Tele2 AB (publ)

Good day and thank you for standing by. Welcome to the Tele2 Q1 Interim Report 2026 Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jean-Marc Herion, President and Group CEO. Please go ahead.

Thank you, and good morning and welcome to Teletubbies' report call for the first quarter of 2026. With me here in Stockholm, I have Peter Landren, our Group CFO, Nicolas Högberg. our Chief B2C Officer and Deputy CEO, and Stefan Prampus, our Chief B2B. Please turn to slide two for some highlights from the first quarter. In Q1, group end-user service revenue grew by 3%, whereas underlying EBITDA grew by 11%, marking the fourth consecutive quarter of double-digit growth. We also continue to generate strong equity free cash flow with 2.2 billion crowns in Q1, plus 7% versus last year. Our basic dollar transaction was completed by the end of February, generating cash proceeds of 4.7 billion to 32. And we also opened five new stores in Sweden in Q1 and upgraded our fixed network to 2.5 gigabit per second, a record internet speed. which are already available across many of the largest cities, including in Stockholm. With our 5G already recognized as the fastest in Sweden, we now operate the fastest networks in the country. Please move to page 3 for more details on our results. Our 3% growth in end-user service revenue was driven across all our operations and core services. Our 11% growth in underlying EBITDA was driven by both transformation and revenue growth. Our strong equity cash flow, free cash flow, which grew by 7% year-on-year, was largely driven by the increase in our operating cash flow. Peter will go through the details. CapEx2 sales declined seasonally, partly due to lower 5G rollout speed in Q1. Leverage fell to 1.5 times. due to the Baltic current transaction and organic cash generation. In Sweden consumer, end-user service revenue grew by 1%, with contributions from all main services. In Sweden business, end-user service revenue grew by 5%, driven by mobile and IoT. Baltic operations grew end-user service revenue by 7%, and underlying EBITDA by 15%. Let's move to slide five for more details on Swedish consumers. As commented in the CEO letter this quarter, we combine store expansion with rapid progress in AI and automation, improving customer experience, operational efficiency, and our ability to anticipate customer needs. Mobile postpaid end-user service revenue grew by 3%. Total mobile revenue grew by 2%, partly upset by continued decline in prepaid, and some temporary issues due to the move to our new logistic platform. Fixed broadband grew end-user service revenue by 1% due to ASPU growth. Digital TV once again improved sequentially. reasoned by healthy high single-digit growth in Tele2 TV and user service revenue, more than offsetting the latest impact of Boxer TV switch-off. Let's look at consumer KPI on slide 6. Mobile Prosperity reviews remain unchanged in Q1, despite temporary negative impacts related to 2G, 3G shutdowns. Mobile ASPU increased by 1% year-on-year, driven by price adjustments, while still negatively impacted by IFRS 15 fair value adjustments, which will gradually aidate during the year. Think World Finance EU declined slightly in Q1, while ASPU grew by 1% due to price adjustments. As in previous quarter, we have remained selective in part of the market due to continued aggressive competition. which hamper volume growth. TVFUs increased by 4,000 in Q1, as the good growth momentum in Tele2 TV has continued, as two grew by 5% year-on-year, driven by pricing and wholesaling of sport content, improving the success of our flexible offer. Please move to slide 7 for Sweden Business. Sweden's business continues to deliver a strong end-user service for new growth, reaching 5% in Q1, despite strong competition. Mobile grew by 8%, largely driven by our IoT business, which is expanding in new industries, such as the automotive sector and geographies, for example, in Latin America. Mobile RGU has increased by 3,000 in Q1, as we continue to be impacted by change in customer mix, B2B positions grew by 3% in Q1, reflecting our decision to focus on a more targeted portfolio of services. Please move to slide 8 for Sweden Financial. In total, Sweden end-user service revenue grew by 2% in Q1, driven by both business and consumer. And the Align and DeepDAO grew by a solid 9%, driven by the end-user service revenue workforce reduction, sector prioritization, and cost control. The cash conversion has improved to 73% over the last 12 months. Let's move to the Baltics financials on slide 10. Baltics once again maintained strong top and bottom line growth in Q1. Total end-user service revenue grew by 7%, partly supported by previous price adjustments. Q1 was the fifth consecutive quarter in which all Baltic markets delivered double-digit organic growth in underlying EBITDA, delivering a total growth of 15% pro forma the Baltic Toro transaction. It is worth commenting that our Baltic operations started accounting the costs of Baltic Toro's company in March 2026. Cash conversion based on the last 12 months stands at 80%. despite the impact of the thorough transactions. As you know, a spectrum auction has already been announced and will take place in Lithuania in 2026. Let's move to slide 11 for Baltic operating KPIs. The total post-paid bays in the Baltics increased by 17,000 RGU in Q1, driven by all markets. Pre-paid decline was due to regulation in migration to post-paid. Blended organic S2 grew by a strong 10%, driven by price adjustments and continued pre-paid to post-paid migration. With that, I hand over to Peter, who will go through the financial overview.

Thank you, Jean-Marc, and good morning, everyone. Please turn to page 13 on the group income statement for the quarter. Total revenue grew thanks to organic service revenue growth of 3%, with contribution from all operations. Underlying EBITDA grew by 10% organically, or 11% after lease, thanks to the sharp cost control across the group and the contribution from service revenue. Items affecting comparability were mainly impacted by redundancy costs related to workforce reductions. Last year, the corresponding redundancy provisions were more significant, as you might recall. The gain from sale of operations of 5.1 billion SEK refers to the capital gain from the Baltic Tower transaction completed at the end of February. Net financial items decreased year-on-year, mainly thanks to higher interest income and positive currency effects. In Q1, our average interest rate was 2.7%, with a debt mix of 73% fixed rates and 27% floating rates. Income tax increased year on year due to higher taxable profits. Let's move to the cash flow on slide 14. CapEx paid excluding Spectrum decreased compared to last year, mainly due to lower intensity in the Swedish 5G rollout and reduced workforce. The decline was also impacted by delayed hardware supply with an expected cash up later in the year. Spectrum CapEx paid increased. due to the first out of two payments for the Swedish spectrum secured in 2025. Changes in working capital contributed to the cash flow with around 450 million SEK, largely driven by seasonal decrease in equipment receivables. Taxes paid increased since last year included a tax refund of around 280 million, while the corresponding tax refund this year was around 50 million. In summary, Q1 equity-free cash flow reached 2.2 billion SEK, which implies a 7% growth compared to last year. And this translates to around 9 SEK per share over the last 12 months. Please turn to slide 15 for our capital structure. End of Q1, economic net debt was 17.4 billion SEK, a reduction of 6.9 billion compared to end of 2025. This was proven by two things. The cash proceeds of 4.7 billion from the Baltic Tower transaction, as well as the 2.2 billion generated in the business. And this brings down leverage to 1.5 times underlying EBITDA after lease ahead of the proposed dividend distribution. And with that, I hand over to Jean-Marc for some comments on our 2026 guidance.