Tele2 AB (publ)

Good day and thank you for standing by. Welcome to the Tele2Q3 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, one, one on your telephone. You will then hear an automatic 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 would now like to hand the conference over to your speaker today, Niklas Högberg, President and Group CEO. Please go ahead.

Good morning and welcome to Tele2's report call for the third quarter of 2026. With me, I have Peter Langen, our Group CFO, and Stefan Trampus, our Chief B2B. Please turn to slide two for some highlights from the third quarter. In Q3, organic group end-user service revenue grew by 2%, while organic underlying EBITDA grew by 3% from a strong base last year. In Q3, we generated the record-breaking equity-free cash flow of 2.3 billion. Today, we also update our full year guidance for 2026, which I will come back to later. Shortly after quarter end, our network JV secured a framework agreement for Sweden's new emergency network. Our network received the highest quality score in the procurement, a strong endorsement of its quality and reliability. We also became the first operator in Sweden to offer rich communication services for both Android and iOS, further demonstrating our ability to drive innovation in the market. Finally, one of the highlights of the quarter was that we had the most satisfied mobile customers, consumer customers among the main brands in the latest SGI survey, supported by a growing share of sales through our own channels. Beyond the highlights, we remain highly disciplined on investments and costs while continuing to see strong momentum across the company in engagement, innovation and execution. reflecting the strength of our challenger culture. AI and automation are already delivering value across our operations. As an example, most simple customer queries can now be resolved instantly by AI, while our voice bot, Anna, continues to improve customer satisfaction and allows our agents to focus on more complex customer needs. We are closely monitoring the development of agentic AI We believe this will reshape parts of the industry over time and we are adapting to ensure we are well positioned as customers increasingly search, compare and purchase services in new ways. The pace of development is rapid and we are actively assessing both the risks and opportunities while continuously building on actions already underway. Advancing initiatives already identified and identifying further action as this landscape evolves. Given the early stage and the speed at which the ecosystem is developing, we remain humble about how the market will evolve. For competitive reasons, however, for now we do not intend to comment in detail on specific initiatives or further plans. That said, rest assured that we are actively preparing for a future where agentic AI plays an increasingly important role in our customer journey. We are not here to defend ourselves from AI. We are here to win more, thanks to AI. So please move to slide three for more details on our results. Our 2% organic growth in end user service revenue was driven by all our operations. and our 3% organic growth in underlying EBITDA was driven by both revenue growth and continued sharp cost control. Reported growth was rather flat, burdened by the impact of the Baltic Tower transaction in Q1. Our strong equity-free cash flow grew by 30% year on year, and Peter will go through the details. CapEx to sales, which was seasonally low, remained below last year's level mainly due to lower 5G rollout pace. Our financial leverage ended at low 1.5x ahead of the final dividend tranche, which was paid last week. In Sweden, consumer and user service revenue remained stable with continued growth in mobile postpaid and DTV. In Sweden, business and user service revenue grew by 5% mainly driven by mobile due to continued strong IoT growth. Our Baltic operations grew organic and user service revenue by 6% and organic underlying EBITDA by a strong 9%. So let's move to slide five for more details on Swedish consumer. As outlined in the CEO letter, the Swedish market remains highly competitive While reducing churn is key, we are encouraged by developments in gross intake, driven by a stronger sales culture, operational improvements, and increased brand momentum. At the same time, we continue to expand our own channels with positive trends, both in own-channel sales and conversion. Mobile postpaid end-user service revenue grew by 3%, partly offset by continued decline in prepaid. resulting in a 1% growth in total mobile end-user service revenue. In fixed broadband, end-user service revenue declined by 3%, impacted by continued competitive pricing dynamics. In digital TV, end-user service revenue once again grew by 4%, driven by healthy high single-digit growth in Tele2 TV, more than offsetting the continued impact of Boxer TV switch-off. Let's look at consumer KPIs on slide six. In Q3, mobile postpaid added a solid 11,000 RDUs, mainly driven by mobile broadband, whereas mobile postpaid ASPR remained unchanged year on year. Fixed broadband RDUs declined by 6,000 in Q3, reflecting our continued cautious stance in open networks, where pricing competition remains unhealthy. TVRUs increased by 2,000 in Q3, with continued good momentum in Tele2 TV. ASPR grew by 3% year on year. So to sum up, we delivered another solid quarter overall in terms of customer intake, despite continued competitive intensity and typical seasonal softness. Please move to slide seven for Sweden Business. Sweden Business continued to deliver solid end-user service revenue growth, reaching a strong 5% in Q3. Mobile grew by 7%, mainly driven by our fast-growing IoT business. Mobile RDUs increased by 10,000 in Q3, supported by steady growth across several segments. ASPU continued to improve sequentially. Solutions grew by 4% in Q3, primarily due to strong demand for network solution and managed connectivity services. Fixed declined by 4% 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 Q3 driven by business. Underlying EBITDA grew by 1% driven by the end user service revenue and continued sharp cost control. Cash conversion improved to 77% over the last 12 months. Let's move to Baltic Financials on slide 10. Baltic once again maintained strong top and bottom line growth. Total end-user service revenue grew by 6% organically, partly supported by price adjustments. Underlying EBITDA grew by 9% organically, mainly driven by end-user service revenue growth and cost optimizations. Cash conversion based on the last 12 months remained at 80%. So let's move to slide 11 for Baltic operating KPIs. Total postpaid base increased by 14,000 ARBUs in Q3, driven by Lithuania and Latvia, while prepaid increased by 2,000 ARBUs. Blended organic ASPR continued to grow by a solid 7%, driven by price adjustments and continued prepaid to postpaid migration. With that, I hand over to Peter, who will go through the financial overview.

