Tele2 Q2 Interim report

Interim
Report
second
Quarter
2014

Tele2 – Interim Report January–June 2014 1 (30)
Key Financial Data Q2
Q2 H1
SEK million 2014 2013 % 2014 2013 %
Net sales 6,343 6,424 -1 12,495 12,672 -1
Net sales excluding exchange rate differences 6,343 6,533 -3 12,495 12,867 -3
EBITDA 1,466 1,474 -1 2,825 2,923 -3
EBITDA excluding exchange rate differences 1,466 1,520 -4 2,825 3,003 -6
EBIT 787 772 2 1,744 1,508 16
Net profit 818 369 122 1,401 809 73
Earnings per share, after dilution (SEK) 1.83 0.82 120 3.13 1.81 73
The figures presented in this report refer to Q2 2014 and continuing operations unless otherwise stated.
The figures shown in parentheses refer to the comparable periods in 2013.
Net sales
Q2 2014
6,343SEK million Excl. Tele2 Norway
EBITDA
Q2 2014
1,466SEK million Excl. Tele2 Norway
Strong mobile end-user service
revenue growth for the Group
■ In the quarter, total net sales amounted to
SEK 6,343 (6,424) million, affected by fixed
line telephony and termination rates.
However, more importantly mobile end-user
service revenue grew by 7 percent amounting
to SEK 3,094 (2,900) million. This trend was
driven by positive usage of mobile data,
compensating less revenue from mobile voice
and SMS.
Robust operational performance
in Tele2 Sweden
■ Mobile end-user service revenue in Sweden
grew by 4 percent in Q2 2014, driven by
increased usage in the postpaid segment. The
mobile EBITDA contribution in the quarter
was SEK 777 (757) million.
Maintained positive customer
intake within mobile for
Tele2 Netherlands
■ Tele2 Netherlands continued to gain market
share by adding 27,000 (49,000) customers
and taking the total mobile customer base to
768,000 (584,000). Mobile end-user service
revenue amounted to SEK 308 (227) million,
growing by 36 percent in Q2 2014.
Strong customer intake for
Tele2 Kazakhstan
■ Customer intake amounted to 213,000
(309,000) in Q2 2014, as the new commission
structure yielded results. End-user service
revenue grew by 1 percent in Q2 2014,
amounting to SEK 225 (223) million impacted
by devaluation of the local currency and
lower interconnect levels. However, thanks to
improved operational scale and lower
interconnect levels, EBITDA amounted to SEK
3 (–52) million.
Sale of Tele2 Norway
■ In July 2014, Tele2 agreed to sell its
Norwegian business to TeliaSonera for an
Enterprise Value of SEK 5.1 billion, equivalent
to a cash value of SEK 5.3 billion. The
transaction follows Tele2’s strategic review of
its Norwegian business prompted by changes
to the structure of the Norwegian market as a
result of the license auction in December 2013.
The sale will be completed after approval by
regulatory authorities. Tele2 Norway has been
presented in this report as discontinued
operations.
Changed financial guidance
■ As a result of the sale of Tele2 Norway, the
financial guidance for 2014 has changed
(see page 4).
Q2 2014 HIGHLIGHTS
Maintained strong growth in
mobile services

CEO Word, Q2 2014
This quarter’s results demonstrate that we are delivering on our growth strategy in all major regions
with mobile end-user service revenue growth rising by 7 percent. Our investment in this growth is
having the anticipated impact on our margins, as we are developing our mobile operations in the
Netherlands, Kazakhstan, and other markets.
Our Swedish operations continued to enjoy
good end-user service revenue growth dur-
ing the quarter. The demand for mobile data
maintained its strong momentum as our cus-
tomers’ usage of streaming services grew.
However, the quarter was also characterized
by tougher competition, in both the price
and value segments. As a result, our market-
ing efforts increased in the quarter to ensure
maintained price leadership for Comviq and
value leadership for Tele2.
Our Dutch consumer fixed broadband
operations started to turn the corner in the
quarter showing positive customer intake
in the consumer segment. This was accom-
plished through improved pricing of our broadband product in
combination with better TV offerings. Going forward, we will
maintain our effort to develop this area which will play a comple-
mentary role in the composition of our total product offering. The
mobile business kept its pace through an innovative pricing and
packaging strategy which increased market share. It is a very
competitive environment; and, we will innovate to stay ahead of
the game. As an example, new pricing models were introduced
through SmartMix and Nonstop concepts, which draws from the
positive experience we already have in the Swedish market. In
the Netherlands, our network rollout accelerated in the quarter.
Also, our technical organization continued to improve processes
to further increase network roll-out speed.
On the 7th of July, we announced the sale of our Norwegian
business. Since the creation of Tele2 Norway in 1995, we have
built a successful mobile business of 1.2
million subscribers. We are proud of the
strong brand name, effective organiza-
tion, and talented employees. Subject to
approval from the Norwegian competition
authorities, the proposed sale is good for
our customers, shareholders, and Tele2 as
a whole.
Tele2 Kazakhstan saw further progress
in customer intake, as the result of the
remodeled commission structure. Our
commercial offers were also better
aligned to meet a strongly growing
mobile data demand. Our improving posi-
tion within 3G services reinforces this
strong drive in mobile data. The network rollout maintained its
momentum; and, our technical team closed the margin on our
competitors’ capabilities.
Within one of our new growth areas, M2M/IoT (Internet of
Things) won a major contract by providing connectivity across
Europe to the Vattenfall group. Even though it is early days, we
believe that our partnership program lays the foundation for fur-
ther success in this field.
Our focus for 2014 is clear. The Netherlands and Kazakhstan are
building a mobile business for the future, contributing strongly to
the Group’s overall growth. Sweden stands as the standard when
it comes to creating a profitable and data centric business model.
Mats Granryd
President and CEO
“Our Swedish operations
continued to enjoy good
end-user service revenue
growth during the quarter.
The demand for mobile data
maintained its strong
momentum as our
customers’ usage of
streaming services grew.”
SIGNIFICANT EVENTS | Q2 SUBSEQUENT EVENTS
■ Tele2 and NetComm Wireless Limited announced M2M/IoT partnership
■ Tele2 to provide Vattenfall Group with M2M/IoT connectivity solutions across Europe
■ Tele2 launched IPX Solution across its footprint
■ Tele2 agreed to sell its Norwegian
business to TeliaSonera for an
Enterprise Value of SEK 5.1 billion,
equivalent to a cash value of SEK
5.3 billion (Note 10)

Financial Overview
Tele2’s financial performance is driven by a consistent focus on developing mobile services on own
infrastructure, complemented in certain countries by fixed broadband services and business-to-
business offerings. Mobile net sales, which grew compared to the same period last year, combined with
greater efforts to develop mobile services on own infrastructure have had a positive impact on Tele2’s
EBITDA. The Group will concentrate on maximizing the return from fixed-line services.
Following the announced sale of Tele2 Norway, the business unit is
reported separately under discontinued operations in the income
statement, with a retrospective effect in previous periods, and as
assets held for sale in the balance sheet as of June 30, 2014 (see
Note 10).
Net customer intake amounted to 250,000 (312,000) in Q2 2014.
The customer intake in mobile services amounted to 286,000
(433,000). This development was mainly driven by positive cus-
tomer intake in Kazakhstan, Croatia, the Netherlands and Germany.
The fixed broadband customer base decreased by –9,000 (-12,000)
customers in Q2 2014, primarily attributable to Tele2’s operations in
Sweden. However, the quarter also showed a turnaround in the fixed
broadband customer base in the Netherlands following an improved
product portfolio. As expected, the number of fixed telephony cus-
tomers fell in Q2 2014 by -27,000 (-109,000). On June 30, 2014 the
total customer base amounted to 13,439,000 (13,949,000).
Net sales in Q2 2014 amounted to SEK 6,343 (6,424) million. The
net sales development was mainly a result of lower interconnect
levels within mobile services (see page 17 for mobile external net
sales split) and negative net sales development within consumer
fixed telephony and fixed broadband. However, mobile end-user
service revenue continued to grow by 7 percent as the use of mobile
data surged in the quarter.
EBITDA in Q2 2014 amounted to SEK 1,466 (1,474) million, equiva-
lent to an EBITDA margin of 23 (23) percent. The EBITDA develop-
ment was positively affected by SEK 48 million in the Netherlands
(see note 2). The operational development was also affected by
expansion costs in the mobile segment, tougher competition in the
fixed broadband segment and a decreasing fixed telephony cus-
tomer base. However, relatively better monetization of mobile data
usage supported the operational development.
EBIT in Q2 2014 amounted to SEK 786 (769) million excluding one-
off items. Including one-off items, EBIT amounted to SEK 787 (772)
million.
Profit before tax in Q2 2014 amounted to SEK 1,026 (624) million.
The EBT development was positively affected by SEK 363 million
due to a revaluation of the put option of the business in Kazakhstan.
The change relates to the devaluation of the Kazakhstan currency
as well as increased financing provided by Tele2.
Net profit in Q2 2014 amounted to SEK 818 (369) million. Reported
tax for Q2 2014 amounted to SEK -208 (-255) million. Tax payment
affecting cash flow amounted to SEK -46 (-7) million. Deferred tax
assets amounted to SEK 2.2 billion at the end of the quarter.
Cash flow after CAPEX in Q2 2014 amounted to SEK 309 (572,
excluding Norway) million mainly due to mobile network roll-outs in
Sweden, the Netherlands, and Kazakhstan.
CAPEX in Q2 2014 amounted to SEK 850 (714) million, driven prin-
cipally by further network expansion in Sweden, the Netherlands
and Kazakhstan.
Net debt amounted to SEK 9,268 (8,879) million on June 30, 2014,
or 1.59 times 12-month rolling EBITDA. Tele2’s available liquidity
amounted to SEK 8,661 (12,033) million (see Note 3 for further infor-
mation on financial debt).
0
2,000
4,000
6,000
8,000
Q2Q1Q4Q3Q2
2013 2014
0
300
600
900
1,200
1,500
Q2Q1Q4Q3Q2
0
10
20
30
40
50
Net sales
SEK million
EBITDA / EBITDA margin
SEK million / Percent
2013 2014 2013 2014

Financial Guidance
Following the divestment of Tele2 Norway, Tele2 AB makes
the following update to the guidance for 2014 for continuing
operations:
• Tele2 expects total revenue of between SEK 24.8 and 25.2
(earlier 30.0 including Tele2 Norway) billion.
• Tele2 expects EBITDA of between SEK 5.7 and 5.8
• Tele2 forecasts a CAPEX level of between SEK 3.5 and 3.8
In addition to the sale of Tele2 Norway, the revenue part of the
financial guidance has been impacted by:
• The devaluation of the Kazakhstan currency.
• Generally lower handset sales within our mobile businesses.
Both of these factors have a limited impact on EBITDA.
Shareholder remuneration
Tele2 will seek to pay a progressive ordinary dividend of 50 percent
or more of net income excluding one-off items. Extraordinary divi-
dends 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 operations or the acquisition of assets
within Tele2’s economic requirements.
Balance sheet
Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75
times over the medium term. The Group’s longer term financial leve
rage 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 obligations.

