The Share

Tele2 AB’s shares are listed on the NASDAQ OMX Stockholm Large Cap list under the ticker symbols TEL2 A and TEL2 B. The fifteen largest shareholders at December 31, 2010 hold shares corresponding to 57 percent of the capital and 67 percent of the voting rights, of which Investment AB Kinnevik owns 30 percent of the capital and 47 percent of the voting rights. No other shareholder owns, directly or indirectly, more than 10 percent of the shares in Tele2.

Tele2’s A and B shares were first listed on the O-List of the Stockholm Stock Exchange in May 1996. Tele2 has been listed on the OMX Nordic Exchange Large Cap List since October 2006.

The share capital in Tele2 AB is divided into three classes of shares: Class A, B and C shares. All types of shares have a quota value of SEK 1.25 per share and Class A and B shares have the same rights on the company’s net assets and profits while Class C shares are not entitled to dividend. Shares of Class A shares, however, entitle the holder to 10 voting rights per share and Class B and C shares to one voting right per share.

The share's performance in 2010

The OMX Stockholm Benchmark Index (OMXSBPI) increased by 23 percent during the year.

In 2010, average daily trading in the Tele2 B share increased by 7 percent to SEK 208 million. The share price ended the year on SEK 139.60 (110.20), an increase of 27 percent. Average daily trading in the A share was SEK 377,500 (217,600) and the closing share price for the year was SEK 149.40 (112.60). Tele2’s market value at the end of 2010 was SEK 62.2 billion, and the total number of shareholders was 43,153 (42,156). Holdings of foreign shareholders accounted for 36.3 percent of the shares. In total, 427 million Tele2 shares changed hands on the Stockholm Stock Exchange during the year.

Dividend

Tele2 will seek to pay a progressive ordinary dividend of 50 percent or more of net income excluding one-off items. Extraordinary dividends and the authority to purchase Tele2’s own shares will be sought when the anticipated total return to shareholders is deemed to be greater than the achievable returns from the deployment of the capital within the group’s operating segments or the acquisition of assets within Tele2’s economic requirements.

In respect of the financial year 2010, the Board of Tele2 AB has decided to recommend to the Annual General Meeting (AGM) in May 2011, a total dividend payment of SEK 27.00 (5.85) per ordinary A or B share, to be comprised of an ordinary dividend of SEK 6.00 (3.85) and an extraordinary dividend of SEK 21.00 (2.00).

Balance sheet

Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75 times over the medium term. The company’s longer term financial leverage 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.