Tele2 AB (publ)

Good day and thank you for standing by. Welcome to the Teleti Q2 Interim Report 2026 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 1 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star one and one again. Please be advised that today's conference is being recorded. I will now like to hand the conference over to your speaker today, Niklas Hogberg, President and Group CEO. Please go ahead.

Thank you. Good morning and welcome to Teletubbies call for the second quarter of 2026. With me, I have Peter Langgren, our Group CFO, and Stefan Trampus, our Chief B2B. So, please turn to slide two for some highlights from the second quarter. So, in Q2, group and user service revenue grew by 2%, whereas underlying EBITDA grew by 4%, despite tougher comps than in Q1. In Q2, we also continued to generate healthy equity-free cash flow of 1.5 billion. We also announced a partnership with Scaleway, Europe's leading public cloud provider, to launch a sovereign and scalable cloud and AI offering in Sweden. The offering combines Scaleway's public cloud capabilities with Teletoo's private cloud services, providing organizations with a powerful hybrid solution. We continue to expand our store network in Sweden, adding three new stores during the quarter. And finally, we are proud to have been recognized by Time Magazine as one of the world's most sustainable companies, including being the most sustainable telco in the Nordics. So please move to page three for more details on our results. So our 2% growth in end user service revenue was driven by all our operations. and our 4% growth in underlying EBITDA was driven by both revenue growth and continued sharp cost control. Our solid equity-free cash flow, which reduced by 9% year-on-year, was negatively impacted by timing of tax payments, whereas operating cash flow grew somewhat. And Peter will go through the details later. CAPEX to sales, which increased seasonally versus Q1, remained well below last year's level, mainly due to lower 5G rollout pace. Our leverage ended up 1.7 times following the first dividend tranche, which was paid in May. In Sweden, consumer and user service revenue remained stable, with growth in mobile postpaid and DTV. And in Sweden business and user service revenue grew by 4% driven by mobile due to strong IOT growth. Our Baltic operations grew end user service revenue by 6% and underlying EBITDA by a strong 10%. So let's move to slide five for more details on Swedish consumer. So as discussed in the CEO letter, this quarter we continue to enhance the customer experience through investment in our brands, expanding store footprint and increased use of AI and automation. Also, according to Oklas test, Tele2 has Sweden's best 5G network, demonstrating the quality and reliability we deliver to our customers. Mobile postpaid end user service revenue grew by 2%, Total mobile revenue grew by 1%, partly offset by continued decline in prepaid. In fixed broadband, end-user service revenue declined by 2%, impacted by increasingly competitive pricing dynamics. In digital TV, end-user service revenue continued to grow by 4%, and once again driven by healthy, high single-digit growth in Tele2 TV. more than offsetting the impact of Boxer TV switch-off. So let's look at the consumer KPIs on slide six. Mobile Postpaid added a solid 13,000 RGUs during Q2, whereas mobile ASPR remained unchanged year on year. Fixed broadband RGUs declined by 8,000 in Q2, reflecting our deliberate caution in open networks where price competitions remains unhealthy. Meanwhile, we grew our dues in our own network where profitability is high. TVR dues increased by 5,000 in Q2 with continued good momentum in Tele2 TV. ASPU grew by 3% year-on-year driven by pricing and cross-selling of sports content. So to sum up, we deliver a solid quarter overall in terms of customer intake despite continued competitive intensity in the market. So please move to slide seven for Sweden business. So Sweden business continued to deliver a solid end user service revenue growth reaching 4% in Q2. Mobile grew by 7% driven by our fast growing IoT business. Mobile RGUs increased by 15,000 in Q2, supported by steady growth across several segments. ASPR continued to be impacted by changing customer mix. Solutions grew by 2% in Q2, primarily due to strong network solution performance. PICS declined by 2% due to lower IP VPN revenues as a result of migration to new solutions. partly offset by continued solid growth in fixed broadband. Please move to slide eight for Sweden Financials. In total, Sweden end-user service revenue grew by 1% in Q2, mainly driven by business. Underlying EBITDA grew by 2%, driven by the end-user service revenue and continued sharp cost control. Cash conversion improved to 76% over the last 12 months. Let's move to Baltic Financials on slide 10. Baltics maintained strong top and bottom line growth in Q2. Total end-user service revenue grew by 6%, partly supported by price adjustments. Underlying EBITDA grew by 10%, mainly driven by end-user service revenue growth and cost optimizations. Cash conversion based on the last 12 months was 80%, slightly negatively impacted by the Tower transaction in Q1. Let's move to slide 11 for Baltic operating KPIs. The total postpaid base increased by 11,000 RDUs in Q2, driven by all markets, whereas prepaid declined by 9,000 RDUs. Blended organic ASPR grew by a solid 7%, driven by price adjustments and continued prepaid to postpaid migration. So with that, I hand over to Peter, who will go through the financial overview.

Thank you, Nicolas, and good morning, everyone. Please turn to page 13 for the group income statement. Total revenue grew by 2%, driven by the service revenue growth of 2%. On the reported underlying EBITDA after lease, I'd like to remind you about the Baltic Tower transaction. As previously stated, the transaction is expected to have a negative impact of around 35 million euro on a 12-month basis starting from March. This translates to around 95 million SEK in the quarter. The organic growth in underlying EBITDA, which reflects the pro forma development, was plus 4% compared to Q2 last year, thanks to the service revenue contribution and short cost control across the group. Items affecting comparability were mainly impacted by workforce-related costs. Net financial items decreased year-on-year, mainly thanks to higher interest income. In Q2, our average interest rate was 2.7%, with a debt mix of 74% fixed rates and 26% 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 primarily due to lower 5G rollout speed and delayed hardware supply, partly offset by payment timing. Spectrum CAPEX refers to the Lithuanian spectrum acquired in Q2. Net financial items paid excluding leasing decreased due to both lower financing cost for outstanding debt and higher interest income. Taxes paid included around 135 million SEK of withholding tax payment in Latvia in Q2, while the corresponding payment last year occurred in Q3. In addition, this year included a supplementary tax payment of around 60 million SEK in Lithuania related to 2025. Altogether, equity-free cash flow reached 1.5 billion SEK in Q2, And over the last 12 months, 6.2 billion SEK has been generated, equivalent to almost 9 SEK per share. Let's turn to slide 15 for our capital structure. End of Q2, economic net debt was 19.7 billion SEK, a reduction of 4.6 billion compared to end of 2025. This was driven by cash proceeds from the closing of the Baltic Tower transaction and the cash generated in the business, exceeding the payout of the first dividend tranche in May. Our leverage of 1.7 times underlying EBITDA is comfortably within an investment grade range. And with that, I hand over to Nicolas for some comments on our 2026 guidance.