Net sales per service area, Q2 2014 Net sales per country, Q2 2014
Financial summary
SEK million Note Q2 2014 Q2 2013 H1 2014 H1 2013 FY 2013
Mobile 1)
Net customer intake (thousands) 286 433 340 750 594
Net sales 4,629 4,389 9,043 8,497 17,613
EBITDA 1,009 950 1,940 1,851 3,755
EBIT 580 524 1,093 994 1,939
CAPEX 586 439 1,001 2,145 3,217
Fixed broadband 1)
Net customer intake (thousands) –9 –12 –27 –46 –86
Net sales 1,038 1,244 2,080 2,559 5,025
EBITDA 225 283 458 590 1,194
EBIT 42 66 104 155 350
CAPEX 108 123 239 248 585
Fixed telephony 1)
Net customer intake (thousands) –27 –109 –71 –173 –255
Net sales 391 506 815 1,037 1,967
EBITDA 2 179 167 308 340 645
EBIT 2 154 144 265 296 564
CAPEX 9 11 19 21 46
Total
Net customer intake (thousands) 250 312 242 531 253
Net sales 6,343 6,424 12,495 12,672 25,757
EBITDA 1,466 1,474 2,825 2,923 5,869
EBIT2)
2 786 769 1,501 1,503 2,960
CAPEX 7 850 714 1,559 2,694 4,399
EBT 4 1,026 624 1,840 1,295 1,975
Net profit 818 369 1,401 809 951
Cash flow from operating activities, continuing operations 1,155 1,315 1,862 2,175 4,973
Cash flow from operating activities, total operations 1,306 1,361 1,813 2,936 5,813
Cash flow after CAPEX, continuing operations 7 309 572 268 -571 789
Cash flow after CAPEX, total operations 274 456 -281 -430 572
1) Excluding one-off items (see section EBIT on page 20).
2) Total EBIT includes result from sale of operations and other one-off items stated under the segment reporting section of EBIT (page 20).
Mobile73%
Fixed broadband16%
Fixed telephony6%
Other5%
Sweden49%
Netherlands21%
Kazakhstan5%
Croatia5%
Lithuania5%
Austria5%
Latvia4%
Germany4%
Estonia2%

Sweden
Mobile In Q2 2014, underlying end-user service revenue amounted
to SEK 1,815 (1,746) million, with a growth of 4 percent compared to
the same period last year. Total customer base was 3,717,000
(3,743,000) and the EBITDA contribution reached SEK 777 (757)
million in the quarter.
The residential postpaid market was characterized by enhanced
activities and promotions from competitors offering increased sizes of
data buckets, as well as continued price pressure. A majority of the
residential postpaid segment’s customer base (63 percent) is now on
bucket price plans and the share of 4G-enabled handsets sold
reached 90 percent, demonstrating the continuously increasing
demand for high-speed mobile data.
The intensified network rollout, leading to an area coverage
increase from 70 to 90 percent, started with a positive response.
Through this rollout, Tele2 Sweden will cement its position as the
operator offering the best mobile 4G coverage in Sweden while fur-
ther future-proofing its network.
In the business segment, Q2 2014 proved to be a strong quarter for
the large enterprise segment as the company acquired significant
new customers such as Bonnier, Kriminalvården and Tullverket.
Also, the segment continued to see an increased market demand for
Communication as a Service, driven by the new Kammarkollegiet
agreement for the Public sector. Furthermore, the growth in mobile
service revenue continued and an all-time high of 55 percent (Sur-
vey conducted by Millward Brown) of the Swedish business market
is now considering choosing Tele2 as an operator.
Fixed broadband The fixed broadband had a positive development in
Q2 2014 with an EBITDA contribution of SEK 25 (19) million, driven by
the above mentioned development in the business segment.
Fixed telephony The EBITDA contribution in the quarter amounted
to SEK 57 (62) million. Tele2 Sweden saw, as expected, a continued
decrease in demand for fixed telephony as a consequence of the
increased demand for mobile bucket price plans.
The Netherlands
The second quarter of 2014 marked the continuation of mobile
growth and saw for the first time in 36 months an increase in
the residential fixed broadband customer base. The marketing
campaign re-launching the Tele2 brand in the previous quarter also
led to an increase in consideration among consumers and busi-
nesses, which should convert into future sales growth in all seg-
ments. In the business segment, Tele2 Netherlands was able to add
yet more important contracts to its portfolio. The rollout of the 4G
mobile network accelerated in the quarter.
Mobile Tele2 Netherlands, still operating as a mobile virtual net-
work operator (MVNO), maintained its position as one of the fastest
growing mobile providers in the Dutch market. A net intake of
27,000 (49,000) customers brought the total mobile customer base
to 768,000. This resulted in an increased end-user service revenue
of 36 percent, amounting to SEK 308 (227) million. In the quarter,
the consumer preferences continued to be more in favor of SIM-only
rather than mobile offers in combination with handsets.
MNO launch Tele2 Netherlands’ rollout continued to gather pace.
The preparatory work on site acquisitions, combined with backhaul
and power arrangements, has resulted in a growing funnel of sites
leading to an increase in the rollout speed.
Fixed broadband Tele2 Netherlands has focused on improving its
fixed service portfolio for the past three quarters. Q2 2014 marked
the expansion of the VDSL footprint from 1.5 million to 3.8 million
Dutch households, thereby enabling Tele2 Netherlands to offer
higher bandwidth connections.
The customer base development reflected these improvements and
following 36 months of decline, Tele2 Netherlands returned to
growth with a positive intake in the consumer segment. The total
customer base amounted to 367,000 (397,000).
In Q2 2014, the Dutch business sales team was once again able to
add several new big contracts to its client list. The company managed
to attract the Royal Dutch Airlines KLM, offering fixed line telephony to
more than 18.000 connections. Tele2 Netherlands will also execute an
important part of Tele2 Group’s contract with the Vattenfall Group,
offering nationwide M2M services to the Dutch branch Nuon.
Norway
On the 7th of July, Tele2 AB agreed to sell Tele2 Norway to Telia
Sonera for or an Enterprise Value of SEK 5.1 billion, equivalent to a
cash value of SEK 5.3 billion. The sale will be completed after
Overview by country
NET SALES LESS EXCHANGE RATE FLUCTUATIONS
SEK million
2014
Q2
2013
Q2* Growth
2014
YTD
2013
YTD* Growth
Sweden 3,111 3,139 –1% 6,132 6,219 –1%
Netherlands 1,318 1,425 –8% 2,638 2,812 –6%
Kazakhstan 309 279 11% 603 537 12%
Croatia 329 350 –6% 628 656 –4%
Lithuania 330 345 –4% 634 650 –2%
Latvia 223 231 –3% 436 477 –9%
Estonia 161 173 –7% 315 336 –6%
Austria 299 329 –9% 590 656 –10%
Germany 226 226 – 455 449 1%
Other 37 36 3% 64 75 –15%
Continued operations 6,343 6,533 –3%12,495 12,867 –3%
FX effects –109 2% –195 2%
Total 6,343 6,424 –1%12,495 12,672 –1%
* Adjusted for fluctuations in exchange rates.
EBITDA LESS EXCHANGE RATE FLUCTUATIONS
SEK million
2014
Q2
2013
Q2* Growth
2014
YTD
2013
YTD* Growth
Sweden 882 856 3% 1,707 1,690 1%
Netherlands 267 339 –21% 524 669 –22%
Kazakhstan 3 –44 – 4 –84 –
Croatia 33 23 43% 58 26 123%
Lithuania 127 140 –9% 235 262 –10%
Latvia 67 73 –8% 129 155 –17%
Estonia 38 38 – 77 85 –9%
Austria 58 81 –28% 107 174 –39%
Germany 31 39 –21% 65 92 –29%
Other –40 –25 –60% –81 –66 –23%
Continued operations 1,466 1,520 –4% 2,825 3,003 –6%
FX effects –46 3% –80 3%
Total 1,466 1,474 –1% 2,825 2,923 –3%
* Adjusted for fluctuations in exchange rates.

approval by regulatory authorities. As a result, Tele2 Norway is
reported under discontinued operations in the income statement,
with a retrospective effect in previous periods, and as assets held for
sale in the balance sheet as of June 30, 2014 (see Note 10).
Kazakhstan
Mobile Throughout Q2 2014, Tele2 Kazakhstan continued to show
growing customer intake and good operational progress. Customer
intake amounted to 213,000 (309,000) customers during the quar-
ter, taking the total customer base to 2,984,000 (3,162,000). Mobile
end-user service revenue grew by 1 percent compared to same
quarter previous year due to termination rate cut and devaluation of
local currency and amounted to SEK 225 (223) million. The EBITDA
contribution was SEK 3 (–52) million.
Tele2 Kazakhstan kept launching new offers for customers,
such as the unlimited on-net tariff plan in eight new regions of
Kazakhstan, aimed at strengthening its price leadership position in
the market. Furthermore, the first online re-registration of a mobile
number was launched by Tele2 Kazakhstan in June 2014.
The company continued to invest in its mobile network in order to
improve quality perception in the market. Most efforts concentrated
on expanding geographical coverage and improving network qual-
ity. This, combined with commercial activities and the launches of
new offers across all the regions of Kazakhstan, resulted in a more
than 75 percent increase in mobile data traffic.
Croatia
Mobile With attractive offers during the whole quarter and a special
offer in June, Tele2 Croatia achieved a net intake of 45,000 (13,000)
customers. Tele2 Croatia had a solid end-user service revenue
increase of 7 percent, while net sales declined by –1 percent due to
reduced mobile termination rates and lower roaming prices. During
Q2 2014, Tele2 Croatia continued to improve operationally with a
strong EBITDA contribution of SEK 33 (22) million.
The regulatory environment became more uncertain in the
quarter as the local government unexpectedly announced the
increase of radio frequency fees in the country by three times by
December 2014. Tele2 Croatia believes that the frequency fee
increase is in breach of EU legislation and is disputing the mat-
ter. However, as a proactive measure Tele2 Croatia increased
prices from July 1 for all its customers to cover the increased cost
for frequencies.
Lithuania
Mobile Despite strong competition, Tele2 Lithuania maintained a
solid performance in Q2 2014 with stable end-user services revenue
at SEK 213 (213) million.
During the quarter, Tele2 Lithuania reached an EBITDA of SEK 127
(133) million. The decline was mainly driven by higher level of acqui-
sition and marketing costs required in Q2 2014 to face increased com-
petition. However, Tele2 Lithuania’s EBITDA margin remained high at
38 (41) percent in the quarter due to good cost control.
Faced with intensified price pressure from competition, Tele2
Lithuania will work to further improve its retention activities. The
company will also continue to aggressively grow its market share in
the business segment, benefiting from general price sensitivity
among private companies and state-owned organizations.
Tele2 Lithuania maintained its efforts to build out its 2G/3G/4G
network to improve its perception in the market. As a result of final-
ized network swap Tele2 Lithuania has very modern infrastructure
ready for 4G and improved customer experience.
Tele2 Lithuania was selected to be the most efficient company in
Lithuania in a 3rd party survey.
Latvia
Mobile Tele2 Latvia continued to operate under difficult market
conditions in Q2 2014.
The company’s end-user service revenue was SEK 134 (136)
million in the quarter, impacted by reduced mobile termination rates.
Having achieved a significant gain in reputation through ongoing
attention to service excellence and performance, Tele2 Latvia con-
centrated its efforts on maintaining its efficiency during the quarter
despite a heightened level of competition in the market. However, as
a result of increasing price pressure, the EBITDA margin decreased to
30 (32) percent.
Tele2 Latvia will pursue its active position in the market while
keeping its focus on revenue growth, customer satisfaction and
future development.
Network swap has been finalized and Tele2 Latvia now has a
very modern infrastructure ready for 4G and improved customer
experience.
Tele2 Latvia was awarded as the best customer service provider
among all telecom operators in Latvia.
Estonia
Mobile Tele2 Estonia showed a solid financial performance during
Q2 2014 under difficult market conditions, with end-user service
revenue and EBITDA amounting to SEK 97 (98) million and SEK 32
(28) million respectively.
Tele2 Estonia achieved a record high Customer Satisfaction score
in Q2 2014 and launched 4G for mobile broadband services on the
800 MHz band.
Tele2 Estonia will focus on increasing customer intake by
utilizing all commercial channels, but especially its own shops as
they generate higher ARPU customers. Tele2 Estonia will also work
on optimizing its fiber network. The objective is to acquire more
business customers by providing them with direct data link not only
in Estonia, but also through partners abroad.
The network swap is planned to be finalized during Q3 2014,
which will lead to a very modern infrastructure ready for 4G and
improved customer experience.
Tele2 Estonia prepaid was the most popular prepaid card in
Estonia in a survey concluded in Q1 2014.
Austria
In the quarter Tele2 Austria’s net sales amounted to SEK 299 (311)
million stabilized by enhanced focus on driving growth in the busi-
ness and residential segments. As a result of increased marketing
activities EBITDA amounted to SEK 58 (77) million. Tele2 Austria
maintained a very high customer satisfaction level at 83 percent.
Fixed broadband Tele2 Austria continued to work on improving its
brand and market positioning during the quarter, leading to an
uptick in customer intake. EBITDA contribution improved compared
to Q1 2014, and reached SEK 28 million.
Fixed telephony Successful retention and cross-selling activities
through online continued throughout the quarter.
Germany
Solid growth in the mobile segment continued during the quarter, in
a highly competitive market. The fixed and broadband segments still

