Tele2 Ab Class A · OMXSTO:TEL2_A

Tele2 Ab Class A — Investor Day (September 2011)

25 slides from Tele2 Ab Class A's investor day presentation, September 2011

  1. Slide 1: Capital Markets Day 2011

    Capital Markets Day 2011 Market Area Central Europe and Eurasia Niklas Sonkin

  2. Slide 2: Market Area Overview

    Market Area Overview Population appr. 28 million Tele2 appr. 5 million Customer Base or 18 % of population Represents 11% of total net sales Q2 2011: Latvia: 3% Croatia: 3% Lithuania: 3% Kazakhstan: 0% Estonia: 2% Current Focus 1. Stability and improvements in Baltics 2. Growth in revenue, profits a

  3. Slide 3: Baltics

    Baltics 3 Sep 2011 Capital Markets Day 2011

  4. Slide 4: Macroeconomic KPIs

    Macroeconomic KPIs GDP Retail Sales 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% -10% -15% -20% -20% -30% 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 Estonia Latvia Lithuania Estonia Latvia Lithuania CPI Inflation Unemployment Sources: Central Bank of Estonia,SEB Sweden, Central 1

  5. Slide 5: Estonia – Market Facts

    Estonia – Market Facts Revenue Market Share EBITDA Market Share 60% 70% 59% 59% 58% 49% 49% 48% 47% 57% 50% 60% 40% 50% 27% 28% 29% 28% 40% 30% 30% 22% 22% 22% 23% 20% 23% 23% 24% 25% 20% 10% 10% 20% 21% 19% 20% 0% 0% 2008 2009 2010 1H 11 2008 2009 2010 1H 11 Tele2 EMT Elisa Tele2 EMT Elisa Customer

  6. Slide 6: Latvia – Market Facts

    Latvia – Market Facts Revenue Market Share EBITDA Market Share 60% 57% 53% 52% 53% 90% 70% 69% 66% 50% 70% 61% 38% 39% 37% 36% 40% 50% 40% 39% 37% 39% 30% 30% 20% 10% 12% 8% 0% 10% 5% 10% -3% -9% -7% 0% -10% 2008 2009 2010 1H 2011 2008 2009 2010 1H 2011 Tele2 LMT Bite Tele2 LMT Bite Customer Market

  7. Slide 7: Lithuania – Market Facts

    Lithuania – Market Facts Revenue Market Share EBITDA Market Share 45% 43% 60% 39% 50% 40% 38% 37% 50% 42% 39% 35% 32% 40% 35% 31% 31% 32% 33% 32% 26% 33% 30% 30% 31% 31% 33% 30% 29% 25% 20% 25% 25% 26% 20% 10% 2008 2009 2010 1H 2011 2008 2009 2010 1H 2011 Tele2 Omnitel Bite Tele2 Omnitel Bite Custom

  8. Slide 8: Croatia

    Croatia 8 Sep 2011 Capital Markets Day 2011

  9. Slide 9: Macroeconomic KPIs

    Macroeconomic KPIs GDP Retail Sales 6% 5% 5% 10% 4% 2% 2% 5% 8% 1% 5% 5% 2% 0% 4% 0% -1% -1% -5% -2% -10% -4% -15% -6% -6% -14% -8% -20% 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 CPI Inflation Unemployment 7% 13% 12% 6% 12% 6% 12% 11% 11% 5% 4% 11% Eurostat,Croatian bureau of

  10. Slide 10: Croatia – Market Facts

    Croatia – Market Facts Revenue Market Share EBITDA Market Share 70% 62% 63% 60% 63% 60% 50% 48% 46% 46% 50% 46% 43% 50% 41% 36% 40% 43% 42% 41% 40% 30% 30% 20% 13% 14% 11% 10% -1% 1% 7% 10% -9% -6% 0% -10% 2008 2009 2010 1H 2011 2008 2009 2010 1H 2011 Tele2 T-Mobile VIPnet Tele2 T-Mobile VIPnet Cust

  11. Slide 11: Croatia – Market Facts and New Guidance

    Croatia – Market Facts and New Guidence Estimate Estimate EBITDA Free Cash Flow HRK Million HRK Million 60 80 36 37 40 27 40 10 9 0 20 2 3 1 -20 -17 0 0 -46 -41 -31 -30 -40 -20 -39 -37 -85 -80 -40 -61 -131 -60 -120 -109 -142 -80 -160 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  12. Slide 12: Operational Highlights and Way Forward

