INTERNET OF THINGS AN OPERATOR VIEWPer Gadenius, Global Partner ManagerNovember 22, 2016

Earth Overshoot Day occurred on

August 8th 2016

Earth Overshoot Day occurred on

August 8th 2016

the population is expected to grow…

Earth Overshoot Day occurred on

August 8th 2016

the population is expected to grow…

Our aging population

will cost more…

Earth Overshoot Day occurred on

August 8th 2016

the population is expected to grow…

Our aging population

will cost more…

And, We want to grow our businesses

“Exponential problems

need exponential solutions”

time

Amplitude of challenge

The cost of asolar cell

1977

1987

2015

2016

€70.2

€9.1

€0.3

€0.03

worldEu

Germany

The total area of solar panels it would take to power…

Source: German Aerospace Centre (DLR)

IoT is part of the solution

Transportation

Energy

Utilities

Infrastructure

HealthcareSecurity

Agriculture

Ecology

Internet of Things is about enabling automated, informed, real-time decision making

Control Analysis Action

DATA

Connected fields combined with analytics

Better yield and reduced running costs

Precisionagriculture

Secure in home environment

Remote alarms for elderly

Elderly care

Smart buildings

Automotive

Monitor and control the systems and assets

Operating efficiency and better environment

Monitor mileage, optimum speed and overall engine health

Reduced fuel consumption and improved efficiency

IOT IS A STRATEGIC DECISION

Companies have to make strategic decisions

Product, systems and solutions

What do we want to achieve in terms ofcustomer interaction, cost efficiencies and new revenues

What business impact do you want to achieve?

• Should we expand our scope of business• Should we change our business model• Should we monetize on product data by selling it to

external parties

How to implement M2M/IoTin our products and system

• What product capabilities shall we have• How to store the data, cloud or locally• Shall we develop internally or shall we outsource• And many other things…

Business impact

Strategicdirection

WHO ARE WE?

*Sweden, the Netherlands, Kazakhstan, Croatia, Lithuania, Latvia, Estonia, Austria, Germany, + IoT.

9+1Countries*

27Net sales

SEK billion

6EBITDA

SEK billion

14.4Million customers

6,400Employees

Tele2 at a Glance

Communication Financial Services

EntertainmentE-commerce

More than 75 years of entrepreneurship under the same principle owners

Tele2 – Part of the KinnevikGroup

Tele2 IoT A global set-up with an initial focus on Europe

100+IoT

experts

A global offering

Sales office in 10

countries in Europe

Devices in 166

countries

Tele2 IoT has moved from scratch to become an established IoT player with record speed

2013 2014 2015 2016

Tele2 Group decides to launch Tele2 IoT

Tele2 IoT launched November 2013& launch in Scandinavia

IoT Portal launched

First IoT Talks event held

Launch in BeNeLux

Launch in Central East Europe

First IoT customer signed

Jasper made connectivity platform partner

250 customers signed

100 customers signed

Launch in Germany

Launch in Finland, Baltics & Russia

Valuation

100 partners signed300 customers signed100 employees

5 people work inTele2 IoT 50 employees

Tele2 IoT acquires Kombridge

VerticalsSystem

IntegrationValue AddedServices

Connectivity

In a complex IoT ecosystem, Tele2 has a horizontal position focusing on Value Added Services enabled by Connectivity

Hardware Modules and Sensors

VerticalsSystem

IntegrationValue AddedServices

Connectivity

In a complex IoT ecosystem, Tele2 has a horizontal position focusing on Value Added Services enabled by Connectivity

Hardware Modules and Sensors

HOW DID WE DO IT?

Tele2 IoT – Success Factors

Dynamic Leadership

Time to set a great strategy

Owners and top management

buy-in

Mandate to run

Able to handpick a great team

IoT Love

IoT

Go-to-market approach

Market position

Tele2 IoT –Way to Win

The Tele2 Way

Where we play

MissionTo provide a competitive IoT offering to customers and partners, applying a

flexible, scalable and passionate approach

Value Added Services enabled

by IoT Connectivity

We are a global player, with

initial focus on Europe

B2B(B2B2B)

(B2B2B2C)

How we win

Future-proof Technology Innovation

Value Champion

Tele2 IoT Success Factory

World Class Operations

Tele2 IoT is one of the best IoT orchestrators globally

Vision

IoT

IoT LoveWe stand out by customer experience

PassionAlways there to

help - 24/7

Win-Winsolutions

Share pains& successes

On our promisesBuild trust by consistency

Someexamples

What?Track and monitor the fleet.

Why connected?� Better service for end-customers� Real time visibility and control

The benefits� Less environmental impact� Fleet management gives optimization and cost savings

� Improved quality of service

Northgate

+

The Power of Telecom batteries

Reserve energy when power fails

Used widely inmobile networks and data centers

Crucial in areas with unreliable power grids

Quality matters, even for commodities

Health checks necessary, but costly

Replaced too late or too early

NorthStar’s challenge

Remote monitoring globally

From commodity to higher values

Improved battery ROI

Smart Batteries need smart partners

Our solution

� IoT Orchestrator

� Product Cloud– ”Home” for data

– Security

– Analysis

� Connectivity options

� Short time to market

Powered by

The architecture

Cloud

Monitoring &

Configuration

in ACE™ Central

Status check & Installation in ACE™ site

Smart battery

Gateway

Power system

WHAT HAVE WE LEARNT?

Your business environment is changing quickly

and you have to change even quicker

A clear purpose and strategy

c

Top managementbuy-in

The right people Be agile A lot of hard work

And of course, a little bit of luck…

MAKES IOT HAPPEN