provided sustainable financial performance to support Tele2 Germa-
ny’s transformation into a fixed and mobile service provider. The tar-
geted stabilization and growth of the German operations is develop-
ing as planned resulting in a net sales increase of 6 percent to SEK
226 (214) million in Q2 2014 compared to the same period last year.
Mobile The mobile segment showed a solid net intake, adding
18.000 (13.000) new customers in the quarter thanks to an
improved sales channels setup. End-user service revenue growth
increased to SEK 106 (73) million in Q2 2014. The services’s positive
development more than compensates for the decline of customers
and net sales in the fixed line services.
Fixed broadband and telephony Though following the general
declining market trend, the fixed telephony (Carrier Pre-Selection
and Open Call-by-Call) and fixed broadband segments generated
cash contributions above plan and provided a source for cross-sale
to mobile services – both regular mobile services and higher ARPU
fixed-via mobile services.
Other Items
Risks and uncertainty factors
Tele2’s operations are affected by a number of external factors. The
risk factors considered to be most significant to Tele2’s future devel-
opment are operating risks, such as the availability of frequencies
and telecom licenses, price competition, integration of new business
models, changes in regulatory legislation, operation in Kazakhstan,
network sharing with other parties, and financial risks such as cur-
rency risk, interest risk, liquidity risk and credit risk. In addition to
the risks described in Tele2’s annual report for 2013 (see Directors’
report and Note 2 of the report for a detailed description of Tele2’s
risk exposure and risk management), no additional significant risks
are estimated to have developed.
Company disclosure
Other
Tele2 will release the financial and operating results for the period
ending September 30, 2014 on October 23, 2014.
The Board of Directors and CEO declare that the six-month interim
report provides a fair overview of the parent company’s and Group’s
operations, their financial position and performance, and describes
material risks and uncertainties facing the parent company and
other companies in the Group.
Stockholm, July 16, 2014
Tele2 AB
Mike Parton
Chairman
Lars Berg Mia Brunell Livfors Lorenzo Grabau Irina Hemmers
Erik Mitteregger Carla Smits-Nusteling Mario Zanotti
Mats Granryd
President and CEO
Auditors’ Review Report
Introduction
We have reviewed the interim report for Tele2 AB (publ.) for the
period January 1 – June 30, 2014. The Board of Directors and the
President are responsible for the preparation and presentation of
this interim report in accordance with IAS 34 and the Annual
Accounts Act. Our responsibility is to express a conclusion on this
interim report based on our review.
Scope of Review
We conducted our review in accordance with International Stand-
ard on Review Engagements 2410, Review of Interim Financial
Information Performed by the Independent Auditor of the Entity.
A review consists of making inquiries, primarily of persons respon-
sible for financial and accounting matters, and applying analytical
and other review procedures. A review has a different focus and is
substantially less in scope than an audit conducted in accordance

Q2 2014 PRESENTATION
Tele2 will host a presentation, with the possibility to join through a conference call, for the global
financial community at 10:00 am CEST (09:00 am BST/04:00 am EDT) on Wednesday, July 16,
2014. The presentation will be held in English and also made available as an audiocast on
Tele2’s website: www.tele2.com.
Dial-in information
To ensure that you are connected to the conference call, please dial in a few minutes before the
start of the conference call to register your attendance.
Dial-in numbers
Sweden: +46 8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
TELE2 IS ONE OF EUROPE’S FASTEST GROWING TELECOM OPERATORS, ALWAYS PROVIDING CUSTOMERS WITH WHAT THEY NEED FOR LESS.
We have 13 million customers in 9 countries. Tele2 offers mobile services, fixed broadband and fixed telephony, data network services, and
content services. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopo-
lies and other established providers. Tele2 has been listed on the NASDAQ OMX Stockholm since 1996. In 2013, we had net sales of SEK 26
billion and reported an operating profit (EBITDA) of SEK 6 billion.
CONTACTS
Mats Granryd
President CEO
Telephone: + 46 (0)8 5620 0060
Allison Kirkby
CFO
Telephone: + 46 (0)8 5620 0060
Lars Torstensson
EVP, Communication Strategy
Telephone: + 46 (0)8 5620 0042
Tele2 AB
Company registration nr: 556410-8917
Skeppsbron 18
P.O. Box 2094
SE-103 13 Stockholm
Sweden
Tel + 46 (0)8 5620 0060
www.tele2.com
VISIT OUR WEBSITE: www.tele2.com
APPENDICES
Income statement
Comprehensive income
Change in equity
Balance sheet
Cash flow statement
Numbers of customers
Net sales
Internal sales
Mobile external net sales split
EBITDA
EBIT
CAPEX
Key ratios
Parent company
Notes
Stockholm, July 16, 2014
Deloitte AB
Thomas Strömberg
Authorized Public Accountant
with ISA and other generally accepted auditing practices. The pro-
cedures performed in a review do not enable us to obtain a level of
assurance that would make us aware of all significant matters that
might be identified in an audit. Therefore, the conclusion expressed
based on a review does not give the same level of assurance as a
conclusion expressed based on an audit.
Conclusion
Based on our review, nothing has come to our attention that causes
us to believe that the interim report is not, in all material respects,
prepared for the Group in accordance with IAS 34 and the Annual
Accounts Act, and for the Parent Company in accordance with the
Annual Accounts Act.

Income statement
SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2013
Q2

CONTINUING OPERATIONS
Net sales 1 12,495 12,672 25,757 6,343 6,424
Cost of services sold 2 –7,191 –7,394 –15,445 –3,638 –3,737
Gross profit 5,304 5,278 10,312 2,705 2,687

Selling expenses 2 –2,667 –2,682 –5,541 –1,343 –1,362
Administrative expenses 2 –1,199 –1,138 –2,339 –612 –582
Result from shares in joint ventures and associated companies –6 –11 –17 –3 –5
Other operating income 10 441 102 206 93 56
Other operating expenses 2 –129 –41 –95 –53 –22
Operating profit, EBIT 1,744 1,508 2,526 787 772

Interest income/costs 3 –185 –154 –368 –95 –49
Other financial items 4 281 –59 –183 334 –99
Profit after financial items, EBT 1,840 1,295 1,975 1,026 624

Income tax 5 –439 –486 –1,024 –208 –255
NET PROFIT FROM CONTINUING OPERATIONS 1,401 809 951 818 369

DISCONTINUED OPERATIONS
Net profit/loss from discontinued operations 10 –222 13,783 13,639 –114 13,214
NET PROFIT 1,179 14,592 14,590 704 13,583

ATTRIBUTABLE TO
Equity holders of the parent company 1,179 14,592 14,590 704 13,583

Earnings per share (SEK) 9 2.65 32.79 32.77 1.58 30.52
Earnings per share, after dilution (SEK) 9 2.63 32.59 32.55 1.57 30.34

FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO
Equity holders of the parent company 1,401 809 951 818 369

Earnings per share (SEK) 9 3.15 1.81 2.14 1.84 0.82
Earnings per share, after dilution (SEK) 9 3.13 1.81 2.12 1.83 0.82

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2013
Q2
Net profit 1,179 14,592 14,590 704 13,583
OTHER COMPREHENSIVE INCOME
Components not to be reclassified to net profit
Pensions, actuarial gains/losses –15 – 203 –14 –
Pensions, actuarial gains/losses, tax effect 3 – –45 3 –
Total components not to be reclassified to net profit –12 – 158 –11 –
Components that may be reclassified to net profit
Exchange rate differences 10 345 175 266 405 711
Exchange rate differences, tax effect –31 –74 –18 –19 1
Reversed cumulative exchange rate differences from divested companies 10 –3 1,734 1,716 – 1,733
Cash flow hedges –73 84 82 –38 116
Cash flow hedges, tax effect 16 –18 –18 8 –25
Total components that may be reclassified to net profit 254 1,901 2,028 356 2,536
Other comprehensive income for the period, net of tax 242 1,901 2,186 345 2,536
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,421 16,493 16,776 1,049 16,119
ATTRIBUTABLE TO
Equity holders of the parent company 1,421 16,493 16,776 1,049 16,119
Comprehensive income
Change in equity
Jun 30, 2014 Jun 30, 2013 Dec 31, 2013
Attributable to Attributable to Attributable to
SEK million Note
equity
holders of
the parent
company
non-
controlling
interests
Total
equity
equity
holders of
the parent
company
non-
controlling
interests
Total
equity
equity
holders of
the parent
company
non-
controlling
interests
Total
equity
Equity, January 1 21,589 2 21,591 20,426 3 20,429 20,426 3 20,429
Net profit for the period 1,179 – 1,179 14,592 – 14,592 14,590 – 14,590
Other comprehensive income for
the period, net of tax 242 – 242 1,901 – 1,901 2,186 – 2,186
Total comprehensive income
for the period 1,421 – 1,421 16,493 – 16,493 16,776 – 16,776
Other changes in equity
Share-based payments 9 13 – 13 1 – 1 14 – 14
Share-based payments, tax effect 9 –1 – –1 8 – 8 10 – 10
Dividends 9 –1,960 – –1,960 –3,163 – –3,163 –3,163 – –3,163
Redemption of shares 9 – – – –12,474 – –12,474 –12,474 – –12,474
Purchase of non-controlling
interests 9 – – – – –1 –1 – –1 –1
EQUITY, END OF THE PERIOD 21,062 2 21,064 21,291 2 21,293 21,589 2 21,591

