Tele2 AB (publ)

Solid operational performance; cash generation strong - Organic end-user service revenue: +2% in Q3. - Organic underlying EBITDAaL: +3% in Q3 (driven by revenue contribution + “sharp cost control”). - Equity free cash flow: SEK 2.3bn in Q3, +30% YoY (and SEK 6.7bn over last 12 months ≈ SEK 9.7/share). - CapEx to sales: seasonally low; below last year, mainly due to lower 5G rollout pace.

Guidance updated (implies some Q4 softening), but revenue stays modest - Full-year 2026 organic end-user service revenue growth: unchanged at low single-digit. - Full-year 2026 organic underlying EBITDAaL growth: narrowed to 4%–5% (from previous low to mid-single digit). - CapEx to sales: lowered to <10% (from 10%–11%). - Rationale for implied slowdown in EBITDAaL in Q4: continued macro challenge + competitive environment and tough comps (notably Q4 last year was strong), while maintaining flexibility to act commercially.

Capital structure supports dividends; leverage still conservative - Economic net debt: SEK 17.5bn at end of Q3 (down SEK 6.8bn vs end-2025). - Leverage: 1.5x underlying EBITDAaL (comfortably within investment-grade range). - Dividends: final dividend tranche paid last week; pro forma leverage after final tranche would have been ~1.8x. - Working capital/timing risk to watch: Q4 expected weak due to seasonal equipment receivables + ~SEK 150m payment timing; spectrum-related cash payments estimated ~SEK 180m for full year.