) 44 42 39
Direct access and LLUB (’000) 210 211 113
ACQUISITION COST
Broadband resale (SEK) 1,550 1,450 2,050
Direct access and LLUB (SEK) 1,800 1,300 1,500
• Italy showing stronger intake of DA/ULL customers directly,
rather than migrating customers from existing broadband
resale base
• Launch of broadband services in Portugal affecting SAC
negatively.
16

17. MOBILE SALES +29 %
MOBILE MOBILE
(MSEK) MSEK '000
6 000 1 600
1 200
1 400
4 500 1 000 1 200
800 1 000
3 000 800
600
600
400
1 500 400
200
200
0 0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1
2006 2007 2006 2007
Sales EBITDA Net intake
17

18. RUSSIA SALES +135 %
Russia Mobile Russia Mobile
MSEK MSEK '000
1 200 350 1 200
300
1 000 1 000
250
800 800
200
600 150 600
400 100
400
50
200
200
0
0
-50 0
Q4 Q1 Q2 Q3 Q4 Q1
Q4 Q1 Q2 Q3 Q4 Q1
2006 2007
2006 2007
Sales EBITDA Net intake
• Net intake of 644,000 customers to a total of 7,1 million customers
• ARPU of 52 SEK in Q1 2007 compared to 42 SEK in Q1 2006
• EBITDA margin 28 %
18

19. BALTIC MOBILE SALES +18 %
Baltic Mobile Baltic Mobile
MSEK MSEK '000
1 200 450 250
400
1 000 200
350
300
800 150
250
200
600 100
150
400 100 50
50
200 0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1
2006 2007 2006 2007
Sales EBITDA Net intake
• Revenue growth for the Baltic region was strong at 19 percent
– All 3 countries had double digit sales growth
• EBITDA for the Baltic region grew 25 percent
• In Lithuania Tele2 has been able to capture 11 percent
of the corporate market 19

20. SWEDEN MOBILE SALES +8 %
Sweden Mobile Sweden Mobile
MSEK MSEK '000
1 000 80
2 000 60
800
40
1 500
600
20
1 000 0
400
-20
500 200
-40
0 -60
0
Q4 Q1 Q2 Q3 Q4 Q1
Q4 Q1 Q2 Q3 Q4 Q1
2006 2007
2006 2007
Sales EBITDA Net intake
• EBITDA-margin effected by higher marketing costs in Q1 2007
• More than 48 000 post-paid net adds in Q1
20

21. NORDIC EXCL. SWEDEN
MOBILE SALES +30 %
Nordic excl. Sweden - Mobile Nordic excl. Sweden - Mobile
MSEK MSEK '000
800 80 100
60 80
600
60
40
40
400 20
20
0
Q4 Q1 Q2 Q3 Q4 Q1 0
200
-20 2006 2007
-20
-40
0 -40
Q4 Q1 Q2 Q3 Q4 Q1
-60 -60
2006 2007
Sales EBITDA Net intake
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22. NET DEBT
Net debt
MSEK
18 000 3,6
3,2
15 000
2,8
12 000 2,4
2,0
9 000
1,6
6 000 1,2
0,8
3 000
0,4
0 0,0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2005 2006 2007
Net Debt Net Debt to EBITDA
22

23. DO NOT FORGET
Contacts
Visit www.tele2.com Lars-Johan Jarnheimer
Telephone: + 46 (0)8 562 640 00
• Conference call today
President and CEO, Tele2 AB
at 15.00 CET
Web-cast at www.tele2.com Lars Torstensson
Telephone: + 46 (0) 702 73 48 79
• Q2 2007: 25 July 2007 IR Director, Tele2 AB
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