Balance sheet
SEK million Note Jun 30, 2014 Jun 30, 2013 Dec 31, 2013
ASSETS
NON-CURRENT ASSETS
Goodwill 9,133 9,462 9,537
Other intangible assets 2 4,811 5,339 5,183
Intangible assets 13,944 14,801 14,720
Tangible assets 2 10,006 11,904 11,747
Financial assets 3 307 103 365
Deferred tax assets 5 2,246 3,239 2,753
NON-CURRENT ASSETS 26,503 30,047 29,585
CURRENT ASSETS
Inventories 602 410 471
Current receivables 6,800 8,345 7,948
Current investments 41 52 55
Cash and cash equivalents 6 526 740 1,348
CURRENT ASSETS 7,969 9,547 9,822
ASSETS CLASSIFIED AS HELD FOR SALE 10 4,092 – 448
ASSETS 38,564 39,594 39,855
EQUITY AND LIABILITIES
EQUITY
Attributable to equity holders of the parent company 21,062 21,291 21,589
Non-controlling interests 2 2 2
EQUITY 9 21,064 21,293 21,591
NON-CURRENT LIABILITIES
Interest-bearing liabilities 3 5,177 6,222 6,282
Non-interest-bearing liabilities 5 395 591 441
NON-CURRENT LIABILITIES 5,572 6,813 6,723
CURRENT LIABILITIES
Interest-bearing liabilities 3 4,573 3,463 3,148
Non-interest-bearing liabilities 6,463 8,025 8,340
CURRENT LIABILITIES 11,036 11,488 11,488
LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS
CLASSIFIED AS HELD FOR SALE 10 892 – 53
EQUITY AND LIABILITIES 38,564 39,594 39,855

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
OPERATING ACTIVITIES
Operating profit 1,533 15,505 16,339 679 854 586 248 13,926 1,579
Adjustments for non-cash items
in operating profit 1,324 –11,318 –9,141 806 518 891 1,286 –12,426 1,108
Financial items paid –163 –182 –455 –122 –41 –141 –132 –69 –113
Taxes paid –171 –339 –479 –46 –125 –109 –31 –7 –332
Cash flow from operations before
changes in working capital 2,523 3,666 6,264 1,317 1,206 1,227 1,371 1,424 2,242
Changes in working capital –710 –730 –451 –11 –699 293 –14 –63 –667
CASH FLOW FROM OPERATING ACTIVITIES 1,813 2,936 5,813 1,306 507 1,520 1,357 1,361 1,575
INVESTING ACTIVITIES
CAPEX paid 7 –2,094 –3,366 –5,241 –1,032 –1,062 –1,013 –862 –905 –2,461
Cash flow after CAPEX –281 –430 572 274 –555 507 495 456 –886
Acquisition and sale of shares and participations 10 710 17,284 17,228 –39 749 –4 –52 17,392 –108
Other financial assets 17 12 7 3 14 –6 1 8 4
Cash flow from investing activities –1,367 13,930 11,994 –1,068 –299 –1,023 –913 16,495 –2,565
CASH FLOW AFTER INVESTING ACTIVITIES 446 16,866 17,807 238 208 497 444 17,856 –990
FINANCING ACTIVITIES
Change of loans, net 3 654 –2,105 –2,433 1,640 –986 –169 –159 –1,876 –229
Dividends 9 –1,960 –3,163 –3,163 –1,960 – – – –3,163 –
Redemption of shares 9 – –12,474 –12,474 – – – – –12,474 –
Other financing activities 9 – –94 –94 – – – – – –94
Cash flow from financing activities –1,306 –17,836 –18,164 –320 –986 –169 –159 –17,513 –323
NET CHANGE IN CASH AND CASH EQUIVALENTS –860 –970 –357 –82 –778 328 285 343 –1,313
Cash and cash equivalents at beginning of period 1,348 1,673 1,673 593 1,348 1,024 740 386 1,673
Exchange rate differences in cash and cash
equivalents 38 37 32 15 23 –4 –1 11 26
CASH AND CASH EQUIVALENTS
AT END OF THE PERIOD 6 526 740 1,348 526 593 1,348 1,024 740 386
Cash flow statement(Total operations)

Numbers of customers Net intake
by thousands Note
2014
Jun 30
2013
Jun 30
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 3,717 3,743 –21 –14 38 –8 –13 –8 60 20 –34
Fixed broadband 1 68 474 –12 –10 –19 –6 –6 –7 –2 3 –13
Fixed telephony 252 304 –21 –37 –68 –12 –9 –16 –15 –16 –21
4,037 4,521 –54 –61 –49 –26 –28 –31 43 7 –68
Netherlands
Mobile 768 584 74 106 224 27 47 62 56 49 57
Fixed broadband 367 397 –7 –24 –47 –1 –6 –11 –12 –10 –14
Fixed telephony 90 120 –17 –21 –34 –7 –10 –7 –6 –10 –11
1,225 1,101 50 61 143 19 31 44 38 29 32
Kazakhstan
Mobile 2,984 3,162 233 561 154 213 20 –393 –14 309 252
2,984 3,162 233 561 154 213 20 –393 –14 309 252
Croatia
Mobile 844 789 51 35 40 45 6 –45 50 13 22
844 789 51 35 40 45 6 –45 50 13 22
Lithuania
Mobile 1,865 1,811 14 28 81 –4 18 –1 54 16 12
1,865 1,811 14 28 81 –4 18 –1 54 16 12
Latvia
Mobile 993 1,051 –38 8 –9 1 –39 –41 24 11 –3
993 1,051 –38 8 –9 1 –39 –41 24 11 –3
Estonia
Mobile 492 507 –11 1 – –6 –5 –8 7 2 –1
Fixed telephony 4 4 – –1 –1 –1 1 – – –1 –
496 511 –11 – –1 –7 –4 –8 7 1 –1
Austria
Fixed broadband 114 122 –4 –5 –9 –1 –3 –2 –2 –2 –3
Fixed telephony 156 178 –11 –13 –24 –5 –6 –6 –5 –6 –7
270 300 –15 –18 –33 –6 –9 –8 –7 –8 –10
Germany
Mobile 214 135 38 25 66 18 20 20 21 13 12
Fixed broadband 67 75 –4 –7 –11 –1 –3 –2 –2 –3 –4
Fixed telephony 444 493 –22 –101 –128 –2 –20 –17 –10 –76 –25
725 703 12 –83 –73 15 –3 1 9 –66 –17
TOTAL
Mobile 11,877 11,782 340 750 594 286 54 –414 258 433 317
Fixed broadband 1 616 1,068 –27 –46 –86 –9 –18 –22 –18 –12 –34
Fixed telephony 946 1,099 –71 –173 –255 –27 –44 –46 –36 –109 –64
TOTAL NUMBERS OF
CUSTOMERS AND NET INTAKE 13,439 13,949 242 531 253 250 –8 –482 204 312 219
Divested operations 1 –385 – – – –385 – – – –
Changed method
of calculation 1 – –811 –900 – – –89 – –811 –
TOTAL NUMBERS OF
CUSTOMERS AND NET CHANGE 13,439 13,949 –143 –280 –647 250 –393 –571 204 –499 219
Numbers of customers

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 1 5,352 4,977 10,075 2,726 2,626 2,590 2,508 2,540 2,437
Fixed broadband 1, 10 365 732 1,411 185 180 345 334 349 383
Fixed telephony 349 450 841 168 181 188 203 218 232
Other operations 69 64 133 34 35 34 35 33 31
6,135 6,223 12,460 3,113 3,022 3,157 3,080 3,140 3,083
Netherlands
Mobile 893 772 1,682 458 435 447 463 417 355
Fixed broadband 1,243 1,335 2,632 617 626 651 646 650 685
Fixed telephony 220 285 551 103 117 131 135 142 143
2,639 2,681 5,436 1,319 1,320 1,372 1,383 1,350 1,331
Kazakhstan
Mobile 603 622 1,344 309 294 365 357 333 289
603 622 1,344 309 294 365 357 333 289
Croatia
Mobile 628 629 1,397 329 299 396 372 333 296
628 629 1,397 329 299 396 372 333 296
Lithuania
Mobile 638 624 1,289 332 306 329 336 329 295
638 624 1,289 332 306 329 336 329 295
Latvia
Mobile 441 459 926 226 215 233 234 221 238
441 459 926 226 215 233 234 221 238
Estonia
Mobile 288 287 606 148 140 156 163 148 139
Fixed telephony 4 5 10 2 2 2 3 2 3
315 320 674 161 154 172 182 164 156
Austria
Fixed broadband 388 404 811 195 193 203 204 202 202
Fixed telephony 83 97 190 41 42 47 46 47 50
590 625 1,244 299 291 306 313 311 314
Germany
Mobile 212 140 321 108 104 99 82 74 66
Fixed broadband 84 88 171 41 43 40 43 43 45
Fixed telephony 159 200 375 77 82 87 88 97 103
455 428 867 226 229 226 213 214 214
Other
66 75 152 38 28 37 40 36 39
TOTAL
Mobile 9,055 8,510 17,640 4,636 4,419 4,615 4,515 4,395 4,115
Fixed broadband 10 2,080 2,559 5,025 1,038 1,042 1,239 1,227 1,244 1,315
Fixed telephony 815 1,037 1,967 391 424 455 475 506 531
Other operations 560 580 1,157 287 273 284 293 286 294
12,510 12,686 25,789 6,352 6,158 6,593 6,510 6,431 6,255
Internal sales, elimination –15 –14 –32 –9 –6 –8 –10 –7 –7
TOTAL 12,495 12,672 25,757 6,343 6,152 6,585 6,500 6,424 6,248
Net sales

Internal sales
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 3 4 7 2 1 1 2 1 3
3 4 7 2 1 1 2 1 3
Netherlands
Other operations 1 1 1 1 – – – 1 –
1 1 1 1 – – – 1 –
Lithuania
Mobile 4 5 9 2 2 2 2 3 2
4 5 9 2 2 2 2 3 2
Latvia
Mobile 5 4 11 3 2 3 4 2 2
5 4 11 3 2 3 4 2 2
Other
Other operations 2 – 4 1 1 2 2 – –
2 – 4 1 1 2 2 – –
TOTAL
Mobile 12 13 27 7 5 6 8 6 7
Other operations 3 1 5 2 1 2 2 1 –
TOTAL 15 14 32 9 6 8 10 7 7