Thank you, Nicolás, and good morning, everyone. Please turn to page 13 for the group income statement. Total revenue grew by 2% driven by the service revenue. On 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 2026. This translates to around 100 million SEK in the quarter. The organic growth in underlying EBITDA, which reflects the pro forma development, was plus 3% compared to Q3 last year, thanks to the service revenue contribution and sharp cost control across the group. ITEMS AFFECTING COMPARABILITY WERE MAINLY IMPACTED BY RESTRUCTURING COSTS WHICH WERE SIGNIFICANTLY REDUCED COMPARED TO LAST YEAR NET FINANCIAL ITEMS DECREASED YEAR ON YEAR MAINLY THANKS TO HIGHER INTEREST INCOME IN Q3 OUR AVERAGE INTEREST RATE WAS 2.8% WITH A DEBT MIX OF 74% FIXED RATES AND 26% FLOATING RATES AND INCOME TAX INCREASED YEAR ON YEAR MAINLY DUE TO HIGHER TAXABLE profits. So let's move to the cash flow on slide 14. CapEx paid excluding Spectrum decreased primarily due to lower five-year rollout pace and somewhat delayed hardware supply. Spectrum CapEx paid refers to the Lithuanian Spectrum acquired in 2026. Changes in working capital were mainly impacted by increased accounts payable including a spillover to October of around 150 million SEK. Net financial items paid excluding leasing decreased thanks to both lower financing costs for outstanding debt and higher interest income. Taxes paid decreased since Q3 last year included around 135 million SEK of withholding tax payments in Latvia while the corresponding payment this year occurred in the second quarter. Altogether, equity-free cash flow reached 2.3 billion SEK in Q3. And over the last 12 months, 6.7 billion SEK has been generated, equivalent to around 9.7 SEK per share. Please turn to slide 15 for our capital structure. End of Q3, economic net debt was 17.5 billion SEK, a reduction of 6.8 billion compared to end of 2025. This was driven by cash proceeds from the closing of the Baltic Tower transaction in Q1 and the cash generated in the business, exceeding the payout of the first dividend tranche in May. Our leverage of 1.5 times underlying EBITDA is comfortably within an investment grade range. And adjusted for the payout of the final tranche of the ordinary dividend, which we did last week, pro forma leverage would have been at 1.8. And with that, I hand over to Nicolas for some comments on our 2026 guidance.