Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Tele2 -(TEL2b.ST)Tele2 (TEL2b.ST)

Steady on revenues, whilst cost transformation has driven EBITDA growth

PRICE TARGET SKr 165.00 EQUAL-WEIGHT THESIS

positioned Telco: Tele2 is well placedWe derive our price target using a DCF-based sum of the parts (key assumptions: WACC 7- ▪Well

10%, growth rate 1.0-2.5%). in mobile, broadband and TV services in the

Baltic Sea region. Capex is higher in the near SKr 178.11

term to accelerate 5G investments, but falls

Consensus Price Target Distribution SKr 144.00 SKr 215.00 thereafter. A restructuring plan to remove

MS PT

c15% of the workforce was implemented inSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates 2025.

20% of EBITDA is from ▪However, around

the Baltics, where inflation has been high,

RISK REWARD CHART but revenues / EBITDA growth has been

strong..

dividends nearing an end? SEK ▪Special

Management has said the disposal process is

SKrSKrSKr 203.00(+25.81%)203.00203.00(+25.81%)(+25.81%) largely complete, which potentially means

200 the end of special DPS, unless there is scope

to increase leverage.

CEO from 1 July 2026. SKrSKrSKr 161.35161.35161.35 SKrSKrSKr 165.00(+2.26%)165.00165.00(+2.26%)(+2.26%) ▪New

Consensus Rating Distribution

SKrSKrSKr 110.00(-31.83%)110.00110.00(-31.83%)(-31.83%) 40% Overweight

45% Equal-weight

50 15% Underweight

MS Rating

Source: Refinitiv, Morgan Stanley Research

JUL '25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target Risk Reward Themes

Secular Growth: NegativeSource: Refinitiv, Morgan Stanley Research

View descriptions of Risk Rewards Themes here

BULL CASE SKr 203.00 BASE CASE SKr 165.00 BEAR CASE SKr 110.00

5% 2027e FCFE yield 6% 2027e FCFE yield 9% 2027e FCFE yield