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden, mobile
End user service revenue 3,531 3,408 6,950 1,815 1,716 1,775 1,767 1,746 1,662
Operator revenue 1 508 544 982 224 284 209 229 274 270
Service revenue 4,039 3,952 7,932 2,039 2,000 1,984 1,996 2,020 1,932
Equipment revenue 994 728 1,535 527 467 449 358 373 355
Other revenue 316 293 601 158 158 156 152 146 147
5,349 4,973 10,068 2,724 2,625 2,589 2,506 2,539 2,434
Netherlands, mobile
End user service revenue 581 424 944 308 273 261 259 227 197
Operator revenue 73 63 131 39 34 34 34 34 29
Service revenue 654 487 1,075 347 307 295 293 261 226
Equipment revenue 239 285 607 111 128 152 170 156 129
893 772 1,682 458 435 447 463 417 355
Kazakhstan, mobile
Service revenue 593 606 1,311 305 288 357 348 325 281
603 622 1,344 309 294 365 357 333 289
Croatia, mobile
Service revenue 498 495 1,047 262 236 262 290 259 236
628 629 1,397 329 299 396 372 333 296
Lithuania, mobile
Service revenue 493 490 988 257 236 242 256 245 245
634 619 1,280 330 304 327 334 326 293
Latvia, mobile
Service revenue 373 385 758 189 184 185 188 182 203
436 455 915 223 213 230 230 219 236
Estonia, mobile
Service revenue 220 224 456 114 106 112 120 114 110
288 287 606 148 140 156 163 148 139
Germany, mobile
Service revenue 208 138 316 106 102 97 81 73 65
212 140 321 108 104 99 82 74 66
TOTAL, MOBILE
End user service revenue 5,998 5,621 11,635 3,094 2,904 3,006 3,008 2,900 2,721
Operator revenue 1,080 1,156 2,248 525 555 528 564 579 577
Service revenue 7,078 6,777 13,883 3,619 3,459 3,534 3,572 3,479 3,298
Equipment revenue 1,649 1,427 3,129 852 797 919 783 764 663
Other revenue 316 293 601 158 158 156 152 146 147
TOTAL 9,043 8,497 17,613 4,629 4,414 4,609 4,507 4,389 4,108
Mobile external net sales split

EBITDA
SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 1–2 1,522 1,489 2,971 777 745 722 760 757 732
Fixed broadband 1, 2, 10 35 39 143 25 10 55 49 19 20
Fixed telephony 1–2 100 127 243 57 43 55 61 62 65
1,707 1,690 3,448 882 825 858 900 856 834
Netherlands
Mobile –59 –24 –20 –23 –36 26 –22 –2 –22
Fixed broadband 361 445 854 169 192 217 192 216 229
Fixed telephony 2 93 72 137 63 30 30 35 38 34
524 638 1,251 267 257 342 271 321 317
Kazakhstan
Mobile 4 –97 –138 3 1 –7 –34 –52 –45
4 –97 –138 3 1 –7 –34 –52 –45
Croatia
Mobile 58 25 95 33 25 22 48 22 3
58 25 95 33 25 22 48 22 3
Lithuania
Mobile 235 250 461 127 108 102 109 133 117
235 250 461 127 108 102 109 133 117
Latvia
Mobile 129 148 292 67 62 72 72 69 79
129 148 292 67 62 72 72 69 79
Estonia
Mobile 65 63 124 32 33 28 33 28 35
Fixed telephony 1 2 4 – 1 1 1 2 –
77 81 161 38 39 37 43 36 45
Austria
Fixed broadband 52 99 184 28 24 37 48 45 54
Fixed telephony 45 55 106 24 21 25 26 26 29
107 166 308 58 49 65 77 77 89
Germany
Mobile –14 –3 –30 –7 –7 –2 –25 –5 2
Fixed broadband 10 7 13 3 7 4 2 3 4
Fixed telephony 69 84 155 35 34 30 41 39 45
65 88 138 31 34 32 18 37 51
Other
Other operations –81 –66 –147 –40 –41 –45 –36 –25 –41
–81 –66 –147 –40 –41 –45 –36 –25 –41
TOTAL
Mobile 1,940 1,851 3,755 1,009 931 963 941 950 901
Fixed broadband 10 458 590 1,194 225 233 313 291 283 307
Fixed telephony 308 340 645 179 129 141 164 167 173
TOTAL 2,825 2,923 5,869 1,466 1,359 1,478 1,468 1,474 1,449

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 1-2 995 990 1,937 513 482 450 497 508 482
Fixed broadband 1, 2, 10 –15 –117 –134 –1 –14 11 –28 –59 –58
Fixed telephony 1-2 91 112 219 51 40 50 57 54 58
1,100 995 2,063 575 525 528 540 509 486
Netherlands
Mobile –82 –40 –52 –37 –45 17 –29 –11 –29
Fixed broadband 100 207 371 34 66 90 74 97 110
Fixed telephony 2 86 64 121 60 26 27 30 34 30
197 342 650 97 100 184 124 172 170
Kazakhstan
Mobile 2 –96 –202 –450 –46 –50 –155 –93 –106 –96
–96 –202 –450 –46 –50 –155 –93 –106 –96
Croatia
Mobile 20 –31 –6 14 6 4 21 –6 –25
20 –31 –6 14 6 4 21 –6 –25
Lithuania
Mobile 198 189 342 108 90 73 80 102 87
198 189 342 108 90 73 80 102 87
Latvia
Mobile 82 84 188 45 37 55 49 43 41
82 84 188 45 37 55 49 43 41
Estonia
Mobile 10 18 32 4 6 6 8 5 13
Fixed telephony 1 1 3 1 – – 2 1 –
15 29 55 7 8 11 15 10 19
Austria
Fixed broadband 13 62 109 8 5 19 28 27 35
Fixed telephony 29 40 74 17 12 15 19 19 21
Other operations –1 2 – –1 – –1 –1 1 1
41 104 183 24 17 33 46 47 57
Germany
Mobile –34 –14 –52 –21 –13 –6 –32 –11 –3
Fixed broadband 6 3 4 1 5 1 – 1 2
Fixed telephony 58 79 147 25 33 29 39 36 43
30 68 99 5 25 24 7 26 42
Other
Other operations –86 –75 –164 –43 –43 –44 –45 –28 –47
–86 –75 –164 –43 –43 –44 –45 –28 –47
TOTAL
Mobile 1,093 994 1,939 580 513 444 501 524 470
Fixed broadband 10 104 155 350 42 62 121 74 66 89
Fixed telephony 265 296 564 154 111 121 147 144 152
1,501 1,503 2,960 786 715 713 744 769 734
One-off items 2 243 5 –434 1 242 11 –450 3 2
TOTAL 1,744 1,508 2,526 787 957 724 294 772 736
EBIT

SPECIFICATION OF ITEMS BETWEEN EBITDA AND EBIT
SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
EBITDA 2,825 2,923 5,869 1,466 1,359 1,478 1,468 1,474 1,449
Impairment of goodwill
and other assets 2 – – –457 – – –3 –454 – –
Sale of operations 10 261 5 23 1 260 14 4 3 2
Other one-off items 2 –18 – – – –18 – – – –
Total one-off items 243 5 –434 1 242 11 –450 3 2
Depreciation/amortization and
other impairment 2 –1,318 –1,409 –2,892 –677 –641 –762 –721 –700 –709
Result from shares in joint ventures
and associated companies –6 –11 –17 –3 –3 –3 –3 –5 –6
EBIT 1,744 1,508 2,526 787 957 724 294 772 736
EBIT, cont.

SEK million Note
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Sweden
Mobile 218 396 766 133 85 226 144 211 185
Fixed broadband 10 26 88 165 13 13 35 42 36 52
255 499 965 152 103 272 194 254 245
Netherlands
Mobile 7 409 1,386 1,648 272 137 232 30 15 1,371
Fixed broadband 201 143 379 90 111 154 82 76 67
631 1,546 2,067 372 259 401 120 99 1,447
Kazakhstan
Mobile 151 226 464 85 66 118 120 139 87
151 226 464 85 66 118 120 139 87
Croatia
Mobile 33 21 62 24 9 29 12 17 4
33 21 62 24 9 29 12 17 4
Lithuania
Mobile 46 51 93 26 20 27 15 22 29
46 51 93 26 20 27 15 22 29
Latvia
Mobile 38 31 103 27 11 31 41 18 13
38 31 103 27 11 31 41 18 13
Estonia
Mobile 7 96 21 62 15 81 32 9 11 10
Other operations 4 1 3 4 – 1 1 1 –
100 22 65 19 81 33 10 12 10
Austria
Fixed broadband 12 15 38 5 7 10 13 9 6
Fixed telephony 10 13 29 4 6 6 10 7 6
26 33 80 11 15 19 28 19 14
Germany
Mobile 10 13 19 4 6 1 5 6 7
Fixed broadband – 2 3 – – 1 – 2 –
Fixed telephony – – 2 – – – 2 – –
10 15 24 4 6 2 7 8 7
Other
269 250 476 130 139 115 111 126 124
TOTAL
Mobile 1,001 2,145 3,217 586 415 696 376 439 1,706
Fixed broadband 10 239 248 585 108 131 200 137 123 125
Fixed telephony 19 21 46 9 10 9 16 11 10
TOTAL 7 1,559 2,694 4,399 850 709 1,047 658 714 1,980
CAPEX

SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013 2012 2011 2010
CONTINUING OPERATIONS
Net sales 12,495 12,672 25,757 25,993 26,219 27,361
Numbers of customers (by thousands) 13,439 13,949 13,582 14,229 12,392 11,845
EBITDA 2,825 2,923 5,869 6,026 6,740 6,873
EBIT 1,744 1,508 2,526 2,176 3,598 4,081
EBT 1,840 1,295 1,975 1,654 3,059 3,657
Net profit 1,401 809 951 1,147 2,158 3,981
Key ratios
EBITDA margin, % 22.6 23.1 22.8 23.2 25.7 25.7
EBIT margin, % 14.0 11.9 9.8 8.4 13.7 14.9
Value per share (SEK)
Net profit 3.15 1.81 2.14 2.58 4.86 9.02
Net profit after dilution 3.13 1.81 2.12 2.57 4.83 8.98
TOTAL
Equity 21,064 21,293 21,591 20,429 21,452 28,875
Total assets 38,564 39,594 39,855 49,189 46,864 42,085
Cash flow from operating activities 1,813 2,936 5,813 8,679 9,690 9,966
Cash flow after CAPEX –281 –430 572 4,070 4,118 6,008
Available liquidity 8,661 12,033 9,306 12,933 9,986 13,254
Net debt 9,268 8,879 8,007 15,745 13,518 3,417
Investments in intangible and
tangible assets, CAPEX 1,974 3,356 5,534 5,294 6,095 4,094
Investments in shares and other financial assets –727 –17,296 –17,235 215 1,563 1,424
Key ratios
Equity/assets ratio, % 55 54 54 42 46 69
Debt/equity ratio, multiple 0.44 0.42 0.37 0.77 0.63 0.12
Return on equity, % 11.1 73.2 69.5 15.6 18.9 24.0
ROCE, return on capital employed, % 10.2 49.7 48.0 15.4 20.5 22.2
Average interest rate, % 5.3 4.8 5.2 6.7 6.2 7.3
Value per share (SEK)
Net profit 2.65 32.79 32.77 7.34 10.69 15.67
Net profit after dilution 2.63 32.59 32.55 7.30 10.63 15.61
Equity 47.28 47.85 48.49 45.95 48.33 65.44
Cash flow from operating activities 4.07 6.60 13.06 19.53 21.83 22.59
Dividend, ordinary – – 4.40 7.10 6.50 6.00
Extraordinary dividend – – – – 6.50 21.00
Redemption – 28.00 28.00 – – –
Market price at closing day 78.70 78.75 72.85 117.10 133.90 139.60
Key ratios

