Financial guidance

Tele2’s objective is to have a healthy balance between growth regions and more mature markets, and to be established in Europe and Eurasia. The company will secure licenses through strong local connections within the business and political arenas in all its markets. Tele2’s core markets will be characterized by:

• An established Best Deal position

• The capability to reach a Top 2 position, in terms of customer market share, in an individual country or region

• A mobile operation based on own infrastructure should reach at least 35 percent EBITDA margin

• All operations in the group should reach at least 20 percent return on capital employed (ROCE)

Tele2 Group forward looking statement

The following points should be considered when estimating 2010 for the group:

• Tele2 forecasts a corporate tax rate of approximately 22 (earlier 20) percent excluding one-off items. The tax payment will affect cash flow by approximately SEK 800 (earlier 700) million due to better than expected operational performance in Tele2 Russia.

• Tele2 forecasts a CAPEX level in the range of SEK 4,600–4,800 million.

Tele2 Sweden forward looking statement

The following assumptions should be taken into account when estimating the Swedish mobile operations in 2010:

• Tele2 will continue to target the postpaid segment resulting in a full year EBITDA margin in the range of 33-35 percent depending on customer intake.

Tele2 Russia forward looking statement

Tele2 has GSM licenses in 37 regions  in Russia covering approximately 61 million inhabitants. The Russian operations have been divided into 17 old regions and 20 new regions. The following assumptions should be taken into account when estimating the operational performance of the total operations in Russia 2010-2011:

• Subscriber base should be able to reach 19-20 (earlier 18-19) million by YE 2011.

• Accumulated ARPU growth should amount to 5 percent in local currency.

• EBITDA margin in the old regions should stabilize at 45 percent (earlier evolve in the range of 40-45 percent). EBITDA contribution in 2010 from new regions should be in the range of SEK -600 to -800 million (earlier SEK -700 to -900 million). The new regions’ EBITDA margin should break even 2 years from commercial launch. Tele2 Russia’s total EBITDA margin should evolve in the range of 27-32 (earlier 25-30) percent.

• Accumulated Capex in Russia should be in the range of SEK 4,500-5,000 million by YE 2011.

Tele2 Croatia forward looking statement

The following assumptions should be taken into account when estimating the Croatian mobile operations in 2010:

• Tele2 Croatia will reach EBITDA break-even by 2H 2010

Shareholder remuneration

Tele2’s intention over the medium term is to pay a progressive ordinary dividend to its shareholders. The Board of Tele2 AB has decided to recommend an increase of the ordinary dividend of 10 percent to SEK 3.85 (3.50) per share in respect of the financial year 2009 to the Annual General Meeting (AGM) on 17 May 2010. The board has also decided to recommend an extraordinary dividend of SEK 2.00 (1.50) per share related to divestments made during the year.

Balance sheet

Tele2’s longer term financial leverage, defined as net debt /EBITDA ratio, should be in line with the industry and the markets in which it operates and reflect the status of its operations, future strategic opportunities and contingent liabilities.