Financial guidance

Tele2’s objective is to maintain 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 results for the Group:

• Tele2 forecasts a corporate tax rate of approximately 22 percent excluding one-off items. The tax payment will affect cash flow by approximately SEK 800 million.
• Tele2 forecasts a CAPEX level in the range of SEK 4,200-4,400 million including Tele2 Kazakhstan/NEO (earlier SEK 4,600–4,800 million excluding Tele2 Kazakhstan/NEO). 

Tele2 Sweden forward looking statement

The following assumptions should be taken into account when estimating results for 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 reach 19-20 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. Most new regions' EBITDA margin will be break even by 18 months (earlier 2 years) from commercial launch. Tele2 Russia’s total EBITDA margin should evolve in the range of 34-37 (earlier 27-32) percent.
• Accumulated Capex in Russia should be in the range of SEK 4,500-5,000 million by YE 2011.
  

Tele2 Kazakhstan/NEO forward looking statement

The following assumptions should be taken into account when estimating the operational performance of the total operations in Kazakhstan 2010-2011:

• Subscriber base should reach 400,000-450,000 by YE 2010.
• Blended ARPU should be in the range of SEK 40-45.
• EBITDA contribution in 2010 should be approximately SEK -250 million. EBITDA contribution in 2011 should be in the range of SEK -400 to -450 million.
• Accumulated Capex in Kazakhstan should be in the range of SEK 1,400-1,600 million by YE 2011.
• Tele2’s operations in Kazakhstan should be able to reach breakeven within 2 years from the commercial re-launch which is planned in 1H 2011.

Shareholder remuneration

Tele2’s intention is to pay a progressive ordinary dividend to its shareholders over the medium term.

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.