INCOME STATEMENT
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
Net sales 35 23 47
Administrative expenses –70 –56 –95
Operating loss, EBIT –35 –33 –48
Dividend from group company 967 – 9,900
Exchange rate difference on financial items –70 68 134
Net interest expenses and other financial items –120 –113 –216
Profit/loss after financial items, EBT 742 –78 9,770
Appropriations, group contribution – – 265
Tax on profit/loss 50 21 –23
NET PROFIT/LOSS 792 –57 10,012
Parent company
BALANCE SHEET
SEK million Note Jun 30, 2014 Dec 31, 2013
ASSETS
NON-CURRENT ASSETS
Financial assets 13,602 13,586
NON-CURRENT ASSETS 13,602 13,586
CURRENT ASSETS
Current receivables 11,407 11,933
Cash and cash equivalents 1 –
CURRENT ASSETS 11,408 11,933
ASSETS 25,010 25,519
EQUITY AND LIABILITIES
EQUITY
Restricted equity 9 5,546 5,546
Unrestricted equity 9 11,913 13,126
EQUITY 17,459 18,672
Interest-bearing liabilities 3 4,308 5,308
NON-CURRENT LIABILITIES 4,308 5,308
CURRENT LIABILITIES
Interest-bearing liabilities 3 3,174 1,452
Non-interest-bearing liabilities 69 87
CURRENT LIABILITIES 3,243 1,539
EQUITY AND LIABILITIES 25,010 25,519

ACCOUNTING PRINCIPLES AND DEFINITIONS
The interim report for the Group has been prepared in accordance with
IAS 34 and the Swedish Annual Accounts Act, and the interim report for
the parent company has been prepared in accordance with the Swed-
ish Annual Accounts Act and the Swedish Financial Reporting Board
recommendation RFR 2 Reporting for legal entities and its statements.
The new and amended IFRS standards and IFRIC interpretations
(IFRS 10, IFRS 11, IFRS 12, IAS 27, IAS 28, IAS 32, IAS 36, IAS 39 and
IFRIC 21), which became effective January 1, 2014, have had no mate-
rial effect on the consolidated financial statements.
In all other respects, Tele2 has presented this interim report in
accordance with the accounting principles and calculation methods
used in the 2013 Annual Report. The description of these principles
and definitions is found in the 2013 Annual Report.
NOTE 1 NET SALES AND CUSTOMERS
NET SALES
In Q1 2014, the net sales in Sweden was positively impacted by SEK
73 million as a result of decisions by the Swedish Post and Telecom
Authority (PTS) regarding termination rates for previous periods, of
which mobile amounted to SEK 78 million and fixed broadband to SEK
-5 million. The effect on EBITDA is stated in Note 2.
CUSTOMERS
In Q1 2014, the fixed broadband customer stock in Sweden decreased
with -385,000 customers as a result of the sale of the Swedish residen-
tial cable and fiber operations. For additional information please refer
to Note 10.
In Q4 2013, the definition of an active customer in the customer stock
was changed to exclude Machine-to-Machine subscriptions (M2M).
The one time effect on the customer stock in each segment is presented
below:
Sweden –57,000
Netherlands –8,000
Kazakhstan –4,000
Croatia –1,000
Lithuania –13,000
Latvia –3,000
Estonia –3,000
Total mobile –89,000
In Q2 2013, the mobile customer stock was negatively impacted by a
one-time adjustment of -811,000 customers in Kazakhstan as a result
of a changed method for calculating number of customers so a customer
with only incoming calls to its voicemail is no longer counted as an
active customer.
NOTE 2 OPERATING EXPENSES
EBITDA
In Q2 2014, the EBITDA for fixed telephony in Netherlands was posi-
tively impacted by SEK 48 million as a result of settled disputes regard-
ing wholesale line rental.
In Q1 2014, the EBITDA in Sweden was positively impacted by SEK
8 million as a result of decisions by PTS, as stated in Note 1, regarding
termination rates for previous periods, of which mobile amounted to
SEK 35 million, fixed broadband to SEK -15 million and fixed telephony
to SEK -12 million.
DEPRECIATION/AMORTIZATION AND IMPAIRMENT
In Q4 2013, Kazakhstan was negatively affected by SEK 89 million,
related to an impairment loss of SEK 73 million due to change to a new
billing system and an extra depreciation of SEK 16 million.
In Q3 2013, an impairment loss on non-current assets was recog-
nized in Croatia amounting to SEK 454 million. The impairment loss
was based on an estimated value in use of SEK 400 million by using
pre-tax discount rate of 10 percent. Due to unsatisfactory development,
Tele2 assessed that the estimated future profit levels did not support
the previous book value. The negative effect was reported as a one-off
item for segment reporting purposes.
ONE-OFF ITEMS
In Q1 2014, other operating expenses was negatively affected by
SEK 18 million, related to the devaluation in Kazakhstan. The nega-
tive effect has been reported as a one-off item for segment reporting
purposes. The total foreign exchange rate effect of assets and liabili-
ties in Kazakhstan was reported in other comprehensive income and
amounted in Q1 2014 to SEK -117 million. Please refer to Note 4 regard-
ing effects on change in fair value of put option Kazakhstan.
NOTE 3 FINANCIAL ASSETS AND LIABILITIES
FINANCING
Interest-bearing liabilities
Jun 30, 2014 Dec 31, 2013
SEK million Current Non-current Current Non-current
Bonds NOK, Sweden 329 1,093 – 1,371
Bonds SEK, Sweden 1,250 2,546 1,000 3,295
Commercial papers, Sweden 1,395 – 325 –
Financial institutions 349 635 210 636
Put option, Kazakhstan (Note 4) 879 – 1,350 –
Other liabilities 371 903 263 980
4,573 5,177 3,148 6,282
Total interest-bearing liabilities 9,750 9,430
CLASSIFICATION AND FAIR VALUES
Tele2’s financial assets consist mainly of receivables from end custom-
ers, other operators and resellers as well as cash and cash equivalents.
Tele2’s financial liabilities consist mainly of loans, bonds and accounts
payables. Classification of financial assets and liabilities including
their fair value is presented below. During the first six months 2014,
compared to year-end 2013, no transfers were made between the dif-
ferent levels in the fair value hierarchy and no significant changes
were made to valuation techniques, inputs used or assumptions except
for the put option in Tele2 Kazakhstan (Note 4).
The Group has derivative contracts which are covered by master net-
ting agreements. That means a right exists to set off assets and lia-
bilities with the same party, which is not reflected in the accounting
where gross accounting is applied. The value of reported derivatives at
June 30, 2014 amounted on the asset side to SEK 2 (8) million and on
the liabilities side to SEK 232 (146) million.
Jun 30, 2014
SEK million
Assets and
liabilities
at fair value
through
profit/loss
Loans
and
receivables
Derivative
instruments
designated
for hedge
accounting
Financial
liabilities
at amor-
tized cost
Total
reported
value
Fair
value
Other financial assets 13 193 – – 206 206
Accounts receivables – 2,471 – – 2,471 2,471
Other current receivables – 277 2 – 279 279
Current investments – 41 – – 41 41
Cash and cash equivalents – 526 – – 526 526
Assets classified as held for
sale 1 339 – – 340 340
Total financial assets 14 3,847 2 – 3,863 3,863
Liabilities to financial
institutions and similar
liabilities – – – 7,597 7,597 7,871
Other interest-bearing
liabilities 879 – 232 381 1,492 1,487
Accounts payable – – – 2,187 2,187 2,187
Other current liabilities – – – 512 512 512
Liabilities directly associated
with assets classified as held
for sale – – – 256 256 256
Total financial liabilities 879 – 232 10,933 12,044 12,313
Notes