    Operational Highlights and Way Forward Operational Highlights Key achievements Way Forward  Q1 2010: Transformation program commenced  Continue revenue market share growth  Q2 2010: EBITDA break ahead of plan  Continue to improve gross margins  Q2 2011: New marketing strategy launched  Continu

  13. Slide 13: Key Achievements

    Key Achievements  The New Brand Platform – I ovce i novce  A New Product Plan – Higher Value Smart Phone Users  New Store Concept 13 Sep 2011 Capital Markets Day 2011

  14. Slide 14: Summary KPI Performance

    Summary KPI Performance 2010 July 2011 Price Leadership Position 19% 25% p Quality Perception 19% 30% p Ad Awareness 15% 45% p Brand Awareness (Top of Mind) 10% 16% p Brand consideration 13% 25% p Q4 2009 Q2 2011 Source - Hendal Research Croatia Gross Margin 39% 56% p Q2 2010 Q2 2011 Total Market EB

  15. Slide 15: Kazakhstan

    Kazakhstan 15 Sep 2011 Capital Markets Day 2011

  16. Slide 16: Kazakhstan

    Kazakhstan 16 Sep 2011 Capital Markets Day 2011

  17. Slide 17: Macroeconomic KPIs

    Macroeconomic KPIs GDP Retail Sales 12% 11% 30% 25% 9% 23% 10% 25% 22% 21% 21% 8% 7% 7% 7% 20% 17% 6% 15% 3% 4% 10% 4% 2% 1% 5% 0% 0% 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 CPI Inflation Unemployment Source: IHS Global Insight, Statistic Agency of Kazakhstan 18% 17% 9%

  18. Slide 18: Kazakhstan Mobile Market Overview

    Kazakhstan Mobile Market Overview  Strong growth of the mobile market  High transmission prices  UMTS2100 licenses were issued to the existing GSM operators at a price of 25 MEUR each on January 2011  The fixed line market is dominated by Kazakh Telecom with 3.3 million lines  Relatively low Mo

  19. Slide 19: Tele2 Kazakhstan Company Overview

    Tele2 Kazakhstan Company Overview Tele2 Sweden Asianet Holding 51% 49% Tele2 Kz Frequency band Channel Technology 900 11 MHz GSM/UMTS 1800 5 MHz GSM 2100 20 MHz UMTS 19 Sep 2011 Capital Markets Day 2011

  20. Slide 20: All Regions Launched by Year-End

    All Regions Launched by Year-End Petropavl Kostanay Astana Pavlodar Oral Aktobe Semey Karagandy Oskemen Almaty Kyzyl-Orda Aktau Taraz Shymkent 21 Sep 2011 Capital Markets Day 2011

  21. Slide 21: Average MTR in Russia and Kazakhstan

    Average MTR in Russia and Kazakhstan USD 0,12 0,1 0,08 0,06 0,04 0,02 0 Russia Kazakhstan MTR  Memorandum between the operators to make 20% MTR reduction as of Jan 1, 2011 • TELE2 KZ reduced MTR with Kcell by 20%, from Nov 15, 2010 • TELE2 KZ reduced MTR with Beeline by 15%, from Jan 1, 2011  MTRs

  22. Slide 22: Customer Base MOU and ARPU

    Customer Base MOU and ARPU MoU USD Min ARPU 7 90 6 80 70 5 60 4 50 3 40 30 2 20 1 10 0 0 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 ARPU USD MOU Number of 1 200 000 subscribers 1 000 000 800 000 600 000 400 000 200 000 0 23 Sep 2011 Capital Markets Day 2011

  23. Slide 23: Long Term Guidance

    Long Term Guidance  Tele2 expects its customer base in Kazakhstan to be able to reach the range of 2.3-2.5 million by year-end 2012.  The EBITDA margin for Tele2 Kazakhstan’s operation should reach break-even by 2H 2013.  Tele2 Kazakhstan is targeting a long-term mobile customer market share of 3

  24. Slide 24: Sep 2011 Capital Markets Day 2011

    25 Sep 2011 Capital Markets Day 2011

  25. Slide 25: Sep 2011 Capital Markets Day 2011

    26 Sep 2011 Capital Markets Day 2011

Tele2 — Investor Day (September 2011) on 6ix