Chairman’s statement, annual report 2025

Dear Shareholders,

The year 2025 has been a year of profound transformation for Tele2, delivering tangible operational and financial results.

In Sweden, we made courageous and sometimes difficult decisions, necessary to simplify the organisation, reinforce cost discipline and restore the entrepreneurial mindset that lies at the very heart of Tele2’s DNA. In the Baltics, we operated in a demanding environment, shaped by both economic and geopolitical factors, which further strengthened our focus on resilience and anticipation.

2025 was also marked by intense and constructive Board discussions around several decisions critical to the Group’s long-term positioning.

The return of Frank as the face of the Tele2 brand was a strong and deliberate choice. It underlines the strategic importance of brand preference, Tele2’s singularity, and our determination to clearly differentiate ourselves in highly competitive markets. It also represents a conscious return to Tele2’s roots: a bold, distinctive and customer-centric brand.

In an increasingly unstable international context, we significantly reinforced our geopolitical monitoring, particularly in response to the growing risks of hybrid warfare targeting telecom infrastructure, especially in the Baltic region. Network resilience and infrastructure security remain absolute priorities for the Group.

The sale of the tower assets in the Baltics represents another important milestone. This transaction strengthens Tele2’s balance sheet while enabling even more efficient asset management, without compromising operational excellence.

Under the leadership of Jean Marc Harion, the management team was further strengthened, notably with the appointment of Nicholas Högberg, a former Board member, as Deputy CEO Sweden and a renewal of more than half of the Group Leadership Team in 2025. This evolution reflects our commitment to combining strategic continuity, deep knowledge of the Group, and strong execution capabilities.

In my 2024 Chairman’s statement, I emphasised the need to reignite an entrepreneurial spirit, strengthen cost control, simplify the organisation, and return to equity free cash flow growth following the decline observed in 2024. Tele2 has fully delivered on these commitments, achieving a 42% increase in equity free cash flow in just twelve months. In light of these strong results, we will propose at the Annual General Meeting a dividend increase of 65% for the 2025 financial year.

2025 has therefore been a year of strong financial performance, accompanied by excellent share price performance. For the second consecutive year, and with a 48 percent total shareholder return over the year, Tele2 has significantly outperformed both the European telecom sector and broader equity markets, reflecting renewed investor confidence in our strategy.

During 2025, we also reinforced the alignment between the Board of Directors and our shareholders. All Board members are now shareholders of Tele2, with a minimum investment equivalent to 25% of their Board remuneration. This policy demonstrates our commitment to long-term value creation and exemplary governance.

Tele2 enters the coming years with a clear strategy, a strengthened leadership team, restored financial discipline, and an unchanged ambition: to create sustainable value for our customers, our employees and our shareholders.