Dec 31, 2013
SEK million
Assets and
liabilities
at fair value
through
profit/loss
Loans
and
receivables
Derivative
instruments
designated
for hedge
accounting
Financial
liabilities
at amor-
tized cost
Total
reported
value
Fair
value
Other financial assets 14 233 – – 247 247
Accounts receivables – 3,317 – – 3,317 3,317
Other current receivables – 313 8 – 321 321
Current investments – 55 – – 55 55
Cash and cash equivalents – 1,348 – – 1,348 1,348
Total financial assets 14 5,266 8 – 5,288 5,288
Liabilities to financial
institutions and similar
liabilities – – – 6,837 6,837 7,021
Other interest-bearing
liabilities 1,350 – 146 418 1,914 1,889
Accounts payable – – – 3,140 3,140 3,140
Other current liabilities – – – 516 516 516
Total financial liabilities 1,350 – 146 10,911 12,407 12,566
NOTE 4 OTHER FINANCIAL ITEMS
SEK million
2014
Jan 1–Jun 30
2013
Jan 1–Jun 30
2013
Full
year
2014
Q2
2013
Q2
Exchange rate differences –23 19 –28 –1 –60
Change in fair value, put option Kazakhstan 295 –81 –166 330 –41
EUR net investment hedge, interest component 6 7 19 3 3
Other financial expenses 3 –4 –8 2 –1
Total other financial items 281 –59 –183 334 –99
In Q2 2014, financial items was positively affected by SEK 363 mil-
lion, due to a revaluation of the put option of the business in Kazakh-
stan. The change relates to the devaluation in Kazakhstan as well as
increased financing provided by Tele2.
NOTE 5 TAXES
During the first six months 2014, the effective tax rate was mainly
affected by below stated items, indicating an underlying effective tax
rate of 23 (21) percent.
SEK million
2014
Jan 1–Jun 30
2013
Jan 1–Jun 30
2013
Full year
Profit before tax 1,840 1,295 1,975
Income tax –439 23.9% –486 37.5% –1,024 51.8%
Tax effect of:
Sale of operations –95 5.2% – – – –
Result from JV and associated
companies 1 –0.1% 3 –0.2% 4 –0.2%
Non-deductible expenses 90 –4.9% 147 –11.3% 266 –13.4%
Not valued tax loss-carry forwards –8 0.4% 89 –6.9% 196 –9.9%
Adjustment of taxes from
previous years 29 –1.6% –22 1.7% 4 –0.2%
Adjusted tax expense and
effective tax rate –422 22.9% –269 20.8% –554 28.1%
In Q4 2013, net taxes were positively affected by a valuation of deferred
tax assets in Austria of SEK 10 million.
NOTE 6 RELATED PARTIES
Tele2’s share of cash and cash equivalents in joint operations, for
which Tele2 has limited disposal rights was included in the Group’s
cash and cash equivalents and amounted at each closing date to the
sums stated below.
SEK million
2014
Jun 30
2014
Mar 31
2013
Dec 31
2013
Sep 30
2013
Jun 30
2013
Mar 31
Cash and cash equivalents
in joint operations 58 42 11 70 40 34
In Q4 2012, 2013 and 2014, frequencies and sites were transferred from
Tele2 and Telenor to their joint operation Net4Mobility. The transfers
did not have any material effect on Tele2’s financial statements. Apart
from transactions with joint operations, no other significant related
party transactions were carried out during 2014. Related parties are
presented in Note 38 of the Annual Report 2013.
NOTE 7 CAPEX
In Q1 2014, Tele2 Estonia acquired two mobile licenses in the 800 MHz
and 2100 MHz frequency bands for SEK 54 million.
In Q1 2013, Tele2 Netherlands acquired two mobile licenses (2x10
MHz spectrum) in the 800 MHz band for SEK 1,391 million. With the
acquired spectrum in the 800 MHz band and earlier obtained spectrum
in the 2600 MHz band, the roll out is ongoing for the next generation 4G
network, offering businesses and consumers higher speed and lower
pricing for mobile broadband.
SEK million
2014
Jan 1–Jun 30
2013
Jan 1–Jun 30
2013
Full year
2014
Q2
2013
Q2
CAPEX, continued operations –1,559 –2,694 –4,399 –850 –714
CAPEX, discontinued operations –415 –662 –1,135 –161 –154
This year’s unpaid CAPEX and paid
CAPEX from previous year –143 –84 186 –32 –54
Received payment of sold
non-current assets 23 74 107 11 17
Paid CAPEX –2,094 –3,366 –5,241 –1,032 –905
NOTE 8 CONTINGENT LIABILITIES
SEK million Jun 30, 2014 Dec 31, 2013
Disputes – 220
Asset dismantling obligation 132 126
Total contingent liabilities 132 346
On December 31, 2013 Tele2 Sweden was defendant in a dispute with
Verizon Sweden AB of SEK 220 million. On February 7, 2014 the District
court issued its award and ruled in favor of Tele2. In Q2 2014, the case
was settled where the parties paid for their own litigation costs.
Tele2 has obligations to dismantle assets and restore premises
within fixed telephony and fixed broadband in the Netherlands as well
as in Austria. Tele2 assesses such dismantling as improbable and con-
sequently only reported this obligation as contingent liabilities.
The tax authorities in Russia are currently performing tax audits on
several of Tele2’s former subsidiaries in Russia. Per the sales agree-
ment with the VTB-group Tele2 is liable for any additional taxes pay-
able as result of the tax audits. Even though it cannot be ruled out that
Tele2 may be liable to certain costs, Tele2 assesses that it is not likely
that any additional taxes need to be paid and consequently no provi-
sion has been made.
Additional contractual commitments are stated in Note 29 in the
Annual Report 2013.

NOTE 9 EQUITY AND NUMBER OF SHARES
Jun 30, 2014 Dec 31, 2013
Number of shares
Outstanding 445,497,600 445,497,600
In own custody 3,285,739 3,285,739
Weighted average 445,497,600 445,228,097
After dilution 448,982,485 448,465,420
Weighted average, after dilution 448,282,123 448,181,516
DIVIDEND/REDEMPTION
In Q2 2014, Tele2 paid to its shareholders a dividend of SEK 4.40 (7.10)
per share for 2013. This corresponded to a total of SEK 1,960 (3,163)
million.
As a result of the sale of Tele2 Russia in April 2013 a mandatory share
redemption program of SEK 28 per share was issued during Q2 2013,
equivalent to SEK 12,474 million. The redemption program implied a
share split where each share was split into two shares, of which one
was a redemption share. Retirement of redemption shares in own cus-
tody of SEK 92 million was transferred to unrestricted equity. A bonus
issue was performed in order to increase the share capital to its prior
level, SEK 561 million, through a transfer of SEK 280 million from unre-
stricted equity. Thereafter, the quota value of each share amounts to
SEK 1.25, the same as prior to the share redemption program. In total
SEK 15,637 million was paid to the shareholders in Q2 2013 as divi-
dend and redemption.
RECLASSIFICATION
In Q2 2014, 150,000 class C shares in own custody were reclassified
into class B shares in own custody.
In Q1 2014 and Q3 2013, 406 (15) and 726,650 class A shares respec-
tively were reclassified into class B shares in Tele2.
SALE OF SHARES
As a result of share rights in the LTI 2010 being exercised during Q2
2013, Tele2 delivered 836,389 B-shares in own custody.
PURCHASE OF NON-CONTROLLING INTEREST
In February 2013, Tele2 acquired the remaining 7.76 percent of the
shares in the subsidiary Officer AS in Norway for SEK 1 million.
In July 2009 and January 2010, Tele2 acquired the remaining 25.5
and 12.5 percent respectively of the shares in Tele2 Izhevsk and Tele2
Rostov in Russia. The final purchase price of SEK 3 and 90 million
respectively was paid in Q1 2013.
LONG-TERM INCENTIVE PROGRAM (LTI)
Additional information related to LTI programs are presented in Note 34
of the Annual Report 2013.
LTI 2014
Number of share rights
2014
Jan–Jun 30
Allocated June 2, 2014 1,180,268
Total outstanding share rights 1,180,268
During the Annual General Meeting held on May 12, 2014, the share-
holders approved a performance-based incentive program (the Plan)
for senior executives and other key employees in the Tele2 Group. The
Plan has the same structure as last year’s incentive program.
The objective of the Plan is to create conditions for retaining compe-
tent employees in the Tele2 Group. The Plan has been designed based
on the view that it is desirable that senior executives and other key
employees within the Group are shareholders in Tele2 AB. By offer-
ing an allotment of retention rights and performance rights which are
based on profits and other retention and performance-based condi-
tions, the participants are rewarded for increasing shareholder value.
Furthermore, the Plan rewards employees’ loyalty and long-term
growth in the Group. In that context, the Board of Directors is of the
opinion that the Plan will have a positive effect on the future develop-
ment of the Tele2 Group and thus be beneficial to both the company
and its shareholders.
The incentive program included a total of 198 senior executives and
other key employees within the Tele2 Group. In general, the partici-
pants in the Plan are required to own shares in Tele2. Thereafter, the
participants were granted retention rights and performance rights
free of charge. As a consequence of market conditions, employees
in Kazakhstan were offered to participate in the Plan without being
required to hold shares in Tele2. In such cases, the number of allotted
rights has been reduced, and corresponds to 37.5 percent of the num-
ber of rights allotted for participation with a personal investment.
Subject to the fulfilment of certain retention and performance-based
conditions during the period April 1, 2014 - March 31, 2017 (the meas-
urement period), the participant maintaining employment within the
Tele2 Group at the release of the interim report January - March 2017
and subject to the participant maintaining the invested shares (where
applicable) during the vesting period, each right entitles the employee
to receive one Class B share in the company. Dividends paid on the
underlying share will increase the number of shares that each reten-
tion and performance right entitles to in order to treat the shareholders
and the participants equally.
The rights are divided into Series A, Series B and Series C. The num-
ber of shares the participant will receive depends on which category
the participant belongs to and on the fulfilment of the following defined
conditions:
Series A Tele2’s total shareholder return on the Tele2 shares (TSR)
during the measure period exceeding 0 percent as entry
level.
Series B Tele2’s average normalized return of capital employed
(ROCE) during the measurement period being at least
9 percent as entry level and at least 12 percent as the
stretch target.
Series C Tele2’s total shareholder return on the Tele2 shares
(TSR) during the measure period being equal to the aver-
age TSR for a peer Group including Elisa, Iliad, Millicom
International Cellular, TalkTalk Telecom Group, Telenor,
TeliaSonera and TDC as entry level, and exceeding the
average TSR for the peer Group with 10 percentage points
as the stretch target.
The determined levels of the conditions include an entry level and a
stretch target with a linear interpolation applied between those levels
as regards the number of rights that vests. The entry level constitutes
the minimum level which must be reached in order to enable the vest-
ing of the rights in that series. If the entry level is reached, the number
of rights that vests is proposed to be 100 percent for Series A and 20
percent for Series B and C. If the entry level is not reached, all rights to
retention and performance shares (as applicable) in that series lapse.
If a stretch target is met, all retention rights or performance rights (as
applicable) vest in that series.
The Plan comprised a total number of 273,192 shares, of which
264,192 related to employees who invested in Tele2 shares and 9,000
related to employees in Kazakhstan who chose not to invest in Tele2
shares. In total this resulted in an allotment of 1,180,268 share rights,
of which 267,556 Series A, 456,356 Series B and 456,356 Series C. The
participants were divided into different categories and were granted
the following number of share rights for the different categories:

Share right
per Series
At grant date
No of
partici-
pants
Maximum
no of
shares A B C Tot
Total
allotment
CEO 1 8,000 1 3 3 7 56,000
Other senior executives and
other key employees 11 4,000 1 2.5 2.5 6 258,000
Category 1 42 2,000 1 1.5 1.5 4 315,400
Category 2 39 1,500 1 1.5 1.5 4 196,212
Category 2, no investment 2 1,500 0.375 0.5625 0.5625 1.5 4,500
Category 3 97 1,000 1 1.5 1.5 4 341,156
Category 3, no investment 6 1,000 0.375 0.5625 0.5625 1.5 9,000
Total 198 1,180,268
Total costs before tax for outstanding rights in the incentive program
are expensed over the three-year vesting period, and these costs are
expected to amount to SEK 64 million, of which social security costs
amount to SEK 24 million.
The participant’s maximum profit per share right in the Plan is lim-
ited to SEK 355, five times the average closing share price of the Tele2
Class B shares during February 2013 with deduction for the dividend
paid in May 2014.
The estimated average fair value of the granted rights was SEK 54 on
the grant date, June 2, 2014. The calculation of the fair value was car-
ried out by an external expert. The following variables were used:
Series A Series B Series C
Expected annual turnover of personnel 7.0% 7.0% 7.0%
Weighted average share price 79.39 79.39 79.39
Expected life 2.90 years 2.90 years 2.90 years
Expected value reduction parameter market condition 70% - 35%
To ensure the delivery of Class B shares under the Plan, the Extraor-
dinary General Meeting decided to authorise the Board of Directors to
resolve on a directed issue of a maximum of 1,700,000 Class C shares
and subsequently to repurchase the Class C shares. The Class C shares
will then be held by the company during the vesting period, after
which the appropriate number of Class C shares will be reclassified
into Class B shares and delivered to the participants under the Plan.
LTI 2013
2014
Jan 1–Jun 30
Cumulative
from start
Allocated June 4, 2013 1,204,128
Outstanding as of January 1, 2014 1,132,228
Allocated, compensation for dividend 39,922 39,922
Forfeited –82,917 –154,817
Total outstanding share rights 1 089,233 1 089,233
LTI 2012
2014
Jan 1–Jun 30
Cumulative
from start
Allocated June 15, 2012 1,132,186
Outstanding as of January 1, 2014 968,263
Allocated, compensation for dividend 34,986 274,177
Performance conditions not reached, Russia – –163,660
Forfeited –48,591 –288,045
Total outstanding share rights 954,658 954,658
LTI 2011
2014
Jan 1–Jun 30
Cumulative
from start
Allocated June 17, 2011 1,056,436
Outstanding as of January 1, 2014 867,329
Allocated, compensation for dividend – 294,579
Performance conditions not reached, Russia – –92,041
Exercised, Russia – –44,156
Forfeited –3,807 –351,296
Performance conditions not reached –602,796 –602,796
Total outstanding share rights 260,726 260,726
The exercise of the share rights in LTI 2011 was conditional upon the
fulfilment of certain retention and performance based conditions, meas-
ured from April 1, 2011 until March 31, 2014. The outcome of these per-
formance conditions was in accordance with below and the outstand-
ing share rights will be exchanged for shares in Tele2 during Q3 2014.
Retention and performance based
conditions
Minimum
hurdle
(20%)
Stretch
target
(100%)
Performance
outcome Allotment
Series A Total Shareholder Return Tele2
(TSR)
≥ 0% 9.7% 100%
Series B Average normalised Return on
Capital Employed (ROCE)1)
20%/
8%
24%/
12.5%
20.5%/
7.2%
20%
Series C Total Shareholder Return Tele2
(TSR) compared to a peer group
0% ≥ 10% –5.6% 0%
1)
The targets are split into two parts; before and after the divestment of Tele2 Russia
NOTE 10 BUSINESS ACQUISITIONS AND DIVESTMENTS
Acquisitions and divestments of shares and participations affecting
cash flow were as follows:
SEK million
2014
Jan 1–Jun 30
Acquisitions
Smartcash, Norway –4
Capital contribution to joint ventures –6
Repayment capital contribution joint ventures 4
Total acquisition of shares and participations –6
Divestments
Residential cable and fiber operations, Sweden 741
Transaction costs, Russia –25
Total sale of shares and participations 716
TOTAL CASH FLOW EFFECT 710
ACQUISITIONS
Smartcash, Norway
In June, 2014 Tele2 Norway acquired 33.3% in the joint venture,
Smartcash AS for SEK 4 million. The company holds a license to per-
form financial services.
DIVESTMENTS
Residential cable and fiber operations, Sweden
On October 23, 2013 Tele2 announced the sale of its Swedish residen-
tial cable and fiber operations to Telenor for SEK 793 million. The sale
was completed on January 2, 2014 after approval by regulatory author-
ities and the capital gain in Q1 2014 amounted to SEK 257 million. In
2013, the operation affected Tele2’s net sales by SEK 564 million and
EBITDA by SEK -9 million.
Net assets at the time of divestment
Assets, liabilities and contingent liabilities included in the divested
operation at the time of divestment is stated below:
SEK million
Goodwill 9
Other intangible assets 2
Tangible assets 440
Current receivables 10
Deferred tax liabilities –18
Current non-interest-bearing liabilities –35
Divested net assets 408
Capital gain 258
Tax income 18
Sales price, net sales costs 684
Unpaid sales costs etc 57
EFFECT ON GROUP CASH ASSETS 741

DISCONTINUED OPERATIONS
On July 7, 2014 Tele2 announced the divestment of its Norwegian oper-
ations to TeliaSonera Group for an enterprise value of SEK 5.1 billion,
equivalent to a cash value of SEK 5.3 billion. The sale will be completed
after approval by regulatory authorities, which is expected at the lat-
est in Q1 2015. The divestment is expected to result in a capital gain
of SEK 2 billion. In addition, the capital gain is expected to be affected
positively with approximately SEK 170 million related to reversal of
exchange rate differences previously reported in other comprehensive
income which will be reversed over the income statement but with no
effect on total equity.
The divestment has been reported separately under discontinued
operations in the income statement, with a retrospective effect on pre-
vious periods, and as assets held for sale in the balance sheet from June
30, 2014 and onwards.
The Norweigan and Russian operations reported as discontinued operations are stated below.
Income statement
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Net sales 1,980 5,363 7,375 1,024 956 983 1,029 1,052 4,311
Cost of services sold –1,547 –3,276 –4,818 –795 –752 –755 –787 –762 –2,514
Gross profit 433 2,087 2,557 229 204 228 242 290 1,797
Selling expenses –486 –933 –1,459 –254 –232 –283 –243 –270 –663
Administrative expenses –158 –377 –528 –82 –76 –84 –67 –81 –296
Results from shares in joint ventures – – – –1 1 – – 1 –1
Sale of operations, profit – 13,215 13,238 – – – 23 13,215 –
Other operating income 1 7 8 – 1 1 – – 7
Other operating expenses –1 –2 –3 – –1 – –1 –1 –1
EBIT –211 13,997 13,813 –108 –103 –138 –46 13,154 843

Interest income/costs 2 –146 –145 1 1 –1 2 1 –147
Other financial items – –9 –19 – – 18 –28 –3 –6
EBT –209 13,842 13,649 –107 –102 –121 –72 13,152 690

Income tax –13 –59 –10 –7 –6 22 27 62 –121
NET PROFIT/LOSS –222 13,783 13,639 –114 –108 –99 –45 13,214 569

Earnings per share (SEK) –0.50 30.98 30.63 –0.26 –0.24 –0.23 –0.12 29.70 1.28
Earnings per share, after dilution (SEK) –0.50 30.78 30.43 –0.26 –0.24 –0.23 –0.12 29.52 1.26
Balance sheet
Assets held for sale refer to the Norweigan operation.
SEK million Jun 30, 2014
Assets
NON-CURRENT ASSETS
Goodwill 516
Other intangible assets 314
Intangible assets 830
Tangible assets 2,193
Financial assets 24
Deferred tax assets 351
NON-CURRENT ASSETS 3,398
CURRENT ASSETS
Inventories 6
Current receivables 688
CURRENT ASSETS 694
ASSETS CLASSIFIED AS HELD FOR SALE 4,092
SEK million Jun 30, 2014
Liabilities
Interest-bearing liabilities 99
Non-interest-bearing liabilities 15
NON-CURRENT LIABILITIES 114
CURRENT LIABILITIES
Non-interest-bearing liabilities 778
CURRENT LIABILITIES 778
LIABILITIES DIRECTLY ASSOCIATED WITH
ASSETS CLASSIFIED AS HELD FOR SALE 892

Cash flow statement
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
OPERATING ACTIVITIES
Operating profit/loss –211 13,997 13,813 –108 –103 –138 –46 13,154 843
Adjustments for non-cash items
in operating profit 244 –12,729 –12,507 119 125 121 101 –13,110 381
Financial items paid 3 –74 –75 2 1 2 –3 9 –83
Taxes paid – –177 –177 – – – – – –177
Cash flow from operations before
changes in working capital 36 1,017 1,054 13 23 –15 52 53 964
Changes in working capital –85 –256 –214 138 –223 70 –28 –7 –249
CASH FLOW FROM OPERATING ACTIVITIES –49 761 840 151 –200 55 24 46 715
INVESTING ACTIVITIES
CAPEX paid –500 –620 –1,057 –186 –314 –181 –256 –162 –458
Cash flow after CAPEX –549 141 –217 –35 –514 –126 –232 –116 257
Acquisition of shares – –8 –8 – – – – –8 –
Sale of shares –25 17,301 17,252 –21 –4 –1 –48 17,404 –103
Changes of non-current receivables 13 9 2 2 11 –7 – 8 1
Cash flow from investing activities –512 16,682 16,189 –205 –307 –189 –304 17,242 –560
CASH FLOW AFTER INVESTING ACTIVITIES –561 17,443 17,029 –54 –507 –134 –280 17,288 155
FINANCING ACTIVITIES
Change of loans, net – –920 –899 – – 9 12 7 –927
Other financing activities – –94 –94 – – – – – –94
Cash flow from financing activities – –1,014 –993 – – 9 12 7 –1,021
NET CHANGE IN CASH AND CASH EQUIVALENTS –561 16,429 16,036 –54 –507 –125 –268 17,295 –866
Additional information
Numbers of customers Net intake
Thousands
2014
Jun 30
2013
Jun 30
2013
Dec 31
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Mobile 1,161 1,121 1,119 28 14 –3 5 22 162
Fixed telephony 57 73 63 –3 –3 –7 –3 –4 –4
Numbers of customers and net intake 1,218 1,194 1,182 25 11 –10 2 18 158
Divested companies – – – – –22,882 –
Changed method – – –4 – –33 –
Numbers of customers and net change 1,218 1,194 1,182 25 11 –14 2 –22,897 158
Net sales
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Mobile 1,888 5,232 7,135 980 908 929 974 989 4,243
Fixed telephony 102 137 252 51 51 56 59 67 70
Other operations – 2 6 –1 1 2 2 – 2
1,990 5,371 7,393 1,030 960 987 1,035 1,056 4,315
Internal sales, elimination –10 –8 –18 –6 –4 –4 –6 –4 –4
Net sales 1,980 5,363 7,375 1,024 956 983 1,029 1,052 4,311
EBITDA
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Mobile 13 1,251 1,280 3 10 –20 49 35 1,216
Fixed telephony 20 19 24 10 10 1 4 9 10
Other operations – –1 3 –2 2 2 2 – –1
EBITDA 33 1,269 1,307 11 22 –17 55 44 1,225
EBIT
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Mobile –235 757 537 –119 –116 –144 –76 –72 829
Fixed telephony 17 17 21 8 9 1 3 8 9
–211 782 575 –108 –103 –138 –69 –61 843
Sale of operations (Russia) – 13,215 13,238 – – – 23 13,215 –
EBIT –211 13,997 13,813 –108 –103 –138 –46 13,154 843

Specification of items between EBITDA and EBIT
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
EBITDA 33 1,269 1,307 11 22 –17 55 44 1,225
Sale of operations (Russia) – 13,215 13,238 – – – 23 13,215 –
Depreciation/amortization and
other impairment –244 –487 –732 –118 –126 –121 –124 –106 –381
Result from shares in joint ventures – – – –1 1 – – 1 –1
EBIT –211 13,997 13,813 –108 –103 –138 –46 13,154 843
CAPEX
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
Mobile 405 655 1,105 156 249 193 257 149 506
Fixed telephony 10 7 30 5 5 15 8 5 2
CAPEX 415 662 1,135 161 254 208 265 154 508
Additional cash flow information
SEK million
2014
Jan 1-Jun 30
2013
Jan 1-Jun 30
2013
Full year
2014
Q2
2014
Q1
2013
Q4
2013
Q3
2013
Q2
2013
Q1
CAPEX –415 –662 –1,135 –161 –254 –208 –265 –154 –508
This year unpaid CAPEX and paid
CAPEX from previous year –85 –7 29 –25 –60 27 9 –8 1
Received payment of sold non-current assets – 49 49 – – – – – 49
Paid CAPEX –500 –620 –1,057 –186 –314 –181 –256 –162 –458

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